HomeMy WebLinkAboutCity Council Minutes 01.05.1999 MINI]TES OF THE CITY COIINCIL OF ! IJREL
January 5, 1999
A regular 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 7:00 p.m. on January 5, 1999.
COUNCIL MEMBERS PRESENT: Dirk Kroll Gary Temple
Ken Olson Norman Orr
Gay Easton Bud Johnson
Bill Staudinger
COUNCIL MEMBERS ABSENT: Miles Walton
Mayor Rodgers asked the council to observe a moment of silence in behalf of Miranda Fenner and
her family.
MINUTES:
Motion by Alderman Kroll to approve the minutes of the regular meeting of December 15,
1998, as presented, seconded by Alderman Johnson. Motion carried 7-0.
CORRESPONDENCE:
MMIA Winter 1998 Newsletter
CONSENT ITEMS:
a. Claims for the month of December in the amount of $1,537,603.45.
b. Committee Reports.
--Budget/Finance Committee minutes of December 15, 1998 were presented.
-City Council Committee of the Whole minutes of December 15, 1998 were presented.
--Public Utilities Committee minutes of December 14, 1998 were presented.
The mayor asked if there was any separation of consent items. There was none.
Motion by Alderman Johnson to approve the consent items as presented, seconded by
Alderman Orr. Motion carried 7-0.
SCHEDULED MATTERS:
a. Confirmation of Appointments.
Ambulance Attendant:
Mayor Rodgets appointed David Copeland as an Ambulance Attendant, effective January 5, 1999.
Motion by Alderman Johnson to confirm the appointment of David Copeland as an
Ambulance Attendant, effective January 5, 1999, seconded by Alderman Orr. Motion carried 7-0.
b. Jason Rittal - Progress report on the water tanks, water lines and Water Plant.
Jason Rittal presented a progress report on the water improvements project. The water reservoir
portion of the project has been completed at a total cost of $852,766.08. The project had
$923,224.70 budgeted to cover the expenses. In addition, $85,157.50 has been placed in a reserve
account and will be retained by the City upon retirement of the bonds. The project has received
approximately $29,000 in interest income from the bonds and reserve account. The tank project has
expended funds in three fiscal years: $537.35 in 1996-97; $524,968.58 in 1997-98; and $327,260.15
in 1998-99.
Council Minutes of January 5, 1999
The tanks need to be removed from Construction in Progress within the City's books so that they can
be funded on a depreciation schedule that fits their projected life. The engineer will need to
recommend an appropriate time schedule, which must also meet the auditor's approval.
The project has funds remaining in the budget which are restricted. Jason recommended that those
funds be used toward either prepaying the bonds or as a portion of a payment, upon the approval
from the auditor/accountant and receipt of all final invoices. The funds cannot be used for Phase II
or other construction activities.
Jason shared some of the interesting aspects of managing one of the first State Revolving Fund
projects in the state. He explained some of the problems he experienced with the Handbook of
Procedures, the pay requests, and the MBE/WBE reporting requirements.
Gray Construction has completed the installation of the water lines with the exception of a few
minor ptmch list items. Jason reported that the project has gone smoothly from a budget/financing
aspect. Gray has been paid $715,246 of $732,966. Four pay estimates and one change order were
received. There are several outstanding issues. Liquidated damages have been assessed by the City
because they exceeded their contract time, but that may be refuted by the contractor. The City needs
to work with the engineer and Gray Construction regarding a decision on the approximate $11,000
and additional engineering costs.
Gray Construction is holding payment from one of their subcontractors, as they have not presented
payroll reports. Payment will be held until Double-Tree has reviewed the reports and acknowledges
compliance. If the issue is not resolved, Joe Leckie will be asked to become directly involved.
Jason recomn~ended that no further payment be made to Gray Construction until the issue is
resolved. Don Hackmann and Jason will reconcile the water line portion of the project in February
after all significant invoices are received. After that the remaining payments will be minor and
easily traceable by the new clerk. Upon completion of the entire project, Jason will assist the new
clerk with the final reconciliation and posting of the water line project.
The Water Treatment Plant is scheduled to be completed by April 15, 1999. R. H. Grover has been
paid $1,588,448 of its contract. Two change orders have been received to date. Those total $22,985,
increasing the contract amount to $2,890,887. Seven pay estimates have been received and
approved. Double-Tree is currently reviewing payrolls from the general contractor and several
subcontractors. The number of personnel on site has been reduced, but construction is scheduled to
continue through the winter. They are currently working with R. H. Grover regarding underpayment
of $143.00 to several employees. Grover is correcting the error and has agreed to send the necessary
documentation. Jason is also waking for some apprenticeship documentation from a subcontractor.
He does not anticipate that either issue will be an ongoing problem and will advise the City if they
are not resolved.
Double-Tree has currently requested $2,910,053 from the State Revolving Fund. The City is eligible
to draw up to $5,250,000, which includes a debt service reserve which the City will retain upon
complete payment of the bonds. At this time it appears that the City will fall well within the
$5,250,000, as was anticipated after bid opening.
Rates and charges for the first complete year at the new rates were very near to the projections made
prior to the beginning of the project and no drastic change is anticipated.
Jason recommended payment of R. H. Grover pay estimate number seven with the following notes:
the estimated contract price should read $2,890,887.00 to reflect the two change orders; the days
remaining and authorized extensions should reflect the City's resolution extending the deadline to
April 15, 1999; SRF must concur with payment.
Jason also recommended payment of Morrison-Maierle invoice #981751 upon receipt of the
revisions removing the $590.64 from the tank portion of the project to the treatment plant portion of
the project. The invoice total will remain the same.
SRF contacted Jason recently and asked if Double-Tree and the City of Laurel would send a letter of
support for the program, as they will be going before the legislature in the near future. Jason
encouraged the council to contact him with any questions at any time.
Mayor Rodgers thanked Jason for his work with the project.
Council Minutes of January 5, 1999
c. Paul Strom, CPA - 1997-98 Audit Report.
Paul Strom, representing Paul Strom and Associates, stated that there were no problems with the
financial records of the City for the 1997-98 Audit Report. One compliance finding has already
been addressed by the City. Paul mentioned that it was a pleasure to work with Don Hackmann and
the staff. He stated that this was the last year of their three-year contract and a new contract needs to
be negotiated.
Motion by Aldem~an Johnson to adopt the 1997-98 Audit Report, seconded by Alderman
Orr. Motion carried 7-0.
Joe and Madelon Davis - Concerns regarding the work being done west of the Water
Plant.
Joe Davis, 1303 Nutting Road, addressed the council with his concerns regarding the work being
done west of the Water Plant. He represented four families that live on the north side of the river
adjacent to the gravel pile. They are concerned about why and how long the gravel pile will be left
there. He is concerned about the problems that could be caused by this gavel pile during iceout and
if floating debris collects in that area. He asked for a commitment as to when this gavel pile will be
removed from the river. Mayor Rodgers expla'med that it is our understanding that we cannot
remove anything out of the river or put anything in the river. The Corp of Engineers will be here on
Tuesday, Januaryl2th, to address some of the current issues involved with the problems in the river.
Joe is concerned that the problem will not be dealt with in sufficient time to prepare for the spring
rains. The mayor stated that the problems would have to be addressed with the Corp of Engineers,
the City and a hydrologist.
UNSCHEDULED MATTERS:
Ken Olson asked for an update on the review of the encroachment ordinance. Joe Leckie is
reviewing it and it will be on the next agenda.
Mayor Rodgers recently visited with the Cenex people. If it had been necessary to shut down the
Cenex Refinery during the recent water problems, the refinery may not have reopened. If they had
decided to reopen, it would have taken four to six weeks to resume full operation. This is a very
important factor for the economy of our community. At 10:00 p.m. on Monday, December 21st, he
contacted the DES officers in Billings and Helena. He also contacted the National Guard regarding
an engineering company that could assist us in the river because we were at a very critical point. We
went from 33 feet elevation in the reservoir down to 14.2 feet on Wednesday morning. In another
four hours, everything would have had to be shut down. There is no National Guard or engineering
company in the State of Montana available for national disasters or emergencies. We are working
with the senators and the Army Corp of Engineers.
There being no further business to come before the council at this time, the meeting was adjourned at
7:45 p.m.
Cindy Alle~iecretary
Approved by the Mayor and passed by the City Council of the City of Laurel, Montana, this 19th
day of January, 1999.
Attest:
Donald L. Hackmann, Clerk-Treasurer