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HomeMy WebLinkAbout07/29/86 Board of Public Works MinutesREGULAR MEETING JULY 29, 1986 The regular meeting of the Board of Public Works was convened at 9:36 a.m. on Tuesday, July 29, 1986, by Board member Katherine G. Barnard, with Ms. Barnard and Mr. Michael L. Vance present. Board President John E. Leszczynski was not in attendance. Also present was Chief Deputy City Attorney Thomas Bodnar. AGENDA ITEM STRICKEN Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, Change Order No. 1 (Final) and the Project Completion Affidavit for the Bendix Drive Concrete Pavement Repairs Project was stricken from the agenda at this time. APPROVE INTER -LOCAL GOVERNMENTAL AGREEMENT BETWEEN THE CITY OF SOUTH BEND AND ST. JOSEPH COUNTY, CONCERNING THE AE, INC. INDUSTRIAL PROJECT Ms. Loren Rooney, Economic Development Specialist, Department of Economic Development, advised the Board that in order to attract a major company to South Bend, St. Joseph County has made application to the State of Indiana for $337,000.00 in funds from the Small Cities Community Development Block Grant Program/ Industrial Development Infrastructure Program for an infrastructure project to be built in conjunction with the AE, Inc. project. The Industrial Development Infrastructure Program (IDIP) grant will be granted to the County to provide the off -site infrastructure improvements. Additionally, an Investment Incentive Program (IIP) grant will be granted to the City and, in turn, loaned to AE, Inc., to enable the company to purchase new production equipment. AE, Inc., a $16 million dollar manufacturing facility project, will be located in St. Joseph County. Prior to release of IDIP funds, the State of Indiana has required the adoption of the above referred to Inter -local Agreement between the City of South Bend and St. Joseph County. Ms. Rooney advised that the County Engineer will be responsible for administering said grant funds with the City of South Bend assisting in the monitoring. It was noted that AE, Inc., a British based company, will establish its first manufacturing facility in the U.S. The AE, Inc. project will create approximately seventy-five (75) new jobs, with fifty-one per cent (51%) or more benefiting low and moderate income persons. The majority of the $16 million dollar project will be financed by AE, Inc. Therefore, upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the Agreement as submitted was approved and executed. APPROVE MEMORANDUM OF UNDERSTANDING BETWEEN THE SOUTH BEND HOUSING AUTHORITY AND THE CITY OF SOUTH BEND Mr. Ted Leverman, Acting Director, Bureau of Housing, submitted to the Board for approval a "Memorandum of Understanding" between the South Bend Housing Authority and the City of South Bend in conjunction with the Rental Rehab Program. Mr. Leverman advised that the Memorandum is the final step in the application process for the $39,000.00 in federal rehab funds that HUD has made available to South Bend for 1986. Further, the Memorandum is a federal requirement of the Rental Rehabilitation Program as stated in the Federal Register. Mr. Leverman further advised that the Rental Rehabilitation Program provides incentive to investors to rehabilitate their properties by offering deferred loans at 0% interest for up to 50% of the rehab cost. In order to avoid displacement of REGULAR MEETING JULY 29, 1986 existing tenants, eligible lower -income tenants residing in the properties are given Section 8 Housing Vouchers to help them pay after -rehabilitation rents. The Memorandum of Understanding signed by Alonzo Watson, Director, South Bend Housing Authority states that as authorized by the South Bend Housing Authority Board of Commissioners, Resolution No. 2085 passed on July 22, 1986, the SBHA agrees to cooperate and assist the City of South Bend, grantee, in its Rental Rehabilitation Program. Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the Memorandum of Understanding as submitted was approved and executed. - AWARD BID - CAST IN PLACE CONCRETE PROJECT (COVELESKI REGI - FILING OF LETTER FROM REDEVELOPMENT COMMISSION REQUESTING THAT ED FOR STADIUM PROJECT AND CEEDS OF REDEVELOPMENT_ DISTRICT TAX INCREMENT REVENUE BONDS Ms. Barnard advised that in a letter to the Board, Mr. Neil A. Shanahan, Manager, Bureau of Public Construction, recommended that the Board award the base bid of Carl J. Reinke & Sons, Inc., 1216 West Sample Street, P.O. Box 3095, South Bend, Indiana, for the above referred to project in the amount of $1,057,500.00. It was noted that bids for this project were opened by the Board on June 24, 1986. Mr. Shanahan further advised that this award is being recommended subject to funding. At the present time there is $500,000.00 in funds available for this project. Mr. Vance stated that the Board is making this award based on the contractor being issued a Notice to Proceed for no more than the funds available at this time. In response to Ms. Barnard's inquiry regarding the beginning date for this project, Mr. Shanahan advised that work would begin in approximately two (2) weeks. At this time, Ms. Barnard advised that the Board is in receipt of a letter from Mr. Jon R. Hunt, Executive Director, Department of Redevelopment, in which he advised that Indiana law permits construction work carried out in connection with improvements in a redevelopment area to be made by the appropriate municipal agency if all plans, specifications and drawings are approved by that appropriate department or agency and the statutory procedures for the letting of contracts by that department or agency are followed. He further stated that it is the understanding of the Redevelopment Commission that the Board'of Works, as agent for the Park Board pursuant to the terms of the Agency and Escrow Agreement entered into by the Park Board, the City and Security Pacific National Bank on May 20, 1986, has previously advertised for and received bids pertaining to concrete and steel construction work for the Stanley Coveleski Regional Stadium Park pursuant to approved plans, specifications and drawings. He advised that the letter submitted to the Board today constitutes the request of the Redevelopment Commission that the Board of'Public Works proceed to award the contracts for the concrete and steel construction work to permit the initiation of the stadium construction at this time. The Redevelopment Commission intends to make available proceeds of the Redevelopment District Tax Increment Revenue Bonds of 1985 in an amount not to exceed $600,000.00 to permit the award of these contracts. It is the further understanding of the Redevelopment commission that the amount of funds expended for this 1 1 REGULAR MEETING JULY 29, 1986 1 construction will be reimbursed to the Commission upon the finalization of the financing with Security Pacific National Bank. Mr. Joseph Guentert, 3510 Corby Boulevard, South Bend, Indiana, inquired if the proposed financing arrangement outlined above could be considered a loan. Mr. Richard L. Hill, Attorney at Law, Parker & Jaicomo, First Bank Building, 205 West Jefferson, Suite 250, South Bend, Indiana, representing the City of South Bend on the Stanley Covelelski Regional Baseball Stadium Project, advised that the above referred to use of $600,000.00 made available through the proceeds of the $4.1 Redevelopment District Tax Increment Revenue Bonds of 1985 is a permissible expenditure of funds. He stated that the Redevelopment Commission can construct parks within a redevelopment area and the funds will be reimbursed. The designation of the funds as a loan is not accurate. Mrs. Irene Mutzl, 320 Parkovash, South Bend, Indiana, representing Fair Tax, Inc. stated that she is protesting the award of the contract. Mr. Guentert stated that in the information presented at the time of the above referred to 1985 bond issue, the stadium project was not included as a project utilizing the proceeds of the bond sale. Mr. Hill stated that the 1985 bond issue provided for redevelopment and property acquisition. Within the definition of redevelopment, by state statute, is the construction of parks within the redevelopment area. Therefore, this is an appropriate expenditure. Mr. Eli Miller, Vice -President, South Bend -Mishawaka Area Chamber of Commerce, stated that personally speaking, he is in favor of the expenditure of funds to begin this project and supports the efforts to move ahead. Therefore, upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, Carl J. Reinke & Sons was awarded the bid for the above referred to project, subject to funding, and the letter of fund commitment from the Redevelopment Commission as submitted by Jon R. Hunt, Executive Director, Department of Economic Development was accepted for filing. ms. barnara aavisea that Mr. Neil Shanahan, Manager, Bureau of Public Construction, has recommended that the Board accept the base bid of St. Joseph Valley Structural Steel Company, 1203 Kent Street, Elkhart, Indiana, for the above referred to project in the amount of $433,000.00. It was noted that bids for this project were accepted and opened by the Board on July 8, 1986. Mr. Shanahan further noted that award of this bid is subject to funding. At the present time, there is $300,000.00 available in funds for this project. Mr. Vance stated that a Notice to Proceed will be issued only for the amount of funds available for this project at this time. He noted that the balance of the Tax Increment bond funds as committed by the Redevelopment Commission will be utilized for this project. Mrs. Irene Mutzl, 320 Parkovash, South Bend, Indiana, inquired how much money was available as this was the second award the Board was making in regards to the stadium project. She stated she also wondered at this time if the City really needed the loan from Security Pacific National Bank since all the above referred to monies were available. REGULAR MEETING JULY 29, 1986 Mrs. Mutzl was advised that the City does need the loan from Security Pacific National Bank to complete the stadium project and that Tax Increment Bond funds would also be utilized to begin this project. Mr. Richard L. Hill, Attorney at Law, Parker & Jaicomo, First Bank Building, 205 W. Jefferson, Suite 250, South Bend, Indiana, representing the City of South Bend on the Stanley Coveleski Regional Baseball Stadium Project, additionally advised Mrs. Mutzl that escrow funds that the City was maintaining as a requirement for closing on the Lease Purchase Agreement with Security Pacific National Bank would be utilized. He stated that those funds were to be held in escrow during the construction of the stadium. As the closing will apparently be delayed because of the pending lawsuit filed by Fair Tax, Inc., the funds could be used at this time. In response to where the monies came from to place in the escrow fund, Mr. Vance advised that sources include the cumulative capital development fund and the cumulative capital improvement fund. Mr. Joseph Guentert, 3510 Corby Bo levard, reminded the Board that all of the funds are contingent upon the final action of the court in the suit which Fair Tax, Inc. filed regarding the legality of the Lease Purchase Agreement with Security Pacific National Bank. He wondered what the action of the Board would be if the Lease Purchase was not finalized. Mayor Roger 0. Parent was present and advised that at this point in time it should be perfectly clear to the citizens that a baseball stadium will be built and the City will fulfill its commitment to the community and the franchise owners. He stated that if there were the extreme possibility that the City would lose the pending lawsuit, the City would obviously have to talk with the Redevelopment Commission regarding the funds utilized for this project. In response to Mr. Guentert's statement that the loan is not essential to build the stadium, Mayor Parent stated that the City does need the Lease Purchase arrangement to purchase and build the kind of facility the City can be proud of. Mrs. Mary E. Guentert, 3510 Corby Boulevard, South Bend, Indiana, stated that she would like to thank Mayor Parent for being Fair Tax, Inc.'s best fundraiser. Mr. Hill advised that $600,000.00 of the $4.1 million dollar Redevelopment District Tax Increment Revenue Bonds of 1985 can be utilized at this time due to the fact that all public improvements for this season have been contracted and therefore those monies are available at this time. These funds will be reimbursed to the Redevelopment Commission at the closing of the Lease Purchase Agreement with Security Pacific National Bank. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the above bid was awarded subject to funding and the appropriate Construction Contract was approved and executed subject to the filing of the appropriate insurance, Performance Bond and Labor and Materials Payment Bond. AWARD BID AND APPROVE C CENTURY CENTER TO THE M :ACT - SKYWALK FROM THE - FILING OF AFFIDAVIT OF H.G. CHRISTMAN In a letter to the Board, Mr. John E. Leszczynski, Director, Public Works, recommended that the bid of Wright Construction Corporation, 2707 Middlebury Street, P.O. Box 1306, Elkhart, Indiana, in the amount of $962,000.00 be awarded for the above referred to Project. Mr. Leszczynski advised that the low bidder, H.G. Christman Construction Co., Inc. has asked that their bid be withdrawn because of some errors made in calculating the bid which would no longer make them the low bidder for the 1 REGULAR MEETING JULY 29, 1986 `5 3 u 1 project. It was noted that bids for the project were open by the Board on July 1, 1986. Further, in accordance with the award of this bid, a Contract in said amount was being submitted for Board approval. Board Attorney Thomas Bodnar advised that H.G. Christman Construction Company, Inc. has provided an Affidavit regarding the inadvertent mistake made on their bid submitted for the project and recommended that the Affidavit be accepted for filing. Therefore, upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the bid of Wright Construction Corporation was awarded, the Construction Contract approved and executed, the appropriate insurance, Performance Bond and Labor and Materials Payment Bonds accepted for filing, and the Affidavit of H.G. Christman as submitted accepted for filing. In response to a question from Mrs. Irene Mutzl, 320 Parkovash, South Bend, Indiana, Mr. Vance advised that Tax Incremental funds would be utilized for this project. APPROVE COMMUNITY DEVELOPMENT CONTRACT AND ADDENDA Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the following one (1) Community Development Contract and two (2) Addenda were approved and executed: CENTER CITY ASSOCIATES SOUTH BEND CENTRAL DEVELOPMENT AREA COMMERCIAL REVOLVING LOAN FUND The targeted goal for this activity is to provide loan/grant assistance to fifteen (15) businesses. The total cost of this activity shall not exceed $235,755.00. ADDENDUM I BUREAU OF HOUSING HOUSING REHABILITATION FUND ACTIVITY Addendum I provides for the addition of $30,000.00 to this project and indicates that the total cost of this activity shall not exceed $422,104.00. ADDENDUM I NEIGHBORHOOD CODE ENFORCEMENT OFFICE DEMOLITION PROGRAM Addendum I provides for the addition of $30,000.00 to the original contract amount and indicates that the total cost of this activity shall not exceed $70,000.00. APPROVE CONTRACT - CAR WASHES FOR CITY VEHICLES FOR PERIOD AUGUST 1, 1986 TO JULY 31, 1987 (WALTER ZWIERZYNSKI CAR WASH) Submitted to the Board for approval at this time was a Contract with Walter Zwierzynski, Car Wash, 1804 L.W.W., South Bend, Indiana, providing that "Car Wash" shall furnish wet car washes for City vehicles from August 1, 1986 through July 31, 1987. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the Contract as submitted was approved and executed. FILING OF BASIC SERVICE RATE INCREASE - HERITAGE CABLEVISION Ms. Annette Rotolo, General Manager, Heritage Cablevision, 16830 Edison Road, Mishawaka, Indiana, was present and asked the Board's consideration of a rate increase in basic service from $12.44 to $13.94, effective September 1, 1986. Ms. Rotolo summarized for the Board the channels offered by Heritage Cablevision to its customers. She further advised that customers subscribing to two (2) or more premium channels will not experience a rate increase with that charge remaining at $29.95. jFj 04, REGULAR MEETING JULY 29, 1986 The proposal which Ms. Rotolo submitted to the Board indicated that increased operating costs, including a 28% increase on basic programming, and a capital investment of $8,548,979.00 make the rate increase necessary. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the proposal as submitted was referred to the City Controller's office for review. It was noted that the proposal is being submitted to the Board for review and approval. Ms. Rotolo stated that due to new federal legislation, effective January 1, 1987, cablevision companies will be deregulated. She further stated that Board approval of the rate increase at this time would guarantee that no other increase would take place until September, 1987 as rates are reviewed by Heritage Cablevision on an annual basis. APPROVE BLOCK PARTY REQUESTS Ms. Barnard advised that the following block party requests have been reviewed by the Bureau of Traffic and Lighting and the Police Department Traffic Division and recommended for approval: PETITIONER: Karla W. Bronicki ADDRESS: 930 South 36th Street LOCATION: 900 Block of 36th Street DATES: August 2, 1986 TIMES: 9:00 a.m. - 6:00 p.m. PETITIONER: C.D. Edwards ADDRESS: 522 Preston Drive LOCATION: Preston Drive from Essex to Chamberlin DATES: August 24, 1986 TIMES: 12:00 noon - 10:00 p.m. PETITIONER: Julie Schreiber ADDRESS: 2402 Union Avenue LOCATION: 2300 & 2400 Blocks of Union Avenue from Solomon to MacArthur DATES: August 3, 1986 TIMES: 12:00 noon - 8:00 p.m. PETITIONER: L. Buckingham, Jr., Business Manager Naptown Riders M.C. ADDRESS: 5003 West Washington LOCATION: Napier Street from Chapin to Pine DATES: August 29, 30 & 31, 1986 TIMES: 6:00 p.m. to 12:00 midnight Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the recommendation was accepted and the requests approved. APPROVE R OF WILLIAM P: 3SOCIATION TO c ALLEYS FOR ANNUAL PICNIC - AUGUST Z 1986 In a letter to the Board, Mr. Frank J. Wukovits, Sr., President, Branch #132, William Penn Association, 1024 West Indiana Avenue, South Bend, Indiana, advised that the Annual Picnic will be held on August 2, 1986, beginning at 12:00 noon on the Lodge's surrounding property. The main spectator participation and activities will be conducted in the rear of the Club's building. As usual, the picnic will be open to the public and it is requested that the alleys -surrounding the building be closed. Ms. Barnard advised that the Bureau of Traffic and Lighting and the Police Department Traffic Division have reviewed this request and recommend approval. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the recommendation was accepted and the request approved. 1 REGULAR MEETING JULY 29, 1986 1 1 1 APPROVE REQUEST OF HERITAGE CABLEVISION TO CONDUCT SMALL CHILDREN'S PARADE AND PARTY IN NAKOMIS PARK - AUGUST 15 1986 In a letter to the Board, Mr. Tobin Wirt, Marketing Manager, Heritage Cablevision, 16830 Edison Road, Mishawaka, Indiana, requested permission to conduct a small children's parade and party in Nakomis Park on Friday, August 14, 1986. The outing is planned as a family event for Heritage Cablevision employees and their children. It is anticipated that approximately 150 adults and children will attend the event to be held from 5:00 p.m. to 6:30 p.m. Mr. Wirt stated that Disney characters will lead the children in a parade around the park and surrounding sidewalks. Additionally, it is anticipated that five (5) to eight (8) H.S. musicians will march along with the parade. Supervised children's games will be played and cake, ice cream.and lemonade will be served. Ms. Barnard advised that the Bureau of Traffic and Lighting and the Police Department Traffic Division have reviewed this request and recommend approval. Therefore, upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the recommendation was accepted and the request approved. IUA 1u u1jubb STKhhT6 FUK FAKISH FUN FAIR - AUGUST 9, 1986 ter to the Board, Ms. Barbara A. Mendola, President, Our Lady of Hungary Home and School Association, 731 West Calvert Street, South Bend, Indiana, advised that Our Lady will be conducting their Fun Fair on August 9, 1986 and would like to have Chapin Street between Calvert and Bruce Street and Bruce Street from Kemble Avenue to the deadend of Bruce Street closed from 8:00 a.m. to 12:OO midnight. Ms. Barnard advised that the Bureau of Traffic and Lighting and the Police Department Traffic Division have reviewed this request and recommend approval. Therefore, upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the recommendation was accepted and the request approved. APPROVE REQUEST TO CONDUCT STREET SERVICES In a letter to the Board, Ms. Dora Lottie and Ms. Ida Newborne, 2024 Pershing Street, South Bend, Indiana, stated that Missionary Dora Lottie and co-workers of the Church of God In Christ request permission to conduct street services in the evenings on the corner of Washington and Walnut Street the first two (2) weeks of August. Ms. Barnard stated that the Bureau of Traffic and Lighting and the Police Department Traffic Division have reviewed this request and recommend approval. Therefore, upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the recommendation was accepted and the request approved. APPROVE TRAFFIC CONTROL DEVICES Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the following two (2) traffic control devices were approved: 1. NEW INSTALLATION, STOP SIGN - On Horne Ct. @ 28th. (Uncontrolled T). 2. NEW INSTALLATION, STOP SIGN - On Horne Ct. @ 30th. (Uncontrolled T). APPROVE RELEASE OF EXCAVATION BOND Mr. Melvin Humphrey, Engineering Department, recommended that the Excavation Bond for Culligan Corporation be released effective August 12, 1986. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the above referred to Excavation Bond was released. C t5 6 REGULAR MEETING JULY 29, 1986 FILING OF ENVIRONMENTAL CLEAN-UP OF LOTS REPORT A report from the Department of Code Enforcement indicating a total of one hundred forty-four (144) properties cleaned from July 18, 1986 to July 24, 1986 was submitted. Upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the report as submitted was filed. APPROVE CLAIMS Mr. John W. Ferguson, Executive Director, St. Joseph County Job Training Program submitted two (2) lists containing two hundred five (205) claims and recommended approval. Additionally, Deputy City Controller Carol M. Sanders submitted Claim Docket No. 016980 through Claim Docket No. 017417 and recommended approval. Upon a motion made by Mr. Vance, seconded by Ms. Barnard and carried, the claims were approved and the reports as submitted were filed. PRIVILEGE OF THE FLOOR: CITIZEN CONCERNS REGARDING COVELESKI BASEBALL STADIUM PROJECT Mrs. Irene Mutzl, 320 Parkovash, South Bend, Indiana, stated that as a follow-up to earlier discussions and comments regarding the stadium project she just wanted to say that Fair Tax Inc. anticipated that the action taken by the Board today would take place and stated that this is the way it has been going. She stated that earlier the Mayor said he made a commitment. She commented that he did not make a commitment to the City of South Bend but to outsiders because the defeat of the proposed bond issue to construct the stadium was defeated by the citizens of the community. She stated that it is the opinion of the majority of the people of South Bend that they do not want the stadium. In response, Ms. Barnard stated that she believes the stadium project is a very exciting redevelopment project and she is pleased. Mrs. Mutzl stated that the downtown Mall project was exciting also but as can be seen today, the project has failed and the mall is being reopened. ADJOURNMENT There being no further business to come before the Board, upon a motion made by Ms. Barnard, seconded by Mr. Vance and carried, the meeting adjourned at 10:27 a.m. KaftAerine G. Bar and h Michael L. V nce ]ATTES Sandra M. Parmerlee, Clerk