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HomeMy WebLinkAbout112-03 RESOLUTION• 1 RESOLUTION NO; 112-03 A RESOLUTION TO APPROVE AN ENGINEERING CONTRACT WITH RJN GROUP, INC. IN THE NOT TO EXCEED AMOUNT OF $2,500,718.00 FOR ENGINEERING SERVICES RELATED TO THE WEST PIPELINES AND PUMP STATIONS BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby approves a lump sum contract in the not to exceed amount of Two Million Five Hundred Thousand Seven Hundred Eighteen Dollars ($2,500,718.00) attached as Exhibit A. This lump sum contract engages RJN Group, Inc. to provide engineering services to include project design surveys, easement documents preparation, odor control designs, project administration, value engineering support, project coordination, preparation of construction contract specifications and drawings, estimating probable construction costs, and providing bidding and negotiation services for eight construction contracts (as more particularly described in the contract) related to the West Pipelines and Pump Stations. Section 1. That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Dan Coody to execute this contract (Exhibit A) to hire RJN Group, Inc. for this project. PASSED and APPROVED this the 15th day of July, 2003. 7 -ATTEST' By: hatij .) Sondra Smith, City Clerk APPROVED: By DAN COODY, May • • • AGREEMENT For PROFESSIONAL ENGINEERING SERVICES Between CITY OF FAYETTEVILLE, ARKANSAS And RJN GROUP, INC. THIS AGREEMENT is made as of duly /5 , 2003, by and between City of Fayetteville, Arkansas, acting by and through its Mayor (hereinafter called CITY OF FAYETTEVILLE) and RJN GROUP, INC. with offices located in Fayetteville, Arkansas (hereinafter called RJN GROUP, INC.). CITY OF FAYETTEVILLE from time to timc requires professional engineering services in connection with the planning, design, permitting, construction, operation, maintenance, management, and financing of the Fayetteville Wastewater System Improvement Project and in particular Westside Collection System Improvements (The Project"). Therefore, CITY OF FAYETTEVILLE and RJN GROUP, INC. in consideration of their mutual covenants agree as follows: RJN GROUP, INC. shall serve as CITY OF FAYEFIEVILLE's professional engineering consultant in those assignments to which this Agreement applies, and shall give consultation and advice to CITY OF FAYETTEVILLE during the performance of RJN GROUP, INC.'s services. All services shall be performed under the direction of a professional engineer registered in the State of Arkansas and qualified in the particular field. If Construction Phase Services arc to be provided by RJN GROUP, INC. under this Agreement, the construction shall be executed under the observation of a professional engineer registered in the State of Arkansas in accordance with Arkansas Code Amended §22-9-101. SECTION 1 - AUTHORIZATION OF SERVICES 1.1 Services on any assignment shall be undertaken only upon written Authorization of CITY OF FAYETTEVILLE and agreement of RJN GROUP, INC. 1.2 Assignments may include services described hereafter as Basic Services or as Additional Services of RJN GROUP, INC. 1.3 Changes, modifications or amendments in scope, price or fees to this contract shall not be allowed without a formal contract amendment approved by the Professional Services-Design-Final-May2003 A — I 052303 • • Mayor and the City Council in advance of the change in scope, costs, fees, or delivery schedule. SECTION 2 - BASIC SERVICES OF 2.1 General 2.1.1 Perform professional design services in connection with the Project as hereinafter stated, which shall include normal civil, structural, mechanical, and electrical engineering services and normal architectural design services incidental thereto. 2.1.1.1 The Scope of Services to be furnished by RJN GROUP, INC. during the Final Design Phase is included in Section 2.2 hereafter and in Appendix A attached hereto and made part of this Agreement. 2.1.1.2 The Scope of Services to be fumished by RJN GROUP, INC.during the Bidding Phase is included in Section 2.3 hereafter and in Appendix B attached hereto and made part of this Agreement. 2.1.1.3 The Scope of Services to be furnished by RJN GROUP, INC. during the Construction Phase, if any, will be finalized and contained in an amendment to this Agreement after Final Design is completed. 2.1.1.4 The Scope of Services to be furnished by RJN GROUP, INC. during the Post - Construction Phase, if any, will be finalized and contained in an amendment to this Agreement after Final Design is completed. 2.1.1.5 The preliminary Scope of Services to be furnished by RJN GROUP, INC. for Resident Services During Construction, if any, will be finalized and contained in an amendment to this Agreement after Final Design is completed. 2.1.2 CITY OF FAYETTEVILLE has retained the services of BURNS & McDONNELL ENGINEERING COMPANY, INC., a Missouri Corporation specializing in consulting engineering services, as the "Program Manager" for the Wastewater System Improvement Project. The professional design services to which this Agreement applies are a part of the Wastewater System Improvement Project. RJN GROUP, INC. shall coordinate their activities and services primarily with Program Manager and all other parties that CITY OF Professional Services-Design-Final-May2003 A — 2 052703 • • FAYETTEVILLE may contract with for program management or professional design services as a part of the Wastewater System Improvement Project RJN GROUP, INC. and CITY OF FAYETTEVILLE agree that RJN GROUP, INC. has full responsibility for the engineering design. 2.2 Final Design Phase 2.2.1 Prepare for incorporation in the Contract Documents detailed drawings to show the character and scope of the Work to be performed by contractors on the Project (hereinafter called the "Contract Drawings"), and Invitation to Bid, Instructions to Bidders, Bid Form, Agreement and Bond forms, General Conditions, and Specifications (all of which, together with the Contract Drawings, arc hereinafter called the "Bid Documents") for review and approval by CITY OF FAYETTEVILLE, its legal counsel, and other advisors as appropriate, and assist CITY OF FAYETTEVILLE in the preparation of other related documents. 2.2.1.1 Bid documents shall be based on Construction Specifications Institute (CSI) Master Format and Section Format and shall incorporate CITY OF FAYETTEVILLE's standard general conditions and forms. Bid documents shall include required forms for State Revolving Loan Fund funding. Text documents shall be provided to CITY OF FAYETTEVILLE in Microsoft Word version 2000 software. Contract drawings shall be prepared using standard borders, sheet sizes, title blocks and CADD standards provided by CITY OF FAYETTEVILLE. RJN GROUP, INC. may use their normal software for the preparation of drawings but the final product shall be provided to CITY OF FAYETTEVILLE in Autodesk AutoCAD version 2000. 2.2.1.2 Develop and include in Appendix A of this Agreement for approval by CITY OF FAYETTEVILLE, a project design schedule in which RJN GROUP, INC. shall include, in an acceptable level of detail, the steps and milestone dates to be undertaken by RJN• GROUP, INC. in the completion of this final design. This Schedule shall include reasonable allowances for review and approval times required by CITY OF FAYETTEVILLE, performance of services by CITY OF FAYETTEVILLE's consultants, and review and approval times required by public authorities having jurisdiction over the Project. This schedule shall be equitably adjusted as the Project progresses, allowing for changes in scope, character or size of the Project requested by CITY OF FAYETTEVILLE, or for delays or other causes beyond RJN GROUP, INC.'s Professional Services-Design-Final-May2003 A — 3 052703 reasonable control. Nonconformance with this schedule by RJN GROUP, INC. and its subconsultants may result in the assessment of damages payable by RJN GROUP, INC. to the CITY OF FAYETTEV ILLE for costs and damages incurred. The maximum cost liability of RJN GROUP, INC. shall be limited to the total gross amount payable to or through the Consultant authorized under this agreement, including amendments thereto. 2.2.1.2.1 The progress design schedule shall consist of a bar chart schedule depicting the duration of each sub -project and the discrete milestone activities which make up the sub -projects, but at a minimum shall include contract drawings, contract specifications, and design reviews as indicated in Section 2.2.10. Separate line items and durations may be shown for costs that apply to the Project as a whole, including, but not limited to, Project Management and Administration, Insurance, Value Engineering, surveys, subcontracted work, and property acquisition and casement documents. RJN GROUP, INC. shall assign to each schedule activity of the progress design schedule a corresponding cost value that shall include a monthly allocation for labor, expenses, overhead, and profit. The sum of all cost values assigned shall equal the Lump Sum Amount shown in Section 6.1.1. of this Agreement. 2.2.1.3 When requested by the CITY OF FAYETI'EVILLE's Water and Wastewater Director, prepare for and attend up to four City Council meetings to provide periodic updates on the progress of the final design. 2.2.1.4 If the plans and specifications for the project require bids on alternates in addition to a base bid, there shall be no more than three (3) alternates, and the alternates shall be developed and described in accordance with Title 22, Article 9-203 of the Arkansas Code. 2.2.1.5 To the extent practicable, evaluate the feasibility of sequencing and segmenting the Work into stand alone multiple construction or procurement packages which may yield immediate operating benefits to the CITY OF FAYETTEVILLE and give these first priority for completion. The separate design or procurement packages to be completed by RJN GROUP, INC. are listed below. 2.2.1.5.1 1. Old Wire Road to Gregg Avenue Lift Station (including Basin 5 Interceptor) 2.2.1.5.2 2. North Street Lift Station to Poplar Lift Station to Gregg Avenue Professional Services-Design-Final-May2003 A — 4 052703 • • 2.2.1.5.3 3. Gregg Avenue Lift Station to Hamestring Lift Station 2.2.1.5.4 4. Porter Road Lift Station to Hamestring Lift Station 2.2.1.5.5 5. Hamestring Lift Station to Proposed WWTP 2.2.1.5.6 6. Hamestring Lift Station 2.2.1.5.7 7. Gregg Avenue Lift Station Upgrade 2.2.1.5.8 8. Lift Station 11 to Lift Station 12 to WWTP and Farmington Lift Station (Optional) 2.2.2 Prepare technical criteria, written descriptions, design data, and applications necessary for filing applications for permits from or approvals of the following applicable governmental authorities having jurisdiction to review or approve the final design of the Project and assist in securing approvals. Approval letters and permits shall be furnished to the Arkansas Soil and Water Conservation Commission, including the written approvals from the Arkansas Department of Health and the Arkansas Division of Environmental Quality. Actual Filing and Permit Fees will be paid by the CITY OF FAYEfTEVILLE. Assist CITY OF FAYEITEVILLE in consultations with appropriate authorities. 2.2.2.1 Arkansas Soil and Water Conservation Commission (ASWCC) 2.2.2.2 Arkansas Department of Health (AHD) 2.2.2.3 Arkansas Department of Environmental Quality (ADEM) 2.2.2.4 U.S. Army Corps of Engineers (COE) 2.2.2.5 Fayetteville Planning Commission 2.2.2.6 Washington County Court 2.2.2.7 City of Farmington 2.2.2.8 Arkansas State Highway and Transportation Department 2.2.2.9 Railroad Authorities Professional Services-Design-Final-May2003 A — 5 052703 • • 2.2.3 Advise CITY OF FAYETTEVILLE of adjustments in excess of five percent of the cost opinion for the Project caused by changes in scope, design requirements, or construction costs and furnish a revised cost opinion for the Project based on the final Bid Documents. 2.2.4 Advise CITY OF FAYE 1 I hVILLE of final Opinion of Probable Project Costs, including, but not limited to, construction, inspection, testing, startup, O&M Manuals, and one-year performance evaluation. 2.2.5 Furnish CITY OF FAYETTEVILLE with 10 copies of the final Bid Documents. 2.2.6 Determine land and easement requirements and provide consultation and assistance on property procurement as related to professional engineering services being performed. 2.2.7 Provide appropriate professional interpretations of data, geotechnical investigations, core borings, probings and subsurface explorations, hydrographic surveys, laboratory tests, and inspections of samples, materials and equipment obtained through subcontract services for authorized Project services including property, boundary, easement, right-of-way, topographic, and utility surveys; noting zoning and deed restrictions. 2.2.7.1 Fully disclose all subcontract agreements including the name and address of the subconsultant, the scope of services to be provided and the value of the subcontract agreement. 2.2.7.2 Incorporate into all subcontract agreements for planning and design engineering services the applicable milestone dates from the Submittal Schedule contained in the Memorandum of Agreement, as amended, between ASWCC and the CITY OF FAYETTEVILLE and require all RJN GROUP, INC. subconsultants to be bound by the Submittal Schedule. RJN GROUP, INC. will provide a preliminary and final project performance work plan for submission to ASWCC. 2.2.8 Render monthly Work progress reports to CPI -Y OF FAYETTEVILLE and Program Manager and confirm status of compliance with final design schedule. 2.2.9 Provide to the Program Manager in a format mutually acceptable to the Program Manager and RJN GROUP, INC. such schedules, reports, opinions of probable costs, renderings, project summaries, and other data as may be required, for posting by others on a project web site to allow the public to monitor and review the activities, materials, and financial status of Professional Services-Design-Final-May2003 A - 6 052703 • • the project. Refresh the data supplied to the Program Manager no more frequently than monthly. 2.2.10 Design shall be reviewed by CITY OF FAYETTEVILLE, or such parties as CITY OF FAYETTEVILLE shall designate, at the applicable completion levels outlined below. 2.2.10.1 West Side Collection System Improvements — 30 percent and 90 percent. 2.2.10.2 East Side Collection System Improvements — 30 percent and 90 percent. 2.2.10.3 West Side WWTP: • Plant Access Road and Improvements — 30 percent and 90 percent. • Plant Effluent Line - 30 percent and 90 percent. • West Side Wastewater Treatment Plant — 30 percent, 60 percent, and 90 percent. 2.2.10.4 Paul Noland Facility: • Wet Weather Package — 30 percent and 90 percent. • Hcadworks Package — 30 percent, 60 percent, and 90 percent. • Solids I landling Package — 30 percent, 60 percent, and 90 percent. 2.2.1 I See Appendix A for additional services or clarification of services to be provided by RJN GROUP, INC. 2.3 Bidding Phase 2.3.1 RJN GROUP, INC. will follow Arkansas Soil and Water Conservation Commission statutory bidding protocol for State Revolving Loan Fund. 2.3.2 Arrange for bidding notices to be sent to contractors publishing services and direct mailing to contractors of record. Notices shall comply with requirements of CITY OF FAYETTEVILLE and Revolving Loan Fund (RLF) administered by the Arkansas Soil and Water Conservation Commission, Construction Assistance Division, and the Arkansas Development Financc Authority (ADFA). The legal notice to be placed in legal notices section of a local newspaper(s) of countywide and statewide circulation and shall be coordinated with CITY OF FAYETTEVILLE purchasing agent and an affidavit of publication secured. Professional Services-Design-Final-May2003 A — 7 052703 • • 2.3.3 Prepare addenda for drawings and Bid Documents as required and submit to Program Manager in timely manner such that addenda can be issued by RJN GROUP, INC. in accordance with Construction Contract General Conditions. All bidding protocols shall conform to ASWCC statutory requirements with all addenda being approved by ASWCC prior to issuance. 2.3.4 Secure updated state and federal wage rate decisions and incorporate into the Bid Documents. Update wage rate decision by addendum if necessary. 2.3.5 Assist CPIY OF FAYETI-EVILLE by issuing and tracking Bid Documents, addenda and communications during bidding and maintain list of plan holders. Print and distribute copies of plans and specifications for all prospective bidders and plan rooms. Collect from prospective bidders an appropriate non-refundable fee to offset cost of reproducing and distributing Bidding Documents. 2.3.5.1 RJN GROUP, INC. shall attend a Pre -Bid Conference organized, convened, and conducted by the Program Manager to explain the project requirements and receive questions from prospective bidders. RJN GROUP, INC. shall consider the questions received and issue necessary clarifications and changes to the Bid Documents through the use of addenda. Make logistical arrangements for and conduct a site tour of the project area 2.3.6 Assist CITY OF FAYETTEVILLE in obtaining and evaluating bids and preparing construction contracts. RJN GROUP, INC. shall prepare and submit bid certification documents to ASWCC for review. 2.3.7 Consult with and advise CITY OF FAYETTEV ILLE as to the acceptability of subcontractors and other persons and organizations proposed by the prime construction contractor(s), hereinafter called "Contractor(s)," for those portions of the work as to which such acceptability is required by the Bid Documents. 2.3.8 Make recommendations regarding award of construction contracts. 2.3.9 Attend Water and Sewer Committee meeting and the ensuing City Council meeting to recommend action by the respective bodies. Prepare and present a recommendation complete with such supporting information as necessary for the bodies to make an informed decision on the action recommended. Professional Services-Design-Final-May2003 A — 8 052703 • • 2.3.10 Develop and include in Appendix B of this Agreement, a bidding services schedule in which RJN GROUP, INC. shall include, in an acceptable level of detail, the steps and milestone dates to be undertaken by RJN GROUP, INC. in the completion of the bidding services. The bidding services schedule shall consist of a bar chart schedule depicting the duration of the bidding period of each sub -project and the discrete milestone activities which make up the sub -projects. Separate line items and durations may be shown for costs that apply to the Project as a whole, including, but not limited to, Project Management and Administration, and Insurance. RJN GROUP, INC. shall assign to each schedule activity of the bidding services schedule a corresponding cost value which shall include a monthly allocation for labor, expenses, overhead, and profit. The sum of all cost values assigned shall equal the Lump Sum Amount shown in Section 6.1.2. of this Agreement. 2.3.11 See Appendix B for additional services or clarification of services to be provided by RJN GROUP, INC. 2.4 Construction Phase 2.4.1 The scope of Construction Phase Services, if any, will be negotiated following completion of Design Phase Services. 2.5 Post -Construction Phase 2.5.1 The scope of Post -Construction Phase Services, if any, will be negotiated following completion of Design Phase Services. 2.6 Resident Services During Construction 2.6.1 The scope of Resident Services During Construction, if any, will be negotiated following completion of Design Phase Services. SECTION 3 - ADDITIONAL SERVICES OF 3.1 General If authorized in writing by the CITY OF FAYETTEV ILLE Mayor and the City Council and agreed to in writing by RJN GROUP, INC., RJN GROUP, INC. shall furnish or obtain from others Additional Services of the following types that are not considered normal or customary Basic Services. The scope of Additional Services may include: Professional Services-Design-Final-May2003 A — 9 052703 • • 3.1.1 Grant and Loan Assistance Prepare applications and supporting documents for govemmental grants, loans, or advances. 3.1.2 Financial Consultation Consult with CITY OF FAYETTEVILLE's fiscal agents and bond attorneys and provide such engineering data as required for any bond prospectus or other financing requirements. 3.1.3 Administrative Assistance Provide Contract and Project administration to the degree authorized by CTrY OF FAYETTEVILLE. 3.1.4 Furnishing renderings or models of the Project for CITY OF FAYETTEV ILLE's use. 3.1.5 Miscellaneous Studies Investigations involving detailed consideration of operations, maintenance, and overhead expenses, and the preparation of rate schedules, earnings, and expense statements; feasibility studies; appraisals and valuations; detailed quantity surveys of material, equipment, and labor, and audits or inventories required in connection with construction performed by CITY OF FAYETTEVILLE. 3.1.6 Preparing to serve or serving as a witness for CITY OF FAYETTEVILLE in any litigation or other proceeding involving the Project. 3.1.7 Extra Services 3.1.7.1 Services not specifically defined heretofore that may be authorized by CITY OF FAYETTEVILLE. 3.2 Contingent Additional Services 3.2.1 If services described under Contingent Additional Services in Paragraph 3.2 are required due to circumstances beyond RJN GROUP, INC.'s control, RJN GROUP, INC. shall notify CITY OF FAYETTEVILLE and request a formal contract amendment approved by the Mayor and the City Council prior to commencing such services. If CITY OF FAYETTEVILLE deems that such services described in 3.2 are not required, CITY OF FAYETTEVILLE shall give prompt written notice to RJN GROUP, INC. If CITY OF FAYETTEVILLE indicates in Professional Services-Design-Final-May2003 A - 10 052703 • • writing that all or parts of such Contingent Additional Services arc not required, RJN GROUP, INC. shall have no obligation to provide those services. 3.2.2 Making revisions in Drawings, Specifications, or other documents when such revisions are: 3.2.2.1 Required because of inconsistent approvals or instructions previously given by CITY OF FAYETTEVILLE, including revisions made necessary by adjustments in CfI'Y OF FAYETTEVILLE's program or Project Budget. 3.2.2.2 Required by the enactment or revision of codes, laws, or regulations subsequent to the preparation of such documents. SECTION 4 - RESPONSIBILITIES OF CITY OF FAYETTEVILLE CITY OF FAYETTEVILLE shall, within a reasonable time, so as not to delay the services of RJN GROUP, INC. 4.1 Provide full information as to CITY OF FAYETTEVILLE's requirements for the Project. 4.2 Assist RJN GROUP, INC. by placing at RJN GROUP, INC.'s disposal all available information pertinent to the assignment including previous reports and any other data relative thereto. 4.3 Guarantee access to and make all provisions for RJN GROUP, INC. to enter upon public and private property as required for RJN GROUP, INC. to perform his services under this Agreement. 4.4 Examine all studies, reports, sketches, cost opinions, Bid Documents, Drawings, proposals, and other documents presented by RJN GROUP, INC. and render in writing decisions pertaining thereto. 4.5 Provide such professional legal, accounting, financial, and insurance counseling services as may be required for the Project. 4.6 Designate in writing a person to act as CITY OF FAYETTEVILLE's representative with respect to the services to be performed under this Agreement. Such person shall have complete authority to transmit instructions, receive information, interpret and define CITY OF FAYETTEVILLE's policies and decisions with respect to materials, equipment, elements Professional Services-Design-Final-May2003 A — 1 I 052703 • • and systems to be used in the Project, and other matters pertinent to the services covered by this Agreement. 4.7 Give prompt written notice to RUN GROUP, INC. whenever Cr'Y OF FAYETTEVILLE observes or otherwise becomes aware of any defect in the Project. 4.8 Furnish approvals and permits from all governmental authorities having jurisdiction over the Project and such approvals and consents from others as may be necessary for completion of the Project. Pay directly to the governmental authorities the actual filing and permit fees. 4.9 Pay for placement of legal notices and advertisements in newspapers or other publications required by program requirements of the Wastewater System Improvement Project. 4.10 Furnish, or direct RUN GROUP, INC. to provide, necessary Additional Services as stipulated in Section 3 of this Agreement or other services as required 4.11 If CTTY OF FAYETTEVILLE's standard bidding requirements, Agreement forms and General Conditions are to be used, CITY OF FAYETTEVILLE shall provide copies of such documents for RJN GROUP, INC.'s use in coordinating the Contract Drawings and Specifications. 4.12 CITY OF FAYETTEVILLE and/or its representative will review all documents and provide written comments to RJN GROUP, INC. in a timely manner. SECTION 5 - PERIOD OF SERVICE 5.1 This Agreement will become effective upon the first written notice by CITY OF FAYETTEVILLE authorizing services hereunder. 5.2 The provisions of this Agreement have been agreed to in anticipation of the orderly progress of the Project through completion of the services stated in the Agreement. RJN GROUP, INC. will proceed with providing the authorized services immediately upon receipt of written authorization from CITY OF FAYETTEVILLE. Said authorization shall include the scope of the services authorized and the time in which the services are to be completed. Professional Services-Design-Final-May2003 A — 12 052703 • • SECTION 6 - PAYMENTS TO 6.1 Compensation 6.1.1 Final Design Phase Services For the Scope of Services during the Final Design Phase described herein, CITY OF FAYETTEVILLE shall pay RJN GROUP, INC. the lump sum amount of Two Million, Three Hundred Eighty -Three Thousand, Four llundred Sixty -Three United States Dollars (US 52,383,463.00). 6.1.1.1 Subject to the City Council approval, adjustment of the lump sum amount may be made should RJN GROUP, INC. establish and Cfl'Y OF FAYETTEVILLE agree that there has been or is to be a significant change in scope, complexity or character of the services to be performed; or if CITY OF FAYETTEVILLE decides to shorten the duration of work from the time period specified in the Agreement for completion of work and such modification warrants such adjustment. Changes, modifications or amendments in scope, price or fees to this Contract shall not be allowed without formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost, fees, or delivery schedule. 6.1.1.2 Monthly statements for each calendar month shall be submitted to CITY OF FAYETTEVILLE or such parties as CITY OF FAYETTEVILLE may designate for Design services consistent with RJN GROUP, INC.'s normal billing schedule. Once established, the billing schedule shall be maintained throughout the duration of the Project. Applications for payment shall be made in accordance with a format to be developed by RJN GROUP, INC. and approved by CITY OF FAYETTEVILLE. Applications for payment shall be accompanied each month by the updated project design schedule as the basis for determining the value earned as the work is accomplished. Final payment for Design services shall be made upon CITY OF FAYETTEVILLE's approval and acceptance with the satisfactory completion of the Design phase for the Project. 6.1.2 Bidding Phase Services For the Scope of Services during the Bidding Phase described herein, CITY OF FAYETTEVILLE shall pay RJN GROUP, INC. the lump sum amount of One Hundred Seventeen Thousand, Two Hundred Fifty - Five United States Dollars (US$ 1 17 255 00). Professional Services-Design-Final-May2003 A — 13 052703 • • 6.1.2.1 Subject to prior City Council approval, adjustment of the lump sum amount may be made should RJN GROUP, INC. establish and CITY OF FAYETTEVILLE agree that there has been or is to be a significant change in scope, complexity or character of the services to be performed; or if CITY OF FAYETTEVILLE decides to shorten the duration of work from the time period specified in the Agreement for completion of work and such modification warrants such adjustment. 6.1.2.2 Monthly statements for each calendar month shall be submitted to CITY OF FAYETTEVILLE or such parties as CITY OF FAYETTEVILLE may designate for Bidding Phase services consistent with RJN GROUP, INC.'s normal billing schedule. Once established, the billing schedule shall be maintained throughout the duration of the Project. Applications for payment shall be made in accordance with a format to be developed by RJN GROUP, INC. and approved by CITY OF FAYETTEVILLE. Applications for payment shall be accompanied each month by the updated bidding services schedule as the basis for determining the value earned as the work is accomplished. Final payment for Bidding Phase services shall be made upon CITY OF FAYETTEVILLE's approval and acceptance with the satisfactory completion of the Bidding Phase for the Project. 6.1.3 Construction Phase Services This section is reserved for future details concerning this phase, if any. This Agreement shall be amended to include payment conditions following the completion of Design Phase Services. 6.1.4 Post -Construction Phase Services This section is reserved for future details concerning this phase, if any. This Agiecment shall be amended to include payment conditions following the completion of Design Phase Services. 6.1.5 Resident Services During Construction This section is reserved for future details conceming this phase, if any. This Agreement shall be amended to include payment conditions following the completion of Design Phase Services. Professional Services-Design-Final-May2003 A — 14 052703 • • 6.1.6 Additional Services For authorized Additional engineering services under Section 3, "Additional Services", compensation to RJN GROUP, INC. shall be negotiated at the time Additional services are authorized. 6.2 Statements Statements and updated progress schedule for each calendar month will be submitted in electronic format simultaneously to CITY OF FAYETTEVILLE and Program Manager, followed by signed original document to CITY OF FAYETTEVILLE. Statements will be based on RJN GROUP, INC.'s estimated percent of services completed at the end of the preceding month, and Justified by the updated progress schedule. Program Manager shall review the statement and forward them to CITY OF FAYETTEVILLE with his recommendations. 6.3 Payments All statements are payable upon receipt and due within thirty (30) days. If a portion of RJN GROUP, INC.'s statement is disputed by CITY OF FAYETTEVILLE, the undisputed portion shall be paid by CITY OF FAYETTEVILLE by the due date. CITY OF FAYETTEVILLE shall advise RJN GROUP, INC. in writing of the basis for any disputed portion of any statement. CITY OF FAYETTEVILLE will make reasonable effort to pay invoices within 30 days of date the invoice is approved, however, payment within 30 days is not guaranteed. 6.4 Final Payment Upon satisfactory completion of the work performed under this Agreement, as a condition before final payment under this Agreement, or as a termination settlement under this Agreement, RJN GROUP, INC. shall execute and deliver to CITY OF FAYETTEVILLE a release of all claims against CITY OF FAYETTEVILLE arising under or by virtue of this Agreement, except claims which are specifically exempted by RJN GROUP, INC. to be set forth therein. Unless otherwise provided in this Agreement or by State law or otherwise expressly agreed to by the parties to this Agreement, final payment under this Agreement or settlement upon termination of this Agreement shall not constitute a waiver of CITY OF FAYETTEVILLE's claims against RJN GROUP, INC. or his sureties under this Agreement or applicable performance and payment bonds, if any. Professional Services-Design-Final-May2003 A — 15 052703 SECTION 7 - GENERAL CONSIDERATIONS 7.1 Insurance 7.1.1 During the course of performance of these services, RJN GROUP, INC. will maintain (in United States Dollars) the following minimum insurance coverages: Type of Coverage Workers' Compensation Employers' Liability Commercial General Liability Bodily Injury and Property Damage Automobile Liability: Bodily Injury and Property Damage Professional Liability Insurance Limits of Liability Statutory S500,000 Each Accident S1,000,000 Combined Single Limit $1,000,000 Combined Single Limit $1,000,000 Each Claim RJN GROUP, INC. will provide to CITY OF FAYETTEVILLE certificates as evidence of the specified insurance within ten days of the date of this Agreement and upon each renewal of coverage. 7.1.2 Construction Contractors shall be required to provide (or CITY OF FAYETTEVILLE may provide) Owner's Protective Liability Insurance naming CITY OF FAYETTEVILLE as a Named Insured and BURNS & McDONNELL and RJN GROUP, INC. as additional insureds, or, to endorse CPI' OF FAYETTEVILLE, BURNS & McDONNELL and RJN GROUP, INC. as additional insureds on construction Contractor's liability insurance policies covering claims for personal injuries and property damage. Construction Contractors shall be required to provide certificates evidencing such insurance to CITY OF FAYETTEVILLE, BURNS & McDONNELL and RJN GROUP, INC. All contract insurance carriers shall be required to list CITY OF FAYETTEVILLE, Arkansas Soil and Water Conservation Commission, and BURNS & McDONNELL as certificate holders, furnishing copies of the contractor's insurance certificate to each party 7.1.3 CITY OF FAYETTEVILLE, BURNS & McDONNELL and RJN GROUP, INC. waive all rights against each other and their officers, directors, agents, or employees for damage covered by property insurance during and atter the completion of RJN GROUP, INC.'s services. If the services result in a Construction Phase, a provision similar to this shall be Professional Serviccs-Design-Final-May2003 A - 16 052703 • • incorporated into all Construction Contracts entered into by CITY OF FAYETTEVILLE, and all construction Contractors shall be required to provide waivers of subrogation in favor of CITY OF FAYETTEVILLE, BURNS & McDONNELL and RJN GROUP, INC. for damage or liability covered by any construction Contractor's policy of insurance. 7.2 Professional Responsibility 7.2.1 RJN GROUP, INC. will exercise reasonable skill, care, and diligence in the performance of RJN GROUP, INC.'s services and will carry out its responsibilities in accordance with customarily accepted professional engineering practices. CITY OF FAYETTEVILLE will promptly report to RJN GROUP, INC. any defects or suspected defects in RJN GROUP, INC.'s services of which CITY OF FAYETTEVILLE becomes aware, so that RJN GROUP, INC. can take measures to minimize the consequences of such a defect. CITY OF FAYETTEVILLE and RJN GROUP, INC. further agree to impose a similar notification requirement on all construction contractors in the Bid Documents and shall require all subcontracts at any level to contain a like requirement. CITY OF FAYETTEVILLE, retains all remedies to recover for its damages caused by any negligence of RJN GROUP, INC. 7.2.2 In addition, RJN GROUP, INC. will be responsible to CITY OF FAYETTEVILLE for damages caused by its negligent conduct during its activities at the Project Site to the extent covered by RJN GROUP, INC.'s Commercial General Liability and Automobile Liability Insurance policies as specified in Paragraph 7.1.1. 7.3 Cost Opinions and Projections Cost opinions and projections prepared by RJN GROUP, INC. relating to construction costs and schedules, operation and maintenance costs, equipment characteristics and performance, and operating results are based on RJN GROUP, INC.'s experience, qualifications, and judgment as a design professional. Since RJN GROUP, INC. has no control over weather, cost and availability of labor material and equipment, labor productivity, construction Contractors' procedures and methods, unavoidable delays, construction Contractors' methods of determining prices, economic conditions, competitive bidding or market conditions, and other factors affecting such cost opinions or projections, RJN GROUP, INC. does not guarantee that actual rates, costs, performance, schedules, and related items will not vary from cost opinions and projections prepared by RJN GROUP, INC. Professional Services-Design-Final-May2003 A 17 052703 • • 7.4 Changes CITY OF FAYETTEVILLE shall have the right to make changes within the general scope of RJN GROUP, INC.'s services, with an appropriate change in compensation and schedule only after Fayetteville City Council approval of such proposed changes and, upon execution of a mutually acceptable amendment or change order signed by the Mayor of the CITY OF FAYETTEVILLE and the President or any Vice President of RJN GROUP, INC. 7.5 Termination 7.5.1 This Agreement may be terminated in whole or in part in writing by either party in the event of substantial failure by the other party to fulfill its obligations under this Agreement through no fault of the terminating party, provided that no termination may be effected unless the other party is given: 7.5.1.1 Not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, 7.5.1.2 An opportunity for consultation with the terminating party prior to termination. 7.5.2 This Agreement may be terminated in whole or in part in writing by CITY OF FAYETTEVILLE for its convenience, provided that RJN GROUP, INC. is given: 7.5.2.1 Not less than ten (10) calendar days written notice (delivered by certified mail, return receipt requested) of intent to terminate, 7.5.2.2 An opportunity for consultation with the terminating party prior to termination. 7.5.3 If termination for default is effected by CITY OF FAYETTEVILLE, an equitable adjustment in the price provided for in this Agreement shall be made, but 7.5.3.1 No amount shall be allowed for anticipated profit on unperformed services or other work, 7.5.3.2 Any payment due to RJN GROUP, INC. at the time of termination may be adjusted to cover any additional costs to CITY OF FAYETTEVILLE because of RJN GROUP, INC.'s default. Professional Services-Design-Final-May2003 A -- 18 052703 • • 7.5.4 If termination for default is effected by RJN GROUP, INC., or if termination for convenience is effected by CITY OF FAYETTEVILLE, the equitable adjustment shall include a reasonable profit for services or other work performed. The equitable adjustment for any termination shall provide for payment to RJN GROUP, INC. for services rendered and expenses incurred prior to the termination, in addition to termination settlement costs reasonably incurred by RJN GROUP, INC. relating to commitments which had become firm prior to the termination. 7.5.5 Upon receipt of a termination action under Paragraphs 7.5.1 or 7.5.2 above, RJN GROUP, INC. shall: 7.5.5.1 Promptly discontinue all affected work (unless the notice directs otherwise), 7.5.5.2 Deliver or otherwise make available to CITY OF FAYETTEVILLE all data, drawings, specifications, reports, estimates, summaries and such other information and materials as may have been accumulated by RJN GROUP, INC. in performing this Agreement, whether completed or in process. 7.5.6 Upon termination under Paragraphs 7.5.1 or 7.5.2 above CITY OF FAYETTEVILLE may take over the work and may award another party an agreement to complete the work under this Agreement. 7.5.7 If, after termination for failure of RJN GROUP, INC. to fulfill contractual obligations, it is determined that RJN GROUP, INC. had not failed to fulfill contractual obligations, the termination shall be deemed to have been for the convenience of CITY OF FAYEITEV ILLS. In such event, adjustments of the agreement price shall be made as provided in Paragraph 7.5.4 of this clause. 7.6 Delays In the event the services of RJN GROUP, INC. are suspended or delayed by CITY OF FAYETTEVILLE or by other events beyond RJN GROUP, INC.'s reasonable control, RJN GROUP, INC. shall be entitled to additional compensation and time for reasonable costs incurred by RJN GROUP, INC. in temporarily closing down or delaying the Project. Professional Services-Design-Final-May2003 A-19 052703