To: Mayor Allen Green
Vice Mayor Mary S. Martin
Councilman Dennis Kennedy
Councilman Robert Pohlmann
Councilman George Steindoerfer
From: Kenneth W. Parker, City Manager
Subject: Agenda Commentary for Regular City Council Meeting of
October 3, 2006
Date: September 22, 2006
We almost achieved an agenda where everything was on consent.
B. BOARD APPOINTMENTS
There are still three appointments left to the SHIP Board. We have two applicants that meet the criteria for the citizen member. They are Donald Kinstle and Robin Lasky. I sent you an email last week asking you to help us identify individuals who may meet the other two positions, one is labor and the other is for profit.
C. SPECIAL RECOGNITION AND PROCLAMATION
Attached is a proclamation to be presented to Caitlyn Graham in recognition of being named Miss Florida American Teen.
City Manager’s Comments: Miss Graham is a resident of Port Orange and a student at Spruce Creek High School. She will be present on Tuesday night to be recognized by the Port Orange City Council and introduced to the community.
Bob Turk or Sam Goodwin will be at the City Council meeting on Tuesday night to report to the City Council on the accomplishments of the Business Development Partnership. I have attached the BDP report. William and I meet monthly with Bob and Sam. We go over BDP prospects and programs. We review their work effort as it pertains to Port Orange and Port Orange sites. They have shown Port Orange properties to a number of businesses this past year. They continue to work with us to market our City as well as the entire area.
Some time ago, we had Phil Faruggio visit the City Council about sandwich boards. The City Council authorized staff to review our development code to review the applicability of these types of signs. Although the City could authorize these types of signs, they would have to be negotiated into each agreement and become part of the development’s uniform signage code. Even if the City Council approved this type of signage, it would require an amendment of each applicable development agreement to allow the signage inside each development. For those developments without development agreements, it still would require an amendment of their uniform signage program.
At the last meeting, it was obvious that the City Council felt that this type of signage was appropriate. Staff changes have delayed action on actually bringing forward language changes.
F. CITIZEN PARTICIPATION
G. CONSENT AGENDA
Attached are the minutes of the Special and Regular Meetings of August 1, 2006; the Special Meeting of August 9, 2006; the Special and Regular Meetings of August 15, 2006; and the Regular Meeting of August 22, 2006. Should you have questions concerning the minutes, please contact Shirley Kelly or me.
Attached is the update from Quentin L. Hampton’s. If you have questions, please contact Mark Hampton or me.
Attached is the report from Glen Walker. If you have questions, please contact either Glen Walker or me.
City Manager’s Comments: Glen and I met a few days ago to discuss the park complex to be constructed on the 39-acre parcel located west of Williamson. A preliminary layout of the park facility has been completed. In a few weeks, we will be sharing this plan with the Parks and Recreation Board as well as the City Council. One of the things we reviewed was the need to have the light poles on the athletic fields in place before home construction begins. This way, residents will know from the very beginning that ballfields will be located in this park. We believe the fields are located so that they will not be creating problems for the residential neighborhoods. Also, we are looking at lighting alternatives that eliminate as much of the light bleed over as possible.
Attached is the report from Public Works. If you have questions, please contact either Warren Pike or me.
An RFSQ was issued for Architectural/Engineering Services for Site Development for the City on a continuing basis for items contained in the City’s CIP for the next five years. The services would be for a two-year period of time with an option of renewal for an additional two years, if mutually satisfactory to both parties. The Selection Committee was comprised of Mayor Allen Green; Engineers Fred Griffith, Larry Littlefield, and Mile Hill; and Mike Ulrich from the Finance Department. The committee heard oral presentations from those six firms and ranked them as follows:
2. Upham Inc.
6. Parker Mynchenberg & Associates
Staff recommends that City Council approve the committee’s final ranking and authorize staff to negotiate contracts with the three top ranked teams.
The City currently has a contract with Chips Dozer, Inc. for the disposal of lime sludge produced at the Garnsey Water Plant. This contract has been in place for several years now and has been mutually beneficial to both the City and the vendor. In this contract is the option for a one (1) year extension if mutually agreeable to both parties. The City has expressed their desire to exercise this option, and the vendor has agreed, in writing, to this extension. Due to the rising cost of production, fuel and vehicle maintenance, there has been a very slight increase ($0.75) per cubic yard, making the total $5.75/cubic yard. Note that this is the first and only increase requested since the initiation of this contract. Staff recommends you approve this one (1) year extension of the existing contract with all terms and conditions of the existing contract to remain in effect. Funds will be available in account #40102005333411 once the FY06/07 operating budget becomes effective.
Staff recommends that Council approve a one (1) year extension of the current contract with Chips Dozer, Inc. for the disposal of lime sludge and authorize the Mayor and City Manager to execute contract extension documents.
Item 14 - Waiver of Normal Bidding Procedures and Authorization of Sole-Source Contract with Ashbrook Simon-Hartley for the Rehabilitation of the Reclaimed Water Plant Sludge Presses
Five separate Ashbrook Klampress belt filter sludge presses have provided reliable service at our Reclaimed Water Plant since their initial installation in 1991. Presently, we press over 10,000 tons of bio-solid sludge annually, making their continuous operation of critical importance. The reliability of the equipment is a credit to both the manufacturer and our utility operations and maintenance employees. Public Utilities staff have extended the useful life of the presses beyond the 10-year normal expectations by rotating pressing operations between three units while allowing two to be taken down for cleaning and maintenance. At this time, the units require significant rehabilitation due to normal wear and tear. Staff believes the cost-benefit for rehabilitation of the presses far exceeds the value of full-cost replacement.
As the sole-source authorized vendor of Ashbrook products, Ashbrook Simon-Hartley has provided a proposal to refurbish the presses on-site. The quote includes providing all new original replacement equipment, labor, freight, and start-up services. By working directly with the equipment manufacturer, the City will receive a savings in both sales tax and contractor mark up. We are requesting that Ashbrook Simon-Hartley be granted sole source status for the Ashbrook sludge press units. Funding for this project is listed over a two-year period in the “Plant Improvements” project contained in the CIP. In FY07, the required $431,310 for the refurbishment of two units is available in Sewer Plant Replacement SSP002. The CIP shows an additional $650,000 of funding to complete this project in FY08. Initially, we are requesting that a purchase order be authorized to Ashbrook in the amount of $431,310.00. However, as fiscal year 07 progresses, and in the event that savings from other current active projects can be transferred upon project completion, then we would like to request permission at that time to issue a change order to cover the balance of $506,430.
Staff recommends that Council waive formal bidding procedures and authorize Ashbrook Simon-Hartley as the sole source vendor for Ashbrook sludge presses, and to authorize a purchase order to Ashbrook Simon-Hartley in the amount of $937,740 for the rehabilitation of 5 sludge press units at the Reclaimed Water Plant.
City Manager’s Comments: I raised the question about sole sourcing this contract to the manufacturer rather than competitively bidding the rehabilitation of the 5 sludge presses. We are dealing with the manufacturer, not a General Contractor. These are factory-trained representatives of Ashbrook Simon-Hartley. That means we will not be paying an overhead to a General Contractor to perform the same work. In discussing this with Roger Smith, he is convinced that having the manufacturer do the work directly is the best price alternative for the City of Port Orange. If you have questions about this work, please call Roger.
H. BOARDS AND COMMISSION
A representative of the Environmental Advisory Board will make a report to the Council at this time.
This Resolution makes budget adjustments to the 2006-07 Operating Budget to bring it into alignment with the reduction that was made during the public hearing on September 19. I am recommending the following changes to the City’s budget:
Removing 2 Police positions from the General Fund Budget. The City Council instructed the staff to monitor the revenues and at mid-year, if possible, come back with a recommendation to add the 2 positions back into the operating budget. We will continue to monitor the revenues and make recommendations to the City Council on a variety of issues throughout the year.
Removing 1 Parks and Recreation Maintenance Worker from the City’s General Fund Budget.
Temporarily reducing the City’s Contingency and Opportunity Fund that was part of the General Fund Budget. The entire amount will be replaced in both funds with the fund carry over budget. This is in lieu of the paralegal for the City Attorney. The City Attorney is in need of the position. Originally, there were two paralegals requested. One of the paralegal positions was removed in August during the review session. When the City Council considered the budget in final form and adopted the millage rate and the final budget, the second position was eliminated. From our analysis, there will be enough funds available at the end of the year to fund both the Contingency and the Opportunity Fund at the level City Council prescribed.
J. PUBLIC UTILITIES
The Director would like to give special accolades to the employees of the Water Production, Utilities Maintenance, and Wastewater Collections Divisions for their initiative and teamwork exhibited during the complete rehabilitation of the media filter system at the Garnsey Water Plant, which saved the city over $250,000.
As background, the performance of these filters declined significantly since their installation in 2000. Working closely with the manufacturer, we secured a quote of $240,000 per filter, with work restricted to removing the existing media and nozzles and replacing them with new nozzles and new media. Thus, the quote to rehabilitate two filter units was $480,000 in September 2004. Further, this quote expressly excluded work on any of the associated ancillary components.
Chief Operator, Steve Miller, met with his operation staff to solicit interest in attempting the work in-house. With the Operators’ collective willingness to attempt the project, Mr. Miller approached Management for approval to undertake this refurbishment using in-house forces. It was recommended that the work be performed predominantly on overtime so as to minimize impacts to normal operations. Mr. Miller estimated the cost of the filter work alone at $160,000.
After considering the “pros and cons” of doing the work in-house versus outsourcing the work, management elected to give its own staff the freedom and flexibility to take on this challenge. Mr. Miller served as Project Manager to coordinate all activities, initiate all associated purchase orders, and track all project costs. During the course of refurbishment, staff identified other required corrective work, replacing diffusers, hoses, nozzles, and tie-rods excluded from the manufacturer’s original quote. The filter systems of the two treatment trains were refurbished in nine months. Even with the added work, the final capitalized project cost was $201,644, saving the City a minimum of $278,356 from the original manufacturer’s proposal. Further savings were realized by eliminating the need for inspection services.
In addition to the savings, multiple other benefits are evident. Management strongly believe that our own staff exercised greater attention and care during the installation than any contractor would have employed. As such, we have greater confidence that this installation will service us reliably beyond the seven years of the initial installation. Additionally, this has been a significant morale booster internally for Utilities staff. Consequently, we hope that the City Manager and City Council will continue to support Public Utilities staff in taking on other select capital projects in the future.
City Manager’s Comments: Roger Smith brought this concept to me some time ago. We visited the site to review our options. Roger explained the reason that he would like to have his internal staff do the work rather than hiring an outside contractor. Because we had problems in the past, Roger felt that it might be better if the operating staff was involved in the replacement of the equipment rather than simply relying on a contractor to come in. During the process, the staff identified other issues that need action and were identified that could have lead to additional expenses at some point in the future. In this case, it is estimated that the City staff saved $278,356. Besides the savings, they were able to identify other corrections and make them. Although the savings includes those corrective actions, it does not include the time saved by identifying them now and making the corrections.
As a side note, I will support Departments taking on additional capital construction projects internally when they can carefully demonstrate that it is more cost effective to the taxpayers and ratepayers of Port Orange. In the past, I have found that we need to allow them to do some construction projects. Many times, all they get to see is the maintenance end; and they would like to work on the construction project end, too. Again, they would be involved only if it is more cost effective and we have the staff time and capacity to do the work.
K. COUNCIL COMMENTS
At this time, Council Members may discuss various matters of concern.