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6. OLDIBUSINESS (Cont'd b. Report'on Newbill Construction Company: Mr. Crighton was requested REPORT by Commissioners in May 7th meeting to report on this contractor ON NEWBILL at this meeting. CONSTRUC- TION CO. Mr. Crighton advised for the past two weeks, they have been investi- gating all claims for payment against Newbil'1 Construction Company by the subcontractors, and are in the process right now of verify- ing these claims by these subcontractors, materials, and supplying us with a listing of the homes that they have either supplied materials for or labor involved. These letters are being notarized that they are in fact true and correct copies. We have apprised Chuck Leone in the City Attorney's Office of the situation since these are Model Cities contracts and the City Attorney is involved. We are taking steps to see that the matter is corrected as soon as possible. The Presiding Officer, Commissioner Wiggins, stated, as he understands it, the reasons for the inquiry were to determine whether or not we should consider the prospect of seeking other contractors for the work that this contractor has been awarded -- further down the line- - work that he hasn't even started at this point. "Is it your feeling, as a result of the investigations, that there is any possibility of his getting himself in solid condition and being able to fulfill -the contract that we have ?" Mr. Crighton advised that he really didn't know; that the stated events that we have is not conclusive to any extent. Mr. Brownell asked, "I think it looks somewhat doubtful doesn't it, Mr. Crighton, that he will be able financially to go ahead with the other contracts ?" Mr. Crighton advised it depends on how many verified debts we can get. We have three or four statements from subcontractors- - actual verified statements where they can prove that they supplied materials or labor for a given contract. Those are the only types of items that we can go on; we can't just arbitrarily accept subcontrac- tor's word that somebody owes him money, if he doesn't have an invoice or a contract, or at least an address of the property that he worked on. So right now, we only have four, and he stated Chuck Leone had instructed him to withhold payments on this contract until we get the matter straightened out. The Chair asked Commission Legal Counsel at what point do we need to make a determination, and Mr. Butler advised, at a point when we decide on the work that was awarded to him. This is in line with the general problem we have had in getting the contractors on the job as quickly as possible after the initial inspection, so that initial problems don't arise and also to protect the contractor so that his contracts don't increase, and apparently he is (this contractor) the successful bidder on a number of homes in the Southeast area? Mr. Crighton advised the Redevelopment Commission awarded Newbill Construc- tion Company four (4) rehabilitation contracts as a "conditional award" on January 2, 1976, because of the problems he has had with his bonding and the arrangement that was made to withhold 10% of the first contract. Further questions raised by Mr. Butler, answered by Mr. Crighton were: The contracts have not been executed yet; he has not supplied us with the information that is required (Contracts 11 /SECD, 12 /SECD, 15 /SECD - 12 -