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CITY OF RIVERSIDE REDEVELOPMENT AGENCY MEMORANDUM Honorable Mayor & Agency Members Date: March 7, 2000 Item No.: 4 Subject: Award of Bid No. 5701 - Building Demolition and Lot Clearing at 2850, 2870, 2890 Market Street Background On August 24, 1999 the Agency authorized $81,000 from the University Corridor/Sycamore Canyon Low to Moderate Income Housing Fund account number 9733020835-44044100 to purchase and demolish three boarded- up houses at 2850, 2870 and 2890 Market Street (the "HU'D site"). Once cleared the .36 acre site will be added to the adjacent Agency-owned 5.1 acre site and sold to the Olson Company for the in-fill single family subdivision. The Agency purchased the parcel, with three houses on it, from HUD on August 25, 1999. The Agency paid $56,000 for the three homes. A Cultural Resource Study and Phase I was performed on the houses. On February 8, 2000 the City Council approved General Plan Amendment, Zone Change, Tract Map and Planned Residential Development for the HUD site as well as the larger, adjacent Agency-owned site. Bids were solicited for the demolition and lot clearing project on January 12, 2000. On February 9, the Agency received ten bids. The bid analysis is attached. Analysis John Beck, a demolition contractor submitted the low bid, for a total amount of $11,255. Although this was 65% under the Public Work's Department's estimate, Beck's bid has been determined by Agency/City staff to be a "responsive" and "responsible" bid. Fiscal Impact On August 24, 1999 the Agency authorized $81,000 from the University Corridor/Sycamore Canyon Low to Moderate Income Housing Fund account number 9733020835-44044100 for this project. There is $25,000 remaining in this budget; enough to cover the cost of demolition and lot clearing. Alternatives The Agency could elect not to demolish these houses, however the blighted conditions of the homes would detract from the positive atmosphere of the new single-family development proposed by the Olson Company. Recommendations That the Redevelopment Agency: I. Award Bid No. 5701 for the building demolition and lot clearing of 2850, 2870, and 2890 Market Street, to John Beck in the amount of $11,255. 2. Authorize the Executive Director, or his designee, to execute the necessary contract documents. 4-1