HomeMy Public PortalAbout06-03-1993 !�U
BOARD OF PUBLIC WORKS AND SAFETY OF THE
CITY OF RICHMOND. INDIANA.JUNE 3. 1993
1 The Board of Public Works and Safety of the City of Richmond, Indiana, met at 9 a.m.Thursday, June 3, 1993,
2 in the Municipal Building in said City.Chairperson Janet Hibner presided with Earnest Jarvis and Dennis Grimes
3 in attendance. The following business was had to-wit:
4
5 APPROVAL OF MINUTES OF MAY 27.1993
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7 The minutes of the May 27, 1993 meeting were approved on a motion by Jarvis, second by Grimes and carried
8 by a unanimous voice vote.
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10 CLAIMS FOR PAYMENT
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12 Claims submitted by the City Controller's office were for$675,565.95, most of which included payroll and payroll
13 taxes.Also,$22,971.92 for health insurance claims.Grimes moved to approve, second by Jarvis and the motion
14 was carried by a unanimous voice vote.
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16 REQUESTS
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18 A.Jarvis read a request for the renewal of a handicapped parking space from Blanche Chaney at 1227
19 Boyer Street and moved to approve,second by Grimes and carried by a unanimous voice vote.
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21 B. A written complaint by Ernest Adams at 1017 South West First Street was read by Jarvis. It cited a
22 parking problem due to a narrow area on a curve where two cars are unable to pass if they meet.The
23 Traffic Safety Division investigated the complaint and Sgt. Janice Passmore said, in an effort to allow
24 as much parking as possible since parking in that area is at such a premium, it was recommended that
25 the yellow curb at South West First and G Streets on the 1st Street side be extended a couple of car
26 lengths on both the east and west sides of the street. She explained that would open up the visibility as
27 the vehicle approaches the intersection and also enable a vehicle to pull over to allow another to pass.
28 An additional recommendation was to open up that curve on the east side allowing clearer visibility. In
29 answer to a question by Chairperson Hibner about available parking spaces in the lots, Passmore said
30 the construction workers at Civic Hall are taking up many of the parking spaces in the student lot but an
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area in the back of the school that is designated for teacher parking is only half full. She suggested
allowing others to park in that lot. Answering Chairperson Hibner's question as to whether the area
33 should be looked at as a residential parking area, Sgt. Passmore said much of that area is designated
34 as such. She explained that once one area is designated the vehicles move to another area creating
35 yet another problem.
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37 Jarvis said the Civic Hall project will be finished within the next couple of months and the school year
38 has ended, which makes this particular problem a temporary one. Chairperson Hibner said it is her
39 feeling that the Board should pursue the recommendations suggested by Passmore and wait and see
40 on the other issue.Jarvis made a motion to approve the recommendation of the Traffic Safety Division,
41 second by Grimes and it was carried by a unanimous voice vote.
42 _
43 CONTRACTS
44
45 A. Chairperson Hibner announced that the second appraisal of the former Wayne Corporation building
46 and property had been received. She said Tom Dickman's appraisal was $3 million which brought the
47 average of the two appraisals to $2.8 million and is within the authority granted by Ordinance No. 30-
48 1993 Part E,to purchase the building and property. Chairperson Hibner moved to accept the appraisal
49 and authorize payment of Dickman's bill for$3,000,second by Jarvis and carried by a unanimous voice
50 vote.
51
52 B. Through a motion by Chairperson Hibner, second by Jarvis and a unanimous voice vote the Board
53 approved the Birth to Five Inc. agreement and the Richmond Community Schools interlocal agreement
54 for Birth to Five. City Attorney Thomas Milligan explained that there are two agreements with regard to
55 the Birth to Five program which has been operating out of the City building and has been financed by a
56 grant from the state of Indiana administered by RCS. In this particular program, he said, the actual
57 physical housing is done here with the part time employees and one full time employee being City
58 employees. City Controller Dennis Grimes bills the school system for the entire cost of the program
59 making it an in and out item. He added that it is not a part of the City's actual budget because it does
60 not result in the expenditure of any City funds.
61
62 Vicki DeMao, president of Birth to Five Inc. gave some background on the program, explaining that it
63 was created nearly three years ago for the purpose of helping children in families grow up healthy in
64 this community. At that point, she said, only state money was used to fund the $199,000 program.
65 Maureen Gareis was hired as director and continues in that position,along with 11 parent educators
Board of Works Minutes Cont'd
June 3, 1993
Page 2
1 who make home visits for parent education. She said their purpose is to help parents with child
2 development information and the healthy development of the children. DeMao said a fund-raising
3 brochure has just been developed because since December 1992 the state funding was discontinued,
4 making it necessary to find grant money. She added that the overwhelming donations received from
5 individuals, corporations and service clubs had exceeded $70,000 since the announcement about the
6 discontinuance of state funding which makes her believe that the community is well behind the concept
7 of investing in'very young children and their parents and their parenting skills.
8
9 C. In explaining the difference between the two contracts pertaining to Birth to Five Inc., Milligan said
10 the first is one which was entered into in the past simply with the Mayor's signature because the
11 previous administration approached this program differently. He said this is actually binding the City of
12 Richmond and for that reason, the Board of Works is involved. Then, he said, there is the contract
13 subservient to the one with the schools which is Birth to Five Inc., a not for profit corporation, and they
14 are the ones that actually manage and operate the program and supervise and evaluate the executive
15 director and the part time teachers.
16
17 D. Milligan presented copies of the documents pertinent to the Carpenter Manufacturing Inc. lease to
18 the Board members, explaining each individually and noting that in each, Carpenter was designated as
19 the"tenant"and the City as the"landlord."
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21 He explained that the lease provides that the City makes available to Carpenter 200,000 of the 534,000
22 square feet in the former Wayne Corporation building as well as the 92 acres of land on which the
23 building is located. He said Carpenter's minimum occupancy will be for an indefinite period of time but it
24 is the company's hope that by the end of 1994 it will be occupying the entire facility.At the present time,
25 Milligan said, the City will be receiving $8,333 per month for the lease which represents a payment of
26 50 cents per square foot of space on an annual basis for the 200,000 square feet. As Carpenter's
27 needs require, he said, it will necessitate more and more space enabling the City to pick up an
28 additional 50 cents per square foot. He added that the principal application of the funds will be to the
29 interest obligation that the City's general fund will have to the City's utility fund which is Richmond
30 Power& Light He said the agreement with RP & L will be formalized in a promissory note prior to the
31 closing and it will be an agreement for the loan of $2,500,000 which will fund the purchase price. He
32 added that the closing will be with U.S. Steel and Carnegie Pension.Trust, the present owners of the
33 real estate, and will take place June 25, making this lease as far as occupancy rights actually
34 commencing June 26. .
35
36 Milligan said the first term of the lease as set forth on page 2, Section 201, runs through March 31,
37 2000. He said that coincides with the seven-year labor agreement that the former owner's local has
38 entered into with Carpenter Manufacturing Inc. He added that the option to renew is a separate
39 instrument providing a renewal term of three years and the second option providing for a'renewal term
40 of five years, making the total 15 years that is covered by the lease agreement and the options to
41 renew, all of which will be at the rate of 50 cents per square foot. He said it is anticipated that at some
42 point Carpenter will exercise its option to purchase the building which is set forth in Section 205. The
43 section specifies a purchase price of $2,500,000. Milligan explained that it is the position of the Mayor
44 that Carpenter pay exactly what the City is paying for the building. An additional factor considered in
45 the lease, Milligan said, is the condition of the premises which takes into account the reality that the
46 building has been vacant and prior to being vacated by Wayne Corp. which was heading into
47 bankruptcy, certain maintenance was overlooked. Carpenter's cost of repairs to bring the internal
48 systems into working order will be offset against the monthly rental payments.
49
50 Milligan said the other terms are fairly standard. The City will have the obligation to pay the insurance
51 premium on fire and damage to the structure itself but all liability risks will be the responsibility of
52 Carpenter. He added that the tenant is already in the building by virtue of an arrangement with BMY
53 . Corp. of Marysville, Ohio,,the successful bidder at the bankruptcy sale for all of the assets of Wayne
54 Corp. that were in the building as well as the inventory, all the machinery, goods in process and the
55 rights to use the Wayne Corp. name. BMY Corp. bought that in a total package from the trustees in
56 bankruptcy from Wayne Corp. Milligan said after BMY removed all the parts for buses, all specific jigs
57 and dyes, some of the equipment and all the business records, it entered into an agreement with
58 Norman Levy and Associates, an auctioneering firm from Southfield, Mich., to purchase the machinery
59. that BMY did not wish to move,then conducted an auction two weeks ago.There is an agreement with
60 U.S. Steel Carnegie Trust and BMY that they have until June 25 to complete the removal operation of
61 the equipment and machinery that they purchased in the bankruptcy sale.
62
63 Since the largest purchaser of the equipment and various systems at present on the facilities at the
64 auction sale was Carpenter, its employees are already in the building. They have made arrangements
65 through Levy to go ahead and prepare the building, equipment and systems for production operations
which are scheduled to start after June 25. Milligan said the objective of the entire effort is to get as
Board of Works Minutes Cont'd
June 3, 1993
Page 3
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many people employed there as possible and the City looks forward to a long and valuable relationship
with Carpenter which, by its being here, will give an opportunity for the people of the Richmond
4 community to have good paying jobs in that facility.
5
6 The guaranty agreement pledges the assets and the commitment of SerVaas Inc.which is the company
7 holding all the stock and interest in Carpenter Manufacturing Inc. He added that Carpenter was
8 established in 1990 and at the time the corporation was formed in Indiana it had just acquired the
9 former Carpenter Bus Body Co. in Mitchell, Ind. out of a bankruptcy proceedings. Being virtually new,
10 Milligan said, its operation statement was not strong enough to commit them and since the corporation
11 was owned by SerVaas Inc. and all the stock in SerVaas Inc. is owned by Dr. Buert SerVaas of
12 Indianapolis, SerVaas Inc. will be a guarantor of Carpenter's lease obligation. Milligan added that he
13 had shared with the Board the confidential financial information on Carpenter and SerVaas Inc. as well
14 as SerVaas personally, but none of that is public record and was only provided on a confidential basis
15 to assure the Board that on behalf of the City, as Board of Works members, they are dealing with a
16 financially sound tenant.
17
18 An additional document presented for the Board's review is a communication from an environmental
19 engineering firm hired by U.S. Steel Carnegie Pension Trust to do a Phase I and Phase II audit of any
20 environmental problems on the site. Milligan explained that the firm had prepared a four-page letter and
21 map which showed the various test drill holes made and summarized its findings on May 17.
22
23 Milligan said he had talked with the environmental services firm out of Indianapolis that performed the
24 environmental work for Wayne Corporation in complying with the Indiana Department of Environmental
25 Management regulations. Findings in late 1983 revealed that 55-gallon drums of various hazardous
26 materials had been stored in two different locations and contaminants were found in the area of the
27 incinerator. He added that the cleanup of the two storage areas had been completed. Addressing the
28 issue of the contaminants near the incinerator, Milligan said that was the subject of the comment in a
29 letter from Rep. Phil Sharp's office read at a recent Common Council meeting. It is what is referred to
30 as work in progress and the closure is not anticipated as being a problem in that particular factor.
31
32 An above-ground storage tank of fuel located on the north side of the building had a rupture in the line
33 at some point so that there was contamination of soil on the north side of the building. Milligan said
34 there is a possibility that the contamination may not be serious and a recommendation could be made
35 to maintain monitoring and checking the area periodically and comply with the requirements on that
36 basis. Milligan said all that is underway and provided for in the contract of purchase with the owner and
37 the City will have no financial responsibility for any of those efforts. He added that the owner has
38 indicated a willingness to place in escrow on the June 25 closing a sum of money necessary for any
39 additional work at the closure. He said there will not be a closure for those items and possibly not for
40 the incinerator item prior to June 25,but the cost of obtaining closure will be built into the escrow.
41
42 Also included in the lease is a provision for the landlord to receive an application requesting a loan of
43 $150,000 to the tenant from the revolving loan fund from the City of Richmond. Grimes said he will
44 assist the tenant in obtaining $50,000 in grant funds for the Training 2000 program which is a
45 cooperative effort in conjunction with the revolving loan fund. That guarantees that some effort is made
46 to ensure that 51 percent of the employment comes to those in with low to moderate income status.
47
48 Chairperson Hibner moved that the Board of Works enter into the lease agreement with Carpenter
49 Manufacturing Inc. and formally sign all the associated agreements when the Board of Works meeting
50 reconvenes at 11:30 a.m.today,second by Jarvis and carried by a unanimous voice vote.
51
52 E. Bids received for street paving Phase I were opened by Grimes, given to Chairperson Hibner who
53 checked for the proper papers and passed on to Jarvis who read the prices. Before doing that,Jarvis
54 recommended that after the receipt of the bids was complete that the Manager of the Street Division Bill
55 Smith, City Engineer Bob Wiwi and Purchasing Manager Vickie Stevens go over them and present their
56 findings at the 11:30 a.m. meeting.
57
58 The bid of Contractors United Inc.was for 72 cents per gallon for tack coat, hauled and applied;the No.
59 12 surface, hauled and placed according to specifications at $19.39 per ton and the No. 11 binder at
60 $21.75 per ton. The bid of Barrett Paving was 70 cents per gallon for the tack coat; $19.96 per ton for
61 No. 12 surface; and $21.96 per ton for No. 11 binder. Jarvis made a motion to turn the bids over to
62 Wiwi,Smith and Stevens,second by Grimes and carried by a unanimous voice vote.
63
64 Grimes announced that the second advertisement was for the parking lot overlay at Color Box on
65 South 6th Street. Jarvis read the bid of Contractors United Inc. which included items 1 through 7:
Removal of bumper blocks, $846.60;grading, 1,933.32;compaction, unit price of$265;proof rolling
Board of Works
June 3, 1993
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2 $112 unit price; 552 ton of base, unit price $25.02 at a cost of $13,811.04; 276 ton of surface al
3 $27.49, totaling $7,587.24; and replace blocks $707.85. Cost of the total project came to $25,263.05.
4 Barrett Paving's bid for items 1 through 7 included: Removal of bumper blocks, $765; grading $3,500,
5 compaction $700; proof rolling at$200,552 tons of base at a cost of$14,352;276 tons of surface for
6 a total of $9,660; and replacement of bumper blocks at $624. The total of the package was $29,801.
7 Jarvis moved to give the bids to Wiwi, Smith and Stevens for their review and recommendations,
8 second by Grimes and carried by a unanimous voice vote.
9
10 CURB CUT PETITIONS
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13 A.Jarvis read the curb cut petition request from Richard and Barbara Robinson at 1016 Hawkins Road,
14 noting that it had posed some problems. After investigating the area the City Engineer's office saw that
15 the curb cut was too close to the curve and would not allow enough visibility for a person driving a
16 vehicle entering Hawkins Road. Dave Ferrar of the City Engineer's office and Sgt.Janice Passmore of
17 the Traffic Safety Division, which also investigated the area, appeared before the Board agreeing that
18 there was no completely safe solution.
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20 Chairperson Hibner explained the background of the property in question, noting that the origina
21 building site plan and inspection had been handled by the permits and inspections department and
22 Richard Robinson had been given approval to build on the land. She said he applied last year for a
23 moving permit for three houses and the prior Board of Works had approved the moving permit.
24 However,Richard Robinson was not able to secure a state moving permit until late last winter and that
25 is why this has been pending for a considerable length of time. She added that part of the existing
26 problem is the length of the procedure, saying that the homes had been placed on foundations at the
27 site.
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29 Ferrar said the owner, Richard Robinson, had asked for the curb cut to be placed at an entrance going
30 toward the east which is North 24th Street. However, Sgt. Passmore said she felt coming out at that
31 point would create a hazard because northbound traffic would not have proper reaction time. It was the
32 recommendation of the building inspection department, Ferrar said, that the curb cut be made at the
33 back of the proprty line going as far west as possible,giving the driver of a vehicle better visibility. Sgt.
34 Passmore also recommended reducing the speed limit from 30 to 20 m.p.h. and signage allowing only
35 a right turn to be made out of the driveway made accessible by the curb cut.
36
37 Charles Robinson, 2401 Hawkins Road,spoke against the curb cut, noting that any curb cut was going
38 to be hazardous and requested that the area be filled in so that it would be level with the driveway.
39 Richard Robinson said he had no problem with the relocation of the curb cut and is willing to level out
40 the area at the back of the property and do whatever is required to make it level with the road. He said
41 the driveway will be the same elevation off Hawkins road and no hill will be causing impairment of
42 visibility.
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44 Lynette Brown, 1001 North 24th, also spoke against the curb cut. She said when vehicles come around
45 the curve on Hawkins Road they come through her yard and fence and that has happened four times
46 since she has lived there. She showed Board members photos of the area noting that cars were parked
47 around the curve. Chairperson Hibner noted that she and Brown had had previous conversations about
48 that and suggested Brown talk to the Richmond Police Department to secure enforcement of parking on
49 the curve. She added that it was a completely different issue than the curb cut. Brown said she wanted
50 it to be on the record that when another vehicle goes through her fence she will return to the City
51 building. Charles Robinson called the site a death strap and suggested the engineering department
52 study the site again before laying out a driveway;
53 -
54 Chairperson Hibner reminded Charles Robinson that he had called her office on different occasions and
55 she had sent building inpsectors to the area numerous times. She added that Richard Robinson does
56 have the proper permits and proper procedures have been followed for the placement of those three
57 homes. -
58
59 Police Chief Dennis Rice responded to Brown's concern about the parking on the curve, noting that it is
60 not only an ordinance violation but the Richmond Police Department can enact a state law to tow cars
61 away and, he added,that will be done.
62
63 Jarvis moved to approve the curb cut as requested, supervised by the city engineer's office to ensure
64 that it goes as far to the west as possible, and that the elevations be raised so that the entrance and
65 exit from the property will be on the same level as Hawkins Road, second by Grimes, carried by a
unanimous voice vote.
Board of Works Minutes Cont'd
June 3, 1993
Page 5
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The curb cut petition filed by Scott Carson at 850 Locust Drive was investigated by all City departments
and found to meet all requirements according to Jarvis who moved for approval,second by Grimes and
4 carried by a unanimous voice vote.
5
6 After investigating the curb cut petition filed by Hank Richardson at 35 Gravel Pit Road the City
7 Engineer's Department found an 8-foot ditch and recommended that an adequate storm culvert be
8 installed by a design approved by their office. Sgt. Passmore also suggested that the drive be no closer
9 to National Road than the already existing drive. Jarvis moved to approve, second by Grimes and
10 carried by a unanimous voice vote.
11
12 Returning to the subject of the Richard Robinson curb cut, Jarvis added to his first motion that a 20
13 m.p.h. speed limit sign be posted as well as signage designating a right turn only out of the driveway
14 onto the curved area of Hawkins Road and North 24th Street, second by Grimes and carried by a
15 unanimous voice vote.
16
17 Chief Rice reported that one of the police canines died suddenly June 1 and his department is waiting
18 for the autopsy results. He said Officer Mark Ward has had the drug tracking dog since 1989. Chief
19 Rice also submitted his May report, noting the sharp increase in the theft and larceny area. He
20 reminded citizens to place items in the trunks of their cars, noting that if prospective thieves do not see
21 valuable property they will not be tempted to take it.Jarvis moved to accept the report for the record,
22 second by Grimes and carried by a unanimous voice vote.
23
24 ADJOURNMENT
25 •
26 There being no further business, on a motion duly made seconded and passed and carried on a unanimous
27 voice vote,the meeting was adjourned.
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35 Janet Hibner, Chairperson
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44 ATTEST:
45 Norma Carnes, Clerk
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