ORD NO 34-2011 CITY OF VAN BUREN, ARKANSAS
ORDINANCE NO. 3 2011
BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN,
ARKANSAS, AN ORDINANCE TO BE ENTITLED:
AN ORDINANCE AUTHORIZING THE MAYOR TO
SECURE SHORT -TERM FINANCING FOR THE
FINANCING OF THE RENA ROAD WIDENING PROJECT,
DISBURSE FUNDS FOR THE RENA ROAD WIDENING
PROJECT, DECLARING AN EMERGENCY, AND FOR
OTHER PURPOSES.
WHEREAS, the City Council for the City of Van Buren has previously approved matching
funding for the Rena Road Widening Project in coordination with the Arkansas
State Highway and Transportation Department "AHTD and
WHEREAS, the AHTD has recently completed its gross estimates for the Rena Road Project
for an estimated total cost of 6,137,643.03 of which the City is obligated to cost
share in the amount of 1,637,258.03 of which 352,600.00 is already on deposit
with AHTD; and
WHEREAS, a state of emergency exists because the AI -ITD has requested in order to proceed
with the Rena Road Project, a check from the City payable to the AHTD as set
forth in Exhibit "A" hereto and the City will be financially liable for construction
delays.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF VAN
BUREN, ARKANSAS, THAT:
SECTION 1: The Mayor and City Clerk are hereby authorized by the City Council for the City
of Van Buren to submit a check in the amount of 1,284,658.03 to the Arkansas
State Highway and Transportation Department for the City's share of construction
costs for the Rena Road Widening Project.
SECTION 2: The Mayor is further authorized to enter into an agreement with an appropriate
financial institution in order to finance 500,000.00 of said funding for a period
of 24 months at an interest rate not to exceed the maximum rate allowed by state
law pursuant to Amendment 78, Section 2 of the Constitution of the State of
Arkansas.
SECTION 3: It is further found that due to the immediate need to fund the project, an
emergency is declared to exist and this Ordinance being necessary for the
preservation of the public health, safety, and welfare, it shall take effect from and
after its passage and approval.
SECTION 4: The various provisions and parts of this Ordinance are hereby declared to be
severable, and if any section or part of a section, or any provision or part of a
provision herein, is declared to be unconstitutional, inappropriate, or invalid by
any court of competent jurisdiction, such holding shall not invalidate or affect the
remainder of this Ordinance and to that extent the provisions hereto are declared
to be severable.
IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did
pass, approve, and adopt, by a vote of (y for and 0 against, the foregoing Ordinance at its
regular meeting held on the 21 day of November, 2011.
Robert D. Free
Mayor
n
ATTESTED: r,:•• PPR)" i AS 'O FORM:
C O4 Barbie Curtis Cle �i� Candice A. Settle
City ClerklTreasiirer City Attorney
ARKANSAS STATE HIGHWAY
AND
TRANSPORTATION DEPARTMENT
Scott E. Bennett 4 P.O. Box 2261
Director i qr 5 Little Rock, Arkansas 72203 -2261
Telephone (501) 569 -2000 F 1 I D Telefax (501) 569 -2400
Voice /TTY 711 t www.arkansashighwayscom
\441,0.. 1,
November 3, 2011
The Honorable Robert D. Freeman
Mayor of Van Buren
1003 Broadway Street
Van Buren, AR 72956
Re: Job 040345
F.A.P. STP- BRN -HPP2- 9429(3)
Hwy. 59 -West (Rena Road)
(Van Buren) (S)
Crawford County
Dear Mayor Freeman:
Forsgren, Inc of Fort Smith submitted the low bid of $4,470,078.75 for the referenced project at
the Department's October 19, 2011 letting. The Arkansas State Highway Commission has
tentatively accepted their proposal. and will execute the contract upon receipt of the City's
matching funds.
The City's estimated share of costs for this project is calculated below.
Total Cost Federal Share City Share
Preliminary Engineering 14,950.31 11,960.00 2,990.31
Utilities 1,205,606.09 964,485.00 241,121.09
Construction 4,470,078.75 3,203,582.00 1,266,496.75
Construction Engineering 447,007.88 320,358.00 126,649.88
Totals 6,137,643.03 4,500,385.00 1,637,258.03
Less Deposits Received 352.600.00
City Share Remaining 1,284,658.03
Your check for $1,284,658.03 (made payable to the Arkansas State Highway and Transportation
Department) should be forwarded to this office as soon as possible. The contract will not be
executed, and construction cannot begin, until your cheek is received. Submittal of these
funds to the Department will be considered as your concurrence in the award of this contract.
The Honorable Robert D. Freeman
November 3, 2011
Page Two
The Department will make every effort to assure the project is constructed in accordance with
the plans and specifications, thereby minimizing the possibility of items being declared
non participating for federal fiends. However, should any of the items be declared
non participating, the City would be responsible for 100% of their cost. Upon completion of the
project, a statement will be prepared reflecting the final cost and respective matching shares. At
that time, the City will be retuned funds remaining over the deposit or billed for additional funds
required.
We look forward to working with the City to complete the proposed improvements. Should you
have any questions or comments, please advise.
Sincerely,
f
Frank Vozel
Deputy Director and
Chief Engineer
c: Assistant Chief Engineer- Planning
Programs and Contracts
Fiscal Services (2)
Planning and Research
District 4
Job 040345 'C' File
Bradley Baldwin, Van Buren Public Works Director