HomeMy WebLinkAboutMinutes-04-07-82-Adjourned Regular Meeting9s1
MINUTES OF THE CITY COUNCIL
OF THE CITY OF DOWNEY
ADJOURNED REGULAR MEETING
APRIL 7, 1982
The City Council of the City of Downey held an adjourned regular meeting at
4:00 p.m., April 7, 1982, in the Council Chamber of the Downey City Hall, Mayor
Milton R. Mackaig presiding.
PRESENT: Council Members:
Milton R. Mackaig Mayor
Lyell W. Swearingen Mayor Pro Tem
James T. Quinn
Robert G. Cormack
Theodore H. Jackman
ALSO PRESENT: John W. Donlevy, City Manager
Royal M. Sorensen, City Attorney
Dudley Lang, Assistant City Manager
Ronald W. Leege, Director of Finance
Harald J. Henriksen, City Engineer
Robert L. Shand, City Clerk -Treasurer
Civic Center Construction Bid
Reporting on the bids received, Mr. Donlevy stated the three top bids are be-
ing reviewed, but there is a question on bids one and two as to whether they may
want to pull out. If so, the contract would go to the third bidder, who has
indicated a definite desire.
Mr. Bob Wielage of Gibbs & Gibbs, Architects, mentioned the low bidder, Berry
Construction Company, and the second low bidder, P & A Construction Company, have
both sent telegrams, as well as verbal communications, stating there was an error
in the computations by the sub -contractors and that they wish to withdraw. J. A.
Stewart Construction Company has been contacted and indicated they would be happy
to accept the contract. He suggested the Council authorize an amount equal to the
third bid and then decide at a later date to pass on bids one and two. It is his
recommendation, if acceptable to the City Attorney, that the Council pass up bids
one and two because of possible litigation, -bond problems, etc. Mr. Wielage said
if bids one and two are passed, he would suggest the Council hold the bid bonds
for bidders two, three and four.
Mr. Donlevy requested the Council accept the 12 bids received and said staff
will come back with a recommendation as to the final bid when it comes time to
award the contract later this month.
It was moved by Councilman Swearingen, seconded by Councilman Quinn, and
passed by the following vote to accept the 12 bids.
Mayor Mackaig would like to exclude the first two bids.
Mr. Sorensen said if the first two bids are excused and the bids are allowed
to be withdrawn, the two companies cannot rebid on this project. Also, there is
a provision in the statute that a bidder may be relieved of his bid with the con-
sent of the City, or the City can declare a penalty in accordance with the bid
bond, and then it would be up to the bidder to seek to recover in court.
AYES: 5 Council Members: Swearingen, Quinn, Cormack, Jackman, Mackaig
Mr. Wielage commented on the estimated costs for renovating the City Library.
The Library addition and remodeling is estimated at $920,250.
by the following vote to request the Civic Center Corporation to obtain Bid Bonds.
Mr. Litten mentioned the approximate amount of the bonds will be $12.5 million
based on a $9 million estimated construction cost.
AYES: 5 Council Members: Swearingen, Quinn, Cormack, Jackman, Mackaig
Mr. Litten commented on the Official Statement, which he said is currently in
proof form. Any changes would be subject to approval of the bond counsel and the
City's counsel. He then mentioned it has been requested by Patricia Barnett of
Orrick, Herrington & Sutcliffe that the Council approve bonds in the maximum amount
of $13 million, and he pointed out the final Official Statement will contain the
precise amount of the bonds, which he estimates will be less than $13 million.
Ms. Barnett explained the exact amount of the bonds will be determined by the
financial consultant, to be approved by staff and the City Attorney. This amount
will not be subject to change by anyone bidding on the bonds. The only amount that
can be changed is the amount of interest in the market, and it will be under sealed,
competitive bids. The non-profit corporation will meet following the Council meet-
ing to authorize the official notice of sale and going to bid.
It was moved by Councilman Swearingen, seconded by Councilman Quinn, and passed
by unanimous vote to approve the Official Statement.
It was moved by Councilman Cormack, seconded by Councilman Swearingen, and
passed by unanimous vote to grant consent to Dean Witter Reynolds to bid at public
competitive sale of bonds.
Mr. Donlevy explained everything is on schedule, and the final amounts will
be presented to the Council at the April 22nd meeting.
Mayor Mackaig introduced former Mayor and Councilman Richard M. Jennings, who
was present in the audience and is a member of the Civic Center Corporation.
The meeting was adjourned at 4:38 p.m.
A.
Robert L. and, City Clerk -Treasurer ton R. Mackaig, Mayor
Council Minutes 4/7/82 (adj) -2-