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CONSIDERATION OF AWARDING BID-1920-37, THE NORMAN UTILITIES AUTHORITY’S APPROVAL OF CONTRACT K-1920-88 WITH WYNN CONSTRUCTION COMPANY, INC., IN THE AMOUNT OF $199,000; PERFORMANCE BOND B-1920-55; STATUTORY BOND B-1920-56; AND MAINTENANCE BOND MB-1920-28 FOR THE WATER RECLAMATION FACILITY WASTE SLUDGE BLOWER REPLACEMENT PROJECT; AUTHORIZING THE UTILITIES DIRECTOR TO PURCHASE MATERIALS ON BEHALF OF THE CONTRACTOR; AND BUDGET APPROPRIATION FROM THE WATER RECLAMATION FUND BALANCE.
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BACKGROUND: The Water Reclamation Facility (WRF) has used the two existing blowers to help process waste activated sludge (WAS) since 1987. The WAS is a byproduct of the biological treatment process which must be thickened, digested, de-watered and then finally disposed of through land application or disposal at the landfill. The blowers are required to agitate or mix the WAS stored within the holding tank at the WRF to allow the WAS to be processed by the thickening centrifuges. As such, the blowers are critical to the ongoing operation of the facility. The equipment is showing signs of failure warranting their immediate replacement. This project will replace both existing blowers and motors and will replace wiring over to the existing electrical panels. Replacement of the equipment was originally proposed through a direct quote from a contractor but the quote exceeded the regulatory amount necessitating the competitive bidding of the project.
DESCRIPTION: The Invitation to Bid for Bid-1920-37 for the WRF Waste Sludge Blower Replacement project was published in the Norman Transcript on December 5 and December 12, 2019. Five contractors attended the mandatory pre-bid meeting held on December 18, 2019. Bids were opened on January 23, 2020, and two contractors submitted bids. The bids were $199,000 and $274,000. Wynn Construction Co., Inc. was the low bid and the bid results are shown in the attached bid tabulation. Staff recommends award to Wynn Construction Co., Inc.
Funding for the replacement is proposed to be from the Water Reclamation Fund (032) from a budgeted account and a proposed appropriation from the fund balance. The FYE2020 budget in Plant & Operating Equipment/Other (32955246-45199) was set at $70,000 for this replacement with $69,817.59 still remaining. Additional funds for the project are proposed through appropriation from the Water Reclamation Fund (032) balance. To allow for minor modifications during construction, the proposed appropriation is $150,000. This would provide for a total replacement funding amount of $219,817.59 which would allow for a contingency of 10.46 percent.
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 NUA are also exempt from those taxes. A bidder and his subcontractors may exclude from their bid sales taxes on appropriate equipment, materials, and supplies that will not have to 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.
The equipment for the project will require approximately 12-16 weeks lead time. Once materials are received, work will progress immediately and will occur in short window of time to minimize downtime of operations.
RECOMMENDATION: Staff recommends the NUA accept bids meeting project specifications; award Bid-1920-37 to Wynn Construction Co., Inc. for WRF Waste Sludge Blower Replacement project in the amount of $199,000; approve Contract K-1920-88 and associated performance, statutory, and maintenance bonds in the amount of the bid; authorize execution of the contracts and bonds and the NUA to purchase equipment and supplies on behalf of the contractor for incorporation into the project; and appropriate $150,000 from the Water Reclamation Fund balance (32-29000) to Plant & Operating Equipment/Other (32955246-45199).