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
