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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 Council Minutes - Sept 30, 1998.doc Page 1 of 6 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. Council Minutes - Sept 30, 1998.doc Page 2 of 6 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. Council Minutes - Sept 30, 1998.doc Page 3 of 6 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. Council Minutes - Sept 30, 1998.doc Page 4of6 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. Council Minutes - Sept 30, 1998.doc Page 5 of 6 ATTEST: Kirk Eimers, Mayor Cro Cherry 1 oodbury, City Clerk Council Minutes - Sept 30, 1998.doc Page 6of6