1986-0902_AL LOWRY PAINTING_H2a_Agenda ReportAGENDA ITEM
TO:
FROM:
SUBJECT:
SITUATION
September 2, 1986
Stephen B. Julian, City Manager
Thomas G. Merrell, Director
Community Planning and Development
Little Hollywood Paint Program - Phase II - Revised Contract
A. Summary and Recommendation - Staff recommends that the City Council approve
and execute the attached contract for "Little Hollywood" Paint Program, Phase II.
The contract was awarded to Mr. Lowrey earlier this year, but he was unable to
provide bid bonding. The bonding requirement has been eliminated from the
contract because of the small size of the project and because the contractor is
providing a $1 million insurance policy.
B. Background - The Los Rios Paint Program was begun as part of the area's home
improvement program funded by the Community Development Block Grants. The
first phase of the program, completed last year, involved the exterior painting of 14
privately -owned homes on Los Rios Street.
The second phase of the project involves 12 homes in the City -owned Little
Hollywood area to be painted in a pallette to match the existing colors of the units.
Since these homes are on public property, this phase is considered one project, and
the City's bid process was required.
A call for bids was authorized on November 5, 1985, and the sole bid was received on
January 13, 1986, from Mr. Al Lowrey, who was the contractor for Phase I. A
contract was approved by Council for Mr. Lowrey to paint the units, which included
a performance bond requirement for 100 percent of the contract amount for one
year. Since approval of the original contract, Mr. Lowrey has been unable to obtain
the required bonding due to the small size of the project and the difficult insurance
market.
Based on the quality of Mr. Lowrey's work on Phase I, the reasonable amount of his
bid, the fact that $1 million insurance is being provided, and his desire to expedite
the completion of the project, staff would recommend that the bonding requirement
be eliminated and the attached contract for his services executed.
C. Staff Findings - Staff does not find any problems with eliminating the bonding
requirement because insurance is being provided and because the contractor
completed Phase I without problems. The contract amount is such that bonding is
not feasible in the current market.
In summary, Mr. Lowrey, the sole bidder for Phase II of the "Little Hollywood" Paint
Program, has provided a reasonable bid but was unable to provide bid bonding. Staff
recommends the revised contract, which removes the bonding requirement, because
of the small size of the contract and the inclusion of a $1 million liability and
damage insurance policy provided by the contractor.
Agenda Item -2- September 2, 1986
PUBLIC NOTIFICATION
No public notification is required for approval of a painting contract.
COMMUNITY REDEVELOPMENT AGENCY
This project is located within the Central Redevelopment area.
OTHER BOARDS/COMMISSIONS REVIEW, RECOMMENDATION
The Los Rios Review Committee initiated and approved the paint program for the Little
Hollywood area.
FINANCIAL CONSIDERATIONS
Financing of this project will be through the block grant program.
ALTERNATE ACTIONS
1. Approve and execute the contract without the bonding requirement.
2. Approve the contract with modifications.
3. Do not approve the contract.
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RECOMMENDATION
By motion, approve the attached contract for Little Hollywood Paint Program, Phase II,
with Mr. Al Lowrey.
Respectfully submitted,
Thomas G. Merrell, Director
Community Planning and Development
TGM:BF:Icl