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Home My WebLink About153-19 RESOLUTIONOF FAYETrE ti ! JlllL ul 4R kA NS PS 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 153-19 File Number: 2019-0191 BLACK HILLS ENERGY: A RESOLUTION TO APPROVE A LIMITED SERVICE AGREEMENT WITH BLACK HILLS ENERGY IN THE AMOUNT OF $10,948.00 PLUS APPLICABLE TAXES TO INSTALL A NATURAL GAS METER AND BYPASS VALVE FOR THE THERMAL DRYING UNIT AT THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE 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 a Limited Service agreement with Black Hills Energy in the amount of $10,948.00 plus applicable taxes to install a natural gas meter and bypass valve for the thermal drying unit at the Biosolids Management Site. 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. PASSED and APPROVED on 7/2/2019 Page 1 Attest: yC LF Sondra E. Smith, City Clerk Treure' C/T� = cn F -n •y 9 << ' City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0191 Agenda Date: 7/2/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 5 BLACK HILLS ENERGY: A RESOLUTION TO APPROVE A LIMITED SERVICE AGREEMENT WITH BLACK HILLS ENERGY IN THE AMOUNT OF $10,948.00 PLUS APPLICABLE TAXES TO INSTALL A NATURAL GAS METER AND BYPASS VALVE FOR THE THERMAL DRYING UNIT AT THE BIOSOLIDS MANAGEMENT SITE, AND TO APPROVE 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 a Limited Service agreement with Black Hills Energy in the amount of $10,948.00 plus applicable taxes to install a natural gas meter and bypass valve for the thermal drying unit at the Biosolids Management Site. 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. City of Fayetteville, Arkansas Page 1 Printed on 7/3/2019 Tim Nyander Submitted By City of Fayetteville Staff Review Form 2019-0191 Legistar File ID 7/2/2019 City Council Meeting Date - Agenda Item only N/A for Non -Agenda Item 6/4/2019 WASTEWATER TREATMENT (730) Submitted Date Division / Department Action Recommendation: Staff recommends the approval of a Limited Service Agreement with Black Hills Energy in the amount of $10,948.00 plus applicable taxes to install a natural gas meter and bypass valve for the thermal drying unit at the Biosolids Management Site, and approval of a budget adjustment. 5400.730.5800-5414.00 Account Number 02069.1 Project Number Budget Impact: Water and Sewer Fund Plant Pumps and Equipment - WWTP Project Title Budgeted Item? Yes Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? Yes Budget Adjustment Remaining Budget $ 980,773.00 $ 975,488.87 $ 5,284.13 $ 12,015.43 $ 12,016.00 $ 5,284.70 V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Original Contract Number: Approval Date: Comments: Taxes are estimated at $1,067.43 for a total of $12,015.43. CITY OF FAYETTEVILLE %PF ARKANSAS MEETING OF JULY 2, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff FROM: Tim Nyander, Utilities Director CITY COUNCIL MEMO DATE: June 4, 2019 SUBJECT: Limited Service Agreement with Black Hills Energy for Installation of a Natural Gas Submeter and Bypass Loop for the Thermal Dryer at the Biosolids Management Site RECOMMENDATION: Staff recommends approval of the installation of a natural gas submeter and bypass loop at the Biosolids Management Site by Black Hills Energy in the amount of $10,948.00 plus applicable taxes, and approval of a budget adjustment. BACKGROUND: The thermal dryer located at the Noland wastewater treatment facility's Biosolids Management Site represents a major single -point consumption of natural gas for city -owned utilities. City staff have pointed out the value of isolating the thermal dryer's gas consumption for better evaluating city natural gas usage and energy reporting. The submeter would allow for a helpful measure of monthly, seasonal, and annual natural gas consumption. DISCUSSION: The Limited Service Agreement with Black Hills Energy includes the purchase and installation of a Mercury Mini submeter unit and associated equipment in the amount of $5,960.00. The proposed agreement also includes the purchase and installation of a bypass loop in the amount of $4,988.00 to maintain uninterrupted feed of natural gas to the dryer during times of submeter maintenance, inspection, testing and/or replacement. The submeter and bypass loop have a total cost of $10,948.00 plus applicable taxes. BUDGET/STAFF IMPACT: A budget adjustment from capital project No. 14018 Sanitary Sewer Rehabilitation — Ramsey and Overcrest will be necessary to fund this purchase and installation of the submeter and bypass loop. The budgeted funds being transferred is cost savings left over after completing the sewer rehabilitation project. Attachments: Limited Service Agreement Budget Adjustment Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Black Hills Energy Limited Service Agreement Date: June 3, 2019 Name: Fayetteville Wastewater Treatment Plant Attn: Jerry Genz Address: 16464 Wyman Rd. City/State/Zip: Fayetteville, AR 72701 Scope of Services: Please consider the following a proposal from Black Hills Energy ("Company") for the Fayetteville Wastewater Treatment Plant ("Customer") for the Service described below. Service/Cost Company agrees to provide services as requested by Customer at the costs set forth below ("Service"): Scone of Service(s): Install a Mercury Mini unit and associated equipment to correct the uncorrected meter volumes by accounting for temperature and pressure Option 1: Build bypass loop for meter testing in order to maintain gas flow to building if meter needs to be tested or replaced Contineencies 1. Customer will obtain all necessary permits Cost (not includinE taxes): X Install Mercury Mini unit and associated equipment - $5,960 plus taxes during regular hours X Option 1: $4,988 plus taxes during regular hours Regular hours are defined as 8:00 AM — 5:00 PM, Monday — Friday. Please initial by "Install Mercury Mini" and/or "Option 1" to select services you agree to purchase. Upon completion of the Service (so long as any such Service does not last longer than one month, in which case the Company will submit a monthly invoice), Company will submit an invoice to Customer for the amount in excess of the above estimate. Customer shall make full payment of this amount to Company within seven (7) days after receipt of payment. Company and Customer agree that each assumes full responsibility and liability for its own negligence in the operation of facilities owned by it and the carrying out of its roles and responsibilities related to this Agreement and the facilities that are the subject of this Agreement. COMPANY MAKES NO REPRESENTATIONS, COVENANTS, WARRANTIES, OR GUARANTEES, (EXPRESS, IMPLIED, STATUTORY, OR OTHER) OTHER THAN THOSE SPECIFICALLY SET FORTH HEREIN, IF ANY, INCLUDING BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT TO THE SERVICES OR OTHER DELIVERABLES TO BE PROVIDED HEREUNDER. Without limiting the foregoing, no implied warranty arising by usage of trade, course of dealing or course of performance is given by Company to Customer or will arise by or in connection with this Agreement or the parties conduct in relation hereto or to each other. Company shall not be responsible for the acts or omissions of the Customer, contractor, subcontractor or supplier, or of any contractor's agents or employees or any other person's (except Company's own employees or contractors) furnishing or performing any work or services, the conditions of any of Customer's properties or facilities or for any decisions or interpretations of Customer regarding the Customer's properties and/or facilities. Notwithstanding anything in this Agreement to the contrary, if prior to the completion date, any portion of the workmanship of Company included in the Services is found to be not in conformance with this Agreement ("Defective Work"), Customer shall promptly notify Company in writing. Unless Customer provides written acceptance of the condition, Company shall promptly correct the Defective Work at its sole expense. Neither party shall be liable to the other for any special, indirect or consequential damages, including, without limitation, loss of profit, loss of product, or loss of value, arising out of the performance of this Agreement, regardless of fault or negligence. Please indicate your acceptance of this Agreement by signing below and returning this form to me. We appreciate the opportunity to provide this Service to you. If you have any questions regarding this Proposal, please feel free to contact me at the number listed below. Sincerely, Marshall Moody Customer Solutions Representative (479)601-5257 ACCEPTED A AG D T DAY OF JlA�, 2019. BY: J NAME: L10 TITLE: M City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 WASTEWATER TREATMENT (730) 2019 Requestor: Cheryl Partain BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: A Budget Adjustment is needed in the Plant Pumps and Equipment - WWTP for a service agreement with Black Hills Energy to install a natural gas meter and bypass valve for the thermal drying unit at the Biosolids Management Site. Budgeted funds from the completed Sanitary Sewer Rehabilitation -Ramsey and Overcrest project will be transferred to this project to cover the cost of this item. The budgeted funds being transferred are cost savings after completing the Sanitary Sewer Rehabilitation -Ramsey and Overcrest project. COUNCIL DATE: 7/2/2019 LEGISTAR FILE ID#: 2019-0191 Lilk RutdL 6/4/2019 2:50 PM Budget Director Date TYPE: JOURNAL #: RESOLUTION/ORDINANCE I GLDATE: CHKD/POSTED: TOTAL Account Number - - Increase / (Decrease) Expense Revenue Proiect.Sub# Project Sub.Detl AT x.20190430 Account Name 5400.730.5800-5414.00 12,016 - 02069 1 EX Plant Equipment Maintenance - Plant Eqi 5400.720.5700-5815.00 (12,016) - 14018 1 EX Sewer Improvements - Sewer ImprovemE H:\Budget Adjustments\2019_Budget\City Council\07-02-2019\2019-0191 BA Black Hills Energy 1 of 1