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CHANGE ORDER NO. ONE TO CONTRACT K-1819-114: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SILVER STAR CONSTRUCTION COMPANY, INC., INCREASING THE CONTRACT AMOUNT BY $249,510.80 FOR A REVISED CONTRACT AMOUNT OF $1,669,138.30 FOR THE URBAN ASPHALT PAVEMENT REHABILITATION CAPITAL IMPROVEMENT PROJECT #2 (FYE 2017-2019), 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 (CIP) 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.
This project involves full-depth repairs to all streets as needed, followed by a 2-inch mill and inlay of new asphalt pavement. In order to complete the projects in a timely manner and get back on regular budget schedule, it was determined necessary to complete these projects using private contract services. The locations included in this project are:
• Rock Creek Road; 48th Ave NW - 72nd Ave NW (2018; project SC0602), 4.0 lane miles
• Whispering Hills North Addition (2018; project SC0603), 3.2 lane miles
• Whispering Hills South Addition (2017; project SC0605), 3.4 lane miles
• Oak Tree Apartment Addition (2019; project SC0640), 1.6 lane miles
• Hampton Court: 36th Ave NE - 3600 Hampton Ct (2019; project SC0642), 0.2 lane miles
• Hawthorne Place (2019; project SC0643), 1.2 lane miles
• Brookhaven Addition (2019; project SC0644), 2.4 lane miles
• Robinson St; W. 3294 to W. 3438 (2019; project SC0645), 1.5 lane miles
On April 23, 2019, City Council awarded the Streets CIP Urban Asphalt Pavement Repair Bid 2 Project (Contract K-1819-114) to Silver Star Construction Company, Inc. of Moore, Oklahoma in the amount of $1,419,627.50. The Engineer’s Estimate for the project was $1,468,737. The project budget was $1,472,586.
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, including Corrugated Metal Pipe, Curb and Gutter, Removal of Curb, and Milling. On this project, several items exceeded the estimated quantities, including Superpave Type S3 Asphalt and Superpave Type S4 Asphalt. Most of the quantity overruns are due to the unanticipated need for an asphalt-leveling course on Rock Creek Road and the addition of Indian Hills Road from 72nd Ave NE to 84th Ave NE to the scope of the project, to address asphalt maintenance needs. Maintenance of this portion of Indian Hills Road was planned to be completed by City crews; however, because the Contractor was working in the vicinity of this project and City crews were working through a backlog of projects, it was decided to add this portion of roadway to the scope. The project overruns result in a project cost increase of $249,510.80. A general summary of the changes is as follows:
East Rock Creek Road - $189,329.90
Indian Hills Road - $113,710.50
Other Increases/Decreases (Net) - ($53,529.60)
Total - $249,510.80
This Final Change Order No. 1 addresses the quantity changes, resulting in an increase of $249,510.80, increasing the total contract amount from $1,419,627.50 to $1,669,138.30 or 17.6%. A detailed summary is attached.
If approved, funds for this change order will be paid from the FYE 2021 Capital Budget. Funds are currently available in the Project SC0657, Rural Roads System Improvements Project, Franklin Road from 1400 W Franklin Rd to 12th NE, Materials (50596696-46301) and Project SC0665, Asphalt Paver Patching Project, Indian Hills from 72nd NE to 84th NE, Materials (50596692-46301). The Franklin Road project was completed in 2020 under budget. The Indian Hills project was completed with this contract. Please see the attached funding table.
If approved, the budget impact of this Change Order will be neutral because the FYE 2021 Capital Budget includes surplus funding for rural asphalt road maintenance due to savings on other projects. In other words, all rural asphalt road maintenance projects authorized by City Council in FYE 2021 will be completed.
RECOMMENDATION No. 1: Staff recommends that Change Order No. 1 increasing Contract K-1819-114 by $249,510.80 be approved.
RECOMMENDATION No. 2: Staff further recommends final acceptance of the Streets CIP Urban Asphalt Pavement Repair Bid 2 Project (Contract K-1819-114), and final payment in the amount of $83,456.93.
RECOMMENDATION No. 3: Staff further recommends approval of a transfer of funds in the amount of $83,456.93 from the Rural Roads System Improvements Project - Franklin Road from Project SC0657, 1400 W Franklin Rd to 12th Ave NE Materials (50596696-46301) to Project SC0602, Asphalt Pavement Maintenance Project, Rock Creek from 48th NW to 72nd NW, Construction (50595511-46101). The remaining funding in the amount of $166,053.87 was previously allocated from the Asphalt Paver Patching Project - Indian Hills Road from 72nd Ave NE to 84th Ave NE Materials Account (Org 50596692; Object 46301; Project SC0665).