AGENDA TITLE:
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Adopt a Resolution Authorizing the City Manager to Execute Additional Change Orders for the All About Building, Inc. Construction Agreement in an Amount not to exceed $400,000 (CD)
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MEETING DATE:
March 19, 2025
PREPARED BY:
Jennifer Rhyne, Neighborhood Services Manager
recommendation
RECOMMENDED ACTION:
Adopt a resolution authorizing the City Manager to execute additional change orders for the All About Building, Inc. Construction Agreement in an amount not to exceed $400,000
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BACKGROUND INFORMATION:
On November 4, 2020, the City Council adopted the San Joaquin Community Response to Homelessness - 2020 San Joaquin Strategic Plan (Strategic Plan). The Strategic Plan includes goals and strategies developed from community feedback, which includes increasing access and reducing barriers to homeless crisis response services and ensure households experiencing homelessness have access to affordable housing.
With the Access Center Project moving forward and the temporary Access Center currently open for operation, the need for transitional and supportive housing in Lodi is even more apparent.
In accordance with the American Rescue Plan Act (ARPA) of 2021, Department of Health Care Service (DHCS) developed a Medi-Cal Home and Community-Based Services (HCBS) Spending Plan detailing a series of initiatives to enhance, expand, and strengthen HCBS in California. The Housing and Homelessness Incentive Program (HHIP) is one of the HCBS Transition Initiatives and is intended to support the delivery and coordination of health and housing services for Medi-Cal members statewide. HHIP is intended to bolster housing and homelessness-focused efforts and investments at local levels, with the aim of building or expanding capacity and partnerships to connect Medi-Cal members to needed housing services and achieving progress in reducing and preventing homelessness. As part of these efforts to meet HHIP program priorities and measures, HPSJ is partnering with local partners and organizations which deliver housing or supportive services to Medi-Cal members who are homeless or at risk of homelessness.
When City staff became aware of this potential funding opportunity, they began discussions with HPSJ and submitted a proposal that would include the purchase of an existing hotel at 22 S. Main Street and convert it to 40 +/- units of transitional and supportive housing units. The project would allow for individuals that have jobs or other steady income (SS, SSDI, VA, etc.) to be housed in a transitional setting with continued wraparound services until they are able to progress to other permanent housing opportunities. After the second round of funding became available, HPSJ staff presented the Lodi proposal to their board, and it was approved with a $3,000,000 award to the project on April 26, 2023. City Council accepted and appropriated the funds on June 7, 2023 and authorized the purchase of the property on June 21, 2023. Additionally, Regional Early Action Planning (REAP) funds were accepted and appropriated towards the project.
City Council authorized the City Manager or designee to execute all agreements for the project in a form acceptable by the City Attorney in a collective amount not to exceed available grant resources through various Council actions.
After an extensive bid process, All About Building, Inc. was awarded the contract for the construction of Main Street in the amount of $869,000 with change order authority up to $70,000 as approved per the February 21, 2024 Council Meeting.
The City completed phase one of the project and is now entering phase 2 to complete the last few items of the project including rehabilitation of the third floor, frontage improvements, and courtyard. The City was awarded the Community Project Funding congressional grant in the amount of $500,000 designated specifically to this project. Staff requests to utilize a portion of these grant funds to increase change order authority for an additional $400,000 on the All About Building, Inc. construction agreement to begin phase 2 of the rehabilitation projects. Change order authority is requested at this time as final cost estimates are pending.
Attachment 1: All About Building, Inc. Base Construction Agreement
Attachment 2: Resolution
STRATEGIC VISION:
4C. Housing: Continued progress towards Regional Housing Needs Assessment goals.
FISCAL IMPACT:
Community Project Funding 2024 awarded for Reimagined Housing on Main will be utilized to cover the $400,000 in potential change orders.
FUNDING AVAILABLE:
HPSJ-23001.Contract.CPF24 - $400,000
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John Della Monica
Community Development Director
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Scott R. Carney
City Manager