Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Iliana Rodriguez, Assistant County Executive
Subject: Amendment to Increase the Construction Contingency in the Agreement with Interstate Grading & Paving, Inc.
RECOMMENDATION:
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Adopt a resolution authorizing:
A) The President of the Board of Supervisors to execute an Amendment authorizing increasing the construction contingency within the Interstate Grading & Paving, Inc., Agreement by 2.5%,(or $286,575); and
B) The County Executive Officer, or designee, to execute subsequent change orders against the construction contingency that modify the terms and conditions of the agreement and increasing the contract value up to 2.5% (or $286,575) in aggregate for a maximum not to exceed adjusted contract value of $12,122,951.51.
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BACKGROUND:
On January 6, 2023, the State of California Department of Housing and Community Development (“HCD”) released approximately $35,000,000 in funding to address the housing needs of farmworkers under the Joe Serna, Jr. Farmworker Housing Grant Homeownership Program (“Serna Program”). One eligible activity under the Serna Program is the acquisition of manufactured homes to address and remedy impacts from the displacement of farmworker families from labor camps, mobile home parks, or other housing.
On February 28, 2023, the Board authorized the County’s Department of Housing to execute and apply for a grant award of up to $5,000,000 under the Serna Program to purchase manufactured homes for low-income farmworkers and their families.
On June 1, 2023, the County was notified of the State’s conditional award of the full $5,000,000 under the Joe Serna Farmworker Housing Grant Program. These funds are being used to purchase of manufactured homes and provide homeownership opportunities for low-income farmworker families in our community. The County worked with Half Moon Bay to identify and develop the site located at Stone Pine Cove that will house 47 single family manufactured mobile homes and 1 main office building for low-income farmworker households (the “Half Moon Bay Farmworker Housing Project”).
DISCUSSION:
On April 17, 2024, bids were accepted by the County from two bidder for paving and grading- related work for the project. The bids and supporting documents were referred to Capital Program Management (CPM), the County project manager, for evaluation and recommendation based on lowest responsive base bid amount. The bid of
Interstate Grading & Paving, Inc.
128 South Maple Avenue
South San Francisco, CA 94080,
at $11,463,000, was the lowest responsive bid received for this scope of work. Interstate Grading was responsible to complete all paving, grading, and underground utilities for the Stone Pine Cove Farmworker Housing Project. The Board of Supervisors approved the agreement with Interstate under Resolution R080345.
As of April 1, 2025, CPM has advised the County that the project has been progressing well. There are currently 16 homes on site and 2 to 3 units arriving daily. Due to unforeseen conditions, City of Half Moon Bay requirements, and necessary changes resulting from a combination of project delays due to finalizing and establishing utilities with PG&E, CMP has informed the County that there is a need for an increase to construction contingency. The Board’s approval of construction contingency will allow for the processing of current change orders awaiting funding approval.
County Attorney has reviewed and approved the Resolution and Amendment as to form.
COMMUNITY IMPACT:
Farmworkers, who contribute immensely to our agricultural industry, often face significant barriers to accessing quality housing, including low wages and lack of affordable housing options on the Coast.
To promote affordable housing for all extremely low income individuals and families, the County is committed to providing affordable farmworker housing that is safe, healthy, and inclusive, and designed with the needs of farmworkers in mind, including proximity to job sites, schools, and access to transportation.
FISCAL IMPACT:
The cost for this agreement is included in the County Executive’s Office FY 2024-25 Adopted Budget. There is no additional Net County Cost associated with this action.