AR 051507 Garage Electrical improvements

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A\\ MCI of Contract [or Agency [mprovcments Pagc 2 of refusing to provide service, leaving one contractor to provide improvements on each of those respective trades with the exception of landscaping. On September 14, 2004, the Agency Board authorized formal bidding and award of contract for landscape improvements for the remainder of the fiscal year. Nineteen (19) lots were sold in fiscal year 2004/2005 leaving forty-seven (47) Agency owned lots. On June 7, 2005, some of the contractors were again agreeable to extend the term of the contracts under the same terms and conditions and the Agency Board authorized the Executive Director to extend the term of the contracts by one year (Amendment 1 or 2 respectively). The Fence and Hardscape contractors did not agree to renew their contracts due to increases in the cost of materials. Neither of those trades was sent out for bid since most of the vacant lots were sold by that time and minimal improvements to fencing and hardscape were anticipated on lots sold as tenant conversions. Five (5) lots were sold during fiscal year 2005/2006 leaving forty- two (42) Agency owned lots. On July 18, 2006, all contractors were agreeable to a third extension of their contracts under the same terms and conditions except for Garage Electrical due to increased cost of materials and labor; the Agency Board authorized the Executive Director to extend the term of the contracts by one year (Amendment 2 or 3 respectively). Garage Electrical improvements were not sent out for bid and were handled on an individual basis as-needed. To date during fiscal year 2006/2007 six (6) lots have been sold leaving thirty-six (36) Agency owned lots available for sale; two of which are currently in escrow. DISCUSSION Recognizing that all the contracts for "finished lot" improvements have not been formally bid since 2003. and the original 2003 and 2004 contracts with the same contractors have been extended under the same terms and conditions three times, and knowing increases in the cost of materials and labor have occurred during that time, formal bidding was initiated. Twenty- seven (27) contractors were issued bid packages and responses were opened at 2:00 p.m. on March 28, 2007. Bids were received on all seven trades from six different contractors. Bidding consisted of units of construction for materials and labor. A "unit of construction" is identified as the maximum amount of material required to rehabilitate the improvement specified in the Scope of Improvements issued in each bid package. Each Garage Electric Improvement will require rehabilitation specific to the level of deterioration when rehabilitation commences. No improvements will commence until the close of escrow on each lot sold. Quotes were received for Garage Electrical Improvements from Myers Construction, Inc., in the amount of $1,750 per unit of construction and DRC Construction in the amount of $2,015 per unit of construction. Both of these contractors have provided quality materials and workmanship in the past and both were deemed qualified. Agency staff recommends that the contract be awarded to Myers Construction, Inc. as the lowest bid and in an amount not to exceed $1,750 per garage. There are thirty-six (36) Agency owned lots on which improvements may be required, however based on the number of lots sold during the past two years, it is anticipated that a total of ten (10) might reasonably be sold during fiscal year 07/08. Therefore, the total amount of the contract for Garage Electrical Improvements is not to exceed $17,500. Should excess of ten (10) lots be sold, a request for amendment will be brought before the Agency Board for consideration. RAAdministration\Meetings\2007 Meetings\May 15, 2007\Agency Improvement Contracts\Garage Electrical Impr Contract Staff Report 051507.doc