HomeMy WebLinkAboutCouncil Workshop Minutes 01.09.2007MINUTES
COUNCIL WORKSHOP
JANUARY 9, 2007 6:30 P.M.
COUNCIL CHAMBERS
A Council Workshop was held in the Council Chambers and called to order by Mayor Ken Olson at
6:30 p.m. on January 9, 2007.
COUNCIL MEMBERS PRESENT:
_ Vacant council seat
_x Kate Hart
_x Gay Easton
Vacant council seat
_x_ Doug Poehls
Mark Mace
_x Chuck Dickerson
_x_ Norm Stamper
OTHERS PRESENT:
Sam Painter
Mary Embleton
Mark Richards
Larry McCann
Steve Klotz
Perry Asher
Rick Musson
Mike Zuhoski
Jan Faught (7:04 p.m.)
Public Input (three-minute limit):
Citizens may address the Council regarding any item of City business not on the agenda. The duration for an individual
speaking under Public Input is limited to three minutes. Mile all comments are welcome, the Council will not take action
on any item not on the agenda.
• None
Laurel Police Reserve Appointments:
Chief Musson introduced the following individuals and asked that they be appointed to the Laurel
Police Reserves at the council meeting on January 16`h: Mathew Caudill, Randall Gibson, Frederic
Gregory, and Andrew Arneson. The police reserve school will start next week.
Carl Anderson, Morrison-Maierle: Change Order No. 2 - Sewer Trunk Line Replacement Project
Carl Anderson spoke regarding Change Order No. 2 for the trunk main project at the Canyon Creek
Ditch crossing. A letter dated January 5, 2007, was sent to the mayor and council regarding the
change order with COP Construction on the trunk main project. Change Order No. 2, which is yet to
be approved by the council, is in the amount of $53,355. Carl explained that the project was designed
with two 30-inch pipes that crossed underneath the Canyon Creek Ditch. When the contractor got to
that point, it was evident to the inspector in the field that it would create a situation where the top of
the pipe was higher than the bottom of the ditch. The situation was reviewed and a modification was
designed. The two 30-inch pipes were broken into four 20-inch pipes because of the grade issues
where it crosses underneath the ditch. The Department of Environmental Quality has tentatively
approved the crossing. Carl explained that the issue was the result of a lack of communication within
Morrison-Maierle, which is an embarrassment for any firm to be in. MMI surveyed this and had the
information internally to be able to determine that there was an issue here, but it was not caught
Council Workshop Minutes of January 9, 2007
during the design process. He stated that this is a design issue for which they need and are willing to
take some responsibility. The letter outlines the details, and a copy is attached to these minutes.
The cost that has been incurred includes two components: one is to remove some work that the
contractor installed prior to realizing that there was an issue. The other part of the work is work that
the contractor installed that would have been part of the original design if the information bad been
properly communicated to the design team. The letter states that MMI will pay for the work that the
contractor did that was torn out, and MMI asked the city to pay for the work that the contractor did
that will be incorporated into the project, which is the four-pipe system
The items for which MMI would pay are listed on the second page of the letter. They include:
80 feet of 30-inch pipe installed at $170/foot $13,600.00
Trench plug installed $ 1,300.00
Item 1 ofC.O. #2 $ 4,972.00
(remove installed work, salvage pipe to MMI, pipe material cost
Furnish and install PVC pipe 1 LS @ $6,471
(Schedule 1A, 56 percent installed) 3,623.76
Total MMI cost $23,495.76
A summary of the city's total cost is included on a spreadsheet attached to the letter. The original
contract price of the Canyon Creek Ditch Crossing was $62,171. The revised contract price will be
$80,090, which is a cost difference of $17,919.
There was discussion regarding the 140 feet of 30-inch pipe that was not used in the project and of
which Morrison-Maierle will take possession. If the city chose to purchase it, Morrison-Maierle
would offer it at 50 percent of the original purchase price or $4,130. This size of pipe will be used in
the next phase of the trunk main project.
Change Order No. 2 for $55,355 will be on the council agenda on January 16`".
Carl explained a second letter regarding additional engineering costs for the 2006 wastewater
improvements project which were incurred outside of or in addition to the scope of services covered
in Task Order No. 8. Carl requested authorization to use the contingency phase in the task order for
the engineering costs. The extra costs include:
Cost of living increase from August 2006 to end of project $1,877.88
Sanitary sewer main realignment $1,926.50
Cost share of inspection time for Canyon Creek ditch crossing $2,640.00
Total $6,444.38
Mayor Olson stated that the contract for the additional engineering will be presented at the council
workshop on January 30s.
There was a brief discussion regarding the offer by Morrison-Maierle, which Doug Poehls and Mark
Mace stated was reasonable. It was suggested that the city purchase the extra pipe and store it for the
next phase of the wastewater project.
Mayor Olson thanked Carl Anderson for his presentation.
2
Council Workshop Minutes of January 9, 2007
Plannina Board:
• Review of proposed changes to the subdivision regulations
Mark Richards stated that copies of the proposed subdivision regulations were distributed to the
council last week. He mentioned the following timeframe for completion of the subdivision
regulations:
• January-
• Presentation of Cal Cumin's subdivision ordinance to the council
o Staff preparation of table of contents, additions to text and indexing, and cross
referencing ordinance
• February:
o Integration of new forms and appendices
o Council review, public comment period
o Adoption - approval of the document will be scheduled in February or March 2007.
With State adoption of new laws and revision, the ordinance will need further updates.
Mark Richards stated that the Planning Board approved the Canyon Creek Station Subdivision
preliminary plat at the meeting on January 4, 2007. A letter received regarding figures for traffic
flows at the proposed McDonald's was forwarded to the Montana Department of Transportation.
This item will be on the council workshop agenda on January 30`h.
Executive review:
• Council Appointments: Ward 1 and Ward 4
Letters of interest were received from Emelie Eaton for the Ward 1 council position and from Vonda
Hotchkiss for the Ward 4 council position. Friday, January 19'` is the deadline to submit letters of
interest for the council vacancies.
There was discussion regarding the process. According to statute, council vacancies must be filled
within thirty days. Copies of additional letters of interest will be distributed and reviewed prior to a
special council meeting on January 30'h to appoint two members of the council. Candidates will have
an opportunity to speak to the council prior to the council's decision.
There was discussion regarding the ward system and whether or not there could be a council member-
at-large. The Local Government Review Commission recommended no changes to the city's form of
government. Sam will look into this issue.
• Evaluation of council's notification of issues
There was discussion regarding the current process and the future possibility of posting documents on
the city's website. Council members agreed to continue the current process of distribution of
documents and information.
Review of draft council agenda for January 16, 2007•
Public Hearings:
• Intent to adopt an Official Schedule of Fees and Charges for the City of Laurel (Public hearing
held 01/02/2007 and continued to 01/16/2007)
Council Workshop Minutes of January 9, 2007
An updated schedule of fees and charges, which included additions presented at the council meeting
on January 2'd, was distributed and reviewed by the council. The original additions were highlighted
in yellow and the additional items were highlighted in green.
There was a lengthy discussion regarding the additional planning fees. Mark Mace questioned the
$1,000 commercial variance fee and the $500 residential variance fee. He does not think the
residential fee is that high in the City of Billings. Council members requested a comparable list of
fees charged by the City of Billings. Mark Richards agreed to e-mail the Billings' website address to
the council members so the fees can be reviewed. Mark Richards explained the need for the fees for
services the city has previously provided at no charge. Mark Mace agreed that fees are needed, but
stated that increases need to be done methodically, not in huge increments. Mark Richards will
provide the council members with a listing of the current and proposed planning fees for comparison.
The council needs justification for the increased fees.
The public hearing for the scheduled of fees and charges was continued to January 16u. Mayor Olson
stated that further discussion will be scheduled on the council workshop agenda on January 30a'.
• Ordinance No. 006-15: An ordinance modifying Title 15, Chapter 15.40.130(I) of the Laurel
Municipal Code in order to provide clarity and consistency of the rules regarding freestanding
signs. (First reading - 12/19/2006)
The public hearing will be on the January 16u' council agenda.
Other items:
• Resolution- Contract with Olness & Associates
Mary explained the resolution amending the resolution to extend the auditor's contract. During the
audit last week, the auditors informed Mary that the city crossed the $500,000 threshold of federal
money in the past fiscal year. This triggered single audit requirements, which requires the auditors to
do more testing at an additional cost of $2,000. Mary received a bill for $14,800 from Olness and
Associates yesterday, which is more than the original contract. The auditors also charged an
additional $1,800 for work that was done that should have been done prior to the audit. The
additional $3,800 for their services this year increases the total to $16,050. The amended contract
will reflect the additional costs. Mary recommended approval at the January 16d' council meeting.
The resolution will be on the council agenda on January 166'
.
Announcements:
Appointments to the Emergency Services Committee will be on the January 16a' council agenda.
Mark Mace expressed appreciation to the department heads for their work. Other council members
also stated their appreciation.
A City-County Joint Meeting is scheduled for Thursday, January 25`h, at MSU-Billings Downtown
Campus from 5:30 to 8:30 p.m. All six council members, Mayor Olson, Perry Asher, and Steve Klotz
will attend the meeting. There was discussion regarding the City of Laurel's agenda item for the
meeting. The 12a` Street walk bridge will be submitted as the agenda item.
4
Council Workshop Minutes of January 9, 2007
The Tree Board and some city employees will observe an internet presentation regarding Arbor Day
and tree planting in the council chambers on Wednesday from 9:00 to 11:00 a.m. Steve Klotz
submitted a Tree City USA application for the City of Laurel and should receive the designation soon.
Attendance at the January 16th council meeting:
All six council members will attend the council meeting on January 16'h.
Chief Musson updated the council on the situation with the e-mail threat received at the Laurel High
School during the past week. Charges will be filed when all the information has been compiled.
Mayor Olson expressed appreciation for the great job the police officers did on this case.
The council workshop adjourned at 8:14 p.m.
Respecztffuulrlyy submitted,
peO aZgZ--,`
Cindy Allen
Council Secretary
NOTE: This meeting is open to the public. This meeting is for information and discussion of
the Council for the listed workshop agenda items.
5
t . MOFMSON
IC J' MMERLE, iNc.
An Employee-Owned Company
January 5, 2007
COPY ENGINEES
SCIENTISTS
SURVEYORS
PLANNERS
315 N.251h STREET -SUITE 102 -BILLINGS, NIT 59101-406-656-6000 -FAY-'406-656-3432
Honorable Mayor Kenneth Olson, Jr. and Laurel City Council
PO Box 10
Laurel, MT 59044
Re: Canyon Creek Ditch Crossing
2006 Wastewater Improvements Project, Laurel, Montana
MMI # 0703.011.08
Dear Mayor Olson and Laurel City Council:
? IT,
V,
f
2001 ! i
t !r 1_.
As you may be aware, during construction of the above referenced trunk main project, an
elevation discrepancy was discovered at the Canyon Creek Ditch crossing. Based on -
observations during construction, it was apparent that the trunk main crossing at this ditch as
designed would have obstructed the water flow in this ditch to some.degree. As a result, the
design needed to be modified. This design modification involved a change order with the
Contractor for some additional work and other work that would have been required in the
original contract if the design had incorporated these changes previously.
Upon review, it appears that the design was based on insufficient information. During design, it
was not possible to adequately determine the elevation of the ditch bottom at the ditch crossing
because water was flowing in the ditch at the time. However, we should have noted this
difficulty and found another way to determine the critical elevation. Ina case such as this,
Morrison-Maierle is fully prepared to stand behind our work and negotiate a fair settlement for
the discrepancy.
The original design included a structure on either side of the ditch with the trunk main
transitioning from a single 42-inch pipe to two 30-inch pipes to get under the ditch. The
contractor installed the two 30-inch pipes a distance of approximately 40 feet from the southern
structure (about halfway between the structures) when our RPR discovered that the top of the
30-inch pipe was 12 to 18 inches above the bottom of the ditch. Obviously, these pipes would
have obstructed the flow of water in the ditch to some degree.
This new information prompted Morrison-Maierle to quickly evaluate alternatives for this
crossing. With the Owner's representative's approval, we re-designed this crossing and
instructed the Contractor to provide a cost for the revised crossing. We presented the options to
the Owner's representatives, Larry McCann and Perry Asher, on November 29th and they gave
verbal approval for the Contractor to proceed without a firm price.
The total cost for all of the change order work provided by the Contractor is $53,355. This cost
includes the cost of the agreed to alternative for crossing the ditch with four 20-inch pipes rather
than the two 30-inch pipes as originally designed. Also included in the total is the cost for the
Contractor to remove the 80 feet of pipeline installed. Additionally, the Contractor had to
purchase the entire length of 30-inch pipe as indicated in the original design that is not
VA0703\011.08 Trunk Main\Construction Docs\Corresp\Client\Laurel - Ditch Crossing Change Order.doc
"Providing resources in partnership with clients to achieve their goals"
a MORRISON
iA MAIERLE, INC.
Mayor Olson and Laurel City Council
January 5, 2007
Page 2
returnable. Therefore. Morrison-Maierle should be responsible for the cost of the installed 30-
inch pipe, the cost to remove the installed 30-inch pipe, and the material cost for the 30-inch
pipe that was purchased but not installed. The remainder of the cost for the revised crossing
should be the responsibility of the Owner regardless of whether it was bid with the original
project or completed as a change order.
If this approach is acceptable to the City, the costs for the items that would be Morrison-
Maierle's responsibility are as follows:
• 80 ft of 30-inch pipe installed @ $170/ft $13,600.00
• Trench plug installed $1,300.00
• Item 1 of C.O. #2
(remove installed work, salvage pipe to MMI, pipe material cost) $4,972.00
• Furnish and install PVC pipe 1 LS @ $6471
(Schedule 1A, 56 percent installed) $3,623.76
Total MMI cost $23,495.76
In this case, we believe the Owner should pay for the cost of the work that was ultimately
installed for the crossing. In other words, any work that was done that would have been needed
without any design discrepancy should still be paid by the Owner since it benefits the Owner.
The legal term for this concept is betterment and it simply means that if the Owner receives a
benefit for the work, that the Owner should pay the fair value of that work. Specifically, Exhibit I
of our contract, paragraph 16.11.13.2 states that "In no event will the ENGINEER be responsible
for any cost or expense that provides betterment, upgrades, or enhances the value of the
project." However, we also believe that the Owner should not have to pay for the cost of the
work that was not incorporated into the modified crossing as a result of our design discrepancy.
This work included the cost of the 30-inch main installed, the cost to remove this work since it
was not incorporated into the final design, and the cost of the materials that are not incorporated
into the final work product.
A summary of the total cost to the City of Laurel is included on the attached spreadsheet. This
table shows the original cost based on the bid from COP Construction and the revised contract
price based on Change Order No. 2 and the revised bid quantities. The total cost to the City of
Laurel for this design modification once Morrison-Maierle pays its share will be $17,919 if this
approach is acceptable.
Please note that this cost assumes that Morrison-Maierle takes possession of approximately
140 feet of 30-inch pipe. In all honesty, we are not in the pipe business and would prefer not to
take possession of this pipe. If Laurel might have a current or future use for this 30-inch pipe
and would prefer to retain possession of this pipe, Morrison-Maierle is prepared to offer this pipe
to the City of Laurel at 50 percent of the original purchase price or $4,130. When the next
phase of the truck main is replaced, the City will need a significant quantity of this size of pipe.
If Laurel would like to purchase the pipe, the City's share would be $22,049 and Morrison-
Maierle's cost would be $19,365.76.
V:\0703\011.08 Trunk Main\Construction Docs\Corresp\Client\Laurel - Ditch Crossing Change Order.doc
MORRISON
MAIERLE, INC.
Mayor Olson and Laurel City Council
January 5, 2007
Page 3
Please let us know if this cost sharing approach is acceptable and whether the City of Laurel
would like to retain ownership of the 30-inch pipe. We hope that this letter addresses any
concerns that the City may have and also that this letter reflects our desire to maintain our
strong working relationship with the City of Laurel.
Please let me know if you have any questions or would like to discuss this matter further. We
are available to meet with the Council at your earliest convenience.
Sincerely,
MORRISON-MAIERLE, INC.
Carl J. 4cle n, P.E.
Vice-Preside t, Office Manager
Enclosure
cc: Perry Asher, Administrative Assistant - Laurel
Larry McCann, Director of Public Utilities - Laurel
V107031011.08 Trunk Main\Construction DocslCorresp\Client\Laurel - Ditch Crossing Change Order.doc
`o
o o O o 0 0 0 0 0 0 0l o oo olm m
0 0 l
0 0 0 0 00 0 0 0 0 oo olr r
0 0 0 W 0 0 N O
I
W
N
O
O I M
m
O
1()
O
M
OI
OJ
r
•7
A
r
N
M
00
m M
0
0
r
01
O
pz
r10
l
m
0N
M l m
?
O)
Q
? Oi 0 tD N M ?- O O V O ? c -;fiM ?-
M M
H l I
o °o? °o 0 0 oo?aio o a o oo
°
°
°
i
l
1O
r
i
°
1O
n
° ,
° M
N
'C n i
n
m o
O ?
V u
i
M r
i
u
?
O
rlm O> 0 O> •- o
Cli m
va ? w f ? e}iin w i? I csr ? es
i i
O
J
I co
J to
J
i co
J iQCg
J
J co
J w
J U
J Q
IL co
J
.
' N N E ?NI? ? ', I O
C i
I
I I ? I ?
? ! I
a i
I a
m m ` w
V i j m w
g I
( QQ t
= ? N m m
Y Y O L d C r I d
_- o d W
U U N L r2 E m
C
O
C
O
;
m W
d
N
m
A
W
?
a
.
d
?
a
N ..
d
y
d
C
£ w c V i C ji
?I I
I c ? '
'I d 2 a W N
W d 3 O 3 Q O w w m N M
.2-
O
U
m
- O
O
w
S
o
L
) g,
a c Q ? U ? c Q O m m s
I I m c ? m
•N C fA # m d C W N # N .W-. c •C
CO
O
>
`
U li
d
W
U
v
?
2 I
o
0
d
io
c
'
-
o a
w
o U
L
m .-
W MI
Co U
i m a
d U
o >
f ?
co U
o m
m
d
e
y
.c
u
Q
? l m > ? c'i ' I- Es
d m
0
Z
p
9 c
O
d c
W
ry W3
Wi E
d
O a
O
dl
p
l- t
U 9
O
m O I M ZI U? D I- w U e z UI K F U i2 I xI m
?I co)
I-
m? 3 o I
i
[ s
a
l r
o
,.'?:k: MORRISON
L1, AA MMERLE, INC.
An Employee-Owned Company
January 5, 2007
Mayor Ken Olson and City Council
City of Laurel
P.O. Box 10
Laurel, MT 59044
C Y
2020 GRAND AVENUE • BILLINGS, MT 59102 • 406-656-6000
Re: Additional Engineering Costs
2006 Wastewater Improvements Project
MMI #0703.011.08
Dear Mayor Olson and Council Members:
ENGINEERS
SCIENTISTS
SURVEYORS
PLANNERS
FAX: 406-656-3432
C'E11WFEZ I-F
Li L' I i u J A Ia 8 2007
I Y !; 1 ,11Ir;l:..,
During the course of the 2006 Wastewater Improvements Project, Morrison-Maierle, Inc. has
incurred engineering costs outside of or in addition to the scope of services covered in Task Order
No. 8. We would like to request authorization to use the contingency phase established in this
task order for these engineering costs. The extra costs are summarized as follows:
• Cost of living increase from August 2006 to end of project $1,877.88
• Sanitary sewer main re-alignment $1,926.50
• Cost share of inspection time for Canyon Creek ditch crossing $2,640.00
Total $6,444.38
An attached spreadsheet provides a more detailed cost summary of these three items. The first
item has occurred with the delay in bidding and construction of the project. The Master
Agreement under which this task order was signed allows for an adjustment in the standard
hourly rates and reimbursable expenses which can be adjusted annually as of August to reflect
equitable changes in the compensation payable to Morrison-Maierle. A cost of living increase of
4% has been applied to the labor budget remaining after July 2006.
The second item covers the cost of an engineering re-design, re-staking, and revised easements to
move the sanitary sewer main west of Bernhardt Road to manhole #13 10 feet north. A conflict
with a fiber optic line was encountered during construction that resulted from an incorrect utility
locate of a fiber optic line during design. Although the shift in the sewer main did not result in
extra construction costs, additional engineering costs were incurred.
Finally, we would like to propose a cost share on the 8 days of contract time requested by the
contractor for the revised Canyon Creek Ditch crossing. As with the additional construction costs
for the crossing, this cost would have been incurred had the crossing originally been designed as
revised with Change Order No. 2, not counting the time to remove previously completed work.
According to our Resident Project Representative, the completed work was removed in one to
two days. Under the circumstances, however, we would be willing to split this time with the
city.
V AO703\011.08 Trunk Main\Conshuction Docs\Cornsp\Clien0laurel Itr-010507-mg.doc
"Providing resources in partnership with clients to achieve their goals"
''I MORRISON
MAIERLE, INC
Task Order No. 8 established a contingency phase with a budget of $4,694 with the stipulation
that it could only be used with written authorization from the City of Laurel. At this time we
would like to request written authorization to use this budget for the items outlined above. A
contract amendment will be issued to address the difference of $1,750.38. Please advice if this is
acceptable and if further discussion is needed.
Sincerely,
INC.
P.E.
Office Manager
cc: Perry Asher, Administrative Assistant - Laurel
Larry McCann, Director of Public Utilities - Laurel
Encl: Additional Engineering Cost Summary
VA0703V 1.08 Tmnk Main\Construcdon Docs\CmmPp Client\ aurel ltr-010507-eng.doc
City of Laurel
2006 Wastewater Improvements Project
MMI #0703.011.08
Additional Engineering Cost Summary
1. Cost of living increase for 8106-8/07 as allowed by Master Agreement
Cost of Living
Amount Increase Total Cost
Budget remaining after 7106, not including contract $46,946.91 4W $1,877.88
amendment amount = $46,946.91
Subtotal $1,877.88
2. SS Main Realignment from Bernhardt Rd. west to SSMH #13 due to incorrect fiber optic location
from design utility locates - work includes revise dwgs. C-3 and C-4, re-stake new alignment, revise
easements, and a field order
Time hrs) Rate Total Cost
11/2712006 Duane S. 4.5 $68.00 $306.00
1211/2006 Duane S. 0.5 $68.00 $34.00
12/4/2006 Duane S. 4 $68.00 $272.00
11/27/2006 Joel S. 5 $61.00 $305.00
1112112006 Stephanie S. 2.5 $85.00 $212.50
1113012006 Stephanie S. 1 $85.00 $85.00
1112712006 Mike G. 2.5 $75.00 $187.50
11/28/2006 Mike G. 4 $75.00 $300.00
12/4/2006 Mike G. 1.5 $75.00 $112.50
Mileage (miles) 35 $0.65 $22.75
Tech. Charge 25.5 $3.50 $89.25
Subtotal $1,926.50
3. Split on MMI RPR time of 8 days for Canyon Creek Ditch Crossing (M
half) MI pays half, Laurel pays
Time hrs Rate Total Cost
Larry W. 32 $79.00 $2,528.00
Tech. Charge 32 $3.50 $112.00
Subtotal $2,640.00
Total $6,444.38
VA0703V 1.08 Trunk MainlConstruction Docs1070301108-extra eng costs.xls 1 of 1