HomeMy WebLinkAboutContract 54434-A3R2 1
CSC No. 54434-A3R2
AMENDMENT 3 AND RENEWAL 2 TO CITY
SECRETARY CONTRACT NO. 54434
This Amendment and Renewal is entered into by and between the City of Fort Worth
(hereafter"City"),a home rule municipal corporation situated in portions of Tarrant,Denton,
Parker,Johnson,and Wise Counties,Texas,with its principal place of business at 200 Texas
Street, Fort Worth, Texas, and GTO1 Construction Corporation, (hereafter "Contractor"). City
and Contractor may be referred to herein individually as a "Party" and collectives as the
"Parties".
WHEREAS,the City Council authorized the City Manager or his Designee to enter
into a Contract with Contractor for an initial one-year term with four(4) one-year renewal
options to support the City's Rehab Programs(M&C 20-0483);and
WHEREAS, the City of Fort Worth ("City") and GTO1 Construction Corporation
("Contractor") made and entered into City Secretary Contract No. 54434 ("Contract") on
September 9,2020;and
WHEREAS,Article 5 of the Contract provides that the Contract shall be renewable at
the City's option,and upon Contractor's written acceptance for up to four(4)additional one-
year terms(each a"Renewal Term"); and
WHEREAS the Parties amended the Contract with City Secretary Contract Nos.
54434-Al and A2R1 to update pricing information for materials listed on the Bid Price
Worksheet, and to make minor edits to the Bid Price Worksheet discovered during the
Contract Term; and
WHEREAS, the Parties previously renewed the term of the Contract for the first
Renewal Term which expired on September 8,2022;
WHEREAS, the Parties continued operating under the Contract and agreed to
memorialize such agreement as soon as possible;
WHEREAS, on September 27, 2022,the City amended its Priority Repair Program
to increase effectiveness,increase efficiency,and also increased the spending authority of all
contracts for the PRP,including this one;
WHEREAS, it is the mutual desire of City and Contractor to renew the contract for
an additional one-year term from September 9,2022,through September 8,2023;and
WHEREAS, the Parties agree that this Amendment and Renewal will allow the
parties to complete the Program and meet Contract objectives.
NOW,THEREFORE,City and Contractor hereby agree to amend the Contract as
follows:
I.
OFFICIAL RECORD
CITY SECRETARY
Contract Renewal Not CSC54434 2022 FT.WORTH, TX
GTO1 Construction
2
Attachment"C"—Bid Price Worksheet—Revised February 25,2022 attached to
the Contract is hereby replaced with the attached Attachment"C"-Revised 09-2022 for
the Renewal Term beginning September 9,2022. This amendment shall not replace
Attachment C for the original term or first renewal term and the then-current
Attachment"C"shall control for each of those terms.
II.
The Contract,as reflected in its terms,may be renewed by the mutual consent of the
Parties for up to four(4)one-year renewal terms. The Parties,by entering into this Second
Amendment and Second Renewal,agree to renew the Contract for an additional one-year
term,which will begin immediately after the Contract's expiration date regardless of the
date of execution of this document.
III.
This Amendment is effective as of the start of the Renewal Term beginning on September
9,2022.
IV.
All terms and conditions of the Contract not amended herein remain unaffected and
in full force and effect,are binding on the Parties and are hereby ratified by the Parties.
Capitalized terms not defined herein shall have the meanings assigned to them in the
Contract.
V.
This Amendment and Renewal may be executed in several counterparts,each of
which will be deemed an original,but all of which together will constitute one and the same
instrument. A signature received via facsimile or electronically via email shall be as legally
binding for all purposes as an original signature.
[SIGNATURES APPEAR ON FOLLOWING PAGE]
Contract Renewal Not CSC54434 2022
GTO1 Construction
3
ACCEPTED AND AGREED:
City of Fort Worth Contract Compliance Manager:
'� — By signing I acknowledge that I am the person
By: responsible for the monitoring and administration
Name: Fernando Costa of this contract, including ensuring all
Title: Assistant City Manager performance and reporting requirements.
John Cain
Approval Recommended: By:John Cain(Oct 10,202209:43 CDT)
�/ �- Name: John Cain
B y. — Title: Neighborhood Develop Manager
Name: Victor Turner
Title: Director Neighborhood Services
Approved as to Form and Legality:
Attest: By:
Jannette S. Goodall Name: Denis McElroy
By:Jannette S.Goodall(Oct 10,202216:26 CDT) Title: Assistant City Attorney
Name: Jannette S.Goodall oa�4�����
a FORT a
Title: City Secretary OTC°°°°°°°°°�yaa Contract Authorization:
���►o° o��dd M&C: 20-0483
~° °'�d Form 1295: 2022-938267
0,v° °_�
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000000
GTO1 CONSTRUCTION CORPORATION:
GTO1 Construction Corporation
Javier Villagomez
By: Javier Villagomez(Oct 7,2022 11:33 CDT)
Name: Javier Villagomez
Title: President
OFFICIAL RECORD
Contract Renewal Not CSC54434 2022 CITY SECRETARY
GT01 Construction
FT. WORTH, TX
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10/11/22,9:24AM M&C Review
Official site of the City of Fort Worth,Texas
CITY COUNCIL AGENDA Foy Wow
Create New From This M&C
DATE: 9/27/2022 REFERENCE**M&C 22- LOG NAME: 19PRIORITY REPAIR PROGRAM
NO.: 0760 POLICY AMENDMENTS
CODE: G TYPE: CONSENT PUBLIC NO
HEARING:
SUBJECT: (ALL) Authorize Changes to the City's Priority Repair Program to Increase the Per House
Expenditure Limit to $25,000.00; Authorize the Use of Forgivable Loans Secured by Liens
for Priority Repair Program Home Repairs that Exceed $20,000.00 in a Two-Year Period,
and Make Other Changes Necessary to Increase Effectiveness and Efficiency; Authorize
an Increase in the City's Home Repair Program Contract Authority by $900,000.00 for a
Total Five Year (Fiscal Years 2019-2024) Contract Authority of$33,931,974.94
RECOMMENDATION:
It is recommended that the City Council:
1. Authorize changes to the City's Priority Repair Program and adopt the attached Policies and
Procedures to increase the per house expenditure limit from $5,000.00 to $25,000.00 and to
make other necessary changes to increase effectiveness and efficiency;
2. Authorize the use of forgivable loans secured by liens for Priority Repair Program home
repairs that exceed $20,000.00 in a two-year period to ensure compliance with Community
Development Block Grant regulations and to maintain a minimum period of affordability; and
3. Authorize an increase in the City's Home Repair Program contract authority by $900,000.00
annually for a total annual amount of $6,023,333.34 for the next two years resulting in a
total five year (Fiscal Years 2019-2024) contract authority of $33,931,974.94 to facilitate the
increase from $5,000.00 to $25,000.00 for allowable expenditures per house for low income
homeowners, as amended through this Mayor and Council Communication.
DISCUSSION:
The City of Fort Worth's Priority Repair Program (PRP) was established in 2010 to address urgent
health and safety concerns and priority home repair needs for low-income homeowners who are
unable to make needed repairs. Funding for the PRP is provided by the U.S. Department of Housing
and Urban Development (HUD) through its Community Development Block Grant (CDBG) program.
The PRP is managed by the City's Neighborhood Services Department, Home Construction and
Improvement Division who operates the program through a set of adopted policies and procedures
that guide program eligibility and allowable repairs. The program has been extremely successful,
providing needed repairs to over 2,750 homes in the City over the last 10 years.
The PRP policies and procedures were last comprehensively amended in 2019. Those changes
focused on prioritizing inoperable systems and health and safety concerns. Temporary amendments
were made in March, 2021 to implement the Waterline Assistance through Emergency Repairs
(WATER) Program on Mayor and Council Communication (M&C) 21-0167.
The City has studied affordable housing needs and has determined that more significant investment is
needed in the single-family homes of low-income homeowners, which are deteriorating. At the same
time, the cost of materials and labor has dramatically increased due to inflation and pandemic related
shortages. The PRP program is no longer able to properly address all health and safety home repairs
within the existing limit of$5,000.00 per home per year. The $5,000.00 per house limit was put in
place to avoid having to complete lead risk assessment and interim control activities required by HUD
guidelines for projects over$5,000.00. This limitation has resulted in half-roof repairs, one major
system repair per year when several are needed, and other limitations causing applicants to reapply
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for several years in a row and receiving small incremental repairs each year. See attached A
(Rehabilitations: Required Activities to Address Lead-Based Paint) for more information on HUD
guidelines.
Based upon (i) a review of the home repair program in other cities, (ii) staff's review of existing City
resources and programs, and (iii) the existing need in the City, staff proposes amendments to the PRP
Policy and Procedures, as follows:
Increase the allowable expenditures to a maximum of $25,000.00 per house (within a two-year
period)
Require applicants receiving repairs exceeding $20,000.00 to apply for a zero-interest loan,
forgivable after five years, secured with a subordinate lien, and including necessary procedures
and policies related to the lien requirement to satisfy federal requirements
Allow applicants receiving less than $20,000.00 to apply up to once per year, but in no event will
any applicant receive more than $25,000.00 worth of repairs in any two-year period
Allow repairs to multiple home systems at one time and broaden definition of allowable repairs to
include those to and under slab foundations, to and under pier and beam foundations, and to
unsafe flooring throughout the home (not just bathroom floors)
Increase the maximum house value eligible to receive repairs from $200,000.00 to a continually
updated value to be calculated as 80\% of the median home price in Fort Worth, as reported by
the Greater Fort Worth Area Realtors monthly published housing data to ensure PRP keeps up with
current market conditions
Add regulations that allow a PRP program staff to disqualify applicants who exhibit threatening or
abusive behavior to contractors and staff or refuse to execute the necessary documents or consent
to liens, if required
Authorize the Neighborhood Services Department Director to make eligibility determinations in
unique construction or repair situations not addressed by written policy provided that such
determinations comply with all applicable state and federal laws and regulations
Add a limited appeal process to allow the Neighborhood Services Department Director to review a
complaint or appeal by an applicant
Add the ability for the Neighborhood Services Director to grant a waiver for liens in case of
unexpected cost overruns or federal/state/local disaster declarations
Make minor amendments that clarify wording or improve processes
To implement the proposed policy changes, $900,000.00 in additional funding for PRP was added to
the FY2022 CDBG budget, approved by City Council on August 9, 2022 through the HUD Annual
Action Plan (M&C 22-0569) for a total of$2,000,000.00 anually for PRP. The funding changes will
allow the program to serve more Fort Worth residents with the expanded PRP services. However, the
expenditure authority for the PRP program and the contracting authority for PRP agreements require
an increase of$900,000.00 each year for a new total annual amount of$6,923,333.34 to account for
the new programmatic needs. A total five year (Fiscal Years 2019-2024) contract authority of
$33,931,974.94 for Home Repair Programs is necessary to facilitate the increase in funding from
CDBG. This total amount also includes a $2,015,308.00 WATER Program increase in contract
authority for the Home Repair Program approved in March 2021 (M&C 21-0167).
Approval of this M&C also authorizes the Neighborhood Services Director to revise the administrative
procedures in the policy from time to time within the above listed limitations in order to incorporate
industry standards and best practices to increase administrative efficiency and to better meet the
needs of eligible households and to fulfill the purposes of the PRP. Staff recommends that the City
Council adopt the attached PRP Policies and Procedures.
FISCAL INFORMATION/CERTIFICATION:
The Director of Finance certifies that upon approval of the above recommendations, funds are
available in the current operating budget, as appropriated, in the Grants Operating Federal Fund. The
Neighborhood Services Department (and Financial Management Services) will be responsible for the
collection and deposit of funds due to the City. Prior to an expenditure being incurred, the
Neighborhood Services Department has the responsibility to validate the availability of funds. This is
a reimbursement grant.
TO
Fund I Department Account Project Program Activity Budget Reference # Amount
ID I I ID I I I Year I (Chartfield 2)
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10/11/22,9:24AM M&C Review
FROM
Fund I DepartmenL Account Project Program Activity Budget Reference # Amount
ID ID I Year Chartfield 2
Submitted for City Manager's Office by_ Fernando Costa (6122)
Originating Department Head: Victor Turner (8187)
Additional Information Contact: Amy Connolly (7556)
ATTACHMENTS
Home Repair Program Contractor RFP Funding Matrix.xlsx (CFW Internal)
hud annual action plan 2023 PRP High Fig hted.pdf (Public)
M&C 13P20-0093 HOME REPAIRS NEIGHBORHOOD SVCS LH (2),pdf (Public)
M&C 19WATERLINE ASSISTANCE THROUGH EMERGENCY REPAIRS PROGRAM.pdf (Public)
PRP Policies and Procedures October 2022 Final Draft 08.19.22.pdf (Public)
PRP Policies and Procedures rework ATTACHMENT A.docx (Public)
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