10 - HOME Program Constructionof Single Family Homes - bid from Ron Doe, Inc.

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Item No. 10 Memorandum TO: Mayor & City Council FROM: Grayson Path, City Manager Charles Edwards, Resource Management & Consulting Co. SUBJECT: HOME Program Award Bid to Contractor DATE: November 9, 2020 BACKGROUND: Paris participates in the Texas Department of Housing and Community Affairs (TDHCA) HOME program, which provides reconstruction of existing dilapidated owner occupied housing for qualified persons. Resource Management & Consulting Co. administers the program for the City to ensure grant compliance. To date, 40 applications have been received by the City. Seven (7) homes are currently prepared for submittal to the TDHCA for approval. STATUS OF ISSUE: Competitive bids for two (2) floorplans were requested by the City. Two (2) bids were received by the October 15, 2020 due date, one from Ron Doe Homes and one from Above Grade Development. Bids were reviewed in accordance with grant requirements by Resource Management. A recommendation to accept the bids (bid tab attached) from Ron Doe Homes was made. Individual contracts will be entered into by the builder, City and HOME Program applicants upon State approval. BUDGET: The HOME Program provides a max of $100,000.00 per home and the City matches 15% to give us a total maximum potential budget of $115,000.00. The City budgeted $80,000.00 to go towards our match, thus we could fund approximately 8 homes depending on the total cost per house. The bids came back at $103,950.00 for a 2 bedroom home and $107,650.00 for a 3 bedroom home. Each site though will have lot conditions that have to be addressed (trees, dirt work, etc.) that will also impact the total cost, so the bids have alternative options to allow us to stay within the total $115,000.00 budget per location. For information purposes only, the grant budgets are being amended by the State to increase their share from $100,000 to $135,000, the City still has to match