HomeMy WebLinkAbout80C - RELOCATION CONTRACT REQUEST FOR COUNCIL/ ~z
AGENCY ACTION
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MEETING DATE: CLERK OF COUNCIL USE ONLY:
DECEMBER 7, 2009
TITLE: APPROVED
? As Recommended
RELOCATION CONTRACT FOR ? As Amended
AGENCY-OWNED HOMES ? Ordinance on 1st Reading
? Ordinance on 2nd Reading
? Implementing Resolution
? Set Public Hearing For
CONTINUED TO _
FILE NUMBER
CITY MANAGER EXECUTIVE RECTOR
RECOMMENDED ACTION
CITY COUNCIL ACTION
Recommend that the City Council approve an appropriation adjustment
recognizing Housing Set-Aside fund revenues of $733,082 from account
number 50718002-50001.
COMMUNITY REDEVELOPMENT AGENCY ACTION
1) Authorize the Executive Director or designee and Agency Secretary to
execute the attached Construction Contract with Michael Mihos,
Construction, Inc. in the amount of $522,707, subject to non-substantive
changes approved by the Executive Director and Agency General Counsel.
2) Approve a project budget not to exceed $601,113 which includes a 15
percent contingency.
COMMUNITY REDEVELOPMENT AND HOUSING COMMISSION ACTION
At its Regular Meeting of November 17, 2009, by a vote of 5:0, the
Community Redevelopment and Housing Commission recommended that:
1. The City Council approve an appropriation adjustment recognizing
unanticipated Housing Set-Aside fund revenues of $733,082 from
account no. 50718002-50001.
80C-1
Relocation Contract for
Agency-Owned Homes
December 7, 2009
Page 2
2. The Community Redevelopment Agency:
a. Authorize the Executive Director or designee and Agency Secretary
to execute the Construction Contract with Michael Mihos,
Construction, Inc. in the amount of $522,707, subject to non-
substantive changes approved by the Executive Director and Agency
General Counsel.
b. Approve a project budget not to exceed $601, 113 which includes a
15 percent contingency.
DISCUSSION
The Community Redevelopment Agency acquired properties in the Santa Ana
Boulevard area to enhance the entryway from the freeway into the
downtown and to create new affordable housing opportunities. Two of the
acquired homes were built in the early 1900s and have unique
characteristics that the Agency wishes to preserve. One of the homes is
also listed on the local register of historic properties. It was
determined that the historic nature of the French Park Neighborhood
would be further enhanced by moving the two homes to Agency-owned vacant
lots located at Vance and Lacy Street. The current and proposed new
locations of the two homes are as follows and are also shown on the map
attached as Exhibit l:
Current Location Proposed New Location
501 E. Fifth Street 826 N. Lacy Street
615 E. Fifth Street 830 N. Lacy Street
The Agency's original intention was to move, rehabilitate and sell them
to moderate-income homebuyers. A Request for Bids was prepared and made
available on the City's web site on August 30, 2009. In addition, a
public notice was published in the Orange County Register on August 30
and 31, 2009, indicating the availability of the document. Notice of
the availability was also mailed to 100 qualified contractors who have
previously expressed an interest in bidding on Agency projects.
Responsive bids were received from two qualified firms, both of which
were in excess of $1 million. Due to the costs, staff is recommending
to only relocate the homes and undertake minimal site work to meet City
codes. Once the homes are relocated, staff will work with the French
Park Neighborhood Association to identify buyers who are interested in
and have the financial capacity to complete the rehabilitation.
80C-2
Relocation Contract for
Agency-Owned Homes
December 7, 2009
Page 3
Both firms were requested to amend their bids to only include relocation
of the homes, constructing foundations, shear walls, laying underground
connections required for utilities, and any necessary demolition. The
amended bid amounts are as shown in the table below:
Company Name Total Bid Amount
Michael Mihos Construction, Inc. $522,707
Fast-Track Construction, Inc. $680,125
The bid received from Michael Mihos Construction, Inc. was the lowest
responsive bid. A contingency of $78,406 for a total project budget of
$601,113 will ensure adequate funding to cover any unforeseen items.
ENVIRONMENTAL IMPACT
In accordance with the California Environmental Quality Act, the
proposed project is exempt from further review. Categorical Exemption
Nos. ER 2009-117 and 119 will be filed for this project.
FISCAL IMPACT
Upon approval of the appropriation adjustment, funds for the relocation
and rehabilitation will be available in the Housing Set-Aside Capital
Projects account (no. 50718830-66220).
APPROVED AS TO FUNDS AND ACCOUNTS:
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She1ly~Landry-B~yle r Francisco Gutierrez
Housing Division Manar~er Executive Director
Community Development Agency Finance and Management Services Agency
CJN/SLB/kg
80C-3
80C-4