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HomeMy WebLinkAbout03-17-1959 - Special MeetingCITY OF NEWPORT BEACH C)UNCii.MF.N Page 170 a Volume 12 --- ----- - - - - -- in City C er ` page 170 Minutes of SPECIAL MEETING OF THE CITY COUNCIL Date of Meeting: March 17, 1959 Index Time of Meeting: 3:00 P.M. Plflcg Meeting_ Council Chambers ti`OaF SF� <mo �9 -of - -- - ---- -------- -- ------ ---- - -- -- - --- --° i3o11 Call: Present ;x;x;x;x:x: x Absent ; :x rime extenb The City Clerk read the Notice of Special 1 1 1 sion for ; Meeting, called by Mayor James B. Stoddard ; constructian(1) To consider Montgomery Ross Fisher's request: ; of Big Can$Torfor an extension of time to complete the work on ; Keservoir ; the construction of Big Canyon Reservoir; (2) + C -551 ; to consider the status of the contract with Monterey Oil Company and Humble Oil and Refining I Company and the notice of a purported partial termination of the contract received by the City.; Consent and Waiver to hold said meeting having ; been signed by all members of the Council and on file with the City Clerk, Mayor Stoddard called the meeting to order. ; 1 The City Manager stated that the Public Works ; ' Director had received a letter from James M. , ' Montgomery, Consulting Engineer, dated March 12, 1959, regarding the requests of Montgomery Ross ; Fisher for extension of contract time. The City Clerk -read said letter, wherein it is stated that, during the period of construction of Big Canyon Reservoir, Montgomery R. Fisher has requested numerous extensions of time, aggregating 45k , days, for the completion of the contract because of delays occasioned by rain. The Consulting Engineer, having reviewed the requests, ; recommended an extension of 26 days by reason of ; ; rain and five additional days for delay occasioned 1 by the malfunction of a valve, I Councilman Higbie joined the meeting at 3:20 P.M. Mr. Russell C. Kenmir and Mr. A. Gene Rheault, representing James M. Montgomery, spoke from the audience explaining their recommendations. ; Mr. Herbert Lewis, representing Montgomery Ross Fisher, spoke from the audience. After discussion, Councilman Lorenz made a Motion ;x: , I motion that the matter be taken under submission. It was suggested by the Council that every ' effort be made by the contractor to fill the ; reservoir at night when more water is available in order that the reservoir may be complete as soon as possible. I , , ' I A vote was taken on Councilman Lorenz' motion, All Ayes I ' ! ' which carried unanimously. Status of Consideration was given to the status of the contract contract with Monterey Oil Company and Humble with Monterey 0il and Refining Company. ; Oil Company, C °995 A letter, dated March 12, 1959, from E. E. Pyles,; Vice President of the Monterey Oil Company, was presented. Said letter states that notwith- standing the contents of a letter from the City I.�_ 1. of Newport Beach dated March 5, 1 59 in whit a I " >Tn 1 1 1 I 1 :- ATTEST: ? 1 � mayor in City C er ` page 170 CITY OF NEWPORT BEACH Page 171 - Volume 12 Index ' __ --(MaxrLJ_Z,_19_SQ)- --- ---- - -___ default in the performance of the contract is alleged, Monterey Oil Company denies that any default exists. It is further stated in said letter that Monterey Oil Company desires to exercise an option to terminate the contract except as to 160 acres (10 acres for each well completed and brought to production), and, accordingly, Monterey and Humble have executed and forwarded a Partial Termination of Contract and Notice Thereof, dated March 12, 1959. ; The City Attorney stated that there were several legal questions involved and requested an Attorney, - Council discussion. ; I Mayor Stoddard therefore declared a recess at 4:00 P.M. After approximately forty -five minutes,; the meeting reconvened with all Council members I present. The City Attorney read a rough draft of a pro- COUNCILMEN i posed letter to be sent to Monterey OIL. �m a ^ -•. ; wherein it was stated that the City finds 'the conclusions contained in the letter and document from the Monterey Oil Company and Humble Oil and ; Refining Company, dated March 12, 1959, unac- ceptable and that the document does not have the effect apparently intended, and that "The Notice of Default da--ed larch 1959," hei:caofore delivered ; to Fbnterny 011 !'cn )any ^¢. ' '. i psi` , The City Manager was directed to send the Motion:x; proposed letter to the Monterey Oil Company. All Ayes: The meeting was adjourned. ATTEST: r 0 Pages 171 + I Motion ; ;x; All Ayes ; I , _i_ _ _