Loading...
HomeMy WebLinkAboutRM 01-16-76 (2)Januar 16, 1976 10:00 . M. Presid ng Officer: 1. 2. LL CALL SOUTH BEND REDEVELOPMENT COMMISSION REGULAR MEETING 1200 County -City Building Mr. F. Jay Nimtz, 227 W. Jefferson Boulevard President South Bend, Indiana 46601 issioners Mr. F. Jay Nimtz, President ent: Mr. Donald A. Wiggins, Vice President Mr. A. Peter Donaldson, Secretary Mr. Robert J. Cira, Assistant Secretary Mr. Lloyd E. Robinson, Sr., Member al Counsel: Mr. Kevin J. Butler Media: Ms. Mr. Mr. Mr. Mr. Mr. Mr. Jeanne Derbeck, South Bend Tribune Reporter Dave Anderson, WNDU -TV Reporter James L. Marchelewicz, WNDU -TV Photographer Dan Caesar, WSBT -TV Reporter Frank Vellner, WSBT -TV Photographer Larry Ford, WSJV -TV Reporter Les Howard, WSJV -TV Photographer :hers Present: Mr. Allan C. Bloomquist, First Bank & Trust Company Mr. Gene Evans, Executive Secretary, Civic Planning Assn. Mr. Hubert Getzinger, Chairman, Downtown South Bend Council Mr. Frank Halasz, Elkhart Community Development Mr. John R. Kagel, Executive Director, Downtown South Bend Council Mr. John V. Lindstaedt, Fair Tax Association and Third District Citizens Council of St. Joseph County Mr. Bill E. Slabaugh, Dept. of Public Works mmunity Mr. James L. Johnson, Jr. velopment Mr. Richard E. Pfeifer aff: Mr. Kenneth J. Schaller L A Staff: Mr. C. Wayne Brownell Ms. Helen S. King PROVAL OF MINUTES Mr. Edwin R. Bauer motion by Mr. Wiggins, seconded by Mr. Donaldson and unani- MINUTES usly carried, the Minutes of the Annual Organizational Meeting APPROVED d the Regular Meeting, both held on January 2, 1976, were ap- oved as mailed and /or distributed. - 1 - 3 A PROVAL OF CLAIMS 01 motion by Mr. Wiggins, seconded by Mr. Donaldson and unani- CLAIMS m usly carried, the claims were approved, as submitted, and APPROVED t ey be allowed and ordered to be paid -- totalling: $30,880.51. Tie authorized claims are: PIE.A. INDIANA R -57 Cole Associates, Inc. $ 200.00 South Bend Exterminating Company 30.00 Sweeney, Butler & Simeri 57.50 Total X287.50 P1E.A. INDIANA R -66 Robert Foegley Landscape $ 5,794.29 Jerome E. Michaels, Appraiser 250.00 South Bend Exterminating Company 30.00 Sweeney, Butler & Simeri 1,161.00 Total $7,235.29 REDEVELOPMENT REVOLVING FUND Payroll: January 1 to January 9, 1976 $ 5,228.52 Amoco Oil Company 9.22 Atilt Camera Shop, Inc. 13.28 Credit Bureau of South Bend- Mishawaka 65.00 I.B.M. 168.94 K plinger Washington Editors, Inc. 28.00 J mes R. Meehan & Associates 2.25 Mt,szynski Insurance Agency 122.00 Postmaster 22.53 T e South Bend Tribune 46.80 W yne Brownell 135.46 Total 5,842.00 REDEVELOPMENT DISTRICT CAPITAL FUND Butler & Simeri (NDP Project A -10) $ 175.00 Sweeney, Total 175.00 ByREAU OF HOUSING E -7 A.B.C. Plumbing & Heating (Rehabilitation Contract #40) Sweeney, Butler & Simeri Ted Combs Decorating & Construction, Inc. (Rehabilitation Contract #47) Ted Combs Decorating & Construction, Inc. (Rehabilitation Contract #16) T d Combs Decorating & Construction, Inc. (Rehabilitation Contract #49) - 2 - Total GRAND TOTAL $ 4,977.79 192.50 1,033.91 5,072.49 6,064.03 $17,340.72 $ 30,880.51 3. AOPROVAL OF CLAIMS_(Cont'd) IMBURSEMENT TO REVOLVING FUND oject Expenditures Account Indiana R -57 $ 13,963.74 oject Expenditures Account Indiana R -66 44,428.07 Total $ 58,391.81 4. COMMUNICATIONS a, HUD Area Office letter dated January 6, 1976: This letter, STATUS UPDATE over the signature of Mr. Stephen J. Havens, Director, REQUESTED, Community Planning and Development, is in further' response R -66 & A -10 to the status report contained in our letter of November 12, 1975, for Projects Indiana R -66 and Indiana A -10. They advise that they are now in the process of doing,com- prehensive reviews of all urban renewal projects to esta- blish feasible closeout dates. They state it is imperative that they maintain an accurate status of the activities which have not been completed in each project, and requested an update on the status of all activities in R -66 and A -10, incorporating the items stated in our report. The requested items and the answers are summarized: .. Acquisition: Date title on Parcel 22 -2A was acquired is: October 15, 1975; on Parcel 22 -5A, the estimated date title to be acquired is: February 10, 1976. Disposition: Relating to re- appraisal values for all parcels and status, we have contracts with two appraisers who are presently at work making reuse appraisals on all parcels remaining unsold. There are eighteen (18) parcels involved. Relocation: On status request of the payment of the claim from Indiana & Michigan Electric Company, this claim has been filed with us and our attorney has given us his opinion. Mr. Choice Edwards has directed us to send the claim to Ms. Vivian Bond for examination and review. On status of the Indiana Bell Telephone Company claim, it has been reviewed by our attorney and the Area Office of HUD and payment concurred by Area Office. The claim has been processed and approved by the Commission, and we are awaiting the check from the computer to pay the claim. A -10: Acquisition: We have title to all parcels acquired. Demolition: Completed prior to December 31, 1975. Relocation: All completed or paid into escrow. - 3 - 4. COIMMUNICATIONS (Cont'd) Motion was made by Mr. Wiggins that these letters be accepted and placed on file. Motion was seconded by Mr. Donaldson and unanimously carried. b. The Hickey Company, Inc. letter dated January 15, 1976: Mr. C. Blayne Brownell, Executive Director, read the contents of this letter in its entirety, which is over the signature of Mr. G. A. Hickey, Chairman of the Board: In accordance with out convetvsation v6 January 15, 1976, we wiU extend out ptopoz al jot contract numbet 10, PaAts A and D dated November 18, 1975 untit Match 15, 1976 with no inctteaze in pt.ice. This eonttcact totaled $750,298.00. 14 ,the 4oZtowing ,items ate deducted, the va2uez ate as 4ottows : 1) Two pooa, chem.icaa and 5ump pump $46,650.00 2) Benches - 16 unit's 21-923.00 3) Substitute brown conetcete iot te"azzo paving 1,900.00 4) Bt ck paving in i6tand neat LaSalle Ave. 2,500.00 5) B,ieycte tacks - 12 units 1,700.00 6) Sound zyztem conduit 2,700.00 7) Demotiti.on o4 vautt - SP 8A, including eoncAete paving 1, 600.00 TOTAL DEDUCTION 59,973.00 THE HICKEY CO., INC. LETTER RE EXTENSION TO AWARD CONTRACT 10, MALL EXTENSION, R-66 In addition, we tequut that the completion date be adjusted to eotvice�s pond with any delayed stat t ing date. We tAurt thiz is the in4otmation you desitce, and took 4orwatcd to wo& ing with you on thin ptoj ect. Along with this item, Mr. Brownell asked to go on to the next item on the Agenda, listed as letter from Robert Foegley Land- scape Design and Contracting, Inc. C. Robert Foegley Landscape Design and Contracting, Inc. letter ROBERT dated January 15, 1976: Mr. Brownell advised Mr. Foegley sent FOEGLEY us this letter, and read the contents in its entirety: LANDSCAPE DESIGN & Pete out phone eonvetLsation o4 Januatiy 15, 1976, we agree CONTRACTING, to the extem ion o4 the bid awatt.d 4ot the Pede�sttuan Way, INC. LETTER Phase #3 (Project Ind. R -66) thtough Febtuaty 29, 1976. RE EXTENSION TO AWARD It .iz also undetustood that the beginning o4 construction CONTRACT 7, and the eomptetion dates witt also be delayed. MALL EXTENSION R -66 4. COMMUNICATIONS (Cont'd The Chair requested to consider the above two letters- -from The Hickey Company, Inc. and Robert Foegley Landscape Design and Contracting, Inc.- -along with the Mayor's letter, which is under "Old Business, 5a -1" and asked Mr. Brownell if he thinks that is proper? Mr. Brownell responded, "Well, either way. I think we need... at some point...we need a motion to extend the time, like we did the last time we had that exten- sion. This doesn't extend it for as long. This only goes to February 29 really." The Chair directed his question to Legal Counsel, Mr. Kevin J. Butler, and said, "Yes, but, of course, Kevin, now we have this letter from the Mayor, which is the next item, requesting that we delay construction of the Mall until June 1, 1976, for the various reasons listed in the letter." Mr. Brownell further added that this would only delay the awarding of the bids until February 29, which would probably be continued on. Mr. Butler said he believes, "If I understand it correctly, what they want to do is evaluate - =the contractors want to evaluate their cost factors periodically, rather than giving one." The Chair said the request is reasonable - -to take it step by step. Mr. Brownell advised that he had talked to the two contractors informally over the phone, and, of course, they will have to have an increase of some amount -- probably in price- -but they have no way of deter- mining that amount at this time because.they don't know when the dates are going to be. It might not be June lst. Mr. Wiggins said we have, currently an extension to February 1, and that he sees Mr. Brownell's point, We will not have another meeting until after that time, so we have got to take action at this meeting to carry it to further extension, and as long as we have the letters of request from them, "I think we ought to act upon those, and in that light I make a motion that we receive the letters and approve their request for the extension in time in which to award the bids to [directed to Mr. Brownell for date with answer given, to February 29] February 29." The motion was supported by Mr. Cira. The Chair asked if there is any discussion. Mr. John R. Kagel, Executive Director, Downtown South Bend Council, asked if that date is for both contracts -- February 29 -- as the Hickey letter is to March 15, and if they are just re- ferring to Foegley's contract for the extension of February 29? Mr. Wiggins replied as these are all parts -- parcels - -of the same operation, "let's use the 29th date and we'll see what develops meanwhile; if it is necessary to further extend them, then we can do it then." Mr. Kagel further asked if the fact that February 29th is a Sunday if that is irrevelant in this stage of the game? Mr. Wiggins answered that any further action that might be required will have to be taken by our second meeting in February. - 5 - 4. 5. a MMUNICATIONS (Cont'd Mr. Gene Evans, Executive Secretary, Civic Planning Association, stated, "Mr. Chairman, I hear you members of the Commission, using the terminology, 'acknowledging their request.' Actually, the request for the extension was .not from the contractors, it was from the Redevelopment Department, as stated in the letter, was it not ?" Mr. Brownell said, "No, not that way. I simply explained the fact that we had a request from the Mayor to delay the project to June 1st." Mr. Evans further asked, "Did not the extension for the awarding of the contracts initiate prior to the Mayor's letter ?" Mr. Brownell advised the first extension re- quested for the awarding of the contracts was prior to the Mayor's letter and that he explained to the contractors that we either had to reject the bids or they could be extended. Further discussions followed between Mr. Brownell and Mr. Evans, and Mr. Evans said statements had been made prior that the bids received were too high, and this last request was initiated by the Redevelopment Department and the contractors agreed to the extension of time. Mr. Brownell said, "No, that's not true." Commissioner Wiggins said you might put it this way. We asked them to request it and they did, and we honored the request that they made. If you like it better that way; it all comes out the same." Mr. Brownell said that all he really explained to them was that we had two choices: "We could reject the bids and then rebid the project, or they could request an extension if they wanted to." The Chair said we have a motion to extend these to February 29th. Are there any further discussions or questions? There being none, the Chair asked for the vote, and all in favor, signify by saying, "Aye." The ayes were unanimous and motion was carried. D BUSINESS Report on Plaza Continuation, Project Indiana R -66: Report consists of the following two letters received by the Commission: 1) The letter is from The Honorable Peter J. Nemeth, Mayor, City of South Bend, directed to Mr. F. Jay Nimtz, President of the Redevelopment Commission, dated January 8, 1976, with copies to the Redevelopment Commissioners, Mr. Brownell, Mayor's Downtown Development Committee, and the News Media. Mr. Brownell read the contents of this letter in its entirety: I am &equestingg that the Redevetopment Department decay constAuct%on o�, the maU on Michigan StAeet between Je44euon and Washington StAeets untie June 1, 1976. I am making this tteque/st �otc the 4ot2owing news ons : 1. To ptwvide the Mayo&16 Downtown Devetop- ment Committee with an oppotrtuwity to ,study the downtown ptobZem and make ne- commendations; - 6 - PLAZA CONTINUA- TION REPORT, R -66 MAYOR REQUESTS CONSTRUC- TION DELAY ON PLAZA CONTINUA- TION, R -66 5. OLD BUSINESS (Cont'd 2. To allow moAe time to study the -impact o4 4&ee paiLking on the ptcos pect i.v e mat afLea between Je44euon and Washington StAeets; 3. To avoid unneeesAaALy expense in the event the downtown mall ptLo j ec t o4 the Ptiut Bank and T,,utst Company comes into 4&uit i.on. As 4o& the thiAd nealson, I wish to emphasize that the ptLobabitity o4 zuecas o4 the Fiut Bank project cannot be deteAmined jot anothetL thtLee otL 4outL months; howevetL, o44ic%aLs o4 the k"iut Bank_ and Ttcu�st Company have indi- cated to me that they shoutd know within that petuod o4 time whether on not the it p"ject Witt proceed. In the event the p&ojeet does pnoeeed, it would be very 400ti,sh 4o& ups to enteA into a conttLact and commence, cowstnuction o4 the matt at th z time and then have to undo that eonstteucti.on at a .eaten. tome. 14ee2 that the Ishotrt time invotved 4o& the delay, ass weft ass the possibZe ,savings o4 tax money, ju/sti4ies my nequet /jots the decay. Thanking you /jots youtL a/s/s "tance, and coopeAation in this matter, I fLemain very tnuty youu, /a/ Peter. J. Nemeth Peter J. Nemeth Mayon The Chair asked if there were any comments or questions by the members of the Commission, as to this delay and as to the parking. There being none, the Chair called on Mr. Hubert Getzinger, Chair- man, Downtown South Bend Council. The Chair said that he believed this has been discussed with him and Mr. Kagel, and the merchants downtown? Mr. Getzinger responded: Yes, Mn. Cha Aman, and membetis o4 the Commission. 04 eowrse, you must be aware o4 my 4ee.eing6 in the mattetL. We were taken eomp.eeteey by zutpAi, ,se o� the announce- ment, and, out 4iut Aeaction, o4 eoutrt e, wars one o4 (shock and amazement; howeve)L, I feet that the Mayon and this admini�stAati.on does have the communi ty',s and downtown busine/s/s eommun%ty'/s intetcest at hecftt. 14eet that in tLettLospeet that he doers need /some time to study the /situation, and I would teeeommend that we would go a.eong with hi/s tcequest at this time. - 7- 5. OUD BUSINESS (Cont'd I hope that the six mowth's decay, or Give month' ,s-- ox whatever it is--1 don't remember the exact date.... The Chair advised: June 1st. Mr. Getzinger continued: At that time, on time between now and then, that we can have some s o t o4 a plan on what is going ng to happen shorrt2y thaea4ter. We beet that we dial have some communication with you, gentlemen, Elder to ChA �stmas. We had naotved what we had wanted to do - -to stu rt the eonstAuc;Uon o4 the Matt. I treat ze that theAe has been a change o� ad- mini,st at on, and Aso, because the Mayon hays made this request, and because we, too, want to do and coopeAate, we wiU agree to his request. The Chair asked Mr. Getzinger, "Would you like to address your- self as to the parking request - -that we extend the parking in the additional block or half block ?" Mr. Getzinger stated: yeas, I would. I cWa%nt y fleet that i4 we are not going to construct the matt, that the e:nt iLe btock ,shoutd be opened up to the pcftii.ng. The Chair said, "Well, that's the Mayor's request." Mr. Getzinger replied: yeas, I agree with his request. - I think that ij we are going to do that, then we have to .support him whoteheaAtedty in this request, but I do think that there eoutd be some enjo&cement o4 the time pen.iod -- a maximum o� two houu - -and I think this is important a ,6o. The Chair thanked Mr. Getzinger, and next called on Mr. Kagel for any comments he may wish to make. Mr. Kagel stated: I know that this has been studied in the Chamber o� Commence by s eveAal Committees, and I b etieve that what Mr. Getzinger said, that I woutd te4tect on the ,same. The Chair thanked Mr. Kagel, and next called on Mr. Bloomquist for any comments he may wish to make, or anything further to add. 5. OLD BUSINESS (Cont'd Mr. Bloomquist stated: No. I agnee with. Nub, and the gentleman. The Chair thanked Mr. Bloomquist, and asked if there were any other questions or comments, and there being.none, the Chair continued: "Now, I have discussed this matter, informally, with the Mayor, and, of course, I think we all realize the legal responsibility on the parking is with the Board of Public Works, and it's my understanding if we have no objection to this and approve this, this morning, that this will go before the Board of Public Works the next meeting,'wh,ich will be Monday morning. Am I correct on that, Mr. Butler ?" Legal Counsel ad- vised in the affirmative. The Chair asked for a motion on the Mayor's.letter and his re- quest, and Mr. Donaldson moved for the approval of the request, and supported by Mr. Robinson. The Chair asked for any further discussions or questions, and there being none, the Chair requested the Commissioners for their vote, and all in favor, signify by saying, "Aye." The ayes were unanimous and motion was carried. Ms. Jeanne Derbeck, South Bend Tribune Reporter, asked,- "What was the motion ?" The Chair stated, "That we accede to the Mayor's re- quest, and that the delay as requested for the construction of the Mall on Michigan Street between Jefferson and Washington be postponed until June 1, 1976, and that we have no objection to free parking on the area between Jefferson and Washington Streets. The Chair requested confirmation from Mr. Donaldson if that was the intent of his motion. Mr. Dan Caesar, WSBT -TV Reporter, asked if that request was for the free, two -hour parking. The Chair ad- vised the fine points and the details, of course, are legally in the Board of Public Works, and that we have nothing to say about that. All we are saying is that we have no objection to that area being used for parking. Mr. Donaldson confirmed the motion, as noted above in quotes by the Chair, seconded and supported by Mr. Robinson and unanimously carried. Mr. Evans asked, "Mr. Chairman, does this make the extension of the previous contracts, which you discussed, a rather mute point ?" The Chair responded, "No, this gives us time, as I understand it now, if they are still interested, to ask for another continuation until June 1st." Directed to Mr. Brownell, "Is that right ?" Mr. Brownell said, "Yes, and to review the expenses involved." Mr. Evans further asked, "You would not have to go through a rebidding, necessarily, and that there is no change in the bid, and no change in the price." Mr. Butler advised, "Not if we can get their accession for continued delays on the award until June 1st, or until such time that would be set." Counsel's response on no change in bid and no change in price was answered in affirmative, "Right." "If the determination is made to go ahead with the construction of the Mall, the alterna- tives would be either to reject the one or both bids if the con- -9- 5. 00 BUSINESS (Cont'd tractors do not go along with the request, or the one who would not go, along with the request, and rebid the one, or both, and simply rebid the contract for the one who rejects the request. The Chair added "If they do not acquiesce." On further questions raised by Ms. Derbeck on the postponement and the letter stating the date of February 29th, Mr. Butler responded, "Legally, the notice to the bidders and the instruc- tions to the bidders indicated the Commission would act within thirty (30) days after receipt of bids. Now that is what is being - intended; that was our commitment. Of course, it protects the contractor, the contractors.. If there were no deadline, the Commission could sit on it for seven or eight months. We have their bid bonds and they would be bound. So, and as a matter of fact, we would receive no bids, unless there were. Now they are acceding by their requests to a delay in that 30 -day commitment. As to the 29th date, well, their point is, they cannot evaluate the situation all the way up to June lst. What they want to do is evaluate it periodically -- probably on a' monthly basis. We'll see what happens. If they feel that they can hold their costs to the levels of their bids - -of course, we are delaying the starting date. They were originally going to start the first week in January. They know that we are talking ultimately about a June 1 date on the outside for a decision- -for a final decision to be made." a Report on Plaza Continuation, Project Indiana R -66: 2) The letter is from the first Bank & Trust Company of South RIVER Bend, over the signature of Mr. Benton M. Wakefield, Jr., BEND Chairman of the Board, directed to Mr. Hubert Getzinger, DEVELOP - Chairman, Downtown South Bend Council, dated January 14, MENT 1976, with copies to the Redevelopment Commissioners and GROUP Mr. Brownell. PROPOSAL, R -66 Mr. Brownell said that this letter was read in the meeting that was held at the Chamber of Commerce, at which time the Press received a copy, as an article appeared on it in The South Bend Tribune. Mr. Wiggins made the motion that the letter be received and placed on file, seconded by Mr. Cira and unanimously carried. Commission action must be substantiated on Federal Projects for audit approval -- Indiana Project R -66. Excerpts of the three -page letter are noted for the record: ... I think it might be o6 intetcest to the membetus o� the Downtown South Bend Cou cit to ,Leview the .6tatus o4 the ptcopoza2 by the PiveA Bend Devetopment Gtcoup (a joint ventute between. FZut Bank and Devetopment ContAot Cot- potation) /Jots the Downtown MaU enctosed shopping eewteh and bankloi4ice buitding. - 10 - 5. OID BUSINESS (Cont'd) ... Ri,veA Bend Devetopment Group decided to take oven the ptcojeet trust ApAit when it was appatrent Associates woutd not continue, because we Jett the Downtown Matt pro pots at was the best and most tikety means of devetopcng the down - town. PaAtieu.ta,lty important was the need 4on some eoA- poration o ptovide teadetcsh ip fat deve dap cvig the dr�wntown, and not toz e the beneJ t o J the z ignij.icant and co/stty work that Associates had completed. Since Apt.it, considerabte time and money has been spent by'oult gtcoup to neiine the concept and to do uddit i.onat tes eatch at the tequest o6 ma oA re taitetus whose teases ate ab /sotu tety es/s entiat Got a succezz4u2 devetopment o4 a. downtown tetarit puject. ... Dulti.ng the past thiAty days, meetings have been held with top oJ6ici.at6 o6 /seveAat majot depaktment Istote chains and aU have conjitmed thei& 'continuing .intehetst in ouA downtown tcetait shopping matt. The one majoA depaAtmewt ,store which agreed to take space in ouA p&o ect a yecft ago has eontinuoulsty re- con4iltmed the.ite ,intent. subject to anotheA majotc depaAtment store joining ahem in this matt, pt" zatLs 6actoty putcFii.ng a"angement with the City o6 South Bend. ... At this point, we ate mote optimistic about outs chances Got /success than at any time to date. Howevetc, it shoutd be cteatrty undetustood that theAe ate many vatiabtes that can .in/tuenee the success of 4a.itwte o6 /such a majoA project, and many o6 these vatuiabtes aAe non- cowttottabte, "ueh as nat.io nat t eta i t sates. ... It is ext emety d j4icutt to quanti4y the ptobab.i 2ity o4 success of 6aaitme. White it woutd be a mote optimistic approach to h ightight the positive ptogtezz, we have con- tinowsty emphasized the specutative nature o4 this ptcojeet, and we simpty cannot guaAavrtee success ... Even more grati.4ying is the .ineAeas.ingty widened teade,"hip jot devetoping the downtown as reiteeted by the activities o4 many more downtown buts,inesls people, toeat gove&nment com- mittees, the uni.vetrsitiets, and othelt groups. This :inetceas- ing teadeuh.ip tejtectts, in my opinion, the tremendous v.i- btaney and spi i t that diijenenti.atez South Bend Jrom many otheA cities. ... 16 I might repeat what we have suggested to att concerned ,indiv.iduat,s and gtoups, as tong as ouA project Aema.ins h<ighty speculative, it is veAy impo, tart that atteAnative devetopment stAateg.ies be putusued. - 11 - 5. 00 BUSINESS (Cont'd ... I would caso tike to tLepeat that no one has a "hotd" on the "big ho.2e in the gnou.nd" .eand. The objective o4 Fiut Bank is to develop downtown South. Bend, which, eowside,, ing the amount 'o4 !space ava ta:bte, we beti.eve witZ nequiu a tatcge cootd.inated devetopment. It ,us also outs evatuat%on that this can best be accompti6hed with an enc o s ed shopping maw. We hope ouh p&oj ec t ,succeeds. However, ,i� it does not, it would be highty deg i able. 4on downtown South,Bend to have deve.2oped and ana.Cyzed attemative sttategie/s. Since Fiut Bank does not have the tesouAce/s to put&sue two mason devetop- ment st)Lategies, we eeAtainty encoutcage the devetopment e44 ts o4 otheu . 6. NEW BUSINESS a Shutdown Request by Nautilus Construction Corporation on Plaza WINTER Park Construction, Indiana Project R -66: Mr. Brownell read SHUTDOWN .the memorandum to him from Mr. Pat McMahon, Manager, Bureau of AUTHORIZED, Public Construction, dated January 15, 1976, which had attached NAUTILUS to it the supporting letter from Mr. George W. Batchelder, re- CONTRACT, questing winter shutdown until March 15, 1976, as the remaining R -66 work on this project is dangerous or impossible to do. Mr. McMahon advised this request is in line with construction practices ob- served locally, and his staff concurs in this request, subject to approval by the Redevelopment Commission. The contract time is extended to June 30, 1976 and a Change Order is to be prepared to update the Contract to include this date. During the shutdown period, Mr. Batchelder states they will maintain a skeleton crew for security and do some concrete and timber work if they would have a few days break in the weather. If any of this work would require an inspector, they will notify our office at least 24 hours in advance. Any full day time of work would be expected to be credited to their contract time. The request is made in accordance with an agreement they have with the Redevelopment Director in which they agreed to top soil and make the area available to the landscaping contractor for plantings last year and grass seeding in. the early spring, Robert Foegley Landscape Design and Contracting, Inc. This shut- down is not expected to adversely effect the electrical (Colip Bros., Inc.), or the landscaping subcontractors on this project. If it should, they will endeavor to accommodate these subcon- tractors as they have in the past. Mr. Brownell advised that actually they did go ahead and get the black top soil in so that Foegley could go ahead and plant ahead of the normal schedules in view of the shutdown coming up. Mr. Wiggins made the motion to authorize winter shutdown until March 15, 1976, with contract time extended to June 30, on the Plaza Park Contract with Nautilus Construction Corporation, se- conded by Mr. Cira and unanimously carried. - 12 - 6. NEW BUSINESS (Cont'd Change Order No. 1 to Phase II -E Contract, Indiana Project R -66: CHANGE Commission approval was requested for -this change order, on ORDER Phase II -E Contract with Harry H. Verkler Contractor, Inc., NO. 1 TO on Wheelchair Ramps, for an increase in contract amount of PHASE II =E $228.76, per memorandum from Project Engineer, dated January CONTRACT 13, 1976, subject to HUD concurrence. APPROVED, R -66 The change order was for repairing a crack hidden from view prior to starting the work. The contract budget was $18,300.00. The contract was $14,501.29 and the.chapge will add $228.76 to the contract. This is a 1.5% increase and the contract is final and complete. The Project Engineer is Mr. Bill Slabaugh and his memorandum is to the Redevelopment Commission for approval. The Chair welcomed Mr. Slabaugh to the meeting and asked if he had anything further to add to the memorandum. Mr. Slabaugh advised that prior to demolition of the vault under the side- walk, at the old American Bank by the clock, at the northwest corner of Washington and Michigan, they had built a wall to isolate the backfill area from the utility area which was to remain at this building, and that an opening was found under the plaster coat. This opening would allow'backfill to filter through and weaken the sidewalk foundation so it was ordered repaired by Mr. Slabaugh, the Project Engineer. The sand was going into their utility room. He said the reason we are coming up with these charges at this late date, as noted on the attached sheet to the change order, the overruns and underruns are shown and we overran on some and underran on some, and that unluckily the amount was $228.76 on the plus side instead of the minus side. Motion was made by Mr. Wiggins, seconded by Mr. Donaldson and unanimously carried, to approve Change Order No. 1 to Phase II -E Contract, with Harry H. Verkler Contractor, Inc., for an increase in contract amount of $228.76, subject to HUD concurrence and Legal Counsel approval, Project Indiana R -66. C. Rehabilitation Contracts, Northwest Community Development Project: CONTRACTS - 13 - Per recommendations of the Northwest Advisory Committee, Commis- 02 /NWCD, sion approval was requested to award the following contracts, 03 /NWCD, per the attached bid tabulation in the packet, to the low bidder, 04 /NWCD, subject to Commission Legal Counsel approval, [First contract 05 /NWCD, set to be awarded for the Northwest Community Development AWARDED, Project]: NORTHWEST CD PROJECT Contract No. Address Amount Contractor 02 /NWCD 517 N. Blaine Ave. $3,733.00 Madison Builders, Inc. 03 /NWCD 506 LaPorte Ave. 3,908.00 Slatile Roofing & Sheet Metal, Inc. 04 /NWCD 612 N. Walnut St. 3,207.00 Madison Builders, Inc. 05 /NWCD 537 N. Euclid Ave. 2,156.00 Madison Builders, Inc. - 13 - 6. NSW BUSINESS (Cont'd For the record, the bids received for Rehabilitation Contracts Nos. 01 through 011, are shown below, and cover items on the Agenda, under "New Business, 6c, 6d, and 6e." Contract No. Address Madison Builders Slatile Roofing O1 /NWCD 752 N. Cleveland Ave. $6,342.00* $7,484.00 02 /NWCD 517 N. Blaine Ave. 3,733.00* 4,260.00 03 /NWCD 506 LaPorte Ave. - 3,908.00* 04 /NWCD 612 N. Walnut St. 3,207.00* 3,870.00 05 /NWCD 537 N. Euclid Ave. 2,156.00* 2,358.00 06 /NWCD 656 LaPorte Ave. 6,354.00* 7,328.00 07 /NWCD 537 N. Cleveland Ave. 6,396.00* - 7,840.00 08 /NWCD 515 N. Cleveland Ave. 5,556.00* - 7,048.00 09 /NWCD 672 N. Lawndale Ave. 6,473.00* 6,860.00 010 /NWCD 502 N. Euclid Ave. 9,003.00 ** 9,407.00 ** 011 /NWCD 504 N. Euclid Ave. 7,515.00* 9,033.00 * Indicates low bidder. ** Indicates bids to be re- advertised. Mr. Kenneth J. Schaller, Project Director, advised that these are the first contracts to be awarded for the Northwest Community Development Project. Only two (2) contractors bid on these adver- tised rehabilitation contracts in the Northwest Project. Commissioner Cira brought to the Chair's attention that the bid for the 506 LaPorte Avenue had only one bidder and questioned how do we know that it is a proper bid, as we only received the one bid for that contract. He felt that we should have at least two bids and he didn't particularly think that it should be approved as he didn't feel that is the proper thing to do. For comparison he would like to see at least two bids on a contract. Commission Legal Counsel, Mr. Kevin J. Butler, advised to receive only one bid is no problem and assuming that only one bid would have been received on each of these contracts--unless there is some specific reason for not awarding the contract to a specific contractor. Commissioner Wiggins stated that this has undoubtedly been the concern of both the Advisory Committee and the Housing Bureau, and that they must be satisfied that this is a fair bid otherwise they would not have submitted it to the Commission for approval. Commissioner Robinson asked to what degree do we put out advertise- ments making the employers aware of the opportunity to bid on these things? Mr. Schaller advised that we have a contractors list and invitations are sent out to the contractors on this list and also we are required to advertise in two local publications. Commissioner Robinson asked the next question: "On this list of contractors you are talking about, how did you achieve this list- -from past adver- tisement and then we quit, or do you continuously try to update this list and re- advertise to other employers that this work is still available ?" Mr. Schaller said that is correct, and that basically =EIM 6. NEW BUSINESS (Cont'd from past, previous contacts with contractors, and that we also try to update it with new contractors as they bid on a job, and then try to contact new contractors. Commissioner Robinson said that perhaps because he is involved in this type of occupation that he is being extra nosy and. asking these questions. "I want to know to what extent and why there isn't more, to give the citizens of our community - -so to speak- -more opportunity for the employers to get work, be- cause I know there is a terrific amount of unemployment. I want to know to what length are you going to try to get and make other employers aware of this condition- -that the jobs are ready for bid- -and so on and so forth. If you are going from a past list, and are not doing much to update it, I can't see where we are doing the citizens of the community that much good." Mr. Schaller said that we are trying to update it, but as far as answering the Commissioner's question, that he can't do it at this time, but that Mr. Crighton will be able to answer all his questions. Mr. Crighton is presently attending another meeting. Mr. Brownell added that they have taken the list of contractors from the other projects too, but these are the first bids for the Northwest Project, and that it is very difficult to get very many contractors to bid on rehabilitation work, he is told. Commissioner Wiggins said, generally speaking, aren't contractors aware of the advertising for these things and don't they check the newspaper classifieds for these things? Commissioner Robinson said he can't answer for the contractors, but that he would imagine there are a lot of them who do not. The Chair said that he believes there is a reluctance on a number of the contractors to bid on these things, because there are always these unseen things when they get into the actual work, and then, of course, it is either they stop work and come back for approval, or go ahead and do it, and then hope that the Commission will approve the work that was done when something went wrong - -when they run into damage or diffi- culty that the inspector just couldn't see at the time of the inspec- tion. Mr. Butler advised the concern that Mr. Robinson raises is something that the Commission, on various projects, has had to deal with all along, and we got burned on some of the earlier projects, as we know, by getting some fly -by -night contractors, who opened up quick shop simply to make a few dollars in the project. He felt it might be a good idea for Keith Crighton - -maybe at the next meeting - -to explain or maybe talk to Mr. Robinson and explain what he has done. "I know with this one, Wayne and I made a recommendation to the staff -- primarily to Keith -- directly to Keith Crighton that they contact all contractors in the area and let them know. On the first couple of contracts, we only had one or two bidders and then after that it opened up a little bit and we started to get five, six and seven bids on these projects." Mr. Brownell said that one of the reasons that some of the contractors do not bid is that they - 15 - 6. NqW BUSINESS (Cont'd already have contracts awarded to them - -up to the capacity of their ability to take on work to complete it within the time limit. Commissioner Robinson said he may be jumping the gun, but going to the next item on the Agenda, 6d letter coming up, the same contractor got all these jobs. It amounts to a sizable amount of money and "I find it hard to believe that you can't get more people interested - -than just the two contractors- -just to bid on these projects with this amount of money we are talking about, even though it entails several individual dwellings." Mr. Butler gave an example of 17 contracts advertised and we only had one bidder, and the total figure on that was $38,000. Commissioner Cira again stated it seems there must be a lack of interest in bidding on these. Commissioner Wiggins expressed that he suspects that a part of that may be that there is a number of smaller contractors who shy away from all the legal requirements involved in 'these bids, "because I am sure that they have to go through a much more stringent bidding procedure and accountability procedure here than they do in dealing with the individual on a contract basis in the community. We, however, are required by regulations to establish this kind of accountability to protect both the occupants of the house, the City, and our own Department." Mr. Butler added, "Also the regulations and state law, and having been burnt on these, we have learned from experience." The Chair said, "Well, Lloyd, I think you raised a very good point here, and if you will get together with Keith and anything we can do to update the list, and so on, because we are interested in get- ting the people to bid on these things, and as Don says, some people don't have the staff to do the paperwork on these things. It is regrettable, but this is what happens when you are using Government money; you either do it their way, or you don't do it." Commissioner Robinson said he definitely intends to get other contractors interested in bidding and getting contract awards. "I want to talk to the right people, who can talk to the other people who should be doing it." Ms. Derbeck, South Bend Tribune Reporter, raised the question if Madison Builders is such a large company that they would have a big staff, as the Commission referred to the paperwork entailed. Mr. Butler said that Mr. Richard Madison was in charge of the rehabilitation program, in the Department of Redevelopment; his wife worked in the program, and they know the paperwork as well as anybody. He worked for us back in '72. Commissioner Wiggins further added that he is an ex- employee who has gone into business for himself. Mr. Gene Evans, Executive Secretary, Civic Planning Association, asked if we have assurance that he [Madison] will be able to com- plete the contract, and Mr. Butler advised he will by the per- formance and payment bonds which is required. As a matter of fact, initially, he had problems getting them when he was =me 0 6. NEW BUSINESS (Cont'd just starting out. Apparently now, the bonding company feels that he can. We also make sure that the bonds are with bonding companies that are reputable and substantial, and we take them from the HUD list. Motion was made by Mr. Wiggins, seconded by Mr. Cira and unanimously carried, to award Rehabi - litation Contracts 02, 04 and 05, to Madison Builders, Inc., and Contract No. 03 to Slatile Roofing & Sheet Metal, Inc., in bid amounts as shown above [Page 13, Item 6c', being the low bidders, subject to Commission Legal Counsel approval, in the Northwest Com- munity Development Project. d. Rehabilitation Contracts, Northwest Community Development Project: Per recommendations of the Northwest Advisory Committee, Commission approval was requested to award the following contracts, per attached bid tabulation, to the low bidder, subject to approval by the South Bend Common Council and Commission Legal Counsel: Contract No. Address Amount Contractor O1 /NWCD 752 N. Cleveland Ave. $6,342.00 Madison Builders 06 /NWCD 656 LaPorte Ave. 6,354.00 Madison Builders 07 /NWCD 537 N. Cleveland Ave. 6,396.00 Madison Builders 08 /NWCD 515 N. Cleveland Ave. 5,556.00 Madison Builders 09 /NWCD 672 N. Lawndale Ave. 6,473.00 Madison Builders 011 /NWCD 504 N. Euclid Ave. 7,515.00 Madison Builders Motion was made by Mr. Wiggins, seconded by Mr. Robinson and unanimously carried, to award Rehabilitation Contracts 01, 06, 07, 08, 09 and 011, to Madison Builders, Inc., in bid amounts as shown above, being the low bidder, subject to South Bend Common Council approval, and Commission Legal Counsel approval. e. Rehabilitation Contract No. 010, Northwest Community Develop- ment Project: Per recommendations of the Northwest Advisory Committee, Commission approval was requested to reject the following bid for the rehabilitation of real property in the Northwest Community Development Program, as it is over the $8,000.00 maximum allowable under the guidelines: Contract No. Address Amount Contractor 010 /NWCD 502 N. Euclid Ave. $9,003.00 Madison Builders This memorandum was also written by Mr. Keith P. Crighton, Director, Bureau of Housing, as also on 6c and 6d above for recommendations. He also advised the above bid was the lowest bid received for this unit; therefore, we are re- questing rejection of this bid because of the excessive amount. The specification for this unit will be checked and : revis -ed so that lower bids may be obtained through the next advertisement. - 17 - CONTRACTS O1 /NWCD, 06 /NWCD, 07 /NWCD, 08 /NWCD, 09 /NWCD, 011 /NWCD, AWARDED, NORTHWEST CD PROJECT CONTRACT O10 /NWCD REJECTED, NORTHWEST CD PROJECT N NEW BUSINESS (Cont'd) Motion was made by Mr. Wiggins, seconded by Mr.' Cira and unani- mously carried, to reject Rehabilitation Contract No. O10 /NWCD, as per bid amount of 9,003.00, from Madison Builders, Inc., as it is over the $8,000.00 maximum allowable under guidelines. f Change Order No 2 to Rehabilitation Contract No. 16, Southeast Project E -7: Commission approval was requested of Change Order No. 2 to Rehabilitation Contract No. 16, with Ted Combs Decora- ting & Construction, Inc., for an increase in contract amount of $689.30, (Contract: $6,958.39), or an amended contract total of: $7,647.69, for rehabilitation work at: 1121 South Carroll Street, in the Southeast Project E -7, per explanation in memorandum dated January 14, from Chief Inspector, Mr. James L. Johnson, Jr., Southeast Bureau of Housing, E -7. Mr. Brownell read the memorandum from Mr. Johnson in its en- tirety, which stated the specifications confirmed the furnace and water heater and called for reroofing the rear porch and for replacing siding 3' x 28' on the south side 6' front, 16' in rear, and paint two coats. Since the time of the initial inspection, the condition of the above - mentioned items have changed as follows: 1. The furnace blower motor, fan switch, fuse disconnect, and the wiring have gone bad. 2. The water heater has no pipe leading from the pressure release valve to 6" above the floor, which is contrary to South Bend Code. 3. The sheathing of the rear porch roof has deteriorated due to leakage through the roofing and will not allow the contractor to properly install the roofing called for on the specifications. 4. Although some of the rotten siding has been replaced, there is still 112 square feet to be replaced which may not have been seen at the time of the initial inspection. These conditions present a serious health and safety problem and should be corrected immediately; therefore, the change order is recommended for approval and brought before the Commission for consideration. Mr. Wiggins moved for the approval of Change Order No. 2 to Rehabilitation Contract No. 16, for an increase in contract amount of $689.30, or an amended contract total of: $7,647.69, and contract time remains unchanged, with Ted Combs Decorating & Construction, Inc., Southeast Bureau of Housing E -7 Project. CHANGE ORDER NO.2 TO REHAB. CONTRACT 16, AP- PROVED, E -7 6. NEW BUSINESS (Cont'd Change Order No. l to Rehabilitation Contract No. 48, Southeast CHANGE Project E -7: Commission approval was requested of Change Order ORDER NO. No. 1 to Rehabilitation Contract 'No. 48, with Ted Combs De- TO REHAB. corating & Construction, Inc., for an increase in contract CONTRACT amount of $571.00, (Contract: $6,326.63), or an amended con 48, AP- tract total of: $6,897.63, for rehabilitation work at: 226 PROVED, East Pennsylvania Avenue, in the Southeast Project E -7, per E -7 explanation in memorandum dated January 14, from Chief Inspec- tor, Southeast Bureau of Housing, E -7. Mr. Brownell read the memorandum from Mr. Johnson, Chief Inspec- tor, Southeast Bureau of Housing, in its entirety, and the change order: The specifications called for the installation of 1/4" underlayment and tile, subfloor around the water closet, and a seat on the water closet, in the first floor bathroom. In the first floor 1/2 bathroom, a P -trap is to be installed in the lavatory. Since the time of the initial inspection, the subfloor in the first floor bathroom around the water closet has completely collapsed, therefore destroying three floor joists from water leakage of the water closet. The water closet is cracked and since the floor deteriorated, the lead soil stack has had to hold up the water closet. The weight of the water closet, plus constant usage, has shifted the lead soil stack below the floor level. The lavatory in the first floor 112 bathroom has fallen off the wall and the water closet is cracked. All of the pipes are lead and should be replaced leading to the kitchen and bath- rooms in order to insure that other plumbing problems do not arise. These conditions present a serious health and safety problem and should be corrected immediately. Changes are for: Plumbing: Replace 35 feet of soil pipe leading to first floor bathroom and kitchen ........ $350.00 First floor bathroom, floor: three 2 x 8 x 8 floor joists.. .......... 106.00 First floor 112 bathroom, water closet: replace per City,Code...... . .............................................. 40.00 First floor 112 bathroom, lavatory: rehanglavatory and replace faucets and supply lines and install shut- offvalves .................. ........... ............. 35.00 First floor bathroom, water closet: replace water closet per City Code . ............................... 40.00 Total ......................... 571.00 On this item, Commissioners missed our veteran plumbing expert, former Commissioner John E. Chenney, for his expert advice. Commissioner Robinson asked, "Who does these inspections? Is the guy blind, or what ?" Ken Schaller said these inspections are prior to his time on staff. Commissioner Robinson further stated, "These items certainly ought to be obvious, because - 19 - 6. NEW BUSINESS (Cont' d some of the things on here ... he would have to be blind, or something...not to see them the first time around. I can't understand that. There must be something wrong with the people doing the inspections; there must bei for such an increase in cost on so many projects. Mr. Schaller again stated these inspections were done prior to any of the people on his staff working here. Commissioner Cira asked, "What's the time element on some of the inspections from the time that we have construc- tion - -the improvements on it ?" .Mr. Schaller advised on this particular house here '[226,East Pennsylvania Avenue], the house was inspected.on October of 1974. That is the reason. Commissioner Cira- .said;: "That's what is bad; can't we get any quicker action ?" Mr. Butler questioned the '74, and asked if he doesn't mean '75. Ken stated the '74 is not incorrect; it was inspected in October of '74. The present houses for CD right now - -that have been awarded for the Southeast Area - -are being worked on now. Com- missioner Wiggins said these things have leaked for a year or more after they were inspected, and the damage just goes on. Commissfoner Cira-- concurred;-'that`is- what`is bad, and the cause of the excessive damages, but Commissioner Robinson questioned the procedure and advised he would think when they are put out for bid; hat someone would be sent out to recheck it or something. Ken sa -id he believed this Contract 48 goes back to last spring. Commissioner Robinson said if they checked it out that far ahead of time, if they don't hurry up and go back and check it sometime, the place could be burned down and there wouldn't even be a place there. Mr. Schaller said there is considerably less time on the CD con- tracts that we are working on now; they are being worked on within four months. Commissioner Cira said that is one of the problems right there. As to why, Mr. James L. Johnson, Jr., Chief Inspector, advised mainly because the inspections are first, contracts are advertised and awarded, then they have to be approved by Legal Counsel, then the Preconstruction Conference has to be set up by Mr. Alford, after which if the contractor has more than five or six contracts, he has 30 days in which to complete each of these contracts, and say if we award 10 contracts at the same time; maybe they take the first five contracts first, and most of them have gone over 30 days on some of these older structures, so that just puts them off further and further. A lot of these contracts were approved in February and March of last year. Ms. Derbeck added that this would mean if a contractor gets six contracts at once, then he has 30 days for each one, so he may never get to one of them for six months. JJ confirmed that has been the way it has worked in the past. On the Pennsylvania Avenue there is a gap of approximately 15 months and Ms. Derbeck said that is kind of hard to understand, and wouldn't it be better to hold off until that contractor gets caught up? With the rate of inflation, Commissioner Cira said he would think this would catch up! -wi -th the contractor. Commissioner Wiggins sad we are talking about a year and a half from the time of inspection, not a year and a half from the time the contract is awarded, but there is another element gap to consider here. The people are going to continue - 20 - 6. NIEW BUSINESS (Cont'd living in these structures and the time is going to slip away, and true, it would help if we could shorten these things up, because if there is a situation here where damage is occurring, like leaking roofs, leaking plumbing fixtures -=this sort of thing- -you would have to estimate the amount of damage up to the time the guy would reach that point, and man, you would have to have a pretty good crystal ball for that! So,that you can expect to have a certain amount of this anyway you go. Our procedures for the protection of the Department and the people institute a lot of delays. This is part of the red tape; it's a part of what you pay for. Commissioner Cira stated that is bad and that we are wasting a lot of money. Mr. Brownell said he believed the other thing we should mention perhaps is the fact that the E -7 Program started with local funds appropriated by the City Council, and we are now changing over to Community Development funds, and there was a lack of funding in the beginning- -there was only $438,000= -and so some of the people who applied couldn't be taken care of immediately. Commissioner Robinson asked, "After they make that inspection, does this contractor bid it from just a sheet of paper, or what the inspectors tell him, or does he just go out -- physically go out and look at the structures before he bids on it. JJ and Mr. Brownell concurred that heis. supposed to go out and look at it. Commissioner Robinson added, "Then if he goes out and looks at it previous to bidding - -and it could run up to six months you are saying - -I still don't think that this condition should exist that much. If that guy is doing his job - -if he is bidding off of what you guys report, that is something else. Commissioner Wiggins said maybe the guy that looks at it closely didn't bid. Commis- sioner Robinson stated that maybe he realizes he doesn't have any competition; he doesn't have to; I don't know. Mr. John F. Lind- staedt, representing the Fair Tax Association and the Third District Citizens Council of St. Joseph County, said that this is the thing that bothers him a little bit -- looking at Madison Builders - - "it seems to me that what we are talking about is over - extending- -one bid over - extending itself, in the contracts. I see 10 contracts for Madison Builders; you are talking about a 30 -day deal. A lot of subcontractors are like that. What is to keep them from extend- ing this right down the line. I think something should be done to get more people to bid. I can't see giving a single bid without any competition. I agree with the gentlemen down there. In fair- ness to the public, and it also doesn't look good; let's face it -- and you say this gentleman once worked for the department. Mr. Butler's reply and question was, "John, are you meaning that be- cause he worked for the Department, that he is receiving the bids ?" Mr. Lindstaedt stated he did not mean that and it was not his intent, but the only thing - -as you say - -one man has all the expertise in this field, and, therefore, he is more apt to receive the bids. This is what I and these people are talking about. It seems in some of these cases, there is no bidding on the contracts. Commissioner Donaldson asked, "What do you do if the other contractors don't bid; what happens then ?" Mr. Lindstaedt said, "With the economy and the conditions, the point has been made. Truly, I think somewhere down - 21 - 6. NtW BUSINESS (Cont'd the line, some of the contractors would enjoy having a few con- tracts; there's quite a bit of money involved here! Commis- sioner Wiggins said, "We can't force people to bid." Mr. Butler's opinion was, "I think Mr. Robinson can be 'damned helpful' to the Commission and to the community in this respect -- generating the response. The response to this point has been just very disappoint- ing. Commissioner Wiggins said the real sad thing is when you come up with things that need to be done, you just don't get any bidders, and that has happened to us too, you know. Mr. Lindstaedt said the Board of Safety had the same problem a way back with demoli- tion- -too many contracts with one contractor that was delaying the work and causing confusion. Commissioner Wiggins said on the basis of the current track record - -and this is what you have to go by -- Madison has been responsible; they have been performing [agreed to by Mr. Lindstaedt], and you can't argue with success. The guy is doing the job and you can't hang him unless he has committed the offense. Mr. Lindstaedt said somewhere down the line, some of the contractors are missing the boat on a lot of these contracts. "This is puzzling me a little bit. Why aren't more contractors bidding? I would like to know why ?" Mr. Dan Caesar, Reporter for WSBT -TV, asked if the only reason could be because of the legal matters, because if he wants $5,000 worth of remodeling on his home, all he has to do is call up any of the reputable contractors and they will send someone out that afternoon and give him a bid and guarantee the work as long as he pays them a third down. "I don't buy that! Are you having problems with legal papers? Is that the only reason ?" Mr. Butler responded that our legal papers have affected in knocking out the fly -by -night contractors that we have been dealing with before. Mr. Caesar asked, "How come I can get a contractor to come to my house and you can't get contractors to bid here ?" Commissioner Wiggins stated because you [Caesar] are not putting out for competitive bidding; you are ask- ing a fellow to come out to give you a price and you have him do it. Mr. Caesar disagreed, stating he would have more than one contractor come over; "I have done it!" "Maybe the Commission ought to publicize this more and do something and not just rely on the news media and blame us for it." Cira added, that is his point. Mr. Caesar said maybe the right contractors have not been contacted, and after all, they are looking for work - -all of them are. It does look awfully suspicious, gentlemen -- Madison Builders - -I'm not charging or anything, but it just looks like he gets all the business. Have the Commissioners ever con- tacted the Building Trade and met with these people:? There are a lot of independent people around too that do work like this that would pro- bably love to get $5,000 jobs; I bet there are 10 independent carpenters that would do this type of work. Commissioner Wiggins suggested he make this a lead story -- "WHERE ARE THE CONTRACTORS AND THE PEOPLE WHO NEED WORK ?" Dan Caesar said: "You got it! Further lengthy conversations followed on this, and the reasons given by JJ: A lot of them don't like the way we pay them; sometimes it takes them two weeks to a month to get their check. They have stated this. - 22 - 6. NEW BUSINESS (Cont'd Also a lot of better contractors can't afford to bid as low as these contractors bid, and as they never get the bid, conse- quently they bon't bother to bid on any more of our contracts. Commissioner Robinson said the question is WHY? -- when the prevailing rate has been established--and the prevailing rate, in most instances in this town, has been set at the union rate. Why ? ?? One of the questions that has'been'bothering me- -even before I got on this Commission, and not only me; but, if the Union rates are supposed to be the union rate that has been established on this project, and I know that in most instances that it does, because I get those published sheets all the time stating what the prevailing rate is. I have never been able to figure this out- -and I have been up to see Mr. Brownell on a couple of different occasions before I ever got on this Commis- sion. We have been out debating that same subject, and I don't understand why they can't bid that way. Several voices spontane- ously voicing we have had that....Commissioner Robinson responding, "I don't believe that; I think it is because the small -type guy, I don't think that he can." JJ replied that Frank Alford is the Director of the Equal Employment Opportunity, and he oversees that the prevailing wage rates are paid. Mr. Evans added that if the wages paid, if ',it is under the prevailing wage rates, he can be charged by his employees of unfair labor practices if he is not in compliance with the contract. Mr. Brownell said not only that, but that copies of their payrolls come in to Frank Alford for review, and the only fellow that he could pay less than the rate would be to himself, he guessed. As to the qualifications.for minorities Mr. Caesar, Mr. Butler said that is the referred to prior, and that all of the now participants in the Hometown Plan. "Not all the contractors - -No. Just the side of the street." on the staff raised by Preconstruction Conference : ontractors in the area are Commissioner Robinson said, contractors in the union Mr. Lindstaedt raised further questions - -one being, "How soon before you ask the people to come in and examine the buildings to make the bids, do you make your estimate as to the cost ? - We all know that the labor costs have skyrocketed, and everything, but at the same time, when do you decide to award the bids, how long does it take you to get these bids and how do you arrive at the estimates? Who are these people on the Advisory Committees who decide how the contracts are awarded and are they qualified--the Committee that actually approves these bids ?" JJ explained the bidding procedures; staff makes two inspections a day, so usually the costs are estimated and as soon as they get 10 that are cost estimated, it is brought before the Advisory Committee for approval - -so usually there are 10 to let for bids once a month. The people on the Committee are the ones who have lived in the community for the most part. Mr. Lind - staedt said this is his first meeting here and he is making a point of these things here as he is interested in housing and bringing these things back in the trades, and it seems on the list of these things and the amount of money being spent, it is quite obvious, and the question being raised is - -are we getting the value for the money that is being spent by this organization? - 23 - 6. NSW BUSINESS (Cont'd) Mr. Brownell referred to the quadrant meeting at Riley High School last evening and the Southeast Neighborhood PAC Committee made a very fine report and discussed the park we cleared for them and the houses we rehabilitated and RENEW, Inc., a non- profit organization, has been rehabilitating and refurbishing some houses themselves, and that all of these things ` together have made the neibhgorhood have a new awareness and attempt to build it up. This is the attitude in the neighborhood. Motion was made by Mr. Wiggins, seconded by Mr. Ct a and unani- mously carried, to approve Change Order No. l to Rehabilitation Contract No. 48, for an increase in contract amount of $571.00, or an amended contract total of: $6,897.63, with Ted Combs Decorating & Construction, Inc., Southeast Bureau of Housing, E -7 Project. Change Order No. 2 to Rehabilitation Contract No. 08, Southeast Bureau of Housing, Project E -7: Commission approval was re- quested of Change Order No. 2 to Rehabilitation Contract No. 08, with Bailey Electric Company, with no change in contract total or time (Contract total remains at: $4,259.00), with specification change of water heater from electric to gas, and the installation of 10 feet of gas line, for work at: 310 East Sample Street, per explanation in memorandum dated January 13, from Chief Inspector, Mr. James L. Johnson, Jr., Southeast Bureau of Housing, E -7. Mr. Wiggins moved for the approval of Change Order No. 2 to Rehabilitation Contract No. 08, with the above specification change and no change in contract total or time, with the contract total remaining at: $4,259.00, with Bailey Electric Company, E -7. Motion was seconded by Mr. Cira and carried. CHANGE ORDER NO. 2 TO REHAB. CONTRACT 08, AP- PROVED, SOUTHEAST E -7 PROJECT Change Order No. 1 to Rehabilitation Contract No. 64, Southeast CHANGE Bureau of Housing, Project E -7: Commission approval was re- ORDER quested of Change Order No. 1 to Rehabilitation Contract No. NO. 1 TO 64, with Slatile Roofing & Sheet Metal Co., Inc., with no change REHAB. in contract total or time (Contract total remains at: $4,730.00),CONTRACT with specification changes as noted in memorandum dated January 64, AP- 13, from Chief Inspector, Mr. James L. Johnson, Jr., Southeast PROVED, Bureau of Housing, for rehabilitation work at: 522 East Haney SOUTHEAST Avenue. E -7 PROJECT Mr. Brownell read this memorandum in its entirety, and the specifications called for the installation of 1/4" underlayment and tile in the hallway, bedroom #1, and bedroom #2. The home- owner has requested that these floors be refinished. Slatile Roofing has agreed to refinish the floor for the same price listed on their bid for the installation of tile; therefore, staff recommends the change order for approval. The Chair advised that some of these contractors are very co- operative in making these requested changes, made at the request of the homeowner. Some of the contractors cooperate and others just don't want to do it and will not get into this type of work - 24 - Ls1 BUSINESS (Cont'd Mr. Wiggins moved for the approval of Change Order No. 1 to Rehabilitation Contract No. 64, with Slatile Roofing Sheet Metal Co., Inc., with no change in contract total or time (Contract total remains at: $4,730.00). Motion se- conded by Mr. Robinson and unanimously carried. 7. ROGRESS REPORTS 8. NEXT COMMISSION MEETING The next Regular Meeting of the Redevelopment Commission will be NEXT at 10:00 a.m., Friday, February 6, 1976, in the Office of the COMMISSION Department of Redevelopment. MEETING: 2 -6 -76 9. ADJOURNMENT There being no further discussion or business on hand, motion ADJOURNMENT as duly made for adjournment by Mr. Wiggins, seconded by Mr. Cira and carried. t � C. Hell, Execu ve Director F. Jay imtz, President (SEAL) - 25 -