HomeMy WebLinkAboutPR 22350: AMENDMENT TO THE 5TH AND 6TH STREETS RODWAY REHABILITATION CONTRACT WITH GULF COAST A CRH COMPANY City of o rt rth�1� Texas INTEROFFICE MEMORAN D U M Date: January 24, 2022 To: The Honorable Mayor and City Council Through: Ronald Burton. City Manager From: Pam Langford, Development Services Manager RE: P. R. #22350 Introduction The intent of this Agenda Item is to seek the City Council's approval to amend a contract between the City of Port Arthur and Gulf Coast A CRH Company of Beaumont, Texas for the 5th Street and 6th Street roadway pavement project from Atlanta Avenue to Nashville Avenue. Funding is available in Street Maintenance account #307-80-625-8518-00-10-000 in the amount of $384,081.00 and the Community Development Block Grant account #105-13-033-8517-00-40- 000 in the amount of$1,099,764.00. The City of Port Arthur has identified 5th Street from Atlanta Avenue to Nashville Avenue and 6th Street from Atlanta Avenue to Nashville Avenue as needing rehabilitation to accommodate the new home construction projects in the downtown area. Background On July 1, 2021, the Department of Housing and Urban Development implemented new Section 3 requirements. Port Arthur was not made aware of the new requirements until after the contract was signed with Gulf Coast on July 12,2021. The contract amendment will replace the former Section 3 regulations found at 24 CFR 135 with the new requirements at 24 CFR Part 75. What is Section 3: The Department of Housing and Urban Development (HUD) requires all public construction projects that receive $200,000 or more of Community Development Block Grant funds to follow 24 CFR Part 75 Economic Opportunities for Low and Very Low-Income Persons (Section 3 regulations). "The purpose of Section 3 is to ensure that economic opportunities,most importantly employment, generated by certain HUD financial assistance shall be directed to low- and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent." What are the requirements for the new Section 3 rule? Port Arthur is required to submit the total labor hours worked on all Sections 3 projects as well as the labor hours for the employees on the project that live in Port Arthur and labor hours for all project employees that meet the low to very-low-income definition. The contract amendment will not make any changes to the contract amount or completion date. Budget Impact: Funding is available in Street Maintenance account# 307-80-625-8518-00-10-000 in the amount of$384,081.00 and the Community Development Block Grant account#105-13-033-8517-00-40- 000 in the amount of$1,099,764.00. Recommendation: It is recommended that City Council approve the contract amendment between the City of Port Arthur and Gulf Coast. P. R. No. 22350 January 24, 2022 - MEE Page 1 RESOLUTION NO. A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE AN AMENDMENT TO THE 5TH AND 6TH STREETS ROADWAY REHABILITATION CONTRACT WITH GULF COAST A CRH COMPANY OF BEAUMONT, TEXAS, AS IT PERTAINS TO THE UPDATING AND IMPLEMENTATION OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) NEW SECTION 3 REGULATIONS PURSUANT TO TITLE 24 PART 75 OF THE CODE OF FEDERAL REGULATIONS (24 CFR PART 75) WHEREAS, per Resolution No. 21-223, the City Council approved a contract with Gulf Coast a CRH Company of Beaumont, Texas, for the 5th and 6th Streets Pavement Rehabilitation Project from Atlanta Avenue to Nashville Avenue, with funding in the amount of$384.081.00 from the Street Maintenance Account and $1,099,764.00 from the Community Development Block Grant(CDBG) funds, for a total combined amount of$1,483,845.00; and, WHEREAS,on July 1,2021,the Department of Housing and Urban Development(HUD) implemented new Section 3 requirements under Title 24 of the Code of Federal Regulations Part 75 (24 CFR Part 75), which the City was not made aware until after the contract was signed with Gulf Coast on July 12, 2021; and, WHEREAS, HUD requires all public construction projects that receive funding of $200,000.00 or more from CDBG funds to follow the new requirements under 24 CFR Part 75 - Economic Opportunities for Low and Very Low-Income Persons (Section 3 regulations). WHEREAS, 24 CFR § 75.1 further provides that, "The purpose of Section 3 is to ensure that economic opportunities, most importantly employment, generated by certain HUD financial assistance shall be directed to low-and very low-income persons, particularly those who are recipients of government assistance for housing or residents of the community in which the Federal assistance is spent."; and, P. R. No. 22350 January 24, 2022 - MEE Page 2 WHEREAS, it is now deemed necessary to amend Section F — General Conditions, Part 90. of the contract document with Gulf Coast to replace the former Section 3 guidelines under 24 CFR 135 with the new requirements pursuant to 24 CFR Part 75 (see Exhibit"A"); and, WHEREAS, the contract amendment will not affect the contract amount or the contract completion date, but will mandate new reporting requirements; and WHERAS, the City will be required to report to HUD the total labor hours worked on Section 3 projects, the hours worked by employees that meet the low and moderate-low income requirements, as well as the total labor hours for employees that are residents of Port Arthur. NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: THAT the facts and opinions in the preamble are true and correct. THAT the City Council hereby authorizes the City Manager to amend Section F—General Conditions, Part 90 of the contract document with Gulf Coast as delineated in Exhibit"A". THAT Gulf Coast a CRH Company shall signify the approval of the contract amendment by signing the amendment attached hereto as Exhibit"B". THAT a copy of the caption of this Resolution be spread upon the minutes of the City Council. READ,ADOPTED AND APPROVED this day of February,A. D., 2022 at a Regular Meeting of the City Council of the City of Port Arthur, Texas by the following vote: AYES: MAYOR COUNCILMEMBERS: P. R. No. 22350 January 24, 2022 - MEE Page 3 NOES: Thurman Bill Bartie, Mayor ATTEST: Sherri Bellard, City Secretary APPROVED FOR FORM: UAZZI ktit_kiac/ a Tizeno, ity Attorney APPROVED FOR ADMINISTRATION: Ron Burton, City Manager APPROVED FOR AVAILABILITY OF FUNDS: Rcu \ , UotA4 KandyDaniel, AtFinance Director ting S:\grants2\48th Year-FY 2022\Resolutions\5th and 6th street.docx P. R. No. 22350 January 24, 2022 - MEE Page 4 Exhibit "A" PROPOSED CONTRACT AMENDMENT 90. SECTION 3 COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS OPPORTUNITIES WILL BE AMENDED AS FOLLOWS: 90. SECTION 3 COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS OPPORTUNITIES During the performance of this Contract, the CONTRACTOR agrees as follows: a. The CONTRACTOR agrees to comply with the new requirements under of Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.1701(u)), as amended, the HUD regulations issued pursuant thereto at 24 CFR Part 135 75 and any applicable rules and orders of HUD issued thereunder. b. The new "Section 3 clause" set forth in 24 CFR 75 135.20(b) shall form part of this Contract as set forth in paragraph 1 of the General Conditions, "Contract and Contract Documents". c. CONTRACTOR'S shall incorporate the new Section 3 clause provisions as specified in Title 24 Part 75 of the Code of Federal Regulations (24 CFR Part 75) shown below and the foregoing requirements in all Subcontracts. F' 3 clause -, set forth in 2i1 CFR 1 3C 20(h\. (1) rmed under this Contract Housing and Urban Development and is subject to the requirements of Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u. Section 3 requires that to the greatest extent feasible, opportunities for training and employment be in connection with the project be awarded to business concerns which arc located in, or owned in substantial part by persons residing in, the (2) (The parties to this Contract will comply with the provisions of said o by the Secretary of Housing and Urban Development set forth in 21 CFR 135 and all to the execution of this Contract. The parties to this Contract certify and prevent them from complying with these requirements. (3) The CONTRACTOR will send to each labor organization or representative Contract or understanding, If any, a notice advising the said labor organization or workers representative of his commitments under this Section 3 clause and shall post copies of the notice in conspicuous places available to employees and applicants for employment or training. (4) The CONTRACTOR will include this Section 3 clause in every Subcontract applicant for, or recipient of federal financial assistance, take Subcontractor is in violation of regulations issued by the Secretary of Housing and Urban Development, 24 CFR 135. The CONTRACTOR will not Subcontract with any Subcontractor where it has notice or violation of regulations under 24 CFR 135 and will not let any Subcontract unless the Subcontractor has first provided it with a preliminary statement of ability cgulations. {5) Section 3, the regulations set forth in thereunder prior to the execution of the Contract shall be a condition of the federal financial assistance provided to the project, binding upon the applicant or recipient for such assistance, its successors and assigns. recipient, or its CONTRACTOR'S and Subcontractors, its successors and assigns to those sanctions specified by the grant or loan agreement or Contract through which federal assistance is provided and to such sanctions as arc specified by 24 CFR P. R.No. 22350 January 24,2022 -MEE Page 5 Exhibit "B" CONTRACT AMENDMENT 90. SECTION 3 COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS OPPORTUNITIES WILL READ AS FOLLOWS: 90. SECTION 3 COMPLIANCE IN THE PROVISION OF TRAINING, EMPLOYMENT AND BUSINESS OPPORTUNITIES • During the performance of this Contract, the CONTRACTOR agrees as follows: a. The CONTRACTOR agrees to comply with the new requirements under Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.1701(u)), as amended, the HUD regulations issued pursuant thereto at 24 CFR Part 75 and any applicable rules and orders of HUD issued thereunder. b. The new "Section 3 clause" set forth in 24 CFR 75 shall form part of this Contract as set forth in paragraph 1 of the General Conditions, "Contract and Contract Documents". c. CONTRACTOR'S shall incorporate the new Section 3 provisions as specified in Title 24 Part 75 of the Code of Federal Regulations (24 CFR Part 75) and the foregoing requirements in all Subcontracts. AGREED TO: Signed on the day of 2022. ATTEST CITY OF PORT ARTHUR By: CITY SECRETARY Ronald Burton, City Manager WITNESS: GULF COAST A CRH COMPANY BY Print Name: PRINT NAME: TITLE: