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HomeMy WebLinkAboutItem 4a: Demolition of buildings at 101-159 North Santa Anita AvenueGPL1POft1�*I9'Y,J. f' A❑eo , 5 «a ugua[ 5, 1903 42°'tty °f ""°�� STAFF REPORT Development Services Department DATE: May 7, 2013 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director SUBJECT: AUTHORIZATION AND APPROPRIATION OF NECESSARY FUNDS FOR THE DEMOLITION OF BUILDINGS AT 101 -159 NORTH SANTA ANITA AVENUE Recommendation: Reject the low bid from Unlimited Environmental, Inc.; execute a contract with American Wrecking, Inc. For Hazardous Materials Abatement in the amount of $145,500, with a 10% contingency; and appropriate $190,000 of Successor Agency 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. 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 possessed a B license. As a result, the successful low bidder was American Wrecking, Inc. with a qualifying bid of $145,500. The project was originally brought to the City Council on February 5, 2013, but the City Council chose to table the matter because of the possibility of using Successor Agency funding rather than General Funds. On April 12, 2013, the Development Services Department received word from the State Department of Finance that Successor Agency funds could be used for this project. Therefore, 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 and approve a 10% contingency. Hazardous Materials Abatement and Demolition May 7, 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 abate and demolish the buildings as quickly as possible 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. 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. On February 5, 2013, the Council formally considered the use of General Funds to pay for demolition, and voted to table the matter to explore the use of Successor Agency funding. Since that time, Development Services staff has worked with the State Department of Finance and received approval of a Long Range Property Management Plan and the Recognized Obligation Payment Schedule (ROPS) for the second half of 2013. Approval of both of these documents allows the use of Successor Agency funding for this demolition project. Hazardous Materials Abatement and Demolition May 7, 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 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. When the City Council tabled consideration of this item on February 5, 2013, staff contacted American Wrecking, Inc. and they agreed to hold their bid as submitted while the staff worked with the State Department of Finance. A total breakdown of the requested appropriation is show below: Abatement and Demolition $145,500 Contingency (10 %) $14,500 Hazardous Materials Inventory, Reports, Contractor Oversight and Management (Converse Consultants) $30,000 TOTAL $190,000 It is proposed to fund this project from Successor Agency funds. The State Department of Finance authorized the use of these funds on April 12, 2013, with the approval of Recognized Obligation Payment Schedule 13 -14A. Funds authorized by the State should be available on approximately June 3, 2013. If approved, the project is estimated to begin in the next month and should last no more than 30 -45 days. Hazardous Materials Abatement and Demolition May 7, 2013 Page 4 of 4 ENVIRONMENTAL IMPACT This project is categorically exempt per Section 15301(L) (3) of the requirements of the California Environmental Quality Act (CEQA). 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. A budget of $190,000 was included in ROPS 13 -14A to fund this project as part of the dissolution of former Redevelopment properties. A total project budget appropriation of $190,000 is recommended from available Successor Agency funds. 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, with a 10% contingency, and appropriate $190,000 of Successor Agency funds. Approved - Dominic Lazzar d City Manager