JANUARY 7, 2008
CITY COUNCIL MEETING
1705 MAIN STREET
DAPHNE, AL
6:30 P.M.

COUNCIL MEMBERS PRESENT: Bailey Yelding; Cathy Barnette; John Lake arrived at 6:30 p.m.; Greg Burnam; Ron Scott; August Palumbo.

Also present: Mayor Small; David Cohen, City Clerk; Rebecca Hayes, Assistant City Clerk; Jay Ross, City Attorney, Bill Eady, Planning Department Director; Kim Briley, Finance Director; James White, Fire Chief; David McKelroy, Recreation Director; Tonja Young, Library Director; Sharon Cureton, Human Resource Director; Richard Merchant, Building Official; Sandra Morse, Civic Center Director; Melvin McCarley, Interim Public Works Director; Lt. Kenny Hempfleng, Police Dept. Jane Robbins; Mr. Ron Allen, Library Board; Scott Hutchinson, City Engineer; Judge Jody Bishop; Starke Irvine, DRA; Willie Robison, BZA;

Absent: David Carpenter, Police Chief.

MOU / Baldwin county and City of Daphne / I-10 Service Road

Mr. Ross handed out the agreement to Council, and stated that the document that they have in front of them is what has been forwarded to the Baldwin County Attorney, Scott Barnett, and he plans to present it to tomorrow morning to the County Commission work session, and any comments that may arise out of that can be tweaked, and, presumably, then will be presented a week from Tuesday to the Baldwin County Commission at their regular meeting for consideration and approval.

The document before Council has been review by Mr. Barnett and Richard Davis, who represents Mr. Cox.

Mr. Ross said that when the County and ALDOT are ready, the county will give the city notification that they are ready to go to bid, and the city will have to formally commit to the money when four ninths (4/9) of the project cost are concluded and paid for, less any retainage, that is the service road and Woodrow Lane. Then the city’s obligation up to $1 million would kick in. They would ask for payments in multiples of 20% certified by the County Engineer, or project engineer, that that amount of work has been done. The city would pay money in as much as five (5) installments.

If the total cost of the project is less that $9 million, then the city would receive a pro-rata reduction in what the city has to pay by 11.11%. So, for example, if the total cost of the project were $8 million the city’s contribution would be reduced by 11.11% or about $111,000.

Mr. Ross said that they have other people making contributions to it. He said that they have to get things commenced by July 1, 2010, and if it is not started by that time the city’s obligation would cease, and if it starts on or before that date then the city will have an obligation based on percentage of completion. He said that the most important point is that Daphne has no obligation unless or until four ninths has been completed, so it is not like the city’s money gets kicked in first.

Councilman Yelding asked when are the intervals?

Mr. Ross stated that the intervals are based upon percentage of completion. The intervals have not been specifically written, but it is supposed to be percentage of completion from the four ninths (4/9) to the nine ninths (9/9), so when five ninths (5/9) have been completed then the city owes 20%, which would be around $200,000 then six ninths (6/9), seven ninths (7/9) etc. The intervals depend on how fast they complete the project.

MOTION BY Councilman Scott to authorize the Mayor and Council President to enter into a Memorandum of Understanding with Baldwin County for the I-10 Service Road.

Seconded by Councilman Lake.

Councilwoman Barnette amended agreement Section 3 “b” to read “if the aggregate cost does not exceed $9 million” instead of “if Woodrow Lane is $1.5 million”.

Councilman Scott agreed to the amendment.

Councilman Lake agreed with the amendment.

AYE ALL IN FAVOR NAY NONE OPPOSED

MOTION CARRIED