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HomeMy WebLinkAboutSM 09-15-80Septembe 15, 1980 11:00 A. N. Presidin Officer: 1. ROLLICALL 2. SOUTH BEND REDEVELOPMENT COMMISSION SPECIAL MEETING Mr. F. Jay Nimtz, President 1200 County -City Bldg. 227 W. Jefferson Blvd. South Bend, IN 46601 Members Present: Mr. F. Jay Nimtz, President Mr. Lloyd E. Robinson, Vice President Mr. A. Peter Donaldson, Secretary Ms. Paula N. Auburn, Member Legal Counsel: Mr. Kevin J. Butler lopment Staff: Mr. Carl Ellison, Executive Director Mrs. Ann Kolata, Deputy Director Mr. Kevin Horton, Assistant Director Ms. Ann Bathon, Acquisition Specialist Mr. Bill Fox, Relocation Specialist Mr. Paul Falduto, Employment Targeting Asst. Mrs. Hedy Robinson, Secretary ity Development Mrs. Kathryn Baumgartner, Director, Bureau of ff: Housing Mr. Thane Wilson, Project Director Mr. Rich Gushwa, Rehab Specialist News Media: Gues s: APPROVAL OF CLAIMS Ms. Dee Armstrong, Reporter, WSBT -TV Ms. Rosemary Banks, Reporter, South Bend Tribune Ms. Kathryn Brookins On m tion by Mr. Donaldson, seconded by Ms. Auburn, and unanimously carried, the claims tota ling -- $53,156.45 were allowed and ordered to be paid. The authorize claims are: REDEITELOPMENT REVOLVING FUND Payroll: 8 -23 to 9 -05 -80 Credit Bureau of South Bend- Mishawaka Hunt Office Systems Indi a Bell Telephone Company $ 6,384.70 60.00 69.40 370.83 CLAIMS APPROVED South Bend Redevelopment Commission Special Meeting September 15, 1980 2. APPROVAL OF CLAIMS (continued National Association of Housing & REdevelopment Officials $ 17.00 Schilling's Sales Co., Inc. 6.14 Trav lmore 262.00 Smit4 Petroleum, Inc. 57.31 TOTAL $ 7,227.38 REDEVELOPMENT FUND al Express Corporation $ 19.00 TOTAL $ 19.00 ELOPMENT DISTRICT CAPITAL OF 1972 .Associates, Inc. $11,095.26 TOTAL $11)095.26 P.E.A. - EAST BANK AREA Lang, Feeney & Associates, Inc. $ 660.00 S.M. Dix Associates, Inc. 11600.00 TOTAL $ 2,260.00 P.E.A. - IND. R -66 Redevelopment Revolving Fund $23,650.31 Parker, Brunner & Hamilton, Attys. 1,700.00 TOTAL $25,350.31 P.E.A. - 312 LOANS Dea Andrews & Old Building Recycling Co., Inc. $ 23,983.90 Old Building Recycling Co. Inc. & Hattie Jenkins 4,220.60 TOTAL $ 7,204.50 GRAND TOTAL $53,156.45 -2- South Bead Redevelopment Commission Special meeting - September 15, 1980 3. OLD BUSINESS a. Comission approval requested for the ollowing Section 312 loan application: Name Oscar & Brook 701 W. L South Be: Amount Loan No. thryn $81,600.00 18 /OMC- 0011/92/1 s alle IN 46601 . Nimtz: As you recall, Southold involved in this matter, so I squalify myself and place Mr. Robinson the chair. rs. Baumgartner: At the last meeting the pplication showed 100% occupancy figures, nd it was suggested that we change those igures to 90% as well as provide an updated nnraisal. . Ellison: Kathy, did you recalculate the come for the property based on the lower cunancv level? rs. Baumgartner: Yes. r. Ellison:. I presume you still come up ith more income than expenses? rs. Baumgartner:. We have no of estimat ng taxes on the property other than to take he appraised value and divide by three which ivies us the assessed value, then using the resent tax rate to come up with the taxes due n the property. r. Ellison: If they don't maintain 90% ccupancy and if taxes are higher than estimated t is possible expenses could exceed income. rs. Baumgartner: Yes. r. Ellison: Do you expect they would leverage ome of their other resources if necessary to make ood on the payments? rs. Baumgartner: Yes. -3- South Bed Redevelopment Commission Special Meeting - September 15, 1980 3. OLD IUSINESS (continued) a. Mr. Ellison: Do you expect that there will be any danger of 312 loan payments being made based on the fact that expenses associated with the property could exceed income if the occupancy levels are not main - ained and if taxes have to be higher? Mrs. Baumgartner: No. Mr. Ellison: Do they meet the loan require- ments based on the rehab value? From HUD's standpoint will the value of the property after rehab be suitable to meet HUD's eauirements? rs. Baumgartner: Yes. r. Nimtz: As you recall they own other feces of property in this neighborhood. on't they Kathy? rs. Baumgartner: Yes. r. Robinson made a motion to approve he 312 loan application of Oscar & athryn Brookins of 701 W. LaSalle who eauested a loan in the amount of $81,600.00, econded by Ms. Auburn and the motion was arried with Commission Nimtz abstaining. 4. NEW BUSINESS a. Commission approval requested for the following 12 loan applications: Name Amount Loan No. Louise Decker $.6,000.00 18 /OMC- 0011/117/1 907 Napier South Bend,, IN Ben & He y Robinson $21,000.00 18/H- 003 - 1/119/1 910 B1a' e South Be d, IN Deborah Williams $1531200.00 18/H- 003 - 1/118/1 601 N. Blaine South Be d, IN -4 South Bead Rededevelopment Commission Special Ileeting - September 15, 1980 4. NEW �USINESS (continued) a. continues ..... Name Amount Donald & Lois Land $ 8,650.00 1023 California South Bend, IN Terrence M. Finney $ 5,550.00 1320 Fas nacht South Be d, IN John F. Ridnicki $24,200.00 721 Cottage Grove South Bend, IN Geneva Dudley $26,650.00 410 Bird ell St. South Bend, IN Richard . Joyce C. Solm s $18,000.00 1240 Lincoln Way West Bernice 111more $14,600.00 1126 W. Jefferson Blvd South Be d, IN Andre & Terry Baldwin $ 8,450.00 1142 N. Cleveland South Be d, IN Mozell Hughes $19,950.00 1040 LaSalle Ct. South Bend, IN Carlis & Priscilla $24,600.00 Phillips 1106 W. Washington South Be d, IN Rosa L. Norsworthy $ 9,000.00 531 LaPorte Ave South Bend,, IN Bert H. Wiseley $10,050.00 614 E. Broadway South Be d, IN -5- Loan No. 18/H- 003- 1/120/1 18 /H- 003/121/1 18/H- 003/122/1 18 /OMC- 0011/103/1 18 /OMC- 0011/113/1 18 /OMC- 0011/108/1 18 /OMC- 0011/99/1 18 /OMC- 0011/111/1 18 /OMC- 0011/87/1 18 /OMC- 0011/112/1 18 /OMC- 0011/107/1 South end Redevelopment Commission Specia Meeting - September 15, 1980 4. NE� BUSINESS (continued) a.l continues... Na� Amount Cliffo d & Ann $ 6,800 00 Fi lds - 1017 E. Donald South lend., IN Ulyses Ratchford $141,350.00 202 N. Studebaker South lend, IN Loan No. 18/OMC- 0011/110/1 18 ?OMC- 0011/113/1 Mr. Ellison: The Commission's attention should be directed to the second loan where Ben $ Hedy Robinson request a loan of $21,000.00 in connection with Urban Homesteading. Mrs. Robinson works for us and it is necessary that we make a public disclosure and that there also be a waiver from HUD in this situation. Mr. Nimtz: This is the same procedure as when the policeman bought the -lot in LaSalle Park? Mr. Ellison: That is correct. The waiver will be applicable both technically to the Homesteading partici- pation and to the 312 loan. Kathy is anything notable in any other of these? - Mrs. Baumgartner: Yes. Tower Federal will be paying off Carlis and Pricilla Phillips's land contract and this is the first time we have ever dealt with private financing and 312 loans. Also the loans which have the loan number H -003 are all homesteader's that were awarded their property two Friday's ago. Mr. Robinson made a motion that the 312 loans except Ben & Hedy Robinson's be approved, seconded by Ms. Auburn and the motion was unanimously carried. Mr. Donaldson made a motion that the redevelopment staff take the necessary actions, to obtain a waiver for Ben & Hedy Robinson as required under HUD regulations and to approve a 312 loan for Ben & Hedy Robinson subject to receipt of the HUD waiver, seconded by Ms. Auburn and the motion was unanimously carried. South Bead Redevelopment Commission Special Oeeting - September 15, 1980 4. NEW BUSINESS (continued) a. continues ..... Mr. Nimtz: For the benefit of the reporter here are certain regulations, when we do y business with a city employee, we have to get a waiver from HUD. Recently a police- man bought one of the vacant lots in LaSalle Park and we had to go through this procedure o there would be no criticism that an employee is getting an advantage over anyone else. That Is what we are doing here this morning, dis- closing that Hedy is an employee of the City d requesting that HUD give us a waiver which says they have no objections to our doing this d that we followed the other procedures that are required by them. b. (omission approval requested for the following ection 312 loan bid contracts, in accordance Pith recommendation of the Bureau of Housing, subject to legal counsel review, and South Bend Common Council approval as applicable: Name Contractor Bid Amount G. Dudd1 y Brown $21,107.00 410 Bird ell M. Hughes Diedrich $16,773.00 1040 LaSalle B. Elinor Diedrich $14,023.00 1126 Jefferson B. Wise1 y Tri -State $ 9,589.00 614 Broadway A. Fields Stickler $ 6,430.00 1017 Don ld R. SolmoE Aardvark $17,295.00 1240 Lin olnway West U. Ratchford Aardvark $13,765.00 202 Stud baker R. Norsw rthy Aardvark $ 8,555.00 531 LaPo to Andre erry Baldwin Diedrich $ 8,031.00 1142 N. Cleveland -7- South Bead Redevelopment Commission Special Meeting - September 15, 1980 4. NEW BUSINESS (continued) b. dontinues.... 1. Ellison: We did not include the bulation sheet for these contracts so will go through each one individually d ask that the Commission act on them 1 at the same time. Stickler Co's. bids ep coming in consistently low, are they derbidding? . Baumgartner: Yes. r. Ellison: Is it the Bureau's impression hat Stickler will not provide as good a job as the next highest bidder? s. Baumgartner It is classic to use a 10% gure in awarding bids. However, as our cost timate handbook is not updated we use the 20% gure. We assume that anyone bidding less than % under our-cost- estmate is not taking inflated sts of materials and service into account. Mr. Ellison: Is there any way Stickler could tcioutablish that we are perhaps being arbitrary and ri s if he continues to underbid and we don't and the bid to him? s. Baumgartner: The only thing that I can say that Stickler has been increasing his costs over period of time and that he is realizing he can't nstantly underbid. Whether he can make that charge not I don't know. . Auburn: Isn't he fairly new in the construction i rehab business? . Baumgartner: As a general contractor, yes. . Nimtz: He has done a lot of plumbing work down rough the years. Auburn: Yes, on plumbing but not in the contract- business. Nimtz: Have you gotten anything back from him kerning the fact that he is the lowest bider and haven't awarded him any of the contracts? South Bead Redevelopment Commission Special Meeting - September 15, 1980 4. NEW BUSINESS (continued) b. dontinues.... . Baumgartner: No. Because he has eived-enough jobs to keep him happy he has a number of things going on side. . Robinson: When you put these things for bid don't you make certain require - ats and certain specifications that they Lre to meet? And regardless of what his ice is I think you would have to live to your bid specifications. . Baumgartner: We do. r. Robinson: Then why don't you hold his ose to the grindstone and lets find out what e can do. I can't see if he is continuously of meeting the requirements of what you think s in the best interest of the property owner f you have a bid specification he sure as heck as to do what he promises he will do. I say ets award him a contract and see what he will rs. Baumgartner: We have awarded him some. e are obligated to compare the bids to our ost estimate and make a determination whether he bids are to high or to low. Butler: Kathy, have you had discussions th him to determine why, he is coming in low? -s. Baumgartner: Yes. He feels he can do C or that amount. Until people really start L a job, they are still thinking of doing it ieir way, using the type of materials they Link they are going to use. There have been number of times where jobs had to be done -er entirely. If in fact we find that we •e able to make a comparison and find his ices are legitimate to those- being charged people on the streets we will change our ,int of view but right now we are trying to .intain our policy of not awarding contracts .sed on bids that differ by 200 of our cost - timates. Auburn: I would like to see you continue follow the rule of thumb that we have been M South Be d Redevelopment Commission Special eeting - September 15, 1980 4. NEW BUSINESS (continued) b. Ms. Auburn continues....... ng; then give us a, report back n he has had the opportunity to a couple of bids. That way we can what kind of quality we've got m Mr. Stickler and determine if re were any problems with materials t he used. r. Robinson: In other words, if I'm istening carefully and reading between the Ines, what you are telling me is that we re still faced with the problem of inspec- ions. Even though you are rehabing a house ou don't have enough people to keep the em- loyer honest. [rs. Baumgartner: Yes, we have enough people ut until we are able to make better judgements n the costs of rehabing the house we have to se the 20% comparison figure and our.best udgement. r. Robinson: I can't understand why, if you ave the proper inspection to make sure that your id specifications are met, you don't let the ontractor try to do the job. You can make him o the job according to the specifications he bid . Baumgartner: We can. r. Nimtz: The thing of it is convenience to the roperty owner. You get the house all torn up and he contractor does his work and you make him redo t and it gets all torn up again. I think they are onceined for the convenience and the welfare f the property owner. irs. Baumgartner: Also, the loan is a one shot deal. 'ust say we get Joe Contractor off the Street and he ;ivies us a very low bid. We give the loan on that mount of the bid and he gets 1/3 of the job done end says, forget it, then we have to rebid that portion nd'odds are good that we will not be able to finish .hat job with the money left over from the loan. That .s why they have written into the guidelines that we gave to compare bids to our cost - estimate. -10- South Bead Redevelopment Commission Special Meeting - September 15, 1980 4. NEW FUSINESS (continued) b. continues... . Auburn: When do you anticipate at your new cost- estimator will be on 9rd and have your books updated? Mrs. Baumgartner: The cost estimator is on board now. We need to replace a ehab Specialist. Once that position is filled the cost estimator will be --able to .devote ful1t. me to. that task. . Auburn: When do .you suspect you will able to come back to us as a commission i say that you have your cost - estimate zdbook updated? 's. Baumgartner: Late this fall. Nimtz: I agree with Mr. Robinson, is give him (Mr. Stickler) the job and e what kind of work he can do. . Robinson: You have other means of dress if a contractor says he can't finish job. s. Baumgartner:, Yes, we do. Butler: We have had a number of situations where we have gone back W the contractor, had the work redone aid the contractor is no longer in business d does not have the assests to hold him t the original agreement, etc. Robinson: This is not Mr. Stickler's first job so he surely should know what he is doing. He 'is in a new field, if he makes a mistake he has enough money where he won't go out of business, he has been ii business too long. He has been a reput- a le employer in the plumbing industry and iE he wants to take a flyer on something I still say it is worth a gamble. If he is willing to take the risk and we have the people that will do the inspection and stay oi top of one project to see.that he does the j b, then I say go ahead. 11 South Be d Redevelopment Commission Special Meeting - September 15, 1980 4. NEW BUSINESS (continued) b. ontinues.... r. Butler: How much is the one recommended or award to Stickler? r. Donaldson: $6,000.00 roughly t t. Butler: The one for $6,430.00 is it elow the estimate? Irs. Baumgartner: No. [r. Butler: He was the low bidder but he gas not below the estimate. [rs. Baumgartner: Right. [r. Butler: Was he somewhat below the estimate? [r. Ellison: Yes, about $600.00. [r. Nimtz: Any further questions concerning his one (Stickler)? Mr. Robinson would you ike to make a special motion on this one? [r. Robinson: No I'm going to vote against it. :r. Donaldson made a motion that the Section 312 oan bid contract for G. Duddley, 410 Birdsell, e awarded to Brown for $21,107.00 seconded by rs. Auburn. Commissioners Auburn, Donaldson & imtz voted in favor, Mr. Robinson voted against nd the motion was passed. r. Butler: Kathy, does your cost - estimator or oes anybody sit down with the low bidder, although heir bid is greater than 20% below, and go through he items to see whether or not they were bidding n and that they would be providing materials that ould be required for the project? rs. Baumgartner: No. r. Butler: Is that feasible? rs. Baumgartner: No. r. Ellison: Kathy do you think the primary reason or the bid differential is the materials and tech - ae used? Could there be a difference in wages? -12- South B* Redevelopment Commission Special Meeting - September 15, 1980 4. NEW BUSINESS (continued) b. continues.... . Baumgartner: No. s. Auburn made a motion to accept he 312 loan bid contracts and award hem as follows: 1) M. Hughes of 1040 aSalle -- contractor: Diedrich for 16,773.00 2) B. Elmore of 1.126 Jeffer- on-- contractor: Diedrich for $14,023.00; ) B. Wiseley of 614 Broadway -- contractor: ri- State, for $9,589; 4) A. Fields of 017 Donald-- contractor:Stickler for 6,430.00; 5) R. Solmos of 1240 Lincoln - ay West- contractor:Aardvark for $17,295.00; )'',U. Ratchford of 202 Studebaker -- contractor: ardvark for $13,765.00, subject to legal ounsel review and South Bend Common Council pproval, seconded by Mr. Donaldson, and the otion was unanimously carried. Donaldson made a motion to accept the 312 n bid contract and award it as follows: Norsworthy of 531 LaPorte -- contractor: dvark for $8,555.00, subject to legal counsel iew and South Bend Common Council approval, onded by Ms. Auburn, Commissioners Auburn, ialdson and Nimtz voted in favor, Commissioner inson voted against, and the motion was carried. r. Robinson made a motion to accept the 312 loan id contract and award it as follows: Andre & Terry aldwin of 1142 N. Cleveland-- contractor:Stickler for 7,908.00, (it was originally recommended that the ontract be awarded to Diedrich by Bureau of Housing), abject to legal counsel review and South Bend Common ouncil approval, seconded by Mr. Donaldson, and the otion was unanimoulsy carried. 5. NE)q COMMISSION MEETING 11 The ext regularly scheduled South Bend Redevelopment Co fission Meeting will be held on September 19, 1980 at 0:00 A.M. The e being no further business to come before the Co fission, Mr. Robinson made a motion that the meeting be adjourned, seconded by Mr. Donaldson, and the motion was unanimously carried. The meeting was adjourned at 11: 1 A.M. -13- NEXT COMMISSION MEETING ADJOURNMENT Sout4 Bend Redevelopment Cormnission Spec al Meeting - September 15, 1980 z, President Pick McMahon; Executive Director 14