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CONSIDERATION OF BID 1516-50, CONTRACT K-1516-122 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., IN THE AMOUNT OF $1,784,680; PERFORMANCE BOND B-1516-78; STATUTORY BOND B-1516-79, AND MAINTENANCE BOND MB-1516-61 FOR THE SEWER MAINTENANCE PROJECT FYE 2014, PHASE 1.
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BACKGROUND: In 2001, the citizens of Norman approved a five dollar per month maintenance fee providing for the systematic replacement of aged and deteriorating neighborhood sewer lines. The Sewer Maintenance Project FYE14 (SMP14) is rehabilitative in nature. Phase 1 is generally bounded by Robinson Street to the north, Sherry Avenue to the west, Denison Drive to the south, and Berry Road to the east. The project was bid in phases due to budget constraints. See attached map.
Phase 1 will replace about 25,100 feet (4.75 miles) of sewer lines and rehabilitate or replace about 120 manholes. The contractor will install high density polyethylene (HDPE) sewer pipe with a minimum diameter of eight inches (8”), primarily using the pipe-bursting technique.
DISCUSSION: An advertisement for bids was published in the Norman Transcript on February 25, and March 3, 2016. Project bids were opened on March 17, 2016. As shown on the attached Bid Tabulation, five (5) bids were received. Urban Contractors, LLC (Urban) was the low bidder at $1,784,680. Work should begin immediately with a contract completion time of 270 calendar days.
The current year budget for SMP14 includes an unencumbered balance of $1,898,000 for Construction (account 321-9338-432.61-01; project WW0202), which is sufficient to fund the Contract.
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 Norman Utilities Authority (NUA) are also exempt from those taxes. A contractor and his subcontractors may exclude from their cost sales taxes on appropriate equipment, materials, and supplies that need not be paid while acting on behalf of the NUA. To minimize project costs, the NUA will make payment directly to vendors supplying equipment and materials for incorporation into the project.
STAFF RECOMMENDATIONS: Staff recommends that the NUA accept bids and award the bid in the amount of $1,784,680 to Urban Contractors, L.L.C., as the best bidder meeting specifications; approve Contract K-1516-122 and the performance, statutory, and maintenance bonds, authorize the execution thereof; and the NUA as part of the contract to pay vendors for equipment and supplies in the same approximate amount for the Sewer Maintenance Project FYE 2014, Phase 1, and direct the filing of the bonds.