2005 AGN JUN 07 I27 - Laserfiche WebLink

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Item #27 REDEVELOPMENT AGENCY AGENDA REPORT FOR THE REDEVELOPMENT AGENCY MEETING OF JUNE 7, 2005 TO: Honorable Agency Chairperson and Board Members FROM: Candace Cassel, Redevelopment Direct) SUBJECT: Authorization for the Executive Directo E end the Term the Rancho Mediterrania "finished lot" Contracts by One Ye Adjusting the Contract Amount in a Net Amount Not to Exce $97,800 and Initiate formal bidding process and Subsegw Agency Board Award of a Contract for Garage Doors 2005 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. 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. During fiscal year 02/03 and 03/04, the Agency sold 114 lots; thirty-six (36) of the sold lots had obligations for improvements remaining and sixty-six (66) Agency owned lots on which improvements were anticipated when/if tenant homeowners purchased their land. 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