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CHANGE ORDER NO. THREE TO CONTRACT K-1516-80: WITH CENTRAL CONTRACTING SERVICES, INC. INCREASING THE CONTRACT AMOUNT BY $524,300 FOR A REVISED CONTRACT AMOUNT OF $2,517,690 ADDING THE MAIN STREET WATER LINE BETWEEN PARK DRIVE AND JAMES GARNER AVENUE AND ADDING 81 CALENDAR DAYS TO THE CONTRACT FOR THE BERRY ROAD WATERLINE REPLACEMENT PROJECT, PHASE 3 AND BUDGET APPROPRIATION FROM THE WATER FUND.
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BACKGROUND: The Berry Waterline Replacement project (WA/WB0305) was expected to include about 11,000 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 from Berry to Chautauqua where it will connect to the existing 16-inch Lindsey Waterline project completed in 2005.
On May 10, 2011, the NUA approved Amendment No. 1 to Contract K-0910-61 in the amount of $172,000 authorizing Poe & Associates (Poe) to perform surveying, design and limited construction management services for the Berry Waterline Replacement project.
On March 10, 2015, the NUA approved Contract K-1415-70 in the amount of $1,334,675 with Central Contracting Services, Inc. for the construction of the Berry Road Waterline Replacement, Phase 1. The Phase 1 project included the 24-inch line along Lindsey from Berry to Chautauqua as a continuation of the Segment D Waterline. The Phase 1 construction was complete 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. in the amount of $1,206,023.50 for the construction of the Berry Road Waterline Replacement, Phase 2. The Phase 2 project includes the 16-inch waterline from Avondale to just north of Main Street. On January 26, 2016, the NUA and the City of Norman (City) approved Amendment No. 1 to the contract including the City as a party to the contract and also approved Change Order No. 1 (CO#1) expanding road repairs to the full west lane of Berry Road; CO#1 increased the contract amount by $410,205 for a revised contract amount of $1,616,228.50. The Phase 2 construction was complete on April 22, 2016 at a cost of $1,849,427.21.
On February 23, 2016, the NUA/City of Norman approved Contract K-1516-80 in the amount of $1,470,680 with Central Contracting Services, Inc. (Central) for the construction of the Berry Road Waterline Replacement, Phase 3. The Phase 3 construction was to include about 5,300 LF of 16-inch waterline from Main Street to Robinson Street and will also replace of the westernmost lane of Berry Road; the project began May 2, 2016 and was scheduled to be complete October 29, 2016. Central will also replace the OU 16-inch line under separate contract.
On May 10, 2016, the NUA approved CO#1 to Contract K-1516-80 authorizing replacement of approximately 1,800 feet of deteriorated 12-inch ductile iron pipe (DIP) waterline with 16-inch polyvinyl chloride (PVC) waterline along the south side of Main Street between Berry Road and Flood Avenue. CO#1 also increased the contract time by 90 calendar days for a revised completion date of January 27, 2017; this work is now complete. The revised NUA share was $1,545,095 while the City of Norman share remains at $221,935 for a total of $1,767,030. The southern lane of Main Street was also replaced in conjunction with planned concrete panel replacements on Main between Berry Road and Park Drive (Contract K-1516-112 approved by Council on April 26, 2016).
On October 25, 2016, the NUA approved CO#2 to Contract K-1516-80 authorizing replacement of an additional 1,200 feet of deteriorated 12-inch DIP waterline with 16-inch PVC waterline along the south side of Main Street between Flood Avenue and Park Drive. Additionally, approximately 500 feet of 8-inch waterline on the east side of Flood between Main and Gray is to be replaced. CO#2 also increased the contract time by 30 calendar days for a revised completion date of February 26, 2017. The NUA provided new funds in the amount of $226,360 increasing the NUA share from $1,545,095 to $1,771,455; the City of Norman share of the Berry Road Waterline Phase 3 project remained at $221,935 for a total of $1,993,390. The southern lane of Main Street will be replaced under Contract K-1516-112 with A-Tech Paving. This work will now be delayed in order to expedite the work proposed under CO#3.
DISCUSSION: On January 19, 2017, the bid opening for the Main Street Streetscape Project was held by the Oklahoma Department of Transportation (ODOT). The low bidder was $1,248,138.82, or 44 percent, over the Engineer’s Estimate for the entire project. ODOT rejected the bids due to the extremely high bids. Staff has been working with the Consultant and ODOT to repackage this project in an effort to re-bid on May 18, 2017, with more favorable bid results. One bid item that was substantially over bid was the new water line replacement item. That bid was at $1,090,000 and the Engineer’s Estimate for this task was $799,516. On most ODOT projects, the water line work is completed by a City project ahead of the ODOT construction. Due to the time line and the need for a portion of the work to take place under the existing sidewalk, it was initially decided to package the two projects together. However, after the unfavorable bids on this task, staff has explored the option of doing most of the water line work ahead of the ODOT project. Given this cost saving opportunity (to the ODOT project), ODOT has waved their traditional time line requirement for utilities and will allow the City up until the day of the bid opening to relocate the water line.
The City is currently under contract with Central Contracting to do similar work on Main Street from Flood Avenue to Park Drive, where the Main Street Streetscape Project begins. After determining that Central Contracting had additional capacity to take on this project, staff began looking at the possibility of adding a change order to the current NUA water line contract.
Proposed Change Order No. 3 in the amount of $524,300 will add replacement of approximately 1,900 additional feet of deteriorated 12-inch DIP waterline with 16-inch PVC waterline along the north side of Main Street between Park Drive and James Garner Avenue. Additionally, new service lines will be installed to the existing meters of all businesses within the project limits. The only water line work not being completed by this change order within the project limits is replacing the water meters and installing new services from the meter to the existing building. Approximately $60,000 in water line work will remain in the ODOT streetscape project to replace meters and service lines to the face of buildings. This work will be sequenced while the sidewalks are removed and replaced. The City anticipates completing all water line work for approximately $584,300 ($524,300 by CO#3 and approximately $60,000 in the ODOT rebid), compared to the $1,090,000 lump sum price on the ODOT project.
CO#3 will also increase the contract time by eighty-one (81) calendar days to allow completion of the additional work; the revised completion date will be May 18, 2017. Attachment 1 to CO#3 provides a detailed cost breakdown of the proposed new work. CO#3 is co-funded by the NUA and Capital Funds. Since this scope of work was originally part of the Main Street Streetscape Project, funds for this work have already been paid to ODOT from the Main Street Streetscape Project, Construction (account 050-9300-431.61-01; project TR0047). After the May 18, 2017, ODOT bid opening, the City may be reimbursed the excess funds already paid or may need to pay more, depending on the re-bid results. The NUA contributed a maximum of $378,466 to upsize the new waterline from 12 to 16 inches in diameter for the water line portion of the ODOT fronted funds.
However, since the funds forwarded to ODOT are not available at this time, the NUA is proposed to fund CO#3 in its entirety ($524,300) and be partially reimbursed by the City for their share of the waterline improvements at a later date. CO#3 increases the NUA share from $1,771,455 to $2,295,755. At this time; the City of Norman share of the Berry Road Waterline Phase 3 project will remain at $221,935, for a total of $2,517,690.
RECOMMENDATION: It is recommended that the NUA and City Council approve Change Order No. 3 to Contract K-1516-80 with Central Contracting Services, Inc. increasing the contract amount by $524,300 from $1,993,390 to $2,517,690 and approving an eighty-one (81) calendar day time extension for the Berry Road Waterline Relocation Project, Phase 3. In order to fund the new work, it is also recommended that $524,300 be appropriated from the Water Fund Balance (031-0000-253-0000) into the Berry Road Phase 3 Waterline Construction account (031-9521-462.61-01; project WA0305).