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Placentia City Council
AGENDA REPORT
CITY COUNCIL
CITY ADMINISTRATOR
DEPUTY CITY ADMINISTRATOR/ PUBLIC SERVICES & INFRASTRUCTURE DECEMBER 6, 2022
SUBJECT: CONSTRUCTION CONTRACT FOR THE OLD TOWN PLACENTIA FACADE
IMPROVEMENT PROJECT
FISCAL
IMPACT: EXPENSE: $ 226,421.80 PROJECT CONSTRUCTION COST BUDGETED: $ 50,000.00 COMMUNITY DEVELOPMENT BLOCK
GRANT FUND (302535-6401 JL# 232501)
SUMMARY:
On December 5, 2017, the City Council approved the Old Town Placentia Facade Improvement Program (Program) as an effort to remove blight and provide for the expansion of the City's tax base using Community Development Block Grant (CDBG) funds for eligible facade improvements to local businesses within the Old Town Placentia District (OTPD), which is within the eligible census tracts for CDBG funds. The Program provides financial assistance in the form of a grant to commercial property and/or business owners to make facade improvements to the exterior of their commercial buildings. The City Council Housing, Community and Economic Development Ad -Hoc Committee (Committee) previously worked with Staff to develop a facade improvement program with the overall goal of promoting the historic OTPD as a positive venue for quality business, incentivize property and business improvements and attraction to enhance local economic growth. In addition, the Committee emphasized consolidating funds to facilitate worthwhile improvements on commercial corners, which have a key visual impact to attracting visitors to the OTPD.
The Program to date has funded a total of four (4) facade improvement projects within the OTPD, three of which include new murals painted on buildings that serve as bookends to the Old Town Historic Core. The City received an application for a fifth project to renovate the facade of the commercial building located at 101 W. Santa Fe Avenue. The City solicited competitive bids for this proposed project on November 6, 2022. A total of two (2) bids were received with the low bid submitted by Loengreen, Inc. (Loengreen) in the amount of $205,838. The total construction cost of this project amounts to $226,421.80. This amount includes the low bid submitted by Loengreen and a construction contingency amount of 10%. Staff recommends awarding a construction contract to Loengreen for the fifth awarded project under the Program.
1.m.
Dec 6, 2022
City Council Agenda
December 6, 2022
RECOMMENDATION:
It is recommended that the City Council take the following actions:
1. Approve the engineered plans and specifications prepared by BOA Architecture, Inc., for the Old Town Placentia Facade Improvement Project at 101 W. Santa Fe Avenue; and
2. Approve a Public Works Agreement with Loengreen, Inc. for an amount not to exceed $205,838; and
3. Reject all other bids received and authorize the return of the bid bonds; and
4. Authorize the City Administrator to approve contract change orders up to fifteen percent (10%) of the contract not to exceed amount, or $20,583.80; and
5. Adopt Resolution No. R-2022-83, A Resolution of the City Council of the City of Placentia, California authorizing a budget amendment in Fiscal Year 2022-23 in compliance with City Charter of the City of Placentia §§1206 and 1209 pertaining to appropriations for actual expenditures; and
6. Authorize the City Administrator and/or his designee to execute all necessary documents including the Old Town Placentia Facade Program documents, in a form approved by the City Attorney.
STRATEGIC PLAN STATEMENT:
This item is consistent with the City Council approved 5 -Year Strategic Goal #6 to Improve City Beautification under Objective #6.3, which is to allocate more funding for facade improvement projects within eligible census tracts.
DISCUSSION:
The City Council Housing, Community and Economic Development Ad -Hoc Committee (the "Committee") worked with Staff on developing a new facade improvement program funded with Federal Community Development Block Grant Funds in the Old Town Placentia District (OTPD).
The overall goal of this program is to promote the OTPD as a positive venue for quality business, incentivize property and business improvements and attraction to enhance local economic growth.
On December 5, 2017, the City Council formally approved the Old Town Placentia Facade Improvement Program (the "Program"). The Program provides financial assistance in the form of a grant to commercial property and/or business owners to make facade improvements to the exterior of their commercial buildings located within the OTPD. The Program to date has funded a total of four (4) facade improvement projects within the OTPD, three of which included new murals on buildings which serve as the bookends to the core Historic portion of Old Town. The program has initially focused on corner properties as they are located at busy intersections that will generate the most views by the public and which serve as gateways to the Old Town area.
City Council Agenda
December 6, 2022
The fifth proposed project under the Program will renovate the existing building facade of the commercial property located at 101 W Santa Fe Avenue. The proposed improvements include:
• Replacement of existing storefront doors and windows, frame, and hardware. • Replacement of existing lighting with new LED light fixtures at exterior. • New architectural and decorative foam and cast concrete. • New painting of exterior walls and decorative facade elements On November 18, 2022, the City received two (2) bids from contractors to construct this project.
The following table provides the bid amounts received from each contractor:
Contractor
Loengreen, Inc.
R. Dependable Construction
Bid Amount
$245,732
$250,000
This bid includes two (2) add-on alternate bids for the installation of roll -up glass doors and replacement of the entry door at the commercial property. These alternate bid items totaled $39,894. The add-on bid expenditure will be incurred directly by the property owner, if so desired, and is not part of the Staff recommended construction contract.
After reviewing the bid proposals received, it was determined that Loengreen submitted the lowest responsive bid. Staff reviewed and analyzed their bid proposal, and it was found to be responsive and valid. The total construction cost of this project amounts to $226,421.80. This amount includes the low bid submitted by Loengreen and a construction contingency amount of 10+%. Staff recommends awarding a construction contract to Loengreen for the facade improvement project at 101 W. Santa Fe Avenue. This facade improvement project will assist in achieving the goals of the Program and generate new retail interest and encourage additional interest from other property owners in the area to participate in the Program.
FISCAL IMPACT:
The County of Orange (County) approved the City's application for CDBG funding for Fiscal Year (FY) 2022-23 as well as the reprogramming of unutilized CDBG funds for the facade improvement program. The COVID-19 pandemic crisis and related restrictions on businesses hindered Staffs ability to carry out CDBG funded activities such as the facade improvement program during the past two years. As a result, the City received an extension from the County to utilize the CDBG funding allocated for the Program in FY 2021-22. There is a total of $50,000 available in CDBG funding that the City needs to be expended by December 31, 2022 and $141,700 by June 30, 2023.
The total construction cost for this facade improvement project amounts to $226,421.80. The project cost consists of the base bid amount submitted by Loengreen in the amount of $205,838 and a construction contingency in the amount of $20,583.80The FY 2022-23 Operating Budget includes CDBG funds for the Program. Additional CDBG funds awarded to the City are available to fund these facade improvements via Resolution No. R-2022-83 (Attachment 2) for the City
City Council Agenda
December 6, 2022
Council's consideration amending the FY 2022-23 Operating Budget to allocate $191,700 in CDBG funds to this project. As such, there is sufficient funds for the recommended actions.
Prepared by:
Elsa Robinson
Senior Management Analyst
Review
Luis Estevez
Deputy City Administrator
Reviewed and approved:
4f- _
Jennifer LamP man
Director of Finance
__ Reviewed and approved:
City Administrator
Attachments:
1. Public Works Agreement with Loengreen, Inc.
2. Resolution No. 2022-83 - Budget Amendment Resolution