Title
AMENDMENT NO. TWO TO CONTRACT NO. K-0304-147: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND CP&Y, INC., (FORMERLY CHAING, PATEL & YERBY), IN AN AMOUNT NOT-TO-EXCEED $104,975 TO PROVIDE ADDITIONAL ENGINEERING SERVICES FOR THE SOUTHEAST BISHOP INTERCEPTOR PROJECT.
Body
BACKGROUND: The Norman Utilities Authority (NUA) adopted the Wastewater Master Plan (WWMP) on November 13, 2001. The WWMP proposed the enlargement of interceptors to meet obligated and future capacity demands. Obligated interceptor needs (as the sewer system existed in 2001), service to existing customers, and contractual obligations throughout Norman are funded by the Sewer Sales Tax (SST). Enlargement of interceptors (or new interceptors) to serve areas proposed for development under the Norman 2025 Land Use And Transportation Plan (in addition to system needs as of 2001) are funded by the Sewer Excise Tax on New Development (SET).
Request for Proposal No. RFP-0102-55 was forwarded to engineering consultants on June 11, 2002 and 22 proposals were received on July 9, 2002. On July 18, 2002, the review committee met and CP&Y was selected to design the SE Bishop Interceptor Project. The project was gradually split into four (4) construction projects to quickly serve developing areas and to stay ahead of developments. As described below, two of these construction projects are complete and one is nearing completion at this time (see map attached).
SE Bishop Interceptor Phase 1: Phase 1 (WW0268) served an expansion to the United States Postal Service (USPS) Training Center, the Summit Valley residential development to the east, and eliminated the former Postal Lift Station. On June 10, 2003, the NUA approved Contract No. K-0203-154 with CP&Y for Phase 1 design. The work included approximately 3,100 linear feet (LF) of 12-inch and 18-inch sewer. On September 23, 2003, the NUA approved Contract No. K-0304-41 with Matthews Trenching Company, Inc., for construction, which they completed February 16, 2004 at a cost of $371,930.
SE Bishop Interceptor Phase 2, Section 1: On March 23, 2004, the NUA approved Contract No. K-0304-147 in the amount of $104,166 with CP&Y for design of the remaining portions of the SE Bishop Interceptor, Phase 2 (WW0267). This contract contemplated all improvements in one construction contract. However, to stay ahead of the developments on the west side of Classen and south of Highway 9, on August 8, 2006, the NUA approved Contract No. K-0607-36 with Jordan Contractors, Inc. for construction of Phase 2, Section 1. The work consisted of approximately 2,300 LF of 18-inch and 24-inch sewer including boring under State Highway 9 and Classen Boulevard. Construction was completed on January 26, 2007 at a cost of $1,036,205.
SE Bishop Interceptor Phase 2, Section 2A and 2B: On October 24, 2006, the NUA approved Amendment No. 1 to Contract No. K-0304-147 with CP&Y in the amount of $18,535 for supplementary design of the aerial crossing over Bishop Creek. Section 2A includes approximately 2,400 LF of 24-inch sewer serving Eagle Cliff and Cobblestone Creek subdivisions and includes replacement of the existing aerial crossing of Bishop Creek west of 12th Avenue SE on Cedar Lane. Section 2B completes the work started in Phase 2, Section 1, and includes approximately 1,150 LF of 24-inch sewer north of Highway 9 and west of Classen Boulevard. Easement acquisition delayed bidding and construction of the work. On December 18, 2012, the NUA approved Contract No. K-1213-66 with Krapff-Reynolds Construction Company in the amount of $1,054,480 for construction, which is nearing completion at this time.
SE Bishop Interceptor Phase 2, Section 2C: The final phase of the project is Section 2C which consists of approximately 5,000 LF of 24-inch sewer located south of Highway 9 between the former Saxon Publishing facility and Classen Boulevard. This portion of the project has been delayed due to the need to acquire easements from the former Perfect Swing recreational facility. Acquisition of this easement is forthcoming shortly as a separate agenda item. Future construction cost of this segment is estimated at approximately $1 million.
DISCUSSION: As detailed in attached Amendment 2, CP&Y will be compensated for easement negotiation assistance, bidding and construction services for Sections 2A and 2B ($43,100), and to perform survey, re-design, bid and construction administration services for Section 2C ($61,875). Staff believes the negotiated contract increase of $104,975 is fair and reasonable and recommends approval. The revised contract amount for design of approximately $4 million in interceptor improvements will be $227,676, or less than six percent (6%) overall.
Funding for replacement of existing sewer interceptors is pro-rated based on the cross-sectional area for the obligated pipe diameter versus the pipe area for the full build-out (FBO) pipe diameter. The proposed amendment includes three line segments with differing funding shares as follows:
The funding for Section 2A is 39% Sewer Sales Tax (SST) and 61% Sewer Excise Tax (SET) based on an obligated diameter of 15 inches and a FBO diameter of 24 inches.
The funding for Section 2B is 56% SST and 44% SET based on an obligated diameter of 18 inches and a FBO diameter of 24 inches.
The funding for Section 2C is 25% SST and 75% SET based on an obligated diameter of 12 inches and a FBO diameter of 24 inches.
Based on pipe footage in each section, the proportionate funding share for Sections 2A and 2B combined is 45.5% SST and 55.5% SET. Thus, of the funding for the amendment increase of $43,100 for 2A and 2B, $19,180 is funded from SST and $23,920 is funded from SET. Of the funding for the amendment increase of $61,875 for Section 2C, $15,469 is funded from SST and $46,406 is funded from SET. Therefore, the overall cost share of the amendment is $34,649 SST and $70,326 SET.
The Fiscal Year Ending 2014 (FYE14) budget for SE Bishop Creek Interceptor, Phase 2 (project WW0267) includes an unencumbered balance of $34,649 for SST Design (account 323-9048-432.62-01) and $70,326 for SET Design (account 322-9048-432.62-01), which is sufficient to fund the amendment.
STAFF RECOMMENDATION: Recommend the NUA approve Amendment No. 2 to Contract No. K-0304-147 with CP&Y, Inc., in the amount of $104,975, and authorize the execution thereof.