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09/15/2005 - Work Study - Minutes CITY OF PORT ORCHARD City Council CITY HALL • 216 Prospect Street, Port Orchard, WA 98366 (360) 876-4407 • FAX (360) 895-9029 JOINT STUDY SESSION September 15, 2005 – 6:30 pm – 8:00 pm KARCHER CREEK MEETING ROOM The Port Orchard City Council and Karcher Creek Commissioners met to discuss the construction progress and financial summary of the Joint Wastewater Treatment Facility Expansion. Those in attendance were as follows: City of Port Orchard Karcher Creek Sewer District Kim Abel, Mayor Bill Huntington, Commissioner Todd Cramer, Councilmember Jim Hart, Commissioner Rita DiIenno, Councilmember Susan Fowler, Commissioner John Clauson, Councilmember Dick Fitzwater, General Manager Ron Rider, Councilmember John Poppe, WWTF Plant Manager Carolyn Powers, Councilmember Maher Abed, Public Works Director Kristine Tompkins, City Treasurer Michelle Merlino, Deputy City Clerk Other Attendees John Cristello, Pease and Sons Debra Miller, DMJM Harris, Construction Management Councilmember Clauson opened the meeting up for discussion and asked Public Works Director Abed to bring the Council and Karcher Creek Commissioners up to date on the status of the Joint Wastewater Treatment Facility expansion project. Public Works Director Abed gave a brief introduction and introduced John Cristello and Debra Miller, contractor and project engineer and asked them for a brief comment on the project. Mr. Cristello advised that due to the change in the project engineering staff, the project is currently running smoothly and ahead of schedule. September 16, 2005 Page 2 of 2 Debra Miller commented that when she met with John Poppe and John Cristello, they concurred the project needed to move forward with a goal to make this project a great success. John Poppe discussed the “Water Reuse” Project #1 and Project #2. Project #1 is a Department of Ecology Matching Grant with a local match of $5,000. This grant would allow for a qualified staff person to help with the creek restoration, public education, riparian improvements and supervision and logistical support. This program is projected to begin October 1, 2005. Project #2 is also a Department of Ecology Matching SEPA Grant in the amount of $5,000. This grant would allow for the “Water Reuse” on Retsil soccer park. However, before this can be accomplished a SEPA checklist first needs to be submitted. Mr. Poppe advised the projects have not been budgeted, however, Annapolis Water District has agreed to paying 1/3 of the grant match, therefore Mr. Poppe recommended that the City and Karcher Creek Sewer District each fund 1/3 of the matching grant costs. Public Works Director Abed presented the history of the project advising the construction is about 80% completed, with a projected completion in June of 2006. City Treasurer Tompkins presented the financial summary of the project. City Treasurer Tompkins addressed the two Public Works Trust Fund Loans, the local match, expenses and funds available. City Treasurer Tompkins reported currently the City and the Sewer District combined have revenues in the amount of $20.9M and current obligations of $22.1M, which calculates to a possible $1,200,000 shortfall. City Treasurer Tompkins presented the Council and Commissioners with two options. 1st Option - Possible savings from limiting use of consulting engineer, which could bring possible shortfall to $850,000. 2nd Option – phase in the purchase of Zenon membranes in approximately 2 years, which could bring possible shortfall to $550,000. At 7:20 pm the Council and Commissioners went into Executive Session to discuss possible litigation for 15 minutes. At 7:35 pm the Council and Commissioners adjourned the Executive Session and return to the Council and Commissioners Study Session. After some discussion the Council and Commissioners reached a consensus on the following: ™ Recommendation to proceed with Project #1 and Project #2, contributing to local match for grants. ™ Recommendation to use Montgomery Watson Engineering on an on-call basis up to $10,000. ™ Contact Zenon to work out details for phase in of membranes and get cost saving figures. ™ Each entity will identify their funding sources for shortfall. The SAC Committee set October 20, 2005 at 6:30 pm, Karcher Creek Meeting Room for the next meeting. The Study Session adjourned at 8:00 pm