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CONSIDERATION OF AWARDING OF BID 1819-8, APPROVAL OF CONTRACT K-1819-10 WITH CENTRAL CONTRACTING SERVICES, INC. IN THE AMOUNT OF $64,870; PERFORMANCE BOND B--1819-15, STATUTORY BOND B-1819-16, AND MAINTENANCE BOND MB-1819-8 FOR THE LAKEHURST DRIVE DRAINAGE IMPROVEMENT PROJECT AND RESOLUTION R-1819-10 GRANTING TAX EXEMPT STATUS.
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BACKGROUND: Over the past several years, residents along Lakehurst Drive in the Oakhurst Addition have experienced flooding and property damage due to stormwater overflows in the street. This portion of the Oakhurst Addition was developed in 1972. The developer met all City standards for public improvements; however, flooding is still occurring in this neighborhood. Staff has worked closely with the residents to evaluate the problem and to develop a solution. In 2017, Public Works Stormwater Division began working with Cardinal Engineering to design improvements to the stormwater system along this street to prevent stormwater from flooding the street in front of 1802 Lakehurst Drive and entering the nearby homes. Based on Cardinal’s analysis, in order to adequately address the flooding in this area, it is necessary to install a new 36 inch stormwater pipe between 1802 and 1806 Lakehurst Drive (see attached drawing). In order to install public stormwater infrastructure of this nature, a permanent drainage easement was necessary on the property located at 1806 Lakehurst Drive (see attached location map). The property owners donated a public drainage easement for the stormwater infrastructure that will be located between 1802 and 1806 Lakehurst Drive, and it was accepted by Council on October 9, 2018.
DISCUSSION: In order to complete this project in a timely manner, it is necessary to use private contracting services. On September 25, 2017, using the Agreement for On-Call Engineering Services between City of Norman/Norman Utilities Authority and Cardinal Engineering, Contract K-0910-62, Cardinal Engineering was authorized in the amount of $22,842.50 to prepare a final design and bid documents for this project.
The bid opening was conducted on November 29, 2018, and four (4) contractors submitted bids. The Engineer’s Estimate is $60,275. The lowest bid in the amount of $64,870 submitted by Central Contracting Service, Inc., is $4,595 (7.6 percent) above the estimate. The average of the four (4) bids is $102,262.94. If approved, construction will begin on this project in January 2019 and will be completed by April 2019.
If approved, funding for Contract K-1819-10 in the amount of $64,870 is available in the FYE 2019 Capital Fund, Stormwater Drainage Projects, Construction (account 050-9968-431.61-01; Project DR0057). Project DR0057 is an ongoing annual Capital Budget Stormwater program to address smaller stormwater drainage problems identified during the course of the fiscal year in neighborhoods, which includes projects such as this.
RECOMMENDATION NO. 1: Staff has reviewed the bids and recommends that Bid 1819-8 for the Lakehurst Drive Drainage Improvements project, be awarded to the low bidder, Central Contracting Services, Inc., in the amount of $64,870.
RECOMMENDATION NO. 2:
Staff further recommends that, upon approval of Bid 1819-8, the following contract and bonds be approved:
Contract K-1819-10
Performance Bond B-1819-15
Statutory Bond B-1819-16
Maintenance Bond MB-1819-8
RECOMMENDATION NO. 3:
Staff further recommends that, upon approval of Contract K-1819-10, Resolution R-1819-10 be adopted authorizing Central Contracting Services, Inc., as project agent to avoid the payment of sales taxes on materials purchases related to the project.