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Home My WebLink About162-13 RESOLUTIONRESOLUTION NO. 162-13 A RESOLUTION APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH CENTER POINT CONTRACTORS, INC. TO REMOVE CONSTRUCTION OF A FIRE SUPPRESSION SYSTEM RESULTING IN A $33,000.00 COST REDUCTION TO THE CITY FOR THE PROJECT AND APPROVING CANCELLATION OF A $33,000.00 PROMISSORY NOTE FROM NFLIGHT TECHNOLOGY, INC. ISSUED TO SECURE ITS PAYMENT OBLIGATION FOR CONSTRUCTION OF THE SYSTEM, AND APPROVING A BUDGET ADJUSTMENT 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 Change Order No. 1 to the contract with Center Point Contractors, Inc. to remove construction of a fire suppression system resulting in a $33,000.00 cost reduction to the City for the project and further approves cancellation of a $33,000.00 promissory note from NFlight Technology, Inc. issued to secure its payment obligation for construction of the system. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "A". in PASSED and APPROVED this 16t" day of July, 2013. ATTEST: By:4U4!�f el " SONDRA E. SMITH, City Clerk/Treasurer ````e�RKt /r ,� ��-. e. s."7 G • Y p� •.s'�I G''s .� FAYETTEVILLE *�_ '��sy9QkANSP�•`��`� ''s'�// �iOtN O`�a City of Fayetteville, Arkansas Budget Adjustment Form Budget Year Division: Aviation Request Date 2013 Department: Transportation Services 7/16/2013 V12.0724 Adjustment Number 1 I 1 BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION To revise the project budget in conjuction with Change Order #1 to the Contract with Centerpoint Contractors Inc which eliminates the Fire Protection Sprinkler System contract line item due to the Lessee's request. J Division HeA7 Ole Date B get Director Date — Y 1� Department?Dgctor Date 7-��zac3 Finance Director Date Staff 0 t, Date ate Prepared By: Reference: James Nicholson jnicholson Budget & Research Use Only Type: A B C D E P General Ledger Date Posted to General Ledger Checked / Verified Initial Date Initial Date TOTAL BUDGET ADJUSTMENT (33,000) (33,000) Increase / (Decrease) Project.Sub Account Name Account Number Expense Revenue Number Pymts by property owners 5550.0955.4420.00 Iz> (33,000) 12011 1 Building costs 5550.3960.5804.00 E? (33,000) 12011 1 J:\James\2013\BUDGET\BudgetAdjustments\BAForm_2012_HangarOfficeAdditionDeleteSprinkler 070513 1 of 1 City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 7/16/2013 City Council Meeting Date Agenda Items Only Ray M. Boudreaux Aviation Transportation Submitted By Division Department $ (33,000.00) $ 354,242.00 Executive Hangar Office Addition Cost of this request Category / Project Budget Program Category / Project Name 5550.3960.5804.00 $ 17,880.00 Airport Improvements Account Number Funds Used to Date Program / Project Category Name 12011 1 $ 336,362.00 Airport Project Number Remaining Balance Fund Name Budgeted Item �X Budget Adjustment Attached 95-12, 207-12, 7— L Previous Ordinance or Resolution # 93-13, 94-13, \ epart Dire A If /Date 139-13 Original Contract Date: 6/18/2013 ^Z-/ o2A*- Original Contract Number: 2283 Date oL Finance and Internal Services Director Date ;omments: Received in City- 1 3 A Clerk's Office EN ER Received in �1 Mayor's Office ,7 3 Revised January 15, 2009 A-4 . Cc et+,e,4 fbi .4 From: James Nicholson To: City Clerk Date: 7/8/2013 8:32 AM Subject: Re: Tentative Agenda and Staff Calendar CC: Barbara Fell; Jason Kelley; Ray Boudreaux; Terry Gulley Hello Dee - Our item on the next agenda, #8 on the consent agenda requires a budget adjustment included in the packet per the Budget Division, and the resolution wording to reflect the approval of the BA. The BA has been sent for signature of the Transportation Dept head, then to be forwarded to the Budget Division for approval. Please let us know if there are any additional actions we need to take at this time. Thank you for your assistance. James Nicholson, Financial Coordinator Fayetteville Executive Airport / Drake Field 479-718-7642 office 479-718-7646 fax jnicholson@ci.fayetteville.ar.us TDD (Telecommunications Device for the Deaf) 479-521-1316 On the web: http://www.accessfayetteville.org/government/aviation/index.cfm "Like" us on facebook! http://www.facebook.com/DrakeFiefdAirport >>> City Clerk 7/5/2013 9:26 AM >>> Attached is a copy of the Tentative Agenda for the July 16, 2013 City Council meeting and the Staff Calendar for the week of July 8, 2013. You may also view the agenda by clicking on the link provided below. http//accessfayetteville granicus com/GeneratedAgendaViewer php?view id=2&event id=324 If you have any questions please feel free to contact our office at the number listed below. Have a great day! City of Fayetteville Office of the City Clerk 113 W. Mountain Fayetteville, AR 72701 479-575-8323 city c1erk6Dd.fayettev11/e.ar.us TDD (Telecommunications Device for the Deaf): (479) 521-1316 RESOLUTION NO. A RESOLUTION APPROVING CHANGE ORDER NO. I TO THE CONTRACT WITH CENTER POINT CONTRACTORS, INC. TO REMOVE CONSTRUCTION OF A FIRE SUPPRESSION SYSTEM RESULTING IN A $33,000.00 COST REDUCTION TO THE CITY FOR THE PROJECT AND APPROVING CANCELLATION OF A $33,000.00 PROMISSORY NOTE FROM NFLIGHT TECHNOLOGY, INC. ISSUED TO SECURE ITS PAYMENT OBLIGATION FOR CONSTRUCTION OF THE SYSTEM, AND APPROVING A BUDGET ADJUSTMENT 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 Change Order No. 1 to the contract with Center Point Contractors, Inc. to remove construction of a fire suppression system resulting in a $33,000.00 cost reduction to the City for the project and further approves cancellation of a $33,000.00 promissory note from NFlight Technology, Inc. issued to secure its payment obligation for construction of the system. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution as Exhibit "A". PASSED and APPROVED this 16t" day of July, 2013. "1941110IM"D LIONELD JORDAN, Mayor ATTEST: SONDRA E. SMITH, City Clerk/Treasurer City Council Meeting of: July 16, 2013 Agenda Item Number: AVIATION DIVISION FAYETTEVILLE EXECUTIVE AIRPORT • DRAKE FIELD CITY COUNCIL AGENDA MEMO/STAFF CONTRACT REVIEW MEMO TO: THRU: THRU: THRU: FROM: DATE: Mayor Jordan Chief of Staff Staff/Contract Review Committee Terry Gulley, Transportation Ray M. Boudreaux, Aviation July 1, 2013 SUBJECT: Approval of Change Order No. 1 with Center Point Contractors to eliminate the Fire Suppression System in the Hangar Remodel project at the airport and cancellation of the Promissory Note from Patrick Carter, NFlight Technology to pay for the system. Signature of the Mayor. RECOMMENDATION: Approve Change Order No. 1 with Center Point Contractors deleting the Fire Suppression System in the Hangar Remodel Project at the Airport and cancellation of the Promissory Note issued by Patrick Carter to pay for the system. Signature of the Mayor. BACKGROUND: Patrick Carter, owner and operator of NFlight Technology has been a tenant of the Airport since July 2012. His business is to develop and sell cameras and other technology for use in aircraft. He asked us to apply for a grant through the Arkansas Department of Aeronautics to construct offices and a small assembly shop in the hangar for his business which was approved by the State in March. During the development of the project he asked that the project include fire suppression as it would save money on his insurance premiums and he agreed to pay for the system as part of the project. He signed a promissory note for $33,000.00 to pay for the fire suppression in total after we received a price for the system as a separate line item in the bids. Last month he asked that we take the fire suppression out of the project as he is not able to pay for it at this time. Fire suppression is not required IAW NFPA 409. The purpose of this item is to approve the Change Order No. 1 removing the fire suppression from the project and to cancel the promissory note signed by Mr. Carter. We do not have the funding to pay for the fire suppression in the airport fund. 4500 SOUTH SCHOOL AVENUE, SUITE F •.AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR 72701 479.718.7642.• 479.718.7646 FAX • www.accessfayeffeville.org/governmenVaviation airport—economic—development@ci.fayefteville.ar.us BUDGET IMPACT: None. Attachments: Staff Review Change Order No. 1 Promissory Note 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE AR72701 479.718.7642 - 479.718.7646 FAX • www.accessfayetteville.org/govemmentlaviation airport economic development@ci.fayetteville.ar.us RESOLUTION NO. A RESOLUTION APPROVING CHANGE ORDER NO. 1 TO THE CONTRACT WITH CENTER POINT CONTRACTORS, INC. TO REMOVE CONSTRUCTION OF A FIRE SUPPRESSION SYSTEM RESULTING IN A $33,000.00 COST REDUCTION TO THE CITY FOR THE PROJECT AND APPROVING CANCELLATION OF A $33,000.00 PROMISSORY NOTE FROM NFLIGHT TECHNOLOGY, INC. ISSUED TO SECURE ITS PAYMENT OBLIGATION FOR CONSTRUCTION OF THE SYSTEM 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 Change Order No. 1 to the contract with Center Point Contractors, Inc. to remove construction of a fire suppression system resulting in a $33,000.00 cost reduction to the City for the project and further approves cancellation of a $33,000.00 promissory note from NFlight Technology, Inc. issued to secure its payment obligation for construction of the system. PASSED and APPROVED this 161h day of July, 2013. APPROVED: ATTEST: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer JUL 0 9 2013 CHANGE ORDER Order No. Date: Agreement Date: NAME OF PROJECT: Hangar A Renovation — Office Addition OWNER: City of Fayetteville (Airport Department) CONTRACTOR: Center Point Contractors Inc. The following changes are hereby made to the CONTRACT DOCUMENTS: 1 June 27, 2013 May 7, 2013 1. Remove the Fire Protection System for the Hangar from the Project. Deduct cost of $ 33,000.00 to the contract.. Justification: 1. The Owner's wishes to remove the Fire Protection work from the Contract to reduce the overall project cost to be within the funding available from the State Aeronautics Dept. and the City. CONTRACT PRICE prior to this Change Orders: $ 289,675.00 Decrease in Contract Price: ($ 33,000.00) Revised CONTRACT PRICE Including this Change Order: $ 256,675.00 Final Completion Time Prior to This Change Order: 120 Calendar Days Net Time Change Resulting From This Change Order: 0 Calendar Days Change to CONTRACT TIME: The CONTRACT TIME will be (ir'^rr,aFeased) (decreased) by 0 calendar days. Approvals Required: To be effective this Order must be approved by the Owner if it changes the scope or objective or the PROJECT, or as may otherwise be required by the GENERAL CONDITIONS. Requested by: 2S f Center Point Contracto Inc. Date Recommended by: —2T gMc Consulting Engineers, Inc. Date Approved :`�-�'�— pp b Y Cit vetteville Ilate J:\2012\122126 - EXEC HANGAR OFFICE\CONSTRUCTION\CHANGE ORDERS\CHANGE ORDER 1.DOC Page 1 PROMISSORY NOTE $33,000.00 Fayetteville, Arkansas Date: 5-28 • (? FOR VALUE RECEIVED, the undersigned NFlight Technology, Inc. promises to pay to the order ofthe CITY OF FAYETTEVILLE, ARKANSAS ("City") the principal sum of Thirty-three Thousand Dollars ($33,000.00), with interest from the date hereof on unpaid principal at 0.0%. Such principal and interest shall be payable at the principal office of the City in the City of Fayetteville, Arkansas, as follows: Thirty-three (33) monthly payments in the amount of $1,000.00 per month on or before the first day of each month with the first payment due on or before September 1, 2013. The entire principal balance due and owing may be paid in advance at any time without pre -payment penalty. Each installment of principal and interest not paid at maturity (meaning normal maturity or any maturity created by acceleration) shall bear interest thereafter at the highest rate allowed by law. If total or partial default be made in the payment of any installment of principal or interest under this note, as the same matures, the entire principal sum and accrued interest shall at once become due and payable without notice at the option of the holder of this note. Failure to exercise this option shall not constitute a waiver of the right to exercise the same in the event of any subsequent default. The makers, endorsers, sureties, guarantors, and all other persons now or hereafter liable hereon, waive presentment, demand for payment, protest and notice of dishonor, and consent that the owner or holder hereof shall have the right, without notice, to deal in any way at any time (and from time to time) with any party hereto or to grant to any such party any extension(s) of time for payment of any of the indebtedness or any other indulgences or forbearances whatsoever, without in any way affecting the personal liability of any party hereunder. If this obligation, after default, is placed in the hands of an attorney for collection, the maker and all other parties liable hereunder will be obligated to pay the holder hereof a reasonable attorney's fee, not to exceed ten percent (10%) of the unpaid principal plus all accrued interest. Flight Technology, Inc. Patrick Carter Authorized Agent