Memo from City Manager to City Council Regarding contract in the Amount of $547,000, and Authorize the City Manager to Approve Contract Changes.. to Asbestos Management Group of California, January 5, 2016

Exhibits:

1. Contract - Asbestos Management Group

2. Demolition Images

Excerpt:

Recommendation to Award a Contract in the Amount of $547,000, and Authorize the City Manager to Approve Contract Changes, if necessary, up to a Ten Percent Contingency in the Amount of $54,700 for a Total Amount of $601,700, to Asbestos Management Group of California, Inc. for the Demolition, Clean-up and Disposal of Sixteen Vacant Residential Structures Located at Orion Street, West Tower Avenue and Stardust Place and Pearl Harbor Road at Alameda Point and Appropriate $601,700 from the Base Reuse Fund Balance. (Base Reuse 819099)

To: Honorable Mayor and Members of the City Council

From: Elizabeth D. Warmerdam, Interim City Manager

Re: Recommendation to Award a Contract in the Amount of $547,000, and Authorize the City Manager to Approve Contract Changes, if necessary, up to a Ten Percent Contingency in the Amount of $54,700 for a Total Amount of $601,700, to Asbestos Management Group of California, Inc. for the Demolition, Clean-up and Disposal of Sixteen Vacant Residential Structures Located at Orion St., West Tower Ave. and Stardust Pl. and Pearl Harbor Rd. at Alameda Point and Appropriate $601,700 from the Base Reuse Fund Balance

BACKGROUND

In March 2015, the City Council expressed concern about the remaining unoccupied apartment units located at Alameda Point and directed staff to develop a plan to address safety and blight issues. In Spring 2015, during the budget process, the Council considered using General Fund reserves to fund the removal of the units, but in an effort to have Alameda Point continue to support its operations and maintenance, staff asked Council to delay action until the completion of audited financials from fiscal year 2014-2015 to determine if there would be enough available funds in the Base Reuse Fund Balance. At the same time staff issued a Call for Bids so the project could begin once the funding had been identified.

The first bid solicitation was rejected at the October 6, 2015 Council meeting because the proposals were deemed unresponsive. However at that meeting, the City Council adopted plans and specifications and authorized a call for rebid for the demolition, clean-up and disposal of sixteen vacant residential structures located at Orion St., West Tower Ave., Stardust Pl. and Pearl Harbor Rd. at Alameda Point. On October 7, 2015, under the direction of the City, PM Realty Group (PMRG) sent out a Notice Inviting Bids (NIB) for the demolition, clean-up and disposal of the vacant residential structures. The scope of the project includes safe demolition of buildings containing asbestos, removal and clean-up of asbestos-containing and contaminated materials and related debris, and transportation and disposal of waste materials.

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