HomeMy WebLinkAboutOrdinance 5755ORDINANCE NO. 5755
AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND APPROVE A
MEMORANDUM OF UNDERSTANDING WITH THE WALTON ARTS
CENTER, CDI CONTRACTORS, LLC AND BOORA ARCHITECTS, INC. TO
SPEND NOT TO EXCEED $6,323,515.00 OF THE 2014 HMR BOND
PROCEEDS TO PARTIALLY PAY FOR THE WALTON ARTS CENTER
EXPANSION AND ENHANCEMENT PROJECT
WHEREAS, the City participated with representatives of the Walton Arts Center to
select CDI Contractors, LLC as the Construction Manager/Contractor for the Walton Arts Center
Expansion and Enhancement Project pursuant to State Procurement laws; and
WHEREAS, the Walton Arts Center is raising private donations to be used along with
the City taxpayers' bond revenue of $6,323,515.00 to pay for balance needed to complete a
Walton Arts Center Expansion and Enhancement Project; and
WHEREAS, the City and the University of Arkansas jointly own the land and the
Walton Arts Center, incorporated the Walton Arts Center Council, Inc. to operate the theater and
have entered into a long term lease to ensure the continued operation of the Walton Arts Center
on Dickson Street which is very beneficial to Fayetteville's Entertainment District; and
WHEREAS, the Walton Arts Center Expansion and Enhancement Project could not be
accomplished without the strong efforts of the Walton Arts Center as well as the important
financial investment of the Fayetteville taxpayers.
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 determines
that the formal selection process that the Walton Arts Center and City of Fayetteville engaged in
to select CDI Contractors, LLC as their Construction Manager/Contractor almost certainly
complies with state purchasing law so that no other formal bidding is legally required, but hereby
also finds the facts previously stated would also constitute an exceptional situation where further
formal competitive bidding would not be feasible, practical or reasonable so that any possible
requirements of formal competitive bidding should be and are hereby waived.
Page 2
Ordinance No. 5755
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves
the attached Memorandum of Understanding in which the City of Fayetteville agrees to pay not
more than Six Million Three Hundred and Twenty Three Thousand and Five Hundred and
Fifteen Dollars ($6,323,515.00) for its portion of the costs of the Walton Arts Center Expansion
and Enhancement Project as approved by the voters and pursuant to bond revenue requirements
and authorizes Mayor Jordan to sign this Memorandum of Understanding.
PASSED and APPROVED this Yd day of March, 2015.
APPROVED -
ATTEST:
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City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
479-575-8323
Text File
File Number: 2015-0071
Agenda Data: 3/3/2015 Version: 1 Status: Passed
In Control: City Council File Type: Ordinance
Agenda Number: C. 2
WALTON ARTS CENTER EXPANSION:
AN ORDINANCE TO WAIVE COMPETITIVE BIDDING AND APPROVE A MEMORANDUM OF
UNDERSTANDING WITH THE WALTON ARTS CENTER, CDI CONTRACTORS, LLC AND
BOORA ARCHITECTS, INC. TO SPEND NOT TO EXCEED $6,323,515.00 OF THE 2014 HMR
BOND PROCEEDS TO PARTIALLY PAY FOR THE WALTON ARTS CENTER EXPANSION
AND ENHANCEMENT PROJECT
WHEREAS, the City participated with representatives of the Walton Arts Center to select CDI
Contractors, LLC as the Construction Manager/Contractor for the Walton Arts Center Expansion and
Enhancement Project pursuant to State Procurement laws; and
WHEREAS, the Walton Arts Center is raising private donations to be used along with the City
taxpayers' bond revenue of $6,323,515.00 to pay for balance needed to complete a Walton Arts Center
Expansion and Enhancement Project; and
WHEREAS, the City and the University of Arkansas jointly own the land and the Walton Arts Center,
incorporated the Walton Arts Center Council, Inc. to operate the theater and have entered into a long
term lease to ensure the continued operation of the Walton Arts Center on Dickson Street which is very
beneficial to Fayetteville's Entertainment District; and
WHEREAS, the Walton Arts Center Expansion and Enhancement Project could not be accomplished
without the strong efforts of the Walton Arts Center as well as the important financial investment of the
Fayetteville taxpayers.
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 determines that the formal
selection process that the Walton Arts
Center and City of Fayetteville engaged in to
select CDI
Contractors, LLC as their Construction Manager/Contractor almost
certainly complies
with state
purchasing law so that no other formal
bidding is legally required,
but hereby also finds
the facts
previously stated would also constitute
an exceptional situation where further formal
competitive
bidding would not be feasible, practical
or reasonable so that any
possible requirements
of formal
competitive bidding should be and are hereby waived.
Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves the attached
City of Fayetteville, Arkansas Page 1 Pdnted on 3/82015
File Number 20150071
Memorandum of Understanding in which the City of Fayetteville agrees to pay not more than Six
Million Three Hundred and Twenty Three Thousand and Five Hundred and Fifteen Dollars
($6,323,515.00) for its portion of the costs of the Walton Arts Center Expansion and Enhancement
Project as approved by the voters and pursuant to bond revenue requirements and authorizes Mayor
Jordan to sign this Memorandum of Understanding.
City of Fayetteville, Arkansas Page 2 Printed on 116/2015
City of Fayetteville Staff Review Form
2015-0071
Legistar File ID
3/3/2015
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Chief Financial Officer/
Paul Becker 2/11/2015 Finance & Internal Services Department
Submitted By Submitted Date Division / Department
Action Recommendation:
Approval of an ordinance to enter into an agreement with the Walton Arts Center and CDI, LLC for the Walton Arts
Center Expansion Project. The budget for this project is included in the 2015 budget.
Account Number
Project Number
Budgeted Item? Yes
Does item have a cost? Yes
Budget Adjustment Attached? No
Budget Impact:
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
$ 7,170,411.00
$ 846,896.00
V20140710
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
Approval Date:
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENT CORRESPONDENCE
AGENDA ITEM MEMO
To: Mayor Jordan and City Council
From: Paul A Becker
Date: February 11, 2015
Subject: Approval of an agreement with the Walton Arts Center and CDI Contractors, LLC to pay up to
$7,181,004 in construction costs for the Walton Arts expansion.
Background:
On September 16, 2014 the City Council passed Ordinance 5713 which authorized the sale of $10,995,000 in
face value of HMR Bonds. These bonds were previously authorized by the voter in a special election which
occurred on November 12, 2013.
The ballot questions at this election identified three uses for these bonds. The first use was for the refunding of
an outstanding HMR Bond issue. The second use was for the sale of up to $3,500,000 in bonds for the
Fayetteville Regional Park Project. The, third use was to issue up to $6,900,000 in bonds for a portion of the
Walton Arts Center Expansion Project. These bonds were sold on November 19, 2014 and were appropriated
for their intended purposes on December 16, 2014. Due to a premium amount bid for the bonds, a total of
$7,181,004 was generated for the Walton Arts Center Expansion Project.
This request is to authorize an agreement between the City of Fayetteville, the Walton Arts Center and CDI
Contractors, LLL(the Construction Manager of the project) to pay up to $6,323,515 in construction costs for the
Walton Arts Center Expansion. The purposes of these costs were identified in the Official Bond Statement as
the Walton arts Center Project as follows:
"Costs associated with site and structural improvements for the Walton Arts Center Iobby, and Starr
Theater, lobby restrooms, and electrical and HVAC infrastructure enhancements." The backstaging project is
being completed by Baldwin and Shell in the amount of $857,055.
The expenditure of the bond proceeds must be made for only the above purposes which were identified in the
Official Statement as these are Tax Exempt Bonds.
RECOMMENDATION:
It is recommended that the City of Fayetteville enter into the attached agreement with the Walton Arts Center
and CDI, LLC (the Construction Manager) This contract provides for the payment of up to $6,323,515 in
construction costs directly to the Construction Manager of the project, CDI Contractors, LLC, for progress
payments as submitted and recommended for payment by the Architect (Boora Architects) and by an authorized
person for the Walton Arts Center.