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CHANGE ORDER NO. TWO TO CONTRACT K-1920-73: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND HORSESHOE CONSTRUCTION, INC., INCREASING THE CONTRACT AMOUNT BY $129,564 FOR A REVISED CONTRACT AMOUNT OF $2,925,725.25 AND ADDING 20 CALENDAR DAYS TO THE CONTRACT FOR THE FYE 2017 SEWER MAINTENANCE PROJECT AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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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 replacement of aged and deteriorating neighborhood sewer lines. The fiscal year 2016-2017 (FYE17) Sewer Maintenance Project (SMP17) study area is shown on the attached map. After extensive study by Norman Utilities Authority (NUA) staff of Sewer Line Maintenance Division and Utilities Engineering, the sanitary sewer lines within the study area were determined to require rehabilitation, replacement or repair due to pipes or appurtenances being in poor condition, or no action due to pipes and appurtenances being in good condition.
The SMP17 study area is generally bounded by Cavecreek Street to the north, Porter Avenue to the west, Rock Creek Road to the south, and 12th Avenue NE to the east. It will replace about 28,500 feet (about 5.7 miles) of old sewer lines and rehabilitate or replace 161 manholes. Generally, the selected contractor will install high-density polyethylene (HDPE) sewer pipe, primarily using the pipe-bursting technique. This technique allows long lengths of joint less HDPE piping to be pulled into the old pipe at manholes as it is expanded with the bursting tool. House sewer service connections are then re-connected to the new pipe; approximately 455 private residences will be affected.
Bids were opened on March 12, 2020 and Horseshoe Construction, Inc. (Horseshoe) of La Porte, Texas was the low bidder for the Base Bid at $2,796,161.25. On April 14, 2020, the NUA authorized award and approved Contract K-1920-73 with Horseshoe for $2,796,161.25. The contract time started April 27 with a work completion within 360 calendar days or by April 22, 2021. The NUA also approved a no cost Change Order No. 1 (CO#1) which adjusted the unit cost bid for two bid items. As of May 21, 2020, approximately 1,300 feet of sewer has been replaced.
DISCUSSION: Proposed CO#2 will add pipe bursting of approximately 1,000 feet of 12-inch sewer and nine service re-connections along Chautauqua Avenue north of Symmes Street (see attached map). Chautauqua Avenue was the dividing line between the FYE 2003 and FYE 2004 Sewer Maintenance Projects and this sewer was missed at that time. NUA staff recommends approval of CO#2 with Horseshoe totaling $129,564 for a revised contract amount of $2,925,725.25. This is a 4.6% increase to the contract amount; however, the majority of the increased cost utilizes existing unit prices and is therefore not subject to the 10% cap on change orders. The contract time will also be extended by 20 calendar days for a revised contract completion date of May 12, 2021. Note that Horseshoe has agreed to complete the work on Chautauqua prior to August 17, 2020 when student residents begin to return to the area.
The current year budget for the FYE 17 Sewer Maintenance Project includes an unencumbered balance of $160,873 in the Construction account (32193338-46101; project WW0307) and is adequate to fund CO#2. However, since the SMP17 project has just begun construction, staff recommends transfer of $130,000 from FYE 18 Sewer Maintenance Project Construction account (32193338-46101; WW0316) to the FYE 17 Sewer Maintenance Project Construction account (32193338-46101; WW0307); $963,000 is available for transfer.
STAFF RECOMMENDATIONS: Staff recommends that the NUA approve Change Order No. 2 with Horseshoe Construction, Inc. in the amount of $129,564 for the FYE 17 Sewer Maintenance Project to complete sewer pipe bursting along Chautauqua Avenue north of Symmes Street, and budget transfer of $130,000 from FYE 18 Sewer Maintenance Project, Construction (account 32193338-46101; project WW0316) to FYE 17 Sewer Maintenance Project, Construction (account 32193338-46101; project WW0307).