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CONSIDERATION OF AWARDING BID 1819-79, APPROVING CONTRACT K-1819-148 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND SOUTHWEST WATER WORKS, LLC., IN THE AMOUNT OF $828,112; FOR THE PARSONS ADDITION WATER LINE PROJECT WITH PERFORMANCE BOND B-1819-100, STATUTORY BOND B-1819-101, AND MAINTENANCE BOND MB-1819-73; AUTHORIZING THE UTILITIES DIRECTOR TO PURCHASE MATERIALS ON BEHALF OF THE CONTRACTOR; AND AUTHORIZING TRANSFER OF PROJECT FUNDS.
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BACKGROUND: The Parsons Addition is located west of the University of Oklahoma campus. The Parsons Addition Waterline (WL) Phase I Replacement project will replace approximately 4,500 linear feet (LF) of 4-inch and 6-inch diameter cast iron water line with 8-inch polyvinyl chloride (PVC) water line. Additional fire hydrants will be added as part of the project as well as new water meters. The project extent is along Flood and Lahoma from Lindsey to Brooks; and along Brooks and Parsons from Flood to Chautauqua, as shown on the attached project map.
On December 11, 2018, the Norman Utilities Authority (NUA) approved an engineering contract with Cabbiness Engineering (Cabbiness) for the project. Cabbiness prepared a technical design memo describing the complexities of the project in an established neighborhood with large trees lining the streets. The question was whether to install new water line under the sidewalks and provide new sidewalk or install within the street and minimize damage to large trees. On April 10, 2019, staff and consultant met with the affected residents at McKinley Elementary. The majority of those in attendance asked that the replacement water lines be installed within the street and not under the sidewalk. The consensus was that even though new sidewalks were beneficial, there was too much concern regarding the potential to damage tree roots.
DESCRIPTION: The advertisement for bids was published in the Norman Transcript on May 23, 2019 and May 30, 2019. Seven contractors attended the mandatory pre-bid meeting held June 6, 2019. Project bids were opened on June 13, 2019 and two (2) bids were received from the potential bidders. Southwest Water Works, LLC of Oklahoma City, Oklahoma was the low bidder at $828,112. The bid results are shown in the attached letter from Cabbiness Engineering; the engineering estimate was $1,052,083. Both staff and Cabbiness Engineering recommend award to Southwest Water Works, LLC.
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 to Southwest Water Works, LLC for incorporation into the project.
The Fiscal Year Ending 2019 (FYE19) budget for Parsons Addition Water Line includes an unencumbered balance of $731,000 in Water Distribution System, Construction (account 031-9360-462.61-01). To fully fund the project, staff recommends transferring unencumbered funds in the amount of $150,000 from Waterline Segment D, Phase IV, Land (account 031-9360-462.60-01; project WA0239). Land (Right-of-Way) funds are available since the University of Oklahoma donated required water line easements. With this transfer, contingency funds totaling $52,888 or 6.4% of the contract will be available if needed.
Work should begin within two weeks after NUA approval of the contract and will continue for approximately six months. Assuming start in July, the project should be complete by December 2019.
RECOMMENDATION: Staff recommends the NUA award Bid 1819-79 to Southwest Water Works LLC for the Parsons Addition Waterline Phase I Replacement project in the amount of $828,112; approve Contract K-1819-148 and associated performance, statutory, and maintenance bonds in the amount of the bid; and authorize the NUA to purchase equipment and supplies of behalf the contractor for incorporation into the project. Staff also recommends a fund transfer in the amount of $150,000 from Land (account 031-9360-462.60-01; project WA0239) to Construction (account 031-9360-462.61-01; project, WA0246).