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CHANGE ORDER NO. ONE TO CONTRACT K-1718-10: BY AND BETWEEN THE CITY OF NORMAN, OKLAHOMA, AND SILVER STAR CONSTRUCTION COMPANY, INC., DECREASING THE CONTRACT AMOUNT BY $220,182.21 FOR A REVISED CONTRACT AMOUNT OF $823,707.79 FOR THE 2016 URBAN ASPHALT PAVEMENT REHABILITATION BOND PROGRAM, FYE 2018 LOCATIONS; AND FINAL ACCEPTANCE OF THE PROJECT.
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BACKGROUND: In the Norman General Obligation Bond Election of April 2016, voters approved the 5-year Street Maintenance Bond Program. All bond projects are to be completed in five years or by 2021 under the approved program budget of $25,000,000. The program includes (4) four phases or categories of street maintenance projects as follow:
• Urban Asphalt Streets
• Urban Concrete Streets
• Rural Roads
• Urban Street Reconstruction
Locations throughout Norman to be maintained are determined prior to the bond election using the City’s pavement management system. The pavement management system uses field data to numerically rate each street in Norman. The streets with the lowest ranking are a priority to be maintained. During each year of the 2016 Street Maintenance Bond Program the streets that were identified for that year will be maintained. The FYE 2018 Urban Asphalt Street Rehabilitation Bond projects included 16 selected residential streets, in seven (7) different subdivisions located throughout the City of Norman.
DISCUSSION: Bid specifications and documents were advertised on June 30, 2017 and July 6, 2017. Six (6) paving contractors received a set of bid documents. The bid opening was conducted on July 20, 2017. On August 8, 2017, the City Council awarded the FYE 2018 Urban Asphalt Street Rehabilitation Bond Project to Silver Star Construction of Moore in the amount of $1,043,889.50, which was $158,420.50 or 13.18% less than the engineer’s estimate of $1,202,310
On October 23, 2017, construction started on the FYE 2018 Urban Asphalt Street Maintenance Bond projects.
All work, including the rehabilitation of 16 selected residential streets, in seven (7) different subdivisions, was completed per the contract specifications. A final pay application of $41,185.39 was submitted by the contractor on February 15, 2019.
The total work completed amounted to $823,707.79 leaving a balance of $220,182.21. This underrun of 21% is attributed to underruns of unit price bid items including; 1) asphalt deep patching, 2) edge milling, and 3) concrete curb and gutter. These neighborhood asphalt street rehabilitation projects are challenging to estimate quantities due to the unique conditions at each location. This will result in an overall savings to the 2016 Street Maintenance Bond Program.
RECOMMENDATION NO. 1: Staff recommends final acceptance of the 2016 Street Maintenance Bond Program, Urban Asphalt Street Rehabilitation Project, FYE 2018 locations, Contract K-1718-10, and further recommends that final payment in the amount of $41,185.39 be directed to Silver Star Construction of Moore, OK.
RECOMMENDATION NO. 2: Staff recommends approval of Change Order No. 1 (final) decreasing the contract by $220,182.21. If approved, the total contract amount with Silver Star Construction, Inc. of Moore will decrease to $823,707.79 from $1,043,890, a decrease of 21%.