DATE:
March 18, 2025
TO:
Mayor and Council Members
FROM:
Rachel Molina, City Manager
BY:
Cassandra Sanchez, Director of Public Works/City Engineer Justin Richard, Assistant Project Manager
SUBJECT:
Acceptance of FY 2021-22 CDBG Street Improvements
RECOMMENDED ACTION
It is recommended that the City Council accept the completed FY 2021-22 CDBG Street Improvements project (C.O. No. 7166) and authorize staff to record a “Notice of Completion” and release all withheld retention amounts after 30 calendar days from the date of recordation.
BACKGROUND
The Fiscal Year (FY) 2021-22 CDBG Street Improvements (Construction Order No. 7166) (the “Project”) was identified in the City’s Capital Improvement Program (CIP). On May 16, 2023, the City Council awarded the construction contract to VSS International, INC. in the amount of $2,966,340; and approved an additional 10% contingency in the amount of $296,634, for a total construction budget of $3,262,974.
Community Development Block Grant (CDBG) funding from the U.S. Department of Housing and Urban Development (HUD) was utilized to fund the Project. In recent years, more CDBG funding has been directed to street improvement projects to meet the City Council’s goal of street preservation and improvement. CDBG funds have strict limitations of its use. Streets are selected based on meeting specific criteria in accordance with HUD and CDBG guidelines.
ISSUES/ANALYSIS
All construction work was complete in February 2025 with total expenditures of $ 3,153,211. Upon acceptance of the Project, a Notice of Completion will be recorded, and the 5% retention held by the City will be released after 30 days from the date of recordation. Upon City Council acceptance, the project will be under a one-year warranty.
CITY GOAL SUPPORTED BY THIS ITEM
Future Development - Facilitate balanced growth to ensure cohesive community development and pursue economic development.
Capital Improvement – Continually evaluate capital improvement priorities.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action. Funds for this project were previously allocated to the Capital Improvement Program. The 5% retention in the amount of $157,660.57 will be held until after the required 30 day minimum.
The remaining $109,763 of CDBG funds from the Project will be reallocated to future CDBG projects.
ALTERNATIVES
Provide alternative direction to staff.
ATTACHMENT(S)
Notice of Completion
City of Hesperia STAFF REPORT City of Hesperia STAFF REPORT City of Hesperia
STAFF REPORT
City of Hesperia
STAFF REPORT
Staff Report to the Mayor and Council Members
Acceptance of FY 2021-22 CDBG Street Improvements
March 18, 2025