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CONSIDERATION OF AWARDING OF BID 1819-10; CONTRACT K-1819-8 WITH W.E.B. CONSTRUCTION, INC., IN THE AMOUNT OF $1,583,150.50; PERFORMANCE BOND B-1819-11; STATUTORY BOND B-1819-12, AND MAINTENANCE BOND MB-1819-6 FOR THE 24TH AVENUE S.E. WATER LINE RELOCATION PROJECT AND ADOPTION OF RESOLUTION R-1819-8 GRANTING TAX EXEMPT STATUS.
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BACKGROUND: On November 22, 2011, the Norman City Council approved Programming Resolution R-1112-62, requesting federal funds for the 24th Avenue East Widening Project. This resolution states the City’s commitment to adhere to the terms and conditions of a federally funded project including engineering design, acquisition of all necessary rights-of-way and relocation of utilities and encroachments at 100% the City’s cost. In return, the Association of Central Oklahoma Governments (ACOG), through the Oklahoma Department of Transportation (ODOT), agrees to provide 80% of the construction cost, estimated at $7,831,000, and administration of the construction with the matching share (20%) from the City of Norman.
On August 28, 2012, the citizens of Norman voted in favor of a Bond Issue to finance the local share of eight transportation/stormwater improvement projects. One of the eight 2012 bond projects is the 24th Avenue East Widening Project. Please see the attached location map showing the project boundaries. The total estimated project cost including design, utility relocations, right-of-way, construction and construction management is $13,008,000. The City’s estimated cost share is $5,177,000.
On February 26, 2013, City Council approved engineering services Contract K-1213-169 with Atkins North America, Inc. for the design of the 24th Avenue East Widening Project between Lindsey Street and Robinson Street in the amount of $875,266.50.
On January 23, 2018, City Council approved Contract K-1718-63 in the amount of $45,413 with Oklahoma Natural Gas (ONG) for Phase 1 (Lindsey to Alameda) utility relocations within private easements.
On January 23, 2018, City Council approved the allocation of $74,200 for acquisition services under On-Call Contract K-1314-103 with Pinnacle Consulting Management Group.
On February 27, 2018, City Council approved Amendment No. 1 to Contract No. K-1213-169 with Atkins North America in the amount of $133,455 for additional design related scope items.
On April 10, 2018, City Council approved Resolution R-1718-102 declaring 24th Avenue East a Recoupment Project.
Proposed improvements for the 24th Avenue East Widening Project include:
• Widen two miles of roadway from two lanes to four lanes
• New traffic signal at 24th Avenue East and Meadowood Boulevard
• Intersection improvements at 24th Avenue East/Meadowood Boulevard and 24th Avenue East /Robinson Street.
• Interconnect traffic signals on 24th Avenue East from Lindsey Street to Robinson Street
• Continuous sidewalks and accessibility
• Stormwater improvements
• On-street bike lanes
DISCUSSION: Prior to the construction of the 24th Avenue East Bond Project, all utilities in conflict with the proposed improvements must be relocated. The City has two existing water lines in conflict with the proposed roadway improvements including a 12” high pressure water line along the west side of 24th Avenue East and a 30” water line along the east side 24th Avenue East. As a result, approximately 3,900 feet of 12” and 3,500 feet of 30” water line need to be relocated ahead of the road project at the City’s expense. Bid documents and specifications for the construction of the 24th Avenue East Phase 1 Water Line Relocation Project were advertised according to State Law. Thirteen (13) potential bidders and suppliers acquired plans and specifications. Six (6) bids were received on August 9, 2018.
The low bidder is W.E.B. Construction, Inc. of Moore, OK, in the amount of $1,583,150.50, which is $161,849.50 less than the next lowest bidder. The Engineer’s estimate for the project is $1,689,600.50 or approximately 6.72% higher than the low bid. Staff has done a comparative analysis of these bids and believes the low bid is competitive and represents a fair bid. W. E. B. Construction has completed several similar construction projects in Oklahoma and has met the bidding requirements set forth in the bid documents.
The funding for this project is available from proceeds of the General Obligation Bonds approved by the voters of Norman in 2012 in the City’s Capital Fund, 24th Avenue East Road Improvements, Utility Relocations (account 050-9552-431.67-01; project BP0192).
This relocation project is anticipated to be completed by January 6, 2019. The Oklahoma Department of Transportation intends to accept bids for the Phase 1 widening project in November 2018 with a delayed start of late-January 2019 to coincide with the completion of the water line relocation.
RECOMMENDATION NO. 1: The project team has reviewed the bids and recommends that Bid 1819-10 for the 24th Avenue East Phase 1 Water Line Relocation Project be awarded to the low bidder, W.E.B. Construction, Inc. of Moore, Oklahoma, in the amount of $1,583,150.50.
RECOMMENDATION NO. 2: Staff further recommends that the following contract and bonds be approved:
Contract K-1819-8
Performance Bond B-1819-11
Statutory Bond B-1819-12
Maintenance Bond MB-1819-6
RECOMMENDATION NO. 3: Staff further recommends that W.E.B. Construction be authorized and appointed as Project Agent via Resolution R-1819-8 for the purpose of avoiding the payment of sales tax on materials purchases related to the project.