City Council Minutes 12-18-1996 SpecialMINUTES
SPECIAL MEETING - MONTICELLO CITY COUNCIL
Wednesday, December 18, 1996 - 6:30 p.m.
Members Present: Brad Fyle, Shirley Anderson, Clint Herbst, Brian Stumpf, Tom
Perrault
Members Absent: None
2. Public Hearing--Ado-otion of the lii)',El wz-&MMI
resolution setting the 1997
Mayor Fyle opened the public hearing.
City Administrator Rick Wolfsteller explained that as part of the Truth in
Taxation requirements, the City Council is required to hold this second
public hearing on the adoption of the 1997 budget and the resulting tax levy.
At the initial public hearing on Wednesday, December 4, the Council's
decision was to keep the proposed tax levy at the $3,059,880 amount, which
would result in an estimated 2.86% increase over the 1996 tax levy.
There being no comment from the public, Mayor Fyle closed the public
hearing.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO ADOPT A RESOLUTION SETTING THE TAX
LEVY REQUIREMENTS FOR 1997 AT $3,059,880, A 2.86% INCREASE OVER THE
1996 TAX LEVY. Motion carried unanimously.
SEE RESOLUTION 96-50.
3. Review of bids and consideration of award of contract for Wastewater
Treatment Plant Ex- P City PrQject•
Public Works Director John Simola reported that the latest engineer's
estimate for construction of the wastewater treatment plant expansion
project was slightly over $9.2 million, not including engineering,
contingencies, first stage digester cover costs, and SBR shop drawings. Nine
bids were received on December 12 ranging from a low base bid of
$11,283,200 from Adolfson & Peterson to a high bid of $12,980,000 from John
T. Jones Construction Company. Bob Peplin of HDR noted that these were
very competitive bids and recommended that Council award the project to
Adolfson & Peterson.
Page 1
Special Council Minutes - 12/18/96
John Simola stated that, based on the bid from Adolfson & Peterson, he
estimated the total project cost to be $14.7 million, which included past,
current, and future costs. It was Simola's view that the bids received were
the best the City would receive for the project as designed and that re-
bidding the project would not result in lower bids.
Mayor Fyle expressed his concern with the increased cost from the original
$547 million that was proposed by HDR at the start of the project. He felt
that perhaps the City should consider starting over with the project. Council
members noted their disappointment with the increased price of the project,
but they also pointed out that the City did add some items to the project
which increased the cost.
Simola cautioned the Council that there is a possibility the City may not
meet permit limitations in the spring of 1997. If the project did not go
forward at this time, the treatment plant would not meet permit limitations
in 1998, and the City would likely have to consider placing a moratorium on
future development until another plant was designed and constructed.
AFTER DISCUSSION, A MOTION WAS MADE BY SHIRLEY ANDERSON AND
SECONDED BY TOM PERRAULT TO AWARD THE CONTRACT FOR PROJECT
93-14C, WASTEWATER TREATMENT PLANT EXPANSION, TO ADOLFSON &
PETERSON, INC., AS RECOMMENDED BY HDR. Voting in favor: Shirley
Anderson, Tom Perrault, Clint Herbst. Opposed: Brad Fyle, Brian Stumpf.
Motion carried. SEE RESOLUTION 96-51.
4. Consideration of engineering fees -for wastewater treatment plant e - . a
and consideration of authorization for HDR to proceed with con truction
engineering, 11 and 500.
Public Works Director John Simola reported that the first contract with HDR
for expansion of the wastewater treatment plant stated that the City would
pay HDR 8% of the estimated bid price of $8,500,000 for engineer design fees.
The contract also stated that engineering fees would be raised to 8% of the
actual bid, which came from Adolfson & Peterson at $11,283,000. After
adding the cost for shop drawings for the SBR and the cost of the digester
cover, the project cost would total $11,649,000, which is the figure City staff
felt should be used to calculate the 8% fee due to HDR for the design phase.
However, HDR disagreed. It was their view that additional fees are due
because of the complexity and broadness of the scope of the project.
Page 2
Special Council Minutes - 12/18/96
Simola recommended that Council table entering into an agreement with
HDR for the next phase of the project until fees can be negotiated for the first
portion of the project. It was Simola's view that staff would be able to create
the necessary documents to award the project in the meantime.
Ed DeLaforest of HDR stated that most of the services rendered have been
substantially agreed to. A number of extra services needed to be negotiated,
but DeLaforest was confident that an agreement could be reached. A draft
proposal by HDR for future services had been provided for Simola's review.
Simola suggested that Council authorize staff to continue negotiations with
HDR and table this item for consideration at a special meeting. DeLaforest
stated that HDR would assist the City with the necessary paperwork for the
award to the contractor at no charge to the City.
AFTER DISCUSSION, A MOTION WAS MADE BY CLINT HERBST AND
SECONDED BY BRIAN STUMPF TO TABLE CONSIDERATION OF
ENGINEERING FEES FOR THE WASTEWATER TREATMENT PLANT
EXPANSION UNTIL A SPECIAL MEETING TO BE HELD MONDAY,
DECEMBER 30, 1996, AT 7 P.M. Motion carried unanimously.
There being no further business, the meeting was adjourned.
4 - /'� 6 ''2
I '
Karen Doty
Office Manager
Page 3