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