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Placentia City Council
GENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR / PUBLIC SERVICES AND INFRASTRUCTURE JULY 25, 2023
SUBJECT: AWARD OF CONSTRUCTION CONTRACT TO UNLIMITED ENVIRONMENTAL, INC. FOR DEMOLITION WORK AT 207 WEST CHAPMAN AVENUE
FISCAL
IMPACT: EXPENSE: $60,000
$6,000
$66,000
BUDGET: $66,000
SUMMARY:
TOTAL CONSTRUCTION CONTRACT AMOUNT
TOTAL CONSTRUCTION CONTINGENCY AMOUNT
TOTAL AMOUNT
AFFORDABLE HOUSING DEVELOPMENT IMPACT
FEE FUND (682534-6099)
The property located at 207 West Chapman Avenue (APN: 339-033-21), (the "Property") is located on the northerly side of Chapman Avenue, beginning 50 feet westerly of Main Street in the City of Placentia. The Property backs to a public alley and is located immediately south of Kraemer Memorial Park. The subject property contains 11,000 gross square feet of land area.
The Property is within the 01 (Neighborhood Commercial) zone district of the City and has a 1,698 square foot commercial building.
The Property suffered extensive fire damage on November 16, 2022. The property was appraised on January 30, 2023 as an effectively vacant land parcel, and the existing building represents a detriment to the underlying land value, due to the costs associated with clearing the site (demolition, hauling, dump fees, etc.). After considering the various factors which influence value, the fair market value of the fee simple interest of the Property is $900,000. On April 4, 2023 the City Council approved Resolution No. 2023-18 and a Purchase and Sale Agreement for the Property. The City closed escrow on Monday, June 12, 2023 and the City issued a Request for Proposals (RFP) for the demolition and removal of a fire damaged structure located at 207 West Chapman Avenue on Tuesday, June 20, 2023. After a thorough evaluation of all the proposals received, Staff recommends awarding a construction contract to Unlimited Environmental, Inc. in the amount of $60,000 for the asbestos abatement and demolition of the Property. This action approves the award of a construction contract to Unlimited Environmental, Inc.
1.f.
July 25, 2023
City Council Agenda
July 25, 2023
RECOMMENDATION:
It is recommended that City Council take the following actions:
1. Award a Construction Contract to Unlimited Environmental, Inc., for demolition work and asbestos abatement for 207 West Chapman Avenue in the amount of $60,000; and
2. Reject all other bids received and authorize return of the bid bonds; and
3. Authorize the City Administrator to approve contract change orders up to ten percent (10%) of the contract amount, or $6,000 for a total construction contract not -to -exceed amount of $66,000; and
4. Adopt Resolution No. R-2023-68, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2023-24 in compliance with City Charter of the City of Placentia §§1206 and §§1209 pertaining to appropriations for actual expenditures; and
5. Authorize the City Administrator and/or his designee to execute all necessary documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal to Promote Community and Economic Development under Objective #3.10, which is the Implementation of Housing Element Strategies and Objective #3.12, which is to Secure Funding to Address Affordable Housing.
DISCUSSION:
The property located at 207 West Chapman Avenue (APN: 339-033-21), (the "Property") is located on the northerly side of Chapman Avenue, beginning 50 feet westerly of Main Street in the City of Placentia. The Property backs to a public alley and is located immediately south of Kraemer Memorial Park. The subject property contains 11,000 gross square feet of land area.
The Property is within the C1 (Neighborhood Commercial) zone district of the City and has a 1,698 square foot commercial building.
The Property suffered extensive fire damage on November 16, 2022. The property was appraised on January 30, 2023 as an effectively vacant land parcel, and the existing building represents a detriment to the underlying land value, due to the costs associated with clearing the site (demolition, hauling, dump fees, etc.). After considering the various factors which influence value, the fair market value of the fee simple interest of the Property is $900,000. On April 4, 2023, the City Council approved Resolution No. 2023-18 for the purchase of the Property.
As part of the due diligence period during the escrow process, the City conducted several surveys and studies to review the geologic, environmental and soils test of the Property. It was determined
City Council Agenda
July 25, 2023
that the Property contains several Recognized Environmental Conditions (REC), including asbestos, lead base paint, and polychlorinated biphenyls (PCBs). The REC's must be properly remediated via a special permit from the South Coast Air Quality Management District Rule 1403 Procedure 5 Workplan.
The City closed escrow on Monday, June 12, 2023 and the City issued a Request for Proposals (RFP) for the demolition and removal of a fire damaged structure located at 207 West Chapman Avenue on Tuesday, June 20, 2023. The RFP was posted on PlanetBids for approximately three (3) weeks. A total of seven bids were received as noted in the table below:
Contractor Bid Amount
Unlimited Environmental, Inc.
$60,000
Danny Ryan Precision Contracting, Inc.
Abajian Enterprise
Interior Demolition, Inc.
R&R B Inc.
$87,000
$93,450
$115,875
$162,095
Integrated Demolition and Remediation Inc. $187,000
AD Improvements, Inc. $262,310
The submitted proposals were reviewed by the Deputy City Administrator and the Deputy Director of Administrative Services. Staff evaluated all proposals received in accordance with the firms' technical experience in performing work of a closely similar nature; strength and stability of the firm; and quality of the final product completed with other agencies by checking their references.
Based on this evaluation, Staff recommends awarding a construction contract to Unlimited Environmental, Inc. in the amount of $60,000 for the asbestos abatement and demolition of the Property.
Should the City Council elect to award this contract, the City will begin to work with Unlimited Environmental, Inc. to complete the tasks as outlined in the RFP and begin the demolition of the Property.
FISCAL IMPACT:
The total construction contract for the asbestos removal and demolition of the Property amounts to $66,000. This cost consists of the bid amount submitted by Unlimited Environmental Inc. in the amount of $60,000 and a construction contingency in the amount of $6,000. The Affordable Housing Development Impact Fee account has sufficient funds for the recommended action.
Budget Amendment R-2023-68 is presented for the City Council's consideration to allocate funds for this specific work. In addition, according to legal interpretation, the "City can use these funds to demolish the foundation since doing so is necessary for the parcel to be developed into high density affordable housing as contemplated by the Specific Plan. PMC 5.30.120 broadly defines the purposes for which these impact fees can be spent to "provide housing affordable to extremely low, very low, lower and moderate -income households in the City, consistent with the goals and policies contained in the City's housing element..." This expenditure is consistent with the housing element and there is strong public policy favoring providing more affordable housing.
City Council Agenda
July 25, 2023
Prepared by:
Jeannetf- Ortega
Deputy Director of Administrative Services
Reviewed and approved:
rf� �---
Jenn' er Lampman
Director of Finance
Reviewed and approved:
Luis Estevez
Deputy City Administrator
Reviewed and approved:
1,
Damier�R. Arrula
City Administrator
Attachments:
1. Resolution No. 2023-68 - Budget Resolution
2. Construction Contract with Unlimited Environmental, Inc.