MINUTES OF MEETING
CORAL SPRINGS IMPROVEMENT DISTRICT
A regular meeting of the Board of
Supervisors of the Coral Springs Improvement District was held on Monday, September
19, 2011 at 6:35 p.m. at the District Office, 10300 NW 11th Manor,
Present and constituting a quorum were:
Martin Shank President
Theodore Mena Vice President
Duane Holland Secretary
Also present were:
Kenneth Cassel District Manager
Dennis Lyles District Counsel
Dan Daly Director of Operations
Kay Woodward District Accountant
John McKune District Consultant
David Macintosh Wastewater Department
Ed Stover Water Department
Randy Frederick Drainage Supervisor
Jan Zilmer Human Resources
Stephen Seigfried CSID
Cory Johnson CH2M Hill
Cedo DaSilva CH2M Hill
Michael Bone Lanzo Construction
Joe Brown Lanzo Construction
Andrew Bauman Lewis,
William Capko Lewis,
Joe Morera SWCD
Jorge Acosta Resident
The following is a summary of the minutes and actions taken during the September 19, 2011 CSID Board of Supervisors Meeting.
FIRST ORDER OF BUSINESS Roll Call
Mr. Shank called the meeting to order and Mr. Cassel called the roll.
SECOND ORDER OF BUSINESS Approval of Minutes
A. August 2, 2011 Special Meeting
B. August 15, 2011 Regular Meeting
There not being any,
THIRD ORDER OF BUSINESS Consideration of Bids for SCADA System
Mr. Daly reviewed the following:
· The District previously entertained the idea of putting in a SCADA system for the 41 lift stations in the field as well as the four lift stations located at the grounds of the water plant.
· The request for bids was published twice. Approximately five interested parties attended the mandatory pre-bid meeting, but only two bids were submitted.
· Staff recommends awarding the bid to Data Flow Systems for rental of a system at a cost of $59,400.
· Mr. Holland asked about the training and whether up to 12 people can be trained. Mr. Daly clarified only four people can be trained; however, there are only two to three people who work with the lift stations.
· The data obtained from this system will allow the District to evaluate the direction in which to proceed.
· Mr. McKune agreed this system will be helpful in isolating the location of system leaks.
· Mr. Cassel and Mr. Lyles explained they brought some items to staff’s attention regarding the contract. The contractor is willing to make the changes to its standard form of agreement, but did not have it ready in time for tonight’s meeting.
ELEVENTH ORDER OF BUSINESS Staff Reports
· Project Status Report
Mr. Brown provided an update on Plant F.
Ø All of the concrete grounding and placements at the clarifier have been completed.
Ø Up to 75% of the painting has been completed. It will be tested after 10 days, and they will proceed from there.
Ø All of the parts were ordered for the reassembly of the diffusers. The work will start once the painting is approved.
Ø The piping in Plant E was televised. DVD’s of the recordings were sent to Mr. McKune and they do not show corrosion. They are ready to proceed with Plant F, which should be ready within a month.
Mr. Brown provided an update on the Nano Plant.
Ø They are into the second week of check outs in preparation for testing.
Ø They are mostly completed with the work.
Ø The Nano Plant is in a 30 to 60 day testing cycle. They will make substantial completion requests once the orifice testing is completed and the membranes are inserted.
Mr. Johnson discussed the following:
Ø He will have more clarity on the status of the projects tomorrow after they have a meeting. His opinion is substantial completion is closer to 45 days.
Ø A substantial work list is being provided to Lanzo.
Ø Progress is being made in the right direction.
Ø Mr. Shank asked about the painting and if it was done to Mr. McKune’s satisfaction. Mr. McKune stated they are taking an area and testing it. Mr. Schwarz is suspicious of some of the prep work done on one of the repair spots, and a portion will have to be redone if he is correct. Mr. McKune thinks it will be fine.
The Board discussed the following:
Ø Mr. Shank attended the last construction meeting in which Mr. Schwarz said their corrosion expert advised it will take three years for corrosion to occur underneath the paint. He requested a three year performance bond or letter of credit. He also wants something in writing stating if there is a problem during this time; it will be completely redone and not patched up.
Ø Mr. Mena asked Mr. McKune for his opinion. Mr. McKune stated no one can guarantee the coating will last well into the future. They are trying to repair it the best way possible and testing it to see the results. Mr. Shank’s request was communicated to the paint contractor. He will discuss with the company owners. He has yet to respond to Mr. McKune or Lanzo.
Ø Mr. Holland understands the request for a warranty bond. He does not understand having something in writing, which states they have to redo everything if a problem arises because it is too broad.
Ø Mr. Mena agrees to request a three year warranty bond. He does not agree on taking the paint down to the bare metal if there is a problem.
Ø Mr. Brown noted CH2M Hill did not like the repair method recommended by the painting contractor.
Ø Mr. Johnson stated it is not CH2M Hill’s place to tell the contractor what to do. They can tell them whether they are meeting the requirements and specifications. The painting contractor’s suggestion did not meet the specifications. He clarified CH2M Hill’s role is to interpret the contract and provide recommendations to the Board.
Ø Mr. McKune stated once the plant is in service, 85% of the tank is under water, which is a corrosive atmosphere. The remainder is in a splash zone, which is not a corrosive atmosphere. Any difference between the area above and below the water will be visible once the water is taken down after a year,.
Ø Mr. Bone stated if they agree to extend the warranty to three years, they extend the rights in the contract for the same term. If it fails in three years, the District will have the same rights against Lanzo and Lanzo will have the same rights against the painting contractor.
Ø Mr. Lyles stated it is an industry standard with regard to sureties to have a 24 month life; after which they expire. A surety will need to be in place with a long notice period as well as a backup surety. If the surety does not extend, it is the obligation of the subcontractor to put another one in place. If the subcontractor fails to do this, the District can look to the original two year surety to cure the default of the contractor.
Ø There was Board consensus to request a surety bond or letter of credit from Lanzo.
Ø Mr. Bone stated if the Board agrees to accept the paint after the pullout tests are successful contingent upon a two year extended warranty period or letter of credit, it is what Lanzo has to do. He can go to his subcontractor with it.
Ø Mr. Lyles clarified the Board is entertaining an extended warranty proposition as discussed, not as an imposition of an additional step for the contractor, but as a way of avoiding what was originally recommended, which is to take the coating all the way down to the bare metal and redo it. The Board is trying to find an easier and less expensive way for the contractor to complete the work. The alternative is the engineer of record on the project originally looked at the problem and determined it was the application, the material or both were out of specification. In order to get it into specification with a resolution, which is less expensive and less time consuming for the contractor, the Board has met the contractor half way. This is an attempt by the Board to make things easier for Lanzo. Mr. Bone recognized the Board is compromising with Lanzo.
Mr. Mena recognized Mr. Morera from SWCD was in the audience and welcomed him to the meeting. Mr. Morera introduced himself to the Board and addressed the letter sent to them regarding a future meeting of the districts to discuss common interests and working together. The SWCD Board is looking forward to working with CSID as well as the other districts in the area.
· Mr. Shank stated at the last construction meeting Mr. Johnson told Mr. Stover cleanout plugs are not necessary and there are plants CH2M Hill engineered and built without them. He asked Mr. Johnson about an email he sent Mr. Stover today saying it was not being used after the initial startup, but they are at the plants he listed.
· Mr. Johnson stated he misspoke. He believes CH2M Hill stopped specifying them on this project because they are not used typically in any of the other District’s projects. CH2M Hill decided not to include cleanout plugs in the specifications due to the infrequent use of valves versus the cost savings. The valves cost $16,000 to $20,000.
· Mr. Stover does not agree. He said they are a functional tool to keep the plants running. He prefers staff make their own valves. Each one cost $95, which comes out at a cost of $15,000. Mr. Shank agreed to Mr. Stover’s recommendation.
TENTH ORDER OF BUSINESS Tabled Items
· Culvert Project Agreements and Modifications
Mr. Shank provided the Board with an update on a meeting he had with Mr. McKune and Mr. Frederick regarding the culvert project. The following was discussed:
Ø The new culvert is stage one of a three stage project.
Ø There is no reasonable assurance there will be FEMA funding for the other two stages and the additional costs will be approximately $6 Million.
Ø Stage one will lower possible flooding by less than 2.4 inches.
Ø The accuracy of the model is in question due to input data, which discusses 18 inches and a 100 year flood over three days. Mr. Shank recalled a rain event in 1979 in which there was 16 inches of rain over a 10-hour period with little or no flooding.
Ø The actual slab elevations in CSID can be, but is not inputted into the model.
Ø Assumptions of blockage of culverts and capacity of pumping stations are made in a worst case scenario.
Ø Changing the flow pattern may cause flooding in other parts of the District while reducing only a small amount of water in the area.
Ø The west side basin will have to pump more than the east basin.
Ø Mr. Holland asked if the FEMA grant will help in any way. It was explained the FEMA grant only provides funding for the first stage.
Ø Mr. Holland asked if the District is beyond where it should be or if it is on target in terms of planning to build a culvert like this.
Ø Mr. Frederick is concerned because the plans consider moving water away from an area which may flood to another area which will likely flood.
Ø Mr. Holland questioned whether it was worth the District spending these funds. Mr. Frederick stated the District has functioned as is for over 30 years without any issues.
Ø Mr. DaSilva explained the previous Board requested CH2M Hill look into this. He stated the west basin is separate from the east basin. The west basin does not have as many issues because there are twice as many lakes, which results in more storage.
Ø Mr. McKune stated this is a predictive model. He has an issue with models because a lot of proximations are made when the data is inputted into the model.
Ø Mr. Shank asked if there will be a response from FEMA if the District does not proceed with the project. Mr. Lyles responded a comment was made at the meeting Mr. Shank attended indicating there may be a problem with FEMA in a future storm event in which there is property damage. If the District applies for help, there is a record of the District being approved for funding on a project to prevent flooding and the District electing not to proceed with the project. After further research Mr. Lyles was unable to find a regulation in a Code of Federal Regulations addressing this situation and directing FEMA to decline claims if someone turns down a grant.
SIXTH ORDER OF BUSINESS Consideration of Request from Lanzo Construction Company for Retainage Reduction
The Board reviewed the request from Lanzo for retainage reduction from 5% to 3.5% on the water treatment plant only.
· Mr. Mena asked if there was a reason for doing a percentage retainage reduction versus a dollar amount. Mr. Cassel explained a percentage can be applied across all line items in the pay request as a retainage reduction.
· Mr. Holland stated he feels comfortable with the retainage reduction as outlined in Mr. Cassel’s memorandum.
SEVENTH ORDER OF BUSINESS Consideration of Change Order #2 to Lanzo Construction Company
Mr. Cassel reviewed Change Order #2 and the following was discussed:
· This change order consists of 14 changes to the project, which are a result of negotiations to issues which arose. Instead of doing separate change orders they were all consolidated into one.
· The change order increases the current contract price by $104,571.55.
· The backup indicates which items were added and deleted.
· Mr. Shank asked about the addition of a curb at Tank F, which will be in dispute. Mr. Cassel responded it is likely it will be in dispute as to who ultimately pays for it. This is a contractual obligation between the District and the contractor. Other issues will need to be dealt with CH2M Hill separately.
· Mr. Mena expressed his frustration with CH2M Hill and changes made to the project. Mr. Johnson defended the changes made and stated the amount of change orders on this project are low by industry standards.
FOURTH ORDER OF BUSINESS Discussion of Proposals for District Counsel
The following was discussed:
· A total of four proposals were submitted: Lewis, Longman & Walker, Gray Robinson, PA, Bryant Miller Olive, and Weiss, Serota, Helfman, Pastoriza, Cole & Boniske, PL.
· Mr. Lyles would also like to be considered for retention.
· Mr. Shank reviewed the proposals and rated them based on their work history with special districts, lobbying, litigation and fees.
· Mr. Cassel stated he had inquiries from another firm. He did not instruct any firm to attend the meeting being he did not know what the Board’s process was going to be or the direction the Board was going to take.
Mr. Holland stated he
broke down the firms into four major categories. He added location as one of the categories. He feels a more local firm will add to
availability. He also looked at
ownership. He did not like the fact
Bryant Miller Olive is located in
· Mr. Mena narrowed it down to two firms. He feels changing just to change is not always the best option. Mr. Lyles has been District Counsel for 15 years. He knows the District well and has lobbying ability. He is also familiar with Lewis, Longman & Walker and feels they are equally good firms. He does not feel it is the appropriate time to make changes with all of the issues the District is dealing with regarding the construction project.
· Mr. Holland agrees the Board should not change District Counsel just to make a change. He would like to meet as a Board to discuss and identify the critical success factors moving forward as a Board and as a District first and have another meeting to move ahead or have a presentation from the law firms.
· Mr. Shank asked representatives from Lewis, Longman & Walker about construction litigation and whether they would represent the District with someone from the firm. Mr. Capko responded they do not have to ‘farm out’ construction litigation. Mr. Bauman would be the lead attorney on construction litigation.
· Mr. Shank stated he spoke with Mr. Lyles who indicated his firm uses an outside lobbying firm and also recommends an outside construction litigator. Mr. Shank would like an all inclusive firm. His two choices at this time are Lewis, Longman & Walker and Mr. Lyle’s firm.
Lyles clarified his firm is primarily a litigation firm which represents local
government entities. They are the
outside trial counsel for the City of
· There was Board consensus to hold a workshop meeting to continue discussing attorney services.
FIFTH ORDER OF BUSINESS Consideration of Proposal from ADS Engineering for Hypochlorite System Hardware Connection
There being no questions or comments,
EIGHTH ORDER OF BUSINESS Review and Consideration of Additional Fees to CH2M Hill Associated with Work Authorization #50
The following was discussed:
· Mr. Shank met with CH2M Hill where they discussed five separate issues.
· There was an agreement to pay Work Authorization #50; however, Mr. Shank does not recommend paying the line items in dispute.
· CH2M Hill wants to go to mediation to dispute certain charges.
· There was consensus to have a three way mediation to determine liability for issues and resolve matters without placing responsibility on one party.
· Mr. Shank recommended instructing District counsel to draft a demand letter to be sent to CH2M Hill requesting they pay $547,000 within 15 days after the completion of the project.
· Mr. Lyles stated one of the issues which arose during the settlement discussions was the bifurcation of the claims, the issues with Plant F, engineering decisions, specifications and who did and did not comply. CH2M Hill is requesting they be part of the mediation with Lanzo and the District. Mr. Lyles recommends allowing CH2M Hill to be part of the mediation.
· The Board should address the $547,000 overpayment, or failure to make a timely request during the first true-up period, as a separate matter because it does not involve Lanzo.
· Mr. Cassel reviewed the two invoices associated with Work Authorization #50. Mr. Cassel does not feel the $5,244.80 monthly allowance line item on the invoice dated May 1, 2011 through May 27, 2011 is appropriate as well as the $3,290.99 attributed to time spent on Plant F. He made the same recommendation for the $5,244.80 monthly allowance line item on the invoice dated May 28, 2011 through June 24, 2011 and the $133.74 for Plant F review time. The remaining charges are appropriate.
Mr. Shank questioned
the reason for using Mr. Easton on the project and the District having to pay
his airfare for traveling back and forth from
NINTH ORDER OF BUSINESS Consideration of CH2M Hill Work Authorization for Work to be Performed in Connection with Claims Filed by Lanzo
The following was discussed:
· Assistance provided to the District by CH2M Hill should litigation or claims arise out of the project by the contractor is not part of the scope of services for which they originally submitted a price in their work authorization and will have to be paid separately.
· Mr. Lyles stated it is not uncommon for an engineering firm to request compensation at previously approved rates for their assistance in gathering information for litigation. The difficulty is determining how much of the work is to assist the District and the claim with respect to Lanzo and how much of the work is on their own behalf for potential claims and discussion of settlements the District is entering into with CH2M Hill.
· Mr. Cassel stated the first obstacle is the three inch thick claims book the Board was presented with a week and a half ago.
· Mr. Lyles stated the proposed form of the work authorization covering these activities was not in the agenda package and was just submitted at the meeting. He cannot make a recommendation at this time because District counsel and staff have not reviewed the work authorization.
· There was Board consensus to discuss this at a special meeting following the workshop the Board will hold.
ELEVENTH ORDER OF BUSINESS Staff Reports
· GIS Presentation/Briefing
Mr. Daly provided the Board with a presentation/briefing on GIS for the District’s infrastructure:
· GIS stands for Geographical Information System.
· The District has a great deal of blue prints and is not aware of what it does not have in blue prints. The workers have to refer to the blue prints when there is a water main break, which is not efficient.
· There is a company soliciting the District’s business which can input the blue print information into a computerized system. Mr. Daly provided them with a set of blue prints to do a sample.
· The program this company uses has a module which can be incorporated into Google Earth.
· This also leads into document imaging.
The City of
· Mr. Cassel stated there is an asset book, which was created over the past few years. All of the documentation associated with the pump stations will be able to be inputted into the system.
· The system will allow the District to look at how to effectively and efficiently accomplish the digitization of the District’s records as well as the accessibility and usability of the records in field.
· The system will also mesh with the Broward County Property Appraiser’s information.
· This will be a multi-year project, concentrating on the most important layers first.
The following was also discussed:
· Mr. Daly distributed a draft newsletter for the Board to review.
· Mr. Shank requested Mr. Daly look into having defibrillators throughout the plant.
· Mr. Shank would like to set up a permanent drop off area for residents to discard toxic materials so they are not dumped into the District’s canals. Mr. Daly will make some calls to find out if they can do this.
· Mr. Shank questioned whether the previous Board followed through with their fiduciary responsibility by not having District counsel review the contracts for the water treatment plant and wastewater treatment plant. Mr. Lyles explained a practice evolved over the years in which the District engineer assembled the specifications and construction contracts. It was part of the services contracted with CH2M Hill. A discussion ensued regarding the review of contracts in the past. Mr. Holland expressed frustration in not having legal counsel review contract documents.
· Utility Billing Work Orders
· Monthly Aerial Photographs
The above items are for informational purposes only.
There being no report, the next item followed.
TWELFTH ORDER OF BUSINESS Approval of August Financials and Check Registers
There being no questions or comments,
THIRTEENTH ORDER OF BUSINESS Supervisors’ Requests and Audience Comments
· Resident Correspondence
An email was provided in the agenda package from a resident complementing Mr. Mena for his help.
The following was discussed:
· Mr. Shank requested Mr. Mena talk to the city about the following:
Ø Enforcing grease trap cleaning, which causes lift station clogging.
Ø Talk to the landscape contractors who work on the medians about not blowing leaves and clippings into the sewers.
Ø Have code rangers look out for blocked or clogged storm drains.
· Mr. Shank stated his meeting on Thursday was a waste of his time. He prefers the attorneys make opening statements and then step out of the room in the future.
· There was discussion regarding disagreements between the District engineer and the contractor.
· Mr. Mena asked why the District is not allowing school tours of the plant. It was explained there have been school field trips at the plant. At this time it is a safety and liability issue due to the construction project. Once the construction project is complete, field trips to the plant will resume.
· Mr. Mena would also like to implement a reward program for the employees.
· Mr. Holland stated he was pleased with the meeting he attended.
FOURTEENTH ORDER OF BUSINESS Adjournment
There being no further business,
Assistant Secretary President