HomeMy WebLinkAboutBudget/Finance Committee Minutes 09.01.1998 MINUTES
BUDGET/FINANCE COMMITTEE
SEPTEMBER 1, 1998 4:30 P.M.
OLD COURT ROOM
MEMBERS PRESENT:
Chairman Bud Johnson
Ken Olson
Chuck Rodgers
Don Hackmann
Gay Easton
OTHERS PRESENT:
Larry McCann
The committee reviewed the August Claims and recommended that they be paid.
The overtime report for PPE 8-25-98 was distributed and reviewed.
Resolutions for Ambulance Compensation, the Nine-One-One Loan for
communication equipment and the CTEP Funds were distributed and reviewed.
Discussion regarding a letter fi.om Morrison-Maierle, Inc. regarding engineering
fees.
Purchase requisitions were approved as follows:
GENERAL FUND:
Repair to police car #5 521.21
Books for library 835.65
Swimming pool chemicals 1,370.00
Photocopier for library 1,359.00
13 Pantler SCBA and 2 air bottles 19,984.00
Installed steel door frame, lock and deadbolt at
concession stand in Thomson Park 780.00
Remodel Court Clerk's Office and Council Chambers 1,746.00
NINE-ONE-ONE FUND:
Communication equipment for FAP Complex
(Repeater)
5,805.00
WATER FUND:
Water leaks on 8-15 and 8-16, 4 leaks.
Backhoe, two dump tracks and mater/al.
South Fourth Street, Woodland and
West First Street
1,286.00
Dig water leak on South Fourth Street and line
replacement. Backhoe, two dump trucks and
material.
Repair clamps
Two 12x30-inch repair clamps
Four 20-feet water lines, valves, tees, etc.
Electrical work at Water Plant.
Replace breaker box, etc.
Dresser couplings and tee, valve box and riser
5 1/2 drums Cat Floc T (WTP)
Portable radio
SEWER FUND:
Clean sewer and locate manholes with cameras
Electric controller for boiler (WWTP)
Radio, antenna and installation
SOLID WASTE FUND:
Dumping fees for July
865.00
1,853.00
1,091.6O
9,640.00
2,273.63
1,106.89
2,522.70
588.00
975.00
711.00
1,208.00
6,375.31
The meeting was adjourned at 5:23 p.m.
Respectfully submitted,
Don Hackmarm
Clerk-Treasurer
MORRISON
MAIERLE, Nc.
An ~mployee.Dioned Company
ENGINEERS
SCIENTISTS
SURVEYORS
PLANNERS
July 6, 1998
Mayor Chuck Rodgers
City of Laurel
PO Box I0
Laurel, MT 59044
RE: Laurel Water Treatment Plant / Distribution System Project
Dear Mayor Rodgers:
Morrison-Maierle, Inc. (MMI) would like to request a modification of our engineering services
agreement for the subject project. The modification would be for the construction phase of this
project only. In general, our proposal is to offer the level of service specified in the contract, but to
do so under a "lump sum" rather than an "hourly rate" contract. We believe that this offers several
benefits to both parties:
The cost to the City of Laurel for construction services and testing would be a fixed,
predictable figure that can be firmly budgeted, rather than estimated.
A lump sum contract is also a benefit to MMI as our revenue is more predictable. In earlier
correspondence, you were advised that the company is accepting a $150,000 loss on the
design portion of this project. While we do not expect, nor are requesting to recover this, we
would be more comfortable with a specific total that we can base our future cash flow
projections on. Given the circumstances, we believe this is fair.
The level of service is still guaranteed to meet the requirements of Section A.2.5 and
B6.1.2.1 of the contract.
4. Less paperwork is required by all parties involved under "lump sum" format.
Relative to the actual contract, (MMI No. 0703/006.03-040B-0211), we present the following for
your consideration.
Section A.2.5. Construction Phase. MMI's scope of services will not be altered.
Section B6.1.1.3. Construction Services. Replace with the following paragraph:
B.6.1.1.3.
Construction Services. For the Basic Services provided in the Construction
Phase (paragraph 2.5 of the Standard Agreement and paragraph A2.5 of
Exhibit A) and the Bidding and Negotiating Phase (paragraph 2.4 of the
Standard Agreement and paragraph A2.4 of Exhibit A), a lump sum of
$215,600.00 for services rendered by the resident project representative and
other employees engaged directly in the field or in the Office for project
bidding, project construction, construction surveying, and project layout. '
W:~O703iOO6\OS~nodiflcationllr.wpd
July ~., 1998
" Beginning
Our Second
Half C~entury
' MORRISON
m'.a MAIERLE, I,e
Mayor Chuck Rodgers
Contract Amendment
July 6, 1998
Page 2
Section B6.1.2.1. GeotechnicalServices. Replace with the following paragraph:
Section B6.1.2.1.
Geotechnical Services. For the construction testing services to be
provided during the construction of the distribution system, the water
treatment plant improvements, and the water storage tank
improvements, a lump sum fee of $5,500.00.
Section 6.1.3 (as revised by Amendment No, 4). The total for Construction and Geotechnical
Services would he a lump sum of':
Original Fee
1a Ave. water line (Amend No. 1)
Additional Tank, Plant, & Line
Geotechnical Services (B6.1.2.1.)
$168,200.00
$3,500.00
$43,900.00
$5,500.00.
Total Construction & Testing
$221,100.00
This total cost is the same for construction and construction testing services as the current total
agreed to between the City and MMI, through Amendment No: 4.
With your concurrence, we will submit Amendment No. 5 that contractually addresses these issues.
We sincerely believe that there is both benefit and risk to both the City and MMI in such an
agreement. However, based on recent meetings with both the Schedule I and II contractors, it is our
opinion that the benefits to both parties exceed any risks. We must ask that you give our proposal
consideration and we will be in contact with you within the next one to two weeks as to the City's
response.
Sincerely,
MORRiSON-MAIERLE, INC.
Erling A. Tufte, P.E. ]1
Office Manager
David N. Mosser, P.E.
Senior Project Manager
ce: Larry McCann
W:\0703\006\05\modl ficatlonltr.wpd
July 6, 1998