OPENING CEREMONIES
1. CALL MEETING TO ORDER
A special meeting of the La Habra Heights City Council was called to order by Mayor Millsap at 7:37 p.m. on Wednesday, October 30, 2002, at the Community Center at 1245 North Hacienda Boulevard, La Habra Heights.
2. ROLL CALL
Councilmembers present were Borrowe, Carroll, Engelhardt, Klein, and Millsap. Also present were City Manager Hendrickson, Assistant City Attorney Rozell, Acting Fire Marshal Powderly, and Deputy City Clerk Coulter.
3. FLAG SALUTE
Mayor Millsap led the salute to the flag.
4. SELECTION AND APPOINTMENT OF AN ENGINEERING FIRM
City Manager Hendrickson reported that following RKAÕs resignation, the City initiated an RFP process with the intent to hire a new consultant engineering firm. He discussed the proposal process and the background investigation. In conclusion, it was the City ManagerÕs recommendation to contract with Transtech Engineers located in the City of Walnut.
Ali Cayir, President, responded to a question posed by Council as to the cities served and length of service time. He continued reporting that Transtech was formed 12 years ago and has approximately 50 employees. He also described the experiences of Transtech employees who will be working in La Habra Heights.
Discussion ensued regarding proposed hours for engineering services. Several points of clarification regarding costs and hourly charges were asked by the Council.
Discussion continued regarding contract specifications, and the Council voiced the following concerns:
Mayor Pro Tem Borrowe disagreed with the contractÕs inclusion of an automatic CPI increase. Transtech indicated that the average CPI (approximating 2.5%) is allocated toward staff salary increases and assures a low-rate turnover in personnel. Mayor Pro Tem Borrowe countered that Transtech should come before the City Counsel to request the increase and provide the appropriate justification. Mr. Ali Cayir agreed.
Concern arose regarding whether or not Transtech is financially able to indemnify the City if a certain situation were to require this. Mr. Cayir reported that the Company averages $5 million in annual revenues. The City Attorney indicated that the agreement requires $2 million in liability insurance and $2 million in errors and omission insurance. This is the same as the current firm provides. Continuing he stated that from a legal perspective, the insurance requirement and indemnification meet the standards.
Discussion continued regarding concerns if the errors and omission insurance was not renewed in a timely manner or cancelled. A potential situation was noted by Councilmember Klein, ÒIf something happens and the Company has not paid its errors and omission insurance and the City gets sued the following year for the former year, there may not be coverage.Ó Mr. Cayir agreed to have the contract state that Transtech will provide the City with proof of coverage.
Regarding the CompanyÕs financial situation, Councilmember Klein indicated that he would concur if the CompanyÕs financial statements and insurance policies were reviewed by and to the satisfaction of the City Manager.
Mr. Cayir agreed. He added that over the past 12 years, Transtech has not had a single claim against either of its errors and omission or liability policies.
It was noted that authority to execute on page 9, section 24, should be signed by officers of the Company. Mr. Cayir said the contract would be signed by the CompanyÕs President and Vice President. Mayor Pro Tem Borrowe said that he would like the agreement section revised to read, Òto effectuate this agreement the parties that caused and duly authorized representatives and company officers to execute this agreement.Ó Mr. Cayir agreed.
Regarding further clarification regarding a computer permit issuance and data management system, Craig Melicher, Vice President, said that Transtech intends to bring in a computer into the Planning Office. Whoever handles permit issuance would do the data entry, and Transtech will provide the computer and program. It is a Microsoft access database, and the data remains the property of the City.
A motion was offered by Councilmember Klein, which was seconded by Councilmember Engelhardt to approve the Transtech contract as amended and approve the City ManagerÕs recommendation to contract for 32 engineering hours and 24 building inspection hours. The City Manager was directed to review said services every three months and make any needed recommendations.
Councilmember Borrowe pointed out a typing error on
page 6, section b states ÒConsultant has not obligationÉ.Ó Needs to be
corrected to read ÒConsultant has no obligationÉ.Ó
The motion was approved as follows:
AYES: Borrowe, Carroll, Engelhardt, Klein, and Millsap
NOES: None
ABSENT: None
5. AN ORDIANCE AND URGENCY ORDINANCE TO ADOPT THE 2001 UNIFORM BUILDING, FIRE, PLUMBING, ELECTRICAL AND MECHANICAL CODES
CITY COUNCIL COMMENTS
None
Mayor Millsap adjourned the City Council meeting at 9:00 p.m.
ATTEST:
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City Clerk Hendrickson