Agdapkt 2010-07-26 - Laserfiche WebLink

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July 26, 2010 SUBJECT Appropriation and Transfer of Funds from Community Development Block Grant Multi- Family Rehabilitation Fund to Phase 1 - 1306 Main Street Apartments Rehabilitation Project Fund and Construction Contract Increase for the 1306 Main Street Apartments Rehabilitation Project RECOMMENDA TION 1. Approve, by. ..Resolution the.. appr.opriati.on.. transf.er...of....up....to.....$..1.20,571.00 from Community Development Block Grant (CDBG) multi-family rehabilitation funds to Phase I of the 1306 Main Street Apartments Rehabilitation Project. 2. Authorize, by motion, the City Manager to increase the amount of the original City Manager authorized contract with M.R. Meek Construction DBA Antique Termite up to $120,571.00, to complete Phase I of the 1306 Main Street Apartments Rehabilitation Project. BACKGROUND 1306 Main Street was acquired by the City in July 2009 for the purpose of providing affordable housing to meet the Council adopted Consolidated Plan goals for 2005-2010 to meet the needs of low income and special needs populations through the Housing First Program. The program was developed by the Housing Outreach Team (HOT) to identify chronically homeless persons, find them housing, and connects them to services that will help them sustain their permanent housing. Redwood City's HOT is comprised of local law enforcement, County Human Services providers, shelter providers and case management personnel. The property contains 23 units with a one bedroom unit and 22 studio units and at the time of acquisition the property required substantial rehabilitation. Approximately five units will be used in the future to house formerly chronic homeless persons who will receive ongoing case management and supportive services according to their needs under the Housing First Program. An "informal bid" process was used for Phase I of property rehabilitation to facilitate exigent health and safety repairs to seven vacant units and for the purpose of relocating existing tenants into those units after rehabilitation. Contractor bidding for Phase f of property rehabilitation was conducted in April 2010 and eligible bids were received from two qualified contractors. Bids were based on Davis Bacon prevailing wages per the United States Department of Housing and Urban Development (HUD) and the lowest responsible bidder was awarded the initial City Manager authorized contract for $90,874.00. Two subsequent change orders that included dry rot repairs, plumbing repairs, bath vanity replacement. demolition and removal of a deteriorated exterior shed that was being accessed by unauthorized persons, and large tenant debris removal increased the value of the contract by $8,165.00 to $99,039.00. Due to the extent of the repair and rehabilitation required, additional change order #3 that includes replacement of all doors, heaters and toilets, additional electrical repairs, and additional large debris removal is now necessary to complete the rehabilitation of