City-Wade Trim reach settlement
on sewer project snafu

Following months of negotiations, the City of Marlette has reached a settlement with Wade Trim Engineering on final costs for the federally-mandated Wastewater Treatment Plant project.

In effect, Marlette will receive an estimated $100,250 back from Wade Trim for what it deemed a series of errors and omissions as the $5.6 million project unfolded. In turn, the contingency fund of $471,492 has been spent on the project.

At the request of Wade Trim, city officials did not originally divulge terms of the settlement as council added the agreement to its April 21 agenda, quickly adopting it on a unanimous vote and then moved on to other subjects.

However, Marlette City Manager Steve Schaub later unveiled the terms of the settlement under a Freedom Of Information request made by The Marlette Leader.

“I think the agreement is unprecedented. This is a good deal for the city. This allows us to complete the job within budget and at no extra cost to the city.

‘We have used up the entire contingency which was included in the $5.6 million. Their belief is that there as a large contingency built into the project for a number of reasons among them the time to get it sent to the DEQ and the retrofit of old and new technology and for unforeseen things that come up.

“They have offered to finish some things at the plant on their dime, so to speak, rather than ours,” Schaub said.

Schaub noted that Infrastructure Committee Chairperson Ron Elliott and himself met with Wade Trim officials on April 11th in a last ditch effort to avoid having the case go to court. This was the third, and best, offer made by Wade Trim.

“Wade Trim acknowledged that there were issues, but that they were standing behind the city and that the job gets done right and everybody is happy. I think we’re there.

“Litigation is never a good idea because you are not sure where it is going to go. A lot of it came down to personal beliefs on what is a contingency fund and how is it supposed to be used,” Schaub said.

Throughout the project, there were nearly 50 requests for information, many of them resulting in change orders and, typically, additional costs to the city which ate up the large contingency fund.

The project is nearly complete and should be so within a short period of time. Schaub added that Wade Trim remains the engineer of record for the City of Marlette.

“We have nine months left on some of the warranties out at the plant. Part of the reason to settle and to keep them on as our engineer is that if something goes wrong they are at the plant and it is part of their job,” Schaub said.

There are no terms in this settlement which commits the city to retain Wade Trim as its engineer.

Under the terms of the agreement, Marlette will receive $18,000 in design phase engineering services for an estimated $300,000 2008 Marlette City Street Improvement Project along with several outstanding WWTP items including $20,600 towards site paving, $6,750 for site restoration, $29,400 for the expedition of the MCC Panel, $5,000 for the motorized damper and controls, $15,000 for CT cabinet upgrades, $2,500 for Make Up Air Unit Controls and $3,000 for the remaining door hardware and installation.

“In my mind, it really is an unprecedented deal. We got back 43% of their design costs.

“From day one Wade Trim knew there were some issues, yet they stepped up to the plate and did what is right and best for the citizens.

“Most projects that I have Continued on page three seen in 20 years come in over budget, but this one came in on budget. Thanks to the agreement and the efforts of Skyline, Teltow and Wade Trim we finished the project within budget and with no additional cost to the taxpayer. There were some bumps in the road sure, but the project is done right and on budget,” Schaub said.

As city officials refinanced the old debt retirement portion of the wastewater treatment plant project, the bond re-issuance of $1,637,000 brings the total project costs to $7,337,000.

On the current project, the city paid Skyline Construction $4,289,556 and Teltow Contracting $526,032. Wade Trim was paid $468,400 for the basic engineering work, $69,600 for additional work and $193,000 for inspection services. In other news, council also opted to purchase a new police car and pickup for city workers, but not before a discussion on whether or not to seek bids on the proposal.

On a 4-2 vote, council opted to purchase a new Ford police car for approximately $20,000 and will replace the 1991 Kodiak dump truck with a new Chevy pickup with plow at an approximate cost of $27,000. Both items are in next year’s city budget.

Schaub informed council that the Marlette Department of Public Works employees visited area car dealers and determined that the Chevrolet would best suit the needs of the department. Therefore, the motion made by trustee Dennis Cargill was to acquire both vehicles, without going out for bid.

“All the reasonably close dealers ought to get a shot at it. It is the taxpayer’s money that we are pending. Sometimes, preferences of the driver, it may be what they want, but we are spending the taxpayer’s money,” trustee Chuck Zampich said.

Schaub argued that he would be happy to go out for bids, but that wasn’t necessary as there is only one Chevy dealer in Marlette. The issue was adopted with trustees Bill Kmet, Steve Quade and Elliott joining Cargill and trustee Dale Moshier casting a no vote along with Zampich.

The city council also received some bad news as it was informed that Flynn Township has withdrawn from the Marlette Fire Authority.

Schaub, who is a member of the Fire Authority, informed council that Marlette’s additional share due to this change will come to around $2,500 per year.

Reportedly, Flynn Township will get its fire protection through Brown City and estimated that it will save around $4,000 annually.

Previously, 12 sections of Flynn Township were covered in the Marlette Fire Authority agreement.

Elliott noted that a new agreement should be worked out with all parties involved noting that when one entity departs, it creates a financial hardship for those that remain as they work to pay off debts. Ironically, one of the apparent reasons that Flynn Township left the Marlette Fire Authority was that it felt that Marlette was not going to purchase new fire fighting equipment. Schaub noted that the Marlette Fire Authority will still assist on fire calls, but at a price.

“It will be $1,000 per hour for the first hour and then billed in one-half hour increments thereafter. If they call, we are going to go. If they don’t call we will not be going.

“When Burnside (Township) looked at the cost of mutual aid and their residents said they didn’t want to have to wait for the Brown City department to get out there, they changed their minds.

“It is not a mater of the MFA not wanting to protect people’s lives and protect people’s property. It is a matter of economics,” Schaub said.

Schaub added that Marlette will be able to lower its rates in seven years when the new Marlette Fire Hall is paid off.

“There is $165,000 in the budget and $68,000 is for the hall. It was built to be a 100 year building and a shelter and command post in case of a community emergency.

“Seven years from now Marlette will be cheaper than Brown City when we pay off the hall,” Schaub said.

Council also appointed Lou Sauder to an opening on the Marlette Park Board, heard from Schaub that he attended his first Sanilac Economic Alliance meeting with Schaub noting that the agency hopes to hire a new coordinator by May and heard that the new flag pole at city hall will soon be lit with the flag flying at all times.

Wednesday, April 23, 2008