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09-15-88 Public Works Comm MinutesPUBLIC WORKS/PUBLIC SAFETY WATER AND SEWER COMMITTEE MINUTES September 15, 1988 10:00 A.M. Attendance: Chairman Gunnerson, Councilwoman Hafferman, and Councilman Schindler. Others Present: City Attorney Neier, DPW Hammer, Acting Building Official Kerzman, Construction Inspector Van Dyke, Surveyor Zavodny, Street Supt. Brady; Bruce Lutz of Architects Design; Jean Ulbricht, Montana State Electrical Inspector, Fred Baker, Northwestern Telephone, Gordon Taylor, Pacific Power and Light; Jay Billmayer and Bob Stauffer of Billmayer Engineering; Steve Cummings, Dan Murray, and Mike Majone of Murphy, Robinson, Heckathorn & Phillips Law Firm; Bruce Johnson, Patty Nikolaisen, Don Siblerud, Jim Thompson, Marla Robinson, and Bill Martel, all representing the Immanuel Lutheran Home. Chairman Gunnerson opened the Public Works, Public Safety avid Water and Sewer. Committee meeting with the following first agenda item. FIRST ALLEY WEST - CONDUIT INSTALLATION Mr. Baker stated Northwestern Telephone is proceeding as planned. It is intended to have the work order completed and submitted to the corporate office the week of September 19, 1988, Mr. Baker and Mr. Taylor spoke in regard to pole removal and pavement replacement. C. Gunnerson called for questions concerning telephone or power on First Alley West. DPW Hammer questioned the removal of utility poles and stated that EPA Regulations require total removal of poles including that portion underground. Mr. Taylor acknowledged the comment of DPW Hammer and confirmed that if poles were treated they would require total removal and anticipated that this would occur. DPW Hammer also questioned the amount of asphalt removal required to remove the poles. Mr. Taylor - stated that it would be minimal, probably one foot around the poles. Mr. Billmayer, Design and Construction Engineer, discussed gas main alignment. He and DPW Hammer have resolved problems. IMMANUEL LUTHERAN HOME - HOOKUP FEES City Attorney Neier and the Committee discussed the problems and concerns relating to the hookup fees for the Immanuel Lutheran Home. The hookup fees according to the rate schedule should be $60,000. The Immanuel Lutheran Home believes they were quoted a figure of $9,800 and will pay only $9,800. Mr. Cummings stated the building will be occupied in November. He requested the Committee to direct City Attorney Neier to prepare something that would enable the City to provide the services to the Immanuel Lutheran Home. City Attorney Neier stated the fact that the City turns the water on or leaves it on would not have any affect on the City's claim for PUBLIC WORKS/PUBLIC SAFETY/WATER AND SEWER COMMITTEE MINUTES PAGE 2 $60,000. It may adversely affect the City as well as Martel if the City refuses to provide services. DPW Hammer does not believe any fees have been paid to date. lie suggested the $9,800 hookup fee should be paid before anyone moves onto the premises. C. Gunnerson then gave direction to City Attorney Neier to draft a letter requesting the $9,800 hookup fee be paid prior to hooking up the sewer and water. The balance between the $60,000 and $9,B00 hooker fees to be resolved at a later date At this time everyone representing the Immanuel Lutheran Home excused themselves from the meeting. (Detailed Discussion Attached) FIRST ALLEY WEST - CITY STREET LIGHTS Construction Inspector Van Dyke stated the staff had received correspondence from C. Nystul and direction from Mayor Kennedy to address the lighting. DPW Hammer stated Mayor Kennedy requested the Public Works Department to respond and address six items which C. Nystul was concerned about in a memorandum to Mayor Kennedy. DPW Hammer and Construction Inspector Van Dyke inspected the site with Jay Billmayer. The Parking Commission requested Billmayer Engineering to address lighting in the alley and to proceed. DPW Hammer questioned on several occasions whether this had gone through the Council and to date it has not. The Public Works Staff is questioning if this Committee wants to recommend to the Council to put the lights back in the project. They are existing in the alley at present. C. Schindler questioned if the $27,000 was in the bid. DPW Hammer responded no. Bob Stauffer stated the Parking Commission was only originally concerned with parking lots. The Eagles parking lot and thc+ parking lot across from Valley Bank. Billmayer Engineering included light standards, conduit, and trenching for four standards for these parking lots. The remaining lights were not addressed. DPW Hammer stated the money is available for this. There is $217,000 of tax increment funding that the Council budgeted and DPW Hammer does not believe there is a project for this money. This money was budgeted this year and is not allocated. The approximate cost will be $23,000. Mr. Stauffer stated the standards and the conduit has to be decided soon. The cost for lights is only for lights and poles and does not include any installation charge. The cost of standards and conduit is all figured in place. C. Gunnerson questioned where $217,000 of tax increment funding is within the budget. DPW Hammer stated it is included in the budget F •PUBLIC WORKS/PUBLIC SAFETY/WATER AND SEWER COMMITTEE MINUTES PAGE 3 under redevelopment projects. C. Gunnerson expressed concern for the timeliness of the installation of conduit. He then requested DPW Hammer and COO Gallagher to have a_ Council presentation for the City Council meetinq of September 19. C. Schindler requested City Accountant Robertson attend the City Council meeting. Discussion of light placement then took place. The Committee requested Mr. Stauffer to prepare a cost estimate for two lights per block and to have this available for the September 19, 1980 Council meeting. FIRST ALLEY WEST - PLANTER BOX ENCROACHMENTS DPW Hammer stated there are two planter boxes adjacent to the buildings. The property owners when approached in April or May wanted to keep the planter boxes for landscaping purposes. The Public Works Staff is in agreement that they do not impede the flow of any type of traffic or pedestrian travel. Mr. Stauffer stated it was agreed that everything in the alley would •be returned to its original condition. C Hafferman moved the recommendation that the planter boxes be kept. C. Schindler seconded. The motion carried unanimously in favor. DPW Hammer stated for informational purposes this was discussed with the Mayor in regard to decorative street lights, trees, etc. The Mayor directed DPW Hammer to place the trees at the time of installing the curbs and sidewalks for 7B's Bar. The owner of the bar is bearing the cost of curb and sidewalk. If the $217,000 is available in tax increment funding, DPW Hammer recommends the decorative street lights be installedlat this time. C. Schindler questioned the necessity of the lights. The Committee made the decision to discuss decorative street lights at the City Council meeting of September 19, 1986. FIRST ALLEY WEST - CONDUIT DPW Hammer stated the design required all of the property owners to have their conduit underground. Iri the engineering contract it was not addressed for the City to be included in this requirement. The City's obligation would include the power source for the overhead lights, traffic signals, and the existing decorative street lights on Main Street. Mr. Billmayer has informed the staff this is the responsibility of the City. Construction Inspector Van Dyke has received one of three requested quotes for the City's portion. The approximate figure DPW Hammer stated is less than $5,000. The Committee questioned if the City's traffic sign and signals crew could install the conduit. DPW Hammer responded yes, but he did not •PUBLIC WORKS/PUBLIC SAFETY/WATER AND SEWER COMMITTEE MINUTES PAGE 4 believe the City would want to be held liable if anything went wrong. C. Gunnerson stated if there is an oversight in any contract it has to be absorbed. If this is the case, he does not believe the City should be held responsible to absorb the cost. C. Gunnerson requested City Attorney Neier and DPW Hammer to review the City's portion of the underground conversion. FIRST FEDERAL PARKING LOT Mr. Lutz presented a status report on the First Federal lot. Architects Design Group will submit a plan for the parking lot and landscaping. He will be meeting with CD❑ Gallagher regarding funding. C. Gunnerson recommended to utilize other sources for funding other than Tax Increment funding. Discussion then took place regarding the proposed site plan for the parking lot. (Paving, storm drainage, coordination, etc.) ROBERT MONK - DEVELOPERS EXTENSION AGREEMENT Discussion took place among City Attorney Neier and Canfflittpp. City htVC1r "Py wfP4f.r presented a brief history regarding the "lawsuit". There is an • outstanding amount of $10,000 due to the City. Mr. Monk has contacted City Attorney Neier to request of the Council to consider a trade for the balance of his four possible hook-ups at $2,500 each. City Attorney Neier stated Mr. Monk really has no defense in court. C. Schindler stated he did not want to negotiate a Developers Extension Agreement after it has been approved. C. Gunnerson recommend to the City Council to continue with the "lawsuit". ALLEY PAVING POLICY C. Gunnerson had received a telephone call from a concerned taxpayer and. he wanted to discuss Alley Paving Policy. C. Gunnerson expressed concern for budget constraints and exceeding budget. C. Schindler stated the only expense is labor as adjacent owners pay for materials. DPW Hammer stated that it costs more to oil alleys over several years then it does to pave as long as the property owners are paying for materials. In addition, with the so-called "air pollution problem in Kalispell", it is a benefit for the city if the property owner pays for the materials. C. Gunnerson stated he had no problem with the "policy" as long as it did not interfere with work load and budget constraints. It was agreed that the "policy" was still in effect. Adjourned: 12:15 P.M. 0 ss V • IMMANUEL LUTHERAN HOME September 15, 1968 Detailed Discussion HOOKUP FEES - City Attorney Neier gave a brief history of the hookup fees for the Buffalo Hill Terrace. The disagreement of the hookup fee is as follows. The original telephone conversation regarding the hookup fee was $9,800 by Andy Hyde, W/S Supt. At the time the plans were submitted, the Water and Sewer Department determined that the hookup fee, based upon the number of units, would be $60,000. As directed by Mayor Kennedy, City Attorney Neier sent a letter to Ivan O'Neil, Chairman of the Board of Directors of the Immanuel Lutheran Home. The letter discussed the problem and stated the City expected and presumed the $60,000 fee would be paid by the owner of the property as well as indicated the City would bring a suit to recover the $60,000. City Attorney Neier has been in contact with attorneys representing Martel Construction Co. and the Immanuel Lutheran Home. The people present in this meeting were in attendance to discuss the appropriateness of the fee as well as the letter sent by City Attorney Neier. Don Murray, Attorney for General Contractor Martel Construction, stated he will present the position of the persons present. Mr. Murray then introduced the persons present representing Martel •Construction, the Immanuel Lutheran Home, and Architects Design Group. Mr. Murray presented the Committee with a history ❑f chronological events through the use of an overhead projector. A summary of his discussion is as follows: The bid date was August 1, 1987, as far as the project owner and general contractor are concerned. Prior to the bid date, Dick Grover, Grover Plumbing and Heating from Missoula, was preparing their bid on the mechanical and plumbing work to submit to Martel who would then submit his bid to the owner. In a telephone conversation prior to the bid date, Mr. Grover discussed the sewer and water connection fees with W/S Supt. Hyde. Mr. Murray then presented notes taken by Mr. Grover. The figures on the notes taken were $9,000 for the sewer connection and $800 for the water connection. As was related to Mr. Murray by Mr. Grover, the figures were not firm. W/S Supt. Hyde referred Mr. Grover to Craig Kerzman, who discussed the type of connections, types of pipe, etc. Steve Grover, still uncertain of the fees, then spoke with W/S Supt. Hyde regarding the connection fees. Mr. Murray presented the notes of Mr. Grover taken on the bid date. At that time, Mr. Grover believed he had received the firm figures for the connection fees. It was stated that W/S Supt. Hyde confirmed he had given the figure of 10 $9,800 for the connection fees. Mr. Murray stated others had received similar quotes. In addition, that W/S Supt. Hyde stated the reason for the quoted figure could be one of two things: 1) At the time of the inquiry, he was unaware that the inquiry pertained to the Buffalo Hill project; that the inquiry posed to him was the charge for a 4" water and 8" sewer connect fee; and, 2) W/S Supt. Hyde was not -1- r:. y • acquainted with the scope of the project. Based upon chronological events, Mr. Murray stated their disbelief of the possibility of W/S Supt. Hyde or the City of Kalispell being unacquainted with the magnitude of the project. He referred to letters dating back to January 1987 as well as citing a recommendation given for a Conditional Use Permit to the City Council by Mr. Kerzman of the Kalispell Building Department which notes that the Buffalo Hill project is a multiple unit project. The scope of the project was described in general terms as a multiple unit purpose for the Public Hearing. Tom Cowan, Carver Engineering, had advised Mr. Murray he had multiple meetings with City of Kalispell representatives, specifically a meeting on site with W/S Supt. Hyde. ❑n August 20, the final plans were sent to DPW Hammer from Architects Design Group. Mr. Murray stated that based'upon this and additional evidence, W/S Supt. Hyde knew that the inquiry concerned the Buffalo Hill Terrace project and the "City" was aware of the magnitude of the project. Chairman Gunnerson questioned if the quote which was received by the individual was only received from W/S Supt. Hyde. Mr. Murray confirmed. Mr. Murray stated that telephone quotations are the way these • contractors conduct their business. A verbal bid is binding among contractors. He recited various court decisions and portions of various court cases in regard to contractor -subcontractor bidding procedures and rulings. Mr. Murray stated the City should. stand by its quote and recited a case decided by the Montana Supreme Court, pointing out that the defendant was the City of Kalispell. "The evidence was sufficient to support the Judge's finding that the Contractors justifiably relied on erroneous information provided to them by the City." (Stennerson vs City of Kalispell) Mr. Murray expressed his appreciation for the Committee's time. Discussion then took place regarding clarification of the sequence of events which Mr. Murray had presented. DPW Hammer stated W/S Supt. Hyde did not know this project was 100 units. It was actually a shock t❑ him when DPW Hammer received the final plans that it was 100 units. The water and sewer rates are for units not square footage. The Building Official had the plans in his office and it is unknown if the message was relayed regarding the 100 units for this project, nor would the Building Official understand the water and sewer rates. •DPW Hammer stated "quote" is not an appropriate word to use for a governmental agency. The City uses what the established rates and fees are in a schedule. In the Building Codes and Fire Codes it states if the Building Official or the Fire Marshall errs against the City, the City can still enforce the Code. :W9 • Jim Thompson spoke regarding the W/S Supt. Hyde and Tom Cowan meeting. There were extensive meetings on the site of the project prior to the final plans. The City Water Department and Architects Design met regarding the availability of water to service the project. He stated the various changes based upon the input by the City of Kalispell. C. Hafferman questioned if Martel Construction would interpret the $9,800 fee low for a 100 unit project for a City. The response was no, they had no reason to believe this was low price. Mr. Murray stated the $500 per unit charge is a new charge the City has imposed. C. Gunnerson said for this Committee to debate this situation without W/S Supt. Hyde present is an injustice. In addition, the City should take this into reconsideration and speak with W/S Supt. Hyde. Building Official Kerzman stated when the Building Department calculates building permit fees, they calculate the building permit fee, the plan review fee, and generally send a memo to W/S Supt. Hyde requesting the hookup fees. Mr. Cummings, Attorney, spoke in regard to the new rate schedule. He stated if thiswerea nursing home, extended care facility, or a hotel, all with 100 units, the rate would have been $9,800. The City • has classified the Immanuel Lutheran Home as 100 dwelling units avid is charged the higher number. C. Hafferman stated in comparison to this facility, a motel does riot have a community kitchen and would not use as much water or sewer. People who live in an apartment complex with a cafeteria will use inure water and sewer. Mr. Thompson stated maybe another classification should be sought for this complex to better describe the project. Mr. Cummings stated the building will be occupied in November. Fie requested the committee to direct City Attorney Neier to prepare something that would enable the City to provide the services to the Immanuel Lutheran Home. City Attorney Neier stated the fact that the City turns the water on or leaves it on would not have any affect on the City's claim for $60,000. It may adversely affect the City as well as Martel if the City refuses to provide services. DPW Hammer does not believe any fees have been paid to date. He suggested the $9,800 hookup fee should be paid before anyone moves onto the premises. C. Gunnerson then gave direction to City Attorney Neier to draft a letter requesting the $9,800 hookup fee be paid prior to hooking up the sewer and water. The balance between the $60,000 and $9,800 hookup fees to be resolved at a later date. -3-