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W A T E R I E N E R 5 Y , L I F E RIVERSIDE PUBLIC UTILITIES Board Memorandum P U B L I C U T I L I T I E S BOARD OF PUBLIC UTILITIES DATE: February 19, 2010 ITEM NO: 10 SUBJECT: DEMOLITION OF BUILDINGS LOCATED AT 1388 E STREET, SAN BERNARDINO AND AWARD OF PURCHASE ORDER—WORK ORDER NO. 1020539 ISSUES: Consideration of a capital expenditure in the amount of$71,650, for the building demolition and lot clearing at 1388 E Street, San Bernardino (the "Property"), and approval of a Purchase Order with Ampco Contracting, Inc to complete the work. RECOMMENDATIONS: That the Board of Public Utilities: 1. Approve the Purchase Order with Ampco Contracting, Inc.for building demolition and lot clearing at 1388 E Street, San Bernardino; and 2. Approve the capital expenditure of$71,650 for Work Order No. 1020539, for the demolition of all structures located on the Property. BACKGROUND: In 1971, the City of Riverside (City), through its Public Utilities Department entered into a lease agreement with Holiday Oldsmobile for the Property. The lease permitted Holiday Oldsmobile to develop, construct and maintain a new car showroom, repair shop, auto body/paint shop, and new and used car sales lots. In July 2001, Holiday Oldsmobile sold the franchise to Center Chevrolet, who then entered into a new lease with the City. In early 2008, Center Chevrolet began experiencing financial difficulties and after several unsuccessful attempts to sell the business, Center Chevrolet filed for bankruptcy, subsequently abandoning the property and their lease obligation with the City. The Property has been vacant since November 2008 and has proven to be a magnet for graffiti, vagrancy and vandalism. Because the buildings have not had any improvements since their construction in 1971,they have reached their useful life. Based on the deteriorating substandard state of the buildings, staff is recommending the demolition of all the structures on this Property, as shown on the attached Exhibit A. On January 7, 2010, staff opened bids for the demolition of all the buildings and lot clearing, of the Property, which entails the removal of the office,two show rooms, repair shop, paint/body shop, paint bays and booths. The bid process yielded 15 bids as shown on the attached Exhibit B, with the three lowest bids summarized below: PRIME CONTRACTOR LOCATION BID TOTAL 1. Ampco Contracting, Inc. Santa Ana, CA $71,650.00 2. Prime Demolition, Inc. San Pedro, CA $72,058.00 3. Dakeno, Inc. Riverside, CA $89,864.00