Additional Funding Request for Administration Receivership Account in the total Amount of $60,000 for the Current Fiscal Year.
 

Staff recommends that the City Council approve the additional funding in the total amount of $60,000 to Administration Receivership account (Receivership Account No. 100-1501-000-40744), encumber for the same and approve the blanket purchase orders consisting of the following: 1. Daniel Collins $10,000; 2. Testing Engineers (to be determined) $50,000.

Hawthorne Plaza has been abandoned for 25 years.  The previous inspections by the city staff revealed, amongst other problems, water leakage and crumbling concrete walls.  An expert hired by the City expressed serious concerns regarding the structural integrity.  Due to the age of the property, he also recommended that the property should be also checked for lead, asbestos and soil. The court in issuing its permanent injunction, ordered these tests by the owners through a Third Party Neutral, to be done within 60 days. The Third Party Neutral, Norman Haynie, was selected by the owners and thus the court authorized the city to select an expert for its own testing.  Mr. Haynie is attempting to have the owners select a company or individuals to conduct the tests.  The City Attorney and the city’s outside counsel strongly recommend that the city look into professionals that can independently do its own tests as an assurance that the tests are conducted in a fair and impartial manner.  The total estimated cost of the tests should not exceed $60,000, comprised of the following: 

•    Daniel Collins – City’s expert to select and oversee the testing - $10,000
•    Structural Engineer - $20,000
•    Lead and Asbestos Expert - $10,000
•    Soil Expert - $10,000-$20,000
 

N/A

$60,000 from General Fund

72 hours posted notice pursuant to the Ralph M. Brown Act.