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CHANGE ORDER NO. ONE TO CONTRACT K-1314-119: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND MATTHEWS TRENCHING COMPANY, INC., INCREASING THE CONTRACT AMOUNT BY $58,225 FOR A REVISED CONTRACT AMOUNT OF $1,056,100 FOR THE INTERSTATE 35 WATERLINE RELOCATIONS PROJECT AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: As part of the widening of Interstate 35 (I-35), three waterline crossings owned by the Norman Utilities Authority (NUA) were required to be lowered as directed by the Oklahoma Department of Transportation (ODOT). The Interstate 35 (I-35) Waterline Relocations project (WA0196) will relocate these existing waterlines because they are within four vertical feet of a proposed roadway improvement. Generally, this clearance is required to ensure that existing utilities do not impact the roadway construction. Any utility, such as telephone, electric, gas, cable as well as water and sewer utilities operated by the NUA, must be relocated to provide the required clearance.
On November 22, 2013, the NUA authorized the I-35 Waterline Relocations project (WA0196) and approved design Contract K-1314-66 with SAIC. On March 25, 2014, the NUA approved two Utility Relocation Agreements with ODOT setting forth requirements for performing the relocations and obtaining reimbursement. Contract K-1314-130 is for Waterline A and Contract K-1314-131 is for Waterlines B and C. The NUA will design, bid and construct the work and be reimbursed by ODOT upon completion of their final audit; to date, ODOT has reimbursed $840,780 to the NUA.
DISCUSSION: The advertisement for bids was published in the Norman Transcript and bids were received from three contractors on May 22, 2014. Matthews Trenching Company, Inc. (Matthews) of Oklahoma City was the low bidder at $997,875. On June 10, 2014, the NUA authorized award of the bid and approved Contract K-1314-119 with Matthews in the amount of $997,875. Due to compressed time constraints imposed by ODOT, the contract time began June 11, 2014 and was to be complete by September 1, 2014.
As illustrated on the attached map, the project achieved the following:
1. Waterline A crossing Highway 9 at 24th Avenue SW with a 12-inch waterline and 24-inch steel casing at an estimated construction cost of $158,500;
2. Waterlines B and C crossing I-35 at Briggs with a 24-inch waterline and 36-inch steel casing, and at Brooks with a 12-inch waterline and 24-inch steel casing with a total estimated construction cost of $839,375.
During the project construction, several changes were required or implemented to provide a better operating system. Additionally, the final reconciliation of "as-bid" to "as-built" quantities were quantified at project completion resulting in a net cost increase of $58,225 or about 5.8% of the original contract amount. A brief description of each change is described below:
Waterline A, ODOT Relocation Agreement 3, 24th Avenue SW Waterline Crossing, net increase of $1,310:
· Bid items 1 and 4: extended 24-inch steel casing by 20 feet and with resulting decrease of 20 feet 12-inch open trench piping for cost increase of $5,300;
· Bid item 19: added one 12-inch gate valve required on south side of 24th Avenue SW crossing for cost increase of $4,500;
· Bid Items 27 and 29: deleted 57 square yards (SY) concrete street replacement and 21 feet concrete curb and gutter replacement at NW corner of 24th Avenue SW for cost decrease of $8,490.
Waterline B, ODOT Relocation Agreement 2, Briggs Waterline Crossing, net increase of $45,415:
· Bid items 2, 3 and 7: minor adjustments to 24-inch and 30-inch piping for cost decrease of $4,700;
· Bid item 12: added one 12-inch 90-degree bend on flushing hydrant for cost increase of $1,600;
· Bid Item 26: deleted two un-needed service reconnections for cost decrease of $3,500;
· Bid Item 28: added 495 SY asphalt pavement repair in alley at Sooner Legends Hotel and in parking lot of David Stanley Chevrolet for cost increase of $37,125;
· Bid Item 30: added 5,978 SY bermuda sodding to re-establish vegetation in soil stockpile areas and erosion control for a cost increase of $14,890.
Waterline C, ODOT Relocation Agreement 2, Brooks Waterline Crossing, net increase of $11,500:
· Bid items 8 and 14: added one fire hydrant, one 12-inch gate valve and one 12-inch x 6-inch tee for flushing purposes at Station 9+30 (approximate) for cost increase of $11,500;
· Bid items 10 and 11: minor adjustments to 12-inch fittings with no cost change;
Sodding and other cleanup work continued after August 28, 2014 when all waterlines were substantially complete and were placed into service. Final cleanup is complete and the I-35 Waterline Relocations project is acceptable to the Department of Utilities. Utilities staff would like to commend Matthews for ensuring the work met pressure and bacteriological testing requirements initially without the need to perform additional testing and completing the project within the very tight schedule imposed by ODOT.
The Fiscal Year Ending (FYE) 2015 budget includes unencumbered funds of $59,238 in I-35 Waterline Relocations Construction (project WA0196; account 031-9727-462.61-01). The net effect of the change order is a net increase of $58,225 or about 5.8% of the original contract amount. Additionally, staff will submit construction reimbursement requests totaling $215,320 in the near future to ODOT.
Upon approval of Change Order No. 1, the contract amount will be increased from $997,875 to $1,056,100 while contract completion date will remain unchanged. Staff recommends approval of Final Change Order No. 1, acceptance of the I-35 Waterline Relocations project and authorization to make final payment of $59,225 to the contractor.
RECOMMENDATION 1: Staff recommends the NUA approve Final Change Order No. 1 with Matthews Trenching Company, Inc. increasing the contract amount by $58,225 to $1,056,100.
RECOMMENDATION 2: Staff also recommends that the NUA accept of the I-35 Waterline Relocations and authorize final payment in the amount of $59,225 to the contractor.