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CONSIDERATION OF BID 1516-30, CONTRACT K-1516-53 BY AND BETWEEN THE NORMAN UTILITIES AUTHORITY AND MCKEE UTILITY CONTRACTORS, INC., IN THE AMOUNT OF $207,500; PERFORMANCE BOND B-1516-15; STATUTORY BOND B-1516-16, AND MAINTENANCE BOND MB-1516-13 FOR THE BISHOP CREEK WATER LINE CROSSING PROJECT AND BUDGET APPROPRIATION FROM THE WATER FUND BALANCE.
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BACKGROUND: During 2014, Water Line Maintenance staff discovered that a 12-inch waterline at the west end of Cedar Lane had ruptured at an inaccessible location under Bishop Creek. The valves on either side of the creek were closed to prevent additional water loss, but that action also eliminated a secondary water feed to customers in the Eagle Cliff, Cobblestone, Cedar Lane, and Monterrey subdivisions in southeastern Norman (map attached). This project will replace the failed line with a new directional drilled, fused PVC water line under Bishop Creek.
DISCUSSION: An advertisement for bids was published in the Norman Transcript on November 26 and December 3, 2015. Three (3) bids were received and opened on December 17, 2015. McKee Utility Contractors, Inc. of Prague, OK was the low bidder at $207,500. Work should begin during January 2016, with 90 days contract completion time.
The Fiscal Year Ending 2016 (FYE16) budget for the Waterline Replacement Project (project WA0199) includes an unencumbered balance of $99,835 (rounded) in Construction (account 031-9683-462.61-01), a shortfall of $107,665 from the low bid amount. Staff recommends a supplemental appropriation of $120,585, the shortfall plus ten percent (10%) contingency, from the Water Fund balance (account 031-0000-253.00-00).
The City of Norman is exempt from the payment of any sales or use taxes. Pursuant to Title 68 O.S., Section 1356 (10) and as allowed by Oklahoma Tax Commission Rules Part 27 Trust Authority 710:65-13-140, direct vendors to the Norman Utilities Authority (NUA) are also exempt from those taxes. A bidder and his...
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