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AMENDMENT NO. TWO TO CONTRACT K-1415-78: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND MACARTHUR ASSOCIATED CONSULTANTS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $13,000 FOR A REVISED CONTRACT AMOUNT OF $162,500 REVISING THE SCOPE OF WORK FOR IOWA STREET IN THE DAKOTA/IOWA STREET IMPROVEMENT PROJECT FROM BERRY ROAD TO UNIVERSITY BOULEVARD.
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BACKGROUND: In the Norman General Obligation Bond Election of March 2, 2010, voters approved a 5-year, 4-phase program of Street Maintenance on neighborhood streets. The four phases include (1) Urban Asphalt Streets, (2) Urban Concrete Streets, (3) Rural Roads and (4) Road Reconstruction. The final two projects in the “Road Reconstruction” category required outside engineering design services due to the complexity of the stormwater improvements. Those two projects involved eleven (11) residential blocks of total road reconstruction on Dakota Street and Iowa Street, as illustrated on the attached Iowa & Dakota Street Location Map.
On March 10, 2015, City Council approved Contract K-1415-78 with MacArthur Associated Consultants, L.L.C. for the design of the Dakota and Iowa Street Improvement Projects between Berry Road and University Boulevard for $132,500. The Dakota and Iowa Street Improvement Projects involve the reconstruction of the existing two-lane roadway on a new profile with curb and gutter along with a new stormwater collection system.
On March 31, 2016, a bid opening was held for these projects and only one bid was received. The Engineer’s Estimate was $3,053,824. A-Tech Paving submitted the sole bid of $3,201,241, which was $147,417 over the estimate. City staff determined that other contractors did not bid on this project because the schedule was too aggressive. Since the only bid that was submitted was over the Engineer’s Estimate, City staff recommended the bid be rejected and the project be rebid. City Staff also recommended splitting the project into three separate phases to make the schedule less aggressive. The proposed project splits were as follows:
Phase I- Iowa Street- Berry Road to Pickard Avenue (2017 construction)
Phase II- Dakota Street- Berry Road to Flood Avenue (2017 construction)
Phase III- Dakota and Iowa Streets- Flood Avenue to University Boulevard (2017 construction)
Council approved Amendment No. 1 with MacArthur Associated Consultants on May 24, 2016 to address the scope changes of rebidding the project and splitting the project into three phases; as shown on the Location Map. Amendment No. 1 was written in a “Cost Not to Exceed” format in the amount of $17,000.
The revised scope anticipated the design services for Phase I to be completed by June 23, 2016 and taking bids for construction of this phase in July 2016, with construction complete in fall 2016. The remaining two phases would have design services complete in summer 2016, with early 2017 bid openings and construction completed in 2017. With this schedule, these streets would not be under construction during the winter months.
DISCUSSION: With the changes discussed above, the design team determined that the estimated construction costs would still exceed the available funding for these roadways. The project design team evaluated multiple options to reduce the cost. The best alternative appears to be the use of city crews to complete the asphalt paving and the use of contract services for utility relocation and concrete structures. This change required the plans to be revised again for each phase to remove the paving from the public bid documents. Amendment No. 2 will provide the additional engineering services required to split each of the three phases (as identified in Amendment No. 1 and shown in the Location Map) into three separate sub-sets. Amendment No. 2 expands upon the scope of Amendment No. 1 as follows to provide each plan set with the following parts:
Part A: Service utilities - performed by Contractor
Part B: Asphalt pavement and stormwater pipeline installation- performed by City of Norman
Part C: Concrete pavement, curb and gutter and driveways - performed by Contractor
Each phase will include a specific set of quantities for Part A, Part B and Part C. The plans will also include plan notes that clearly identify the responsibilities of each party for Parts A, B and C. Construction Sequencing Plans will be added to the back of each plan set to add further clarity of the requirements and responsibilities associated with each Part. Phase I will have its own bid date. Phases II and III are expected to share the same bid date. No other changes in scope are included in this supplement.
City Staff has negotiated a fee with MacArthur and Associates to address the scope changes. The attached amended engineering design services contract is written in a “Cost Not to Exceed” format in the amount of $13,000 which is detailed on page one of the Amendment.
If approved, the additional engineering services will be completed by December 1, 2016. The bid date for Phase I is planned in January, 2017. The proposed project construction schedule is revised as follows:
Phase I - Iowa Street- Berry Road to Pickard Avenue (Spring 2017 construction)
Phase II - Dakota Street- Berry Road to Flood Avenue (Summer 2017 construction)
Phase III - Dakota and Iowa Streets- Flood Avenue to University Boulevard (Fall 2017 construction)
The original contract K-1415-78 with MacArthur & Associates was for the amount of $132,500. As a professional services contract, it is not subject to the increase caps applicable to contracts that must be competitively bid. Amendment No. 1 was for $17,000. Amendment No. 2 is $13,000, increasing the total contract amount for engineering services to $162,500 for this project. The funds for this amendment are currently available in Account 050-9385-431.62-01, Project BP0245. If approved, the total cost of engineering services ($162,500) is 5% of the estimated project costs of $3,216,324. This percentage cost for engineering services is within a normal range anticipated for this type of project.
RECOMMENDATION: Staff recommends approval of Amendment No. 2 to Contract K-1415-78, with MacArthur Associated Consultants, L.L.C., in the amount of $13,000 for additional engineering services for the Dakota and Iowa Streets Improvement Projects between Berry Road and University Boulevard.