Agenda Item #12.3
For Council Meeting of: September 26, 2023
CITY OF SANTA ROSA
CITY COUNCIL
TO: MAYOR AND CITY COUNCIL
FROM: JAMES JENSEN, DEPUTY DIRECTOR, ENGINEERING TRANSPORTATION AND PUBLIC WORKS SUBJECT: APPROPRIATION OF CDBG–DR GRANT FUNDS AND CONTRACT AWARD - COFFEY PARK AND FOUNTAINGROVE NEIGHBORHOOD ROAD DISASTER RECOVERY AGENDA ACTION: RESOLUTION
RECOMMENDATION
It is recommended by the Transportation and Public Works Department that the Council, by resolution: 1) accept a Community Development Block Grant Disaster Recovery grant award of $13,835,903.15 from the California Department of Housing and Urban Development; 2) award Contract No. C02258 Coffey Park and Fountaingrove Neighborhood Road Disaster Recovery (“Project”) to the lowest responsible bidder, Argonaut Constructors, Inc. of Santa Rosa, California, including a 5.5% contract contingency, for a total contract amount of $20,031,245.97; and 3) authorize the Chief Financial Officer to appropriate $13,835,903.15 from the Community Development Block Grant Disaster Recovery grant for expenditures for the Project. The sources of funding for the Project are Community Development Block Grant Disaster Recovery Grant, Capital Improvement Project funds, and PG&E funds.
EXECUTIVE SUMMARY
This resolution will approve acceptance of Community Development Block Grant Disaster Recovery (CDBG-DR) Grant funds from the California Department of Housing and Urban Development (HUD) and authorize the Chief Financial Officer to appropriate expenditure to Fund 1410 “Capital Improvements”/Key 17674 “CDBG Coffey Park Fountaingrove Paving HUD Grant” in the amount of $13,835,903.19. The Resolution also will award Contract No. C02258, Coffey Park And Fountaingrove Neighborhood Road Disaster Recovery, in the amount of $18,986,963 to the lowest responsible bidder, Argonaut Constructors, Inc. of Santa Rosa, California, approve a 5.5% contract contingency, and authorize a total contract amount of $20,031,245.97.
BACKGROUND
After the 2017 Tubbs Fire, the City of Santa Rosa, in coordination with the Federal Emergency Management Agency, began a debris removal operation to remove hazardous burned material from the Coffey Park and Fountaingrove neighborhoods of the city. This operation included thousands of truck trips on residential roads not designed to accommodate such heavy loading. These residential roads experienced significant damage as a direct result of the required debris removal operations which has led to premature pavement failure on residential streets within the City of Santa Rosa.
The City Materials Lab assessed all damaged streets, identified approximately 33 miles of residential streets that require rehabilitation and strengthening, and prepared a preliminary cost estimate. City staff then determined there was insufficient funding for the project. To obtain adequate funding, City staff requested City Council to approve allocation of funding, an application of funding, and the execution of a grant agreement from the CDBG-DR program. The California Department of Housing and Urban Development approved a CDBG-DR grant in the amount of $13,835,903.19 for fire damaged road repairs that would be applicable to the Coffey Park and Fountaingrove Neighborhood Road Disaster Recovery Project.
City staff decided that an in-house design was in the best interest of the City and moved forward with the standard procurement method for construction.
PRIOR CITY COUNCIL REVIEW
On March 23, 2021, the City Council, by Resolution No. RES-2021-052, approved an allocation of funding, an application for funding and the execution of a grant agreement and any amendments thereto from the CDBG-DR program and/or Community Development Block Grant Mitigation Funds (CDBG-MIT) program.
On April 13, 2021, the City Council, by motion, revised Resolution No. RES-2021-052, which authorized certain City staff to enter into agreements and execute other documents with California Housing and Community Development (HCD) for CDBG projects CDBG-DR and CDBG-MIT, developed in response to the 2017 Tubbs Fire, to include the total allocation of CDBG funds.
On July 13, 2021, the City Council reviewed a Study Session presentation discussing the use of one-time monies that identified this project as a candidate to receive PG&E settlement and CDBG funds.
ANALYSIS
1. The project was advertised on June 29, 2023, and bids were received on August 10, 2023. A total of four (4) bids were received, ranging from $18,986,963 to $22,614,512. The low bid was 14.90% over the Engineer’s estimate.
2. The low bidder, Argonaut Constructors, Inc. possesses a valid contractor’s license of the required class, as verified by the Contractors State License Board, and is registered with the State Department of Industrial Relations (DIR).
3. Construction is anticipated to begin approximately October 2023. The length of the contract is 371 working days.
4. The Public Participation Plan is required and has been approved by the Transportation and Public Works Marketing and Outreach Coordinator.
FISCAL IMPACT
Funding for this Project comes from the following: $13,835,903.15 will be appropriated through this action to JL key 17674, while the remaining $6,195,342.81 in expenditure appropriations has already been allocated under JL Key 17607. The costs for this project will have no impact on the General Fund.
ENVIRONMENTAL IMPACT
This action is exempt from the California Environmental Quality Act (CEQA) because it is not a project that has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, pursuant to CEQA Guidelines Section 15378.
BOARD/COMMISSION/COMMITTEE REVIEW AND RECOMMENDATIONS
Not applicable
NOTIFICATION
Not applicable
ATTACHMENTS
Attachment 1 – Location Map
Attachment 2 – Summary of Bids
Resolution
PRESENTER
Felicia Ong, Assistant Engineer
Gregory Mariscal, Supervising Engineer
APPROPRIATION OF CDBG–DR GRANT FUNDS AND CONTRACT AWARD - COFFEY PARK AND FOUNTAINGROVE NEIGHBORHOOD ROAD DISASTER RECOVERY PAGE 2 OF 3