PURPOSE

Staff requests the following approvals:

1. Redevelopment Agency approval of a contract with Omega Contractors to construct a trash enclosure,

2. Redevelopment Agency approval of a budget amendment to increase the construction budget for a trash enclosure by $30,440,

3. Redevelopment Agency approval of appropriate findings relative to Health and Safety Code Section 33445 to enable the use of Agency funds,

4. Redevelopment Agency approval of a Cooperative Agreement with the Parking Authority and authorization for the execution of a Cooperation Agreement by the Assistant Executive Director of the Redevelopment Agency to allow the Agency�s contractors to work on property owned by the Parking Authority,

5. Parking Authority approval of the Cooperative Agreement with the Redevelopment Agency and authorization for the execution of the Cooperative Agreement by the Assistant Executive Director of the Parking Authority,

6. City Council consent as to the Agency�s expenditures of funds and approval of appropriate findings of Health and Safety Code Section 33445 to enable the use of Redevelopment Agency funds for the construction project.

BACKGROUND

Construction of the AMC parking garage in 1989 at 133 East Orange Grove Avenue included a multi-purpose trash enclosure to serve commercial uses located at the 200 block of North San Fernando Boulevard and businesses along a newly created paseo just west of the 200 block of North San Fernando.  This shared enclosure was constructed to eliminate several independent trash areas along this newly created pedestrian-oriented paseo.  The enclosure is located adjacent to the north wall of the garage about 50 feet west of the east wall, as shown in Attachment 1.  The trash enclosure currently serves five restaurants in the area.

The Collection development, now under construction, was approved with vehicular and pedestrian access to the existing AMC structure.  The existing trash enclosure conflicts with one of the Collection project access routes, therefore, it is necessary to relocate it.  Additionally, the refuse from the restaurants tends to produce odors that are incompatible with the nature and use of the area.

Final design of the Collection project included the relocation of the existing trash enclosure to a more compatible location, shown in Attachment 1.  The relocation would achieve several important goals:

• Removal of the existing facility significantly improves driver sight visibility,

• A venting system for the new enclosure eliminates the emanation of potentially troublesome odors,

• The new location permits easier access for required daily trash pickup without interfering with the Collection project or AMC garage access, and

• The new location and layout allow better monitoring of the trash enclosure by City staff to ensure that the various restaurants are utilizing the enclosure properly.

The Collection project was conditioned as a part of their development program to remove the existing enclosure to provide safer access to their parking, and they will remove the enclosure shortly.  The City agreed to replace the facility with a similar enclosure away from the Collection project parking access.  A proper location was selected, plans prepared, and bids were solicited for the construction of a new trash enclosure with Bid Schedule R-1228.  The engineer�s estimate for the construction was $40,000.

ANALYSIS

The bid opening for Bid Schedule Number R-1228 was held on January 2, 2007, with four (4) contractors submitting bids as follows:

CONTRACTOR                                                                                 BID AMOUNT

1.      Omega Construction                                                                  $    58,700.00

2.      TLD Construction                                                                        $    59,800.00                      

3.      TLC Construction (disqualified)                                                $     61,700.00

4.      Cedars Engineering Construction, Inc.                                     $   189,194.00

TLC Construction was disqualified because of bid bond discrepancies.  Omega Construction was found to be the lowest responsible bidder, with a bid of $58,700.00.  Staff contacted the State of California Contractor�s State License Board and found the license to be current, active, and in good standing.  Staff also contacted references, who confirmed that Omega Construction had satisfactorily completed similar projects.

The lowest bid of $58,700 is $18,700 above the engineers estimate for construction. A contingency of 20% of the bid amount ($11,740) is recommended for this type of project.  Thus, a construction budget of $70,440 is recommended for completion of the trash enclosure project, which is $30,440 more than the engineer�s estimate.  Redevelopment Agency funds have been budgeted for this work, however, only $40,000 has been appropriated due to the initial engineer�s estimate.  An additional $30,440 in Agency funds is requested to be appropriated to cover the shortfall of the engineer�s estimate and the proposed contingency.

Cooperation Agreement

A Cooperation Agreement between the Agency and Parking Authority is required to allow the Agency to enter the parking structure and to hire a contractor to make improvements to a Parking Authority owned structure.  Staff requests adoption of a Parking Authority resolution approving the Cooperation Agreement and authorizing the Assistant Executive Director of the Parking Authority to execute the Cooperation Agreement, and adoption of a Redevelopment Agency resolution approving the Cooperation Agreement and authorizing the Assistant Executive Director of the Agency to execute the Cooperation Agreement.

Health and Safety Code Requirement

Health and Safety Code Section 33445 requires certain findings before the Agency can commit funds for the purpose of paying for improvements to a publicly owned building (in this case a public parking structure).  Health and Safety Code Section 33445 requires that the City Council consent to the Agency expenditures and find that:

1)         The use of Agency funds is of benefit to the project area funding the improvement.

The use of Agency funds for the construction of the trash enclosure will benefit the City Centre Redevelopment Project Area by facilitating construction of additional parking in Downtown Burbank by allowing better and safer access to and from the parking structure currently under construction as part of the Collection project.  The new trash enclosure will also replace an outdated trash enclosure that does not meet the needs of the tenants currently using the existing enclosure.  The existing enclosure is not adequately ventilated thereby creating unpleasant odors, which is undesirable for this well visited area of downtown.  In addition, its location makes access to the trash bins difficult, thus makes emptying the bins difficult.

2)         There is no other reasonable means of financing the improvements.

At this time, the Parking Authority cannot pay for the new trash enclosure, nor can the City.  While parking revenues pay some of the costs of maintaining the City�s parking structures, there are not sufficient funds in the Parking Authority fund balance to pay the $70,440 price tag for the new enclosure.  The City also has no funds budgeted or available to fund the proposed improvements without taking away from other infrastructure projects or programs.

3)         Funding the project will assist in the elimination of one or more blighting conditions inside the project area.

The use of Agency funds for the construction of trash enclosure will assist in the elimination of the following blighting condition inside the City Centre Redevelopment Project Area: �Factors that prevent or substantially hinder the economical viable use or capacity of buildings or lots.  This condition can be caused by a substandard design, inadequate size given present standards and market conditions, lack of parking or other similar factors.�  By assisting in providing a new trash enclosure, the Agency will be able to assist in the facility of additional public parking downtown and to eliminate a visually blighted condition and existing nuisances caused by improper ventilation.

The City Council, as the governing body, must consent to the Agency expenditures for the trash enclosure improvements to the Parking Authority structure and also make the Health and Safety Code Section 33445 findings outlined above.  To document the findings and consent to the Agency expenditures, staff requests that City Council adopt the proposed City Council resolution.   

Construction of this project is planned to occur between February 2007 and May 2007.  This project is considered categorically exempt under CEQA Section 15303, pertaining to new construction of small and appurtenant structures.

FISCAL IMPACT

The Agency appropriated $50,000 in the FY 2006-07 Capital Improvement Program Budget for the trash enclosure.  Of the $50,000, $40,000 is for the actual improvements (per the engineer�s estimate) and the remaining $10,000 is for design and inspection services.  The low bid of $58,700 is $18,700 higher than the engineer�s estimate of $40,000.  Considering the total budget of $70,440 (including a 20% contingency), $30,440 in additional funding is necessary.  Staff requests authority to appropriate the additional funds.  Funds are available in the Agency�s Fund 306 Fund Balance.  If approved, $30,440 would be transferred from 306-ND000-30004-0000-000000-Unappropriated Fund Balance to 306-CD21A-70007-0000-16692-Orange Grove Parking Structure Trash Enclosure.

RECOMMENDATIONS

Staff recommends that the Redevelopment Agency adopt the proposed resolution:  1) approving a construction contract with Omega Contractors; 2) approving a budget amendment to the Agency�s FY 2006-07 budget appropriating an additional $30,440; 3) making the appropriate findings under Health and Safety Code Section 33445; and 4) approving a Cooperation Agreement between the Agency and Parking Authority and authorizing the Assistant Executive Director to execute the Cooperation Agreement.  Staff also recommends that the Parking Authority adopt the proposed resolution approving a Cooperation Agreement between the Agency and Parking Authority and authorizing the Assistant Executive Director to execute the Cooperation Agreement, and that the City Council adopt the proposed resolution making the appropriate findings under Health and Safety Code Section 33445 and consenting to the proposed Agency expenditures.

Attachments:              Figure 1 � Trash Enclosure Location        

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