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HomeMy WebLinkAbout2012-05-08 - AGENDA REPORTS - DEMO BLDG PROJ F2008 (2)CONSENT CALENDAR DATE: SUBJECT: DEPARTMENT Agenda Item: 6 CITY OF SANTA CLARITA AGENDA REPORT City Manager Approval: Item to be presented by: May 8, 2012 DEMOLITION OF BUILDINGS - OLD TOWN NEWHALL, PROJECT F2008 - AWARD CONSTRUCTION CONTRACT Public Works RECOMMENDED ACTION City Council approve project specifications and award the construction contract for the demolition of buildings in Old Town Newhall, Project F2008, to C & R Demolition Industries, Inc., in the amount of $37,500, and authorize a contingency in the amount of $7,500. 2. Appropriate $35,000 from Public Facilities Replacement Fund (723) to Expenditure Account F2008723-5161.001 and transfer $25,000 from Expenditure Account P3012723-5161.001 to Expenditure Account F2008723-5161.001. Authorize the City Manager or designee to execute all documents, subject to City Attorney approval. BACKGROUND In November 2009, the Redevelopment Agency of the City of Santa Clarita purchased an entire city block at the cross streets of Lyons Avenue, Railroad Avenue, 9th Street, and Main Street to assist in the implementation of the Downtown Newhall Specific Plan. The future development of a full block will assist in the transformation of Old Town Newhall into a thriving, mixed-use, pedestrian -oriented village with a series of economic engines, ultimately creating an Arts and Entertainment District. In March 2011, the Redevelopment Agency and the City entered into a Real Property and Transfer Agreement related to this property. This agreement conveyed the property and delegated ,Redevelopment Agency functions and powers to the City, which includes the ability to clear the site. t. u" .1 r n 6 This contract will demolish two unoccupied structures previously containing two automotive uses. This contract also allows for the demolition of a third structure, currently used as the construction office for the Old Town Newhall Library, upon relocation of staff. The demolition will remove dilapidated and blighted structures on the City -owned property and prepare the area for future redevelopment. With the elimination of redevelopment agencies throughout the state of California, cities are now tasked with continuing the economic growth and vitality of communities that formerly relied on redevelopment to revitalize struggling areas. While the future development of this site is unknown at this time, it is at a critical intersection that serves as a gateway to Old Town Newhall and is directly adjacent to the new Old Town Newhall Library. In an effort to continue the renaissance of Old Town Newhall, it is in the City's best interest to move forward with the demolition of these vacant structures to further eliminate blighting conditions in Old Town Newhall. The City received a letter from the State Controller's Office requesting any transfer of assets between the Redevelopment Agency and the City be reversed and all former redevelopment property and funds be returned to the Successor Agency to be dealt with in accordance with ABX 1 26. City staff is conferring with legal counsel on the next course of action in response to the State Controller's request. However, as of today, this property still belongs to the City of Santa Clarita and not the Successor Agency for the former Redevelopment Agency. In an abundance of caution, and in the case the property will ultimately need to be returned to the Successor Agency, Successor Agency staff took an item to the Oversight Board on April 26, 2012, requesting their concurrence to demolish these buildings. The Oversight Board voted unanimously to allow the City to move forward with this project. The Invitation to Bid was published three times: June 13, 2011, June 19, 2011, and June 22, 2011, and noticed to the City's website, to perform demolition and removal of 22515 9th Street, formerly known as Automotive Technology, .and 24410 Main Street, formerly known as Wanjon's. Nine bids were submitted to the City and opened by Purchasing on July 28, 2011, at 11:00 a.m. The results of the bid are: Company C & R Demolition Industries, Inc. Unlimited Environmental Bowen Engineering & Environmental Interior Demolition Triangle Enterprises, Inc. Sun -Lite General Const. & Demolition Superior Demolition John Burgeson Contractors Tomar Construction Location Bid Amount Rosemead, CA $ 19,000 Signal Hill, CA $ 34,800 Fresno, CA $ 37,375 Montrose, CA $ 39,875 Burbank, CA $ 49,980 Montebello, CA $ 52,550 City of Industry, CA $ 66,506 Santa Clarita, CA $ 79,091 Santa Paula, CA $ 79,883 C & R Demolition Industries, Inc., the lowest responsible bidder, has agreed to hold the bid cost 2 of July 28, 2011, with an adjustment of $2,500 to cover an increase in fuel cost. Thus, the cost for the demolition of Automotive Technology and Wanjon's is $21,500. In addition, the City requested C & R Demolition Industries, Inc., provide a quote for the demolition of the construction office building at 24406 Main Street. The proposal for this demolition is $16,000. This additional work will be included in the C & R Demolition Industries, Inc., contract by change order. Upon review of the bids, staff recommends awarding the contract to C & R Demolition Industries, Inc., the lowest responsible bidder, for the demolition and removal of the three City -owned buildings described above in the amount of $45,000, including contingency. C & R Demolition Industries, Inc., possesses a state contractor's license and is in good standing with the Contractors State License Board. The bid from C & R Demolition Industries, Inc., was reviewed for accuracy and conformance to the contract documents and found to be complete and responsible. The remaining budget in the amount of $15,000 will be used for environmental testing and mitigation, labor compliance, staff oversight, and miscellaneous project costs. While the City maintains a "Support of Local Businesses" policy that can be utilized by the City Council when warranted, the City is governed by the State Public Contract Code with regard to public works project procurement. In these types of procurement, the Public Contract Code does not permit a City to utilize a "Support of Local Businesses" policy and instead requires the contract be awarded to the "lowest responsible bidder." As confirmed by the City Attorney's Office, this direction precludes the City from applying any superseding criteria for award except in the case of a tie. Thus, in the awarding of Public Works contracts, the City is not permitted to award to the second lowest bidder just because they are local as the State Public Contract Code does not allow the City to recognize them as the "lowest" responsible bidder. ALTERNATIVE ACTIONS Other action as determined by the City Council. FISCAL IMPACT The requested appropriation of $35,000 from Public Facilities Replacement Fund (723) and transfer of $25,000 from Expenditure Account P3012723-5161.001 to F2008723-5161.001 will provide for all anticipated project costs. ATTACHMENTS Location Map 9 t 3 + a •� Yry1.