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CONSIDERATION OF BID 1819-43; CONTRACT K-1819-97 WITH H & H PLUMBING AND UTILITIES, INC., IN THE AMOUNT OF $2,330,500; PERFORMANCE BOND B-1819-57; STATUTORY BOND B-1819-58, AND MAINTENANCE BOND MB-1819-44 FOR THE 24TH AVENUE EAST WATER LINE RELOCATION PROJECT, PHASE 2; TRANSFER OF FUNDS FROM NORMAN UTILITIES AUTHORITY; AND RESOLUTION R-1819-63 GRANTING TAX EXEMPT STATUS.
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BACKGROUND: On November 22, 2011, the Norman City Council approved Programming Resolution R-1112-62, requesting federal funds for the 24th Avenue East Widening Project. This resolution states the City’s commitment to adhere to the terms and conditions of a federally funded project including engineering design, acquisition of all necessary rights-of-way and relocation of utilities and encroachments at 100% the City’s cost. In return, the Association of Central Oklahoma Governments (ACOG), through the Oklahoma Department of Transportation (ODOT), agrees to provide 80% of the construction cost, estimated at $7,831,000, and administration of the construction with the matching share from the City of Norman.
On August 28, 2012, the citizens of Norman voted in favor of a General Obligation Bond issue to finance the local share of eight transportation/stormwater improvement projects. One of the eight 2012 bond projects is the 24th Avenue East Widening project (the attached location map shows the project boundaries). The total estimated project cost including design, utility relocations, right-of-way, construction and construction management is $15,388,000, of which the City’s estimated share is $7,518,000.
On March 12, 2013, City Council approved engineering services Contract K-1213-169 with Atkins North America, Inc. for the design of the 24th Avenue East Widening Project between Lindsey Street and Robinson Street, in the amount of $875,266.50.
On January 23, 2018, City Council approved Contract K-1718-63 in the amount of $45,413 with Oklahoma Natural Gas (ONG) for Phase 1 (Lindsey to Alameda) utility relocations within private easements.
On January 23, 2018, City Council approved the allocation of $74,200 for land acquisition services under On-Call Contract K-1314-103 with Pinnacle Consulting Management Group.
On February 27, 2018, City Council approved Amendment No. 1 to Contract K-1213-169 with Atkins North America in the amount of $133,455 for additional design-related items.
On April 10, 2018, City Council approved Resolution R-1718-102 declaring 24th Avenue East a Recoupment Project.
On August 28, 2018, City Council approved Contract K-1819-8 with W.E.B. Construction in the amount of $1,583,150.50 for the 24th Avenue East Water Line Relocation Project, Phase 1.
Proposed improvements for the 24th Avenue East Widening Project include:
• Widen two miles of roadway from two lanes to four lanes
• New traffic signal at 24th Avenue East and Meadowood Boulevard
• Intersection improvements at 24th Avenue East/Meadowood Boulevard and 24th Avenue East /Robinson Street.
• Interconnect traffic signals on 24th Avenue East from Lindsey Street to Robinson Street
• Continuous sidewalks and accessibility
• Stormwater improvements
• On-street bike lanes
DISCUSSION: Prior to the construction of the 24th Avenue East Bond Project, all utilities in conflict with the proposed improvements must be relocated. The Norman Water Utility has two existing water lines in conflict with the proposed roadway improvements in the Phase 2 portion of the project between Alameda Street and Robinson Street. One water line is a 24” concrete high pressure line and the other is a 30” polyvinyl chloride (PVC) water line. Public Works staff has been coordinating the water line relocations with the Norman Utilities Authority (NUA) to ensure that the replacement pipes have the capacity to carry future water supply needs. Based on NUA’s water projections, NUA wanted to replace the existing 24” concrete high pressure water line with 4,400 feet of 16” PVC high pressure water line. The existing 30” PVC water line will get replaced with 4,350 feet of 36” PVC water line. As a result of the pipe size changes and existing maintenance issues that are being addressed with this relocation project, the NUA will pay $1,343,000 or 57.6% of the $2,330,500 water line relocation project.
Bid documents and specifications for the construction of the 24th Avenue East Water Line Relocation Project: Phase 2, were advertised according to State Law. Fifteen (15) potential bidders and suppliers acquired plans and specifications. Four (4) bids were received on January 24, 2019.
The low bidder is H & H Plumbing and Utilities, Inc. of Goldsby, Oklahoma in the amount of $2,330,500, which is $46,572 less than the next lowest bidder. The Engineer’s estimate for the project is $2,594,759 or approximately 11.3% higher than the low bid. Staff has done a comparative analysis of these bids and believes the low bid is competitive and represents a fair bid. H & H Plumbing and Utilities, Inc. has completed several similar construction projects in Oklahoma and has met the bidding requirements set forth in the bid documents.
The Norman Utilities Authority will be providing funding in the amount of $1,343,000, from Water Line Replacements, Construction (account 031-9683-462.61-01; project WA0240) to the 24th Avenue East Widening Project, Utilities (account 050-9552-431.67-01; project BP0192). The NUA funds were intended to be used for water line replacements within the same general limits as the 24th Avenue East Water Line Relocation Project: Phase 2. This relocation project effectively addresses NUA’s pipe size changes and the bond project relocation in one combined project. The remaining $987,500 will come from available allocations within the 24th Avenue East Bond Project, Utilities account.
This relocation project is anticipated to be completed by July 23, 2019. ODOT intends to accept bids for the Phase 1 and 2 roadway widening projects in May 2019 with a construction start date of August 2019 to coincide with the completion of the water line relocation.
RECOMMENDATION NO. 1: The project team has reviewed the bids and recommends that Bid 1819-43 for the 24th Avenue East Water Line Relocation Project: Phase 2, be awarded to the low bidder, H & H Plumbing and Utilities, Inc. of Goldsby, Oklahoma, in the amount of $2,330,500.
RECOMMENDATION NO. 2: Staff further recommends that NUA approve the use of $1,343,000 to fund the 24th Avenue East Water Line Relocation Project: Phase 2.
RECOMMENDATION NO. 3: Staff further recommends that, upon approval of Bid 1819-43, the following contract and bonds be approved:
Contract K-1819-97
Performance Bond B-1819-57
Statutory Bond B-1819-58
Maintenance Bond MB-1819-44
RECOMMENDATION NO. 4: Staff further recommends that upon approval of Contract K-1819-43, H & H Plumbing and Utilities, Inc., be authorized and appointed as Project Agent via Resolution R-1819-63.