04-12-77 v MINUTES OF THE SPECIAL CALLED MEETING OF THE
ATLANTIC BEACH CITY COMMISSION HELD AT THE CITY
HALL ON APRIL 12, 1977 AT 8: 00 P.M.
PRESENT: William S . Howell, Mayor-Commissioner V V
Alan C. Jensen 0 0
James E. Mhoon T T
L. W. Minton, Jr. , Commissioners E E
D D
AND: R. C. Vogel, City Manager
Oliver C. Ball, City Attorney
Adelaide R. Tucker, City Clerk MS
O E
ABSENT: Robert B. Cook, Sr. , Commissioner T C
I 0 Y
NAME OF ONEN
COMMRS. N D S 0
The meeting was called to order by Mayor-Commissioner,
Mr. Howell .
Mayor Howell recognized Mr. Walter J. Parks, Consulting
Engineer, who stated he had pursued the instructions issued
by the Commission at the meeting held on April 11, 1977,
in regards to the bid awards for the EDA project. He in-
formed the Commission that some reductions could be made,
but he would not recommend such, as EDA requirements may or
may not be met if a part of the work the City originally
planned was deleted. Mr. Parks: (1) recommended that the
• Commission award contracts based on the low bids received
the previous night, with the distinct understanding with
the contractors that the City may want to make some changes
in the future in the Saltair section by change order; (2)
stated that the City should give serious consideration to
awarding the contract for Part II of the project on the
basis of installing a 24" water main across the golf course
instead of reducing the main to 20" ; (3) advised that the
low bidder, who submitted a bid of $288, 259 for Part I,
included in his proposal a list of alternate equipment for
the City' s consideration. Mr. Parks also stated that a
slight reduction in price could result by change order
should the City decide that some of the alternate equipment
will be satisfactory, and explained that the total cost to the
City approximated between $50,000 and $60,000 because the
bids received were higher than projected.
Mr. Paul Steckla posed the possibility of saving approximately
$20, 000 from the grant fund by deleting two line items,
namely, administrative and legal costs which are in excess
of $15, 000 and the $12, 000 salary of the project coordinator.
Mayor Howell suggested that this point should be pursued
since the $15, 500 for administrative and legal costs could
possibly fund another part of the project, thus reducing the
City ' s commitment from $50,000 to $35,000 .
•
MINUTES
PAGE TWO V V
APRIL 12 , 1977Names of
Commrs. MS YN
A lengthy discussion ensued concerning the procedures
for payment of the salaries of the Project Coordinator
and the Resident Inspector, the legality of transferring
project budget funds from one line item to another without
EDA approval , and the use of project contingency funds
to cover project overruns .
Mayor Howell suggested that Mr. Parks contact Mr. Russell
prior to awarding the contracts. Commission agreed.
Mayor Howell announced the meeting would be in recess for
twenty minutes .
* * * * * * * * * * * * * * *
Mayor Howell and Mr. Parks contacted Mr. Russell by tele-
phone at the Surf Motel in Fernandina . The substance of
which is as follows :
Mr . Parks: According to our understanding of what you
said last night, the City has to stick strictly to the
line items of that project budget as approved, and that
leaves us only $869,426 for labor costs, whereas the low
bids total out to $1, 029, 859. That would mean the City
would have to commit $160, 433 instead of $65, 000 as
anticipated. It was my understanding last night that
contingencies in an approved budget could not be applied
to any overrun. We would like to be able to consider
contingencies in this instance, as it would pull us down
more in the realm of $50, 000 .
Mr. Russell : My position is that it is preferable that
the City not use contingencies initially to make up bid
overruns, but it is not an absolute prohibition. You
can do it, if you so choose .
Mr. Parks : That changes the picture. That is one thing
we wanted to clarify, and that we also are under the im-
pression that any change orders to change the scope of
the work as the work progresses, also has to be approved
by your office.
Mr. Russell : That is correct.
Mr. Parks : One more thing, any changes in the line items
of this project has to be done with the consent of your
office - transferring funds from one line item to another ,
Mr. Russell : That is correct.
Mr. Parks: We understand each other better now. Let me
ask you this . If the City Commission goes ahead tonight
and awards the bids to the low bidders, do they have to
have some special sanction for approval from your office
MINUTES
PAGE THREE V V
APRIL 12, 1977Names of
Commrs. MS YN
Telephone Conversation - continued
at this time to absorb the line item or contingencies in-
to the two line items identified under construction pro-
ject approved as labor and non-labor. In other words,
the labor and non-labor line items are what we consider
to be approved for construction costs .
Mr. Russell : I will give you a verbal consent. That is
all that is necessary.
Mayor Howell : Mr. Russell , I would like to confirm what
Mr. Parks has just said. Can we count on $1, 054, 000?
May we use the contingencies as an overrun due to the
fact, with the low bidders running higher than estimated,
the total project could run $50, 000 to $60, 000 over?
Mr. Russell : Yes, you may count on $1 , 054, 000 , the total
approved budget. Bear in mind, Mayor Howell , you are
authorized to do whatever is best for the City. However,
remember, when you commit an amount of money, you must
be prepared to spend it, and the City will have to commit
the difference of the total grant. This should run around
$60, 000 to $65, 000 as I said last night.
Mayor Howell: Thank you. I am sorry to have disturbed
you at this hour of the night.
* * * * * * * * * * * * * * * *
Mayor Howell called the meeting to order.
Bid Acceptance
Mayor Howell stated that the City must commit $64, 580 to
the EDA project and Mr. Vogel indicated that the funds
could be taken from Account 1051, the capital account.
After a brief discussion, Commissioner Minton moved that
low bids for the EDA project be accepted and that $64, 580
the amount of the City commitment, be funded from the
General Fund Account No. 1051 . The motion was seconded
by Commissioner Mhoon. Mayor Howell requested a vote by
roll call . Jensen X
Mhoon x x
Minton x x
Motion carried. Howell x
* * * * * * * * * * * * * * * * * * *
PAGE FOUR
MINUTES V V
APRIL 12, 197- Names of
Commrs . MS YN
Downstream Pollution Control Charge
Mayor Howell announced that the Commission should examine
the cost of hook-ups to the City water and sewer systems
with the view of increasing the charges and taking specific
action at the next meeting. After a brief discussion of
the assessments at Neptune Beach and Jacksonville Beach,
Mr. Vogel stated he would verify such charges and report
back to the Commission.
Grant Positions
Commissioner Mhoon stated that there are two paid positions
included in the grant, that Mr. Steckla has already been
appointed for one job and should be paid in addition to
his salary because of the heavy workload, and that Dick
Hilliard should also be paid in addition to his regular
salary.
During a detailed discussion of the foregoing matter, the ,
following salient aspects were:
a . Commissioner Mhoon pointed out that tapes of a previous
meeting would disclose that the Commission agreed that Paul
Steckla would be the project coordinator and Dick Hilliard
would be the inspector. He also stated that they should
be compensated possibly $5, 000 , not $12, 000.
b. Minutes of the meetings of February 7, 1977 and Feb.
9, 1977 disclosed that Paul Steckla was designated resident
inspector and project coordinator.
c . Commissioner Mhoon stated that the above mentioned
minutes omitted some items discussed and that he had
specifically said he agreed to the designation of Paul
Steckla as coordinator as long as Dick Hilliard was the
inspector.
d. Mayor Howell indicated that Mr. Hilliard would not be
able to perform in his current job,and as the inspector
because of the time required to monitor the contractors '
work.
Further discussion evolved about the budget line items of
$15, 500 for administration and $12 , 000 for the inspector ' s
salary and the possible requirement for another individual
to perform duties associated with the EDA project.
Comm. Mhoon reiterated that the aforementioned individuals,
the comptroller and the inspector, will be working extra
hours and he felt that they should be paid.
MINUTES
PAGE FIVE V V
APRIL 12, 1977 Names of
Commrs. M S Y N
Letter to Low Bidders
Mr. Parks suggested that the City Manager or the City
Clerk notify the low bidders by letter tomorrow of the
City Commission ' s action concerning the bid awards and
advise them to get their surety bonds and insurance
certificates and to have them ready for signing of the
contract at the earliest possible date . He also stated
that the five contractors must commence work no later
than May 3rd. Mayor Howell mentioned that it would be in
order to have a motion authorizing the Mayor and City
Clerk to attest the signing of the contracts for the low
bidders .
Motion: Authorize the Mayor and City Clerk to Jensen x x
attest the signing of the contracts Mhoon x
for the low bidders . Minton x x
Howell x
Motion carried.
* * * * * * * * * * * * * * * * * *
Composition of Minutes
Mr. Ball pointed out the legal significance of the minute '
of this meeting and the dealings with a Federal agency,
verbally, by telephone. He suggested that the minutes
include an extensive report of the verbal conversation
with Mr. Russell , including Mr. Russell ' s verbal approval
of the issues discussed, what guided the action in making
the awards, and commitment of the monies . Mr. Ball
suggested that a copy of the minutes be sent to Mr.
Russell ' s office, for his files .
Mayor Howell stated that he felt that the important thing
and the major thrust of the conversation, was the permission
to use the $95, 853 contingencies for the bid portion. Mr.
Steckla mentioned that Mr. Russell wants a letter stating
that the City has awarded the contracts in the sum of so
and so, and that the City will commit the difference.
Mayor Howell added that Mr. Russell also wanted the
contingencies mentioned, that is, that in the Commission ' s
opinion, it was in the best interest of the City to
transfer the contingencies into the labor and non-labor
accounts .
There being no further business, Mayor Howell declared
that the meeting be adjourned.
William S . Howell
(SEAL) Mayor-Commissioner
ATTEST:
A•e ai•e . uc er
City Clerk