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CONSIDERATION OF FINAL ACCEPTANCE AND FINAL PAYMENT OF CONTRACT NO. K-0910-34 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND WALTERS-MORGAN CONSTRUCTION, INC. FOR THE LIFT STATION D REHABILITATION PROJECT.
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BACKGROUND: On January 22, 2008, the Norman Utilities Authority (NUA) approved Resolution R-0708-78 directing staff to implement an interim sewer solution for northern Norman, meeting the needs identified in the Wastewater Master Plan (WWMP) but delaying construction of a second wastewater treatment plant (WWTP). A new system of sewer interceptors has been constructed to convey wastewater to a rehabilitated Lift Station D that provides a pumping capacity of 6 million gallons per day (MGD) for delivery into the Bishop Creek sewer basin and the Water Reclamation Facility (WRF).
On February 26, 2008, the NUA approved Contract K-0708-111 with HDR authorizing completion of the preliminary design, final design, and bidding phases for Lift Station D Rehabilitation project. On April 28, 2009, the NUA approved Amendment No. 1 to the contract authorizing HDR to proceed with construction phase services for the project.
This project qualified for American Recovery and Reinvestment Act (ARRA or “Federal Stimulus”) funding. On April 14, 2009, the NUA authorized submission of a Clean Water State Revolving Fund (CWSRF) loan application to the Oklahoma Water Resources Board (OWRB). As a part of the CWSRF loan process, 20% of the loan amount will be forgiven up to a maximum of $2 million. The CWSRF loan application was submitted on May 8, 2009 and the OWRB approved our loan application for $7,640,000 on June 9, 2009.
On August 25, 2009, the NUA approved Contract K-0910-34 with Walters-Morgan Construction Inc. of Manhattan, Kansas for $5,840,000 with a contract time of 548 calendar days. Construction began September 28, 2009 and was scheduled for completion on March 30, 2011.
On February 22, 2011, the NUA approved Change Order No. 1 increasing the contract amount by $65,185.28 to $5,905,185.28 and extending the contract time by 54 calendar days to May 23, 2011. On May 25, 2012, the City Manager approved Change Order No. 2 increasing the contract amount by $22,325.68 to $5,927,510.96 and extending the contract time by 93 calendar days to August 24, 2011. This was the final change order for the project. The two change orders combined are equivalent to an overall cost increase of 1.5% of the original contract amount.
DISCUSSION: The project consisted of rehabilitation of the existing wetwell/drywell structure, new influent screens, screening conveyors and washers, two 2.25 MGD variable speed pumps, one 6 MGD variable speed pump, excess flow pumping into two concrete equalization basins totaling 4.8 million gallons (MG), yard piping, an emergency generator, and associated HVAC, electrical, instrumentation improvements. The project was substantially complete and operable on August 24, 2011. Since that time, Walters-Morgan Construction Inc. has continued to correct minor deficiencies contained on the final punch list. The Lift Station D Rehabilitation project is complete and operable in accordance with the approved plans and specifications.
The final contract amount is $5,927,510.96. To date, the contractor has been paid $5,917,510.96. Staff and HDR recommend final acceptance of the improvements effective the contract end date of August 24, 2011 and authorization to make final payment of $10,000 to Walters-Morgan Construction, Inc. The consultant’s recommendation letter utilizing the OWRB preferred form is attached.
RECOMMENDATION: Recommend the NUA approve acceptance of Lift Station D Rehabilitation project and authorization to make final payment in the amount of $10,000 to Walters-Morgan Construction, Inc.