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CITY COUNCIL AGENDA COMMUNICATION |
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| | | | | | | | | AGENDA DATE: | April 24, 2018 |
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| | | | | | | | | SUBJECT: | Authorize the City Manager to Negotiate and Execute Agreements for the Contractor Services for the Community Development Block Grant Housing Rehabilitation Program in an Amount Not to Exceed $291,445, divided amongst the following vendors: JMR Construction and Yoon's Trim and Construction. |
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| | | | | | | | | STAFF RESOURCE: | Marc Kurbansade, Director of Community Development
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| | | | | | | | | PREVIOUS COUNCIL ACTION: | On June 23, 2015 Council approved Resolution 3314-7-15(R) adopting the 2015-2019 Consolidated Plan. On July 25, 2017 Council Approved Resolution 3502-7-17(R) adopting the 2017-2018 Annual Action Plan, which allocated $291,455 to the Home Rehabilitation Program. |
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| | | | | | | | | ACTION PROPOSED: | Authorize the City Manager to Negotiate and Execute Agreements for the Contractor Services for the Community Development Block Grant Housing Rehabilitation Program in an amount not to exceed $291,445, divided amongst the following vendors: JMR Construction and Yoon's Trim and Construction. |
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| | | | | | | | BACKGROUND
For the past 11 years the City of Allen has received Community Development Block Grant (CDBG) funds from the U.S. Department of Housing and Urban Development (HUD). As part of HUD's required process, the City Council reviews and approves an annual Action Plan outlining how the City will allocate funds, then subsequently incorporates that amount in the City's annual budget. The City Council allocated $291,455 to the CDBG Home Rehabilitation Program for Fiscal Year 2018.
Most of the home rehabilitation projects have an average cost of $25,000, which triggers a formal bidding process. Staff is required to solicit at least three vendors including two from the State's Historically Underutilized Business list (HUBs). Staff routinely solicits four vendors per project; however, to date only two vendors, JMR Construction and Yoon's Trim and Construction, consistently respond. With only two vendors routinely bidding projects, it is likely one or both will cumulatively exceed $100,000 within the fiscal year.
The City's Purchasing Policy states that:
"City Council has approval authority for all Purchases and/or Contracts with either a one-time or anticipated annual expenditure of $100,000 and above."
The $100,000 amount equates to approximately four rehabilitation projects. Based on the overall grant amount, Staff anticipates completing at least nine projects by the end of the fiscal year. Generally speaking, contracts are equally distributed amongst the qualified vendors that submit bids. If bids continue as they have, JMR Construction and Yoon's Trim and Construction will each cumulatively exceed $100,000 by the end of the fiscal year.
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| | | | | | | | BUDGETARY IMPACT
These funds have already been approved and allocated to the CDBG program through the budget process.
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| | | | | | | | STAFF RECOMMENDATION
Staff recommends the City Council authorize the City Manager to negotiate and execute agreements for the contractor services for the Community Development Block Grant Housing Rehabilitation Program in an amount not to exceed $291,445, divided amongst the following vendors: JMR Construction and Yoon's Trim and Construction.
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| | | | | | | | MOTION
I make a motion to authorize the City Manager to negotiate and execute agreements for the contractor services for the Community Development Block Grant Housing Rehabilitation Program in an amount not to exceed $291,445, divided amongst the following vendors: JMR Construction and Yoon's Trim and Construction.
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