WORK SE
MAYOR AND CITY COUNCIL
CITY HALL CONFERENCE ROOM
Tuesday, February 7, 2006
6:15 P.M.
Present: Mayor Lee N. Fiedler, Council Members Floyd “Pete” Elliott, Edward C. Hedrick, Jr., Harold L. Hendershot, Jr., and Terance J. Rephann.
Also Present: Jeffrey E. Repp, City Administrator; H. Jack Price, City Solicitor; Kevin Hagerich, Director of Public Works; John Chapman, Assist. Director of Public Works-Maintenance Division; and Sharon S. Clark, City Clerk.
I. “Wireless Cumberland” Proposal – CONXX
Mr. Repp introduced Mr. Jeff Blank, Mr. Todd Tanner, and Mr. Trent Tanner, representatives for CONXX, who gave a presentation regarding the potential of making the City a WiFi (wireless) network city-wide. A detailed report was distributed to members of the Mayor and Council for their review and consideration. CONXX representatives explained what WiFi is, who would benefit, why it is important to the City, who is doing municipal broadband, problems and ways to overcome them as well as the business plan. The business plan was presented as a three (3) phase project with Phase 1 being the Downtown Town Centre and Canal Place at a cost of $28,066; Phase 2, North Cumberland at a cost of $174,296; and Phase 3, South Cumberland and the Airport at a cost of $144,730 – a total cost of $347,092. A schedule for the implementation of each phase was also presented with the completion expectation being early fall.
Mr. Blank explained CONXX would build the network at a slight loss because of software development issues. He also said they do not see this project being CONXX building the network for the City, but as AllCoNet 2 building the network; thus being a partnership between CONXX, the City, and the County. He said they are also building links with Allegany College. Mr. Tanner stressed the benefit of this to the City for economic development in making the City a higher tech, more advanced community.
Mr. Repp asked if there would be revenue to be gained by the City from the person connecting to the wireless network if the City would put the $347,000+ out in capital costs to make the City wireless. Mr. Blank said there is a revenue sharing model with the Internet Service Providers (ISPs) that would be pushed through to the City and County. Upon question by Mr. Repp as to who would pay the $347,000, the City or AllCoNet2, it was explained the revenue would go to AllCoNet2, and it would be determined by that Committee what they do with the monies. Mr. Repp questioned whether the City would have the ability to proceed with a modification to the revenue model if the County chooses not to participate. Mr. Blank said they could and added that current revenue models show between a $10,000 and $50,000 monthly revenue stream to AllCoNet2 partners.
Councilman Rephann asked how many customers they are estimating and was told, if we are like most communities, un-served areas would be approximately 35% and under-served areas approximately 10%; however, it was noted that this would be competitive and depend on which provider sells the service for the lowest price since the price is set by the provider and not the City or CONXX. There was discussion of needed equipment and the quality of service being offered for a business class service vs. a best effort network.
Mayor Fiedler summarized his understanding of the presentation to be that there would be a Business System as well residential service through ISPs but the customer would need to purchase an antenna for a cost of $500. However as AllCoNet2 is today, very few residents in the City would probably be able to get the service due to the expense of the $500. in addition to the monthly service fee. This program would make the service affordable for residential service, as once an antenna is placed at a house the individual could go to Office Max, etc. and purchase a WiFi access point for under $100 and would then pay only a monthly service to a provider. Mayor Fiedler added that this would take full advantage of the City’s AllCoNet investment. He further verified that if the City would enter into this project and pay the cost they would add a surcharge to help pay for their investment, and at that point anyone anywhere in the City who wanted could go wireless.
There was also discussion of the advantages of this system related to public safety.
Mr. Repp advised the intention of the presentation was to receive the material, have time to review and discuss it after which they could make a decision whether or not to pursue Phase 1 in the Downtown Town Centre and Canal Place at a cost of $28,000 as a test phase to see how it is received.
Councilman Rephann as why local services providers haven’t done this, and Mr. Blank said that it was due to the initial capital cost and operational expenditures.
CONXX representatives advised that if the City decides not to do this, they may decide to do it as a business model, but the odds of them wiring the entire City would be very low. Mr. Tanner added that the advantage of the city doing it is that it would be an equal access network and all citizens would have access to a lower cost broadband access.
At the completion of the presentation and discussion with CONXX, Councilman Hendershot asked to revisit the agreement the City signed with CONXX to see how conditions and benefits relate to this. Mr. Repp advised Jerry Frantz, Allegany County Finance Director, is sending him a financial breakdown of all costs associated with AllCoNet2. He also noted that the county has put more money in than the city as they had additional costs since they did not get the Tri-County Counsel loan that they were supposed to. He further stated the original plan was to split revenue 50/50; however, he has authorized the county get down to their original funding level before they start splitting. Mr. Repp said he would review the information with the Mayor and Council as soon as he received it.
II. Johnson Controls Performance Contracting Program - Energy Performance Contracting & Municipal Infrastructure Solutions
A presentation was given by Mr. Chris Kaiser, Local Government Representative for Johnson Controls explaining their proposal to the City to perform this service. He reviewed the challenges facing municipalities and traditional methods for implementing infrastructure improvements vs. the way Performance Contracting delivers infrastructure improvements.
He explained that performance contracting is a financial vehicle allowing city government to make immediate valued-engineered infrastructure improvements with improvements being funded fully with guaranteed energy and operational savings – the contracts are self-funding. Savings are realized through inefficiencies in the budget and the dollars are redirected for infrastructure. Mr. Kaiser stated that this is guaranteed financial and operational performance, and legislation for the State of Maryland states that any projections that Johnson Controls would make in terms of operational energy savings they have to make occur or they would have to pay the difference. He gave examples of typical performance contracting improvements and said they usually see a reduction in utility expenditures between 20% and 30%. The State of Maryland, in 2004, updated the contracting performance legislation to include a 15 year pay back period to allow the savings to pay for improvements.
Mr. Kaiser reviewed the procedures followed by Johnson Controls in this process and stated they would need a Memorandum of Understanding (MOU) allowing them to interval employees and documents to find the City’s needs. This information would then be used to present and develop a preliminary proposal to give Council an overview showing how much energy they can save, what kind of operational savings the city would see, etc. If the City likes what they see, they can go through the traditional bidding process after which they city can choose the lowest bid or, under the legislation, the most qualified provider.
There was discussion of the process, possible savings to be realized, and funding for improvements which would be realized through savings. Mr. Kaiser said their initial feelings are that the majority of savings for the city would probably come from outside the facilities.
Mayor Fiedler asked about the funding for improvements to which Mr. Kaiser said the traditional method for funding performance contracting is a third party municipal lease, with the savings being used to make the payments, and at the end of 15 years it is paid off. Mayor Fiedler asked if this would be done in phases or all at once, and Mr. Kaiser said they usually do it at one time with completion being between six and ten months; however, if their investigation shows there are large opportunities for savings they could do a phased approach. Mayor Fiedler confirmed with Mr. Kaiser that Johnson Controls has done this in industry for years.
There was a question raised that controls have a short life span and Mr. Kaiser confirmed that if the city chooses to install controls it would be a very small part of the process and if they wished they could be updated periodically; however, savings is normally seen through larger equipment having a 30 year life span.
Mr. Repp commented that there is an item on the agenda for considerations in the public session for a Memorandum of Understanding giving Johnson Control the access to come in and prepare the report for Council’s consideration. He further stated there would be no cost incurred by the City for this first phase.
III. Public Meeting Agenda Review – Mr. Jeffrey E. Repp, City Administrator
Ordinance authorizing the Mayor and City Clerk to execute a deed for property located at 508 Washington Street to Robert J. Love and Julie L. Krespan
Mr. Repp summarized how this property was obtained by the city and the process followed in accepting the proposal of Mr. Love and Ms. Krespan stating that tonight’s Ordinance was for the purpose of executing the deed to transfer the property. He also noted that there is a reverter clause in the deed for the property to come back to the City in the event the terms in the proposal for rehabilitation of the property are not met. He asked for questions. Mr. Price stated, assuming the ordinance is adopted, the closing would be Friday.
Consent Agenda - Mr. Repp reviewed the Consent Agenda with discussion as follows:
Item No. 1 To approve a Historic District Tax Credit for property located at 27 N. Centre Street - $6,422.55
Item No. 2 To authorize the City Administrator to enter into an Employment Agreement between the City of Cumberland and Paul J. DePalatis to serve as Project Engineer
Item No. 3 Appointments to the Neighborhood Advisory Commission – Anita Payne, Kathy Robey
Item No. 4 To authorize the Mayor to execute a Memorandum of Understanding between the City of Cumberland and Johnson Controls, Inc. to develop a preliminary report to project the feasibility of an energy services performance contract
Item No. 5 To accept the sole source quote of Environmental Systems Research Institute, Inc. for ESRI GIS License re-certification - $15,938.73
Item No. 6 To authorize the Mayor to sign a letter of authorization for the City to participate in the Department of Natural Resources Urban Tree Canopy program
Mr. Repp explained this is a program by the State of Maryland and that Cumberland had been chosen to participate as one of six communities. This order authorizes the Mayor to sign a letter authorizing acceptance of the grant. He said the intent of the program is to increase the urban tree canopies in Maryland which in turn helps the Chesapeake Bay. The goal is to achieve a 50% canopy over Cumberland over the next ten years. He explained we are currently around 32-33% based on old data, which is one reason Cumberland was selected to participate. Participation will also allow the City access to grant funds not currently available to achieve the goals. He also stated this program will work well with the City’s program management system so when streets are being done we can also do street trees.
In answer to question by Councilman Hedrick, Mr. Repp said this plan would be in place for FY 2007. Councilman Hedrick asked about the affect of this in areas on Haystack Mountain, and Mr. Repp commented that in some areas it would; however, a lot of trees in that area have come back over the last ten years.
Councilman Hendershot asked if the Shade Tree Commission was involved in this. Mr. Repp stated one of the reasons the City was selected to participate is that we have a Commission who will oversee the project. He asked who would do the planting and Mr. Repp advised it would be contractual.
Item No. 7 To authorize the Mayor to execute a Road Transfer Agreement between the Mayor and City Council and the State Highway Administration to transfer sections of roads in the area of Canal Parkway area to the City
Mr. Repp explained this is surplus land the State Highway is willing to donate to the City since the Canal Parkway Project is complete. He provided a view of a map showing the area and said staff has reviewed it and sees no problems.
In answer to a question from Councilman Hendershot concerning maintenance of the area, Mr. Hagerich, Public Works Director, stated they would look at the area to see what will work best for the city, but currently the area is not maintained by the State.
Item No. 8 To accept the proposal of Stantec Consulting Services, Inc. for a Pavement Management System Project – Est. 72,400.00
Mr. Repp said this order is staff’s recommendation for the pavement management system project to be awarded to Stantec, Inc. He explained requests for quotes (RFQ’s) were sent to eight firms with six firms responding ranging from $44,500 to $250,000. Two firms were then selected to make presentations. He gave a brief review of what Stantec will do for the city in determining the condition of the streets and provided a handout to the Mayor and Council explaining the project.
Councilman Rephann asked how the City would maintain the system and estimate pavement quality index (PQI’s) year after year. Mr. Hagerich explained Stantec would come back every three years until the city gets enough experience to do it themselves. He said he felt this would take 9-12 years and said there will be a point with improvement with the GIS capacity that this would become our own information and we would maintain it. Mr. Repp added that he felt they would need to come back to update their report two or three times. He stated that the intent of the report is to meet a balance in maintaining streets with preventive and routine maintenance so the city not constantly in the reconstruction phase. He added that it would provide data to show whether or not a street needs reconstruction.
Mr. Repp stated that a service that was ask for and included in the proposal is a video survey which will identify street signs that need replaced, trees needing trimmed, etc. enabling staff to view issues throughout the city prior to a citizen complaint.
Mr. Repp reviewed and explained funding sources for the program - Federal Aid in Lieu of State Aid funds and CDBG funds.
Councilman Hendershot inquired as to the reason for the broad range of cost from different bidders for this project. Mr. Repp explained that some of the higher proposals were doing core samples of roads, etc. as opposed to using current technology. He added that the majority of proposals were in the range of $100,000 - $150,000. The reason they conducted several interviews was to answer their concerns with some being at the low end and some at the high end.
Item No. 9 To accept the quote of American Rent-All for the purchase of a (35’) man lift for the WWTP - $21,050.00
Letters -
1. From the City Clerk to Mr. William Taccino in response to request for advertising dates for property located at 215 Decatur Street
2. From MDP advising of allocation for Rolling Mill Access Improvement, Phase III Project - $820,679.00
Mr. Repp presented a summary of this project for the Mayor and City Council as well as a tentative schedule for Phase 2 & 3 with a construction start date of August 21, 2006. He also reviewed funding for the project.
Councilman Hendershot questioned whether or not they would be using brick on sidewalk areas. Mr. Repp said that while they did use brick in some sidewalk areas of this project, they would not be using brick, but concrete. He sited concerns of maintenance and expense as reasons for the decision to discontinue that theme as well as to avoid future problems. There was some discussion of the project and how it would look aesthetically.
3. From U. S. Dept. of Housing & Urban Development – FY 2006 Allocation for CDBG Funds $1,028,497.00
4. From Md. Dept. of Planning advising that Chapel Hill, Decatur Heights, and Greene Street Historic Districts were entered into the National Register of Historic Places on December 28, 2005
Public Hearing – Allotment for CDBG Funding - $1,028,497
IV. Howell Trucking Fuel Contract -
Mr. Repp advised Howell Trucking had requested an adjustment to their contract due to the increase of fuel costs. He advised they have one year left on their contract with the city and also that he and Mr. Hagerich met with Howell and his attorney regarding this issue and came up with a potential solution if the Mayor and Council decide to entertain the request for an adjustment.
Mr. Repp advised Council they are not required to adjust the contract, and ask if they were interested in considering the request. He also asked, if they are interested in making an adjustment, when they want the adjustment to start. (Howell has asked for an adjustment back to January 2005.)
Mr. Repp proposed to establish a base fuel charge of $2.00 per gallon, and if the cost is higher the incremental increase will be billed to and paid by the City; however, if fuel costs drop below $2.00 per gallon in any month, the city would receive a credit. It was the consensus to make this adjustment in exchange for extending the contract for two additional years.
Ms. Linda Golden asked if this meant the city would pay extra or the tax payer via taxes and the fee. Mr. Repp advised this is not a part of taxes, but rather the cost is covered through a fee for the service on the utility bill and would be incorporated into the trash budget. He further advised that if an adjustment is necessary to cover the cost, it would increase the fee. That being the case, Ms. Golden requested they hold Howell to his contract rather than make an adjustment.
V. Adjournment:
With no further discussion, the meeting adjourned at 7:35 p.m.
Respectfully submitted,
City Clerk