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HomeMy WebLinkAbout5-24 RESOLUTIONFile Number: 2023-1478 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 5-24 ARKANSAS ONE-CALL SYSTEM, INC. (SERVICE AGREEMENT): A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF UTILITY LOCATING SERVICES FROM ARKANSAS ONE-CALL SYSTEM , INC. IN AN AMOUNT NOT TO EXCEED $50 ,000 .00 PER YEAR FOR ALL CITY DEPARTMENTS ON AN AS-NEEDED BASIS THROUGH DECEMBER 31 , 2029 WHEREAS, Arkansas One-Call System, Inc. provides utility locating services for City departments to make sure that other utilities are not damaged by City projects; and WHEREAS , Ark . Code Ann. § 14-271-107 requires the City of Fayetteville to be a part of the One Call Center as owners of an underground utility system ; and WHEREAS , Arkansas One-Call System, Inc . is the sole provider of this service in Arkansas . NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I: That the City Council of the City of Fayetteville , Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of utility locating services from Arkansas One-Call System , Inc . in an amount not to exceed $50,000.00 per year for all City departments on an as-needed basis through December 31 , 2029 . PASSED and APPROVED on January 2 , 2024 Page 1 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2023-1478 MEETING OF JANUARY 2, 2024 TO: Mayor Jordan and City Council THRU: Susan Norton, Chief of Staff FROM: Tim Nyander, Utilities Director DATE: SUBJECT: Arkansas One-Call System, Inc. – Utility Locating Services RECOMMENDATION: Staff recommends waiving competitive bidding and authorizing the purchase of utility locating services from Arkansas One-Call System, Inc. in an amount not to exceed $50,000.00 per year for all City departments on an as-needed basis through December 31, 2029. BACKGROUND: Arkansas One-Call System, Inc. provides utility locating services for the Water & Sewer Department to make sure that City of Fayetteville employees don’t damage other utilities in the course of installing lines and taps and performing repairs on the water and sewer system. Ark. Code Ann. 14-271-107 requires the City of Fayetteville to be a part of the One Call Center as owners of an underground utility system. Arkansas One-Call System, Inc. is the sole provider of this service in Arkansas. DISCUSSION: For the Water & Sewer Department, locating service from Arkansas One-Call System have usually cost under $35,000.00 annually. However, other City departments utilize Arkansas One-Call. With those other departments, the combined amount will exceed $35,000.00 per year, requiring City Council approval. Since Arkansas One-Call is the sole provider of utility locating services in Arkansas, staff recommends approval of the purchase of utility locating services from Arkansas One-Call System, Inc. in an amount not to exceed $50,000.00 per year for all City departments on an as-needed basis through December 31, 2029. BUDGET/STAFF IMPACT: Funds are available in the Construction Materials accounts within the Water & Sewer Fund and the Street Fund. ATTACHMENTS: SRF (#3), 2023 Membership Fees (#4) Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2023-1478 Arkansas One-Call System, Inc. – Utility Locating Services A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE THE PURCHASE OF UTILITY LOCATING SERVICES FROM ARKANSAS ONE-CALL SYSTEM, INC. IN AN AMOUNT NOT TO EXCEED $50,000.00 PER YEAR FOR ALL CITY DEPARTMENTS ON AN AS-NEEDED BASIS THROUGH DECEMBER 31, 2029 WHEREAS, Arkansas One-Call System, Inc. provides utility locating services for City departments to make sure that other utilities are not damaged by City projects; and WHEREAS, Ark. Code Ann. §14-271-107 requires the City of Fayetteville to be a part of the One Call Center as owners of an underground utility system; and WHEREAS, Arkansas One-Call System, Inc. is the sole provider of this service in Arkansas. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby determines an exceptional situation exists in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and authorizes the purchase of utility locating services from Arkansas One-Call System, Inc. in an amount not to exceed $50,000.00 per year for all City departments on an as-needed basis through December 31, 2029. City of Fayetteville Staff Review Form 2023-1478 Item ID 1/2/2024 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Tim Nyander 12/7/2023 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends waiving competitive bidding and authorizing the purchase of utility locating services from Arkansas One-Call System, Inc. in an amount not to exceed $50,000.00 per year for all City departments on an as- needed basis through December 31, 2029. Budget Impact: 5400.720.XXXX-5216.00 Water and Sewer Account Number Fund N/A N/A Project Number Project Title Budgeted Item?Yes Total Amended Budget $1,163,418.00 Expenses (Actual+Encum)$- Available Budget $1,163,418.00 Does item have a direct cost?Yes Item Cost $50,000.00 Is a Budget Adjustment attached?No Budget Adjustment $- Remaining Budget $1,113,418.00 V20221130 Purchase Order Number:Previous Ordinance or Resolution # Change Order Number:Approval Date: Original Contract Number: Comments: (over) Arkansas 811 Member Fees 2023 Members of Arkansas 811 pay fees to finance the cost of providing the statewide system to process notices from excavators of their intention to dig, drill or blast and to promote digging safely. The fees fall into two categories — basic monthly fees and call fees. Member Types Arkansas 811 members fall into one of three categories: Public Authority Membership A Public Authority Member is limited to owners or operators of utility systems which are governmental entities or otherwise political subdivisions of the State of Arkansas or the United States, such as municipalities, counties, improvement districts, rural water associations, and similar bodies and organizations. Premium Membership A Premium Member includes any member whose facilities are primarily engaged in interstate transmission or whose facilities are not connected directly to end users other than themselves. Regular Membership All other owners and operators of underground facilities. Member Categories Members fall into one of 12 categories based on the total number of notices during the previous year: Category Minimum Notices Maximum Notices Annual Notices Included A 0 150 150 B 151 360 240 C 361 750 0 D 751 1,500 0 E 1,501 3,000 0 F 3,001 6,000 0 G 6,001 15,000 0 H 15,001 30,000 0 I 30,001 75,000 0 J 75,001 150,000 0 K 150,001 300,000 0 L 300,001 500,000 0 (over) Basic Fees The Basic Fee covers the cost of servicing the member with record-keeping, information, mailings, screening of locates not in a member's territory, and the statewide education and damage prevention program. It also covers the cost of the notices included in the basic fee. Monthly Basic Fees Category Regular Members Public Authority Premium Member A 19.50 11.40 29.28 B 34.80 24.36 52.20 C 46.50 32.58 69.78 D 69.00 48.30 103.50 E 114.00 79.80 171.00 F 204.00 142.80 306.00 G 474.00 331.80 711.00 H 924.00 646.80 1,386.00 I 2,274.00 1,591.80 3,411.00 J 4,524.00 3,166.80 6,786.00 K 9,024.00 6,316.80 13,536.00 L 15,024.00 10,516.80 22,536.00 Call Fees Call fees cover the cost of receiving the locate requests in the center, processing to determine which members need to be notified, and transmitting the notices to the appropriate members. Call fees are billed on a monthly basis after the free notices included in the basic fees have been used: Type Notice Cost Per Ticket Data Transmission (modem/internet/FTP) .95 Facsimile 1.40 Voice 3.00 Billing — Members are invoiced for both basic fees and call fees (should they exceed the number of “free” notices included) on a monthly basis. Invoices are due and payable within 20 days of the date of invoice. A late charge of 3% is assessed if the invoice is not paid within 30 days. Effective Date: 01/01/2009