UTILITY COMMITTEE
The Utility Committee Meeting was held on May 23, 2005, at 5:30 p.m. with Chairman Carey presiding. Members present were Mr. Ruane, Mr. Sadusky, Mr. Cregar, and Mr. Snaman. Members of Council present were Mr. Pitts, Mr. Slavin (arrived at 5:42 p.m.) Mr. Ritter, Mr. Salters (arrived at 6:18 p.m.) and Council President Williams.
AGENDA ADDITIONS/DELETIONS
Mr. Sadusky moved for approval of the agenda, seconded by Mr. Snaman and unanimously carried.
Puncheon Run Pumping Station Upgrades
The FY-2005 Operating Budget for the Public Works Wastewater Management Division included a capital project to upgrade the existing Puncheon Run Pumping Station. The upgrade includes the replacement of the existing pumps and piping, installation of new electrical equipment and controls, installation of a new HVAC system, bypass pumping and miscellaneous building improvements. The low bid was received from C&D Contractors, Inc., Wilmington, Delaware, in the amount of $951,290.
Members were advised that based on the referenced estimated expenses, construction phase expenses are projected to be $1,061,290, of which $502,020.47 has been allotted in the FY-2005 budget. The remaining funds are to be reassigned from the U.S. 13 East Interceptor Sewer Project which has a lower construction priority at this time. Partial funding for the U.S. 13 East Interceptor Sewer Project was provided by a bond issue in 2003. Bond funds in the amount of $1,000,000 have been assigned to the U.S. 13 East Interceptor Sewer Project. Due to alignment issues, staff availability, and easement acquisition for the U.S. 13 Interceptor Sewer Project, staff requested that the project budget for the interceptor sewer be reduced until these issues have been fully resolved. The remaining $250,000 in the interceptor sewer project is being provided from the Impact Fee Reserve Fund and will allow construction of the first segment of the alignment on property owned by Dover Downs, Inc. To change the use of these bond funds from the U.S. 13 Interceptor Sewer Project to the Puncheon Run Pumping Station Upgrade, a resolution to amend bond documents will be required, which will be provided by the Finance Department for Council consideration prior to the use of the funds.
Staff recommended approval of the low bid submitted by C&D Contractors, Inc., in the amount of $951,290 for the construction of the Puncheon Run Pumping Station Upgrades and authorizing the Finance Director to prepare a bond resolution for Council consideration to amend the projects to be funded with the 2003 bond issues. The estimated total construction costs associated with the project is $1,061,290.
Mr. Koenig, Public Works Director, explained that the inflow and infiltration and brown water issues must be resolved before the City can begin working on the U.S. 13 Interceptor Sewer Project, which was the original plan for bond monies to extend through Dover Downs.
Mr. Ritter referred to the suggestion made during the past Council Retreat regarding the concept of the pumping stations being owned by the County. He noted that the City would not have to consider this issue if the City would relinquish ownership of the pumping stations to the County.
Responding, Mr. DePrima stated that he met with County representatives and indicated the City’s interest in having the pumping stations owned by the County. Although the initial reaction was not positive, he stated that before they would give it serious consideration, the pumping station would need to be rehabilitated. Members questioned what effect this would have on the City’s debt since bond funds would be used for the project. Mrs. Mitchell, Finance Director/Treasurer, was requested to consult with the City’s Bond Counsel regarding this matter.
Mr. Ruane moved to recommend approval of staff's recommendation for awarding the construction contract to C & D Contractors, Inc. in the amount of $951,290 for the construction of the Puncheon Run Pumping Station Upgrades; to authorize staff to negotiate an engineering services agreement with Whitman Requardt & Associates to provide technical review of shop drawings, attend monthly construction meetings and answer all technical interpretation of the design and construction drawings (the estimated costs of these services will be $60,000. A separate agreement will be brought to Council for formal authorization); to authorize funding in the amount of $50,000 for a construction contingency for change orders, which represents 5.25% of the low bid; and to authorize the Finance Department to prepare a bond resolution for Council consideration to amend the projects to be funded with the 2003 bond issue (Attachment #1 - Bond Resolution). The estimated total construction costs associated with the project is $1,061,290. The motion was seconded by Mr. Sadusky and unanimously carried.
Time and Material Contract - George & Lynch, Inc.
In July 2004, Kent County Levy Court approved a low bid from George & Lynch, Inc. for a general labor and equipment contract, also known as a time and materials contract. In accordance with Section 3.3 (J) of the City of Dover Purchasing Policy, “The City of Dover is permitted to use state, county, municipal, and other government or private company contracts to purchase material once it has been determined that the procedures outlined within this policy will not be violated. Any deviation from this policy for the purpose of cooperative purchasing must be approved by the City Manager prior to entering into any purchase agreement”. Since there have been a number of bidders on various projects during the current bidding environment, staff requested consideration of several projects to be constructed using the labor, materials, and equipment charges identified in the low bid from George & Lynch, Inc., as follows:
Location Remaining/Proposed Project Budget
Division Street Water Main Upgrade $598,340.00 (FY-2005)
U.S. 13 East Interceptor Sewer Main - Segment 1 $247,542.55 (FY-2005)
White Oak Farms Pump Station Force Main Rerouting $160,000.00 (FY-2006)
Kings Highway Sewer Diversion Project $ 60,000.00 (FY-2006)
George & Lynch, Inc. has offered to extend the low bid unit prices for labor, materials and equipment to the City through December 31, 2005. Staff recommended acceptance of the extension of the low bid from George & Lynch, Inc. through December 31, 2005 for the purpose of providing general labor, materials and equipment under a "Time & Materials" contract for the purpose of constructing public works projects as authorized by the City's Purchasing Policy.
Mr. DePrima explained his authorization for deviation in accordance with the Purchasing Policy. Although the Public Works Director had indicated his opinion that Section 3.3 (J) of the Purchasing Policy includes labor, Mr. DePrima stated he disagreed and explained that the Purchasing Policy allows for authorization by the City Manager for deviation, which is what should be considered in approving the recommendation.
Mr. Ruane questioned if Section 3.3 (J) of the Purchasing Policy should be amended to include the purchase of “labor”. He relayed concern with the City Manager having to continuously deviate from the policy.
Mr. Ruane moved to recommend that the City Manager, along with the Finance Director/Treasurer, review the Purchasing Policy for an amendment that would eliminate the need for the City Manager to routinely use deviation authority to be brought back to the committee for review. The motion was seconded by Mr. Cregar and unanimously carried.
Responding to Mr. Carey, Mrs. Mitchell stated that approval of the time and material should remain within the budget of the project costs.
In an attempt to resolve any concerns at this time, Mr. DePrima suggested that members include a statement that would authorize the Public Works Director to purchase project material when an analysis shows that direct purchases are less than material costs estimated by George & Lynch and under the budgeted amount.
Mr. Sadusky moved to recommend approval of staff’s recommendation to accept the extension of the low bid from George & Lynch, Inc. through December 31, 2005 for the purpose of providing general labor, materials and equipment under a “Time & Materials” contract for the purpose of constructing public works projects, as authorized by the City’s purchasing policy, and further authorize the Public Works Director to purchase project material when an analysis shows that direct purchases are less than material costs estimated by George & Lynch and under the budget amount. The motion was seconded by Mr. Snaman and unanimously carried.
Mr. Snaman moved for adjournment, seconded by Mr. Sadusky and unanimously carried.
Meeting Adjourned at 6:30 P.M.
Respectfully submitted,
Carleton E. Carey, Sr.
Chairman
CEC/jg
S:ClerksOfficeAgendas&MinutesCommittee MinutesUtilityCommittee Block.wpd
Attachments
Attachment #1 - Bond Resolution