REPORT TO COUNCIL
SUBJECT
Title
Action to Authorize the City Manager to Execute Agreement for CDBG-funded Capital Improvement Project: Riverwood Grove Energy Improvements and Action to Delegate Authority to the City Manager to Increase the Contract Amount if CDBG Capital Dollars are Available
Report
COUNCIL PILLAR
Promote and Enhance Economic, Housing and Transportation Development
BACKGROUND
The City of Santa Clara maintains a Consolidated Plan in conformance with requirements of the United States Department of Housing and Urban Development (HUD), which directs the City’s use of funds allocated to the City by HUD. On May 9, 2023, City Council approved the 2023/2024 Annual Action Plan (RTC# 23-181) which recommended Community Development Block Grant (CDBG) funding for Riverwood Grove apartments for energy improvements in the amount of $350,000. This project helps address the City’s Consolidated Plan goals of Improvements to Affordable Housing for the benefit of low/moderate income residents. The project seeks to help eliminate gas usage at the property by switching to electric. This requires upgrades to the electrical panel systems. This upgrade has been requested by Riverwood Grove management to save operating costs over time.
DISCUSSION
The proposed agreement is included as Attachment 1. The scope of work includes:
Electrical panel upgrades - an electrical consultant will help calculate the additional load needed to switch from gas to all-electric at Riverwood Grove. The consultant will help determine what is needed to upgrade the main switchgear and all individual unit sub panels and will determine if the switchgear for each building is sized properly. A detailed scope of work will be developed by the consultant and reviewed by Silicon Valley Power before it is finalized. A general contractor will be selected through a competitive bidding process to deliver the electrical panel upgrade work.
Staff recommends a delegation of authority to the City Manager to increase this contract amount if legitimate cost increases arise and if capital dollars from CDBG funds are available. This will ensure the project can be completed on time and provide staff with more flexibility. Any increase to this project budget would come from CDBG capital funds and would not reduce CDBG funding for public service programs.
ENVIRONMENTAL REVIEW
The action being considered qualifies as a Categorical Exemption per the California Environmental Quality Act (CEQA) section 15301 (e)(1), Existing Facilities in that the projects are limited to repairs and upgrades to systems serving existing residential units.
FISCAL IMPACT
This project will be funded using federal HUD Community Development Block Grant entitlement funds allocated for FY 2023/24 in the Housing and Urban Development Fund. The project budget has been appropriated as part of the FY 2023/24 and FY 2024/25 Adopted Operating Budget approved by the City Council on June 27, 2023.
COORDINATION
This report has been coordinated with the Finance Department, City Attorney’s Office, and City Manager’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email <clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov> or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
1. Determine the project to be exempt from the California Environmental Quality Act (CEQA) pursuant to the Categorical Exemption set forth in Section 15301 (e)(1) (improvements to Existing Facilities) in that the project is limited to repairs and upgrades to systems serving existing residential units.
2. Authorize the City Manager to execute an agreement with Riverwood Grove Associates, a California Limited Partnership to fund up to $350,000 for electrical panel upgrades and related work subject to the availability of Community Development Block Grant funds, on the terms presented, in final forms approved by the City Attorney; and
3. Delegate authority to the City Manager to increase the contract amount if legitimate costs arise and if Community Development Block Grant capital funds are available up to an amount not to exceed $250,000.
Staff
Reviewed by: Reena Brilliot, Director, Community Development
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Riverwood Grove Associates CDBG Agreement (Electrical Panel Upgrades)