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TRANSPORTATION AGENCY FOR MONTEREY COUNTY Memorandum | |
| | | | | | | | | To: | Executive Committee | | From: | Michael Zeller, Director of Programming & Project Delivery | | Meeting Date: | September 1, 2021 | | Subject: | Fort Ord Building Demolition - Joint Procurement with MST |
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| | | | | | | | | RECOMMENDED ACTION: | RECEIVE an update on the Fort Ord Building Demolition Joint Procurement Agreement with Monterey-Salinas Transit. |
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| | | | | | | | | SUMMARY: | | The Transportation Agency owns 12.1 acres of property in the former Fort Ord in the vicinity of Highway 1 and 8th Street. Seven buildings built by the Army between 1941 and 1953 are located on the property. Prior to its sunset, the Fort Ord Reuse Authority secured a bond for base-wide building removal. The Agency is coordinating building demolition procurement with Monterey-Salinas Transit to secure cost savings from a bundled procurement. |
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| | | | | | | | | FINANCIAL IMPACT: | | Prior to the sunset of FORA on June 30, 2020, FORA staff estimated that there remained approximately $50-60 million in building removal costs. To address this issue, the Reuse Authority issued bonds to fund the building removal program prior to its dissolution. At closing, the bonds resulted in proceeds of $30.7 million. Under the building removal funding agreement approved by the Board in April 22, 2020, the Transportation Agency received 7.0% of the proceeds after expenses and set-asides (or $1.3 million). The Transportation Agency may use these bond proceeds only for building removal costs and may not use the funds for administrative costs. Monterey-Salinas Transit also participated in this bond issuance, and received $186,214 of the proceeds to demolish a building that they own, which is adjacent to the Transportation Agency-owned properties. |
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| | | | | | | | | DISCUSSION: | The Transportation Agency-owned property within the former Fort Ord is located between 1st Avenue and Highway 1, and 5th and 8th streets in Marina, California. On the property are seven buildings, including a former cold storage building, a former meat cutting building, four warehouses, and a former storehouse building. Six of the buildings are attached and parallel to Highway 1; one larger concrete building is north of 8th Street, next to the bridge crossing Highway 1 (see the map, attached).
In an effort to reduce costs by securing a single demolition contract, the Transportation Agency Board approved a joint procurement agreement with Monterey-Salinas Transit whereby they are the lead agency for the purposes of the procurement to select a contractor, with consultation from Transportation Agency staff, to conduct the demolition of both the Agency and MST's buildings within the available budget. Monterey-Salinas Transit has received bids for the demolition and is preparing to bring approval of the demolition contract to their Board in September. Agency staff will provide an update on the status of the project at the September Executive Committee meeting. |
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