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Home My WebLink About150-26 RESOLUTIONPage 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 150-26 File Number: 2026-1902 A RESOLUTION TO APPROVE AN AGREEMENT WITH BLACK HILLS ENERGY ARKANSAS, INC. IN THE AMOUNT OF $302,040.00 FOR UTILITY RELOCATIONS ASSOCIATED WITH THE MILLSAP ROAD AND COLLEGE AVENUE INTERSECTION IMPROVEMENT PROJECT, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $17,960.00, AND TO APPROVE A BUDGET AMENDMENT IN THE AMOUNT OF $320,000.00 WHEREAS, the Millsap Road and College Avenue Intersection Improvement project will make improvements to Millsap Road that will include an additional lane west of College Avenue, realignment of lanes on both sides of College Avenue, signalization timing and phasing improvements and installation of crosswalks and pedestrian signals; and WHEREAS, during the design process, it was determined that Black Hills Energy owns a gas line that needs to be relocated to accommodate the new construction; and WHEREAS, Black Hills Energy has provided the City with design plans to relocate approximately 500 feet of natural gas line 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 authorizes Mayor Rawn to sign an agreement with Black Hills Energy Arkansas, Inc. in the amount of $302,040.00 for utility relocations associated with the Millsap Road and College Avenue Intersection Improvement project, and further approves a project contingency in the amount of $17,960.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget amendment, a copy of which is attached to this Resolution. PASSED and APPROVED on June 16, 2026 Approved: Attest: _______________________________ Molly Rawn, Mayor _______________________________ Kara Paxton, City Clerk Treasurer Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-1902 MEETING OF JUNE 16, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief of Staff Chris Brown, Public Works Director Justin Bland, City Engineer FROM: Paul Libertini, Staff Engineer SUBJECT: Millsap Rd & College Ave Intersection Impovements - Black Hills Energy Utility Work Agreement RECOMMENDATION: Staff recommends approval of an agreement with Black Hills Energy Arkansas, Inc. in the amount of $302,040.00 for utility relocations associated with the Millsap Rd & College Ave Intersection Improvement project, and to approve a budget amendment in the amount of $320,000 which includes $17,960 in project contingency. BACKGROUND: This project includes improvements to Millsap Road near the intersection with College Avenue. The improvements to Millsap Road include an additional lane west of College Avenue to provide additional left turning capacity, realignment of lanes on both sides of College Avenue, signalization timing and phasing improvements and installation of crosswalks and pedestrian signals. During the intersection design process, it is standard procedure to contact all known Utility companies to determine if their facilities conflict with the proposed improvements. It was determined the Black Hills Energy owns a gas line that needs to be relocated to accommodate the new construction. The City received authorization from the Arkansas Department of Transportation (ARDOT) to advertise this project for construction bids on April 24, 2026. The bid opening is scheduled for June 10th. DISCUSSION: Black Hills Energy has provided the City with design plans to relocate approximately 500 feet their natural gas line at an estimated cost of $302,040.00. After the relocation work has been completed, Black Hills Energy will submit an invoice based on actual costs to the City for payment. BUDGET/STAFF IMPACT: The City will pay Black Hills Energy for the completed relocation work and will subsequently submit the required paperwork to ARDOT for 80% reimbursement of the relocation cost. The City’s 20% matching funds (Street Projects 2022 Bonds) were previously utilized for land acquisition for this project. ATTACHMENTS: 3. Staff Review Form, 4. Budget Amendment, 5. Millsap & College, N Hemlock Award Letter, 6. Black Hills Energy Utility Work Agreement Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-1902 A RESOLUTION TO APPROVE AN AGREEMENT WITH BLACK HILLS ENERGY ARKANSAS, INC. IN THE AMOUNT OF $302,040.00 FOR UTILITY RELOCATIONS ASSOCIATED WITH THE MILLSAP ROAD AND COLLEGE AVENUE INTERSECTION IMPROVEMENT PROJECT, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $17,960.00, AND TO APPROVE A BUDGET AMENDMENT IN THE AMOUNT OF $320,000.00 WHEREAS, the Millsap Road and College Avenue Intersection Improvement project will make improvements to Millsap Road that will include an additional lane west of College Avenue, realignment of lanes on both sides of College Avenue, signalization timing and phasing improvements and installation of crosswalks and pedestrian signals; and WHEREAS, during the design process, it was determined that Black Hills Energy owns a gas line that needs to be relocated to accommodate the new construction; and WHEREAS, Black Hills Energy has provided the City with design plans to relocate approximately 500 feet of natural gas line 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 authorizes Mayor Rawn to sign an agreement with Black Hills Energy Arkansas, Inc. in the amount of $302,040.00 for utility relocations associated with the Millsap Road and College Avenue Intersection Improvement project, and further approves a project contingency in the amount of $17,960.00. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget amendment, a copy of which is attached to this Resolution. Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 City of Fayetteville Staff Review Form 2026-1902 Item ID 6/16/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Paul Libertini 5/22/2026 ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of an agreement with Black Hills Energy Arkansas, Inc. in the amount of $302,040.00 for utility relocations associated with the Millsap Rd & College Ave Intersection Improvement project, and approval of a budget amendment in the amount of $320,000 which includes $17,960 in project contingency. Budget Impact: 4601.860.7227-5809.00 Bond Program Grant Matching Account Number Fund 46020.7227 Millsap/College Intersection Improvements Project Number Project Title Budgeted Item?Yes Total Amended Budget $19,988,962.00 Expenses (Actual+Encum)$7,126,386.00 Available Budget $12,862,576.00 Does item have a direct cost?Yes Item Cost $302,040.00 Is a Budget Adjustment attached?Yes Budget Adjustment $320,000.00 $232.00 Remaining Budget $12,880,536.00 V20221130 Purchase Order Number:Previous Ordinance or Resolution #66-23 Change Order Number:Approval Date: Original Contract Number: Comments: Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 City of Fayetteville, Arkansas - Budget Amendment/Adjustment (Agenda) Budget Year Division /Org2 ENGINEERING (621) BA Number 2026 Requestor:Paul Libertini BUDGET AMENDMENT/ADJUSTMENT DESCRIPTION: Recognize $320,000 of FFY 2023 Surface Transportation Block Grant Program - Attributable (STBGP-A) funds awarded by the Northwest Arkansas Regional Planning Commission (NWARPC) for the construction of Millsap Rd & College Ave Intersection and N. Hemlock Ave. The City’s 20% matching funds (Street Projects 2022 Bonds) were previously utilized for land acquisition for this project. COUNCIL DATE:6/16/2026 ITEM ID#:2026-1902 Holly Black 5/26/2026 5:09 PM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.202658TOTAL320,000 320,000 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 4601.860.7227-4309.00 -320,000 46020 7227 RE Federal Grants - Capital 4601.860.7227-5809.00 302,040 -46020 7227 EX Improvements - Street 4601.860.7227-5911.99 17,960 -46020 7227 EX Contingency - Capital Project -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 .. BlackHH/sEnergy _______________ _ Developer: Developer's Address: Job Location: UTILITY WORK AGREEMENT City of Fayetteville City of Fayetteville Fayetteville, AR City of Fayetteville -Millsap Road and College Ave. BHEA Project Number 10089464 Arkansas Highway Commission Project No. 040943 This Utility Work Agreement ("Agreement") is made and entered into this __ day of ____ , 2026, 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: Relocate natural gas assets to accommodate the planned intersection improvements at the Hwy 71 B (North College Avenue) and Millsap Road in Fayetteville, AR. Planned improvements will include engineering design, surveying, easement acquisition, and construction and commissioning of the newly installed assets. (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. Improving life with energy www.blackhillsenergy.com 16June Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 .. �Black HI/ls Energy NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND OTHER VALUABLE CON SI DE RATION 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. 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. 4.The estimated cost of the Work is $302,040.00. 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. If Developer fails to pay any such invoice within 30 days of receipt, the amount due under the invoice shall accrue interest at the rate of 10 per cent per annum until paid. 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 2 Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816 .... Black HI/ls Energy BLACK HILLS ENERGY ARKANSAS INC. City of Fayetteville By: ----------- Its: Vice President-AR / KS Operations Its: ----------- Federal UEI No.: 4 Molly Rawn Mayor Docusign Envelope ID: 37324E2B-84DA-8EF6-838D-EC29D8403816