title
AMENDMENT NO. ONE TO CONTRACT K-1516-44: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND ATKINS NORTH AMERICA INCREASING THE CONTRACT AMOUNT BY $1,542,232 FOR A REVISED CONTRACT AMOUNT OF $2,232,632 TO PROVIDE CONSTRUCTION MONITORING AND ADDITIONAL ENGINEERING DESIGN SERVICES FOR SEVEN EXISTING AND TWO ADDITIONAL COMMUNITY DEVELOPMENT BLOCK GRANT DISASTER RELIEF (CDBG-DR) ROADWAY PROJECTS USING FUNDING FROM THE OKLAHOMA DEPARTMENT OF COMMERCE AS OUTLINED IN CONTRACTS K-1516-107 AND K-1516-129.
body
BACKGROUND: The City of Norman and Cleveland County both received damages to roads after the natural disasters including a May 19, 2013 tornado and multiple (six or more) wild fires in August of 2012. These disasters were all located in the same general area of southeastern Norman/Cleveland County. Damages to these roads with thin pavement sections were caused by heavy equipment providing aid during the disaster and recovery phases of the responses.
In June 2014, the U.S. Department of Housing & Urban Development (HUD) released its allocations and program requirements for the CDBG-DR 2013 Program. After learning that this aid was available to repair damages from the two previous natural disasters, both the City of Norman and Cleveland County completed applications to receive funding. After several application revisions requested by the Oklahoma Department of Commerce (ODOC), the final City of Norman project locations, which are listed below, were determined and are shown on the attached map entitled Disaster Relief Project Locations.
The City of Norman locations with funding allocations are illustrated and submitted as an attachment.
Cleveland County received an additional $10,774,160 to fund an additional eight projects that will be administered by the County.
On January 26, 2015, the City of Norman was notified that their application had been reviewed and approved. To allow for compliance with the strict timelines that have been set by HUD for expenditure of these funds, ODOC divided this award in to two tranches (phases). Tranche One is for engineering, right of way acquisition and utility relocation within an eighteen month time frame and Tranche Two is for construction management and construction within a twenty-four month time frame. Separate contracts were issued by ODOC with the City of Norman for each tranche.
The total cost for these seven projects including design, right-of-way acquisition, utility relocation, program management, construction management, administration, and construction is estimated to be $12,054,090, which is fully funded by ODOC. Funding for the design and management services was allocated from the first ODOC contract. The Award to the City of Norman for Tranche One was in the amount of $731,712 and included $690,400 for design, $20,000 for right-of-way and utility relocation, and $21,312 in City administration funds. Funds for the engineering design and program management services came from ODOC Contract K-1415-108 for Tranche One in the amount of $690,400. These engineering and design funds were appropriated into the projects and accounts of the Community Development Fund and are included as an attachment.
On May 16, 2015, the Engineering Division of the Public Works Department distributed a Request for Proposal (RFP) No. 1415-29 to solicit design services of providing roadway and drainage design, program oversight, and construction management for the seven (7) above referenced first round CDBG-DR roadway improvement projects. On August 25, 2015, City Council Approved Contract No. K-1516-44, with Atkins North America. The services under this contract included engineering design and program management for the seven (7) first round CDBG-DR 2013 Program projects in the amount of $690,400.
In November 2015, the City of Norman applied for a second round of CDBG-DR 2013 Program funds the U.S. Department of Housing & Urban Development (HUD). These additional funds were a surplus that HUD had available for this program after the first round of funds were allocated to cities and counties. City Staff submitted several application revisions requested by the Oklahoma Department of Commerce (ODOC) before the final City of Norman project locations were finalized. The two additional selected projects are listed below and are shown on the attached map entitled Disaster Relief Project Locations as Locations 8 and 9.
Second round project descriptions with funding allocations are included as an attachment.
On February 9, 2016, City Council approved Contract K-1516-107 by and between the City of Norman and ODOC for the second round of CDBG-DR 2013 Program funds in the amount of $5,004,821 that included $4,859,050 for design, construction, and construction monitoring and $145,771 for administration. Since this funding package is smaller than the first round, ODOC is awarding these funds all at once instead of distributing them in two tranches like the first round of funds. The associated time line with these funds is twenty-four months to complete both design and construction.
These design, construction, and construction monitoring funds for the second round of projects were appropriated into the projects and accounts of the Community Development Fund and are included as an attachment.
DISCUSSION: This Council action is to amend the current contract with Atkins North America for the design of two (2) new projects and construction monitoring of all nine (9) CDBG-DR Projects.
In a separate Council action tonight, April 12, 2016, City Council considered the acceptance of Contract K-1516-129 by and between the City of Norman and ODOC for a portion of the first round, Tranche Two CDBG-DR 2013 Program funds. These funds are for five of the seven first round projects (1, 2, 3, 5, and 6) in the amount of $10,293,600 for construction and construction monitoring and $308,808 for City administration funds for a combined total award of $10,602,408.
Pending City Council acceptance, these construction and construction monitoring funds will be appropriated into the projects and accounts of the Community Development Fund and are listed as one of the attachments.
The remaining Tranche Two balance of $719,970.00 will be requested from ODOC this fall 2016 in preparation for the anticipated January 2017 bid opening, when the City will need these funds for construction.
Staff has negotiated Amendment No. 1 to the design contract with Atkins North America at a cost of $1,542,232. This amendment provides for the construction monitoring for the first round of CDBG-DR 2013 Program funds as well as design and construction monitoring for the second round of the program funds. Please see attached cost breakdown of Amendment No. 1. Funds are available to cover the above mentioned costs of Amendment No. 1 from Account No. 021-4000-463.61-01. If approved, the original contract amount with Atkins North America of $690,400 will increase to $2,232,632. The Projects 1-7 Construction Monitoring Costs of $875,600 were accounted for in the original project budget. However, due to the funds being in separate tranches with timelines that begin when the funds are accepted, we could not include the Tranche Two funds/tasks in the original contract with Atkins North America.
If approved, the proposed design, construction monitoring, and grant administration fees of $2,232,632 equate to 13.1% of the total project costs of $17,058,911. This proposal has been reviewed by ODOC officials and has been found to be acceptable and in accordance with federal, state and industry standards.
If the first round construction and construction monitoring and the second round design, construction, and construction monitoring contract with Atkins North America is approved, remaining steps and schedules for this important program are as follows:
Notice to Proceed- April 12, 2016
Projects 1, 2, 3, 5, and 6
• Bid Opening- April 2016
• Construction- June 2016 to September 2016
Projects 4 and 7
• Design- April 2016 to November 2016
• Bid Opening- January 2017
• Construction- March 2017 to May 2017
Projects 8 and 9
• Survey, Environmental, and Design- April 2016 to December 2016
• Bid Opening- January 2017
• Construction- March 2017 to May 2017
The above projects were grouped to minimize construction costs and ordered to reduce the time for construction. Based on the above schedule, approximately 10.5 miles of roadway will be constructed in 2016 with the remaining 6.5 miles completed in 2017. This schedule complies with the grant requirements established by ODOC.
RECOMMENDATION: Staff recommends approval of Amendment No. 1 to Contract No. K-1516-44, between the City of Norman and Atkins North America, to add construction monitoring services for first round projects 1, 2, 3, 5, and 6 as well as add design and construction monitoring services for second round projects 8 and 9.