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Old Lyme Board of Selectmen
Special Meeting: Tuesday, June 2, 2010
The Board of Selectmen held a special meeting at 7:30 PM on Tuesday, June 2, 2010 in the American Legion Room at the Old Lyme Memorial Town Hall. First Selectman Timothy Griswold, Selectman Skip Sibley and Selectwoman Bonnie Reemsnyder were present. This was a joint meeting with the Board of Finance.
Mr. Griswold called the Board of Selectmen Special Meeting to order at 7:39 pm. There were three items on the agenda: Shoreline Sanitation Contract, Single Stream recycling RFP and Church Corner Appropriation.
1. Shoreline Sanitation Contract
Mr. Griswold started with the extension of the contract with Shoreline Sanitation. He stated that at the annual Town Budget meeting held on May 15th, 2006, the voters approved a four year extension of the Agreement for Refuse Collection between Shoreline Sanitation and the Town of Old Lyme for the period July 1, 2007 through June 30, 2011. On the third anniversary of the contract (June 30, 2010), the contract states the Town shall decide whether or not to again extend for a four term. The reason for this provision is to allow Shoreline a year during which it may order a new automated refuse truck so that the truck will be available on the first day of the new contract. Shoreline Sanitation charges the Town the net cost of operation for the prior year plus a management fee of 17%.
This has worked well for the Town; however the Town must now make a decision about the Shoreline contract. The Town can either recommend to a Special town Meeting to extend the Shoreline contract for another four years (July 1, 2011 to June 30, 2015) or put the refuse collection contract out to bid. If the Town were to do the latter, the Town would likely require a fixed price contract for each of the four years, rather than the net cost of operation plus a management fee. Therefore, based on the superior financial performance and exemplary service we have receive from Shoreline, Mr. Griswold believes it is in the best interests of the Town to extend the contract with Shoreline for the additional four years, subject to approval of a Town Meeting. If the Town chooses this route, a Special Town Meeting could be scheduled during the month of June and thereby comply with the term of the contract. The inclusion of a proposal to purchase single stream
95 gallon recycling carts that will be distributed to all households next spring could also be added to the Town Meeting at that time.
Several members of the Boards of Selectmen and Finance expressed total satisfaction with the services provided by Shoreline Sanitation and recommend the extension of the contract of Shoreline to go before a Town Meeting. There was discussion that the Town is welcome to review Shoreline Sanitation’s books at any time, which would not be the case with any other hauler (Section 5a in the Shoreline Sanitation Contract). It was decided to eliminate the words “increases in” as part of the contract in Section 5a. A date for a Special Town Meeting was discussed and was scheduled for Monday, June 21st at 7:30 pm at the Town Hall Meeting Hall. Two modifications to the contract were agreed upon, the first being under Section 5a, to eliminate the words “increases in” as part
of the contract. The second modification under the section 1, in which the Town has the option to terminate the contract within six months should Gary Yuknat of Shoreline Sanitation, not be able to complete the terms of the contract.
A motion was made by Mr. Sibley seconded by Mrs. Reemsnyder and passed unanimously to have the two terms, outlined above, to include and recommend to Special Town Meeting of Monday, June 21st at the Town Hall Meeting Hall. Motion carried.
2. Single Stream Recycling RFP
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.
3. Church Corner Appropriation
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.
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. And Exhibit I and II were discussed (attached). 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 up to $15,000 which will provide $5,400 to resolve any additional items that may arise. 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 curb before the White Elephant Sale, the first week of July. After extensive discussion it was decided that the Church Corner Committee members should have a discussion with Rowley/Hendriks and obtain agreement from American Industries before coming before the Boards of Selectmen and Finance.
2. Adjournment – A motion was then made by Mr. Sibley, seconded by Mrs. Reemsnyder to adjourn the Board of Selectmen meeting at 9:47 p.m. SO VOTED.
Respectfully submitted, ~
Timothy C. Griswold
Recording Secretary
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