1521ORDINANCE NO. l Sal
AN ORDINANCE WAIVING COMPETITIVE BIDDING FOR THE
RELOCATION OF A PIPELINE KNOWN AS 8" LINE JM-23,
APPROVING A CONTRACT WITH ARKLA ENERGY RESOURCES,
ESTABLISHING AN EMERGENCY AND FOR OTHER PURPOSES.
WHEREAS, Arkansas Code 14-58-303 allows waiving of
competitive bidding in exceptional situations where such
procedure is deemed not feasible or practical; and
WHEREAS, there are many items necessary for the City's
use where competitive bidding is deemed not feasible or
practical; and
WHEREAS, the City of West Memphis desires to upgrade
existing ditch No. 20 at Section 26-T6N-R8E which requires
the relocation of a pipeline known as 8" Line JM-23 owned
and operated by Arkla Energy Resources, who shall design,
install and test the facilities in accordance with its
construction specifications; and it would not be feasible
or practical to require competitive bidding for such
services under the present circumstances;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF WEST MEMPHIS, ARKANSAS:
1. That competitive bidding be waived for the following
services to be used by the City, described as follows:
The design, installation and testing for the relocation
of a pipeline known a.s 8" Line JM-23 owned by Arkla
Energy Resources.
2. Competitive bidding is found to be neither feasible
or practical under the present circumstances in that the
work must be performed to the owners specifications and
that time is of the essence.
3. The Facilities Agreement between
Memphis and Arkla Energy Resources is h
the Mayor and the City Clerk are hereby
execute said agreement on behalf of the
Memphis.
4. EMERGENCY CLAUSE. It having been
the City of West
ereby approved and
authorized to
City of West
found and
determined by the City Council of the t;ity of West Memphis,
Arkansas, that there is an urgent need by the City of West
Memphis to relocate the pipeline described herein to
accommodate the drainage ditch improvements, an emergency
is hereby declared to exist, and this Ordinance being
necessary for the preservation of the public peace, health,
safety a,nd welfare of the Citizens of West Memphis,
Arkansas, shall be in full force and effect from and after
the date of its passage and approval.
PASSED AND APPROVED this ~ day of , 1992.
KE I GRA , MAYOR BY:
ATTEST : ~// ~ Pritchard Horton, Vice-Mayor
DAN' CRAFT , `Ed
SPONSORED BY:
2Ec:~tV~D
CITY CLEfiK OFFIG~
DATE in,,,,..c ! i t.g-.
ARKLAt]~ ARKLA ENERGY RESOURCES
P.0. BOX 6208, SOUTH STATION, FORT SMITH, AR 72906-6208
March 9, 1992
City of West Memphis
205 S. Redding
West Memphis, AR 72301
Attention: Mayor Keith Ingram
City of West Memphis
RE: WEST MEMPHIS FLOOD PROTECTION PROJECT
Dear Mayor Ingram:
Enclosed is the revised copy of the Facilities Agreement with the
revisions as you requested. The first item, on any extra costs
that may be encountered as the project progresses, is covered in
the last paragraph in section three - Payment For Facilities.
The second concern is addressed in the first paragraph of section
four, Related Construction, where AER will be in continual con-
tact with the City of West Memphis' representative, from the pro-
posed start date to completion. If you will indicate in your
return correspondence the point of contact for the project, we
will inform your representative of the proposed start date as
soon as possible.
Upon signing the three Agreements, please forward them to AER's
Ft. Smith office to the attention of Mr. Ed Nix, Region Manager.
Should you or your office have any questions, please feel free to
contact me in Ft. Smith at 501-648-2311.
Sincerely,
Vince Molina
Supervisor, Technical Support
Central Region Operations
Attachment: 3 Copies Facilities Agreement
xc: Ed Nix
Mike Stiles
Al Rockwell
File
A D I V I S I O N O F A R K L A I N C.
FACILITIES AGREEMENT
THIS AGREEMENT is entered into this day of ,
1992 by and between Arkla Energy Resources (a division of Arkla, Inc.),
a Delaware corporation, and The City of West Memphis.
WHEREAS, Arkla Energy Resources currently owns and operates a pipeline
commonly known as 8" Line JM 23 in Crittenden County, Arkansas, and
WHEREAS, The City of West Memphis desires to upgrade existing ditch No.
20 at Section 26-T6N-R8E where Arkla Energy Resources 8" Line JM-23 is
currently installed, and desires that 8" Line JM-23 be relocated in
order to accommodate the drainage ditch improvements.
NOW THEREFORE, Arkla Energy Resources and The City of West Memphis
expressly agree upon the construction, installation, maintenance, and
use of such facilities subject to the following.
1. FACILITIES CONSTRUCTED
AER shall design, install, and test the facilities covered
by this agreement.
All facilities will be installed in accordance with Arkla
Pipeline Group's Manual of Construction Specifications -
Book 2.
2. OWNERSHIP OF FACILITIES
Arkla Energy Resources shall own, operate, and maintain its
relocated Line JM-23 at its sole expense once the initial
relocation has been completed.
3. PAYMENT FOR FACILITIES
The City of West Memphis shall reimburse AER for all costs
associated with the design and installation of the facili-
ties, including, but not limited to, any and all costs for
rights-of-way, gas lost or used from AER's pipeline as a
result of the installation and construction, overhead
charges incurred as a result of the installation of any such
facilities and federal income tax associated with any such
amounts which qualify as contributors in aid of construction
under the Tax Reform Act of 1986 or any successor legisla-
tion and any and all other associated costs which AER incurs
relating to the facilities.
page 2
The Estimated Adjustment Costs total approximately
$69,495.00, and are described in attached Exhibit A.
AER shall initially bill and The City of West Memphis shall
pay, $6,950.00, which is 10~ of AER's current estimate of
expenses it will incur in relocating its 8" Line JM-23.
Upon completion of the pipeline relocation, AER then shall
submit final billing to the City of West Memphis for mate-
rial, contractor costs, company labor and equipment and any
incidentals incurred on the relocation. AER shall keep
accurate records of its actual direct and indirect costs to
complete the work necessary to meet this agreement. Final
billing and settlement will be based on the actual direct
and indirect costs detailed in AER's records, but not
limited to the original Estimated Adjustment Costs.
If AER encounter's work on the project which must vary from
the approved agreement, The City of West Memphis will be
notified as soon as possible. The extent of the change will
be confirmed by both AER and The City of West Memphis.
4. RELATED CONSTRUCTION
AER will inform The City of West Memphis before beginning
the relocation and maintain liaison with its representative
until the relocation is complete.
AER has completed design and obtained construction bids for
this project and will acquire material within 10 days of the
receipt of payment from The City of West Memphis and shall
make every effort to complete the construction of the relo-
cation project within 30 days of the receipt of payment.
AER shall present to The City of West Memhpis the actual
costs of said project within 120 days of the project
completion.
5. LIMITATION ON OBLIGATION
This agreement is not an agreement by AER to transport or
accept natural gas for delivery. Any transportation on
AER's system shall be in accordance with AER's FERC Gas
Tariff, including, but not limited to, a valid request for
transportation.
6. INDEMNITY
The City of West Memphis shall indemnify and hold harmless
AER for any and all damages, claims, or actions arising out
of the construction, installation, maintenance or operations
of its pipeline facility, except that The City of West Mem-
phis shall not indemnify AER on account of any such damages,
claims, of actions arising out of the negligence or willful
misconduct of AER.
Page 3
7. ASSIGNMENT
Neither party shall assign this Agreement without the prior
written consent of the other.
8. APPLICABLE LAW
This agreement shall be governed by the laws of the state of
Arkansas except for the conflicts of laws provision which
would refer a party to the laws of another jurisdiction.
ATTEST:
ATTEST:
ARKLA ENERGY RESOURCES
By:
Ed Nix
Title:
CENTRAL REGION MANAGER
CITY F ME PHIS
By: r
eith Ingram
Title:
MAYOR - CITY OF WEST MEMPHIS