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HomeMy WebLinkAboutMinutes-09-06-67-Regular MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY SEPTEMBER 6, 1967. The City Council of the City of Downey held a regular adjourned meeting at 12:30 P.M. on September 6,, 1967, in the Council Chamber of the Downey City Hall. This meeting was adjourned from the regular meeting August 22, 1967, to this time bjrA4rJ= of the Council. The City Z'1.3nported that a copy of the notice of adjournment was posted as required by law, the notixe of -the adjournment was given as provided by law. The clerk has on file the proper affidavit covering the foregoing. PRESENT: Councilmen? Dunnum, Temple, Dickerson, Corbin ABSENT: Councilman: Morton ALSO PRESENT: Oren L. King, City Manager Robert Shand, Director of Finance $rvin Spindel, Director of Public Works Della Doyle, City Clerk Alberta Pfeiffer, Deputy City --Clerk Mr. Herman B. Zelles of Stone and Youngberg presented a report on the bids on the revenue bonds for the Downey Community Hospital, there being two bids submitted as follows: 1. Bank of America N.T. & S.A. for Boettcher & Co. and William E. Pollock, Inc.: Principal Amount Maturing Rate of Interest ^' $1,300,000. 1971 to 1982 Incl. 6% Total Interest $7,5100092.50 470,000 -1983 to 1985 Incl. 5k% Less Premium 1,500.00 540 000 1986 to 1988 Incl. 4.90% Net Interest Cost 7,508,592.50 3,940,000 1989 to 2002 Incl. 5% Net Interest Rate 5.0941% 2. Security First National Bank, as Agent for Merrill Lynch, Pierce, Fenner & Smith Inc. on behalf of the following: Merrill Lynch, Pierce,Fenner & Smith, Inc./Manager Council Minutes - 9/6/67 -1- $7,357,822,50 None 7,3570822.50 4.991907 J. Barth & Co. Eastman Dillon, Union Securities & Co. Francis I. du Pont Co. Goldman, Sachs & Co. Goodbody & Co. Hayden, Stone, Inc. R. H, Moulton & Co. John Nuveen & Co., Inc. L. F. Rothschild & Co. Shearson, Hammill & Co. Stone & Youngberg Taylor & Co. Walston & Co. Inc. First California Co. Roberts, Scott & Co. Inc. .--. Tannen, Winslow & Co. Inc. Principal Amount Maturing Rate of Interest $ 555,000 1971 to 1976 Incl. 6.007. Total Interest 345,000 1977 to 1979 Incl. 5.50% Less Premium 400,000 1980 to 1982 Incl. 5.25% Net Interest Cost 2,370,000 1983 to 1994 Incl. 5.00% Net Interest Rate 2,580,000 1995 to 2002 Incl. 4.90% Council Minutes - 9/6/67 -1- $7,357,822,50 None 7,3570822.50 4.991907 Mr. Zelles stated he had verified the figures contained in the bids and the amounts were correcta showing the low bidder to be Merrill Lynch, Pierce, Fenner & Smith, Inc,, and that their bid was well within the amount of bids expected. The net interest cost shows a difference between the two bids of $150,770.00. Mr. Zelles also stated he had been working on the amount of rent due the Hospital Authority by the City and the Hospital Foundation, arriving at a figure of $395,000,00 which is $2,000.00 a year less than was estimated. It was recommended that the bid of the Merrill Lynch Syndicate be accepted, and that the Hospital Authority be directed to award the bid and take whatever steps are necessary to award the construction contract. Upon inquiry as to Stone and Youngberg's being a member of the Syndicate which might cause a conflict of interest, Mr. Zelles stated thdre is no conflict and explained that the distribution of the bonds is made by Merrill Lynch with Stone & Youngberg being delegated 7,28% of the bonds. RESOLUTION NO. 1963 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY, CALIFORNIA, APPROVING AWARD OF REVENUE BONDS OF CITY OF DOWNEY COMMUNITY HOSPITAL AUTHORITY The resolution was read by title only. It was moved by Councilman Temple, seconded by Councilman Dickerson and so ordered that further reading be waived. It was moved by Councilman Dickerson, seconded by Councilman Temple and passed by the following vote that Resolution No. 1963 be adopted. AYES: 4 Councilmen: Dunnum, Temple, Dickerson, Corbin NOES: 0 Councilmen: None ABSENT: 1 Councilman: Morton RESOLUTION NO. 1964 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY, CALIFORNIA, APPROVING AWARD OF CONSTRUCTION CONTRACT BY THE CITY OF DOWNEY COMMUNITY HOSPITAL AUTHORITY The resolution was read by title only. It was moved by Councilman Temple, I econded by Councilman Dickerson and so ordered that further reading be waived. It was moved by Councilman Temple, seconded by Councilman Dickerson and passed by the following vote that R4601: tion No, 1964 be adopted, awarding construction contract of Downey Community Hospital'to Steed Bros. Construction Company in amount of $3,886,426. AYES: 4 Councilmen: Dunnum, Temple, Dickerson, Corbin NOES: 0 Councilmen: None ABSENT; 1 Councilman: Morton Mr. King reported that acquisition of right of way had been completed with the exception of one parcel in Select System Project No, 86 on Telegraph Road. It was recommended that, .7#00.00 be authorized to the property owner plus improvements in exchange for the -right of way. It was moved by Councilman Temple, seconded by Councilman Dickerson and passed by the following vote to suthorize:$'7 40.00 payment to property owner, Mr. Philip J, Albaum, 9416 Telegraph Road, for acquisition of the land in exchange for the improvements, including the relocation of the.,,sign. AYES: 4 Councilmen: Dunnum, Temple, Dickerson, Corbin NOES: 0 Councilmen: None ABSENT: 1 Councihmen: Morton The City Manager stated it is recommended by the members of the Water Board to enter into an agreement with the Firestone Tire and Rubber Company, for the purchase of 100 acre feet of water in the Central Basin for the current year October 1, 1966, to September 30, 1967, The cost to the Water Department wild be $14.00 per acre feet or a total of $1,400 and will come from Account No. 82100, the current budget item for purchased water, saving the Ctty approximately $600 to $700. Council Minutes - 9/6/67 -2- I" 2963 It was moved by Councilman Dickerson, seconded by Councilman Temple and passed by the following vote to authorize entering into an agreement with Firestone Tire and Rubber Company for purchase of 100 acre feet of water in the Central Basin and authorize the Mayor or City Manager to sign the agreement to this effect. AYES: 4 Councilmen: Dunnum, Temple, Dickerson, Corbin NOES: 0 Councilmen: None ABSENT: 1 Councilman: Morton Mr. Glenn Jones, Administrator of Downey Community Hospitalo stated the ground breaking ceremonies for the new Downey Community Hospital will be held possibly on September 26, but definitely prior to October 1. There being no further business to come before Council, the meeting was adjourned at 12:55 P.M. 's r Delia Do l Ben 'd Corbin City Cle k Mayor Council Minutes - 9/6/67 -3-