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HomeMy WebLinkAboutRM 08-04-781. ROLL 9 Legal News SOUTH BEND REDEVELOPMENT COMMISSION County -City Building Room 1200 227 West Jefferson Boulevard South Bend, Indiana 46601 COMMISSIONER'S REGULAR MEETING Friday, August 4, 1978, 10:00 A.M. PRESIDING OFFICER: F. Jay Nimtz, President ssioners: F. Jay Nimtz, President Donald A. Wiggins, Vice President Robert J. Cira, Assistant Secretary Lloyd E. Robinson, Sr., Member Counsel: ABSENT: A. Peter Donaldson, Secretary Kevin J. Butler Media: Dave Anderson, Reporter, WNDU -TV Dick Nemeth, Photographer, WNDU -TV Jeanne Derbeck, Reporter, South Bend Tribune John McKnight, Reporter, WSBT -TV Mike Newman, Photographer, WSJV -TV Betsy Ross, Reporter, WSJV -TV m nity Development S aff: LPA Staff: VAL OF MINUTES Carl Ellison Jon R. Hunt James Harcus Kenneth Schaller Kathryn Baumgartner C. Wayne Brownell Marc Brammer Jane A. Zimmerman On m tion by Mr. Wiggins, seconded by Mr. Cira, and carried, the Minutes of J ly 21, 1978, were approved as mailed. 3. APPROVAL OF CLAIMS On m tion by Mr. Wiggins, seconded by Mr. Cira, and carried, the claims in th amount of $22,764.37 were submitted and were allowed and ordered paid. The uthorized claims were as follows: COMM SSIONER'S REGULAR MEETING Frid y, August 4, 1978 3. APPROVAL OF CLAIMS (Continued) ;EDEVELOPMENT REVOLVING FUND 'ayroll: 7 -1 -78 to 7 -14 -78 $ 3,131.45 :evin J. Butler 200.00 :omet Car Wash 5.25 ..B.M. Corporation 232.80 Indiana Bell Telephone Company 177.25 'ostmaster 35.73 TOTAL $ 3,782.48 ZEDEVELOPMENT DISTRICT CAPITAL kbstract Co. of St. Joseph County, Inc. $ 52.50 coward Park Hardware 10.19 TOTAL $ 62.69 ).E.A. Ind. R -66 kbstract Co. of St. Joseph County, Inc. $ 300.00 abstract Co. of St. Joseph County, Inc. 100.00 abstract Co. of St. Joseph County, Inc. 100.00 abstract Co. of St. Joseph County, Inc. 100.00 abstract Co. of St. Joseph County, Inc. 100.00 .olip Electric Corporation 199.50 teal Estate Research Corporation 437.00 Singer General Tire, Inc. 14.00 TOTAL $ 1,350.50 12 LOANS bstract Co. of St. Joseph County, Inc. $ 108.50 bstract Co. of St. Joseph County, Inc. 110.00 arnes Electric Company 449.00 k. J. Kromkowski, St. Joseph County Treasurer 403.93 ohn T. Kenney 82.31 aterfield Mortgage Company, Inc. 15,962.85 ierbeck Plumbing & Heating 345.36 Farm Bureau Insurance 106.75 TOTAL $17,568.70 GRAND TOTAL $22,764.37 -2- COMMISSIONER'S REGULAR MEETING Friday, August 4, 1978 4. COMM NICATIONS a. Commission approval of agreement with consultant. r. Nimtz: I have a letter here that I would like to read to the ommission. It is directed to the President of the Redevelopment ommission, and it reads as follows: "Dear Mr. Nimtz: Please accept my resignation as the Executive irector of the Department of Redevelopment, effective August 31, 1978. urther, I accept the position you offered me as consultant, effective eptember 1, 1978, through December 31, 1978 at my present salary. want to thank both you and the Mayor for your consideration and ooperation, and assure you both of my assistance in the future develop - ient of the downtown South Bend. Yours sincerely, C. Wayne Brownell. r. Nimtz (continued): Mr. Brownell, you are the only Director with hom I have ever worked with, but Mr. Wiggins has worked with all of he Directors, I believe, and of course, this is going to be a great oss to me and to the Commission. Word reaches me that you are the ldest employee in the City of South Bend, is that correct? . Brownell: Yes, I'believe that is correct. r. Nimtz: Actually, you are over the retirement age, but I know you eel a great accomplishment in that Ind. R -66 has been completed, r rather it will be once it is approved, perhaps this morning. It s my recommendation to the Commission that we accept with regret he resignation of Mr. Brownell, and approve the agreement stating hat he be retained as consultant from now until the 1st of January t his present salary. Ir. Wiggins made a motion that the resignation be accepted with egret, and that Mr. Brownell be retained as a consultant from eptember 1, 1978, until December 31, 1978, at his regular salary, nd that his vacation time be worked out by agreement by the new Director f the Redevelopment Department and the President of Redevelopment ommission, seconded by Mr. Cira and it was carried. r. Brownell: Interestingly enough, on the day in September, 1974 n which Mr. Nimtz was sworn in, it was the same day that I was sworn n as Acting Deputy Director. Ir. Anderson: What is the process of looking at a new successor, and as one been chosen? -3- COMMISSIONER'S REGULAR MEETING Friday, ugust 4, 1978 4. COMMONICATIONS (Continued) a. Ir. Nimtz: Yes, I have discussed this matter with Mayor Peter J. Nemeth, nd with several members of the Commission, and I would recommend to the ommission that Mr. Carl Ellison be named Director of the Department of edevelopment, without any increase in salary. I have asked Mr. Ellison o be here, and I see he has now just arrived. After talking with the ayor, feelings are that since Mr. Ellison is so adept in receiving arge sums of money and handling them; and knows the regulations con - erning redevelopment, HUD policies and so forth, I am recommending to he Commission that Mr. Ellison be renamed Director of the Redevelopment epartment without additional compensation. r. Robinson made a motion that Mr. Carl Ellison be named the new irector of the Department of Redevelopment, without additional compen ation, seconded by Mr. Wiggins, and it was carried. r. Nimtz: Mr. Ellison, we welcome you as the new Director of the epartment of Redevelopment. You and I have had a close relationship hroughout the last year, and I feel that you know the regulations as ell as anyone, and that you are well qualified to accept the position. fter talking with the Mayor and you, I feel we can really go forward ith whatever the future holds for us. r. Ellison: I am looking forward to working with the Commission, and certainly want to believe that with the assistance of Mr. Brownell, he period of transition can certainly be made much easier for me. I ook forward to the challenge and will do all that I can to help make he department perform as it always has. r. Nimtz: Thank you, Mr. Ellison. s. Derbeck: Does that mean that Mr. Ellison will continue with his resent job as Director of Community Development, and also be Director f Redevelopment? r. Nimtz: Oh yes. r. Wiggins: It has at least a precedent in that Mr. Lennon worked oth these positions at one time, as you well know. r. Nimtz: It is becoming such that both departments are getting ntertwined, particularly financially. I believe Mr. Brownell and r. Ellison have about worn out the steps between the different floors n about the last six months, in relation to our mutual interests. r. Wiggins: There is a distinct inter - relationship. -4 COMMISSIPNER'S REGULAR MEETING Friday, ugust 4, 1978 4. COMMONICATIONS (Continued) a. Ir. Ellison: There is a distinct inter - relationship, and basically, the olicies regarding projects that occur nationally have sort of cleared p the relationship. There has always been cooperation, excellent ooperation between both departments, because the events that took place pstairs,were also happening downstairs. Part of a challenge in accepting he position as Director of Redevelopment is really a method of providing ome continuity with the various programs, etc. I think that in the long un this method of transition will enable us to serve the community well. r. Nimtz: Thank you Mr. Ellison. r. Wiggins: I just made a few notes here and if my memory serves me orrectly, Mr. Ellison, you will be the ninth (9th) person to have eld the position of Executive Director of the Department of Redevelop ent, it began with Mr. Henry Sucher. r. Nimtz: I was kidding Mr. Brownell about his age. There is no secret bout it, you are 71 years old, is that correct Mr. Brownell? r. Brownell: That is correct. r. Nimtz: And of course, the official retirement age is 70 years old, ut I believe that Mr. Brownell is the oldest city employee. r. Brownell: Yes, I believe that is correct, and of course, it is erfectly valid because the statutes we operate under do not have that imitation. r. Nimtz: (Mr. Ellison begins to leave the meeting) Thank you ery much Mr. Ellison, we look forward to working with you. 5. OLD BUSINESS There was no old business to bring before the Commission. 6. NEW BUSINESS a. ommission approval requested for Resolution No. 565, authorizin the xecution of redevelopment agreement for the disposition of land, and he execution of Quit Claim deed,'in the LaSalle Park'Project, Indiana R -57 as follows: Eugene & Elva Williams $1,400.00 Disposition Parcels: 28 -30 thru 28 -34 21 -11 & 21 -10 . Brownell: Have Mr. & Mrs. Williams paid the balance of the money, Brammer? -5- COMMISSIONER'S REGULAR MEETING Friday, ugust 4, 1978 . 6. NEW $USINESS (Continued) (a)• Mr. rammer: Yes, I just collected the remainder of it yesterday. Mr. Robinson: Are these parcels in one section? Mr. rammer: No. About four of them are on Illinois Street, and the others are n Lake and Jefferson Street. The parcels are to be used for gardening. Mr. Wiggins made a motion to approve the adoption of Resolution No. 565, which authorizes the execution of redevelopment agreement for the disposition of land and the execution of Quit Claim deed, in the LaSalle Park Project, Indiana R -57 for disposition parcels 28 -30 thru 28 -34, and 21 -11 & 21 -10, to Eugene & Elva Williams in the amount of $1,400.00, seconded by Mr. Cira, and it was carried. b. commission approval requested for 312 Loan Application r the following: obert M. & Judith Stevens, Jr. $10,200.00 18 /SOU- 2/39/1 615 S. Dale Street outh Bend, Indiana 46613 attie M. Roundtree $ 3,500.00 18 /SOU- 2/38/1 -77 -78 01 S. Kaley Street outh Bend, Indiana 46619 eah Maxine Nice $ 9,800.00 18 /SOU- 2/40/1 014 E. Ewing outh Bend, Indiana 46613 . Brownell: I have all three 312 loan applications before me, and I lieve that all three of the applications are in order. r. Robinson moved for the approval of 312 loan applications to Robert M. Judith Stevens, Jr., at 1615 S. Dale Street in the amount of $10,200.00, o Hattie M. Roundtree at 201 S. Kaley Street in the amount of $3,500.00, nd also to Reah Maxine Nice at 1014 E. Ewing in the amount of $9,800.00, econded by Mr. Wiggins, and it was carried. c. commission approval requested for Change Order #1, Tom ford Home Improvement nc., for an increase in contract price of $840.00, (for an amended contract otal of $47,206.60), at the address of 417 S.'Pulaski; South Bend ; Indiana, s set forth in letter from Mr. Kenneth Schaller; Project Director, Bureau f Housinq South. r. Brownell: Mr. Schaller states in his letter that Change Order #1 relates o 417 S. Pulaski in that... "the front porch requires the repairs listed on he Change Order Form in order to correct the roof leakage. If allowed to ontinue, the leak will damage the porch ceiling and also put in jeopardy he deck which was replaced as listed in bid specifications." The additions re: tear off old roofing and sheathing, replace needed rafters (10), nstall new plywood sheathing, felt and 3 -in -1 asphalt shingles, and nstall metal flashing. The front porch measures 27'xll'. E-11 COMMISSIONER'S REGULAR MEETING Friday, ugust 4, 1978 6. NEW USINESS (Continued) (c) . Mr. Wiggins made a motion to approve Change Order #l, with Tom Ford Home Improvement, Inc., for an increase in contract price of $840.00, at the address of 417 S. Pulaski, seconded by Mr. Cira, and it was carried. d. ommission approval requested for Change Order #2, Tom Ford Home m rovement, Inc., for an increase ln- contract rice of $50.00, for an amended contract total "of' 47, 256.60 - at the - address of 24 S. Kosciuszko, South' Bend, Indiana, as set forth in'letter rom Mr. Kenneth Schaller,' Project Director, Bureau of Housing South. r. Brownell: This Change Order applys to additions pertaining o a front porch to install additional 2 "x4" nailers (40"), and to nstall two (2) additional floor joists (16'). Mr. Schaller do you ave anything to add? . Schaller: If I could, I would like to make a change. The correct dress in the Change Order #2 is "824" S. Kosciuszko. r. Wiggins: In the letter it is stated as "824" S. Kosciuszko, and n the Change Order it is stated as "834" S. Kosciuszko. r. Wiggins made a motion to approve Change Order #1, with Tom Ford ome Improvement, Inc., for an increase in contract price of $50.00, t the address of 824 S. Kosciuszko (address correction noted), econded by Mr. Robinson, and it was carried. . Robinson: What is the change for? r. Schaller: Nailers are needed along the side of the house and also here are several joists (about 8 joists) which were bad when the deck as removed. We did not know about the situation until after they removed he old decking. 7. PROGRESS REPORTS Mr. Brownell: I would like to report verbally that we have prepared a contract to close out with HUD. We have prepared a connection with that contract cons sting of maps of the property remaining unsold in Ind. R -66, the number of parcels, and we have also prepared an inventory of all the personal property (like desks, chairs, tables etc.)to go with it . Mr. Nimtz and the Mayor sign d the close out agreement yesterday afternoon, and it has been properly atte ted. I would like to give the Commission an opportunity to approve the tontract. -7- COMMISSIONER'S REGULAR MEETING Friday, August 4, 1978 7. PROGRESS REPORTS (Continued) (Mr. Brownell showed the Commission the entire contract consisting of maps, etc. as he had stated). Mr. Wiggins made a motion to approve the agreement, and authorize the execution concerning the closeout agreement of Ind. R -66, and that the President and Secretary be authorized to sign the agreement, seconded by Mr. Cira, and it was carried. Mr. imtz: Mr. Brownell, that is quite an accomplishment to have that pro completed. Mr. rownell: Yes, I should report further, that on August 18, 1978, HUD will pay off the two million one hundred and nine five thousand dollars ($2,195,000.00), in project notes still owing in the bank in New York, plus the interest. When I accepted this job, it was ten million ($10,150,000.00) in n tes(with the interest it was ten million, three hundred eighty one thousand dollars ($10,381,000.00), and it was due in June of 1975. It was very shocking for me to learn this, because we had no method available to pay cff the notes, except to sell the land, and the land was not selling. So, am glad to have this project finished, as the notes are now all paid off, and also the relocation claims have been paid (the Telephone Company, and &M Electric). I believe that R -66 (fiscally) will close out very smoo hly. Mrs. Dorothy Deane talked to Ms. Peggy Hudgens-, at HUD this morn ng about the close out figures and Ms. Hudgens thought that the figures were all correct, and advised us to send the papers to them (HUD). So, we eady this afternoon to prepare a letter of enclosure and mail this are cont act, along with the exhibits and the financial figures to HUD. Mr. Brownell: In our Committee yesterday of the South Advisory Board we didn't have a quorum. We usually go over the contracts, and all the things involved in the meeting, before they are presented to the Commission at our next meeting on August 18, 1978. Before our next scheduled meeting (Redevelop meat Commission meeting), Mr. Harcus plans to have another meeting of the South Advisory Board and try to have a quorum and pass on it. Some of the contracts which were bid and will eventually come before the Redevelopment Commission, were bid without the going wage rates under the Davis-Bacon Act, and rather than go back and rebid all of them, we would like to receive some instructions from the Commission if it is possible, to have you approve those contracts and perm t the work to carry on, rather than have to undo it and rebid the contracts. The ommittee and members who were present at the South Advisory Board Meeting aske me to present this problem to the Commission. Mr. imtz: Would this delay everything by about six weeks? Mr. rownell: It would be a delay of this good weather to get the work done. So, actually, we felt very sincerely that we would like to ask your indulgence to gp along with these contracts if you would. COMMISSIPNER'S REGULAR MEETING Friday, ugust 4, 1978 7. PROGRESS REPORTS (Continued) —T Mr. iggins: Do you know of your knowledge whether or not the contractors invo ved have made any arrangements or agreements in terms of wages that were reflected in their bids? Mr. Orownell: I am not aware of this, perhaps. Mr. Harcus can help you. Mr. arcus: We opened the quotations last Friday, and Mr. Schaller says they are in line with prior estimates and with. prior bids. There appears to b no significant change in the quotation figures. Mr. rownell: I noticed in one case, where we rebid the contract without requ ring the wage rates the prices went up, now down. Mr. iggins: I know that the concern here has been that the wage rates being paid are responsible, and are in line with wage rates prevailing in the community. The Bacon -Davis arrangement merely gives us some kind of an acce ted. standard to peg these things on; without it, we are wandering around in n)-man's land. If these contractor's have incorporated into their bids payi g that, or a previous standard, as long as it is a fair wage rate and reas nable, I don't believe we have any quarrels with it. The whole idea here is to make sure that this happened. If it has happened, fine, that sati fies our concern. Mr. kobinson: How many projects are we talking about? Mr. arcus: You have a one bulk bid of approximately ten homes for all four components (electrical, heating, plumbing, and general construction). You have two that were rebid for electrical and they were about eight'.or ten hous s each; so you have three packages coming before you next session. Two are electrical, and one is a composite of four different traits. Mr. iggins: So, to your knowledge and understanding, none of these antici- pate paying less than the previous standard than they had been paying? Mr. arcus: To my knowledge, no sir. My knowledge is that the prices appear comparable to what we have been paying all along. We also have another one by tie way, beyond this, that is bid with prevailing wages, a commercial rate of'prevailing wages which is not a single home, but a construction business. Mr. rownell: I have talked with Mr. Ellison about getting this letter from HUD, and the letter has not yet arrived. Mr. Ellison called me yesterday tryi g to find out the reasons why. We would like to have the admission that Mr. Dew received over the telephone, in writing, over HUD's area manager's Signature for the record, because we don't want any more problems. Mr. arcus: By the way, this Southeast package of twelve homes or more was one 3f the original tabled items from back in April, and if we delay it this time, it may take longer than six weeks because of the prior initial dela . ma COMMISSIPNER'S REGULAR MEETING Friday, August 4, 1978 7. PROG ESS REPORTS (Continued) Mr. imtz: The consensus is Mr. Brownell, that the approval be made to not have the ontracts rebid because of delay in getting the work done. 8. NEXTICOMMISSION MEETING: August 18, 1978, 10:00 A.M. a Thei MOW at < NT being no further business to bring before the Commission, Mr. Robinson I for adjournment, seconded by Mr. Wiggins, and the meeting was adjourned proximately 10:26 A.M. , President -10- . Wayn , Executive Director