SPECIAL UTILITY COMMITTEE
A Special Utility Committee Meeting was held on April 10, 2006 at 5:45 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Sadusky, Mr. Cregar, and Mr. Snaman. Members of Council present were Mr. Slavin, Mr. Hogan, and Council President Williams. Mayor Speed was also present.
AGENDA ADDITIONS/DELETIONS
Mr. Snaman moved for approval of the agenda, seconded by Mr. Sadusky and unanimously carried.
Division Street Water Main/Bayard Avenue Water Main Project Budget Increases
Mr. DePrima, City Manager, advised members that the original intent of the Division Street Water Main Upgrade Project was to improve the water supply from the east side of the City to the west side by replacing old 8-inch and 14-inch cast-iron pipes with a new 16-inch pipe. In addition, the project became an important part of the City's program to eliminate brown water. Construction on the Division Street Water Main Upgrade Project began on September 19, 2005 and has progressed continuously since that date under a Time & Materials contract with George & Lynch, Inc. The contract was approved by City Council on June 13, 2005. The project was budgeted in FY 2004/05 at $660,000; and $585,886 was carried into FY 2005/06. The project budget was increased to $785,866 as part of the November 14, 2005 budget amendment when it had already appeared that the project was running over the projected costs.
Mr. DePrima explained that to avoid these types of cost overruns and to detect them in a more timely manner, a weekly monitoring system will be required for all future Time and Material Contracts. He stated that Segment 1 of the Division Street Water Main Upgrade Project (from State Street to the St. Jones River) is now in service and that Segment 2 (from the St. Jones River to Bayard Avenue) is awaiting the results of bacteriological testing and will be tied in and placed into service as soon as acceptable results are received. A few minor restoration requirements for Segment 2 remain.
Mr. Koenig explained that there were several obstacles, including unmarked old utilities, uncertain Miss Utility markings, changes in service shutdown schedules, unexpected pavement materials (concrete vs. hot mix), and changing roadway restoration requirements. These obstacles have caused significant construction challenges and cost overruns for this project.
In addition, Mr. Koenig explained that it was necessary to upgrade the water pipe from Division Street to the Bayard Avenue Water Tank in January 2006 in order to address pipe issues associated with the old pipe segment located in Bayard Avenue. He stated that this pipe segment has been identified in various public presentations related to brown water and is consistent with the Cast Iron Replacement/Relining project identified in the budget document. The pipe material costs, in the amount of $76,000, could have been charged to the Cast Iron Pipe Replacement Program which was funded in the amount of $100,000. However, it was decided to simply add it to the Division Street Water Main Project.
Mr. Koenig assured members that the George and Lynch Contract work will stop on Division Street at Bayard Avenue. The Bayard Avenue pipe will be installed by the City’s utility construction crew. The Public Utilities Manager and engineers will re-evaluate how the new 16-inch Division Street Water Main west of Route 13 will be connected to the line east of Route 13 to develop the most cost-effective route.
Members were advised that, due to the construction obstacles and the additional pipe for Bayard Avenue, this project is $483,350.77 over budget. Some of the cost overage has been addressed by transferring monies from other project accounts, resulting in the need for an additional $260,000. Staff recommended the approval to transfer an amount up to $260,000 from the Water/Wastewater Capital Asset (Brown Water) Reserve to the Division Street Water Main and Bayard Avenue Water Main Projects.
Responding to Mr. Sadusky, Mr. Koenig explained that if this project was accomplished by way of a total cost contract, there would have been several change orders necessary; therefore, the extra costs may still have applied.
Several members relayed concerns with the increases compared with the original amount budgeted. Responding, Mr. Koenig stated that this project was considered a priority and that his direction was to do whatever necessary to have it accomplished. He explained that there were several reasons for getting this project completed, noting that DelDOT has been urging the City to have it completed for a couple of years so that they could move forward with their resurfacing program.
Mr. Slavin suggested confirmation of invoices and cost and time estimates necessary to complete the Bayard Avenue, and that internal procedures be established to avoid any future occurrences. If major capital infrastructure is necessary, he suggested that the City advise the citizens that there will be substantial costs involved in addressing the brown water.
Mr. Ruane moved to recommend staff verify all George & Lynch invoices and release payment for valid charges; confirm time and cost estimates for Bayard Avenue Project and bring to Council in two (2) weeks; and design internal controls for time and materials projects and bring to Council in two (2) weeks. The motion was seconded by Mr. Snaman and unanimously carried.
Mr. Ruane moved to recommend approval of a transfer in an amount up to $260,000 from the Water/Wastewater Capital Asset (Brown Water) Reserve to the Division Street Water Main and Bayard Avenue Water Main Projects. The motion was seconded by Mr. Sadusky and unanimously carried.
Authorization to Purchase Security Fencing with Card Reader - Electric Department and Power Plant
Mr. DePrima advised members that the City of Dover has requested Federal FY-2005 (Physical Security Enhancement) grant funds for improvements to various sites within the City of Dover's utility systems. The proposed fencing project would limit access to the rear of the administration building where equipment, vehicles, tools, and project materials are stored. This project will also limit access to the Electric Department's designated environmental hazard area.
In addition to the new fencing, Mr. DePrima explained that an electronic gate reading card will be installed that will only allow access for employees of the Electric Department and McKee Run Power Plant. This type of fencing was listed on the City's annual fencing contract which was awarded to Duck's Quality Fences earlier this fiscal year. Duck's Quality Fences will complete the fencing installation for this project upon authorization. Electric Department staff is awaiting the signed authorization from DEMA for this improvement and will utilize the sub-grant process offered by DEMA to complete the project. Staff is anticipating the written authorization of the sub-grant from DEMA by April 11, 2006. This purchase will be included in the final budget revisions and will be 100% reimbursed through the Homeland Security Grant Program.
Staff recommended authorization to use Federal FY-2005 Homeland Security grant funds to purchase and install a 30-foot slide gate with all electric controls at the Electric Administration Building and McKee Run Power Plant. Installation will be completed by the City's authorized fence contractor, Duck's Quality Fences, using some of the items on the annual fence contract. The electronic components of this purchase have been negotiated with the fence contractor. Staff will adjust the final budget to reflect this purchase as well as the receipt of the grant funds.
Mr. Snaman moved to recommend approval of staff’s recommendation, seconded by Mr. Sadusky and unanimously carried.
Mr. Cregar moved for adjournment, seconded by Mr. Ruane and unanimously carried.
Meeting Adjourned at 6:30 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Chairman
CEC/jg
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