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°�unty °f STAFF REPORT
Development Services Department
DATE: February 5, 2013
TO: Honorable Mayor and City Council
FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director
SUBJECT: AUTHORIZE AND DIRECT THE CITY MANAGER TO REJECT THE
LOW BID FROM UNLIMITED ENVIRONMENTAL, INC.; EXECUTE A
CONTRACT WITH AMERICAN WRECKING, INC. FOR HAZARDOUS
MATERIALS ABATEMENT AND DEMOLITION OF BUILDINGS AT 101-
159 NORTH SANTA ANITA AVENUE IN THE AMOUNT OF $145,500;
APPROVE A 10% CONTINGENCY; AND APPROPRIATE A TOTAL OF
$1907300 FROM GENERAL FUND RESERVES.
Recommendation: Reject Low Bid, Approve Contract, and
Appropriate Funds
SUMMARY
On October 31, 2012, the City Council agreed to move forward with the demolition of
the Successor Agency -owned buildings located at 101 -159 North Santa Anita Avenue.
Subsequently, the Development Services Department worked with Converse
Consultants to complete an inventory of hazardous materials within the buildings and
develop abatement reports for the specification package. The project specifications
were completed in December and the project was advertised for bids. Bids were
opened on January 24, 2013, with Unlimited Environmental Inc. being the low bidder at
$132,240. However, the bid from Unlimited Environmental Inc. was rejected due to the
fact the specifications required a Class A license and Unlimited possesses a Class B
license. As a result, the successful low bidder was American Wrecking, Inc. with a
qualifying bid of $145,500.
It is recommended that the City Council reject the low bidder and award a contract for
hazardous materials abatement and demolition of the buildings at 101 -159 North Santa
Anita Avenue to American Wrecking, Inc. in the amount of $145,500, approve a 10%
contingency, and appropriate a total of $190,300 from General Fund Reserves.
Hazardous Materials Abatement and Demolition
February 5, 2013
Page 2 of 4
BACKGROUND
In August 2010, the former Arcadia Redevelopment Agency acquired the two properties
along Santa Anita Avenue between Morlan Place and Santa Clara Street. The parcel is
34,750 square feet in size and includes buildings totaling 18,076 square feet of gross
leasable building area. The purpose for the purchase was to incorporate these
properties, which have excellent frontage on Santa Anita Avenue, into the property
considered as part of a possible expansion plan for Rusnak Mercedes Benz. Even if a
deal with Rusnak was never effectuated, the parcels are a very desirable commercial
site in a highly visible area. The purchase of the property was ultimately combined with
the old church site at 21 Morlan Place, and the sliver "Dahlgren" parcel along Santa
Clara, as a 1.95 acre parcel owned by the Arcadia Redevelopment Agency.
Following the purchase of these properties, the Redevelopment Agency worked with
Overland, Pacific, and Cutler on the relocation of all former tenants on the property. A
total of 16 tenants were relocated as part of this process, many of whom were relocated
elsewhere in Arcadia. The last tenant was relocated in June, 2012 and the property was
fenced, cleaned, and secured in advance of a deal with Rusnak.
The Supreme Court decision to end Redevelopment stopped the ability of the Agency to
move forward with a sale of the property or any other agreements or leases. As such,
the property has sat vacant and fenced since July of 2012. The Development Services
Department brought forward a plan to demolish the buildings at the City Council Study
Session on October 31, 2012. The City Council agreed that it was prudent to use
General Fund dollars for abatement and demolition due to the fact that this site is critical
to a potential purchase and sale agreement with Rusnak or any future developer of the
property. The dissolution of Redevelopment requires this property (and all properties
owned by the former Redevelopment Agency) be sold in an expeditious manner, and
the proceeds are to accrue to all relevant taxing entities. This site is worth more as a
cleared and graded property to be joined with adjacent vacant parcels than it is as a
1950's commercial building of 18,000 square feet. It was further reasoned by the City
Council that the buildings are an attractive nuisance as they stand today and were
suffering from vandalism. With the uncertainty surrounding the dissolution of
Redevelopment, it is unknown how long these buildings will stand vacant if they are not
demolished by the City.
Hazardous Materials Abatement and Demolition
February 5, 2013
Page 3 of 4
DISCUSSION
The project specifications were completed in December and the project was advertised
for bids. Bids were opened on January 24, 2013. A total of six (6) bids were received
with the results as follows:
BIDDER
Unlimited Environmental Inc.
American Wrecking, Inc.
Superior Demolition
Pena Grading and Demolition
Asbestos Instant Response
Unique Performance Con.
AMOUNT
$132,240
$145,500
$151,000
$247,500
$309,000
$333,000
The low bidder for the project was Unlimited Environmental Inc. in the amount of
$132,240. However, Unlimited Environmental Inc. was disqualified from consideration
because the published specifications specifically require a Class A Contractor's license
and Unlimited Environmental Inc. has a Class B license along with the requisite
specialty licenses. As a result of the disqualification, the next lowest bidder was
American Wrecking, Inc. with a bid amount of $145,500. Staff has investigated
American Wrecking, Inc. and has found them to be qualified to perform the work.
American Wrecking, Inc., along with their abatement sub - contractor Gama Contracting
Services, has an extensive list of current and past projects that qualify them for this
project.
A total breakdown of the requested appropriation is show below:
Abatement and Demolition $145,500
Contingency (10 %) $14,500
Hazardous Materials Inventory, Reports, $30,300
Contractor Oversight and Management
(Converse Consultants)
TOTAL 1 $190,300
Funding for this project would need to come from General Fund reserves. Successor
Agency funding cannot be used for this project. If approved, the project is estimated to
begin in the next month and should last no more than 30 -45 days.
ENVIRONMENTAL IMPACT
This project is categorically exempt per Section 15301(L) (3) of the requirements of the
California Environmental Quality Act (CEQA).
Hazardous Materials Abatement and Demolition
February 5, 2013
Page 4 of 4
FISCAL IMPACT
The construction cost is $145,500 and the total project cost including contingency and
hazardous materials inventory, oversight, and management is $190,000. No previous
project budget was established for this item as it was contemplated prior to the
dissolution of Redevelopment. A total project budget appropriation of $190,000 is
recommended from available General Fund Reserves. The General Fund Reserve
account has adequate funds to complete this project.
RECOMMENDATION
It is recommended that the City Council reject the low bidder and award a contract for
hazardous materials abatement and demolition of the buildings at 101 -159 North Santa
Anita Avenue to American Wrecking, Inc. in the amount of $145,500, approve a 10%
contingency, and appropriate a total of $190,000 from General Fund Reserves.
Approved:
Dominic Lazzaretto
City Manager