Title
CHANGE ORDER NO. TWO TO CONTRACT K-1415-91: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $166,950 FOR A REVISED CONTRACT PRICE OF $3,145,424 ON THE SEWER MAINTENANCE PROJECT FYE 2013 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 ($5) 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 March 24, 2015, the Norman Utilities Authority (NUA) approved Contract K-1415-91 with Urban Contractors, LLC (Urban) in the amount of $2,873,020 to replace sewer lines and manholes for the Sewer Maintenance Project FYE 2013 (SMP13). Construction began April 6, 2015, and is on schedule and within budget.
On August 25, 2015, the NUA approved Change Order No. 1 (CO1) increasing the contract amount by $105,454 to $2,978,474 and extending the contract time by 40 calendar days from April 6, 2016, to May 15, 2016. CO1 provided for supplementary pipe-bursting near Rock Creek Road and Porter Avenue, and an emergency sewer main repair on Walnut Road.
DISCUSSION: Proposed Change Order No. 2 (CO2) also consists of about 2,500 feet of supplementary pipe-bursting requested by the Line Maintenance Division along Huron Street (see attached map). NUA staff requested, and Urban agreed to replace those lines and manholes at the contract unit prices. The current contract bid prices create excellent value for supplementary work during the project. The estimated cost of sewer line replacement under this change order is about $67 per foot. Typical sewer replacement costs in the past have approached $100 per foot.
Proposed CO2 will increase the contract amount by $166,950 from $2,978,474 to $3,145,424, or about 6%. Upon approval of CO2, the cumulative increase for both change orders to the project will be $272,404 or about 9% of the original contract amount of $2,873,020. However, unit price contracts are not subject to the 10% change order cap under the Oklahoma Competitive Bidding Act.
The Fiscal Year Ending 2016 (FYE16) budget includes an unencumbered balance of $137,176 in SMP13 (account 321-9338-432.61-01; project WW0200) a shortfall of $29,744 to fund CO2. However, the recently completed SMP12 project budget includes an available balance of $561,638. Therefore, staff recommends a transfer of $29,744 from SMP12, Construction (account 321-9338-432.61-01; project WW0070) to SMP13, Construction (account 321-9338-432.61-01; project WW0200) to fund CO2.
RECOMMENDATION: Staff strongly recommends NUA approval of Change Order No. 2 with Urban Contractors, L.L.C., increasing the contract amount by $166,950 to $3,145,424 and a transfer of $29,744 as detailed above.