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CHANGE ORDER NO. THREE TO CONTRACT NO. K-1213-88: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $341,590 FOR A TOTAL CONTRACT PRICE OF $3,274,832 FOR THE FYE 2011 SEWER MAINTENANCE PROJECT AND BUDGET TRANSFER FROM A SEWER MAINTENANCE FUND CAPITAL PROJECT.
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BACKGROUND: In 2001, the citizens of Norman approved a five dollar per month sewer maintenance fee to provide for the systematic rehabilitation or replacement of aged and deteriorated sewer lines throughout our wastewater collection system. On June 11, 2013, the Norman Utilities Authority (NUA) approved Contract No. K-1213-88 for Sewer Maintenance Project FYE 2011 (SMP11) with Urban Contractors, LLC (Urban) in the amount of $2,774,200 to replace sewer lines and manholes. Construction began July 1, 2013, and is on schedule.
On October 1, 2013, the City Manager approved Change Order No. 1 (CO1) increasing the contract amount by $19,334 to $2,793,534 and extending the contract time by 18 calendar days from September 14, 2014 to October 2, 2014. CO1 provided for replacement of storm sewer and water lines in conflict with proposed sewer line replacement.
On February 25, 2014, the NUA approved Change Order No. 2 (CO2) increasing the contract amount by $139,708 to $2,933,242 and extending the contract time by 24 calendar days from October 2, 2014 to October 26, 2014. CO2 provided for pipe-bursting of sewer lines in two supplementary areas of Page Street and Brooks Street, near the University of Oklahoma (OU), and along Smoking Oak Road.
DESCRIPTION: Recently the Sooner Mobile Home Park (SMHP) on Classen Boulevard at Constitution was approved for re-development as an apartment complex. The public sewer lines therein were constructed of vitrified clay pipe in the 1960’s and are severely deteriorated due to age and the large number of service connections for the many mobile homes in the park (see SMHP Map). Since most of the homes have been removed, the area is now relatively open, which allows our contractor to efficiently rehabilitate approximately 2,380 feet of sewer lines.
Also, during project construction, the Sewer Line Maintenance Division requested assistance to prevent potential failure of additional defective sewer lines which are not in the project area. The requested extra work consists of 2,880 linear feet in the area bounded by Timberdell to the north, Pickard to the west, Lakewood to the south, and Chautauqua to the east (map attached).
For the work in both locations, NUA staff requested and Urban agreed to replace those lines and manholes at the contract unit prices. The bid prices in the current rehabilitation project create an excellent value for supplementary work during the project. The overall cost of sewer line replacement under this bid is about $72 per foot; typical costs in the past have approached $100 per foot. Therefore, it is in the best interest of NUA to use the current project bid prices for the extra work.
Proposed Change Order No. 3 (CO3) will increase the contract amount by $341,590 from $2,933,242 to $3,274,832. If CO3 is approved, the cumulative increase for all change orders to the project will be $500,632 or about 18% of the original contract amount of $2,774,200. Change orders pertaining to unit pricing are not subject to the 10% change order cap under the Oklahoma Competitive Bidding Act.
The Fiscal Year 2013-2014 (FYE14) budget includes an unencumbered balance of $277 in FYE 2011 Sewer Maintenance Construction (account 321-9338-432.61-01; project WW0064) which is insufficient to fund CO3. However, the SMP FYE13 budget currently includes an available balance of $7,586,672, since unexpended balances from previously completed annual sewer maintenance projects are accumulated therein. Therefore, staff recommends a transfer of $342,000 from SMP FYE13, Construction (account 321-9338-432.61-01; project WW0200) to SMP FYE11, Construction (account 321-9338-432.61-01; project WW0064) to fund CO3.
RECOMMENDATION: Recommend the NUA approve, and authorize the Chair to execute, Change Order No. 3 with Urban Contractors, L.L.C., increasing the contract amount by $341,590 to $3,274,832, and a transfer of $342,000 as detailed above.