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HomeMy WebLinkAboutOrdinance 5542 ORDINANCE NO. 5542 AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING FOR APPROVING A COST-SHARE AGREEMENT WITH SOURCEGAS ARKANSAS, INC. IN THE AMOUNT OF $94,577.00 FOR THE RELOCATION OF GAS MAINS AND FACILITIES NECESSARY FOR THE FULBRIGHT EXPRESSWAY/HIGHWAY 71-B FLYOVER PROJECT AND FOR ALL FUTURE PAYMENTS TO OR CONTRACTS WITH SOURCEGAS ARKANSAS, INC. FOR THE RELOCATION COSTS FOR NATURAL GAS UTILITY MAINS AND APPURTENANCES NECESSITATED BY ROAD RECONSTRUCTION OR WIDENING PROJECTS WITHIN SOURCEGAS ARKANSAS, INC.'S AREA OF SERVICE, APPROVING A PROJECT CONTINGENCY OF $18,915.00 FOR THE FLYOVER PROJECT, AND APPROVING A BUDGET ADJUSTMENT WHEREAS, the City in coordination with the Arkansas State Highway and Transportation Department are constructing a Fulbright Expressway/Highway 71-B Flyover, and as part of the project it is necessary for certain gas mains and facilities belonging to SourceGas Arkansas, Inc. (SourceGas)to be relocated; and WHEREAS, it is most cost effective for the City to enter into an agreement with SourceGas for the provision of said work on a fifty percent (50%) cost-share basis; and WHEREAS, SourceGas has exclusive jurisdiction to construct and maintain such natural gas facilities within their service area as designated by the Arkansas Public Service Commission and such cost-share agreements should be entered without the requirement formal competitive bidding; 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 the above-stated facts constitute an exceptional situation in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and approves a cost-share utility work agreement with SourceGas Arkansas, Inc. in the amount of $94,577.00 for the relocation of gas mains and facilities necessary for the Fulbright Expressway/Highway 71-B Flyover Project, further approves a project contingency of $18,915.00, and approves waiver of formal competitive bidding on all such projects necessitated Page 2 Ordinance No. 5542 by any road reconstruction or widening projects with SourceGas Arkansas, Inc. within Fayetteville until December 31, 2016. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached as Exhibit"A". PASSED and APPROVED this 20`s day of November, 2012. APPROVED: ATTEST: S By: By: - s +n , < � C � u �F . O ELD 3 Mayor SONDRA E. SMITH, City Clerk/Treasurer JkI%% City of Fayetteville,Arkansas Budget Adjustment Form V11.0310 Budget Year Division: Engineering Request Date Adjustment Number 2012 Department: Development Services 11/2/2012 BUDGET ADJUSTMENT DESCRIPTION/JUSTIFICATION Approval of an Ordinance approving a Utility Work Agreement with SourceGas Arkansas Inc. in the amount of$94,577.00 plus a contingency of$18,915.00 for a total of $113,492.00 for the relocation of gas mains and facilities necessary for the Fulbright Expressway/Hwy71 B Floyover Project. r ' __ Prepared By: Division Hea Date ehutchens / Reference: Bu et Dir or Date Budget& Research Use Only Depa a ecto — A'( >✓ Type: A B C D E p Date 11 - 7 -Jh I L General Ledger Date 6/7/2011 FinarAe Director Date ��-7'/A-*" Posted to General Ledger Ahr fStaff pate Initial Date �/ to Checked/Verified Initial Date TOTAL BUDGET ADJUSTMENT Increase/(Decrease) Project.Sub Account Name Account Number Expense Revenue Number Street improvements 4520.9540.5809.00 (115,000) 06035 . 2000 Contract services 4520.9540.5315.00 115,000 06035 . 1720 EXHIBIT J:\EXCEL\FEEDC%FlyoverlBA Flyover SourceGas 11012012 1 of 2 City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 11/20/2012 City Council Meeting Date Agenda Items Only Chris Brown Co Engineering Development Services Submitted By Division Department Action Required: Approval of an Ordinance approving a Utility Work Agreement with SourceGas Arkansas Inc.in the amount of $94,577.00 plus a contingency of$18,915.00 for a total of$113,492.00 for the relocation of gas mains and facilities necessary for the Fulbright Expressway/Hwy7lB Floyover Project. $ 115,000.00 $ 1,659,924.30 Flyover(FEEDC) Cost of this request Category I Project Budget Program Category/Project Name 4520.9540.5315.00 $ 115,000.00 Street Improvements Account Number Funds Used to Date Program/Project Category Name 06035.1720 $ 1,544,924.30 2009 Street Bonds Project Number Remaining Balance Fund Name Budgeted Item = Budget Adjustment Attached =X 64 ,�, it 2.47— Previous Ordinance or Resolution# Dep211orney, Director Date Original Contract Date: Original Contract Number: n Date Finance and Internal Services Director Date Received in City Clerk's Office Chief of Sta Date f Received in Mayors Office � aI Date Comments: Revised January 15,2009 7 a erLflle THE CITY OFFAYETTEVILLE,ARKANSAS DEPARTMENT CORRESPONDENCE 11 S CITY COUNCIL AGENDA MEMO Council Meeting of November 20,2012 To: Mayor and City Council Thru: Don Marr, Chief of Staff Jeremy Pate, Development Services Director From: Chris Brown, City Engineer Date: November 2, 2012 Subject: An Ordinance approving a contract with SourceGas in the amount of $94,577.00 plus a 20% contingency of $18,915.00 for a total of $113,492.00 for the relocation of gas mains and facilities necessary for the Fulbright Expressway/Hwy 71B Flyover Project PROPOSAL: After reviewing the proposed construction plans, Engineering staff and SourceGas staff have agreed that approximately 1,305 linear feet of existing gas line and appurtenances will have to be relocated to allow the proposed Flyover project to be constructed. It was also determined that 50% of the proposed total costs to relocate this line is an equitable and fair cost share to both parties. Therefore, the City will reimburse SourceGas 50% or $94,577.00 of actual costs to relocate their facilites which is presently estimated at $189,154.00. Due to the unpredictable nature of construction projects, staff has included a 20% contingency for unforseen utility conflicts which is estimated at $19,915.00. The total dollar amount to be approved by City Council is $113,492.00. The final payment by the City will be based on the actual quantity of gas facilities relocated, whether less than or more than the current estimate of 1,305 linear feet. RECOMMENDATION: Staff recommends City Council approval of the contract with SourceGas Arkansas, Inc. BUDGETIMPACT: Funds are available from the project budget which is funded by the Transportation Bond Program. ORDINANCE NO. AN ORDINANCE WAIVING THE REQUIREMENTS OF FORMAL COMPETITIVE BIDDING FOR APPROVING A COST-SHARE AGREEMENT WITH SOURCEGAS ARKANSAS, INC. IN THE AMOUNT OF $94,577.00 FOR THE RELOCATION OF GAS MAINS AND FACILITIES NECESSARY FOR THE FULBRIGHT EXPRESSWAY/HIGHWAY 71-B FLYOVER PROJECT AND FOR ALL FUTURE PAYMENTS TO OR CONTRACTS WITH SOURCEGAS ARKANSAS, INC. FOR THE RELOCATION COSTS FOR NATURAL GAS UTILITY MAINS AND APPURTENANCES NECESSITATED BY ROAD RECONSTRUCTION OR WIDENING PROJECTS WITHIN SOURCEGAS ARKANSAS, INC.'S AREA OF SERVICE, APPROVING A PROJECT CONTINGENCY OF $18,915.00 FOR THE FLYOVER PROJECT, AND APPROVING A BUDGET ADJUSTMENT WHEREAS, the City in coordination with the Arkansas State Highway and Transportation Department are constructing a Fulbright Expressway/Highway 71-B Flyover, and as part of the project it is necessary for certain gas mains and facilities belonging to SourceGas Arkansas, Inc. (SourceGas) to be relocated; and WHEREAS, it is most cost effective for the City to enter into an agreement with SourceGas for the provision of said work on a fifty percent(50%) cost-share basis; and WHEREAS, SourceGas has exclusive jurisdiction to construct and maintain such natural gas facilities within their service area as designated by the Arkansas Public Service Commission and such cost-share agreements should be entered without the requirement formal competitive bidding; 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 the above-stated facts constitute an exceptional situation in which competitive bidding is deemed not feasible or practical and therefore waives the requirements of formal competitive bidding and approves a cost-share utility work agreement with SourceGas Arkansas, Inc. in the amount of $94,577.00 for the relocation of gas mains and facilities necessary for the Fulbright Expressway/Highway 71-B Flyover Project, further approves a project contingency of $18,915.00, and approves waiver of formal competitive bidding on all such projects necessitated by any road reconstruction or widening projects with SourceGas Arkansas, Inc. within Fayetteville until December 31, 2016. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached as Exhibit"A". PASSED and APPROVED this 20s' day of November, 2012. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer sourceAGas Arkansas UTILITY WORK AGREEMENT (MUNICIPALITY) Municipality: City of Fayetteville, Arkansas Municipality's Address: 113 West Mountain, Fayetteville, AR 72701 Job Location: Arkansas Highway and Transportation Department 40535—Flyover from North College Avenue onto Fulbright Expressway West-Bound Lanes This Utility Work Agreement ("Agreement') is made and entered into this ao _ day of November, 2012, by and between City of Fayetteville, Arkansas (hereinafter referred to as "Municipality'), and SourceGas Arkansas Inc. (hereinafter referred to as "SourceGas"). WHEREAS, Municipality proposes to make certain improvements at the location designated above, and as a result of such improvements, SourceGas must adjust, enhance, locate, observe, and/or relocate certain of its existing facilities, or construct additional facilities; and WHEREAS, in connection with Municipality's proposed improvements, Municipality wishes SourceGas to do the following: Install approximately 100 feet of new 6 inch pipeline along the South side of Fulbright Expressway from the existing SourceGas bore location West, abandoning in place approximately 310 feet of bored and cased 6 inch steel pipeline beneath Fulbright Expressway. At the end point of the newly extended and installed 6 inch pipeline, bore beneath Fulbright Expressway to the North side of Fulbright Expressway and install approximately 340 feet of new 6 inch pipeline. Install new 6 inch pipeline East along the North side of Fulbright Expressway approximately 785 feet to be connected to an existing 6 inch pipeline abandoning in place approximately 645 feet of 6 inch steel pipeline along the North side of Fulbright Expressway. (hereinafter referred to as the "Work"); and 1 WHEREAS, such Work is shown in detail in SourceGas' plans, sketches, estimate of cost, and specifications (when applicable), which are attached to this Agreement and made a part hereof; and WHEREAS, Municipality agrees to pay for the cost of such Work to the extent herein agreed upon. NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND OTHER VALUABLE CONSIDERATION HEREIN ACKNOWLEDGED, MUNICIPALITY AND SOURCEGAS AGREE AS FOLLOWS: 1. Where applicable hereunder by reason of new utility occupancy or crossing of Municipality's property, Municipality hereby grants to SourceGas an easement or license to install and operate utility facilities on or across Municipality's property as shown on the approved plans or sketch maps attached hereto and made a part hereof. 2. Where applicable hereunder by reason of new construction on existing utility rights of way, SourceGas hereby grants to Municipality the right to use for Municipality's purposes the lands within the limits of the improvement project limits on or across which SourceGas holds a valid property interest antedating Municipality's rights which were subsequently acquired in the same lands, and which property rights SourceGas shall retain so long as SourceGas, its successors or assigns continues such use and occupancy and does not abandon, and thereby release, such property interest to Municipality through removal of facilities in performing the Work or by subsequent removal of facilities for SourceGas' convenience; and Municipality hereby agrees that SourceGas, 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 SourceGas 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 Municipality or SourceGas 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 Municipality or of SourceGas, either party hereto may, at 2 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. Municipality will pay SourceGas 50% of the actual cost of the Work. The estimated cost of the Work is $189,154.00. Thus, the estimated cost to Municipality for the Work is $94,577.00 ($189,154.00 x .50). After it has completed the Work, SourceGas will bill Municipality for 50% of the actual cost of the Work. Municipality shall pay such invoice within 30 days of Municipality's receipt of the invoice. If Municipality 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. 5. SourceGas will perform the Work, as described on the first page of this Agreement. SourceGas will endeavor to perform the Work within a reasonable time period, subject to applicable laws, rules and regulations of governmental authorities, and subject to any delay occasioned by lack of right of way, availability of materials and supplies, force majeure or events or conditions of whatsoever nature reasonably beyond SourceGas' control, and further conditioned upon the receipt of all required approvals and consents in form and substance acceptable to SourceGas. SourceGas shall not be obligated to commence the Work unless and until, at no cost to SourceGas, all necessary easements and rights of way have been executed, acknowledged and delivered to SourceGas in a form acceptable to SourceGas. 6. Title to and ownership of facilities which are the subject of the Work shall forever be and remain exclusively and unconditionally vested in SourceGas. Municipality understands, acknowledges and agrees that Municipality shall have no title to, interest in, or ownership of those facilities. 7. It is mutually agreed by the parties hereto that the provisions of this Agreement pertaining to property rights, right of way occupancy permission, access for servicing when applicable, and joint use of rights of way shall continue in full force and effect from the date of this Agreement, and shall be perpetually binding upon each party, and its representatives, successors and assigns. 8. Municipality and SourceGas acknowledge that there are no agreements or understandings, either written or oral, between the parties related to the Work, other than as set forth in this Agreement, and that this Agreement (including any attachments hereto) contains the entire agreement between the parties regarding the Work. 3 9. This Agreement shall be governed in accordance with the laws of the State of Arkansas, the rules and regulations of the Arkansas Public Service Commission, and the Tariff of SourceGas. In the event of a conflict between this Agreement and any such laws, rules, regulations or Tariff, such laws, rules, regulations or Tariff shall control. 10. In the event SourceGas is required to initiate litigation to enforce the terms and conditions of this Agreement, then SourceGas shall have the right to recover from Municipality SourceGas' costs and expenses of such litigation, including reasonable attorney fees. 11. Municipality acknowledges that it has been afforded an opportunity to have its attorney review and explain the terms of this Agreement. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed in duplicate by their duly authorized representatives on the date stated above. SOURCEGAS ARKANSAS INC. CITY OF FAYETTEVILLE, ARKANSAS O By: $ . Douglas Whitefoo Its: Sr. Vice President, Operations Its: I I l �•r� r 4 AHTD 40535 - City of Fayetteville - Fulbright source Gas Expressway Flyover - BORE Arkaris as 8/27/2012 16:03 PROJECT TITLE: AHTD 40535 City of Fayetteville- Fulbright Expressway Flyover-'BORE COMPANY NAME SourceGas Arkansas ICOMPANY NO. 1048 REQUESTED BY: AHTD PREPARED BY: Jim Rowe ESTIMATE NO.: 1 ORIGINAL EST. DATE: 7123/2012 REVISION NO. REVISION DATE: PROJECT MANAGER: Jim Rowe AFUDC: 0.00% Contingency 0% OVERHEAD: 19.00% SCOPE: AGTD 40535, City of Fayetteville Flyover onto Fulbright Expressway. Requires the relocation of approximately 1,305'of 6"steel pipeline to be installed along the South side of Fulbright Expressway, Highway 71 B, boring underneath Fulbright Expressway and then the installation of appoximately 820'of 6"steel pipeline along the North side of Fulbright. This relocation is to allow for bridges, drainage and pillars associated with the proposed Flyover Project. Contractor stated that the bore rate of$40.00 would apply unless ROCK was encountered. ASSET CAPABILITIES: Volumes Pressure Minimum 0 MMcfd Design 0 psig Maximum 0 MMcfd MAOP 0 psig Normal Operating 0 psig Delivery Pressure 0 prig ESTIMATE SUMMARY MATERIALS $ 38,961 COMPANY COST $ 2,000 OUTSIDE SERVICES $ 106,663 ROW, DAMAGES& PERMIT FEES $ 11,329 MEASUREMENT& MISC $ - SUBTOTAL $ 158,953 Contingency $ - SUBTOTAL $ 158,953 CAPITALIZED OVERHEAD $ 30,201 SUBTOTAL $ 189,154 Misc. Fees (over$30k& 60 days-AFUDC-4%) $ - GROSS ESTIMATED COST $ 189,154 C:\2012WHTD Projects List\40535-Fulbright Flyover\40535 COF Flyover 8272012 Cost Estimate BORE