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HomeMy WebLinkAboutSpecial City Council Minutes 08.10.1992 (2)Minutes of the City Council of Laurel August 10, 1992 A special meeting of the City Council of the City of Laurel, Montana, was held in the Council Chambers and called to order by Mayor Chuck Rodgers at 7:04 p.m., on August 10, 1992, for the specific purpose of approving an agreement with Geo Research, Inc., relating to landfill closure and hydrogeologic investigation, COUNCIL MEMBERS PRESENT: Norman Orr Gay Easton L.D. Collins Albert Ehrlick Lonnie Kellogg Donna Kilpatrick Ron Marshall COUNCIL MEMBERS ABSENT: Bob Graham The Garbage Committee minutes of August 6, 1992 were reviewed. In regard to the closure of the landfill, Chuck stated that a letter has been sent to the State~ requesting an extension on the deadline. The Council needs to start the steps to satisfy the requirements of closure and monitoring of Lhe landfill. Jerry Thomas, General Manager of GEO Research, explained to the Council what needs to be done. GEO Research submitted a proposal to the City on June 26, 1992, regarding landfill closure and hydrogeologic investigation, which is monitoring of the wells as required by the Montana Department of Health and Environmental Sciences. Jerry said his company submitted the proposal because they were aware that the Department of Health and Environmental Sciences was working with the City of Laurel regarding the closure and the regulations associated with it. Jerry stated the Council has before them a copy of the proposal, an agreement with GEO Research for hazardous waste services and a cover letter referencing the solid waste proposal. The solid waste proposal is for two basic services. The first is for a closure, where the City is required to submit a formal closure presentation to the Department of Health and Environmental Sciences to officially close the landfill and to meet all the requirements as such. The cost of this proposal is $ 8~500.00. The second proposal is for the hydrogeologic investigation, which requires monitoring of four test wells that will be dug. They estimate that the wells may be around 100 feet deep, but there is no way of knowing for certain until they are drilled. It also includes two permeability test points~ which are also required by the State. The estimated cost of this, excluding the driller, is $ 11,269.00 to $ 12~669.00, depending on the outcome of the tests. Jerry said they feel four test wells would be sufficient and the testing could be completed within a two month period. If unforeseen problems should arise, such as negative test results, it could cost the City more. Based on preliminary testing done by GEO Research, no further problems were indicated. The City would also have to cover the expense of having a driller come in and drill the wells. Jerry received an estimate of $ 6~700.00 from a Billings driller, based on a well approximately 100 feet deep. Chuck said this does does not include the plan review for the transfer site. Jerry confirmed this and said Jim Worthington had indicated that the City may want to do some of the work themselves. Jerry did give Jim information from a firm that does engineering on transfer sites and this included estimates on engineering and construction costs. Jerry said GEO Research does not have employees on staff who do transfer site engineering. In answer to a question~ Jerry said his firm does not dig wells but they do the monitoring~ soil and water testing~ and write the reports which indicate their findings. Minutes of the City Council of Laurel Page 2 Council Meeting of August 10, 1992 In regard to another question, Jerry said that if the water testing reveals that there is hazardous material in the water, the State can force the City to take corrective action. In cases where this has happened~ the State requires that the source and type of contamination be identified and removed. Jerry again said their preliminary indications are that the City will not run into this problem, but no one knows for certain until it is done. Chuck said these are requirements mandated by the State. deadline of August Sth, but the City missed it. We had a Jerry said his company based their proposal on the registered letter the City received from the State. The proposal was drawn up, assuming there would be a July 1st starting date. By July 14th, they would have the monitoring well plan complete and allow for the State review which should be done by July 28th. Then, they would start the hydrogeologic investigation, which would take two months and be completed by September 30th. A preiimi, nary report would be submitted to the State and three months were given for them to review it. By December 31st, the State should have a recommendation for approval or denial. The post-closure maintenance plan would be ready by February 1st with completion of work done at that time also. Jerry said August 5th has come and gone already but he feels that if the State grants the 30 day extension~ the total plan could still be completed on time. Joe Bradley said the Council needs to be aware of what the contract says. In regard to the time frame, Joe said the contract reads with the old dates and he questioned whether it should be changed to the new time frame dates. Joe said the Council also needs to be aware that the cost in the proposal is just an estimate. The proposal does say that the "costs of these consulting services are estimated since the scope of services cannot be completely anticipated~ the costs are broken into work items". The contract also says, "GEO Research shall be paid in full for all services~ including any overruns of clients contract or any unforeseen need for Geo Research's services, exceeding original contract requirements". The City has to pay for what GEO Research does and they do not have to notify the City in advance for any differences in cost. Joe said Article 2 of the contract states that the City will furnish to GEO Research all documents and information known to us that relate to the location of hazardous waste. Dave Michael said we do not have anything like that. In regard to another section of the contract, Joe questioned what documentation Geo Research is going to require the City to submit. Jerry said their engineer met with Jim Worthington and reviewed the documentation and Jerry assumes that his company is satisfied with the information available. Chuck said Jim mentioned he was comfortable with what GEO Research was proposing to do. In regard to insurance, the contract says the City is promising GEO Research that we have a million dollar insurance policy that will protect them from the dangers of hazardous materials. Don Hackmann said the City does not have any type of pollution insurance and we cannot get it. Don said we have a regular general liability policy through MMIA for one and one-half million dollars but it does not cover pollution. Jerry said he will check on it. As far as warranties go, Joe said our damage limitation against GEO Research for whatever it is that they might do wrong, is just the amount that we are paying them. They also say that if we ever do sue them, the only amount we could ever recover from them is just the amount that we promised to pay them. GEO Research is also saying that if they do something wrong in the context of their work, we will protect them. Joe said this could even extend to the case of us defending a worker who might get in an Page 3 Council Meeting of August 10, 1992 Minutes of the City Council of Laurel accident on his way to work. Joe said this is a very tightly written contract. The City does not have much recourse against GEO Research for anything that they might do wrong. Joe said he is not that familiar with the specifics to know what they could do that would cause the City a lot of damage. We only have recourse in circumstances of reckless or willful negligence and then, only to the extent of what we are paying them. In regard to payment arrangements, the City would be paying them monthly. Jerry said all his firm does is run the tests and write the reports. They do not handle any material so there is really no way they can be held liable, so they want coverage protecting them from liability~ Joe felt Article 4.1, regarding pollution insurance, needs to be deleted since we cannot purchase pollution insurance. Don stated that Jerry may want to discuss this with Bob Worthington, who is the insurance coordinator for MMIA. In regard to exceeding the estimates, Joe would like to see something written into the contract stating that before they grossly exceed the contract estimates, that someone come back to the Council and explain the problem. Jerry said the proposal was based on the State of Montana recommendations, but they can work with us to do what is necessary to complete the closure. L.D. Collins questioned who owns the land that these wells are going to be drilled on. It was stated that this land is owned by the State. L.D. questioned whether we have to get permission from the State to drill these wells and do we have to provide roads to these wells so they can be monitored? Jerry said that if the State approves the closure and the investigation report, he doesn't feel they would ever want to continue monitoring them. He feels the only way it may ever be monitored again is if the State received a complaint from someone with a contaminated well and they are accusing the City of causing it. Chuck said State requirements are changing after January 1, 1993 and everyone will be required to monitor the wells for a 30 year period. That's why we need to get this done by the end of the year. L.D. asked how long the City' is obligated and are we just sitting on a time bomb? If it passes all the tests, when is the City's obligation done? As far as the contract goes, Joe said the City really has no choice. If the Council approves the contract, you should authorize the Mayor to sign it, deleting Article 4.1 regarding insurance. You have no room to negotiate on the cost. Jerry clarified that if there is additional work that needs to be done, the State will contact the City and we will know about it before GEO Research will. It is then up to us if we want them to do the additional work. Jerry will check with his company regarding the insurance issue. He said every city, at one time, had a landfill and most of them are going through this same process so he will check to see what they are doing with other cities. He will get back to us on this tomorrow. RESOLUTION NO. 2610 A RESOLUTION APPROVING AN AGREEMENT BETWEEN THE THE CITY OF LAUREL AND GEO RESEARCH INC., SAID AGREEMENT RELATING TO LANDFILL CLOSURE AND HYDROGEOLOGIC INVESTIGATION Motion by Alderman Kellogg that Resolution No. 2610 be passed and adopted, seconded by Alderman Ehrlick. Regarding the insurance issue, Jerry assumes }lis firm would at least like to be named under the City's general liability policy. This would be a modification and wOuld need to be brought back before the Council at yet another meeting. Joe said we could just do it and show Page Minutes of the City Council of Laurel Council Meeting of August 10, 1992 you proof that it has been done, but it would not be in your requirements. Joe Said the City will have to look into what it would cost to name them in our policy. Discussion followed regarding the 30 day extension granted by the State. There was confusion whether the extension was just for the August 5th deadline or whether the extension carried through all the deadline dates~ including the December 31st one. Joe said we can change the dates and Article 4.1 on the agreement and attach a copy to the contract. At this time a vote was taken on the motion. Motion carried 6--1 with Alderman Collins voting, "NO". Chuck read the letter from the State and the extension is only for submitting the initial plan. The final deadline is still January 1, 1993. Jerry asked if the monitoring well plan date of July 14th in the proposal could be changed to August 28th and this was acceptable to the Council. Joe said that after Jerry talks to his company, any further date changes can be done by letter. The closure plan will still be submitted by January 1st. The meeting was adjourned at 7:47 p.m. Donald L. Hackmann, City Clerk Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this 18th day of August, 1992. ATTEST: Donald L. Hackmann, City Clerk