HomeMy WebLinkAbout1963 09 13 CC MIN1963 09 13 CC MIN HÄ—@¸— + ÈÍ«1371
ADJOURNED REGULAR MEETING OF THE BALDWIN PARK CITY COUNCIL SEPTEMBER 13, 1963
CITY HALL COUNCIL CHAMBER) 14403 East Pacific Avenue 11:30 A.M.
The City Council of the City of Baldwin Park met in ad-
journed regular session at the above place at 11:30 a.m.
Roll Cali: Present: COUNCILMEN BISHOP, HOLMES, ROLL CALL
MOREHEAD, TAYLOR AND MAYOR
BLOXHAM
Absent: CITY ATTORNEY FLANDRICK,
ASSISTANT CITY ENGINEER WELCH,
PLANNING DIRECTOR AND BUILDING
SUPERINTENDENT KALBFLEISCH,
FINANCE DIRECTOR DUNCAN AND
CHIEF OF POLICE BEST
Also Present: CHIEF ADMINISTRATIVE OFFICER
NORDBY AND CITY CLERK BALKUS
City Engineer Young arrived
at 12:05 p.m.)
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As there was to be discussion of Sewer District No. 62-A-I ALSO PRESENT
at the meeting the following were also present:
W. R. Kolberg, representing Stone & Youngberg, W. R. KOLBERG
Financial Consultants
Urban J. Schreiner, representing O'Melveny & Myers, URBAN J. SCHREINER
Legal Consultants
James Sims, representing Ivor Lyons and Associates, JAMES SIMS
Engineer of Work
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rj
1
Mr. Urban J. Schreiner stated that the meeting, as he under- REPORT BY URBAN J.
stood it, was to pertain to the brochures to be sent out SCHREINER RE ESTI-
following the adoption of the Resolution of Intention MATED COSTS 62-A-I
and approval of the Engineer's Report; that at the last
meeting regarding this brochure, August 27, 1963, the
matter of the assessment levy and the costs to be shown
in the brochure pertaining to the assessment levy were
discussed; that at that meeting the financial consultant
was asked what the minimum discount should be in accordance
with sound financing principles; that the Design Engineer
was asked what contingency factor should be in the estimated
assessment in order that the figure of $9.52 per running foot
could be reduced as much as possible; that the Council felt
$9.52 was high and would probably bring about a majority
protest on the proceedings if it were allowed to remain in;
that it was brought out that ten per cent 10%) or
approximately $.95 of the figure represented a five per
cent 5%) bond discount and a five per cent 5%) construc-
tion contingency; that the method of assessing the school
property was also discussed; that Mr. Pat Rosetti, of
Laurence Thompson's office had stated that the school
property could be assessed as other property that all
property should be assessed including County Flood Control
property).
Mr. Schreiner further stated that the meeting today was to
have a report In so far as possible on the $9.52 per running
foot; that Mr. Sims was going to confirm, if possible, the
statement he made that it would be possible to reduce the
cost by the five per cent 5%) allocated for construction
contingency; that Mr. Kolberg was going to check on what
the minimum bond discount could be and that he believed Mr.
Kolberg had advised Mr. Nordby that a two per cent 2%)
discount was the minimum amount that should be allocated
in accordance with sound financial principles.
Mr. Kolberg confirmed that this was correct.
Continued)
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1963 09 13 CC MIN HÄ—@¸— + ÈÍ«Adjourned Regular Meeting of the Baldwin Park City Council
Mr. Schreiner stated that this being correct, without
reference to the matter of assessment of publicly
owned property, eight per cent 8%) could be reduced
from the $9.52 per running foot $.801reduction); that
as far as the other changes in the brochure it was his
understanding that Mr. Rosetta had sent a revised copy
of the brochure to Mr. Nordby.
Chief Administrative Officer.Nordby stated he had re-
ceived a revised copy of the brochure, however, the
cost of the project had not been revised.
Mr. Schreiner stated he had discussed with Mr. Thompson
the matter of the publicly owned property; that Mr.
Thompson's estimate was that this would reduce the cost
$.12 to $.15 per running foot which would be in addi-
tion to the $.80 equaling $.97 reduction).
Discussion followed regarding the difference between the
estimate and the actual bid on 61-A-I.
Mr. Kolberg stated in his opinion the bids on 62-A-I would
be at least ten per cent 10%) less than the Engineer's
estimate, however there was no guarantee on this.
Mr. James Sims, representing Ivor Lyons and Associates,
stated the unit prices had been reevaluated; that by de-
leting $100,000.00+ the figure was brought down to
about twelve per cent 12%) more than what the job
would have cost if it was done at the same time as 61-A-I
considering the very likely increase in labor next year
around the first of May and including the increase
in cost of materials); that in their opinion if the
project went ahead immediately within the next two
or three months) a $153,394.85 reduction could be made
reducing bond discount contingency factor 3% and
construction contingency 5% equaling a total of 8%
reduction); that these reductions were based on con-
sidering the schedule of adopting the Resolution of
Intention on September 18, 1963.
In answer to a question by Councilman Morehead, Mr.
Sims stated the net construction estimate would be
$1,812,205.00.
Mr. Schreiner reviewed that from $9.52, the original
front footage estimated cost, on the basis of Mr. Sims
statement made at the last meeting that it would not be
necessary to show a five per cent 5%) contingency;
beyond that, on the advice of Mr. Kolberg from Stone &
Youngberg we are reducing another three per cent 3%)
from that as a result of not Including a five per cent
5%) bond discount contingency factor; that beyond that
Mr. Thompson advises that on a respreading of the assess-
ment to give full assessment to publicly owned properties
would estimate a difference of approximately $.12 per
running front foot less; that this brings the difference
of a total of $.97 below the $9.52 figure $8.55).
It was brought out by Mr. Schreiner and confirmed by Mr.
Sims that the unit prices are determined in such a way
that the total cost would have the contingency factor built
in contingency factor not listed as separate item).
It was the consensus of the Council that the revised
estimated figures were acceptable.
September 13, 1963
Page 2
REVISED COPY OF
BROCHURE RECEIVED
COST OF PROJECT
HAD NOT BEEN RE-
VISED
JAMES SIMS, REPRE-
SENTING IVOR LYONS
& ASSOCIATES
NET CONSTRUCTION
ESTIMATE
$1,812,205.00
CONSTRUCTION ESTiMATI
$8.55 PER RUNNING
FRONT FOOT
CONTINGENCY FACTOR
INCLUDED IN UNIT
PRICES
REVISED ESTIMATED
FIGURES ACCEPTABLE
TO COUNCIL
Continued)
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1963 09 13 CC MIN HÄ—@¸— + ÈÍ«4`3
Adjourned Regular Meeting of the Baldwin Park City Council September 13, 1963
Page 3
Chief Administrative Officer Nordby stated in his opinion RE CONTINGENCY IN
almost every engineer felt there should be some contingency CONSTRUCTION CON-
in the construction contract and asked if It would not be TRACT
safer to include a five per cent 5%) contingency and off-
set that by decreasing the construction cost; if bids come.
in low, the contingency automatically builds up by the
difference in estimate and contractor's bid, but if you
have identified In your total costs an amount which is
identified as a contingency, would there be one?
Mr. Schreiner stated that if the estimate prices were bid
there would still be an overage; that by putting in
the prices in the estimate slightly on the high side If
the bids come In low then a contingency would be developed
out of the difference between the estimate and the low bid.
Mr. Sims stated that the estimated prices represented twelve
per cent 12%) over 61-A-1 prices and in their opinion a
six per cent 6%) increase would probably be the actual
increase in cost; that a bidder would take into considera-
tion the amount of time he would be working under the in-
creased labor cost.
There was considerable discussion regarding the contingency ESTIMATED UNIT PRICE
factor wherein the Council agreed to leave the estimated LEFT AS PRESENTED
unit prices as they were presented, not setting out a NOT SETTING OUT
specific contingency item. SPECIFIC CONTINGENCY
ITEM
Councilman Bishop mentioned that when the City was completely
sewered, in his opinion, the proper procedure would be to SEWER MAINTENANCE
have a maintenance tax of $.01 or $.02 over all of the City TAX FOR CITY AFTER
and that there should not be a long term maintenance fund at CITY COMPLETELY
the present time. SEWERED
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Discussion followed regarding litigation as in 61-A-1 RE LITIGATION
wherein Mr. Schreiner stated the situation that existed
surrounding the contact for Dictrict 61-A-I was that at
the time the contract was offered to the contractor there
was already litigation-started; that in the event the
property owners again file suit to hold up the proceedings
for 62-A-I) the law provides, assuming the judgment comes
in for the City, for reasons due to circumstances entirely
beyond the control of the contractor and in the event the
City does not have funds to pay the contractor, that the
City can levy a supplemental assessment after all of the SUPPLEMENTAL ASSESS-
funds derived out of the first assessment have been paid MENT
out.
Councilman Morehead asked why the City could not have
waited until all of the funds were exhausted in 61-A-I
before there was an additional assessment.
Mr. Schreiner stated the contractor would have refused
to execute the contract which called for payments on
the basis of the old labor costs; that the Bill put through
legislature covers cases up to the end of the year, December
31, 1963.
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There was discussion regarding the laterals; that the
estimated cost was $140.00 each and this charge was not
included in the running foot estimate.
Mr. Sims stated that every lot whether developed or not
was planned to have at least one lateral.
ESTIMATED LATERAL
CHARGE $140.00
EACH
EVERY LOT PLANNED
TO HAVE AT LEAST
ONE LATERAL
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1963 09 13 CC MIN HÄ—@¸— + ÈÍ«Adjourned Regular Meeting of the Baldwin Park City Council September 13, 1963
Page 4
Regarding the intention of the Council concerning any surplus OPINION ON SURPLUS
money left over after the district was completed, Mr. MONEY TO BE LATER
Schreiner stated he would have an opinion for the Council
at the time of the adoption of the Resolution of Intention
or before) stating whether or not the decision of the
Council regarding this matter could be taken care of in
a change order.
In answer to Mayor Bloxham, Mr. Schreiner stated his
opinion was that any surplus should be put into a sewer
maintenance fund.
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Mr. Schreiner stated that the incidentals were based to INCIDENTAL ESTIMATEC
a large degree on the estimated cost of the job; that COST
he suggested that the consultants get together with
Mr. Nordby to go over the incidentals and scale the TO BE SCALED DOWN
incidental expenses down; that the estimate on incidentals
was now approximately $300,000.00+.
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COUNCILMAN HOLMES MOVED THAT THE ADMINISTRATIVE STAFF AND
THE CONSULTANTS BE INSTRUCTED TO PROCEED TO DRAW UP THE
NECESSARY DOCUMENTS BASED ON ALL ITEMS THAT WERE CONSIDERED
UNDER DISCUSSION TODAY. COUNCILMAN MOREHEAD SECONDED.
The motion carried by the following vote:
AYES: COUNCILMEN HOLMES, MOREHEAD,
BISHOP, TAYLOR AND MA''IOR BLOXHAM
NOES: NONE
ABSENT: NONE
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Discussion followed regarding date by which adjustments
could be accomp>ished wherein September 25th was decided
on as a tentat''e care.
MOTION MADE AND
CARRIED THAT ADMINIS
TIVE STAFF AND
CONSULTANTS BE IN-
STRUCTED TO PRO-
CEED TO DRAW UP
NECESSARY DOCUMENTS
BASED ON ALL ITEMS
THAT WERE CONSIDERED
UNDER DISCUSSION TO-
DAY
Mayor Bloxham asked Mr. Schreiner to contact Mr. Thompson COUNCIL INSTRUCTION
and then inform Mr. Nordby as to when Mr. Thompson's
office could have the revised figures computed.
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Chief Administrative Officer Nordby commented that he had
passed out to the Coundil a memorandum regarding a personnel
problem and suggested that a personnel session be held.
AT 12:50 P.M. COUNCILMAN MOREHEAD MOVED THAT THE CITY COUNCIL 12:50 P.M. CITY
ADJOURN TO AN EXECUTIVE PERSONNEL SESSION. COUNCILWOMAN COUNCIL ADJOURNED TC
TAYLOR SECONDED. There were no objections, the motion carried EXECUTIVE PERSONNEL
and was so ordered by Mayor Bloxham. SESSION
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At 1:05 p.m. the Council reconvened to regular session. 1:05 P.M. CITY
COUNCIL RECONVENED
TO REG. SESSION
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COUNCILMAN HOLMES MOVED THAT THE CITY COUNCIL CONCUR WITH MOTION MADE AND
THE RECOMMENDATION OF THE CHIEF ADMINISTRATIVE OFFICER AND CARRIED THAT CITY
THAT THE CITY COUNCIL RESCIND THE MOTION TAKEN ON SEPTEMBER COUNCIL CONCUR WITH
4TH WHICH DIRECTED THE CHIEF ADMINISTRATIVE OFFICER TO RECOMMENDATION OF
TERMINATE OFFICER JOHN MOREHEAD. COUNCILMAN BISHOP SECONDED. C.A.O. AND RESCIND
The motion carried by the following vote: MOTION TAKEN ON
Continued) Gontinuedi
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1963 09 13 CC MIN HÄ—@¸— + ÈÍ«Adjourned Regular Meeting of the Baldwin Park City Council
AYES: COUNCILMEN HOLMES, BISHOP, TAYLOR
AND MAYOR BLOXHAM
NOES: NONE
ABSTAIN: COUNCILMAN MOREHEAD
ABSENT: NONE
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Chief Administrative Officer reviewed Section 2904 of the
Baldwin Park Municipal Code.
MAYOR BLOXHAM MOVED THAT THE CITY COUNCIL CONCUR WITH
THE RECOMMENDATION OF THE CHIEF ADMINISTRATIVE OFFICER
IN HIS MEMORANDUM) ON SUBJECT NO. 2, SEPTEMBER 13TH.
COUNCILMAN HOLMES SECONDED. The motion carried by the
following vote:
AYES: MAYOR BLOXHAM, COUNCILMEN HOLMES,
BISHOP, MOREHEAD AND TAYLOR
NOES: NONE
ABSENT: NONE
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Councilman Holmes commented that the law provided for the
Council to have an executive session on personnel; that
when the confidential Information of the personnel session
is violated by someone it Is a serious thing; that anyone
attending the personnel sessions should be expected to main-
tain that confidence; that when evidence leaks out this can
be detrimental to everyone and that that type of thing
is Inexcusable; that he hoped his comments were well taken
by all; that there was no malice intended; but that this
was a matter that should be taken seriously.
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AT 1:20 P.M. COUNCILMAN MOREHEAD MOVED THAT THE CITY COUNCIL
ADJOURN. COUNCILWOMAN TAYLOR SECONDED. There were no
objections, the motion carried and was ordered by Mayor
Bloxham.
September 13, 1963
Page 5
SEPT. 4TH WHICH
DIRECTED C.A.O.
TO TERMINATE OFFICER
JOHN MOREHEAD
MOTION MADE AND
CARRIED THAT CITY
COUNCIL CONCUR WITH
RECOMMENDATION OF
C.A.O. ON SUBJECT
NO. 2, SEPT. 13TH
RE CONFIDENCE OF
PERSONNEL SESSIONS
ADJOURNMENT AT
1:20 P.M.
HUB H. BLOXHAM, MAYOR f THELMA L. BALKUS, CITY CLERK
APPROVED:
1963.
Date of Distribution to City Council
1963.
Date of Distribution to Depts. 1963.
1Z75-
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