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CHANGE ORDER NO. THREE TO CONTRACT K-1415-91: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., INCREASING THE CONTRACT AMOUNT BY $9,481.65 FOR A REVISED CONTRACT PRICE OF $3,154,905.65 FOR THE SEWER MAINTENANCE PROJECT FYE 2013; FINAL ACCEPTANCE OF THE PROJECT, AND BUDGET APPROPRIATION FROM THE SEWER MAINTENANCE FUND.
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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 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) for Sewer Maintenance Project FYE 2013 (SMP13) in the amount of $2,873,020. The Notice to Proceed was issued and construction began April 6, 2015.
On August 25, 2015, the NUA approved Change Order No. 1 (CO1) increasing the contract amount by $105,454 to $2,978,474. CO1 provided for supplementary pipe-bursting near Rock Creek Road and Porter Avenue, and an emergency sewer main repair on Walnut Road.
On November 10, 2015, the NUA approved Change Order No. 2 (CO2) increasing the contract amount by $166,950 to $3,145,424. CO2 provided for supplementary pipe-bursting requested by the Line Maintenance Division along Huron Street.
DISCUSSION: All work was complete December 15, 2015, and the contract is now satisfied. Proposed Final Change Order Number 3 (CO3) includes two modifications: 1) purchase remaining pipe material from the contractor and 2) reconciliation of bid quantities to final quantities.
The purchase of the remaining pipe material from the current project is an increase of $16,320.65. It is beneficial to the NUA, since material prices continually increase. Approximately 827 feet of 8-inch, 10-inch, 12-inch and 18-inch pipe will be purchased, stored and used on our next rehabilitation project, which will bid soon.
The reconciliation net change is a decrease of $6,839, most of which results from lines we expected to rehabilitate by open cut, but were able to pipe-burst. The major cost differences include:
• Open Trench Pipe Quantities: Bid Item 5 yields a net decrease of 982 feet of pipe with a cost decrease of $59,902;
• Pipe Bursting Quantities: Bid Items 6 through 10 resulted in a net increase of 2,156 feet of pipe with a cost increase of $79,299.
• Manhole Repairs/Replacement: 37 additional manholes were rehabilitated while 22 manholes were not replaced, and 17 new manholes were not constructed, resulting in a net decrease of $23,700 under Bid Items 11 through 15.
• Service Line Reconnections: Bid Items 16, 17 and 18 yield a net decrease of 35 service reconnections with a cost decrease of $26,125.
Proposed CO3 increases the contract amount by $9,481.65 from $3,145,424 to $3,154,905.65, less than a 1% change. The Fiscal Year Ending 2016 (FYE16) budget includes an unencumbered balance of $870.66 in SMP13 Construction (account 321-9338-432.61-01; project WW0200), a shortfall of $8,612 (rounded) to fund CO3. To fund final payment, staff recommends a supplemental appropriation of $8,612 from the Sewer Maintenance Fund balance (account 321-0000-253.00-00).
RECOMMENDATION: Staff recommends the NUA authorize the appropriation of $8,612 from the Sewer Maintenance Fund balance, as detailed above, approve Change Order No. 3 with Urban Contractors, L.L.C., increasing the contract amount by $9,481.65 to $3,154,905.65, accept Sewer Maintenance Project FYE 2013, and authorize final payment in the amount of $237,459.37.