Council postpones marina contract approval

May 09, 2008 02:50 pm

— CLINTON — During a special council meeting on Thursday afternoon at City Hall, the Clinton City Council postponed a vote to approve the marina operation contract with Skipper Marine Development due to concerns over contract terminology.
After Third Ward Councilman Darrell Smith read the resolution to approve the contract, and a second was made by Fourth Ward Councilman Paul Gassman, Mayor Rodger Holm asked City Attorney Paul Walter if the contract verbiage meets his recommendation. Walter said concerns about the contract were brought to his attention by City Finance Director Deb Neels, specifically clauses regarding the council’s ability to oversee expenditures of city funds. He remarked that the city’s auditing firm expressed the same concerns, but said he had not had a chance to research the matter, to determine whether the concerns are serious or something the city could “work with.” Walter recommended the council not take action on the resolution until the issues could be resolved.
City Administrator Gary Boden said that given current weather conditions, boats would not be going in the water this weekend. He said that perhaps the issues with oversight need to be reviewed specifically, but he was not convinced that the matter is outside the purview of the city’s ability for oversight. He said the council could carry the resolution over until next Tuesday’s council meeting.
Boden said the issue is that the contract gives SMD the ability to withdraw funds from a city bank account for the purposes of paying expenditures, much like any business would do. He said the council is guaranteed budget and revenue oversight in the contract, but the bottom line question is whether expenses need to go through the normal city oversight process or is part of the managerial aspect of the contract and the responsibility of the operating manager of the firm. Boden said that from his perspective, the city has plenty of oversight, but clarifying could be done within the next few days.
A motion to postpone the agenda item until Tuesday was unanimously approved.
Regarding a resolution setting the 2008 summer dockage rates for the Clinton Marina, At-Large Councilman Mark Vulich expressed a concern about the rates being too high after local boaters contacted him. He said some citizens feel the rates are high for area residents. Boden commented that significant upgrades have been made to the marina and with the improvements, the marina would have a higher cost and a higher market.
He said the rates were set after comparing marinas with similar services available and remarked that dockage prices for the slips north of the gate do not reflect improvements, but he anticipates an increase in those rates next year.
At-Large Councilman Ron Mallicoat stated that from what he could see, the slips south of the gate doubled in price. Boden replied that the marina would be offering a lot more services and parking, therefore providing a better product to the public because of the quality, condition and location of the docks. He noted that the rates are 10 percent less than a comparable marina in the Quad Cities and 20 to 25 percent less than a comparable marina in Dubuque.
The council approved the resolution setting the 2008 Clinton Marina dockage rates by a vote of four to two with Vulich and Mallicoat voting against the measure. Second Ward Councilman Mike Kearney was not present for the vote.
The council also approved the plans and specifications for the South 14th Street Paving Project and a resolution ordering the construction, setting a public hearing and directing advertisement of bids for the project. Mallicoat questioned the approval of the plans, as the council had not received a copy of the plans for review. Boden said direction was given at a Committee of the Whole meeting to go ahead with the project as soon as possible. He explained that the project will consist of the complete reconstruction of Bluff Road to the creek south of 13th Avenue South, because the base of the roadway is “not adequate.” He said that if the city simply put down an overlay, the project would have to be redone in five to seven years. Boden advised the project is estimated to cost $615,000.