Report Prepared by: Kimberly Nutt, Housing Program Supervisor, Housing Division and
Laura Ivancich, Management Analyst, Engineering Department
Title
SUBJECT: Approval of an Interdepartmental Memorandum of Understanding (IMOU) Between the City of Merced Housing Division and the City of Merced Engineering Department in an Amount not to Exceed $107,432; and Approval to Award a Bid to the Lowest Responsive Bidder, Taylor Backhoe Service, Inc. dba TBS Contractors, for Project CP240046 - CDBG Mini Park ADA Improvements, in the Amount of $91,119.38
REPORT IN BRIEF
Considers approving an Interdepartmental Memorandum of Understanding (IMOU) between the Housing Division and the Engineering Department for administration of Community Development Block Grant (CDBG) public facility improvement project funding; and considers approving to award a Construction Contract to the Lowest Responsive Bidder, Taylor Backhoe Service, Inc. dba TBS Contractors, in the amount of $91,119.38.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving the Interdepartmental Memorandum of Understanding (IMOU) between the Housing Division and the Engineering Department for administration of 2022 Community Development Block Grant (CDBG) funds in the amount not to exceed $107,432, for use towards Engineering Department project costs ($102,432) and Housing Division activity delivery costs ($5,000), as approved and amended in the 2022 Annual Action Plan; and,
B. Awarding the CDBG Mini Park ADA Improvements, Project No. CP240046, to the Lowest Responsive Bidder, Taylor Backhoe Service, Inc. dba TBS Contractors, in the amount of $91,119.38; and,
C. Authorizing the City Manager or Deputy City Manager to execute the necessary documents, and to approve change orders not to exceed 10% of the total contract with Taylor Backhoe Service, Inc. dba TBS Contractors; and,
D. Authorizing the Finance Officer to make necessary budget adjustments.
Body
ALTERNATIVES
1. Approve, as recommended by staff; or,
2. Approve, subject to conditions other than recommended by staff (identify specific findings and/or conditions amended to be addressed in the motion); or,
3. Deny; or,
4. Refer to staff for reconsideration of specific items (specific items to be addressed in the motion); or,
5. Continue to a future meeting (date and time to be specified in the motion).
AUTHORITY
Title 2 of Code of Federal Regulations Part 200 [2 CFR 200.318(e)] regarding use of Inter-Entity Agreements; Charter of the City of Merced, Article XI, Section 1109 - Contracts on Public Works, and Merced Municipal Code Chapter 3.04, Article IV - Public Works Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2023-24 Adopted Budget.
DISCUSSION
Staff is requesting Council consideration of approval of an interdepartmental memorandum of understanding for allocation of CDBG funding to a Public Facilities Improvement project, and award to the lowest responsive bidder of that same project.
Project Description
This project involves the improvement, plan, design, and installation of Americans with Disabilities Act (ADA) ramps, walkways, and related improvements at five “Mini Parks,” aimed at improving disabled accessibility and general access to the location of play equipment areas within the parks from existing sidewalks in the rights-of-way. Though the project’s main intent is to increase ADA accessibility, the project is expected to benefit all neighboring residents and families who may use the parks.
The five parks are:
• Frederick Douglass Park; V and W. 8th Streets
• Benjamin Tanager Park; T and W. 3rd Streets
• Love Veasley Family Park; Canal and W 6th Streets
• Little Angels Park; H and W. 11th Streets
• 12th and G Street Park; E. 12th Street (between E and G Streets)
All parks are located in the South Merced area. Construction activities are expected to be completed by April 2024.
City Staff prepared plans and specifications for the five “Mini Parks” project. The project was advertised, and bids were opened on November 28, 2023, with the following results:
|
1 |
CLS Cervantes Landscaping Services, Inc. Patterson, CA |
$ 67,725.00 |
|
2 |
TBS Contractors, Merced, CA |
$ 91,119.38 |
|
3. |
FBD Vanguard Construction, Inc. Livermore, CA |
$ 147,550.00 |
Due to an incomplete bid package from CLS Cervantes Landscaping Services Inc., their bid was formally rejected, and Taylor Backhoe Services, Inc. dba TBS Contractors was determined as the lowest responsive bidder for this project.
The engineer’s estimate for construction was $82,000.
The following is the proposed budget for the CDBG Mini Park ADA Improvements:
|
Construction |
$ 91,119.38 |
|
Contingency, Engineering, Testing |
$ 11,312.62 |
|
TOTAL: |
$ 102,432.00 |
The Housing Division will retain the remaining $5,000 for use towards Housing staff hours spent directly working on the project, including completing the National Environmental Protection Act (NEPA) environmental review that was required to be completed and certified prior to the project moving forward through the procurement process.
Project Funding and Interdepartmental Memorandum of Understanding (IMOU)
Funding will be provided from U.S. Department of Housing and Urban Development (HUD) CDBG project funds approved to this project in the 2022 Annual Action Plan (Project #6). The project was initially approved for a total of $88,000, to be split between Engineering Department design and construction costs and Housing Division activity delivery costs (ADC). However, due to an increase in the estimated project costs above the original amount budgeted, a minor amendment was processed by the Housing Division, which moved $19,432 of 2022 CDBG funds from a 2022 public service program that did not move forward (Alliance for Community Transformations) to this project and adjusted the percentage of Housing Division ADC to be charged from 10% to approximately 4.8% to further accommodate the increase.
Through federal procurement guidelines specified in 2 CFR Part 200, HUD strongly encourages that local governments enter into inter-entity agreements where appropriate for procurement, to foster greater economy and efficiency and to promote cost-effective use of shared services across City departments. As such, the Engineering Department and Housing Division will enter into an Interdepartmental Memorandum of Understanding (IMOU) that dictates the scope of work and project budgets of each department/division in accomplishing the project and overall CDBG fund requirements and objectives.
The IMOU also will serve as the mechanism for transfer of CDBG funds from the Housing Division to the Engineering Department, which will then compensate Engineering staff for design time, testing & inspections, as well as provide payment to the awarded contractor as the project progresses and completes.
IMPACT ON CITY RESOURCES
Expenditures do not require any appropriations from the General Fund. CDBG funds were approved with the 2022 Annual Action Plan for use in fiscal year 2022/23. However, as the project was not implemented in FY 2022/23, funds were carried over to the current FY 2023/24 budget and are available to be transferred from Fund 2501.
ATTACHMENTS
1. Interdepartmental Memorandum of Understanding
2. Bid Results
3. Construction Contract
4. Location Map