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Bee Branch Healthy Homes, Community Development_Pulled from Public Hearing Agenda Copyrighted August 21, 2017 City of Dubuque Public Hearings # 1. ITEM TITLE: Bee Branch Healthy Homes, Community Development Block Grant-National Disaster Recovery (CDBG-NDR) Housing Projects Bid Set#1 SUMMARY: This item is being removed from the agenda at the request of the City Manager. SUGGESTED DISPOSITION: ATTACHMENTS: Description Type Bee Branch Healthy Homes Bid Set 1 Hearing City Manager Memo Cancellation-MVM Memo Staff Memo - Cancel Hearing BBHH Bid Set#1 Staff Memo THE COF Dubuque DtUB E All-America City Masterpiece on the Mississippi 1 1 1 1" 2009•2012•2013•2019 TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Hearing Cancellation: Bee Branch Healthy Homes Community Development Block Grant-National Disaster Recovery Housing Projects Bid Set#1 DATE: August 15, 2017 Housing & Community Development Department Director Alvin Nash is recommending cancellation of this public hearing. In speaking with the Iowa Economic Development Authority (IEDA), IEDA sees no requirement for each project to go to public hearing in front of the City Council unless a project hits the $135,000 threshold. Due to the adjustment to the Bee Branch Healthy Homes bidding process, all the projects set for this public hearing will fall under the $25,000 threshold, removing the requirement to go to hearing in front of City Council. All projects are still going out to bid, they will follow the new competitive quotation process. This will expedite the schedule to get these 320 projects completed over the next four years. I concur with the recommendation and respectfully request Mayor and City Council approval. Mic ael C. Van Milligen MCVM:jh Attachment cc: Crenna Brumwell, City Attorney Teri Goodmann, Assistant City Manager Alvin Nash, Housing & Community Development Department Director THE CDubuque DUIBiatE 11111.1 114mericaCit' Masterpiece on the Mississippi I I I. 2007.2012.2013•2017 TO: Michael C. Van Milligen, City Manager FROM: Alvin Nash, Director Housing & Community Development SUBJECT: Hearing cancellation: Bee Branch Healthy Homes (BBHH), Community Development Block Grant- National Disaster Recovery (CDBG-NDR) Housing Projects Bid Set#1: DATE: August 15, 2017 INTRODUCTION The following projects were approved and scheduled for hearing on August 21, 2017, at the August 7, 2017 City Council meeting. The hearing needs to be cancelled due to a change in bid process authorized by Iowa Economic Development Authority (IEDA), the funding agency for the project. CIP# 2642690, PROJECT# 1X0016- 2499 Pinard St 1X0017- 2665 White St 1X0015- 671 Roberts St 1X0025- 2613 Stafford St 1X0024- 2108 Washington St 1X0012- 575 Kaufmann St BACKGROUND The City originally intended to utilize the strictest procurement methodology under Iowa Code Chapter 26 (26.14A) whereby regardless of the total cost of the project, it was bid via competitive bidding. If the City was required to procure contractors through sealed bids (formal advertising) as competitive bidding under Iowa Code Chapter 26 each of the projects (320 projects) would require a public hearing in front of the City Council before going out for bid. This would drastically slow down the process and progress. The City anticipates most of the projects will be under$25,000. While state law would only require an informal proposal, the City's internal policy requires competitive quotations equated to competitive proposals under federal law. This process was evaluated as compliant with federal law, state law, city policy and the most effective for accomplishing the heavy lifting which must be done swiftly and efficiently to comply with the grant time lines and avoid requiring City Council approval of each contract in advance. This change needs to be approved by IEDA. In speaking with IEDA it is the IEDA determination that use of the language "sealed bids (formal advertising)" in the federal law does not exactly equate to competitive bidding under Iowa Code Chapter 26. IEDA sees no requirement for each project to go to public hearing in front of the City Council unless a project hits the $135,000 threshold (Iowa Code §26.12). The City must simply have sealed bids (formal advertising). The City intends to use the competitive quotation process/procedures as outlined in state code and city policy using sealed bids (formal advertising) for compliance with 2 CFR 200.320. Ann Schmid- Housing Project Manager (IEDA) has approved the process in writing as of August 15, 2017, removing the need to go to hearing for projects under $25,000. DISCUSSION Due to the adjustment to the BBHH bidding process, all the afore mentioned projects will fall under the $25,000 threshold, removing the requirement to go to hearing in front of City Council. All projects are still going out to bid, they will follow the new competitive quotation process. RECOMMENDATION I recommend cancelling the hearings that were set for August 21 , 2017 for the following projects: CIP# 2642690, PROJECT# 1X0016- 2499 Pinard St 1 X0017- 2665 White St 1 X0015- 671 Roberts St 1 X0025- 2613 Stafford St 1 X0024- 2108 Washington St 1 X0012- 575 Kaufmann St ACTION TO BE TAKEN I respectfully request we pull the item from the August 21 , 2017 City council agenda. Prepared by Sharon Gaul- Resiliency Coordinator cc: Crenna Brumwell, City Attorney John Tharp, Grant Administrator Kelly Deutmeyer, ECIA Executive Director Kevin Firnstahl- City Clerk 2