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CHANGE ORDER NO. ONE TO CONTRACT K-1920-8: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SILVER STAR CONSTRUCTION COMPANY, INC., INCREASING THE CONTRACT AMOUNT BY $65,013 FOR A REVISED CONTRACT AMOUNT OF $1,505,013 FOR THE URBAN ASPHALT PAVEMENT PROJECT, FYE 2020 LOCATIONS, AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: In the Norman General Obligation Bond Election of 2016, voters approved the Street Maintenance Bond Program, a 5-year, 4-phase program to address maintenance needs on neighborhood streets. The four categories include (1) Urban Asphalt Street Rehabilitation, (2) Urban Concrete Street Rehabilitation, (3) Urban Road Reconstruction and (4) Rural Road Rehabilitation. Prior to the election, the City provided a list of all streets included in the program based upon pavement condition data from the City’s current Pavement Management System. The following is the list of the FYE 2020 Urban Asphalt Pavement project locations:
• White Oak Circle - Oakhurst Ave. to E 2200 Block
• Eufaula Street - Chautauqua Ave. to BNSF RR
• Tonhawa Street - Jones Ave. to Ponca Ave.
• Clearwater Drive. - Lindsey St. to Wheatland Dr.
• Hallbrooke Court. - Hallbrooke Dr. to E 2200 Block
• Bates Way - Reagan Cir. To Bates Ct.
• Ithaca Drive - Marymount Rd. to Bates Way
• Reagan Court - Hallbrooke Dr. to Bates Ct.
• Halifax Way - Porter Ave. to Ridgefield Dr.
• Highland Village Dr. - Porter Ave. to Timbershadow Dr.
• Pecan Valley - Marbel Dr. to Marbel Dr.
• Astor Dr. - 36th Ave. NW to Bishops Dr.
• Tonhawa St. - University Blvd. to Lahoma Ave.
• Tonhawa St. - Flood Ave. to Lahoma Ave.
• Live Oak Dr. - Walnut Rd. to End
The asphalt roadways included in this project are located in established residential neighborhoods. The asphalt pavement was in poor condition. This project involved rehabilitation of the existing pavement including milling, deep patching, overlaying with new asphalt, and crack sealing.
Bid documents and specifications for the Street Maintenance Bond Program - Urban Asphalt Pavement FYE 2020 Locations Project were advertised on July 4, 2019 and July 11, 2019 in accordance with state law. Three (3) asphalt contractors received bid documents and attended the pre-bid meeting, for this project. However, only one (1) bid was received on July 25, 2019. Feedback from the other two (2) asphalt contractors indicated that they did not submit bids for this project due to their current workload and scheduling.
On August 27, 2019, City Council awarded the Street Maintenance Bond Program - Urban Asphalt Pavement, FYE 2020 Locations (Contract K-1920-8) to Silver Star Construction Company, Inc. of Moore, Oklahoma in the amount of $1,440,000. The Engineer’s Estimate for the project was $1,610,523.
DISCUSSION: Construction projects are awarded to the lowest responsible bidder. Contractor bids are determined using plan quantities multiplied by the contractor’s unit prices for all bid items of the contract. The total of all of these costs represents the contractor’s bid. During construction, each quantity is verified in the field and the contractor is to be reimbursed, based on the actual quantity used. On this project, several items underran the estimated quantities, including Superpave Type S3 Asphalt, Stabilized Subgrade, Driveway Concrete and Sidewalk Ramps. On this project, several items exceeded the estimated quantities, including Superpave Type S4 Asphalt and milling.
This Final Change Order No. 1 addresses the quantity changes, resulting in an increase of $65,013, increasing the total contract amount from $1,440,000 to $1,505,013 or 4.5%. The majority of the quantity changes include additional asphalt required at various locations, and are attributable to differences in field quantities versus the estimated quantities. There were unforeseen changes that had to be addressed in the field in order to ensure quality pavement repair.
The budget for the Street Maintenance Bond Program - Urban Asphalt Pavement, FYE 2020 Locations was $1,610,523. Bids for this project came in well below budget, with the Contract K-1920-8 in the amount of $1,440,000. If approved, the surplus funds will be utilized to fund this change order. Even with these changes, this project is coming in 6.6% under budget. Said funds are currently available in the Street Maintenance Bond Urban Asphalt Project, Crystal Springs Addition (50594401-46101, BP0441). Please see the attached funding table.
RECOMMENDATION NO. 1: Staff recommends approval of Change Order No. 1 to Contract K-1920-8 for the Street Maintenance Bond Program - Urban Asphalt Pavement, FYE 2020 Locations Project, increasing Contract K-1920-8 by $65,013.
RECOMMENDATION NO. 2: Staff further recommends final acceptance of the Street Maintenance Bond Program - Urban Asphalt Pavement, FYE 2020 Locations Project, Contract K-1920-8, and final payment in the amount of $75,250.65.