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CONSIDERATION OF BID NO. 1314-14, APPROVAL OF CONTRACT K-1314-41 WITH SCOTT RICE IN THE AMOUNT OF $366,013.70 AND CHANGE ORDER NUMBER ONE DECREASING THE CONTRACT AMOUNT BY $74,734.39 FOR A REVISED CONTRACT AMOUNT OF $291,788.81, AND ADOPTION OF PROJECT AGENT RESOLUTION R-1314-22 FOR THE NORMAN PUBLIC LIBRARY FLOORING REPLACEMENT PROJECT, AND BUDGET APPROPRIATION.
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BACKGROUND: In a special election held on September 14, 1999, the citizens approved an authorization for General Obligation Bonds in the amount of $290,000 to help fund the replacement of carpet in the Library. Over the years, Staff and prior Councils have delayed issuance of bonds for the carpet replacement while they worked to secure additional General Obligation Bond funding, or other funding sources for other library improvements. Since 2009 the Library has received a total of $2.4 million in capital improvements; a new security system at a cost of $29,834, a new roof at a cost of $743,815, replacement of the HVAC system at a cost of $1.2 million, and replacement of the existing lighting system at a cost of $485,500. The existing carpet is over 13 years old and is in need of replacement.
Voter authorization to issue bonds for capital improvements remains valid until a Project is completed. After voters approve General Obligation Bond funding for the Animal Welfare Renovation Project, Council combined the issuance of the library bonds with the recent Animal Welfare Renovation Project bonds to minimize bond issuance fixed costs that would have been incurred if two separate Bond issuances had been utilized. To accomplish this savings, City Council adopted Resolution R-1112-103 in its meeting of January 24, 2012, to issue General Obligation Bonds in the amount of $290,000 for the replacement of the library flooring. After issuance costs were paid, $278,732 remains for the library flooring replacement project.
City and Library Staff worked with product manufacturing consultants to select a flooring product that would provide both long life and low maintenance. A resilient sheet vinyl flooring product that will have the look of a wood grain floor was selected for the high-traffic areas in the northern hallway entrance, Meeting Rooms A, B, and C, the Lowry Room, the children’s story-time and play areas, and the area around the circulation desk. Carpet was selected for the remaining portions of the library.
Plans and specifications for the project were prepared working with manufacturing consultants. Bids were advertised in the Norman Transcript and a mandatory pre-bid conference was held on August 19, 2013, with two vendors in attendance. Bids were opened on August 29, 2013, and two bids were received from Scott Rice and Design and Building Group, L.L.C. Both bids exceeded the available funds with the low bid being submitted by Scott Rice in the amount of $366,013.70.
DISCUSSION: If only funding from GO Bonds established in 1999 were to be utilized, staff was concerned whether funding would be adequate to complete the entire project. To give the City more flexibility in considering potential bids, a per-square-foot price was included in the bid specifications in the event the project scope needed to be reduced. Removing the “staff areas” from the Project would reduce the contract amount to $291,278.81 by reducing 11,996 square feet from the project @ $6.23 per square foot. Even with this reduction, the Project cost would still exceeded the available bond funds by $12,546.81.
A portion of the project and bid included removing the carpet on the columns throughout the library and replacing it with paint, which totaled $17,794.78 of the overall bid. The FYE 2014 Capital Budget includes a project in the amount of $50,000 to paint buildings within the Municipal Complex and Library. Utilizing a portion of those funds in the amount of $12,546.81 to cover a portion of the column painting would allow for replacement of all the flooring in all the public areas of the library and bring the project within budget constraints. Change Order One, reducing the contract amount by $74,735.39 would reduce the scope of the project to include flooring upgrade to only the “public areas” of the Library.
General Obligation Bonds were issued to provide funding for the project; however, appropriation of those funds into the project account is needed to complete the project. Bond proceeds are held in a separate cash account, namely 2012A GO Bond (050-0000-101.10-34). Funds in the amount of $278,732 need to be appropriated from Capital Fund Balance (account 050-0000-253.20-00) to Library Flooring Replacement, Construction (account 050-9365-419.61-01; project BP0015). Additional funds needed for a portion of the column painting are budgeted in Municipal Complex Painting, Construction (account 050-9677-419.61-01; project EF0169).
STAFF RECOMMENDATION: Staff recommends that the bids be accepted and the bid be awarded to Scott Rice; Contract K-1314-41 in the amount of $366,013.70 and Change Order One reducing the contract amount by $74,734.39 by for an amended contract amount of $291,278.81 be approved; the Mayor be authorized to sign the Performance, Statutory and Maintenance bonds securing performance and completion of the Project, contingent upon City Attorney approval of the bond forms; Resolution R-1314-22 be adopted; and funds in the amount of $278,732 be appropriated as stated above that will be combined with the funds from the Municipal Complex Painting Construction account as noted above to provide full funding for the Contract and the Project. .