AR 051507 Garage Electrical improvements

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ITEM #19 CITY OF COLTON For the Redevelopment Agency Board Meeting of May 15, 2007 TO: Honorable Agency Chairperson and Board Members FROM: Candace E. Cassel, Economic Development Direct SUBJECT: Consideration and Approval of Contract for Compl*ion Garage Electrical Improvements to Agency Owned Lots Sold to Homebuyers at Rancho Mediterrania Manufactured Home Estates to Myers Construction, Inc. for a Period of One Year in an Amount Not to Exceed $17,500. DATE: May 15, 2007 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 $10,000/lot); the garage would be fully rehabilitated, including roofing, minimal electrical construction, a metal roll -up garage door with automatic garage door opener; front yard automatic irrigation, landscaping and hardscape. 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. On June 3, 2003, the Agency Board awarded contracts for the completion of the "finished lot" improvements for the various trades. Two contractors for each trade received contracts for all improvements necessary except for Landscaping, where only one contractor bid. The purpose of utilizing two contractors at that time was to ensure high quality service, and availability of timely scheduling since there were 91 vacant lots at that time and potential for a minimum of 25 tenant conversions. The contracts were awarded based on time and materials and were good for one year. Thirty-three (33) lots were sold in fiscal year 2002/2003 and eighty-one (81) lots were sold in fiscal year 2003/2004. 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) to those contractors agreeable to the extension and to adjust the contract in a net amount to accommodate the existing obligations and additional anticipated lot sales. Contractors agreeable to contract extension included garage, garage electrical, garage doors, fencing and hardscape. During the contract period, one contractor with contracts on all trades began R:\Administration\Meetings\2007 Meetings\May 15, 2007\Agency Improvement Contracts\Garage Electrical Impr Contract Staff Report 051507.doc