Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
297-20 RESOLUTION
113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 297-20 File Number: 2020-0942 SOUTHWESTERN ELECTRIC POWER COMPANY: A RESOLUTION TO APPROVE A MEMORANDUM OF AGREEMENT WITH SOUTHWESTERN ELECTRIC POWER COMPANY TO PROVIDE AT ITS OWN COSTS ALL MATERIALS AND LABOR NEEDED TO MOVE THE OVERHEAD ELECTRICAL SERVICE TO UNDERGROUND SERVICE ALONG WEST AVENUE TO SATISFY ANY AND ALL THE DAMAGES THE CITY SUFFERED TO ELECTRICAL EQUIPMENT IN CITY HALL AND THE POLICE STATION FROM FAULTY TRANSFORMER VOLTAGE SURGES WHEREAS, in mid -January 10 of2020, large and uncontrolled power surges from SWEPCO transformer(s) caused substantial damages primarily to electronic equipment in City Hall and the Police Station as well as long term outages from faulty transformer(s) that resulted in damages of about $100,000.00 ; and WHEREAS, after months of negotiation culminating with the City Attorney sending SWEPCO a draft civil Complaint outlining what we believed was a strong basis establishing SWEPCO's liability and our proof of damages, SWEPCO agreed to resolve this dispute without acknowledging liability; and WHEREAS, SWEPCO has now agreed to furnish, in lieu of any cash payment for the claim, all of the materials and labor to change SWEPCO's current overhead electrical service including all existing relevant utility poles to an underground electrical service along West Avenue to save the City the substantial costs to underground the electrical services as part of the Cultural Arts Corridor Project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Page 1 Printed on 1212120 Resolution. 297-20 File Number: 2020-0942 Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign the Memorandum of Agreement with Southwestern Electric Power Company for its furnishing at its own costs all materials and labor associated with moving the overheard electrical services to underground along West Avenue in full satisfaction of any and all damages suffered by the City during the January transformer problem for which SWEPCO still denies any liability.. PASSED and APPROVED on 12/1/2020 Attest: K rrrrrr��i FAYE1TEVILLE .�' Kara Paxton, City Clerk Treasurq ; ANS i�-F;NG `QN� CU���� Page 2 Printed on 12MW City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 } Text File - File Number: 2020-0942 Agenda Date: 12/1/2020 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A.3 SOUTHWESTERN ELECTRIC POWER COMPANY: A RESOLUTION TO APPROVE A MEMORANDUM OF AGREEMENT WITH SOUTHWESTERN ELECTRIC POWER COMPANY TO PROVIDE AT ITS OWN COSTS ALL MATERIALS AND LABOR NEEDED TO MOVE THE OVERHEAD ELECTRICAL SERVICE TO UNDERGROUND SERVICE ALONG WEST AVENUE TO SATISFY ANY AND ALL THE DAMAGES THE CITY SUFFERED TO ELECTRICAL EQUIPMENT IN CITY HALL AND THE POLICE STATION FROM FAULTY TRANSFORMER VOLTAGE SURGES WHEREAS, in mid -January 10 of2020, large and uncontrolled power surges from SWEPCO transformers) caused substantial damages primarily to electronic equipment in City Hall and the Police Station as well as long term outages from faulty transformer(s) that resulted in damages of about $100,000.00 ; and WHEREAS, after months of negotiation culminating with the City Attorney sending SWEPCO a draft civil Complaint outlining what we believed was a strong basis establishing SWEPCO's liability and our proof of damages, SWEPCO agreed to resolve this dispute without acknowledging liability; and WHEREAS, SWEPCO has now agreed to furnish, in lieu of any cash payment for the claim, all of the materials and labor to change SWEPCO's current overhead electrical service including all existing relevant utility poles to an underground electrical service along West Avenue to save the City the substantial costs to underground the electrical services as part of the Cultural Arts Corridor Project. 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 authorizes Mayor Jordan to sign the Memorandum of Agreement with Southwestern Electric Power Company for its furnishing at its own costs all materials and labor associated with moving the overheard electrical services to underground along West Avenue in full satisfaction of any and all damages suffered by the City during the January transformer problem for which SWEPCO still denies any liability.. City of Fayetteville, Arkansas Page 1 Printed on 121212020 City of Fayetteville Staff Review Form 2020-0942 Legistar File ID 12/1/2020 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Wade Abernathy 11/4/2020 FACILITIES MANAGEMENT (140) Submitted By Submitted Date Division / Department Action Recommendation: Adopt a resolution to approve a settlement agreement with Southwestern Electric Power Company to provide materials and labor to change the overhead service to underground services along west avenue associated with the Cultural Arts Corridor Project valued at $110,000 to offset damages valued at $97,499.73 at City Hall and the Police Building that resulted from a faulty transformer. Budget Impact: N/A N/A Account Number N/A Project Number Budgeted Item? NA Current Budget Funds Obligated Current Balance Does item have a cost? NA Item Cost Budget Adjustment Attached? NA Budget Adjustment Fund N/A Project Title Remaining Budget S V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF DECEMBER 1, 2020 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff Paul Becker, Chief Financial Officer Kit Williams, City Attorney CITY COUNCIL MEMO FROM: Wade Abernathy, Director Bond and Construction Projects DATE: November 4, 2020 SUBJECT: Resolution to approve a settlement agreement with Southwestern Electric Power Company RECOMMENDATION: Staff recommends approval of the settlement agreement and the Mayor's signature on the Memorandum of Agreement that will direct SWEPCO to provide labor and materials to change the overhead electrical services to underground electrical services along west avenue associated with the cultural arts corridor project to offset damages to equipment at City Hall and the Police building that resulted from a faulty transformer. BACKGROUND: SWEPCO provides electrical services for City Hall and Police Building. The power is supplied thru a transformer located at the north west corner of the Police Building. DISCUSSION: January 2021, IT reported voltage fluctuation readings on their server monitors. That same time, Facilities inspected panels and breakers serving City Hall. It was determined those were good, which prompted scheduling SWEPCO to investigate the transformer. Jan 9m SWEPCO inspected the transformer and reported no issues. Jan 10th, Major power surge events. Those events along with SWEPCO repair attempts damaged electrical systems and equipment in City Hall and Police Building. Final value $97,499.73. Feb. 7t'', Staff reached out to SWEPCO with potential claim for damaged equipment. March 3'd, SWEPCO initial denial of claim. April, Kit Williams drafted claim letter and sent to SWEPCO. June, SWEPCO regional managers met with staff and expressed their apologies for how this has been handled and wanted to work together to find resolution. June, with approval from Admin, and City Attorney, Staff approached SWEPCO about moving the overhead service to underground, in lieu of taking payment for the claim. A value of $110,000. SWEPCO was amiable to those terms. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 August, Kit Williams worked with SWEPCO on the Memorandum of Agreement that is attached for the Mayor's signature. BUDGET/STAFF IMPACT: N/A Attachments: Memorandum of Agreement Arts Corridor Underground Service Plans Kit Williams Claim letter to SWEPCO Damages MEMORANDUM OF AGREEMENT Comes now Southwestern Electric Power Company and the City of Fayetteville, Arkansas and hereby agree as follows: The City of Fayetteville agrees to forgo and refrain from any further attempt to collect any damages it believes it may have suffered to its equipment, any repair or replacement costs, any employee labor costs or any other unspecified damage costs for an incident occurring in early to mid -January of 2020 involving the City of Administration Building and Police Station including the Emergency Dispatch Center in exchange for Southwestern Electric Power Company's agreement to place 15 spans of overheard power lines underground, place ground -mounted enclosures as necessary and relocate and refeed remaining overhead poles as necessary as further described below. Upon SWEPCO satisfactorily completing this project the City of Fayetteville releases SWEPCO for any and all damages or claims Fayetteville could have regarding the January 2020 incident. Should there be any design changes or after hours work required by SWEPCO, there could be additional costs to the city. SWEPCO contends that there was no negligence on their part that caused the damage to the City's facilities. The Southwestern Electric Power Company, in exchange for the City of Fayetteville's release of any and all claims and damages related to transformer issues affecting the City Administration Building and Police Station occurring in early to mid -January of 2020, agrees to place 16 spans of overhead power lines underground, place ground -mounted enclosures as necessary, and relocate and refeed remaining overhead poles as necessary at no cost to the City of Fayetteville beyond its release of all claims related to the January 2020 incident. Southwestern Electric Power Company's agreement to work on the West Avenue project between Meadow and Mountain Streets is more specifically described below (see attached construction plans): Due to the cost and unavailability of an easement, the City of Fayetteville has requested and SWEPCO has agreed to place the current overhead electric distribution facilities underground and within City right-of-way from Meadow to Mountain along West Avenue. Should the SWEPCO underground facilities be damaged, the damaging party will reimburse SWEPCO for the repairs, which will include any damage to the street, sidewalk, or other infrastructure. Should SWEPCO's maintenance of the SWEPCO underground facilities damage the street, sidewalk, or other infrastructure, SWEPCO will repair at its cost any standard concrete or asphalt paved sidewalk or street surfaces. Specialty paving or landscaping will be repaired in a manner mutually acceptable to SWEPCO and the City; additional costs beyond that for repair with standard materials will be borne by the City (when performing work in these areas SWEPCO will use its best effort to minimize the amount of disturbance and damage to the landscape, specialty paving or other infrastructure). Should the City require SWEPCO to relocate these underground facilities, the City will reimburse SWEPCO for the full cost relocation. In agreement with all the terms, conditions, commitments and promises above, we affirm we are properly authorized signatories of the Company or City and that our signatures bind SWEPCO or the City of Fayetteville. SOUTHWESTERN ELECTRIC POWER COMPANY Printed Name: VrNe-&%J .S� d Title:VP .Oi t- oy+ C)A Date signed: po%ie- /�ZD CITY OF FAYETTEVILLE, AR'ANSAS�. Lionod,Wrdan, Mayor ```JAIAII1IfffFfrr ATTEST: `.��\%,`-1 GL GRT Y T RFy'•• Kara Paxton: City Clerk- TreasurQ ' 9�$,A S •., •NSA . • .,ty ���•• Date signed: ! ,c �0 i i CO 1,N,`. SOUTHWESTERN ELECTRIC POWEP COMPANY ♦ 3 A unit of Amerkan Elecfrk Power fE, Ifr fit 7eW�- 3 t 3or ONG� MEADOW ST -- a m } '- -i C _. m DEMO PLANS • INSTALL NEW POLE AND ASSOCIATED HARDWARE REMOVE POLE AND ASSOCIATED HARDWARE -III- REMOVE 3R PRIMARY OVERHEAD CONDUCTORS - 3 - REMOVE SECONDARY OVERHEAD CONDUCTORS - IN - REMOVE IR PRIMARY OVERHEAD CONDUCTORS -OHG- REMOVE OVERHEAD GUY WIRE NOTE: ITEMS IN GREEN ARE EXISTING FACILITIES THAT WILL REMAIN IN PUCE 111Nfilm CENTER ST ' e' _1 cm perP R MOUNTAIN ST 4 l AEP / SWEPCO ENGINEERING DEPARTMENT FAYETTEVILLE DISTRICT CONCEPTUAL PLANS W.R. R 1W.O. R ARTS CORRIDOR DRAWN BY, JOHN LE SOUTH WEST AVE DATE BUDGET IDR FAYETTEVILLE, AR DRWG. SH,1 12 NO. 2. SOUTHWESTERN ELECTRIC POWER COMPANY A&*OtA rimR I I Rom solo I I(, rmmnl IIT PI d NIC LEGEND • INSTALL NEW POLE AND ASSOCIATED HARDWARE Q 2- 6' ScMd.. 10 PVC conduit for UG —d—ton Q A- V Sth1 — /0 PVC eonduN for UG ... d. — 0 2- 3' S.M .k, AO PVC conduit for UG conductors p 2- A' SchW,4 40 PK dwt f- UG ...duct— INSTALL 30 TAP CABINET QINSTALL NEW TRANSFORMER © INSTALL NEW PEDESTAL NOTE: ITEMS IN GREEN ARE EXISTING FACILITIES THAT WILL REMAIN IN PUCE 1 AEP / SWEPC❑ CONCEPTUAL PLANS ARTS CORRIDOR SOUTH WEST AVE FAYETTEVILLE, AR - ►.41 ENGINEERING DEPARTMENT FAYETTEVILLE DISTRICT V.R. R VA. N DRAWN BY, JOHN LE DATE BUDGET IDR DRVG. Si'i.2�2 NO. Blake F. Pennington Assistant City Attornril, bpennintun(�`fiyetteville ar.gov Jodi Batker Paralegal Phone. 4�9. ; <. KIT WILLIAMS FAYEll EVILLE C1T), /ATTORNEY kwillimn,,(vfavcttcviI1c-ar.O0v April 2, 2020 Chantanell J. Jewitt AEP Risk & Insurance Management P.O. Box 21 106 Shreveport, LA 71 156 Re: AEP Claim #IR020202894720 City of Fayetteville Damages Dear Ms. Jewitt, 111 W. Mountain Street, Suite 302 Favetteville, AR 72701-6083 Thank you for your letter of March 3, 2020 to our Facilities Director, Wade Abernathy. Our Mayor has requested that I follow up with you. In your letter, you state "in most cases we are not responsible for power outages, voltage fluctuations or property damage caused by failure of equipment that could not have been anticipated." The City of Fayetteville, Arkansas would not be making a claim if our property damage had been caused by weather, vandalism or failure of equipment that could not have been anticipated. The City of Fayetteville notified SWEPCO on January 7, 2020 of power voltage loss, fluctuations, and other problems and scheduled an inspection by SWEPCO for January 9, 2020, to determine why the City was experiencing voltage surges recorded on the monitor for the Information Technology server equipment. The City had already had our electrical vendor, King Electric Company, inspect and trouble shoot our power panels to ensure the voltage surges were not being caused by a problem with the City's equipment. The SWEPCO technician that responded on January 91h to the City's call for help and service placed a voltage monitor on the main service for only about 30 minutes before negligently concluding that there was no issues with the power supply and leaving. A proper standard of care to ensure that the voltage surges and fluctuations that the City had been suffering would not return or occur again would have required at least twelve hours for a comprehensive and true reading. If the SWEPCO technician had properly tested the voltage supply from your transformer for an adequate amount of time, the voltage fluctuations that our Information Technology server had been experiencing would have been verified and SWEPCO could have begun a controlled repair or replacement of its transformer. This would have prevented the City from incurring the documented $125,508.56 in the damages that we suffered on January 1 lth, 2020. But instead, SWEPCO's technician failed to spend sufficient time, or to adequately inspect and test the transformer which a day later (January 10, 2020 at about 10:26 PM) suffered a catastrophic failure and blacked out the City's Police Department and its 24 hour a day 911 Dispatch Center. This transformer malfunction which should have been properly evaluated and resolved the previous day also adversely affected our Information Technology server. Facilities Management and Information Technology as well as King Electric personnel responded to the Police Building and its Dispatch Center as well as City Hall's Information Technology offices in an attempt to restore power through the City's generator. SWEPCO was informed of this power failure at 12:20 AM on January 11, 2020. When SWEPCO had not responded to our 911 Dispatch Center's continuing power outage, the City again requested SWEPCO's help at 2:00 AM. Finally, SWEPCO arrived at 2:45 AM and verified by 3:31 AM that SWEPCO's transformer was indeed the problem. SWEPCO technicians then began working to try to repair the transformer. Around 8:59 AM on January 11, 2020, SWEPCO erroneously and negligently concluded they had repaired the transformer. The City and its electrical contractor, King Electric, had been concerned that power surges could damage City equipment when SWEPCO turned the power on and off to check the attempted repair of its transformer and had turned our electric panels off to protect our equipment. SWEPCO required that the City's electric panels be turned on so it could try a full load with its "repaired" transformer. This "repair" check not only revealed the negligent attempted repair, but also caused flames to shoot out from outlets, surge protectors and/or UPS devices. Some of these dangerous flames came perilously close to City personnel. The Fire Department had to be called to inspect both the Police Department building and City Hall to ensure the smoke from damaged and destroyed electrical equipment was not also coming from fires ignited by this massive power surge from your defective and failed transformer. The first negligent "repair" check had obviously failed. However, SWEPCO still decided to try further repairs and then at 10:30 AM again required the City's electric panels to be turned on for the second "repair" check. This "repair" had also been negligently and improperly done and was not effective. The resulting power surge further damaged City property. A third and final negligent repair check was carried out by SWEPCO at 2:30 PM on the damaged, defective and dangerous transformer which failed for the third time and sent more power voltage surges through City electric panels required by SWEPCO to be fully connected causing City property further damage. Finally at 4:09 PM, SWEPCO notified our Information Technology Division that it had isolated the problem and were going to get a new transformer from Rogers, Arkansas. SWEPCO completed this installation about 8:43 PM so that the 911 Dispatch Center could begin to conduct normal operations. Facilities Management and the Information Technology Division then could access the damage caused by SWEPCO's defective transformer and the three failed and negligent attempts to repair the transformer. Sincerely, KIT WILLIAMS Fayetteville City Attorney Abernathy, Waylon From: Abernathy, Waylon Sent: Friday, August 7, 2020 11:16 AM To: Todd Hopwood; Jeffery A Milford Cc: Macedo, Keith Subject: FW: City of Fayetteville Transformer Claim Attachments: 1517_001.pdf; Faciliies Management.xlsx; Copy of Copy of Equipment Damage 08062020.xlsx Todd, Per our phone conversation yesterday morning, I am sending the revised original claim amount based on updated estimates and actual cost incurred by the city. Those figures are in bold print. The IT department figures decreased: • One of the UPS devices was under a maintenance warranty, therefore that cost has been removed. • Purchase one of the UPS devices at a reduced price. The vendor original quote was 25K and it has since reduced to 16K. • Ups install charge added Reconcile of the Facilities Management Invoicing: • Removed Wilson Park invoice. • Captured Invoicing for a KVM switch after the original claim figures were provided. • Corrected entering error on REQ00168829 originally $6.469.41... correct entry $6,469.41 All of the attached are updated and final. The new total is $97,499.73. The agreed to settlement terms were that SWEPCO would install per the July 22, 2020 Arts Corridor-SWEPCO Relocation proposal in lieu of payment. As discussed on the phone this morning, I will direct Kit to provide a release of claim letter and attach the scope of work, and damage exclusions to that release to all parties. (once that is received from you) Thanks, Wade Abernathy Director of Bond Projects and Facilities City of Fayetteville wabernathv(@favetteville-ar.aov T 479-575-8361 CITY OF FAYETTEVILLE ARKANSAS Fayetteville Police Department OT costa / Labor for Power Outage January 10-11, 2020 Date Name Pay Rate Hours Total 1/11/2020 Valk -Bryant, Tara 28.97 12.50 362.125 1/1112020 Carpenter, Charles 39.31 10.50 412.76 1/11/202C 1/11/2020 Cheader, Mallone Churchill, Meghan 18.42 9.00 165.78 paid admin leave - not OT 1/11/2020 Harter, Lillian 18.56 6.25 116.00 paid admin leave - no OT 1110-1/11121220 Jones, Emil Y 15.20 3.50 53.20 paid admin leave - no OT 01/11/2020 Key, Kristl 25.32 3.75 94.95 1110-1/1112020 Lic*. Eric 3rj.15 37.08 6.00 216.90 1/102020 Schroeder, Laren 18.18 450 0.50 166.86 9.09 paid admin leave - no OT _ 44.00 S 1,236.0 'time includes OT or straight time plus benefits Project Number 02046.2020 Posted Date 1/10/2020 Project Name ITransformer Damage Amount TXN00228051 1/13/2020 60 -Amp Time Delay Fuse Cartridge $33.17 TXN00228240 1/14/2020 Invoice 125-58977-01 Electrical Parts City Hall (Weekend Jan 10- $15.17 TXN00228308 1/15/2020 Ticket # 125-59019-01 60A 250 V Fuse -Fusetron $60.91 TXN00228381 1/16/2020 Frigidaire refrigerator for dispatch break room $1,645.15 TXN00228906 1/28/2020 Control box for the Dispatch console $233.62 TXN00228943 1/28/2020 Inv 9422291535 HVAC Transformer Damage $10.54 TXN00229142 1/3112020 Air Purifier $175.58 TXN00229307 2/4/2020 Ticket # 20855 Power Transformer Damage P D Filing System Re $5,630.50 TXN00229318 21412020 Power control boxes for desks $1,364.95 TXN00229475 2/6/2020 KVM Switch $861.13 Marmic Fire RE000168845 Safety Inv 5262880-IN Testing Devices P D $198.00 Marmic Fire RE000168843 Safety Inv 5259961-IN Labor for Testing PD $290.00 Elde Building RE000168834 Soultions Inv 27821 City Hall Digital Output Converter Board Trans Damage $935.07 Elite Building RE000168835 Soultions Inv 28387 P D Trans Damage Inducer draft Molar Assembly $916.53 Elite Building RE000168831 Soultions Inv 28314 3rd Floor City Hall Two Bad VFD's Trans Damage $987.75 Elite Building RE000168830 Soultions Inv 28318 Police Dept RTU Transformer Damage $696.84 Elite Building RE000168836 Soultions Inv 28317 City Hall 3rd Floor Motor & VFD Transformer Damage $6,406.21 Elite Building RE000168837 Soultions Inv 28352 City Hall Min -Split Unit Transformer Damage $5,125.98 RE000168829 King Electric Troubleshoot ower issues/check voltages $6,469.41 Door Tec Sales RE000168525 & Service Inv 115236905 Replace Power Supply tabor & Parts Trans Damage $3,254.42 RE000168847 JE Systems Inc, Inv 1042331 Tested Fire System Transfromer Damage $108.65 Northwest RE000168848 Controls Inv SVC0017117 HVAC Parts Heat Pumbps Down Mau Down $1,940.38 American Water Heater REQ00169073 Cc. Water Heater City Hall BasementTrans Damage $140.47 Elite Building RE000169193 Soultions City Hall Transformer Damage City Hall Replace VFD 2,331.09 Paid Invocie $39,831.52 Total Vendcr Labor Name Hours Rate Mark 8 29.18 OT 233.44 Norman 12.5 34.22 OT 427.75 Norman 21.5 22.81 490.42 Harlan 21 38.45 OT 807.45 Harlan 3.5 25.63 89.71 Total 66.5 Total Amt. $2,048.77 $2,048.77 $2,048.77 Total $41,880.29 Damaged IT Eqiupment from 1-10-20 Building Department Damaged Equipment Qty Cityhall Ground floor Access control power module 1.00 Cityhall 3rd floor Access control power module 1.00 Cityhall Acct Backup check printer 1.00 Cityhall Acct Check Printer 1.00 cityhall Acct large capacity micr 2.00 Cityhall Acct Check MICR Overnight Cartridge 1.00 Cityhall Control booth 219 Ups 1.00 Cityhall 2nd floor mech Panic Button UPS 2200kva 1.00 Cityhall Multiple 4 - 1500 kva ups died, 2 smaller ups died 4.00 UPS replacements Cityhall Multiple APC UPS 1500 5.00 Cityhall Budget Apc wall plugs fried 1.00 Cityhall D howland Standing desk 1.00 Cityhall GIS Mike's Desk Standing desk 1.00 Cityhall 1st Floor automatic door openers going to Utility setup not opening 2.00 Cityhall 1st Floor ADA sliding door 1.00 Police Police Captain Renfro's computer 1.00 Police Police Large light on the NE corner of the PD 1.00 Police Police Color Printer in the Sgts Hallway 1.00 Police Police The evidence carriages in Property/Evidence are not working 1.00 Police Police Property/Evidence HP Laser Jet 600 M602 Desktop Printer Not Working 1.00 Police Police CDC's surge protectors in the furniture needs replaced (approximately 21 24.00 Police Police CDC's UPS needs replaced 1.00 Police Police CDC's furniture is missing functions, such as desks will not raise and IOWE 8.00 Police Police Computer Room's UPS needs replaced (1st floor, IT area) 1.00 Police Police UPS Electrical work for UPS install 1.00 Police Police Laptop in Briefing Room 1.00 Police Patrol Interview room 4&5 UPS 2.00 Cityhall Multiple Surge Protectors x56 56.00 Surge Protectors - Keith Surge Protectors - Keith Surge Protectors - Brad Surge Protectors - Brad Surge Protectors - Josh Surge Protectors - Brad Surge Protectors - Brad Police Multiple Surge Protectors x25 25.00 Police Police Rackmount surge protector in server room 1.00 Police Police Stacy Dicus pc 1.00 Police Police Reynold's printer 1.00 Cityhall Breakroom TV won't turn on 1.00 Police Police Bogen Model TPU15A Telephone Paging Amplifier 15W 1.00 Both IT Staff time - Geoff OT rate 8.25 Both IT Staff time - Brad 22.25 Both IT Staff time - Devon 23.25 Both IT Staff time - Misty OT rate 3.75 Both IT Staff time - Stefan 3.00 Both IT Staff time - Keith 18.75 Both IT Staff time - Sarah 3.25 Both IT Staff time - Collins 3.50 Both IT Staff time - Josh OT rate 11.00 Updated Replacement Cost TXN # $350.00 $350.00 $2,982.27 $3,303.66 TXN00228290, TXN00228219 tray $800.00 $300.00 TXN00228304 $200.00 $200.00 $ 800.00 TXN00228180 $1,000.00 $0.00 $1,000.00 $1,000.00 $0.00 $0.00 $ 250.00 $0.00 $900.00 TXN00228609 $5,400.00 $1,600.00 TXN00228609 $1,200.00 TXN00228443 $0.00 $1, 600.00 $16,120.51 $3,800.00 $2,639.88 $400.00 $0.00 $240.53 TXN00228041 $323.55 TXN00228109 $153.59 TXN00228039 $144.87 TXN00228040 $356.17 TXN00228048 $41.54 TXN00228200 $111.81 TXN00228144 $ 500.00 $100.00 $1,100.69 $250.00 TXN00228609 $400.00 $253.53 $412.34 $1,021.28 $934.42 $159.94 $88.14 $969.19 $108.13 $110.88 $407.00 $54,383.90 8/5/2020 Status Replaced Replaced Replaced Replaced, printer/shipping/tax/warranty: 2420.60. tray: 883.06 ordered Replaced with spare 1500, purchased replacement Dead, replaced Dead, replaced Purchased Purchased, replaced Dead did not replace Purchased, replaced Purchased, replaced Internal staff Door tech working on it Purchased new Hard drive and Replaced Facilties replaced with new LED lights Purchased, replaced Evidence locker electric motors damaged beyond repair, vendor replaced motors Replaced Replaced Under existing maintenance contract and was repaired Received parts, CDWG quote for new UPS. Original estimate was $25,000. Professional services to install new UPS Tech came to replace MB. Other issues were found, he is putting in for depot swap. Waiting on box to ship c Replaced UPS with spare from 911 equipment room, purchased new spare Purchased, installed Purchased, installed Purchased, installed Purchased, installed Purchased, installed Purchased, installed Purchased, installed Purchased, installed Purchased, replaced Purchased, replaced PC replaced from inventory, Purchased new Purchased, replaced Dead replacing with used one from dispatch, purchased replacement Purchased, replaced IN THE CIRCUIT COURT OF WASHINGTON COUNTY, ARKANSAS CIVIL DIVISION CITY OF FAYETTEVILLE, ARKANSAS, V. Case No. 72CV-2020- PLAINTIFF SOUTHWESTERN ELECTRIC POWER COMPANY, INC DEFENDANTS COMPLAINT Comes now Plaintiff City of Fayetteville Arkansas, by and through its attorney, Fayetteville City Attorney Kit Williams, and for its Complaint against Southwestern Electric Power Company, Inc. (a/k/a AEP or American Electric Power, Inc.), states as follows: PLAINTIFF, JURISDICTION, AND VENUE 1. Plaintiff City of Fayetteville is an Arkansas municipality authorized by state law to file suit in State Court when necessary to protect its citizens' and its own rights. 2. Defendant, Southwestern Electric Power Company, Inc. (a/k/a AEP or American Electric Power, Inc.) is an electric utility company serving part of the City of Fayetteville and more particularly, the Fayetteville Police Department at 100 West Rock Street, its Emergency Dispatch Center and City Hall at 113 West Mountain Street, all in Fayetteville, Arkansas. 3. Jurisdiction for this litigation is Washington County, Arkansas. 4. Venue for this litigation is the Washington County Circuit Court in Fayetteville, Arkansas. 1 RELEVANT FACTS 5. On or about January 7, 2020, the City of Fayetteville notified Defendant Southwestern Electric Power Company, Incorporated (also known as AEP, American Electric Power, Inc. and hereinafter referred to as "SWEPCO") that the City of Fayetteville Police Department including the Emergency Dispatch Center at 100 West Rock Street and the Fayetteville City Hall at 113 West Mountain Street, both in Fayetteville, Arkansas, were experiencing power or voltage loss, fluctuations and other electrical problems. 6. The City of Fayetteville then requested SWEPCO to inspect these electrical issues and fix any problems with its transformer or other facilities or wires in order to stabilize the electrical service provided by SWEPCO to these City of Fayetteville buildings. SWEPCO agreed to send its personnel to inspect its electrical service provided to the City of Fayetteville at this location on January 9, 2020. 7. The City of Fayetteville had had its electrical service vender, King Electrical Company, Inc., inspect and trouble shoot the City's electric power panels to ensure the voltage fluctuations were not being caused by a problem with the City's equipment. King Electrical Company, Inc. confirmed that the problems of fluctuating power were not being caused by City electrical systems nor electrical equipment, but were emanating from SWEPCO's transformer and lines. 8. SWEPCO's employee and technician came to the City's property on January 9, 2020 and placed a voltage monitor on the main service from SWEPCO's transformer to the City's electric power panels, but only left the voltage monitor in place for about 30 minutes before negligently concluding there were no issues or problems with SWEPCO's transformer or 2 other parts of the SWEPCO's electrical power supply. SWEPCO's employee then left the premises. 9. A proper and reasonable standard of care to respond to and investigate the City's problems and complaints of fluctuating voltage and power would have required at least 12 hours of monitoring for a comprehensive and true reading from a voltage monitor. 10. Such proper testing, maintenance and correction of SWEPCO's failing transformer would have prevented not only the transformer's catastrophic failure which blacked out the Police Department's Emergency Dispatch Center, but also the damage caused to the City of Fayetteville's electrical system, fixtures and equipment by SWEPCO's middle of night and next day repair failures as well as the overtime labor costs because the defective and malfunctioning transformer caused a loss of electrical supply to the City from January 10, 2020 at 10:26 P.M. until January 11, 2020 at 8:54 P.M. 11. SWEPCO's negligent testing on January 9, 2020 was confirmed on the very next day on January 10, 2020 when SWEPCO's transformer failed and blacked out the Fayetteville Police Department and its Emergency Dispatch Center. City Hall was also left without any electrical service from SWEPCO by this transformer failure. (It is possible that more than one of SWEPCO's transformers serving the City was defective and/or failed. Our Complaint's reference to "transformer" should be understood to include any and all SWEPCO transformers serving City Hall and the Police Station.) 12. The negligent failure to properly test SWEPCO's transformer serving the Police Department, Emergency Dispatch Center and City Hall on January 9, 2020, proximately caused not only loss of electrical service to these buildings, but the inability for the Emergency Dispatch Center to perform its vital duties at the center for many hours. 3 13. On or about 10:26 P.M. on January 10, 2020, SWEPCO's transformer suffered a catastrophic failure which blacked out the Fayetteville Police Department and its 24 hour a day Emergency Dispatch Center. This transformer malfunction should have been property evaluated and repaired by SWEPCO no later than the previous day after the City of Fayetteville had notified SWEPCO of the voltage fluctuations and electrical problems on January 7, 2020. 14. City of Fayetteville Facilities Management and the City's electrical contractor, King Electrical Company, Inc., promptly responded to this electrical outage to examine the problem and attempted to restore some power with the City's emergency generator. 15. When it was clear that the problem was SWEPCO's responsibility, the City staff contacted SWEPCO at about 12:20 A.M. on January 11, 2020 and informed SWEPCO of the complete loss of electric power from SWEPCO's transformer to our Police Station, Emergency Dispatch Center and City Hall. The City requested immediate response and service to reestablish electrical power to these vital public safety facilities. SWEPCO negligently failed to promptly respond to resolve this emergency situation. 16. After waiting for more than an hour and a half for SWEPCO to respond to our request for service, the City again notified SWEPCO at about 2:00 A.M. that our Police Department, Emergency Dispatch Center and City Hall had lost all power from SWEPCO's transformer and still needed immediate assistance. 17. SWEPCO's personnel finally arrived about 2:45 A.M. (about two and a half hours after the City first notified SWEPCO of our power loss emergency). At about 3:31 A.M. SWEPCO verified that SWEPCO's transformer was, indeed, malfunctioning and the cause of the loss of power. SWEPCO advised the City that its transformer needed repair. 4 18. SWEPCO then commenced to attempt to repair the malfunctioning transformer. About five and a half hours later, SWEPCO erroneously and negligently determined they had properly and completely repaired the damaged transformer. 19. Since City staff and its electrical contractor, King Electrical Company, Inc., had been concerned that City equipment could be damaged by possible electrical power or voltage surges from SWEPCO's malfunctioning transformer, they had disconnected the City's electric panels from the transformer. 20. SWEPCO required that all of the City's electric panels be reconnected so that SWEPCO could test its "repaired" transformer with a full load. The City complied with SWEPCO's demand and reconnected its electric panels shortly before 8:59 A.M. on January 11, 2020. 21. SWEPCO negligently failed to ensure that its transformer could be and was completely repaired and functioning properly when SWEPCO at 8:59 A.M. sent a massive power and/or voltage surge from its transformer through the City's electric panels and throughout the Police Station, Emergency Dispatch Center and City Hall's electrical circuits. 22. This uncontrolled, massive voltage and/or power surge from SWEPCO's negligently repaired transformer into the City's electrical system caused significant damage to the City's electrical systems and equipment. Flames shot out of outlets, surge protectors and UPS devices endangering Police Department staff and City staff on hand to help manage the return of electric service to the City. 23. Fortunately, the City suffered much less damage to its computers, electric motors, and other electric equipment because of the City's extensive use of surge protectors which were 5 destroyed by this power surge, but lessened its destructive impact on other expensive electrical equipment. 24. After learning its initial repair attempt had failed and damaged City equipment, SWEPCO decided to again attempt to repair its malfunctioning transformer and/or other electrical equipment. 25. At about 10:30 A.M. on January 11, 2020, SWEPCO again negligently concluded it had properly repaired its malfunctioning transformer and directed the City to fully connect the City's electrical panels so SWEPCO could test its transformer at full load. SWEPCO's negligently repaired transformer again malfunctioned and sent power or voltage surges into the City's electrical system further damaging the City's electrical equipment. 26. When this second repair test failed, SWEPCO again decided it should try a third repair of its malfunctioning transformer and worked on the transformer until around 2:35 P.M. and again negligently concluded its repairs had fixed the transformer's problems. Still requiring the City to have its electric panels fully connected, SWEPCO tried a third full power test which further damaged City equipment and finally convinced SWEPCO that it could not competently repair the transformer. 27. SWEPCO's three negligently repaired transformer's tests proximately caused extensive damage to City equipment, endangered City staff and provided no proper electrical service to City Hall and City's Police Department with its Emergency Dispatch for over 20 hours after SWEPCO had been notified of its transformer's malfunction at 12:20 A.M. on January 11, 2020. Z 28. Finally, SWEPCO correctly determined that it could not repair the transformer and needed to install a new, replacement transformer and so notified the City at 4:00 P.M. on January 11, 2020. 29. Obtaining and installing the replacement transformer took SWEPCO over four additional hours during which the City remained without electrical service from SWEPCO. This transformer replacement solution should have begun on January 9, 2020. If SWEPCO had fulfilled its duty of reasonable care and properly and reasonably tested its equipment as requested by the City on January 7, 2020, such non -negligent testing on January 9, 2020 would have prevented all of the damages suffered by the City. 30. SWEPCO could have reduced some damages to the City if it had replaced its transformer at 3:30 A.M. on January 11 after SWEPCO had examined the defective and malfunctioning transformer, admitted it was the problem, and should have determined the transformer could not be safely repaired. Instead, SWEPCO's repeated negligent attempts to repair and test the defective and malfunctioning transformer sending massive and damaging voltage and poser surges through the City's electrical systems proximately caused all of the City's damages to its equipment and eleven more hours of lost electrical service. SWEPCO'S LEGAL AND STATUTORY STANDARD OF CARE 31. "An electric company is held to a high degree of care in the erection, maintenance, operation, and inspection of its equipment used in the generation and transmission of electricity." 7 Carroll Electric Co -Op Corp. v. Carlton, 319 Ark. 555, 892 S.W.2d 496, 499 (1995). "Under Arkansas statutory and common law, electric utilities have a `duty to act with reasonable care in the delivery of services.' (T)he Arkansas Supreme Court affirmed its longstanding rule that the very nature of the business of an electric company requires it to use a high degree of care in the erection, maintenance, operation, and inspection of its equipment....' " Koch v. Southwestern Electric Power Company, 544 F.3d 906, 908-909 (8t' Circuit 2008) (citations omitted). DAMAGES SUFFERED BY CITY 32. The City of Fayetteville has suffered a total of $127,557.33 in equipment, contractor fees and overtime wage costs as damages proximately caused the City by SWEPCO's negligence in testing and failed repair efforts before finally replacing the defective transformer. 33. Attached as Exhibit A to this Complaint is an itemized list of electrical equipment damaged or destroyed by SWEPCO's malfunctioning transformer sending a massive surge or overload of power and high voltage through the City's electrical systems for City Hall, the City Police Station and the Emergency Dispatch Center. The equipment damage would have been far worse if the City had not prudently attempted (and often succeeded) to protect its more expensive electrical equipment with surge protectors and UPS (Uninterrupted Power Source) units which absorbed the brunt of SWEPCO's transformer's uncontrolled power surge. 34. Also shown on Exhibit A are the overtime and wage costs caused by the malfunctioning transformer which should have been replaced on January 9, 2020. 35. The damages by City Department are as follows: Information Technology: $86,447.23 Facilities Management: $37,825.79 8 Police/Dispatch: $1,235.54 (labor only) $127,557.33 WHEREFORE, premises considered, the City of Fayetteville prays that it receive Judgment against Defendant Southwest Energy Production Company (SWEPCO) and/or A.E.P. in the amount of $127,557.33, plus costs and attorney's fees and all other relief to which it may be entitled. Respectfully Submitted, CITY OF FAYETTEVILLE, ARKANSAS PLAINTIFF Un Kit Williams (76007) City Attorney 113 W. Mountain, Suite 302 Fayetteville, AR 72701 Telephone: (479) 575-8313 Facsimile: (479) 575-8315 Email: kwilliamsgfayetteville-ar.gov 0