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Home My WebLink About45-23 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 45-24 File Number: 2024-1682 BLACK HILLS ENERGY ARKANSAS, INC. (SERVICE AGREEMENT): A RESOLUTION TO APPROVE AN AGREEMENT WITH BLACK HILLS ENERGY ARKANSAS, INC. IN THE AMOUNT OF $90,950.84 FOR UTILITY RELOCATIONS ASSOCIATED WITH THE MIDTOWN CORRIDOR PROJECT ALONG DEANE STREET, AND TO APPROVE A BUDGET ADJUSTMENT - 2019 STREET IMPROVEMENT BOND PROJECT 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 authorizes Mayor Jordan to sign an agreement with Black Hills Energy Arkansas, Inc. in the amount of $90,950.84 for utility relocations associated with the Midtown Corridor Project along Deane Street. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. PASSED and APPROVED on February 6, 2024 Page 1 Attest: `wi n Y OF • 1. �? Kara Paxton, City Clerkl reasurer _FAYEI-i E V!i_t •; 1�`vv�``` CITY OF FAYETTEVILLE ARKANSAS MEETING OF FEBRUARY 6, 2024 CITY COUNCIL MEMO 2024-1682 TO: Mayor Jordan and City Council THRU: Chris Brown, Public Works Director Susan Norton, Chief of Staff FROM: Matt Casey, Engineering Design Manager DATE: SUBJECT: Black Hills Energy Agreement for Utility Relocations for the Midtown Corridor Project RECOMMENDATION: Staff recommends approval of an agreement with Black Hills Energy Arkansas, Inc. in the amount of $90,950.84 for utility relocations associated with the Midtown Corridor Project along Deane Street and approval of a budget adjustment. BACKGROUND: The Midtown Corridor is a project in the 2019 Transportation Bond Program and includes several different components. The corridor is 2.3 miles in length and runs in an east -west direction through a flat part of the middle of the city from 1-49 at Porter to College Avenue at Poplar Street. The project includes vehicular improvements along Stephen Carr Blvd. and Deane Street from the interstate to Garland Avenue. The project includes street improvements with new turn lanes and drainage as well as separated pedestrian and bicycle facilities. The street, drainage pedestrian, and bicycle improvements will continue along Sycamore Street from Garland Avenue to the Razorback Greenway. From the Greenway to College Avenue, the project will include multi -use trail construction along the Poplar Street alignment. Finally, a connection to the south from Poplar Street to Gregory Park was included in the design. The first phase of this corridor included the improvements to Stephen Carr Blvd. and Deane Street from 1-49 to the east side of the new fire station. Construction is complete for this phase. In August of 2022, the City Council approved a contract with Crossland Heavy Contractors, Inc. to provide construction manager at risk pre -bidding services for the second phase of this project. In September of 2023, the City Council approved a change order for the construction of the second phase. This phase includes the remainder of the overall project scope. DISCUSSION: After the start of construction along Deane Street, Black Hills Energy identified portions of their natural gas system outside of the city right of way that will need to be relocated in order to construct this project. Black Hills Energy has provided a proposal of $90,950.84 for this relocation. BUDGET/STAFF IMPACT: These utility relocations are funded by the 2019 Transportation Bond Program. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 ATTACHMENTS: SRF (#3), BA (#4), Utility Work Agreement -Midtown Corridor (#5) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas Y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2024-1682 Black Hills Energy Agreement for Utility Relocations for the Midtown Corridor Project A RESOLUTION TO APPROVE AN AGREEMENT WITH BLACK HILLS ENERGY ARKANSAS, INC. IN THE AMOUNT OF $90,950.84 FOR UTILITY RELOCATIONS ASSOCIATED WITH THE MIDTOWN CORRIDOR PROJECT ALONG DEANE STREET, AND TO APPROVE A BUDGET ADJUSTMENT - 2019 STREET IMPROVEMENT BOND PROJECT 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 authorizes Mayor Jordan to sign an agreement with Black Hills Energy Arkansas, Inc. in the amount of $90,950.84 for utility relocations associated with the Midtown Corridor Project along Deane Street. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. Page 1 Matt Casey Submitted By City of Fayetteville Staff Review Form 2024-1682 Item ID 2/6/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 1/17/2024 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Staff recommends approval of an agreement with Black Hills Energy Arkansas, Inc. in the amount of $90,950.84 for utility relocations associated with the Midtown Corridor Project along Deane Street and approval of a budget adjustment. 4702.860.7218-5809.00 Account Number 46020.7218.1020 Project Number Budgeted Item? Yes Budget Impact: Street Projects 2022 Bonds Fund Streets Projects - Midtown Corridor Project Title Total Amended Budget Expenses (Actual+Encum) Available Budget Does item have a direct cost? Yes Item Cost Is a Budget Adjustment attached? Yes Budget Adjustment Remaining Budget $ 15,252,773.00 $ 12,701,768.01 a 2,551,004.99 $ 90,950.84 $ 90,951.00 $ 2,551,005.15 V20221130 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division ENGINEERING (621) Adjustment Number 2024 /Org2 Requestor: Matt Casey BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends approval of an agreement with Black Hills Energy Arkansas, Inc. in the amount of $90,950.84 for utility relocations associated with the Midtown Corridor Project along Deane Street and approval of a budget adjustment. COUNCIL DATE: ITEM ID#: 2/6/2024 2024-1682 Noll y Black 717712024 7:24 P/VI Budget Division TYPE: JOURNAL #: Date D - (City Council) RESOLUTION/ORDINANCE I GLDATE: CHKD/POSTED: TOTAL Account Number - - Increase / (Decrease) Expense Revenue Prolect.Sub# Project Sub.Detl AT v.2024116 Account Name 4702.860.7218-5809.00 90,951 - 46020 7218.1020 EX Improvements - Street 4702.860.7999-5899.00 (90,951) - 46020 7999 EX Unallocated - Budget K:\Engineering Design Services\Projects\BOND PROGRAM\2019 Bond Program\Porter-Deane-Sycamore-Poplar\Council and Committee Actions\Black Hills Agree ment\2024-1682 BA Midtown Corr BHE utility relocate 1 of 1 Black Hills Energy UTILITY WORK AGREEMENT (DEVELOPER) Developer: City of Fayetteville Developer's Address: 113 W Mountain St. Favetteville. Ar 72701 Job Location: Deane St- UofA This Utility Work Agreement ("Agreement") is made and entered into this 11th day of January, 2024, by and between City of Fayetteville (hereinafter referred to as "Developer"), and Black Hills Energy Arkansas, Inc. (hereinafter referred to as "Black Hills"). WHEREAS, Developer proposes to make certain improvements at the location designated above, and as a result of such improvements, Black Hills must adjust, enhance, locate, observe, and/or relocate certain of its existing facilities, or construct additional facilities; and WHEREAS, in connection with Developer's proposed improvements, Developer wishes Black Hills to do the following: Project to begin at GPS 36.086384,-94.190492 where BlackHills will tie onto existing 4" steel gas main and extend east, installing 2100' of 4" steel gas main to tie back into existing gas main at GPS 36.086185,-94.183692. Once new 4" steel aas main is installed, the old 4" steel aas main will be retired in place. (hereinafter referred to as the "Work"); and WHEREAS, such Work is shown in detail in Black Hills' plans, sketches, estimate of cost, and specifications (when applicable), which are attached to this Agreement and made a part hereof; and WHEREAS, Developer agrees to pay for the cost of such Work to the extent herein agreed upon. Impnovinglife with energy www.blackhillsenergy.com Energy NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND OTHER VALUABLE CONSIDERATION HEREIN ACKNOWLEDGED, DEVELOPER AND BLACK HILLS AGREE AS FOLLOWS: 1. Where applicable hereunder by reason of new utility occupancy or crossing of Developer's property, Developer hereby grants to Black Hills an easement or license to install and operate utility facilities on or across Developer's property as shown on the approved plans or sketch maps attached hereto and made a part hereof. Prior to Black Hills beginning the Work, Developer will, at no cost to Black Hills, furnish Black Hills with all necessary easements, rights of way and permits. Those easements, rights of way and permits shall release Black Hills from any and all claims for damage done to streets, land, fences, and crops arising out of the performance of the Work. 2. Where applicable hereunder by reason of new construction on existing utility rights of way, Black Hills hereby grants to Developer the right to use for Developer's purposes the lands within the limits of the improvement project limits on or across which Black Hills holds a valid property interest antedating Developer's rights which were subsequently acquired in the same lands, and which property rights Black Hills shall retain so long as Black Hills, its successors or assigns continues such use and occupancy and does not abandon, and thereby release, such property interest to Developer through removal of facilities in performing the Work or by subsequent removal of facilities for Black Hills' convenience; and Developer hereby agrees that Black Hills, by granting said right and by said continued joint use and occupancy, does not waive any future claim for reimbursement for any costs as may be eligible for reimbursement by reason of such prior property interest, nor does Black Hills waive any other legal or property right held under the laws or Constitution of the State of Arkansas or the United States. 3. In the event that future construction, reconstruction, expansion, relocation, rehabilitation, betterment, maintenance, or other work on the facilities owned and operated by either Developer or Black Hills in the area jointly occupied or used under either or both Paragraphs 1 or 2 of this Agreement will disturb, detrimentally affect, interfere, or be inconvenient to the facilities or responsibilities of either party, the parties hereto shall reach agreement in writing as to locations, extent, and methods of such work before the work is undertaken. In a case of emergency, and where immediate action is necessary for the protection of the public and to minimize damage to or loss of investment in the property of Developer or of Black Hills, either party hereto may, at its own responsibility and risk, make any necessary emergency repairs, and shall notify the other party hereto of such action as soon as practicable. 2 Black Nils Energy 4. The estimated cost of the Work is $90,950.84. After it has completed the Work, Black Hills will bill Developer for the actual cost of the Work. Developer shall pay such invoice within 30 days of Developer's receipt of the invoice. The estimated and actual cost of the Work includes a tax gross up amount. The tax gross up amount will appear as a separate line item on Developer's bill. The tax gross up reimburses Company for Company's federal and state income tax expense, on a net present value basis, associated with the collection of the cost of the Work from Developer. For refundable contributions, the same percentage rate is applied to refund the tax gross -up to Developer. 5. Black Hills will perform the Work, as described on the first page of this Agreement. Black Hills will endeavor to perform the Work within a reasonable time period, subject to applicable laws, rules and regulations of governmental authorities, and subject to any delay occasioned by lack of right of way, availability of materials and supplies, force majeure or events or conditions of whatsoever nature reasonably beyond Black Hills' control, and further conditioned upon the receipt of all required approvals and consents in form and substance acceptable to Black Hills. Black Hills shall not be obligated to commence the Work unless and until, at no cost to Black Hills, all necessary easements and rights of way have been executed, acknowledged and delivered to Black Hills in a form acceptable to Black Hills. 6. Title to and ownership of facilities which are the subject of the Work shall forever be and remain exclusively and unconditionally vested in Black Hills. Developer understands, acknowledges and agrees that Developer shall have no title to, interest in, or ownership of those facilities. 7. It is mutually agreed by the parties hereto that the provisions of this Agreement pertaining to property rights, right of way occupancy permission, access for servicing when applicable, and joint use of rights of way shall continue in full force and effect from the date of this Agreement, and shall be perpetually binding upon each party, and its representatives, successors and assigns. 8. Developer and Black Hills acknowledge that there are no agreements or understandings, either written or oral, between the parties related to the Work, other than as set forth in this Agreement, and that this Agreement (including any attachments hereto) contains the entire agreement between the parties regarding the Work. 9. This Agreement shall be governed in accordance with the laws of the State of Arkansas, the rules and regulations of the Arkansas Public Service Commission, and the Tariff of Black Hills. In the event of a conflict between this Agreement and any such laws, rules, regulations or Tariff, such laws, rules, regulations or Tariff shall control. BlaodrHMFEMPY 10. In the event Black Hills is required to initiate litigation to enforce the terms and conditions of this Agreement, then Black Hills shall have the right to recover from Developer Black Hills' costs and expenses of such litigation, including reasonable attorney fees. 11. Developer acknowledges that it has been afforded an opportunity to have its attorney review and explain the terms of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by their duly authorized representatives on the date stated above. BLACK H4SNERGY ARKANSAS INC. By: Tron Hodges Its: Senior Manager- Gas Operations Federal Tax I.D. No.: 0 P1