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HomeMy WebLinkAboutMinutes-09-04-79-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL/COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOSQNEY ADJOURNED REGULAR MEETING SEPTEMBER 4, 1979 The City Council/Community Development Commission held an adjourned regular meeting at 4:00 p.m., September 4, 1979, in the Council Chamber of the Downev City Hall, Mayor/Chairman Kenneth J. Miller presiding. PRESENT: Council Members/Commissioners: Milton R. Mackaig Lyell W. Swearingen William L. Greene Kenneth J. Miller Mayor/Chairman 3SENT: Theodore H. Jackman Mayor Pro Tem/Vice-Chairman (arrived at 4:05 p.m.) ALSO PRESENT: Charles W. Thompson, City Manager Ronald Leege, Director of Finance John H. Saunders, Personnel Officer ice Nix, Manager of Revenue Thomas Tincher Housing & Redevelopment Coordinator Robert L..Shand, City Clerk -Treasurer CITY COUNCIL Mr. Thompson gave an update of possibly changing the.City's Bank Account. The Bank of Downey, Capital National Bank, and Bank of America have been contacted regarding various services required by the City, including processing of water billings, lock -box, optical scanner, reconcilement, investment service, and leas- ing service. Councilman Jackman arrived at the meeting at 4:05 p.m. Mr. Leege explained function of the bank lock -box and water billing customer tape. The bank could be prepared to take over the City's water billing receipts by January of 1980. Mr. Nix reviewed the city's investment banking procedure. Mr. Bill Wanamaker of Bank of Downey explained the methods involved in corresponding banking. The same process exists with all corresponding banks. Mr. Art Plenert of Bank of America said all of their corresponding banks re- ceive the same fast response. Mr. Thonpson described the leasing services available through banks such as with the Library "LIBS" program. He advocated an open bid procedure for selecting a bank depository with the best service at the least cost. Councilman Swearingen asked why the bid procedure for banking has not been used over the last 20 vears. Mr. Thompson replied the City was very small in the beginning and that possi- blv a policy should now be established to call for bids every few years. Councilman Greene asked for the time frame necessary for the depository chanceover. Mr. Leege said the changeover would require four to six weeks. Mr. Thompson pointed out the City wants the best service at the lowest cost. At least three years should be allowed for periodical bidding consideration. Also, banks must provide 110 percent collateral to secure investment deposits, and the total collateral cannot exceed 50 percent of a bank's total capital holdings. He said it is staff's viewpoint that it does not care which bank provides depository service so long as they render the best service at a low cost. Therefore, .r. Thompson recommended going out to bid to qualified and locally - based banks. He said he has prepared a resolution that states these elements, and the resolution is idertial to a report of August 9th. Council/Community Dev. Comm. Minutes 9/4/79 (adj.) -1- Mr. Thompson referred to a letter from Mr. Holmes of the Bank of Downey, dated July 16, 1979, addressed to Mr. Leege. The letter offered itemized services but lacks a firm base amount upon which to bid. Mr. Thompson suggested drafting specifications on an item -by -item basis and requiring each bank to specify what it would do and at what cost. Councilman Jackman said the Council should make the decision as to which bid should be accepted. He does not object to bids so long as everyone bids on exactly the same thing. Section 4 of the proposed resolution establishing a policy for selection of official depository for City funds was changed to read: "That upon receipt of all bids, the City Council shall select the official depository which.has submitted the lowest or best bid with preference given to local banks where idential or sub- stantially identical bids are received." Councilman Jac,,:man wants to be certain that all banks are billing on the same thing and only on services now being rendered and any other services wanted in the future. Mr. Thonnson reviewed a letter directed to Mr. Holmes of the Bank. of Downey containing items related to the City's depository banking procedure. Mr. Pleneru of Banc of America addressed the Council regarding items to be contained in a depository bid for various services. Bid elements should be con- cise. A two or three year bid service duration is not unusual. Mr. Wanamaker of Bark of Downey addressed the Council and commented that after 22 years its time to make a change, whether its the Bank of Downey or any other bank. He commented on the leasing item. This, he said, is a difficult comparison item because some banks contract through other banks (such as "Chem -lease" of the Chemical Bank of New York) instead of having their own facility. Also, Mr. Wanamaker explained the bond investment marketing situation in California. It was moved by Councilman Jackman, seconded by Councilman Greene, and passed by the following vote to put banking service out to bid and bring back to City Council for approval or disapproval. In answer to a question by Councilman Greene, Mr. Thompson explained the pro- cedure staff will use in preparing the bid specifications. AYES: 5 Council Members: Mackaig, Jackman, Swearingen, Greene, Miller Mayor Miller inquired when the City will go to bid again for depository services. Mr. Thompson commented the bid information would state that new proposals would be called for every three years. Councilman Jackman requested the depository bids be presented to City Council no later than October 23, i979. Councilman Swearingen agreed. Mr. Thompson said if the bids car. be back sooner, stens would be taken to do so. Councilman Greene asked for a progress report by the first meeting in October Mayor Miller declared a recess present. CCM^UNI?^_ DEVELOP=NT C=/1ISST-ON The meeting resumed with all Council Members Mr. Tincher gave a status report on Redevelopment Projects. He said the Mingura project is moving ahead and has submitted plans for Commission considera- tion and approval at the next regular meeting. Negotiation for acquisition of structure is mart of the Mingura nroiect. The owner has agreed to a price of 53500, which was budgeted and established as part of the attachment to the Owner Participation Agreement. The building would be razed at an added budgeted cost of $700. Two other items involve litigation and indicate an executive session. Council/Community Dev. Comm. Minutes 9/4/79 (adj.) -2- Commissioner Jackman asked what is being done about weed abatement on the (Diller) hospital property. Mr. Thompson said the principals will be notified about exterminating the weeds. Chairman Miller inquired regarding the status of an abandoned residence south of the Mingura lot. Mr. Tincher replied the owner has obtained necessary liability insurance and will proceed to demolish the structure. At 5:10 p.m. the meeting recessed to executive session to discuss litigation involving Community Development Commission business. The meeting resumed at 5:47 p.m. with all Council Members/Commissioners present. The Community Development Commission meeting was adjourned. The Council Meeting was adjourned to 7:30 a.m., September 6, 1979, at the Downey Community Hospital, Basement Conference Room B, to review the 1979-80 Hospital �_adcet. z z I Robert L. Shand, Citv Clerk -Treasurer enneth J. Mi , Mayor/Chairman Council/Community Dev. Comm. Minutes 9/4/79 (adj.) -3-