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Mr. Matt Kurlich, 919 Bayside Drive, Newport Beach, spoke to the City Council on
<br />40 2 behalf of Chuck King & Associates, stating Mr. King had done all of the previous
<br />work on Assessment District No. 79-1, contemplating finishing the job as Project
<br />Manager, and he has spent many hours and a great deal of money towards the forma-
<br />tion of this District. Mr. Kurlich stated there is no conflict of interest as
<br />Mr. King has only a proportionate interest in a second mortgage and is the owner
<br />of a Note, along with several other parties. Mr. Kurlich stated he is the sole
<br />owner of Parcel Nos. 1 through 26, which involves approximately 64 acres of the
<br />115 acres within the District. Mr. Kurlich concluded there was a contract that
<br />they had relied upon, and he felt it would be unfair if Chuck King & Associates
<br />were not allowed to finish this job.
<br />Mayor Huntoon then asked on what authority did Chuck King & Associates do this work,
<br />who had authorized this?
<br />Mr. Kurlich replied there was a contract signed by Phillip Elliott.
<br />Director of Community Services Joe McGee advised that this particular contract in
<br />question had been rescinded.
<br />Mr. Kurlich stated they were never made aware of that, and had no knowledge that the
<br />signed contract had been rescinded.
<br />Mr. Chuck King, 26872 Calle Hermosa, Capistrano Beach, stated that he had spent ap-
<br />proximately $79,000 in out-of-pocket expenses towards the formation of this District,
<br />and he felt the City should at least repay him for his time and expenses.
<br />Mayor Huntoon stated that when he had discussed this matter with Mr. King in his
<br />office, Mr. King had advised it would cost approximately $85,000 to finish this
<br />job; therefore, the City would be paying Mr. King approximately $165,000 or $170,000
<br />in total.
<br />Mr. King responded he meant it would cost approximately $85,000 to finish the work
<br />that he had started.
<br />Discussion then followed among Council Members, Staff, Mr. Kurlich and Mr. King
<br />with regard to repayment to Mr. King for services rendered to date, the bid pro-
<br />posals that had been submitted, and the award of bid for the Project Administrator
<br />for the completion of the District.
<br />Moved by Councilman Rios, seconded by Councilman Rehrer, approving award of bid
<br />to Berryman & Stephenson, Inc., for Project Administration on Assessment District
<br />No. 79-1, as outlined by Staff. Motion carried, with Councilwoman Garcia voting NO.
<br />Variance
<br />Parcel Map No. 3764
<br />Mr. McGee read his report with regard to a request from C M Engineering for a
<br />Variance from an A 0 Zone for Parcel Map No. 3764, Lots 4, 5, 6 and 7, which was
<br />being continued from a previous Council Meeting.
<br />Mr. Charles Cole, of C M Engineering Associates, 225 East Airport Drive, San
<br />Bernardino, displayed drawings of the proposed building and the anticipated water
<br />flows at various levels, indicating that the proposed construction would be elevated
<br />sufficiently to compensate any flooding or damage.
<br />Mr. Dwight Kapatani, owner/developer, assured the Council Members that he would
<br />not be putting a great deal of money into this development if there were any
<br />possibilities of flood damage.
<br />After additional discussion, moved by Councilwoman Cisneros, seconded by Council-
<br />man Rios, to approve Variance requested by C M Engineering Associates for Parcel
<br />Map No. 3764, Lots 4, 5, 6 and 7. Unanimous vote.
<br />Bids
<br />Mr. McGee reported there were two items involving waiver of bid security for the
<br />Planning Department, the purchase of three used vehicles for their use, and the
<br />Community Services Department, three new pick-up trucks, two 3/4 ton and one 1/2
<br />ton. Mr. McGee stated in both cases Staff was requesting waiver of bid security.
<br />Moved by Councilwoman Cisneros, seconded by Councilman Rios, authorizing waiver of
<br />bid secruity for vehciles and trucks for the Planning Department and the Community
<br />Services Department as outlined by Staff. Unanimous vote.
<br />CITY MANAGER'S REPORTS AND RECOMMENDATIONS:
<br />Financinn
<br />Industrial Development Authority
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