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Home My WebLink About161-26 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 161-26 File Number: 2026-2068 A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE A TENDER AGREEMENT WITH U.S. SPECIALTY INSURANCE COMPANY AND ACS PLAYGROUND ADVENTURES TO TRANSFER PROJECT COMPLETION RESPONSIBILITIES FOR PHASE 1 IMPROVEMENTS FOR BRYCE DAVIS PARK TO ACS PLAYGROUND ADVENTURES, TO AUTHORIZE ADDITIONAL CONTRACT DAYS TO COMPLETE WORK, AND TO APPROVE A BUDGET AMENDMENT WHEREAS, on April 1, 2025, City Council approved Resolution 87-25 authorizing a contract with SSI Incorporated of NWA for Phase 1 Improvements at Bryce Davis Park in the total amount of $910,446.56; and WHEREAS, in February 2026, SSI ceased work on the project and filed for bankruptcy protection; and WHEREAS, in March 2026, the City issued a Notice of Default to SSI Incorporated of NWA for failing to meet contractual obligations and began coordinating with U.S. Specialty Insurance Company, the surety on the project; and WHEREAS, most remaining work involves the playground subcontractor, ACS Playground Adventures, which ceased work in February due to nonpayment by SSI; and WHEREAS, in addition to ACS’s uncompleted scope, several items installed by SSI Incorporated of NWA require correction before the project can reach substantial completion; and WHEREAS, U.S. Specialty Insurance Company evaluated the project and prepared a Tender Agreement that allows ACS to assume the role of primary contractor to complete both the original subcontracted work and the remaining work previously assigned to SSI Incorporated of NWA and provides for payment of an additional amount of $67,511.21 which, with the $139,420.72 still being held by the City from the original contract, will fund the remainder of the project. 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 Tender Agreement with U.S. Specialty Insurance Company and ACS Playground Adventures to: 1) transfer project completion responsibilities for Phase 1 Improvements for Bryce Davis Park from SSI Incorporated of NWA to ACS Playgrounds; 2) authorize a payment in the additional amount of $67,511.21 to fund the remainder of the project; and 3) approve additional contract days for ACS Playgrounds to complete Phase 1 Improvements for Bryce Davis Park. Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Resolution: 161-26 File Number: 2026-2068 Page 2 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 July 7, 2026 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-2068 MEETING OF JULY 7, 2026 TO: Mayor Rawn and City Council THROUGH: Keith Macedo, Chief of Staff Alison Jumper, Director of Parks, Natural Resources and Cultural Affairs Ted Jack, Park Planning Superintendent FROM: Zach Foster, Park Planner II Melissa Evans, Park Planner SUBJECT: Approval to waive competitive bidding and authorize the Mayor to sign a tender agreement to transfer project completion responsibilities for Bryce Davis Park Phase 1. RECOMMENDATION: Staff recommends waiving competitive bidding and authorizing Mayor Rawn to sign a tender agreement with U.S. Specialty Insurance Company to transfer project completion responsibilities from SSI Incorporated of NWA to ACS Playgrounds (ACS), to designate ACS as the new contractor, to authorize additional contract days to complete work, and approve a budget adjustment to receive funds from the bonding agency, U.S. Specialty Insurance Company, for Phase 1 Improvements work for Bryce Davis Park. BACKGROUND: SSI Incorporated of NWA was awarded Bid 25-24 for Phase 1 Improvements at Bryce Davis Park, with an initial contract of $902,670.13. Two subsequent change orders increased the total contract amount to $910,446.56. In February 2026, SSI and its subcontractors ceased work on the project. Parks Staff worked with the City Attorney’s Office to engage U.S. Specialty Insurance Company (USSIC), SSI's Bonding Surety, and determine a path toward project completion. In March 2026, the City issued a Notice of Default to SSI for failing to meet contractual obligations. After multiple attempts, a response to the Notice of Default was not received, as SSI Incorporated of NWA was no longer in business. The project is approximately 90% complete. Most remaining work involves the playground subcontractor, ACS Playgrounds, who ceased work in February due to nonpayment by SSI. In addition to ACS’s incomplete scope, several items installed by SSI require correction before the project can reach substantial completion. Some of the more significant line items for remaining work include grading and drainage in and around the dog park and correcting rock placement at the wetland pavilion. USSIC evaluated the project and recommended that ACS Playgrounds assume the role of primary contractor to complete both the original subcontracted work and the remaining work previously assigned to SSI. DISCUSSION: USSIC offered the City a tender agreement in which USSIC will provide the funds necessary to complete the Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov project while the City administers the remaining work directly. Under this arrangement, the bonding agency requires ACS Playgrounds to assume the role of primary contractor responsible for completing all outstanding items, including both their original subcontracted scope and the unfinished or corrective work left by SSI. This approach allows the City to retain day-to-day oversight of the project while ensuring that all remaining work is fully funded by USSIC, who will also continue handling claims from SSI’s unpaid subcontractors. The City does not anticipate any additional legal or financial risk under this arrangement. This path also provides the most efficient route to project completion, avoiding the delays associated with USSIC managing the project or rebidding the project. Because ACS was previously engaged as a subcontractor, they are already familiar with the project site, scope, and remaining work, which should help streamline construction and reduce delays. The remaining work is anticipated to take about two (2) months. Of the original contract’s $910,446.56 cost, the City is currently holding $139,420.72 for remaining contract work. USSIC determined completion costs to total $206,931.93. Since the cost for completion exceeds the remaining balance held by the City, USSIC has agreed to make payment to the City for the difference, which totals $67,511.21. BUDGET/STAFF IMPACT: Funds received from USSIC in the amount of $67,511.21 will be deposited into the Bryce Davis Park project. ATTACHMENTS: 3. Staff Review Form, 4. Budget Amendment, 5. Tender Agreement - Bryce Davis Park - Executed by USSIC Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-2068 A RESOLUTION TO WAIVE COMPETITIVE BIDDING AND AUTHORIZE A TENDER AGREEMENT WITH U.S. SPECIALTY INSURANCE COMPANY AND ACS PLAYGROUND ADVENTURES TO TRANSFER PROJECT COMPLETION RESPONSIBILITIES FOR PHASE 1 IMPROVEMENTS FOR BRYCE DAVIS PARK TO ACS PLAYGROUND ADVENTURES, TO AUTHORIZE ADDITIONAL CONTRACT DAYS TO COMPLETE WORK, AND TO APPROVE A BUDGET AMENDMENT WHEREAS, on April 1, 2025, City Council approved Resolution 87-25 authorizing a contract with SSI Incorporated of NWA for Phase 1 Improvements at Bryce Davis Park in the total amount of $910,446.56; and WHEREAS, in February 2026, SSI ceased work on the project and filed for bankruptcy protection; and WHEREAS, in March 2026, the City issued a Notice of Default to SSI Incorporated of NWA for failing to meet contractual obligations and began coordinating with U.S. Specialty Insurance Company, the surety on the project; and WHEREAS, most remaining work involves the playground subcontractor, ACS Playground Adventures, which ceased work in February due to nonpayment by SSI; and WHEREAS, in addition to ACS’s uncompleted scope, several items installed by SSI Incorporated of NWA require correction before the project can reach substantial completion; and WHEREAS, U.S. Specialty Insurance Company evaluated the project and prepared a Tender Agreement that allows ACS to assume the role of primary contractor to complete both the original subcontracted work and the remaining work previously assigned to SSI Incorporated of NWA and provides for payment of an additional amount of $67,511.21 which, with the $139,420.72 still being held by the City from the original contract, will fund the remainder of the project. 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 Tender Agreement with U.S. Specialty Insurance Company and ACS Playground Adventures to: 1) transfer project completion responsibilities for Phase 1 Improvements for Bryce Davis Park from SSI Incorporated of NWA to ACS Playgrounds; 2) authorize a payment in the additional amount of $67,511.21 to fund the remainder of the project; and 3) approve additional contract days for ACS Playgrounds to complete Phase 1 Improvements for Bryce Davis Park. Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Resolution: 161-26 File Number: 2026-2068 Page 2 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: 4175B64C-BF90-82CD-83E6-AB17E6123A1E City of Fayetteville Staff Review Form 2026-2068 Item ID 7/7/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Zach Foster 6/10/2026 PARKS & RECREATION (520) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends waiving competitive bidding and authorizing Mayor Rawn to sign a tender agreement with U.S. Specialty Insurance Company to transfer project completion responsibilities from SSI to ACS Playgrounds (ACS), to designate ACS as the new contractor, to authorize additional contract days to complete work, and approve a budget adjustment to receive funds from the bonding agency, U.S. Specialty Insurance Company, for the unfinished Phase 1 Improvements work for Bryce Davis Park. Budget Impact: 2250.520.9255-5806.00 Parks Development Account Number Fund 46050.7580 Park Improvements (2019/2022/2024 Bonds), Underwood Improvements Project Number Project Title Budgeted Item?Yes Total Amended Budget $9,216,776.00 Expenses (Actual+Encum)$7,423,362.89 Available Budget $1,793,413.11 Does item have a direct cost?Yes Item Cost $67,511.21 Is a Budget Adjustment attached?No Budget Adjustment $- $331.00 Remaining Budget $1,725,901.90 V20221130 Purchase Order Number:2025-00000480 Previous Ordinance or Resolution #Bid 25-24 Change Order Number:Approval Date: Original Contract Number:Bid 25-24 Comments: Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E City of Fayetteville, Arkansas - Budget Amendment/Adjustment (Agenda) Budget Year Division /Org2 PARKS & RECREATION (520) BA Number 2026 Requestor:Alan Bearden BUDGET AMENDMENT/ADJUSTMENT DESCRIPTION: Budget adjustment to receive funds from the bonding agency, U.S. Specialty Insurance Company (USSIC) for completion of Phase 1 construction work at Bryce Davis Park and authorize additional contract days to complete the work. The original contractor went bankrupt and completion of the work is being transferred to ACS Playgrounds to finish the work. Original purchase order was # 2025-00000480. COUNCIL DATE:7/7/2026 ITEM ID#:2026-2068 Holly Black 6/15/26 Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.202658TOTAL67,512 67,512 Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 2250.520.9255-4900.00 -67,512 46050 7580 RE Miscellaneous Revenue - base 2250.520.9255-5806.00 67,512 -46050 7580 EX Improvements - Park - -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E TENDER AGREEMENT (BRYCE DAVIS PARK IMPROVEMENTS) PAGE 1 TENDER AGREEMENT FOR PERFORMANCE AND COMPLETION OF CONTRACT AND RELEASE OF BONDS This Agreement is made and entered into this day of _______, 2026, by and between the City of Fayetteville, Arkansas (the “City”), U.S. Specialty Insurance Company (“USSIC”) and ACS Playground Adventures (the “Completing Contractor”). The City, USSIC, and Completing Contractor are collectively the “Parties”. RECITALS WHEREAS, SSI Incorporated of Northwest Arkansas (the “Original Contractor”) and the City entered a Construction Contract dated April 1, 2025 (the “Prime Contract”) for a public works improvement project known as the Bryce Davis Park Improvements, Phase I project located in Fayetteville, Arkansas (the “Project”); WHEREAS, as required by Arkansas law and under the terms of the Prime Contract, Original Contractor and USSIC made, executed, and delivered to the City Performance Bond No. 1001232478 and Payment Bond No. 1001232478 (collectively, the “Bonds”), both in the penal sum of $902,670.13; WHEREAS, the City issued a letter dated March 24, 2026 titled “Notice of Default” to the Original Contractor with a copy to USSIC notifying the Original Contractor and USSIC that (a) the City considered the Original Contractor in default of the Prime Contract; and (b) of its intent to terminate the Prime Contract ten days from receipt of the notice; WHEREAS, the Original Contractor failed to cure the default and the City made demand on USSIC to complete the Project under the terms of the Performance Bond and the Prime Contract; WHEREAS, USSIC agreed to obtain proposals for completion of all obligations of the Prime Contract; WHEREAS, Completing Contractor submitted a bid to USSIC and the City for the completion of the remaining scope of work under the Prime Contract and the City has agreed to accept the bid; WHEREAS, in fulfillment of the terms of the Performance Bond, USSIC seeks to tender the Completing Contractor to the City to complete the Prime Contract and Project upon the terms set forth therein and in this Agreement; WHEREAS, the City seeks to accept the tender of the Completing Contractor to complete the Prime Contract and Project upon the terms set forth therein and in this Agreement; and WHEREAS, all parties hereto agree that this Agreement shall be entered into so that the remaining work and requirements of the Prime Contract can be completed. 7 July Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Molly Rawn Mayor Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E Docusign Envelope ID: 4175B64C-BF90-82CD-83E6-AB17E6123A1E