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192-06 RESOLUTION
RESOLUTION NO. 192-06 A RESOLUTION APPROVING A CONTRACT WITH ALPHA UTILITIES, INC. IN THE AMOUNT OF $1,185,000.00 FOR IMPROVEMENTS TO THE 36" AND 42" WATER TRANSMISSION MAINS FROM BEAVER WATER DISTRICT TO THE CITY OF FAYETTEVILLE; APPROVING A FOUR PERCENT (4%) CONTINGENCY IN THE AMOUNT OF $47,000.00; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $734,677.00. 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 contract with Alpha Utilities, Inc. in the amount of $1,185,000.00 for improvements to the 36" and 42" water transmission mains from Beaver Water District to the City of Fayetteville. Section 2. That the City Council of the City of Fayetteville, Arkansas, hereby approves a four percent (4%) contingency in the amount of $47,000.00. Section 3. That the City Council of the City of Fayetteville, Arkansas, hereby approves a Budget Adjustment in the amount of $734,677.00. PASSED and APPROVED this 215` day of November, 2006. APPROVED: By: ATTEST: 0 S 1-1‘5:•°6-1YP11 20: 13= I' :FAYETTEVILLE: -fz°. i: ys°9RKANSP•Jp By:/tt-utt DAN COODY, Mayor � SONDRA SMITH, City Clerk Section 00500 AGREEMENT THIS AGREEMENT is by and between the City of Fayetteville (herein called City of Fayetteville) and Alpha Utilities, Inc. (herein called Alpha Utilities) City of Fayetteville and Alpha Utilities, in consideration of the mutual covenants herein set forth, agree as follows: ARTICLE 1 — WORK. 1.01 Alpha Utilities shall complete all Work as specified or indicated in the Contract Documents based on the acceptance by City of Fayetteville of Alpha Utilities's Bid. The Work is generally described as follows: The Work covered by this Contract will consist of the installation of facilities to provide the City the capability to detect and isolate major breaks in the 36 inch pipeline between Joyce Road and Mission Boulevard. This construction includes the installation of concrete vaults, pressure sustaining valves, electric actuators on existing 36 inch butterfly valves, a flowmeter, and associated electrical and instrumentation devices at five locations along the existing 36 and 42 inch transmission mains from Beaver Water District. ARTICLE 2 — ENGINEER. 2.01. The Project has been designed by Black & Veatch Corporation, 8400 Ward Parkway, mailing address P.O. Box 8405, Kansas City, Missouri 64114, who is referred to in the Contract Documents as Black & Veatch. Black & Veatch, and its duly authorized agents, are to act as City of Fayetteville's representatives, assume all duties and responsibilities, and have the rights and authonty assigned to Black & Veatch in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -1- (PN 140760) 11/16/06 ARTICLE 3 — CONTRACT TIMES, LIQUIDATED DAMAGES, DELAYS AND DAMAGES, DELAY COMPENSATION. 3.01. Time of the Essence. A. All time limits for Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 3.02. Contract Times. A. The Contract Times shall be as indicated in the Alpha Utilities's Bid. The Work shall be substantially completed within the number of days indicated In the Alpha Utilities's Bid after the date when the Contract Times commence to run as provided in Paragraph 2.03 of the General Conditions, and completed and ready for final payment in accordance with Paragraph 14.07.B of the General Conditions within the number of days indicated in the Alpha Utilities's Bid after the date when the Contract Times commence to run. B. Alpha Utilities shall.only be allowed to work on the transmission mains from October 1 through May 1. . 3.03. Liquidated Damages. A. City of Fayetteville and Alpha Utilities recognize that time is of the essence of this Agreement and that City of Fayetteville will suffer financial loss if the Work is not completed within the times specified in Paragraph 3.02 above, plus any extensions thereof allowed in accordance with Article 12 of the General Conditions. The parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by City of Fayetteville if the Work is not completed on time Accordingly, instead of requiring any such proof, City of Fayetteville and Alpha Utilities agree that as liquidated damages for delay (but not as a penalty) Alpha Utilities shall pay City of Fayetteville $1,000.00 for each day that expires after the time specified in Paragraph 3.02 for Substantial Completion until the Work is substantially completed. After Substantial Completion, if Alpha Utilities shall neglect, refuse, or fail to complete the remaining Work within the Contract Times or any proper extension thereof granted by City of Fayetteville, Alpha Utilities shall pay City of Fayetteville $500.00 for each day that expires after the time specified in Paragraph 3.02 for completion and readiness for final payment until the Work is completed and ready for final payment. B. The liquidated damages set forth herein shall not be accumulative. If Substantial Completion of the Work is not met within the time specified for final completion of all Work, the liquidated damages shall continue to be at the rate or rates specified for default on Substantial Completion until Substantial Completion (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -2- (PN 140760) 11/16/06 is attained. If the Work is not then finally completed, the rate or rates specified for default on final completion shall apply until final completion is attained. C. City of Fayetteville shall have the right to deduct the liquidated damages from any money in its hands, otherwise due, or to become due, to Alpha Utilities, or to initiate applicable dispute resolution procedures and to recover liquidated damages for nonperformance of this Contract within the time stipulated. 3.04. Delays and Damages. A. In the event Alpha Utilities is delayed in the prosecution and completion of the Work because of any delays caused by City of Fayetteville or Black & Veatch and, except as set forth in Paragraph 4.01 of the General Conditions, Alpha Utilities shall have no claim against City of Fayetteville or Black & Veatch for damages or contract adjustment other than an extension of the Contract Times and the waiving of liquidated damages during the period occasioned by the delay. ARTICLE 4 — CONTRACT PRICE. 4.01. City of Fayetteville shall pay Alpha Utilities in current funds, for completion of the Work designated in Article 1 in accordance with the Contract Documents, a Lump Sum amount of: One Million One Hundred Eighty -Five Thousand Dollars and ($ 1.185.000 ) no cents. (words) (figures) as indicated in Alpha Utilities's Bid. ARTICLE 5 — PAYMENT PROCEDURES. 5.01. Submittal and Processing of Payments. A. Alpha Utilities shall submit Applications for Payment in accordance with Article 14 of the General Conditions. Applications for Payment will be processed by Black & Veatch as provided in the General Conditions. 5.02. Progress Payments; Retainage. A. City of Fayetteville shall make progress payments on account of the Contract Pnce on the basis of Alpha Utilities's Applications for Payment as recommended by Black & Veatch, on or about the 30th day of each month during performance of the Work. All progress payments will be on the basis of the progress of the Work measured by the schedule of values established in Paragraph 2.074 of the General Conditions (and in the case of Unit Price Work (FAYETTEVILLE, AR) 00500 11/16/06 (TRANSMISSION MAIN MODIFICATIONS) -3- (PN 140760) based on the number of units completed) or, in the event there is no schedule of values, as provided in Division 1, General Requirements. B. Prior to Substantial Completion, City of Fayetteville will retain from progress payments, less the aggregate of payments previously made and less such amounts as Black & Veatch shall determine or City of Fayetteville may withhold in accordance with Paragraph 14.02.8.5 of the General Conditions, an amount equal to the following percentages: 1. Until the Work is 50 percent completed, retainage will be 10 percent of Work completed. 2. If the Work is 50 percent completed as determined by Black & Veatch, and if the character and progress of the Work are satisfactory to City of Fayetteville and Black & Veatch, City of Fayetteville, on recommendation of Black & Veatch, may determine that as long as the character and progress of the Work remain satisfactory to them, there will be no additional retainage on account of Work subsequently completed. C. Upon Substantial Completion, City of Fayetteville may release a portion of the retainage to Alpha Utilities, retaining at all times an amount sufficient to cover the cost of the Work remaining to be completed. D. The reduction or termination of additional retainage will not be initiated at any time if the Work is behind schedule; and, subsequent to reducing retainage, the full retainage of payments authorized may be reinstated any time the Work falls behind schedule. E Consent of the Surety shall be obtained before any retainage is paid by City of Fayetteville. Consent of the Surety, signed by an agent, must be accompanied by a certified copy of such agent's authority to act for the Surety. 5.03. Final Payment. A. Upon completion and acceptance of the Work in accordance with Paragraph 14.07.A of the General Conditions, City of Fayetteville shall pay the remainder of the Contract Price as recommended by Black & Veatch as provided in Paragraph 14.07.B. ARTICLE 6 — CONTRACTOR'S REPRESENTATIONS. 6.01. In order to induce City of Fayetteville to enter into this Agreement, Alpha Utilities makes the following representations: (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -4- (PN 140760) 11/16/06 A. Alpha Utilities has examined and carefully studied the Contract Documents and the other related data identified in the Bidding Documents. B. Alpha Utilities has visited the Sites and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Alpha Utilities is familiar with and is satisfied as to all Federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Alpha Utilities has studied all reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the Supplementary Conditions as provided in Paragraph 4.02 of the General Conditions and reports and drawings of a Hazardous Environmental Condition, if any, at the Site which has been identified in the Supplementary Conditions as provided in Paragraph 4.06 of the General Conditions. E Alpha Utilities has obtained and carefully studied (or assumes responsibility for having done so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and Underground Facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Alpha Utilities, including application of the specific means, methods, techniques, sequences, and procedures of construction, if any, expressly required by the Contract Documents to be employed by Alpha Utilities, and safety precautions and programs incident thereto. F. Alpha Utilities does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Alpha Utilities is aware of the general nature of work to be performed by City of Fayetteville and others at the Site that relates to the Work as indicated in the Contract Documents. H. Alpha Utilities has correlated the information known to Alpha Utilities, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Drawings, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -5- (PN 140760) 11/16/06 I. Alpha Utilities has given Black & Veatch written notice of all conflicts, errors, ambiguities, or discrepancies that Alpha Utilities has discovered in the Contract Documents, and the written resolution thereof by Black & Veatch is acceptable to Alpha Utilities. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. ARTICLE 7 — CONTRACT DOCUMENTS. A. The Contract Documents which comprise the entire agreement between City of Fayetteville and Alpha Utilities conceming the Work consist of the following: 1. This Agreement. 2. Performance and Payment Bonds. 3. General Conditions. 4. Supplementary Conditions. 5. Specifications. 6. List of Subcontractors 7. Drawings consisting of 17 sheets, with each sheet bearing the following general title: 36 -inch and 42 -inch Existing Transmission Main Pipeline Modifications Sheet titles are listed on the cover sheet. 8. Addenda 1 through 2. 9. Exhibits to this Agreement, enumerated as follows: a. Alpha Utilities's Bid. b. Notice to Proceed. c. Documentation submitted by Alpha Utilities prior to Notice (FAYETTEVILLE, AR),00500 (TRANSMISSION MAIN ODIFICATIONS) -6- (PN 140760) 11/16/06 r of Award, marked Exhibit A. 10. Instrumentation Questionnaire. 11. City of Fayetteville's Forms as listed in the Table of Contents. 12. The following, which may be delivered or issued after the Effective Date of the Agreement and are not attached hereto: a. Written Amendments. b. Work Change Directives. c. Change Orders B. There are no Contract Documents other than those listed in this Article. C. The Contract Documents may be amended, modified, or supplemented only as provided in Paragraph 3.04 of the General Conditions. ARTICLE 8 — MISCELLANEOUS. 8.01. Terms. A. Terms used in this Agreement will have the meanings indicated in the General Conditions. 8.02. Assignment of Contract. A. No assignment by a party hereto of any rights under or interests in the Contract will be binding on another party hereto without the written consent of the party sought to be bound; and specifically, but without limitation, moneys that may become due and moneys that are due may not be assigned without such consent (except to the extent that the effect of this restriction may be limited by law); and unless specifically stated to the contrary in any written consent to an assignment, no assignment will release or discharge the assignor from any duty or responsibility under the Contract Documents. 8.03. Successors and Assigns. A. City of Fayetteville and Alpha Utilities each binds itself, its partners, successors, assigns, and legal representatives to the other party hereto its partners, successors, assigns, and legal representatives in respect to all covenants, agreements, and obligations contained in the Contract Documents. (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -7- (PN 140760) 11/16/06 8.04. Severability. A. Any provision or part of the Contract Documents held to be void or unenforceable under any Law or Regulation shall be deemed stricken, and all remaining provisions shall continue to be valid and binding upon City of Fayetteville and Alpha Utilities, who agree that the Contract Documents shall be reformed to replace such stncken provision or part thereof with a valid and enforceable provision that comes as close as possible to expressing the intention of the stricken provision. 8.05. Business Addresses. A. The business address of Alpha Utilities given herein is hereby designated as the place to which all notices, letters, and other communication to Alpha Utilities will be mailed or delivered. The address of City of Fayetteville appearing herein is hereby designated as the place to which all notices, letters, and other communication to City of Fayetteville shall be mailed or delivered. Either party may change its address at any time by an instrument in writing delivered to Black & Veatch and to the other party. 8.06 Changes to Contract A. Changes, modifications, or amendments in scope, price or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 8.07 Freedom of Information Act. A. City of Fayetteville contracts and documents prepared while performing city contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, Contractor will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.). Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. 8.08 Interpretation. This contract must be interpreted under Arkansas Law. (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -8- (PN 140760) 11/16106 IN WITNESS. WHEREOF, City of Fayetteville and Alpha Utilities have signed this Agreement. One counterpart each has been delivered to City of Fayetteville, Alpha Utilities and Black & Veatch. This Agreement will be effective on /UoiLei her c://) odd . City of Fayetteville: By Title Address for giving ices Address for giving notices 1?.h r S Approved as to Form as - • i y .f Fayetteville point Venture 1-0r SKY:i7,-901 Cowlrark-ar 's License No.3\C2203i,] Expiration Date Ma rr1, -31 a00`1 By Title: • Address for giving notices Expiration Date End of Section 's License No. (FAYETTEVILLE, AR) 00500 11/16/06 (TRANSMISSION MAIN MODIFICATIONS) -9- (PN 140760) Bond No. 5355509 Performance Bond Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR: Alpha Utilities, Inc. PO Box 6505 Ft. Smith, Arkansas 72906 OWNER: City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, Arkansas 72701 SURETY (Name and Address of Principal Place of Business): Employers Mutual Casualty Company P.O. Box 712 Des Moines, IA 50303 CONTRACT Date: Amount: 1,185,000.00 Description: 36 -inch and 42 -inch Existing Transmission Main Modifications. City of Fayetteville, Arkansas The Work covered by this Contract will consist of the installation of facilities to provide the City the capability to detect and isolate major breaks in the 36 inch pipeline between Joyce Road and Mission Boulevard. This construction includes the installation of concrete vaults, pressure sustaining valves, electric actuators on existing 36 inch butterfly valves, a flowmeter, and associated electrical and instrumentation devices at five locations along the existing 36 and 42 inch transmission mains from Beaver Water District. BOND Date (Not earlier than Contract Date): Amount: 1,185,000.00 Modifications to this Bond Form: Surety and Contractor, intending to be legally bound hereby, subject to the terms printed on the reverse side hereof, do each cause this Performance Bond to be duly executed on its behalf by its authorized officer, agent or representative. CONTRACTOR AS PRINCIPAL Company: (Corp. Seal) SURETY Company: (Corp: Seal) Alpha U ili les, Inc. Emplo, s Mutual _ . y Company Signature: Signat \ Name and Titl Jett H=rr i s , Pres . Name and Title: James .r vaaall, (Attach Power of Attorney) Power of Attorney (Space is provided below for signatures of additional parties, if required.) CONTRACTOR AS PRINCIPAL Company: (Corp. Seal) Signature: Name and Title: SURETY Company: (Corp. Seal) Signature: Name and Title: EJCDC No. 1910-28-A (1996 Edition) Originally prepared through the joint efforts of the Surety Association of America, Engineers Joint Contract Documents Committee, the Associated General Contractors of America, and the American Institute of Architects. 00510 -1- 11/03 1. The CONTRACTOR and the Surety, joirfy end severally, bind themselves, their heirs, executors, administrators, successors and assigns to the Owner for the performance of the Conrad, which is Incorporated herein by reference. 2. d the CONTRACTOR performs the Contract, the Surety and the CONTRACTOR have no obl gallon under this Bond, except to partidpate in conferences as provided in paragraph 3.1. 3. If there is no OWNER Default, the Surety's obligation under this Bond shall arise after. 3.1. The OWNER has notified the CONTRACTOR and the Surety at the addresses described In paragraph 10 below, that the OWNER Is considering dedadng a CONTRACTOR Default and has requested and attemped to arrange a conference with the CONTRACTOR and the Surety to be held not later than fifteen days after receipt of such notice to discuss methods of performing the Contract If the OWNER, the CONTRACTOR and the Surety agree, the CONTRACTOR shall be allowed a reasonable time to perform the Centred, but such an agreement shall not waive the OW NER's right, If any, subsequently to declare a CONTRACTOR Default and 3.2. The OWNER has declared a CONTRACTOR Default and formally terminated -the CONTRACTOR'S rigid to complete the Contrail. Such CONTRACTOR Default shall not be declared earlier than twenty days after the CONTRACTOR and the Surety have received notice as provided in paragraph 3.1; and 3.3. The OWNER has agreed to pay the Balance of the Contract Price to: 3.3.1. The Surety in accordance with the teams of the Contract 3.3.2 Another contractor selected pursuant to paragraph 4.3 to perform the Contract. 4. When the OWNER has satisfied the conditions of paragraph 3, the Surety shall promptly and at the Surety's expense take one of the following actions: 4.1. Arrange for the CONTRACTOR, with consent 01 the OWNER, to perform and complete the Contrail; or 4.2. Undertake to perform and complete the Contract itself, through Its agents or through Independent contractors; or 4.3. Obtain bids or negotiated proposals from qualified contractor; acceptable to the OWNER for a contract for performance and completion of the Contrail, arrange for a conheel to be prepared for execution by the OWNER and the contractor selected with the OWNER% mncurence, to be secured with performance and payment bonds executed by a qualified suety equivalent to the Bads Issued on the Contrad, and pay to the OWNER the amount of damages as described in paragraph 6 in excess of the Balance of the Contract Price (named by the OWNER resulting from the CONTRACTOR Default or 4.4. Waive Its right to perform and complete, arrange for completion or obtain a new contractor and with reasonable promptness under the cfaanstances; 4.4.1 After investigation, determine the amount for which It may be liable to the OWNER and, as soon as predicable after the amount Is determined, tender payment therefor to the OWNER; or 4.4.2 Deny liability In whole or In part and notify the OWNER citing reasons therefor. 5. If aro Surety does not proceed es provided In paragraph 4 with reasonable promptness. the Surety shall be deemed to be in default on this Bond fifteen days after receipt al an additional written notice from the OWNER to the Surety demanding that the Surely perform its obligations under this Bond, and the OWNER shall be entitled to enforce any remedy available to the OWNER. If the Surety proceeds as provided in paragraph 4.4, and the OWNER refuses the payment tendered or the Surety has dented pliability, in whole or in part. without further notice are OWNER shall be entitled to enforce any remedy available to the OWNER. 6. After the OWNER has terminated the CONTRACTOR's right to compete the Contract, and if the Surety elects to ad under paragraph 4.1. 4.2, or 4.3 above, then the responsibilities of the Surety to the OWNER shall not be greater than Rose of the CONTRACTOR under the Contract. and the responsibilities of the OWNER to the Surety shall not be greater Than those of the OWNER under the Contract. To a linin of tie amount of INs Bond, but subject to commitment by the OWNER of the Balance 01 the Contract Price to mitigation 01 costs end damages on the Contract, the Surety is obligated without duplication for. 6.1. The responslbiGties of the CONTRACTOR for conectlon of defective Work and completion 01 the Contract; 6.2 Additional legal, design professional and delay costs resulting from the CONTRACTOR% Default, and resulting from the actions or failure to ad of the Surety under paragraph 4; and 6.3. Ugtidated damages, or if no liquidated damages are specified in the Contract, actual damages caused by delayed performance or non- performance of the CONTRACTOR. 7. The Suety shall not be Gable to the OWNER or others for otfigations of are CONTRACTOR that are unrelated to the Contract and the Balartce of the Conrad Pace shall not be reduced or set oft on account of any such unrelated obligations. No fight of action shall awue on this Bond to any person or entity other than the OWNER or its heirs, executors, administrators, or su¢essors. 8. The Suety hereby waives notice 01 any change, Including changes of time, to the Contract or to related subcontracts, purchase orders end other obligations. 9. My proceeding, legal or equitable, under tNs Bond may be indituted in any count of competent jurisdiction in the location in which the Work or pan 01 the Wont is located and shall be instituted within two years after CONTRACTOR Default or within two years after the CONTRACTOR ceased wonting or witen Iwo years after the Surety refuses or fails to perform Its obi gatons under this Bond, whichever occurs first. If the provisions 01 this paragraph am void a prohibited by law, the minimum period of fmllation available to sureties as a defense In the jurisdiction of the suit shall be applicable. 10. Notice to the Surety, the OWNER or the CONTRACTOR shall be maned or denvered to the address shown on the signature page. 11. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the Contract was be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted here from and provisions confonnng to such statutory or other legal requirement shall be deemed Inoorporated herein. The intent Is that !Ns Bond shall be construed as a statutory bond and not as a common law bond. 12. Definitions. 12.1 Balance of the Conrad Price: The total amount payable by the OWNER to the CONTRACTOR under the Contract after all proper adjustments have been made, Including allowance to the CONTRACTOR of any amounts received or to be received by the OWNER in settlement of insurance or other Claims for damages to which the CONTRACTOR Is entitled, reduced by all valid and proper payments made to or on behalf of Ore CONTRACTOR under the Centred. 12.2. Contrail; The agreement between the OWNER and the CONTRACTOR Identified on the signature page, including all Contract Documents and changes thereto. 12.3. CONTRACTOR Default: Failure of the CONfRACTOR,whIdt has neither been remedied nor waived, to perform or otherwise to comply with the teams of the Contact. 12.4. OWNER Default Failure of the OWNER, which has neither been remedied nor waned, to pay the CONTRACTOR as required by the Contract or to perform and compete or comply with the other terns thereat. (FOR INFORMATION ONLY—Name, Address and Telephone) AGENT or BROKER: OWNER'S REPRESENTATIVE (ENGINEER or other party): Black & Veatch Corporation 8400 Ward Parkway Kansas City, Missouri 64114 (913)458-3147 00510 -2- 11/03 Bond No S355509 Payment Bond Any singular reference to Contractor, Surety, Owner or other party shall be considered plural where applicable. CONTRACTOR: Alpha Utilities, Inc. PO Box 6505 Fort Smith, Arkansas 72906 OWNER: City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, Arkansas 72701 CONTRACT Date: Amount: 1,185,000.00 Description: 36 -inch and 42 -inch Existing Transmission Main Modifications. City of Fayetteville, Arkansas The Work covered by this Contract will consist of the installation of facilities to provide the City the capability to detect and isolate major breaks in the 36 inch pipeline between Joyce Road and Mission Boulevard. This construction includes the installation of concrete vaults, pressure sustaining valves, electric actuators on existing 36 inch butterfly valves, a flowmeter, and associated electrical and instrumentation devices at five locations along the existing 36 and 42 inch transmission mains from Beaver Water District. SURETY (Name and Address of Principal Place of Business) Employers Mutual Casualty Company P.O. Box 712 Des Moines, IA 50303 • BOND Date (Not earlier than Contract Date): Amount: 1,185,000.00 Modifications to this Bond Form: Surety and Contractor, intending to be legally bound hereby, subject to the terms printed on the reverse side hereof, do each cause this Payment Bond to be duly executed on its behalf by its authorized officer, agent or representative. CONTRACTOR AS PRINCIPAL Company: Alpha Ut'lit 'es, Inc. Emplo Signature: Name and Titl ..Tett- Harris Pres. SURETY (Corp. Seal) Company: Signature - Name and Title: ;ramps r !Rnaapll, (Attach Power of Attorney) Power of Attorney (Corp. Seal) tualeas y Com any (Space is provided below for signatures of additional parties, if required.) CONTRACTOR AS PRINCIPAL SURETY Company: (Corp. Seal) Company: (Corp. Seal) Signature: Signature: Name and Title: Name and Title: EJCDC No. 1910-28-13 (1996 Edition) Originally prepared through the joint efforts of the Surety Association of America Engineers Joint Contract Documents Committee, the Associated General Contractors of America and the American Institute of Architects. 00520 07/20/05 -1- 1. The CONTRACTOR and the Surety, jointly and severally, bind themselves, their heirs, executors, administrators, successors and assigns to the OWNER to pay for labor, materials and equipment furnished for use In the performance of the Contract, which is Incorporated herein by reference. 2. With respect to the OWNER, this obligation shall be null and void If the CONTRACTOR: 2.1. Promptly makes payment, directly or Indirectly, for all sums due Claimants, and 2.2. Defends, Indemnifies and holds harmless the OWNER from all claims, demands, (lens or suits by any person or entity who furnished labor, materials or equipment for use in the performance of the Contract, provided the OWNER has promptly notirred the CONTRACTOR and the Surety (at the addresses described In paragraph 12) of any claims, demands, liens or sults and tendered defense of such claims, demands, liens or suits to the CONTRACTOR and the Surety, end provided there is no OWNER Default. 3. With respect to Claimants, this obligation shall be null and void if the CONTRACTOR promptly makes payment, directly or indirectly, for all sums due. 4. The Surety shall have no obligation to Claimants under this Bond until: 4.1 Claimants who are employed by or have a direct contract with the CONTRACTOR have given notice to the Surety (at the addresses described In paragraph 12) and sent a copy. or notice thereof, to the OWNER, stating that a claim is being made under this Bond and, with substantial accuracy, the amount of the claim. 4.2. Claimants who do not have a direct contact with the CONTRACTOR: 1. Have furnished written notice to the CONTRACTOR and sent a copy, or notice thereof, to the OWNER, within 90 days after having last performed labor or last furnished materials or equipment included In the claim stating, with substantial accuracy, the amount of the claim and the name of the party to wham the materials were furnished or supplied or for whom the labor was done or performed; and 2. Have either received a rejection In whole or in part from the CONTRACTOR, or not receNed within 30 days of furnishing the above notice any communication from the CONTRACTOR by which the CONTRACTOR had indicated the claim will be paid directly or indirectly, and 3. Not having been paid within the above 30 days, have sent a written notice to the Surety and sent a copy, or notice thereof, to .the OWNER, stating that a claim Is being made under this Bond and enclosing a copy of the previous written notice furnished to the CONTRACTOR. 5. If a notice required by paragraph 4 is given by the OWNER to the CONTRACTOR or to the Surety, that is sufficient compliance. 6. When the Claimant has satisfied the conditions of paragraph 4, the Surety shall pramptlyand at the Suretys expense take the follaMng actions: 6.1. Send an answer to the Claimant, with a copy to the OWNER ' Mhin 45 days after receipt of the claim, stating the amounts that are to puled and the basis for challenging any amounts that am disputed. 6.2. Pay or arrange for payment of any undisputed amounts. 7. The Suretys total obligation shall not exceed the amount of this Bond, and the amount of this Bond shall be credited for any payments made in good faith by the Surety. 8. Amounts owed by the OWNER to the CONTRACTOR under the Contract shall be used fortheperformance of the Contract and to satisfy claims, If any, under any Performance Bond. By the CONTRACTOR furnishing and the OWNER accepting this Bond, they agree that ell funds earned by the CONTRACTOR in the performance of the Contract are dedicated to satisfy obligations of the CONTRACTOR and the Surety under this Bond, subject to the OWNER's priority to use the funds for the completion of the Work. 9. The Surety shall not be liable to the OWNER, Claimants or others for obligations of the CONTRACTOR that are unrelated to the Contract. The OWNER shall not be liable for payment of any costs or expenses of any Claimant under this Bond, and shall have under this Bond no obligations to make payments to, give notices on behalf of, or otherwise have obligations to Claimants under this Bond. 10. The Surety hereby waives notice of any change, including changes of time, to the Contract or to related Subcontracts, purchase orders and other obligations. 11. No suit or action shall be commenced by a Claimant under this Bond other than In a court of competent jurisdiction in the location In which the Work or part of the Work is located or after the expiration of one year from the date (1) on which the Claimant gave the notice required by paragraph 4.1 or paragraph 4.2.3, or (2) on which the last labor a service was performed by anyone or the last materials or equipment were furnished by anyone under the Construction Contract, whichever of (1) or (2) first occurs. If the provisions or this paragraph are void or prohibited by law. the minimum period of limitation available to sureties as a defense In the jurisdiction of the suit shall be applicable. 12. Notice to the Surety, the OWNER or the CONTRACTOR shall be mailed or delivered to the addresses shown on the signature page. Actual receipt of notice by Surety. the OWNER or the CONTRACTOR, however accomplished, shall be sufficient compliance as of the date received at the address shown on the signature page. 13. When this Bond has been furnished to comply with a statutory or other legal requirement in the location where the Contract was to be performed, any provision in this Bond conflicting with said statutory or legal requirement shall be deemed deleted herefrom and provisions conforming to such statutory or other legal requirement shall be deemed Incorporated herein. The Intent Is, that this Bond shall be construed as a statutory Bond and not as a common law bond. 14. Upon request of any person or entity appearing to be a potential beneliiciary of this Bond, the CONTRACTOR shall promptly furnish a copy of this Bond or shall permit a copy to be made. 15. DEFINITIONS 15.1 Claimant: An Individual or entity having a direct contract With the CONTRACTOR or with a Subcontractor tithe CONTRACTOR to furnish labor, materials or equipment for use In the performance or the Contact. The intern of this Boni shall be to ht ude without lInritetbn In the terns Saba, materials or equipment" that part of water, gas, power, light, heat, dl, gasoline, telephone service or rental equipment used in the Contract, architectural and engineering services required for performance of the Work of the CONTRACTOR and the CONTRACTORs Subcontractors, and all other Items for wNda a mechanic's lien may be asserted in the jurisdiction where the labor, materials orequipment were furnished. 15.2. Contract The agreement between the OWNER and the CONTRACTOR identified on the signature page, Including ell Contract Documents and changes thereto. 15.3. OWNER Default: Failure of the OWNER, which has neither been remedied nor waived, to pay the CONTRACTOR as required by the Contract or to perform and complete or comply with the other terns thereof. (FOR INFORMATION ONLY—Name, Address and Telephone) AGENT or BROKER- OWNER'S REPRESENTATIVE (ENGINEER or other party): Black & Veatch Corporation 8400 Ward Parkway Kansas City, Missouri 64114 (913)458-3147 00520 07/20/05 OE FACE OF THIS DOCUMENT HAS A COLORED. BACKGROUND ON -WHITE PAP..ER=BACK OF4THIS DOCUMENT -HAS ASIMULATED WATERMARK!HOLD AT_AN-ANGLE TO VIEW. O[ tU31 CInsurance Companies P.O. Box 712 • Des Moines, IA 50303-0712„ CERTIFICATE OF AUTHORITY INDIVIDUAL ATTORNEY -IN -PACT KNOW ALL MEN BY THESEPRESENTS, that • 1. Employers Mutual Casualty Company; an low Corporation 5. Dakota Fire InsuranceCompany, a North Dakota Corporation 2. EMCASCO Insurance Company, an Iowa Corporation 6. EMC Property & Casualty Company, an Iowa Corporation 3. Union Insurance Companyof.Providence, an Iowa Corporation 7. Hamilton Mutual Insurance:Company, an.lowa.Corporation .; 4, Illinois EMCASCO Insurance Company an Iowa Corporation'. •; hereinafter referred to severally as 'Company' and collectivelyas "Companies', each does, by these presents, make(;eonstnute and appoint; JAMES C. RUSSELL,`WALTER L. MOORMAN, KIM MARVEL, GAYLE HATWIG, CAROLYN:J. GREENE, SANDRA ROE, TARA ZIPP, INDIVIDUALLY, FORT SMITH, ARKANSAS its true and lawful attorney-in-fact, with full power and authority conferred to sign, seal, and execute its lawful bonds, undertakings, and other obligatory instruments of a similar nature as follows: -r : • IN AN AMOUNT NOT EXCEEDING TEN:MILLION DOLLARS ($10,000,000.00) and to bind each Company:theieby as fully and tiithe same extent as if such instruments were signed by the duly authorizedofficers of.eadh such Company, and all of the acts of said attorney pursuant to the authorityfterebygiven are hereby ratified and confirmed. The authority hereby granted shall expire April 1, 2008 unless sooner revoked. AUTHORITY FOR POWER OF ATTORNEY This Power-of-Allomey'is made and exectited pursuant to and by the authority of the following resolution of the Boards of Dlreetors of each/' of the -Companies at a regularly scheduled meeting ofaach company duly called and held 01 1999: RESOLVED: The President and Chief Executive Officer, any Vice President, the Treasurer and the Secretary,of Employers Mutual Casualty Company shall have power and authority to (1) appoint attorneys -in -fact and authorize them to execute on behalf of each Company;a d attach the seal el the; Company thereto, bonds and undertakings, recognizances; contracts of indemnity and otherwritings obligatory in the nature thereof, and (2) to remove any'such attomey-in-fact at any time andrevoke the power and authority glveh td him or her. Attorneys -in -fact shall have power and authority, subjectto tne'terms and limitations of the power -Of -attorney issued to them, to execute and deliver on behalf of the Company, and to attach the seal of the Company thereto, bonds and undertakings, recognizances, contracts of indemnity and other obligatriryin the nature thereof, add any Such instrOment executed by any such attorney-in-fact shall be fu lyand in all fespects:bindir g upon the Company. Certification as to the validity of any power-of-attorney authorized herein made by an officer of Employers Mutual Casualty' Company a'hall be fullyand in all respects • binding.updn thisCompany.:the facsimile: or mechanically reproduced signature of suety officer,. whether made heretofore or hereafter, `.wherever appearing upon a -- certiiied copy of any Powerof-attomey of the Company, shall tie valid and binding upon the Company with the same force and affect as thbugWmanually affixed, IN WITNESS WHEREOF, the Companies iiav&caused these presents to be signed for each by their officers as shown and the Corporate seals to ba hereto affixed this 1St •. • day & ,:c•:!. 2006 �% w '.An n • _ Seals .. . . /05;••INSUg4 t Z �pP0e4 !R'. 14 ▪ SEAL „- th oft?- y�o QpPoeq' �o ▪ SEAL '; 2 ▪ D2�OQtr Oggx 0; • 1863 ‘11 t▪ i.1014i0‘‘ ,NS U7ANF, • • O.% ',a SEAL: n` T `o'•,• • r, ▪ i. trio IOWP •*Me[Ko� SUAL !NS TUq 4, • PZY 6 cF of `oFr°Ay1. s9� • 2 p. • 1953 . Bruce G. Kelley, Chairman . of Companies 2, 3, 4, 5 &.6; ?resident of Company 1; Vice Chairinan and CEO of Company 7 JriffreyS&rdsley : • Assistant Secretary; On this. 1s1 day of August AD .. , -, 2006 before me a Notary Public in andfor the State o Iowa, personally appeared Bruce:G. Kelley and Jeffrey S. Birdsley, who, being by me duly swom,did say that they are, and are:known to me to be the Chairman, President, Vice.:Chairman and CEO, andor Assistant Secretary, respectively, of each. of The Companies above; that the:seafs affixed to. this instrument are the seals of said • corporations; that said instrument Was signed and sealed an be,halfof:each of the Companies by authorityof their respective Boards -of Directors; and tha the said Bruce G. Kelley and Jeffrey S. Birdsley, as such officers, acknowledge the execution` o said instrument to be the voluntary act and deed of each of the Companies. My Commission Expires Noye Aber 1,2008:: Commission Nbmber 176255 LII,c.e+�1 /Z % i�'Q My 6°m61. Exp. Noir. 1.2008 Notary Publicin and for the State of Iowa" CERTIFICATE • I, David L. Hixenbaugh; VrcePfeeident of the Companies, do hereby certify that the foregoing resolution of the Boards of Directors byea'cti of the Companies, and this.Powerof Attorney ssue'd pursuant thereto on August 1, 2006, ' , on behalf of James C. Russell, Wafter. L. Moorman,: Kim Marvel, Gayle Hatwig, Carolyn J. Greene, Sandra Roe Tara Zipp are trueand correct and are in full force and effect. In Testimony Whereof I have subsc bedny name: and affixed the facsimile seal of each Company this., day of tGoim ]83212106 For'verification of,th ae uthentieit of,the Power,of?Attorney,you.ma ,, call'(515)'280-2689 VicezPresident • ACORD CERTIFICATE OF LIABILITY INSURANCE OP IDT DATE(MMIODIYYYY) ALPHA-1 11/17/06 FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING TO WHICH THIS CERTIFICATE MAY BE ISSUED OR THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH PRODUCER Johnson Moorman Russell Inc. P. O. Box 1747 Fort Smith AR 72902 Phone: 479-201-8700 Fax:479-201-8708 THIS CERTIFICATE ONLY AND HOLDER. ALTER THE IS ISSUED CONFERS NO THIS CERTIFICATE COVERAGE AFFORDED AS A MATTER OF INFORMATION RIGHTS UPON THE CERTIFICATE DOES NOT AMEND, EXTEND BY THE POLICIES POLICY NUMBER OR BELOW. INSURERS AFFORDING COVERAGE NAIC #. INSURED Alpha Utilities, Inc. Jett Harris 5516 S. 28th Street Fort Smith AR 72901 INSURERA Ohio Casualty Group 24074 INSURERS: GENERAL INSURER C: LIABILITY CLAIMS MADE INSURER D: OCCUR INSURER E: 10/11/06 10/11/07 EACH OCCURRENCE COVERAGES THE POLICIES OF INSURANCE LISTED BELOW HAVE ANY REQUIREMENT, TERM OR CONDITION OF ANY MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES. AGGREGATE LIMITS SHOWN MAY HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING TO WHICH THIS CERTIFICATE MAY BE ISSUED OR THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH CONTRACT OR OTHER DOCUMENT WITH RESPECT POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL BEEN REDUCED BY PAID CLAIMS. iNJH LTR AUU'L NSRC TYPE OF INSURANCE POLICY NUMBER POLICY DATE (MMIDD/YY) EFFECTIVE POLICY EXPIRATION DATE(MM/DDWY) LIMITS A X GENERAL COMMERCIALGENERALLIABILITY LIABILITY CLAIMS MADE OCCUR 53278421 - 10/11/06 10/11/07 EACH OCCURRENCE $ 1,000,000 X PREMISES (Ea oaureme) $ 100,000 I X MED EXP (Any one Person) $ 10,000 $ 1,000,000 PERSONAL S ADV INJURY GENERAL AGGREGATE $ 2,000,000 GEN'L AGGREGATE POLICY LIMIT APPLIES PER: LOC PRODUCTS-COMP/OP AGG $ 2,000,000 IX l jEal: — A A A X AUTOMOBILE LIABILITY ANY AUTO ALL OWNED AUTOS SCHEDULED AUTOS HIRED AUTOS NON -OWNED AUTOS 53278421 53278421 53278421 10/11/06 10/11/06 10/11/06 10/11/07 10/11/07 10/11/07 SINGLE LIMIT $1000000 COMBINED COMBINED X BODILY INJURY (Per person) $ X BODILY INJURY _ (Per accident) $ X PROPERTY DAMAGE (Per accident) $ GARAGE LIABILITY ANY AUTO AUTO ONLY - EA ACCIDENT $ OTHER THAN AUTO ONLY: EA ACC $ AGG $ A X EXCESS/UMBRELLA OCCUR DEDUCTIBLE RETENTION UABILITY CLAIMSMADE 53278421 10/11/06 10/11/07 EACH OCCURRENCE $1,000,000 $1,000,000 X AGGREGATE $10000 $ $ X $ A WORKERS COMPENSATION AND EMPLOYERS'LIABILITY ANY PROPRIETOFVPARTNERIEXECUTIVE OFFICER/MEMBER EXCLUDED? SPECIALPROVISIONSEeIow 53278421 10/11/06 10/11/07 X TORY LIMITAITS ER E.L.EACHACCIDENT $500,000 E.L. DISEASE - EA EMPLOYEE $500,000 E.L. DISEASE -POLICY LIMIT $500,000 A OTHER Leased Equipment 53278421 10/11/06 10/11/07 Per item $250,000 Occurence $250,000 DESCRIPTION OF OPERATIONS / LOCATORS 1 VEHICLES / EXCLUSIONS ADDED BY ENDORSEMENT I SPECIAL PROVISIONS Project: 36 -inch and 42 -inch existing transmission main pipeline modifications, City of Fayetteville 30 days written notice of cancellation given, except in the event of nonpmt of premium, in which 10 days notice will be given. *****SEE ATTACHED NOTES FOR MORE INFORMATION***** CERTIFICATE HOLDER CANCELLATION Black & Veatch Insurance Cert. P 0 Box 8405 Kansas City MO Corporation Coordinator 64114 BLACK&V SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING INSURER WILL ENDEAVOR TO MAIL 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT, BUT FAILURE TO DO SO SHALL IMPOSE NO OBLIGATION OR LIABILITY OF ANY KIND UPON THE INSURER, ITS AGENTS OR REPRESENTATIVES. ACORD 25 (2001 (08) AUTHORIZED REPRESENJ9TIVE� ©ACORD CORPORATION 1988 N Alpha Util-ities PAGE42� DATE 11/17/06 1. Certificate holder & their officers, directors, partners, employees & agents named as additional insured on general liability, auto & excess policies. The coverage afforded the additional insured under these policies shall be primary insurance. If the additional insured has other insurance which is applicable to the loss, such other insurance shall be on an excess or contingent basis. 2. Blanket coverage for ECU hazards (general liab & excess liability) 3. Waiver of subrogation against certificate holder, their officers, directors, partners, employees, and agents (all policies) 4. Contractual coverage covers liability assumed in the Indemnification Clause of the contract between certificate holder and insured (general liability) 5. General and products/completed operations aggregates apply for each certificate holder contract or amendments (general liability & excess liability) 6. Contractual Liability Limititation Endorsement CG2139 or its equivalent is not included in either general or excess liability policy. 7. Severability of interest or cross liability clause or endorsement included (general liability & excess liability) City of Fayetteville, Arkansas Budget Adjustment Form Budget Year 2006 Department: Operations Division: Water & Sewer Maintenance Program: Water Distribution Maintenance Date Requested 11/3/2006 Adjustment Number Project or Item Added/Increased: Increase the 36" Waterline Replacement and Protection Project $687,000. Project# 03018. Also transfer $47,677 to Water Distribution account. Project or Item Deleted/Reduced: None. Use of Water/Sewer Fund Balance by $734,677. Reserves are sufficient to cover the additional funds needed. Justification of this Increase: Additional repairs to 36" water line are needed to come into compliance with the Safe Drinking Act requirements. Significant increase in the scope of work is needed to accomplish this goal. Justification of this Decrease: There are sufficient reserves available for the additional funds needed for this project. Increase Expense Budget (Decrease Revenue Budget) Account Name Account Number Amount Project Number Construction materials Water line improvements Account Name 5400 4310 5216 00 47,677 5400 5600 5808 00 687,000 03018 20 Decrease Expense Budget (Increase Revenue Budget) Account Number Amount Use of fund balance 5400 0940 4999 99 734,677 Project Number Approval Signatures Requested By anager Depa ector Date Date Date \-1) A _ r . 11-C D6 Date Finan & Irtt2rnal Services Director Mayo /2/4 Date Budget Office Use Only Type: A B C D E Posted to General Ledger Posted to Project Accounting Entered in Category Log Initial Date Initial Date Initial Date Shannon Jones Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 21 -Nov -06 City Council Meeting Date Engineering Division Action Required: Operations Department Approval of a contract with Alpha Utilites, Inc., in the amount of $1,185,000.00, for improvements to the 36" and 42" water transmission mains from Beaver Water District to the City of Fayetteville, and approve a 4% contingency of $47,000.00. $1,244,250.00 Cost of this request 5400.5600.5808.00 Account Number 03018.20 Project Number Budgeted Item 962, 326.00 Category/Project Budget 417, 306.00 Funds Used to Date 545,020.00 Remaining Balance Budget Adjustment Attached XX 36" Waterline Improvements Program Category / Project Name Water and Wastewater Program / Project Category Name Water/Sewer Fund Name Depart '' 're Or 31 0 O(e Date CeD jiff _ 1!/6 61S City Attorney Vaaa Finance and Internal Service Director Mayor Comments: 1(%cjzaot: Date Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: LReceived in City"Clerkffice Ep Received in Mayor's Office City Council Meeting of November 21, 2006 CITY COUNCIL AGENDA MEMO To: Fayetteville City Council Thru• Mayor Dan Coody David Jurgens, Water & Wastewater Director Fayetteville Sewer Committee From: Shannon Jones, Water & Wastewater Staff Engineer 9ht4a, i Date: November 3, 2006 Subject: Approval of a contract with Alpha Utilites, Inc., in the amount of $1,185,000.00, for improvements to the 36" and 42" water transmission mains from Beaver Water District to the City of Fayetteville, and approve a 4% contingency of $47,000.00. RECOMMENDATION Approval of a contract with Alpha Utilites, Inc., in the amount of $1,185,000.00, for improvements to the 36" and 42' water transmission mains from Beaver Water District to the City of Fayetteville, and approve a 4% contingency of $47,000.00. BACKGROUND The City received three bids for this project, as follows: Alpha Utilities , Inc. Hunco Builders, Inc. J L Bryson, Inc. Engineer's Estimate $ 1,185,000.00 (low bid) $ 1,197,750.00 $ 1,207,700.00 $ 1,200,676.00 The project consists of the installation of facilities to provide the City the capability to detect and isolate major breaks in the 36 inch pipeline between Joyce Road and Mission Boulevard. This construction includes the installation of concrete vaults, pressure sustaining valves, electric actuators on existing 36 inch butterfly valves, a flowmeter, and associated electrical and instrumentation devices at five locations along the existing 36 and 42 inch transmission mains from Beaver Water District. The investigation of 36 and 42 inch transmission mains identified that the pressure in the mains drops well below the minimum standard established by the Arkansas Department of Health. City staff notified the ADH of this circumstance as soon as it was discovered. The ADH requires that the condition be corrected. The only way to make the correction is to install the pressure sustaining valves that are over 65% of the cost of this contract. This was a significant increase in the required scope of work, and is the cause for the project cost exceeding the projected budget. DISCUSSION The engineer of record, Black & Veatch, has reviewed the bids as submitted. Black & Veatch has recommended awarding the contract to Alpha Utilities, Inc. They further recommend that we negotiate with Alpha Utilities the unit price per foot of any additional pipe that may be required to complete the project. The letter of recommendation by Black & Veatch is attached. BUDGET IMPACT A budget adjustment of $734,677.00 is necessary for the project. The budget adjustment request is attached. 36inch WaterlinelmprovementsCCMemoNov06.doc • RESOLUTION NO. A RESOLUTION APPROVING A CONTRACT WITH ALPHA UTILITIES, INC. IN THE AMOUNT OF $1,185,000.00 FOR IMPROVEMENTS TO THE 36" AND 42" WATER TRANSMISSION MAINS FROM BEAVER WATER DISTRICT TO THE CITY OF FAYETTEVILLE; APPROVING A FOUR PERCENT (4%) CONTINGENCY IN THE AMOUNT OF $47,000.00; AND APPROVING A BUDGET ADJUSTMENT IN THE AMOUNT OF $734,677.00. 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 contract with Alpha Utilities, Inc. in the amount of $1,185,000.00 for improvements to the 36" and 42" water transmission mains from Beaver Water District to the City of Fayetteville Section 2. That the City Council of the City of Fayetteville, Arkansas, hereby approves a four percent (4%) contingency in the amount of $47,000 00. Section 3. That the City Council of the City of Fayette a file, AYk'ansas,`liereby approves a Budget Adjustment in the amount of $734,677.00 PASSED and APPROVED this 20 day November is BLACK & VEATCH building a world of difference ENERGY WATER INFORMATION GOVERNMENT City of Fayetteville, Arkansas 36 -inch and 42 -inch Water Transmission Main Modifications City Contract 03018 Mr. David Jurgens Director of Water and Wastewater 113 West Mountain Street Fayetteville, Arkansas 72701 Dear Mr. Jurgens: B&V Project 140760 B&V File B-1.1 October 31, 2006 Subject: Bid Results and Recommendation Bids were received and opened on October 12, 2006 at the City of Fayetteville City Hall, for the above mentioned project. The following is a list of the contractor lump sum bids. Alpha Utilities, Inc. Hunco Builders, Inc. J L Bryson, Inc. Lump Sum Bid $1,185,000 $1,197,750 $1,207,700 The low bid was submitted by Alpha Utilities, Inc. for $1,185,000. The Engineer's Opinion of Probable Cost was $1,200,000. A Bid Tabulation is attached. Alpha Utilities, Inc. provided information about their firm, their experience and proposed project team. Alpha Utilities, Inc. proposes the following project team: • Jett Harris — President, 15 years of management experience, 2 years of experience in this role. • Randall Johnson — Chief Estimator and Project Manager, 44 years of construction experience, 2 years of experience in this role. • Elden Pendergass — General Superintendent, 17 years of heavy construction management experience. 2 years of experience in this role. Black & Veatch Corporation • 8400 Ward Parkway • P.O. Box 8405 • Kansas City, MO 64114 USA • Telephone: 913.458.2000 • Mr. David Jurgens City of Fayetteville, Arkansas City Contract 03018 Page 2 B&V Project 140760 B&V File B-1.1 October 31, 2006 We have contacted four (4) references from the projected performed by Alpha Utilities. The projects ranged in pnce from 240,000 to 850,000. We also have contacted three (3) reference for the staff assigned to the project. The projects ranged in price from 424,000 to 1 million. The owners interviewed were satisfied with the work that Alpha Utilities, Inc. and the staff assigned had performed and commented that Alpha Utilities, Inc maintained their schedule, were professional and communicated well: The financial standing and recent safety history has been thoroughly reviewed and Alpha Utilities has addressed our concerns. Alpha Utilities has only been in business two years and therefore has a Workman's Compensation Experience Modifier Factor of 1.0. Alpha Utilities also has a OSHA citation for improper trench sloping. This was a non -injury citation and was corrected immediately. The financial statement reflects management decision to purchase equipment. This equipment is currently owned by Alpha Utilities and can be put up if cash is needed by the firm. A financial statement and example safety program has been attached for Alpha Utilities. Alpha Utilities, Inc. has completed and submitted a "Bidder's Qualification Statement". The form has been included for your information and review We recommend that City Contract 03018 be awarded to Alpha Utilities, Inc. for $1,185,000. We are recommending negotiating the price of the pipe listed for the change order. The price appears to be high and the Alpha Utilities has agreed to negotiate the unit price of the pipe. We would recommend doing this prior to the execution of the contract documents. If you have any questions or comments regarding the above information, call me at (913) 458- 331 or Katie Funderburk at (913) 458-3147. Enclosures: 5 copies of the following Bid Tabulation Agreement Bid Documents Project Team List Financial Statement Very Truly Yours, B CK z VEATCH CORPORATION tyi J. Pruss Project Manager cc: Shannon Jones, City of Fayetteville, Arkansas File Section 00500 AGREEMENT THIS AGREEMENT is by and between the City of Fayetteville (herein called City of Fayetteville) and Alpha Utilities, Inc. (herein called Alpha Utilities) City of Fayetteville and Alpha Utilities, in consideration of the mutual covenants herein set forth, agree, as follows: ARTICLE 1 — WORK. 1.01 Alpha Utilities shall complete all Work as specified or indicated in the Contract Documents based on the acceptance by City of Fayetteville of Alpha Utilities's Bid. The Work is generally described as follows: The Work covered by this Contract will consist of the installation of facilities to provide the City the capability to detect and isolate major breaks in the 36 inch pipeline between Joyce Road and Mission Boulevard. This construction includes the installation of concrete vaults, pressure sustaining valves, electric actuators on existing 36 inch butterfly valves, a flowmeter, and associated electrical and instrumentation devices at five locations along the existing 36 and 42 inch transmission mains from Beaver Water District. ARTICLE 2 — ENGINEER. 2.01. The Project has been designed by Black & Veatch Corporation, 8400 Ward Parkway, mailing address P.O. Box 8405, Kansas City, Missouri 64114, who is referred to in the Contract Documents as Black & Veatch Black & Veatch, and its duly authorized agents, are to act as City of Fayetteville's representatives, assume all duties and responsibilities, and have the rights and authority assigned to Black & Veatch in the Contract Documents in connection with completion of the Work in accordance with the Contract Documents. (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -1- (PN 140760) 10/31/06 ARTICLE 3 — CONTRACT TIMES, LIQUIDATED DAMAGES, DELAYS AND DAMAGES, DELAY COMPENSATION. 3.01. Time of the Essence. A. All time limits for Substantial Completion, and completion and readiness for final payment as stated in the Contract Documents are of the essence of the Contract. 3.02. Contract Times. A. The Contract Times shall be as indicated in the Alpha Utilities's Bid. The Work shall be substantially completed within the number of days indicated in the Alpha Utilities's Bid after the date when the Contract Times commence to run as provided in Paragraph 2.03 of the General Conditions, and completed and ready for final payment in accordance with Paragraph 14.07.6 of the General Conditions within the number of days indicated in the Alpha Utilities's Bid after the date when the Contract Times commence to run B. Alpha Utilities shall only be allowed to work on the transmission mains from October 1 through May 1. 3.03. Liquidated Damages. A. City of Fayetteville and Alpha Utilities recognize that time is of the essence of this Agreement and that City of Fayetteville will suffer financial loss if the Work is not completed within the times specified in Paragraph 3.02 above, plus any extensions thereof allowed in accordance with Article 12 of the General Conditions. The parties also recognize the delays, expense, and difficulties involved in proving in a legal or arbitration proceeding the actual loss suffered by City of Fayetteville if the Work is not completed on time. Accordingly, instead of requiring any such proof, City of Fayetteville and Alpha Utilities agree that as liquidated damages for delay (but not as a penalty) Alpha Utilities shall pay City of Fayetteville $1,000.00 for each day that expires after the time specified in Paragraph 3.02 for Substantial Completion until the Work is substantially completed. After Substantial Completion, if Alpha Utilities shall neglect, refuse, or fail to complete the remaining Work within the Contract Times or any proper extension thereof granted by City of Fayetteville, Alpha Utilities shall pay City of Fayetteville $500.00 for each day that expires after the time specified in Paragraph 3.02 for completion and readiness for final payment until the Work is completed and ready for final payment. B. The liquidated damages set forth herein shall not be accumulative. If Substantial Completion of the Work is not met within the time specified for final completion of all Work, the liquidated damages shall continue to be at the rate or rates specified for default on Substantial Completion until Substantial Completion (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -2- (PN 140760) 10/31/06 is attained. If the Work is not then finally completed, the rate or rates specified for default on final completion shall apply until final completion is attained. C. City of Fayetteville shall have the right to deduct the liquidated damages from any money in its hands, otherwise due, or to become due, to Alpha Utilities, or to initiate applicable dispute resolution procedures and to recover liquidated damages for nonperformance of this Contract within the time stipulated. 3.04. Delays and Damages. A. In the event Alpha Utilities is delayed in the prosecution and completion of the Work because of any delays caused by City of Fayetteville or Black & Veatch and, except as set forth in Paragraph 4.01 of the General Conditions, Alpha Utilities shall have no claim against City of Fayetteville or Black & Veatch for damages or contract adjustment other than an extension of the Contract Times and the waiving of liquidated damages during the period occasioned by the delay. ARTICLE 4 — CONTRACT PRICE 4.01. City of Fayetteville shall pay Alpha Utilities in current funds, for completion of the Work designated in Article 1 in accordance with the Contract Documents, a Lump Sum amount of: One Million One Hundred Eighty -Five Thousand Dollars and ($ 1,185,000 ) no cents. (words) (figures) as indicated in Alpha Utilities's Bid. ARTICLE 5 — PAYMENT PROCEDURES. 5.01. Submittal and Processing of Payments. A. Alpha Utilities shall submit Applications for Payment in accordance with Article 14 of the General Conditions. Applications for Payment will be processed by Black & Veatch as provided in the General Conditions. 5.02. Progress Payments; Retainage. A. City of Fayetteville shall make progress payments on account of the Contract Price on the basis of Alpha Utilities's Applications for Payment as recommended by Black & Veatch, on or about the 30th day of each month during performance of the Work. All progress payments will be on the basis of the progress of the Work measured by the schedule of values established in Paragraph 2 07.A of the General Conditions (and in the case of Unit Price Work (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -3- (PN 140760) 10/31/06 • based on the number of units completed) or, in the event there is no schedule of values, as provided in Division 1, General Requirements. B. Prior to Substantial Completion, City of Fayetteville will retain from progress payments, Tess the aggregate of payments previously made and less such amounts as Black & Veatch shall determine or City of Fayetteville may withhold in accordance with Paragraph 14.02.6.5 of the General Conditions, an amount equal to the following percentages: 1. Until the Work is 50 percent completed, retainage will be 10 percent of Work completed. 2.. If the Work is 50 percent completed as determined by Black &- Veatch, and if the character and progress of the Work are satisfactory to City of Fayetteville and Black & Veatch, City of Fayetteville, on recommendation of Black & Veatch, may determine that as long as the character and progress of the Work remain satisfactory to them, there will be no additional retainage on account of Work subsequently completed. C. Upon Substantial Completion, City of Fayetteville may release a portion of the retainage to Alpha Utilities, retaining at all times an amount sufficient to cover the cost of the Work remaining to be completed. D. The reduction or termination of additional retainage will not be initiated at any time if the Work is behind schedule; and, subsequent to reducing retainage, the full retainage of payments authorized may be reinstated any time the Work falls behind schedule. E Consent of the Surety shall be obtained before any retainage is paid by City of Fayetteville. Consent of the Surety, signed by an agent, must be accompanied by a certified copy of such agent's authority to act for the Surety. 5.03. Final Payment. A. Upon completion and acceptance of the Work in accordance with Paragraph 14.07.A of the General Conditions, City of Fayetteville shall pay the remainder of the Contract Price as recommended by Black & Veatch as provided in Paragraph 14.07.6. ARTICLE 6 — CONTRACTOR'S REPRESENTATIONS. 6.01. In order to induce City of Fayetteville to enter into this Agreement, Alpha Utilities makes the following representations: (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -4- (PN 140760) 10/31/06 ..A •.- M -1••••• -WE los A. Alpha Utilities has examined and carefully studied the Contract Documents and the other related data identified in the Bidding Documents. B. Alpha Utilities has visited the Sites and become familiar with and is satisfied as to the general, local, and Site conditions that may affect cost, progress, and performance of the Work. C. Alpha Utilities is familiar with and is satisfied as to all Federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. D. Alpha Utilities has studied all reports of explorations and tests of subsurface conditions at or contiguous to the Site and all drawings of physical conditions in or relating to existing surface or subsurface structures at or contiguous to the Site (except Underground Facilities) which have been identified in the Supplementary Conditions as provided in Paragraph 4.02 of the General Conditions and reports and drawings of a Hazardous Environmental Condition, if any, at the Site which has been identified in the Supplementary Conditions as provided in Paragraph 4.06 of the General Conditions. E Alpha Utilities has obtained and carefully studied (or assumes responsibility for having done so) all additional or supplementary examinations, investigations, explorations, tests, studies, and data concerning conditions (surface, subsurface, and Underground Facilities) at or contiguous to the Site which may affect cost, progress, or performance of the Work or which relate to any aspect of the means, methods, techniques, sequences, and procedures of construction to be employed by Alpha Utilities, including application of the specific means, methods, techniques, sequences, and procedures of construction, if any, expressly required by the Contract Documents to be employed by Alpha Utilities, and safety precautions and programs incident thereto. F. Alpha Utilities does not consider that any further examinations, investigations, explorations, tests, studies, or data are necessary for the performance of the Work at the Contract Price, within the Contract Times, and in accordance with the other terms and conditions of the Contract Documents. G. Alpha Utilities is aware of the general nature of work to be performed by City of Fayetteville and others at the Site that relates to the Work as indicated in the Contract Documents. H. Alpha Utilities has correlated the information known to Alpha Utilities, information and observations obtained from visits to the Site, reports and drawings identified in the Contract Drawings, and all additional examinations, investigations, explorations, tests, studies, and data with the Contract Documents. (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -5- (PN 140760) 10/31/06 I. Alpha Utilities has given Black & Veatch written notice of all conflicts, errors, ambiguities, or discrepancies that Alpha Utilities has discovered in the Contract Documents, and the written resolution thereof by Black & Veatch is acceptable to Alpha Utilities. J. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. ARTICLE 7 — CONTRACT DOCUMENTS. A. The Contract Documents which comprise the entire agreement - - between City of Fayetteville and Alpha Utilities concerning the Work consist of the following: 1. This Agreement. 2. Performance and Payment Bonds. 3. General Conditions. 4. Supplementary Conditions. 5. Specifications. 6. List of Subcontractors. 7. Drawings consisting of 17 sheets, with each sheet bearing the following general title: 36 -inch and 42 -inch Existing Transmission Main Pipeline Modifications Sheet titles are listed on the cover sheet. 8. Addenda 1 through 2. 9. Exhibits to this Agreement, enumerated as follows: r.. Alpha Utilities's Bid. b. Notice to Proceed. c. Documentation submitted by Alpha Utilities prior to Notice (FAYETTEVILLE, AR) 00500 (TRANSMISSION MAIN MODIFICATIONS) -6- (PN 140760) 10/31/06