Title
CONTRACT K-1617-135: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND THE OKLAHOMA DEPARTMENT OF COMMERCE (ODOC) FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RELIEF (CDBG-DR 13) PROGRAM FOR 2013 IN THE AMOUNT OF $719,970 FOR THE CONSTRUCTION OF PROJECTS 4 AND 7 AND BUDGET APPROPRIATION FROM THE CAPITAL FUND BALANCE.
Body
BACKGROUND: In June 2014 the U.S. Department of Housing & Urban Development (HUD) released its allocations and program requirements for the Community Development Block Grant - Disaster Relief 2013 (CDBG-DR 13) Program, based on its estimate of critical unmet needs for repairing and rebuilding housing and infrastructure and economic revitalization in the most impacted areas, primarily using data provided by the Federal Emergency Management Agency (FEMA). Within these eligible areas, the Federal Register Notice required that a minimum of $41.2 million of the total State of Oklahoma CDBG-DR funding must be expended in Cleveland and Creek Counties (exclusive of funds directly provided to the City of Moore).
In July 2014 the City of Norman and Cleveland County submitted a joint preliminary scope of projects totaling over $49,000,000. Subsequently, the Oklahoma Department of Commerce (ODOC) awarded projects to both the City of Norman ($12,054,090) for seven project locations (Projects 1-7) and Cleveland County ($7,952,350) for seven project locations (Projects 2, 3, 4, 5, 8, 9, 10, 11, and 12) and for the purchase of fire equipment. A second award was made to both the City of Norman ($5,004,821; Projects 8 and 9) and Cleveland County ($2,607,239; Project 9a) in early 2016 when additional funding was made available. Attachment 1 provides information regarding the locations for both the City of Norman and the Cleveland County locations.
Due to the specific two year contract timeframe mandated in the funding legislation, ODOC and HUD aligned the contractual allocation of the construction funding to coincide as projects are ready to proceed. On February 24, 2015 the City of Norman approved K-1415-108 in the amount of $731,712 for engineering and design of Projects 1-7. Contract K-1516-129 in the amount of $10,602,408 awarded on March 12, 2016 and included funds for construction and administration for Projects 1, 2, 3, 5, and 6. Contract K-1516-107 in the amount of $5,004,821 was awarded on February 9, 2016 for design, engineering, and construction of Projects 8 and 9. On June 2, 2017 the City of Norman was notified that the request to access the funds designated for construction of Projects 4 and 7 had been reviewed and approved.
The award as identified on the request is noted below:
City of Norman $719,970 total award; projects; $719,970; Administration $0
Project 4; GC0066; 84th Ave NE - Rock Creek Road to north end (.3 Mile)
Project 7; GC0064; Rock Creek Road - 108th Ave NE to 120th Ave NE (1 Mile)
DISCUSSION: The Council action is to accept Contract K-1617-135 (ODOC 16912 CDBG DR 13) in the amount of $719,970 with the Oklahoma Department of Commerce for the construction of Projects 4 and 7. All funds being awarded are being utilized for construction activities, administration costs are being absorbed within the previous awards. The previous awards in addition to including funds for design and engineering also included funds for the construction monitoring for these two projects. As with the previous CDBG-DR awards these funds are administered on a reimbursement basis. There is a two year time frame for the construction of these remaining two projects.
Attachment 2 provides a detail accounting of each of the CDBG-DR Awards and the status of the projects. All projects are projected to be completed within their allotted two year time allowance.
Funding of $354,600 and $344,400 is available in Projects GC0066 and GC0064, respectively, in CDBG-DR, Construction (021-4000-463.61-01). An additional $20,970 is needed in Project GC0064.
RECOMMENDATION: Staff recommends approval of Contract K-1617-135 with the Oklahoma Department of Commerce in the amount of $719,970. Staff further recommends an appropriation from the Capital Fund Balance (050-0000-253.20-00) of $20,970 into Project GC0064.
Upon receipt of the grant funds from the ODOC, staff recommends that they be recorded to the CDBG Fund and transferred to replenish the Capital Fund balance.