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HomeMy WebLinkAbout139-05 RESOLUTION• • RESOLUTION NO. 139-05 A RESOLUTION APPROVING A CONTRACT WITH McGOODWIN, WILLIAMS AND YATES, INC. IN THE AMOUNT OF $93,800.00 TO PROVIDE PROFESSIONAL ENGINEERING, SURVEYING, BIDDING AND CONSTRUCTION OBSERVATION SERVICES FOR THE 24" WATERLINE REPLACEMENT PROJECT. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of Fayetteville, Arkansas, hereby approves a Contract with McGoodwin, Williams and Yates, Inc. in the amount of $93,800.00 to provide Professional Engineering, Surveying, Bidding and Construction Observation Services for the 24" Waterline Replacement Project. A copy of the Contract, marked Exhibit "A" is attached hereto and made a part hereof. PASSED and APPROVED this 19(11 day of July, 2005. APPROVE O,c e.(" _oma 13 • - ;FAY ETT EVILLE •' %31,1411•2.0 ATTEST: %,»70N GO````, By: By: S NDRA SMITH, City Clerk AN COODY, Mayor • • AGREEMENT For PROFESSIONAL ENGINEERING SERVICES Between CITY OF FAYETTEVILLE, ARKANSAS And McGOODWIN, WILLIAMS AND YATES, INC. THIS AGREEMENT is made as of Jt t, l..4 1 q , 20 05, by and between City of Fayetteville, Arkansas, acting by and through its Mayor (hereinafter called CITY OF FAYETTEVILLE) and McGoodwin, Williams and Yates, Inc. with offices located in Fayetteville, Arkansas (hereinafter called MWY). CITY OF FAYETTEVILLE from time to time requires professional engineering services in connection with the planning, design, permitting, and construction of the City of Fayetteville Water and Sewer Improvements, and in particular the 24 -Inch Water Main Replacement at Custer and Momingside (the "Project"). Therefore, CITY OF FAYETTEVILLE and MWY in consideration of their mutual covenants agree as follows: MWY 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 MWY'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 are to be provided by MWY 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 MWY. 1.2 Assignments may include services described hereafter as Basic Services or as Additional Services of MWY. 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 Mayor and the City Council in advance of the change in scope, costs, fees, or delivery schedule. Fy-332 Prime Agreement: MWY — City of Fayetteville I of 26 24" Water Line Replacement 06/28/05 1 • • • SECTION 2 - BASIC SERVICES OF MWY 2.1 General • 2.1.1 Perform professional design services in connection with the Project as hereinafter stated, which shall include normal civil engineering services, sitework services, and support incidental thereto. 2.1.1.1 The Scope of Services to be furnished by MWY during the Study and 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 MWY during the Bidding Phase is included in Section 2.3 hereafter and in Appendix A attached hereto and made part of this Agreement. 2.1.1.3 The Scope of Services to be furnished by MWY during the Construction Phase is included in Section 2.4 hereafter and in Appendix A attached hereto and made part of this 2.1.2 Execution of this Agreement will authorize MWY to proceed with the services as described herein. 2.2 Design Services 2.2.1 MWY will perform engineering, surveying, and related services in order to incorporate into 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, are 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 the CITY OF FAYETTEVILLE's standard contract documents and shall incorporate CITY OF FAYETTEVILLE's standard general conditions and forms. Text documents shall be provided to CITY OF FAYETTEVILLE in Microsoft° Word version 97 software. Contract drawings shall be prepared using MWY standard borders, sheet sizes, title blocks and CADD standards. MWY may use their normal software Fy-332 Prime Agreement: MWY — City of Fayetteville 2 of 26 24" Water Line Replacement 06/28/05 • • for the preparation of drawings but the final product shall be provided to CITY OF FAYETTEVILLE in Autodesk AutoCAD version 2000, or later. 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 MWY shall include, in an acceptable level of detail, the steps and milestone dates to be undertaken by MWY 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 MWY's reasonable control. 2.2.1.2.1 The progress design schedule shall consist of a tabular list of milestones and calendar days for each phase of services. 2.2.1.3 When requested by the CITY OF FAYETTEVILLE's City Engineer, prepare for and attend up to two City Council meetings to provide periodic updates on the progress of the 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) altcmates, and the alternates shall be developed and described in accordance with Title 22, Article 9-203 of the Arkansas Code. 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. Actual Filing and Permit Fees will be paid by the CITY OF FAYETTEVILLE. Assist CITY OF FAYETTEVILLE in consultations with appropriate authorities: 2.2.2.1 Arkansas Department of Health (AHD) 2.2.2.2 Arkansas State Highway and Transportation Department 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. Fy-332 Prime Agreement: MWY — City of Fayetteville 3 of 26 24" Water Line Replacement 06/28/05 • • 2.2.4 Advise CITY OF FAYETTEVILLE of final Opinion of Probable Project Costs, including, but not limited to, construction, inspection, testing, and one-year performance evaluation. 2.2.5 Furnish CITY OF FAYETTEVILLE with five (5) copies of the final Bid Documents. 2.2.6 Detemiine land and casement requirements and provide consultation and assistance on property procurement as related to professional engineering services being performed. 2.2.7 Provide appropriatc 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 Schedule contained in Appendix A. 2.2.8 Design shall be reviewed by CITY OF FAYETTEVILLE, or such parties as CITY OF FAYETTEVILLE shall designate, at the applicable completion levels outlined in Appendix A. 2.3 Bidding Phase 2.3.1 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. 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. 2.3.2 Prepare addenda for drawings and Bid Documents as required and submit to CITY OF FAYETTEVILLE in timely manner such that addenda can be issued by MWY in accordance with Construction Contract General Conditions. 2.3.3 Secure updated state and federal wage rate decisions and incorporate into the Bid Documents. Update wage rate decision by addendum if necessary. Fy-332 Prime Agreement: MWY — City of Faycneville 4 of 26 24" Water Line Replacement 0628/05 • • 2.3.4 Assist CTTY OF FAYETTEVILLE 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. 2.3.4.1 MWY shall organize, attend, convene, and conduct a Pre -Bid Conference, if required by CITY OF FAYETTEVILLE, to explain the project requirements and receive questions from prospective bidders. MWY shall consider the questions received and issue necessary clarifications and changes to the Bid Documents through the use of addenda. 2.3.5 Assist CITY OF FAYETTEVILLE in obtaining and evaluating bids and preparing construction contracts. 2.3.6 Consult with and advise CITY OF FAYETTEVILLE 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. 2.3.7 Make recommendations regarding award of construction contracts. 2.3.8 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. 2.4 Construction Phase 2.4.1 General By performing these services, MWY shall not have authority or responsibility to supervise, direct, or control the Contractor's work or the Contractor's means, mcthods, technique, sequences, or procedures of construction. MWY shall not have authority or responsibility for safety precautions and programs incident to the Contractor's work or for any failure of the Contractors to comply with laws, regulations, rules, ordinances, codes, or orders applicable to the Contractor(s) furnishing and performing the work. Specific services to be performed by MWY are as follows: Fy-332 Prime Agreement: MWY — City of Fayetteville 5 of 26 24" Water Linc Replacement 06/28/05 • 2.4.2 Management MWY's management functions required to complete services to be provided under this Agreement shall include all project correspondence with the CrrY OF FAYETTEVILLE, consultation and coordination with the CITY OF FAYETTEVILLE, supervision and coordination of the services provided by MWY including scheduling and assignment of personnel, invoicing, and continuous monitoring of the progress of the services. 2.4.3 Office Support Services During Construction 2.4.3.1 Receive the Contractor's insurance certificates and forward to CITY OF FAYETTEVILLE for review and acceptance by the CITY OF FAYEFIEVILLE's legal counsel. 2.4.3.2 Review and comment to CITY OF FAYETTEVILLE on the Contractor's initial and updated construction schedule(s) if requested by CITY OF FAYETTEVILLE. MWY's review shall be for general conformity to the provisions of the Contract Documents, to determine if the Contractor's construction schedule and activity sequence include the completion dates, and construction sequencing for any special conditions. MWY's review shall not include an analysis of Contractor's approach, means and methods of construction for performing the work specified in the Contract Documents. 2.4.3.3 Review and comment to CITY OF FAYETTEVILLE on the Contractor's initial schedule of values and schedule of estimated monthly payments. 2.4.3.4 Review guarantees, bonds, and certificates of inspection, and tests and approvals which are to be assembled by the Contractor(s) in accordance with the construction Contract Documents, and transmit them to CITY OF FAYETTEVILLE. MWY's review is not a legal review to determine if the Contractor's guarantees and bonds comply with all applicable requirements of the Contract Documents. 2.4.3.5 Review drawings and other data submitted by the Contractor as required by the construction Contract Documents. MWY's review shall be for general conformity to the construction Contract Documents and shall not relieve the Contractor of any of his contractual responsibilities. Such reviews shall not extend to means, methods, techniques, sequences, or procedures of construction, or to safety precautions and programs incident hereto. 2.4.3.6 Interpret construction Contract Documents when requested. Fy-332 Prime Agreement: MWY — City of Fayetteville 6 of 26 24" Water Line Replacement 06/28/05 • • 2.4.3.7 Review Contractor's applications for payment and supporting data, determine the amounts owed to Contractor, and recommend to the CrrY OF FAYETTEVILLE, in writing, concurrence of all payments to Contractor in accordance with the Contract Documents. M WY's review shall be for the purpose of making a full independent mathematical check of the Contractor's payment request. 2.4.3.8 Prepare routine Change Orders as required and submit to CITY OF FAYETTEVILLE. Review CITY OF FAYETTEVILLE or Contractor documentation and prepare any additional documentation required to administer the processing of change order, including applications for extension of construction time. Provide opinion to the CITY OF FAYETTEVILLE of the performance by the parties thereto, and make recommendations to CITY OF FAYETTEVILLE on claims of CITY OF FAYETTEVILLE and Contractor(s) relating to the execution and progress of the Work and other matters and questions related thereto; but MWY shall not be liable for the results of any such interpretations, opinions, recommendations, or decisions rendered by MWY in good faith. If required, evaluate the cost and scheduling aspects of all change orders and, where necessary, negotiate with the Contractor to obtain a fair price for the work. Said negotiation shall be subject to the approval of CITY OF FAYETTEVILLE. Services related to unusually complex or unusually numerous claims are considered an Additional Service. 2.4.3.9 Provide monthly progress reports to CITY OF FAYETTEVILLE. 2.4.3.10 Review and make recommendations regarding "or equal" submittals in accordance with Construction Contract General Conditions. 2.4.3.11 Provide to the CITY OF FAYETTEVILLE, in a format acceptable to the CITY OF FAYETTEVILLE, such progress reports; pay applications; 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 the project. Update the data supplied to the CITY OF FAYETTEVILLE when requested. 2.4.4 Field Support Services During Construction 2.4.4.1 Conduct the preconstruction conference. MWY shall prepare an agenda for the conference, and prepare and distribute minutes. The preconstruction conference will include a discussion of the Contractor's tentative schedule, procedures for transmittal and review of the Contractor's submittals, processing payment applications, critical construction sequencing, change orders, record documents, and the Contractor's responsibilities for safety and first aid. Fy-332 Prime Agreement: MWY — City of Fayeneville 7 of 26 24" Water Line Replacement 06/28/05 • • 2.4.4.2 Conduct a monthly progress meeting with Contractor, if requested by CITY OF FAYETTEVILLE, and prepare and distribute minutes of the meeting. While on-sitc, observe progress of the work, and consult with CITY OF FAYETTEVILLE and the Contractor concerning problems and/or progress of the construction. 2.4.4.3 A professional engineer will make periodic site visits. These site visits will be at intervals appropriate to the stages of construction to consult with and advise the Resident Project Representative, observe the progress and quality of the executed Work, and to determine, in general, if the Project is proceeding in accordance with the Contract Documents. 2.4.4.4 Investigate any unforeseen subsurface conditions or unforeseen underground facilities that may be encountered in accordance with Construction Contract General Conditions. Submit written conclusions to CITY OF FAYEI'I'EVILLE. 2.4.4.5 Investigate claims of CITY OF FAYETTEVILLE and the Contractor relating to the acceptability of the work or the interpretation of the requirements of the construction Contract Documents. Submit written conclusions to CITY OF FAYETTEVILLE. 2.4.4.6 Conduct a Substantial Completion inspection of the construction work and prepare a punch -list of those items to be completed or corrected before final completion of the project. Submit written results of the inspection to CITY OF FAYETTEVILLE and the Contractor. 2.4.4.7 Conduct a final inspection to determine if the construction is completed. MWY shall submit written results to CITY OF FAYETTEVILLE and provide written recommendations concerning final payment to CITY OF FAYETTEVILLE, including a list of items, if any, to be completed prior to making such payment. SECTION 3 - ADDITIONAL SERVICES OF MWY 3.1 General 3.1.1 If authorizcd in writing by the CITY OF FAYETTEVILLE Mayor and the City Council and agreed to in writing by MWY, MWY shall furnish or obtain from others Additional Services of the following types that arc not considered normal or customary Basic Services. The scope of Additional Services may include: 3.1.1.1 In securing necessary interest in lands and rights-of-way, including property descriptions, performing boundary surveys, casement preparation, and assistance in negotiations. Fy-332 Prime Agreement: MWY — City of Fayetteville 8 of 26 24" Water Line Replacement 06/28/05 • • 3.1.2 Financial Consultation 3.1.2.1 Consult with CITY OF FAYE11EVILLE'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 3.1.3.1 Provide Contract and Project administration to the degree authorized by CITY OF FAYEITEV ILLE. 3.1.4 Furnishing renderings or models of the Project for CITY OF FAYEFIEVILLE's use. 3.1.5 Miscellaneous Studies 3.1.5.1 Investigations involving detailed consideration of operations, maintenance, and overhead expenses, and the preparation of rate schedules, camings, 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 MWY's control, MWY 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 arc not required, CITY OF FAYETTEVILLE shall give prompt written notice to MWY. If CITY OF FAYETTEVILLE indicates in writing that all or parts of such Contingent Additional Services are not required, MWY shall have no obligation to provide those services. Fy-332 Prime Agreement: MWY — City of Fayetteville 9 of 26 24" Water Line Replacement 06/28/05 • • 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 CITY 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 MWY: 4.1 Provide full information as to CITY OF FAYETTEVILLE's requirements for the Project. 4.2 Assist MWY by placing at MWY'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 MWY to enter upon public and private property as required for MWY to perform his services under this Agreement. 4.4 Examine all studies, rcpons, skctchcs, cost opinions, Bid Documents, Drawings, proposals, and other documents presented by MWY 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 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 MWY whenever CITY OF FAYETTEVILLE observes or otherwise becomes aware of any defect in the Project. Fy-332 Prime Agreement: MWY — City of Fayetteville 10 of 26 24" Water Line Replacement 06/28/05 • 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 MWY to provide, necessary Additional Services as stipulated in Section 3 of this Agreement or other services as required. 4.11 If CITY 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 MWY'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 commcnts to MWY 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. MWY 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. The project design time schedule is described in detail in Appendix A. SECTION 6 - PAYMENTS TO MWY 6.1 Compensation 6.1.1 Design Phase Services Fy-332 Prime Agreement: MWY — City of Fayetteville 11 of 26 24" Water Line Replacement 06/28/05 A. Preliminary Engineering Report (including Topographical Survey) For the Scope of Services during the Preliminary Engineering Report Phase described herein, CITY OF FAYETTEVILLE shall pay MWY the lump sum amount of Twenty Thousand Five Hundred United States Dollars (US $20,500.00). B. Design and Preparation of Construction Plans and Specifications For the Scope of Services during the Design Phase described herein for the design and preparation of construction plans and specifications, CITY OF FAYETTEVILLE shall pay MWY the lump sum amount of Twenty -Five Thousand Five Hundred United States Dollars (US $25,500.00). 6.1.1.1 Subject to the City Council approval, adjustment of the lump sum amount may be made should MWY 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. 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 scopc, cost, fces, 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 MWY'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 MWY and approved by CITY OF FAYETTEVILLE. Statements will be made on MWY's estimated percent completed at the end of the preceding month. 6.1.2 Bidding Phase Services For the Scope of Services during the Bidding Phase described herein, CITY OF FAYETTEVILLE shall pay MWY the lump sum amount of Seven Thousand Eight Hundred United States Dollars (US $7,800.00), payable in one installment, due upon receipt of bids Fy-332 Prime Agreement: MWY — City of Fayetteville 12 of 26 24" Water Linc Replacement 0628/05 • • 6.1.2.1 Subject to prior City Council approval, adjustment of the lump sum amount may be made should MWY 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 panics as CITY OF FAYETTEVILLE may designate for Bidding Phase services consistent with MWY'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 MWY and approved by CITY OF FAYETTEVILLE. 6.1.3 Construction Phase Services 6.1.3.1 For the Scope of Services during the Construction Phase described herein, CITY OF FAYETTEVILLE shall pay MWY the sum not to exceed Forty Thousand United States Dollars (US S40,000.00), unless amended in accordance with Paragraph 6.1.5. 6.1.4 The CITY OF FAYETTEVILLE agrees that MWY's not -to -exceed upper limit for this Agreement is based on the durations indicated in Appendix A, and if the construction period or operation period is extended that MWY shall be entitled to additional compensation. 6.1.4.1 Hourly billing rates plus reimbursable direct expenses shall be used as the basis for determining payment to MWY for the costs incurred by MWY while providing the services described in this Amendment No. 1. Costs include but not limited to the salaries and benefits paid to employees engaged directly in providing the services and profit. The current hourly billing rates arc included as Appendix B to this Amendment. Rates will be adjusted each January 1. 6.1.4.2 The following direct expenses arc considered reimbursable and are included in the not -to - exceed amount. 6.1.4.2.1 For outside expenses incurred by MWY, such as authorized travel and subsistence, commercial services, courier deliveries, and incidental expenses, the cost to MWY plus 5 percent. Fy-332 Prime Agreement: MWY — City of Fayetteville 13 of 26 24" Water Line Replacement 06/28/05 • • 6.1.4.2.2 Subcontract costs times 1.05. 6.1.4.3 The following direct expenses are also considered reimbursable and are not a part of the not - to -exceed amount. 6.1.4.3.1 Charges of special consultants requested by CITY OF FAYETTEVILLE. 6.1.4.3.2 Special insurance coserage required by CITY OF FAYETTEVILLE. 6.1.4.3.3 Local taxes or fees applicable to the engineering work or payments therefor. 6.1.4.3.4 Cost of acquiring any other materials or services specifically for and applicable to only this project. 6.1.4.4 It is understood and agreed that MWY shall keep records of costs and expenses on the basis of generally accepted accounting practice, and records shall be available for inspection at reasonable times. 6.1.5 Additional Services For authorized Additional engineering services under Section 3, "Additional Services," compensation to MWY 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 to CITY OF FAYETTEVILLE. Statements will be based on MWY's estimated percent of services completed at the end of the preceding month. 6.3 Payments All statements are payable upon receipt and due within thirty (30) days. If a portion of MWY'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 MWY 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. Fy-332 Prime Agreement: MWY — City of Fayetteville 14 of 26 24" Water Line Replacement 06/28/05 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, MWY 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 MWY 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 MWY or his sureties under this Agreement or applicable performance and payment bonds, if any. SECTION 7 - GENERAL CONSIDERATIONS 7.1 Insurance 7.1.1 During the course of performance of these services, MWY will maintain (in United States Dollars) the following minimum insurance coverages: Type of Coverage Limits of Liability Workers' Compensation Statutory Employers' Liability $500,000 Each Accident Commercial General Liability Bodily Injury and Property Damage Automobile Liability: Bodily Injury and Property Damage $1,000,000 Combined Single Limit S1,000,000 Combined Single Limit Professional Liability Insurance $1,000,000 Each Claim MWY 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 Owner's Protective Liability Insurance naming CITY OF FAYETTEVILLE as a Named Insured and MWY as additional insured, or, to endorse CITY OF FAYETTEVILLE and MWY 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 and MWY. All contract insurance carriers shall be Fy-332 Prime Agreement: MWY — City of Fayeneville 15 of 26 24" Water Line Replacement 06/28/05 required to list CITY OF FAYETTEVILLE and MWY as certificate holders, furnishing copies of the Contractor's insurance certificate to each party 7.1.3 CITY OF FAYETTEVILLE and MWY waive all rights against each other and their officers, directors, agents, or employees for damage covered by property insurance during and after the completion of MWY's services. If the services result in a Construction Phase, a provision similar to this shall be 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 and MWY for damage or liability covered by any construction Contractor's policy of insurance. 7.2 Professional Responsibility 7.2.1 MWY will exercise reasonable skill, cart, and diligence in the performance of MWY's services and will carry out its responsibilities in accordance with customarily accepted professional engineering practices. CITY OF FAYETTEVILLE will promptly report to MWY any defects or suspected defects in MWY's services of which CITY OF FAYETTEVILLE becomes aware, so that MWY can take measures to minimize the consequences of such a defect. CITY OF FAYETTEVILLE and MWY further agree to impost 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 rctains all remedies to recover for its damages caused by any negligence of MWY. 7.2.2 In addition MWY 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 MWY'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 MWY relating to construction costs and schedules, operation and maintenance costs, equipment characteristics and performance, and operating results are based on MWY's experience, qualifications, and judgment as a design professional. Since MWY 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 Fy-332 Prime Agreement: MWY — City of Fayetteville 16 of 26 24" Water Line Replacement 06/28/05 determining prices, economic conditions, competitive bidding or market conditions, and other factors affecting such cost opinions or projections, MWY does not guarantee that actual rates, costs, performance, schedules, and related items will not vary from cost opinions and projections prepared by MWY. 7.4 Changes CITY OF FAYETTEVILLE shall have the right to make changes within the general scope of MWY'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 MWY. 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 MWY 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. Fy-332 Prime Agreement: MWY — City of Fayetteville 17 of 26 24" Water Line Replacement 06/28/05 • 7.5.3.2 Any payment due to MWY at the time of termination may be adjusted to cover any additional costs to CITY OF FAYETTEVILLE because of MWY's default. 7.5.4 If termination for default is effected by MWY, 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 MWY for services rendered and expenses incurred prior to the termination, in addition to termination settlement costs reasonably incurrcd by MWY 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, MWY 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 MWY 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 MWY to fulfill contractual obligations, it is determined that MWY had not failed to fulfill contractual obligations, the termination shall be deemed to have been for the convenience of CITY OF FAYETTEVILLE. 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 MWY are suspended or delayed by CITY OF FAYETTEVILLE or by other events beyond MWY's reasonable control, MWY shall be entitled to additional compensation and time for reasonable costs incurred by MWY in temporarily closing down or delaying the Project. 7.7 Rights and Benefits MWY's services will be performed solely for the benefit of CITY OF FAYETTEVILLE and not for the benefit of any other persons or entities. Fy-332 Prime Agreement: MWY — City of Fayetteville 18 of 26 24" Water Line Replacement 06/28/05 • • 7.8 Dispute Resolution 7.8.1 Scope of Paragraph: The procedures of this Paragraph shall apply to any and all disputes between CITY OF FAYE1 I'EV H LE and MWY which arise from, or in any way are related to, this Agreement, including, but not limited to the interpretation of this Agreement, the enforcement of its terms, any acts, errors, or omissions of CITY OF FAYETTEVILLE or MWY in the performance of this Agreement, and disputes conceming payment. 7.8.2 Exhaustion of Remedies Required: No action may be filed unless the parties first negotiate. If timely Notice is given under Paragraph 7.8.3, but an action is initiated prior to exhaustion of these procedures, such action shall be stayed, upon application by either party to a court of proper jurisdiction, until the procedures in Paragraphs 7.8.3 and 7.8.4 have been complied with. 7.8.3 Notice of Dispute 7.8.3.1 For disputes arising prior to the making of final payment promptly after the occurrence of any incident, action, or failure to act upon which a claim is based, the party seeking relief shall serve the othcr party with a written Notice; 7.8.3.2 For disputes arising within one year after the making of final payment, CITY OF FAYETTEVILLE shall give MWY written Notice at the address listed in Paragraph 7.14 within thirty (30) days after occurrence of any incident, accident, or first observance of defect or damage. In both instances, the Notice shall specify the nature and amount of relief sought, the reason relief should be granted, and the appropriate portions of this Agreement that authorize the relief requested. 7.8.4 Negotiation: Within seven days of receipt of the Notice, the Project Managers for CITY OF FAYETTEVILLE and MWY shall confer in an effort to resolve the dispute. If the dispute cannot be resolved at that level, then, upon written request of either side, the matter shall be referred to the President of MWY and the Mayor of CITY OF FAYETTEVILLE or his designee. These officers shall meet at the Project Site or such other location as is agreed upon within 30 days of the written request to resolve the dispute. 7.9 CITY OF FAYETTEVILLE represents that it has sufficient funds or the means of obtaining funds to remit payment to MWY for services rendered by MWY. Fy-332 Prime Agreement: MWY — City of Fayetteville 19 of 26 24" Water Linc Replacement 06/28/05