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CONSIDERATION OF AWARDING OF BID 1718-17; APPROVAL OF CONTRACT K-1718-60 INCLUDING ALTERNATE NO. 1 WITH G & S SIGN SERVICES, L.L.C., IN THE AMOUNT OF $373,820; CHANGE ORDER NO. ONE REDUCING THE CONTRACT AMOUNT BY $37,521 FOR A REVISED CONTRACT AMOUNT OF $336,299; PERFORMANCE BOND B-1718-30, STATUTORY BOND B-1718-31, AND MAINTENANCE BOND MB-1718-19 FOR THE UNIVERSITY NORTH PARK (UNP) ROBINSON STREET ENTRANCE SIGN PROJECT; AND BUDGET APPROPRIATION FROM THE UNP TIF FUND BALANCE.
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BACKGROUND: Council approved the University North Park (UNP) Tax Increment Finance District (TIF) Project Plan (Ordinance O-0506-66) on May 23, 2006. The Project Plan authorized public improvements within the TIF, including Traffic and Roadway Improvements, a Hotel Conference Center, and an Economic Development Component that would foster special employment opportunities in the University North Park development.
Council has long expressed a desire for entrance signage into the UNP development at the intersection of Robinson and 24th Avenue. Staff has focused on solidifying the design and construction of decorative entrances into University North Park when entering the development from Robinson Street northbound onto 24th Ave NW. Amendment Number One to Development Agreement No. 5 (“DA5a”) set out a funding and cost-sharing mechanism for the decorative entrances into the UNP development. DA5a provides that the costs will be shared equally by the UNP Business Improvement District (BID), from revenues generated from the City’s UNP TIF apportionments and BID property owner assessments; the developer of the “south half” of the UNP District (UNP area between Robinson and Rock Creek Road), UTC LLC; and the owner of the “north half” of the UNP District (UNP area between Rock Creek Road and Tecumseh Avenue), UNP LLC. At the time of the adoption of DA5a, Council expressed a desire that the entrances be redesigned to incorporate elements of Legacy Park. As requested, the redesign was provided to City Staff toward the end of January 2017. The design was shared with the UNP TIF Oversight Committee at its meeting on March 21, 2017, where the redesign was supported unanimously by those attending the meeting. The redesign was shared with City Council during the UNP TIF update at its March 21, 2017 Study Session. The redesign and the proposed budget were presented to the UNP BID Board at its meeting on March 31, 2017, where both were supported unanimously.
DA5a specified a budget of $300,000 for the entrance into the southern portion of UNP District from Robinson Street. The estimated costs proposed for the final design of the south entrance project exceeded $450,000. Components of the signage were “value engineered” to bring the estimated costs down to a level more in line with what was anticipated with the adoption of DA5a. The primary items revised were:
1. Brick removed from rear of wall, replaced with split block to match other Legacy Park finishes;
2. Stone base removed from low area between pilasters;
3. Thickness and detailing of internal construction revised;
4. Area of sod and irrigation reduced in size;
5. More available landscape species will be specified;
6. Boring under 24th Avenue NW deleted.
After these revisions, the proposed construction budget, including a 10% contingency, is $300,885. Goppold Architecture, the required architect for the project under DA5a, has proposed that the design, project management, engineering, landscaping & irrigation, and contingency costs should be an estimated $52,200. The total of the Entryway Signage Project is estimated to be $353,085. The proposed budget is $53,085 more than the amount estimated in DA5a; however, Section 4.10.4.f of DA5a provides that should it be estimated that the cost of the entrance will exceed $300,000, then the contributors shall confer to determine how to revise the project costs, or how to appropriately provide funding for the excess cost of the entrance, as the case may be, prior to awarding a bid for the particular components that would result in the excess cost. For the Robinson Street entrance, the design has been value engineered as discussed above to bring the cost closer to the original projection. Both UTC, LLC and the UNP Bid Board, as contributors, agreed to split the excess estimated cost evenly, recognizing that once the Project was competitively bid, additional discussion between the contributors may be necessary.
Contract K-1617-123 for the design services related to the Robinson Street Entrance in the amount of $52,200 was approved by the NTIFA on April 25, 2017. An appropriation of UNP TIF Fund balance was approved on April 25, 2017. Since that appropriation, NTIFA has received UTC’s 50% share of the anticipated cost of the entrance. Budgeted funds remaining for construction of this project total $300,885.
DISCUSSION: The bids were advertised as required by the Oklahoma Competitive Bidding Act and applicable Norman code provisions. Bids were opened on September 21, 2017. Two bids were received for the project. The lowest bidder was G & S Signs, L.L.C. with a bid of $376,020. The other bidder was Phoenix Construction Disaster Services with a bid of $459,309.14. One deduct alternate was included with the bid. This alternate called for using prairie stone instead of cordova for the sign. Prairie stone is a cheaper material but looks very similar to cordova. The deduct alternate results in a $2,200 savings in the low bid for a total bid of $373,820.
With the alternate, the low bid exceeds the budget for this project by $72,935. If the 50/50 share between the Developer and the UNP BID funds were applied, each would be responsible for an additional $36,467.50. An update to the UNP BID Advisory Board was provided at its meeting on September 29, 2017. The BID Board voted unanimously to provide additional funding up to $23,457.50 provided the 50/50 share of the costs with the Developer continued. Discussions with the Developer indicated a willingness to continue the 50/50 participation with the UNP BID.
The project architect and the contractor have worked closely together to identify any excess quantities contained in the bid as well as substitute materials to bring the project within budget. Through this process, they were able to identify approximately $37,500 in additional savings. Change Order No. 1 achieves these savings.
RECOMMENDATION: Staff recommends the following:
1. Award Bid No. 1718-17 to G & S Sign Services, LLC.
2. Approve Contract K-1718-60 and Change Order No. 1 with G & S Services and authorize the Mayor to sign upon receipt and approval by the City Attorney.
3. Approve maintenance, statutory and performance bonds and authorize the Mayor to sign upon review and approval by the City Attorney for the UNP Entrance Robinson Street Entrance Sign project.
4. Approve an additional appropriation in the amount of $35,414 from the UNP TIF BID Fund Balance (account 057-000-253.20-00) to project UNP Entrance Signs (Business Improvement District), Construction (account 057-9510-431.62-01; project UT0013).