HomeMy WebLinkAboutSM 07-22-77July 22, 197
10:00 A. M.
Presiding Of
SOUTH BEND REDEVELOPMENT COMMISSION
SPECIAL MEETING
cer: F. Jay Nimtz, President
1. ROLL CALL
Commissioners Present
Legal Counsel
M-A4
Community Devlelopment Staff
LPA Staff
2. APPROVAL
OF MINUTES
1200 County -City Building
217 West Jefferson Boulevard
South Bend, Indiana 46601
Mr. F. Jay Nimtz, President
Mr. Donald Wiggins, Vice President
Mr. A. Peter Donaldson, Secretary
Mr. Robert J. Cira, Asst. Secretar
Mr. Lloyd Robinson, Sr., Member
Mr. Kevin J. Butler
Ms. Jeanne Derbeck,Tribune.Reporte
Mr. Terry O'Reilly, WNDU
Mr. Dick Nemeth, WNDU
Mr. Keith Crighton
Mr. Ken Schaller
Mr. John E. Davis
Mr. James Johnson
Mr. Richard Pfeiffer
Mr. C. Wayne Brownell
Mr. Marc Brammer
Ms. Christine L. Trippel
Mrs. Jane A. Zimmerman
On motio by Mr. Wiggins and seconded by Mr. Cira and carried, the
Minutes f the Special Meeting of July 8, 1977 were approved as mailed.
3. APPROVALIOF CLAIMS
On motio by Mr. Wiggins, seconded by Mr. Cira and carried the claims in
the amou t of $248,777.51 were approved as submitted and were allowed
and orde ed to be paid.
List of claims approved this date is as follows:
PROJECT EXPENDITURE ACCOUNT INDIANA R -66
Kevin J. Butler $ 452.89
Curly's ales & Service 124.25
TOTAL 577.14
1
3. APPROVALIOF CLAIMS (CONT'D
PROJECT XPENDITURE ACCOUNT INDIANA R -57
U.S. Dep rtment of Housing & Urban Development
TOTAL
PROJECT rEMPORARY LOAN - INDIANA R -57
Project Expenditure Account Indiana R -57 /TRANSFER
TOTAL
REDEVELOPMENT REVOLVING FUND
Payroll: 6/18/77 thru 7/1/77
Credit Bureau of South Bend - Mishawaka
Kevin J. Butler
Business Systems, Inc.
IBM Corporation
Xerox Corporation
Project Expenditure Account Indiana R -57 /TRANSFER
Skystrearn Airlines, Inc.
C. Wayne Brownell
Marshall & Swift Publication Co.
312 LOAN
Hubert L
, Weaver
4. COMMUNICATIONS
TOTAL
TOTAL
$ 203,281.00
203,281.00
$ 28,407.36
28,407.36
$ 2,734.04
5.00
200.00
18.42
247.35
31.15
13,000.00
11.55
42.50
52.00
16,342.01
$ 170.00
170.00
GRAND TOTAL $ 248,777.51
Mr. Brownell made the following report on all communications:
A. Lette from James E. Childs & Associates, dated July 11, 1977 RE:
exist ng addition review of Sonneborn's Sport Shop.
This letter as read by Mr. Brownell indicated that the Child's report
indic ted that the addition to Sonneborn's Sport Shop is substantially
compl ted and is in substantial conformance with the drawings in Mr.
Sonne orn's possession. The observations contained in the attached
notes from the Child's review given to us for our files, were not
intended to judge the work in any way with respect to the quality,
corrections or conformance with the code. Further commission action
on the Certificate of Completion of the Sonneborn's addition will be
taken care of later in the meeting.
2
4. CON
MR
C.
Q
MUNIC
TIONS (CONT'D)
from Stephen J. Havens, HUD, dated July 12, 1977 RE:
Lette
Financial
Settlement of Program No. IN R -57, Contract No. IN R -57 (LG)
Mr. Brownell
indicated that this letter which was signed by Norm Cliftl
for Stephen
Havens notified us that the closing of the above contract
would
be accomplished on July 20, 1077 by our transmittal of a check
in the
amount of $203,281.00 to partially repay the outstanding princil
of $400,485.00
plus accrued interest of $19,737.60. The remaining
balance
is $216,942.00 which will be paid with our request for final
capital
grant payment in the amount of $215,942.00.
1. Letter
dated July 13, 1977 from C. Wayne Brownell to HUD sending
check
for payment of principal and interest due for Project R -57.
Our
check No. 1076 in the amount of $203,281.00 was mailed on
Ju
y 13, 1977 to the attention of Laverne Stinks for payment of
the
principal and interest due for Project IN -R 57. Mr. Nimtz stag
this
information was to be received and placed on file. Mr. Browne'
also
stated that we are to receive $186,553.00 back from HUD as
surplus
on the R -57 project which will go on our project notes.
Lette
dated July 12, 1977 from C. Wayne Brownell to Arthur J. Perry,
Attoriley
for Lowe's Inc., a Michigan Corporation, in answer to phone
inqui
y by Mr. Perry for usage of our land -legal description attached
Exhib
t A for a groundbreaking ceremony on July 15, 1977.
This letter
granted Lowe's permission to use our land for a reception
be held
on July 15, 1977 and to erect a tent to celebrate a groundbreal
for their
new office building to house the headquarters of Lowes, Inc.
the dates
of July 14, 15, 16, 1977. The following condition was asked
be met
and was complied with: that of a hold harmless agreement on thi
days
referred to above. Mr. Nimtz asked that this information be rece
and p
aced on file and also that Mr. Lowe in talking with himself and
Mr. W
ggins at the groundbreaking indicated his enthusiasm about the
entire
situation and was laudatory about the whole progress in the dowi
Letter
from Doran, Manion, Boynton & Kamm, dated July 12, 1977 RE: St.
Josepi
River Bend Development Corporation and Edward Lowe - Part of Pa'.
6 -1B.
signed by Charles Boynton indicated to us that the land
This letter
scheduled
for take down designated this particular piece of real estate
to cotitain
the entire part of the Lowe's development. St. Joseph Rive,
Bend
Development Corporation has requested permission to start site wo
and construction
on this piece of real estate prior to the actual take
Lowe's
is very anxious to get started as the contractor has placed a w(
schedule
program which allows them to move and bring their offices to
South
Bend within a particular time table. The economic development bi
is to
be approved on July 18, 1977 by the City Council and the construe
contracts
are presently being completed. The plans and specifications
have
been approved by the Redevelopment Commission meeting held earlie
month
Title work is being completed and take down will take place wi-
the next
few weeks.
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4. COMMUNICATIONS (CONT'D
1. Letter dated July 15, 1977 to Charles Boynton, attorney for
St Joseph River Bend Development Corporation RE: permission
to commence site work on land described in Exhibit A.
Mr Brownell stated that each commissioner was called regarding
this decision and each granted permission of the St. Joseph River
Be id Development Corporation request. Mr. Nimtz suggested that a
fo mal motion be made to ratify and confirm the action taken
in ormally. Mr. Brownell stated that in our letter dated July 15,
1977 we requested the following conditions: that the work done
wo ld be in accordance with the plans and specifications approved
by the Urban.Design Review Committee on June 20, 1977 and, that
a iold harmless agreement covering the period of the site work and
co struction be provided along with an insurance policy making the
De )artment of Redevelopment an additionally insured with adequate
li its of liability during the period of construction and site
work satisfactory to the Department of Redevelopment. Mr. Brownell
ad Jed that the conditions have not yet been met. Mr. Wiggins then
as ed for a motion for approval of the action pending the meeting
of the conditions and the approval of our attorney. Seconded by
Mr Donaldson, the motion was carried.
E. Lett4 from Thomas E. Osterling, Clyde Williams & Associates, dated
Julv 13. 1977 RE: South Bend Urban Renewal IN Project R -66, Phase III
Irian mall drinking fountains.
Mr. Brownell reported that this letter from Thomas E. Osterling of
Clyde Williams & Associates to the Hickey Company indicated that the
five Driginally installed drinking fountains were to be replaced by
new f untains manufactured by Haws, Model 3060 exposed aggregate
finis , natural color, foot pedal operated, freeze proof valve system,
with a general description of circular, with fibre cast reinforced
concr to pedestal with vandel resistant features and stainless steel.
Origi ally we preferred push button operated but due to investigating,
the M del 3060 are not freeze proof with push button and therefore the
reasoi for the foot pedal operated.
F. Letter from G.A. Hickey of the Hickey Company, dated July 20, 1977
RE: drinking fountains on the Pedestrian Way.
Mr. Brownell reported that the Model 3060 fountains with foot pedal
operation are to be shipped on Friday, July 22, 1977. Ideal
Consolidated Incorporated will be receiving them and as soon as they
arrive we will begin the installation and complete as soon as we are
able. Mr. Nimtz stated this should all be received and placed on file.
Mr. Brownell was asked by Mr. Nimtz to send a copy of this over to
Mr. John Kagel and Hub Getzinger and Emma Zuhlke at Dainty Maid.
Mr. Wiggins said he would like to go one step further and instruct
ourstaff to nag these people, every one of them, every step of the
way until this project is done. He also would like to have a telephone
confirmation to know that the fountains have been actually shipped
becau e of the fact of the many nice sounding letters we received before
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4. COMMUNICATIONS (CONT'D
F. (cont�d)
Mr. Wiggins (cont'd) ... and
Jeanne Derbeck asked if the
which Mr. Brownell said they
to pa_ for them.
5. OLD BUSINESS
still don't have fountains that work.
fountains were still under warranty,
were and we consequently will not have
A. Elimi6ation of Labor Standard Provision, Rehabilitation Contract
renort by Keith Crighton adjourned until July 22, 1977 for
consideration by the membership of the Lull commission.
Mr. N'mtz indicated that with the full commission now present we
could now take action on this proposal.
Mr. C ighton said he didn't remember the date of the commission
meeti g at which this proposal was first presented, that of to
reduc the labor rates we had for our contracts. At that time the
commi sion asked that Mr. Crighton further investigate the matter
with the contractors and discuss the individual rates listed in the
labor standard provisions that we are using on a voluntary basis
for all rehabilitation contracts that we now have. From the
discu sions with the regular contractors they essentially had no
objections to the present rates we were using with exception to the
commoi labor category. At the present time we are paying $7.40
an hour for common labor and many of our contractors said that
rehabilitation contracts are unlike new construction, and that
the job is related to picking up materials, hauling equipment,
carrying tools, anything within the general. labor classification
that Would not fit into carpentry or roofing, for example, and they
felt hat $7.40 was high to pay for that type of work. Laborers
in new construction do substantially more work, heavier work, so
in new construction, $7.40 would be a fair rate to pay. However,
under rehabilitation contracts the work is not that heavy and not
that strenuous or pressure is not associated with it. Mr. Crighton
reque ted that the present rate for general labor be dropped from
$7.40 an hour to $5.40 an hour. This is the only classification
reque ted for change. Mr. Robinson stated that he could not argue
with the intent of this proposal but disagrees with Mr. Crighton's
position because of his dealings with employers every day and knows
that qithin a 90 -day period of time the so called "savings" will be
in th2 contractor's pocket because their prices will come up also
withi 90 -days. We are trying to help people in these economically
depre sed areas and improve their lot in life but on the other hand
we ara trying to cut the wages of these laborers, some of them who
might live in this area. Mr. Robinson thinks these people are entitled
to ma <e a decent living as others in the construction industry, whether
the j bs are rehabilitations or new construction, the job will still
involve eight hours, hazards, and in some cases, rehabilitations
might even be more dangerous, because of tearing things down instead
of putting them up. We should improve the common laborer's economic
situation and status for him and his family. Mr. Robinson also stated
that 6fter all is said and discussed he would like to make a motion
5
5. OLD BUSINESS (CONT'D
A. ( Cont'd)
Mr. Robinson (cont'd) .... that we remain the same with our labor
standard. Mr. Wiggins stated that at this stage of the game he
could not consciously authorize a $2.00 pay cut. Mr. Donaldson
asked Keith how he arrived at the figure of $5.40 an hour. Mr.
Crighton suggested that figure as most contractors agreed that
amou t would be a fair cut without substantially affecting their
earnings. Even at the $7.40 rate, the reason that the proposal
was initiated was the fact that Community Development funding was
getting less every year and we are constantly under pressure from
the Federal Government to cut the expenses of our operation. The
commission has done that in one step, by allowing us to open bid
our contracts, but we can't stop at that and have to get more
money into the acutual houses. Mr. Donaldson stated that he agreed
with Mr. Robinson. Mr. Cira asked Keith what the breakdown was
between a skilled laborer against an unskilled laborer. Mr. Crighton
answered by saying we don't have a classification for a skilled laborer,
if an electrician is on the job, we don't have a classification for
an electrician laborer, he would be either a common laborer or an
apprentice. In many instances we are involved with apprenticeship
programs. Mr. Cira asked the pay rate for apprenticeships and
Mr. Robinson replied normally it starts between 40% and 50% for a
starting apprentice and graduates normally every six months where
they get a raise of 5% or 10 %. In our particular field it graduates
at 100. They start at 50 %, 60 %, 70 %, then 80 %. Mr. Cira stated
that this would mean that the common laborer is making more money
than the apprenticed skilled laborer. Mr. Robinson agreed. Mr.
Cira indicated that he agreed with Keith's position. Mr. Robinson
replied that at the same time you are losing sight of the fact that
the apprentice is trying to learn something, the common laborer is
not t ere for learning, he already knows what he has to do. The lower
wage ate is for when he is learning. Mr. Wiggins added that the
idea hat you have to contend with here is that people very often
have he impression that an apprentice is another employee that is
worki g at 100% capacity and that is not true at all. The whole
idea f the apprenticeship is that he is there to learn a trade so,
the guy who is teaching him what to do is losing his efficiency to
teach the apprentice, and you have two people doing the same job. In
apprenticeship training at the industrial level it is difficult to
get anyone to actually work with them because they want to leave it
to someone else to do as they see it as something that costs them
money and don't regard it as an opportunity to make anything. It is
only an opportunity to replace someone who is going to retire. Mr.
Cira asked if a common laborer is earning $5.40 an hour, is he in the
area of the average income for a family - -- what is the average income?
Mr. Robinson replied it's up to $9,000 or $10,000. Mr. Cira indicated
that by paying $5.40 an hour that guy will still make over $10,000
a year. Mr. Robinson replied only if he works all year, but he won't.
Mr. W ggins added that the $7.40 rate along with the amount of work
he wi 1 probably get done will give him about $10,000 a year. Mr. Nimtz
asked if there was further discussion, Mr. Crighton indicated no, and
Mr. R binson made a motion that we leave the labor rates as they are
prese tly and continue to do business in the same manner. Mr. Donaldson
suppo ted, and the motion carried.
6. NEW BUSINESS
A. Commission approval was requested for the following Change Orders:
1. Change Order No. 1, Contract No. NECD /PR /CS -1/01 to increase
contract total by $225.00 for water closet repair on recommendation
of R.E. Pfeifer, Chief Inspector /North Division. The Change Order
was moved for approval by Mr. Wiggins, seconded by Mr. Donaldson
and carried.
2. Change Order No. 1, Contract No. SECD2 /PR /CS -8/65 and CS -8/66
to increase contract total by.$992.00 for porch deck repair.
Mr. Shaller made an amendment to the agenda stating this Change
Order only refers to CS -8/66. This Change Order was recommended
by James L. Johnson, Jr., Chief Inspector /South East. After
discussion of the condition of the existing porch, Mr. Wiggins
moved for approval of the Change Order, seconded by Mr. Cira and
carried.
3. Change Order No. 1, Contract No. SECD2 /PR /CS -8/65 to be increased
by $804.00 for roofing repairs and studs for bathroom wall repair
as recommended by James L. Johnson, Jr., Chief Inspector /South East.
Mr. Johnson made an amendment to this Change Order as the studs for
the bathroom wall were not listed on the Change Order, therefore the
Change Order is to be increased by $95.00 for a new total of $899.00.
All the necessary corrections have been made on the original Change
Or. er. After discussion about the necessary roofing repairs to
the front and rear of the home, Mr. Wiggins moved for the approval,
se onded by Mr. Cira, and the motion carried.
B. Commission approval was requested for the following contract awards.
1. Contract Set 3B for plumbing work. R.A. Stickler the low bidder at
3,935.00. Mr. Wiggins mentioned that the Stickler labor /material
estimate was so low he wondered how soon they would come back for
contract revisions. Mr. Crighton replied that Mr. Stickler has
bean consistently lower than the block because of the fact he gets
hi materials wholesale. Mr. Wiggins moved for approval of the
co tract award, seconded by Mr. Robinson and carried.
2. Contract Set 3B for heating work. Dell Owens Heating the only bidder
at 3,725.00. Mr. Robinson stated this was over the estimate. Mr.
Butler asked how many houses were involved to which Mr. Crighton
re lied three, and further added that we have great difficulty
estimating the heating needs for most homes as we use a different
formula in computing our costs. The contractors have in mind other
fa tors, which being in the business, they are in a position to
un erstand and use to adequately heat homes, they concentrate on
getting a unit in there that will adequately heat the house. Bidding
on this particular contract was difficult because these contractors
ar' busy, and so the bids are few. Mr. Wiggins moved for approval,
se onded by Mr. Cira and carried.
3. Co tract Set 3B for electrical work. Electric Constructors the
T—oa bidder at 4,240.00. After much discussion about the wide
variance of the bids against our estimates, Mr. Cira suggested that
we accept the bid, he was the low bidder and since this was his
7
6. NEW BUSINESS (CONT'D
B. Commission approval request for.contract awards continued....
3. CoIn tract Set 3B for electrical work (Cont'd)
Mr. Cira (Cont'd) .... first bid on this type of work, we should
gi e him a shot to see what he can do. Mr. Wiggins moved for
ap roval, seconded by Mr. Cira and carried.
4. Co tract Set 3B for general construction. Greg Brittain the low
bi der at 35,771.00. Charles Brown Maintenance Service was the
lo# bidder according to the tabulation sheet of bids, however, Mr.
Br wn made an addition error in the amount of $2,224.00 and was
un illing to absorb this loss, therefore he withdrew his bid.
Again much discussion surrounded the amounts of bids versus the
estimates to which Mr. Crighton stated that the estimate total
loq bids for all four categories on each house compared to our
la or /material estimates showed only a difference of $2,200.00
for all units, our total of $50,224 for labor /material estimates
as compared to $47,665.00 total low bid for each house in all
four categories...4% under. Motion for approval was given by
Mr. Robinson, seconded by Mr. Wiggins, and carried.
C. Commission approval was requested for the following 312 Loans.
Frank and Marie Laskowski in the amount of $5,000.00
Mr. Wiggins asked if all papers were in order, for which Mr.
Br wnell said they were ... Mr. Wiggins moved for approval,
seconded by Mr. Robinson and carried.
Mi hael and Eleanor Swanson in the amount of $3,450.00
Mr. Wiggins moved for approval, seconded by Mr. Donaldson and carried.
line Bogard, in the amount of $3,450.00, Mr. Wiggins _moved
approval, seconded by Mr. Cira and carried.
D. Commi sion approval was requested for the approval of the Certificate of
Compl tion for Charles A. Sonneborn, as previously mentioned under
Commu ications A by Mr. Brownell. Mr. Wiggins moved for approval,
secon ed by Mr. Robinson and carried.
E. The m tion for approval to the St. Joseph River Bend Development
Corpo ation to start site work and construction on Parcel 6 -1B was
previ usly taken care of under Communications D1.
7. PROGRESSIREPORTS
Mr. Wiggins stated that he had a progress report. He was invited by the
South Be d Tribune to attend a meeting sponsored by the Hoosier State Press
Association regarding the open meeting law that was enacted by the state
7
PROGRESSIREPORTS (CONT'D
Mr. Wigg ns (Cont'd) .... legislature during the last session; Senate
Enrolled Act No. 83, which takes effect September lst of this year.
Mr. Wiggins has a copy of the legislation for which there was very
substant al discussion of its content from the floor, most of which
was deal with. He suggested that copies of this be provided to the
Commissi n and legal staff. Mr. Nimtz asked if we had not been in
compliance with this in advance of the law. Mr. Wiggins replied that
on the basis of the discussions heard that night we have been very good
boys. Before this law, much concerning this was vague and the law was
needed to clear up much of this. Jeanne Derbeck added that what is
important is that if one wanted to hear the content of a particular
meeting that person should not be kept away but very much invited to attend.
Mr. Wiggins mentioned that this is considered a matter of public interest
because this concerns all of us in one fashion as members of this Commission,
and, as members of this community so that we might know what other groups
are requ red to do and that we might know what information is available
to us nor only by the press, but that these meetings are open to the public
to participate and know what is going on. Jeanne Derbeck added that there
were other officials who came to us from other counties and cities in this
corner o Indiana and I must say we got a terrible impression of LaPorte
County. Mr. Wiggins added that the president of this county council was
looking at an item that covers political caucuses because these are exempt
of this 'aw, also this spells out that this is not to be used as a subtrafuge,
and he said as long as it is part of a political party, (they had seven
Democrats and one Republican) he would tell the Republican to stay home.
You can ee what his attitude was about the whole thing.
Mr. Brownell said he had an announcement on the South East Park at Trail
and Elder Streets, there is to be a dedication of the park on July 23
to re-name it the Dean Arthur Johnson Park. This is the park where we
cleared the land for tennis courts, etc.
Mr. Crig ton was recognized by Mr. Nimtz and he extended his apologies to
the Commission for the number of errors on the Change Orders of today's
meeting. He also apologized for a mis- statement earlier, the cost estimates
for labor/material costs discussed under New Business B -4, our cost estimates
were actually 4% over the total low bids, not under.
The nextICommission meeting is to be held on August 5, 1977 at 10:00 A.M.
9. Motion f
carried.
ir adjournment was made by Mr. Wiggins, supported by Mr. Robinson and
Ckl
ell, Executive Director