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HomeMy WebLinkAbout1992-09-30 Minutes1 SPECIAL MEETING OF THE CITY BOARD OF DIRECTORS A special meeting of the Fayetteville City Board of Directors was held on September 30, 1992 at 8:30 a.m. in Room 326 of the City Administration Building at. 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Fred Vorsanger; Assistant Mayor Mike Green; Directors Shell Spivey, Bob Blackston, and Dan Coody; City Manager Scott Linebaugh; City Attorney Jerry Rose; Director of Public Works Kevin Crosson; Director of Administrative Services Ben Mayes; City Clerk Sherry Thomas; members of staff, press, and audience. ABSENT: Directors Ann Henry and Julie Nash. CALL TO ORDER. Mayor Vorsanger called the meeting to order with five directors present and stated the purpose of the meeting was to consider awarding the construction contract for the 36" water transmission line. 36" WATER TRANSMISSION LINE City Manager Linebaugh stated this contract is for Phase I of the water project which will be for constructing a water line from the Beaver Water Treatment Plant to the northern boundary of the City of Fayetteville near the intersection of Joyce and Highway 71B. The urgency in approving this contract is so the construction can begin as quickly as possible to have the water line completed by the early part of next summer to avoid possible water shortages. The bids on the contract came in considerably lower than the engineers estimated. Funding for this project has been held up by the trustee because of the sales tax lawsuit. However, a new bond issue has just been sold for the purpose of financing this construction. This contract has been bid in -two sections:•. The first section is for.51,000 feet of 42" water line, and the second is for 8,800 feet of 36" water line. The low bidder on the contract was Garney Companies, Inc., of Kansas City, Missouri. - Don Bunn, City Engineer, stated Section I of the contract is for the 42" pipe with a base bid:of $4,334,523`.50. The contract was bid with a deductive alternate of a, 36'! line and would save $605,000. The bid allowed.for either concrete pipe or ductile iron to be bid for this section ofthe.line. Garney bid concrete pipe. Section II of the contract called for the use of ductile iron, and Garney bid $988,366.50 ,for this .portion,- of the line. Bunn explained that the actual bidfigure -is $20;000 more than this, but Garney stated in their bid if.,they,werelawarded Section I, they September 30, 1992 would reduce their bid on Section II by $20,000. The total for the contract is $5,322,860 for the 42" and 36" water transmission line. The engineering estimates were that the cost would be $700,000 to $800,000 higher than what was bid. Staff recommends awarding the contract to Garvey. In addition, Staff is recommending approving the additional expenditure for the 42" pipe rather than the 36" pipe for Section I of the project. The primary reason is this will expand the capability of water transmission for the City about 50% at an extra cost of only 15%. In 20-30 years, another transmission line will have to be built, and costs at that time will be much greater than they are now. The City has been able to use much of the existing route of the current water line as well as existing right of way for the new 36"/42" line. This will probably not be possible in another 20-30 years when another new line will be necessary. Bunn stated the total budget for this project is $14,200,000. Staff feels the job can be completed for that amount including the cost of the upgrade to the 42" line. Bunn stated the balance of the project will be bid in two phases: (1) 12,000,000 gallon storage facility and connecting lines will be bid soon after the first of the year, and (2) Continuation of the 36" line from Joyce to tie into the storage tank will be bid in April or May or 1993. Staff feels a comparable bid can be obtained on this next phase if bids are let in the next 6 to 8 months. At this time, the cost of the pipe for the line is at a very good price. Director Green stated less pumping horsepower would be required for the 42" line than the 36" line. He asked if Beaver Water District would pass this savings onto the City. Bunn stated actual costs are figured at the end of each year, and Beaver does rebate to the City. There is an estimated savings of $50,000 for a 20 year period on the pumping costs. Director Coody asked if there was a warranty on the line included in the bids. Bunn stated the warranty was for one year. This one year period was specified in the bid document and is the normal time for a warranty on a project of this type. Director Coody stated he would like to see the City implement water conservation measures so that no crisis situation would occur in the event there might be some delay in the construction process. Bunn stated the City does have contingency plans and conservation measures. Because of the mild and wet summer we have just experienced, no rationing or other measures were required. 1 1 September 30, 1992 Director Green stated he did not want this past mild summer to lull the City into not taking this water problem seriously. Conservation measures can save up to a maximum of 20% of the current use. The City needs 60% more water than we currently have available to handle the peak time period needs. Conservation will help, but it will not solve all the problems. This project has already been delayed because the trustee has held the funds because of the sales tax lawsuit. He stated he was glad to see the interest in the water and sewer bond issue and now the good bids we have just received on the •construction of this line. Things are looking very positive in all aspects of this project. We need to have this line completed by next summer, and he is very pleased with the progress. Green, seconded by Blackstone made a motion to award the construction contract for the 42H/36n water transmission line to Garney Companies, Inc. Director Coody stated he was glad to see the 42" line bid. Jerry VanHoose, engineer with McGoodwin, Williams & Yates, addressed the Board and stated Garney was a very fine company that has done work for the City previously and for his engineering firm. They are very capable of handling the whole project. They were pleased to receive the 10 bids. There are not many projects of this type currently being bid, so the good number of bids were received as well as getting the great price on the pipe. VanHoose stated the project should be completed by the early part of summer. Upon roll call, the motion passed by a vote of 5 to 0. RESOLUTION 148-92 AS RECORDED IN THE CITY CLERK'S OFFICE Mayor Vorsanger commended Staff for keeping on top of this project and for having the foresight to go ahead and seek alternate financing methods so the job could be completed by the time it is needed next summer. ADJOURNMENT The meeting adjourned at 8:51 a.m. 1 • •J