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PUBLIC HEARING REGARDING APPROVAL OF CONTRACT K-1415-108 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) PROGRAM FOR 2014 IN THE AMOUNT OF $731,712.
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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 2014 (CDBG-DR 14) 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 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) provided a list of preliminary approved projects to be processed that amounted to $21,711,500 and were to be applied for jointly by the City of Norman and Cleveland County. During the application period, however, ODOC revised their position regarding a joint application and requested that the City of Norman and Cleveland County each submit an application for the projects within their geographic jurisdiction. In addition, Cleveland County was to submit a sponsored application for each of five rural fire districts for their equipment requests. These applications were compiled and submitted in the OKGrants system as follows:
City of Norman - $13,702,500
Cleveland County - $6,125,250
Cleveland County - Cedar Creek FD - $74,400
Cleveland County - Lexington FD - $290,000
Cleveland County - Little Axe FD - $578,400
Cleveland County - Noble FD - $578,400
Cleveland County - Slaughterville FD - $362,400
After the applications had been submitted in OKGrants and during the review process, HUD disallowed multiple projects submitted based upon their determination that the projects proposed were not directly attributable to the said disasters. Included in the discussions were the projects submitted by the City of Norman and Cleveland County for replacement of multiple bridges, equipment purchases by the City of Norman and Cleveland County, and the purchase of fire equipment proposed by Cleveland County for five rural fire departments. Their stance was that these items fell into a resiliency category project and not a recovery project and since damage to the bridges or equipment could not be directly tied to the disaster events, they would not be considered. ODOC is pursuing a waiver on the fire equipment determination from HUD, with no timeline provided for that consideration.
The final application, after several revisions requested by ODOC, is noted below:
City of Norman $11,703,000 Projects; $351,090 Administration
108th Avenue S.E. - From Etowah Road to SH-9 (3 Miles) - $3,694,000
84th Avenue N.E. - From Tecumseh Road to Franklin Road (1 Mile) - $1,236,000
Tecumseh Road - From 84th Avenue N.E. to 120th Avenue N.E. (2 Miles) - $3,694,000
96th Avenue N.E. - From Tecumseh Road to Arrowhead Drive (1+ Mile) - $1,236,000
Rock Creek Road - From 108th Avenue N.E. to 120th Avenue N.E. (1 Mile) - $366,000
120th Avenue S.E. - From Etowah Road to SH-9 (3 Miles) - $1,080,000
84th Avenue N.E. - From Rock Creek Road to north end (0.3 Mile) - $397,000
In addition the allowance of 3% of the total for Administration ($351,090) was submitted.
Cleveland County $10,460,350 Projects; $313,810 Administration
Indian Hills Road - From 156th Avenue N.E. to Harrah/Newalla Road (3 Miles) - $1,005,250
Franklin Road - From 156th Avenue N.E. to Potawatomie County Line (4 Miles) - $831,950
Etowah Road - From 180th Avenue S.E. to Pottawatomie C.L. (2 Miles) - $636,000
Harrah/Newalla Road - From SH-9 to Oklahoma City Limits (SE 149th) (5 Miles) - $1,914,050
Harrah/Newalla Road - From Oklahoma City Limits (SE 149th) North to SE 89th Street (5 Miles) - $4,149,100
Maguire Road - From 120th Avenue S.E. to 156th Avenue S.E. (3 Miles) - $650,000
Etowah Road - From 120th Avenue S.E. to 156th Avenue S.E. (3 Miles) - $650,000
180th Avenue N.E. - From Rock Creek Road to Franklin Road (2 Miles) - $624,000
In addition the allowance of 3% of the total for Administration ($313,810) was submitted.
The total of these two applications ($22,163,350 exclusive of administration award) is slightly higher than the preliminary project approval that was made on 8/21/2014 ($21,711,500 exclusive of administration award).
On 1/26/2015, both the City of Norman and Cleveland County were notified that these applications had been reviewed and were approved. To allow for compliance with the strict timelines that have been set by HUD for expenditure of these funds, ODOC has divided each award in to two tranches (phases). Tranche One will allow for engineering, right of way acquisition and utility relocation within an eighteen month time frame and Tranche Two will be for construction. A separate contract will be issued by ODOC for each tranche.
The Tranche One Award to the City of Norman is in the amount of $731,712 and includes $21,312 in administration funds. The Tranche One Award for Cleveland County is in the amount of $754,372 and includes $21,972 in administration costs (see attached table showing how the grant was distributed).
DISCUSSION: ODOC prepared contracts for Tranche One for both the City of Norman and Cleveland County based on the final approved application. The ODOC contract number is 16237 CDBGDR 13 and is attached. Contract K-1415-108 is that ODOC contract with the City of Norman in the amount of $731,712. If the requested waiver is approved by HUD for the purchase of fire equipment, those funds would be in addition to those already approved by ODOC.
RECOMMENDATION: Staff recommends conducting a public hearing as well as approval of Contract K-1415-108 with the Oklahoma Department of Commerce in the amount of $731,712. Staff further recommends approval to appropriate the funds from Capital Fund Balance (050-0000-253.20-00) into the projects and accounts in the Community Development Fund as follows:
· $218,400 into GC0060 in account 021-4000-463.62-01 (Design)
· $72,800 into GC0061 in account 021-4000-463.62-01 (Design)
· $218,400 into GC0062 in account 021-4000-463.62-01 (Design)
· $72,800 into GC0063 in account 021-4000-463.62-01 (Design)
· $21,600 into GC0064 in account 021-4000-463.62-01 (Design)
· $64,000 into GC0065 in account 021-4000-463.62-01 (Design)
· $22,400 into GC0066 in account 021-4000-463.62-01 (Design)
· $20,000 into GC0066 in account 021-4000-463.60-01 (Right-of-way acquisition)
· $21,312 into account 021-4000-463.20-01 (Salaries)
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.