HomeMy WebLinkAbout130-14 RESOLUTIONRESOLUTION NO. 130-14
A RESOLUTION TO GRANT MAYOR JORDAN THE AUTHORITY TO
NEGOTIATE AND TO APPROVE A UTILITY WORK AGREEMENT WITH
SOURCEGAS ARKANSAS, INC. IN THE AMOUNT NOT TO EXCEED
$39,804.79 FOR THE RELOCATION OF GAS MAINS AND FACILITIES
NECESSARY FOR THE SPRING STREET PARKING DECK PROJECT AND
TO APPROVE A PROJECT CONTINGENCY OF $8,000.00
WHEREAS, the Spring Street Parking Deck Project will require certain gas mains and
facilities belonging to SourceGas Arkansas, Inc. ("SourceGas") to be relocated; and
WHEREAS, Ordinance No. 5542, which was passed and approved on November 20,
2012, waives the requirement of formal bidding on "all such projects necessitated by any road
reconstruction or widening projects with SourceGas Arkansas, Inc. within Fayetteville until
December 31, 2016".
NOW, THEREFORE, 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
the granting of authority to Mayor Jordan to negotiate and sign a final utility work agreement
with SourceGas Arkansas, Inc., in an amount not to exceed $39,805.00 for the relocation of gas
mains and facilities necessary for the Spring Street Parking Deck Project, and further approves a
project contingency of $8,000.00.
PASSED and APPROVED this 15th day of July, 2014.
ATTEST:
By: e00iu,
SONDRA E. SMITH, City Clerk/Treasurer
``ovorrrrr�� t.
,NOts,./TRE #,
.Z1C'.c \T Y 0 ..6C;'.
_0; FAYETTEVILLE •
s 2 •. 7-J ',
. 76,.."PkANSP •��`�
Jeremy Pate
Submitted By
City of Fayetteville Item Review Form
2014-0286
Legistar File Number
July 15, 2014
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Action Required:
Development Services
Department
A resolution approving of an agreement with SourceGas for gas relocations related to the Spring
Street Municipal Parking Deck and approval of a 20% contingency.
Does this item have a cost?
$39,805.00
Yes
Cost of this request
4560.9560.5804.00
Account Number
11028.1203
Project Number
Budgeted Item?
Yes
Previous Ordinance or Resolution #
Original Contract Number:
Comments:
c4,- Terv.ig
` -ilio/i (e.&; o,
$6,639,754.60
Category or Project Budget
$1,225,228.95
Funds Used to Date
$5,374,720.65
Remaining Balance
Budget Adjustment Attached?
No
Spring St Municipal Parking Deck
Program or Project Name
Building Costs
Program or Project Category
Parking Deck Project Expenses
Fund Name
V20130812
CITY OF
S'aeritile
v
ARKANSAS
MEETING OF JULY 15, 2014
TO:
THRU:
FROM:
DATE:
SUBJECT:
Mayor and City Council
CITY COUNCIL AGENDA MEMO
Don Marr, Chief of Staff
Jeremy Pate, Development Services Director
Chris Brown, City Engineer OP
June 26, 2014
Spring Street Parking Deck -Agreement with SourceGas for Utility Line
Relocation on Spring and School due to Parking Deck Construction
RECOMMENDATION:
Staff recommends approval of a resolution to approve an agreement with SourceGas for
relocation of facilities they own along Spring Street and School Avenue that conflict with the
proposed parking deck, liner building, and associated street and drainage infrastructure. The
amount of the agreement is $39,804.79. The agreement obligates the City to pay the actual cost
of relocations; therefore, a contingency amount of 20% ($8,000) is also recommended.
BACKGROUND:
The City of Fayetteville is constructing a parking deck in the downtown area/entertainment
district on the northwest corner of School Avenue and Spring Street, adjacent to and southeast
of the Walton Arts Center (WAC) facility. The objective is to relieve current parking shortfalls
and to create supply in an area anticipated to see increased parking demand.
The parking deck and associated sidewalk, drainage, and street trees are in conflict with
multiple utilities on the site. City staff is working with each Design on the deck is nearing
completion, and the site preparation, demolition, and excavation package is out for bid. The gas
line adjacent to the deck will be in conflict with the excavation in some areas and will be under
the street trees for the entire frontage.
DISCUSSION:
SourceGas has presented a contract for relocation of their gas lines along Spring Street and
School Avenue in the estimated amount of $39,804.79. As noted in the contract, the City is
responsible for the full cost of the work, so the actual amount paid may be more or less than the
estimate. Staff requests approval of a 20% contingency to cover any costs that may be in
excess of the estimate.
BUDGET/STAFF IMPACT:
Mailing Address:
113 W. Mountain Street
Fayetteville, AR 72701
www.fayettevi I i e -a r. g ov
Funding for this work is coming from parking revenue bond proceeds and parking funds
budgeted for the project.
Attachments:
Proposed SourceGas Contract
Purchase Order Request
2
OFFICE OF THE
CITY ATTORNEY
TO:
DEPARTMENTAL CORRESPONDENCE
Mayor Jordan
City Council
CC: Kit Williams, City Attorney
FROM: Blake Pennington, Assistant City Attorney
DATE: June 30, 2014
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Patti Mulford
Paralegal
RE: Utility Work Agreement with SourceGas for Relocation of Gas Lines on
Spring Street Parking Deck Site
Some portions of the proposed utility work agreement with SourceGas are contrary to
City Policy IC -02 which details language that should and should not be included in City
contracts. If SourceGas is unwilling to modify the contract, as I suspect they probably
are, it is a policy decision by the administration and City Council whether to approve the
agreement.
In Section 1, the agreement requires the City to release SourceGas from any liability for
damage to city streets or lands arising out of performance of the work authorized by the
agreement. IC -2.8(1), regarding unacceptable contract language and provisions notes
that the City should not agree to hold harmless clauses typically because that could pierce
the city's sovereign immunity. However, in this case, because it is City owned property,
the City would be taking on full responsibility of fixing any damage SourceGas causes to
public property.
In Section 4, the agreement provides for interest at the rate of 10 percent per annum for
any invoices not paid within thirty days of receipt. IC -2.8(3) states that the City does not
agree to any interest or penalty for untimely payments.
Finally, Chris Brown noted that SourceGas refused to sign the proposed agreement prior
to approval by the Council and Mayor, which is contrary to IC -2.3. However, all of these
are policy decisions to be made by the Council and Mayor and can be approved even
with the language noted above that violates the policy, particularly since time is of the
essence with this project.
OFFICE OF THE
CITY ATTORNEY
QAAA4t v — AtAA.)/Vaalt,tbari
have ele-4 cdt O. 9 c ova
DEPARTMENTAL CORRESPONDENCE
TO: Mayor Jordan
City Council
CC: Don Marr, Chief of Staff
Paul Becker, Finance Director
Jeremy Pate, Development Services Director
Chris Brown, City Engineer
FROM: Kit Williams, City Attorney _/ �---
DATE: July 8, 2014
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Patti Mulford
Paralegal
RE: Replaced Resolution to move gas mains for Spring Street Parking
Deck
Further negotiations need to be conducted with SoureGas, Inc. over
the proper amount of compensation it deserves for the relocation of its gas
lines. The City believes that the $39,805.00 sought by Source Gas is too
high because a substantial portion of its mains are in the right of way and
so should be moved at the company's expense rather than the City's
expense.
We have amended the Resolution to grant Mayor Jordan and his staff
sufficient authority to continue the negotiations with SourceGas by placing
a "not to exceed" amount rather than just agreeing to this amount.
1
Q�nvsl (Li
RESOLUTION NO.
A RESOLUTION TO GRANT MAYOR JORDAN THE AUTHORITY TO
NEGOTIATE AND TO APPROVE A UTILITY WORK AGREEMENT WITH
SOURCEGAS ARKANSAS, INC. IN THE AMOUNT NOT TO EXCEED
$39,804.79 FOR THE RELOCATION OF GAS MAINS AND FACILITIES
NECESSARY FOR THE SPRING STREET PARKING DECK PROJECT AND
TO APPROVE A PROJECT CONTINGENCY OF $8,000.00
WHEREAS, the Spring Street Parking Deck Project will require certain gas mains and
facilities belonging to SourceGas Arkansas, Inc. ("SourceGas") to be relocated; and
WHEREAS, Ordinance No. 5542, which was passed and approved on November 20,
2012, waives the requirement of formal bidding on "all such projects necessitated by any road
reconstruction or widening projects with SourceGas Arkansas, Inc. within Fayetteville until
December 31, 2016".
NOW, THEREFORE, 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
the granting of authority to Mayor Jordan to negotiate and sign a final utility work agreement
with SourceGas Arkansas, Inc., in an amount not to exceed $39,805.00 for the relocation of gas
mains and facilities necessary for the Spring Street Parking Deck Project, and further approves a
project contingency of $8,000.00.
PASSED and APPROVED this 15th day of July, 2014.
APPROVED: ATTEST:
By: By:
LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer
DocuSign Envelope ID: 2A6A2952-BB48-4AB4-BBEB-1 FFA5055D010
Source Ga
s
Arkansas
UTILITY WORK AGREEMENT
(MUNICIPALITY)
Municipality: City of Fayetteville, AR
Municipality's Address: 113 W. Mountain St., Fayetteville, AR. 72701
Job Location: 229 N. School Ave., Fayetteville, AR 72701
This Utility Work Agreement ("Agreement") is made and entered into this L✓
day oft 1, , by and between City of Fayetteville (hereinafter referred to as
"Municipality"), and SourceGas Arkansas Inc. (hereinafter referred to as "SourceGas").
WHEREAS, Municipality proposes to make certain improvements at the location
designated above, and as a result of such improvements, SourceGas must adjust,
enhance, locate, observe, and/or relocate certain of its existing facilities, or construct
additional facilities; and
WHEREAS, in connection with Municipality's proposed improvements,
Municipality wishes SourceGas to do the following:
Relocate 500' of existing 3" Polyethylene (P.E.) plastic pipe due to the City of
Fayetteville's construction of the "Entertainment District Parking Deck" on the southeast
portion of PARCEL ID 765-01733-000 of the City of Fayetteville, Board of Trustees, U of
A (Walton Arts Center) property. The project will start at GPS -94.164269, 36.065626
on the west side of School Ave. and travel southward to the intersection with Spring St.
at GPS -94.164297, 36.064802. From this point it will travel westward along the north
side of Spring St., ending at GPS -94.164864, 36.064804 and will tie in to existing 6 -
inch P.E. gas line.
(hereinafter referred to as the "Work"); and
WHEREAS, such. Work is shown in detail in SourceGas' plans-, sketches,
estimate of cost, and specifications (when applicable), which are attached to this
Agreement and made a part hereof; and
WHEREAS, Municipality agrees to pay for the cost of such Work to the extent
herein agreed upon.
1
DocuSign Envelope ID: 2A6A2952-81348-4AB4-BBEB-1 FFA5055D010
Source Gas
Arkansas
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND OTHER
VALUABLE CONSIDERATION HEREIN ACKNOWLEDGED, MUNICIPALITY AND
SOURCEGAS AGREE AS FOLLOWS:
1. Where applicable hereunder by reason of new utility occupancy or
crossing of Municipality's property, Municipality hereby grants to SourceGas an
easement or license to install and operate utility facilities on or across Municipality's
property as shown on the approved plans or sketch maps attached hereto and made a
part hereof. Prior to SourceGas beginning the Work, Municipality will, at no cost to
SourceGas, furnish SourceGas with all necessary easements, rights of way and
permits. Those easements, rights of way and permits shall release SourceGas from
any and all claims for damage done to streets, land, fences, and crops arising out of the
performance of the Work.
2. Where applicable hereunder by reason of new construction on existing
utility rights of way, SourceGas hereby grants to Municipality the right to use for
Municipality's purposes the lands within the limits of the improvement project limits on or
across which SourceGas holds a valid property interest antedating Municipality's rights
which were subsequently acquired in the same lands, and which property rights
SourceGas shall retain so long as SourceGas, its successors or assigns continues such
use and occupancy and does not abandon, and thereby release, such property interest
to Municipality through removal of facilities in performing the Work or by subsequent
removal of facilities for SourceGas' convenience; and Municipality hereby agrees that
SourceGas, by granting said right and by said continued joint use and occupancy, does
not waive any future claim for reimbursement for any costs as may be eligible for
reimbursement by reason of such prior property interest, nor does SourceGas waive
any other legal or property right held under the laws or Constitution of the State of
Arkansas 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 Municipality or SourceGas in the area jointly occupied or used under
either or both Paragraphs 1 or 2 of this Agreement will disturb, detrimentally affect
,L____
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 Municipality or of SourceGas, 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.
2
DocuSign Envelope ID: 2A6A2952-BB48-4AB4-BBEB-1FFA5055D010
Sourcda
s
Arkansas
4. Municipality will p ceGas 80% of the actual cost of the Work. The
estimated cost of the Work is 39 804.79 After it has completed the Work, SourceGas
will bill Municipality fo 400 of the ac ua cost of the Work. Municipality shall pay such
invoice within 30 days o Municipality's receipt of the invoice. If Municipality fails to pay
any such invoice within 30 days of receipt, the amount due under the invoice shall
accrue interest at the rate of 10 per cent per annum until paid.
5. SourceGas will perform the Work, as described on the first page of this
Agreement. SourceGas will endeavor to perform the Work within a reasonable time
period, subject to applicable laws, rules and regulations of governmental authorities,
and subject to any delay occasioned by lack of right of way, availability of materials and
supplies, force majeure or events or conditions of whatsoever nature reasonably
beyond SourceGas' control, and further conditioned upon the receipt of all required
approvals and consents in form and substance acceptable to SourceGas. SourceGas
shall not be obligated to commence the Work unless and until, at no cost to SourceGas,
all necessary easements and rights of way have been executed, acknowledged and
delivered to SourceGas in a form acceptable to SourceGas.
6. Title to and ownership of facilities which are the subject of the Work shall
forever be and remain exclusively and unconditionally vested in SourceGas.
Municipality understands, acknowledges and agrees that Municipality shall have no title
to, interest in, or ownership of those facilities.
7. it is mutually agreed by the parties hereto that the provisions of this
Agreement pertaining to 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 this Agreement, and shall be perpetually binding upon each
party, and its representatives, successors and assigns.
8. unicipality and SourceGas acknowledge that there are no agreements or
understandings, either written or oral, between the parties related to the Work, other
than as set forth in this Agreement, and that this Agreement (including any attachments
hereto) contains the entire agreement between the parties regarding the Work.
9. This Agreement shall be governed in accordance with the laws of the
State of Arkansas, the rules and regulations of the Arkansas Public Service
3
DocuSign Envelope ID: 2A6A2952-BB48-4AB4-BBEB-1 FFA5055D010
Source
was
Arkansas
Commission, and the Tariff of SourceGas. In the event of a conflict between this
Agreement and any such laws, rules, regulations or Tariff, such laws, rules, regulations
or Tariff shall control.
10. In the event SourceGas is required to initiate litigation to enforce the terms
and conditions of this Agreement, then SourceGas shall have the right to recover from
Municipality SourceGas' costs and expenses of such litigation, including reasonable
attorney fees.
11. Municipality acknowledges that it has been afforded an opportunity to
have its attorney review and explain the terms of this Agreement.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate by their duly authorized representatives on the date stated above.
SOURCEGAS ARKANSAS INC.
B
,--DocuSigned by:
as8Whitefoot
CITY OF FA i'TTEVILLE
its: Sr. Vice President Operations Its:
r—DS
•
r -`--DDS
e ---DS
Jw
/—DS
DocuSign Envelope ID: 2A6A2952-BB48-4AB4-BBEB-1 FFA5055D010
RESOLUTION NO. 130-14
A RESOLUTION TO GRANT MAYOR JORDAN THE AUTHORITY TO
NEGOTIATE AND TO APPROVE A UTILITY WORK AGREEMENT WITEI
SOURCEGAS ARKANSAS, INC. IN T1 -IE AMOUNT NOT TO EXCEED
$39,804.79 FOR THE RELOCATION OF GAS MAINS AND FACILITIES
NECESSARY FOR THE SPRING STREET PARKING DECK PROJECT AND
TO APPROVE A PROJECT CONTINGENCY OF $8,000.00
WHEREAS, the Spring Street Parking Deck Project will require certain gas mains and
facilities belonging to SourceGas Arkansas, inc. ("Source(aas") to be relocated; and
WHEREAS, Ordinance No. 5542, which was passed and approved on November 20,
2012, waives the requirement of formal bidding on "all such projects necessitated by any road
reconstruction or widening projects with SourceGas Arkansas, Inc. within Fayetteville until
December 31, 2016".
NOW, THEREFORE, 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
the granting of authority to Mayor Jordan to negotiate and sign a final utility work agreement
with SourceGas Arkansas, Inc., in an amount not to exceed $39,805.00 for the relocation or gas
mains and facilities necessary for the Spring Street Parking Deck Project, and further approves a
project contingency of $8,000.00.
PASSED and APPROVED this 15th day ofJuly, 2014.
ATTEST:
By: / /k1L0, t.. , jL,
SONDRA E. SMITH, City Clerk/Treasurer
ntirtir
++
♦ FK
>:.
— �• f AYI f I E VIt.I f- • •
lJ��..44lciii�i+� �,``
... _....................
City Of Fayetteville - Purchase Order (PO) Request'.
(Not a Purchase Order)
All purchases under $2500 sha I be used on a P -Card unless medical or 1099 service related. (Call x256 with questions)
All PO Request shall be scanned `to'the Purchasing e-mail: Purchasing@ci.fayetteville.ar.us,
Requisition No.:
P.O Number:
Date:
6/26/2014
Expected Delivery Date:
Vendor#:
840
Vendor Name:
SourceGas
Mail
Yes: XX
No:
Address:
PO Box 13288
Fob Point:
Taxable
Yes:
No: XX
Quotes Attached
Yes:
No: XX
City:
Fayetteville
State:
AR
Zip Code:
72703
Ship to code:
Division Head Approval:
Requester:
Chris Brown
Requeste s Employee #:
2695
Extension:
575-8207
Item
1
2
3
4
5
6
7
8
9
10
Description
Quantity
Unit of Issue
Unit Cost
Extended Cost
Account Numbers
Project/Subproject #
Inventory #
Fixed Asset #
Building Costs
1
39,805.00
$39,805.00
4560.9560.5804.00
11028.1201
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Shipping/Handling
Lot
$0.00
Special Instructions:
Approvals:
Mayor:
Finance & Internal Services Director:
Dispatch Manager:
Department Director:
Budget Manager:
Utilities Manager:
Subtotal:
Tax:
Total:
$39,805.00
$39,805.00
Purchasing Manager:
IT Manager:
Other:
Revised 1/2/2008
RESOLUTION NO.
A SOLUTION TO APPROVE A UTILITY WORK AGREEM . T WITH
SO CEGAS ARKANSAS, INC. IN THE AMOUNT OF $39,804 9 FOR THE
RELO • TION OF GAS MAINS AND FACILITIES NECESS RY FOR THE
SPRING TREET PARKING DECK PROJECT, AND • APPROVE A
PROJECT `^QNTINGENCY OF $8,000.00
WHEREAS, the S' ring Street Parking Deck Projec will require certain gas mains and
facilities belonging to Source as Arkansas, Inc. ("Source : s") to be relocated; and
WHEREAS, Ordinance No. 5542, which w.: passed and approved on November 20,
2012, waives the requirement of fo al bidding o e "all such projects necessitated by any road
reconstruction or widening projects\ith Sour Gas Arkansas, Inc. within Fayetteville until
December 31, 2016".
NOW, THEREFORE, BE IT
CITY OF FAYETTEVILLE, ARKA AS:
OLVED BY THE CITY COUNCIL OF THE
Section 1. That the City Co cil of the Ci of Fayetteville, Arkansas hereby approves a
utility work agreement with Sou - eGas Arkansas, c., a copy of which is attached as Exhibit
"A", in the amount of $39,805. 0 for the relocation o gas mains and facilities necessary for the
Spring Street Parking Deck P r. ject, and further approve a project contingency of $8,000.00.
PASSED and ' PROVED this 15th day of July, 2014.
APPROVED: ATTEST:
By: By:
L 1 NELD JORDAN, Mayor SONDRA E. SMITH, ity Clerk/Treasurer
rt
e Gas
Arkansas
UTILITY WORK AGREEMENT
(MUNICIPALITY)
Municipality: `,. City of Fayetteville, AR
Municipality's Address: 113 W. Mountain St., Fayetteville, AR. 72701
Job Location: 229 N. School Ave., Fayetteville, AR 72701
This Utility Work grernent ("Agreement") is made ;and entered into this
day of , , by and between City of Fayetteville (hereinafter referred to as
"Municipality"), and SourceGa 'Arkansas Inc. (hereinafter referred to as "SourceGas").
,
WHEREAS, Municipality proposes to make certain improvements at the location
designated above, and as a result ossuch improvements, SourceGas must adjust,
enhance, locate, observe, and/or relocate certair`of its existing facilities, or construct
additional facilities; and
WHEREAS, in connection with Municipality's proposed improvements,
Municipality wishes SourceGas to do the;folloW�ing:
Relocate 500' of existing 3" Polyethylene (P.E.) pla$,tic pipe due to the City of
Fayetteville's construction of the "Entertainment District Parking Deck" on the southeast
portion of PARCEL ID 765-01733-000 of the City of Fayetteville, Board of Trustees, U of
A (Walton Arts Center) property. The project will start atPS -94.164269, 36.065626
on the west side of School Ave.«and travel southward to the intersection with Spring St.
at GPS -94.164297, 36.0648Q2. From this point it will travel �ivestward along the north
side of Spring St., ending at,GPS -94.164864, 36.064804 and SII tie in to existing 6 -
inch P.E. gas line. r'
(hereinafter referred to a the "Work"); and
WHEREAS, such Work is shown in detail in SourceGas' plans, sketches,
estimate of cost, aril specifications (when applicable), which are attached* this
Agreement and made a part hereof; and ''.:
WHEREAS, Municipality agrees to pay for the cost of such Work to the extent
herein agreed/upon.
Jrc6- Gas
Arkansas
NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND OT,H'ER
VALUABLE CONSIDERATION HEREIN ACKNOWLEDGED, MUNICIPALITY >AND
SOURCEGAS AGREE AS FOLLOWS:
1.y Where applicable hereunder by reason of new utility occupancy or
crossing of Municipality's property, Municipality hereby grants to SourceGas an
easement or license to install and operate utility facilities on or across Municipality's
property as show on the approved plans or sketch maps attached hereto and made a
part hereof. Prior totSourceGas beginning the Work, Municipality will, at no cost to
SourceGas, furnish SourceGas with all necessary easements, rights of way and
permits. Those easements, rights of way and permits shall release SourceGas from
any and all claims for damage done to streets, land, fences, and crops arising out of the
performance of the Work.
2. Where applicable hereunder by reason of new construction on existing
utility rights of way, SourceGas hereby grantsto Municipality the right to use for
Municipality's purposes the lands within the limits of the improvement project limits on or
across which SourceGas holds a validproperty interest antedating Municipality's rights
which were subsequently acquired in th'e`same lands, and which property rights
SourceGas shall retain so long as SoirceGas, its successors or assigns continues such
use and occupancy and does not abandon, and thereby release, such property interest
to Municipality through removal of facilities in performing the Work or by subsequent
removal of facilities for SourceGas' convenience;tand Municipality hereby agrees that
SourceGas, by granting said right and by said continued joint use and occupancy, does
not waive any future claim for reimbursement for any `costs as may be eligible for
reimbursement by reason of such prior property interesf,' nor does SourceGas waive
any other legal or property right held under the laws or Constitution of the State of
Arkansas or the UnitedStates.
3. In the event that future construction, reconstruction, expansion, relocation,
rehabilitation, betterment, maintenance, or other work on the facilities owned and
operated by either Municipality or SourceGas in the area jointly occupied or used under
either or both Paragraphs 1 or 2 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 Municipality or of SourceGas, 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.
2
Municipality will pay SourceGas 100% of the actual cost of th Work. The
estina\ted cost of the Work is $39,804.79. After it has completed the Wo k, SourceGas
will bill'Municipality for 100% of the actual cost of the Work. Municipals shall pay such
invoice Within 30 days of Municipality's receipt of the invoice. If Municipality fails to pay
any such invoice within 30 days of receipt, the amount due under/the invoice shall
accrue interest at the rate of 10 per cent per annum until paid.
5. SouroeGas will perform the Work, as descrl6ed on the first page of this
Agreement. Sources will endeavor to perform the Vlfbrk within a reasonable time
period, subject to applicable laws, rules and regulatioris of governmental authorities,
and subject to any delay occasioned by lack of righ/of way, availability of materials and
supplies, force majeure or byents or conditions of Whatsoever nature reasonably
beyond SourceGas' controlgnd further conditiatied upon the receipt of all required
approvals and consents in formand substanc07 acceptable to SourceGas. SourceGas
shall not be obligated to commerrrse the Work unless and until, at no cost to SourceGas,
all necessary easements and right hof way/have been executed, acknowledged and
delivered to SourceGas in a form aco ptable to SourceGas.
6. Title to and ownership' of faciljt es which are the subject of the Work shall
forever be and remain exclusively'and uncontionally vested in SourceGas.
Municipality understands, ackngvvledges and agrees that Municipality shall have no title
to, interest in, or ownership of/those facilities.
7. It is mutually agreed by the parties heretofkt the provisions of this
Agreement pertaining tc "property rights, right of way occupgncy permission, access for
servicing when applicable, and joint use of rights of way sha kcontinue in full force and
effect from the date of this Agreement, and shall be perpetuallbinding upon each
party, and its representatives, successors and assigns.
_t,
8. Municipality and SourceGas acknowledge that there are no agreements or
understanding's, either written or oral, between the parties related to the Work, other
than as set forth in this Agreement, and that this Agreement (including anyattachments
hereto) contains the entire agreement between the parties regarding the Wolk,.,
9. This Agreement shall be governed in accordance with the laws of the
State of Arkansas, the rules and regulations of the Arkansas Public Service
Source, Gas
Arkansas
Commission, and the Tariff of SourceGas. In the event of a conflict between this /
Agreement and any such laws, rules, regulations or Tariff, such laws, rules, regulations
or Tarifffshall control.
10. Ihthe event SourceGas is required to initiate litigation to'enforce the terms
and conditions of this Agreement, then SourceGas shall have the ,right to recover from
Municipality SourceGas' costs and expenses of such litigation, including reasonable
attorney fees.
r'
11. Municipality acknowledges that it has been' afforded an opportunity to
have its attorney review and explain the terms of this Agreement.
IN WITNESS WHEREOF, theparties hereto have caused this Agreement to be
executed in duplicate by their duly authorized representatives on the date stated above.
SOURCEGAS ARKANSAS INC.
CITY OF FAYETTEVILLE
By: Bye
Douglas Whitefoot ; s
Its: Sr. Vice President Operations
Its: