Placement: Consent Agenda
Action Requested: Motion / Vote
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Award Contracts #20190095, 20190106, 20190107, 20190119, 20190120 & 20190121 to Construct Affordable Housing on six City-Owned Lots to Black Street Enterprises, LLC.
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Submitted By: Robyn Holder, CPPB, Procurement Management Department (PMD).
Strategic Plan Link: The City's Goal for vibrant neighborhoods.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Robyn Holder, CPPB.
2. Parties: City of Port St. Lucie and Black Street Enterprises, LLC.
3. Purpose: To expend the remaining Neighborhood Stabilization Program (NSP) grant funds, as requested by the US Dept. of Housing and Urban Development (HUD) to provide affordable housing.
4. New/Renewal/Modified: New.
5. Duration: 365 calendar days with no option to renew.
6. Benefits to Port St. Lucie: To offer affordable homes to the residents that meet the income requirements.
7. Cost to Port St. Lucie (Annual and Potential): One-time expense of $1,095,000.
Presentation Information: N/A.
Staff Recommendation: Move that the Council award Contract #20190095, 20190106, 20190107, 20190119, 20190120 and 20190121 to Black Street Enterprises, LLC for the construction of 6 homes to provide for affordable housing. The homes will be constructed three at a time.
Alternate Recommendations:
1. Move that the Council amend the recommendation and award Contract #20190095, 20190106, 20190107, 20190119, 20190120 and 20190121.
2. Move that the Council not award Contract #20190095, 20190106, 20190107, 20190119, 20190120 and 20190121 and provide staff with direction.
Background: The Neighborhood Stabilization Program (NSP) was implemented in 2009 in response to the real estate market crash and ensuing recession. Stabilizing areas hardest hit by home foreclosures and home abandonment was the primary objective of the NSP. In the current real estate market, foreclosed homes in the nine targeted census tracts are extremely difficult to obtain with the remaining grant funds. HUD is strongly urging grantees to close out their NSPs by expending the remaining grant funds. Building the six homes on lots provided by the City will enable the expenditure of the remaining grant funds. This will also provide affordable housing units in an active real estate market.
An E-Bid was issued on July 19, 2019 to 919 potential suppliers. There were 13 plan holders with two proposals being received on August 21, 2019.
Issues/Analysis: The projects are funded by the NSP which requires the bid to be awarded to the lowest responsive responsible bidder. Staff has reviewed the proposals and found that Black Street Enterprises, LLC provides the lowest responsive responsible bid. Black Street Enterprises, LLC has completed several projects for the City and is a local contractor.
Financial Information: Funds are appropriated in the NSP3 Fund / NSP Building Projects / Homes (#114-5500-549115-00000) & the NSP Fund / NSP Building Projects / Homes (#116-5500-549115-00000).
Special Consideration: The cost per square foot to build these homes is consistent with current construction rates. Constructing these homes will also add to the City’s tax base.
Location of Project: 732 SW Bond Road, 1126 SW Addie Street, 2619 SW Halissee Street, 1549 SW Janette Avenue, 3881 SW McCrory Street and 1581 SW Byron Street.
Attachments:
1. Location Maps.
2. E-Bid Tabulation Report.
3-8. Contracts.
9-14. Recommended Proposals.
15-20. Bid Documents.
21. Attachment A - NSD Specifications.
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
LEGAL SUFFICIENCY REVIEW:
Approved as to Legal form and sufficiency by James D. Stokes, City Attorney. (Reference Legistar database for authorizing City Attorney representative.)