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CHANGE ORDER NO. TWO TO CONTRACT NO. K-1213-88: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $139,708 FOR A REVISED CONTRACT PRICE OF $2,933,242 AND EXTENDING THE CONTRACT TIME BY 24 CALENDAR DAYS FOR THE FYE 2011 SEWER MAINTENANCE PROJECT AND BUDGET TRANSFER.
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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. As shown on the attached map, the FYE 2011 Sewer Maintenance Project (WW0064) is generally bounded by Alameda to the north, Bishop Creek to the west, partially Boyd and partially Brooks to the south, and Shiloh to the east.
On June 11, 2013, the Norman Utilities Authority (NUA) approved Contract K-1213-88 with Urban Contractors, LLC (Urban) in the amount of $2,774,200 to provide construction services for the line replacements. Construction began July 1, 2013, and is on schedule.
On October 1, 2013, the City Manager approved Change Order Number 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.
DESCRIPTION: During construction, the Sewer Line Maintenance Division requested assistance to prevent potential failure of defective sewer lines which are not in the project area. The additional improvements include (1) 1,560 feet in the vicinity of Page Street and Brooks Street, just east of the University of Oklahoma (OU) and (2) about 490 feet along Smoking Oak Road.
NUA staff requested and Urban agreed to replace those lines and manholes at the contract unit prices. The bid prices in this 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, within the available budget. For the extra work, Urban requested and staff recommends approval of a 24-calendar day time extension. The time extension is based on typical weekly performance.
Proposed Change Order No. 2 (CO2) will increase the contract amount by $139,708 from $2,793,534 to $2,933,242 and extend the contract completion date by 24 calendar days from October 2, 2014 to October 26, 2014. The cumulative increase for both change orders to the project is $159,042 or about 6% over the original contract amount of $2,774,200. All additional work consists of supplementary pipe bursting rehabilitation similar to the project scope and uses the original bid unit prices.
The fiscal year 2013-2014 (FYE14) budget includes an unencumbered balance of $118,985 in Sewer Maintenance Construction (account 321-9338-432.61-01; project WW0064), a shortfall of $20,723 to fund CO2. The SMP FYE13 budget currently includes an available balance of $7,607,672, since unexpended balances from previously completed annual sewer maintenance projects are accumulated therein.
RECOMMENDATION: Recommend the NUA approve, and authorize the Chair to execute, Change Order No. 2 with Urban Contractors, L.L.C., increasing the contract amount by $139,708 to $2, 933,242 and extending the contract time by 24 calendar days. Staff further recommends a transfer of $21,000 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 CO2.