CC - Item 4E - Receipt and Award of Bids for the Rosemead Residential Rehabilitation Program, Deferred Loan for 8546 Olney Avenue r , M F
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TO: HONORABLE.MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGE
DATE: JUNE 3, 1997
SUBJECT: RECEIPT AND AWARD OF BIDS FOR THE ROSEMEAD RESIDENTIAL
REHABILITATION PROGRAM,DEFERRED LOAN FOR 8546 OLNEY
AVENUE
On November 11, 1996, staff authorized receipt of bids for a Deferred Loan for rehabilitation of
the property located at 8546 Olney Avenue. The homeowner was given bid packages, as well as
the list of contractors who had applied for the City list. The bid packages requested line item
bids for each item of work to be completed, as well as a total amount for the entire rehabilitation
project.
The property on Olney Avenue has several code violations. The primary emphasis of the bid
package is to correct these deficiencies and to repair and/or replace other health and safety items.
Repairs to code violations include: replacement of roofing, conversion of illegal bedroom into
legal bedroom, removal of asphalt driveway and construction of new curb and gutter. Health and
safety items to be corrected include: termite fumigation and repair, replacement of seriously
dilapidated kitchen cabinets and modernization, and new plumbing.
Each contractor interested in submitting a bid for the project met individually with the
homeowner during the on-site walk-through of the property prior to bid submission. Each
contractor explained its procedures and techniques to the homeowner during the individual
meeting.
COUNCIL AGENDA
JUN 101997
ITEM No. ' "'-6.-
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'-E\
DEFERRED LOAN, 8546 OLNEY AVENUE, 2
Bids were due March 10, 1997. Completed bids were submitted to staff. Staff checked each
bidder for responsiveness of bid, and for a valid contractor's license. Of the bids submitted,the
California State Licensing Board showed there was pending legal action of an unknown nature
against one bidder. After additional investigation by staff, it was learned that the legal action is
being brought forward by another City for incomplete work; in addition,the contractor had not
filed for renewal of its license. This bid was dropped from consideration, and staff asked the
owner to solicit one additional bid.
After receipt of the additional bid, a spreadsheet was prepared to evaluate the three bids. The
spreadsheet was reviewed by staff and the owner. All of the bids were over the deferred loan
threshold of$35,000. Staff reviewed the proposed scope of work to see if items could be
eliminated from the work write-up to bring the project in under $35,000. Some bid items were
deleted and the project was re-bid.
The deleted items are: carpeting, block wall,new garage doors, and interior paint, smoke
detectors and the dismantling of an illegal carport. The household will dismantle the carport and
install smoke detectors themselves prior to signing any loan documents. The driveway removal
and new curb and gutter will be completed under the City Council approved CDBG-funded
Public Works Grant Program, which in conjunction with CDBG loans, makes a grant available
for public works improvements, such as driveway aprons and sidewalks.
Under the City Council-approved guidelines,the homeowner may select the contractor. For the
purpose of the program, the selected bidder must be within 15% of the in-house estimate or the
average of a minimum of three (3) bids received. In this case,the homeowner selected Terrones
Construction,who submitted a bid in the amount of$39,416,which is within the program
limitation. Terrones was also the low bidder. To cover the cost of rehabilitation, needed
fumigation and termite repair, and contingency, staff is proposing a total loan amount of
_ $45,000, which would provide an 11% contingency. In the past,the City Council has approved
loans for amounts over$35,000 in cases where the property is severely dilapidated and where bid
items cannot be deleted.
The property at 8546 Olney Avenue has debt of$51,312.46; its current valuation is $122,698.
Because of this,there is sufficient equity in the property to cover the amount of this deferred
loan.
The Bid results are as follows:
Oakridge Construction $52,961.00
3-5-6 Construction $41,641.00
Terrones Construction $39,416.00
DEFERRED LOAN, 8546 OLNEY AVENUE, 3
RECOMMENDATION:
1. Accept and award contract to Terrones Construction, owner selected bidder for this
program, in an amount not to exceed$45,000.00; and
2. Authorize staff to prepare loan documents and initiate contract between owner and
contractor.
Hernandez Bid Comparison
Roof Fumigation Garage Kitchen Utility Room Windows Ext.Paint Wrought Iron Bathroom Water Heater Plumbing Trash Fees Total
Oakridge $6,420.00 $1,116.00 $8,658.00 $11,056.00 $1,620.00 $4,325.00 $6,360.00 $1,440.00 $3,766.00 $1,440.00 $5,076.00 $384.00 $1,300.00 $52,961.00
Terrones $5,300.00 $1,116.00 $3,800.00 $8,500.00 $1,200.00 $3,000.00 $3,500.00 $1,600.00 $4,000.00 $1,200.00 $3,800.00 $2,000.00 $400.00 $39,416.00
3-5-6 Construction $5,800.00 $1,116.00 $3,550.00 $8,200.00 $1,325.00 $4,700.00 $5,500.00 $1,000.00 $5,900.00 $725.00 $1,950.00 $875.00 $1,000.00 $41,641.00
Oakridge $52,961.00
Public Works Grant $3,864.00
Terrones $39,416.00
Public Works Grant $4,000.00
3-5-6 Construction $41,641.00 •
Public Works Grant $2,500.00
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