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Home My Public Portal About12) 8A Consideration of Increasing Allocation for CDBG downtown Parking Lots ADA AGENDA Opo,EM° �E ITEM 8.A. oF� aN�s COMMUNITY DEVELOPMENT DEPARTMENT MEMORANDUM It OIL DATE: May 6, 2014 TO: The Honorable City Council FROM: Donald E. Penman, Interim City Manager Via: Geoffrey Starns, AICP, Planning Manager By: Adam L. Gulick, Associate Planner SUBJECT: PUBLIC HEARING: CONSIDERATION TO INCREASE THE ALLOCATION FOR THE FEDERALLY FUNDED COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROJECT FOR DOWNTOWN PARKING LOTS AND TEMPLE CITY BOULEVARD ACCESSIBILITY IMPROVEMENTS PER THE AMERICAN WITH DISABILITY ACT (ADA) (PROJECT NO. 601595-13 AND NO. 601596-13) RECOMMENDATION: The City Council is requested to: a) Hold a public hearing to consider proposed amendments to the City's CDBG- funded Downtown Parking Lot ADA Improvement Project (Project No. 601595- 13) and Temple City Boulevard ADA Improvement Project (Project No. 601596- 13) per the ADA for FY 2013-14; and b) Appropriate $20,800 of unallocated CDBG funds for the Downtown Parking Lot ADA Improvement Project (Project No. 601595-13), bringing the total of the project to $135,800, and appropriate $19,200 of unallocated CDBG funds for the Temple City Boulevard Accessibility ADA Improvement Project (Project No. 601596-13), bringing the total of the project to $124,200. BACKGROUND: 1. On March 11, 2013, the City was notified that $611,565 of CDBG unallocated funds must be expended by March 30, 2013 due to the Los Angeles County Community Development Commission's (CDC) drawdown requirement. The CDC's policy states that if a city fails to expend funds in excess of 150% of its annual allocation by March 30th of each year, the city is required to participate in an appeal hearing process with the CDC to make a case that the excess CDBG City Council May 6, 2014 Page 2 of 5 funds are needed for an existing program or project, and will be expended within six months. 2. On March 12, 2013, the City, Willdan Engineering (Willdan) and CDC staff met to discuss the status of the City's FY 2013-14 CDBG Programs, FY 2014-15 CDBG Programs and two out of cycle projects (i.e., Downtown Parking Lot ADA Improvement Project and the Temple City Boulevard ADA Improvement Project), which would assist in reducing the City's unallocated CDBG funds. The CDC requested that the City provide additional information relating to the specific work and estimated costs. 3. On May 15, 2013, City staff received notification from the CDC that the two out of cycle projects (i.e., Downtown Parking Lot ADA Improvement Project and the Temple City Boulevard ADA Improvement Project) were initially approved, and the City could proceed with publishing the required 30-day notice to establish the two new out of cycle projects and conduct the required public hearing. 4. On June 18, 2013, the City Council conducted a public hearing and approved the establishment of two new out of cycle projects (Projects) utilizing CDBG funds to bring existing downtown parking lots and a portion of Temple City Boulevard into compliance with ADA accessibility standards (i.e., Downtown Parking Lot ADA Improvement Project: $115,000; and Temple City Boulevard ADA Improvement Project: $105,000). 5. In July 2013, the CDC approved and executed the CDBG funding agreements with the City for the Projects. CDC also granted City's request to combine bid packages for the Projects into one bid package and award the contract to one single contractor. 6. In October 2013, the City's contracted engineer, Transtech Engineers, Inc. (Transtech), finalized the Project plans and bid package based on initial comments received from the CDC. 7. In December 2013, a complete bid package (i.e., project plans, cost and eligibility table, location map, and aerial plans with a description of the scope of work) was submitted to CDC for their review and approval. Because the Project is utilizing CDBG Funds, the Project requires review and approval from the CDC prior to publishing the bid notice. 8. In January 2014, the CDC informed City staff that the bid package for the Project was approved. 9. On January 30 and February 6, 2014, the City published the Project Bid Notice (Bid Notice) in the Temple City Tribune, with a bid deadline of March 4, 2014. Additionally, the City posted the Bid Notice on City's website and Transtech City Council May 6, 2014 Page 3 of 5 requested publishing of the Project Bid Notice through various contractor trade publications. 10. On February 18, 2014, per the CDC requirements, a non-mandatory pre-bid meeting was conducted to answer any questions from prospective bidders and to explain the Federal Labor Standards Provisions, Section 3 Clause, and the prevailing wage requirements of the Davis-Bacon and related Acts. 11. On March 4, 2014, the City Clerk conducted the bid opening for the Project. Three bids were submitted (i.e., Unique Performance Construction, Inc., FS Construction, and EI Camino Construction & Engineering) and the lowest bid received was in the amount of$200,000. 12. On March 21, 2014, City staff consulted with the City's CDBG Program Manager regarding the shortage of funds for the Project as the lowest bid was higher than the engineer's estimate. The Program Manager advised staff to look at the City's policies and procedures to make a decision on whether the budget amendment would be considered a substantial amendment, which requires a public comment period. Staff determined that it may be considered a substantial amendment, since the proposed amendment is almost 25% of the City's annual CDBG allocation. 13. On April 3, 2014, a public notice for the City Council to consider increasing the budget for the Project was published in the Temple City Tribune (Attachment "A"). ANALYSIS: The CDBG Program was established with the primary objective of developing viable communities by creating suitable living environments, maintaining and creating decent housing, and creating and maintaining job opportunities for low- and moderate-income persons. In the past, the City has been limited to its housing rehabilitation loan program and the City's youth scholarship program. Due to the City's need to reduce its CDBG funds balance, two out of cycle ADA improvement projects were created. City issued an RFP for the Project with a bid deadline of March 4, 2014. The lowest bid received for the Project was from FS Construction with a total bid amount of $200,000. The City Engineer informed City staff that a 10% contingency ($20,000) and 20% soft cost ($40,000 for project management, labor compliance, etc.) is also necessary for public works projects, resulting in a new total Project cost of $260,000. Therefore, an additional $40,000 is needed to cover the revised total Project costs. The Downtown Parking Lot ADA Improvement Project would be increased by $20,800, bringing the total to $135,800, and the Temple City Boulevard Accessibility Improvement Project would be increased by $19,200, bringing the total to $124,200. Rather than appropriating general fund money to cover the difference for this project, staff has identified the City's unallocated CDBG funds (Attachment "B") as an available funding City Council May 6, 2014 Page 4 of 5 source that could be used for the additional funding needed for the project. Since additional funds are required, cities and counties are mandated by HUD to provide a 30-day public comment period if there is a substantial amendment to a CDBG funded program. Although there is not a clear definition of a substantial amendment from HUD, they typically include the following changes to a program: ® when there is a change from one eligible activity to another; • a new activity (program) is proposed that was not part of the City's CDBG Programs approved for the fiscal year; or ® an activity that is cancelled that was part of the City's CDBG Programs approved for the fiscal year. It is also common for local jurisdictions to require a substantial amendment if there is a significant increase or decrease to an approved project or program. Since the City does not have CDBG Program policies and procedures that address a significant increase or decrease of CDBG funds, the CDC said it would be left for the City to decide whether the suggested budget amendment is considered a significant amendment. Since the City does not have guidelines that address this budget amendment, and there are no provisions from HUD, staff felt it was necessary to provide the community with an opportunity to comment on the recommended budget amendment since it is nearly 25% of the City's annual allocation. City Council's approval will allow the Project to move forward to address existing ADA deficiencies in City-owned downtown parking lots and a portion of Temple City Boulevard, and at meet one the goals of the CDBG Program. If the recommended budget amendment is not approved, the City would jeopardize losing the CDBG funds since this project is part of the City's plan to drawdown excess CDBG funds. CONCLUSION: The Projects were originally approved by the City Council with a total budget of $220,000. The revised total Project cost is now $260,000 (i.e., $200,000, plus 10% contingency, plus 20% soft costs), therefore additional funds are needed to cover the difference. The City Council is requested to approve the increased allocations for the Project utilizing the City's unallocated CDBG funds. FISCAL IMPACT: The increased allocation for the Projects would utilize a portion of the City's unallocated CDBG balance, which is $82,789. This action will appropriate an additional $40,000 of unallocated CDBG funds for FY 2013-14, leaving an unallocated balance of$42,789. City Council May 6, 2014 Page 5 of 5 ATTACHMENTS: A. Public hearing notice for increasing CDBG funds for FY 2013-14 B. Explanation of Temple City's CDBG Unallocated Balance, as of April 30, 2014 CITY OF TEMPLE CITY PUBLIC HEARING NOTICE COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Notice is hereby given that the City Council of the City of Temple City will consider increasing the allocations for the two American with Disabilities Act (ADA) Accessibility Improvement Projects that were approved on June 18, 2013 with a budget of $220,000. The City Council will consider adding $70,000 of unallocated Community Development Block Grant (CDBG) funds for the two ADA projects. The request is necessary as the construction bids came in higher than the City Engineer's estimate for the projects and a substantial increase to a CDBG program requires approval from the City Council. The City Council will consider the amendments at their meeting of May 6, 2014, at 7:30 p.m. in the City Council Chambers of the City Hall, located at 5938 Kauffman Avenue, Temple City. The City Engineer originally estimated the two ADA projects to have a total project cost of $216,860, $113,760 for the Public Parking Lot Improvements and $103,100 for the Temple City Boulevard Sidewalk Improvements. The lowest bid for the two projects was $200,000, resulting in a new total project cost of $275,000. The project requires a 10% contingency for construction unknowns ($20,000) and 20% for necessary soft costs ($55,000) for the project; soft costs include design, land surveying, labor compliance, inspections, testing, contract administration, etc. Any interested persons wishing to provide input on the proposed amendments to CDBG-funded ADA Accessibility Improvement Project may contact the Community Development Department at City Hall by phone (626) 285-2171. Written comments may also be submitted to: City of Temple City Community Development Department, 9701 Las Tunas Drive, Temple City, CA 91780. Comments will be received through May 6, 2014. Peggy Kuo City Clerk Published: Temple City Tribune Date: April 3, 2014 � Ln E r LO CL al \: w Go CL 9 o wm §( U) _ a Ln - § k - aq o 2 / [ ES =' it co 0.CL 0 w $ \ / -«sm . ��E, Temple • • iFunds Unallocated CDBG Balance, as of April 30, 2014 $351,116 Pending Housing Rehabilitation Loan Program budget amendment approved by City Council on April 1, 2014. $150,000 Pending Asbestos and Lead-Based Paint Testing and Abatement Program budget amendment approved by - $50,000 City Council on April 1, 2014. Pending Youth Scholarship Program budget - $930 amendment. Balance after pending budget amendments $150,186 Amount of Unallocated Funds needed for FY 2014-15 CDBG Programs. $142,307 Balance minus funds need for FY 2014-15 CDBG Programs $7,879 Close out of CDBG Program for ADA Project that was approved for FY 2013-14. $75,000 Actual balance of Unallocated CDBG Funds $82,879 Funds needed for ADA Projects, because of high bids. - $40,000 Unallocated CDBG balance after proposed budget amendment for the City's ADA Projects. $42,879