AR 071806 Garage electrical improvements

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ITEM #31 REDEVELOPMENT AGENCY AGENDA REPORT FOR THE REDEVELOPMENT AGENCY MEETING OF JULY 18,2006 TO: Honorable Agency Chairperson and Board Members FROM: Candace Cassel, Economic Development Director (D5 SUBJECT: Authorization for the Executive Director to Extend the Term of the Rancho Mediterrania "finished lot" Contracts by One Year and Initiate formal bidding process for Garage Electrical Improvements. DATE: June 13, 2006 Background In 1993, the Redevelopment Agency acquired Rancho Mediterrania as part of a litigation settlement. The Agency's intent was to sell off each individual lot to low to moderate income households for the purposes of maintaining and preserving low to moderate income housing units within the City. The Agency reaffirmed its decision to continue with the lot sales program on February 11, 1999. At that time, the Agency established minimum standards for the"finished lot" that it would sell: the assessment district bond recorded against each lot would be paid off (approximately $12,000/lot); the garage would be fully rehabilitated, including roofing, minimal electrical construction, a metal roll -up garage door with an automatic garage door opener; and front yard landscaping with automatic irrigation was be installed or rehabilitated. The Purchase and Sale Agreement for the sale of a lot states that the Agency will complete the"finished lot" improvements within 60 days of escrow closing. In May 2003, the Agency Board awarded contracts for the completion of the "finished lot" improvements. The contracts were awarded based upon time and materials and were good for one year. On June 15, 2004, the Agency Board authorized the Executive Director to Extend the Term of the Rancho Mediterrania "finished lot" contracts by one year (Amendment 1) and to adjust the contract amount in a net amount not to exceed $112,887 to accommodate the existing obligations and additional anticipated lot sales. When the existing landscape contractor began refusing work in 2004, a formal bidding process was completed and a contract for Landscape Improvements was awarded in accordance with City procedures to EZ Landscaping on September 14, 2004 Again in June, 2005, the contractors were asked to extend the term all but the Garage Door contractor agreed to a second extension. C authorized the Executive Director to Extend the Term of the F (Amendment 2) and to initiate formal bidding process and Subs( Contract for Garage Doors, along with a contract extension (Amel scheduled to expire on September 14, 2005. Page I of 3 of their contracts and at that time, n June 7, 2005, the Agency Board ancho Mediterrania by one year quent Agency Board Award of a dment 1) for the landscape trade RAAdministrationWeefings\2006 Meetings\July 18, 2006\RM ED Contnact Renewals staff report.doc