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CONSIDERATION OF ACCEPTANCE BY THE NORMAN TAX INCREMENT FINANCE AUTHORITY OF BID NO. 1213-39 FOR THE LEGACY PARK CONSTRUCTION PROJECT AND AUTHORIZING THE CHAIRMAN TO SIGN CONTRACT NO. K-1213-67 WITH CGC, L.L.C., IN THE AMOUNT OF $5,897,600 AND THE SUBSEQUENT PERFORMANCE, STATUTORY AND MAINTENANCE BOND; AND BUDGET APPROPRIATION.
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BACKGROUND: A separately identified component of the Project Plan for the University North Park Tax Increment Finance District (UNP TIF) adopted in May of 2006 was the development of Legacy Park. On October 23, 2007, the City of Norman and the Norman Tax Increment Finance Authority approved contract K-0708-76, "Development Agreement No. Three for the Development of Legacy Park", with University Town Center, LLC and University North Park, LLC (DA#3). On April 22, 2008, The Norman Tax Increment Finance Authority entered into Contract No. K-0708-142 with Howard-Fairbairn Site Design, Inc., for the design of the Legacy Park Project, located on land in the University North Park (UNP) area. On June 23, 2009, the Norman Tax Increment Finance Authority (NTIFA) authorized the issuance of its Series 2009 Tax Increment Revenue Notes (Resolution No. R-0809-161). Among other things, the 2009 NTIFA Notes authorized up to $5,100,000 to finance the construction of Legacy Park. Release of funds for the construction of Legacy Park was conditioned on the parties reaching an agreement on Development Agreement No. 5.
The Howard-Fairbairn design of Legacy Park was presented to the TIF Oversight Committee and the City Council in the fall of 2009. Bid documents were prepared and construction bids were accepted for Legacy Park in December of 2009. The base bids with all add alternates exceeded the amount set aside for park construction. In addition, there continued to be an issue regarding ownership of the land for the park site not being conveyed to the City of Norman and consequently, the construction contract was not awarded, and the original bids allowed to lapse in 2010.
On May 8, 2012, the City of Norman and the Norman Tax Increment Finance Authority approved Contract No. K-1112-125 (also known as Development Agreement #5), "An Agreement Setting Forth Obligations Related to the Development of the Norman University North Park Project", with University North Park, LLC, University Town Center, LLC, and UNP Realty Investors, LLC. Among other things, this agreement made available additional funding from the 2009 NTIFA Notes, up to $7.99 million, for the construction of Legacy Park and associated roadway improvements. This additional funding was made available by recognizing savings realized during the construction of the Rock Creek Overpass and the lender's commitment to loan the full amount authorized under the 2009 Revenue Notes by allowing funding originally identified for Rock Creek Overpass construction to be drawn and utilized for Legacy Park and associated roadway improvement construction.
On July 24, 2012, the City of Norman approved the final plat for University North Park Addition Section IX and acceptance of public dedication of Parkland for Legacy Park. Once the final plat for University North Park Addition Section IX was filed, the City of Norman obtained full ownership of the site to be developed as Legacy Park. Having resolved both the park land ownership issue and strengthened the NTIFA's position for the construction funding of Legacy Park, Howard-Fairbairn was asked to update construction bid documents and rebid the project.
On October 19 and 26, 2012, Bid No. 1213-39 for the Legacy Park Construction Project was advertised in the Norman Transcript, Bid News/i-squarefoot, e-plan and Dodge Report. Bid packets were obtained by ten general contractors, five of whom responded with complete bids. The Bid Packet included a base bid for construction and twelve add-alternates, which are listed in an attachment. Bids were publicly opened by the Purchasing Division on November 20, 2012. The Bids were presented to the Council on December 11, 2012, to the TIF Development Oversight Committee on December 18, 2012, and discussed again with the Council on January 8, 2013. In accordance with the feedback from the TIF Oversight Committee and the Council, Contract K-1213-67 is being presented to Council for formal consideration at this time.
DISCUSSION: The lowest and best-qualified bid was submitted by CGC, LLC in the Base Bid amount of $5,525,900. This bid included the park "wishbone" entry drive; enhanced treatment of Legacy Park Drive; entry portals; the amphitheater stage, cover and seating area; a 1-acre pond with programmable fountains; a promenade walk around the pond; a restroom building; walkways and trails along the west side park area; arbor structures along the west side walkways; and extensive landscaping, irrigation and pedestrian lighting.
Parks and Recreation Department staff and the design consultant presented information about the base bid and alternates to the City Council and the TIF Development Oversight Committee as noted above. Considering the input and discussion at those meetings, a contract in the amount of $5,897,900 for the Legacy Park Construction Project with CGC, LLC is recommended. This proposed contract includes the base bid and add-alternate numbers 1, 6, 7, 8, 9, 10, 12 and 13.
Not include in the proposed contract at this time is add-alternate numbers 2 through 5, that would add primarily landscaping and trail improvements around the upper perimeter of the detention facility immediately west of Academy Outdoor Sports. The savings from deferring add-alternate numbers 2 through 5 was approximately $258,000. Staff was directed to seek alternative funding options for these items in cooperation with the developer or to bring them back as a change order item if it appears sufficient funding remains closer to the end of the Legacy Park construction project.
Also not included in the proposed contract at this time is add-alternate number 11, providing cascading water features on both sides of the stage area is not included in Contract K-1213-39. The bid for this item was $865,000. Council asked that Howard-Fairbairn explore other fountain enhancing options that could be consider by Council to determine if there is another potential use of these funds that would have a greater impact on the overall park project.
The project will be funded from proceeds drawn from the Norman Tax Increment Finance Authority Tax Increment Revenue Note, Series 2009. There is adequate funding from this source for Contract K-1213-39 and associated roadway improvement for the construction of Legacy Park. Loan draws will be made as expenses are incurred.
Staff recommends awarding Contract K-1213-67 to CGC, LLC, in the total amount of $5,897,900 for the Legacy Park Construction Project.
RECOMMENDATION NO.1: It is recommended that Bid No. 1213-39 for the Legacy Park Construction Project be awarded to CGC, L.L.C., in the amount of $5,897,600.
RECOMMENDATION NO.2: It is further recommended upon approval of Bid 1213-39 that $5,897,900 be appropriated from University North Park TIF Fund Balance (account #057-0000-253.20-00) to Legacy Park Construction (account 057-9518-431.61-01; Project UT0098).
RECOMMENDATION NO.3: It is further recommended upon awarding Bid 1213-39 that the Chairman be authorized to sign Contract No. K-1213-67 with CGC, L.L.C., and Performance Bond No. B-1213-22, Statutory Bond No. B-1213-23, and Maintenance Bond No. B-1213-18 contingent upon approval by the City Attorney
RECOMMENDATION NO. 4: It is further recommended that the Norman Tax Increment Finance Authority allow the Director of Parks and Recreation to approve the purchase of equipment and materials directly from vendors at prices agreed to by CGC, L.L.C