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CHANGE ORDER NO. ONE TO CONTRACT K-1819-125: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND CENTRAL CONTRACTING SERVICES, INC., INCREASING THE CONTRACT AMOUNT BY $193,130 FOR A REVISED CONTRACT AMOUNT OF $3,038,721 AND EXTENDING THE CONTRACT TIME BY 90 CALENDAR DAYS TO CONSTRUCT WATER LINE REPLACEMENTS GENERALLY ALONG THE WEST SIDE OF CLASSEN BOULEVARD AND EXTENDING APPROXIMATELY 500 FEET NORTH FROM STATE HIGHWAY 9.
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BACKGROUND: The Robinson Water Line Replacement project will ultimately replace over 6 miles of 16, 24 and 30-inch deteriorated and undersized waterlines between the Brookhaven Elevated Water Storage Tank and the Water Treatment Plant (WTP). This waterline (WL) has had numerous leaks resulting in significant loss of water and damage to the overlying or adjacent roadway. Repairs to this large diameter WL are very expensive, time consuming for Norman Utilities Authority (NUA) and Norman Public Works staff and are disruptive to traffic in the area as repairs are completed.
The Robinson Waterline Replacement Phase II project will include approximately 3,900 feet of 30-inch, 130 feet of 24-inch, 120 feet of 16-inch and 600 feet of 12-inch and smaller waterline and appurtenances, as well as numerous reconnections to existing waterlines at 36th Avenue NW; the project will also include reconstruction of about 2,900 feet of paving in the southern-most east bound lane of Robinson for the full extent of the project. Phase II is the second of 6 phases and Central Contracting Services, Inc. (Central) of Norman was the low bidder at $2,845,591 and the engineer’s estimate was $3,304,750. On March 26, 2019, the NUA approved Contract K-1819-125 with Central for $2,845,591. The waterline installation has crossed Brookhaven Creek and 36th Avenue NW is now proceeding west of Brookhaven Boulevard and is about 65% complete.
Since staff received good bid prices for the Phase II project, it is intended to utilize these unit prices for aiding the current On-Cue installation located at Highway 9 and Classen Boulevard.
DISCUSSION: Proposed Change Order No. 1 to the Phase II project will allow installation of approximately 520 feet of new WL located NW of State Highway 9 and Classen Boulevard adjacent to new On-Cue Convenience Store. This WL replacement work was envisioned as a part of Project WA0338, Classen-Flood Waterline; however, due to Water Fund budget restraints, this project was not contemplated for construction until after July 2023 per the 5-year Capital Improvement Project (CIP) budget. The Robinson WL Replacement Phase II project can be utilized for the change order work as the unit prices are included in existing Contract K-1819-125 with Central.
The construction of the roadway improvements for the new On-Cue Convenience Store has made future maintenance of the adjacent waterline more difficult. Additionally, though staff expects to replace this line in FYE24, the future NUA project would be more expensive and construction could cause unintended disruptions to the On-Cue. For that reason, it is imperative that replacement of 520 feet of 16-inch, 24-inch and 30-inch water transmission line adjacent to the On-Cue property be completed as soon as possible. After several meetings with On-Cue staff, On-Cue has offered to pay the NUA $50,000 to offset some of these costs, which will be deposited into the NUA’s Water Fund. If the change order is approved, the NUA will choose to upsize approximately 360 feet of existing 24-inch WL to 30-inch WL.
As shown in the change order, the overall project cost will increase by a total of $193,130 to $3,038,721 or approximately 6.8% over the original contract amount. The State Competitive Bidding Act allows processing of change orders up to 10% of the original contract amount or $284,559; however, increases associated with unit price bid items are exempted from this maximum amount. The contract time will also increase by ninety (90) calendar days to allow Central to acquire materials and complete the additional work.
The Fiscal Year Ending 2020 (FYE20) budget for Classen-Flood Waterline (WA0338) currently includes an unencumbered balance of $706,000 in Construction (account 31996683-46101). These construction funds were budgeted for replacement of the 16-inch WL along the future James Garner Avenue between the new Main Library and the proposed interconnection on Flood north of Robinson. Assuming change order approval, we anticipate waterline construction to begin in April 2020.
RECOMMENDATION: It is recommended that the NUA approve Change Order No. 1 to Contract K-1819-125 with Central Contracting Services, Inc. increasing the contract amount by $193,930 for a revised contract amount of $3,038,721 and extending the contract time by ninety calendar days.