2006-06-12 Regular Meeting, Public Hearing and Workshop Meeting of the La Porte City Council (2)

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REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: June 26, 2006 Appropriation Requested By: Wayne J. Sabo Source of Funds: CDBG Department: Planninl! Account Number: Grant Fund 032 Report: X Resolution: _Ordinance: ~ 0 Exhibits: Bid Tab Project #06012 (N. 2nd Street) ~;JM~Co. Amount Budgeted: $95,910 ~~ ------- Amount Requested: Budgeted Item: $132,936.33 YES SUMMARY & RECOMMENDATION Harris County Community & Economic Development Department previously awarded the City a CDBG grant to extend and pave North 2nd Street to the E Street ROW, The original grant proposal was to extend 2nd Street and utilities. The amount awarded was $56,475,00 with $55.910.25 for construction. The scope that came back with the contract was only for paving, The contract also did not allow the use of in-house assets to pave the street. The City notified Harris County that the project was short funds to complete the project. On March 27, 2006, City Council amended the budget to accept an additional Harris County award of $40,000 bringing the total construction funding to $95,910, Since awarding the grant, Harris County has changed project officers twice, Although not stated in the scope, the new County project officer stated thatthe extension of the water line with the paving was allowable, As part of the City's leveraging funds, the City has cleared and grubbed the North 2nd Street ROW, surveyed the project area and the Engineer Division designed and bid the project. Given the additional funding, the project was designed with the water line extension included, There were no bidders on the first publication. Harris County instructed the City to re-bid, On the second bidding period, the City received 2 bids with low bid of$132,936.33 from TEXCOR: . Paving $92,332.0 I . Drainage $ 8,769,99 . Waterline $21,834,33 . Contingencies $ I 0,000.00 Value engineering was considered by substituting the lime stabilized sub-grade with low plasticity select fill as well using calcium sulfate instead of cement is a binder in the flexible base. These prospective changes resulted in a net decrease in the cost of the project by $2,506,81, Accepting the substitutions, however, would increase maintenance costs over the lifespan of the street so the substitutions were rejected. Harris County has indicated that the CDBG fund award can be altered to allocate the City an additional $37,053.33 to cover the shortfall. In an effort to preclude losing the bid, Staff is recommending that the City Council consider a conditional award to TEXCOR. The following actions are recommended: · Instruct the City Manager conditionally award a bid to TEXCOR pending receipt of additional funding from Harris County (this allows TEXCOR's bonding to remain in place). · Instruct the Planning Department to withhold the Notice to Proceed pending the City's receipt and acceptance of the additional $37,053.33 from Harris County, Action Required by Council: I. Consider and take action to conditionally award a bid to TEXCOR for the paving and extension of utilities for North 2nd Street. 2. Direct Staff to withhold a notice to proceed pending the receipt and acceptance of additional CDBG funding from Harris County Approved for City Council Al!enda ~/ (j; /1- {)h Date