City of Culver City, California
Redevelopment Agency Agenda Item Report
Phase 1
Phase 2
Triangle Site
RECOMMENDATION:
Staff recommends the Culver City Redevelopment Agency (“Agency”) award a
contract for the removal of asbestos and lead-based paint materials, and demolition
of building and other site improvements to ATE Environmental in the amount of
$294,500 for the Washington National Triangle Site (“Triangle Site”)
BACKGROUND:
The Triangle Site, bounded by Exposition
Blvd., Washington Blvd., National Blvd.,
and Venice Blvd., is currently improved
with 12 light industrial buildings and one
motel. The Agency has possession of all
of the properties. This area is immediately
adjacent to a proposed light rail station.
These properties were acquired by the
Agency for the purpose of
redevelopment as a transit-oriented
development comprised of a mix of uses
that have not yet been determined but may include housing, open space, offices,
neighborhood-serving retail, a hotel , and public event space. The Agency is
currently negotiating with a developer prior to conveyance of the property.
Meeting Date: 12/17/07 Item Number: __A-2
AGENDA ITEM: Approval of a Professional Services Agreement with ATE
Environmental for Asbestos/Lead Based Paint Mitigation and Demolition of the
Improvements located on the Washington/National Triangle Site.
Contact Person/Dept.: J. Christopher
Evans
Phone Number: (310) 253-5744
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: []
Public Notification: All owners and occupants in Culver City and Los Angeles within 300
feet of both sites were notified by mail (12/03/07); All bidders and John Gunn of Urban
Partners (12/03/07); Master Notification List (12/12/07).
Department Approval:
Sol Blumenfeld
Executive Director Approval:
Jerry Fulwood (12/12/07)
Fiscal Impact Review:
Jeff Muir (by N. Kimball)(12/11/07)
City of Culver City, California
Redevelopment Agency Agenda Item Report
Staff is recommending that the Agency award a contract and authorize demolition of
the site improvements for several reasons:
1. Should the Agency enter into a Disposition and Development Agreement
(DDA) with a developer a term of the DDA will be that the Agency provide the site
free of improvements.
2. Many of the existing structures are blighted and demolition will eliminate them
as visual nuisance and improve the area’s appearance. The existing structures
cannot be reused pursuant to State and Federal law. According to the law,
structures acquired through eminent domain (approximately 40 percent of the
Site) cannot be reused without substantial modifications. In this case, substantial
modification could include structural improvements, and the removal of lead paint
and asbestos.
3. Maintaining the existing blighted infrastructure, such as a vacant motel
presents a fire hazard as well as an on-going security risk from break-ins
On January 25, 2007, and February 1, 2007, notices inviting bids for demolition were
published in the Culver City News and the McGraw Hill Green Sheets to solicit bids
for the demolition project. The notices called for the demolition of building and other
site improvements, with abatement and remediation of hazardous materials to occur
concurrently with the demolition. The bid documents, including the demolition plan
and the hazardous materials reports were made available to demolition contractors.
The selected contractor will be responsible for the proper abatement of the asbestos
and lead-based paint-containing material under the supervision of CTL
Environmental Services. The selected contractor is also responsible for carrying
out the storm water prevention plan for the site.
On February 15, 2007, Agency staff received and opened 11 bids for the
demolition of the Triangle Site. At the time the bids were received demolition was
proposed to take place in two phases. The base bid, phase one of demolition,
included all properties that make up the Triangle Site with the exception of Les
Surfas’s properties (See Attachment No. 2). The Bid Alternate, phase two of
demolition, was the additional amount to demolish Les Surfas’s properties, which
the Agency had not yet acquired as of February 15, 2007. As the Agency now has
possession of Les Surfas properties demolition of all properties will occur
simultaneously rather than in two phases as originally proposed.
City of Culver City, California
Redevelopment Agency Agenda Item Report
The results of the proposals received are as follows:
Triangle Site (Bid No. 1348)
Name of Firm
Base Bid Alternate Total
American Wrecking
South El Monte, CA
$397,700 $129,500 $527,200
ATE Environmental
City of Industry, CA
$259,500 $35,000 $294,500
CST Environmental
Brea, CA
$487,800 $187,800 $675,600
DOJA Inc.
Ontario, CA
$406,000 $95,000 $501,000
Interior Demolition
Tujunga, CA
$224,038 $75,225 $299,263
Miller
Anaheim, CA
$830,000 $98,000 $928,000
National Demolition
San Pedro, CA
$557,500 n/a $557,000
Standard Industries
Saticoy, CA
$454,119 $110,000 $564,119
Thomas
Construction
Lawndale, CA
$389,844 $113,690 $503,534
Trimax
Los Angeles, CA
$495,000 $185,000 $680,000
William L. Olson
Santa Clarita, CA
$549,975 $50,000 $599,975
Staff has confirmed with ATE that their bid is good through March 15, 2008.
DISCUSSION:
Staff recommends that the Agency award a contract to ATE Environmental in the
amount of $294,500 for the hazardous materials abatement and demolition
services as the lowest and most responsible bidder for the Triangle Site. Staff also
recommends that the Agency authorize the Executive Director to approve change
orders for unforeseen conditions in an amount not to exceed an additional
$50,000. Unforeseen conditions are common when demolishing structures
because subsurface infrastructure is difficult to identify beforehand.
City of Culver City, California
Redevelopment Agency Agenda Item Report
CBM, the Agency engineering consultant, qualified the respondents and considers
the bids supplied as accurate and true. The disparity in price is common with so
many bidders responding. There were sufficient bids close enough in cost to the
lowest bids to trust that the lowest bidders hadn't missed significant demolition
details when pricing their bid.
Demolition is expected to commence on March 2
nd
, 2008 with work completed
within approximately 30 working days. Staff will hire a pest control service under
an administratively approved agreement to perform pest control services at each
site prior to demolition. Construction management will be performed by CBM
Consulting, Inc. and the Public Works Department, and CTL Environmental
Services will monitor the hazardous material abatement process under their
existing agreement.
Interim Site Use
Staff will come back to the Agency prior to demolition of the Triangle Site to
present interim use options and get direction for moving forward with one of those
options. Following demolition of the existing infrastructure, staff believes it
important that an interim use be identified that generates revenue for the Agency.
Interim use options include:
• Temporary storage for vehicles or otherwise – Agency staff has obtained a
verbal assurance from Hooman Nissani that his auto dealership could utilize
an unimproved lot for vehicle storage and would be interested in negotiating
a lease agreement for the lot. A lease price has not yet been determined.
• Temporary parking for area employees or production companies – Staff has
approached both Sony and Culver Studious as well as spoken to many
production companies. Demand for parking for film production crew and
extras is high and an improved parking lot could likely be leased for film
crew parking. Parking spaces could also be leased to area business
employees. Staff does not yet have any firm commitments.
• Do nothing, fence the property and hold for conveyance at a later date.
Depending on the cost of improving the Triangle Site for parking or storage,
staff ability to obtain agreements and the likely date of conveyance, holding
the property without investing in improvements may make the most sense.
Staff will complete an analysis of each option and present them to the Agency at a
future Agency meeting
City of Culver City, California
Redevelopment Agency Agenda Item Report
FISCAL ANALYSIS:
Unused bond funds for this project are available to be carried over from fiscal year
2006-07 in the amount of $350,000 (Acct. # 55392620.710150). These funds were
already approved in 2006-07 for demolition and are included as part of the total
project budget.
ATTACHMENTS:
1) Bid Summary Sheet
2) Demolition Plan
MOTION:
That the Agency:
1) Award a contract to ATE Environmental for the removal of asbestos and lead-
based paint materials, and demolition of building and other site improvements
at the Triangle Site on the basis of its Bid plus Bid Alternate for a total contract
amount of $294,500 plus up to $50,000 as a contingency for change orders that
may occur during the demolition (for a total not-to-exceed contract amount of
$344,500);
2) Reject all other bids;
3) Authorize the Agency General Counsel to review/prepare necessary document
and authorize the Executive Director to execute those documents on behalf of
the Agency; and
4) Authorize the Executive Director to approve change orders that may occur
during the demolition for a not-to-exceed amount of $50,000; and,
5) Authorize the carryover of $350,000 (55392620.710150) from fiscal year 2006-
07 to fiscal year 2007-08.