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HomeMy WebLinkAbout10/06/87 Board of Public Works MinutesREGULAR MEETING OCTOBER 6, 1987 The regular meeting of the Board of Public Works was convened at 9:32 a.m. on Tuesday, October 6, 1987, by President John E. Leszczynski, with Mr. Leszczynski, Mrs. Patricia E. DeClercq and Mr. Michael L. Vance present. Also present was Chief Deputy City Attorney Thomas Bodnar. APPROVE MINUTES OF PREVIOUS MEETING Upon a motion made by Mrs. DeClercq, seconded by Mr. Vance and carried, the minutes of the September 29, 1987, regular meeting of the Board were approved. OPENING OF PROPOSALS FOR FINANCING AND CONSTRUCTION OF A PARKING FACILITY (N.W. CORNER OF E. WAYNE AND S. ST. JOSEPH ST.) Mr. Leszczynski advised that this was the date set for the receiving and opening of sealed Proposals for the financing and construction of an approximately four hundred forty (440) space parking garage to be located at the northwest corner of East Wayne Street and South St. Joseph Streets in downtown South Bend, Indiana. The Clerk tendered proofs of publication of Notice in the South Bend Tribune and the Tri-County News which were found to be sufficient. The following Quotation was opened and publicly read: PRIVATIZATION VENTURES 8200 Haverstick Road, Suite 155 Indianapolis, Indiana 46240 Proposal was signed by the following individuals: Underwriter: Raffensperger Hughes & Co., Inc. Brian Long, Director of Public Finance and Russell Breeden III, Executive Vice -President Consultant: Walker Parking Consultants Thomas A. Butcher, P.E., Vice -President Developer: Privatization Ventures, Inc. John M. Evans, President Engineer: Cole Associates, Inc. Louis J. Polman, P.E., President The Proposal submitted by Privatization Ventures, Inc., (PVN) indicated that it is for the financing, design and construction of the St. Joseph and Wayne Street parking garage on a lease basis. It further stated that PVN proposes to privately finance, design and construct a four hundred thirty-six (436) space parking garage in return for a long term fixed lease to be negotiated with the City. Two (2) different Scheme A parking garages are proposed to give the City a choice between a basic functional garage and an enhanced design with architecturally distinguishing facade. City operation and maintenance is assumed for both options. The Proposal further indicated that PVN's analysis of all available options has led to the conclusion that a lease rather than a lease purchase would result in the lowest cost to the City for bath annual and life cycle costs. They will not require G.O. backups for revenue sources and will reduce their lease amounts should T-Bill rates decline. Three (3) lease terms are offered giving the City the option to choose which lease best meets the City's needs. The Proposal is as follows: OPTION I - ENHANCED DESIGN GARAGE This option has a brick facade with architectural embellishments to the elevator enclosure on the corner of St. Joseph and Wayne Streets. The facade and level of exterior finish is assumed to be commercial grade similar to that found in Class A office structures. 1 REGULAR MEETING OCTOBER 6, 1987 11 1 OPTION II - BASIC DESIGN A basic design garage would have a concrete aggregate exterior without embellishments. The basic ramp design size and structure would be identical to Option I and would have the same exposed glass elevator at St. Joseph and Wayne Streets without the enclosure of Option I. Savings would result from the lack of brick facade and deletion of the elevator enclosure. Purchase of the land at $400,000.00 is included and will be adjusted to equal the actual purchase price determined during negotiations. LEASE PRICING ANALYSIS The Proposal indicated that in pricing the lease, PVN-RHC worked from the total issue amounts to analyze the structure of the lease in the manner requested by the City. The two (2) variables in the analysis are the term of the lease and the yield on U.S. Treasury Bills of the same term as the lease. A spread of 200 points is necessary to compensate for the taxable status of the Certificates of Lease Participation to be issued by PVN. Fluctuations in the yield on U.S. Treasury Bills would be reflected in the pricing by an equivalent upward or downward adjustment in the lease payment at time of closing the issue. At the time these lease price projections were prepared on October 2, 1987, the following yields on U.S. Treasury Bills were in effect. 15 year 9.78% 20 year 9.91% 25 year 10.02% Submitted with the Proposal were computer print-outs for lease terms of 15, 20 and 25 years for both Options I and II. The issue will be financed by taxable Certificates of Lease Participation issued by Privatization Ventures and underwritten by Raffensperger Hughes. The City will not pay anything until the garage is turned over for operation by the City. At that time, the first payment will be pro -rated for the remainder of the year which should be no more than three (3) months. All lease prices assume preferred status among other payments from the revenue source or a G.O. backing if funds are not consistently available. TOTAL ISSUE AMOUNTS Option I $4,070,000.00 Option II $3,900,000.00 It was noted that this includes all land costs, design and construction costs, development and project management costs, capitalized interest, underwriter and legal fees and all other incidental costs to the project. LEASE PRICING SUMMARY Term of Lease 15 years 20 years 25 years Average Annual Lease Payments Interest Rate Option I Option II 11.78 589,224 564,863 11.91 540,957 518,488 12.02 518,658 497,804 Upon a motion made by Mr. Vance, seconded by Mr. Leszczynski and carried, the above outlined Proposal was referred to the Department of Economic Development for review and recommendation. REGULAR MEETING OCTOBER 6, 1987 AND AWARD OF BIDS - SAI OF CITY -OWNED PROPERTY - AND 1613 SOUTH FELLOWS STREET Mr. Leszczynski advised that this was the date set for the receiving and opening of sealed bids for the sale of City -owned property at 1611 and 1613 South Fellows Street, South Bend, Indiana. The Clerk tendered proofs of publication of Notice in the South Bend Tribune and the Tri-County News which were found to be sufficient. The following bids were received: 1611 SOUTH FELLOWS Mr. Leszczynski advised that one (1) bid has been received from Herbert and Rebecca Swathwood, 1607 South Fellows Street, South Bend, Indiana, in the amount of $175.00. It was noted that the property has an appraisal value of $250.00. 1613 SOUTH FELLOWS Mr. Leszczynski advised that one (1) bid has been received from Herbert and Rebecca Swathwood, 1607 South Fellows, South Bend, Indiana, in the amount of $150.00. It was noted that the property has an appraisal value of $240.00. Mr. Vance stated that as the amounts bid are greater than one-half of the appraised value of the properties, he would like to make a motion that the above bids be accepted. Mrs. DeClercq seconded the motion and it carried and the matter referred to the City Attorney's office for the drafting of the appropriate Purchase Agreements. APPROVE COMMUNITY DEVELOPMENT ADDENDA The following Community Development Addenda were presented to the Board for approval: ADDENDUM I DEPARTMENT OF CODE ENFORCEMENT DEMOLITION ACTIVITY Addendum I indicates a time extension of the Contract until December 31, 1987 and allows use of remaining funds. ADDENDUM I NORTHEAST NEIGHBORHOOD COUNCIL, INC. NORTHEAST NEIGHBORHOOD CENTER ACTIVITY Addendum I adds $5,000.00 to the Contract amount for this activity. Ms. Betsy Harriman, Office of Community Development, advised that the $5,000.00 will cover various maintenance repairs and operating costs. Upon a motion made by Mr. Vance, seconded by Mr. Leszczynski and carried, the above Addenda were approved and executed. Mrs. DeClercq abstained from voting on this matter. APPROVE PURCHASE AGREEMENTS - SALE OF CITY -OWNED PROPERTY AT 239 AND 241 EAST BROADWAY Ms. Theresa C. Tyler, President, Habitat for Humanity of St. Joseph County, Inc., 1414 East Wayne Street, South Bend, Indiana, submitted to the Board signed Purchase Agreements for the above referred to City -owned property. It was noted that these properties are being conveyed to Habitat for Humanity for the sum of $1.00 each pursuant to I.C. 36-1-11-1 which allows the Board to sell City -owned property to not -for -profit corporations. Upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the Purchase Agreements were approved and the matter referred to the City Attorney's office for drafting of the appropriate Quit -Claim Deeds. 1 1 REGULAR MEETING OCTOBER 6. 1987 APPROVE MODIFICATION OF AGREEMENT FOR ENGINEERING SERVICES (COLE ASSOCIATES, INC.) Mr. Leszczynski advised that on April 30, 1984, the City entered into a Contract with Cole Associates, Inc., which indicated that Cole shall perform topographical surveys, traffic signal warrant analysis and design engineering services to be used in the compilation of construction documents acceptable by the Indiana Department of Highways in connection with six (6) intersections. It has been determined at this time that the work to be done at the intersection of Bendix and Voorde is no longer necessary. Therefore, the Contract entered into on April 30, 1984 and as modified on June 10, 1985, is hereby amended to exclude from services required any further services in connection with the intersection of Bendix Drive and Voorde Drive. Upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the Modification of Agreement, as submitted, was approved and executed. APPROVE REQUEST TO ADVERTISE FOR ?T OF BIDS - CONCRETE PAVEMENT REPAIRS 1987 PROJECT In a letter to the Board, Michael P. Meeks, Director, Division of Engineering, recommended that the Board advertise for the receipt of bids for the above referred to project. Mr. Meeks advised that the project entails miscellaneous pavement replacement within the City. Upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the above request was approved. AWARD BID FOR DE-ICING MATERIALS FOR STREET DEPARTMENT Mr. William S. Penn, Director, Division of Transportation, advised that he has reviewed the bids for the above referred to materials opened by the Board on September 29, 1987 and recommends the following awards be made: DOMTAR INDUSTRIES INC./SIFTO SALT DIVISION Rock Salt at $20.33 per ton THE LEVY COMPANY, INC. Calcium Chloride Slag Sand Mix at $12.95 per ton MORECO ENERGY, INC. Liquid Calcium Chloride at $.30 per gallon Mr. Leszczynski further stated that the City of South Bend reserves the right to purchase de-icing materials through the State of Indiana bid process if the State's bid prices are lower than the prices indicated above. Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, the recommendation as submitted was accepted and the bid awards approved. AWARD OF QUOTATION FOR CON ADDITION (MUNICIPAL SERVIC Mr. Leszczynski advised th construction of a storage Services Facility is being review. APPROVE CHANGE ORDER NO. 3 BASEBALL STADIUM PROJECT) UCTION OF A STORAGE B FACILITY) TABLED at the award of the quotation for the building addition at the Municipal tabled at this time for further - STEEL PACKAGE (CO KI REGIONAL Mr. Leszczynski advised that St. Joseph Valley Steel, P.O. Box 4511, Elkhart, Indiana, has submitted Change Order No. 3 indicating that the Contract amount be increased by $20,593.00 for a new Contract sum including this Change Order in the amount REGULAR MEETING OCTOBER 6, 1987 of $831,790.00. Upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, Change Order No. 3 was approved as submitted. FAVORABLE RECOMMENDATION - VOLUNTARY ANNEXATION Mr. Leszczynski advised that the Common Council has submitted to the Board of Public Works for review and recommendation a Petition for Voluntary Annexation for real estate located in St. Joseph County, German Township described as follows: That part of the East half of the Southwest quarter of Section 22 and the East half of the northwest quarter of Section 27 all being in T. 38 N., R. 2 E., German Township, St. Joseph County, more particularly described in the legal description contained in the annexation petition. Mr. Leszczynski further advised that various City departments and bureaus have reviewed this Annexation Petition and recommend approval. Therefore, upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the Clerk of the Board was instructed to forward to the Common Council a favorable recommendation regarding this Voluntary Annexation. REQUEST OF CURB CONNECTION TO PAINT STREET ADDRESSES ON CURBS - REFERRED In a letter to the Board, Mr. David A. Smith, 515 South St. Joseph Street, South Bend, Indiana, advised that he and his brother have begun providing a curb address painting service to the residents of the neighborhood around Scottsdale Mall and would like to continue to provide this service throughout the City and is requesting permission to do so. Upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the request was referred to the appropriate City departments and bureaus for review and recommendation. APPROVE AND/OR RELEASE CONTRACTORS AND EXCAVATION BONDS Mr. Melvin Humphrey, Engineering Department, recommended that the Contractors Bond for Richard Knauf be released effective October 6, 1987 and that the Excavation Bond for Willie Gandy, d/b/a B & B Sewer Cleaning be approved effective October 6, 1987. Upon a motion made by Mr. Leszczynski, seconded by Mrs. DeClercq and carried, the above bonds, as recommended, were approved and/or released. FILING OF ENVIRONMENTAL CLEAN-UP OF LOTS REPORT A report from the Department of Code Enforcement indicating a total of sixty (60) properties cleaned from September 28, 1987 to October 12, 1987 was submitted. Upon a motion made by Mrs. DeClercq, seconded by Mr. Vance and carried, the report as submitted was filed. APPROVE TRAFFIC CONTROL DEVICES Upon a motion made by Mrs. DeClercq, seconded by Mr. Vance and carried, the following three (3) traffic control devices were approved: 1. NEW INSTALLATION, CLOSING OF WIDENER LANE - 1001 East Widener Lane, East property line. 2. REMOVAL OF HANDICAP TOW AWAY - 1709 S. Douglas. (John Pecsi expired). 3. REMOVAL OF NO PARKING, REVISED TO 1-HOUR PARKING - West side of Twyckenham, Mishawaka Avenue to Chester. 4) 3 C 1 REGULAR MEETING OCTOBER 6, 1987 FILING OF CERTIFICATES OF INSURANCE Upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, Certificates of Insurance for Edward J. White, 1011 South Michigan Street, South Bend, Indiana and Small, Inc., 25190 State Road 4, North Liberty, Indiana, were accepted and filed. APPROVE CLAIMS Mr. John W. Ferguson, Executive Director, St. Joseph County Job Training Program, submitted a list containing one hundred twenty eight (128) claims and recommended approval. Additionally, City Controller Michael L. Vance submitted Claim Docket No. 14637 through Claim Docket No. 14818 and recommended approval. Upon a motion made by Mr. Vance, seconded by Mrs. DeClercq and carried, the claims were approved and the reports as submitted were filed. ADJOURNMENT There being no further business to come before the Board, upon a motion made by Mr. Leszczynski, seconded by Mr. Vance and carried, the meeting adjourned at 9:49 a.m. ATTEST: Sandra M. Parmerlee, Clerk • WEE. Leszcz31hiW1 - .PP 4&" e � a�� - Patricia E. DeClercq • Michael LAVance