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AMENDMENT NO. ONE TO CONTRACT K-1617-69: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND ARCHITECTS DESIGN GROUP, INC., (ADG) INCREASING THE CONTRACT AMOUNT BY $643,676 FOR A REVISED CONTRACT AMOUNT OF $793,706 TO INCLUDE PHASE 2 AND 3 OF THE EMERGENCY OPERATIONS AND DISPATCH CENTER PROJECT,
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BACKGROUND: On April 1, 2014, the voters of Norman approved Ordinance O-1314-33, extending the dedicated ½% Public Safety Sales Tax (PSST) permanently (effective October 1, 2015). The ordinance directed that the 71 personnel added to the City public safety workforce by the original PSST Ordinance (O-0708-32, approved on May 13, 2008) be made permanent; 19 personnel be added over a period of four years (13 police officers to staff a School Resource Officer program; 4 additional Dispatchers; and 2 Emergency Vehicle Mechanics); and a program to replace or acquire Critical Public Safety Capital items needed be implemented. The Critical Public Safety Capital Needs were identified, in priority order, as follows:
Emergency Communication System Replacement - $15,000,000
Emergency Operations/Dispatch Center Facility - $6,500,000
Fire Apparatus Replacement Program - $6,800,000
Reconstruct/Relocate Fire Station #5 - $3,500,000
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TOTAL - $31,800,000
In discussions and presentations leading up to the approval of the PSST extension, the plan to finance the Emergency Communications (Radio) System and Emergency Operations Center (EOC) facilities through some type of debt issuance was discussed and acknowledged, due to the need to have those facilities functional before sufficient PSST revenues would accrue. Under this plan, available PSST Fund balance would be used as a partial “down payment” on the Communication System and EOC facilities, and PSST Fund balance would be used to pay for the fire apparatus and fire station 5 reconstruction on a pay-as-you-go basis, as funds became available after the Radio System and EOC were financed.
Subsequent to the passage of the PSST extension (“PSST II”), Fire Department staff presented to the City Manager and Council Finance Committee the immediate need to replace the most critical of the fire apparatus, a platform fire truck with an estimated cost of $ 1,100,000. The Police Department staff also presented the need to hire the School Resource Officer program personnel a year in advance of the time originally projected. It was predicted that the PSST Fund would be able to absorb these advanced expenses, but the amount of debt financing that will be required with this accelerated schedule will be increased. The Finance Department staff, in consultation with the City’s financial advisor and bond counsel teams, proposed a financing package, including the Emergency Communications System, the EOC/Dispatch Facility and the fire platform truck. This comprehensive financing package for the Critical Public Safety Capital needs was discussed and approved by the Council Finance Committee on February 12, 2015. Proposals from qualified local and regional banking institutions to provide approximately $22,825,000 in financing with a final maturity in 12 years, secured by a pledge of the PSST II proceeds, were solicited.
Responses in the form of interest rate proposals were received on March 10, 2015, and the lowest and best interest rate bid was forwarded for consideration to the Norman Municipal Authority (NMA) Trustees and Council. Information on the tabulated interest rate bid proposals was distributed at the meeting, as an attachment. The NMA Trustees and Council considered two resolutions. Several actions were accomplished by the resolutions. Resolution R-1415-90 was a Resolution of the NMA to issue the debt, and R-1415-91 was a resolution of the City of Norman authorizing the issuance of the debt by the NMA in an aggregate amount not to exceed $22,825,000. A funding source is in place to move forward with design and construction of the EOC.
During the budgeting processes, the City budgeted $500,000 in fiscal year 2015-2016 for design and another $6,000,000 in fiscal year 2016-2017 for construction of the Emergency Operation/Dispatch Center, which totals the $6,500,000 identified for the Emergency Operations/Dispatch Center in the original plan.
A Request for Qualifications (RFQ 1516-58) was issued on May 16, 2016 asking for firms to present their qualifications for the design of the Emergency Operations Center (EOC). A total of six firms submitted their qualifications for the EOC project. All six firms were scored by each member of the selection committee and two firms stood out from the others. These two firms were given the opportunity to present in person to the committee. Following the presentations, the Architects Design Group of Orlando, Florida was selected for this project.
The architectural/engineering project was planned to be completed in phases. Phase 1 included a detailed spatial needs assessment, analysis, master planning, site surveying, and a conceptual building design. The Council approved the Phase 1 contract (K-1617-69) with ADG in the amount of $150,030 on December 13, 2016. Phase 1 was finalized on December 7, 2017. The site at 3005 East Robinson was evaluated and it was determined the property could be used for this facility. A conceptual design was also completed and an estimation of cost to build in late 2018 came in right at the 6.5 million budgeted for this project. ADG has done a good job on the work performed in Phase 1. Phase 2 would include the schematic design and development, preparing construction documents, and assistance in bidding. Phase 3 would be construction oversight by the architectural firm.
At the time Council approved K-1617-69 for Phase 1, it was anticipated that Staff would come back with an amendment to the agreement when it was time to proceed with Phases 2 and 3. As noted, ADG has done a good job on the work performed in Phase 1. Because the additional phases, particularly Phase 2, are much more labor intensive, a significant increase in costs was expected with the addition of the services associated with Phases 2 and 3.
DISCUSSION: Because the Architects Design Group (ADG) has performed well in Phase 1, and as a way to provide continuity in the Project, Amendment One to Contract K-1617-69 would add the Phase 2 and 3 tasks. The negotiated cost of adding these Phases will increase the contract amount by $643,676. ADG will do the Phase 2 work and assist in bidding the job out and selecting a construction company to build the Emergency Operation/Dispatch Center. The recommended contract with the selected construction company will then be presented to the NMA/Council for approval. Once the construction contract is approved, construction will begin and ADG will provide construction oversight services.
RECOMMENDATION: It is recommended that the City Council approve Amendment No. One to Contract K-1617-69 between the City of Norman and the Architects Design Group for Phase 2 and 3 of the Emergency Operations/Dispatch Center. Funding is available in the Public Safety Sales Tax Fund, Emergency Operations Center, Design (account 015-9523-419.62-01; project BP0029).