File #: 19-147    Version: 1 Name:
Type: Action Item Status: Regular Business
File created: 5/3/2019 In control: City Council
On agenda: 5/14/2019 Final action: 5/14/2019
Title: Communication from the City Manager and Community Development Director with a Request to APPROVE a CONTRACT with JIMAX for Demolition of Residential Properties as the Primary Contractor and RIVER CITY DEMOLITION as a Backup Contractor.
Indexes: Goal 2 - Safe Peoria, Goal 3 - Beautiful Peoria, Goal 4 - Grow Peoria, Grow employers and jobs., Reduce Crime, Reinvest in neighborhoods
Attachments: 1. AGMT NO 19-147 JIMAX RESIDENTIAL DEMOLITION

ACTION REQUESTED: 

Title

Communication from the City Manager and Community Development Director with a Request to APPROVE a CONTRACT with JIMAX for Demolition of Residential Properties as the Primary Contractor and RIVER CITY DEMOLITION as a Backup Contractor.

 

Body

BACKGROUND:  The City of Peoria has instituted an aggressive demolition program over the last few years to remove blight from neighborhoods and eliminate a major public safety hazard.

 

As the Community Development Department continues to demolish dangerous structures (as funding allows) the need for demolitions continues to grow.  The City of Peoria has three avenues to obtain a demolition/demolition order. 

 

The first avenue is to present a case through the Circuit Court system and present a case that shows the property is a demolition candidate.  The private property owner can ask the court for a time extension to bring the property into code compliance.  If they do not, the judge will issue a demolition order to the City of Peoria.  The City does not own the property but has permission to pursue a demolition.  Before the demolition occurs, the City has a salvage contractor go through the property and remove any items that could be salvaged.  The City of Peoria then makes every attempt to collect the cost of the demolition from the private property owner.

 

The second avenue is to present a case to the Circuit Court to have a property declared abandoned.  If the property meets the three abandoned property requirements, (property must be a dangerous building, property must be vacant and abandoned, and the property has two years of unpaid property tax) the City asks the judge to declare the property as abandoned.  The City of Peoria then becomes the deed holder of the property.  Staff does a thorough inspection of the property with a realtor to determine if the property could be sold and rehabbed by a private property investor.  Historically, about approximately 98% of properties obtained through this process are too far deteriorated to be rehabbed.  If the property cannot be saved, the salvage company is brought it to salvage remaining items.  The property is then demolished by the City of Peoria and added to the Public Works mowing rotation to be maintained until a future use is determined.

 

The third avenue is an emergency demolition.  For an emergency demolition to occur, it must be determined by the Building Official that the property is in imminent danger of collapse and poses an immediate health risk to residents in the City of Peoria.

 

The City has currently budgeted $300,000 in capital funds for demolitions of property.  This will allow the City to do about 30 demolitions in 2019.  The Community Development Department currently has about 60 properties ready for demolition with approximately 120 properties working through the court system.

 

The City budgeted $125,000 for emergency demolitions for 2019 in the general fund.

 

In addition to the funds identified above, the Community Development proactively looks for grant opportunities to expand the demolition program.  Over the last four years, the Department has obtained about $1 Million is federal and state grants for additional demolitions.  The Department will continue to look for these opportunities going forward.  (The Community Development Department will also be extending the contracts for our two salvage companies into 2019.)

 

The demolition contract provides for a contractor, and a backup, to provide the City with demolition services.  This includes emergency demolitions when required.  The City uses the primary contractor to do the demolition work and the back up is utilized if the primary contractor is unable to perform the requirements of the contract.

 

The Purchasing Division issued a request for proposal (RFP) for the contract and proposals were opened on January 23, 2019. 

 

The City received four (4) proposals for this contract.  Proposals were graded based on the following scale by individuals from the Finance, Public Works, and Community Development Departments:

 

• Approach to Project (35 Points)

• Previous Experience (20 Points)

• Pricing (25 Points)

• MBE/WBE Participation (20 points)

 

 

 

 

 

JIMAX has been the primary contractor for the City of Peoria Community Development Department for residential demolitions over the last few years. They have done a good job executing the contract and a valuable partner on other neighborhood projects throughout the City of Peoria.  JIMAX has indicated their workforce will be made up of fifty percent (50%) minorities who primarily live in the neighborhood where the work is being executed.  The Community Development will proactively monitor the staffing levels of Jimax to ensure this commitment is being fulfilled.

 

FINANCIAL IMPACT:  $300,000 is budgeted in the capital fund for demolitions for 2019.  An additional $125,000 is budgeted in the general fund for emergency demolitions.

 

NEIGHBORHOOD CONCERNS:  Reducing dangerous building in the City of Peoria reduces blight and safety hazards in our neighborhoods.

                     

IMPACT IF APPROVED: Demolitions will occur until funds are exhausted.

 

IMPACT IF DENIED:  Demolition activity will not occur in 2019

 

ALTERNATIVES:  n/a

 

EEO CERTIFICATION NUMBER: Jimax 03104-191231; River City Demolition 00037-190930

 

WHICH OF THE GOALS IDENTIFIED IN THE COUNCIL’S 2017 - 2032 STRATEGIC PLAN DOES THIS RECOMMENDATION ADVANCE?

 

1. Beautiful Peoria                     

2. Safe Peoria

3. Grow Peoria

 

WHICH CRITICAL SUCCESS FACTOR(S) FROM THE COMPREHENSIVE PLAN DOES THIS RECOMMENDATION IMPLEMENT?

 

1. Reduce crime.                     

2. Reinvest in neighborhoods.                     

3. Grow employers and jobs.                     

 

DEPARTMENT: Community Development