HomeMy WebLinkAboutAUGUST 22,1995
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CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY
CLERK
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MINUTES
CITY COUNCIL OF THE CITY OF ARCADIA
and the
ARCADIA REDEVELOPMENT AGENCY
SPECIAL MEETING
AUGUST 22, 1995
The City Cound and lhe Arcadia Redevelopment Agency met In a Special Meeling called
by Mayor Pro lem Kuhn, In lhe absence ~ Mayor Lojeskl, on Tuesday, August 22, 1995,
at 5:08 p.m. In the Arcadia CIty Hall Council Chambers.
ROLL CALL PRESENT: Councllmembers Kuhn, Ulrich, Young, and Lojeskl
ABSENT: Councllmember Chang
1,
It was MOVED by CouncUmember Ulrich, seconded by CouncUmember Young and
CARRIED 10 EXCUSE the absence ~ CounciImember Chang.
TIME RESERVED FOR THOSE IN THE AUDIENCE TO ADDRESS THE CITY COUNCIL
Mayor Lojeskl announced a change In the order ~ the single agenda ttem, 10 first go
through an explanation ~ the staff report, talclng audience communlcallon aftllfWllrds. In
this way, some questions may be answered by the staff report and Council discussion.
2.
RESOLUTION The CIty Manager explained that Ihls Is a special emergency meeting ~ the Council called
NO, 5877 In accordance with the CIty Charter to deal with emergencies. In particular, this meeting
o (, r () _ (] j f.:I, has been called to dlscusa the Downtown 2000 project and the Issues and Implications from
" lhe lack ~ work productMty to date. Following any public Input, staff Is recommending
edoptlon ~ Resolution No. 5877. The CIty Manager presented and read the lItIe ~
Resolution No. 5877: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARCADIA, CAL./FORNIA, DEClARING THAT DELAYS IN THE CONSTRUCTION OF THE
CITY OF ARCADIA OOWNTOWN 2000 STREETSCAPE PROJECT CONSTITUTE AN
URGENT THREAT TO THE PUBUC HEALTH, SAFETY, AND WELFARE, SUSPENDING THE
WORK TO BE PERFORMED PURSUANT TO THE CONTRACT BETWEEN THE CITY AND
THE SULLY-MILLER CONTRACTING COMPANY, AUTHORIZING STAFF TO CONTRACT
WITH OTHER QUALIFIED PARTIES TO PERFORM SUCH WORK AS IS NECESSARY TO
ALLEVIATE THE THREAT, AND AUTHORIZING THE LETTING OF CONTRACTS WITHOUT
ADWRTISING FOR BIDS."
The CIty Attorney stated that Resolution No. 5877 Is the speclllc action which staff Is
recommending that the CIty CouncIl adopt tonight to address what Is deemed to be an
emergency or urgency sltuallon created by a work S10ppage whlch has affected the SUIy-
Miler Contracting Company, the contractor on the Downtown 2000 project. Before the
strike occurred, SUly-MUIer had commenced conslrUctIon on the storm drains In Huntlngton
0riIIe and had severed all flood-protectIon devices In downtown Arcadia. The CIty Attorney
commented that this Is not an adversartal sltuatlon between the CIty and Suly-Miler.
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The City Attorney stated for the record that. "we did receive a letter today from Sully-Miller..,
received itlhis afternoon. and J have delivered that letter to the City Cound, The letter is
their position... eontrary to our taking this action tonight. I understand their position. the I
staff has reviewed it. legal eounsel has reviewed it... our public works people and other
people have reviewed the letter. We understand Sully-MUle(s position, but. we respectfully
disagreed with them, We believe we have to suspend the work tonight and, hopefully, enter
into an emergency contract as soon as possible with someone else 10 do the necessary
work, The intent is not to supplant Sully-MUler.., we. hopefully", they'll work with us. and
with the new contractor we'll be able to remedy the emergency situation, That is all we
plan to do with regards to the current contract.., to try to alleviate the situation having to
do with the potential for rain damage. W rain did occur, And, we have indications from
Sully-MUler lhal... and it's very dear. lhey're unable 10 inform lhe City of when the work
stoppage, the strike wUI be Oller. and they are unable 10 inform the City as 10 when they wUI
be able to recommence work on the project. So. those are some of factual reasons why
we have to take this action and to bring In a new contractor as soon as possible to do
some specific remedial.., or emergency work. and that will be explained to you by Mr.
Baker, The premise for this action... the underlying premise is the need to address the
incipient nature of the rainy season. and technically the rainy season starts in October.
Staff has advlsed us that we have to take some aellon now to address this concern and.
of course. there are no guarantees W it wII rain or when it will rain, but I think you can
recognize the need to take action now. The City Charter does authorize the Clty to enter
Into contracts without going through the formal bid process, which. as you know, Is very
time consuming. Part 01 the action tonight. in the resolution. Is to avoid having to go
through the bid process so we can enter Into contracts as soon as possible. Our
consulting engineer from ASL has been working on getting some potential contractors. Mr,
Karger. who was Acting Clty Attorney during my recent vacation. has been working full-time
on getting the contract lined up so that we can move as fast as possible W the Councl I
adopts the resolution this 9I/enlng. So, those are, basically, some general factors
underlying the resolution which declares the emergency; authorizes lhe City 10 contract
without going through the formal bid process and. If feasible, to use City forces.'
The CIly's consUl\ng engineer. Gary Baker 01 ASL ConsultIng Engineers. stated that the
scope of work 01 the contracl entals construction 01 a new storm drain system parallel to
the existing systllll'l between Santa Anita Wash and San Rafael Road, the construction of
a storm drain In Huntington Drive between Santa AnIta Avenue up First Avenue. and
completion d new storm drain Improvements on the south side 01 Huntington Drive east
of First Avenue. In Older to construct the main line which runs down Huntington Drive and
comes up First Avenue It was necnury to dismantle pieces 01 the First Avenue storm drain
system. CurrenlIy there Is a norHunctIonIng system In the upper reaches of First Avenue.
On the nonh side 01 Huntington Drive, the only storm drain system In place prior to
commencement d the project was curti, gutter, 8tId street pavement serving 10 convey
water In the slnIet and rain water which fell from the roofs onto the streets. Currently no
curb, gutter, pavement, sldewalks or roof drains are In place. All waters that fall on the
nonh side d Huntington Drive or on the roofs 01 the buldlngs wII pond In the area untI it
~ such a point thai. ftoods the buslnesses 01' adjoining streets. causing concern wtlh
regard 10 compliance wflh the Clean Water Act and causing damage to the businesses.
Mr. Baker expIa1ned thai the work which must be done In the downtown area Is 01 an
emergency nalure only; no aeslhellc work will be done. It Is expected thaI the work will
take between four 8tId six weeks 10 construct. The Clty Manager explained lhal In order
10 save lime and money, the contraclor who will be hirad will resolve the emergency. and
also Install as much fInallmprOllements 01 street base. curb. and gutler as possible.
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Hopefully, after the emergency work is eompleted the strike will be Oller, The goal is to
keep construction going through to the end of the project.
In response to a question from CouncUmember Ulrich, the City Manager stated that the
estimated cost involved in this emergency work is $600,000, The City Attorney addressed
CouncUmember Ulrich's concern that the letter from Sully-Miller dated August 22 states that
"the City wUI be in material breaeh of our Contraet K ~ adopts the proposed resolution,' The
City,Attorney stated in part that there is a possibility there will be lawsu~s when this is Oller,
The City understands the letter, and feels that there are a lot of equ~ies w~h regard to
allegations that the City could easily counter. But the important thing at this time is to focus
on the urgency of the situation, The City Is legally taking proper steps as authorized under
the Green Book, which Incorporates various provislons of public contract law Into the City's
contract. In reply to CouncUmember Ulrich's question regarding the availability of
contractors to do the work, the City Manager stated that several are available and Interested
In the job.
Councilmember Young expressed concern about the money, The City Manager stated that
at this point no payments have been made to SuUy-Miller. The funds are still In the account.
Funds will have to be found If the project does exceed the appropriated amount, but that
is as yet uncertain.
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Mayor Pro tern Kuhn asked for clarification of the $600,000 referred to. The City Manager
explained that ~ is an estimate of cost to finish the work as outlined by Mr. Baker. It Is noI
an add~1onaI cost. In response to Mayor Pro tern Kuhn's concern as to the legality of what
the CIty Is obligated to do, the CIty Attomey explained that tt Is the professional opinion cI
staff and consultants that the City musl go forward wlth this action tonight. Prernised on
that determination, this matter Is brought before Council, even though the Suny-Miller
Company believes the action to be premature.
Mayor Lojesld commented that the CIty has worked for over two years with business
owners to get this project going. However, tt Is an Important consideration when staff and
consultants indicate there Is a health, safety, and welfare problem. Contrary to what has
been reported, the project Is not being scrapped.
1.
TIME RESERVED FOR THOSE IN THE AUDIENCE TO ADDRESS THE CITY COUNCIL
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Jim Keown. VIce President. Operatlons, Sully-Miller Contracting Company, stated In part
that as mentioned In his company's letter, Ills requested that the City eouncrs resolution
not be adopted at this tlme. He said they will cooperate to the extent possible N the
reeolutlon Is adopted, while they look at further legal remedies. Mr. Keown noted that SulIy-
MJIer and a rock, sand, and gravel producer In this area which Is being directly stnJCk have
. common ownershlp through a large International conglomerate, but there Is no common
mBIllIgemenlllnkage and they operate as separate entitles. The strike Is directed at Sully-
Miler, but there are Olher contractors who have been affected. The primary target c1the
strtke Is rock, sand, and gravel. ~ this time, all operating engineer agreements In Southern
CaJIfomla have expired. Sully-Miller Is contInulng to etternpl to negollate with the operating
engineers. There are oilers and counter-dfers on the table at the current time and they are
awaiting responses.
Mike Budd. representing his wffe from Barbara's Beauty Supply on Arst Avenue, stated In
part that he compliments the Council for taking action now. However, he Is concerned as
to what trafflc access to stores will be like during Christmas tlme.
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The City Manager stated that the goal Is to open two travel lanes on the north side 01
Huntington Drive and put down temporary asphalt for parking, On the south side.
depending upon scheduling, some worl< may be started, leaving one travel lane open so I
thallhere are at least three lanes open up 10 Christmas, There may be some construction.
but efforts w~1 be made 10 minimize the impact or problems. Mayor Lojeski added lhal
there will be eommunicalions between the City and lhe business associalion and also the
individual businesses,
Mr, Lucarella, owner of Arcadia Imports, 19 East Huntington Drive, staled in part lhal he
opened his store with the understanding thallhe work on the north side of lhe street would
be completed by September 22, He has lost approximately 80% 01 his business since worl<
began and would like 10 know W the CIty Is going to be liable for this loss. W~I the City help
the merchants with grants? Secondly, he asked W any background check was made 10 see
W there would be any lapse in union contracts before entering into lhe contract with Sully-
M~ler,
The City Attorney answered that the City's posltion Is that It Is not liable for these
unforeseen events. Anyone who feels aggrieved may tue a claim against the City; It w~1 be
reviewed, analyzed, and acted on. The City Attorney could not address the issue of grants,
as he believes grant programs in the City do not take into consideration this kind of unusual
and unforeseen event. With regard to a background check of contractors, the City Manager
explained that as part of the bid process, lhere Is a background investigation 01 the
contractor who Is the lowest responsible bidder. The Sully-MUler Company has a vary good
reputation for projects 01 this type and strong recommendations from other jurisdictions IQr
completing their worl< on lime, on schedule, and on budget. The strike was totally unpre.
dieted. The SuIly-MUler Company was thoroughly lnvestJgated prior 10 the award 01 this bid.
Art Davis, 159 East Huntington Drive, stated In part that he Is concerned with flooding.
Even when the drains are in place and worl<lng properly, behJnd his business at the
northwest comer 01 Second Avenue and Huntlngton Drive there Is a four-fOOl channel 01
water. He encouraged the Counci to move ahead with lis plans to restart the project.
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Marv Dollar, 51 AlIa Street. stated In part that because of horrendous tralllc conditions in
the downtown area she has received the first tralllc ticket of her drMng career. Fortunately,
she was able 10 get It dismissed alter she explained the circumstances 10 a Judge. She
believes It woUd be helpIU to Arcadia residents W they are kept informed 01 what Is
happening with this project In the downtown area. perhaps by means 01 a letter InvItlng
people 10 meetIngs such as this so that they may partlcipate in what is going on In the City.
Paul Thoo"",nn 117 East Hunllngton Drive, asked W II woUd be possible for the CIty or
Sully-Mlller 10 run a water truck ttvough the area. perhaps twtce a week, 10 keep the dust
down. It had been done for a wille and It worked, and now It seems quite dusty out there
agaln.
Garland Roberson. 134 East Huntington Drive, stated In part that his business, Sullivan's
Paint, Is also being affected by lack 01 customers due to downtown constnJcIlon and he has
had to lay 0/1 some employees. He commented that the only ones being hurt by what is
golng on are the sma/I buslness owners In the area. not big businesses and not CIty
employees.
Mayor Lojeskl noted that the CIty Is concerned with and Involved in the situation, and that
Is the reason lor tonight's meeting. The CIty Is collcerned with the health, safety, and I
welfare 01 buslness owners and (Nary citlzen 01 the CIty.
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Gal TheBaeker. owner 0/ La-Tea-Da. 21 EaSl Huntington Drive., asked. In part, what
prOllislons are being made by the City so that W storm drains are not In place when ~ rains
her business wBI not be flooded?
Mayor Lajeskl responded that the City, its Fire Department, and emergency serviees
personnel are always available to handle problems in an emergency. The City is having this
special meeting to try to rectify a potential problem before ~ happens. The City Attorney
reiterated that there are emergency plans In place in case of an early rain. City staff
members may be contacted for more information. The City Manager added that the goal
is that work will be completed by mid-October.
Rebecca Gutierrez. who owns Look Wtthin. 34 EaSl Huntington Drive. Slated In part that
although her business Is hurting. she can "hang In there" because when the project is
completed tt will be benefieial for everyone. She would like the CouncU to do whatever tt
can to get this project completed as soon as possible.
As a matter of Information. Mayor Lajeskl commented that the Slonn drain work being done
is separate from the Downtown 2000 process. It is being done in conjunction wtth the
Downtown 2000 project so that the street wUI be tom up only once.
Marcella Herman, owner 0/ M O's Florist, 10 East Huntington Drive, stated in part that, like
other businesses In the area, her sales are down. She asked how long the construction
work wlI be going on. Buslnesses cannot afford to lose money much longer.
2, CONTINUED It was MOVED by Counclmember Young, seconded by Mayor Pro tem Kuhn and CARRIED
RESOLUTION on roll call vote as follows that Resolution No. san be and Ills hereby ADOPTED. and 10
NO. san AUTHORIZE the City Manager or his designee 10 execute the appropriate contracts, subject
(ADOPTED) to approval as to form by the CIty Attorney.
AYES: Councllmembers Kuhn, Ulrich. Young, and Lojesld
NOES: None
ABSENT: Councimember Chang
The CIty Manager commented that this Is an Important action which Council has taken. If
anyone would like more information, they may go to the project office at 50 East Huntington
Drive. The CIty wIl make an effort to get more notices out to the public. Residents may
call CIty Hall wllh any queslJons they may have. When a schedule for completion is
developed, there wW be meellngs with the merchants. There wil be more confusion and
some congestion, but the goaIls to get to the end. The cooperation and communication
0/ everyone Involved Is appreciated. The CIty Manager retterated that the Cliy Is open to
IlslenIng to resldenls' concerns and comments, and they may feel free to contact CIty Hall.
The CIty Attorney added that tonights staff report and the resolution are public record. He
~ that copies be placed at the project olflce so that they are available for
anyone who woUd like to _ them.
Mayor Lojesld thanked everyone who attended tonlghts meeting. The patience and
cooperation o/everyone Involved, particularly the business association, Is appreciated. He
again noted that . anyone has any queslJons, they may contact the project oIflca or Mr,
Gomez's office at CIty Hall.
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