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CHANGE ORDER NO. ONE TO CONTRACT K-1415-91: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $105,454 FOR A REVISED CONTRACT PRICE OF $2,978,474 AND EXTENDING THE CONTRACT TIME BY 40 CALENDAR DAYS FOR THE SEWER MAINTENANCE PROJECT FYE 2013 AND BUDGET APPROPRIATION TO THE SEWER MAINTENANCE FUND BALANCE.
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BACKGROUND: In 2001, the citizens of Norman approved a five dollar per month sewer maintenance fee to provide for the systematic rehabilitation or replacement of aged and deteriorated sewer lines throughout our wastewater collection system. On March 24, 2015, the Norman Utilities Authority (NUA) approved Contract K-1415-91 with Urban Contractors, LLC (Urban) in the amount of $2,873,020 to replace sewer lines and manholes for the Sewer Maintenance Project FYE 2013 (SMP13). Construction began April 6, 2015, and is on schedule and within budget.
DESCRIPTION: As with any project of this scope, field adjustments and modifications are necessary. Two contract modifications, detailed below, are proposed as a part of this change order:
First, the Sewer Line Maintenance Division requested assistance on sewer system rehabilitation not in the project area; replacement of about 1,300 feet of sewer along Porter Avenue south of Rock Creek Road at an estimated cost of $83,350; see attached map. This work was delayed while staff acquired an easement needed to install new line. A companion agenda item addresses donation of that easement. NUA staff requested, and Urban agreed to replace those lines and manholes at the contract unit prices. The current contract bid prices create excellent value for supplementary work during the project. The estimated cost of sewer line replacement under this change order is about $65 per foot. Typical sewer replacement costs in the past have approached $100 per foot. Therefore, staff recommends the extra work at current project bid prices within the available budget. The cost increase for this work is about 3% of the contract amount. Additional work at the contract unit pricing is not subject to the 10% change order cap under the Oklahoma Competitive Bidding Act.
Second, on Walnut Road in southwestern Norman, a sewer main failure compounded by extreme rains during May caused a large cavity adjacent to a customer’s driveway. Staff requested and Urban agreed to repair the damage. Sandy soils and the wet conditions required extensive dewatering and extra shoring to overcome quicksand type conditions during the repair. Urban provided both dewatering equipment and extra shoring to complete the work. Staff believes the negotiated lump sum cost of $22,104 is fair, reasonable and appropriate for the extreme conditions encountered. The cost increase for this work is about 0.8% of the contract amount.
Additionally, Urban requested, and staff recommends approval of, a forty (40) calendar day time extension for completion of the extra work. In summary, proposed Change Order No. 1 will increase the contract amount by $105,454 from $2,873,020 to $2,978,474, or less than 4% of the contract amount, and extend the contract completion date by 40 calendar days from April 6, 2016 to May 15, 2016.
Approximately $1,217,501 is available in SMP13, Construction (account 321-9338-432.61-01; project WW0200), which is sufficient to fund the change order. However, staff recommends transfer of $1,000,000 in unencumbered funds from the Construction account to the Fund 321 Balance.
RECOMMENDATION: Recommend the NUA approve, and authorize the Chair to execute, Change Order No. 1 with Urban Contractors, L.L.C., increasing the contract amount by $105,454 to $2,978,474 and extending the contract time by 40 calendar days. Additionally, staff recommends that $1,000,000 in unencumbered funds in the Sewer Maintenance Fund, Fiscal Year 2013 Construction allocation (account 321-9338-432.61-01; project WW0200) be transferred to the Sewer Maintenance Fund Balance (account 321-0000-253.00-00).