1974 ADJ MTG MIN DEC 23 - Laserfiche WebLink

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134 Mr. Haworth stated the Letter of Credit is assured, unless of course, this bill was vetoed or sent back for changes or alterations by the President. Mayor Huntoon stated he is concerned about spending money for the services of a consultant before actually receiving the 10 percent of funds the City would be applying for. Councilwoman Spragins and Councilman Rehrer stated they were also concerned about spending funds before the Federal monies are even received, or that this bill is 100 percent sure of passing. Additional discussion followed among Council members and Mr. Haworth regarding the 10 percent of funds to be applied for, filing of the application, and the expenditure of monies before these funds are actually received. Mr. Haworth explained that once the City submits the irf'tal: one page application to HUD, the City will receive a Letter of Credit from HUD within a few weeks which will in essence indicate that the City of Colton will be reimbursed up to 10% of the cost of preparing and making an application for the monies that it will be eligible for. Mayor Huntoon asked if Mr. Haworth's firm would enter into an Agreement that the firm would be paid when the City received its' 10% funding. Mr. Haworth replied that his firm would not want to enter into an Agreement on the basis of the 10%, however, he feels confident enough that he would make the following proposal: Mr. Haworth stated that his firm would proceed on the basis that if HUD allocates the money, they would then expect payment, however, his firm would not be willing to enter into an Agreement whereby payment for services would not be made until the City actually received its' 10%, as this would not come about until June or July of 1975. Mr. Haworth added that if for any reason HUD does not allocate monies, his firm would discontinue their work and would not bill the City for services rendered thus far. Councilwoman Spragins felt this whole matter should be set aside and wait until the President signs this bill and the funds are actually there. Councilman Gonzales stated after hearing about this program and listening to the presentation this evening, he feels that the City should take the chance and definitely get involved, as in the long run it will more than pay off and benefit the City of Colton. Mr. Haworth suggested that his firm sit down with the City Attorney to work a clause into the contracting agreement which would state basically, that his firm would not submit a bill until such time as the monies have been appropriated and if the monies are not appropriated, a cancellation clause would state that his firm would discontinue their work and would not sub- mit a bill. Mr. Haworth stated that in his mind the key to the payment of monies is the appropriation of monies by the signing of the bill and/or action by Congress, this would be the deciding factor as to when or whether his firm would submit its' bill. Mayor Huntoon stated that he thought this was what he had previously asked Mr. Haworth in regards to payment for his services. Mr. Haworth again stated that payment is stipulated based on the appropriation of monies to cover the Act. Mr. John Zarate, representative from Congressman Brown's Office spoke to the Council members regarding the Community Development Act of 1974, and the merits of such a program for the future development of the City of Colton. Mr. Zarate showed the Council members a copy of the one page application to be completed and sent into HUD before March 1, 1975. Planning Director Williams stated in summary, Staff recommends that Mr. Ed Haworth be retained as the consultant to assist in filing the application for funds in connection with the Community Development Act of 1974, and the Council pass a resolution authorizing and approving this procedure. Councilman Gonzales said he believes a program of this kind is very badly needed in the City of Colton, and he would therefore move that the City retain the services of Mr. Haworth's firm based upon Mr. Haworth getting together with our City Attorney and working up an Agreement to include a arae stipulating payment and a clause for cancellation. Motion seconded by Councilman Hayes and passed. Councilwoman Spragins voting NO. ADJOURNMENT: There being no further business to come before the City Council at this time, on motion of Councilman Rehrer, seconded by Councilman Hayes and unanimously passed, Mayor Huntoon adjourned the meeting at 9:15 p.m. Approved this day of 1974. -14ayor DEC 2 � A974 HELEN A. RAMOS City Clerk