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CONTRACT K-1617-69: A CONTRACT BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND ARCHITECTS DESIGN GROUP, INC., IN THE AMOUNT OF $150,300 TO PROVIDE ARCHITECTURAL SERVICES FOR THE EMERGENCY OPERATIONS AND DISPATCH CENTER PROJECT, PHASE 1.
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BACKGROUND: This item is a contract with an architectural firm to provide initial planning and design services for the Emergency Operations and Dispatch Project, Phase 1 services. The Phase 1 services include a detailed spatial needs assessment, analysis, master planning, and site surveying, and a conceptual building design. The background and history of the Project that has solidified funding and brought the City to this point is outlined below.
On April 1, 2014, the voters of Norman approved Ordinance O-1314-33, extending the dedicated ½ percent Public Safety Sales Tax (PSST) permanently (effective October 1, 2015). The Ordinance directed that 71 personnel added to the City public safety workforce be made permanent; an additional 19 personnel be added over a period of four years (13 police officers to staff a School Resource Officer program; 4 additional Dispatchers; and 2 Emergency Vehicle Mechanics); and a program to replace or acquire Critical Public Safety Capital Needs be implemented. The Critical Public Safety Capital Needs were identified, in priority order, as follows:
Emergency Communication System Replacement - $15,000,000
Emergency Operations/Dispatch Center Facility - $ 6,500,000
Fire Apparatus Replacement Program - $ 6,800,000
Reconstruct/Relocate Fire Station #5 - $ 3,500,000
TOTAL - $31,800,000
In discussions and presentations leading up to the approval of the PSST extension, the plan to finance the Emergency Communications (Radio) System and Emergency Operations Center (EOC) facilities through some type of debt issuance was discussed and acknowledged, due to the need to have those facilities functional before sufficient PSST revenues would accrue. Under this plan, available PSST Fund balance would be used as a partial “down payment” on the Communication System and EOC facilities, and PSST Fund balance would be used to pay for the fire apparatus and Fire Station 5 reconstruction on a pay-as-you-go basis, as funds became available after the Radio System and EOC were financed.
Subsequent to the passage of the PSST extension (“PSST II”), Fire Department staff presented to the City Manager and Council Finance Committee the immediate need to replace the most critical of the fire apparatus, a platform fire truck with an estimated cost of $1,100,000. The Police Department staff also presented the need to hire the School Resource Officer program personnel a year in advance of the time originally projected. It was predicted that the PSST Fund would be able to absorb these advanced expenses, but the amount of debt financing that would be required with this accelerated schedule would be increased. The Finance Department and Legal Department staff, in consultation with the City’s financial advisor and bond counsel teams, proposed a financing package, including the Emergency Communications System, the EOC/Dispatch Facility and the fire platform truck. This comprehensive financing package for the Critical Public Safety Capital needs was discussed and approved by the Council Finance Committee on February 12, 2015. Proposals from qualified local and regional banking institutions to provide approximately $22,825,000 in financing with a final maturity in 12 years, secured by a pledge of the PSST II proceeds, were solicited.
Responses in the form of interest rate proposals were received on March 10, 2015, and the lowest and best interest rate bid was forwarded for consideration of the Norman Municipal Authority (NMA) Trustees and Council. Information on the tabulated interest rate bid proposals was distributed at the meeting, as an attachment. The Norman Municipal Authority Trustees and Council considered two resolutions. Several actions were accomplished by the resolutions. Resolution R-1415-90 was a Resolution of the NMA to issue the debt, and R-1415-91 was a resolution of the City of Norman authorizing the issuance of the debt by the NMA in an aggregate amount not to exceed $22,825,000.
The NMA Resolution (R-1415-90) authorized the following actions:
Authorize the Issuance of the PSST Revenue Notes;
Pledge the Revenues of the PSST II sales tax and a portion of the dedicated Capital Sales Tax, subject to annual appropriation, to the repayment of the note indebtedness;
Waive Competitive Bidding and Authorize the Note to be sold on a Negotiated Basis;
Authorize a Sales Tax Agreement between the City of Norman and the NMA;
Establish the Tax-Exempt Nature of the Note; and
Authorize the Chair of the NMA Board of Trustees to execute final documents related to the financing
The City of Norman Resolution (R-1415-91) authorized the following actions:
Approve the Incurrence of the Indebtedness by the NMA;
Waive Competitive Bidding and Authorize the Note to be sold on a Negotiated Basis;
Authorize a Sales Tax Agreement between the City of Norman and the NMA;
Establish the Tax-Exempt Nature of the Note; and
Authorize the Mayor to execute final documents related to the financing.
That financing closed and those revenues for the Project are noted as Bond Proceeds in the PSST Fund Summary in the Capital Fund Budget document.
During the budget process, the City budgeted expenditures of $500,000 in fiscal year 2015-2016 (FY16) for Design (account 015-9523-419.62-01) and in FY17, $2,000,000 for Land (account 015-9523-419.60-01; project BP0029) plus $4,000,000 for materials (account 015-9523-419.63-01; project BP0029) for the Emergency Operation/Dispatch Center. This totals the $6,500,000 identified for the Emergency Operations/Dispatch Center in the original PSST II Plan. With funding for the Project secured, the design and construction process was then moved forward.
A Request for Qualifications (RFQ 1516-58) was issued on May 16, 2016 asking for firms to present their qualifications for architectural and engineering design of the Emergency Operations Center (EOC). A total of six firms submitted their qualifications for the EOC project. The RFQ responses were reviewed by a Selection Committee of professional staff including Major Kevin Foster, Police Staff Support Bureau; Police Captain Blake Green; Lance Terry, Communications Systems Manager; Angelo Lombardo, Chief Traffic Engineer; and Scott Sturtz, City Engineer. All six firms were scored by each member of the Selection Committee and two firms stood out from the others. These two firms were given the opportunity to present in-person to the Committee. Following the presentations, the Architects Design Group of Winter Park, Florida was selected for this project. As noted above, this item brings to Council’s consideration a contract with the recommended architectural firm to provide initial planning and design services for the Emergency Operations and Dispatch Project, Phase 1 services.
DISCUSSION: RFQ 1516-58 proposed that the EOC Design project be completed in phases, similar to other City public works projects. Phase 1 would include a detailed spatial needs assessment, analysis, master planning, and site surveying, and a conceptual building design. Other Phases would include the schematic design and development, preparing construction documents, and assistance in bidding. Other Phases would include construction oversight services by the architectural firm as well as post construction services.
Contract K-1617-69 was drafted and has been reviewed by City Legal staff. This contract with Architects Design Group includes the Phase 1 tasks. After the Phase 1 work is completed, the City will determine if the needs determined by the firm include everything we need/want in the building. Another contract or contract addendums may be presented to the Council/NMA for Architects Design Group or other qualified firm to complete other Phases. The Phase 2 work will be to assist in bidding the job out and selecting a construction company to build the Emergency Operation/Dispatch Center. The selection process and contract with the selected construction company will then be presented to the NMA/Council for approval. Once the construction contract is approved, construction will begin.
RECOMMENDATION: Staff has reviewed the contract and recommends approval of Contract K-1617-69 between the City of Norman and the Architects Design Group for Phase 1 Design Services of the Emergency Operations/Dispatch Center. Available funds for the amount of the Contract, $150,300, will be utilized from the Public Safety Sales Tax Fund, Emergency Communication Center - Design (account 015-9523-419.62.01; project BP0029). Staff will be available to answer other questions or concerns.