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SR-13-D (2) Aw70 13 -7) MEMORANDUM ctll 4 \- DATE October 14, 1986 Mayor and City Council TO: FROM: Robert M. Myers, city Attorney James H. O'Donnell, Deputy City Attorney Fire Department Requirement of the Installation of an Approved Sprinkler System at Ocean Towers SUBJECT: After twice notifying the management of the Ocean Towers of their requirement to install an improved fire protection system, the Santa Monica Fire Department requested an office conference. On August 5, 1986, representatives from the Ocean Towers Board of Directors, as well as their legal counsel, and a member of the city of Santa Monica's Fire Department and City Attorney's office met to discuss the required fire safety system. At that time it was agreed that the Board of Directors would have up to and incl uding September 22, 1986, in order to decide whether it intended to comply with the fire safety system requirement. On or about september 22, 1986, Steve Locati of the Santa Monica Fire Department received a telephone call from a representative of the Ocean Towers Housing Corporation's Board of Directors. A meeting was scheduled between Inspector Locati and the Board of Directors on October 1 1986. At the meeting, the Board of Directors informed Mr. Locati that, while they initially intended to comply with the requirement of installing an approved fire safety system, an independent test had been conducted and the results indicated that the asbestos content of the material covering the hallways and ceilings in the Ocean Towers was as high as 14 % . This fact, according to the Board of Directors, would substantially increase the cost of installing a fire safety system, and, according to steve Locati, the Board of Directors indicated reluctance to go forward with the required plan. On October 14, 1986, the City Attorney's office received telephone calls from Bob Halama, counsel for the Board of Directors of the Ocean Towers Housing corporation, and Bob winnet, Chief Financial Officer for the Ocean Towers Housing Corporation, as well as a member of the Board of Directors. Both persons informed the City Attorney's office that there existed a small minori ty of stockholders who are opposed to the installation of a fire safety system for a variety of reasons. It is the minority stockholders who have requested to speak to the City Council. According to Mr. Halama and Mr. Winnet, the minori ty stockholders are not authorized to speak on behalf of the Board of Directors. - I - Aw~4~!-]) The City Attorney and Fire Department will continue to work cooperatively with the Ocean Towers to ensure compliance with the City's fire safety requirements. JOM216/hpc - 2 -