HomeMy Public PortalAboutResolution 00-13 Water Treatment PlantRESOLUTION 00-13
Whereas, the City of McCall is subject to the regulations of
the Safe Drinking 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 Safe Drinking
Water Act and the Surface Water Treatment Rule; and
Whereas, in June 1993, Montgomery prepared a Water System
Master Plan - 1993 Revision, and presented its cost estimate
and William Lynard's (Montgomery's Project Manager)
representation and assurance 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
Revenue 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 $1.1 Million for
professional engineering services directed toward 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. was the low bidder at a price of $6,752,500,
or more than double the amount of Montgomery's estimate; and
Whereas, as a direct and proximate result of Montgomery's
mis-estimate of construction costs, the City of McCall's
Master Plan was rendered unuseable; 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
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July 19, 2000
Resolution No. 00-13
Environmental Quality ("DEQ") to build the water treatment
plant; and
Whereas, following the bid opening, and based again upon
Montgomery's professional engineering advice and
recommendation, the water treatment plant construction
project was split into phases, a contract was entered into
for the construction of Phase I of the water treatment plant
by Contractor's Northwest, Inc., and Phase I of the plant
was completed in 1997; and
Whereas, the City of McCall initiated a lawsuit against
Montgomery in which Montgomery was found liable for having
breached its professional responsibility by negligently mis-
estimating the cost of the water treatment plant; and
Whereas, the City of McCall is advised that the total
project cost, including construction administration and
engineering for phase II of the water treatment plant, will
be approximately $8,000,000; 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 the City did in fact
put out a request for proposals to the engineering (water)
community for an engineer to provide services for a cost-
effective analysis of alternatives and the Committee
received no responses to said request; and
Whereas, thereafter the Committee recommended and the City
did in fact put out a request for proposals to the design -
build engineering -construction community to provide the City
with a guaranteed maximum price proposal for the
construction of a solution which would achieve compliance
with the applicable regulations and the City did not receive
any qualified proposals; and
Whereas, thereafter the Committee interviewed a qualified
and knowledgeable hydrologist to determine the practical
feasibility of locating groundwater resources within a
reasonable proximity to the City and the Committee, based
upon the interview and the history of City research on
groundwater resources, has concluded that groundwater is not
a cost-effective alternative solution for the City's
drinking water needs; and
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July 19, 2000
Resolution No. 00-13
Whereas, the Committee has formally and unanimously resolved
to recommend to the City Council and City Manager, to adopt
a resolution to undertake completion of the Phase II
construction of the water treatment plant in accord with the
Voluntary Consent Order entered into between the City and
the DEQ dated February 21, 1997; and
Whereas, the City Council has further studied the rates
applicable to City water users and determined that the
project financing should proceed in an expeditious manner
consistent with the goal of maintaining or reducing water
rates to the City water users;
Now Therefore, It Is Hereby RESOLVED:
That the City Manager of the City of McCall is hereby
authorized and directed to obtain compliance with the
Voluntary Consent Order between the City of McCall and the
Idaho Division of Environmental Quality; and
That the City Manager of the City of McCall is hereby
authorized and directed to take prudent and reasonable steps
to obtain appropriate funding for the completion of the
compliance effort and to enter into such contracts,
agreements, and other actions as is deemed necessary and
appropriate for obtaining funding for the construction of
such works as are necessary to achieve the required
compliance and approval of the appropriate regulatory
authorities; and
That, pursuant to Section 50-341J, the City has
authority to make the expenditures for design and
construction of a water treatment plant without further
competitive bidding, since, as described above, no
conforming proposals were received in response to either of
the requests for proposals put out by the City pursuant to
the competitive bidding requirements of Section 50-341,
Idaho Code; or,
That, alternatively, pursuant to Section 50-341, Idaho
Code, the City Manager has the authority to dispense with
bidding requirements if the City Manager, in his discretion,
makes a declaration that only a single source for goods and
services, required to achieve compliance with the health and
safety requirements of the Voluntary Consent Order, is
reasonably available and necessary based upon a
determination that competitive bidding is impractical,
disadvantageous, or unreasonable;
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July 19, 2000
Resolution No. 00-13
Therefore, the City Manager is hereby authorized to
enter into a contract as expeditiously as possible for the
construction of Phase II of the water treatment plant
construction project to achieve the required compliance with
the health and safety requirements of the Voluntary Consent
Order.
PASSED AND APPROVED by the City Council on July 19, 2000.
Allan Muller, Mayor
ATTEST:
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Cathleen Koch, City Clerk
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Resolution No. 00-13