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HomeMy WebLinkAboutJULY 16,1996 38:0229 OIt'O-~0 o ~'I' </.6 Cf I CITY COUNCIL PROCEEDINGS ARE AUDIO AND VIDEO TAPE RECORDED AND ON FILE IN TIffi OFFICE OF TIffi CITY CLERK MINUTES CITY COUNCIL OF TIffi CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING JULY 16, 1996 (7:00 a.m.) The City Council and the Arcadia Redevelopment Agency met in an Adjourned Regular Meeting on Tuesday, July 16, 1996, at 7:05 a.m, in the Arcadia City Hall Council Chambers for the primary purpose of receiving a report and recommendation on the Downtown 2000 Streetscape and Public Improvement Project. PLEDGE OF ALLEGIANCE Mayor Kuhn, 1. ROLL CALL PRESENT: CounciVAgency Members Chang, Harbichl, Young, and Kuhn ABSENT: CounciV Agency Member Lojeski I It was MOVED by CounciVAgency Member Chang. seconded by CounciVAgency Member Young and CARRIED to EXCUSE the absence of CounciVAgency Member Lojeski, ' OTIffiRS IN ATTENDANCE: William Kelly, City Manager Michael Miller, City Attorney Peter Kinnahan, Economic Development Administrator Gary Baker, ASL, Project Engineer, Downtown 2000 Streetscape June D, Alford, City Clerk 2, TIME RESERVED FOR THOSE IN TIffi AUDIENCE WHO WISH TO ADDRESS TIffi CITY COUNCIL None, 3, MATTERS FROM ELECTED OFFICIALS None, 4, CLOSED SESSION tJl,J,i:9 "'$1" Pursuant to Government Code Section 54956,9(a) to confer with legal counsel concerning the case of Sully-Miller vs. Arcadia and Arcadia vs. Sully-Miller and Seaboara Surety Company, At 7 :08 a, m, the City CounciV Agency ENTERED the CLOSED SESSION, ADJOURNED and RECONVENED the Adjourned Regular Meeting at 8:02 a.m, to continue the regular agenda. I 5. REPORT - Staff presented a report and recommendation on the Downtown 2000 Streetscape and DOWNTOWN Public Improvement Project, including: 2000 STREET- SCAPE PROJ. 0(; <!f~ - ~c;!;;; 1 7/16/96 38:0230 I . Explanation of final project costs and request for approval of contract amounts to various contractors and consultants. . Request for appropriation and reimbursement of $93,575 from Lighting Maintenance District Zone C for conversion of certain street lights from series to multiple circuit. . Request for loan of $1,200,000 to Redevelopment Agency from City Equipment Replacement Fund, and approval of Debt Repayment Plan Loan Agreement. . Request to accept completion of the Downtown 2000 Streetscape and Public Improvement Project and authorize release of the 10% retention in accordance with contract documents. CounciU Agency reviewed the report presented by staff, which gave an explanation of every cost associated with the Downtown 2000 Project from the beginning of the concept when the City hired consultant Michael Freedman of Freedman, Tung and Bottomley, The total project cost to June 10, 1996, is $8,597,000, which includes approximately $600,000 estimated by Sully-Miller Company to be their cost, although no monies have yet been paid to Sully-Miller, I Staff explained added costs incurred due to a problem with design and engineering of a street lighting system, The work of the subcontractor, RWR Pascoe, in the design phase was very slow, incomplete, and inaccurate, and design plans had to be done several times, Some of the problems were: failure to place up-lights in 15 palm trees; an additional cost of $40,000 due to underestimated conduit; and significant extra work which had to be done by ASL Consulting Engineers, the contract administrator, and the inspector to take care of change orders. The added costs were estimated to be between $75,000 and $100,000, The Economic Development Administrator stated that the Sully-Miller Company may be owed approximately $600,000, except for the damages, which have cost the City. and are part of the litigation involving Sully-Miller and the City of Arcadia, The Economic Development Administrator explained that an additional request of $550,000 for Sequel Contractors is due to change orders which occurred in the field, the most significant of which were for street work done on Huntington Drive and First Avenue, I Member Chang asked why are there all of these requests for additional money. The Economic Development Administrator stated that they are due to increases because of the Sully-Miller litigation and the fact that Sully-Miller did not finish the job, requiring that Sequel Contractors and Moore Electric spend more money; the increased costs for ASL to monitor the work and for Willdan Associates to inspect the work; and additional surveying and staking, As shown in stafJ's report, the initial estimate of project costs was $4,760,000 on October 11, 1994, With the award of contract to Sully-Miller and consultant contracts on April 18, 1995, the total construction cost was $4,932,000 and miscellaneous consultant costs were $1,526.000, for a total project cost of $6,458,000, On November 21, 1995, when Sully-Miller was no longer working on the project and Sequel Contractors and Moore Electric were hired, those figures had increased to $5,993,000 for construction and $2,047,000 for consultants, totaling $8,040,000, At the end of the job on June 10,1996, final project costs were $6,431,000 for construction and $2,166,000 for consultants, due in large part to the change orders which were related to the street work, and so on, Final total project cost was $8,597,000, The Economic Development Administrator commented that change orders are generally between 10"/0 and 15% of a job, and since this was a reconstruction job, problems were expected. There was a total of $528,000 of reimbursements and payments from other sources, resulting in a net cost of the project of $8,069,000, 2 7/16/96 38:0231 I Council asked questions of staff regarding the report and recommendation on the Downtown 2000 project. Mayor Pro tem Harbicht expressed his concern that the project has been out of control for months, and "it appears that we just basically opened the checkbook, and whatever needed to be done, do it." Although Redevelopment Agency money has been used for the project, he noted that the Agency is bankrupt, owing the City $5.000,000 and $3,500,000 to low-income housing. and must borrow $1,200,000 to payoff the Downtown 2000 project. The Economic Development Administrator stated it is staff's recommendation that the Agency use the proceeds from the land sale of the Northwest Comer site to repay the short-tenn loan with, probably, some money left over. Staff recommends discussion with the Agency regarding a long-tenn debt payback plan, The Economic Development Administrator pointed out that the unexpected strike situation with Sully-Miller is primarily what put the Redevelopment Agency in debt. The City Manager explained that the $300,000 for the Huntington Drive change order was a cost that could not be ignored. Mayor Kuhn stated that she did not question that it needed to be done, only why it was not known ahead of time that it needed to be done. In response to Mayor Kuhn's concern that there might be a conflict of interest on her part, the City Attorney advised that it was permissible for her to participate in discussion at this time. I Member Chang commented on the gas leak on Huntington Drive at Santa Anita Avenue and asked if the deficiency could have been discovered when work was being done, The Assistant City EngineerlEngineering explained that the Gas Company had installed two parallel lines on the north and south side of Huntington Drive prior to the start of the project, replacing a line which was over 50 years old. After the project was completed, the Gas Company discovered a leak, notified the City. and then cut a portion of the street and restored the pavement. The Economic Development Administrator commented that Sully-Miller began work on the project in June 1995, but the Gas Company was doing work in the streets in March and April, 1995. So from the point of view of the downtown merchants, the process seemed very long. adding to some of the stress which the Council felt. Mayor Pro tem Harbicht stated that there are some things which Council didn't feel because they were not involved in the decisions; $730,000 has been spent over and above what Council approved, Mayor Pro tem Harbicht asked about the possibility of recovering some of these costs. The Economic Development Administrator stated that staff is looking into the matters involving Sully-Miller, RWR Pascoe, and the pavement evaluations done by Labelle-Marvin, a subcontractor of ASL. With regard to pavement evaluations, Ga'Y Baker of ASL Associates gave a detailed explanation of the pavement reconstruction done on Huntington Drive. The City Attorney stated that facts and figures are still being gathered, but it must be considered whether or not there was any real damage and if there are any costs to recover with regard to the way reconstruction was handled, I It was MOVED by Mayor Pro tem/Agency Member Harbicht, seconded by CounciV Agency Member Chang and CARRlED on roll call vote as follows to APPROVE an increase in contract amounts for Sequel Contractors - $550,000. Moore Electric - $70,000, ASL (survey) - $30,000, ASL (construction administration) - $60,000, and Willdan Associates . $20,000 (total all . $730,(00); APPROPRIATE $93,575 in Lighting Maintenance District Zone C funds and reimburse the Redevelopment Agency $93,575 for costs for the conversion project; APPROVE the Debt Repayment Plan and AUTHORIZE the City Attorney and Executive Director to execute the Loan Agreement subject to approval by the City Attorney as to fonn; ACCEPT completion of the Downtown 2000 Streetscape and Public Improvement Project and AUTHORIZE release of the 10% retention to Moore Electric and to Sequel Contractors, subject to the receipt of a $50,000 performance and materials bond from Sequel, approved as to fonn by the City Attorney; that the Redevelopment Agency SCHEDULE a Study Session to review the Agency's long-tenn financial status, 3 7/16/96 I ADJOURN- MENT I I AYES: NOES: ABSENT: 38: 023:, Council! Agency Members Chang, Halbicht, Young, and Kuhn None Council! Agency Member Lojeski At 8:42 a,m. the Adjourned Regular Meeting ADJOURNED to 5:30 p,m" July 16, 1996, in the City Hall Council Chambers for a Regular Meeting to conduct the business of the , Council and the Redevelopment Agency, and any Closed Session necessary to discuss personnel, litigation matters or evaluation of properties, ATTEST: alartiara D, Kuhn, MJor of the City of Arcadia //~ Robert C. Harbicht, Mayor Pro tem ~ 4 7/16/96