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HomeMy WebLinkAbout054-26 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 54-26 File Number: 2026-117 A RESOLUTION TO WAIVE FORMAL COMPETITIVE BIDDING AND APPROVE A COST SHARE AGREEMENT WITH CALARA LAND (AR), LLC FOR UPGRADES TO THE OWL CREEK SEWER LIFT STATION WITH A REFUND TO BE PAID BY THE CITY IN AN AMOUNT NOT TO EXCEED $898,746.95, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $44,937.35, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, several residential developments and one non-residential development are being proposed in the vicinity of Double Springs Road near Owl Creek, an area that is part of sanitary sewer Basin I -1 5(B); and WHEREAS, Calara Land (AR), LLC would be required to construct a lift station to provide sewer service for its developments but has proposed to partner with other developers to construct upgrades to Lift Station 22 located at 630 North Double Springs Road, which aligns with recommendations in the City's Wastewater Master Plan Update; and WHEREAS, rather than requiring a new lift station to be constructed, the City's Utilities Department also recommends upgrading Lift Station 22 based on the improvements outlined in the Wastewater Master Plan Update, and to accommodate the increased flows from this and other developments; and WHEREAS, § 51.113(B) of the Fayetteville City Code provides that "the city shall pay the excess material cost of facilities of a size larger than required to serve subdivisions when such excess size is specified and required by the Water and Wastewater Director for the general benefit of the sewerage system"; and WHEREAS, the total cost of the project is estimated to be $1,077,763.46, 83.39% of which would be the responsibility of the City with Calara contributing 16.61%, which is the proportion of the construction cost that can be attributed to the impact of its developments and the full cost of professional services and engineering costs will be borne by Calara; and WHEREAS, this represents a unique opportunity for the City to upgrade its sewer lift station while utilizing the developer's engineer to design the upgrades and the developer's contractor that will be on site to construct the upgrades. 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 Mayor Rawn to sign a cost share agreement with Calara Land (AR), LLC in the total amount of $1,077,763.46 for upgrades to the Owl Creek Sewer Lift Station, with a refund to Calara by the City in the amount of $898,746.95, and further approves a project contingency in the amount of $44,937.35. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of Page 1 Resolution: 54-26 File Number. 2026-117 which is attached to this Resolution. PASSED and APPROVED on February 17, 2026 Approved: Attest: Molly Rawn, Mayor Page 2 Kara Paxton, City Clerk Treasurer 2/17/2026 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Legislation Text File #: 2026-117 A RESOLUTION TO WAIVE FORMAL COMPETITIVE BIDDING AND APPROVE A COST SHARE AGREEMENT WITH CALARA LAND (AR), LLC FOR UPGRADES TO THE OWL CREEK SEWER LIFT STATION WITH A REFUND TO BE PAID BY THE CITY IN AN AMOUNT NOT TO EXCEED $898,746.95, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $44,937.35, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, several residential developments and one non-residential development are being proposed in the vicinity of Double Springs Road near Owl Creek, an area that is part of sanitary sewer Basin I - 15(B); and WHEREAS, Calara Land (AR), LLC would be required to construct a lift station to provide sewer service for its developments but has proposed to partner with other developers to construct upgrades to Lift Station 22 located at 630 North Double Springs Road, which aligns with recommendations in the City's Wastewater Master Plan Update; and WHEREAS, rather than requiring a new lift station to be constructed, the City's Utilities Department also recommends upgrading Lift Station 22 based on the improvements outlined in the Wastewater Master Plan Update, and to accommodate the increased flows from this and other developments; and WHEREAS, § 51.113(B) of the Fayetteville City Code provides that "the city shall pay the excess material cost of facilities of a size larger than required to serve subdivisions when such excess size is specified and required by the Water and Wastewater Director for the general benefit of the sewerage system"; and WHEREAS, the total cost of the project is estimated to be $1,077,763.46, 83.39% of which would be the responsibility of the City with Calara contributing 16.61%, which is the proportion of the construction cost that can be attributed to the impact of its developments and the full cost of professional services and engineering costs will be borne by Calara; and WHEREAS, this represents a unique opportunity for the City to upgrade its sewer lift station while utilizing the developer's engineer to design the upgrades and the developer's contractor that will be on site to construct the upgrades. 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 Mayor Rawn to sign a cost share agreement Page 1 Resolution: 54-26 File Number. 2026-117 with Calara Land (AR), LLC in the total amount of $1,077,763.46 for upgrades to the Owl Creek Sewer Lift Station, with a refund to Calara by the City in the amount of $898,746.95, and further approves a project contingency in the amount of $44,937.35. 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 2 ....a CITY OF �� FAYETTEVILLE ... ARKANSAS MEETING OF FEBRUARY 17, 2026 TO: THROUGH: FROM: Mayor Rawn and City Council Keith Macedo, Chief of Staff Tim Nyander, Utilities Director CITY COUNCIL MEMO 2026-117 SUBJECT: Calara Land (AR), LLC -Owl Creek Sewer Lift Station (Lift Station 22) Cost Share RECOMMENDATION: Staff recommends approval of a bid waiver resolution to authorize a cost share agreement with Calara Land (AR), LLC in an amount not to exceed $898,746.95 for upgrades to the Owl Creek Sewer Lift Station (Lift Station 22), approval of a project contingency in the amount of $44,937.35, and approval of a budget adjustment. BACKGROUND: The Owl Creek Sewer Lift Station is located at 630 N. Double Springs Road and serves a basin along the Wedington corridor east to Rupple Road. This lift station was identified as needing capital upgrades in approximately 2030. However, due to development in this basin, upgrades are needed sooner. A group of developers led by Calara Land (AR), LLC has approached the City with a cost share proposal to expedite this needed improvement. DISCUSSION: The existing firm capacity of the lift station is 0.9 million gallons per day (MGD) and the 2030 target flow from master planning was 1.8 MGD based on the most recent master plan completed in 2020. Updated modeling, however, agrees with the development team's proposal to upgrade the station to a capacity of 2.4 MGD. The proposal is for the increased capacity to be split between the development group and the City. The existing flows and excess capacity available would be the City's portion at 83.39% of construction costs. All professional services and engineering costs would be borne by Calara Land (AR), LLC. Section 51.113 of the Fayetteville City Code states that "the city shall pay the excess material cost of facilities of a size larger than required to serve subdivisions when such excess size is specified and required by the Water and Wastewater Director for the general benefit of the sewerage system." The City's portion of this cost share is 83.39% because the majority of the capacity improvements were already needed at this sewer lift station as they are recommended in the City's wastewater collection system master plan improvements. Formal competitive bidding is not feasible or practical in this situation because this represents a unique opportunity for the City to upgrade its sewer lift station while utilizing the developer's contractor that will be on site to perform these upgrades. Calara obtained three competitive bids for this construction and received a low bid of $1,077,763.46 from NEC, Inc. Based on this bid, the City's portion would be $898,746.95, funded through available Wastewater Impact Fee funds. A $44,937.35 contingency is also requested by staff in the event additional costs are discovered during construction outside the original scope of work. Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www. fayettevi I le-a r.gov BUDGET/STAFF IMPACT: Funds will be moved from the Wastewater Impact Fee Improvements account to the Water & Sewer Cost Sharing account to cover the cost of the City's portion of the lift station upgrades. ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment, 5. Cost Share Agreement, 6. Exhibit A - Cost Share Request Letter and Area Map, 7. Exhibit B - Construction Bids Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year I Division Adjustment Number WATER SEWER (720) /Org2 2026 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A budget adjustment is needed in the Water and Sewer Cost Share project for the Owl Creek Sewer Lift Station (LS 22) upgrades. The Owl Creeek Sewer Lift Station upgrade expenditures will be a cost share with Clara Land (AR), LLC. The upgrades will increase capacity. Budgeted impact fee funds need to be transferred and utilized for this project. RESOLUTION/ORDINANCE COUNCIL DATE: 2/17/2026 ITEM ID#: 2026-117 Holly Black 7/28/2026 4f:02 PM Budget Division Date D - (City Council) TYPE: JOURNAL#: GLDATE: CHKD/POSTED: ' TOTAL 943,685 943,685 v.202615 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 5400.720.5700-5815.00 898,747 - 04039 2601 EX Improvements - Sewer 5400.720.5700-5911.99 44,938 - 04039 2601 EX Contingency - Capital Project 5400.720.5700-6602.30 - 943,685 04039 2601 RE Transfer from Fund - Impact Fee 2300.730.9300-7602.40 943,685 - 07004 4039.2601 EX Transfers To Funds - Water & Sewer Fund 2300.730.9300-5815.00 (943,685) - 07004 2 EX Improvements - Sewer 1 of 1 17 17 Treasurer C 300 North College, Suite 317 Fayetteville, AR 72701 Crafton Tull EXHIBIT A 47 79.455.2207 architecture I engineering I surveying craftontull.com December 29, 2025 Water, Sewer, and Solid Waste Committee Fayetteville, AR RE: Lift Station #22 Upgrade Cost -Share To whom it may concern, Crafton Tull has been working with Fayetteville Engineering, alongside developers with prospective developments within Basin 1-15(B) to upgrade Lift Station #22. This lift station is located along Double Springs Rd near Owl Creek and the Legacy Point Phase 1 Subdivision as shown in Exhibit 1, below. Exhibit 1 This lift station was initially intended to be upgraded based on the recommendations outlined in the Wastewater Master Plan Update, Dated December 2021. In this report, it stated that the existing firm capacity was 0.9 MGD and it needed to be increased to 1.8 MGD. Crafton Tull architecture I engineering I surveying Lift Station Summary: 300 North College, Suite 317 Fayetteville, AR 72701 479.455.2207 craftontull.com • Existing Firm Capacity: 0.9 MGD (625 gpm) • Wastewater Master Plan - 2030 Proposed Firm Capacity: 1.8 MGD (1,250 gpm) • Updated 2030 Model (provided by RJN): 2.4 MGD-2.5 MGD • Proposed Lift Station Upgrade: 2.4 MGD (1667 gpm). This is likely the maximum upgrade possible to this lift station, without additional wet well capacity of a parallel force main to the West Side Wastewater Treatment Plant. Upcoming Residential Developments within Basin 1-15(B) # of Subdivision Name Houses Irish Bend _ 38 Meadowlands Heights 17 Kidder Townhomes 68 Upcoming Non -Residential Developments within Basin 1-15(B) #of Business Name persons, Wedington Day Care Center 192 All of the above developers have created one entity for the cost -share with the city, Calara Land (AR) LLC. They will have their own separate cost -share for their portion of the cost -share with the city. Cost Share Information The cost share was broken down based on average flow at Fayetteville Engineering's Request. Please note that Surveying, Engineering, and Construction Administration is being paid for by the developers, not the City of Fayetteville. • Existing Average Flow 0.23 MGD • Ex Avg Flow + Known Dev Avg Flow: 0.248 MGD • Updated 2030 Model Avg Flow: 0.3384 MGD • Net Avg Flow Change: 0.1084 MGD Proposed Developer Portion: 16.61% {(0.248 MGD — 0.23 MGD)/0.1084 MGD} Proposed City Portion: 83.39% � m w m O O o o O O O H U) m 00 o .1 V m n i/1 01 N N -i V t0 m L} 00 W O m 01 -1 to 1J try 01 01 m N m N (.0 v 01 V 01 0 Ol 01 N V} N O N 01 N 0 tD ci U) W a M tD N P N O e -I C 0 N 10 a E 0 0 u M a, a E in ai a C O C m m 0 in y vl o 0 ar a n N OO U) C O C C o w O — M 00 C O d c O ' C• 0 000 or m to 0 w U + N = fa C o v r_ L LL c 0 p w X N Z O 00 O O. 0 7 + w Q H u O X - w c aai ai z w C E E E 7 v N C) a O U a a H O O O 0m00 00 1Lfl N V 00 00 0 0 N m O 4 Q1 0m-1 (.0 01 00 01 N 00 00' 1N 01 00 O � LL > al � N 3 0 0= C p Y .2 Q m +:5� C C— 0 O O O LL LL u Y O 00 C 0 d > > >_C Q <<4—° u J aJ a 0➢C000 p ? v X X L -D N w w O Q O <000 C O t 0 0- 0) 0 a O 0 0 O u 2425 S. 5th Place Rogers, AR 72758 To: Calara Group Contact: Erick Richey Address: Fayetteville, AR 72701 Phone: Fax: Project Name: Irish Bend Lift Station #22 Rehab 11-20-25 Bid Number: Project Location: Bid Date: 11/20/2025 We appreciate the chance to bid this work with you. Please call with any questions for clarification. Item # Item Description Estimated Quantity Unit Unit Price Total Price 1 Pump Around Sewer For Duration Of Project 1.00 LS $73,410.83 $73,410.83 2 Demo Existing Electric And Top Slab Of Lift Station 1.00 LS $36,412.29 $36,412.29 3 Clean And Epoxy Existing Lift Station 1.00 LS $51,999.88 $51,999.88 4 Pumbing All New Rails And Piping In Lift Station 1.00 LS $625,739.95 $625,739.95 5 Pour New Top On Lift Station 1.00 EACH $29,909.49 $29,909.49 6 New Electrical To Control Box 1.00 LS $160,291.02 $160,291.02 7 General Conditions 1.00 LS $100,000.00 $100,000.00 Total Bid Price: $1,077,763.46 Payment Terms: N.E.C., Inc. does not accept the risk of Customer's receipt of payments from any source. Payment in full for all work performed hereunder during any month shall be made not later than the tenth (10) day of the next month following submittal of payment application. N.E.C., Inc.'s schedule of values shall be used to determine progress payments. Final and complete payment for all work performed hereunder shall be made not later than fifteen (30) days after the completion of such work. If testing is required, payment is due fifteen (30) days from the day in which testing was performed. All sums not paid when due shall bear interest at the rate allowable in the state of Arkansas per month from due date until paid or the maximum rate permitted by law whichever is less; and all costs of collection, including attorney's fee, shall be paid by Customer. If the above meets with your (Customer) acceptance, please sign and return this proposal. Upon timely receipt of the proposal, signed by you (Customer), N.E.C., Inc. will sign it and return a copy to you. When signed by both parties, this proposal including the Terms and Conditions constitute an agreement between us. ACCEPTED: CONFIRMED: The above prices, specifications and conditions are satisfactory and N.E.C., Inc. are hereby accepted. Buyer: Signature: Date of Acceptance: Authorized Signature: Estimator: 12/5/2025 2:52:21 PM Page 1 of 1 EXHIBIT B 0MW 2425 S. 5th Place Rogers, AR 72758 To: Calara Group Contact: Erick Richey Address: Fayetteville, AR 72701 Phone: Fax: Project Name: Irish Bend Lift Station #22 Rehab 11-20-25 Bid Number: Project Location: Bid Date: 11/20/2025 We appreciate the chance to bid this work with you. Please call with any questions for clarification. Item # Item Description Estimated Quantity Unit Unit Price Total Price 1 Pump Around Sewer For Duration Of Project 1.00 LS $73,410.83 $73,410.83 2 Demo Existing Electric And Top Slab Of Lift Station 1.00 LS $36,412.29 $36,412.29 3 Clean And Epoxy Existing Lift Station 1.00 LS $51,999.88 $51,999.88 4 Pumbing All New Rails And Piping In Lift Station 1.00 LS $625,739.95 $625,739.95 5 Pour New Top On Lift Station 1.00 EACH $29,909.49 $29,909.49 6 New Electrical To Control Box 1.00 LS $160,291.02 $160,291.02 7 General Conditions 1.00 LS $100,000.00 $100,000.00 Total Bid Price: $1,077,763.46 Payment Terms: N.E.C., Inc. does not accept the risk of Customer's receipt of payments from any source. Payment in full for all work performed hereunder during any month shall be made not later than the tenth (10) day of the next month following submittal of payment application. N.E.C., Inc.'s schedule of values shall be used to determine progress payments. Final and complete payment for all work performed hereunder shall be made not later than fifteen (30) days after the completion of such work. If testing is required, payment is due fifteen (30) days from the day in which testing was performed. All sums not paid when due shall bear interest at the rate allowable in the state of Arkansas per month from due date until paid or the maximum rate permitted by law whichever is less; and all costs of collection, including attorney's fee, shall be paid by Customer. If the above meets with your (Customer) acceptance, please sign and return this proposal. Upon timely receipt of the proposal, signed by you (Customer), N.E.C., Inc. will sign it and return a copy to you. When signed by both parties, this proposal including the Terms and Conditions constitute an agreement between us. ACCEPTED: CONFIRMED: The above prices, specifications and conditions are satisfactory and N.E.C., Inc. are hereby accepted. Buyer: Signature: Date of Acceptance: Authorized Signature: Estimator: 12/5/2025 2:52:21 PM Page 1 of 1 To: NWA LD, LLC Contact: Erick Richey Address: 4058 N College Ave., Suite 300 Phone: 479-903-1812 Fayettteville, AR 72703 Fax: Project Name: Lift Station #22 Upgrades Bid Number: GZ-2025154 Project Location: Double Springs Rd., Fayetteville, AR Bid Date: 11/20/2025 Item # Item Description Estimated Quantity Unit Unit Price Total Price Base Bid 001 Lift Station #22 Improvements 1.00 LS $1,207,000.00 $1,207,000.00 Total Price for above Base Bid Items: $1,2O7,OOO.O0 Total Bid Price: $1,207,000.00 Notes: • The above prices do not include Performance and Payment Bond, Add 1,5% if bond is required. • The above prices do not include Permits. • The above prices are firm for 45 days. • SWPPP NOT included. ' One Mobilization is included in pricing. • The above prices are based on plans and specifications provided. Payment Terms: Payment due within 15 days of invoice, regardless of when payment is made by Owner. ACCEPTED: The above prices, specifications and conditions are satisfactory and are hereby accepted. Buyer: Signature: Date of Acceptance: CONFIRMED: Ground Zero Construction, INC. U3gitally signed by Herbert Hams Herbert Harris Sale- 2025.12.05 Authorized Signature: 12:2aaa-a6roo' Estimator: Herbert Harris (479) 957-2966 Herb@groundzeronwa.com 12/5/2025 12:18:28 PM Page 1 of 1 Liftstation re -build ONLY Bid Table JlJ/Item Unit Quantity Price Total J71LAS Liftstation Demo and Re -build #1 jSite Mobilization LS ii 40,0001 $40,000.001 #2 ICombined bonds cost estimates I LS ii 650001 $65,000.00 #3 IRock Excavation if required I CY 2501 $0.00 #4 Existing Liftstation Demo I LS ij 1000001 $100,000.00 #5 IProposed Pump around LS 21 30000j $60,000.00 #6 Complete Liftsation re -build above & below LS ii 990,0001 $990,000.00 Total Construction Cost $1,255,000.001