|
Item 1.A.2.
|
| City Council Regular | |
| Date: | 03/11/2024 |
| Title: | Bid Award / 1709 Saint Johns Ave. Housing Rehabilitation Project |
| Presented by: | Tam Rodier |
| Department: | Planning & Community Services |
| Presentation: | No |
| Legal Review: | Not Applicable |
| Project Number: | N/A |
RECOMMENDATION
City staff recommends the City Council reject all bids received in response to the Invitation for Bids for 1709 Saint Johns Avenue Housing Rehabilitation Project.
BACKGROUND (Consistency with Adopted Plans and Policies, if applicable)
The City of Billings purchased this HUD-foreclosed property on November 2, 2023, as part of the City's Foreclosure Acquisition / Rehabilitation Program. Under this program, Community Development Block Grant (CDBG) funds are used to acquire and redevelop foreclosed properties that might otherwise become sources of abandonment and blight within our community. This property features a one-story, 1,000 square foot ranch-style, single-family house with a full basement, on a 6,072 square foot lot. Following a series of professional inspections, an Invitation for Bids (IFB) was developed and advertised on January 19 & 26 and February 2, 2024, in the Yellowstone County News and on the City's website. Bids were publicly opened on February 20, 2024. One bid was received from Wyman Construction, LLC for $258,403.31. The bid received was higher than the estimate and project budget. City staff will review and re-design some project items to lower costs and will re-bid the project as soon as possible.
STAKEHOLDERS
Because the rehabilitated home will be sold to an income-qualified First Time Home Buyer applicant, all low-income community members are considered stakeholders in the completion of this housing rehabilitation project.
ALTERNATIVES
City Council may:
- Reject all bids for 1709 Saint Johns Avenue Housing Rehabilitation Project. There is no viable alternative given the project and budget limitations.
FISCAL EFFECTS
Available CDBG funding allocated to the City of Billings from the U.S. Department of Housing & Urban Development (HUD) will be utilized for this project.
Resolution 17-10660 pertaining to the City's Foreclosure Acquisition / Rehabilitation Program stipulates the maximum rehabilitation cost is fifty percent (50%) of the current HUD purchase price limit. For this project, that means $167,950. The Wyman Construction, LLC bid is more than the maximum rehabilitation cost.
Resolution 17-10660 pertaining to the City's Foreclosure Acquisition / Rehabilitation Program stipulates the maximum rehabilitation cost is fifty percent (50%) of the current HUD purchase price limit. For this project, that means $167,950. The Wyman Construction, LLC bid is more than the maximum rehabilitation cost.
SUMMARY
City staff recommends the City Council reject all bids received for 1709 Saint Johns Avenue Housing Rehabilitation Project.