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CHANGE ORDER NO. ONE TO CONTRACT K-1819-113: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SILVER STAR CONSTRUCTION COMPANY, INC., INCREASING THE CONTRACT BY $206,335.28 FOR A REVISED CONTRACT AMOUNT OF $1,515,485.28 FOR THE URBAN ASPHALT PAVEMENT REPAIR CAPITAL IMPROVEMENT PROJECT #1 (2015, 2016, AND 2019) AND BUDGET TRANSFER BETWEEN PROJECT ACCOUNTS.
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BACKGROUND: The City of Norman funds a portion of its annual asphalt street repairs through the City’s Capital Improvement Program (CIP) budget. Other asphalt street repairs are also conducted in Norman using funds from the Street Maintenance General Obligation Bond Program and the City’s General Fund. Locations are chosen using the City’s Pavement Management System (PMS) and visual inspections. Repairs are made by both City of Norman employees and qualified paving contractors.
The Streets CIP Urban Asphalt Pavement Repair Project #1 involves a 2-inch mill and inlay of new asphalt pavement on existing residential streets. In order to complete the projects in a timely manner, it was determined to be necessary to complete these projects using private contract services. The locations included in this project are:
Haddock Street from Peters Avenue to Crawford Avenue (2015; project SC0104)
36th Avenue NE from Alameda Street to Robinson Street (2016; project SC0581)
Park Drive from Symmes Street to Elm Avenue (2016; project SC0585)
Fountaingate Addition (2019; project SC0641)
Berkeley Addition (2019; project SC0646)
108th Avenue NE from Franklin Road to Stella Road (2016; project BP0397)
On April 23, 2019, City Council awarded the Streets CIP Urban Asphalt Pavement Repair Project #1 contract K-1819-113 to Silver Star Construction, Inc. of Moore, Oklahoma in the amount of $1,309,150.
DISCUSSION: Silver Star Construction, Inc. has completed work on all projects, excluding Haddock Street from Peters Avenue to Crawford Avenue, included in the scope of work for Contract No. K-1819-113. The remaining scope of work for Haddock Street was planned as an asphalt repair consisting of a 2-inch mill and inlay of new asphalt pavement.
Silver Star Construction, Inc. recently began construction on Haddock Street from Peters Avenue to Crawford Avenue as a part of Contract K-1819-113 for the Streets CIP Urban Asphalt Pavement Repair Project #1. After the milling of the road began, it was discovered that the existing asphalt was very thin and subgrade below the paving had failed in many locations. Based on this discovery, it was determined that the planned repair consisting of a 2-inch mill and inlay of new asphalt pavement would not be adequate to repair the street, and a full reconstruction of the street including repairing the subgrade below the pavement is required. Because work is already underway on Haddock Street, there is some urgency to this change order. Staff does not want the contractor to stop work and inconvenience the neighbors any longer; therefore, staff recommends amending contract K-1819-113 with Silver Star Construction, Inc. to add reconstruction of Haddock Street from Peters Avenue to Crawford Avenue to the contract scope of work.
Change Order No. 1 will result in an increase of $206,335.28, increasing the total contract amount from $1,309,150.00 to $1,515,485.28 or 15.8%. If approved, the additional work will include stabilizing and re-compacting the subgrade, removal and replacement of the concrete curb and gutter and replacement of the driveway approaches.
Funds for Change Order No. 1 are currently available in the Street Maintenance Bond Road Reconstruction Project - Lahoma Avenue from Gray Street to Nebraska Street, Construction (Account Org 505093385; Object 46101; Project BP0247). The Lahoma Avenue project was completed in November, 2019 under budget because of receipt of competitive bids that came in below the project estimate.
RECOMMENDATION No. 1: Staff recommends approval of Change Order No. 1 to Contract K-1819-113 between the City of Norman and Silver Star Construction, Inc. for the Streets CIP Urban Asphalt Pavement Repair Project #1, increasing Contract K-1819-113 by $206,335.28.
RECOMMENDATION No. 2: Staff further recommends approval of a transfer of funds in the amount of $206,335.28 from the Street Maintenance Bond Road Reconstruction Project - Lahoma Avenue from Gray Street to Nebraska Street, Construction (Account Org 505093385; Object 46101; Project BP0247) to the Street Maintenance Bond Road Reconstruction Project - Haddock Street from Peters Avenue to Crawford Avenue Construction Account (Org 50595511; Object 46301; Project BP0457).