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HomeMy Public PortalAboutResolution 01-09 Construction Northwest InRESOLUTION NO. 01-09 A RESOLUTION OF THE CITY OF MCCALL, VALLEY COUNTY, IDAHO, APPROVING AN ADDENDUM TO THAT CERTAIN AGREEMENT APPROVED FEBRUARY, 1995, BETWEEN THE CITY OF MCCALL AND CONSTRUCTION NORTHWEST, INC. FOR ADDITIONAL CONSTRUCTION SERVICES FOR THE CONSTRUCTION OF PHASE II OF THE MCALL WATER TREATMENT PLANT; PROVIDING FOR ADDITIONAL SUPPLEMENTAL CONDITIONS TO SUCH CONTRACT; PROVIDING A PRICE FOR SUCH SERVICES; PROVIDING FOR OTHER MATTERS; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of McCall is subject to the regulations of the Clean Water Act, and in particular, the Surface Water Treatment Rule; and WHEREAS, the City of McCall retained James M. Montgomery Engineering, Inc. now Montgomery Watson Americas ("Montgomery") as its expert and professional advisor in water treatment to select a method of compliance with the Surface Water Treatment Rule, and to provide the City of McCall with a Water System Master Plan to establish a plan and budget for achieving compliance with the Clean Water Act and the Surface Water Treatment Rule; and WHEREAS, Montgomery prepared a Water System Master Plan - 1993 Revision, and presented its cost estimate and representation to the City of McCall that a water treatment plant which would achieve compliance with the Surface Water Treatment Rule would have a maximum possible cost of 3.3 Million Dollars; and WHEREAS, the City of McCall, relying on Montgomery's cost estimate and representation, adopted the Water Master Plan - 1993 Revision, and adopted an Ordinance calling for a bond election to raise the necessary funds required for the construction of the water treatment plant based upon Montgomery's cost estimate and representation; and WHEREAS, the Citizens of the City of McCall passed the bond, and Montgomery was paid approximately $850,000 for professional engineering services for the completion of the design of the water treatment plant for purposes of bidding; and WHEREAS, the water treatment plant project was put out for bids, competitive bids were received, and Contractor's Northwest, Inc. ("CNI") was the low bidder at a price of $6,752,000, or more than double the amount of Montgomery's estimate; and WHEREAS, based upon Montgomery's Master Plan advice and representations, the City of McCall had entered into a Voluntary Consent Order to build the water treatment plant, and were under Order from the Idaho Department of Environmental Quality to build the water treatment plant; and WHEREAS, based on the consent order, the City awarded the construction of Phase I of the water treatment plant to CNI as the lowest responsible bidder and on August 24, 1995 entered into that certain Contract for the Construction of the McCall Water Treatment Plant Project (the "Contract"); and Resolution No. 01-09 Page 1 of 3 WHEREAS, based on Montgomery's advice, the City of McCall split the water treatment plant construction into phases and, as recommended by Montgomery, entered into a change order under the Contract for the construction of Phase I of the water treatment plant; and WHEREAS, CNI undertook and completed the construction of Phase I of the water treatment plant and the plant became functional in 1997; and WHEREAS, the City of McCall, on the advice of Montgomery, entered into a second Voluntary Consent Order requiring completion of Phase II of the water treatment plant by June, 2002; and WHEREAS, The City of McCall formed a Citizen's Advisory Committee to study alternatives for the City's compliance with the rules and regulations, including the study of in -line gravity filtration, membrane filtration, and groundwater resources; and WHEREAS, the Committee recommended and on April 24, 2000 the City did in fact put out a request for proposals for an engineer to provide services for a cost-effective analysis of alternatives, but the Committee received no responses to such request; and WHEREAS, thereafter the Committee recommended and on June 13, 2000 the City did in fact put out a request for proposals to persons and firms with expertise in design -build engineering and construction to provide the City with a guaranteed maximum price proposal for the construction of a solution which would achieve compliance with the applicable regulations, but the City did not receive any qualified proposals; and WHEREAS, on August 24, 2000, in Resolution 00-15, the City approved the filing of a petition in Fourth District Court in Valley County for judicial confirmation of a proposed loan agreement for the funds to complete Phase II of the water treatment plant; and WHEREAS, on March 23, 2001, the Honorable George D. Carey issued Findings of Fact and Conclusions of Law and a Judgment holding that the expenditure of funds for the construction of Phase II of the water treatment plant constitutes an ordinary and necessary expense and that the execution of those certain loan documents, Idaho Department of Environmental Quality Loan Offer, Acceptance of Contracts for Drinking Water Treatment and Construction, and Loan Agreement and Trust Indenture will not violate Article 8, Section 3 of the Idaho Constitution; and WHEREAS, the City of McCall having executed such documents and such documents having been approved by the State of Idaho; NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND COUNCIL OF THE CITY OF MCCALL, VALLEY COUNTY, IDAHO as follows: Section 1: The City of McCall hereby authorizes the construction of Phase II of the McCall water treatment plant by CNI pursuant to an Addendum to the Agreement as such Addendum has been negotiated between the City Manager and CNI, and the Council also authorizes the Mayor to sign such Addendum when presented to the Mayor in final form. Resolution No. 01-09 Page 2of3 Section 2: Pursuant to such Addendum, CNI has agreed to provide such services for a total amount of $6,498,453, and that such amount can only be exceeded by written change order approved by the City. Section 3: The City by contract dated May 18, 2001 has retained the services of Donohue and Associates ("Consultants") to perform consulting and engineering services on Phase II of the project. The Consultants shall prepare final specifications for the completion of Phase II and such specifications shall be the basis for the scope of work to be performed by CNI under the Addendum to the Contract. Section 4: Upon the passage of this Resolution, the City authorizes CNI to begin mobilization for the construction of Phase II and authorizes CNI to enter onto the premises (the grounds and structures) of the water treatment plant for any purpose which furthers the construction of Phase II as shall be specifically enumerated in the Addendum; and provided further, that the City Manager shall have the authority to issue a notice to proceed immediately after the Mayor has signed the Addendum. Section 5: Nothing in this Resolution nor in the Addendum to the Contract shall alter or amend the responsibilities of Montgomery as the Engineer under the Contract, including, but not limited to, Montgomery's responsibilities for the design of the water treatment plant as such design was provided to the City and paid for as set forth above. Section 6: This resolution shall take effect immediately upon its passage by the City Council of the City of McCall. Passed and approved this 24th day of May, 2001. CITY OF MCCALL Valley County, Idaho By QQ�^ Alan Muller, Mayor ATTEST: ()/(Ua,2i(cd,_J Cathleen A. Koch, City Clerk Resolution No. 01-09 Page 3 of 3