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1984-02-16 Special Meeting3415 84 -21 SPECIAL MEETING THURSDAY, FEBRUARY 16, 1984 The City Council of the City of Okeechobee, met in special session in Council Chambers, 55 Southeast Third Avenue, Okeechobee, Florida, at 7:12 P.M. Vice Chairman Knight called the meeting to order with the following Councilmen present: James Knight, Vice Chairman Dowling R. Watford, Jr. Oakland Chapman Chairman Douglas and Councilman Thomas were absent: Others present were: Bonnie S. Thomas, City Clerk Richard C. Fellows, City Administrator David M. Conlon, City Attorney Lydia Jean Wilkerson, Deputy Clerk AGENDA ITEM #II - ADOPTION OF A RESOLUTION - RESOLVING THE CITY'S 1.0 MILLION GALLON GROUND LEVEL WATER'STORAGE TANK Vice Chairman Knight opened the floor for discussion concerning the adoption of the resolution wherein Trial Attorney, Lester Jennings, recommends Council approve a settlement between the parties (City of Okeechobee - LaGrow). Attorney Conlon asked Director Fortner if the type of equipment and material to be used were within our standard and our specifications. Director Fortner replied, "They were reasonably so ". Trial Attorney Jennings stated that the job would be under a warranty for 20 years and that Robert E. Owens & Associates would pay all costs involved in caulking the inside of the tank (LaGrow would not pay anything). Attorney Conlon asked Attorney Jennings if the type of mix to be used was proven. Attorney Jennings replied by saying that the mix was approved by the EPA for City drinking water as stated inthe agreement. Attorney Jennings also noted that Robert E. Owens & Associates would be paying all of the cost in repairing the tank (LaGrow would not pay anything), around $13,000.00. Attorney Conlon asked Mr. Jennings if Paragraph 4 of the Corporate Surety Bond needed to be reworded? Attorney Jennings answered by saying he did not feel it needed to be reworded, because we have the agreement. Attorney Conlon asked what was the original contract - because he felt this contract should cover the Settlement Agreement. Attorney Jennings asked Mr. Conlon to read Paragraph 5 aloud. Attorney Conlon read Paragraph 5 as follows: The intention of this bond is to insure the faithful performance of the Settlement Agreement attached by Principal. If Principal fully performs its obligation, this obligations shall be void; otherwise the obligations shall remain in full force and effect subject only tothe following provisions of this bond. Attorney Conlon then stated that it did include the Settlement Agreement and he felt that paragraph 5 was very informative. Attorney Jennings continued by saying that since LaGrow was following the directions of their Engineer, Robert E. Owens & Associates, that our case against LaGrow was weak. We could go to Court and the decision could go either way (LaGrow wins or he doesn't win). But the City would be paying LaGrow $45,000.00 (the final draw being $49,500.00 with interest for 4 years). Attorney Jennings recommended that the Council approve the settlement agreement between the parties. Vice Chairman Knight asked for any questions. Councilman Watford asked the Attorneys to explain about the corporate bond. 3416 Attorneys Conlon & Jennings explained that by the company having a corporate bond, if they should neglect to complete the work - we could in turn sue for $100,000.00 (but not limited to). Councilman Chapman asked if the Engineer was bonded before /on the construction of the water tank; and asked also about the concrete being dropped instead of being poured. Attorney Jennings answered Councilman Chapman by stating the Engineer was not bonded, and about the cement being dropped or poured, that was discussed at a staff meeting (pre - construction workshop meeting). Councilman Watford asked the attorneys what would the city do if something didn't work good in 5 years - would we sue under the old contract or the new agreement? And would we have any advantages? Attorney Jennings answered by stating, "Under the old contract there was nothing stating they would repair anything, but the new agreement releases LaGrow and his bonding company and it stated that it has from 1 - 20 year warranty ". Vice Chairman Knight said he knew personally that this case has been going on for a long time and he felt with the 20 year warranty it sort of throws a new light on the matter and then asked for any further questions. There were no questions. Vice Chairman Knight read the resolution as follows: WHEREAS, the City Council assembled in special session to hear a report on the case City of Okeechobee versus LaGrow Irrigation, Inc., Robert E. Owen & Associates, Inc. and Cincinnati Insurance Company; and WHEREAS, details of this matter were discussed with the Council by trial attorney Lester Jennings; and WHEREAS, trial attorney Jennings detailed the alternatives and pros and cons of a trial of the matter as opposed to settlement of the matter; and WHEREAS, after answering questions from the Council and City Attorney relative to details of a proposed settlement; and WHEREAS, said trial attorney Lester Jennings is recommending Council approve a settlement agreement between the parties; and WHEREAS, it appearing settlement of the cause will be to the best interest of the City and its residents, NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OKEECHOBEE, FLORIDA as follows: 1) On recommendation of the City's trial attorney Lester Jennings the matter of the action in Circuit Court between the City of Okeechobee, Plaintiff and LaGrow Irrigations, Inc., Robert E. Owens & Associates, Inc. and Cincinnati Insurance Company is settled in accordance with the terms and agreements of the attached documents and the necessary officials of the city are hereby authorized to sign said documents. 2) This resolution shall take effect as provided by law. Introduced and passed in special session assembled this 16TH day of FEBRUARY 1984. ATTEST: 4!QC.-4,) 4200?2(; Mayor 3417 After the reading of the Resolution, Councilman Chapman moved' to adopt the resolution as is. Councilman Watford seconded the motion. Motion carried. Vice Chairman Knight recessed the meeting for 5 minutes at 7:35 P.M. Vice Chairman Knight called the meeting back to order at 7:45 P.M. and asked if there as any further business to be brought before the Council. 84 -22 Members of the Industrial Development Association, County Commissioners and the Central lorida Regional Planning Council were presentto discuss the receipt of the County's rant to be used for an Industrial Park, With a beginning construction deadline of arch lst, 1984. The main concern of this discussion was to assure the Industrial Deve- lopment Authority and the Central Florida Regional Planning Council of the fact that the ity of Okeechobee would provide the Industrial Park with City water and sewer, so the grant could still be given to the County of Okeechobee. Discussion ensued relative to the water and sewer hookup for the Industrial Park. Councilman Watford stated that before the City can find out whether or not we (the city) an supply the water and sewer needs we (the city) must know how much water is needed for the Industrial Park. Mr. Jim Dwayne, representative of the Central Florida Regional Planning Council, offered the assistance of the Central Florida Regional Planning Council's attorney in drawing up n agreement, to "agree to agree ". The Central Florida Regional Planning Council's attorney ill contact the City attorney, Friday, February 17, 1984, to work up the document and have it ready for the Council meeting Monday night (February 20th). Council concurred. GENDA ITEM #III - ADJOURNMENT There being no further business to discuss, the meeting was adjourned at 8:56 P.M. ATTEST: Bonnie S Thomas,CMC City Clerk City of Okeechobee Edward W. Douglas, D.C. Chairman City of Okeechobee THERE IS A TAPE OF THIS MEETING IN ITS ENTIRETY ON FILE IN THE CITY CLERK'S OFFICE AGENDA CITY OF OKEECHOBEE COUNCIL CHAMBERS SPECIAL MEETING FEBRUARY 16, 1984 7:00 P.M. I. Call to Order II. Adoption of a Resolution resolving the difficulties with the City's 1.0 Million Gallon Ground Level Water Storage Tank. III. Adjournment.