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Home My WebLink About212-25 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 212-25 File Number: 2025-1521 A RESOLUTION TO APPROVE AMENDMENT #1 TO THE COST SHARE AGREEMENT WITH GREATER PRODUCTIONS, LLC IN THE AMOUNT OF $160,729.00 FOR THE INSTALLATION OF SANITARY SEWER AND STORM DRAINAGE UPGRADES TO SERVE THE PARK HOTEL AND OTHER DOWNTOWN DEVELOPMENTS, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on February 18, 2025, City Council passed Resolution 56-25 approving a cost share agreement with Greater Productions, LLC for the installation of sanitary sewer upgrades to serve the Park Hotel and other planned downtown developments; and WHEREAS, during the construction, changes in the sewer installation scope were made that resulted in a reduction in the total cost of the sewer, but a failing storm drain pipe was discovered in the project area that must be replaced. 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 approves Amendment #1 to the cost share agreement with Greater Productions, LLC in the amount of $160,729.00 for the installation of sanitary sewer and storm drainage upgrades to serve the Park Hotel and other planned downtown developments. 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 September 16, 2025 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2025-1521 MEETING OF SEPTEMBER 16, 2025 TO: Mayor Rawn and City Council THRU: Keith Macedo, Chief of Staff FROM: Chris Brown, Public Works Director SUBJECT: Staff recommends approval of a cost share increase in the amount of $160,729 with Greater Productions, LLC for the installation of sanitary sewer and storm drainage upgrades to serve the Park Hotel and other downtown developments and approval of a budget adjustment. RECOMMENDATION: Staff recommends approval of a cost share increase in the amount of $160,729 with Greater Productions, LLC for the installation of sanitary sewer and storm drainage upgrades to serve the Park Hotel and other downtown developments and approval of a budget adjustment to add stormwater funds to the project. BACKGROUND: A sewer study in the downtown area that was developed in response to multiple large development projects has identified a sewer capacity issue on the segment of line that runs west of West Avenue along Spring Street and then south to an existing line that was recently upsized and relocated as part of the development located at 612 W Center Street. A cost sharing contract with the developer of the hotel was developed for installation of sewer upgrades to resolve the capacity issue. Work began on this project in May 2025 and is ongoing. DISCUSSION: During the construction of the project, changes in the sewer installation scope were made that resulted in a reduction in the total cost of the sewer. However, a failing storm drain pipe was discovered in the project area; this pipe was found to be in need of replacement at a cost of $212,050. Funding for the storm drainage replacement will be taken from two projects: 02116 Cost Sharing: $100,000 02108 Other Drainage Projects: $112,050 The net increase of the contract with Greater Productions, LLC is $160,729. BUDGET/STAFF IMPACT: Changes to the project will result in a savings to the water and sewer fund; funding for the additional cost will be funded by two projects in the sales tax capital improvement fund. ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment, 5. Signed Cost Share Agreement, 6. Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov Amendment 1 to Sewer Main Costs Share - Greater Productions - Park Hotel (8-27-2025) Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2025-1521 A RESOLUTION TO APPROVE AMENDMENT #1 TO THE COST SHARE AGREEMENT WITH GREATER PRODUCTIONS, LLC IN THE AMOUNT OF $160,729.00 FOR THE INSTALLATION OF SANITARY SEWER AND STORM DRAINAGE UPGRADES TO SERVE THE PARK HOTEL AND OTHER DOWNTOWN DEVELOPMENTS, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on February 18, 2025, City Council passed Resolution 56-25 approving a cost share agreement with Greater Productions, LLC for the installation of sanitary sewer upgrades to serve the Park Hotel and other planned downtown developments; and WHEREAS, during the construction, changes in the sewer installation scope were made that resulted in a reduction in the total cost of the sewer, but a failing storm drain pipe was discovered in the project area that must be replaced. 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 approves Amendment #1 to the cost share agreement with Greater Productions, LLC in the amount of $160,729.00 for the installation of sanitary sewer and storm drainage upgrades to serve the Park Hotel and other planned downtown developments. 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. Comments: Purchase Order Number: Change Order Number: Previous Ordinance or Resolution # Approval Date: Original Contract Number: 04039.2501 Project Number Budget Impact: Water & Sewer Impact Fee Cost Sharing - Greater Productions Cost Share Fund Water & Sewer4470.621.8810-5817.00 Account Number Project Title City of Fayetteville Staff Review Form 2025-1521 Item ID 9/16/2025 City Council Meeting Date - Agenda Item Only Staff recommends approval of a cost share increase in the amount of $160,729 with Greater Productions, LLC for the installation of sanitary sewer and storm drainage upgrades to serve the Park Hotel and other downtown developments and approval of a budget adjustment to add stormwater funds to the project. N/A for Non-Agenda Item Action Recommendation: Submitted By Chris Brown ENGINEERING (621) Division / Department 8/14/2025 Submitted Date Yes 250,142.24$ 212,050.00$ V20221130 Budgeted Item? Does item have a direct cost? Is a Budget Adjustment attached? Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget 1,156,513.00$ 906,370.76$ No Yes 212,050.00$ 250,142.24$ City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division /Org2 ENGINEERING (621) Adjustment Number 2025 Requestor:Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Staff recommends approval of a cost share increase in the amount of $160,729 with Greater Productions, LLC for the installation of sanitary sewer and storm drainage upgrades to serve the Park Hotel and other downtown developments and approval of a budget adjustment. COUNCIL DATE:9/16/2025 ITEM ID#:2025-1521 Holly Black 8/28/2025 10:49 AM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2025826TOTAL-- Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 4470.800.8820-5809.00 (100,000)-02116 1 EX Improvements - Street 4470.621.8810-5817.00 (112,050)-02108 1 EX Improvements - Bridge & Drainage 4470.621.8810-5817.00 212,050 -02108 4039.2501 EX Improvements - Bridge & Drainage -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 AGREEMENT FOR COST SHARE OF SANITARY SEWER IMPROVEMENT COSTS This Agreement, made and entered into on this 31 day of January 2025, by and between the City of Fayetteville, Arkansas ("City") and Greater Productions, LLC (with related entities The Park Hotel, LLC, and Reindl Properties, Inc) ("Owner"), witnesseth: WHEREAS, Owner is currently constructing the rerouting of the Greenway trail, parking for the Metro District and a hotel at 215 W. Spring Street; and WHEREAS, Owner's development partially requires the increase size of a sanitary sewer line on site and downstream of the development; and WHEREAS, Owner will be constructing these improvements through a grading permit issued by the City and the quote for construction of the sewer line is attached hereto as Exhibit A and made a part hereof, and WHEREAS, Owner's proportional impact on the City's sewer infrastructure, and therefore its responsibility for the cost of upsizing the sewer line, has been calculated at 10.2% of the total cost which is estimated to be $1,176,518; and WHEREAS, upsizing the line is necessary to provide sanitary sewer service to this and three other large projects in the area and the City will seek reimbursement as those projects proceed to development. The City will not delay inspections, approvals, or acceptance of the work or withhold payment pending agreements or development progress from other projects. NOW, THEREFORE, the City of Fayetteville, Arkansas and Greater Production, LLC agree as follows: 1. The City of Fayetteville, Arkansas agrees to: A. Reimburse Owner an estimated $1,056,513 which represents 89.8% of the cost of the work describe in Exhibit "A", attached. B. Reimbursement is an estimate and does not include unforeseen scope that could be encounter during the construction of this work. The City of Fayetteville will consider, on a case -by -case basis, reimbursement for any additional costs to rectify the unforeseen or out of scope additions to the project within any project contingency approved by the Fayetteville City Council. C. Payments due to Owner, shall be remitted within thirty (30) days after receipt of valid invoices, and pending successful inspection and acceptance of the phased completed work by the City of Fayetteville Engineering Division. The milestone phases include: Page 1 of 3 a. Payment in the amount of 20% at the time of completion of the first (north) section North South underground (sanitary and storm sewer) scope of work that goes from Reindl Properties property line to the new turning circle on the east. b. Payment in the amount of 30% at the time of completion of the East West underground (sanitary and storm sewer) scope of work that goes from West Avenue to the new turning circle on the east. c. Payment in the amount of 20% at the time of completion of the second (south) section North South underground (sanitary and storm sewer) scope of work that goes from that goes from Reindl Properties property line, south through the adjacent property to the point of connection. d. Final remaining amount of 30% upon completion of the North South backfill, paving, and other repairs do to the scope of work that goes from the new turning circle on the east, south through the adjacent property to the point of connection. D. Authorize the construction of the sewer line for the Phase 1 — B ("offsite sewer replacement') in the current location within the existing utility easement or right of way on the adjacent property owned by the Metro Lofts Homeowner's association. 2. Owner agrees to: A. Provide the necessary and normal project management, inspection, and testing as necessary to complete the work shown on Exhibit "A", in accordance with the City of Fayetteville Standard Specifications, and City Standard Details, both of which are available at http://www.fUetteville-ar.gov/445/En ing eering- Specs-Details. B. Provide a copy of the invoices from the Contractor(s) upon completion and City approval of the street improvements described in Exhibit "A". C. Pay for the sewer improvements (with reimbursement of 89.8% of the cost by the City of Fayetteville). 3. It is further understood that the contract for construction is between Owner and their Contractor and that the City has no contractual obligation with either the Contractor or any agent for Owner. The City's only obligation shall be to participate in this agreement and pay 89.8% of the cost with a not -to -exceed amount of $1,056,513, plus any project contingency approved by the Fayetteville City Council, for the sewer improvements. Page 2 of 3 IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE, WE SIGN BELOW: Greater Productions, LLC CITY OF FAYETTEVILLE, ARKANSAS By: ��w: �• By: Brian Reindt Manager MOLLY RAWN, Mayor LATT ST:/ ATTEST: iavmrv;ua,c ppkRry P' Jfi By: By, C arl erno le, CEO KARA PAXTON City Clerk -Treasurer Two Trout, L Developer Page 3 of 3 EXHIBIT A Vicinity Map Not to Scale EXHIBIT B Cost Model Development Budget Date: 10 December 2024 - revised 30 January 2025 Cost Code Hard Costs 80% 20-10 Construction Contract Scope A - Off -site underground sanitary sewer upgrade 20-30 Offsite Engineering, inspections and testing - Olsson Engineering Sanitary Sewer Main Upgrade Demolition of existing aspault Excavation Pump around existing sewer flow Remove existing sanitary sewer main Cost of Work $ 51,755 $ 441,855 Provide and install with 24" sanitary sewer main 344 if Replace existing manholes with 5' manholes 2 units $ Survey $ Erosion Control $ Backfill Repair paving and curb Scope B - Metro & Park Hotel underground sanitary sewer upgrade Sanitary Sewer Main Upgrade Demolition of existing aspault Excavation Flowfill existing 12" sanitary sewer main Provide and install with 18" SDR sanitary sewer main from existing manhole to new cast inplace manhole 262 if Provide and install 36" steel encasement with anodes 134 if Stormwater Sewer Replacement Remove existing 48" RCP and replace with 48" HP 164 if SUBTOTAL HARD COSTS Soft Costs 20% Design and Construction Administration 20-30 Onsite Engineering 40 Development and Management 40-10 Developer Fee 40-15 Insurance 40-50 Project Administration 40-60 Development Expenses Underground Utility Cost Sharing USES TOTAL COSTS SOURCES Metro / Park Hotel (South Hotel) City of Fayetteville 28,500 6,800 4,200 S 310,837 $ 97,267 $ 941,214 SUBTOTAL SOFT COSTS $ 235,304 $ 1,176,518 10.2% $ 120,005 89.8% $ 1,056,513 Two Trout, LLC Project Development 1 of 1 AMENDMENT #1 to the Agreement for Cost Share of Sanitary Sewer Improvement Costs WHEREAS, on February 18, 2025, pursuant to Resolution 56-25, the City of Fayetteville and Greater Productions, LLC entered into an Agreement for Cost Share of Sanitary Sewer Improvement Costs (the “Agreement”) which provided for the City to reimburse Greater Productions, LLC 89.8% of the cost to upgrade sanitary sewer infrastructure to allow the development of property at 215 W. Spring Street and also provide for ample future capacity in the area served by the sewer main, with the City receiving reimbursement from other planned upstream developments; and WHEREAS, as the project progressed, the City and Greater Productions found that it was necessary to install new storm drainage pipe to replace some failing infrastructure causing the total cost of the project to increase by $178,985, with the City’s share of the increase amounting to $160,729. NOW, THEREFORE, BE IT KNOWN TO ALL: That the City of Fayetteville, Arkansas and Greater Productions, LLC on this ________ day of ______________, 2025, hereby agree that the Agreement for Cost Share of Sanitary Sewer Improvements shall be amended to provide for reimbursement by the City up to the amount of $1,217,242 as shown in the revised Cost Model attached hereto as Exhibit A. The parties agree and understand that this Amendment is supplemental to their Agreement and that it does not alter, amend or abridge any of the rights, obligations, or duties of the parties not expressly addressed herein. Greater Productions, LLC agrees that it is and shall continue to be bound by the provisions of the Agreement. IN WITNESS WHEREOF, the parties hereto have caused their signatures to be set by their authorized representative effective the date set forth herein above. GREATER PRODUCTIONS, LLC CITY OF FAYETTEVILLE By: _________________________________ By: ___________________________________ BRIAN REINDL, Manager MOLLY RAWN, Mayor ATTEST: By: ___________________________________ KARA PAXTON, City Clerk-Treasurer