Report to Mayor and City Council
Tuesday, March 05, 2019
Consent
SUBJECT:
Title
CONSIDER AUTHORIZATION OF A COMMERICAL IMPROVEMENT PROGRAM AGREEMENT WITH BERTHA CERVANTES PADILLA, SURVIVING TRUSTEE OF THE PADILLA FAMILY REVOCABLE LIVING TRUST, EXECUTED JUNE 15, 2004, IN THE AMOUNT OF $95,000 TOWARD A CONSTRUCTION CONTRACT FOR A CDBG-FUNDED COMMERCIAL IMPROVEMENT PROJECT LOCATED AT 313 WEST CARSON STREET, CAMINO REALTY (CITY COUNCIL)
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I. SUMMARY
A Commercial Façade Improvement Project is proposed for the property located at 313 West Carson Street (APN 7343-009-026), located within the Community Development Block Grant (CDBG) designated Slum and Blight area. The originally structure was constructed in 1914 and added to several decades later. The applicant, Bertha Cervantes Padilla doing business as Camino Realty, has been a long-time business owner in Carson as a Real Estate Professional. The Project will be funded primarily with CDBG funds in the amount of $95,000, along with the required 10% deposit made by the owner at application in the amount of $9,500.00. The balance of the funds will be deposited by the owner in the amount of $8,200.00 (total owner contribution of $17,700). The contract for the work is between the contractor and the Owner, with the CDBG funding through a Commercial Improvement Program Agreement between the City and the Owner.
II. RECOMMENDATION
Recommendation
TAKE the following actions:
1. APPROVE the Commercial Improvement Program Agreement between the City of Carson and Bertha Cervantes Padilla, Surviving Trustee of the Padilla Family Revocable Living Trust executed June 15, 2004, of Camino Realty (“Owner”), providing CDBG funding for a commercial façade improvement project located at 313 West Carson Street in the amount of $95,000.00 and owner participation of private funds in the amount of $17,700 to complete the project.
2. AUTHORIZE the Mayor to execute the Agreement and all related documents in a form acceptable to the City Attorney.
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III. ALTERNATIVES
1. REJECT the bids.
2. TAKE another action the City Council deems appropriate.
IV. BACKGROUND
Over the last several years the applicant and the City have been working together to design a facade improvement project to improve the exterior of the subject building and provide better accessibility and signage for the business.
The commercial facade improvement project will create a new front entrance, ADA ramp, new windows & door, lighting, metal canopy, roof exterior paint, wall sign, and a new monument sign.
The applicant participated in a sealed bidding processes and requested bids from several contractors during the last two months, resulting in two complete bids being submitted. Federal Procurement Standards require a minimum of two bids under 2CFR Part 200.320. Staff has determined that the applicant has followed the protocol to obtain the required bids (Exhibit No.1). The Contract will be awarded to the lowest responsible bid submitted by DHI Construction Inc. in the amount of $112,700.00.
The project has a total of 90 feet of building frontage on three sides that are visible from the street. Based on the Commercial Rehabilitation Program, there is a maximum grant amount available of $95,000. This maximum assistance amount is a ceiling for total project improvements but does not necessarily mean the City is obligated to award the entire amount for this project.
A project that is funded by federal CDBG program funds is required to incorporate the provisions of the Davis Bacon and Related Acts (DBRA). Under the DBRA regulations, any project over $2,000.00 must require contractors to pay their employees prevailing wages required by DBRA. Also, the California Department of Labor designates these types of projects as Public Projects, requiring compliance with state prevailing wage requirements. In the event of a conflict between federal and state wage rates, the higher of the two will prevail. DHI Construction, Inc. included the DBRA wage standards in their bid submittal.
Proper bidding process was used and the selected contractor is the lowest and most responsive bidder. The project will provide the needed enhancements to the subject property and is an appropriate use of CDBG funds. The execution of the Façade Improvement Agreement will initiate this construction project (Exhibit No. 2).
V. FISCAL IMPACT
Funds for this contract ($95,000) are included in the FY2018/19 CDBG program year. Commercial Improvement Program, Project Account No. 15-00-999-000-2401. Owner provided required 10% deposit of $9,500.00 at application. The owner will deposit an additional $8,200.00 at contract signing to complete the project for a total of $17,700.
VI. EXHIBITS
1. Memorandum Dated January 23, 2019, Summary of Project Bidding (pgs. 4-26)
2. Commercial Improvement Program Agreement with exhibits (pgs. 27-82)
Prepared by: Debra Scott, Community Development Department