 |
| Sandra Brown listens to reports given during the Intermodal Authority meeting. |
Mr. Milton told the Authority there is currently $2700.22 cash on hand. The Authority owes $56,226.09 including a payment of $50,000 to T&T Construction, $5025 to Garver Engineers, $1116.09 to the law firm of Gill Ragon Owen and $125.00 to the Milton Accounting Firm. He also stated over $700,000 of grant money is pending. Mr. Milton further explained he had not been reimbursing the cities and counties the grant funds and has been crediting the money to the cities and counties to cover their percentages of the contracts. This helps the local governments with cash flow. Each bill has to be paid 100% by the Authority which is then reimbursed 60 or 80% depending on the grant.
The board was informed that $300,000 has been borrowed from Commercial Bank to assist with the cash flow. It is unknown how much will be required during the life of the development work.
Garver Engineers submitted a written report on the various contracts under construction. Garver had a letter prepared for Chairman John Lipton's signature to request authorization for the Authority to negotiate a contract with Arkansas Midland Railroad to construct a rail line in the Authority Park. Mr. Lipton voiced concern that the letter left the Authority liable if funds are misspent. He felt the engineer should be responsible. Cliff McKinney of the Highway Department state the language in the letter was standard. The board asked to have their attorney review the letter.
Garver's lead engineer told the board that as a result of a postponement by the board to issue a notice to proceed on the water/sewer line work, the contractor who was awarded the job had informed him that the price of pipe has increased and the contract as originally approved needs to be amended to add $17,000. A discussion followed. Most members felt it was fair since the board due to lack of available funding had delayed the notice to proceed and that a new bid process would cost more money. Others voiced the idea that a bid had been accepted and the contract amount was set. It was noted that a previous contractor had asked for an increase due to a change order misunderstanding and was not paid. By a vote, the Authority agreed to add the $17,000 to the contract. Board member Freddie Mobley voted "no", and Drew County Judge Damon voiced his concern even though he had no vote.
A representative of the Southeast Arkansas Economic Development District updated the Authority on the EDA and Delta Regional Authority funding.
The board was informed that $300,000 has been borrowed from Commercial Bank to assist with the cash flow. It is unknown how much will be required during the life of the development work.
Garver Engineers submitted a written report on the various contracts under construction. Garver had a letter prepared for Chairman John Lipton's signature to request authorization for the Authority to negotiate a contract with Arkansas Midland Railroad to construct a rail line in the Authority Park. Mr. Lipton voiced concern that the letter left the Authority liable if funds are misspent. He felt the engineer should be responsible. Cliff McKinney of the Highway Department state the language in the letter was standard. The board asked to have their attorney review the letter.
Garver's lead engineer told the board that as a result of a postponement by the board to issue a notice to proceed on the water/sewer line work, the contractor who was awarded the job had informed him that the price of pipe has increased and the contract as originally approved needs to be amended to add $17,000. A discussion followed. Most members felt it was fair since the board due to lack of available funding had delayed the notice to proceed and that a new bid process would cost more money. Others voiced the idea that a bid had been accepted and the contract amount was set. It was noted that a previous contractor had asked for an increase due to a change order misunderstanding and was not paid. By a vote, the Authority agreed to add the $17,000 to the contract. Board member Freddie Mobley voted "no", and Drew County Judge Damon voiced his concern even though he had no vote.
A representative of the Southeast Arkansas Economic Development District updated the Authority on the EDA and Delta Regional Authority funding.
No comments:
Post a Comment