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Home My WebLink About150-05 RESOLUTION• RESOLUTION NO. 150-05 A RESOLUTION APPROVING A CHANGE ORDER TO THE CONTRACT WITH KING ELECTRICAL CONTRACTORS, INC. IN THE AMOUNT OF $60,000.00 FOR ELECTRICAL UTILITY RELOCATION ASSOCIATED WITH THE MOUNTAIN INN PROJECT; AND ACCEPTING THE PROMISE OF EAST SQUARE DEVELOPMENT COMPANY, LLC TO REIMBURSE THE CITY OF FAYETTEVILLE IN AN AMOUNT NOT TO EXCEED $60,000.00. 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 Change Order to the contract with King Electrical Contractors, Inc. in the amount of $60,000.00 for electrical utility relocation associated with the Mountain Inn Project. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby accepts and relies upon the promise of East Square Development Company, LLC to reimburse the City of Fayetteville in an amount not to exceed $60,000.00. PASSED and APPROVED this 2nd day of August 2005. ATTEST: . S •tV••c�a E :FAYETTEVILLE: ;GTON G3%•`‘ aauuuua. By:/Z JOVlo1.aJ y -Ev SONDRA SMITH, City Clerk APPROVE By fait A DAN COODY, Mayor • • CHANGE ORDER CITY OF FAYETTEVILLE PROJECT: Mountain Inn Utility Reroute CONTRACTOR: Austin King, Inc. 2145 West Moore Lane Fayetteville, Arkansas 72704 CHANGE ORDER NUMBER: 1 DATE• August 1, 2005 CHANGE ORDER AMOUNT: not to exceed $60,000.00 Signatures: Contractor: Austin King, Inc. 2145 West Moore Lane Fayetteville, Arkansas 72704 Date: City of Fayetteville 113 West Mountain Str Fayetteville, Arkansas Date • • • EAST SQUARE DEVELOPMENT COMPANY, LLC 11 N. WEST AVENUE FAYETTEVILLE, AR 72701 (479) 521-9188 July 12, 2005 To Whom It May Concern. In order to facilitate the continuing progress of the Mountain Inn Project, the undersigned agree to pay up to $60,000 for electrical utility relocation above and beyond the $877,000 previously earmarked for demolition and utility relocation. Said money to be paid by increasing the purchase price of the Mountain Inn property. Sinc Ric'' d P. Alexan... Member FAYETTEVItLE THE CITY OF FAYETTEVILLE. ARKANSAS DEPARTMENTAL CORRESPONDENCE • i -r0 iso /4 64 eines I MEMORANDUM TO: The Fayetteville City Council THROUGH: Mayor Dan Coody FROM: Stephen Davis, Finance and Internal Services Directo,_ Coy Hurd, Project Manager DATE: July 14, 2005 RE: Electrical Relocation at the Mountain Inn site Recommendation Staff recommends that City Council approve a S60,000 Change Order to King Electrical Contractors for the Mountain Inn Project. It is imperative to the success of the project that the electrical relocation work continues to progress. We recommend that the City accept the Developers' proposal for rcimbursement. Discussion On Junc 21, 2005, the Fayetteville City Council agreed to the action of increasing the amount of work that King Electrical Contractors could be authorized to do regarding the relocation of the electrical lines allowing the demolition of the Mountain Inn and adjacent buildings. King's ceiling (according to his existing on-call contract with the City) is S20,000 per project. This action by the City Council allowed the electrical relocation work to move forward by expanding the ceiling to $100,000 for the Mountain Inn Project only. This limitation was communicated to Chris King (of King Electrical Contractors) on Junc 22. On July 8, a telephone call was placed to Chris King to discuss several matters relative to the project. He had just been in contact with his subcontractor, Fayette Tree and Trench, who is trenching at the site to allow for installation of underground conduit. As reported to the City Council on July 12, Mr. King related that the cost of the trenching had exceeded expectations due to the complications uncovered once actual trenching had started. He related that the cost of all electrical relocation work to date was $104,540, and was now expected to rise to near $ 160,000. Mr. King was instructed to prepare to stop work on the site, as his $100,000 ceiling had been exceeded. • • Memo of 7/14, page two This is a critical juncture for the project. If progress on the demolition is to be maintained, the electrical transclosurc must be moved out of the way. Funds arc available to pay this cost and reside in the project's contingency fund. The constraint that must be accommodated is the $100,000 cap set on King Electrical Contractors' work. This cost information was communicated to the Developers, and they have requested that City continue this phase of the work uninterrupted. The Developers have agreed to increase the purchase price of the land to reimburse for all electrical relocation costs above the amount of $100,000 already authorized. This commitment was communicated verbally by Mr. Richard Alexander to Stephen Davis (on July 11, 2005). Written confirmation of this commitment has been attached to this memorandum. If the funds presently residing in the contingency are not fully utilized for other unforeseen items, they would be used toward paying these costs in lieu of the Developers having to pay. • • RESOLUTION NO. A RESOLUTION APPROVING A CHANGE ORDER TO THE CONTRACT WITH KING ELECTRICAL CONTRACTORS, INC. IN THE AMOUNT OF $60,000.00 FOR ELECTRICAL UTILITY RELOCATION ASSOCIATED WITH THE MOUNTAIN INN PROJECT; AND ACCEPTING THE PROMISE OF EAST SQUARE DEVELOPMENT COMPANY, LLC TO REIMBURSE THE CITY OF FAYETTEVILLE IN AN AMOUNT NOT TO EXCEED $60,000.00. 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 Change Order to the contract with King Electrical Contractors, Inc. in the amount of $60,000.00 for electrical utility relocation associated with the Mountain Inn Project. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby accepts and relies upon the promise of East Square Developme t Company, LLC to reimburse the City of Fayetteville in an amount no -Coe,d $60,000.00. PASSED and APPROVED this 2nd day of Augti-st 005. I APPROVED:.- 1 lL DANT 9DY, Mavor • • CHANGE ORDER CITY OF FAYETTEVILLE PROJECT: Mountain Inn Utility Reroute CONTRACTOR: Austin King, Inc. 2145 West Moore Lane Fayetteville, Arkansas 72704 CHANGE ORDER NUMBER: 1 DATE: August 1, 2005 CHANGE ORDER AMOUNT: not to exceed 560,000.00 Signatures: Contractor: Austin King, Inc. 2145 West Moore Lane Fayetteville, Arkansas 72704 Date: City of Fayetteville 113 West Mountain Street Fayetteville, Arkansas 72701 Date Coy Hurd Submitted By • City of Fayetteville • Staff Review Form z -roc. -05 21 L 5 - City Council Meeting Date Building Services Division Action Required: Financial and Internal Services Department The required action is a resolution to designate $60,000 toward the permanent utility placement work associated with the construction of the new hotel to occupy the existing Mountain Inn site, and permission to exceed the $100,000 limit on King Electric's contract for this project. Further action required is to accept the Developers' proposal for reimbursement to the City. Developer pay ($60,000) Expense $60,000 Cost of this request 4490 9490 5315.00 Account Number 05038.2 Project Number Budgeted Item XX 887,000.00 Cat epory/Project Budget $887,000.00 Funds Used to Date 0 Remaining Balance Budget Adjustment Attached Hwy 71 East Square Redevelopment District #1 Program Category / Project Name Other Improvements Program / Project Category Name TIF Capital Improvement Fund Fund Name partrient Director Previous Ordinance or Resolution # 9716 Date Original Contract Date: Original Contract Number. c 9 (' r/,r//, City Attomey 1 inane= and Internal Service Director Mayor 0 L Date 7/Lck Date Comments: Clarice Pearman -King Electrical __ .. �� • _. Page 1 From: Clarice Pearman To: Hurd, Coy Subject: King Electrical Coy, The City Council passed a resolution approving a change order for King Electric for the Mountain Inn Project. I do not have a signed change order to attach to the resolution. Please get me a signed change order to continue the processing of this resolution. Thanks. Clarice Clarice Pearrnan - Res. 150105 - From: Clarice Pearman To: Hurd, Coy Subject: Res. 150-05 Coy, Attached is a copy of the resolution passed by City Council August 2. 2005. Thanks. Clarice