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CHANGE ORDER NO. TWO TO CONTRACT K-1819-113: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SILVER STAR CONSTRUCTION COMPANY, INC., INCREASING THE CONTRACT AMOUNT BY $206,335.28 FOR A REVISED CONTRACT AMOUNT OF $1,729,119.28 FOR THE URBAN ASPHALT PAVEMENT REPAIR CAPITAL IMPROVEMENT PROJECT #1 (2015, 2016, AND 2019), FINAL ACCEPTANCE OF THE PROJECT AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: The City of Norman funds a portion of its annual asphalt street repairs through the City’s Capital Improvement Program Budget. Other asphalt street repairs are also conducted in Norman using funds from the Street Maintenance Bond Program and the City’s General Fund. Locations are chosen using the City’s Pavement Management System (PMS) and visual inspections. Repairs are made by both City of Norman employees and qualified paving contractors.
The Streets CIP Urban Asphalt Pavement Repair Project #1 involved a 2-inch mill and inlay of new asphalt pavement on existing residential streets. In order to complete the projects in a timely manner, it was determined necessary to complete these projects using private contract services. The locations included in this project were:
Haddock Street from Peters Avenue to Crawford Avenue (2015; project SC0104)
36th Avenue NE from Alameda Street to Robinson Street (2016; project SC0581)
Park Drive from Symmes Street to Elm Avenue (2016; project SC0585)
Fountaingate Addition (2019; project SC0641)
Berkeley Addition (2019; project SC0646)
108th Avenue NE from Franklin Road to Stella-Road (2016; project BP0397)
On April 23, 2019, City Council awarded the Streets CIP Urban Asphalt Pavement Repair Project #1 contract K-1819-113 to Silver Star Construction, Inc. of Moore, Oklahoma in the amount of $1,309,150.00.
On May 12, 2020, City Council approved Change Order No. 1 to Contract No. K-1819-113 between the City of Norman and Silver Star Construction, Inc. for the Streets CIP Urban Asphalt Pavement Repair Project #1, increasing Contract K-1819-113 by $206,335.28. This Change Order addressed additional repair of Haddock Street from Peters Avenue to Crawford Avenue, from a mill and inlay to a full reconstruct due to subgrade failure.
DISCUSSION: Construction projects are awarded to the lowest responsible bidder. Contractor bids are determined using plan quantities multiplied by the contractor’s unit prices for all bid items of the contract. The total of all of these costs represents the contractor’s bid. During construction, each quantity is verified in the field and the contractor is to be reimbursed, based on the actual quantity used. On this project, several items underran the estimated quantities, curb and gutter, removal of curb, tack coat, superpave type S3 asphalt and milling. On this project, several items exceeded the estimated quantities, including superpave type S4 asphalt and type A ODOT aggregate base. In addition to the quantity overruns, several additional items were needed on this project including pipe removal, class C end treatment, grade to drain, 6” CKD stabilization, petro tack and 72” pipe install. Most of the quantity overruns are due to the unanticipated need for subgrade and drainage structure repairs and differing site conditions. The 36th Avenue NE from Alameda Street to Robinson Street project was originally planned as an asphalt overlay project; however the roadway asphalt and subgrade had degraded severely over recent years. The subgrade had failed, and could not be addressed utilizing deep patching, but instead required stabilization and reconstruction of the street.
This Final Change Order No. 2 addresses the quantity changes, resulting in an increase of $213,634.00, increasing the total contract amount from $1,515,485.28 to $1,729,119.28 or 14.1%.
If approved, funds for this change order will be paid using savings on the following completed asphalt street maintenance projects:
• SC0665 Indian Hills Rd from 72nd Ave NE to 84th Ave NE
• SC0606 24th Ave SE from Hwy 77 to new pavement
• SC0624 60th Ave SE from Hwy 9 to Cedar Lane
• SC0625 Indian Hills Rd from 12th Ave NE to 24th Ave NE
• SC0633 96th Ave SE from Post Oak Rd to Etowah Rd
• SC0657 Franklin Rd from 1400 W Franklin Rd to 12th Ave NE
If approved, the budget impact of this Change Order will be neutral because the FYE 2021 Capital Budget includes surplus funding for asphalt road maintenance due to savings on other projects. In other words, all asphalt road maintenance projects authorized by City Council in FYE 2021 will be completed. Please see attached funding table.
RECOMMENDATION No. 1: Staff recommends that Change Order No. 2 increasing Contract K-1819-113 by $213,634.00 be approved.
RECOMMENDATION No. 2: Staff further recommends final acceptance of the Streets CIP Urban Asphalt Pavement Repair Project 1 (Contract K-1819-113), and final payment in the amount of $86,456.02.
RECOMMENDATION No. 3: Staff further recommends approval of a transfer of funds in the amount of $86,456.02 from the Project SC0657, Rural Roads System Improvements Project, Franklin from 1400 W Franklin Rd to 12th Ave NE, materials (50596696-46301) to the Project SC0581, Asphalt Pavement Maintenance Project, 36th Ave NE from Alameda to Robinson. Construction (50595511-46101). The remaining funding in the amount of $127,177.98 was previously allocated from the Asphalt Paver Patch Projects (50596692-46301, SC0665, SC0606, SC0624, SC0625) and the Rural Roads Projects (50596696-46301, SC0633).