Eminence Kentucky-Minutes

The City Council of the City of Eminence, Kentucky met in a special session on Wednesday, March 5, 2008 at 8:30 p.m. at the Eminence City Hall Council Chambers with Mayor Jim Petitt and the following members present: Danny Meadows, Treva Browning, Shawn Bright, Drane Stephens, Richard Thomas and George Armstrong. Absent were none. Other individuals present were Attorney William Brammell, City Clerk Sandra Doane, Police Chief Carey Duncan, Public Works Director William Smith, Assistant City Clerk Robin Mullins, Tim Fitzgerald, Doug & Manda Gingrich, Jean Thomas, Jerry Clark, Donald Young, Fred Downey, Mount Hadden, Thomas C. Paul, Henry County Local Representative Jonna Spelbring Priester, Lawrence Wright, and Robert J. Fields.

The purpose of the meeting being called was to discuss the swimming pool bids, to discuss the swimming pool commission; to discuss the swimming pool grant and to hold general swimming pool discussion.

Manda Gingrich spoke on behalf of the Pool Commission. Ms. Gingrich stated that after reviewing the two bids received for the pool renovation project, it is their recommendation to reject the bid from American Leak Detection for $142,500.00 as it is an incomplete bid for various reasons as follows:

1. Their bid did not meet the bid specifications;
2. Their bid was an incomplete bid so therefore the total cost of the job would increase;
3. Their bid could be a “temporary fix” option;
4. Their bid included a charge for work already performed by them;
5. Their bid package contained no references;
6. Their warranty offer is vague and open ended; and
7. Their bid did not include the associated cost for steps in pools.

Ms. Gingrich stated that the Pool Commission recommends accepting the bid from Our Back Yard Leisure Specialties in the amount of $237,250.00 for the following reasons:

1. Their bid proposes a more permanent option for repairs;
2. Their bid proposes to bring all pump and filtration systems and underground plumbing to state code without the need to submit an additional bid;
3. Their bid specifies plans and associated cost of installing steps in both pools;
4. Their bid include nine references;
5. Their bid includes a payment schedule that allows time for fundraising and grant process;
6. Their bid includes proof of liability insurance;
7. Their bid includes a two year warranty along with manufacture warranties;
8. Their bid includes upgrading from four filters to one larger filter; and
9. Their bid includes upgrading the vacuum system.

Ms. Gingrich stated that the original bid specifications were written by American Leak Detection which she feels was an issue with the first bids as they created a one-sided bid as they required a two million dollar liability policy to be in effect not less then six months old which prohibited the other bidders from bidding.

Ms. Gingrich stated the current bid specifications were done by the Pool Commission and brought to the Mayor for his approval which he would not give without council approval. They then took the specifications to Attorney Brammell for his review.

Ms. Gingrich stated with the $151,000.00 from the City and the $40,000.00 from the Making Waves we would only be short $46,500.00. Ms. Gingrich stated she has $1,000.00 from Norm’s Grocery and $1,000.00 from herself and Mr. Gingrich to add to the fund-raising efforts. They plan to keep fund-raising as they are doing this for the kids.

Ms. Gingrich stated the Land and Water Grant was submitted on March 1st for $75,000.00 which would require us to match $75,000.00 if received. If received and funded, we would then have an excess of funds which could be used for other recreational additions to the project. We hope to hear from the grant by the end of April. She stated the Commission realizes that a June 1st opening will probably not happen but we still need a target date. She stated we will also have the admissions and concessions as income.

Mayor Petitt asked Attorney Brammell to explain the requirements for borrowing money. Attorney Brammell explained there are limitations on a City’s borrowing ability. Long term debt possibilities:

1. Bond issue (however our amount is too small);
2. Kentucky League of Cities;
3. Use of Public Holdings Corporation;
4. Debt to be repaid from project revenues and not from general fund.

Ms. Gingrich stated the Commission has already received pledges for thousands of dollars of in-kind labor and that she feels we will lose the pledges if we don’t move forward quickly. One pledge is from Jeff Cozine for $5,000.00 worth of concrete work and Tommy Paul along with the Whitney Young Job Corp are donating their labor, equipment and supplies to do the bathhouses. Tommy Paul has agreed to bring his entire crew in and work on the bathhouse and has agreed to do it all. Ms. Gingrich stated that Judge Brent invited them to a Fiscal Court meeting where the County pledged $2,500.00 toward this project as well as in-kind work.

Ms. Gingrich stated she has received several calls from people after the Byron Crawford article in the Courier Journal came out about our project.

Discussion held on whether we can start the project and use the grant money to finish up the project. Mr. & Mrs. Gingrich both stated that we can start and then use the grant to finish the project with Mr. Gingrich pointing out the e-mail from the state stating it was okay.

Attorney Brammell reported that he discussed the bid with the Gingrich’s today and that we cannot back out of the contract with changes and if we accept the bid we are accepting the bid as is. He stated that change orders can only be used for unforeseen things in a project and we cannot use in-kind to take the place of bid items. Any change order could only be made by agreement with the contractors. Attorney Brammell also stated that he was approached by Mr. & Mrs. Gingrich to approve the bid specifications, however he advised them that he cannot approve them as this was out of his expertise and should be reviewed by someone knowledgeable in pool engineering.

Member Stephens stated he feels we need to look at the bid as if we need $237,500.00 and need to assume we have to pay the full amount and need to be able to come up with all the money and let the grant be the icing on the cake.

Member Meadows asked Clerk Doane to review where the $155,900.00 would be coming from in the City’s budget. Clerk Doane stated she was previously asked to explain in writing and in a meeting with Mayor Petitt, Member Meadows and Member Bright about the reserve accounts of the City. Clerk Doane stated she has always been told that the City should not use funds from the water and sewer system for uses other than water and sewer. The reserve accounts have been set up by either a bond issue requirement or City ordinance and she feels they need to stay for the purpose for which they were intended, even if overfunded, for future repairs and extensions to the water and sewer system. After reviewing the accounts, it was determined that the KIA Replacement and Reserve Account had a surplus above the amount required by KIA to have in the account; the Water & Sewer Reserve Account was set up by City ordinance for the water and sewer system for future needs when the occupational tax was put in place; the City also had a small account of approximately $9,000.00 set up several years ago by the Council at that time for a fire truck depreciation account; and after review of the general fund budget some changes were made there to allow for additional funds. All of the above amounts were authorized for transfer to the Parks for the Pool Project as needed last month with the final vote on the budget ordinance amendment to be at the March 10th meeting.

Lawrence Wright asked how we would fund future water and sewer problems if we use this money.

Donnie Young stated he is for the kids and hopes we can get this done, but encouraged the council to look at the future as well and to bear in mind that the pool is only used 2-3 months out of the year.

Member Bright expressed concerns that the first figure discussed for getting the pool pen was $25,000.00 to $30,000.00 which has continued to grow and now we are at $237,500.00. He feels this council has invested in the Community with the Music on Main and new Halloween activities and did so with only a small amount of money and feels we are not considering everything.

Tommy Paul stated this is not just about the money – promises were made to the Community.

Mayor Petitt stated he is the one who originally stated he could get the pool open for $25,000.00 to $30,000.00, but he also stated he would not break or bankrupt the City to do so. Member Meadows during a conversation with him stated it would take $125,000.00 or more. After Jan Brown, the inspector with the state came in with the code requirements the price increased considerably.

Member Browning stated she feels the pool is needed for the kids and to help the community grow. She also stated emergencies do happen and doesn’t think we should use the water and sewer funds and that no changes should be made to any agreement with the employees.

Attorney Brammell gave a summary of the legal framework for considering a bid. Mr. Brammell stated the statutes require the bidding process to identify the scope of work by specifications and if the specifications are adequate and all bidders are bidding the same thing, we can determine if all bidders are in conformity with the specifications. Mr. Brammell stated we do have two bids which are a long way apart and feels it would be a good idea for the bids to be reviewed by a person with expertise in this area to determine if either or both meet the specifications. If they do, we must take the lower bid or document why the higher bid is the best. Attorney Brammell stated by awarding the bid you are entering into a binding contract.

Mayor Petitt asked if the $237,500.00 is turn-key. Member Meadows stated no as it does not include the electrical and plumbing portion.

Motion made by Member Armstrong to accept the bid form Our Back Yard Leisure Specialties in the amount of $237,500.00 and to reject the other bid from American Leak Detection of $142,500.00 as they did not meet the bid specifications on several items including the underground piping, request for references and other items as listed above. Motion seconded by Member Thomas. On a call of vote by Clerk Doane, all members present voted “Yea”.

Member Meadows requested that Mayor Petitt look into borrowing the needed $46,000.00. Member Armstrong asked that KLC be asked to quote this and that we needed to look at all other sources of revenues.

Doug Gingrich asked what are to be the Pool Commission functions. Member Meadows stated this was already voted on at a previous meeting.

Member Stephens asked if there was anyway to be less burdensome on the City employees and asked if the Parks and Recreation Committee could take over as the contact. Member Stephens stated no one is complaining and he is only asking if the Parks & Recreation Committee could assist.

Member Stephens stated he is really upset about some of the vindictiveness going on among everyone and would like for it to stop.

With no further business to be discussed, motion made by Member Meadows and seconded by Member Bright to adjourn. All members present voted “Yea”. Meeting adjourned at 10:56 p.m.

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