Acknowledge bids received for the 817 N 22nd Street Housing Rehabilitation Project. Staff recommends rejection of all bids.  (Action:  approval or disapproval of staff recommendation.)
 

The City of Billings purchased this U.S. Department of Housing & Urban Development (HUD) foreclosed property in February 2020 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 includes a single family home, roughly 1,090 square feet, with a single attached carport, and a small shed in the back yard on a 7,500 square foot lot with no alley access. Following a series of professional inspections, staff prepared, issued, and advertised an Invitation For Bids for a housing rehabilitation project on the property in May 2020.

The public sealed bid opening was conducted June 23, 2020, with the following results:

Contractor	Total Bid
Van Arsdale Construction	$137,630
Town & Country Electric	Non-responsive bid – no bid bond, no acknowledgment of addendum

The Van Arsdale Construction bid of $137,630 significantly exceeds Community Development staff estimate for this project. Staff recommends that all bids be rejected so staff may consider other options for moving this project forward.

Attached for City Council reference is a copy of the Preliminary Work List with staff cost estimates.

The City receives funding through the Community Development Block Grant (CDBG) and HOME Investment Partnerships programs (HOME) under the United States Department of Housing and Urban Development (HUD). The City of Billings through the Community Development Division appropriates Neighborhood Stabilization Program Income and other federal funding for approved projects to implement the Foreclosure Acquisition / Rehabilitation Program through Budget Allocations and Amendments on a project-by-project basis. CDBG funding for the Foreclosure Acquisition / Rehabilitation Program is managed in a similar manner to the Neighborhood Stabilization Program. CDBG funding is available and earmarked in the Community Development Division budget for the 817 North 22^nd Street Housing Rehabilitation Project.