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CHANGE ORDER NO. ONE TO CONTRACT K-1718-68: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA AND CENTRAL CONTRACTING SERVICES, INC., INCREASING THE CONTRACT AMOUNT FOR THE ROCK CREEK ROAD WATERLINE RELOCATION PROJECT BY $119,870 FOR A REVISED CONTRACT AMOUNT OF $718,114 AND INCREASING THE CONTRACT TIME BY EIGHTY CALENDAR DAYS TO INSTALL APPROXIMATELY 900 FEET OF 12-INCH WATERLINE ASSOCIATED WITH THE FLOOD AVENUE WATER LINE REPLACEMENT FROM ROCK CREEK ROAD TO VENTURE AVENUE AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: The ever-increasing volume of traffic and the resulting increase of crashes at the intersections of Rock Creek Road with 12th Avenue NW and Trailwood Drive have exposed the need for new traffic signals and roadway modifications. Installation of eastbound and westbound left turn lanes on Rock Creek Road will require widening of the existing four-lane section at these intersections. The existing two-lane section on 12th Avenue NW will be widened to five vehicle lanes plus bicycle lanes, as suggested in the City’s Comprehensive Transportation Plan. In addition, the narrow four-lane section between the two signals will be widened to meet current roadway standards.
On February 13, 2007, City Council adopted Resolution R-0607-85, which was later forwarded to both the Association of Central Oklahoma Governments (ACOG) and the Oklahoma Department of Transportation (ODOT), requesting federal funds to pay for eighty percent (80%) of the construction cost. In the resolution the City agreed to the terms and conditions of a federally-funded project by stating its willingness to assume the responsibility for the preparation of engineering plans, the purchase of any additional rights-of-way, the relocation of public utilities and funding of the local share of the construction cost, which is 20% of total construction cost, estimated to be $1,770,000.
On August 25, 2015, White Hawk Engineering and Design was selected to provide design services for this project in Contract K-1516-7 for a fee of $184,379.70. This fee did not include a fee to relocate the conflicting water line along Rock Creek Road in this area. On September 13, 2017, City Council approved Amendment No. 1 to Contract K-1516-7 in the amount of $34,288.45 to cover the expenses associated with the design of the water line relocation required as part of the project.
On October 19, 2017, Central Contracting Services, Inc. (Central) was the low bidder for construction of the Rock Creek Road Waterline Relocation Project. On November 28, 2017, the City of Norman approved Contract K-1718-68 in the amount of $598,244 with Central for construction of the waterline relocation improvements. The Norman Utilities Authority (NUA) agreed to fund $338,122 of the project costs to upsize the existing 12-inch waterline to 16-inch and fund the cost of a new 16-inch waterline under the BNSF railroad right-of-way on the west end of the project The project began December 15, 2017 and was scheduled to be complete May 14, 2018; Central is approximately 90% complete with the waterline work.
DISCUSSION: The NUA Utilities Department desires to utilize Central to complete work associated with another urgent project. If approved, unit prices bid for the ongoing Rock Creek Road Waterline Relocation Project will be utilized for the new work; state law allows unit price work to be extended by change order without limit; the mandated 10% cap on change orders for lump sum contracts is not applicable. The new work to be included represents an increase of about 20% over the original contract amount and is described below:
Waterline Replacement: Flood-Rock Creek to Venture (WA0328): Funding for project is included in the proposed FYE19 Capital Improvements Budget (see attached budget sheet); the project will ultimately replace approximately 10,500 feet of deteriorated cast iron piping (CIP) from Rock Creek Road to Venture Avenue at an estimated cost of $2,130,000.
The recently platted Biocide East Park Section 1 Addition authorized construction of a new retail establishment; the work is underway and includes extensive parking lot and landscaping improvements within the 25-foot utility easement for the existing 12-inch CIP waterline. The Utilities Department would like to install approximately 900 feet of new 12-inch PVC waterline and appurtenances in advance of the parking lot/landscaping improvements by the property owner (see attached Black Mesa Landscape Plan). This action will eliminate the additional cost and inconvenience of replacing these improvements at a future date. The property owner is willing to delay the parking lot construction to allow the waterline replacement to occur. As documented in the change order, the cost of this work is estimated at $119,870.
Proposed fiscal year 2018-2019 budgeted moneys for the Flood Waterline-Rock Creek to Venture project are not available until July 1, 2018. Therefore, to fund the waterline construction proposed under the change order, it is proposed to transfer $119,870 from Segment D Waterline, Construction (account 031-9360-462.61-01; project WA0239) to Flood Waterline Replacement-Rock Creek to Venture, Construction (account 031-9360-462.61-01; project WA0328). As noted, the NUA will fund the work proposed under the change order and the Utilities Department staff will manage and inspect the work; however, the contractor will be paid for the new work under his existing contract through the Public Works Department.
RECOMMENDATION: Staff recommends approval of Change Order No. 1 to Contract K-1718-26 with Central Contracting Services, Inc. in the amount of $119,870 increasing the contract amount from $598,244 to $718,114 and increasing the contract time by 80 calendar days. Staff also recommends the transfer of $119,870 from Segment D Waterline Construction (account 031-9360-462.61-01; project WA0239) to Flood Waterline Replacement-Rock Creek to Venture, Construction (account 031-9360-462.61-01; project WA0328).