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CHANGE ORDER NO. TWO TO CONTRACT K-1516-43: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA; THE NORMAN UTILITIES AUTHORITY; AND MCKEE UTILITY CONTRACTORS, INC., INCREASING THE CONTRACT AMOUNT BY $233,198.71 FOR A REVISED CONTRACT AMOUNT OF $1,849,427.21 FOR THE BERRY ROAD WATER LINE REPLACEMENT PROJECT, PHASE 2, FINAL ACCEPTANCE OF THE PROJECT, AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: For many years, the Norman Utilities Authority (NUA) contemplated replacement of the 14-inch cast iron waterline along Berry Road from Robinson to Lindsey. This waterline was installed in the early 1940’s when North Base was a military facility; the waterline is in very poor condition resulting in lost water from numerous repairs, damage to the overlying roadway and inconveniences to the traveling public and the surrounding neighborhood. Similarly, the University of Oklahoma (OU) owns a 14-inch cast iron waterline generally along the east side of Berry Road from Robinson to Lindsey and then east along the north side of Lindsey to Chautauqua. Numerous repairs to the OU waterline have also occurred causing further disruption to the neighborhood.
Staff coordinated with OU and we each agreed to replace our 14-inch waterlines by constructing parallel to and directly adjacent to each other. This would allow them to be bid as one project reducing inconvenience to the public and achieve some cost savings through reduced excavation and reduced width of pavement repairs. The waterline improvements will be managed and paid by each entity under separate contract with the same contractor. Generally, 14-inch water piping is no longer available so the waterline was upsized to 16-inch PVC to increase flow capacity and improve system reliability by using a more common pipe diameter and material.
The Berry Waterline Replacement project (WA0305) was expected to include approximately 10,200 linear feet (LF) of 16-inch waterline along the west side of Berry Road from Robinson to Lindsey and approximately 3,000 LF of 24-inch waterline east along Lindsey to Chautauqua where it will connect to the 16-inch Lindsey Waterline project completed in 2005. The 24-inch waterline, included in Phase 1, is a continuation of the Segment D Waterline and part of an ongoing effort to upgrade the City’s water distribution system. Phase 2 includes the section from Avondale to north of Main St. with Phase 3 consisting of the section from Main to Robinson.
On May 10, 2011, the NUA approved Amendment No. 1 to Contract K-0910-61 authorizing Poe & Associates (Poe) to perform field surveying, preliminary design, final design and limited construction management services for the Berry Waterline Replacement for a total contract price of $172,000.
On March 10, 2015, the NUA approved Contract K-1415-70 with Central Contracting Services, Inc. for the construction of Phase 1 of the Berry Road Waterline Replacement project. Phase 1 construction was completed on August 24, 2015 at a cost of $1,334,675.
On September 22, 2015, the NUA approved Contract K-1516-43 with McKee Utility Contractors, Inc. (McKee) for the construction of Phase 2 of the Berry Road Waterline Replacement project in the amount of $1,206,023.50. On January 26 2016, Amendment No. 1 to the contract was approved making the City of Norman a party to the contract, and Change Order No. 1 adding 3,000 square yards (SY) of additional paving for the westernmost lane of Berry Road at a cost of $410,205 was approved by the City/NUA.
On September 22, 2015, the NUA approved Contract K-1516-80 with Central Contracting Services, Inc.; for the construction of Phase 3 of the Berry Road Waterline Replacement project in the amount of $1,767,030. Construction began May 2, 2016 with completion expected by December 27, 2016.
On January 26, 2016, Change Order No. One to Contract K-1516-43 increasing the contract amount by $410,205 for a revised contract amount of $1,616,228.50. added the rehabilitation of the full west lane of Berry Road to project. Amendment No. One to the contract was also approved at this time which added the City of Norman to the Norman Utilities Authority contract to provide a funding source for the road construction project.
DISCUSSION: The project work including waterline installations and roadway reconstruction was essentially complete and placed into service on April 22, 2016 prior to the contract end date of May 1, 2016. Minor cleanup activities continued after that date and are now complete.
Proposed Change Order No. 2 will reconcile as-bid to as-built quantities and incorporate several items of new work. As shown in the change order, the project cost will increase by a total of $233,198.71; Attachment 1 details the cost increase of $111,633.71 to reconcile as-bid to as-built quantities while Attachment 2 details the cost increase of $121,565.00 for new work. The reasoning for these over-runs is discussed below.
Reconcile as-bid to as-built quantities: the major increases relate to adding 84 small diameter bends to avoid underground obstacles when re-connecting to twenty-five (25) existing waterlines on both sides of Berry Road (bid items 35, 36 and 37 totaling $30,550); removal and replacement of additional concrete pavement, driveways and curbs (bid items 38, 39 and 40) totaling $124,122.50 which was mostly due to extending the work approximately 310 feet to the north of Main Street to minimize future construction activities for businesses in that area. As shown in Attachment 1, the net increase was $111,633.71 with $98,728.71 attributable to the NUA and $12,905 attributable to the City of Norman.
New Work: As shown in Attachment 2, the net increase was $121,565 or about 10% of the original bid amount. The major cost items were to directional drill 16-inch fusible PVC piping north-south under Main Street (100 feet costing $25,000) and east-west under Berry Road (280 feet costing $85,000) in lieu of open-cut trenching. Directional drilling was chosen to minimize the disruption to east-west traffic along Main Street and minimize the duration of road closures at the intersection of Berry and Main. Attachment 3 and 4 break down the lump sum costs for these two items. The remaining $11,565 in new work was to incorporate new unit prices for fittings not called out in the original bid schedule; these unit prices were negotiated with the contractor and are generally less the unit prices recently bid for the Lindsey Street Waterline Improvements.
The NUA portion of the additional work in the amount of $220,293.71 will be funded under project Berry Road Waterline Replacement, Construction (account 031-9521-462.61-01; project WB0305), which has a remaining balance of $158,094. To provide the remaining required funding, a minimum of $62,200 will need to be transferred from Project WB084, Segment D Waterline Improvements, Construction (031-9360-462.61-01) into Project WB0305, Berry Road Waterline Replacement, Construction (031-9521-462.61-01).
The additional work funded by the City of Norman in the amount of $12,905 will be funded by the Urban Asphalt Pavement Rehabilitation project. The FYE 2017 Budget for Project BP0241, Urban Asphalt Pavement Rehabilitation, Construction. (050-9401-431-61.01) has an unencumbered balance of $392,653. Adequate funds are available to fund the Public Works’ portion of Change Order No. 2 in the amount of $12,905.
RECOMMENDATION: It is recommended that the City of Norman and the Norman Utilities Authority approve Change Order No. 2 to Contract K-1516-43 with McKee Utility Contractors, Inc. increasing the contract amount by $233,198.71 for a revised contract amount of $1,849,427.21. It is also recommended that $65,000 be transferred from Segment D Waterline Improvements, Construction (account 031-9360-462.61-01; project WB0184) into Berry Road Waterline Replacement, Construction (account 031-9521-462.61-01; project WB0305).
Lastly, it is recommended that the City of Norman and the Norman Utilities Authority accept the Berry Waterline Replacement project, Phase 2 and authorize final payment in the amount of $244,027.25 to McKee Utility Contractors, Inc.