HomeMy WebLinkAboutR03-Redevelopment Agency
~.&.VEI..OPtENT N2~.~ST FOR ~/counClL ActION
~rom: Glenda Saul, Executive Director
Subject: PUBLIC ENTERPRISE CENTER - NW -
MAINTENANCE OF AIR CONDITIONING UNITS
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Dept: Redevelopment Agency
Date: 4/23/87
Synopsis of Previous Commission/Council action:
6/5175 Resolution 3069 authorized lease of land to Operation Second Chance (OSC)
for the development of a Public Enterprise Center.
10/6/80
Resolution 4106 - Disposition and Joint Development Agreement with
Operation Second Chance for adjacent property.
1/9184
6/17/85
Resolution 4567 authorized amendment to lease agreement (unexecuted).
Motion to declare OSC in default (continued).
Continued on Page 2
Recommended motion:
(COMMUNITY DEVELOPMENT COMMISSION)
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Move to approve bid proposal dated April 15, 1987 from RECO - Refrigerating Equipment
Company and authorize the expenditure of funds to repair 19 air conditioning units and
support equipment for Public Enterise Center at a cost of $16,768.00
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Signature
Contact person:
Glenda Saul
Phone:
383-5081
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Supporting data attached:
YES
FUNDING REQUIREMENTS:
Amount: $
16,768.00
Ward:
P . t Northwest
rOJ8c:
No adverse Impact on City:
Date:
April 30, 1987
CJDcil Notes:
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April 30, 1987 ~ eJ
Agenda Item No. -.,l)
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- Synopsis of previous Commission/Council action: (continued from Page ])
7/15/85 Motion to continue to 8/5/85 In order to receive report from Ways and
Means Committee (sub committee).
8/5/85 Continued to 8/19/84 to hear Ways and Means report.
8/19/85 Continued until Ways and Means recommends action.
9/9/85 Commission Resolution 4793 authorized execution of First Amendment to
Land Lease.
City Resolution 85-343 authorized execution of First Amendment to Lease
for Dorothy Inghram Library facilities.
9/23/85 Resolution 85-380 authorizing amendment to First Amendment for Dorothy
Inghram Library facilities.
6/86 8ankruptcy filed.
11/86 Court order - Agency regains possession of Public Enterprise facility.
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~ 12/8/86 Motion ratifying short term tenancy agreement that exist between
Operation Second Chance and others, Public Enterprise Building.
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2499G/SP
Apr 11 30, 1987
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REI)IIVEI OPMBNT AGENCY-REQUEST FOR ~/COUNCIL ACTION
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STAFF REPORT
By order of the US Bankruptcy Court, dated 11/17/86, the PEC Building was turned
over to RDA and the OSC lease terminated. Subsequently, the Agency began to cure
the deferred maintenance and negotiated short-term and month to month rental
agreements with Golden State School, Carrera Recording Studio, the Dorothy
Ingraham Library, People's Choice and the Northwest PAC, All said tenants remain
in possession at this time.
Pursuant to the lease with Golden State School, "Repairs to the structure itself
shall be the responsibility of Agency, and Agency shall provide such maintenance
upon notice from school that such service is required." (page 7 of lease, dated
Feb. 2, 1987).
Golden State School advised Staff of an electrical "shut-down" at building No. 1
and Staff immediately contacted Building Maintenance to inspect and repair.
Following their inspection, Building Maintenance advised Staff the problem was
caused by the air conditioning system, which is pre-programmed to "shut-down" the
entire electrical system in case of any malfunction. Building Maintenance sought
assistance from RECO Air Conditioning Company to determine the extent of necessary
repairs..
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Attached please find RECO's report and projected cost breakdown for the repairs
needed for all 19 air conditioning units and support equipment servicing the
Public Enterprise Center.
At present, Building Maintenance has been able to restore power to the building;
however, the heating and air conditioning system is inoperable. Therefore,
immediate repair is imperative.
Wayne Overstreet indicated that RECO was the only company he could find that was
available to do the required work at this time. Wayne has reviewed the bid and
feels the projected charges of $16,768 are reasonable for this type of work.
It is Staff's belief that the subject repairs are needed not only to insure
continued occupancy of the building, but more importantly, to preserve the value
of the building.
Staff is presently engaged in an aggressive marketing effort to secure a new
long-term Operator-Manager for the entire complex. RFP's have been placed in
local papers as well as major newspapers providing exposure throughout
California. The published cut-off date for receipt of RFP's is May 4, 1987.
Although, Staff has shown the property to several potential Lessees, no bids have
been received to date. The heating and air conditioning system has, and will
continue to be, a major concern to all interested parties.
The above was presented to RDA Committee on April 22, 1987, whereat Committee
concurred with Staff to seek this Commissions approval of the above-described
motion to expend approximately $16,768.00 for needed repairs to the Public
Enterprise Center.
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2499G/ SP
April 30, 1987