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07/27/1990 Special Meeting308. MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF DES PLAINES, ILLINOIS, HELD IN ROOM 101, DES PLAINES CIVIC CENTER, FRIDAY, JULY 27, 1990 CALL TO ORDER: The Special Meeting of the City Council of the City of Des Plaines was called to order by Mayor D. Michael Albrecht at 11:07 A.M. in Room 101, Des Plaines Civic Center, on Friday, July 27, 1990. ROLL CALL: Roll call indicated the following Aldermen present: Childers, Christiansen, Wetter, Hardiman, Sarlo. Aldermen Schneck, Chiropolos and Haupt were absent. Also present were: City Manager Asaro, City Attorney Kolman, Fire Chief Clark, Police Chief Storm, Assistant Comptroller Placko, Acting Director of Planning & Zoning Pagones, Permit Coordinator Chase and Acting Electrical Inspector Moylan. PURPOSE: City Clerk McAllister announced that this Special Meeting was called at the request of Mayor Albrecht for the purpose of dicussing the Third Floor Renovation. DISCUSSION: Mayor Albrecht thanked the Aldermen for their attendance on such short notice. He noted that the three absent aldermen were out of town. EXECUTIVE SESSION: Mayor Albrecht stated that as the Aldermen are aware, the Third Floor Renovation has been the subject of many recent committee and Council meeting discussions. Yesterday, the Union was picketing City Hall because supposedly one of Anderson and Sons Construction Company's (contractor for the Third Floor Renovation) sub -contractors was not paying the prevailing wage. While investigating this matter, it was discovered that the contract with Anderson and Sons Construction Company was never signed by the City. There is also no performance bond or proof of insurance. As a result of this, Mayor Albrecht stated that he immediately stopped work on the project until this matter can be fully investigated. Mayor Albrecht stated that it does not appears that it is all the fault of the contractor. There has to be some other explanation as to why the contract was not presented to the Mayor's office for signature. While a signed contract is very important from a legal standpoint, the lack of a performance bond and proof of insurance is much more important because of the serious liability to the City. Mayor Albrecht stated that the contractor was given verbal and written notice to immediately stop work on the project. While the contractor will have to assume some of the responsibility, alot of it will rest with the City. Moved by Sarlo, seconded by Hardiman, to Executive Session to discuss personnel. call, the vote was: AYES: 5 -Childers, Christiansen, Sarlo NAYS: 0 -None ABSENT: 3-Schneck, Chiropolos, Haupt Motion declared carried. go into Upon roll Wetter, Hardiman, Council recessed at 11:15 A.M. Council reconvened at 11:30 A.M. Roll Call indicated the following Aldermen present: Childers, Christiansen, Wetter, Hardiman, Sarlo. DISCUSSION: 7/27/90 PAGE TWO 309. Mayor Albrecht asked Lou Pagones why we have a con- tract without a City signature. Alderman Sarlo stated that there is a contract with the contractor's signature on it but no one else. Alderman Sarlo asked Lou Pagones whose hands was that in. Lou Pagones said, "That was in my hands. I was informed by Vern Chase that the attachment concerning the door schedule was incorrect and I asked him to contact the con- tractor and obtain the correct schedule." Alderman Sarlo asked, "Was this back in April, Lou?" Lou said, "Apparently after the signed contract was received. I'm not sure what the date was." Alderman Sarlo asked "We held it up this length of time°" Lou said, "Well, we never got the corrected information to update the contract." Alderman Sarlo and Alderman Hardiman asked if we have the release of liens/waivers. Assistant Comptroller Placko showed Alderman Hardiman the documents used to payout the contractors. Alderman Hardiman stated, "This is no good. It's garbage. The documents don't show where the contractor got the material or if he paid the material bill." Mayor Albrecht stated that so far we have paid the contractor approximately $50,000 out of a $119,000 project. Alderman Childers asked, "Do we not have a procedure in place? Is that the problem? We don't have'a check list or a master sheet on top of everything that indicates when something is received?" Mayor Albrecht stated that there is a very standard procedure that if a contract is signed all these documents are suppose to go up to the City Clerk's office where everything is verified. Alderman Sarlo asked the City Clerk if she had requested this information. The City Clerk stated that her office had verbally requested this information from Lou Pagones and also in writing on July 26, 1990. Lou Pagones stated he didn't remember being asked for this information by the City Clerk's office. Alderman Hardiman asked City Attorney Kolman if the City could get sued if the prevailing wage was not paid. City Attorney Kolman said that since home rule communities are not exempt from the Prevailing Wage Act, the State could take some action against us. Mayor Albrecht stated that we have a problem in that there is only two sub -contractors listed on the permit and waiving of the fees. Alderman Wetter asked why the fees would be waived and who gave that permission. Larry stated that Balluff & Balluff had it in their specifications so we would be paying our- selves. City Attorney Kolman read the General Notes which state that permit fees would be required. Alderman Christiansen stated that the specs said one thing and the prints said something else. The staff did not review these prints before they were sent out. It appears that the staff was in such a hurry with this project that they just fell down on the job. Mayor Albrecht stated that being in a hurry was not a legitimate excuse. If someone is being overworked, then they should tell someone that they can't handle it. But that was never indicated to him or anyone else that he was aware of. Of course, the City wants a job done as expediently as possible, but at the 7/27/90 PAGE THREE 310. same time we must follow our City Code, our State laws as well as covering any legal requirements of any contractural obligation that we might have. Alderman Hardiman stated that we've paid out about 47% of this contract and he doesn't feel that we've gotten that much work done for that amount of money. Mayor Albrecht stated that there will be a report by the next Council meeting on August 6, 1990, from City Attorney Kolman's office on where we stand with this contract. Alderman Childers left at 11:40 A.M. Alderman Sarlo asked the Acting Electrical Inspector Moylan if he knows what is going on with this project. Inspector Moylan said that there is no question that the payment of fees was required. It was stated in the General Notes. - He called Balluff & Balluff to find out why it: was stated in the bid specs that no fee was required, but they didn't have an answer for him. He asked numerous times if the electrical contractor had visited the job site as is required, but received confusing answers. He also tried to call Mr. Anderson on many occasions, but the calls were never returned. There was no phone number on the permit form for the electrical contractor so he had to go through Anderson. He also noted the unsafe condition of the dumpster in the courtyard between the Civic Center and the Police Department. This was noted on at least two occasions, but they still continued to throw debris down the chute into a. very unsafe container. Mayor Albrecht asked Inspector Moylan if he had reviewed the work that had been done. Inspector Moylan again stated how he had tried to reach Mr. Anderson on numerous occasions without success. He did finally reach the electrical contractor and requested a meeting with him. The first date they could meet was yesterday, July 26, 1990. Also, in his inspection of the job site he noted some cases of violations, i.e. an electrical box that is completely buried over with drywall compound and paste (he took a picture of the existing condition). Also, the electrican who was doing the work disconnected a live fire alarm system (smoke detector). The electrican stated that he was told by the general contractor to take the smoke detector system off and move it over. Inspector Moylan notified the Fire Department regard- ing this serious situation and an inspection was made of the Third Floor. Inspector Moylan stated that in the back of his mind he was questioning the qualifi- cation of this electrician. Mayor Albrecht asked Inspector Moylan if there had been inspections made by any other inspector. Inspector Moylan said the plumbing inspector has made an inspection, taken some notes, and will be meeting with the plumbing contractor. Mayor Albrecht stated that the bottom line is that we still have a problem here of liability that has been incurred by the City for the past three months -- working without bonds, contract not being signed by the City. 7/27/90 PAGE FOUR 311. Mayor Albrecht asked Lou Pagones who else knew that we didn't have a signed contract. Lou answered that the City Manager knew, the Permit Coordinator knew, and he thinks he talked to the Comptroller about it. Alderman Hardiman asked Vern Chase if he felt the payouts covered the work that was done. Vern indicated it did in accordance with the way the work was listed on the payout sheets. There was extensive electrical work done and materials purchased. Alder- man Hardiman asked why the City had to pay for the materials up -front, normally the contractor pays for it and then the City pays for it later....he just doesn't understand it. Mayor Albrecht asked Vern Chase why it says in the specs "No building permit required." Vern indicated that he didn't know. Mayor Albrecht stated to Vern Chase that he was listed as the Project Manager. Vern said that was not true. Mayor Albrecht asked, "You mean you never saw this before?" Vern said, "Oh, I saw the document....it went out for bids and I was listed as the Project Manager, but at one point it was taken out of my control and the title was never changed." Alderman Sarlo asked Vern Chase who took it out of his control. Vern Chase said, "Mr. Pagones." Alderman Hardiman asked Vern, "With your workload and every - think, isn't that alot of responsibility for one individual?" Vern indicated that is was. Mayor Albrecht stated that he could understand that, but someone around here should tell someone that the workload is too much. The Mayor said the Building Department indicated that they need more people. He said he told them that they had better document it for the 1991 budget meetings. The Mayor stated that whether it is Vern Chase, or Lou Pagones, or anyone else who takes on a project and the workload is too much that you can't do the job, you had better let him or someone know. Alderman Sarlo added that it should be done in writing. The Mayor said he had indicated that, and that since "day one" he had emphasized that he doesn't like surprises, nor does the Council. He feels that what has happened here is totally unacceptable and that is why we have to have some research done on this matter. First of all, we must address the immediate problem of what we are going to do with the "document" we have (he said he didn't want to use the word "contract"). Alderman Christiansen asked if there was any chance of our breaking this contract with Anderson. Mayor Albrecht said that is why the matter must be research. Both the City Attorney and Corporate Counsel feel Anderson may have an implied contract because he signed it and he was told to start the work, even tho he didn't provide the necessary bonds. Alderman Christiansen questioned wasn't this situation similiar to the contract for Blackhawk Park. City Attorney Kolman said no because the work had not been started and no contract had been signed by the con- tractor.. Alderman Christiansen said this situation seems to be snowballing and something has to be done to stop it. Mayor Albrecht said the project has been stopped. 7/27/90 PAGE FIVE 312. Inspector Moylan stated that he asked about the insurance and bonds and was told that they were in the file. He went to the file but they weren't there. Alderman Sarlo asked who told him they were in the file. Inspector Moylan said, "One of the staff." Inspector Moylan also said he asked Anderson to com- plete the required form listing the contractors. He said there was a sub -contractor working on the project that no one knew about. EXECUTIVE Moved by Sarlo, seconded by Hardiman, to go into SESSION: Executive Session to discuss personnel. Upon roll call, the vote was: AYES: 5 -Christiansen, Wetter, Hardiman, Sarlo, Albrecht NAYS: 0 -None ABSENT: 4 -Childers, Schneck, Chiropolos, Haupt Motion declared carried. DISCUSSION: Council recessed at 11:50 A.M. Council reconvened at 12:12 P.M. Roll Call indicated the following Aldermen present: Christiansen, Wetter, Hardiman, Sarlo, and Mayor Albrecht. Mayor Albrecht announced that the discussion in the Executive Session covered personnel and possible litigation regarding the contract for the Third Floor Renovation. Mayor Albrecht stated that there will be a thorough investigation into this entire matter and a full report will be available by the next Council meeting on August 6, 1990. He said there was certainly no intent by himself and the Council to totally blame Anderson and Sons Construction Company for lack of a signed contract. There is some responsibility on his part, but not totally. ADJOURNMENT: Moved by Sarlo, seconded by Hardiman, that the Special Meeting of the City Council be adjourned. Motion declared carried. The meeting adjourned at 12:30 P.M. APPROVED BY ME THIS I D DAY OF J Dbnna McAllister, CMC/AAE - CITY CLERK . ichael Al.rech , MAYOR