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CONSIDERATION OF AWARDING BID 1415-22, APPROVAL OF CONTRACT K-1415-17 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND LANDMARK STRUCTURES I, L.P., IN THE AMOUNT OF $2,636,000; PERFORMANCE BOND B-1415-9, STATUTORY BOND B-1415-10, AND MAINTENANCE BOND MB-1415-5 FOR THE HIGH PRESSURE PLANE ONE (1) MILLION GALLON ELEVATED WATER STORAGE TANK PROJECT LOCATED IN NORTHEAST NORMAN.
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BACKGROUND: The addition of another elevated water storage tank has been envisioned for several years by the Norman Utilities Authority (under capital project Water Tower, WA0293). The existing water distribution system has four elevated storage tanks with a capacity of 4.5 million gallons (MG) as follows:
· Cascade Tower, steel/concrete composite tank with capacity of 2 MG;
· Brookhaven Tower, welded steel tank with capacity of 1.5 MG;
· Boyd Tower, welded steel tank with capacity of 0.5 MG;
· Robinson Tower, welded steel tank with capacity of 0.5 MG.
Additionally, 7.5 MG of underground water storage is provided at the water treatment plant (WTP) in two "clearwells," for a total storage capacity of 12 MG. Distribution pumping at the smaller 1 MG clearwell feeds the "High Pressure Plane (HPP-an area of elevated topography in northeastern Norman)" while pumps from the larger 6.5 MG clearwell feed the four existing storage tanks and the remainder of the Norman distribution system.
Computer modeling of the water distribution system indicates the greatest need for elevated storage is in the HPP in northeastern Norman. The storage tank is to be located on existing city property north of Robinson and east of 24th Avenue NE as shown on the attached map. The construction of the elevated storage tank will provide storage to meet fire demands and maintain reliable pressures in the HPP even if additional water from the clearwell is not available.
On January 14, 2014, the NUA approved Contract K-1314-98 with Professional Engineering Consultants, P.A. (PEC) to provide design, bidding and construction administration services associated with construction of the storage tank. The Oklahoma Department of Environmental Quality (ODEQ) approved the design plans on September 15, 2014.
DISCUSSION: The contract documents allowed the bidder to select one of two types of elevated storage tanks to obtain the most cost effective tank design. Bids were received for a 1 MG composite elevated storage tank (the Base Bid), similar to the Cascade Tank, and a 1 MG spheroid elevated storage tank (the Alternate Bid).
The advertisement for bids was published in the Norman Transcript on February 5 and 12, 2015, and in several trade publications. Several contractors attended the pre-bid conference and bids were received from five specialty tank contractors on March 5, 2015. As shown on the attached bid tabulation, Landmark Structures I, L.P. (Landmark), was the low bidder at $2,636,000 for a 1 MG composite tank. Other bids ranged between $2,651,402 and $3,316,993 for the composite tank while two bidders proposed a 1 MG spherical tank with bids ranging between $3,108,102 and $3,613,000. The engineer's estimates for the composite and spherical tanks were $2,972,045 and $3,001,550, respectively.
As noted in its letter of March 6, 2015, PEC recommends award to Landmark Structures I, L.P., of Fort Worth, Texas. The Utilities Department concurs in this award recommendation. Figure 1 illustrates the approximate dimensions of the composite tank proposed by Landmark.
The Fiscal Year Ending 2015 project budget includes unencumbered funds of $2,865,320 in Water Tower Construction (account 031-9354-462.61-01; project WA0293) which will fully fund the project and provide a contingency of $229,320 or about 8.7%. Additionally, $81,100 remains unencumbered in Land/Right-of-Way account 031-9354-462.60-01.
The City of Norman is exempt from the payment of any sales or use taxes. Pursuant to Title 68 O.S., Section 1356 (10) and as allowed by Oklahoma Tax Commission Rules Part 27 Trust Authority 710:65-13-140, direct vendors to the NUA are also exempt from those taxes. A bidder and his subcontractors may exclude from their bid sales taxes on appropriate equipment, materials, and supplies that will not have to be paid while acting on behalf of the NUA. To minimize project costs, the NUA will make payment directly to vendors supplying equipment and materials for incorporation into the project.
The bidding documents require the storage tank to be substantially complete within 420 calendar days and the entire project to be completed within 458 calendar days. The estimated schedule for constructing the HPP Elevated Water Storage Tank is as follows:
Start work - 04/06/15
Substantially Complete EST - 05/30/16
Final Completion - 07/07/16
RECOMMENDATION 1: Recommend the NUA accept the bids received in response to Project Bid 1415-22, High Pressure Plane Elevated Water Storage Tank, and award the bid to Landmark Structures I, L.P., of Fort Worth, Texas.
RECOMMENDATION 2: Recommend the NUA authorize the Chairman to sign Contract K-1415-17 in the amount of $2,636,000 with Landmark Structures I, L.P.
RECOMMENDATION 3: Recommend the NUA Authorize the Chairman to Sign Performance Bond B-1415-9, Statutory Bond B-1415-10, and Maintenance Bond MB-1415-5; all bonds being in the amount of the construction contract.
RECOMMENDATION 4: Recommend the NUA allow the Utilities Director to approve the purchase of equipment and materials directly from vendors at prices agreed to the Contractor.