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CONSIDERATION OF AWARDING OF BID 1718-8; CONTRACT K-1718-10 BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SILVER STAR CONSTRUCTION COMPANY, INC., IN THE AMOUNT OF $1,043,889.50; PERFORMANCE BOND B-1718-15; STATUTORY BOND B-1718-16, AND MAINTENANCE BOND MB-1718-8 AND ADOPTION OF RESOLUTION R-1718-7 GRANTING TAX EXEMPT STATUS FOR THE URBAN ASPHALT PAVEMENT REPAIR 2016 BOND PROGRAM, FYE 2018 LOCATIONS.
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BACKGROUND: In the Norman General Obligation Bond Election of April 2016, voters approved the Street Maintenance Bond Program. All bond projects are to be completed in five years under the approved program budget of $25,000,000. The program includes (4) four phases or categories of street maintenance projects as follows:
• Urban Asphalt Streets
• Urban Concrete Streets
• Rural Roads
• Urban Street Reconstruction
Locations throughout Norman to be maintained are determined prior to the bond election using the City’s pavement management system. The pavement management system uses field data to numerically rate each street in Norman. The streets with the lowest ranking are priority to be maintained. During each year of the 2016 Street Maintenance Bond Program the streets that were identified for that year will be maintained.
DISCUSSION: Bid specifications and documents were advertised on June 30, 2017 and July 6, 2017. Six (6) paving contractors received a set of bid documents. The bid opening was conducted on July 20, 2017, and three (3) contractors submitted bids. The lowest best bid in the amount of $1,043,889.50, was received from Silver Star Construction of Moore, Oklahoma. Silver Star Construction has successfully completed multiple projects in Norman. The low bid is less than the engineer’s estimate of $1,202,310 by $158,420.50 (13.18% percent). The average of the three (3) bids is $1,116,949.08.
There are 16 locations in seven (7) different neighborhoods that have been identified for the FYE 2018 urban asphalt street projects in the 2016 Street Maintenance Bond Program. A list of locations and associated maps are attached. The base bid for this project will complete all of FYE 2018 locations in the urban asphalt streets projects. If approved, construction will begin on these projects in early August 2017 and work will be complete by the end of January 2018.
Funds in the amount of $1,604,811 are available for the FYE 2018 urban asphalt streets projects in 2016 Street Maintenance Bond Program Account No. 050-9401-431.61-01 (Project BP0390 through BP0396).
RECOMMENDATION NO. 1: Staff has reviewed the bids and recommends that Bid 1718-8 for the Urban Asphalt Pavement Repair 2016 Bond Program, FYE 2018 Locations, be awarded to the low bidder, Silver Star Construction in the amount of $1,043,889.50.
RECOMMENDATION NO. 2: Staff further recommends that the following contract and bonds be approved:
Contract K-1718-10
Performance Bond B-1718-15
Statutory Bond B-1718-16
Maintenance Bond MB-1718-8
RECOMMENDATION NO. 3: Staff further recommends that, Resolution R-1718-7 be adopted authorizing Silver Star Construction as project agent.