TO: Mayor and Members of City Council
THRU: Douglas J. Hewett, ICMA-CM, City Manager
Telly C. Whitfield, Ph.D., Assistant City Manager
Adam Lindsay, Assistant City Manager
FROM: Christopher Cauley, MPA, Economic and Community Development Director
Rob Stone, PE, Construction Management Director
Kelly Olivera, Budget and Evaluation Director
DATE: June 13, 2022
RE:
Title
Authorize the City Manager to Execute a Subrecipient Agreement with the North Carolina Office of Recovery and Resiliency (NCORR), Adopt Capital Project Ordinance Amendment 2022-64 to Appropriate $1 Million of Funding From NCORR, and Authorize the City Manager to Execute a Contract with Muter Construction for Construction of the Homeless Day Resource Center
end
COUNCIL DISTRICT(S):
Council District(s)
District 2
b
Relationship To Strategic Plan:
GOAL 2: The City of Fayetteville will have a Responsive City Government supporting a diverse and viable economy.
Objective 2.2: To invest in community places to ensure revitalization and increase quality of life
GOAL 4: The City of Fayetteville will be a highly desirable place to live, work and recreate.
Objective 4.6: To reduce poverty and homelessness
GOAL 6: The City of Fayetteville will continue to have a collaborative citizen and business engagement base.
Objective 6.3: To inform and educate about local government by enhancing public outreach and increasing community dialog, collaboration and empowerment.
Executive Summary:
City Council is asked to authorize the City Manager to execute a subrecipient agreement with NCORR, adopt Capital Project Ordinance Amendment (CPOA) 2022-64 to appropriate $1 million of additional funding from NCORR, and authorize the City Manager to execute a contract with Muter Construction, who is the lowest responsive responsible bidder at $4,961,500, for the construction of the Homeless Day Resource Center.
Background:
City Council has authorized a number of transformational and critical initiatives aimed at achieving the City’s strategic goal to reduce poverty and homelessness. The Fayetteville Day Resource Center project includes the renovation of an existing 12,320 SF commercial building situated on 1.5 acres and located at 128 S. King Street near the intersection of Person Street and S. Eastern Boulevard. This facility will serve low-income and homeless families through providers tasked with stabilizing, improving, and accessing services that impact their safety, well-being, and housing. This facility will also serve as a post-emergency shelter after disaster declarations. To repurpose the existing facility, it is necessary to completely remodel the interior and exterior of the building. Additionally, the existing parking lot is in poor condition and must be replaced.
The low bidder for the project is Muter Construction with a bid of $4,961,500 including bid allowances and selected alternates.
The Day Resource Center construction contract was advertised to the general public on April 14, 2022, consistent with North Carolina law, and a pre-bid meeting took place on-site on May 4, 2022. Two bids were received on May 17, 2022, as follows:
BIDDERS TOTAL COST
Muter Construction (APPARENT LOW BIDDER) $4,961,500
M & E Contracting $4,975,795
The target is for construction to begin on the Day Resource Center in June 2022 and to be completed in May 2023.
The City received notification of a subrecipient award for $1 million from NCORR. The current project appropriation is $4,990,000, which will increase to $5,990,000 after this appropriation. The funding sources for the project are grant awards from NCORR ($4.99 million) and a state direct grant from the North Carolina Office of State Budget and Management ($1 million).
An additional $1 million of the first tranche of ARPA funding previously appropriated by the Council will be allocated for use for this project, but is not included in this appropriation.
Issues/Analysis:
Only two (2) bids were received for this project.
Budget Impact:
The current appropriation for this project includes funding from the Community Development Block Grant - Disaster Recovery via the North Carolina Office of Recovery and Resiliency ($3.99 million) and the State of North Carolina through the State Capital Infrastructure Fund directed grant program ($1 million).
Options:
Option 1 -
• Authorize the City Manager to execute the subrecipient agreement from NCORR,
• Adopt Capital Project Ordinance Amendment (CPOA) 2022-64 to appropriate $1 million of funding from NCORR, and
• Authorize the City Manager to execute a construction contract with Muter Construction for the sum of $4,961,500.
Option 2 -
• Do not authorize the City Manager to execute the subrecipient agreement from NCORR,
• Do not adopt Capital Project Ordinance Amendment (CPOA) 2022-64 to appropriate $1 million of funding from NCORR, and
• Reject all bids for the construction of the Homeless Day Resource Center and provide further direction to staff.
Recommended Action:
Staff recommends City Council move to accept Option 1, as follows:
• Authorize the City Manager to execute a subrecipient agreement with NCORR,
• Adopt Capital Project Ordinance Amendment (CPOA) 2022-64 to appropriate the additional $1 million of NCORR funds for the project, and
• Authorize the City Manager to execute a construction contract with Muter Construction for the sum of $4,961,500.
Attachments:
• Subrecipient Agreement, Fayetteville Day Resource Center project
• Capital Project Ordinance Amendment 2022-64, Fayetteville Day Resource Center project
• Certified bid tabulation dated May 26, 2022, Fayetteville Day Resource Center project