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C.4
To: Contra Costa County Housing Authority Board of Commissioners
From: Joseph Villarreal, Housing Authority
Date: September  24, 2019
The Seal of Contra Costa County, CA
Contra
Costa
County
Subject: AWARD CONTRACT TO ASBESTOS MANAGEMENT GROUP OF CALIFORNIA, INC. IN THE AMOUNT OF $838,000 TO PERFORM ASBESTOS ABATEMENT AND DEMOLISH 51 BUILDINGS IN T
Action of Board On:   09/24/2019
APPROVED AS RECOMMENDED OTHER
Clerks Notes:

VOTE OF SUPERVISORS

AYE:
John Gioia, Commissioner
Candace Andersen, Commissioner
Diane Burgis, Commissioner
Karen Mitchoff, Commissioner
Federal D. Glover, Commissioner
ABSENT:
Jannel George-Oden, Commissioner
Contact: 9259578028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown.
ATTESTED:     September  24, 2019
,
 
BY: , Deputy

 

RECOMMENDATIONS

APPROVE the plans, specifications, and design for the above Project, which consists of the demolition and asbestos abatement of 51 buildings (98 total housing units) at the Las Deltas public housing development in North Richmond; and  
  

DETERMINE that the bid submitted by Asbestos Management Group of California, Inc. (AMG,) is the lowest responsive and responsible bid for the Project; and  

  
RECOMMENDATIONS (CONT'D)
AWARD contract to AMG, the lowest responsive and responsible bidder, in the amount of $838,000 (Line Item #1 and Line Item #2 only), for the Project work, which award is contingent upon the receipt of the relevant, required approvals from HUD; and  
  
AUTHORIZE the Executive Director, or his designee, to approve construction change orders, as needed, up to a total of 10% of the contract amount (an additional $83,800); and  
  
ORDER that, after the contractor has signed the contract and returned it, together with performance and bonds, insurance certificates, and any other required documents, and the Executive Director of the Housing Authority of the County of Contra Costa (HACCC), or his designee, has reviewed and found them to be sufficient, the Executive Director, or his designee, is authorized to execute the contract for this Board; and
  
  
ORDER that, in accordance with the Project specifications and/or upon signature of the contract by the Executive Director, or his designee, any bid bonds posted by the bidders are to be exonerated and any checks or cash submitted as bid security shall be returned; and  
  
AUTHORIZE the Executive Director, or his designee, to sign any escrow agreements prepared for the Project to permit direct payment of retentions into escrow, or the substitution of securities for monies withheld by the Housing Authority, to ensure performance under the contract, pursuant to Section 22300 of the Public Contract Code.
BACKGROUND

Due to the distressed condition of the Las Deltas property in North Richmond, which contains 51 contiguous, public-housing buildings (98 total housing units), and the lack of adequate funding to remodel/repair the units for habitability, the buildings of the Las Deltas site have been identified as a significant, potential hazard by both the Contra Costa County Fire Protection District and HACCC. As a result of the vacancies caused by the Rental Assistance Demonstration (RAD) conversion of Las Deltas, there has been an increase in the incidents of breaking and entering into units at Las Deltas, primarily by homeless persons.   
  
For these reasons, HACCC has prepared plans and specifications to demolish the 51 contiguous buildings, including asbestos abatement, and has solicited bids for the demolition and abatement work. Demolishing these units will save costs and will alleviate potentially serious safety concerns. In addition, demolishing a series of contiguous buildings to create a large, vacant site will make it easier to draw interest from potential development groups than were the site to be left as a series of separate, dilapidated, boarded-up, and vandalized buildings.   
  
On August 19, 2019, HACCC received four bids from licensed contractors to perform the Project work at Las Deltas. The bids received, which include the full demolition and abatement work (Line Item #1 and Line Item #2 only) with no deductive alternates, were as follows:

  

Asbestos Management Group of California, Inc.

$ 838,000

CVE Contracting Group, Inc.

$ 990,350

Resource Environmental, Inc.

$1,250,000

JS Company, Inc.

$1,454,700

  

AMG submitted the lowest responsive and responsible bid at $838,000 and staff recommends that the Board award the demolition and abatement contract to AMG.  
  
A Mitigated Negative Declaration was prepared for this Project in compliance with the California Environmental Quality Act (CEQA) and a Notice of Determination was filed with the County Clerk on July 3, 2019 (see attachments). No legal challenge was filed within the 30-day posting period or afterwards. The Project scope of work includes the mitigation measures set forth in the Mitigated Negative Declaration.  
  
The general prevailing rates of wages, which shall be the minimum rates paid on this Project, have been filed with the Clerk of the Board, and copies will be made to any party upon request.
FISCAL IMPACT

Funding for this Project is provided through HACCC’s annual Capital Fund grant from the United States Department of Housing and Urban Development (HUD). Funding for this Project is provided for in HACCC's current budget.
CONSEQUENCE OF NEGATIVE ACTION

Should the Board of Commissioners elect not to award the contract to AMG, HACCC will need to expend additional staff time and resources to rebid the Project and/or to deal with continued break-ins, vandalism, and potential fires at the Las Deltas site. A delay may also jeopardize the HUD funding allocated to the Project. Finally, such action would also delay the needed demolition of these potentially-hazardous buildings.
CLERK'S ADDENDUM

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