JULY 20, 2006

ATTENDANCE: Douglas Sutton, Chair; Gwen Briggs; William Krummel; Nicholas Kydes; Fred Bondi (8:30)

STAFF: Alan Lo, Building and Facilities Manager

OTHERS: Mike Sgobbo, Grubb & Ellis; Tim Callahan, Health Dept.; Hal Alvord, DPW; John Hawley, Gilbane; Ralph Valenzisi, BOE Dir. of Technology.

I. ROLL CALL

Mr. Sutton opened the meeting at 8:07 p.m. and then called the roll.

Mr. Lo acknowledged Mr. Mike Sgobbo of Grubb & Ellis, who was in attendance at the meeting, and thanked Mr. Sgobbo for his years of excellent work for the City in the maintenance of the City-owned properties under his management. Mr. Lo explained that the Interview Committee is recommending another facilities maintenance company and Grubb & Ellis would no longer be the City’s facilities management company in the future. Mr. Krummel echoed Mr. Lo’s remarks about Mr. Sgobbo and said he would be sorry to see Mr. Sgobbo leave.

Mr. Sgobbo commented that he had enjoyed his nine years of working with the City and was proud of everything his company had accomplished during this time. In response to a question from Mr. Krummel, Mr. Sgobbo stated that he would be taking on a new position in Hartford.

The Committee gave Mr. Sgobbo a round of applause in recognition of his job performance and wished him well in his new position.

II. MINUTES OF PREVIOUS MEETING(S)

June 21, 2006.

** MR. KYDES MOTIONED TO ACCEPT THE MINUTES OF THE JUNE 21, 2006 MEETING AS PRESENTED.
** MOTION PASSED WITH TWO ABSTENTIONS (MS. BRIGGS, MR. KRUMMEL).

I11. OLD BUSINESS

A. Cablevision – Parking lot lease extension

Technical correction of Common Council action of June 27, 2006, Item VII.E.2. The action incorrectly stated the contract period “…..(beginning July 1, 2006 to June 20, 2011)” and the amended action shall read “…..(beginning August 1, 2006 to July 31, 2011)”:
“Authorize the Mayor, Richard A. Moccia, to execute an amendment to Cablevision Systems Corporation’s lease for the parking lot located across the street from Cablevision on Cross Street, for a period of five years (beginning August 1, 2006 to July 31, 2011). Terms for the lease amendment shall be as stipulated in the current lease agreement.”

Mr. Lo stated that this item was on the agenda because of an error in the description of the contract period.

** MR. SUTTON MOTIONED TO APPROVE THE TECHNICAL CORRECTION
AND AUTHORIZE THE MAYOR, RICHARD A. MOCCIA, TO EXECUTE THE AMENDMENT.
** MOTION PASSED UNANIMOUSLY.

IV. NEW BUSINESS

A. Health Department

1. Review recommendation to retain engineering firm for HVAC design at the Health Department building and refer recommendation to the Common Council:
a. “Authorize the Mayor, Richard A. Moccia, to execute an agreement with Salamone & Associates, PC to provide comprehensive design services for a new HVAC system for the Health Department building for a total amount not to exceed $14,700. Acct. #09042012 5777 C0299.
b. Authorize the Health Director to approve reimbursable expenses/additional services for a total not to exceed $1,470.”

** MR. KRUMMEL MOVED THE ITEM.

Mr. Callahan gave a brief description of the HVAC system for the Committee members. He
stated that he, Mr. Gerald Foley and Mr. Sgobbo had reviewed bids and interviewed bidders and
that their unanimous recommendation was to issue a contract to Salamone & Associates for this
project.

** MOTION PASSED UNANIMOUSLY.

B. NFCC Referral

1. Review request from Board of Education to purchase computers and to refer the following to the Common Council for approval:
“Authorize the Purchasing Agent to issue Purchase Order(s) to Dell Computer Corporation for the purchase of computers, printer and laptop labs for Norwalk Public Schools for a total not to exceed $394,525.21 (amount may be adjusted pending final pricing from Dell). Account #09075010 5777 C0112.”

** MR. SUTTON MOVED THE ITEM.

Mr. Ralph Valenzisi gave a brief commentary as to which schools would be receiving the computers. He stated that the labs would contain a total of 28 machines per room plus the teacher station, making the total request for 145 machines for the academic computer labs to replace the current ones in Math, Science, Social Studies, Language Arts and World Languages. The purchases have been outlined in the 2006-07 Capital Expenditures. 30 desktop replacements are recommended for teachers throughout the district, and 57 desktops are needed for the Library automation project.

The Committee also reviewed the costs for the units and supported Mr. Valenzisi’s efforts in obtaining better pricing. The Committee recognized that based on the updated prices for various units, Mr. Valenzisi will work with Mr. Lo to amend the action to be forwarded to the Common Council for action.

** MOTION PASSED UNANIMOUSLY.

4. Review the following request for the Brien McMahon Improvement Project and refer the following to the Common Council for approval:
“Authorize the Purchasing Agent to issue a Purchase Order to Dell Computer Corporation for the purchase of computers at the Center for Global Studies at Brien McMahon High School for a total not to exceed $16,006.14. Acct. #0902/03/04 5010 5777 C0237.”

** MS. BRIGGS MOVED THE ITEM.

Mr. Valenzisi again gave commentary on the need for these machines at the Center for Global Studies. Mr. Hawley of Gilbane Construction remarked on the sophistication of the labs that would be installed. Mr. Valenzisi said that the Norwalk Public Schools IT Dept. solicited the quotes to assure compatibility with their requirements and conformation with the approved specifications for the Center for Global Studies. The NPS IT Dept. is also currently soliciting quotes for the balance of the CGS technology equipment, which will come before the NFCC and Council at a later date.

** MOTION PASSED UNANIMOUSLY.

2. Review the following request for the Brien McMahon Improvement Project and
refer the following to the Common Council for approval:
“Authorize the Mayor, Richard A. Moccia, to execute an amendment to Special Testing Laboratories contract for additional materials testing and inspections at the Brien McMahon High School/Center for Global Studies project in the amount of $5,000.00. Acct. #0902/03/04 5010 5777 C0237.”

** MR. BONDI MOVED THE ITEM.

Mr. Hawley updated the Committee about the reasons for the request for additional materials testing and inspections because the entire budget was not initially authorized as a means of monitoring and controlling expenses against this account. It is now necessary to increase the contract amount to cover the final costs of materials testing for the project.

** MOTION PASSED UNANIMOUSLY.

3. Review the following request for the Brien McMahon Improvement Project and refer the following to the Common Council for approval:
“Authorize the Mayor, Richard A. Moccia, to execute an amendment to Brooks Laboratories contract for additional abatement monitoring and air quality testing at Brien McMahon High School/Center for Global Studies project in the amount of $59,535.00. Acct. #0902/03/04 5010 5777 C0237.”

** MR. KRUMMEL MOVED THE ITEM.

Mr. Hawley again updated the Committee on the amendment to the Brooks Laboratories contract. Brooks Laboratories was retained by the City for the hazardous materials testing and abatement design and monitoring at BMHS. A purchase order was issued in July 2004 for this, but as previously noted, Brooks Laboratories’ services expanded due to the additional amount of asbestos discovered in the building. Brooks was also retained to provide air quality monitoring and additional monitoring and testing when the State Dept. of Public Health required more stringent requirements for asbestos abatement while school was in session. In order to accomplish this, Brooks’ contract needs to be increased.

** MOTION PASSED UNANIMOUSLY.

5. Review request from the Finance Department for a Bond Reimbursement Resolution for the Nathaniel Ely Renovation Project and refer the following to the Common Council for action:
“RESOLVED, to adopt the Bond Reimbursement Resolution for the Nathaniel Ely Center Improvement Project.”

** MR. KYDES MOVED THE ITEM.

Mr. Lo updated the Committee on the Bond Reimbursement Resolution. Due to delays on some of the other projects in the same round of funding, the financing transaction for the Nathaniel Ely project will not be completed until late September or early October. The City is proceeding with the bid opening in the summer and hopes to award a contract in August. In order to protect the City’s right to obtain all expected reimbursements from the CHEFA financing, the resolution needs to be in place prior to the awarding of the construction contract.

** MOTION PASSED UNANIMOUSLY.

6. Review recommendation for Construction Manager (CM) and refer the following to the Common Council for action:
“Authorize the Mayor, Richard A. Moccia, to execute an agreement with Newfield Construction, Inc. as the Construction Manager (CM) for the Nathan Hale and Ponus Ridge Middle School Improvement projects. Upon receipt of trade contractors’ bids, a Guaranteed Maximum Price (GMP) will be established. Terms of the agreement shall include the following:

Nathan Hale Middle School:
Preconstruction Phase Services (including
reimbursement allowance) $27,500.00
CM Fees (% of the cost of the work) 2.4%
Estimated CM General Conditions Fees
(to be finalized at the time of GMP) $448,203.00
CM Contingency (% of the cost of the work) 5.0%
Acct. # 09045010-5777-B0316

Ponus Ridge Middle School:
Preconstruction Phase Services (including
reimbursement allowance) $27,500.00
CM Fees (% of the cost of the work) 2.4%
Estimated CM General Conditions Fees
(to be finalized at the time of GMP) $447,740.00
CM Contingency (% of the cost of the work) 5.0%
Acct. # 09045010-5777-B0317.”

** MR. BONDI MOVED THE ITEM.

Mr. Hawley updated the background on the Ponus Ridge and Nathan Hale renovations. He stated that the schematic designs would be delivered in August and that they need to hire the construction manager now so that the work can move forward once the CM has been determined.

** MOTION PASSED UNANIMOUSLY.

7. Update on the Norwalk High School Improvement Project

Mr. Hawley gave a brief update of the Norwalk High School Improvement Project. He indicated that the rebid of selected the trade contractor bid packages came in within CM cost estimates. There are no additional overruns beyond what was identified in previous approval.

C. Building Management – Facilities Management Services contract

1. Review recommendation for new facilities management company and refer the following to the Common Council for approval:
“Authorize the Mayor, Richard A. Moccia, to execute an agreement with Fusco Management Company, LLC to provide facilities management services for a period of 4 years (beginning September 1, 2006 to August 31, 2010) with two 2-year extension options. Total annual payment shall be $325,500.00 for the first year with 5% increases for subsequent years. Funds are available in various Building Management Operating Budget accounts.”

** MR. BONDI MOVED THE ITEM.

Mr. Lo stated that the review committee consisted of himself, Mr. Foley, Mr. Alvord, Mr. Ireland, Mr. Hempstead and Mr. Hamilton. He said that Fusco Management’s bid was priced lower than any other company including Grubb & Ellis, the City’s current facilities management company; and they had the best presentation. The company is local in Connecticut and regional on the east coast.

Mr. Alvord stated that ORL and Fusco were at the same level, and Grubb & Ellis came in at the bottom. He said there was no corporate commitment behind Mr. Sgobbo. He said, however, that in the nine years that he has been here, the City has been very pleased with Mr. Sgobbo’s performance.

Mr. Alvord said that Mr. Foley had been asked to call five references for Fusco and five for OR&L, and the references rated Fusco much higher between both companies. A brief discussion followed.

** MOTION PASSED UNANIMOUSLY.

V. MISCELLANEOUS/DISCUSSION ITEMS

Mr. Lo said that a few months ago Gerald Foley presented some information to the Committee regarding electricity deregulation and hiring of a consultant to assist the City in locking in rates for purchase of energy. At that point, Norwalk and New Haven were contemplating getting together to discuss locking in rates, whether they should lock in rates or when to do so, or whether they should only lock in rates for peak usage times. An outside consultant was hired at a cost of $10,000, of which the City paid $3,700 and the Board of Ed paid $6,000.

Mr. Lo said approximately a month ago Mr. Foley was contacted to begin the negotiating process, with the reasoning being that regulation was coming in January 2007 and the market is going to be unstable. The outside consultant said that they don’t need to lock in anything, but they do need to begin reviewing their needs. The way it works is that each of the utility companies’ generators have contracts to be signed, and the rates change daily. When the City reaches the rate that they want to get, they only have a few hours to lock in the rate. The rates can be locked in for a year, two years, or whatever time period they want to lock in for, usually not more the five years.

Mr. Lo explained that what they want is to have the blanket authorization in place so that if and when a desired rate comes up, the Mayor or the Finance Director has the ability to get the financial information and execute those agreements. He said he didn’t have a full presentation but did bring backup documents for the Committee members.

Mr. Bondi asked why couldn’t they give this authorization tonight. Mr. Lo said that he wasn’t prepared to give a presentation on it this evening, but the Committee could hold a special meeting within the next week to two weeks in order for him to give the presentation and for the Committee to decide what to do.

Mr. Bondi felt that no presentation was needed, stating that this was an open and shut situation, as the City is relying on the consultants to make the decision and all they are doing is authorizing the Mayor or the Finance Director to move ahead. Mr. Bondi felt they could suspend the rules to add this item to the agenda tonight so it will be on the Council’s agenda at the next meeting.

** MR. BONDI MOTIONED TO SUSPEND THE RULES TO ADD THIS ITEM TO THE MEETING AGENDA.

Mr. Krummel said the Committee is going to need more information in order to make their decision. Mr. Bondi disputed this. Mr. Kydes said the issue is not whether they are going to lock in a rate or not, the issue is whether they are going to give the Mayor and/or the Finance Director the authority to lock in the rate. He said if this is the only issue, he agrees with Mr. Bondi and that this should be on the agenda for the next Council meeting to be voted on.

Mr. Sutton and Mr. Krummel both felt that the issue needed to be discussed more fully and that Mr. Lo’s presentation was needed before the Committee could vote on the issue. Mr. Sutton said that some people have concerns about giving away authority with a blanket authorization. Mr. Krummel felt that there should be a time limit of one week or two weeks for the authority to be undertaken. Mr. Bondi said that this was not possible because they had to rely on the market rates, which fluctuate constantly. An exact rate would be difficult, if not impossible, to pin down. Mr. Lo agreed.

Mr. Sutton said that other Council members will need more information before voting on the issue, at least as much information as the Committee has already heard. Mr. Bondi disagreed, stating that whatever questions the Council has can be asked when the issue comes up for the vote during the Council meeting.

Mr. Lo said they could schedule a Special Meeting on Tuesday night prior to the Council meeting. Mr. Sutton said he would like the consultant to appear during the Council meeting to answer questions. Mr. Lo said that Mr. Foley or Mr. Hamilton could answer any questions the Council might have, or the Committee might have.

** MR. BONDI MOTIONED TO SUSPEND THE RULES TO ADD TO THE AGENDA GIVING THE AUTHORITY TO THE MAYOR AND THE FINANCE DIRECTOR TO EXECUTE THE CONTRACT FOR PURCHASE OF ELECTRICAL SERVICES AND THAT THIS ITEM BE MOVED TO THE COUNCIL FLOOR.
** MOTION PASSES WITH ONE ABSTENTION (MR. KRUMMEL).

Mr. Krummel said a time still needs to be put on the authorization. He said they were not giving open blanket approval or giving away the Council’s authority. He suggested a period of one month would be sufficient. Mr. Kydes disputed Mr. Krummel’s comment about giving away the Council’s authority. Mr. Krummel said if they make it open ended, it would be giving away the Council’s authority.

Mr. Kydes said he did not agree, since they don’t know when the agreement will be made, when the market rate will be favorable to the City. With all these variables, for the Committee to say that they could only have authorization for the month of August, for example, when the month of August might be the highest rate they would pay, would be ridiculous. He said the Council only meets twice a month, and on both meeting days it was a high rate, and on a day they did not meet it was a low rate. He said it was an amendment to the motion that doesn’t make sense, because the contract has an unknown date.

Discussion followed.

** MR. BONDI MOTIONED TO AUTHORIZE THE MAYOR AND/OR THE FINANCE DIRECTOR TO EXECUTE A CONTRACT FOR PURCHASE OF ELECTRICAL SERVICES WITH THE MOST FAVORABLE RATE.
** MOTION DOES NOT PASS, WITH THREE OPPOSED (MR. SUTTON; MR. KRUMMEL AND MS. BRIGGS) AND TWO IN FAVOR (MR. BONDI, MR. KYDES).

ADJOURNMENT

** MR. SUTTON MOTIONED TO ADJOURN THE MEETING.
** MOTION PASSED UNANIMOUSLY.

The meeting was adjourned at 9:50 p.m.

Respectfully submitted,

Linda J. Hayes
Telesco Secretarial Services