Placement: Consent Agenda
Action Requested: Motion / Vote
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Authorizing Staff to Select Residential Culvert Assistance Pilot Program (RCAPP) Contractors Based on Quotes and Overall Best Value for the Residents.
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Submitted By: Carmen A. Capezzuto. MPA, Director, Neighborhood Services
Strategic Plan Link: The City’s Mission to utilize fiscal responsibility.
Executive Summary (General Business): Staff’s attempt to use an existing City contract for residential purposes yielded higher than expected pricing from the vendor. Public Works and the Neighborhood Services Department, after consulting with the City Attorney’s Office and the Procurement Management Division, are requesting City Council approval to waive the traditional bidding process for good cause shown and permit the use of multiple contractors in order to execute the Residential Culvert Assistance Pilot Program (RCAPP) in a financially sound and efficient manner. The approval of this request will permit staff to request and retrieve quotes from other vetted contractors, determine the best pricing, and execute individual agreements for the completion of the RCAP (loan and grant program) projects.
Presentation Information: N/A
Staff Recommendation: Move that the Council approve the modification of the contractor assignment for the City's Residential Culvert Assistance Pilot Program (RCAPP) to allow staff to utilize other contractors and waive the provisions of Section 35.08 of the City Code of Ordinances and authorize the purchase of services without competitive bidding, per City Code of Ordinances, Section 35.08(c), for good cause shown. This includes both the City Council-approved loan program and the CDBG grant program.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the modification of the contractor assignment for the City's Residential Culvert Assistance Pilot Program (RCAPP) to allow staff to utilize other contractors and waive the provisions of Section 35.08 of the City Code of Ordinances and authorize the purchase of services without competitive bidding, per City Code of Ordinances, Section 35.08(c), for good cause shown.
2. Move that the Council not approve the recommendation and provide staff with direction.
Background: After the launch of the RCAPP this fiscal year, applications were processed and quotes were retrieved from the established vendor contract. These quotes came in very high with additional costs that were permitted in the contract but not necessarily required for smaller single-family home projects. Staff checked with other contractors and determined the projects could be completed for 1/2 or 1/3 of the contract pricing. Therefore, we are requesting the approval of this item in order to be able to obtain the best pricing for residents that will receive a grant or a loan through this program. Currently, there are 15 approved grant applications and 21 approved loan applications awaiting repairs. Additionally, approximately 65 households are waiting to receive an application in order to determine eligibility.
Issues/Analysis: The established contract pricing includes items that are not required and therefore has caused an increase in the costs for smaller scale individual single-family home pricing. Contract prices are too high and above thresholds put in place for the program which include liens for forgivable grants and tax assessments for loans.
Financial Information: $180,000 of Community Development Block Grant (CDBG) funding and $400,000 of Stormwater Funding has been allocated to this program. The $400,000 will be reimbursed by the citizens by means of a 10-year no interest loan through a special assessment.
Special Consideration: Upon approval, staff will complete the remaining projects to utilize this year’s funding and will begin exploring new procurement options for future funding as authorized by the City Council.
Location of Project: City of PSL.
Business Impact Statement: N/A
Attachments: N/A
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.
Internal Reference Number: 25241-04
Legal Sufficiency Review:
Reviewed by Russell Ward, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.