R2024-256 Resolution Approving Bid with Henson Robinson for HVAC at 1170 Orchard Street

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ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT DATE: July 1, 2024 TO: Mayor Julie Moore Wolfe and City Council Members FROM: Tim Gleason, City Manager Cordaryl"Pat"Patrick, Director of Economic and Community Development SUBJECT: Resolution Approving Bids for the Renovation of 1170 Orchard Street(Wee Folks) RECOMMENDATION: Staff recommend the City Council approve the five bids for rehabilitation of 1170 Orchard St. BACKGROUND: The City received Community Development Block Grant-Covid(CDBG-CV) funds from the U.S.Department of Housing and Urban Development(HUD)and American Rescue Plan Act (ARPA) from the U. S. Department of Treasury during the pandemic. The CDBG-CV funds were allocated to prevent, prepare for, and respond to the coronavirus pandemic. ARPA funds were allocated for this purpose too; but also included funds to help local governments get back on their feet economically in the years that followed. As per HUD requirements, staff presented a plan of action to utilize approximately $1.1 million CDBG-CV funds between four recipient projects: 1) a portion of the new Garfield Park project (agreement adopted);2)a portion of the OKO Community Center urban agriculture and recreation field project; 3) support to Dove's rent and utility assistance programs (rescinded due to barriers to grant compliant distribution); and 4) the acquisition and renovation of the former Wee Folks building into a daycare facility in the urban core. While this general allocation was approved, the specifics of the former Wee Folks project were not approved. The City Council requested a more comprehensive description of the project's details before allowing renovation to move forward. In short,the Council has authorized partial funding for the Wee Folks renovation but has not approved any renovation contracts. The City Council approved a resolution on March 20, 2023, to purchase and renovate the former Wee Folks building. The council also authorized the City Manager to negotiate an agreement with Love, Learning and Laughter Daycare to operate a quality childcare program within the facility. Staff have begun cleaning the building, performing regular maintenance, and obtaining cost estimates to bring the building up to Department of Child and Family Services (DCFS) standards. The Council directed staff to assemble more information about why project's cost components had increased significantly, what specific sustainability assurances were in the operator's business plan, whether renovation was more efficient than a demolition and rebuild, and other documentation.Based on printed guidance from DCFS,the estimated costs for renovating the Wee Folks building have become more expensive. The lowest responsive and responsible bidders are: - Asbestos abatement—Parkland Environmental—bid price is $42,976. - Flooring—Carpet Weaver's—bid price is $45,233.