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CONTRACT K-1516-129: A CONTRACT 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 13) PROGRAM FOR 2013 IN THE AMOUNT OF $10,602,408 AND ADOPTION OF RESOLUTION R-1516-104 APPROPRIATING FUNDS.
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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 2013 (CDBG-DR 13) 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 of Oklahoma 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) awarded projects to both the City of Norman ($12,054,090) for seven project locations and Cleveland County ($7,952,350) for eight project locations and for the purchase of fire equipment. Both the City of Norman and Cleveland County are currently under contract for the engineering and design phase of these awards.
On February 24, 2015 the City of Norman approved K-1415-108 in the amount of $731,712 for engineering and design of the seven roads. The approval of contract K-1516-129 would represent the second award of funds for these seven City of Norman projects. Due to the specific two year contract timeframe mandated in the funding legislation, ODOC and HUD are aligning the contractual allocation of the construction funding as projects are ready to proceed. On March 22, 2016 the City of Norman was notified that the request to access the funds designated for construction of five locations had been reviewed and approved. Included within this award were funds for Construction Monitoring of two additional locations.
The award as identified on the request is noted below:
City of Norman $10,602,408 total award; projects; $10,293,600; Administration $308,808
Project 1; GC0060; 108th Ave SE - Etowah Road to SH-9 (3 Miles)
Project 2; GC0065; 120th Ave SE - Etowah Road to SH-9 (3 Miles)
Project 3; GC0061; 84th Avenue N.E. - Tecumseh Road to Franklin Road (1 Mile)
Project 4; GC0066; 84th Ave NE - Rock Creek Road to north end (.3 Mile)
Project 5; GC0062; Tecumseh Road - 84th Ave NE to 120th Ave NE (3 Miles)
Project 6; GC0063; 96th Ave NE - Tecumseh Road to Franklin Road (1+ Mile)
Project 7; GC0064; Rock Creek Road - 108th Ave NE to 120th Ave NE (1 Mile)
DISCUSSION: The ODOC contract number is 16604 CDBG DR 13 (K-1516-129) in the amount of $10,602,408. As with the previous CDBG-DR awards these funds are administered on a reimbursement basis. Funds for the Construction Monitoring have been included within this award for all seven projects including two (GC0066 and GC0064) not award construction funds at this point to allow for timely negotiation of a contract amendment with Atkins North America. The funds for the construction of these two projects will be requested from ODOC at a later date. There is a two year time frame for the construction of the five projects (GC0060, GC0065, GC0061, GC0062, and GC0063) in which construction funds were awarded.
RECOMMENDATION: Staff recommends approval of Contract K-1516-129 with the Oklahoma Department of Commerce in the amount of $10,602,408. Staff further recommends adoption of Resolution R-1516-104 which appropriates funds from Capital Fund Balance (050-0000-253.20-00) into the projects and accounts in the Community Development Fund as detailed on Attachment 2.
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.