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HomeMy WebLinkAboutMN-SJC-2019-12-182019.12.18 APPROVED SJC minutes.doc 1 SJC MEETING December 18, 2019 SJC Members Staff Cynthia Brock, Chair Steve Thayer Ray Burger (Dryden Alternate) Scott Gibson Rich DePaolo CJ Kilgore Supervisor Bill Goodman Matt Sledjeski Laura Lewis Tee-Ann Hunter Dave Warden Scott Reynolds Guests Absent Bruce Munn; GHD Dan Lamb (Dryden Alternate) Rod Howe; Ithaca Resident Supervisor Jason Liefer Cynthia called the meeting to order at 1:00 p.m. Introductions were made. Rich MOVED to accept the November 20th minutes. Seconded by Laura. Approved 8 - 0. Financial Report – Steve Thayer - financial activity through November 30th. Revenues – We have collected $3,176,000.00 of our budgeted revenues to date. Septage revenue to date is $351,000.00 - running a little under budget due to timing. Debt Service of $900,000.00 was invoiced a week and a half ago. Interest earnings will be booked at year end. Expenses – We have expended $3,906,000.00 - most accounts look pretty good. Some accounts are over budget - Part Time Seasonal, Insurance, Equipment Parts, Sludge Disposal and Health Insurance - we should be within our budget overall at year end. We are hoping to be able to work with NYSEG to set up payment arrangements regarding the billing issue. Steve offered to follow up with his contact. We paid our retirement invoice early to realize the 1% discount. Our current deficit is $731,000.00 - we budgeted for a deficit of $250,000.00. A contract agreement with the CSEA Administration by the end of the 2019 year seems unlikely. Capital Project 414J – Flow Meters – no activity. Capital Project 422J – Plant Improvements – no activity. Operations and Engineering Report – CJ Kilgore 1. Plant Maintenance & Operations – Boiler replacement/repair – CJ has engaged Tim Carpenter to access the boiler situation and to give us options as to how to proceed. Two of our four boilers are thirty two years old. Our two newer (seven to eight years old) high efficiency boilers that were part of the Johnson Control energy performance contact are 2019.12.18 APPROVED SJC minutes.doc 2 maintenance intensive - one of them probably needs to be replaced. CJ is waiting for cost estimates - this will more than likely be a capital reserve or a capital project. 2. Facilities Maintenance & Operations a. Grit Removal and Misc. Improvements – The bids for the capital project came in approximately $4,000,000.00 over the estimate provided by GHD. One General Contractor, one Electrical Contractor and four Plumbing and Heating Contractors submitted bids – they are willing to hold their bids beyond the sixty days in order for the funding to be approved by the three municipalities. A discussion of options – to cancel, to accept, to rebid or to break apart the project took place. Bruce Nunn presented the cost comparison breakdown - their initial estimate was provided in September 2018 and in retrospect should have been updated as the specs/scope changed. No individual component of the project could be singled out as the cause - the Grit System had the greatest increase ($1,000,000.00). Bruce explained the $200,000.00 increase in Engineering, Testing, Legal and Administration as the necessity for a full time resident project representative to oversee the seventeen month construction. Initially they had budgeted to provide six months full time with the remainder at part time. The complexity of the project also increased (effluent water system addition and digester rehab work/sequencing). Steve offered that the $4,000,000.00 increase might impact the sewer rate one percent in 2021. The members reluctantly decided to continue to move forward because the improvements/repairs are essential. Rich expressed his general frustration with the inability of professionals to estimate accurately - he added that although this may not be the fault of GHD we paid for this service. Laura stated that she shares some of the frustration but fully appreciates that working with the DEC and NYSEG can be an enormous challenge. Scott G. interjected that he feels it is not any one thing or and one entity but the market and a lot of factors. Scott R. MOVED to accept the resolution for the Capital Project Construction Phase for the Grit Removal Project, Concrete Restoration Project, Emergency Generator Replacement, and Miscellaneous Plant Improvements at the Ithaca Area Wastewater Facility. Seconded by Laura. Approved 8 – 0. Laura MOVED to accept $11,541,850.00 as the amended total project cost amount. Seconded by David. Approved 8 – 0. Capital Project Construction Phase for Grit Removal Project, Concrete Restoration Project, Emergency Generator Replacement, and Miscellaneous Plant Improvements at the Ithaca Area Wastewater Facility WHEREAS, the Ithaca Area Wastewater Treatment Plant (IAWWTP) is in need of certain Capital Improvements, and WHEREAS, a Capital Project CP #422J was established on December 6, 2017, in the amount of $434,175 for Design of Miscellaneous Plant Improvements to the IAWWTP, and 2019.12.18 APPROVED SJC minutes.doc 3 WHEREAS, on September 19, 2018, the Special Joint Committee (SJC) unanimously recommended to the Owners that this project be authorized and funded in an amount not to exceed $7,190,000 for the costs required to construct the Grit Removal and Concrete Restoration project in its entirety, and WHEREAS, bids were received for the Ithaca WWTF Grit Removal and Miscellaneous Improvements Project on November 26, 2019, and Staff, in association with the Plant’s consulting engineers, GHD, have completed the Post-Bid Project Cost Analysis, and WHEREAS, Staff, in association with the Plant’s consulting engineers GHD, have concluded that GHD's "opinion of probable project costs" (Engineers Estimate) was low, and the bids received were responsive and reflective of today's reality, and WHEREAS, whether the Contract is Awarded or Re-Bid the project funding authorization will need to be increased as follows: Original Cost Authorized Revised Cost Estimate Change Contract 1 – General $4,420,000 $7,417,175 $2,997,175 Contract 2 - Electrical $1,260,000 $2,043,600 $783,600 Contract 3 - HVAC $310,000 $521,900 $211,900 Subtotal Construction $5,990,000 $9,982,675 $3,992,675 Contingency $600,000 $325,000 ($275,000) Total Construction $6,590,000 $10,307,675 $3,717,675 Engineering, Testing, Legal, Administration $600,000 $800,000 $200,000 Total Project Cost $7,190,000 $11,107,675 $3,917,675 Now, therefore be it RESOLVED, the SJC recommends to the Owners that this project be authorized and funded in an additional amount not to exceed $3,917,675 for the costs required to construct the Grit Removal and Concrete Restoration project in its entirety, and be it further RESOLVED, That with this latest amendment the total Project Authorization for said project shall be an amount not to exceed $11,541,850, and be it further RESOLVED, that funds necessary for said amendment shall be derived from the issuance of Serial Bonds, and be it further RESOLVED, That SJC hereby recommends authorization of this project contingent upon action by all wastewater partners committing their percentage of reimbursement shares to the Joint Activity Fund allocated per the Joint Sewer Agreement as follows: Municipality Percentage Total Project Cost Increased Cost Authorization City of Ithaca 57.14 $6,346,925 $2,238,559 Town of Ithaca 40.88 $4,540,818 $1,601,546 2019.12.18 APPROVED SJC minutes.doc 4 Town of Dryden 1.98 $219,932 $77,570 $11,107,675 $3,917,675 3. Staff Management – 4. Reporting – 5. Business, Long Term development – 6. Energy Production Statistics – provided by CJ. Presentation/Discussion Items Voting Items – Announcements / Other Business – CJ discussed emergency exits and offered that fire extinguishers are at various locations in the plant. Cynthia isn’t sure who will be back in 2020 - she hopes to see everyone in January. Laura MOVED to adjourn. Seconded by Tee-Ann. All were in favor. Approved 8 - 0. Meeting was adjourned @ 2:30 p.m. The Next Meeting will be January 15th, 2020, 1:00 pm.