AGENDA CAPTION:
Title
Consider approval of Resolution 2021-63R, awarding an Indefinite Delivery Indefinite Quantity contract to Haulbrooke, Inc. for Demolition Services to be funded through the Community Development Block Grant program in a not-to-exceed amount of $125,000 and authorizing two additional annual renewals; authorizing the City Manager or his designee to execute the contract on behalf of the city; and declaring an effective date.
Body
Meeting date: April 20, 2021
Department: Planning and Development, Shannon Mattingly, Director (by Lynda Williams, Purchasing Manager)
Amount & Source of Funding
Funds Required: $125,000.00
Account Number: 13282126.56800
Funds Available: $367,005.41
Account Name: CDBG Program Year 19
Fiscal Note:
Prior Council Action: August 4, 2020, City Council approved Resolution 2020-162R amending the Program Year 2019 Community Development Block Grant - Entitlement Action Plan by reallocating $125,000 to a new substandard home demolition program.
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Background Information:
PROGRAM DESCRIPTION: The existence of substandard and dangerous homes in various locations throughout San Marcos continues to be a negative influence on the safety and property values of nearby homeowners. Code Compliance staff have identified the need for financial assistance for the owners of a number of the homes so the structures can be demolished to eliminate blight from the neighborhood and enable new construction on the lots. The use of the $125,000 Community Development Block Grant (CDBG) funding will enable the City to demolish no less than ten substandard or dangerous homes. Liens will be placed on the properties so that the funding can be recovered if the properties are sold.
The main goals of this program are to remove an unsafe structure and to remove blight from the neighborhood. Boarded up structures can be considered attractive nuisances that can attract kids to a place where they can be injured or start fires that impact the neighborhood. By removing blight, it is hoped that property values that have been depressed by the blight next to them will come back up to ordinary un-blighted values, a benefit to the property owners.
These properties will still be privately owned; the City will be stepping in to demolish structures that are beyond repair in cases where the property owners do not have the resources to pay the $10,000-12,000 to have the home demolished. Property owners will be income-qualified as a means of doing what is possible to determine that they actually do not have the resources to take these structures down.
SALVAGE: In order to prevent waste of re-usable materials, the following wording was included as a requirement of the Scope of Work in the Request for Proposal, and is therefore part of the contract. The Scope of Work is attached for reference. The contractor is required to “Utilize Best Management Practices (BMP) in integrated waste management to reduce amount of waste requiring landfilling and provide opportunities for diversion of salvageable demolition materials.” The bidding process provides the Contractor financial incentive to re-use materials by salvaging what can be sold and re-used.
Upon City Council’s request, City staff contacted Robert Watts, Director of Regional Operations for Austin Habitat for Humanity, and learned that Habitat does not provide salvage services; they only accept donations of salvaged goods. Therefore, the most effective and economically sound method for encouraging salvage is as was done through the bid process, by requiring the contractor to utilize best management practices for diversion of waste.
Because the properties will be privately owned, staff will need to obtain permission from the property owners to recycle or salvage materials, as part of obtaining permission to demolish the structure. This request will be made part of the program.
It is also worth noting that some of the homes that are primary candidates for this program are total losses due to fire, and that the contractor is aware that not all homes will produce salvageable materials.
RE-USE OF THE PROPERTY: At the City Council meeting April 6, 2021, staff was directed to review and recommend the best way to prevent re-use of the property for anything other than uses compatible with single family after the existing homes are demolished. Upon consideration, staff recommends requiring that the properties be zoned SF6 or SF 4.5 before demolition can take place. In cases where the existing zoning is anything other than SF6 or SF4.5, with the consent of the homeowner, in order to prevent expenditure by the homeowner, City staff can bring forward any necessary re-zonings, prior to demolition of the home. Ensuring SF zoning is in place prevents future construction of incompatible uses without City Council review of a re-zoning request.
BIDS RECEIVED: Solicitation 221-100 was issued on February 01, 2021 for demolition services of identified structures and five (5) bids were received. This is an Indefinite Delivery, Indefinite Quantity contract that bases pricing off of square footage of various services for a total contract amount of $125,000 which is the total amount of the CDBG funding.
Council Committee, Board/Commission Action:
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Recommendation:
Staff recommends award of contract 221-100 to the lowest responsive bidder, Haulbrooke, Inc., Schertz, Texas. The total period of the contract, including all extensions may not exceed a maximum combined period of three (3) years. Total amount of the contract is $125,000. Staff recommends stipulating that the CDBG funded program must contain the requirement that candidate properties be zoned or re-zoned to SF6 or SF4.5 before demolition can take place.