Graham Jaehnig/Daily Mining Gazette Clean up work continues at the site of a February fire that destroyed the Village of Laurium's Department of Public Works facility. The Laurium Village Council began the process of building a new facility this week.

LAURIUM – The Laurium Village Council, Tuesday, unanimously approved a motion by Trustee Jeff Erickson, seconded by Trustee John Galbraith, to accept an initial proposal from Moyle Construction regarding a new Department of Public Works facility.

Village Manager Ian Lewis said Laurium officials had met with representatives from Moyle Construction last week to discuss the construction of a new public works facility.

“We wanted to just get some expertise on it, because none of us have expertise on constructing a new building from the ground up,” Lewis said.

He said the insurance adjuster’s rate was approximately $1.5 million, which he said, seems incredibly low for a building of that size. The former DPW facility was approximately 99,000 square feet.

During last week’s meeting, Moyle representatives said they were confident the company could assist the village in achieving a higher insurance settlement.

Andrew Kemper, Moyle engineering and project manager, said his company has extensive experience in dealing with insurance casualties such as what Laurium experienced.

“One of the things that we can do to work with you guys,” Kemper said, “is help represent you in your capacity with the insurance company to make sure that there is an equitable payment, to make sure that you are going to have the full funds that are going to be necessary to build another facility that the community will benefit from for the next hundred plus years.”

Moyle would also provide any engineering estimates, pre-construction services necessary – at no cost to the village — up to the point that “we get an understanding and agreement from the insurance carrier that the village will be equitably funded.

“At that point,” said Kemper, “what I would ask is that the village enter into a design-build contract with Moyle Construction then, to complete the engineering and ultimately construct a facility, turnkey for you.”

Kemper estimates the process would take about a year for the engineering and construction and estimated that three to four months would be required for dealing with the carrier prior to the 12-month engineering and construction phase.

The first step in the initial process would be to examine the insurance policy to learn what the village is entitled to.

“I would believe at a minimum, what you’re entitled to — and I’m speculating — I would imagine at a minimum, you are entitled to reconstruct a facility at least equal to the size of your current facility, meeting all modern standards and codes and modern efficiencies.”

Kemper suggested that the DPW building probably did not meet many current codes.

Lewis said the liability policy for the building was just under $3 million, with an additional blanket coverage to cover contents such as tools and equipment.

“Truthfully, it’s kind of tough for us to go any other way than the process (Kemper) outlined,” Lewis said, “because it would involve us hiring an engineer, likely hiring an attorney – we don’t have a ton of money just laying around, not without the insurance proceeds coming in and we

Graham Jaehnig/Daily Mining Gazette
Clean up work continues at the site of a February fire that destroyed the Village of Laurium’s Department of Public Works facility. The Laurium Village Council began the process of building a new facility this week.

Kemper said if Moyle was unsuccessful in coming to an agreement with the insurance carrier for the rebuild, the village and the company would part ways.

“You would owe us no compensation for that,” he said. “Whatever engineering and whatever services are necessary to represent you and the village to get this process going,”

If the council moves forward with Kemper’s suggestions, said Lewis, it does not lock the village into any type of contract.

Village Trustee John Galbraith said that the proposal presented by Kemper is a win-win-win situation.

“In what they’re willing to do for us, and then if it doesn’t work out, walk away and we don’t have to compensate them for anything. Anything else that we do, at this point, would be just wasting time.”