Fort Walton Beach Council minutes — 10-09-07 regular minutes — reading text

concern about possible loss of control; the need for consulting services to evaluate the proposal, and questions on legal ramifications or penalties on a stop- order. Mr. Hofstad stated there is an existing design/ engineering services contract with a large firm and the City would part of the design contract also has a construction administration element where they get into that pay the consultant to monitor the construction phase once process.  10- 9- 07 174Regular Council WASTEWATER TREATMENT cont. Mr. Hofstad expressed his concern that the consulting firms set their work schedules a year in advance and may have forgone other large design projects because they had dedicated the manpower to this, so that is something that may have to be negotiated. Dr. Pullen commented as long as the City has committed the money, until they see what the County offers that the City not to commit any more money. Mr. Hofstad said staff is not asking to start the construction phase of the project, just complete the F.:.. design phase. Mr. Garvie expressed that the Finance Director should be involved in a financial analysis of not II only the County providing the wastewater treatment to the City vs. the City continuing to maintain its own wastewater treatment facility, but should also include issues such as the spray field costs, the large bond debt, the demolition of the site, and the value of the property. He did not believe the contract should be stopped at this time, and that it should continue to finish the design phase then wait to make a decision on the construction phase. Mr. Miller questioned whether the contract had a termination clause. Mike Tatum, Purchasing Director, stated the contract can be terminated for convenience or for default but he did not know what the City would pay the contractor until they sit down to negotiate. He said the construction/ administration phase is what is left on the contract, approximately 250, 000, and once the City let's a contract they will oversee the contract. He said if the City decides to terminate then the City will have to negotiate with the contractor on how much he wants to terminate the contract. Mr. Miller wished to know if the City could tell the contractor to only complete the first phase until further notice. The City Manager explained it is a complete contract for both design engineering and construction management and the City would not proceed to the construction management until they actually reached that portion. Mr. Miller expressed support of completing the design phase of the effort but did not support continuing any other hours against it until they decide what to do. Mr. Minich received confirmation that the design phase is 95% complete and will be completed in approximately 60 days. He mentioned that staff will return to Council within 30 days so there is time to let staff review it before going into the construction phase. The City Manager confirmed there is time because the City does not have a construction permit yet and has not bid out the document. Mr. Minich commented the City does not need to get into a stop- work situation right now and only needs to look at the other options available. Mr. Reeves wished to know the timeframe for the construction. Mr. Hofstad stated the City does not have a construction permit, that it is in the permitting phase of DEP and he would not expect to have a permit until some time next year. B Mr. Miller expressed appreciation to Mr. Hofstad for the time and effort put in on the report and for answering the questions on the stop- work on the contract that were not addressed in the report.  Regular Council 10- 9- 07 175 WASTEWATER TREATMENT cont. The Mayor made the observation that some of the discussion is going beyond City Council responsibility; when they start dictating how staff should do things, or where staff should be placed, that is way beyond Council' s scope of responsibility. He said Council's scope of responsibility is to ask questions about policy, processes and if there are problems with the policies and processes, then intervene. The Mayor said when they get into saying this is how I think you should market the golf course, this is how I think you should staff an Interlocal arrangement with the County is going way beyond. He said if there is a policy they want to say change the rules of engagement, change the Charter to say you want to get into the day to day operation of the City that is what they need to do. He said right now there has been a tendency lately in some of the discussion to get into the day to day operation of the City and as he understands it that is beyond the scope of Council' s responsibilities that is outlined in the Charter. Mr. Minich moved to allow the two staffs to look at the issue and return with a progress report in 30 days. Mr. Garvie seconded motion. Mr. Minich commented it is something the City needs to look at and concurred with the Mayor that Council is not here to tell staff how to work, they are not there to coordinate between staff agencies, it is not their job. He said their job is to make policy decisions, they are executive officers for the City, they are not there to supervise the day to day operations of the City, and that is according to the Charter. He said this program has been in existence for three years and the City cannot all of a sudden change its mind. He expressed his opinion on stop-work on contracts that if the City has a contract, then it will live up to that contract and if there is a way to save the City money in another way because some of the factors have changed, then the City needs to do that too. Mr. Garvie expressed that Mr. Hofstad came up with a logical way of proceeding in getting the contract for design behind the City then move forward to figure out if there is a better way. Mr. Holmes commented he thought this was the direction he was alluding to in his Council comment last week about some of the things that Council says and does and the perceptions they create and it is very degrading and destroys a lot. He commented on Mr. Hofstad' s presentation that there is a lot of time that he may have had to devote to this that could probably have been better utilize. He was sure this is something that staff monitors all the time and if there is something better that is going to come along or if there is another option or something that will be better for the City staff will bring it to Council. He did not know that Council needed to necessarily instruct staff all the time to look at a special thing that has been ongoing for three or four years. Mr. Miller remarked he did not volunteer to submit his name for election to the position to sit back and not make a difference. He said the City could do business the same old way but he did not come on Council to do business the same old way. He said he has had some experience in dealing with different type businesses; all he did was ask questions. He stated if people are r 1 unhappy or uncomfortable giving answers then they need to look for a job some place else. The Mayor stated that is out of line and directed the comments back to the motion on the table. Mr. Miller stated Mr. Hofstad did an excellent job, and he will continue to ask questions, are they doing it the right way; there are big dollars at stake. He said he will not change, he did not care what the Mayor says and he will have to show it to him in writing in a Florida Statute, and he will continue to do his job. Mr. Minich called a point of order.  Regular Council 10- 9- 07 1 76 WASTEWATER TREATMENT cont. The Mayor directed comments back to the motion. Mr. Miller said he will support the motion because they need to complete the construction drawings but he did not think they should continue past that until they have all the information in hand. Dr. Pullen completely supported Mr. Miller; Council has a responsibility to know what goes on in the City and every portion of the City. He said someone tried to censor him one time because he I was asking too many questions. Mr. Minich called a point of order. Dr. Pullen stated there is no point of order because Roberts Rules of Order was suspended. The Mayor directed comments back to the motion. There were no further comments. The Mayor called for the vote on the motion to allow the two staffs to look at the issue and return with a progress report in 30 days and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich In favor. The City Manager stated the City has a great working relationship with the County and they are very appreciative of the County coming forward, after a three year period they have been asking questions and the County has been very responsive. She said they will work hard to negotiate in good faith and what they are looking for what is in the best interest of the residents and the lowest possible cost to the City. She said they will work collaboratively as a City team with both inside and outside professionals to evaluate the information and bring it back to Council. CITY' S GROUP MEDICAL INSURANCES Consideration of a request to remarket the City' s group medical insurances and to utilize Waters Risk Management to assist in the RFP process. Mark Wiltsie, Human Resources Director, explained Blue Cross/ Blue Shield estimates a 20-25% increase in premium. He believed it is in the best interest of the City to remarket the medical insurance program by issuing an RFP. He requested Council to consider utilizing Waters Risk Management at a flat fee of $10, 500. Mr. Garvie moved to remarket the City' s medical insurance program and authorize the City Manager to accept the proposal from Waters Risk Management to assist in the RFP process for a flat fee of $10, 500.00. Mr. Minich seconded motion and It carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. LEGISLATIVE PRIORITY ISSUES Consideration of ranking of Northwest League of Cities Legislative Priority Issues. Mr. Minich nominated the high cost of insurance for Florida Homeowners as a priority. Mr. Miller nominated school funding as a priority. Mr. Hartwell nominated home rule as a priority. The top three legislative priorities to forward to the Northwest Florida League of Cities for the 2008 Legislative Session were ranked as follows: First - high cost of insurance for Florida Homeowners; Second - remove/ reduce school funding from