09-03-1986 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
WEDNESDAY, SEPTEMBER 3, 1986
The special meeting was called to order by Vice -President Carls at 7:10 P.M.
Present were: Vice -President Mike Carls, Alderman John Mlinar, Alderman Marlin
Torgerson, Alderman Pat Mikulecky (arrived at 7:40 P.M.), and Mayor Paul L.
Ackland (arrived at 7:15 P.M.). Also present: City Administrator Gary D. Plotz,
Director Ralph Neumann, Finance Director Kenneth B. Merrill, Plant Operator
Randy DeVries, and Mike Hoff, Don Roecker, and Jim Miller of Donohue & Associ-
ates.
City Administrator Plotz stated the City Council had requested a survey of en-
gineering fees and a report on which City employees would be available to work
on the new wastewater treatment plant during the construction phase. He had
been informed that the Building Department would not have time to do any work
on the project.
Mr. Jim Miller commented on the proposed time schedule. He stated April 1, 1987
was the target start date, with a 20 month construction schedule. There would
be a need for three full-time employees for the project. Approximately three
additional City employees will be needed to operate the new plant. Mayor Ack-
land commented that no City employees would be put into the project, but he
requested that contingencies be added to the project.
Mr. Don Roecker reported there were new developments at MPCA, and July 1, 1988
would be the date for compliance. He stated preliminary papers had been sub-
mitted to the MPCA for a review process, and within the next 45 days they want a
draft. It was pointed out that all areas must be covered when the "package" is
submitted to MPCA, including the scope of work and the costs for the project.
The grant would be for $8-9 million, and the funding will come from the
U.S.E.P.A. office in Chicago. There will be a pre -application conference with
the State office within the next 30 days.
The estimated construction cost of the plant would be $12.8 million, with con-
tingencies, and it would be a $14 million operation. A reduction of staff on
the project would, of course, reduce the cost.
There was discussion on the grant percentage between the state and federal gov-
ernment programs. An inquiry was made to Donohue if their firm would be open to
negotiations for engineering fees. Donohue's profit on the contract was a fixed
fee, and the MPCA allows a weighted calculation based on the cost, which was 18
percent. They were estimating a 14-15 percent fee. The variables would be the
percent of the profit. The agreement with the City would be an open contract
with a ceiling price that could not be changed without the City's approval.
A question was raised regarding the status of the easements required for the
wastewater treatment plant site, and discussion followed.
During Council discussion relating to engineering fees, the suggestion was made
to contact the MPCA for information on engineering fee costs. It was also
suggested to contact RCM to determine what fee they would offer for Phase III.
1
CITY COUNCIL MINUTES - SEPTEMBER 3, 1986
Mayor Ackland commented people had discussed with him the Council's rejection of
the City Administrator and Community Development Director's attendance at a HCDC
workshop in St. Cloud, and the public couldn't understand what was accomplished
by this action. There was money in the budget to cover the expense. The ma-
jority of the Council did not wish to change their previous vote. Therefore,
City Administrator Plotz offered to take a vacation day to attend the meeting.
There being no further business the meeting adjourned at 9:35 P.M.
6