Fort Walton Beach Council agenda — 10-23-2007 regular agenda — reading text

reason he asked for the agenda item. He said he also asked for justification why the City should not issue a work order for the stop- design study and proceed with contract termination. He said this is the type of thing they need to evaluate and see where they go from here, which is the reason he submitted the request. John Hofstad, Utilities Director, mentioned that staff has been working diligently with Okaloosa County in discussions and negotiations about a possible Interlocal agreement to utilize their treatment facility based on a wholesale rate. He said the is County a draft Interlocal that preparing he should have by the end of the week or early next week and staff is asking for sufficient time to review the Interlocal. He said at the same time they can get a handle on the additional debt service cost to the residents should the City elect to renovate their own facility as planned; then staff can return in approximately 30 days with all the information and press forward with a path. He said the design is about 95% complete and the City is on the hook to the design consultant for the work. He said the City has also made application to DEP for the construction permit, and those fees have been paid and staff did not want to slow the process down in the ,event the County' s proposal is not in the best interest of the City and the residents, and then time' has been lost for the construction element in the wastewater treatment facility. He said staff aSKs to delay the process for another 30 days, continue with the design project and wrap it up because it is very close to being finished, and during the interim staff will have a proposal from the County Mr. Miller moved to suspend Roberts Rules of Order for discussion of this item. Mr. Minich seconded motion and it carried unanimously with Holmes, Miller, Reeves, Garvie, Pullen, Hartwell, and Minich in favor. Mr. Miller mentioned he spoke with Mr. Hofstad about the need to prepare a list of the City' s requirements, what it cost for the treatment and approach the County with what we can do and ask what they can do for the City, to lay down how much it cost the City to process the water and what the City can expect from the County to come close to it because if they cannot be competitive, then they do not have a product for the City. He thought that needed to be spelled out in some type of City document that the City has baseline requirements for negotiation. The City Manager said staff will work that issue and they understand the City needs to have their issue and have an understanding of the issues, and they also want to have an understanding of the County' s issues before they move forward. She said as soon as receive the they proposal then they can evaluate it based on the City' s cost to treat 1, 000 gallons of sewage and what they are proposing. She said they also expect the County will come back with a capacity purchase in J the plant. She said they are requesting to let staff work the issue like they normally do. Discussion included comments that there are a lot of variables facing the City and 30 days would not hurt; that it is an issue for the City and County staff to work on; concern about possible loss of control; the need for consulting services to evaluate the proposal, and questionson legal ramifications or penalties on a stop- order. Mr. Hofstad stated there is an existing design/ engineering services contract with a large firm and part of the design contract also has a construction administration element where the City would pay the consultant to monitor the construction phase once they get into that 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 design phase. Mr. Garvie expressed that the Finance Director should be involved in a financial analysis of not 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. 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.  10- 9- 07 Regular Council 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 of placed, that is way beyond Council' s scope of responsibility. He said Council' s scope 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, l 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 it that is beyond the scope of Council' s day operation of the City and as he understands 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 isaccording 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