HomeMy WebLinkAboutMinutes - City Council - 1968-04-12 96
City Council , Adjourned Regular Meeting
Pol i ce Dept . & Council Chambe rs Bldg.
Redding, California '
April 12, 1968 12: 00 Noon`
The meeting was called to order at 12:10 P. M. by Mayor Moty with the
following Councilmen preserit: Denny, Doherty, and Moty
Absent: Councilmen Chatfield arid Ful'ton ' ' " �
NOTE:: Councilman Chatfield ente red the meeting at 12:25 P. M. and
Councilman Fulton entered the meeting at 1:25 P. M. as indicated
below.
CIVIC AUDITORIUM
City Atto rney Mu rphy' submitted a p rog re s s repo rt on the Civic Audito rium
bid awards, dated April 12, 1968. Mr. Murphy also reviewed a letter
received from the Economic Development Administration, dated April
10, 1968, and stated that two requirements have been added that were
not discussed at the meeting in Seattle; i. e. , EDA requests that the City
provide a compl'ete -set of the worksheets and recapitulation sheets of the
gene ral�contractor, and EDA lias added a second contingency fee (Item E
on page 2 of the EDA letter) in an amount of $9, 650. Mr. Murphy also
said that the computation of the architects fee by EDA is $3100. high;
��� therefore, instead of $2, 058, 000 City funds required, the figure should
be $2, 054, 900.
Mr. Murphy again reviewed the alternatives open to Council re awarding
the bid for the Civic Auditorium as outlined in his memo of April .5th.
In reviewing the EDA letter, Mr. Murphy called to Council's attention
the fact that the cost of seating has been eliminated and, if Council elects
to proceed as suggested by EDA, it will be necessary to adopt a resolution
stating that the required seating will be provided by the City from other
City funds separate and distinct from the $1, 800, 000 proceeds of the
bond sale, by a specified date (January 1, 1970). He stated that adoption
of the resolution regarding seating still preserves the three alternate
, courses of action regar,ding' seating bids: 1) rejecting all bids and
rebidding of seats; 2) reject all bids and instruct staff and architect
to negotiate with one or more seating manufacturers for construction
and installation of seats; or 3) to accept tlze only legally qualified bid
that has been submitted (Safway bid of $318, 000 with deductibles in-
cluded or 1470 seats at a price of $223, 000).
Councilman Chatfield entered the meeting at this point and City Attorney
Murphy reviewed the information set forth heretofore.
Mr. Murphy submitted the following data re funds on hand and costs:
Funds on Hand
Sale of Bonds $1, 800, 000
Council Appropriation 180, 000
EDA Grant 518, 000
Accumulated interest on bonds=�� 100, 000
Total � $2, 598, 000
Turn Key Cost
Auditorium, Phases 1, 2, ancl 3 $2, 572, 900
Seating 259, 200
Storage Building 15, 000
Furnishings (silverware, tables) 20, 000
Total $2, 867, 100
Amount City is short and must make up $ 269, 100
=��If interest money is not used on the project it will have to be refunded to EDA.
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Councilman Doherty asked what would happen to the EDA grant if the
City were to go back to the drawing board to effect savings. Mr.
Murphy replied that EDA did say that one of the City's alternatives
was to reject all bids and he feels that the grant would remain avail-
able long enough to make minor changes to reduce the cost of the
structure. Mr. Murphy further stated that there is one area of
substantial savings that he does not believe would incur additional
' ! architectural expense. He explained that the specifications for the
� building require a special kind of form for pou'ring concrete in place.
This will give a finished design of vertical ridges on the walls instead
of the smooth-type finish that is obtained from the usual plywood forms.
Mr. Murphy said it was the opinion of Mr. Blackard of EDA that the
elimination of this type of form and permission to construct with con-
ventional forms throughout would result in substantial savings in the
forming cost. A lesser saving could be achieved by eliminating such
I forms from areas not easily visible. Architect Dick Smart said that
, the use of plywood forms would require painting the exterior walls,
' whereas by the use of the forms specified, painting is not neede.d.
Mayor Moty said he was somewhat hesitant to praceed without a full ,. � �
Council being available: He mentioned that�Council went to the.people
with a $l, 800, 000 bond issue and that the cost for the project;is now
well above $1, 000, 000 over that. He feels that a decision of this type
is of sufficient importance that full Council should consider it.
At this point it was learned that Councilman Fulton would be able to
; join the meeting shortly, so the meeting was recessed at 12:50 P. M. ,
: awaiting hi s a r rival.
T.he meeting was reconvened at 1>25 P. M. .with Councilman Fulton
� present, and he was briefed on al�l of the matters dis-cussed he.r.etofore.
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� A general discussion was held with rega-rd to the alternatives open .to
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' Council. Councilman Denny pointed out that he feels that the low bid
' and even the reformed low bid is very c.ompetitive. Councilman
, Doherty said he does not question that the bid is competitive but feels
that the plan is out of step with the funds that are intended.to be .made
available. He believes there should be a re-examination of some of
the elements of the design that would come closer to the budgeted
figure. Councilman Denny said he would like very much to proceed
with the bid, and if asked to weigh this project against others that
required unbudgeted financing: by the Council he would give this a
number one priority, as it is going to be a major factor in the growth
and prosperity of the City.
� Finance Director Courtney was asked about the availability of funds
� to finance the Auditorium. He stated that the question is basically
� not whethe r the City ha s the capability of funding thi s p roj ect, but
that it is a question of priority. Is the Council and the City willing
to establish priorities ? Mr. Courtney said that the City is faced
with extremely heavy financial requirements -- the sewage treatment
' i plant, the airport, the Midtown project, sharply increasing salary
� i costs each year, plus the cost of general gove.rnment services. In
conclusion, Mr. Courtney said he believes it is possible to fund this
p rog ram by e stabli shing diff e rent p rio ritie s and doing a little belt
tightening.
Councilman Chatfield said that f rom the inception he has been ve ry
definite in his belief that the City should not exceed its budget in
this project. However, he is concerned that if an attempt is made
i to remove some of the costs, it will result in additional architectural
expense which will negate the savings.
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Architect Dick Smart was asked if he knew of any area where substantial
savings� could be effected with minimal architectural changes. He
replied that it would take some study and committee meetings which
might take as long as three months. The question of deducts rather
than add-ons to the contract was discussed, and Mr. Smart said he
does not believe the City can delete under the framework of the
contract. He also pointed out that the savings would not be 100°jo,
that they would vary from 50°jo to 90°jo.
RESOLUTION - re Withdrawal of Seating from Project
MOTION: Made by Councilman Denny, seconded by Councilman
Chatfield that Resolution No. 4049 be adopted, a resolution of the �
City Council of the City of Redding authorizing the withdrawal of pro-
posed seating from the Redding Civic Auditorium Project, EDA
Project 07-1-00259 and convenanting to provide the requir�d seating
for the Auditorium without Federal assistance on or before January
1, 19?0.
Councilman Denny said the above motion was made with the understanding
that the motion would imply a willingness of the City to proceed on the
basis of any of the alternatives outlined by the City Attorney with regard
to present bids.
The question was raised as to whether this resolution requires the City
to set aside the money for the seating. Mr. Courtney said he would
interpret that the reserve would have to be funded until this money was
either released or spent. Councilman Chatfield suggested that the
wording of the resolution be changed to include, "That the sum of
$318, 000 shall remain reserved for such purposes until such time as
the City has a firm contract with a seating manufacturer for the manu-
facture and delivery of not more than 1800, nor less than 1500 seats
for the said Civic Auditorium and Convention Hall. At such time, pro-
vided that the contract price for the seats is less than the sum of $318, 000,
the City may remove from the reserve fund the difference between the
contract price and the sum of $318, 000."
Voting was as follows:
Ayes: Councilmen - Chatfield, Denny, Doherty, Fulton, and Moty
Noes: Councilmen - None
Absent: Councilmen - None •
Resolution No. 4049 on file in the office of the City Clerk.
RESOLUTION
MOTION: Made by Councilman Denny, seconded by Councilman Chatfield
that Resolution No. 4050 be adopted, a resolution of the City Council of
the City of Redding amending and superseding the established plan and �
schedule for financing the Redding Civic Auditorium - Convention and
Trade Center Facility.
Voting was as follows: •
Ayes: Councilmen - Chatfield, Denny, Doherty, Fulton, and Moty
Noes: Councilmen - None
Absent: Councilmen - None
Resolution No. 4050 on file in the office of the City Clerk.
Councilman Doherty commented that he voted in favor of the aforementioned
resolutions with reluctance, but agrees that efforts to stay within the budget
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� should have been made some time ago and that any attempt to make
' changes now would probably not result in substantial savings, Mayor
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Moty said he voted in favor of both resolutions to make the vote unani-
mous but that he has some misgivings.
ADJOURNMENT
' There being no further business, at the hour of 3:00 P. M. , on the
I motion of Councilman Doherty, seconded by Councilmari Chatfield,
' the me eting was adj ou rned.
APPROVED;
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ATTE5T:
Ci y Cle rk
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