REGULAR CITY COUNCIL MEETING MINUTES JULY 27, 2009

Transcription

1 Call to Order: Mayor Bunkers called Ihe Regular City Council Meeting to order at 6:00 PM, at the Ocean Shores Convention Center. The meeting was audio and video recorded. Council present: Councilmembers Patrick, Crumpacker, Berry, Creighton, Johnson, Skewis, and French. City Staff present: Mayor Bunkers, City Attomey Art Blauvelt, Finance Director Art Wuerth, Police Chief Mike Styner, Fire Chief Jim Hodges, Public Works Director Ken Lanfear, City Planner Alicia Bridges, Waterworks Utility Superintendent Miles Beach, Librarian Judy Stull, and Deputy Clerk Julie Minsker. Other present: Wayne Hagen, Jr., attorney, John Dippold, attorney, Bob Glenn, Lakeside Industries Division Manager, Mark Rosencrantz, attorney, and Rod Hudson, D.L.B. Earthwork Company Project Manager. Roll Call: Deputy Clerk Minsker called roll. Flag Salute: Meeting Agenda Approval: Councilmember Creighton led the flag salute. Tape 1, #41 - Councilmember Crumpacker made the Motion to approve the Meeting Agenda with the addition of the two bid protest appeals that were received, one from Lakeside Industries, and one from Rognlins, Inc. Councilmember Johnson seconded the motion. The Motion passed unanimously. Appeal Hearing: Lakeside Industries LlD-2007 Bid Appeal Contract An Appeal Hearing to review the Protest Review Committee decision regarding the LID Pavement Improvement Project Bid #07PW dated July 23, Tape 1, #80 - Councilmember Crumpacker made the Motion to recess the Regular City Council Meeting and convene into Appeal Hearing. Councilmember Johnson seconded the motion. The Motion passed unanimously. Mayor Bunkers recessed the Regular City Council Meeting at 6:03 PM to convene into the Appeal Hearing in the appeal of the Protest Review Committee decision regarding the Pavement Improvement Project LID , Contract Art Blauvelt confirmed that Mr. John Dippold, attorney for Lakeside Industries was present, and inquired if a representative was present for Granite Construction; one was not. Mr. Blauvelt stated that the appeal hearing statute is OSMC (0). The City Council will act in a quasi judicial role to hear the bid protests. Mr. Blauvelt asked each Councilmember the following appearance of fairness questions: 1. Do you have any financial interests in or are you shareholders in Lakeside Industries or Granite Construction Company? 2. Do you stand to gain or lose any financial benefit as a result of the outcome of this hearing? Page 1 of 14

2 Appeal Hearing Lakeside Industries LlD-2007 Bid Appeal Contract Do any of you have any relatives that are employed by any of the participants in these proceedings: Lakeside Industries or Granite Construction? 4. Have any of you engaged in any ex parte communications with either the supporters of this appeal or the opponents of this appeal? Have you had any conversations with anyone associated with Lakeside Industries or Granite Construction regarding this appeal? 5. Can each of you hear and consider this appeal in a fa ir and objective manner? The Councilmember's responses follow: Councilmember Patrick: no, no, no, no, yes Councilmember Crumpacker: no, no, no, no, yes Council member Berry: no, no, no, no, yes Councilmember Creighton: no, no, no, no, yes Councilmember Johnson: no, no, no, no, yes Councilmember Skewis: no, no, no, no, yes Councilmember French: no, no, no, no, yes Art Blauvelt asked Lakeside Industries attorney if they wished to challenge a Councilmember on the grounds of appearance of fairness. There was no challenge. Mr. Blauvelt presented the following list of exhibits for Lakeside Industries to be recorded: Exhibit #1 - memorandum on hearing procedures, dated July 26, 2009, eight pages Exhibit #2 - letter dated July 24, 2009 to Diane J. Foss, City Clerk, signed by John Dippold, the appeal letter in this matter, four pages Exhibit #3 - letter dated July 17, 2009 to Jenny Belcher, Purchasing Coordinator, from Robert Glenn, the initial bid protest, two pages Exhibit #4 - letter dated July 17, 2009 to Lakeside Industries from Art Wuerth, Finance Director, one page Exhibit #5 - decision letter of the Protest Review Committee dated July 23, 2009 to Lakeside Industries from Art Wuerth, Finance Director, two pages Exhibit #6 - page 14 from the Granite Construction bid documents, list of subcontractors, one page Exhibit #7 - page 14 of the Lakeside Industries bid documents, list of subcontractors, one page Exhibit #8 - additional memorandum from City Attorney dated July 26, 2009, four pages o Exhibit A, page 1 - contractor information sheet submitted by Lakeside Industries dated April 18, 2008 o Exhibit A, page 2 - list of subcontractors submitted by Lakeside Industries dated April 18, 2008 o Exhibit B, Page 1 - contractor information sheet submitted by Lakeside Industries dated May 27, 2008 o Exhibit B, page 2 - list of subcontractors submitted by Lakeside Industries dated May 27, 2008 Art Blauvelt asked the City Council if oral presentation would be allowed from the Appellant and City staff to assist with Council'S decision Regula r Meeting Page 2 of 14

3 Appeal Hearing Lakeside Industries LlD-2007 Bid Appeal Contract Tape 1, #364 - Councilmember Skewis made the Motion to allow Lakeside Industries and City staff a five minute time frame for oral presentation. Councilmember Creighton seconded the motion. The Motion passed unanimously. Ken Lanfear presented an overview of bids received for the Pavemenllmprovement Project LID , Contract The apparent low bid was from Granite Construction with a bid of $4,884, The second low bidder was Lakeside Industries with a bid of $4,886, A total of two bids were received. John Dippold, Lakeside Industries' attorney, addressed the Council stating the appeal is related to the bid document requirement to list "no work" in sections that do not pertain to the project. Granite Construction did not follow this requirement therefore deeming the bid non-responsive. This requirement should not be waived by the City. Not listing "no work ~ provided Granite Construction a substantial advantage over Lakeside Industries. Council questioned the substantial advantage for Granite Construction over Lakeside Industries. Mr. Dippold responded that because Granite Construction did not fully complete the bid document they have an opportunity to walk away from the bid. The City should abide by its own requirements and award the contract to Lakeside Industries. Mr. Blauvelt asked if anyone was present to represent Granite Construction. There was no response. Mr. Blauvelt commented that in April and May of 2008 the City honored contracts submitted by Lakeside Industries that failed to list "no work" in sections that did not apply to the bid document project. He recommended Council reaffirm the Protest Review Committee's decision. There was Council discussion that the City's bid documents criteria should be followed ; bids should be deemed nonresponsive if information is omitted; and whether Lakeside Industries could have walked away from past agreements based on fa iling to fully complete bid documents. Mr. Blauvelt commented that if there were no other questions the Council was free to discuss issues in an open public meeting, or adjourn to an executive session. When Council is ready to make a motion the public hearing should be adjou rned to reconvene into the open regular meeting. Tape 1, # CouncilmemberCrumpackermade the Motion to adjourn the public hearing and reconvene into the Regular City Council Meeting. Councilmember Johnson seconded the motion. The Motion passed unanimously. Mayor Bunkers recessed the Appeal Hearing and reconvened into the Regular City Council Meeting at 6:35 PM. Tape 1, # Councilmember Patrick made the Motion to adopt the Resolution of the City Council of the City of Ocean Shores, Washington affirming the decision of the Protest Review Committee dated July regarding Pavement Page 3 of 14

4 Appeal Hearing Lakeside Industries L1D-2007 Bid Appeal Contract Resolution No.617 Affirming Decision Appeal Hearing: Rognlin's, Inc. Appeal Roundabout Project Improvement Project LID Contract Councilmember Crumpacker seconded the motion. Council member Patrick commented that Lakeside Industries has done an outstanding job for the City of Ocean Shores but it is important to go with the low bidder. Tape 1, # The Motion passed with six yes votes and one no vote by Councilmember Creighton. Tape 1, # Councilmember Crumpacker made the Motion to recess Ihe Regular City Council Meeting and convene into the Appeal Hearing. Councilmember Skewis seconded the motion. The Motion passed unanimously. Mayor Bunkers recessed the Regular City Council Meeting and reconvened into the Appeal Hearing at 6:38 PM. Art Blauvelt stated that the Council will consider Rognlin's, Inc. Appeal regarding the Protest Review Committee's decision for the Ocean Shores Roundabout Project No. TIB#6-w-959(004)-1 Contract 09PW-06. Rognlin's alleges the apparent low bid submitted by D.L.B. Earthwork Company is non-responsive and should not be considered because the bid documents did not list the full names, addresses, and business licenses of its subcontractors; and it failed to insert "no work" where applicable on the bid documents. Mr. Blauvelt asked each Councilmember the following appearance of fairness questions: 1. Do you have any financial interests in or are you shareholders in Rognlin's, Inc. or D.L.B. Earthwork Company? 2. Do you stand to gain or lose any financial benefit as a result of the outcome of this hearing? 3. Do any of you have any relatives that are employed by any of the participants in these proceedings: Rognlin's, Inc. or DLB. Earthwork Company? 4. Have any of you engaged in any ex parte communications with either the proponents or the opponents of this appeal? Have you had any conversations with anyone associated with Rognlin's, Inc. or DLB. Earthwork regarding this appeal? 5. Can each of you hear and consider this appeal in a 'fair and objective manner? The Councilmember's responses follow: Councilmember Patrick: no, no, no, no, yes Councilmember Crumpacker: no, no, no, no, yes Councilmember Berry: no, no, no, no, yes Councilmember Creighton: no, no, no, no, yes Councilmember Johnson: no, no, no, no, yes Councilmember Skewis: no, no, no, no, yes Councilmember French: no, no, no, no, yes Art Blauvelt asked attorney Wayne Hagen if he wished to challenge a Councilmember on the grounds of appearance of fairness. Mr. Hagen did not challenge any of the Councilmembers and stated that his client, Rognlin's Inc., was waiving their presence. Page 4 of 14

5 Appeal Hearing Rognlin's, Inc. Appeal Roundabout Proj ect Mr. Blauvelt asked if anyone was representing D.L.B. Earthwork Company. Mark Rosencrantz, attorney for D.L.B. Earthwork Company responded that he is representing D.L.B. Earthwork Company. Mr. Blauvelt inquired if Mr. Rosencrantz had any objections to the qualifications of the Councilmembers. Mr. Rosencrantz did not have any objections. Mr. Blauvelt presented the following list of exhibits to be recorded for the Rognlin's, Inc. appeal: Exhibit # 1 - memorandum on hearing procedures, dated July 26, 2009, eight pages Exhibit #2 - letter dated July 24, 2009 from Wayne Hagen to the City of Ocean Shores, three pages Exhibit #3 - letter dated July 20, 2009 from Wayne Hagen to the City of Ocean Shores, three pages Exhibit #4 - letter dated July 23, 2009 from Art Wuerth as a representative of the Protest Review Committee to Rognlin's, Inc. and Mr. Wayne Hagen, two pages Exhibit #5 - letter dated July 17, 2009 to Rognlin's, Inc. from Art Wuerth, one page Exhibit #6 - page 18 of the roundabout bid documents as submitted by D.L.B. Earthwork Company, list of subcontractors, one page (this exhibit was numbered as 7, changed to 6) Exhibit #7 - page 18 of roundabout bid documents as submitted by Rognlln's, list of subcontractors, one page (this exhibit was numbered as 8, changed to 7) Exhibit #8 - additional memorandum from City attorney dated July 26, 2009, four pages (this exhibit was numbered as 9, changed to 8) Exhibit #9 - legal memorandum dated July 27, 2009 from Wayne Hagen, four pages (this exhibit was numbered as 10, changed to 9) Mr. Blauvelt asked if Mr. Hagen had any additional items to include as exhibits. Mr. Hagen requested two additional items be included. Exhibit #10 - documents from website Google, six pages Exhibit #11 - documents from website Manta.com, two pages Mr. Blauvelt asked Mr. Rosencrantz to review Exhibits 10 and 11 and should the documents be admitted into the record. Mr. Rosencrantz commented that he was not sure if the documents were relative but would allow them to be admitted. Art Blauvelt suggested that the Council make a motion to allow five minute presentations by Mr. Hagen for Rognlin's, Inc. and by Mr. Rosencrantz for D.L.B. Earthwork Company. Tape 1, # Counci/member Crumpacker made the motion to allow five minute presentations by Rognlin's, Inc., OLB. Earthwork Company, and City staff. Councilmember Skewis seconded the motion. The Motion passed unanimously. Ken Lanfear commented that the roundabout project is four combined TIS Projects: the roundabout, improvements to Chance A La Mer between Point Brown Avenue and Ocean Page50f 14

6 Appeal Hearing Rognlin's, Inc. Appeal Roundabout Project Shores Boulevard, sidewalk to the library, and sidewalk to the post office. Six bids were received for the project; the apparent low bid was from DLB. Earthwork Company at $2,828, The apparent second low bid from Rognlin's, Inc. was $2,921, The approximate difference of the two bids is $93,000. Wayne Hagen representing Rognlin's, Inc. requested to reserve one minute of presentation for rebuttal at the conclusion of Mr. Rosencrantz and Mr. Blauvelt's presentations. All parties involved in the bidding process should be required to follow the same rules. Listing "no work" in the bid documents should be enforced. The bid documents specifically state to list the name, address, and business license number of subcontractors that will be used. By not including pertinent information the potential for bid shopping arises. Google search documents show there are many contractors with the name of the subcontractor D.L.B. Earthwork Company listed. Listing general information provides an unfair advantage over other bidders. Art Blauvelt asked the Council if they had any questions for Mr. Hagen. The Council did not. Mark Rosencrantz representing DLB. Earthwork Company stated that the purpose of having statutes is so everyone will have the same advantage. Cities have the ability to waive irregularities in bids; contractors submit bid bonds which are forfeited if a bid is incomplete. Sections that do not apply to the project are left in the bid documents to prevent bid shopping. The state statute requires listing of subcontractor information on bid documents or submitted within one hour after the bid is opened. When the bid tabs were opened it was noticed that DLB. Earthwork Company did not list "no work". Rognlin's, Inc. listed the same subcontractor but only provided the name. DLB. Earthwork had rectified the situation within twenty minutes of the bid opening. A substantial advantage was not gained and no bid shopping occurred. Urged the Council to award the contract to D.L.B. Earthwork Company. Art Blauvelt asked if Council had questions for Mr. Rosencrantz. The Council did not. Art Blauvelt commented that the bid document requires the contractor to list the names of the subcontractors with whom the bidder will subcontract if awarded the contract. MB Electric was listed on the DLB bid. Google may list millions of MB Electrics but the one before you is the same MB Electric as purposed by Rognlin's. Asked if Council had any questions. Council member Crumpacker asked how the problem of the missing subcontractor information was addressed and how the time of correction was verified. Ken Lanfear responded that he verbally gathered the information from the bidder after the bid opening and it would be difficult to verify that the information was received as it was not date and time stamped. Page 6 of 14

7 REGULAR CITY COUNCIL MEETING MINUTES JULY 27,2009 Appeal Hearing Rognlin's, Inc, Appeal Roundabout Project Council member Johnson asked Mr. Hagen if he was present at the bid opening and whether specific information was given during the bid opening. Mr. Hagen stated that this is the first he heard of the information from D.L.B. Earthwork and there are no facts to support the information; D.L.B. Earthwork did not list subcontractors accurately; the Google search proves there was an opportunity to wa lk away from the contract or to bid shop. A significant advantage was created for D.L.B. Earthwork Company. Requested the bid of D.L.B. Earthwork be deemed non-responsive and the contract be awarded to Rognlin's, Inc. Mr. Blauvelt asked Council if they had any questions for Mr. Hagen. There were none. There was Council discussion regarding when the actual documents with supporting information were received ; in the future "no work" should be inserted in documents when applicable so that more time is not spent for appeal hearings; there is no way to make sure that the correct process was followed; the information provided was not documented properly; the bid cannot be deemed as responsive; the contract needs to go to the second lowest bidder. Tape 1, # Councilmember Crumpacker made the Motion to close the Appeal Hearing and reconvene into the Regular City Council Meeting. Councilmember Creighton seconded the motion. The Motion passed unanimously. Mayor Bunkers closed the Appeal Hearing and reconvened into the Regular City Council Meeting at 7:05 PM. Tape 1, # Councilmember Patrick made the Motion to adopt the Resolution of the City Council of the City of Ocean, Washington, affirming the decision of the Protest Review Committee dated July 23, 2009 regarding Ocean Shores Roundabout Project Number TlB#6-w-9S9(004)-01. Councilmember Johnson seconded the motion. The Motion failed with two yes votes by Councilmember Patrick and Johnson and five no votes. Tape 1, # Councilmember Crumpacker made the Motion to adopt the Resolution of the City Council of the City of Ocean Shores, reversing the decision of the Protest Review Committee dated July 23, 2009 regarding Ocean Shores Roundabout Project Number TlB#6-w-9S9(004)-I. Councilmember Creighton seconded the motion. Councilmember Patrick stated that he would like to make an argument in opposition. The issue in this appeal hearing is essentially the same issue that was dealt with in the previous appeal hearing and is trivial. Councilmember Patrick opposed the motion before Council. Tape 1, # The Motion passed with five yes votes and two no votes by Councilmembers Patrick and Johnson. Page 7 of 14

8 Ceremonies and Proclamations: Public Communication to Council: None. Dan Marlowe commented on the roundabout and concern for how the project will affect his property; why there is not a project manager for the Street LID; will there be a project manager for the roundabout; how the Convention Center loan is being paid; whether more City employees will be laid off; is there enough money to pay for the fire station; and what is happening with the City's thirty million dollar lawsuit. Councilmember Creighton requested Mayor Bunkers to make sure a City employee communicates with Mr. Marlowe regarding his property issues. Jim Mitchell commented concern on the library's $20,000 reduction in book funds to save a staff position at the library. Lillian Broadbent requested an explanation for focusing on a EMS lid lift instead of an EMS levy, and on the $52,000 that was allocated for EMS in the 2009 Budget. Jim Jordan deferred commenl to the roundabout item. Announcements: Mayor Bunkers announced that there are two member and two altemate vacancies on the Building Code Board of Appeals and one vacancy each on the Public Works Advisory Committee, the Interpretive Operating Center Committee, and the Civil Service Commission. Appointments: Council Reports: None. Councilmember Patrick reported that the Interpretive Center visitor count has increased from last year. USing the State median pay rate of $15.60 per hour, Interpretive Center volunteers saved the City $25, by donating their time. Council member Johnson thanked Council member Berry for attending the Library Board meeting in his absence. Reported that Anita McKenzie, a long time volunteer for the library, passed away. The Library Board approved its bylaws; at the COG meeting a presentation was made by the 2010 Census Program, in 2000 Ocean Shores had a twenty-five percent participation level, the census affects local schools for free and reduced lunches and for federal grants that may be applied for. Suggested a City resolution supporting the importance of Ihe Census information. Councilmember Skewis reported that the Summer Parks Program is ending on Friday. Councilmember Crumpacker reported that he and Councilmember Skewis attended the State Auditors entrance conference; the audit report will soon be ready for the public. Page 8 of 14

9 Mayor's Rep o rt: Mayor Bunkers reported the following: The Lions Club improved their hardwood floors. replaced the carpet, and repaired the roof. Received a notice from Grays Harbor PUD that a power outage is planned for the first week of August, it will be advertised in the newspaper, customers will receive notices by mail, plus other media coverage. Received a memorandum from the Department of Commerce, the Washington State Emergency Management Group, and the National Weather Service stating Ocean Shores is a Tsunami Ready Community through June Received a notice from the Office of Financial Management listing Ocean Shores population for 2009 as 4,860; this is an increase from 4,805 in Other Reports: None. Staff Report: None. Consent Agenda: Tape 1, # Councilmember Creighton made the Motion to approve the Consent Agenda. Councilmember Crumpacker seconded the motion. The Motion passed unanimously. The Consent Agenda included: 1. Approval of minutes for the Regular City Council Meeting on July 13, Approval of Claim Warrants #64180 through # in the amount of $74, dated this 27~ day of July Old Council Business: Resolution No.620: EMS Levy Lid Lift A Resolution of the City Council of the City of Ocean Shores, Washington, providing for the submission to the qualified electors of the City at an election to be held on November 3, 2009, of a proposition authorizing the City to lift the tax levy limit established in RCW to pay costs for Emergency Medical Services. Art Wuerth read the Resolution by title commenting that two weeks ago the Council approved a fifty-cent EMS levy lid lift for voter approval at the November general election. He reviewed the ballot measure and thanked David O. Thompson and Diane J. Foss for their input. There were no Council questions. There was public comment regarding auditing the emergency medical services; if the levy lid lift is not approved EMS layoffs may occur; no administrative layoffs have taken place; if the EMS levy passes funding will be collected in April 2010; ambulance billing needs to make delinquent accounts current; the City could contract out EMS; the levy lid lift requires funds collected go to EMS; the library should charge non-residents; the Perm it Center should charge for second inspections: and the EMS levy, if passed, will need accountability. Page 9 of 14

10 REGULAR CITY COUNCIL MEETING MINUTES JULY 27, 2009 Old Council Business Resolution No.620: EMS Levy Lid Lift Tape 2, #425. Councilmember Patrick made the Motion to adopt the Resolution as presented. Councilmember Berry seconded the motion. There was Council discussion urging Council to reduce the fifty-cent levy lid lift; Council needs to be accountable and change the way things are done; requested an audit of departments for efficiency; need a plan for street maintenance; the word "portion" and how it relates to the authorized rate of $2.22 per $1,000 of assessed valuation; EMS Resolution opposition because of the amount of the increase; need to be accountable for how the funding will be spent if the levy is passed; bring ambulance billing collections current; citizen responses regarding the EMS levy have been tracked; and residents need to decide the EMS levy at the polls. Mayor Bunkers co mmented that the word "portion" refers to the fifty-cent portion of the $2.22 per $1,000 of assessed valuation used specifically for Emergency Medical Services. Tape 2, #758 - The Motion passed with four yes votes and three no votes by Councilmembers Creighton, Crumpacker, and Skewis. New Council Business: Request: New Water Treatment Plant Funding Agreement A Request for City Council to approve and authorize the Mayor to sign the $6,060,000 loan agreement and contract number DR09-9S2-076 with Washington State Department of Community, Trade and Economic Development for construction of the new Water Treatment Plant. Miles Beach presented the request for Council approval of the $6, funding agreement for a new City water treatment plant. The agreement is with American Reinvestment Recovery Act stimulus funding. The funding agreement will pay for the majority of the new water treatment plant. The funding agreement is $6,000,000 with $3,000,000 in the form of a grant. The terms of the loan are one percent interest for twenty years with loan payments beginning after construction completion. There were Council questions regarding disbursement of the funding; whether the City needs to fund construction of the new water treatment plant and then request reimbursement; that the request was presented as a $6,000,000 loan for approval but there appears to be a cost increase of $1.5 million dollars. Mr. Beach responded that the City can draw up to ninety percent of the funds at one time and save ten percent in reserve funds; the water treatment plant project main funding is the $6,000,000 stimulus funding. The following item for a $1,470,032 loan was previously received for a deep aquifer which now needs to be amended to be used to help fund the new water treatment plant. Permission was granted by the State to use the funding for the new water treatment plant. The total funding required to be repaid is $4,500,000 at one percent interest, which includes the State $1,470,032 loan and the American Reinvestment and Recovery Act $3,000,000. Page 10 of 14

11 New Council Business Request: Loan Agreement for New Water Treatment Plant Mayor Bunkers commented that the scope of work for the $1,470,320 has changed and requested an explanation for how the funding would be used. Mr. Beach commented that the $6,000,000 funding is for construction of the new water treatment plant and the $1,470,032 funding is for drilling wells, updating the chlorination facility, and replacing the detention tank building. Including the Federal stimulus funding and State loan received $4,500,000 needs to be repaid at one percent interest instead of six percent which will save approximately $10,000,000 in interest., Mayor Bunkers commented that the low loan interest rates will lower the water rates; today was the first project meeting with Brown and Caldwell and City staff. There was more Council discussion regarding the Council being told the $1,470,032 loan was to be spent on the water distribution system; need to see "the total plan and cost for the new water treatment plant; that system development charges will help fund new water lines and cleaning out existing lines; and that the scope of work combines the two projects for a total construction cost of $7,470,000. Mayor Bunkers commented that Brown and Caldwell is working on the plant design and that he will bring definite plans to Council when completed; and stimulus funding guidelines requires construction to begin by February 16, There was public comment regarding financing for the new water treatment plant; and cost increases for the new water treatment plant. Tape 2, # Councilmember Creighton made the Motion to approve the request as presented. Councilmember Johnson seconded the motion. The Motion passed with six yes votes and one no vote by Councilmember French. Request: State Drinking Water Fund Loan Amendment A Request for City Council to approve and authorize the Mayor to sign the Scope of Work amendment to the Public Works Board Drinking Water State Revolving Fund loan number: amendment number A, in the amount of $1,470,032 for the Water Treatment Plant modification. The revised scope of work includes: construction of a new shallow aquifer well and pump, new shallow aquifer water treatment plant 2, and modifications to incorporate the MIEX water treatment process. Miles Beach presented the request for Council approval of amendment A to the Drinking Water State Revolving Fund loan for Water Treatment Plant Modification. This is the remainder of the loan approved in 2005 to modify the deep aquifer wells. The improvements to the shallow source water treatment plant 2 supplements the ARRA loan project scope of work. Consolidation of this loan and the ARRA loan will enable the City to fully integrate the two current water treatment plants. This overall water treatment concept meets the initial intent of the original loan. Page 11 of 14

12 New Council Business Request: Amendment to the State Drinking Water Fund Loan There were Council questions regarding capacity production of the new water treatment plant, and how the two loans will be separated and paid back. Mr. Beach commented the new water treatment plant would be capable of producing 2.3 million gallons of water per day. There is eighteen years to payback the $1,470,032 million dollar loan because the time allotment began when the loan was signed. Interest begins when funds are withdrawn and a separate tracking number will be assigned to each loan. There was Council discussion regarding the complete water treatment plant construction plan needs to be brought to Council to be aware of construction and spending. There was public comment regarding using the $1,470,032 funding after the $6,000,000 stimulus funding has been exhausted; and the possibility that wells may be drilled on wetlands. Miles Beach commented that the City has thirty days from July 2, 2009 to sign the amendment and return to the State or the agreernent and funding will be lost. Tape 2, # Councilmember Crumpacker made the Molion to approve the request as presented. Councilmember Creighton seconded the motion. The Motion passed with six yes votes and one no vote by Councilmember French. Bid Award: LID Contract to Granite Construction A Request for City Council to award the bid for Pavement Improvement Project LID Contract to the low responsive bidder, Granite Construction, in the amount of $4,884, Ken Lanfear presented the request for Council approval to award the Pavement Improvement Project LID Contract Point Brown will receive an asphalt lift in addition to paving the other commercial district streets. The total LID project cost is $34.4 rnillion dollars without capitalized interest. Recommended that Council award the bid to Granite Construction in the amount of $4,884, There were Council questions regarding the bid including an asphalt overlay for all the streets included in this project; and the total cost of the street irnprovement project. Mayor Bunkers commented that the cost for the street improvement projects is between 39 and 39.5 million dollars which include the eight million dollar line-of-credit. There was public comment regarding the Special Benefit Road LID Assessment from Macaulay and Associates and the treatments for streets that were listed in the document; and cost overruns for the Street LID Project. Tape 2, # Councilmember Crumpacker made the Motion to approve the request as presented to Granite Construction. Councilmember Patrick seconded the motion. The Motion passed unanimously. Page 12 of 14

13 New Council Business Bid Award: Rognlin's Roundabout and Sidewalk Improvements A Request for City Council to award the bid for the construction of the TIB assisted projects, including the roundabout, sidewalks on Point Brown Avenue and Chance A La Mer t and improvements to Chance A La Mer, Contract 09PW-06, to the Rognlin's Inc. in the amount of $2,921, Ken Lanfear commented that six bids were received on July 15, 2009 for the Roundabout and sidewalks project. Because of earlier action by the Council the costs of this agenda items are gotng to change. The overall project cost was $2,828, and is now $2,921, He recommended proceeding with the award of the bid to Rognlin's. Would like to come back to Council with better tabulation on the individual work line items as it will affect some of the line item funding. The TIB grant fund has a remaining balance of $1,641,000. There were Council questions regarding where the additional $73,000 increase in project cost because of the earlier actions will be funded from. Mr. Lanfear commented that before the change there would have been about $98,000 in contingency. Now that the project has been increased by about $93,000 it is going to be close to the maximum budget. Mayor Bunkers commented that if the roundabout and sidewalk project has cost overruns, funding would come from the Real Estate Excise Tax Fund or the Capital Improvement Fund. There was Council discussion regarding the Real Estate Excise Tax Fund. The sale of a local motel may provide unexpected tax funds after the sale is complete. There was public comment regarding whether LID funds are being used to fund a portion of the roundabout and sidewalk improvement projects; contacting the State Auditor's Office regarding funding misuse for the roundabout project; cost of the roundabout project; and roundabout is not necessary. Ken Lanfear stated that the value of the asphalt is being used for the city match for the roundabout project. There was more Council discussion regarding changing the intersection; the project will provide sidewalks for the library; the roundabout will enhance the City; the LI D project was approved to spend up to 48 million dollars and Council minutes reflect that; it costs the citizens money to sue the City, fees and rates are increased to reflect lawsuit outcomes. Tape 3, #452 - Councilmember Crumpacker made the Motion to award the TlB contract to Rognlin's in the amount of $2,921, Councilmember Skewis seconded the motion. The Motion passed unanimously. Executive Session: None Regular Meeti ng Page 13 of 14

14 Adjourn : Mayor Bunkers adjoumed the Regular City Council meeting at 9:07 PM. Signed: Attest: o?2)~wi~~ LaDean W. Bunkers, Mayor Regular Meeting Page 14 of 14