Item 6-E
October 26, 1999 Santa Monica, California
TO: Mayor and City Council
FROM: City Staff
SUBJECT: Recommendation to Authorize City Manager to Negotiate and Execute a Sole Source Contract with Fourth Street Services Corporation for Design and Predevelopment Services for Construction of Parking Structure located at 1116-46 Fourth Street
INTRODUCTION
This report recommends that the City Council authorize the City Manager to execute a sole source contract with Fourth Street Services Corporation in an amount not to exceed $275,000, including contingency, to provide design and predevelopment services for the construction of the public parking structure to be located at 1116-46 Fourth Street.
DISCUSSION
As approved by the City, this project involves the construction of 66 units of low income senior housing funded primarily by the U.S. Department of Housing and Urban Development (HUD) on top of a public parking structure containing 165 public spaces at 1116-46 Fourth Street, currently the site of a 165-space surface parking lot. Over the past several years, the City Council has authorized an agreement for the sale of air rights to the project, authorized use of housing trust funds to provide interim funding to construct the parking structure, and affirmed on appeal the City
=s granting of land use entitlements to the project. On September 22, 1998 the City Council voted to waive public bidding for the construction of the public parking structure.At that meeting, authorization to negotiate and execute a sole source contract with the Fourth Street Services Corporation to oversee preparation of design and construction drawings, and to carry out associated predevelopment activities should have been sought. The currently requested action will correct this administrative oversight.
The Fourth Street Services Corporation is a non-profit organization created by Menorah Housing Foundation of the Jewish Federation Council to develop the public parking structure in conjunction with this affordable housing project. Developing HUD Section 202 air rights projects requires specialized knowledge possessed by few persons or organizations. The Menorah Housing Foundation has developed four other HUD Section 202 senior citizen housing projects above parking structures and therefore is well-versed in the technical issues involved in the project.
FINANCIAL/BUDGETARY IMPACTS
On September 22, 1998, the City Council authorized a total expenditure of $2,250,000 for the construction of the parking structure. This amount includes the cost of design and predevelopment services. Funds were encumbered from the following accounts:
| Account Number | Amount | |
| 01-720-264-20095-8905-99229 | [STARS: C01022995.589000] | $1,232,029 |
| 01-720-264-20095-8905-99710 | [STARS: C01071095.589000] | $1,017,971 |
| TOTAL: | $2,250,000 |
The $275,000, including contingency, should be charged to account: C01022995.589000
CONCLUSION
Staff recommends that the City Council authorize the City Manager to negotiate and execute a sole source contract with Fourth Street Services Corporation in an amount not to exceed $275,000, including contingency, to provide design and predevelopment services for the construction of the parking structure to be located at 1116-46 Fourth Street.
Prepared by:
Jeff Mathieu, Resource Management Director
Bob Moncrief, Housing and Redevelopment Manager
Jim Kemper, Senior Administrative Analyst
Steve Goldmaker, Administrative Analyst