The Southeast Arkansas Regional Intermodal Authority Board met September 21, 2011 in the BCIDC Conference Room. The board approved the minutes of the August 17, 2011 meeting and went over the financial statement with accountant Bob Milton.
Bill Ruck of Garver Engineers updated the board on the status of construction projects for the Intermodal site on Highway 278. Ruck reported that the contract to provide grading and gravel for an embankment and railroad track siding should begin soon. The contractor is T & T Construction, and the contract is for over $600,000. A federal grant will cover 80% of the cost. Warren, Monticello, and Bradley and Drew Counties are requested to cover the 20%.
There is concern about the availability of the authority's cash flow and the capabilities of the local match being adequately provided. Bradley County is discussing the ability of the county to provide its portion.
John Gill, an attorney from Little Rock working for the Authority, discussed at length the options the Authority has to raise money on future private development of the Intermodal Park. He stated that under a contract, between the Southeast Intermodal Authority and the City of Monticello, that Monticello will provide water and sewer service to the park. All water and sewer lines and facilities will be constructed by the Authority and then turned over to Monticello to operate and service. All water and sewer revenue will be paid to Monticello. The Authority has the option of charging impact fees or a surcharge on water and sewer utility service to generate funds for the Intermodal Park and to help with park operations and expenses. The decision to charge fees or a surcharge is totally up to the Intermodal Board. After a good deal of discussion, the board voted to include no fees or surcharge on any water-sewer utility service in the park and to move ahead with the water sewer agreement with the City of Monticello.
Authority member Sandra Brown of Warren abstained from voting. She stated that a modest surcharge of $50 or $100 per month should be included.
There was a lengthy discussion relating to a request by Township Builders, Inc., the contractor for the storm drainage system for the Intermodal Park site. A decision had been made to enlarge the original drainage design due to concerns about the capacity to handle the volume of water runoff. A dispute exists between Township Builders, Inc. and the consulting engineer, Garver. Township believes they are owed an additional $43,620.00 based upon the change order as signed. The engineer says that amount is not owed and is not eligible for grant funding. There was a sometimes tense discussion among the parties, and no settlement was reached.
Intermodal Chairman John Lipton indicated that the Authority did not know about the need for additional funding. It was pointed out that the change order had been signed by Lipton on behalf of the Authority Board. There seemed to be disagreement among the engineer, the Authority, and the contractor.
It should be noted the contract is between the Intermodal Authority and the contractor, Township Builders, Inc. The engineer does approve the contracts and change orders.
The authority board requested attorney Gill to review the contract and change order and asked the contractor to meet with the engineer and highway department, who is the grant provider, to discuss the possibility of approving additional funds if necessary. No final decisions were made.
Lipton stated that Governor Beebe is recommending $300,000 of Delta Regional Authority funding for the Intermodal Authority to assist with matching funds for federal grants. This would help the local cities and counties and reduce to some degree, the money they are being asked to contribute.
Bill Ruck of Garver Engineers updated the board on the status of construction projects for the Intermodal site on Highway 278. Ruck reported that the contract to provide grading and gravel for an embankment and railroad track siding should begin soon. The contractor is T & T Construction, and the contract is for over $600,000. A federal grant will cover 80% of the cost. Warren, Monticello, and Bradley and Drew Counties are requested to cover the 20%.
There is concern about the availability of the authority's cash flow and the capabilities of the local match being adequately provided. Bradley County is discussing the ability of the county to provide its portion.
John Gill, an attorney from Little Rock working for the Authority, discussed at length the options the Authority has to raise money on future private development of the Intermodal Park. He stated that under a contract, between the Southeast Intermodal Authority and the City of Monticello, that Monticello will provide water and sewer service to the park. All water and sewer lines and facilities will be constructed by the Authority and then turned over to Monticello to operate and service. All water and sewer revenue will be paid to Monticello. The Authority has the option of charging impact fees or a surcharge on water and sewer utility service to generate funds for the Intermodal Park and to help with park operations and expenses. The decision to charge fees or a surcharge is totally up to the Intermodal Board. After a good deal of discussion, the board voted to include no fees or surcharge on any water-sewer utility service in the park and to move ahead with the water sewer agreement with the City of Monticello.
Authority member Sandra Brown of Warren abstained from voting. She stated that a modest surcharge of $50 or $100 per month should be included.
There was a lengthy discussion relating to a request by Township Builders, Inc., the contractor for the storm drainage system for the Intermodal Park site. A decision had been made to enlarge the original drainage design due to concerns about the capacity to handle the volume of water runoff. A dispute exists between Township Builders, Inc. and the consulting engineer, Garver. Township believes they are owed an additional $43,620.00 based upon the change order as signed. The engineer says that amount is not owed and is not eligible for grant funding. There was a sometimes tense discussion among the parties, and no settlement was reached.
Intermodal Chairman John Lipton indicated that the Authority did not know about the need for additional funding. It was pointed out that the change order had been signed by Lipton on behalf of the Authority Board. There seemed to be disagreement among the engineer, the Authority, and the contractor.
It should be noted the contract is between the Intermodal Authority and the contractor, Township Builders, Inc. The engineer does approve the contracts and change orders.
The authority board requested attorney Gill to review the contract and change order and asked the contractor to meet with the engineer and highway department, who is the grant provider, to discuss the possibility of approving additional funds if necessary. No final decisions were made.
Lipton stated that Governor Beebe is recommending $300,000 of Delta Regional Authority funding for the Intermodal Authority to assist with matching funds for federal grants. This would help the local cities and counties and reduce to some degree, the money they are being asked to contribute.
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