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Gaithersburg seeks state funding for 12 South Summit as council awards ownersrep contract
Summary
City staff and its lobbying team briefed council on the Maryland General Assembly session and plans to pursue funding for 12 South Summit; council approved a not-to-exceed $366,450 contract with O'Connell and Lawrence to serve as the project's owner's representative for phase 1.
The Gaithersburg City Council on Jan. 21 heard a start-of-session report on the Maryland General Assembly and approved a professional services contract to support the city's 12 South Summit office build-out.
The presentation from Theresa Hessler, CEO of Ashler Government Relations, flagged a difficult fiscal outlook at the state level and a $3 billion projected shortfall that will shape negotiations this year. "This session looks a lot different from years prior, and it is due to a tough fiscal outlook and an overall uncertainty around what a new administration will mean for a blue state like Maryland," Hessler said, summarizing the environment AGR sees in Annapolis.
The city told council it will continue to track hundreds of bills and press for funding and statutory language favorable to municipal projects. The city is pursuing budget support and other legislative fixes for 12 South Summit Avenue and has asked AGR to work with district representatives on options for fiscal 2026 funding. Hessler pointed to specific bills the team is monitoring, noting the Transportation Investment Priorities Act (House Bill 20 / Senate Bill 198), Maryland Department of Planning modernization measures (House Bill 272 / Senate Bill 236) and a proposed change to legal-advertising rules (House Bill 74) as examples the city has already engaged on.
Council followed the legislative briefing with a procurement action tied to the same project. Brian Fields, acting public works director, asked the council to authorize a phase 1 owner's representative contract for the 12 South Summit interior office renovation. "Staff recommends awarding the phase 1 contract to O'Connell and Lawrence and not to exceed amount of $366,450," Fields told the council, saying the firm offered a local, experienced team with relevant CMAR (construction manager at risk) experience.
Fields said the owner's representative scope covers preconstruction services through 2025; phase 2, which would cover construction and closeout, is planned to finish in early 2027. The city received two price proposals after interviews; staff said the lower-priced bidder did not demonstrate sufficient hours or project understanding. Fields described the contract figure as a not-to-exceed sum and said additional tasks would be authorized only at the city's direction.
Council members asked about the level of effort and staffing for the owner's representative role. Fields said the contract equates to roughly one full-time-equivalent of consultant effort over the year and that the city must approve any key-staff changes the firm proposes. The resolution to authorize the phase 1 contract passed on a voice vote recorded as 5-0.
The presentation and contract discussion underline two parallel paths the city is pursuing: state-level funding and local procurement to advance the 12 South Summit project. City staff and AGR said they will continue to brief council as legislative developments and procurement milestones evolve.
Looking ahead, staff noted the CMAR procurement for construction management is advertised with proposals due Feb. 3 and a planned award coming back to council in late February. The project team structure will include separate contracts for the architect, the owner's representative and the CMAR.
Votes and next steps on funding remain contingent on the General Assembly's process and the city's continued coordination with its lobbying team and district lawmakers. The city will report updates to council as bills move and as the procurement process proceeds.
