HomeMy WebLinkAboutPR 22350: AMENDMENT TO THE 5TH AND 6TH STREETS RODWAY REHABILITATION CONTRACT WITH GULF COAST A CRH COMPANY City of
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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: