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HomeMy WebLinkAbout01-24-1986 Special Council Minutes 361 A special meeting of the Canton City Council was held on January 24th, 1986 in Council Chambers. PLEDGE OF ALLEGIANCE OPENED THE MEETING, FOLLOWED BY THE INVOCATION GTVEN BY MAYOR DONALD E. EDWARDS. Mayor Edwards asked for roll call at 8:00 p.m, Present: Aldermen Kovachevich, Zilly, Steck, Sarff, Workman, Bohler, May, Chapman. Absent: None. PURPOSE OF THE SPECIAL MEETING WAS READ AS FOLLOIaS: a) To consider and take final action on loan agreements with B&K Specialty Casting Co- mpany; and, b) To consider and take final action on ag,ree- ments(s) for the purchase of real property in the Enterprise Zone by or on behalf of ~ B&K Specialty Casting Company; and, ~ c) To take such other an d further action with (v respect to the B&K Specialty Casting Co- W mpany's development project as the Eouncil m may deem necessary or proper; and, Q d) To consider and take final action concerning the employment of_ firms to make soil borings, analysis of borings, and recommendations with respect to the Canton Dam Project. Dave Dorgan was invited to the me~ting and Mayor Edwards said he told Dave he would be compensated for coming. Jim Malmgren City Attorney informed the council of the following 2 loan agreements. They both have to do with gublic funds which we have received from the Department of Health & Human Ser~vices. The loans are both for $50,000. The agreements themselves will be at 9% for the first two years and then at 13% for the balance of the loan. The Working Capital loan is for 5 years and the Buildin~ & Grounds loan is for 10 ,years. The two loans are very similar except for collateral Provis~ons. RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANT~N AND B&K SPECIALTY CASTING COMPANY, (BUILDING & GROUNDS) First reading, read by title. Motion by Alderman Sarff, second by Alderman Zilly, the resolution be adopted. Roll call. AYES - Aldermen Kovachevich, Zilly, Steck, Sarff, Workman, Bohler, May, Chapman, NAYS - None. Motion carried. 8 AYES 0 NAYS 0 ABSENT. Resolution being ~~1134. RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND B&K SPECIALTY CASTING COMPANY. (WORKING CAPITAL) First reading, read by title, Motion by Alderman Kovachevich, second by Alderman Chapman, the resolution be adopted, Roll call. AYES - Aldermen Chapman, May, Bohler, Workman, Sarff, Steck, Zilly, Kovachevich, NAYS - None. Motion carried. 8 AYES 0 NAYS 0 ABSENT. Resolution being ~~1135. Agreement lieing ~~471. Jim Malmgren City Attorney said that the next 2 resolutions approve agreements for deeds. The lots being sold to B&K Specialty Casting Company at a value of $5,000 per acre. Purchase price depending upon how many jobs created one year from now could go down to $2,000 an ac~e. Lot 18 is 4,914 acres and Lot 19 is 3,309 acres for a total acreage of 8.223. There is no real distinction between these 2 agreements accept there is a dollar value based upon the area in each of the 2 platted lots, 362 CONTINUED JANUARY 24TH, 1986 In light of the money crunch and until we can ~et some DCCA money released and available which we anticipate will take a minimum of 30 days, I would not object to a moratorium on the original. ~ayment for a short period of time, you would probably feel more safe at 45-60 days. Mayor Edwards said we should put two 90 day deferments on the down payment. RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND B&K SPECIALTY CASTING COMPANY, (LO'~'~~18) Fir..st reading, read by title. Motion by Alderman Sarff, second by Alderman Chapman, the resolution be adopted. Roll call, AYES - Aldermen Kovachevich, Zilly, Steck, Sarff, Workman, Bohler, May, Chapman. NAYS - None. Motion carried. 8 AYES 0 NAYS 0 ABSENT, Resolution being ~~1136. Agreement being ~~472, RESOLUTION - APPROVING AN AGREEMENT BETWEEN THE CITY OF CANTON AND B&K SPECIALTY CASTING COMPANY, (LOT ~~19) First reading, read by tit1P.~ Motion by Alderman May, second by Alderman Zilly, the resolution be adopted. Roll call. AYES - Aldermen Chapman, May, Bohler, Workman, Sarff, Steck Zilly, Kovachevich. NAYS - None. P'Iotion carried. Resolution being ~~1137. Agreement being ~~473. Cliff Sagaser City Engineer introduced Otis Michaels a soil engineer from Daily & Associates of Peoria and Urbana. Engineers from the Department of Transpo~tation Division of Water Resources were in Canton with respect to the $300,000 grant that's to be used for repairs on the dam. We told them that we were making our annual inspection which is investigating inside of the tunnel checking for all cracks, checking the size of cracks as compared to a year ago, stated Clif.f Sagaser, Ra.y McKinney T,~ater Supt, reported last week there were significant new cracks and they were located in the first 60 feet of the South end of the tunnel, What is happening now is the water flowing under the dam in the area of the old stream bed has finally eroded and washed with it enough of the very sma.il ~aterial ~o allow a replacement of that material ~s~ CONTINUED JANUARY 24TH, 1986 by sand and gravel under the floor of the tunnel in the area clear thru the dam. Once this reaches a point of no resistance on the very end of it the sand and gravel material will flow rapidly out of that cavernous type thin~ and the water will carry that material out and you will have a failure. The time increment involved from its very beginning to a failure acts in a spiral type way, meaning the flat side of the spiral is time and you've been going thru that, an d every minute from here on out it will get worse, stated Cliff Sagaser. Cliff called IDOT to ask if we could proceed to work on this prior to getting our grant letter and accepting it? Their answer was yes. But any obligation we incur is our responsibility. Otis Michaels had sent a lett~r to Cliff which states the Scope of Services . ~ l. Procure an~. review records of available information regarding original construction and remedial improve- ~ ments of the ear~hen dam. Have reproducible mylars (V made of sheets expected to be useful in the evaluation W phase. m 2. Investigate geology of site. Information relating to 'Q naturally placed and man placed earth materials will save time and money in investigation and will assist in identi£ication of soils. 3. List possible solutions to remedy observed problems and estimate the usefulness of field data in deter- mining the effectiveness and need for each solution. Identify order of magnitude of cost £or remedial work. This will yield a scope for the fiel.d investigation. 4. Submit a formal request for an on site survey by City personnel. 5. Procure site specific soil data: a) Anticipate seven soi~.'.borings to depths varying from 40' to 70'. Lab testing of samples for properties important to dam construction. Equipment and lab services shall be done by Whitney & Associates. Monitoring of water level in boreholes shall be requested of City personnel. b) Possible use of geophysical methods of soil investi~,ation (such as ground pene- trating radar) to identify shape of core and locate voids. Field work and evalu- ation of results are by others. 6. Assimilate all data, prepare logs, draw exhibits, and prepare a brief report. 7, Evaluate alternate improvements based on information gained from items 5 and Fi. Recommend repairs and improvements to the dam that provide greatest assurance of structure maintaining integrity. Provide preiriminary cost estimate. 8. If requested, provide assistance in water works improvements (no assistance anticipated). ~64 CONTINUED JANUARY 24TH, 1986 9. Prepare plans and technical specifications for improvements to the dam. Preparation of contract documents by City personnel. 10. Assistance in bid phase and construction inspection as required to assist City personnel. Otis Michaels explained the scope of services from 1 thru 7, which is basically directed toward identification and problem solvin~. The change of direction comes at the conclusion of ~~7 and at that point the Public Works Dept. and the City can consider what the recommen- dation is. From that poin~ on we don't know what we will come up with. Alderman Sarff asked if the preliminary funds would come from the Glater & Sewer account or the Lake Development account? Pat Wright City Treasurer said it would have to come from the Water & Sewer account. Mayor Edwards asked Otis Michaels if he had seen the cracks and he replied he had not been in the tunnel but instead had seen drawings. He stated that from the pictures he had seen there was some e~fort in compacting that dam. His firm will do a preliminary scenario as to what has taken place. What he believes is the source of the problem is the compressibility of the material underneath the dam. In studying the drawings and making some corrections o.f some of the description in them, or, making some interpretation in~correcting them, he believes it is a case of differential thickness of compressible material and the very stiff concrete beam. What that tunnel basically is doing, is resting on one post in the center under the core of the dam, and the other post bein~ thi~ker film material on a thinner press of the base the differential weight in the shape of the dam. That tunnel is under a considerable amount of stress af~d has been from the beginning. When one area weakens it ejects stress into another area. I don't feel any sense of real emergency. But on the other hand its dangerous to sit by at~!d look at something and say its been there forty-two years so what's another 2 weeks! Alderman Chapman asked Cliff Sagaser City En~ineer when he speaks of failure does he mean the whole dam? Cliff replied that his opinion is we know there's water leaking under the dam because its coming out of our inlet manhole. The old creek should not be draining and flowin~ in the area where the Sou~h 60 feet of this tunnel is. Mayor Edwards recommended we hire Daily & Associates Engineers, Inc. Motion by Alderman May, second by Alderman Sarff the city hire Daily & Associates, Engineers, Inc, on a time and material basis as presented in the scope services until an agreement can be signed. Ro11 call. AYES - Aldermen Chapman, May, Bohler, Workman, Sarff, Steck, Zilly, Kovachevich, NAYS - None. Motion carried. 8 AYES 0 NAYS 0 ABSENT. Council recessed at 9:13 p.m, and reconvened at 9:20 p.m. Mayor Edwards said Bruce Buehrig has a serious cash flow prob3:em. We~re suggesting a way we could provide some collateral so sorne private loans might be rnade for a 90 day period, Lots 4, 5, 6&7 in the Industrial Park ~ihich totals 9.49~~3 acres' would give the necessary collateral for a loan. Dave Dorgan stated that the banks could not lend any working capital until collateral was behind it. Motion by Alderman Workman, second by Alderman Chapman, that lots 4 thru 7 be used as collateral to Bruce Buehrig for a 90 day period. Roll call. AYES - Aldermen Kovachevich, Zilly, Steck, ~arff, Workman, Bohler, May, Chapman. NAYS - None, Mo~ion carried, 8 AYES 0 NAYS 0 ABSENT. 365 CONTINUED JANUARY 24TH, 1986 Bruce Buehrig reported that a sign up sheet was posted at his business and that any employee who wanted to transfer from the foundry to Canton to sign on. We have 9 hourly employees who have indicated they are willing to transfer. Were anticipating probably 5 or 6 hourly employees will transfer and all the staff except 2, which wi11 mean will probably hire 30-35 people. Mayor Edwards thanked Dave Dorgan and Bob Ketchum for their assistance. ADJOURNI~EI4T.:- Motion by Alderman Sarff, second by Alderman May, to adjourn. Voice vo~e, motion carried. Council adjourned at 9:33 p.m. ~ ~ ~ W m a[ ITY C ERK AP PRO VE D. ~L-- cY_.a~--~- c~ YOR