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Home My WebLink About120-05 RESOLUTION• RESOLUTION NO. 120-05 • A RESOLUTION AUTHORIZING THE PAYMENT OF $300,000.00 TO OZARKS ELECTRIC COOPERATIVE CORP. FOR THE COST OF RELOCATING ELECTRICAL LINES ASSOCIATED WITH THE BROYLES ROAD IMPROVEMENTS AT THE WESTSIDE WASTEWATER TREATMENT PLANT. 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 authorizes the payment of $300,000.00 to Ozarks Electric Cooperative Corp. for the cost of relocating electrical lines associated with the Broyles Road Improvements at the Westside Wastewater Treatment Plant. PASSED and APPROVED this 21St day of June, 2005 ATTEST: By: ................ E :FAYETT EVILLE' 3 ?a %P\ KANSPJ• ''.,YGT0N. '0.`‘ L SONDRA SMITH,City Clerk APPRO By DAN COODY, Mayor dg/- 05 ye t t`lle / City Council Meeting of May 3, 2005 �atytr S CITY COUNCIL AGENDA MEMO &a.Cf i a ��aYt1it To: Mayor and City Council From: Bob Davis, P.E., Water & Wastewater Director Date: June 3, 2005 Subject: Approval of $300,000 for overhead electrical re -locate due to Broyles Road Improvements at the new Westside Wastewater Treatment Plant RECOMMENDATION : Staff recommends approval of purchase of these services as they are required to accommodate the present plans and specification for the Westside Wastewater Treatment Plant and Broyles Road Improvements. BACKGROUND: To accommodate moving Broyles Road at the Westside Treatment Plant, Ozark Electric is required to relocate overhead electric lines. Ozark Electric has estimated their cost for design, construction, inspection services, and contingencies to be $300,000 which will come from WSIP funds. DISCUSSION: In August, 2003 the City of Fayetteville received a cost estimate from Ozark Electnc for these services in the amount of $80,000-$120,000. After receiving the current proposal, staff questioned Ozark Electric about reasons for the cost increase. Ozark Electric's response is attached. Ozark Electric has shown interest in purchasing 5 acres of the Westside Wastewater Treatment Plant property and Staff is presently pursuing this potential and negotiating with Ozark Electric. Sale of this property would partially offset the cost of the re -locate services. Sale of the property is not part of this request. BUDGET IMPACT: Payment for these services will be from the 3/4 —cent sales tax bond election held on November 6, 2001 for the Wastewater System Improvements Project. The $300,000.00 requested for these services is 0.002% of the $125,000,000.00 budget allocated for the Wastewater System Improvements Project. • • RESOLUTION NO. A RESOLUTION AUTHORIZING THE PAYMENT OF $300,000.00 TO OZARKS ELECTRIC COOPERATIVE CORP. FOR THE COST OF RELOCATING ELECTRICAL LINES ASSOCIATED WITH THE BROYLES ROAD IMPROVEMENTS AT THE WESTSIDE WASTEWATER TREATMENT PLANT. 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 authorizes the payment of $300,000.00 to Ozarks Electric Cooperative Corp. for the cost of relocating electrical lines associated with the Broyles Ro;d Improvements at the Westside Wastewater Treatment Plant PASSED and APPROVED this 21st day of June, 2005 APPROVE*: • • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 Hello Bob, I received the information on our cost estimates from Allgeier, Martin & Associates. I apologize for it not being here in a more expeditious manner. AM&A prepared a budgetary estimate to move the 69kV line with underbuild along Broyles Road from Persimmon Street to the point in Section 14 where the line turns back to the west. We are looking at an approximate $300,000 for the transmission relocation costs on this project. The budgetary estimate prepared was based on general assumptions and not on a specific completed design. A more detailed estimate can be prepared once the design has been accomplished. The construction portion of the estimate was based on prices received from contractors for similar work. We have assumed that the line would be of wood -pole construction utilizing 795 MCM ACSR for the transmission conductor and one 3-phase, 4/0 ACSR underbuild, as included with the present design. An additional dead end structure and an alternate angle structure will most likely be required at Persimmon Street to accomplish the move and additional offset. As mentioned, the details of the design used for estimating purposes have been assumed and the estimate is not based on actual design of this line. The construction portion of the estimate further assumes that the work will be performed with the transmission line de -energized and that adequate space and easements exist such that there is room for all guys and anchors needed. The recent easement modifications that were processed by McGoodwin, Williams, and Yates may potentially require further minor modifications due to the additional dead-end structure. We will notify you of these changes should they become necessary. The engineering included in the estimate includes preparation of design calculation and documentation, survey of the line location, spotting of structures, placing stakes for construction and final review of the constructed product. It has further been assumed that the right-of-way in which the line is to be located will be clearly marked prior to survey for design. The estimate provided for this service assumes a construction period of 30 days, although this may vary. We have estimated the cost of design by our consultants (engineering costs) and construction for our budgetary purposes to be approximately $250,000. On site representative for the estimated construction period would be approximately $15,000. These prices do not include any contingencies or Ozark's Electric's costs. We have estimated our cost for crews and overhead to be approximately $35,000. • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 • r property acquisition as proposed above. The direction that we take in this matter will have an affect on many Ozarks improvement projects in the coming years, so we look forward to your response to this proposal. As soon as we receive your letter, we will proceed with the design work and will make every effort to meet the construction deadlines that we have discussed. Thank you for the use of the large photo/plans we used at our Board of Directors meeting. About returning it, would you like that dropped off at your office or would you like to pick it up? If you have any questions, please let me know. I can be reached at our office, by phone at (479) 684-4668, or by email at rerickson@ozarksecc.com. Regards, Robert Erickson GIS / Structural Engineer Ozarks Electric Cooperative Corp. • • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 May 25, 2005 Mr. Bob Davis, P.E. 113 W. Mountain Fayetteville, Arkansas 72701 RE: Transmission line relocation Fayetteville -Farmington 69kV Line Structure replacement for road move, sewer plant Work Order # 721889 Mr. Davis, This is in regard to the relocation of an existing transmission line at the request of the City of Fayetteville to facilitate the construction of the Sewer Plant off of Broyles Road. We have estimated the cost of design by our consultants (engineering costs) and construction for our budgetary purposes to be approximately $250,000. On site representative for the estimated construction period would be approximately $15,000. These prices do not include any contingencies or Ozark's Electric's costs. We have estimated our cost for crews and overhead to be approximately $35,000. The total will be $300,000.00. To expedite the process as you have requested and to proceed with the design work, ordering of materials, and construction we will need confirmation in writing of the intent of the City to seek Council approval and payment of the attached invoice prior to July 1, 2005. If I can be of any assistance, please let me know. Mr. Robert Erickson Ozarks Electric Cooperative Corp. P.O. Box 848 Fayetteville, AR 72702-0848 • • puree Ozarks Electric Cooperative Corp. Box 848 Fayetteville, Arkansas 72702-0848 (479) 521-2900 Mr. Brian Gartside McGoodwin, Williams & Yates 909 Rolling Hills Drive -Fayetteville, Arkansas 72703 Dear Mr. Gartside: 2UU'3 ;t reGoe.i\wtl. Wdtiatns and Yates We estimate that the cost of relocating the transmission line along Broyles Road will be between $80,000.00 and $120,000.00. Because of our day-to-day commitments, the move would have to be contracted out, and subject to the vagaries of bidding. Your cost would be the cost of the contract plus in-house engineering and administration costs. We will also need a dedicated easement of 50 feet adjacent to the road right-of-way along with certain guying easements where required. This easement would be available for use by other utilities if they were restricted to underground installations only. Because of the nature of the project, we will need a considerable lead time in order to design the line, advertise for bids, order material and award the contract The earliest notice of your intentions would be very helpful. Sincerely, James D. Crownover OFFICES IN: SPRINGDALE, AR STILWELL, OK WESTVILLE, OK • • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 6/3/2005 Hello Bob, You requested an explanation of why the cost estimate jumped from $80,000-$120,000 up to $300,000 and I would like to pass along my information to you. When Mr. James Crownover did his estimate he was relying on past construction costs for similar jobs. These jobs go back to the 80's. There was no design work done by him, only a cursory examination of the project. That entailed replacing the existing ten transmission structures (all with underbuild) and four distribution structures. With costs obviously going up over time, he added 10% to his cost estimate to cover this. He provided this information to you in 2003 based off of his experience from previous years. He wrote, in the estimate to Mr. Gartside, that your cost would include the cost of the contract plus in-house engineering and administration costs. Due to our almost unmanageable workload, we now require that relocation projects such as this be contracted to an outside engineering firm. The estimates from Allgeier, Martin & Associates, Inc. reflect some initial design work and note the different structures that may be required. The dead end structures are a substantial cost and two may be required. Subsequent work has been done on both the road and transmission line since Mr. Crownover gave you his estimate to accommodate subdivision development. This may necessitate the second dead end structure on the north end of the property not included in the 2003 estimate. Mr. Crownover originally considered performing the design work in house, which we can no longer do because of limited resources due to intense load growth in the area. I am certain that James provided estimates appropriate for conditions and scope of the project at that time. I can only say that the process we have recently used to provide these cost is in line with our Arkansas Public Service Commission tariff (EXT -PB -30 par 9). This document defines and governs how the Cooperative should equitably allocate the costs associated with line extensions and relocations. I looked at some of Jim's numbers and he thought the contract would be just under $90,000 and that our in-house work could get the price up to $120,000. Typically distribution relocations performed for the county or municipals do not reflect our total actual costs. I don't know that we have ever charged for overhead distribution lines being moved due to city or county road moves. We will usually upgrade our lines at these times and move on to other projects. This is not written policy, but a principle of cooperation we have tried to adhere to. This has certainly not been the case for transmission line relocations. They involve much more time to do the design engineering, the materials are much more expensive and the internal administration of the projects is complicated. We put forth every effort to assist the city when they are • • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 6/3/2005 improving their infrastructure, however the problem arises with regard to transmission lines in that they are critical to grid integrity, difficult to move and in many cases it is prohibitively expensive to do so. This is not a project where the cooperative can afford to absorb the relocation expense for a municipal's project. An example of how the cost has increased is evident in the price of conductor. Two years ago the price of the conductor was estimated at $900 per 1000 ft for 795, $200 per 1000 ft for high tension steel static wire, and $300 per 1000 ft for 4/0 ACSR. The recent estimate has the same material at $1200, $800, and $1200. This illustrates that conductor costs have risen 228% during the past two years. The cost for purchasing a wood structure and having it set has not changed much in the last two years, interestingly enough, but removing and disposing of the same structure and materials has doubled. The lead time on getting these tall poles has become longer with my last quote having them at 6.5 -17 weeks out. In particular, material (wood, steel and metals) cost and contract labor, especially on transmission work, has escalated at a staggering rate over the past two years. I estimate that material alone on this project could be $90,000. A good rule of thumb for a quick estimate on cost is to assume that the labor is approximately twice as much as material on a transmission job. That does not include design/engineering costs or the cooperative's costs for temporarily re-routing power in the region to accommodate construction, etc. This is a general overview of the costs: Retirement Labor $36,890 Construction Labor $108,753 Materials $73,318 Design / Engineering (consultant) $30,000 Onsite Representation (consultant) $15,000 Operational switching & load study $6,000 In-house project management $9,000 Administration $4,000 Drafting and mapping updates $5,000 5% project variance $12,000 Here is a breakdown of the estimated costs for removing the existing structures and replacing them with the same structure configuration as provided. Fayetteville Sewer Treatment Plant • • OZARKS ELECTRIC COOPERATIVE CORP BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 6/3/2005 Retirement Sec. No. UNIT NO. PRICE UNIT NO. UNITS UNIT LABOR UNIT MATERIAL UNIT TOTAL EXTENDED L&M PRICE 65' pole TP -69G TS -5G VC1-M GUY ANCHOR TM -9 VC9 TRANS CONDUCTOR DIST CONDUCTOR OHGW PROJECT TOTAL 12 600 10 300 1 1200 10 300 12 75 6 350 12 25 2 750 8.7 11.6 2.9 700 800 800 0 0 0 0 0 0 0 0 0 0 0 600 300 1200 300 75 350 25 750 700 800 800 7200 3000 1200 3000 900 2100 300 1500 6090 9280 2320 36890 Construction estimate by structure type Sec. No. UNIT NO. PRICE UNIT NO. UNITS UNIT LABOR UNIT MATERIAL UNIT TOTAL EXTENDED L&M PRICE Tangent Structure 65-1 ea 1 1000 1300 2300 2300 tp-693 ea 1 600 850 1450 1450 vc1-M ea 1 400 250 650 650 tm-9D ea 1 100 100 200 200 m2-12 ea 1 75 25 100 100 tm-101 ea 1 150 150 300 300 TMN ea 1 40 25 65 65 tangent total 2365 2700 5065 5065 RUNNING guyed ANGLE 70-1 ea 1 1500 1500 3000 3000 TS -4G EA 1 1750 1450 3200 3200 C4-1 EA 1 300 300 600 600 TG -21C EA 3 300 50 350 1050 TA -5L EA 3 750 200 950 2850 TMN ea 1 40 25 65 65 TM -9D(4) ea 1 500 100 600 600 M2 -2S EA 1 50 25 75 75 TG -1G EA 6 10 25 35 210 ANGLE TOTAL 7350 4300 8875 11650 CONDUCTOR • • OZARKS ELECTRIC COOPERATIVE CORP BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 6/3/2005 4/0 3/8 795 TOTAL COND /1000 FT /1000 FT /1000 FT 11.608 2.902 8.706 1200 800 1200 850 2050 290 1090 1600 2800 23796 3163 24377 51336 DISTRIBUTON TAPS C7A EA 1 400 450 850 850 TG -21C EA 3 300 50 350 1050 TA -5L EA 2 750 200 950 1900 TG -1G EA 3 10 25 35 105 TG -25C EA 3 100 70 170 510 DIST TAP TOTAL 1560 795 2355 4415 GUYED DEADEND TS -5G 1 5000 1800 6800 6800 70-1 1 1500 1500 3000 3000 TG -21C 12 300 50 350 4200 c7 -HB 2 400 450 850 1700 TA -5L 12 750 200 950 11400 TG -1G 24 10 25 35 840 TM9D(16) 1 1200 175 1375 1375 M2-12 EA 1 50 25 75 75 TM -101 1 150 150 300 300 TMN 1 40 25 65 65 GUYED DEADEND TOTAL 9400 4400 13800 29755 STUB TG -25D 4 100 140 240 960 TG -21C 12 300 50 350 4200 total 400 190 590 5160 PROJECT TOTALS QUAN each Total each Material UNIT TOTAL item Labor material Total TANGENT ANGLE COND TAPS GUYED DEADEND STUB PROJECT INSTALLED TOTALS 9 1 1 2 2 1 5,065 45,585 2365 21285 2700 24300 11,650 11,650 7350 7350 4300 4300 51,336 51 336 26698 26698.4 24638 24637.98 4,415 8,830 3130 6260 1285 2570 29755 59,510 21580 43160 8175 16350 5160 5,160 4000 4000 1160 1160 182,071 108753 40 73317 98 • • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 6/3/2005 REMOVALS 36890 PROJECT CONST. TOTAL 218,961 Estimate Total 220,000 TAPS ARE FOR CHANGING ALIGNMENTS AT SOUTH ENO. As can be seen from these figures, the cost for material and construction is substantial. This does not include the costs for design, surveying, and any other engineering services provided by the consultant designing the job. This also does not include the cost incurred by OECC for project administration, switching procedures, and overheads. As with all of our projects, it is imperative that our portion of this project be performed in a safe and expeditious manner and we will have a safety coordinator and engineering staff representing us on this project. I have been conservative in our cost estimates and feel they will make sure we don't run into any surprises. The actual costs will be itemized and this information will be provided to you. This estimate is likely on the conservative side and when this project is closed out in accounting the differential funds will be reimbursed to the City. In closing, I regret that the cost estimates that you received two years ago are substantially less than what you have recently received. However, I think that the above analysis of the project indicates that not only the scope of the project has changed but labor, material and engineering costs are drastically higher than two years ago. The concern about cost to the city was one of the driving factors on the proposed substation site purchase. We felt this would allow the City to offset some of the cost of this project and provide the plant with more reliable electric service in the future. This would also be a good site for a substation but it is not imperative that we locate one there. That pretty much covers the information I have used on the cost proposal. 1 hope that this better explains the variance from Mr. Crownover's 2003 letter. If I can be of any further assistance, do not hesitate to give me a call. Respectfully, Robert Erickson GIS/Structural Engineer 1 • • OZARKS ELECTRIC COOPERATIVE CORP BOX 848 FAYEIIEVILLE, ARKANSAS 72702-0848 6/3/2005 Ozarks Electric Cooperative Corp. (479) 684-4668 rerickson@ozarksecc.com Bob Davis Submitted By • City of Fayetteville Staff Revjpw Forip City Council Agenda Items or Contracts 21 -Jun -05 City Council Meeting Date Water & Wastewater Division Action Required: • Director Department To accommodate moving Broyles Road at the Westside Treatment Plant, Ozark Electric is required to relocate overhead electric lines Ozark Electric has estimated their cost for design, construction, inspection services, and contingencies to be $300,000 which will come from WSIP funds. 4 3001000,00 Cost of this request 4480.9480.5315.00 Account Number 2133.0304 Project Number Budgeted Item x $113,011,587.00 Category/Project Budget $22,938,815.29 Funds Used to Date 90,072,771.71 Remaining Balance Budget Adjustment Attached Wastewater System Improvements Project/Westside Plant J Program Category / Project Name Wastewater System Improvements Program / Project Category Name Wastewater System Improvements Project Fund Fund Name Department Director Previous Ordinance or Resolution # N/A Date Original Contract Date: N/A —ijet- Was City Attorney Finance and Internal Service Director ayor Date Date Original Contract Number: N/A Received in City Clerk's Office Received in Mayor's Office Comments: Clarice Pearman - Res. 120-05 r Page 1 From: Clarice Pearman To: Davis, Bob Date: 6/24/05 11:27AM Subject: Res. 120-05 Bob, Attached is a copy of the resolution passed by the City Counci, June 21, 2005 authorizing payment for utility relocation to Ozarks Electric. Thanks. Clarice CC: Deaton, Vicki • • OZARKS ELECTRIC COOPERATIVE CORP. BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 Therefore, the total estimated cost is $300,000.00. With the Toad being added to our system by your new facilities and other growth in the immediate area, we expect substation capacity to become an issue in several years. There is not enough space at our existing site to add another transformer to accommodate the added load we expect in the future. Knowing this, we have started looking for a location for an additional substation. The buffer area we discussed near the sewer plant appears to be a suitable location for our future needs. I have approval from our Board of Directors to acquire up to five acres based on the $25K per acre that we discussed. Obviously this substation sighting will be of long term operational benefit to the sewer treatment plant in years to come. The area we would like to acquire is on the West side of the property with access to and is contiguous with the road and our existing transmission line easement (see following drawing). OZARKS ELECTRIC COOPERATIVE CORP BOX 848 FAYETTEVILLE, ARKANSAS 72702-0848 This amount of property would be adequate to allow us to operate our facility and provide enough space for a suitable buffer of trees between us and the road. The construction would be similar to our Fayetteville West station on HWY 16. Above is our Fayetteville West station which shows typical construction. If this purchase could be used to offset the cost of the project, I would be very open to proceeding in this direction. To expedite the process as you have requested and to proceed with the design work, ordering of materials, and construction we will need confirmation in writing of the intent of the City to seek Council approval and payment of the attached invoice prior to July 1, 2005. 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