PURPOSE:

The purpose of this report is to present the necessary information to allow the Agency Board to consider adoption of a resolution awarding Bid Schedule No. R-1147 to Viking Equipment Corporation for demolition of Agency properties located at 118-152 South San Fernando Boulevard and 1819 Grismer Avenue.

BACKGROUND:

Opportunity Site No. 2 (the former police block) is bounded by Olive Avenue, Third Street, Angeleno Avenue and San Fernando Boulevard (except the parcel known as the �Radio Shack� parcel at the corner of Olive Avenue and San Fernando Boulevard).  Development of this site consists of two separate projects.  The first project is Burbank Village Walk (the Olson Company) which includes 140 for-sale residential units and 14,000 sf of restaurant/retail space along the San Fernando Boulevard frontage.  This project was approved by the City Council and Redevelopment Agency Board on February 11, 2003.  The second project is Burbank Civic Plaza (Cusumano Real Estate Group) and was approved on March 11, 2003.  The project was approved for a 96,000 sf office building including 12,000 sf of commercial space on the ground floor.

One of the Agency responsibilities required in the Disposition and Development Agreements (DDA�s) for both projects is to convey the portions of the block associated with each project to the respective developers free of any buildings, structures, tenancies and active utilities.  To date, only the buildings along San Fernando Boulevard remain to be demolished (except for the two buildings located on the Radio Shack parcel).  While staff received authorization to demolish the remaining buildings when the DDA�s were approved by the City Council and Redevelopment Agency Board,  they are included in this staff report  for background information since demolition of these buildings is included in Bid Schedule No. R-1147.

An Acquisition and Sale Agreement for purchase of 1819 Grismer Avenue was approved by the Housing Authority on July 16, 2002.  The Authority transferred title to the Redevelopment Agency through a Cooperation Agreement dated July 23, 2002.  The property was purchased as part of the Peyton-Grismer Acquisition/Rehabilitation Project and will be the future home of the Peyton-Grismer Achievement Center.  The project is designed to remedy substandard conditions relating to deteriorated buildings, parking below code requirements, difficult vehicular ingress and egress, and inadequate recreation space within the Peyton-Grismer neighborhood.  These remedies will require demolition of some of the existing buildings in the neighborhood.  1819 Grismer is one of the buildings to be demolished. 

Staff is anxious to demolish these buildings.  Both sites have experienced recurring problems with transients breaking into the vacant buildings, even though the necessary steps were taken to secure the sites.  These buildings must be demolished as soon as possible.

ANALYSIS:

Bid Schedule R-1147 was advertised on May 28, 2003 and May 31, 2003.  Pre-bid project meetings were held on June 5, 2003, June 11, 2003 and June 17, 2003.  On June 24, 2003, seven bids were received as follows:

Viking Demolition                             $85,328.00

Three D Service                                $92,505.00

American Wrecking Inc                    $93,700.00

Interior Demolition Inc                       $95,000.00

Pena Grading & Demolition Inc       $125,375.00

William L Olson Inc                           $127,750.00

J & G Industries Inc                           $178,000.00

Viking Demolition is the lowest responsible bidder and has performed numerous building demolition projects for the City and Redevelopment Agency over the past 10 years with satisfactory results.

FISCAL IMPACT:

The low bidder for Bid Schedule No. R-1147 is Viking Equipment Corp.  The total cost for both projects is $85,328, $74,328 for the police block demolitions and $11,000 for the 1819 Grismer Avenue.  Funds have been budgeted and are available in the Agency�s Capital Improvement Program budget for both projects.

RECOMMENDATION:

Staff recommends the Agency Board adopt the proposed resolution awarding Bid Schedule No. R-1147 to Viking Equipment Corporation for demolition of various Agency buildings, and authorizing the Executive Director, or her designee, to execute all of the necessary documents.