Laserfiche WebLink
Birch Street Development Project <br />January 3, 2006 <br />Page 2 <br />Over a period of a year, the Birch Street Homes were sent out to bid on <br />three separate occasions and deadlines for submission extended in an <br />effort to obtain competitive bids. Notices were published in the <br />newspaper, advertised on the Internet, and mailed to over 30 contractors <br />who are listed on a Contractor's interest list maintained by the Agency. <br />After the first attempt to bid the project was unsuccessful, staff <br />surveyed contractors who requested bid packets. The feedback indicated <br />that they were too busy and /or were not interested in working on a job <br />that required prevailing wages. The most recent request for bids was <br />published in the O.C. Register, advertised on the Internet and mailed to <br />an additional 20 contractors. The following is a summary of the bids <br />received: <br />General Maintenance, Inc. $1,880,950 Santa Ana <br />PCN3* $ 498,300 Long Beach <br />RAV Company $3,963,931 Laguna Niguel <br />Based on these results, General Maintenance, Inc. (GMI) a private general <br />contractor with a class B license is recommended to be awarded the <br />construction contract for the Birch Street project (Exhibit 3) . GMI has <br />proposed to construct the homes in two phases, with each phase taking <br />seven months to complete. Under this schedule, construction is expected <br />to commence at 435 -437 S. Birch Street in February 2006, to be followed <br />by the construction of the 217 -219 S. Birch Street homes in September <br />2006. <br />The homes will be sold at a moderate price affordable to households with <br />incomes at 1200 of the Area Median Income (AMI). The final sales prices <br />will be determined at the time the homes are available for sale. These <br />prices will be determined by the median income limits in effect at the <br />time of sale. <br />When the homes are sold to the affordable buyers, it is expected that <br />they will have a conventional first trust deed financing. The difference <br />between the appraised value of the home and the affordable purchase price <br />will be provided by the Agency in the form of a silent second trust deed. <br />Payments on this mortgage will be deferred but due and payable in the <br />event of a sale of the property to a non- qualified household or violation <br />of the Agency Deed Restrictions and Covenants. The period of <br />affordability will be for a term of 45 years. <br />* The bid from PCN3 was for the construction of only one home. <br />5 -6 <br />