HomeMy Public PortalAboutCouncil Minutes 1998 09/30CITY OF MC CALL
MINUTES
Special Meeting
McCall City Council
Wednesday - Sept 30, 1998
Table Of Contents
Call To Order And Roll Call 2
2
Clubhouse Hand Check. 2
Interim Sewer Contract 3
Adjournment 6
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MINUTES
Call To Order And Roll Call
The meeting was called to order by Mayor Eimers at 2:20 p.m. Ms. Arp, Mr. Colton, Mr.
Eimers, Mr. Muller and Mr. Venable answered the roll call. A quorum was present.
Members of the staff present were City Manager Brian Olson, City Attorney Dave Bieter
and City Clerk Cherry Woodbury.
Business
Clubhouse Hand Check
Mr. Olson explained the computation on the management contract percentage. He
stated that there may be one or two more checks to be paid for the season. He also
commented that there was currently no winter contract for the Clubhouse restaurant.
Ms. Arp moved to approve the hand check payment to the Clubhouse. Mr. Colton
seconded and the motion carried unanimously.
Interim Sewer Contract
Mr. Olson reported that from the 8 bidders who responded for the three year operating
contract, 3 had showed interest for this interim contract as well. Mr. Olson stated the
proposals had been reviewed and noted that the US Filter one would be hard to track
actual costs. Mr. Olson recommended Earth Tech based on several reasons including
the fact that they agreed to hire the current three workers. Mr. Olson also stated that
Earth Tech would provide detailed reports on the operations of the facility.
Discussion followed on repair costs, the Sewer District's proposal and letter, who would
be called if the a lift station alarm went off, the future of the current employees with the
District, the City operating the facility itself, etc. Mr. Olson stated that Bill Keating had
met with Ted Whiteman and the Sewer District has offered to allow the City to keep City
owned equipment at the District until the final contract has been awarded.
Mr. Colton perceived that this item effected everyone in the City and the public had not
been informed or given the opportunity to become involved in this issue. He stated that
his sense was that the Sewer District working relationship was friendly and he
wondered what had transpired to change that. Mr. Colton stated that comparing
Grangeville with one lift station to McCall with 17 lift stations was not realistic.
Mr. Colton stated he didn't know much about Earth Tech. Mr. Olson stated that Earth
Tech operated over 100 utilities. It is a national company with the regional office was in
Boise.
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Mr. Olson stated that this meeting was being held because the Sewer District proposal
had included terms that would cost the City a substantial amount of money.
Mr. Muller expressed strong support that the current employees would be transferred
and not loose their jobs and benefits. Mr. Olson felt assured this would happen and
that in some respects Earth Tech had better benefits. A plant manager would be
brought in by Earth Tech.
Discussion followed on the 90 day termination clause.
Ed Catlett with the Sewer District spoke on items he felt were not in the contract and
what the Sewer District provided, such as the pickup truck, minor equipment, repair
costs, etc. He stated if these items were taken out of the District proposal, the cost
would be around $19,000 for the interim period. Mr. Catlett stated that there had been
no negotiations to reconsider their proposal. He stated that the demobilization costs
included training of the alarm system, moving and converting it over to the new
company, and consulting expenses. Mr. Catlett pointed out that a lift station had been
in poor condition and the District repaired it in-house. He also stated that the alarm
system had been redesigned and rebuilt in-house which was cost effective.
Mr. Catlett brought up vacation and sick pay that he thought the City would be
responsible for. Mr. Eimers inquired why the City would be responsible since
personnel were employees of the Sewer District.
Bill Killen commented that it appeared that the RFP was a stripped down version from
what services the City was currently getting and would not be directly comparable. Mr.
Muller stated that information had been requested, but not seen, from the Sewer
District on the breakdown of costs. Mr. Muller stated he had asked Ted Whiteman to
provide the City with everything available. Mr. Eimers commented that the basic
package could be bid on and then tier on top any additional items and the cost of things
needed to do the job.
Bill Burke with the Sewer District stated he thought the benefits would be less and that
sick leave and medical insurance deductible already paid would be lost and that the
employees would not be able to stay in the State retirement fund. He also was
concerned that there was noting in writing that overtime for being on call 24 hours a
day would be paid. He stated he would like to see something in writing before the
Council agreed on a contract.
Mr. Eimers inquired about the Sewer District dismissing Lonnie King who had been a
City employee transferred over to the District. Mr. Catlett did verify that Mr. King was
going to be terminated by the District to reduce costs to the City. Mr. Catlett
commented that what happens to the Sewer District also effects the City because the
District has customers all around the City limits.
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Mr. Eimers asked to see a report from the District of what the costs were before and
after management of the sewer system by the District. He wanted to see
documentation that there really was a savings. Mr. Eimers also wanted to see a
comparison of actual expenditures against budgeted amounts for each month for
maintenance. He requested a breakdown showing material and labor costs for each
item. Also requested was the 1 & I evaluation and plan. Mr. Muller also confirmed he
would like to see such reports and had asked for them, but to date had not seen any.
Mr. Catlett stated that a comparison can't be made of what was and is today. He stated
that the District has personnel working on the system all the time. Mr. Keating stated
that one of the things the District is doing is cleaning 1/3 of the collection system that
Public Works was not able to do. Mr. Catlett stated that the sewer lines had never
been cleaned and the contract does not include this cleaning and manhole repair. Mr.
Eimers was reassured that maintenance and repair was already in the City's budget.
There was further discussion on cost documentation from the District and the
information the Value Engineering study showed. Mr. Colton reiterated that even
though the study was the only document available, it should not be taken as gospel.
Mr. Catlett stated that if the City wanted to reduce costs, why not turn the whole
operation over to the Sewer District.
Mr. Eimers inquired about the indemnification section of the Earth Tech contract
proposal. Dave Bieter suggested deleting section 1.11 as this was addressed in 1.15 to
the City's satisfaction.
Ms. Arp inquired about section 3.03 on changes in flow/loadings. Mr. Olson
commented that if there was a substantial increase there would be compensation. The
Sewer District had stated that 3 years were spent doing a study on I & I. Mr. Muller
stated he had had a conversation with Mr. Whiteman about 1 & I. It was confirmed that
I & I was a big problem especially in the Sringa area but it was unsure where it was
coming from. Mr. Muller hoped this matter would be addressed by any company
handling the sewer system. Ms. Arp felt it was a priority but the lagoon size should not
be reduced.
Mr. Eimers inquired about the equipment needed for operation of the system. Mr.
Olson stated that the Sewer District had offered to provide some heavy equipment
needed for the interim contract period of 30 days. It was estimated that certain pieces
of equipment such as the gas detector, 3" pump, and man lift would be around $6,000.
Mr. Colton stated that back in March, the Sewer District contract and addendums were
suppose to be reviewed and compiled into one agreement. Ms. Arp stated that the
District had not been give the opportunity to review any such agreement. Mr. Eimers
stated it appeared there were two different issues involved, the contract itself (legal
document) and the cost of the contract.
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Ms. Arp stated she was pretty cynical because it appeared the contract was a done
deal. Mr. Olson responded that there was no done deal. Ms. Arp noted the 90 day
extension and seriously felt if the Earth Tech contract was approved, no other contracts
will be considered. She felt broad statements made were highly misleading and a real
problem.
Mr. Bieter discussed the legal agreement and addendums the City had with the Sewer
District. He stated that is was a very poor arrangement and responsibilities were not
well defined. Again there was discussion of documents not provided that would show
what was being done and is being done in a cost effective manner. Mr. Olson stated
that other contractors have extremely detailed cost reporting methods.
Mr. Eimers requested that the term length be changed to one month. He asked the
Sewer District if they would have bid, if had been asked to do so. Mr. Colton asked
how long it would take for the Sewer District to reconsider and rebid. Mr. Catlett stated
that there would be a meeting on Friday and felt the District's revised proposal could be
forthcoming. Mr. Catlett was to let the Council know Friday after the board meeting.
Mr. Eimers and Mr. Muller again stressed the importance that employee vacation and
sick leave benefits covered with the new contracting company.
Mr. Muller stated that the decision to go out for bid on the sewer operations was purely
business and operation of the system should be the most economical for the taxpayers.
Mr. Colton moved to continue contracting with the Sewer District for the interim 30 day
period based upon the $27,000 amount and the original contract. Ms. Arp seconded.
At a roll call vote Mr. Colton, Ms. Arp, Mr. Eimers and Mr. Muller voted "aye". Mr.
Venable voted "nay". The motion carried.
Mr. Bieter stated that it was not clearly defined what was to be done on reviewing the
agreement and drafting a new one because the contract went out to bid. He
commented that now the Sewer District has an opportunity to propose a one document
agreement.
Adjournment
Without further business, Mr. Colton moved to adjourn. Mr. Muller seconded and the
motion carried unanimously. The council adjourned at 4:05 p.m.
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ATTEST:
Kirk Eimers, Mayor
Cro
Cherry 1 oodbury, City Clerk
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