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113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 244-23
File Number: 2023-1220
MISTY SIMPSON WATER DAMAGE CLAIM (BUDGET ADJUSTMENT):
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $80,039.00 TO FUND THE
MISTY SIMPSON WATER DAMAGE CLAIM AT 2425 EAST SHARON STREET
WHEREAS, on October 17 City Council approved paying the claimant the full $100,000.00 allowable by City Code;
and
WHEREAS, the City has already paid $19,961.77 to Misty Simpson for this damage claim.
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 a budget adjustment, a copy of
which is attached to this Resolution, in the amount of $80,039.00 to cover the cost of the Misty Simpson water damage
claim at 2425 E. Sharon St.
PASSED and APPROVED on November 7, 2023
Page 1
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CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF NOVEMBER 7, 2023
CITY COUNCIL MEMO
TO:
Mayor Jordan and City Council
THRU:
Susan Norton, Chief of Staff
FROM:
Tim Nyander, Utilities Director
DATE:
SUBJECT:
Budget Adjustment - Misty Simpson Water Damage Claim
RECOMMENDATION:
2023-1220
Staff recommends approval of a budget adjustment in the amount of $80,039.00 to move funds into the water
damage claims account to cover the cost of the Misty Simpson water damage claim at 2425 E. Sharon St.
BACKGROUND:
On September 20, 2021, the City of Fayetteville experienced a large 36-inch diameter water main break on N.
Makeig Ct. Misty Simpson owns the home located at 2425 E. Sharon St. This large water main break caused
substantial amounts of flooding and damage to the neighborhood and to the Simpson residence. Misty
Simpson's insurance company denied her claim, so she immediately filed a damage claim with the City after
the incident.
DISCUSSION:
The Misty Simpson water damage claim was previously brought to City Council but was tabled. The claim
request was greater than the previous $50,000.00 damage claim cap, and the City later revised the City Code
to state that for water main breaks on lines 36" and larger that cause damage to property would have a new
damage claim cap of $100,000.00.
Now that an ordinance has been passed (on Sept. 19) to raise the payout limits to $100,000, this item went
back to City Council for consideration. The City has already paid $19,961.77 to Misty Simpson for this damage
claim. City Council has approved paying the claimant the full $100,000 allowable by City Code (minus what
has already been paid). The council amended the resolution to include the new, larger amount of $80,038.23.
BUDGET/STAFF IMPACT:
A budget adjustment is attached to move funds from the Lake Sequoyah Dredging project to the water damage
claims account to fund the new larger amount for the damage claim payment.
ATTACHMENTS: SRF (#3), BA (#4)
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
== City of Fayetteville, Arkansas
y 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
- Legislation Text
File #: 2023-1220
Budget Adjustment - Misty Simpson Water Damage Claim
A RESOLUTION TO APPROVE A BUDGET ADJUSTMENT IN THE AMOUNT OF $80,039.00 TO
FUND THE MISTY SIMPSON WATER DAMAGE CLAIM AT 2425 EAST SHARON STREET
WHEREAS, on October 17 City Council approved paying the claimant the full $100,000.00 allowable
by City Code; and
WHEREAS, the City has already paid $19,961.77 to Misty Simpson for this damage claim.
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 a budget
adjustment, a copy of which is attached to this Resolution, in the amount of $80,039.00 to cover the cost
of the Misty Simpson water damage claim at 2425 E. Sharon St.
Page 1
Tim Nyander
Submitted By
City of Fayetteville Staff Review Form
2023-1220
Item ID
11/7/2023
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
10/20/2023 WATER SEWER (720)
Submitted Date Division / Department
Action Recommendation:
Staff recommends approval of a budget adjustment in the amount of $80,039.00 to move funds into the water
damage claims account to cover the cost of the Misty Simpson water damage claim at 2425 E. Sharon St.
Budget Impact:
5400.720.4310-5311.04
Water and Sewer
Account Number Fund
N/A N/A
Project Number
Budgeted Item? Yes
Does item have a direct cost? Yes
Is a Budget Adjustment attached? Yes
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Item Cost
Budget Adjustment
Remaining Budget
Project Title
$
233,349.00
$
167,112.76
66,236.24
$
80,038.23
$
80,039.00
e. 66,237.01
Previous Ordinance or Resolution #
Approval Date:
V20221130
City of Fayetteville, Arkansas - Budget Adjustment (Agenda)
Budget Year Division Adjustment Number
WATER SEWER (720)
/Org2
2023
Requestor: Cheryl Partain
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
A budget adjustment is needed in the Self Insurance (non -vehicle damage) account within the Water & Sewer fund to pay
for a large water damage claim for Misty Simpson at 2425 E Sharon St. Budgeted funds will be moved from the Lake
Sequoyah Sediment Removal/Dredging Project. The project is complete and a portion of the available remaining budget is
being moved to fund the repair costs.
COUNCIL DATE: 11/7/2023
ITEM ID#: 2023-1220
Holly Black
1012012023 11:22 Rln
Budget Division Date
TYPE: D - (City Council)
JOURNAL #:
GLDATE:
RESOLUTION/ORDINANCE CHKD/POSTED:
TOTAL - - v.2023109
Increase / (Decrease) Project.Sub#
Account Number Expense Revenue Project Sub.Detl AT Account Name
5400.720.4310-5311.04 80,039 - EX Insurance - Self (Non -Vehicle Damage)
5400.720.5600-5808.00 (80,039) - 17004 1 EX Improvements - Water Line
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