06-07-83SpMtg JUNE 7, 1983
A Special Meeting of the City Council of the City of Delray
Beach, Florida, was called to order by Mayor Willard V. Young in the
Council Chambers at City Hall at 7:00 P.M., Tuesday, June 7, 1983.
Roll Call showed:
Present - Council Member Malcolm T. Bird
Council Member Doak S. Campbell
Council Member Arthur Jackel
Council Member Edward L. Perry
Mayor Willard V. Young
Absent -. None
Also present were - City Manager Gordon D. Tiffany and City
Attorney Herbert W. A. Thiele.
Mayor Young called the meeting to order and announced that this
meeting has been called for the purpose of: (1) Considering approving
and ratifying Supplemental Fund Escrowing Agreement between the City
of Delray Beach and Waste Management, Inc. of Florida in conjunction
with contract dated June 1, 1983; (2) Considering approving and authoriz-
ing execution of contract for sale and purchase in conjunction with sale
of City property (Lots 8-21, Block 49, Town of Delray~ for $65,000.00;
(3) Considering authorization to institute appeal of non-final order
relative to Paul Mark Development, Inc. vs City of Delray Beach; (4)
Awarding bid for street resurfacing to Pavex Corporation for the low
bid of $197,750; (5~ Awarding bid to Rolm Florida for a MCBX Telephone
System for $2,342 per month plus $710 maintenance charge; and (6) Con-
sidering extending EMS Services to Gulfstream for 30 days (City Attorney).
1. The City Manager advised that as Council is aware the contract
provided that the contractor would pay the City a certain amount for
its equipment including rolling stock, commercial dumpsters, and also
there is an arrangement on the roll out carts. That check was delivered
to the City upon contract execution and verbally we discussed with
Waste Management the terms contained in the letter dated May 31st; this
letter basically says that the funds will be escrowed until the con-
tractor actually takes possession of the equipment, which will be July
18th. Staff recommends that Council ratify this as, in effect, a modi-
fication of the contract terms.
Mr. Perry moved to approve and ratify the Supplemental Fund Es-
crowing Agreement between the City of Delray Beach and Waste Management,
Inc. of Florida, seconded by Mr. Jackel. Said motion passed unanimously.
2. The City Attorney advised that this item is for Council authori-
zation to have his office retroactively execute the standard form con-
tract for sale and purchase on the sale of the parcel of property that
Council awarded the bid to seVeral weeks ago; the form of the closing
documents and closing costs are all standard real estate transactions.
Closing is to be held on Friday of this week.
Mr. Bird moved to approve and authorize execution of the contract
for sale and purchase in conjunction with the sale of City property,
Lots 8-21, Block 49, Town of Delray, for $65,000, seconded by Mr. Perry.
Said motion passed unanimously.
3. The City Attorney stated the memo furnished Council is more or
less self-explanatory; they are asking for autkority to institute a
Writ of Certiorari appeal to the Fourth_ District on a case in which
the City is involved in litigation. It deals with the manner by which
the Court has ordered the City to proceed to trial, which his office
believes to be erroneous; he is asking for authorization to institute
that Non-Final Order Appeal.
Mr. Perry moved for authorization, seconded by Mr. Bird. Said
motion passed unanimously.
4. The City Manager advised that the capital portion of the Public
Works budget for this year included some $304,000 for a resurfacing
program, a very major resurfacing whick is more than the City has seen
for many years. The specifications were prepared and information has
been circulated to Council on how the judgment was made as to which
streets would be on the list. The low bid was received of $28.25 per
ton in place; this was considered to be an excellent bid. This is phase
one of the project and it is estimated that the tonnage will come to just
under $200,000. Of the $304,000, the Council has previously committed
about $25,000 for reconstruction of the Seaboard Coast Line crossing at
S.W. 10th; that work is to commence on June 22nd. The City Manager sta-
ted the intent is to go ahead and do this work because they don't know
exactly what quantities will be necessary and cannot tell how far down
the list they will be able to. get. They are estimating they will be
able to do all those streets on the list that are rated 60 or below
and do at least some of those streets that are rated at around 70~
they would expect the work to commence late this month and the first
phase to be completed during the month of July or early August, They
would expect the second phase to be completed certainly hy the end of
the fiscal year.
Mr. Perry moved to award the bid for street resurfacing to Pavex
Corporation, seconded by Mr. Jackei. Said motion passed unanimously.
Before roll call the following discussion was had:
Upon question by Mr. Bird as to whether any of the uncommitted
funds from this particular portion and those which are not going to be
used on S.W. 10th will be used on the 1st Street pairs, the City En-
gineer advised they had included in the list a portion of S.E. 1st
Street between 3rd and 6th at approximately $5500; they now have under
consideration the upgrading of the entire improvements of N. E. and
S. E. 1st Streets as part of that one~way pair. He stated there will
not be enough funding to do any appreciable portion of it this year.
The City Manager stated that they are hOpeful they will have
something like $350,000 to $380,000 in the budget next year for trans-
portation projects from the local option gas tax. He suggested that
Council might wish to consider by motion at some future meeting assign-
ing a high. priority to the Swinton Avenue project, a portion of which
is the County's responsibility, and have it on record when we talk to
the County about it.
Upon question by Mr. Bird with regard to the upgrading of the
West Atlantic railroad crossing, Gates Castle, Assistant City Engineer,
stated that in a meeting this morning regarding the 10th Street cros-
sing, the representative from the Seaboard Railroad said that the At-
lantic Avenue crossing is scheduled for July 5th.
At this point the roll was called to the motion.
5. The City Manager stated he feels there will be a lot of discussion
before the staff can actually make a recommendation and Council can be
comfortable with it; it is a very technical subject. Council has been
furnished a package of data from the City's telephone consultant, Mr.
Howard Shaw.
The City Manager stated the key points are the two low bids of
$140,461 for Rolm and $104,344 for Executone; Mr. Shaw did not make
his mecommendation for Executone based primarily on the fact that they
did not meet the technical requirement of submitting a bid bond at the
time of the bid. Council may wish to ask the City Attorney whether
Council would have the authority and if there,-would be any potential
problems with Council waiving the requirement of the bid bond; if Coun-
cil chooses to do so, then Executone would be the low qualified bid.
There is a substantial difference of some $36,000 up.front, plus the
difference starting with the 13th month of maintenance charges. It is
the City Manager's understanding that both firms have excellent equip-
ment which meets the City's needs and specifications and furthermore
both of them have very good track records in service and capability.
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The other point is the alternative of either leasing for a 10
year or seven year period or an outright purchase; again the legal
question occurs as to whether the City would be able to accept a lease
purchase of the kind that was written in the contract because there is
no buy-out provision. The City Manager advised that beyond the techni-
calities and legalities he believed that in this case it would probably
be financially a reasonable and good move to go ahead and purchase the
equipment outright. He outlined the advantages of the purchase price
versus the lease over a ten year period for both low bids. If Council
should decide to waive the bond requirement and accept the Executone
bid and to purchase rather than lease, it would be his recommendation
that the funds be earmarked from those monies which the City just col-
lected from the sanitation contractor; some of those monies would be
repaid to the General Fund for advances made from tax revenues to the
sanitation fund, and therefore, due the General Fund.
Mr. Bird stated as he understands it there are to be approximately
22 trunk lines coming into City Hall, which will then be reapportioned
out to some of the subsidiary buildings of the City; the trunk lines are
more expensive than commercial lines, something on the magnitude of $25
per month per line,assuming that both are rotary equipped. If that is
true, he wonders whether or not we really need to bring all the commu-
nications to the City Hall since most of the outlying buildings require
some sort of receptionist/telephone operator anyway or have dispatch
service.
Mr. Church, City Engineer, replied that the system proposed will
carry 11 trunk lines. He stated the City is now replacing a telephone
system, including the switching gear, conta±ned within a cabinet and
a small type of switchboard operation. The City is getting the latest
state of the art in terms of telephone communication with the push
button phones and the latest in terms of the computerized system that
is available, within a reasonable budget and cost for what the City
needs.
Mr. Shaw spoke before Council stating that the City will be
saving approximately $40,000 a year in payments to Southern Bell. He
explained the time difference between rotary dialing, which the City
has at present, and touch toning and the savings of time and money to
the City with the various features of this system which is a computer
switch type system.
Mr. Bird stated he wished to know in some kind of hierarchal
ranking that Council, as well as the citizens can understand, how high
or low we are from some median point with regard to the system proposed.
Mr. Shaw replied that the present system is a first generation switch-
board; what is proposed is called second generation, handling voice
through a computer type system. Third generation combines voice and
data into the same lines; this is only for the very large systems.
What they are trying to do is to develop to the stage where the City
becomes a City where you can reach each other easily and get decisions
quickly.
Mr. Shaw advised that the bids range from $104,000 to $170,000
out of nine bids; they are suggesting that $104,000 and $140,000 are
low-compared to those. If the City stayed with the Bell System over
the next 10 years we would spend in excess of $500,000. The system
proposed by Southern Bell,which is known as Centrex, would come to
$750,000 over the next 10 years.
Mr. Bird advised his concern is the decision which is being asked
of Council as to whom to award the bid to; he has not really at this
point in time decided whether he knows enough about what the basic re-
quirement was to know whether the bid he is being asked to consider and
vote on represents what we really need in the City.
Upon question by Mr. Bird with regard to a switchboard breakdown,
Mr. Shaw advised that if there is an emergency breakdown both companies
are pledged to come within two hours to repair it; during such a break-
down there will be power failure phones that will go into operation,
however, the central unit will be limited.
Mr. Bird moved to postpone the decision on this item until the
next regular meeting on June 14th, seconded by Mr. Jackel. Sa~d motion
passed unanimously.
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Before roll call the following discussion was had:
Mr. Jackel questioned the possibility of a breakdown and how it
would affect the Police and Fire Departments. Mr. Shaw replied that
both departments would have their own outside lines in addition and
there would be no problem.
Jason Stringer, District Manager for Rolm Florida, advised that
if Council is looking at a point of price and that was the only judg-
ment for a decision, obviously the h.igh bidder should be considered to
be the best.
Jeff Levine, President of Noramco Florida, one of the nine bid-
ders, stated they were bidding a system which is known as a third gen-
eration PBX, the latest in state of the art technology as far as digi-
tal voice and data switches. He gave an analysis of their system and
stated theirs was the third lowest bid at $125,000 plus the paging and
intercom.
Gideon Taylor, Executive Vice President of Executone of Florida,
the low bidder, stated he is a communications system engineer and he
designed the system. He explained the advantages of a PBX which he
feels the City needs as it is growing and will have more demands placed
upon it.
At this point the roll was called to the motion.
6. The City Attorney advised he has furnished Council a copy of a
letter relative to this item from Skip Randolph, the attorney repre-
senting Gulfstream. Basically, they are requesting a 30 day extension
of the Council's decision to extend EMS service to Gulfstream without
contract for the purpose of attempting to negotiate a contract with
them. Mr. Randolph has been in trial for two weeks and still is there;
also Mayor Koch will be out of town until mid June and there is no one
who can, essentially, conduct their negotiations.
Mr. Perry moved to extend EMS service to Gulfstream for 30 days
through July 12th at $175 per call, seconded by Mr. Jackel.
Ralph Dye, 2000 S. Ocean Boulevard, stated he wished clarifica-
tion that with this motion Gulfstream will quite correctly pay for its
service and assume liability for same.
Mr. Perry amended his motion to include the ver~age that Gulf-
stream would assume liability.
The City Attorney advised that he is not so sure that Gulfstream
is willing to take the liability portion; that has never been discussed.
The City Manager advised that as part of his discussion with Mayor Koch
before he left they had discussed the fact there would be an appropriate
indemnification of our City; the form and content of that would have to
be worked out between the attorneys.
Mr. Perry stated he wished to stay with the motion as expressed.
The City Attorney stated he does not think the idea of indemnifi-
cation is necessarily legally possible by a municipality, even of another
municipality; they would have to take out insurance and wh~ther their
insurance covers us or not, he does not know.
Following discussion on the liability aspect, Mr. Campbell stated
he does not feel the liability is really relevant tonight; what we have
to determine is whether we are going to give life saving protection to
anyone who has an accident on the roads in Gulfstream before the nego-
tiations are worked out.
Mr. Dye stated he felt one more troubling question remains.
Given the fact that the previous free and unauthorized service has been
acknowledged by this City as wrong and unlawful, why then should the
taxpayers of this City pick up the tab, some $1800 of free service,for
the past 14 months. He suggested that Council has a clear obligation
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to insist on full reparation as part of any agreement with Gulf-
stream.
Mr. Perry amended his motion to read instead of 30 days from
the 12th, continue the agreement on the basis that we are paid $175
per call to June 14th, at which time we will address it again, seconded
by Mr. Jackel.
The City Attorney advised that this motion is probably unrealis-
tic; he does not believe Mayor Koch has or could get the authority and
the attorneys could not work out what is going to be a fairly compli-
cated agreement and the insurance requirements in a day.
Mr. Perry withdrew his motion and Mr, Jackel his second.
Mr. Perry stated for the record that it has b~een mentioned that
this illegal situation has been going on for 14 months~ he believes it
has been determined that it has'been closer to 2~ months,
Mr. Bird moved to extend EMS service to the Town of Gulfstream
for a period to conclude on the 13th of July so that Council can take
additional formal action at the first formal meeting of that month~
subject to an affirmative statement by tke City Attorney on ths 14th
of June that our insurance coverer indeed agrees that ths City would
be insured in the event of an accident while providing this service~
at the rate of $175 per call, seconded by Mr. Perry. Said motion pas?
sed unanimously.
Mayor Young declared the meeting adjourned at 8:30 P.M.
ATTEST:
MAYOR
The undersigned is the City Clerk of the City of Delray Beach
and that the information provided herein is the minutes of the meeting
of said City Council of June 7, 1983, which minutes were formally ap-
proved and adopted by the City Council on ~ '~ ~t /~3 .
yCity Clerk
NOTE TO READER:
If the minutes that you have received are not completed as indicated
above, then this means that these are not the official minutes of City
Council. They will become the official minutes only after they have
been reviewed and approved whieh may involve some amendments, addi-
tions or deletions to the minutes as set forth above,
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