Agenda Item
City Council
Item #: 3.4. 2/14/2023 File #: 23-0055
TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, Interim City Manager
FROM: Christopher Cash, Public Works Director
1. SUBJECT
First Amendment to Fiscal Year 2022-2023 Community Development Block Grant Program Memorandum of Understanding and Second Amendment to the 2022-2023 Annual Action Plan to increase funding for the project.
2. SUMMARY
First Amendment to the Fiscal Year 2022-2023 Community Development Block Grant Program and Second Amendment to the 2022-2023 Annual Action Plan to increase funding to the 2022-2023 Street Rehabilitation Project to cover increased construction costs.
3. RECOMMENDED ACTION
1. Authorize the Amendment to the Memorandum of Understanding (AGR-7407) to increase proposed project CDBG funding by $97,980.66, for a total not-to-exceed amount of $727,510.66, amend the Project Description to reflect the revised project scope, and authorize the City Manager or his designee to execute the amendment on behalf of the City.
2. Authorize the Second Amendment to the 2022-2023 Annual Action Plan to increase the allocation to the 2022-2023 Street Rehabilitation project by $97,980.66 to a total allocation of $727,510.66 and submit the Amendment to the Department of Housing and Urban Development (HUD).
3. Authorize the transfer of $97,980.66 from expenditure account number 310.9645.57130.11070, Community Development Block Grant - Contingency to expenditure account number 310.9645.56582.20500, Community Development Block Grant - Sycamore and Palmyra Neighborhoods Street Rehabilitation.
4. FISCAL IMPACT
The total expenditure for this amendment is $97,980.66 and will be funded in Sycamore and Palmyra Neighborhoods Street Rehabilitation (20500) through Community Development Block Grant (310).
5. STRATEGIC PLAN GOALS
Goal 1: Provide for a safe community
b: Provide and maintain infrastructure necessary to ensure the safety of the public.
Goal 4: Provide outstanding public service
b: Provide facilities and services to meet customer expectations.
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Item #: 3.4. 2/14/2023 File #: 23-0055
6. DISCUSSION AND BACKGROUND
The City of Orange Public Works Department opened construction bid proposals for the Sycamore and Palmyra Neighborhoods Street Rehabilitation project on December 15, 2022. The lowest bid, awarded to Sequel Contractors, Inc. at the January 10, 2023, City Council meeting, was significantly higher than the amount of CDBG funds initially requested. Labor and material costs have been trending significantly higher due to overall inflation and supply chain issues. The Public Works Department received an additional $97,980.66 from the CDBG Contingency Account to fund construction costs, and the Public Works Department will use Measure M2 gas tax funding (263) to cover the remaining amount needed to complete the project per the latest scope.
The proposed increase of $97,980.66 for the 2022-2023 Street Rehabilitation Project will assist the City with covering the higher than anticipated costs of construction, including contingency and construction engineering to complete the project
Citizen Participation Plan
The City’s Citizen Participation Plan provides a guide to ensure citizen and interested party participation in the development of the City’sAnnual Action Plan. The Annual Action Plan outlines the City’s plans for the use of Community Development Block Grant (CDBG) funding received in a specific year. Per the Citizen Participation Plan, an increase of over 20% of the original compensation to an approved project requires a substantial amendment to the Annual Action Plan in which the project was approved. The proposed increase of $97,980.66 to the 2022-2023 Street Rehabilitation Project does not meet the criteria for a substantial amendment to the 2022-2023 Action Plan as it is below 20% (or $125,906) of the original allocation.
7. ATTACHMENTS
· First Amendment to the Memorandum of Understanding with Attachment A · Second Amendment to the 2022-2023 Annual Action Plan
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