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CONSIDERATION OF AWARDING BID 1819-52, APPROVAL OF CONTRACT K-1819-113 WITH SILVER STAR CONSTRUCTION, INC., IN THE AMOUNT OF $1,309,150; PERFORMANCE BOND B-1819-65, STATUTORY BOND B-1819-66, AND MAINTENANCE BOND MB-1819-50 FOR THE URBAN ASPHALT PAVEMENT REPAIR CAPITAL IMPROVEMENT PROJECT #1 (2015, 2016, AND 2019) AND ADOPTION OF RESOLUTION R-1819-78 GRANTING TAX EXEMPT STATUS.
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BACKGROUND: The City of Norman funds a portion of its annual asphalt street repairs through the City’s Capital Improvement Program Budget. Other asphalt street repairs are also conducted in Norman using funds from the Street Maintenance Bond Program and the City’s General Fund. Locations are chosen using the City’s Pavement Management System (PMS) and visual inspections. Repairs are made by both City of Norman employees and qualified paving contractors.
This project is funded in Asphalt Pavement Maintenance, Materials (account 050-9511-431.63-01; projects SC0104, SC0581, SC0585, and SC0646), and Rural Road Bond Improvements, Construction (account 050-9371-431.61-01; project BP0397), with a total of $1,319,335. Bid specifications and documents were advertised on March 7, 2019 and March 14, 2019.
DISCUSSION: The project involves full-depth repairs to all streets as needed, followed by a 2 inch mill and inlay of new asphalt pavement. All locations will also have pavement markings reapplied upon completion of the paving if paving markings existed beforehand.
In order to complete the projects in a timely manner and get back on regular budget schedule, it was determined necessary to complete these projects using private contract services. These projects were originally intended to be completed using city forces. The delay in completing these projects is due to staff turnover and inadequate staffing in the Street Division.
The locations included in this project are:
Haddock Street; Peters - Crawford Avenue (2015; project SC0104)
36th Avenue NE; Alameda Street - Robinson Street (2016; project SC0581)
Park Drive; Symmes Street - Elm Ave (2016; project SC0585)
Fountaingate Addition (2019; project SC0641)
Berkeley Addition (2019; project SC0646)
108th Avenue NE; Franklin Road - Stella-Road (2016; project BP0397)
The bid opening was conducted on March 28, 2019 and two (2) contractors submitted bids. The Engineer’s Estimate is $1,399,341. The lowest bid in the amount of $1,309,150 submitted by Silver Star Construction Company of Moore, OK is $90,191 (6.45% percent) below the engineer’s estimate. The average of the two (2) bids is 1,312,203. Silver Star Construction Company has previously worked for the City of Norman, and the firm received favorable references from other cities on similar projects. If approved, construction will begin on these projects in May, 2019 and will be completed in phases prior to November 2019.
RECOMMENDATION NO 1: Staff has reviewed the bids and recommends that Bid 1819-52 for the CIP Urban Asphalt Pavement Rehabilitation BID #1 (FYE 2015-2019), be awarded to the low bidder, Silver Star Construction Inc. in the amount of $1,309,150.
RECOMMENDATION NO 2: Staff further recommends that, upon approval of Bid 1819-52, the following contract and bonds be approved:
Contract K-1819-113
Performance Bond B-1819-65
Statutory Bond B-1819-66
Maintenance Bond MB-1819-50
RECOMMENDATION NO 3: Staff further recommends that Resolution R-1819-78 be adopted authorizing Silver Star Construction Company Inc. as project agent to avoid the payment of sales taxes on materials purchases related to the project.