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CONSIDERATION OF AWARDING BID-2021-12, THE NORMAN MUNICIPAL AUTHORITY’S APPROVAL OF CONTRACT K-2021-10 WITH LANDMARK CONSTRUCTION GROUP, L.L.C., IN THE AMOUNT OF $2,327,300; PERFORMANCE BOND B-2021-15; STATUTORY BOND B-2021-16; MAINTENANCE BOND MB-2021-8 FOR THE HOUSEHOLD HAZARDOUS WASTE FACILITY AND CONTAINER MAINTENANCE FACILITY PROJECTS; AND BUDGET APPROPRIATION FROM THE SANITATION FUND BALANCE.
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BACKGROUND: Contract K-1920-15 was awarded to Studio Architecture on July 9, 2019, in the amount of $206,700 to proceed with the design, bidding, construction administration, and as-built services for the Sanitation Utility’s Hazardous Waste Facility, Truck Wash Facility and Container Maintenance Facility projects. Under this contract, a new truck wash facility, a new container maintenance facility, and a new household hazardous waste facility were to be designed to allow for the Sanitation and Environmental Services Divisions to more efficiently accomplish their mission. However, pursuant to the City taking over the public transit system in Norman and building a new vehicle proposed wash facility, the truck wash facility to be designed under this contract has been put on hold. The container maintenance facility and household hazardous waste facility were still designed pursuant to the contract. Amendment No. 1 for $15,000 was approved by the Norman Municipal Authority (NMA) on Feb 25, 2020, and authorized additional survey and additional paving modifications at the Transfer Station.
The new container maintenance facility will provide a safe, efficient building to allow for welding and painting of solid waste dumpsters and containers. The current facilities are inadequate and don’t meet industry standards for welding and painting operations. The proposed facility will be located north of the Water Reclamation Facility.
The new household hazardous waste facility will provide a safe, year-round disposal option for our citizens that is environmentally friendly. The current operation is an annual collection event where citizens can dispose of approved wastes that have been accumulated throughout the year. The new facility will not require citizens to store wastes throughout the year if not needed.
DISCUSSION: The Invitation to Bid for Bid-2021-12 for construction of the Household Hazardous Waste Facility and Container Maintenance Facility (Project SA0012 and SA0009) was published in the Norman Transcript on November 19 and November 26, 2020. A non-mandatory pre-bid conference was held on November 30, 2020. Bids were opened on December 17, 2020, and seven contractors submitted bids. The bids ranged from $2,254,000 to $2,698,000 for the base bid and $2,257,500 to $2,803,500 for the base bid plus alternates. Lippert Brothers was the apparent low bidder after bid opening. However, Lippert Brothers did not submit a bid as required for Alternate #2 and also requested that their bid be eliminated from consideration due to a bid error. Due to the request and the non-qualifying bid, the bid from Lippert Brothers was rejected. Therefore, the lowest responsive bidder for the project was Landmark Construction Group, LLC for base bid plus alternates in the amount of $2,327,300.
The base bid for the project exceeded the consultant’s estimate; however, the bid results were fairly close together indicating good, competitive bids that will not likely result in different results should the project be re-bid. Both staff and Studio (letter attached) recommend award to Landmark Construction Group, LLC for the base bid plus both alternates. Alternate #1 will provide a mechanical door opener for the paint area at the Container Maintenance Facility. Alternate #2 provides an incentive for the contractor to complete the Household Hazardous Waste Facility and associated improvements within 180 calendar days rather than the contract time of 240 calendar days.
Funding for the project is from the Sanitation Fund (031) with funding from two project accounts plus appropriations from the Sanitation Fund Balance into the two project accounts. Funding for the projects is proposed as follows:
• Household Hazardous Waste Facility, Construction (Account Org. 33999975, Object 46101; Project SA0012) - $809,900
• Requested Appropriation from Sanitation Fund Balance (33-29000) into Hazardous Waste Facility, Construction (Account Org. 33999975, Object 46101; Project SA0012) - $710,000
• Container Maintenance Facility, Construction (33999975-46101) - $782,650
• Requested Appropriation from Sanitation Fund Balance (33-29000) into Container Maintenance Facility, Construction (33999975-46101; Project SA0009) - $260,000
The total funding proposed is $2,562,550. This will provide approximately 9 percent contingency for the project.
The City of Norman is exempt from the payment of any sales or use taxes. Pursuant to Title 68 O.S., Section 1356 (10) and as allowed by Oklahoma Tax Commission Rules Part 27 Trust Authority 710:65-13-140, direct vendors to the NMA are also exempt from those taxes. A bidder and his subcontractors may exclude from their bid sales taxes on appropriate equipment, materials, and supplies that will not have to be paid while acting on behalf of the NMA. To minimize project costs, the NMA will make payment directly to vendors supplying equipment and materials for incorporation into the project.
Work on the project will commence in early 2021 after NMA approval of the contract and will continue for approximately eight months.
RECOMMENDATION: Staff recommends the NMA accept bids meeting project specifications; award Bid No. 2021-12 to Landmark Construction Group, LLC for Household Hazardous Waste Facility and Container Maintenance Facility (Projects SA0012 and SA0009, respectively) in the amount of $2,327,300; approve Contract K-2021-10 and associated performance, statutory, and maintenance bonds in the amount of the bid; authorize execution of the contracts and bonds and the NMA to purchase equipment and supplies on behalf of the contractor for incorporation into the project; and authorize appropriation of $710,000 from the Sanitation Fund Balance (33-29000) into Hazardous Waste Facility, Construction (Account 33999975-46101; Project SA0012) and appropriation of $260,000 from the Sanitation Fund Balance (33-29000) into Container Maintenance Facility, Construction (Account 33999975-46101; Project SA0009).