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HomeMy Public PortalAboutCouncil Minutes 1998 12/10CITY OF MC CALL MINUTES Special Meeting McCall City Council Thursday - Dec 10, 1998 Table Of Contents Call To Order And Roll Call 2 Water And Sewer Operations 2 Adjournment 5 Council Minutes - Dec 10, 1998.doc Page 1 of 5 MINUTES Call To Order And Roll Call The meeting was called to order by Mayor Eimers at 7:05 PM. 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 and City Clerk Cherry Woodbury. Business Water and Sewer Operations Mr. Eimers called for public comment. Jim Straup commented on the lift station in near proximity to his house. He stated that the alarm light use to go off frequently and this has been resolved with regular maintenance by the District. He reported that he had never heard one person comment that the District has done a poor job. He voiced his support for the District operating the system. Tom Hanks commented that prior to the District handling the system there was a delay in response to contractors. He questioned how the City could change management when things were working well — unless there was a large cost differential. He supported the District and felt the City does not know the sewer operation as well as the District. Hal Sager stated he has found the District to be responsive. He commented on the Timberlost development lift station, which the association tried to manage. After years it was negotiated with the District to manage the station. Mr. Sager stated the station had been upgraded and the alarms do not go off now. He supported the District. Wayne VanCour reported there use to be major spills before the District took over. Rand Walker reported he helped build the system as it exists. He asked if an outside contractor would clean 1/3 of the system each year. He gave background history on the system and stated the City portion would be 1/3 of the pump stations and '/2 of the pipeline. He stated the District was formed because the City was broke. The District received $15 Million in grants. If the City took over the operations, he asked what this would entail for Public Works and if additional personnel would be hired. He suggested that the City continue to seek ways to save money, but supported the District managing the system. Valerie and Kenne Swink letter was entered into the record by Mr. Colton. Council Minutes - Dec 10, 1998.doc Page 2 of 5 Nick and Phoebe Hershenow letter was entered into the record by Ms. Arp. Ted Whiteman presented a letter from plumbers in the City. He handed out copies of the City's Sewer Fund budget. He stated that there was a perception that the District had been over charging the City. He noted the District figures on the budget sheet and the attachment showing reductions (force account items). He stated that the District bid would then be $231,611.00. He requested the District be given the opportunity to continue servicing the City. Bill Killen, attorney for the District, spoke as a citizen. He stated when a management decision is made the bottom line is of major concern but more importantly are the people the City would be working with. The District staff is a known. He commented that the City does not have to worry about the system now and he felt it would be foolish to change. Kim Allen, engineering consultant, stated she had worked with the District. Working in snow country could be challenging. She was in support of keeping the money in McCall. Scott Acker of Toothman Orton felt the District had done an excellent job and it was in the best interest of the City to continue the arrangement. He also supported keeping the money in the community. Judy Dinwiddie suggested considering the human value, not just monetary, of the personnel with the District who have family members that support and provide other services in the community. Pat Zak commented on the positive changes in McCall, but felt personality conflicts were involved in the issue. There was concern for the future status of the current personnel. Jean Odmark felt that for the City to change from using the District there must be a tremendous amount of saving and wondered how outside bids could be that good. Paul Bianchetti reported he was on the District Board and commended the work being done. He stated the money spent by the City with the District for the most part stays in McCall. He commented that without the contract the District could not support the current personnel level. Eric Schweitzer of PSG spoke on the priority of running a system. He stated three elements were customers, the cost, and employees. He commented that PSG would not bring outside people in to run the system and that the current employees were needed. He stated PSG would guarantee to hire all current employees that pass drug screening and they would be given a 5% raise. He stated that PSG does not train people and then not retain them. PSG would train and would turn over the system to one of the City employees to manager. He felt that with the technical assistance and Council Minutes - Dec 10, 1998.doc Page 3 of 5 expert advise that PSG could offer the system could be better. He stated with PSG's bid price, over the life of the contract an estimated $1.32 Million would be saved. Mr. Schweitzer stated that the City currently is paying $27,000 per month for sewer operations and for an additional $6,000 per month could have the water system also managed. Mr. Colton asked for further explanation of the $1.32 Million savings. Mr. Schweitzer noted the $120,000 per year savings and over 11 years this would generate the total $1.32 Million. With this savings, the rates would not have to be raised. Discussion followed on the elements of the RFP and bids on sewer, water, or both. Mr. Venable stated the District chose not to bid on the water. Mr. Eimers stated the City Attorney advised that legally the District's desire to now bid on the water system should not be allowed. Kim Zeydel inquired why the City had previously given up running the system. Mr. Eimers responded that Public Works Department was involved in other tasks and could not support it properly. Ted Whiteman stated the classification / certification of the current employees. It was learned that the plant was rated as a class 3. Mr. Eimers closed the public comment portion of the meeting. Mr. Muller noted the obvious savings by going to an outside contractor, but felt that employee and community concerns were more important. Mr. Muller moved to reject all bids, return the sewer maintenance and operations to the City, resolve all financial issues with the District and conclude the mutual aid agreement with the District. Mr. Venable seconded. Discussion followed on how the operation would be structured. Mr. Venable felt more comfortable having a contractual agreement but wanted to give the City an opportunity to run the system. He felt it in the best interest of the citizens for the City to at least give it an attempt in order to cut cost. Ms. Arp inquired about some of the figures on the City cost spreadsheet. She didn't think any decision was to be made at this meeting. Mr. Colton stated the major reason for the meeting was to involve the public. He felt the public was not fully aware of the potential that the City would run the system and if the public knew all the information would feel more comfortable with the motion. Mr. Muller noted that information had been presented at several previous meetings. Mr. Eimers thanked all bidders and commended them on fine proposals. He sensed the community wanted to have the operations remain local and felt it unfair to bidders to Council Minutes - Dec 10, 1998.doc Page 4 of 5 incur further expenses. He felt at this point the system would either stay with the District or the City would take on the responsibility. Mr. Muller withdrew the motion. Council agreed to put the issue on the December 15' agenda. Adjournment Without further business, Mr. Colton moved to adjourn. Mr. Muller seconded and the motion carried unanimously. The Council adjourned at 9:05 p.m. ATTEST: Cherry W• •bury, City Clerk 1 Kirk Eimers, Mayor Council Minutes - Dec 10, 1998.doc Page 5 of 5