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Minutes of the Board of Finance Special Meeting held on Thursday, July 15, 2010 at 5:00 p.m. at the Old Lyme Memorial Town Hall.
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~Present:~~~~~~~~~ Regular Members:~Andrew Russell, Wayne Devoe, H. P. Garvin, III,
Janet Sturges, David Woolley
Alternate Members:~ Judy Read
Timothy C. Griswold, Ex-Officio
Absent:~~~~~~~~~~~ Regular Members:~ Christopher Kerr
~~~~~~~~~Alternate Members:~ David Kelsey, Maggie Ward
Guests: Skip Sibley, Selectman
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Mr. Russell called the meeting to order at 5:12 p.m.~Mr. Russell stated that regular member Mr. Kerr was not present this evening, therefore, a motion was made by Mr. Garvin, seconded by Mr. Woolley to have vote for Ms. Read vote for Mr. Kerr in his absence. Motion carried.
Church Corner Project
Mr. Griswold stated that Church Corner project has experienced problems due to issues with the Contractor, American Industries and the engineer/surveyor, Rowley/Hendriks. He stated the Rowley Hendriks has been involved with the project since June 1997, on and off, and was paid $48,749 in fees during the period October 1997 to April 2009 (pre-project) and $36,845 for the period April 2009 to November 2009 (the project), for a total of $85,594. Rowley/Hendriks has billed the town an additional $17,815 for the period of November 2009 to May 2010, which the Town has not paid. During the 12 year period (October 1997 to April 2009), the project started and stopped several times and the firm was asked to make many changes to the design. However, considering the amount of time the firm spent surveying and
engineering the project, one would not expect that there would be any engineering/surveying questions left to answer. American Industries was selected as the low bidder and was the contractor that did the Lyme Street reconstruction work from the Firehouse to the Parsonage. From the beginning of the Church Corner project, American Industries and Rowley/Hendriks each claimed that the other was not performing well, resulting in change orders. The Clerk of the Works stated that both firms contributed to the problems. In the end, American Industries claimed it had change orders amounting to $198,462 above the base contract of $328,900, a 60% ratio. American Industries maintains that the Rowley/Hendriks drawings were inadequate and that many field changes were necessary to correct. It is noted that if an agreement cannot be reached, it would likely proceed to mediation/arbitration which would be costly and cause further delay in completing the
project.
Board of Finance Meeting July 15, 2010
Mr. Griswold, Mrs. Sturges and the Town attorney representative, Tony Leone, met with a representative of American Industries and their attorney to seek resolution on the change orders and the cost of the remaining work. These Exhibits have not been fully agreed to by both parties, but should be shortly. Should it be resolved according to plan, the project can be completed for $609,598, which includes $13,500 of concessions from American Industries and removing the epoxy payment marking ($4,380) in favor of the Town using paint. The Pro Forma does not provide for paying the three outstanding Rowley/Hendriks bills and we intend to ask for Rowley/Hendriks to refund up to any amount over $600,000. Because the town does not have a universal agreement from American Industries, and
Rowley/Hendriks, Mr. Griswold recommends the Boards of Selectmen and Finance approve $17,700. Mr. Griswold believes it will be in the Town’s best interest to settle this matter quickly and have American Industries complete the bluestone sidewalks, bituminous aprons and install the sections of granite curbing.
Mr. Griswold distributed a breakdown for the Church Corner Project conclusion pro forma dated July 14, 2010 (attached). Total spent to date on the project is $491,289. Mr. Griswold displayed a drawing of the work pending. The work still needed to be completed by American Industries includes six (6) bituminous aprons, two (2) sections of granite curbing and the bluestone sidewalk from the intersection of Lyme Street and Ferry Road, along the front of the Congregational Church property and then along the Town Green to the Christ the King driveway. The cost of this work will be $40,387. In addition, the performa highlights payment of the balance of the change orders (79,324), retainage ($7,996), two additional items ($4,102) and concessions by American and the Town ($-11,213). The total
payment to American would be $120,596. Rowley Hendriks has offered to discount the invoice by $12,000, leaving a balance of $5,815. In addition, Rowley Hendriks will prepare an “as built” survey at a cost of $3,500. The as built has been requested by Land Use and is not in the American Industries or Rowley Hendriks scope of work. The charge for the as built can be funded by the Public Works Engineering line item.
Adding the American subtotal of $120,596 and the Rowley Hendriks subtotal of $5,815 to the amount spent ($491,289) equals $617,700. $600,000 was approved at Town Meeting, so this proposal would require an appropriation of $17,700. It was noted that Board of Selectmen has recommended this appropriation. There was a discussion about the remaining invoice amount due to Rowley/Hendriks. It was decided to remove the Surveyor/engineering portion of the appropriation.
A motion was made by Mr. Garvin, seconded by Ms. Read to approve $12,000 to complete the Church Corner project. Motion carried. After discussion, Mr. Garvin and Ms. Read withdrew and modified their motion. A new motion was made by Mr. Garvin, seconded by Ms. Read to approve $17,700; $12,000 to American Industries and the remaining to be held for future contingencies. Mrs. Sturges abstained from the vote. Motion carried.
Board of Finance Meeting July 15, 2010
Single Stream Recycling Program
Mr. Griswold stated that the Board of Selectmen has discussed the prospect of performing single stream recycling using an automated truck, similar to the refuse trucks shoreline Sanitation uses now, and new 95 gallon recycling carts. The Town has a proposal from Sanitary Equipment Company of West Haven, CT to purchase 4,697 - 95 gallon carts at a price of $214,465 ($45.66 each) plus transportation, using eleven tractor trailers, as a cost of $18,150 ($3.86) for a total of $232,615 ($49.52 each). Mr. Griswold stated that the Town must clarify if the price includes assembly and distribution of the carts to individual residences, which may cost about $3.00 each or $14,091. The Town has on deposit the proceeds from the CRRA lawsuit totaling approximately $175,000. In addition, the Town was approved for a $46,000
Municipal Energy and conservation Block Grant through OPM. The combined total available is $221,000, so the Town would have to appropriate $11,615 or $25,706, if assembly and delivery to residences is not included. Mr. Griswold believes the time to begin automated recycling should be next spring. Accordingly, we would need to obtain Town Meeting approval to spend the $232,615 (and perhaps the additional $14,091) and approval to appropriate the additional $11,615 or $25,716. The numbers need to be finalized with Sanitary Equipment and we must obtain at least two other bids from other vendors before finalizing the purchase proposal. Mr. Griswold stated that this discussion is for informational use only.
Mr. Griswold explained that he hopes the Town will be able to begin automated single stream next spring (May). Two things must be resolved for this to happen. First, the Town must select a contractor and second, the Town must purchase the 95 gallon recycling carts.
Mr. Griswold has spoken with Gary Yuknat of Shoreline Sanitation which could become the contractor. Shoreline would need to purchase a new truck and would be willing to hire one of the Town’s recycling drivers. Shoreline can provide a fixed price contract or a cost-plus contract. Most members of the Board of Select and Board of Finance believe this contract should go out to bid, requesting both fixed prices and cost-plan. It was recommended a committee be formed to develop the RFP so bid may be received in August.
As was noted at a prior meeting, the Town must order 95 gallon recycling carts. Most of the funds are in hand or committed by grant, so the details must be worked out.
No action is required at this time but the RFP must be prepared soon so a Town Meeting may be scheduled in late August.
Board of Finance Meeting July 15, 2010
Mr. Russell stated that the next Board of Finance meeting is scheduled for Tuesday, July 20, 2010 at 7:30 p.m. Mr. Russell said that he will not be attending the July 20th meeting and that Mr. Kerr will be chairing the meeting.
A motion was then made by Ms. Read , seconded by Mr. Garvin and passed unanimously to adjourn the meeting at 5:58 p.m.
Respectfully Submitted,
Michele Hayes-Finn
Secretary
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