HomeMy WebLinkAbout126-10 RESOLUTIONRESOLUTION NO. 126-10
A RESOLUTION AMENDING RESOLUTION 63-08 BY AUTHORIZING AN
ADDITIONAL APPROPRIATION OF $79,938.20 AND APPROVING AN
AGREEMENT WITH ARKANSAS WESTERN GAS COMPANY IN THE
TOTAL AMOUNT OF $497,069.52 FOR RELOCATION OF GAS LINES AND
APPURTENANCES TO ALLOW CONSTRUCTION OF IMPROVEMENTS
TO MOUNT COMFORT ROAD
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 amends
Resolution 63-08 by authorizing an additional appropriation of $79,938.20 and approving an
agreement with the Arkansas Western Gas Company in the total amount of $497,069.52 for
relocation of gas lines and appurtenances to allow construction of improvements to Mount
Comfort Road.
PASSED and APPROVED this 20th day of July, 2010.
APPROVED:
By: + •�-,/`
LIO 1 JORD �� ayor
ATTEST:
By:
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SONDRA E. SMITH, ity Clerk/Treasurer
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Chris Brown
Submitted By
City of Fayetteville
Staff Review Form
City Council Agenda Items
or
Contracts
Jluy 20, 2010
City Council Meeting Date
Engineering
Division
Action Required:
Development Services
Department
A Resolution Approving An Additional Payment to Arkansas Western Gas Company in the Amount of $79,938.20 for
Relocation Work on Mount Comfort Road
$
79,938.20
Cost of this request
4520.9520.5809.00
Account Number
06035.1500
Project Number
Budgeted Item
X
20,547,515.00
Category / Project Budget
$ 5,451,024.12
$ 15,096,490.88
Transportation Bond Improvements
Program Category / Project Name
Street Improvements
Program / Project Category Name
2006A Sales Tax Construction
Remaining Balance Fund Name
Budget Adjustment Attached
Finance and Internal Service Director
41) -lb
Date
7-I /o
Date
47 - 206
Date
Chie of
Date
Mayor
ate
Previous Ordinance or Resolution #
Original Contract Date:
Original Contract Number:
Received in City Clerk's Office
07-01-10P02:30 RCVD
K.lhv�
c2)/.
Received in Mayor's Office
Comments:
www.accessfayetteville.org
CITY COUNCIL AGENDA MEMO
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENT CORRESPONDENCE
Council Meeting of July 20, 2010
To: Mayor and City Council
Thru: Don Marr, Chief of Staff
Jeremy Pate, Development Services Director
From: Chris Brown, City Engineer GP)
Date: July 1, 2010
Subject: A Resolution Approving an Additional Payment to Arkansas Western Gas Company in the
Amount of $79,938.20 for Relocation Work on Mount Comfort Road
PROPOSAL:
Arkansas Western Gas Company (AWG) owns a 4 -inch high pressure transmission main located on the south
side of Mount Comfort Road, along with various other distribution lines that were in conflict with proposed
improvements to Mount Comfort Road. In 2008, the City Council passed Resolution 63-08 approving an
Agreement with AWG whereby the City is obligated to pay 95.95% of the actual cost of the relocation by
AWG. The cost to the City was estimated to be $397,000, as reflected in the Resolution. No contingency
amount was approved in the Resolution.
The work by AWG has been completed and invoiced. The invoice amount of $497,069.52 is $79,938.20 more
than was appropriated by Resolution 63-08. This increase is primarily due to the difference in the estimated and
actual length of pipe relocated.
RECOMMENDATION:
Staff recommends Council approval of the additional payment to AWG. The City has agreed to pay 95.95% of
Arkansas Western Gas Company's relocation costs, so no revision to the Agreement is required. Since
Resolution 63-08 did not appropriate adequate funds to meet the terms on the agreement, an additional
appropriation is needed before payment can be made.
This item was presented to the Street Committee at the June 29th meeting. The Street Committee voted to
recommend approval of the additional payment.
BUDGET IMPACT:
The invoice amount of $497,069.52 for this work will be paid from the Transportation Improvements Bond
Fund. The total project budget for Mount Comfort Road Improvements is $11,663,000. Current estimated
expenditures, including this request, total $10.8 million.
RESOLUTION NO.
A RESOLUTION AMENDING RESOLUTION 63-08 BY
AUTHORIZING AN ADDITIONAL APPROPRIATION OF $79,938.20
AND APPROVING AN AGREEMENT WITH ARKANSAS WESTERN
GAS COMPANY IN THE TOTAL AMOUNT OF $497,069.52 FOR
RELOCATION OF GAS LINES AND APPURTENANCES TO ALLOW
CONSTRUCTION OF IMPROVEMENTS TO MOUNT COMFORT
ROAD
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
amends Resolution 63-08 by authorizing an additional appropriation of $79,938.20 and
approving an agreement with the Arkansas Western Gas Company in the total amount of
$497,069.52 for relocation of gas lines and appurtenances to allow construction of
improvements to Mount Comfort Road.
PASSED and APPROVED this 20th day of July, 2010.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
BILL TO :
SourceGas LLC
370 Van Gordon Street
Suite 4000
Lakewood, CO 80228
i {:dinf-f-M4XMd
City of Fayetteville
113 West Mountain Street
Fayetteville, AR 72701
Item Description / Details
1
fS
INVOICE
Invoice # : 1048- 1801000291
Invoice Date : '; 05/17/2010
Customer Account # : 100165
Internal Order # : 1002607
Customer Reference / Order # :
Cost for preliminary engineering work and actual
relocation of pipeline associated with the Mount Comfort
Road Improvements in Fayetteville, AR.
Make checks payable to SourceGas LLC
REMITTANCE For EFT PAYMENTS
ADDRESS (Electronic Funds Transfer)
SourceGas LLC
370 Van Gordon Street
Suite 4000
Lakewood, CO 80228
SourceGas LLC
Wells Fargo Bank, NA
ABA #121 000 248
Account # 4121-494116
Questions concerning this invoice? Please contact:
PROPERTY ACCOUNTING - Attn: Amanda Candrian
Phone: (303) 243-3464 • Fax: (303) 243-3603
E-mail: Amanda.Candrian@Sourcegas.com
Payment Terms
1 Net 30 Days
Due Date
C 06/16/2010 _I
Quantity Unit Cost Total
1 79,938.20 79,938.20
8
SUBTOTAL
TAX RATE
SALES TAX
OTHER
TOTAL $
79,938.20
0.00%
79,938.20
THANK YOU FOR YOUR BUSINESS!
INVOICE SUMMARY I/O # : 1002607
Cost for preliminary engineering work and actual relocation of pipeline associated
with the Mount Comfort Road Improvements in Fayetteville, AR,
Type of Charge Amount
Labor and Payroll 66,985.82
Employee Expense -
Material/Supplies 100,644.50
Outside Services / Legal 202,845.57
Vehicle Expenses 154.46
Right of Way 5,621.75
Utilities - Gas & Water
Permits, Licenses
Other Exp & Fees 18.33
ROW - Other
Subtotal - Direct Charges 376,270.43
Overhead Allocation 115,742.32
AFUDC 5,056.77
Billable Amount
Total Project Charges 497,069.52
Betterment -
Adjusted Total Charges 497,069.52
95.95% 476,938.20
Previous Contributions or Billings (397,000.00)
NET Amount Due 79,938.20
RESOLUTION NO. 63-08
A RESOLUTION APPROVING AN AGREEMENT WITH
ARKANSAS WESTERN GAS COMPANY IN THE AMOUNT OF
$397,000.00 FOR RELOCATION OF GAS LINES AND
APPURTENANCES TO ALLOW CONSTRUCTION OF
IMPROVEMENTS TO MOUNT COMFORT ROAD.
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 an agreement with the Arkansas Western Gas Company in the
amount of $397,000.00 for relocation of gas lines and appurtenances to allow <<,,,,,,,,„���
construction of improvements to Mount Comfort Road. e,.���R►VTR4'''.,,
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PASSED and APPROVED this 18th day of March, 2008.
ATTEST:
By:
SONDRA E. SMITH, City Clerk/Treasurer
AWG #26058
ARKANSAS WESTERN GAS COMPANY
UTILITY CONSTRUCTION/RELOCATION AGREEMENT
Property Developer:
Address:
City of Fayetteville
113 West Mountain Street
Fayetteville, AR 72701
Job Location: Zion Road
THIS AGREEMENT, made and entered into this J g 44 day of M a,�'Glrt , 2008,
by and between City of Fayetteville , acting by and through its duly authorized
representative, hereinafter referred to as the "Developer," and ARKANSAS\WESTERN GAS
COMPANY, acting by and through its duly authorized representative, hereinafter referred to as
the "Owner."
WITNESSETH:
WHEREAS, THE "Developer" proposes to make certain improvements at the location
designation as shown above; and as part of the necessary work of such improvements, "Owner"
must adjust or relocate certain of its existing facilities, and in connection with such adjustment,
or relocation, "Developer" shall participate in the costs of such work to the extent herein agreed
upon; and
WHEREAS, the proposed improvement necessitates the adjustment and/or relocation of
certain facilities of "Owner" as described in the following description of work.
Install pipe with all necessary appurtenances to relocate for the proposed Mount Comfort Road
improvements as planned and presented in the design plans provided by the City of Fayetteville
for the Mount Comfort Road Bond Project No. 06035.1500. City of Fayetteville will reimburse
95.95% of the actual cost of all materials, contract labor, company labor, equipment hours
including Engineering and Inspection costs to Arkansas Western Gas Company.
And, such adjustment, relocation or construction being shown in detail in "Owner's" plans,
sketches, estimate of cost, and specifications (when applicable) which are attached hereto and
made a part hereof; and
WHEREAS, the "Developer" desires to implement the herein described utility
adjustments or relocations and approve the proposed utility construction of "Owner" by entering
into an agreement with said "Owner."
NOW, THEREFORE, IT IS HEREBY AGREED:
1. Where applicable hereunder by reason of new utility occupancy or crossing of
"Developer's" property, "Developer" hereby grants to "Owner" a right-of-way license and
permission to install and operate utility facilities on or across "Developer's" properties as shown
on the approved plans or sketch maps attached hereto and made a part hereof, and to execute
such easements or right-of-way grants as may be necessary to evidence and record such right of
"Owner."
Page 1 of 3
2. Where applicable hereunder by reason of new construction on existing utility rights of
way, "Owner" hereby grants to "Developer" the right to use for his purposes the lands within the
project limits on or across which "Owner" holds a valid property interest antedating
"Developer's" rights which were subsequently acquired in the same lands, and which property
rights "Owner" shall retain so long as "Owner" (or "Owner's" successors or assigns) continues
such use and occupancy and does not abandon, and thereby release, such property interest to
"Developer" through facility removal in making said adjustments or by subsequent facility
removal for "Owner's" convenience; and the "Developer" hereby agrees that "Owner," by
granting said right and by said continued joint use and occupancy, does not waive any future
claim for reimbursement for adjustment cost as may be eligible for reimbursement by reason of
such prior property interest, nor does "Owner" waive any other legal or property right held under
the Law or Constitution of the State or the United States.
3. In the event that future construction, reconstruction, expansion, relocation,
rehabilitation, betterment, maintenance, or other work on the facilities owned and operated by
either the "Developer" or the "Owner" in the area jointly occupied or used under either or both
the above provisions of this Agreement will disturb, detrimentally affect, interfere, or be
inconvenient to the facilities or responsibilities of either party, the parties hereto shall reach
agreement in writing as to locations, extent, and methods of such work before the work is
undertaken. In a case of emergency, and where immediate action is necessary for the protection
of the public and to minimize damage to or loss of investment in the property of the "Developer"
or the "Owner" either party hereto may, at its own responsibility and risk, make any necessary
emergency repairs, and shall notify the other party hereto of such action as soon as practicable.
4. "Owner" shall inform "Developer," in writing, three days or more in advance of the
date work is to be started, and shall keep the "Developer " informed of progress and activity
related to the work being performed, and shall furnish written notice when the work is
completed.
5. "Developer" agrees that the cost of the utility adjustment and/or construction provided
for hereunder shall be paid to "Owner" as follows. "Owner" agrees that "Developer" will only
pay actual cost of adjustment should actual cost be less than $ 397,000,00 . If actual cost
exceeds $ 397,000.00 , the "Developer" will pay the actual cost. Exhibit "A" is cost estimate
as submitted to City of Fayetteville.
6. "Owner" shall accept as full payment for work hereunder the amount developed or
accumulated as eligible actual and related indirect costs in accordance with "Owner's"
accounting procedure, which is the Uniform System of Accounts prescribed by the Arkansas
Public Service Commission. "Owner" further agrees to retain said cost records and accounts for
inspection and audit for a period of not less that one (1) year from the date of final payment.
7. "Owner" shall be responsible for any and all hazards to persons, property, and traffic,
and shall save the "Developer" harmless in all respects from any and all losses, damages, or
injuries caused by any:negligent act or omission by "Owner's" employees or agent performing
work under this Agreement or future maintenance or servicing workon facilities constructed
under this Agreement; and "Owner" shall, in completing said work, perform clean up and
restoration of appearances of the work area including disposal of surplus materials and debris, so
as not to leave the work area in an unsafe or unsightly condition.
Page 2 of 3
8. If requested by "Owner" in writing, "Developer" shall make intermediate progress
payments in amounts not exceeding ninety percent (90%) of eligible billed costs, and no more
often than monthly intervals, for work hereunder upon receipt of statements in two (2) copies for
periodic and unpaid costs, provided the herein estimated reimbursable amount is $2,000.00 or
more, and that no such intermediate payment shall be construed as final settlement for any item
included in any intermediate billing.
9. "Owner" shall, within six (6) months after completion of the adjustment and
acceptance thereof by the "Developer," prepare and submit to "Developer" a detailed complete
(including intermediate billings, if any) and final hill in two (2) copies and covering the total cost
for the adjustment of "Owner's" facilities.
10. The "Developer," upon receiving from "Owner" the final billing documents
complete as listed next above, shall pay "Owner" for the eligible actual post, less all prior
payments, if any, for making the adjustments in "Owner's" facilities as agreed herein.
"Developer" shall pay "Owner" within thirty (30) days after such billing documents are received.
If "Developer" fails to pay within said time, the amount due shall bear interest at the rate of 10
percent per annum until paid. "Developer" shall have the right to inspect and audit the hooks of
account of "Owner" during normal business hours of "Owner" at any time within the time limit
set forth in Paragraph 6 to determine the correctness of "Owner's" billing. "Owner" agrees to
refund any and all amounts paid in payments found in the audit to exceed the total amount
eligible for work hereunder.
11. It is mutually agreed by the parties hereto that the provisions of this Agreement
pertaining to relative property rights, right-of-way occupancy permission, access for servicing
when applicable and joint use of rights of way shall continue in full force and effect from the
date of execution, and shall be perpetually binding upon each party's legal representatives,
successors or assigns.
IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed
in duplicate by their duly authorized representatives the date first herein above written.
"OWNER"
ARKANSAS WESTERN GAS COMPANY
Its:
Attest:
Senior Vice -President
Its: Secretary
"DEVELOPER"
City of F tteville
Its: Mayor
Attest:
Its:
Page 3 of 3
City Clerk
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