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
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