HomeMy WebLinkAbout061-26 RESOLUTIONPage 1
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 61-26
File Number: 2026-263
A RESOLUTION TO APPROVE A COST SHARE AGREEMENT IN THE AMOUNT OF $200,000.00 WITH
OP III FAY S DUNCAN, LP FOR THE CONSTRUCTION OF A 12-INCH WATER MAIN ALONG SOUTH
DUNCAN AVENUE, AND TO APPROVE A BUDGET ADJUSTMENT
WHEREAS, OP III Fay S Duncan, LP has requested that the City share in the cost of constructing a 12-inch water
main along South Duncan Avenue between West Treadwell Street and West Putman Street near the University of
Arkansas; and
WHEREAS, the newly constructed water main will replace and upsize an aged 6-inch diameter water main and will
serve the two developments known as The Verve and Duncan Avenue Student Housing Development, as well as
existing residential homes in the nearby area; and
WHEREAS, upsizing this water main to 12-inch diameter as required during the City’s development review process
will allow development of both properties, and will also ensure reliability for these new development’s water demands
and fire protection requirements; and
WHEREAS, an adjacent development known as The Verve previously agreed to a payment-in-lieu in the amount of
$200,000.00 for its share of the necessary water main upgrade, which is currently held in an escrow account maintained
by the City; and
WHEREAS, the available funds in the amount of $200,000.00 currently held in an escrow account will be transferred
to a City expense account to be used for its intended purpose of constructing the 12-inch water main along South
Duncan Avenue.
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 approves a cost share agreement in the
amount of $200,000.00 with OP III FAY S Duncan, LP for the construction of a 12-inch water main along South
Duncan Avenue, utilizing the funds held in escrow for this purpose.
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.
Resolution: 61-26
File Number: 2026-263
Page 2
Approved:
_______________________________
Molly Rawn, Mayor
Attest:
_______________________________
Kara Paxton, City Clerk Treasurer
PASSED and APPROVED on March 5, 2026
Mailing address:
113 W. Mountain Street
Fayetteville, AR 72701
www.fayetteville-ar.gov
CITY COUNCIL MEMO
2026-263
MEETING OF MARCH 5, 2026
TO: Mayor Rawn and City Council
THROUGH: Keith Macedo, Chief of Staff
FROM: Tim Nyander, Utilities Director
SUBJECT: OP III FAY S Duncan, LP – Cost Share Agreement for 12-inch Water Main along
Duncan Ave.
RECOMMENDATION:
Staff recommends approval of a cost share agreement with OP III FAY S Duncan, LP in the amount of
$200,000.00 for the construction of a 12-inch water main along S. Duncan Avenue, and approval of a budget
adjustment.
BACKGROUND:
Two multi-family residential projects are proposed fronting S. Duncan Avenue from approximately Treadwell
Street to south of Putman Street near the University of Arkansas. The water main in this street is a smaller
diameter 6-inch cast iron pipe that needs to be replaced and upsized in order to ensure reliability for these new
development’s demands and fire protection needs.
The first of these two developments known as The Verve is now under construction on the east side of Duncan
Avenue, and formerly paid $200,000.00 into an escrow account with the City for their share of this necessary
water main upgrade. Now the development on the west side of Duncan seeks a cost share with the City to
access these funds and construct the necessary water main upgrade.
DISCUSSION:
No city funds are being utilized for this cost share. Rather, the city is entering into an agreement to release the
$200,000 collected from the east development to the west developer in order to complete the required
waterline improvements. This water main upgrade will serve both developments, as well as existing residential
properties along South Duncan Avenue.
Staff recommends approval of this Cost Share Agreement to allow the funds formerly collected to be used for
the intended purpose of constructing a new water main along South Duncan Avenue.
BUDGET/STAFF IMPACT:
The $200,000 collected from the previous development was transferred from the City's escrow account, and a
budget adjustment is attached that will move funds into the Water & Sewer fund to allow payment to the
developer for the construction of the water main. The budget adjustment amount includes interest collected
while in escrow.
ATTACHMENTS: 3. Staff Review Form, 4. Budget Adjustment, 5. Cost Share Agreement
Mailing address:
113 W. Mountain Street
Fayetteville, AR 72701
www.fayetteville-ar.gov
Page 1
City of Fayetteville, Arkansas
Legislation Text
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
File #: 2026-263
A RESOLUTION TO APPROVE A COST SHARE AGREEMENT IN THE AMOUNT OF
$200,000.00 WITH OP III FAY S DUNCAN, LP FOR THE CONSTRUCTION OF A 12-INCH
WATER MAIN ALONG SOUTH DUNCAN AVENUE, AND TO APPROVE A BUDGET
ADJUSTMENT
WHEREAS, OP III Fay S Duncan, LP has requested that the City share in the cost of constructing a 12-
inch water main along South Duncan Avenue between West Treadwell Street and West Putman Street
near the University of Arkansas; and
WHEREAS, the newly constructed water main will replace and upsize an aged 6-inch diameter water
main and will serve the two developments known as The Verve and Duncan Avenue Student Housing
Development, as well as existing residential homes in the nearby area; and
WHEREAS, upsizing this water main to 12-inch diameter as required during the City’s development
review process will allow development of both properties, and will also ensure reliability for these new
development’s water demands and fire protection requirements; and
WHEREAS, an adjacent development known as The Verve previously agreed to a payment-in-lieu in
the amount of $200,000.00 for its share of the necessary water main upgrade, which is currently held in
an escrow account maintained by the City; and
WHEREAS, the available funds in the amount of $200,000.00 currently held in an escrow account will
be transferred to a City expense account to be used for its intended purpose of constructing the 12-inch
water main along South Duncan Avenue.
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 approves a cost share
agreement in the amount of $200,000.00 with OP III FAY S Duncan, LP for the construction of a 12-
inch water main along South Duncan Avenue, utilizing the funds held in escrow for this purpose.
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.
City of Fayetteville Staff Review Form
2026-263
Item ID
2/21/2026
City Council Meeting Date - Agenda Item Only
N/A for Non-Agenda Item
Tim Nyander 2/3/2026 WATER SEWER (720)
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends approval of a cost share agreement with OP III FAY S Duncan, LP in the amount of $200,000.00
for the construction of a 12-inch water main on Duncan Ave., and approval of a budget adjustment.
Budget Impact:
5400.720.5600-5808.00 Water and Sewer
Account Number Fund
04039.2602 Water & Sewer Cost Sharing
Project Number Project Title
Budgeted Item?Yes Total Amended Budget $2,337,627.00
Expenses (Actual+Encum)$-
Available Budget $2,337,627.00
Does item have a direct cost?Yes Item Cost $200,000.00
Is a Budget Adjustment attached?Yes Budget Adjustment $204,170.00
$190.00 Remaining Budget $2,341,797.00
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
/Org2 WATER SEWER (720)
Adjustment Number
2026 Requestor:Shea Fankhouser
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
Staff recommends approval of a cost share agreement with OP III FAY S Duncan, LP in the amount of $200,000.00
for the construction of a 12-inch water main on Duncan Ave. as part of the Verve and the Duncan Avenue Student Housing
Project.
COUNCIL DATE:3/3/2026
ITEM ID#:2026-263
Holly Black
2/4/2026 7:40 AM
Budget Division Date
TYPE:D - (City Council)
JOURNAL #:
GLDATE:
RESOLUTION/ORDINANCE CHKD/POSTED:/
v.202615TOTAL204,170 204,170
Increase / (Decrease)Project.Sub#
Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X
5400.720.5600-4420.00 -204,170 04039 2602 RE Payments by Property Owners - base
5400.720.5600-5808.00 204,170 -04039 2602 EX Improvements - Water Line
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CONTRACTUAL AGREEMENT FOR
COST SHARE OF WATER MAIN INSTALLATION COSTS
This Agreement, made and entered into on this _____ day of March, 2026, by and between
the City of Fayetteville, Arkansas (“City”) and OP III Fay S Duncan, LP, witnesseth:
WHEREAS, OP III Fay S Duncan, LP has requested that the City share in the cost of
constructing a 12-inch water main along South Duncan Avenue between West Treadwell Street
and West Putman Street near the University of Arkansas; and
WHEREAS, the newly constructed water main will replace and upsize an aged 6-inch
diameter water main and will serve the two developments known as The Verve and Duncan
Avenue Student Housing Development, as well as existing residential homes in the nearby area;
and
WHEREAS, upsizing this water main to 12-inch diameter as required during the City’s
development review process will allow development of both properties, and will also ensure
reliability for these new development’s water demands and fire protection requirements; and
WHEREAS, an adjacent development known as The Verve previously agreed to a
payment-in-lieu in the amount of $200,000.00 for its share of the necessary water main upgrade,
which is currently held in an escrow account maintained by the City; and
WHEREAS, the available funds in the amount of $200,000.00 currently held in an escrow
account will be transferred to a City expense account to be used for its intended purpose of
constructing the 12-inch water main along South Duncan Avenue.
NOW, THEREFORE, the City of Fayetteville, Arkansas and OP III Fay S Duncan, LP
agree as follows:
1.The City of Fayetteville, Arkansas agrees to:
A.Reimburse OP III Fay S Duncan, LP for the cost to install the water main in the
area identified in Exhibit “A” the amount of $200,000.00, which represents a
portion of the total cost of $367,377.06 as was estimated by the builder’s
representative and shown on Exhibit “B”, attached.
B.Payments due to OP III Fay S Duncan, LP shall be remitted within sixty (60)
days after receipt of valid invoices.
5
-Treasurer
"Verve" ProjectSouth Duncan
Housing
Project
Proposed Waterline
OP III Fay S Duncan, LP
Exhibit A
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PARCEL #765-04825-000
PART OF LOT 6, BLOCK 7
I. W. DUNCANS ADDITION
PLAT BOOK 4, PAGE 192
10,350 SQ. FEET ±
0.24 ACRES ±
PARCEL #765-14437-000
FAYETTEVILLE SCHOOL DISTRICT #1
PO BOX 849
FAYETTEVILLE, AR 72702
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Duncan Student Housing
S Duncan Ave.
Fayetteville, AR 72701
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To:Contact:FaverGray Andrew Habernick
Duncan Student HousingProject Name:Bid Number:1
Fax:Jacksonville Beach, FL 32250
Address:415 Pablo Avenue Suite 200 Phone:(904) 208-2004
Project Location:Duncan And Treadwell, Fayetteville, AR Bid Date:
Total PriceUnit PriceUnitItem Description Estimated Quantity
Municiple Utilities, Fireline, And FDC Line
$285,381.06$464.79614.00 LFPvc 12 In Waterline
$3,200.00$3,200.001.00 LSConnect To Existing
$288,581.06Total Price for above Municiple Utilities, Fireline, And FDC Line Items:
Asphalt Paving
$35,760.40$5.296,760.00 SFMill Asphalt 2 In Depth
$2,366.00$0.356,760.00 SFInstall SS1 Oil (tack)
$40,669.60$4.648,765.00 SFAsphalt 3 In
$78,796.00Total Price for above Asphalt Paving Items:
$367,377.06Total Bid Price:
Notes:
•Arch. Concrete NOT Included
•CIP Walls NOT Included
•Excavate and Haul Off Additional Unsuitable Soils $31 per CY
•Additional Import, Fill, and Compact $33 per CY
•Mass Rock $525 per CY
•Trench Rock $650 per CY
•River Rock NOT Included
•All work performed under scope is per Civil plans, and deviation from plan may incur additional charges.
•Roof Drain Connections NOT Included. Inadequit Details.
•Staking for ARCO operations only if included in contract.
•Execution of work will only begin after a signed proposal has been received.
•Any hold up in work will be paid by remobilization if demobilization is necessary OR by equipment sitting fee incurred daily.
•This proposal is based on work being done during normal working hours, night work and sundays not included.
•This proposal does not include price for any permits or fees associated with.
•This proposal does not include repair of any unmarked underground utilities.
• This proposal may be withdrawn if not accepted within 30 days.
• This proposal is all inclusive, any alteration will affect pricing.
•Due to the unforseen cost in fuel prices, quote will be updated with current fuel cost at any time up to executuion of
contract/proposal.
Page 1 of 211/18/2025 8:52:00 AM
ACCEPTED:
The above prices, specifications and conditions are satisfactory
and hereby accepted.
Buyer:
Signature:
Date of Acceptance:
CONFIRMED:
Arco
Authorized Signature:
Estimator:Tony White
(479) 866-3811 Tony@arcoexc.com
Page 2 of 211/18/2025 8:52:00 AM