2004 AGN JUN 15 I13 - Laserfiche WebLink

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Item #13 REDEVELOPMENT AGENCY AGENDA REPORT FOR THE REDEVELOPMENT AGENCY MEETING OF JUNE 15, 2004 TO: Honorable Agency Chairperson and Board Members FROM: Candace Cassel, Redevelopment Agency Manage SUBJECT: Authorization for the Executive Director to Extend te Term of the Rancho Mediterrania "finished lot" Contracts by One Year and to Adjust the Contract Amount in a Net Amount Not to Exceed $112,887. DATE: June 1, 2004 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. Although the project had not progressed as quickly as the Agency had originally anticipated, 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 and 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. In most cases, a contract for each trade was awarded to two contractors to ensure availability of contractors to complete the improvements and to ensure quality standards. The contracts were awarded based upon time and materials and were good for one year. It was originally anticipated that the contract would cover projected sales of one hundred fifteen (115) lots: ninety (90) vacant lots for new home placement, and twenty-five (25) tenant conversions. Through May of 2004, the Agency has completed "finished lot" improvements on sixty (60) lots. There remain another thirty-six (36) lots which the Agency has sold and require the improvements, as well as an estimated twelve (12) additional tenant conversions. Contracts were awarded for eight trades: demolition of dilapidated homes, front yard landscaping, garage roof, fencing, garage electrical, garage repair, garage door and hardscape removal and installation. Table 1 identifies the contractor and the total amount awarded for each trade. The contracts were awarded based on projected sales, on a "unit of construction" basis. Each "unit of construction" consisted of materials and labor for certain components as appropriate for each contract. Garage roofs for example included materials and installation for sheathing, shingles, felt, cricket, and tear -off. The rehabilitation is specific to the level of deterioration when rehabilitation commences.