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HomeMy WebLinkAbout1963 09 13 CC MIN1963 09 13 CC MINHÄ—@¸—+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.) 00- 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 00- 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) BIB] 39561-U01 1963-U02 09-U02 13-U02 CC-U02 MIN-U02 LI1-U03 FO9994-U03 FO115492-U03 DO116780-U03 C4-U03 MINUTES1-U03 4/22/2008-U04 ROBIN-U04 ADJOURNED-U05 CITY-U06 COUNCIL-U06 1963 09 13 CC MINHÄ—@¸—+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) BIB] 39561-U01 1963-U02 09-U02 13-U02 CC-U02 MIN-U02 LI1-U03 FO9994-U03 FO115492-U03 DO116780-U03 C4-U03 MINUTES1-U03 4/22/2008-U04 ROBIN-U04 ADJOURNED-U05 CITY-U06 COUNCIL-U06 1963 09 13 CC MINHÄ—@¸—+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 00- 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. 00- 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 00- BIB] 39561-U01 1963-U02 09-U02 13-U02 CC-U02 MIN-U02 LI1-U03 FO9994-U03 FO115492-U03 DO116780-U03 C4-U03 MINUTES1-U03 4/22/2008-U04 ROBIN-U04 ADJOURNED-U05 CITY-U06 COUNCIL-U06 1963 09 13 CC MINHÄ—@¸—+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. 00- 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+. 00- 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 00- 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. 00- 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 00- At 1:05 p.m. the Council reconvened to regular session. 1:05 P.M. CITY COUNCIL RECONVENED TO REG. SESSION 00- 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 BIB] 39561-U01 1963-U02 09-U02 13-U02 CC-U02 MIN-U02 LI1-U03 FO9994-U03 FO115492-U03 DO116780-U03 C4-U03 MINUTES1-U03 4/22/2008-U04 ROBIN-U04 ADJOURNED-U05 CITY-U06 COUNCIL-U06 1963 09 13 CC MINHÄ—@¸—+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 00- 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 00- 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. 00- 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- BIB] 39561-U01 1963-U02 09-U02 13-U02 CC-U02 MIN-U02 LI1-U03 FO9994-U03 FO115492-U03 DO116780-U03 C4-U03 MINUTES1-U03 4/22/2008-U04 ROBIN-U04 ADJOURNED-U05 CITY-U06 COUNCIL-U06