CC – Item 4D – Staff Report – Receipt and Award of Bids for the Rosemead Residential Rehabilitation Program, Deferred Loan- 4439 Bartlett Avenue O y.
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TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK TRIPEPI, CITY MANAGER .
DATE: MAY 5, 1998 —
SUBJECT: RECEIPT AND AWARD OF BIDS FOR THE ROSEMEAD
RESIDENTIAL REHABILITATION PROGRAM,
DEFERRED LOAN-4439 BARTLETT AVENUE
On April 20, 1998, staff authorized the owner of 4439 Bartlett Avenue to obtain bids for a
project under the Community Development Block Grant (CDBG) Deferred Loan Program.
At a pre-bid meeting, bid packages were given to contractors who applied to be on the
City's list. These bid packages requested line-item bids for the work to be completed on
the project and a total for the entire rehabilitation package.
Work to be completed includes code violations, such as replacement of roof, removal of
overgrown vegetation in rear yard, illegal patio conversion and repair to broken sewer line
and plumbing lines. Other work includes bathroom repair, repair to windows and kitchen
and exterior painting.
Prior
to
Five (5)p contractors meeting,
mettwith the homeowner duringetters to 18 ors inte (orng them of the meeng.
onsite walk through oftlthe
property prior to submitting a bid. Each contractor explained his procedures and
techniques to the homeowner during that process. Staff requested potential bidders to
do this in order to ease any concerns the homeowner might have about the project.
The bid due-date was April 23, 1998. Bids were turned in to staff and staff proceeded to
check the responsiveness of each bid.
COUNCIL AGENDA
MAY 121998
ITEM No. b
Complete, responsive bids were received from two Contractors. Jay-Ar Construction sent
a "No-Bid" letter (see attached). A spread sheet was set up containing the two bids. The
spread sheet was reviewed by staff and the homeowner and then given to the homeowner
for further review.
Staff recommends that Council increase the loan amount for this property to $45,000.00
from the current maximum of $35,000.00. This would be sufficient to correct the code
violations, repair the unit, and repay the existing deferred loan. Since the property is
owned "free and clear' and is unencumbered, there is sufficient equity to protect the
amount of the proposed loan.
In accordance with the City's approved Rehabilitation Guidelines, the property owner has
the ability to select the contractor of choice as long as the bid is within 15% of the average
bid or in-house estimate. The homeowner selected Terrones Construction. Terrones
Construction submitted a bid in the amount of $35,000.00. In addition to this bid, a
contingency amount for unforeseen items and circumstances has been added. The
contingency seeks to address items that may be brought to light during the course of
construction. The homeowner is also required to repay a previous City approved Deferred
Loan in the amount of$6,340.00
The Bid results are as follows:
Nick's Remodeling $30,313.00
Terrones Construction $35,000.00
Average Bid $32,656.50
RECOMMENDATION
1. Authorize a one-time increase in the total allowable amount of deferred loan from
$35,000 to $45,000.
2. Accept and award contract to Terrones Construction, owner selected bidder for this
loan program in an amount not to exceed $45,000.00
3. Authorize staff to initiate contract with owners and contractor.
Attachments
Jay-Ar Construction Co.
GENERAL CONTRACTORS STATE LICENSE 276131
6022 Primrose Ave.,Temple City,CA 81760 x (618)286-64)1 Fax(816)309-2986
City of Rosemead
Housing Rehabilitation Loan Program T22
e April 98
re: 4439 Bartlett Ave. Temple City, Ca.
Rosemead, Ca.
att: Micheal Neal
Dear Mr. Neal
Thank you for your consideration in requesting a bid proposal from our
company for work to be performed at above address. D
we are unable to submitt a bid for said work at this to to time restraints
time.
Again, thank you for your consideration and looking forward to future
associations on other projects.
Respectfully
A .R. RA ES dba JAY—AR CONSTRUCTION CO.
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