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CHANGE ORDER NO. FOUR TO CONTRACT NO. K-1213-88: BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND URBAN CONTRACTORS, L.L.C., DECREASING THE CONTRACT AMOUNT BY $129,513.43 FOR A REVISED CONTRACT PRICE OF $3,145,318.57 FOR THE SEWER MAINTENANCE PROJECT FY 2011 AND FINAL ACCEPTANCE OF THE PROJECT.
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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 June 11, 2013, the Norman Utilities Authority (NUA) approved Contract K-1213-88 for Sewer Maintenance Project FYE 2011 (SMP11) with Urban Contractors, LLC (Urban) in the amount of $2,774,200 to replace sewer lines and manholes. Construction began July 1, 2013 and was scheduled to be complete by September 14, 2014.
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 to October 2, 2014. CO1 provided for replacement of storm sewer and water lines in conflict with proposed sewer line replacement near Bishops Landing Apartments.
On February 25, 2014, the NUA approved Change Order Number 2 (CO2) increasing the contract amount by $139,708 to $2,933,242 and extending the contract time by 24 calendar days to October 26, 2014. CO2 provided for pipe-bursting of sewer lines in two supplementary areas at Page Street and Brooks Street, near the University of Oklahoma (OU), and along Smoking Oak Road.
On April 8, 2014, the NUA approved Change Order Number 3 (CO3) increasing the contract amount by $341,590 to $3,274,832. CO3 provided for pipe-bursting of sewer lines in Sooner Mobile Home Park on Classen Boulevard and an area bounded by Timberdell to the north, Pickard to the west, Lakewood to the south, and Chautauqua to the east.
DISCUSSION: All work was complete June 15, 2014 and the contract is now satisfied. Proposed Final Change Order Number 4 (CO4) decreases the contract amount by $129,513.43 from $3,274,832 to $3,145,318.57, a decrease of about 4%. CO4 consists of two adjustments: 1) purchase remaining pipe material from the contractor and 2) reconciliation of “as-bid” to “as-built” final quantities.
The purchase of the remaining pipe material from the current project is an increase of $6,796.57. It is beneficial to the NUA, since material prices continually increase. As shown in CO4, approximately 700 feet of 8-inch, 10-inch and 12-inch pipe will be purchased, stored and used on our next rehab project, which will bid soon.
As shown on Attachment 1 to CO4, the reconciliation of “as-bid” to “as-built” final quantities yields a net decrease of $136,310. The major cost differences include:
• Point Repairs: Two point repairs were deleted under Bid Item 4 for a decrease of $13,000;
• Open Trench Pipe Quantities: Bid Items 5 and 6 resulted in a net decrease of 264 feet of pipe with a cost decrease of $25,300;
• Creek Crossing Quantity: Bid Item 7 resulted in a decrease of 80 feet of 12-inch pipe with a cost decrease of $13,600;
• Pipe Bursting Quantities: Bid Items 8, 9, 10, 11 and 12 resulted in a net decrease of 373 feet pipe with a cost decrease of $28,414.
• Manhole Repairs/Replacement: 26 additional manholes were rehabilitated while 49 manholes were not replaced resulting in a net decrease of $29,300 under Bid Items 14, 15 and 16.
• Service Line Reconnections: Bid Items 17 and 18 resulted in a decrease of 79 service reconnections with a cost decrease of $24,120.
RECOMMENDATION: Recommend the NUA approve Change Order No. 4 with Urban Contractors, L.L.C., decreasing the contract amount by $129,513.43 to $3,145,318.57, accept the Sewer Maintenance Project FYE 2011, and authorize final payment in the amount of $6,796.57.