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AMENDMENT NO. ONE TO CONTRACT K-1920-32: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND THE BOARD OF REGENTS OF THE UNIVERSITY OF OKLAHOMA, EXTENDING THE TERM OF THE LEASE AGREEMENT UNTIL JUNE 30, 2020; PROVIDING PROCESS AND AUTHORIZATION FOR AMENDMENT OF AMOUNT AND SPECIFIC OFFICE SPACE LEASED; INCORPORATING ADDITIONAL INSURANCE REQUIREMENT; AND EXPANDING THE SCOPE OF PERMITTED THIRD-PARTY CONTRACTORS.
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BACKGROUND: The City of Norman assumed operation of the public transportation system in the Norman area on July 1, 2019. The City contracted with the University of Oklahoma to provide operational services through August 2, 2019. On August 5, 2019, the City’s third-party contractor, the Central Oklahoma Transportation and Parking Authority (COTPA) doing business as EMBARK, began operation of the City’s fixed routes. On July 30, 2019, the City approved Contract K-1920-32, leasing a portion of University-owned property located at 510 Chesapeake, commonly referred to as the OU Transportation Operations Center. That lease agreement expires on December 31, 2019. This amendment extends the term of the lease until June 30, 2020, provides a process for amending the amount of and specific office space leased, incorporates an additional insurance requirement, and expands the scope of permitted third-party contractors.
DISCUSSION: Pursuant to Amendment Number One to Contract K-1617-114 (approved on August 27, 2019), the City is currently in the process of designing and constructing a new facility, adjacent to the City Service Facility in the vicinity of North Flood Avenue at Da Vinci Street (“North Base”), that will house the Park Maintenance Division staff and fleet; provide for Public Transportation (bus) Fleet maintenance and staff services; and provide for public safety-related Heavy Equipment Fleet services. This amendment extends the term of the current University-owned Facility Lease Agreement until June 30, 2020, to provide the needed additional time to construct the City-owned maintenance facility.
This amendment provides a process for amending the amount of and specific office space leased under the agreement and authorizes the City Manager or his designee to execute such amendment to provide flexibility for both parties to adapt to the changing operational needs during the term of the agreement. The amendment also incorporates an additional insurance requirement. The per-square-foot rate for office space in the lease ($1.35) does not change.
This amendment also expands the scope of permissible third-party contractors to allow the City to contract with a custodial company to provide fleet cleaning services as well as provide flexibility for the City to engage other third-party contractors as needed, subject to approval by University administrators.
Funds are available for ongoing lease related expenses in Transportation-OU/Embark (Account Org 27550277, Object 44766).
RECOMMENDATION: Staff recommends approval of Amendment No. 1 to Contract K-1920-32. This is a critical component of ensuring that the Norman public transportation system continues to operate effectively while the City continues working on building its own maintenance and support facilities.