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Home My WebLink About26- Finance CI''►''Y OF SAN BERNARDINO - REQUEST FOR COUNCIL ACTION From: BARBARA PACHON, Subject: Arden-Guthrie DIRECTOR OF FINANCE Demoliition-EDA Reimbursement. Dept: FINANCE Date: November 27, 1996 ORIGINAL Synopsis of Previous Council action: 9/23/96 - Mayor and Common Council sustained the 7/18/96 Board of Buiding Commission's order on eighteen properties in the Arden-Guthrie area and sustained the 12/22/95 and 719/96 Board of Building Commissision's orders on to other Arden-Guthrie properties. 11/18/96 - The Community Development Commission authorized reimbursement to the City in the amount of $354, 075 for cost incurred to demolish arden-Guthrie properties. Recommended motion: That the Mayor and Common Council authorize the Director of Finance to amend the Fiscal Year 1996-1997 Budget to reflect the cost of the Arden-Guthrie demolitions and the reimbursement to be received from EDA for the cost as outlined in the attached staff report. .. ... 1. Signature Contact person: Barbara Pachon, Director of Finance Phone: x - 5242 Supporting data attached: City staff report, EDA staff report Ward: 7 and Community Development Action Request. FUNDING REQUIREMENTS: Amount: $354, 075 (001-075-5505) (Arden-Guthrie demolition) Source: (Acct. No.)001-000-4670 $354, 075 (Acct. Description) EDA Reimbursement Finance: Council Notes:Revenues and expenditures will be increased equally, resulting in a net impact of zero Tabled _�__W__ .. lA 9 Agenda Item No. A& STAFF REPORT BACKGROUND On November 18, 1996 the Community Development Commission authorized reimbursement to the City in the amount of$354,075 for cost incurred to demolish Arden- Guthrie properties (please see attached EDA staff report for breakdown of work completed). RECOMMENDATION That the Mayor and Common Council authorize the Finance Department to make the following amendments to the FY 1996-1997 budget to reflect the funding to be received from EDA for demolition costs: Increase 001-000-4670 (revenue-EDA reimbursement) $354,075 Increase 001-075-5505 (expenditure-Arden Guthrie demolition) $354,075 FISCAL IMPACT TO CITY Because revenues and expenditures are being increased equally, the net effect of this transaction will have no fiscal impact on the City. ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REQUEST FOR COMMISSION/COUNCIL ACTION FROM: RONALD E. WINKLER SUBJECT: ARDEN-GUTHRIE Development Director DEMOLITION DATE: November 12, 1996 Synopsis of Previous Commission/Council/Committee Action(s): On July 29, 1996,the Community Development Commission approved$180,000 demolition funds in the FY96/97 Budget. On September 23, 1996,the Mayor and Common Council sustained the July 18, 1996 Board of Building Commissioner's order on eighteen properties in the Arden-Guthrie area and sustained the December 22, 1995 and July 19, 1996 Board of Building Commission's orders on two other Arden-Guthrie properties. On October 7, 1996,the Community Development Commission approved$4,320 for cost incurred from August 5, 1996 appropriation. Recommended Motion(s): community Development Commission) MOTION: That the Community Development Commission authorize reimbursement to the City in the amount of$354,075 for cost incurred to demolish Arden-Guthrie properties and increase the FY96/97 Budget for this purpose to$354,075. Contact Person(s): Ronald E Winkler/Angie Salas-Dark Phone: 5081 Project Area(s): N/A Ward(s): Seven (7) Supporting Data Attached: ® Staff Report ❑ Resolution(s) ❑ Agreement(s)/Contract(s) ❑ Map(s)❑ Ltr/Memo FUNDING REQUIREMENTS: Amount: $354.075 Source: 20%Set-Aside Budget Authority: Requested SIGNATURE: Adminis for Ronald E. W nkler, Director Development ---------------------------------------------------------------------------------------- C'ommission/Council Notes: ---------------------------------------------------------------------------------- REW:ASD:lag:11-18-Ol.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/18/1996 Agenda Item Number: _ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT ------------------------------------------------------------------------------------------------------------------ Arden-Guthrie Demolition BACKGROUND On September 23, 1996, the Mayor and Common Council sustained the July 18, 1996 Board of Building Commissioner's order on eighteen properties in the Arden-Guthrie Area and sustained the July 19, 1996 and December 22, 1995 Board of Building Commission's orders on two other Arden-Guthrie properties. In addition, the Council adopted an urgency ordinance that revised the purchasing procedures to remove the requirement for demolitions to be handled under the standard purchasing procedure. Since the requirement to solicit bids for demolitions was removed as part of the urgency ordinance, staff contacted two demolition contractors with recent experience in the Guthrie area to negotiate a price for the demolition of the initial group of structures. A price was negotiated for six of the units but with a contingency that the price would rise to an unknown amount in the event that asbestos removal became necessary. The asbestos survey for all of the units had been completed prior to the Council action, however, the reports were not received prior to the negotiations with the demolition contractors. The Air Quality Management District (AQMD) was contacted with a request to waive the 10 day waiting period on the asbestos report, which was granted. Survey results indicated that asbestos was present in the initial six structures. This finding required staff to contact an asbestos abatement contractor to negotiate a separate contract for asbestos removal. On September 24, 1996, the City Attorney's office obtained demolition warrants on the properties. The warrants read in part: 1. The asbestos removal and demolition warrant must be served within ten(10) days of the date hereof, and the demolition to be concluded within twenty(20) days. Based on the foregoing, staff recommends adoption of the form motion. Due to the urgency, the following contracts were issued under the City Administrator's signature: First Phase Demolition Expenditures 81 Structures • DuWayne Olsen $29,995 (4) structures $7,498 per building • Interstate Field Services $28,500 (3) structures $9,500 per building • Ground Zero $ 6,990 (1) structure $6,990 per building ------------------------------------------------------------------------------------------------------------------ REW:ASD:Iag:l1-18-01.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/18/1996 Agenda Item Number: ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Arden-Guthrie Demolition November 6, 1996 Page Number -2- --------------------------------------------------------------------------------------------- Asbestos Removal • Brinkley Environmental $58,500 (4) structures • Fresh Air Environmental Solutions $26,950 (3) structures • Scot Morrison& Associates $1,440 • AMS NATEC $2.880 Total Demolition/Asbestos Removal $149,225 On October 22, 1996, the court hearing resulted in a denial of the owner's request for preliminary injunction and approved the City's abatement process to continue. As a result, worked commenced on the aforementioned units on October 25, 1996. As of November 8, 1996, all of these structures have been raised and lots cleaned. Second Phase Demolition (17) Structures In addition to the above, contracts were awarded for demolition and asbestos removal on the remaining 17 structures. The contract amounts are as follows: Quantum: Asbestos survey necessary on remaining five (5) structures Survey Cost: $2,400 Quantum: Asbestos removal - twelve (12) structures Cost @ $4,480 per building: $53,760 Quantum: Demolition- seventeen(17) structures Cost @ $7,450 per building: $126,650 Franks Fence Co. Temporary Security Fencing - twelve (12) structures Cost: $3,390 10% Contingency* $18,620 TOTAL $204,820 * A contingency of 10% is being recommended due to the unknown cost of asbestos removal on the five existing properties requiring asbestos survey. ------------------------------------------------------------------------------------------------------------------ REW:ASD:lag:I 1-18-0I.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/18/1996 Agenda Item Number: 4 ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Arden-Guthrie Demolition November 6, 1996 Page Number -3- --------------------------------------------------------------------------------------------- Work has commenced on these 17 structures with 12 expected to be removed by the time this report reaches the Community Development Commission. Total cost of all work is placed at $354,075. Since only$180,000 was budgeted for demolition it is requested that the Community Development Commission increase the budget appropriation by$174,075. All costs will be liened against the property. �•GU RONALD It. WINKLER,Director Development Department --------------------------------------------------------- REW:ASD:lag:l 1-18-Ol.cdc COMMISSION MEETING AGENDA MEETING DATE: 11/18/1996 Agenda Item Number: