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Home My WebLink AboutOrdinance 4937 ORDINANCE NO. 4937 AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND APPROVING A COST- SHARE WITH OLIKA INVESTMENTS, LLC IN THE AMOUNT OF $30,398.53 FOR THE UPSIZING OF APPROXIMATELY 1460' OF 8" WATER MAIN TO 12" WATER MAIN . WHEREAS, the City of Fayetteville's Water Master Plan calls for a portion of the 12" Water Main Grid to run along Sophia Lane, near the residential development that Olika Investments, LLC is currently developing; and, WHEREAS, entering into a cost-share agreement with Olika Investments, LLC and utilizing their engineer and contractor to extend the 12" Water Main will avoid the added cost and unnecessary duplication of effort which would arise from the formal competitive bidding process. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby finds that such circumstances constitute an exceptional situation where competitive bidding is not feasible or practical, and waives the requirements of formal competitive bidding to approve a cost-share with Olika Investments, LLC in the amount of $30,398 .53 for the upsizing of approximately 1460' �AfiBllmf,,, water main to 12" water main. ERWjRE4s'%� PASSED AND APPROVED this 17'' day of October, 2006. c e FAYETTEVILLE APPROVE ATTEST: 444 Gmt4 By: By: IYY � DAN COODY, Mayo w SO DRA SMITH, City Clerk CONTRACTUAL AGREEMENT This Agreement, made and entered into this and between the City of Fayetteville, Arkansas and Olika Investments, LLC, Witnesseth : WHEREAS, Olika Investments, LLC is constructing a 31 lot residential subdivision on the east side of Salem Road; and WHEREAS, Olika Investments, LLC will be extending an 8" main through the project site to provide water service and fire protection to the development; and WHEREAS, it will benefit the City of Fayetteville to upgrade this 8" water main extension to a 12" main. This upgrade will continue the creation of a 12" water main grid in accordance with the water distribution master plan. NOW, THEREFORE, the City of Fayetteville and Olika Investments, LLC ae, ee as follows: 1 . Upon the City Council and/or the Mayor approving the Water Main Cost-Share, the City of Fayetteville agrees to: A. Pay for 100% of the actual documented construction costs for the upsizing to a 12" water main along Sophia Lane. B. Pay a maximum-not-to-exceed cost of $30,398.53 for the afore mentioned water main construction as was provided by Cherokee Development, Inc. , the contractor, and made a part of this agreement. r C. Reconsider the costs if the future and actual construction prices exceed the maximum-not-to-exceed amount that was furnished by the contractor. The contractual agreement shall be required to be reevaluated and re- approved by the Mayor and/or City Council as appropriate prior to proceeding with construction. D. Make all efforts to provide payment to Olika Investments, LLC within thirty (30) days after receipt of the invoice(s) but cannot guarantee the thirty day schedule. 2. Olika Investments, LLC agrees to: A. Provide the necessary and normal project management, inspection, and testing as necessary for a complete and acceptable water main installation. B . Provide a copy of the invoice(s) from the Contractor and a completed lien waiver executed by the Contractor upon acceptance of the water main installation. 3 . It is further understood that the contract for construction is between Olika i Investments, LLC and their Contractor and that the City has no contractual obligation with either the Contractor or the Engineer. The City's only obligation shall be to participate in a contractual agreement with a not-to-exceed amount of $30,398.53 for the water main upgrade. IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE, WE SIGN BELOW: CITY OF FAYETTEVILLE Olika Investments, LLC 6y: By: DAN COODY, Mayor _ City of Fayetteville 1017 7144 Staff Review Formg3.7 City Council Agenda Items or Contracts IV-Oct-06 City Council Meeting Date Matt Casey Engineering Operations _ Submitted By Division Department Action Required: Approval of a cost-share and bid waiver in the amount of $30,398.53 v, ith Olika Investments, LLC for the upsizing ;. r approximately 1460' of 8" water main to 12". Water and Sewer $30,398.53 $ 424,740.00 Cost Sharing Cost of this request Category/Project Budget Program Category / Project Name 5400.5600.5808.00 $ 137, 139.75 Water and Sewer Improvements Funds Used to Date Program / Project Category Name 02067 $ 287,600.25 Project Number Remaining Balance Fund Name Budgeted Item E Budget Adjustment Attached ^ Previous Ordinance or Resolution # Departmen�ector' Date Original Contract Date: Original Contract Number: - vl/ y z9 aG "City Attorney Received in gify Clerk Office TIRE Finance and Internal Service Director Date _ Received in Mayor's Office HT E Mayor Comments: City Council Meeting of October 3, 2006 CITY COUNCIL AGENDA MEMO To: Mayor and City Council Thru : Gary Dumas, Director of Operations From : Ron Petrie, City Engineer Date: September 11 , 2.006 Subject: Proposed cost-share and bid waiver in the amount of $30,398.53 with a with Olika Investments, LLC for the upsizing of approximately 1460' of 8" water main to 12". RECOMMENDATION Staff recommends that the City cost-share with Olika Investments, LLC, the developer, to upsize approximately 1 ,460 feet of 8" water main to a 12" main. By participating in the construction of these improvements, the City will be continuing a 12" grid in the water line distribution system as recommended by the Water Master Plan Study. BACKGROUND The Olika Investments, LLC is constructing a 31 lot residential subdivision on the east side of Salem Road. As a part of this development, the developer is required to construct a water main extension to provide water service and fire protection to the site. DISCUSSION There is existing 8" water main along Salem Road. The proposed development is required to connect to this main and extend it to serve the subdivision. It would benefit the City to cost-share with the developer for the construction of a portion of the water line to install a 12" main along Sophia Lane. This will continue a 12" water line grid that will serve customers in this area. The City's cost is approximately 57% of the total cost before contingencies. Should the City wait to upgrade the water main, future costs will be significantly higher. 1 City Council Meeting of October 3, 2006 Construction costs have been provided to the City for these improvements by the contrctor as follows: Developer's Share $ 229575.00 City's Share $ 30,398.53 Total $ 52,973.53 BUDGETIMPACT Based upon the information provided by the Budget & Research Division; there is a remaining balance of $287,600.25 in the Water and Sewer Cost Sharing Account. The final costs to the City will be based upon actual costs as documented by Olika Investments, LLC subject to review by the City and may, or may not exceed the submitted estimate. However, the City's share will not exceed the estimat, without additional authorization . z 2 , ORDINANCE NO. AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING AND APPROVING A COST-SHARE WITH OLIKA INVESTMENTS, LLC IN THE AMOUNT OF $30,398.53 FOR THE UPSIZING OF APPROXIMATELY 1460' OF 8" WATER MAIN TO 12" WATER MAIN. WHEREAS, the City of Fayetteville's Water Master Plan calls for a portion of the 12" Water Main Grid to run along Sophia Lane, near the residential development that Olika Investments, LLC is currently developing; and, WHEREAS, entering into a cost-share agreement with Olika Investments, LLC and utilizing their engineer and contractor to extend the 12" Water Main will avoid the added cost and unnecessaryA plication of effort which would arise from the formal competitive bidding process. ; et NOW, THEREFORE, BE IT ORDAINED BY THE CITY U CSL OF ' HE CITY OF FAYETTEVILLE, ARKANSAS: Iti Section 1 . That the City Council of the City of\a1teville, Arkareas hetreby finds thatsuch circumstances constitute an exceptional situation where competitiidding is not �feaasibQ or practcall and waives the requirements of formal competitive bidding to approve. st-share with Olika;lnvestments, ' L'C in the amount of t - $30,398.53 for the upsizin�g. of approximately 1460" o ";water main io 12" wat r main. PASSED AN OV Dhis 17 a ofct • her, 20 6 APPROVED. 7 fEST: By; ITBy: AN COOIY, Ma, i SONDRA SMITH, City Clerk ii p. its FIGURE 10.2 PROPOSED'SYSTEM IMPROVEMENTS 1�• 1 " - 4000' ' ® R ai fr Fpp 'E� R` > •.j � � I! � � � 1-18•^4 ,d 1 It 18 1-1 PRAIEQ 7 4 i I GWD k kEi .s. l lf Mn r 9A LL kkkkk is j �.:_ ` --_... k _.--� 1�_�_ _ �2 t8• .'" vim.., ,��:t � y � 1,. LEGEND —2-18 2-18• 5 r tir _ / ii �'� . r S O LV STORAGE TANK ----- k1 i ` _ t £ MARKHAWHILL EXISTING 16 " W/L m 6 , _ 'STORAGE "TANK it OR GREATER � f I nt� i �l — FUTURE 12" GRID ! '• ° ` ' H PROPOSED W L 1 - 5 YR . PRIORITY I e ' 1ft L t PROPOSED W/L 5- 10 YR. PRIORITY t f r t ffi PROPOSED W/L IrE t aI'° ° q I .. t 10- 20 YR . PRIORITY 0o� � �� } � �-- � --• t -241 X—LINE NUMBER a 3-24 3 24•, e i1 IA u 3y 14 yr . t iJ' Y ,F i� — y mgr - {s . o }� a 3�2$• ' S �- � �7� Elm, rr �..r ris � lm e Lis— % W W12 KESSLER MOUNTAIN �� 5 STORAGE TANKS „"vis z ti° -- 10. 18.06) Clarice Pearman - C. Green Scoping LP � Page 1 From: Clarice Pearman To: ]urgens, David Date: 10. 18.06 5:37 PM Subject: C. Green Scaping LP David, The City Council passed your item regarding the above company. However I do not have a signed agreement to continue the processing of item. Please let me know what the status is of receiving a signed agreement. Have a good day. Thanks. Clarice CONTRACTUAL AGREEMENT This Agreement, made and entered into this by and between the City of Fayetteville, Arkansas and Olika Investments, LLC, Witnesseth : . WHEREAS, Olika Investments, LLC is constructing a 31 lot residential subdivision on the east side of Salem Road; and WHEREAS, Olika Investments, LLC will be extending an 8" main through the project site to provide water service and fire protection to the development; and WHEREAS, it will benefit the City of Fayetteville to upgrade this 8" water main extension to a 12" main. This upgrade will continue the creation of a 12" water main grid in accordance with the water distribution master plan. NOW, THEREFORE, the City of Fayetteville and Olika Investments, LLC agree as follows: 1 . Upon the City Council and/or the Mayor approving the Water Main Cost-Share, the City of Fayetteville agrees to: A. Pay for 100% of the actual documented construction costs for the upsizing to a 12" water main along Sophia Lane. B. Pay a maximum-not-to-exceed cost of $30,398.53 for the afore mentioned water main construction as was provided by Cherokee Development, Inc. , the contractor, and made a part of this agreement. C. Reconsider the costs if the future and actual construction prices exceed the maximum-not-to-exceed amount that was furnished by the contractor. The contractual agreement shall be required to be reevaluated and re- approved by the Mayor and/or City Council as appropriate prior to proceeding with construction. D. Make all efforts to provide payment to Olika Investments, LLC within thirty (30) days after receipt of the invoice(s) but cannot guarantee the thirty day schedule. 2. Olika Investments, LLC agrees to: A. Provide the necessary and normal project management, inspection, and testing as necessary for a complete and acceptable water main installation. B. Provide a copy of the invoice(s) from the Contractor and a completed lien waiver executed by the Contractor upon acceptance of the water main installation. 3 . It is further understood that the contract for construction is between Olika Investments, LLC and their Contractor and that the City has no contractual obligation with either the Contractor or the Engineer. The City's only obligation shall be to participate in a contractual agreement with a not-to-exceed amount of $30,398. 53 for the water main upgrade. IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE, WE SIGN BELOW: CITY OF FAYETTEVILLE Olika Investments, LLC By: By. DAN COODY, Mayor k 1 RECEIVED Che -&ke& DevelopmR*itlw.cl AUG 2 3 2006 9905Adcra.LDr6y& ENGINEERING DIV . Roge,rk,Ar 72756 479 -936 -5910 F Changes due to incresed size in waterline cost for supplies for 8 inch line is $22,575.00 cost for supplies for 12 inch line is $50,973.53 difference $28,398.53 extra labor spent on 12 vs Bin $2,000.00 total difference to increse $30,398.53 The cost incress are due to incresed size in water line and labor to install 1540 foot along road in rockhaven from east to west i • r