Citing unknown costs, New Kent supervisors put temporary halt on joining regional radio grid

Citing advice from county attorney Michele Gowdy over unknown costs and language in a written contract, New Kent supervisors have placed a temporary halt on joining an emergency regional radio grid project for at least 45 days.

Action taken at the Jan. 28 work session comes as no surprise since supervisors expressed concern after verbally agreeing to invest in the network during a September work session. However, contract negotiations with county staff, entities from Williamsburg-James City County, Gloucester County, York County, and Motorola representatives have forced New Kent leaders to freeze the process.

“There are a lot of risks and unknown costs in this contract,” said Gowdy. “These costs are on top of the original pricing we received.”

Board members’ eyebrows rose when Gowdy revealed the possibility of an additional $415,000 for the project in a worse-case scenario situation. District 3 supervisor James Burrell emphasized the need for a firm number for the project, as country representatives had penciled in $6.7 million to cover joining the grid.

“We need to have something more firm than this,” Burrell said, reflecting on the possibility of a need for additional money for the project. “I do not want to hurt the taxpayers in any way.”

Vice president of Motorola sales Jackie Watson addressed questions posed by board members, but also said joining the regional radio grid benefits all parties involved.

“We have offered you a complete system at $5.995 million,” said Watson. “While the unknowns were a concern, we have researched all areas of the risks and outlined them in a letter.”

That letter listed seven items of possible risks, with two being deemed medium risks. Those two items include loss of licensing for the towers and the possibility of losing a $400,000 grant targeted for the project.

Motorola’s $5.995 million figure does not factor in costs for the county to borrow money or for a contingency fund. Terry Hall, chief of Emergency Communications for York, Poquoson, and Williamsburg Regional Emergency Center, said the $415,000 figure was on the high side and that the risk dollars would not exceed 10 percent of the project total.

“In the jurisdictions that are involved, those costs range from 3-6 percent,” said Hall. “This is a pretty important project to us. This is not just a project; this is a life-saving system.”

Michael McGannon, a manager of wireless systems at Consulting Engineering Associates Inc., said the current contract is similar to what most wireless systems deal with.

“This is a normal risk for any wireless system,” McGannon commented. “Yes, there are risks, but we are challenged to find them and manage them.”

District 1 representative Thomas Evelyn, obviously distraught by the response, spoke about the possibility of needing a contingency fund, something that was expressed to him through earlier negotiations as not needed.

“Discussing with you, Mr. Hall, I’m trying to figure out how we went from not needing a contingency fund to having up to $800,000 for it,” Evelyn said. “My concern is that we have a project that is budgeted for $6.7 million and you all say the contract is hammered down.

“We have had some other attorneys look at the contract as well,” he continued. “This contract is not hammered down.”

Watson reiterated an amount of $170,000 would be deemed reasonable for possible costs relating to unknown factors and possible delays for the project. But the Motorola representative pleaded for the board to accept the contract so work could begin.

“This is a showcase for us in the Tidewater area,” she said. “We look forward to working with you and providing you with the best quality service.”

After receiving additional comments from county Sheriff F.W. “Wakie” Howard Jr., Fire Chief Rick Opett, Chief Deputy Joe McLaughlin Jr., and school superintendent David Myers, supervisors entered into closed session. Twenty minutes later, they emerged, with Evelyn posing a question to Hall.

“How long will it take to get a Memorandum of Understanding (MOU)?” Evelyn asked.

After Hall mentioned a 30-day turnaround for the draft, Evelyn entered his motion.

“I motion that we halt execution on the contract to have staff review it and also find alternatives for the county regarding emergency communications and report back to the board in 45 days,” the District 1 supervisor motioned.

The motion carried unanimously 5-0, much to the disappointment of representatives from other jurisdictions and Motorola representatives.

In other action during the work session, supervisors:

–Received an update on the status of Colonial Downs from interim president Stan Guidroz and attorney Jeff Geiger. At the Jan. 20 New Kent Planning Commission meeting, commission members favored an annual conditional use permit (CUP) for Colonial Downs to host events, other than horse racing, at the facility.

Geiger told supervisors that language requiring Colonial Downs to hold a current and valid pari-mutuel horse racing license from the Virginia Racing Commission removed from their CUP in order to host accessory events such as rodeos, runs, and the county fair. Motorized racing is not part of the CUP.

Updating supervisors on the current status of horse racing, Guidroz reiterated three bills are currently in the state’s General Assembly. The new president said one bill favors Colonial Downs having 15 days of high-quality racing, while another bill favors a horsemen’s group receiving all money from account wagering and gives a portion to the Virginia Racing Commission (VRC), who in turn would appropriate those funds. A third bill, deemed a “historic racing bill,” would bring funds to both Colonial Downs and the horsemen’s group, but Guidroz doesn’t expect that bill to be heard this year.

“We miss the income and the jobs,” commented District 5 representative Ray Davis.

–Unanimously approved allowing the process of obtaining a surface water withdrawal permit. Director of Public Utilities Larry Dame said due to future groundwater regulations, New Kent will need to find another source of consumable water, specifically for county subdivisions.

–Approved 4-1 the writing of a SAFER grant. The grant would allow the county to hire 12 additional firefighters to staff stations in the county.

–Approved unanimously to forward a Floodplain Ordinance for review to the Planning Commission.