On March 6, 2018, the City Council approved entering into contracts with GTO1 Construction Corporation; Anthony Lee Brown and Tonie Walker Brown d/b/a Camelot Roofing; G.A. Miller Enterprises, Inc., d/b/a Glenn's A/C & Heating; ES Squared, LLC; HVAC Service Pro, LLC, and Jesus Garcia & Sons, Inc., d/b/a MVA AC and Heating for the Neighborhood Services Department for its Home Repair Programs in an annual amount of $3,773,000.00 for an initial One-Year Term with Two One-Year Renewal Options for a total combined amount of $11,319,000.00. These contracts are for the implementation of the Priority Repair Program, Weatherization Assistance Program, Lead Safe Program, the Healthy Homes for Texas Heroes veterans' home repair program and other related grant-funded home repair programs. Currently, the contracts are in the original contract term. These contracts do not contain a specific annual agreement amount due to anticipated variations in types of home repairs performed and in amounts of grant funding received by the City. The increased funds authorized by this M&C will not be used to fund any services provided by Jesus Garcia & Sons, Inc., d/b/a MVA AC and Heating because the contractor decided to no longer perform work under its contract for these programs; the City will not renew its contract with this vendor.
These contractors were selected through a Request for Proposal (RFP) process. This M&C to increase the contract authority is required under Section 2-9 of the City Code and is necessary in order to include the full balance of all grant allocations awarded to the home repair programs. These increases are not considered a change order pursuant to Section 252.048 of the Texas Local Government Code because the original unit prices included in the contract amounts are not increasing. Also, the total amount of $3,773,000.00 for Year One was an estimated total of grant funds anticipated to be available for implementation of the home repair programs, but was not directly tied to the original individual contractor proposals. Additionally, regulations governing the grant funds for these programs do not require that they be spent within the current contract term and the Department is not limited to an annual amount.
The RFP included an estimate of potential Weatherization funds to be expended was offered based on past performance and current data resources; since that time, a $700,000.00 increase to Weatherization funds has been awarded from the State of Texas. These funds were not a part of the estimate offered in the original M&C P-12170, and need to be included to ensure the continued service of the programs for income-eligible residence of Fort Worth.
The amendment to increase contract authority is required to include additional funds for the following programs:
- Weatherization Assistance Program (WAP), funded through several grants, including Low Income Heating and Energy Assistance Program (LIHEAP) and Texas Association of Community Action Agencies (TACAA). The Year One award from M&C P-12170 included the mid-year balance of WAP funds available rather than the full annual award amount, so the total contract authority is recommended to be increased by $700,000.00 to cover a full year's performance on these activities.
- Fair Housing Accessibility Program, for which $150,000.00 was authorized through Council approval of the 2018-2019 Action Plan for use of HUD grant funds. These services will be provided by the same contractors that are associated with other City home repair programs since the RFP included accessibility improvement services.
- Lead Safe Program, for which matching funds are proposed to be increased by $127,723.00. This figure represents the cost for continued provision of Lead Hazard Reduction services in the interval between completion of the prior Lead grant in December 2017 and full environmental clearance and receipt of HUD's Authorization to Use Grant Funds in the spring of 2018. The CDBG matching funds had received environmental clearance in October of 2017, but because Lead Hazard Reduction Grant funds had not been cleared, HUD's Office of Healthy Homes has ruled that the expenditure of the $127,723.00 during that time period cannot be eligible for grant match. Sufficient unprogrammed CDBG funds became available at the end of the 2017-18 Program Year to cover this and are therefore recommended to be reallocated for this purpose.
The allocation of funding streams associated with M&C P-12170 vary by program year and grant source. Without exact numbers to forecast future award amounts, anticipated funding for the contracts was based on current program status and expenditures, and then split into three equal parts over the life of the contract term, for each of the selected vendors of the various home repair programs the city offers. This variation in awards, costs and expenditures for the various programs and home repair service types creates difficulty in forecasting exact amounts needed for each program and each contractor for future years. Therefore staff requests that Council authorize the transfer and rollover of remaining Purchase Order balances to new Purchase Order allocations based on total funding levels listed above in order to ensure effective continuation of the home repair programs across fiscal and grant funding program years. This will allow staff to utilize purchasing authority remaining from completed years, as well as accommodate for future variations in funding awards from multiple funding sources.
This M&C does not request approval of a contract with a business entity.