Housing Successor Agency
MEETING DATE: 4/8/2015
TITLE:
Title
Authorization of Relocation and Demolition Contracts for Housing Properties
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FROM:
Tami E. Scott, Administrative Services Director
RECOMMENDATION:
Recommendation
Staff recommends that the City Council authorize the execution of contracts with LACAL Relocation Services in an amount not to exceed $18,000 for relocation services and with DEMO Unlimited for demolition and asbestos testing and abatement services in an amount not to exceed $90,000; and authorize a budget appropriation from the Low & Moderate Income Housing Asset Fund in an amount not to exceed $408,000 for relocation services, relocation and moving payments and site clearance for three properties located in the Downtown area as more fully described herein.
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BACKGROUND:
Throughout the years, our former redevelopment agency ("RDA") was engaged in site assembly activities for future affordable housing and redevelopment projects. During this time period, the former RDA acquired numerous occupied properties and both temporarily and permanently relocated residents prior to demolition of the structures. At this time, there are three remaining tenant occupied structures that are located at:
68537/68539 "C" Street (Duplex), APN 687-215-006
68745 "C" Street, APN 687-216-014
68676 Units A&B "E" Street, APN 687-232-006
The condition of these structures have continued to deteriorate and, with the demise of redevelopment and the former 20% RDA housing fund, there are no longer funds available for on-going carrying and maintenance costs. As such, it is now necessary to relocate the remaining tenants and proceed with site clearance activities.
DISCUSSION:
Staff solicited proposals from relocation consultants who have done business with the RDA in the past. The lowest proposal, which includes preparation of the mandated relocation plan and managing the relocation process, was received from LACAL Relocation Services in an amount not to exceed $18,000. LACAL Relocation Services is also recommending a budgetary appropriation in the amount of $300,000 for relocation and moving benefits to be paid to or on behalf of the tenants. All of these tenants are eligible for permanent relocation assistance but the amount of such assistance cannot be determined until tenant interviews are conducted and replacement units are identified. However, based on the household size and historic income data, it appears that many of these tenants may qualify for substantial assistance.
Staff also solicited proposals for demolition services and received two responses. DEMO Unlimited submitted a proposal in an amount not to exceed $60,000 plus the cost of asbestos testing and removal. Due to the age of the structures, the likelihood of asbestos is high. However, abatement costs cannot be determined with any degree of accuracy until testing has been performed. Past experience with asbestos abatement in similar structures in the area would suggest a "best-guess" estimate of $5,000 per structure, or a total of $15,000, but for budgetary purposes, staff recommends that the contract with DEMO Unlimited be in amount not to exceed $90,000.
FISCAL IMPACT:
The relocation and site clearance costs for the three remaining tenant occupied structures in the Downtown area (Lower Cove) will require a budget appropriation of $408,000 from the Low and Moderate Income Housing Asset Fund (former RDA Housing Fund).
ATTACHMENTS:
None