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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 - 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) ,-. - 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 <~ ,ffi! Signature Contact person: Glenda Saul Phone: 383-5081 6 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: ?L..QQ~/C:l) April 30, 1987 ~ eJ Agenda Item No. -.,l) c ......., " - 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. ~ ~ 12/8/86 Motion ratifying short term tenancy agreement that exist between Operation Second Chance and others, Public Enterprise Building. r- ~ 2499G/SP Apr 11 30, 1987 l.. '-'....J ./ REI)IIVEI OPMBNT AGENCY-REQUEST FOR ~/COUNCIL ACTION - 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.. c 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. -, \.- 2499G/ SP April 30, 1987