No preview available
HomeMy WebLinkAbout235-24 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 235-24 File Number: 2024-430 STORMWATER FUNDING STUDY (CONTRACT AMENDMENT): A RESOLUTION TO APPROVE AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND JACOBS ENGINEERING GROUP, INC F/K/A C112M HILL ENGINEERS, INC. IN AN AMOUNT NOT TO EXCEED $92,780.00 WHEREAS, on August 15, 2017, the City Council passed Resolution 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study; and WHEREAS, on June 4, 2018, the City Council approved Resolution 131-18, authorizing a contract with CH2M Hill Engineers, Inc., now known as Jacobs Engineering Group, Inc., to evaluate the feasibility of creating a stormwater utility program; and WHEREAS, on September 17, 2019, the City Council approved Resolution 209-19 approving Amendment No. 1 for additional travel and labor expenses; and WHEREAS, on November 5, 2019, the City Council approved Resolution 250-19, approving Amendment No. 2 for additional serviced related to the development of final recommendations for the creation of a stormwater utility; and WHEREAS, on July 5, 2022, the City Council approved Resolution 157-22 that expressed its intent to establish a stormwater utility for the purposes of funding needed stormwater and flood management water quality projects through a monthly stormwater fee to be paid by most property owners in Fayetteville; and WHEREAS, on May 21, 2024, the City Council approved Resolution 143-24 again expressing its intent to enact a stormwater utility ordinance and establish a stormwater management and water quality fund, and authorized additional services related to implementation and public outreach; and WHEREAS, additional funding is requested for assistance with the creation of the billing database and public parcel lookup tool as well as the future recalculation of impervious area to create the baseline. 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 Amendment No. 4 to the Professional Services Agreement with Jacobs Engineering, Inc., a copy of which is attached to this Resolution, in an amount not to exceed $92,780.00. Page 1 Resolution: 235-24 File Number: 2024-430 PASSED and APPROVED on September 17, 2024 Attest: 011111111n,/i K•/• T RF _U• — • FAYETTEVlLL: Kara Paxton, City el&k Treasurer 9 Page 2 CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 17, 2024 CITY COUNCIL MEMO 2024-430 TO: Mayor Jordan and City Council THRU: Chris Brown, Public Works Director FROM: Alan Pugh, Staff Engineer SUBJECT: Approval of Amendment 4 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $92,780 (total contract amount $675,722) RECOMMENDATION: Staff recommends approval of Amendment 4 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $92,780 (total contract amount $675,722). BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with management of its stormwater utility system. These issues stem from many sources including, but not limited to, compliance with the mandated Municipal Separate Stormwater System (MS4) requirements, aging infrastructure, maintenance of system capacity, personnel to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. To address these concerns, the City has historically funded the stormwater program through the Sales Tax Capital Improvement Program (CIP) and the Street Fund for capital and operational/maintenance functions, respectively. However, there are many needs within the City that require funding from these sources and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater management within the City. To develop a comprehensive solution, additional funding is required for personnel and equipment as well as multiple capital projects, many of which will require more than $1 million dollars for each project. Given the current levels, it would take many years to address just one of those projects. In June 2018, the City Council recognized these needs and approved a consultant contract for a feasibility study (Resolution 131-18) and amended that agreement on two occasions (Resolutions 209-19 and 250-19) to provide additional investigation and details. That study was completed in August 2019 and updated in 2022 with more recent program costs, impervious area and associated fees. The Council also passed a resolution of intent to establish a stormwater utility in July 2022 (Resolution 157-22) and another resolution of intent in May 2024 (Resolution 143-24) which also approved an additional $150,000 in funding toward the project. DISCUSSION: As stated in May of this year, the additional $150,000 authorized development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts. While that effort has begun, staff proposes to engage Jacobs with a contract amendment to perform portions of this work as noted in the attached agreement. This includes aiding the City with the creation of the billing database and public parcel lookup tool as well as the future recalculation of impervious area to create the baseline in 2025 should the Council decide to move forward with creating the Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 utility by adopting Chapter 52. BUDGET/STAFF IMPACT: Of the previously allocated $150,000, staff proposes an amendment with Jacobs in the amount of $92,780. The additional funding will be used for staff time and future agreements if necessary. ATTACHMENTS: SRF (#3), Stormwater Funding Study Contract Amendment 4 (#4), 131-18 Resolution (#5), 209-19 Resolution (#6), 250-19 Resolution (#7), 157-22 Resolution (#8), 143-24 Resolution (#9) 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 #: 2024-430 Approval of Amendment 4 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $92,780 (total contract amount $675,722) A RESOLUTION TO APPROVE AMENDMENT NO. 4 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND JACOBS ENGINEERING GROUP, INC F/K/A CH2M HILL ENGINEERS, INC. IN AN AMOUNT NOT TO EXCEED $92,780.00 WHEREAS, on August 15, 2017, the City Council passed Resolution 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study; and WHEREAS, on June 4, 2018, the City Council approved Resolution 131-18, authorizing a contract with CH2M Hill Engineers, Inc., now known as Jacobs Engineering Group, Inc., to evaluate the feasibility of creating a stormwater utility program; and WHEREAS, on September 17, 2019, the City Council approved Resolution 209-19 approving Amendment No. 1 for additional travel and labor expenses; and WHEREAS, on November 5, 2019, the City Council approved Resolution 250-19, approving Amendment No. 2 for additional serviced related to the development of final recommendations for the creation of a stormwater utility; and WHEREAS, on July 5, 2022, the City Council approved Resolution 157-22 that expressed its intent to establish a stormwater utility for the purposes of funding needed stormwater and flood management water quality projects through a monthly stormwater fee to be paid by most property owners in Fayetteville; and WHEREAS, on May 21, 2024, the City Council approved Resolution 143-24 again expressing its intent to enact a stormwater utility ordinance and establish a stormwater management and water quality fund, and authorized additional services related to implementation and public outreach; and WHEREAS, additional funding is requested for assistance with the creation of the billing database and public parcel lookup tool as well as the future recalculation of impervious area to create the baseline. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Page 1 Resolution: 235-24 File Number: 2024-430 Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 4 to the Professional Services Agreement with Jacobs Engineering, Inc., a copy of which is attached to this Resolution, in an amount not to exceed $92,780.00. Page 2 Chris Brown Submitted By City of Fayetteville Staff Review Form 2024-430 Item ID 9/3/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 8/8/2024 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Approval of Amendment 4 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $92,780 (total contract amount $675,722) Budget Impact: 1010.090.6600-5314.00 General Fund Account Number Fund 17008.1 Stormwater Utility Feasibility Study Project Number Budgeted Item? Yes Does item have a direct cost? Yes Is a Budget Adjustment attached? No Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget Project Title $ 202, 685.00 $ 52,684.64 $ 150,000.36 $ 92,780.00 57,220.36 V20221130 Purchase Order Number: 2018-498 Previous Ordinance or Resolution # 131-18,209-19,250-19, Change Order Number: 4 Approval Date: Original Contract Number: 2018-23 Comments: City of Fayetteville, Arkansas Flood Management and Water Quality Funding Program Implementation —Amendment Client: Project name: Project number: D3320601 Description of change: Change requested by City of Fayetteville, Arkansas PCN no.: 001 Phase III of the Flood Management and Date: 7/15/2024 Water Quality Funding Program Attention: Alan Pugh Amendment to provide additional Customer Billing Database Support City of Fayetteville, Arkansas Date of request: 7/15/2024 Scope Definition Additional Subtasks for Customer Billing Database Task 1. Billing Database (August — October 2024) In this task, CH21VI HILL Engineers Inc. (CH2M HILL) will work with the City's Information Technology and Utility Departments to create a lookup tool application in ArcGIS Online (AGOL) that will allow citizens to search by address, parcel owner name and/or parcel number and provide their estimated stormwater fee and impervious area calculations for their parcel. Task I Deliverables and Assumptions • AGOL lookup tool • TM Guide on creating AGOL Look Up Tool Task 1 Assumptions 0 CH2M HILL will be given access to AGOL/Portal via a login Task 2 Process Workflow for Updates (November- April 2025) In this task, CH21VI HILL will work with City staff to 1) document the workflow process for incorporating utility data changes to the GIS and vice versa for the customer billing database and 2) automate this process to the extent possible. This task will consist of two in -person workflow meetings (Burhan, Tanya, GIS/IT team). The first meeting will be a chartering meeting to determine existing workflows and database configuration for the GIS and utilities department and to determine the path forward for automating (where possible) sewer and parcel updates. The second meeting will be to test the established workflow and provide training to appropriate staff for executing updates to the billing database. Under this task up to three scripts will be created, one for each of the following workflows: • Customer Billing Database/GIS database integration (to the extent possible) • Script for parcel updates • Script for utility updates Task 2 Deliverables • SQL stored procedure or python script • TM and documentation for scripts Task 2 Assumptions • There will be up to two in -person meetings in addition to bi-weekly status calls. • During the task chartering meeting, The City will determine the frequency of the parcel and utility database updates for script. • This task will not exceed 300 hours (this includes time for meetings, scripting, testing, and rescripting). • CH2M HILL will provide up to 24 hours of ad hoc support within the first year of the scripts being executed. Task 3. Recalculate IA (May 2025- August 2025) The objective of this task is to, where needed, re -relate the new impervious area (IA) imagery to the parcel layer to updated utility database to capture changes since original database was created. From this, the customer billing database will be refined with new IA calculations. Task 3 Deliverables • Geodata base of updated parcel layer with new IA calculations • TM of IA recalculation process Task 3 Assumptions • The City will QA/QC and deliver new IA data • The City will provide the IA data in vector format Task 4 Overall Project & Quality Management (June 2024-August 2025) The objective of this task is to recharter the project by defining the individual project roles, points of contact and project controls for the next 24 months. This includes managing, coordinating and proactively communicating the status of project resources, schedule, and budget. Task 4 Deliverables and Assumptions 12 monthly invoices and progress reports. Bi-weekly or monthly status calls, including an agenda, updated schedule, and action items. Task 4 Assumptions • Additional scope or tasks will be documented via a change order and/or amendment. Attachment A: Cost Breakdown for Tasks Task 1 Billin Database $13,540 Task 2 Process Workflow Updates $57,500 Task 3 Recalculate IA $13,000 Task 4 Project Management $5 940 Travel Additional travel (currently have $8,200) $1,800 General Expenses $1000 Total $928780 Attachment B: Timeline Jun July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun July Aug 24 24 24 24 24 24 24 25 25 25 25 25 25 25 25 Parcel Linking Customer Billing Database Process Workflow Updates Recalculate IA Project Mgmt. Article C. Authorization: ccepte for CLIENT by Accei#ed for Jacobs E gine ring Group Inc. by: ame. Lioneld -dan Name: Heather Smith, P. . itte: Ma - itte: Principal Project Manager 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 131-18 File Number: 2018-0267 STORMWATER UTILITY STUDY CONTRACT: A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH CH2M HILL ENGINEERS, INC., PURSUANT TO RFQ 18-02, IN AN MOUNT NOT TO EXCEED $229,222.00 FOR A STORMWATER UTILITY FEASIBILITY STUDY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study. 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 a professional services agreement with CH2M Hill Engineers, Inc., pursuant to RFQ 18-02, in an amount not to exceed $229,222.00 for a stormwater utility feasibility study. 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 6/5/2018 Attest: Sondra E. Smith, City Clerk TreasurerOCgS�,�� • ,A-- S °" Page 1 Printed on 615118 City of Fayetteville, Arkansas 113 West Mountain Street f�i \ Fayetteville, AR 72701 (479) 575-8323 w _ ; Text File �— File Number: 2018-0267 Agenda Date: 6/5/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 2 STORMWATER UTILITY STUDY CONTRACT: A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH CH2M HILL ENGINEERS, INC., PURSUANT TO RFQ 18-02, IN AN AMOUNT NOT TO EXCEED $229,222.00 FOR A STORMWATER UTILITY FEASIBILITY STUDY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study. 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 a professional services agreement with CH2M Hill Engineers, Inc., pursuant to RFQ 18-02, in an amount not to exceed $229,222.00 for a stormwater utility feasibility study. 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 61512018 City of Fayetteville Staff Review Form 2018-0267 Legistar File ID 6/5/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Chris Brown 5/15/2018 ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: Approval of the Stormwater Feasibility Study professional services contract with CH21VI Hill Engineers, Inc in an amount not to exceed $229,222 and to approve a budget adjustment. Budget Impact: 1010.090.6600-5314.00 General Fund Account Number 17008.1 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? Yes Fund Stormwater Utility Feasibility Study Project Title Current Budget $ 200,000.00 Funds Obligated $ 275.40 Current Balance C_ 199,724.60 Item Cost $ 229,222.00 Budget Adjustment $ 29,498.00 Remaining Budget $ 0.60 V20180321 Purchase Order Number: Previous Ordinance or Resolution # 175-17 Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 5, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: May 21, 2018 CITY COUNCIL MEMO SUBJECT: Approval of the Stormwater Feasibility Study professional services contract with CH2M Hill Engineers, Inc in an amount not to exceed $229,222 and to approve a budget adjustment. RECOMMENDATION: Approval of the Stormwater Feasibility Study professional services contract with CH2M Hill Engineers, Inc in an amount not to exceed $229,222 and to approve a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. In order to develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require in excess of $1 million dollars for each project. Given the current funding levels, it would take many years in order to address just one of those projects. The City Council recognized these needs and expressed the City's intent to move forward with a stormwater feasibility study on August 15, 2017 as noted in resolution 175-17. DISCUSSION: Upon approval by the Council in August of last year, staff began working with the purchasing division to draft an appropriate scope of work to go along with a request for professionals to submit their qualifications for consideration. This scope was shared with the Water and Sewer Committee and any comments from the committee were addressed. The RFQ was then published on January 2, 2018 and qualifications were due on or before and February 8, 2018. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 The City received statements of qualifications from 7 firms and from these the top 3 were interviewed by the selection committee. Of the top three firms, CH21VI Hill was selected as the most qualified and contract negotiations began. It should be noted that CH2M Hill was recently acquired by Jacobs and accordingly some of the following materials reference both firms. Although both are licensed in the state of Arkansas, the contract itself would be with CH2M Hill Engineers Inc. Subsequent to the selection of CH2M Hill as the most qualified firm, staff has worked to develop a contract that meets the expectations of the Administration and the City Council. This contact is attached for your consideration. Although it does slightly exceed the original approved amount, staff feels that all aspects are necessary for a thorough and complete study. This includes a robust public outreach program as well as the financial analysis and other aspects required to complete the study. It will also provide the platform should Council decide to move forward with implementation of the stormwater utility. It should be noted that there are also stopping points built into the contract so that at various times throughout the study, staff and CH21VI Hill would present the findings to council committee at which time the City would have the option to discontinue the study should it be necessary. BUDGET/STAFF IMPACT: The overall cost proposed is $229,222 which does include the opportunity for some additional services should they be required. The council originally set aside $200,000 from the general fund in order to pay for the study. This request also includes a budget adjustment that would provide the additional $29,222 from that same fund, and cover the cost of advertising the request for qualifications, for a total budget adjustment of $29,498. Attachments: Resolution 175-17 Stormwater Utility Contract STANDARD AGREEMENT FOR PROFESSIONAL SERVICES This AGREEMENT is between CH2M HILL ENGINEERS, INC., ("CH2M HILL"), and CITY OF FAYETTEVILLE, ARKANSAS ("CITY") for a PROJECT generally described as: Stormwater Utility Feasibility Study ARTICLE 1. SCOPE OF SERVICES AND FEE CH2M HILL will perform the Scope of Services at the Fee set forth in Attachment S. ARTICLE 2. COMPENSATION CITY will compensate CH2M HILL at rate schedule set forth in Attachment A. Work performed under this AGREEMENT may be performed using labor from affiliated companies of CH2M HILL. Such labor will be billed to CITY under the same billing terms applicable to CH2M HILL's employees. ARTICLE 3. TERMS OF PAYMENT CITY will pay CH2M HILL as follows: 3.1 Invoices and Time of Payment CH2M HILL will issue monthly invoices pursuant to Attachment B. Invoices are due and payable within 30 days of receipt. 3.2 RESERVED ARTICLE 4. OBLIGATIONS OF CH2M HILL 4.1 Standard of Care The standard of care applicable to CH2M HILL's Services will be the degree of skill and diligence normally employed by professional engineers or consultants performing the same or similar Services at the time said services are performed. 4.2 Subsurface Investigations In soils, foundation, groundwater, and other subsurface investigations, the actual characteristics may vary significantly between successive test points and sample intervals and at locations other than where observations, exploration, and investigations have been made. Because of the inherent uncertainties in subsurface evaluations, changed or unanticipated underground conditions may occur that could affect total PROJECT cost and/or execution. These conditions and cost/execution effects are not the responsibility of CH2M HILL. FORM 390 REVISED 1106 4.3 CH2M HILL's Personnel at Construction Site 4.3.1 The presence or duties of CH2M HILL's personnel at a construction site, whether as onsite representatives or otherwise, do not make CH2M HILL or CH2M HILL's personnel in any way responsible for those duties that belong to CITY and/or the construction contractors or other entities, and do not relieve the construction contractors or any other entity of their obligations, duties, and responsibilities, including, but not limited to, all construction methods, means, techniques, sequences, and procedures necessary for coordinating and completing all portions of the construction work in accordance with the construction Contract Documents and any health or safety precautions required by such construction work. 4.3.2 CH2M HILL and CH2M HILL's personnel have no authority to exercise any control over any construction contractor or other entity or their employees in connection with their work or any health or safety precautions and have no duty for inspecting, noting, observing, correcting, or reporting on health or safety deficiencies of the construction contractor(s) or other entity or any other persons at the site except CH2M HILL's own personnel. 4.3.3 The presence of CH2M HILL's personnel at a construction site is for the purpose of providing to CITY a greater degree of confidence that the completed construction work will conform generally to the construction documents and that the integrity of the design concept as reflected in the construction documents has been implemented and preserved by the construction contractor(s). CH2M HILL neither guarantees the performance of the construction contractor(s) nor assumes responsibility for construction contractor's failure to perform work in accordance with the construction documents. For this AGREEMENT only, construction sites include places of manufacture for materials incorporated into the construction work, and construction contractors include manufacturers of materials incorporated into the construction work. 4.4 Opinions of Cost, Financial Considerations, and Schedules In providing opinions of cost, financial analyses, economic feasibility projections, and schedules for the PROJECT, CH2M HILL has no control over cost or price of labor and materials; unknown or latent conditions of existing equipment or structures that may affect operation or maintenance costs; competitive bidding procedures and market conditions; time or quality of performance by operating personnel or third parties; and other economic and operational factors that may materially affect the ultimate PROJECT cost or schedule. Therefore, CH2M HILL makes no warranty that CITY's actual PROJECT costs, financial aspects, economic feasibility, or schedules will not vary from CH2M HILL's opinions, analyses, projections, or estimates. 4.5 RESERVED 4.6 Record Drawings Record drawings, if required, will be prepared, in part, on the basis of information compiled and furnished by others, and may not always represent the exact location, type of various components, or exact manner in which the PROJECT was finally constructed. CH2M HILL is not responsible for any errors or omissions in the information from others that is incorporated into the record drawings. 4.7 Access to CH2M HILL's Accounting Records CH2M HILL will maintain accounting records, in accordance with generally accepted accounting principles. These records will be available to CITY during CH2M HILL's normal business hours for a period of 1 year after CH2M HILL's final invoice for examination to the extent required to verify the direct costs (excluding established or standard allowances and rates) incurred hereunder. 4.8 CH2M HILL's Insurance CH2M HILL will maintain throughout this AGREEMENT the following insurance: (a) Worker's compensation and employer's liability insurance as required by the state where the work is performed. (b) Comprehensive automobile and vehicle liability insurance covering claims for injuries to members of the public and/or damages to property of others arising from use of motor vehicles, including onsite and offsite operations, and owned, nonowned, or hired vehicles, with $1,000,000 combined single limits. (c) Commercial general liability insurance covering claims for injuries to members of the public or damage to property of others arising out of any covered negligent act or omission of CH2M HILL or of any of its employees, agents, or subcontractors, with $1,000,000 per occurrence and in the aggregate. (d) Professional liability insurance of $1,000,000 per occurrence and in the aggregate. (e) CITY will be named as an additional insured with respect to CH2M HILL's liabilities hereunder in insurance coverages identified in items (b) and (c) and CH2M HILL waives subrogation against CITY as to said policies. FORM 390 FAYETTEVILLE AR 512018 ARTICLE 5. OBLIGATIONS OF CITY 5.1 CITY -Furnished Data CITY will provide to CH2M HILL all data obtained within the last five years and currently in CITY's possession relating to CH2M HILL's services on the PROJECT. CH2M HILL may request additional relevant data if necessary for the PROJECT. CH2M HILL will reasonably rely upon the accuracy, timeliness, and completeness of the information provided by CITY. 5.2 Access to Facilities and Property CITY will make its facilities accessible to CH2M HILL as required for CH2M HILL's performance of its services and will provide labor and safety equipment as required by CH2M HILL for such access. CITY will perform, at no cost to CH2M HILL, such tests of equipment, machinery, pipelines, and other components of CITY's facilities as may be required in connection with CH2M HILL's services. 5.3 Advertisements, Permits, and Access Unless otherwise agreed to in the Scope of Services, CITY will obtain, arrange, and pay for all advertisements for bids; permits and licenses required by local, state, or federal authorities; and land, easements, rights -of -way, and access necessary for CH2M HILL's services or PROJECT construction. 5.4 Timely Review CITY will examine CH2M HILL's studies, reports, sketches, drawings, specifications, proposals, and other documents; obtain advice of an attorney, insurance counselor, accountant, auditor, bond and financial advisors, and other consultants as CITY deems appropriate; and render in writing decisions required by CITY in a timely manner. 5.5 Prompt Notice CITY will give prompt written notice to CH2M HILL whenever CITY observes or becomes aware of any development that affects the scope or timing of CH2M HILL's Services, or of any defect in the work of CH2M HILL or construction contractors. 5.6 Asbestos or Hazardous Substances 5.6.1 If asbestos or hazardous substances in any form are encountered or suspected, CH2M HILL will stop its own work in the affected portions of the PROJECT to permit testing and evaluation. 56.2 If asbestos is suspected, CH2M HILL will, if requested, manage the asbestos remediation activities using a qualified subcontractor at an additional fee and contract terms to be negotiated. 5.6.3 It hazardous substances other than asbestos are suspected, CH2M HILL will, if requested, conduct tests to determine the extent of the problem and will perform the necessary studies and recommend the necessary remedial measures at an additional fee and contract terms to be negotiated. 5.6.4 Client recognizes that CH2M HILL assumes no risk and/or liability for a waste or hazardous waste site originated by other than CH2M HILL. 5.7 Contractor Indemnification and Claims 5.7.1 CITY agrees to include in all construction contracts the provisions of Article 4.3, CH2M HILL's Personnel at Construction Site, and provisions providing contractor indemnification of CITY and CH2M HILL for contractor's negligence. 5.7.2 CITY shall require construction contractor(s) to name CITY and CH2M HILL as additional insureds on the contractor's general liability insurance policy. 5.7.3 CITY agrees to include the following clause in all contracts with construction contractors, and equipment or materials suppliers: "Contractors, subcontractors, and equipment and material suppliers on the PROJECT, or their sureties, shall maintain no direct action against CH2M HILL, CH2M HILL's officers, employees, affiliated corporations, and subcontractors for any claim arising out of, in connection with, or resulting from the CH2M HILL's services performed. CITY will be the only beneficiary of any undertaking by CH2M HILL." 5.8 Reserved 5.9 Litigation Assistance The Scope of Services does not include costs of CH2M HILL for required or requested assistance to support, prepare, document, bring, defend, or assist in litigation undertaken or defended by CITY. All such Services required or requested of CH2M HILL by CITY, except for suits or claims between the parties to this AGREEMENT, will be reimbursed as mutually agreed. 5.10 Changes -see Supplemental Terms ARTICLE 6. GENERAL LEGAL PROVISIONS 6.1 Authorization to Proceed Execution of this AGREEMENT by CITY will be authorization for CH2M HILL to proceed with the work, unless otherwise provided for in this AGREEMENT. 6.2 Reuse of PROJECT Documents All reports, drawings, specifications, documents, and other deliverables of CH2M HILL, whether in hard copy or in electronic form, are instruments of service for this PROJECT, whether the PROJECT is completed or not. 6.3 Force Majeure CH2M HILL is not responsible for damages or delay in performance caused by acts of God, strikes, lockouts, accidents, or other events beyond the control of CH2M HILL FORM 398 FAYETTEVILLE AR 5018 6.4 Limitation of Liability 6.4.1 To the maximum extent permitted by law, CH2M HILL's liability for CITY's damages will not, in the aggregate, exceed $1,000,000. 6,4.2 This article takes precedence over any conflicting article of this AGREEMENT or any document incorporated into it or referenced by it. 6.4.3 This limitation of liability will apply whether CH2M HILL's liability arises under breach of contract or warranty; tort; including negligence; strict liability; statutory liability; or any other cause of action, and shall include CH2M HILL's officers, affiliated corporations, employees, and subcontractors. 6.5 Termination 6.5.1 This AGREEMENT may be terminated by the City for convenience on 30 day's written notice by the City, or for cause if either party fails substantially to perform through no fault of the other and does not commence correction of such nonperformance within 5 business days of written notice and diligently complete the correction thereafter. 6.5.2 On termination, CH2M HILL will be paid for all authorized and satisfactory services performed up to the termination date. 6.6 Suspension, Delay, or Interruption of Work CITY may suspend, delay, or interrupt the Services of CH2M HILL for the convenience of CITY. In such event, CH2M HILL's contract schedule shall be equitably adjusted. 6.7 No Third -Party Beneficiaries This AGREEMENT gives no rights or benefits to anyone other than CITY and CH2M HILL and has no third -party beneficiaries, 6.8 Indemnification- See Supplemental Terms 6.9 Assignment This is a bilateral personal Services AGREEMENT. Neither party shall have the power to or will assign any of the duties or rights or any claim arising out of or related to this AGREEMENT, whether arising in tort, contract or otherwise, without the written consent of the other party. Any unauthorized assignment is void and unenforceable. These conditions and the entire AGREEMENT are binding on the heirs, successors, and assigns of the parties hereto. 6.10 Reserved 6.11 Reserved 6.12 Jurisdiction The substantive law of, the state of ARKANSAS, shall govern the validity of this AGREEMENT, its interpretation and performance, and any other claims related to it. See SUPPLIMENTAL TERMS for venue. 6.13 Severability and Survival 6.13.1 If any of the Provisions contained in this AGREEMENT are held for any reason to be invalid, illegal, or unenforceable, the enforceability of the remaining provisions shall not be impaired thereby. 613.2 Limitations of liability, indemnities, and other express representations shall survive termination of this AGREEMENT for any cause. 6,14'Materials and Samples Any iterps, substances, materials, or samples removed from thq PROJECT site for testing, analysis, or other evaluation will be returned to the PROJECT site within 60 days of. PROJECT close-out unless agreed to otherwise. CITY recognizes and agrees that CH2M HILL is acting as a bailee and at no time assumes title to said items, substances, materials, or samples. 6.15 CH2M HILL's Deliverables CH2M HILL's deliverables, including record drawings, are limited to the sealed and signed hard copies. Computer -generated drawing files furnished by CH2M HILL are for CITY or others' convenience. Any conclusions or information derived or obtained from these files will be at users sole risk. FORM 390 FAYETTEVILLE AR 5/2010 6.16 Dispute Resolution The parties will use their best efforts to resolve amicably any dispute, including the possible use of alternative dispute resolution options. 6.17 Ownership of Work Product and Inventions All of the work product of the CH2M HILL in executing this PROJECT shall remain the property of C112M HILL. CITY shall receive a perpetual, royalty -free, non- transferable, non-exclusive license to use the deliverables for the general purpose of stormwater management and the feasibility of the stormwater utility. Any inventions, patents, copyrights, computer software, or other intellectual property developed during the course of, or as a result of, the PROJECT shall remain the property of the CH2M HILL subject to the City's free, perpetual, non-exclusive license to use for its purposes. ARTICLE 7. ATTACHMENTS, SCHEDULES, AND SIGNATURES This AGREEMENT, including its attachments and schedules, constitutes the entire AGREEMENT, supersedes all prior written or oral understandings, and may only be changed by a written amendment executed by both parties. The following attachments and schedules are hereby made a part of this AGREEMENT: Attachment A —RATE SCHEDULE Attachment B—SCOPE OF WORK AND FEE Attachment C—SUPPLEMENTAL TERMS IN WITNESS WHEREOF, the parties execute below: For CITY, CITY OF FAYETTEVILLE, ARKANSAS dated this -4e& j% day of -KW , tt _ 2018 4 Signature Attest: Name (printed) Lioneld Jo r Name Sondra Smith Title Mayor Title City Clerk 0%111111111J." RK �•Tve ���� For CH2M HILL, CH2M HILL ENGINEERS, INC., = Vi,�G�ZY OF'•G���I dated this 10th day of MAY 2018 •p o, = Q Signature ��i�7'• �RKANS, •' J�.� G TO Name (printed) art Jeffcoat, PhD Title VICE PRESIDENT FORM 396 FAYETTEVILLE AR 5018 Attachment A Labor Rate Schedule Functional Labor Category 2018 Rates' Principal Manager/ Consultant $225 Senior Technologist/ Consultant $190 Senior Project Manager / Project Technologist $175 Project Manager / Consultant $160 Associate Project Manager / Consultant $140 Project Engineer $125 Associate Engineer/Consultant $115 Staff Engineer / Consultant $100 Engineer Intern / Scientist $85 Designer / Tech / RPR - 5 $130 Designer / Tech / RPR - 4 $110 Designer / Tech / RPR -3 $90 Designer / Tech / RPR- 2 $80 Designer / Tech / RPR - 1 $70 Designer / Tech / RPR - 0 $60 Admin Staff II $85 Admin Staff 1 $60 Notes; 1. The indicated labor rates are subject to escalation annually, beginning on January 1st of each calendar year. 2. Vehicle mileage will be charged at the prevailing IRS rate. 3. Expenses and outside services will be billed at cost. FRIDAY, MAY 11, 2018 FAYETTEVILLE AR SW FEASIBILITY STUDY Attachment B - Scope and Fee for RFQ 18-02 Stormwater Utility Feasibility Study for the City of Fayetteville, Arkansas May 11, 2018 BS OLSSON e, i ASSOCIATES Iu��eunq su�uuu SCOPE AND FEE FOR RFQ!a-72, STORI OIATER FEASIBILITY STUDY ProjectApproach .... :................................................................................................................................... 3 StudyPhases......................................................................................................................................................... 3 StudyTeam....................................................................................................................................................... 3 EstimatedFee by Task................................................................................................................................3 Milestones..................................................................................................................................................4 Phase I — Scope of Services for Stormwater Feasibility Study.....................................................................5 Task1. Project Chartering.................................................................................................................................... S Task 2, Stormwater Program Costs......................................................................................................................6 Task 3. Financial Planning and Rate Analysis....................................................................................................... 9 Task 4. Policy and Ordinance Development.. —.— ........................ .................................. ....... I........................... 11 Task S, Public Outreach and Education.............................................................................................................. 13 Task 6. Stormwater Feasibility Report............................................................................................................... 17 Task7. Project Management............................................................................................................................. 17 Task8. Additional Services.................................................................................................................................18 21 SCOPE AND FEE FOR RM 18 02, STORMWATER FEASIBILITY ST OY Project Approach The CH2M — McGoodwin Williams and Yates Team (the Team) is proud to submit this scope and fee to support the City of Fayetteville (the City) in meeting its evolving stormwater management and flood prevention needs. Our Team's extensive local experience and presence paired with our nationally recognized experts in the development of stormwater utilities will cost effectively support the City in developing a program that reflects the needs of Fayetteville residents, as well as its own drivers for enhanced stormwater management. Study Phases This scope of work represents Phase I of two phases, Phase I — Stormwater Feasibility Study, and Phase II — Implementation, that would carry the City of Fayetteville through adoption of an ordinance for a stormwater enterprise fund and initial billing. Since the scope and estimated fee for Phase 11 is dependent on the findings of Phase I, a planning -level estimate is provided separately for Phase II. Study Tearn The Study Team will closely reflect that presented to the City of Fayetteville in the Statement of Qualifications and interview: !an Ulmer. PE Lan Oste+void. PE Laurem van der Tak, O. WRE Steve M,1*1 Michael Natbchich Chr� Brackett. PE. CFM "dh 8ishtoo Chars Hail, PE Estimated Fee by Task CITY OF FAYETTEVILLE ARKAN ApKANSAS Heather Dyke, AICP Mahael Matxhrch 6:Policy and Ordinance Tas k S: Public Outr eaih and Development Education t. s. [_ Table 1 summarizes the Study Team's estimated fee by task for the services described herein. TABLE 1. ESTIMATED FEE BY TASK Task# Task Phase I: Feasibility Study Task 1 Chartering $ 9,370 Task 2 Stormwater Program Costs $ 43,618 Task 3 Financial Planning and Rate Analysis $ 34,410 Task 4 Policy and Ordinance Development $ 24,365 Task 5 Public / Stakeholder Education and Outreach $ 57,939 Task 6 Stormwater Feasibility Report $ 32,800 Task 7 Project Management $ 10,920 Task 8 Additional Services $ 15,800 Total Fee $ 229,222 31 SCOPE AND FEE FOR RFQ 18-02, STORMWATER FEASIBILITY STUDY Milestones Table 2 outlines the key milestones for both phases, Phase I (a) — Stormwater Feasibility Study in 2018 and 2019, and Phase It (b) — Implementation in 2019 and 2020, that would carry the City of Fayetteville through adoption of an ordinance for a stormwater enterprise fund and initial billing Table 2. Key Milestones Phase I Mllestone Anticipated Schedule (2018 - 2019) Notice to Proceed (NTP) June 2018 Chartering Workshop with STAC and Special Council Committee June • Prepare Stormwater Program Needs and Extent of Service Analysis • Prepare Preliminary SW Billing Database Estimates (City GIS) June to August Special Committee Meeting #1- Stormwater Program Needs and Extent of Service Analysis August Special Committee Meeting #2 - SW Program LOS / EOS and Credit Options Early December 2018 Special Committee Meeting #3 - SW Billing and Financial Planning Options January 2019 Special Committee Meeting #4 - Final Draft Stormwater Feasibility Study Report February 2019 Final Stormwater Feasibility Study Report and Project Close-out March 2019 4 SCOPE AN F—Eir MR €iFQ I8-02, SIORRAWA'ER FE°wSIFII I TV STUDY Phase I — Scope of Services for Stormwater Feasibility Study The following subsections describe the Team's technical approach for Phase I, which is organized into the seven major tasks listed in Table 3. Table 3 provides a crosswalk between this scope and fee and the original scope of services provide in the January 2018 RFP. Table 3. Cross Walk to Original RFP Task # Task January RFP Scope Items Task 1 Chartering a- and b. Task 2 Stormwater Program Costs c and d Task 3 Financial Planning and Rate Analysis e. Task 4 Policy and Ordinance Development f., g., and h. Task 5 Public / Stakeholder Education and Outreach b. and I. Task 6 Stormwater Feasibility Report j. Task 7 Project Management Task 8 Additional Services I. The deliverables and assumptions for Phase I are summarized in Table 4. It is the Team's understanding that the City will self -perform the following services: • Facilitate meetings with various departments to discuss funding needs and potential involvement in the program (Task S). • Provide information previously developed by City Staff regarding the creation of a utility (Task 1). • Conduct public involvement meetings and public hearings as required (Task S). • Aerial mapping of impervious surfaces in GIS format (Task 3). Task 1. Project Chartering The Team will meet with the City to fully develop the scope of services prior to the final notice to proceed therefore Task 1, Project Chartering task will focus on: • Establishing a Strategic Vision and Goals for Fayetteville's Stormwater Feasibility Study • Study and Schedule Overview • Review draft Public Engagement Plan • Establish and charter Staff Technical Advisory Committee (STAC) • Distribute Initial Request for Information for Feasibility Study A key component of the draft Public Engagement Plan will be the development of an integrated implementation schedule for staff review. As illustrated in the Proposed Project Approach, the goal and intent is to involve internal (Mayor, Council, special Committee, STAC) and external stakeholders in each of the major decision 51� FEE FOP RFQ1 '8-C1 , � . UPAVVVAT v __i:AS1>3[y{I Y 5 JIM points: • `There will Fayetteville provide stormwater services (extent of service) and what services will be provided, where and at what frequency (level of service)? • What mix of funding options does Fayetteville prefer for each of the services provided (i.e. operation and maintenance, flood prevention and capital improvements)? • If a stormwater fee is used to fund these services, what rate structure best suits Fayetteville? • Will debt service be considered or is a pay -go model preferred? • How can a Stormwater Credit System be structured to encourage proactive and progressive stormwater management practices in Fayetteville? To ensure maximum participation by stakeholders, the Team will work with the City to establish a schedule that is cognizant of the University of Arkansas academics and sports as well as other major initiatives being coordinated by Fayetteville such as the April 2019 bond vote to fund drainage capital improvements, Deliverables 1. Prepare draft Chartering workshop agendas and presentations for staff review 2. Prepare draft integrated implementation schedule reflecting draft Engagement Plan. 3. Prepare Initial Request for Information for Feasibility Study 4. Facilitate Project Chartering workshop with STAC (day 1) 5. Facilitate Special Committee Meeting #1- Vision / Goals, Engagement Plan and Study Overview (day 2) 6. Meeting Summary of Project Chartering workshop Assumptions • Fayetteville staff will facilitate the selection of the STAC and ongoing scheduling logistics of STAC meetings. • 2-3 representatives of the CFI2M — MWT team will be present for the Project Chartering workshop (day 1). • 1 representatives of the Team will be present for Special Committee Meeting 41 - Vision / Goals, Engagement Plan and Study Overview (day 2). i All other fees related to the Team attending internal and external meetings can be found under Task S. Task 2. Stormwater Program Costs Task 2, Stormwater Program Costs includes services related working with STAC to perform a needs analysis, and assisting with development of the following program components: Assist in defining the appropriate level of service (LOS) and scope of the system to be maintained as public. A range of service levels should be developed for consideration by the City Council Aid in the development of a maintenance and capital improvement plan Determine staffing requirements and organizational structure 61 MOH AN[I FEE N;IiiiFs_),15-0Z,S'rJRM,A)A'ERFrrAS, IF31i.1I'Y51U Y As part of Task 2, the Team will work with the STAC (STAC meeting #1) to perform a stormwater needs analysis that integrates regulatory drivers, such as the City's MS4 permit, recent flood study updates, flood or drainage service calls, system renewal or replacement needs, and stakeholder feedback. This analysis will define additional stormwater services expected of Fayetteville, such as those identified in a 2015 ADEQ MS4 audit that all outfalls must be screened once every five years, sampling results should be included on annual reports, stormwater pollution prevention plans (SWPPPs) must be completed, and staff training must be provided for all facilities under City oversight. STAC (STAC meeting #1) will start to bracket the range of service options included in Task 2.1. Task 2.1 Definition of Extent of Service and Level of Service. This subtask includes determining what parts of the system the City maintains, or extent of service (EOS), and what services the city provides within this area (LOS); these critical initial decisions will set the baseline for the program. To date, the City has not had a dedicated funding source for stormwater services, and the LOS has been limited to meeting basic regulatory requirements and responding only to emergency repairs. Activities performed under the proposed LOS will address aging infrastructure, provide a proactive inspection and maintenance program, and enable improved response to citizen calls. A preliminary draft range of stormwater service levels will be developed for the City's consideration, such as a basic (current), standard, and proactive LOS, for at least a 5-year planning cycle. Baseline — Existing conditions —ry,, .- t,. r .iid�ivaiu—riuviuc lull ivies-+, �uiuNiia�i�c niiu �uiiciy ic�}.wiuc iu uiauiagc uauc� vviu:i iiiin�cu niUiicy iUi innovative practices or sustainable stormwater / watershed improvement projects. Proactive - Provide full MS4 compliance and timely response to drainage issues and active flood prevention program with the potential for buyouts as well as a focus on innovative, sustainable stormwater / watershed improvement projects. Three preliminary draft EOS options will be developed for the City's consideration, such as: • Baseline — Existing conditions, Fayetteville maintains the public MS4 (roads and right of ways) and the limited private stormwater infrastructure with drainage easements. • Standard — Baseline plus public maintenance to the upstream end of the first connected private structure. • Proactive — Standard, plus those creeks / stormwater conveyances that drain areas greater than X acres. Draft programmatic cost estimates for these LOS / EOS options will be tabulated (over 5 years) for up to 6 program areas, i.e. cost centers, such as, operations and maintenance, program administration / customer service, compliance and inspections, stormwater planning and capital improvements program (CIP). As part of Task 2.1, the Team will facilitate feedback from the STAC (STAC meeting #2) and the Special Committee (committee meetings 41 and #2) on these preliminary Draft Stormwater LOS / EOS options. 7) SCOPE. A;Pdn F,.E. ROR R.FQ 18-02, STQRMWATF.R FEASIBI1rrr STUDY Task 2.2 Programmatic Stormwater 0 & M and Capital Improvement Plan. Given available resources, the current program has focused on meeting regulatory requirements; any major stormwater infrastructure projects have been budgeted as specific capital improvements. This task will summarize the City's existing stormwater management, drainage improvement and capital improvement planning efforts so the team can support the City in determining the optimal LOS, as well as funding sources for these activities. The resulting draft Programmatic Stormwater 0 & M and Capital Improvement Plan will provide a high-level path forward for the more detailed master planning and prioritization efforts that would be needed should a fee be implemented. As part of Task 2.2, City Council will be briefed on a final draft of the Stormwater LOS / EOS options and draft Programmatic Stormwater 0 & M and Capital Improvement Plan. Feedback from Council will be used to generate SW Policy Paper #1- SW Program Costs (EOS and LOS) as part of Task 4 that will be used throughout Task 5 to communicate with internal and external stakeholders. Stakeholder preferences regarding these LOS / E05 options will be documented in Task 6 as part of the Stormwater Feasibility Study. Task 2.3 Staffing requirements and organizational structure. As part of Task 2.3, the Team will support Fayetteville and the consultant selected for RFP 18-03, Organizational Development Consultant, in identifying staffing requirements and potential organizational structures. The Team will solicit initial feedback from the STAC (STAG meetings 41-2) and the Special Committee (committee workshop #2) on the range of organizational options to be vetted by Feasibility Study. STAC Meeting #4, Draft SW Credit Program and Financial Planning, will summarize these staffing requirements. After completion of Task 2.2, the Team will prepare a draft section of the Feasibility Study presenting an analysis of these organizational options, which could range from a new stormwater organization to a matrixed organization that leverages existing resources and sharing of expertise between City departments. Deliverables — 1. Materials for STAC meeting 41— Stormwater Needs Analysis and SW 0 & M and Capital Improvement Planning, based on Strategic Vision and Goals from Project Chartering Workshop 2. Preliminary Draft LOS / EOS options, including a basic (current), standard, and proactive LOS, for at least a 5- year planning cycle. Draft programmatic cost estimates for these LOS / EOS options will be tabulated (over 5 years) for up to 6 program areas. 3. Materials for Special Committee workshop 41 on Stormwater Program Needs and Extent of Service Analysis 4. Draft Programmatic Stormwater 0 & M and Capital Improvement Plan with a description of the City's existing stormwater management, drainage improvement and capital improvement planning efforts as well as a high- level path forward for the more detailed master planning and prioritization efforts that would be needed should a fee be implemented. S. Materials for STAC meeting #2 and Special Committee workshop #2 on Preliminary Draft Stormwater LOS / EOS options 6, Draft Stormwater Program Cost and Programmatic Stormwater 0 & M and Capital improvement Plan sections for Feasibility Study. a SCOPEAMD C.E.F:^RFIF: ]0^07,STO^,P,1W,T:Et> ASIEIL€7Y5€t.�Jr Assumptions — • Meeting attendance and coordination is included in Task 5. Public Education and Outreach. • Definition of the City of Fayetteville's current stormwater MS4, level of service and extent of service will be based on readily available information provided by the City. • Feedback from STAC Meeting #2 and Special Committee Meeting #2 will be used to generate SW Policy Paper # 1- SW Program Costs (EOS and LOS) part of Task 4 that will be used throughout Task 5 to communicate with internal and external stakeholders. • All draft task documents will be finalized as part of Task 6, Stormwater Feasibility Study. • To the extent practical, one set of consolidated and adjudicated comments from Fayetteville staff are appreciated. Task 3. Financial Planning and Rate Analysis Task 3, Financial Planning and Rate Analysis includes services related to the funding components of the Study: • Work with STAC to determine financial needs for which the funds from the storm water utility fee may be used, • Assist in determining a reasonable rate model for residential uses, • Assist in determining a reasonable rate model for commercial uses, • Ensure rate models selected will meet the financial needs of the program. This item should include a detailed 5-year cash flow analysis at minimum. A range of fees corresponding to various levels of service is expected. • Consult with City's GIS division to develop compatible parcel -based stormwater utility layers for identification of rates and to aid in the billing process, • Identify alternative billing and collection options with pros and cons of each alternative, • Financing Options should the City so choose to try and finance a portion up front. Task 3 will provide financial planning, rate analysis, and billing support to the City of Fayetteville as it assesses the feasibility of a stormwater utility. This task will use an iterative process to help the City identify the right balance of stormwater services, given its financial capacity and stakeholder priorities. Task 3.1 Financial Needs Analysis. As part of Task 3.1, the Team will help the City and the STAC identify the revenue necessary to adequately fund the stormwater program options using a pro forma financial spreadsheet model (financial / rate model) developed in this task. STAC meeting #1—Stormwater Needs Analysis will also serve as a forum for defining the overall structure of the model to ensure it reflects any financial inputs or assumptions unique to the City of Fayetteville. The financial model will be used to evaluate the feasibility of achieving the desired EOS/LOS options based on an assessment of willingness to pay determined through the public engagement outlined in Task S. The LOS / EOS cost estimates developed in Task 2.1 and preliminary stormwater billing database estimates generated by the City's GIS division, with support from the Team in Task 3.2, will be used as inputs to the model. The model will provide a detailed S-year cash flow analysis and planning level projections over a longer timeframe with financing options should the City be interested in exploring the use of stormwater debt financing to enable faster implementation of capital needs or to leverage the fee program to accomplish affordability objectives. The results of Task 3.1 will be presented as the Draft Financial Needs Analysis and Planning section for stakeholder feedback as part of STAC Meeting #3 and Special Committee Meeting #3. 9� SC( PE ANn FFF FOR i)A 22-W, STORfUAWER rEASIBIL T:.l' STi} )Y Task 3.2 Stormwater Billing Approach and Database. As part of Task 3.2, the Team will support the City GIS Division in developing a preliminary stormwater billing database using Fayetteville's existing parcel and pending impervious data layers. Ideally, this preliminary stormwater billing database will include: • Parcel Identification Number • Ownership • Ownership type • Utility Customer Code, Land Use Code or similar information to support a crosswalk to general billing classes and potential residential tiers. • Estimate of all impervious surfaces within parcel. To do so, the Team will facilitate 3 conference calls in addition to interactions as part of the STAC, with GIS division staff to identify the City's preliminary stormwater billing database approach. This subtask will also identify the most cost-effective stormwater billing mechanism for Fayetteville. It will assess the most practical approach for the City given relevant factors such as the capability of the software systems used to issue utility bills and property tax bills to accommodate additional charges such as the stormwater fee program. Based on this assessment, a draft Stormwater Billing Approach will outline alternative billing and collection options with pros and cons of each mechanism. STAC Meeting #3 and Special Committee Meeting #3 will be used to present the pros and cons of billing via annual property taxes, monthly utility bills or via a separate stand -along bill. Feedback from these internal stakeholders will be used to generate SW Policy Paper #3 — Billing Options as part of Task 4 that will be used throughout Task 5 to communicate with internal and external stakeholders. Stakeholder preferences regarding these stormwater billing options will be documented in Task 6 as part of the Stormwater Feasibility Study, Task 3.3 Stormwater Rate Analysis. The stormwater rate analysis will use the financial model developed in Task 3.1 to help Fayetteville assess the most suitable rate structure to meet its stormwater financial needs in an equitable manner and consistent with the complexity of Fayetteville's customer base and stormwater system. As part of this task, the Team will help the City and STAC weigh the benefits of a series of rate structure alternatives against the implementation costs of developing and maintaining each alternative on an ongoing basis. The stormwater rate analysis will consider a range of reasonable residential and commercial fees corresponding to the LOS / EOS options developed in Task 2. For the purposes of this proposal, commercial properties are assumed to also include public and institutional properties, such as the University of Arkansas and Fayetteville public schools. The rate analysis will consider alternatives such as whether residential properties should be charged a flat rate or a tiered rate. While a flat rate is easier to administer, a tiered rate tends to be more equitable, recognizing that smaller, single-family properties contribute less stormwater and thus should pay less than larger single-family properties, which place a greater burden on City's system. However, the more tiers there are, the higher the administrative cost and the greater likelihood of categorizing properties into the wrong tier, resulting in a higher number of appeals of bills. By studying the distribution of Fayetteville's single-family homes, the Team will help the City develop a structure that is legally defensible, while minimizing administrative burdens. 101 Ci'L PdI} L -OR: QI8-011.,S-T0Re1WA1eR E SIBI ITYSTUN STAC Meeting #4 and Special Committee Meeting #3 will be used to present the draft results of the Stormwater Rate Analysis. Feedback from these internal stakeholders will be used to generate SW Policy Paper #2 - Rate Structure and Credit Options as part of Task 4 that will be used throughout Task 5. Stakeholder preferences regarding these stormwater rate structures will be documented in Task 6 as part of the Stormwater Feasibility Study Deliverables — 1. Stormwater pro forma financial spreadsheet model (financial / rate model) with a detailed 5-year cash flow analysis and planning level projections over a longer timeframe. 2. 3 conference calls with GIS division staff (in addition to interactions as part of the STAC), to identify the City's preliminary stormwater billing database approach. 3. Draft Stormwater Billing Approach section for STAC Meeting #3 and Special Committee Meeting #3 4. Draft Financial Needs Analysis and Planning section for STAC Meeting #4 and Special Committee Meeting #3 5. Draft Stormwater Rate Analysis section for STAC Meeting #5 and Special Committee Meeting #3 Assumptions • The City GIS Division will be responsible for developing a preliminary Stormwater billing database as part of Task 3.2 using Fayetteville's existing parcel and pending impervious data layers. This is a critical path item with the potential to delay later tasks. • Feedback from STAC Meeting #4 and Special Committee Meeting 43 will be used to generate SW Policy Paper H L JVV (tale )LFULLUI e dnp VIIIIng Upuuns ds pJad L ui dds.k 4 LflaL wIii ue USeu udduugiIOU L i dsk SLu communicate with internal and external stakeholders. • Feedback from STAC Meeting #4 and Special Committee Meeting #3 will be used to generate SW Policy Paper #S - SW Financial Planning • Stakeholder feedback will be documented in Task 6 as part of the Stormwater Feasibility Study. Task 4. Policy and Ordinance Development Task 4, Policy and Ordinance Development, includes services related: Assist with policy development- Aid in the identification the program mission and priorities and develop policies consistent with those principles. Assist with the development of policies for credits and appeals - o Assist in determination applicable credits for commercial and residential uses and how the credits will be applied, o Assist in the determination of applicable credits for development projects and how the credits will be applied, o Assist with development of a Customer Appeals Process Assist with Ordinance Development and Revision - Assist in determining legal requirements for creating the program should the City decide to move forward SCOFF AND FHE FOR R= Q 15-02; STOR r WA"E s HAS01111Y STUDY Implementation of an enhanced stormwater management program would require developing and defining specific policies and procedures to facilitate effective operations and to communicate to stakeholders exactly what is covered in the program and where Fayetteville provides services. As part of Task 4, the Team will work closely with the City's legal staff to develop a series of stormwater utility policy papers tailored to the City's stormwater needs, while reflecting the foundational legal requirements for defensible fee outlines. If warranted, the Team will augment the City's extensive experience with our national resources to develop a corresponding ordinance establishing a stormwater enterprise fund. Task 4.1 Policy Development First the Team will work with the STAC to develop a list of key policy issues such as: Cost of Stormwater Services: what mix of stormwater services is the City and its stakeholders willing to fund? The cost of various LOSs can be identified and presented to support the feasibility process. Stormwater Rate Structure: is there sufficient variation in the characteristics of single-family residential properties to merit some distinction in rate structures (e.g., for townhouses, for large, medium and small single-family homes)? Credit and Appeal Policies: should credits and exemptions be limited to properties that install onsite stormwater management facilities? Should credits be provided to customer groups in exchange for in -kind services, such as environmental education that helps meet the City's MS4 permit requirements (e.g., schools, churches)? Based on this list of policy issues and initial public engagement efforts, the Team will develop brief policy papers as part of Task 4. Up to five policy papers would be developed to describe the issue, alternatives, concerns and benefits, and recommendations. Task 4.2 Credit and Appeal Policies As part of Task 4.2, the Team will support Fayetteville with determining the applicable range of credits available to residential and non-residential customers and how these credits would be applied. STAC Meeting #4 and Special Committee Meeting #2 will be used to review the "universe" of credit options encompassed by the City's Drainage Manual and Ordinances as well as innovative credits to raise stakeholder awareness and encourage innovative practices. Feedback from these stakeholders will be used to generate SW Policy Paper #3 - Credit Options that will be used throughout Task 5. Stakeholder preferences regarding these stormwater rate structures will be documented in Task 6 as part of the Stormwater Feasibility Study. The Team will also outline a draft Customer Appeals Process that is easily understood and consistent with the appeals process used for the City's other fees. Deliverables — Up to 5 Stormwater Policy Papers, each generally 2 pages, color with a graphic content meant for external stakeholders. a. SW Policy Paper #1 - SW Program Costs (EOS and LOS) b. SW Policy Paper 42 - SW Rate Structure and Billing Options c. SW Policy Paper #3 - SW Credit Options d. SW Policy Paper #4 - SW Customer Service (Appeals and Exemptions) e. SW Policy Paper #5 - SW Financial Planning 2. Draft Stormwater Policy section of the Stormwater Feasibility Study 12 SCOPE AN? FE.F F ,.R RrQ LR 7, S'€-`RF.AVA `LP FYASiS f rl'r 5 IOV Task 5. Public Outreach and Education The Team understands that Fayetteville's goal is to reach as many people as possible throughout the public engagement process. The Team will work with Fayetteville's Communications and Marketing Department and the Media Services Division to support the implementation of a robust and innovative public engagement process that reflects the City's long history of reaching out to its citizens. To do so, the Team's role in Task S is to develop a Public Engagement Plan, develop the technical content and materials appropriate to each stakeholder audience and outreach method (presentations, media content, stormwater utility toolkit), and assist City staff with implementation of the Plan. The Public Education Plan will articulate how the public and stakeholders will be provided opportunities to vet the analyses and policy choices developed in Tasks 2, 3 and 4, at each step of the way. For example, Task 4 Policy and Development, proposes a series of policy papers for use in Task 5. Further, Fayetteville's 2017 Strategic Planning Report articulates City Council's focus on communications and community engagement'. It identified the following means for implementation which integrate into development of the Public Engagement Plan: • Improvements to City's communications initiatives — expanding channels • Newsletter ➢ Review of effectiveness and transforming format • Digital and social media • More mobile workshops • Website • User-friendly methods of obtaining information • tmoracing tecnnology, pilot programs ana prototyping ■ Staff concierge ■ Communications between department heads to address issues of "siloed departments" • Citizen committee reviews This focus is consistent with the stakeholder approaches implemented by other similarly sized communities. A recent survey of 13 communities identified the following key lessons: • Proactively engage stakeholders on all sides of the issue, those that support developing a stormwater funding program as well as those that oppose it. • Foster deliberation and exchange of ideas among stakeholders with many points of view. • Make a locally -compelling case that a stormwater funding program meets a critical need. • Demonstrate the cost-effectiveness of the funding approach, • Demonstrate that the proposed approach is the most equitable, i.e. those that generate the most stormwater, pay the most. • Use several forms of proactive outreach. • Recognize that despite outreach efforts, the first bill arriving in the mail will be the first time many people become aware of the new fee —be responsive and flexible through the first few billing cyclesz. 1 InVerltas. 2017. Strategic Planning Final Report 2017. March 2017. 2 US EPA. 2013. The Role of Public Outreach and Stakeholder Engagement in Storm water Funding Decisions in New England, 13 1 SCO?e. Arvo r;F Fo,i F.FQ STOF:hiL" A _ > = s I IL I.Y > LJUY It is the Teams understanding that the City of Fayetteville plans to acquire one of many online public engagement tools available to provide a new and innovative ways to involve stakeholders in the feasibility study process. The Team will work with City staff to develop applications that utilize the software ultimately purchased. Task 5.1 Public Engagement Plan To assist Fayetteville with its public outreach and education efforts, the Team will first work with staff to develop a draft public engagement plan for review during Task 1, Project Chartering. As part of an initial Project Chartering Workshop, we will charter the Staff Technical Advisory Committee (STAG), facilitate a discussion of Fayetteville's Stormwater Program Strategic Visions/Goals, and review the draft public engagement plan. With feedback from Fayetteville's internal (elected and staff) stakeholders during chartering, the team will finalize the Public Engagement Plan for use throughout the Study. The draft Public Engagement Plan will address each of the components as described further below: I.Stormwater Program Strategic Visions/Goals II.ldentify and Charter Stakeholders Ill.ldentify and Establish Outreach Methods IV.Identify and develop technical content and materials appropriate to each stakeholder audience and outreach method (presentations, media content, stormwater utility toolkit) V.Provide a detailed implementation schedule Stormwater Program Strategic Visions/Goals As part of the Task 1, Chartering, the Team will facilitate a discussion of Fayetteville's Strategic Vision / Goals for its Stormwater Program, in general, and the Stormwater Feasibility Study. The discussion will validate the Team's understanding of City Councils' Fayetteville Vision 2050 (To keep Fayetteville a vibrant and welcoming city that encourages diversity, creativity, and innovation while providing our citizens the opportunity to thrive) and its eleven guiding principles. The Team will reference these principles while facilitating a discussion of Fayetteville's Strategic Vision / Goals for its Stormwater Program. Identify and Charter Stakeholders It is the Team's understanding that the following audiences can be considered the primary internal and external stakeholders: • Stakeholders (Internal) o Elected Officials (Mayor and Council) o Staff Stakeholders (External) o General Public (neighborhood groups, homeowner's associations, civic groups) o Key Stakeholders (Large and / or new Customers, such as the University of Arkansas, Lindsey & Associates, Fayetteville Public Schools, etc.) o Targeted Stakeholders (business community, faith community, nonprofits, low-income advocates, environmental groups, etc.) 14 ( VWP :.AND VR. FOH? Rf G 1)8.07, SIQRMVVAY[:,'1 r.FAS >s )_IT'S`: ;i)'ti As part of development of the draft Public Engagement Plan, the Team will work with the City to identify each of the City's external stakeholders and link the appropriate outreach methods to each group. The Team intends to ensure both stakeholder groups are chartered for involvement in the Feasibility Study and are adequately educated on technical subjects in sufficient detail to enable meaningful input to the decisions on key issues such as range of services addressed, level of service provided, and extent and nature of credits provided. ldt ntify and cstobhsh outreach Methods The stakeholders above will be reached using a variety of proven and innovative methods, such as the EngagementHQ tools noted above. The Team will work with Fayetteville's Communications and Marketing Department and the Media Services Division to develop the technical content and materials appropriate to each stakeholder audience and outreach method. Task 5.2 Meetings, Workshops and Briefings The Team will engage internal and external stakeholders via a variety of in person meetings, workshops and briefings of: 1) Council and TBD Committee 2) Staff Technical Advisory Committee (STAC) 3) Key Stormwater Stakeholders 4) Public Meetings Elected officials will be briefed either through the newly appointed mayoral subcommittee presentations or full Council presentations at key steps in the evaluation of policy options. In general, it is recommended that the Council be briefed once before the start of the stakeholder engagement process and once at the end, before launching the wider stakeholder engagement process. Experience in successfully evaluating and implementing other stormwater utilities suggests that interactive and transparent engagement with both internal and external stakeholders early on, as well as elected officials leads to success. The Team will support the City with the development of the Staff Technical Advisory Committee (STAC) as part of Task 1. The STAC should be composed of internal stakeholders representing a cross-section of the City's departments, whose goal will be to help make staff recommendations on the important components of the program, as analyzed in Tasks 2, 3 and 4. Up to 6 STAC workshops of 4 hours each are assumed to be included in Task 5, The Team will work with City staff to develop a list of key groups for focused stormwater stakeholder outreach and engagement. The Team will provide technical materials to support 3 rounds of focused outreach by City staff during the Study, generally anticipated to address: Stormwater 101 / FAQ Funding Needs / Level(s) of Service and Credit and Appeals. Task 5.3 Develop Technical Content and Materials The Team will work with Fayetteville's Communications and Marketing Department and the Media Services Division to develop digital tools for use online and in meetings / workshops. The purpose of these tools will be to educate stakeholders about stormwater funding alternatives, level of service and credit options while providing them with a meaningful opportunity to log their preferences and willingness to pay for various levels of service. FCGP;. AND F%` QR R.FQ 12 oi, STORNIV AT0r fUS[BIOY -STUDY As needed, our stakeholder team stands ready to support City staff with additional technical analysis by providing qualitative research from interviews with key leaders, targeted focus groups with community networks, media analysis, formal or informal surveys, website feedback analysis, elected official interviews, and more, as needed. We can review already -available data from community surveys or customer information, looking for sensitivities (cultural, socio-economic, religious), community concerns (environmental, safety, economic, lifestyle), or rate imbalances that could can provide baseline information on which amenable public policy is based. As part of the Stormwater Utility Toolkit, the Team will utilize the technical content developed through the technical analyses in Tasks 2, 3 and 4. This material will be tailored to each stakeholder audience and outreach method (presentations, media content, stormwater utility toolkit). The Team suggests: • Stormwater Utility Toolkit with technical content and materials. Provided online, as appropriate, and via hardcopies depending on stakeholder demographics. o External Toolkit - FAQs, Factsheets, Policy Papers o Internal Toolkit — External materials plus talking points and City Council Ward -specific maps of stormwater issues that build on those illustrated in the 2018 Drainage Improvement Plan. • PowerPoint presentations to support 3 rounds of focused outreach by City staff during the Study, generally anticipated to address: Stormwater 101 / FAQ, Funding Needs / Level(s) of Service and Credit and Appeals. • Wikimaps Online Mapping Tool (see Task 8, Additional Services) • Stormwater Needs and Priorities Survey of Stakeholders (see Task 8, Additional Services) Passive Methods • Fayetteville Website - Use the existing Stormwater feasibility study page on Fayetteville website, http://www. iyttevilie-ar.gov_J3328/5rormwater•Utility-SW2 or establish a dedicated Stormwater Master Planning page on http://www.favetteviile--,i.r,,gq�1.308G/Master-Plans 308G/Master-Plans or convert the Drainage Master Plan page. Social Media postings NotifyMe Listsery e-mails o Create a new NotifyMe ListSery group (ht[ s: fye.acwdle-ar.eov/list.aspx) for the Stormwater Feasibility Study o Use the NotifyMe Media Releases and Public Meetings list to engage the general public the SW Feasibility Process. Deliverables — 1. Draft Public Engagement Plan 2. Final Public Engagement Plan 3. Meetings, Workshops and Briefings. a. City Leadership Briefings: Presentation materials and 1 team members for up to 3 Mayoral or Special Committee Meetings. b. Staff Technical Advisory Committee Meetings: Meeting materials and 1 team members for up to 6 STAC Meetings c. Meeting materials and 1 team members for up to 3 SW Public Meetings 4. Technical Content and Materials. a. 3 presentations for use in Stormwater Stakeholder Targeted Outreach Activities 161 K-OPE ANO FC_ OR €TQ ld•C i, STOR€ MATE-F FEASIB1_1": 11UDY b_ Stormwater Utility Toolkit with technical content and materials. Provided online, as appropriate, and via hardcopies depending on stakeholder demographics. i. Branding Logo after completion of Task 1. ii. External Toolkit - FAQs, Factsheets, Policy Papers iii. Internal Toolkit— External materials plus talking points and City Council Ward -specific maps of stormwater issues that build on those illustrated in the 2018 Drainage Improvement Plan. Assumptions - • The CH2M / Olsson Team will facilitate internal stakeholder meetings and workshops. • Staff with Fayetteville's Communications and Marketing Department and the Media Services Division will facilitate external meetings and support the internal implementation of the technical content provided by the CH2M / Olsson Team. Task 6. Stormwater Feasibility Report Task 6, Stormwater Feasibility Report includes services related to preparation of a report summarizing the results of the study, accompanied by a programmatic implementation plan. Together, these documents will provide the City with the roadmap to implementation, if developing a stormwater utility fee is deemed to be beneficial to the City, An initial draft of the feasibility report will be prepared and reviewed with City staff and the STAC while a final draft will be the basis of a presentation of the completed study to the Mayor and City Council. The final Feasibility Study report will integrate these subsequent final comments. Deliverables — 1. Initial Draft Stormwater Feasibility Report 2. Draft Stormwater Feasibility Report 3. Final Draft Stormwater Feasibility Report 4. Final Stormwater Feasibility Report S. Summary of Stakeholder Comments on Final Draft Stormwater Feasibility Report Assumptions - All draft task documents will be finalized as part this Task 6, Stormwater Feasibility Study. To the extent practical, one set of consolidated and adjudicated comments from Fayetteville staff are appreciated. Task 7. Project Management Task 7 includes the work related to the management, administration, and coordination of the Teams activities during this scope. This includes managing and coordinating project resources and responsiveness consistent with the schedule and budget. Specific activities conducted by the CH2M — MWY Team will Include: • Project Work Plan. Prepare a project work plan within seven days after the Notice to Proceed. The plan will identify project scope, individual work elements, budget for each element, responsible individuals for each work element, staffing plan and schedule. The plan will include the communication plan for the project to be 17 SC::PE AND £ EE Po£i RFC! 18-u2, 57"OEsio WATER rVASIBI 1Ty STUDY used between Team, Fayetteville and other stakeholders. The project work plan will be submitted to the City for its use. Project Conference Calls. CH2M — MWY Team will coordinate monthly project conference calls as needed with City of Fayetteville staff. The purpose such calls is to coordinate project activities for continued progression of assigned work. Project Schedule. The Team will prepare a schedule within S days of Notice to Proceed and will provide it to the City for tracking purposes. Schedule updates will be prepared on an as needed basis. Project Cost Control/Progress Reporting: The CH2M — MWY Team will prepare monthly project status reports that compare work accomplished with scheduled activities, provide support documentation for invoices, compare expenditures with task budgets, and describe changes to the scope that have occurred. Documentation will include details of expenditures on each task and will show the hours worked by pro iect personnel and other direct expenses related to the task. The status report including tasks completed and any changes to the scope of services will be presented at the end of each month. All monthly reports will then be submitted to the City with the monthly invoices. Deliverables - 1. Project Management Plan and internal CH2M — MWY Team kickoff meeting. 2. 12 monthly invoices and progress reports. 3. Monthly status meetings, including meeting preparation, updated schedule, and meeting summary. Assumptions -- A period of performance not to exceed 18 months. It is assumed that all deliverables will consist of no more than 2 drafts and 1 final. Task 8. Additional Services Task 8, Additional Services includes services that are not essential to developing the Feasibility Report itself. Therefore, the Team will implement these additional services at the discretion of the City. Other services relate to moderating STAC meetings, assisting with a Stormwater Organizational Analysis, additional report preparation, or additional presentations to regional and local entities. Task 8 currently includes the development of a Wikimapping.com Stormwater Mapping Tool to solicit stakeholder feedback regarding the extent and character of stormwater and drainage challenges. Additionally, a Stormwater Needs and Priorities Survey of Stakeholders will be developed for the City of Fayetteville to administer. Deliverables - 1. Additional Technical Content and Materials. a. Wikimapping.com Stormwater Mapping Tool b. Stormwater Needs and Priorities Survey of Stakeholders Assumptions - • Staff with Fayetteville's Communications and Marketing Department and the Media Services Division will support the internal implementation of the technical content provided by the CH2M / Olsson Team. • City staff will administer the Wikimapping.com Stormwater Mapping Tool including the compilation and analysis of stakeholder data points collected as part of their engagement. 18 `.,t:OPF AND r+:E FOR RPQ lE 02, STrlfi7bMA iER FEA-S[RILl7-V STUDY TABLE 4. DELIVERABLES AND ASSUMPTIONS: PHASE I-STORMWATER FEASIBILITY STUDY Task # Task Deliverables Assumptions 1 Chartering • Prepare draft Chartering workshop agendas and a Fayetteville staff will facilitate the selection of the STAC presentations for staff review and ongoing scheduling logistics of STAC meetings. • Prepare draft integrated implementation schedule a 2-3 representatives of the CH2M — MWT team will be reflecting draft Engagement Plan. present for the Project Chartering workshop (day 1). • Prepare Initial Request for Information for Feasibilit/ • 1 representatives of the Team will be present for Special Study Committee Meeting #1- Vision / Goals, Engagement • Facilitate Project Chartering workshop with STAC (day 1) Plan and Study Overview (day 2) • Facilitate Special Committee Meeting #1 -Vision /Coals, • All other fees related to the Team attending internal and Engagement Plan and Study Overview (day 2) external meetings can be found under Task S • Meeting Summary of Project Chartering workshop 2 Stormwater Program 0 Materials for STAC meeting #1—Stormwater N 3eds • Meeting attendance and coordination is included Costs Analysis and 5W 0 & M and Capital Improvement in Task 5. Public Education and Outreach. Planning, based on Strategic Vision and Goals f om • Definition of the City of Fayetteville's current Project Chartering Workshop Stormwater M54, level of service and extent of • Preliminary Draft LOS / EOS options, including i service will be based on readily available basic (current), standard, and proactive LOS, for at information provided by the City. least a 5-year planning cycle. Draft programmz tic a Feedback from STAC Meeting #2 and Special cost estimates for these LOS / EOS options will be Committee Meeting #2 will be used to generate tabulated (over 5 years) for up to 6 program ar=as. SW Policy Paper # 1 - SW Program Costs (E05 and • Materials for Special Committee workshop #1 (,n LOS) part of Task 4 that will be used throughout Stormwater Program Needs and Extent of Sery ce Task 5 to communicate with internal and external Analysis stakeholders. • Draft Programmatic Stormwater 0 & M and Ca )ital All draft task documents will be finalized as part of Improvement Plan with a description of the Citi's Task 6, Stormwater Feasibility Study. existing Stormwater management, drainage To the extent practical, one set of consolidated and improvement and capital improvement plannirg adjudicated comments from Fayetteville staff are efforts as well as a high-level path forward for the 19) SCOPE AND FEE FOR RFQ 18-02, .STORM WATER FEASIBILITY STUDY TABLE 4. DELIVERABLES AND ASSUMPTIONS: PHASE I-STORMWATER FEASIBILITY STUDY Task # Task Deliverables Assumptions more detailed master planning and prioritization appreciated. efforts that would be needed should a fee be implemented. • Materials for STAC meeting #2 and Special Committee workshop #2 on Preliminary Draft Stormwater LOS / EOS options • Draft Stormwater Program Cost and Programmatic Stormwater O & M and Capital Improvement Plan sections for Feasibility Study. 3 Financial Planning and . Stormwater pro forma financial spreadsheet model Rate Analysis (financial / rate model) with a detailed 5-year cash • The City GIS Division will be responsible for flow analysis and planning level projections over a developing a preliminary Stormwater billing longer timeframe, database as part of Task 3.2 using Fayetteville's • 3 conference calls with GIS division staff (in addition existing parcel and pending impervious data layers. This is a critical path item with the potential to to Interactions as part of the STAC), to identify the delay later tasks. City's preliminary Stormwater billing database approach. • Feedback from STAC Meeting #4 and Special • Draft Stormwater Billing Approach section for STAC Committee Meeting #3 will be used to generate Meeting #3 and Special Committee Meeting #3 SW Policy Paper # 2 SW Rate Structure and Billing • Draft Financial Needs Analysis and Planning section Options as part of Task 4 that will be used for STAG Meeting #4 and Special Committee throughout Task 5 to communicate with internal Meeting #3 and external stakeholders. • Draft Stormwater Rate Analysis section for STAC a Feedback from STAC Meeting #4 and Special Meeting #5 and Special Committee Meeting #3 Committee Meeting #3 will be used to generate SW Policy Paper #5 - SW Financial Planning • Stakeholder feedback will be documented in Task 6 as part of the Stormwater Feasibility Study. 4 Policy and Ordinance Development • Up to 5 Stormwater Policy Papers, each generally 2 pages, color with a graphic content meant for external stakeholders. is SCOPE AND FEE FOR RFQ 18-02, STORMWATER FEASIBILITY STUDY TABLE 4. DELIVERABLES AND ASSUMPTIONS: PHASE I—STORMWATER FEASIBILITY STUDY Task # Task Deliverables Assumptions • Draft Stormwater Policy section of the Stormwater Feasibility Study 5 Public / Stakeholder • Draft Public Engagement Plan The CH2M / Olsson Team will facilitate internal Education and • Final Public Engagement Plan stakeholder meetings and workshops. Outreach a Meetings, Workshops and Briefings. a. City Leadership Briefings: Presentatior • Staff with Fayettevilie's Communications and Marketing materials and 1 team members for up '� 0 3 Department and the Media Services Division will Mayoral or Special Committee Meetin€ s. facilitate external meetings and support the internal implementation of the technical content provided by b. Staff Technical Advisory Committee the CH2M / Olsson Team. Meetings: Meeting materials and 1 tez m members for up to 6 STAC Meetings c. Meeting materials and 1 team members for up to 3 SW Public Meetings • Technical Content and Materials. a. 3 presentations for use in Stormwater Stakeholder Targeted Outreach Activiti=s b. Stormwater Utility Toolkit with technic it content and materials. Provided online as appropriate, and via hardcopies depen Ping on stakeholder demographics. 6 Stormwater Feasibility • Initial Draft Stormwater Feasibility Report All draft task documents will be Finalized as part this Report . Draft Stormwater Feasibility Report Task 6, Stormwater Feasibility Study. • Final Draft Stormwater Feasibility Report • Final Stormwater Feasibility Report • To the extent practical, one set of consolidated and adjudicated comments from Fayetteville staff are aft • Summary of Stakeholder Comments on Final DI a appreciated. Stormwater Feasibility Report 7 Project Management 0 Project Management Plan and internal kickoff meet ng. • A period of performance not to exceed 18 months. • 12 monthly invoices and progress reports. 211 SCOPE AND FEE FOR RFQ 18-02, STORM WATER FEASIBILITY STUDY TABLE 4. DELIVERABLES AND ASSUMPTIONS: PHASE I —STORMWATER FEASIBILITY STUDY Task # Task Deliverables Assumptions • Quarterly status meetings, including meeting 0 It is assumed that all deliverables will consist of no more preparation, updated schedule, and minutes. than 2 drafts and 1 final. 8 Additional Services • WikimaPPing.com Stormwater Mapping Tool • Staff with Fa etteville's Communications and Marketing • Stormwater Needs and Priorities Survey of Stakeholders Department and the Media Services Division will internal implementation of the technical content provided by the CN21V / Olsson Team. • City staff will administer the Wikimapping.com Stormwater Mapping Tool including the compilation and analysis of stakeholder data points collected as part of their engagement. ?? I ATTACHMENT C Stormwater Utility Feasibility Study CITY OF FAYETTEVILLE, AR SUPPLEMENTAL TERMS Version: May 9, 2018 Changes, modifications, or amendments in scope, price or fees to this contract shall not be allowed without a prior formal contract amendment approved by the Mayor and the City Council in advance of the change in scope, cost or fees. 2. RIGHT TO AUDIT, FOIA, AND JURISDICTION: The City of Fayetteville reserves the privilege of auditing a vendor's records as such records relate to purchases between the Citv and said vendor. Freedom of Information Act: City contracts and documents prepared while performing City contractual work are subject to the Arkansas Freedom of Information Act. If a Freedom of Information Act request is presented to the City of Fayetteville, the (contractor) will do everything possible to provide the documents in a prompt and timely manner as prescribed in the Arkansas Freedom of Information Act (A.C.A. §25-19-101 et. seq.). Only legally authorized photocopying costs pursuant to the FOIA may be assessed for this compliance. b. Legal jurisdiction to resolve any disputes shall be Arkansas with Arkansas law applying -to the case. c. Legal venue and jurisdiction to resolve any disputes shall be Washington County, Arkansas with Arkansas law applying to the case. 3. CITY INDEMNIFICATION: a. CH2M HILL agrees to indemnify the City and hold it harmless from and against all claims, liability, loss, damage or expense, including but not limited to counsel fees, to the proportionate extent arising from negligence or willful misconduct or arising from or by reason of any actual or claimed trademark, patent or copyright infringement or litigation based thereon, with respect to the services or any part thereof covered by this order, and such obligation shall survive acceptance of the services and payment thereof by the City. 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 175-17 File Number: 2017-0413 STORMWATER UTILITY STUDY INTENT: A RESOLUTION TO EXPRESS THE CITY COUNCIL'S INTENT TO FUND A STUDY TO EVALUATE THE FEASIBILITY OF CREATING A STORMWATER UTILITY PROGRAM IN AN AMOUNT NOT TO EXCEED $200,000.00, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, following the major flooding experienced in the City of Fayetteville during April 2017, the City Council expressed a desire to research the feasibility of creating a stormwater utility program and WHEREAS, staff recommends that the City utilize the experience of a professional consultant well versed in establishing stormwater utilities and anticipates the study can be completed for under $200,000.00. 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 expresses its intent to fund a study to evaluate the feasibility of creating a stormwater utility program in an amount not to exceed $200,000.00. 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 8/15/2017 Attest: .io eld Jordah, ayor Sondra E. Smith, City Clerk Treasur, aantItrNp� 010 FAYI I I i vil I ; Page 1 Prinfed on 8116117 113 West Mountain Street City of Fayetteville Arkansas Fayetteville, AR 72701 --:_Ij' (479) 575-8323 rnl Text File — ' File Number: 2017-0413 Agenda Date: 8/15/2017 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: D. 10 STORMWATER UTILITY STUDY INTENT: A RESOLUTION TO EXPRESS THE CITY COUNCIL'S INTENT TO FUND A STUDY TO EVALUATE THE FEASIBILITY OF CREATING A STORMWATER UTILITY PROGRAM IN AN AMOUNT NOT TO EXCEED $200,000.00, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, following the major flooding experienced in the City of Fayetteville during April 2017, the City Council expressed a desire to research the feasibility of creating a stormwater utility program; and WHEREAS, staff recommends that the City utilize the experience of a professional consultant well versed in establishing stormwater utilities and anticipates the study can be completed for unaer 3/,uu,uuu.uu. NOW, THEREFORE, RE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section I: That the City Council of the City of Fayetteville, Arkansas hereby expresses its intent to fund a study to evaluate the feasibility of creating a stormwater utility program in an amount not to exceed $200,000.00. 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 811812017 City of Fayetteville Staff Review Form City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item / Chris Brown 7/28/2017 Engineering Development Services Department Submitted By . Submitted Date Division / Department Action Recommendation: Express the City's intent to complete a study evaluating the feasibility of a stormwater utility to provide a means by which to address stormwater needs throughout the City, to approve funding forthestudy and to approve a budget adjustment 1010.09 0.6 600 -5 314.00 -Account Number 17008 Project Number Budgeted Item? No Budget Impact: General Fund Fund 5tormwater Utility Feasability Study Project Title Current Budget $ Funds Obligated $ Current Balance Does item have a cost? Yes Item Cost $ 200,000.00 I Budget Adjustment Attached? Yes Budget Adjustment $ 200,000.00 Remaining Budget V20140710 Previous Ordinance or Resolution H Original Contract Number: Approval Date: Comments: CITY OF Fa y I C ARKANSAS MEETING OF AUGUST 15, 2017 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: August 1, 2017 STAFF MEMO SUBJECT: Express the City's intent to complete a study evaluating the feasibility of a stormwater utility to provide a means by which to address stormwater needs throughout the City, to approve funding for the study and to approve a budget adjustment e7r/"rl�����A1flA TlVN: +.�vv+nm�.+vvr. + +v+.. Approval of the City's expression of intent to complete a study evaluating the feasibility of a stormwater utility to provide a means by which to address stormwater needs throughout the City, to approve funding for the study and to approve a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the -City has historically funded maintenance and new projects directly from the Capital Improvement Plan (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues In order to develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require in excess of $1 million dollars for each project. Given the current funding levels, it would take many years in order to address just one of those projects. DISCUSSION: As you are aware, the City of Fayetteville experienced a major flooding event in April of 2017. As a follow up to that event, City staff presented the results of an investigation into the stormwater drainage system to Council at agenda session in June of this year. This investigation revealed funding needs in excess of $15 million dollars to address the drainage issues that the City is aware of at this time. Also during this presentation, several funding sources were identified in order to begin to address these issues. However, given the extent of funding required, council expressed the desire to research a stormwater utility in order to provide an adequate funding source to begin to address the issues related with the stormwater system as well as maintain the system into the future. Mailing Address 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 In order to accomplish this task, staff is recommending the City utilize the experience of a professional consultant versed in establishing stormwater utilities. This will aid in developing a system that will ensure that the current and future needs are met. The engineering division would aid in the procurement of the professional service and organization of the appropriate resources to identify the funding needs as well as the structure of a potential stormwater utility program. BUDGET/STAFF IMPACT: The cost of the study will depend heavily on the defined scope, however, staff anticipates that the investigation would not exceed $200,000. The funding source would need to be general fund reserves as this was not a budgeted project in 2017 and no funding is available for this project at this time. Attachments: April 29, 2017 Flood Event Summary April 28-30, 2017 Flooding Event 0,01-0awto LIE ILLr:. IWA CY OF FAYETTEVILLE ARKANSAS FAQ • How much rain did we get? • Was it a 100-year event? • What area saw most flooding? • What can the City do to help? 100-Year Event • Total 24 hour precipitation • intensity (inches per hour) of precipitation • Observed stream levels/high water marks ` 1 Tontitown Spnngpale Johnson Iwo ^ I. - .. - .� — - , ,�_.`•—'a� _ .- -ram - I" __ i R� � ^ ��' .�,-�� GGS _ _ _ I Goshen Farmington -- _ 2SD- - Elkins Pr irie Grove Greenland.,; FayetteviUe Rain Gauges - Elkins 100-Year 24 hour Rainfall: 7.91 Inches Total Precipitation April 28t"-April 30tn City Rain Gauges Legend 100% amuai chance 0 Yf) 0 50% annual chance (2 Yn 2M &-ual chance (5 yrl ift annual chance 00 yr) 4% anrpjal cMnte (25 yr) 2% nnu.1 chance (so Y'l 1 % annual chance (100 yr) a 5% Onrolal &aPCO (200 YI) 0 2% anwal ehann (IMI YfI IPO, V 50 5 N 25 70, 0 r FI t 4 'r, fju n�j F.; i Provided by FTN Associates Fbtal Precipitation April 28th-April 30th National Weather Service Intensity • Highest intensity between 4:45 PM and 8:45 PM on Saturday 29th • Between 2.01 and 5.65 inches of rain during that 4 hour time period • Highest Intensity: 0.83 inches rain in 15 minute period (3.32 in/hr), • Over 0.5 inches in, 15 minutes common Observed H\V Marks 2663 W Megan Drive • Observed HW Mark Elevation: 1230.9 • Anticipated 1 % Annual chance event: 1230.7 (1 00-year) -f:-_-q=sr>�ic� Dean • Observed HW Marks 189 N West End • Observed HVV Mark Elevation: 1233.6 • Anticipated 1 % Annual Chance (100-year) event: 1234.0 Observed HEN Marks 191 E Rebecca St • Observed HW Mark EIElvation: 1390.1 • Anticipated 1 °/ Annual Chance (100-year) event: 1392.5 Stream Gauges Mud Creek at Greg/Wilkerson: • Peak Gauge Height 17.5 (Approximately 1181.5 Elevation), • Anticipated 10% Annual Chance(Il 0-year) event: 1180.5 • Anticipated 2% Annual Chance (50-Year) event: 1182. 0 • Anticipated 1 % Annual Chance (100-year) event: 1183. 0 Stream G(a,-,ges Town Branch at Armstrong: • Peak Gauge Height 17 (Approximately 1188.75 Elevation) • Anticipated 1 % Annual Chance (100-year) event: 1190.7 Niokaska at Township • Peak Gauge Height 6.92 • Correlates with an estimated 4% Annual Chance (25-year) Event Street Flooding S 151" Street N College Ave @ Sunbridge N Porter Road W Poplar Street Structure F ooding Estimate 45-50 structures with various levels of flooding that have been -eported Property Damage/Yard Flooding Fence Damage Valley Drive Structure/Yard Flooding Driveway Flooding P rn nPrty D 7r - . ,�:=rt �-s"-sac' • �,`�•ss �•.. ��"3 - '" ,r�� :=�•�.� .tea t` , __ ~jam ��•�'� - :� -- Zq Pro e rt Damaae/Yard Floodina College and Rebecca �Parking N Fowler Ave West of Holly/Sang Intersection N Lewis Ave Service Requests i Categores _ R..-r::, . I.� -��::, $,� — Maintenance C Ey F- - ! I - R� Code 0'=-;I A'�� Sub-.— M4- — Capital Small Projects Medium P roj e cts �7-U,91�E.11320 707-52.E.N120 0--? CVM.'Zr.? Ow 01�:4J I A Mnw dAu"VOO-LOW LPJ , I ,, "1zP.-WIQ"0J RC Large Projects 170751EN1220 I M 151 It 1311 17051 F.1132.0 U4320 0-.5I!20.7 01 CF41I8J17, Omm" CE45 Q1 11 69:)s 0 IC: 0 C A %aC4 E 0 A 3111 N 0 A I E�, 0 E D A 242 E Euix& 51114115 -;4OOSRC-" ORW;k DR 1, " DP 17j"n C14320 OWMIT 1G.02 C A. 210.3W WIReN CIR I—,Q3IS EIMU 0-10?207 1019 A. ;.10510 -=UnAw WA e 17�R1 7 F.t.4= 0 : :VIIXI7 IC 21J QA 17jsys El1"120 f, -tl -All I I : 17 D A 2632 1. frUWAY wly R49 D1320 (i V.w !0�1 "; %.I -A R b 17C.T19 F412.0 0-i01 tam? 16:13 a A -17I5 11 fLaw-A AVE 1-I685 F."17.0 9*;%m -1 118,0? 0 A 1951E E fkPAZO; ?OW E11320 WIS 0 A 2125 W C .9 EN320 W.LO-2M7 0851 A WO N f-T< K041 EA 11 �?ri972 70695 DMG C Wa23 V i 5 .1 6 0 A 2371. N WIN ACRES RD April 29th, 2017 Flooding Service Requests `r �.. —_ — J.J. .' " eM I ! •\ ! �• ,' •\.'� - _— J . 1 - April 29th, 2017 Flooding Service Requests_ .rcg��n v xc...a � S '�1MIW.IIIII�IE IfiIEf:� ^�' • � � �... ' .�• -_. • - .._ /• � -... 7/.... ��. • +• w .•_ �) � /{_yam �.. + 1 _fir ` ✓ .... a .: Ma ntenance • Projects include, — Clearing debris from ditches', culverts, inlets, channels — Restoring ditch capacity — Includes labor only,, no materials — historically deferred due to 'other priorities — Occurs throughout the City Small Drainage Projects • Projects include —Anything under $500,000 — Culvert replacement/sizo increase — Curb/inlet construction — Increase inlet capacity — Create ditches/swales to divert runoff — occurs'throughout the City Medium J Drainage Projects April 29th, 2017 Flooding Service Requests C IN a Medium Drainage Projects • Projects include —Anything between '$500K and $1 Mil — Similar to Small Projects; but larger scale — Culvert replacement/size increase — Increase inlet capacity — Install culvert/inlets/curb where none existed Medium Drainage Projects ProspectSt ecca St 3 0 Lafayette�t I' Upper Scull Phase II Eastern Ave ndividual Request Location AH7D 11) C2piial (127) Maintenance (75) • O O Ln - H i 1-Boxwood Ave/Ashbrook Dr 2-E Country Way/E Ferguson Ave Stream Erosion Ranking System (later this year) Sandpiper Dr WF White River • N Ashbrook Rackv Branch • Sweetbriar Park More Rural Areas Large Drainag,!.D.Projects April 29th, 2017 Flooding Service Requests 0 Large Drainage Projects • Projects include —Anything over $1 Mil — Large scale projects implemented throughout entire watersheds — Have been considered previously but deferred due to cost Large DrainagIn Projects $1 Million Plus 3 L^ O� 4 SSvuftIA!iL95f ftA O H.,. d st DO 4oryrn N.®O. Y!J r r 9b Missouri Creek Elmhurst/M :,Clinton Individual Request Ucation AHTD (1) Capital (127) .Maintenance ( "5 j Sunbridge/College 0 0 0 .0 1 i 43 Uthi ` St Sutibridge Qt- Additional, Flood Study April 29th, 2017 Flooding Service Requests - Additional'Flood "..:)Atudy Needed Large floodplains w/limited solutions — Clabber Creek at Salem Drive — Ellis Ave between S Hill and S 15tn — Scull Creek College Ave Crossing — Hamestring @ I-49 a Ha Individual Request Location AHTD (1) i Capital (127) Maintenance (� S) r Mciaren far �i Where to Begin? • Project size — Complete large projects or greater number of smaller projects • Severity of property damage — Structure damage, property damage, nuisance drainage • Length of time known • Number of residents impacted $ How Much $ • Overall cost estimated $15 to $20 million • Maintenance: 83 Projects; $100K • Small: 92 Projects; $2.F► Mil • Medium: 6 Projects; $3 Mil • Large: 3 Projects; $8 Mil • Does not include — labor costs for maintenance projects — capital costs for those projects in need of flood study Funding Mechanisms • Capital Improvement Program • Future Bond Issue • Stormwater Utility Stormwater Utility • Permanent Revenue Stream — Maintenance/Operations — Capital Improvements — Water Quality Monitoring — I'l/S4 and other permitting — Stream Restoration • Allows for more robust incentive use LID • Provide flexibility for developer — Cost of system versus on -site mitigation Stormwater Utility • Further investigation required: — Determine funding needs • Projects, ongoing maintenance, staff, administration of program — Potential structure: flat rate versus sliding scale based on impervious area — Determine appropriate rate — Rebates for LID and other runoff reduction measures .tier.: -. �� Disaster Declaration Funding available for public infrastructure and private individuals —Apply directly to FEMA for approval -only pays to repair, no upgrades, to public infrastructure —Some grants can pay to elevate, floodproof or purchase/demolish structures 1-800-621-FEMA (3362) 0 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division ENGINEERING (621) Adjustment Number 2017 /Org2 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Express the City's intent to complete a study evaluating the feasibility of a stormwater utility to provide a means by which to address stormwater needs throughout the City, to approve funding for the study and to approve a budget adjustment RESOLUTION/ORDINANCE COUNCIL DATE: 8/1 5/2017 LEGISTAR FILE ID#: 2017-0413 13 cwbta 'G1i Fe Ul V1/2017 4.00 PM Budget Director Date TYPE: DESCRIPTION; GLDATE: POSTED: TOTAL 200,000 200,000 v.20170707 Increase / (Decrease) Projecl.Subg Account Number Expense Revenue Project Sub AT Account Name 1010.090.6600-5314.00 200,000 - 17008 1 EX Professional Services - : 1010.001.0001-4999.99 - 200,000 RE Use Fund Balance - Current C:\Users\losmith\AppData\Roaming\L5\Temp\ I a415466-d217-459a-b465-69a2598402c7 I of I City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 ENGINEERING (621) 2018 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH2M Hill, in an amount not to exceed $229,222 and to approve a budget adjustment. COUNCIL DATE: 6/5/2018 LEGISTAR FILE ID#: 2018-0267 xe,vbvvspr VW2018 9:55 AM Budget Director TYPE: DESCRIPTION: Date i GLDATE: RESOLUTION/ORDINANCE POSTED: TOTAL 29,498 29,498 v.20180417 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub 1010.090.6600-5314.00 29,498 17008 1 1010.001.0001-4999.99 - 29,498 AT Account Name EX Professional Services - : RE Use Fund Balance - Current C:\Users\losmifh\AppData\Roaming\L5\Temp\e58ef771-624f-4e32-836e-b213c7cc28f0 1 of 1 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 209-19 File Number: 2019-0510 JACOBS ENGINEERING GROUP, INC F/K/A C112M HILL ENGINEERS, INC. AMENDMENT NO. 1: A RESOLUTION TO APPROVE AMENDMENT NO. I TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND JACOBS ENGINEERING GROUP, INC F/K/A C142M HILL ENGINEERS, INC. IN THE AMOUNT OF $3,860.00 FOR ADDITIONAL TRAVEL AND LABOR EXPENSES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on June 4, 2018, the City Council approved a contract with CH2M Hill Engineers, Inc., now known as Jacobs Engineering Group, Inc., to evaluate the feasibility of creating a stormwater utility program; and WHEREAS, City staff is requesting additional funds for to allow the Jacobs Engineering Group, Inc. project manager to attend the presentation to the City Council and answer any questions about the study. 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 and authorizes ` Mayor Jordan to sign Amendment No. 1 to the Professional Services Agreement between the City of Fayetteville, Arkansas and Jacobs Engineering Group, Inc. formerly CH2M Hill Engineers, Inc. in the amount of $3,860.00 for additional travel and labor expenses for the Jacobs Engineering Group, Inc. project manager to be present for the stormwater utility feasibility study presentation to the City Council Page 1 Printed on 9119119 File Number: 2019-0510 Resolution 209-19 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 9/17/2019 �����`ER K'/ �� Attest: v; FAYETT • � = �. EVt<<E •7D= ��' •' "OLXTb Lisa Branson, Deputy City Clerk ��,,11uiii0u t���� Page 2 Printed on 9119119 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0510 Agenda Date: 9/17/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: A. 6 JACOBS ENGINEERING GROUP, INC F/K/A CH2M HILL ENGINEERS, INC. AMENDMENT NO. 1: A RESOLUTION TO APPROVE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND JACOBS ENGINEERING GROUP, INC F/K/A CH2M HILL ENGINEERS, INC. IN THE AMOUNT OF $3,860.00 FOR ADDITIONAL TRAVEL AND LABOR EXPENSES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on June 4, 2018, the City Council approved a contract with CH2M Hill Engineers, Inc., now known as Jacobs Engineering Group, Inc., to evaluate the feasibility of creating a stormwater utility program; and WHEREAS, City staff is requesting additional funds for to allow the Jacobs Engineering Group, Inc. project manager to attend the presentation to the City Council and answer any questions about the study. 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 and authorizes Mayor Jordan to sign Amendment No. 1 to the Professional Services Agreement between the City of Fayetteville, Arkansas and Jacobs Engineering Group, Inc. formerly CH2M Hill Engineers, Inc. in the amount of $3,860.00 for additional travel and labor expenses for the Jacobs Engineering Group, Inc. project manager to be present for the stormwater utility feasibility study presentation to the City Council 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 9/19/2019 Chris Brown City of Fayetteville Staff Review Form 2019-0510 Legistar File ID 9/17/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: 5/15/2018 Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH21VI Hill, in an amount not to exceed $3,860 (total contract amount $233,082) and to approve a budget adjustment. Budget Impact: 1010.090.6600-5314.00 General Fund Account Number Fund 17008.1 Stormwater Utility Feasibility Study Project Number Project Title Budgeted Item? Yes Current Budget $ 229,222.00 Funds Obligated $ 229,222.00 Current Balance Does item have a cost? Yes Item Cost $ 3,860.00 Budget Adjustment Attached? Yes Budget Adjustment $ 3,860.00 Remaining Budget $ V20180321 Purchase Order Number: Previous Ordinance or Resolution # 13 1 13 Change Order Number: Approval Date: Original Contract Number: Comments: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 17, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: August 20, 2019 CITY COUNCIL MEMO SUBJECT: Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH2M Hill, in an amount not to exceed $3,860 (total contract amount $233,082) and to approve a budget adjustment. RECOMMENDATION: Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH2M Hill, in an amount not to exceed $3,860 (total contract amount $233,082) and to approve a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. To develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require more than $1 million dollars for each project. Given the current funding levels, it would take many years to address just one of those projects. The City Council recognized these needs and approved moving forward with a feasibility study on June 5, 2018 via resolution 131-18. DISCUSSION: As the feasibility study nears completion, staff is requesting additional funds so that Jacobs may be present for the presentation of the study to the City Council. We feel it is important for the Council to hear the findings of the study and for the Council to be able to ask any questions of Jacobs in person. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: The overall cost proposed is $3,860 which includes one additional trip not included in the original contract. This would bring the total of all services to $233,082 and is proposed to be set aside from the general fund as was the case with the original funding for the study. Attachments: Amendment 1 to Stormwater Feasibility Contract Budget Adjustment Resolution 131-18 SCOPE CHANGE AUTHORIZATION Project: Amendment 1 to the Stormwater Date Prepared: August 21, Feasibility Study Contract 2019 Jacobs Project No.: 705896CH Date Revised: Client: City of Fayetteville, AR Client Project No.: Project Manager: Heather H. D 1. 7 Change No.: I to following changes in the scope of the work are hereby authorized: I additional Project Manager trip (labor and travel). 2. The effect of these changes in scope is as follows: a. Fee (1) Change I Labor: $2,560 + Travel: $1,300 = $3,860 (2) New Total $233,082 b. Schedule Se tember / October 2019 c. Construction (1) Cost I N/A (2) Schedule I N/A d. Other N/A 3. The reason for these changes in the scope of the work are as follows: PM presentation of the draft Feasibility Study report to City leadership and attend stakeholder meeting, if needed. 4. Project Manager's comments: Approved by Cli Agreed to by JEG: Distribution: Client Project Manager Client Services Manaser Director of Projects Service Leader File Date: q-1r)-1 Date: 8/21 /2019 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 131-18 File Number: 2018-0267 STORNnVATER UTILITY STUDY CONTRACT: A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH CH2M HILL ENGINEERS, INC., PURSUANT TO RFQ 18-02, IN AN MOUNT NOT TO EXCEED $229,222.00 FOR A STORMWATER UTILITY FEASIBILITY STUDY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study. 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 a professional services agreement with CH2M Hill Engineers, Inc., pursuant to RFQ 18-02, in an amount not to exceed $229,222.00 for a stormwater utility feasibility study. 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 6/5/2018 Attest: ���t1111111q� Sondra E. Smith, City Clerk Treasurer �`�``�� G �Y.o sG A �� • .� A'YE TI�VIILE: P • -J '.9 •IYKAN i �aN ` %�� Page 1 Printed on 615116 -� City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2018-0267 Agenda Date: 6l5/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 2 STORMWATER UTILITY STUDY CONTRACT: A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH CH2M HILL ENGINEERS, INC., PURSUANT TO RFQ 18-02, IN AN AMOUNT NOT TO EXCEED $229,222.00 FOR A STORMWATER UTILITY FEASIBILITY STUDY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study. 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 a professional services agreement with CH2M Hill Engineers, Inc., pursuant to RFQ 18-02, in an amount not to exceed $229,222.00 for a stormwater utility feasibility study. 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 or Fayettevolle, Arkansas Page 1 Printed on 6/5/2018 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 ENGINEERING (621) 2019 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH21VI Hill, in an amount not to exceed $3,860 and to approve a budget adjustment. RESOLUTION/ORDINANCE COUNCIL DATE LEGISTAR FILE ID# 9/17/2019 2019-0510 L ik R u tcheww 8/26/2019 9:35 AM Budget Director TYPE: JOURNAL #: GLDATE: CHKD/POSTED: Date D - (City Council) TOTAL 3,860 3,860 v.20190816 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5314.00 3,860 - 17008 1 EX Professional Services 1010.001.0001-4999.99 3,860 RE Use Fund Balance - Current H:\Budget Adjustments\2019-Budget\City Council\09-17-2019\2019-0510 BA Stormwater Utility Amendment 1 1 of 1 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 250-19 File Number: 2019-0596 JACOBS ENGINEERING, INC. AMENDMENT NO. 2: A RESOLUTION TO ACCEPT AND ADOPT THE STORMWATER STUDY FOR FLOOD MANAGEMENT AND WATER QUALITY FUNDING, TO APPROVE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH JACOBS ENGINEERING, INC. IN AN AMOUNT NOT TO EXCEED $150,200.00 FOR ADDITIONAL SERVICES RELATED TO THE DEVELOPMENT OF FINAL RECOMMENDATIONS FOR THE CREATION OF A STORMWATER UTILITY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study; and WHEREAS, on June 5, 2018 the City Council passed Resolution 131-18 authorizing a contract with CH2M Hill Engineers, Inc. for the feasibility study; and WHEREAS, the feasibility study has been completed and is being presented to the City Council for final acceptance and adoption of the findings and recommendations; and WHEREAS, if the study is accepted and adopted, staff also recommends the approval of Amendment No. 2 to the contract for Jacobs Engineering, Inc., the parent company of and successor in interest to CH2M Hill Engineers, Inc., to develop final recommendations for the creation of a stormwater utility in the City of Fayetteville. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Page 1 Printed on 1116119 File Number.' 2019-0596 Resolution 250-19 FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the Stormwater Study for Flood Management and Water Quality Funding, a copy of which is attached to this Resolution. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 2 to the Professional Services Agreement with Jacobs Engineering, Inc., a copy of which is attached to this Resolution, in the amount not to exceed $150,200.00 for additional services related to the development of final recommendations for the creation of a stormwater utility. Section 3: 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 11/5/2019 ``���tinrrtrn Attest: CITyp.�J.� F ; =cn�� Lisa Branson, Deputy City ClAil;-y� Page 2 Printed on 1116119 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0596 Agenda Date: 11/5/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 3 JACOBS ENGINEERING, INC. AMENDMENT NO. 2: A RESOLUTION TO ACCEPT AND ADOPT THE STORMWATER STUDY FOR FLOOD MANAGEMENT AND WATER QUALITY FUNDING, TO APPROVE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH JACOBS ENGINEERING, INC. IN AN AMOUNT NOT TO EXCEED $150,200.00 FOR ADDITIONAL SERVICES RELATED TO THE DEVELOPMENT OF FINAL RECOMMENDATIONS FOR THE CREATION OF A STORMWATER UTILITY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study; and WHEREAS, on June 5, 2018 the City Council passed Resolution 131-18 authorizing a contract with CH2M Hill Engineers, Inc. for the feasibility study; and WHEREAS, the feasibility study has been completed and is being presented to the City Council for final acceptance and adoption of the findings and recommendations; and WHEREAS, if the study is accepted and adopted, staff also recommends the approval of Amendment No. 2 to the contract for Jacobs Engineering, Inc., the parent company of and successor in interest to CH2M Hill Engineers, Inc., to develop final recommendations for the creation of a stormwater utility in the City of Fayetteville. 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 accepts and adopts the Stormwater Study for Flood Management and Water Quality Funding, a copy of which is attached to this Resolution. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 2 to the Professional Services Agreement with Jacobs Engineering, Inc., a copy of which is attached to this City of Fayetteville, Arkansas Page 1 Printed on 111612019 File Number: 2019-0596 Resolution, in the amount not to exceed $150,200.00 for additional services related to the development of final recommendations for the creation of a stormwater utility. Section 3: 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 2 Printed on 111WO19 Chris Brown City of Fayetteville Staff Review Form 2019-0596 Legistar File ID 11/5/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: 10/17/2019 Approval of the Flood Management and Water Quality Funding Study recommendations as well as contract amendment 2 with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 (total contract amount $383,282) for additional services and approval of a budget adjustment 4470.6 21.8 810- 5 817.00 Account Number 17008.1 Project Number Budgeted Item? Yes Budget Impact: Sales Tax Capital Improvement Fund Stormwater Utility Feasibility Study Project Title Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? Yes Budget Adjustment Remaining Budget $ 233,082.00 $ 233,082.00 $ $ 150,200.00 $ 150,200.00 $ - V20180321 Purchase Order Number: Previous Ordinance or Resolution # 131-18 Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE V4W ARKANSAS MEETING OF NOVEMBER 5, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: October 16, 2019 CITY COUNCIL MEMO SUBJECT: Approval of the Flood Management and Water Quality Funding Study recommendations as well as contract amendment 2 with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 (total contract amount $383,282) for additional services and approval of a budget adjustment. RECOMMENDATION: Staff recommends approval of the Flood Management and Water Quality Funding Study recommendations as well as contract amendment 2 with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 (total contract amount $383,282) for additional services and approval of a budget adjustment. The contract amendment would further refine the stormwater utility framework by developing final recommendations for the extent and level of service with associated rates, investigating and developing the credit program, investigating the necessary ordnance revisions associated with the program and other services. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. To develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require more than $1 million dollars for each project. Given the current funding levels, it would take many years to address just one of those projects. The City Council recognized these needs and approved moving forward with a feasibility study on June 5, 2018 via resolution 131-18 Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: The Flood Management and Water Quality Funding Study final draft is attached for review. However, in general it finds that the most equitable way to fund the Stormwater needs into the future is with a fee for service based on the customer's impact to the system. Impervious area was selected as the basis for the fee as it is directly related to the customer's impact to the system. Impervious area causes an increase in the amount of water entering the drainage system which can then increase the chance of flooding, stream bank erosion and sedimentation. Runoff from impervious area also carries pollutants that can impact water quality. These include, among others, sediment, herbicides and pesticides, meals and bacteria from things such as pet waste. For these reasons, impervious area is an equitable basis for the fee because larger developments, businesses and homes generate a greater need for Stormwater services because of the greater amount of runoff they generate. Given the feedback from stakeholders, residents and the council committee, Option A/B was selected as it provides an adequate level of service, extends services to areas of town not currently served and provides additional services not currently in the stormwater program. It includes a 20-year capital program schedule and routine maintenance. This maintenance would include cleaning/inspecting approximately 20% of the overall drainage system annually (approximately 400,000 LF), replacing 2.5% of the drainage system annually (approximately 8,500 LF), performing maintenance on residential detention basins (approximately 110 total) and providing for approximately $1.1 million annually for capital projects. Table ES-2. Tiered Rate Structure A tiered system based on impervious area was v selected as the most equitable way to distribute the Propnsed ,. cost of the program based on the items noted PV!6nthly FO-e fir'' above. The proposed tiers can be found below, and additional information can be found within the Tier Range (SF of Current attached study. Impervious Area) � +urn %r 1- Tier 1(0 and 2,000) $2.31 CONTRACT AMENDMENT SUMMARY: The contract amendment with Jacobs will include Tier 2 (2,000 and 3,500) $5.09 several of the recommended additional tasks based on the outcome of the feasibility study and feedback Tier 3 (3,500 and 5,000) $7.86 received during the public outreach efforts. These Tier 4 (5,000 and 6,500) $10.64 tasks include additional stakeholder engagement and education, final stormwater program definition Tier 5 (6,500 and 8,000) $13.41 and rate analysis, refinement of stormwater customer billing database, development of a Tier 6 (over 8,000) $1.85/1,000 SF sustainable credit system, fee -in -lieu -of program a. tf there is on onsite storm water man ogemen t assessment, review or ordinances and facility, there could be areducedfeebosdona intergovernmental agreements and overall project sustainable credit program established by the City. and quality management. • Stakeholder Engagement and Education: this item will include additional stakeholder engagement through workshops, public meetings, etc... in order to further educate the public and targeted stakeholders of the need for a sustainable stormwater program. • Stormwater program definition and rate analysis: this item will include final definition of the stormwater program extent and level of service as well as a final rate analysis. This will include a review of an alternate rate structure using percentage of impervious area to lot size rather than an absolute rate based on public feedback. • Stormwater Customer Billing Database: while the majority of this task will be handled by staff, Jacobs will provide support where necessary as guidance. The billing database will not be finalized until such time that a final decision is made on the billing mechanism and implementation. • Sustainable Credit System: the next phase of the contract will begin to define further the credit system and how it will apply to the various tiers shown in the current proposal • Fee -in -lieu -of Program Assessment: assessment of the potential for a fee -in -lieu -of improvement in instances where the project site may be limited and there is potential for the City or other parties to make regional improvements. • Ordinances and Intergovernmental Agreements: review ordinances to include all aspects of water quality and water quantity. This will include an analysis of the current exemptions of 1 and 2 family from the grading and drainage permit requirements as well as development of agreements with certain entities that would be included in the stormwater program. • Overall project quality and management: this item will include the overall project and quality management associated with the continuation of the project. BUDGET/STAFF IMPACT: The overall cost proposed amendment is $150,200 which includes additional tasks outlined above as well as those listed in more detail on the attached contract amendment. This would bring the total of all services to $383,282. A budget adjustment is proposed to move funding from two existing drainage projects into the stormwater utility study project. The overall cost of the additional services, if approved, would include additional staff and consultant time as well as additional consultant expenses. If approved, it is anticipated that these additional tasks could take up to one year, at which point an ordinance to establish the utility could be presented to the Council. An additional period would then be required to finalize the billing database and begin collecting the fee from users. Attachments: Final Draft Stormwater Study for Flood Management and Water Quality Funding Contract Amendment 2 to the Stormwater Feasibility Contract Stormwater S• for Flood Management Water Quality Funding ��rrAr�w �• • Executive Summary I Additional Funding is Needed: • To further protect the public (safety), public roads, and private property from flooding, • For watershed improvements to continue protecting the quality of the Beaver Lake, the City's drinking water source • To proactively maintain current drainage systems while starting to retrofit and replace, as needed, aging infrastructure • To continue complying with increasing NPDES Phase II MS4 permit requirements • To encourage the use of green infrastructure and other sustainable development practices to help mitigate stormwater runoff and flooding The City of Fayetteville (the City) needs additional funding for drainage, flood management, and water quality improvements. The City continues to attract new residents, with corresponding new development, while its existing stormwater system continues to age. At the same time, recent flooding demonstrated the need to proactively plan for storms of increasing intensity and frequency. A combination of more high -intensity rainfall and growth of hard surfaces has contributed to flooded streets and properties, among other drainage issues, which can ultimately impact the quality of the City's drinking water source, Beaver Lake. Other stormwater-related funding needs are driven by the need for compliance with more stringent National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) regulations. In response, the City initiated this Flood Management and Water Quality Funding Study (Funding Study) to identify the most equitable way to fund these needs going forward. The key findings of the Funding Study are summarized in Table ES-1. STAKEHOLDER ENGAGEMENT AND EDUCATION Over a dozen workshops and meetings were held with City staff, Council, and Stakeholders between June 2018 and August 2019 to educate Stakeholders about Fayetteville's drainage needs and secure input on how to fund these needs. Stakeholders were further engaged via a dedicated website, factsheets, and two Speak Up Fayetteville Surveys. Survey #1 found that a majority (82%) of the 166 surveyed individuals think that drainage issues are either a major or minor problem in their area. Figure ES-1 notes what type of drainage issues Stakeholders are experiencing. Flooding in streets, roads, or private drives; flooding on their property; and trash/debris in streams or drainage ditches each received over 75 responses. Figure ES-1. Survey #1 Results ISO Question options: * Pollution in streams, ponds, or lakes Flooding in streets, roads, or private drives near your home or business Soil and/or stream bank erosion Flooding anywhere on your property • Other Flooding inside your home or business 0 1 have not experienced any drainage issues Trash/debris in streams or drainage ditches OCTOBER 2019 ES-1 EXECUTIVE SUMMARY Table ES-1. Flood Management and Water Quality Funding Study —Key Findings Topic Findings Stakeholder 82% of survey respondents think drainage is a major or minor problem in the City. Engagement • 39% of those surveyed were willing to pay a Flood Management and Water Quality fee based on (Refer to Section 1 for IA, 35% said they were not, and 26% were undecided. more details.) • Additional Stakeholder education and engagement efforts would be conducted if the City proceeds with implementation. Current Stormwater 0 The City currently spends approximately $1.5 million annually, of which $200,000 is on capital Program Costs projects. (Refer to Section 3.2.) . Drainage services are currently funded by the Street Fund, General Fund, Sales Tax Capital Improvements Fund, and the intermittent issuance of revenue bonds. Stormwater EOS The recommended EOS was selected to make the City's current drainage services more (Refer to equitable for those older areas developed before public drainage easements were required. Section 3.3.1.) 0 It would include public roads, public detention ponds, and ROWS, and drainage features within existing dedicated public easements (excluding private commercial detention ponds). • The City would establish procedures for accepting public drainage easements from existing property owners and for assuming public maintenance responsibilities of private residential detention ponds. Stormwater LOS 0 The recommended LOS would address the backlog of drainage projects and meet Flood (Refer to Management and Water Quality goals in a 20-year time frame. Section 3.3.2.) a Examples of the services included in this LOS include: - Cleaning/inspecting approximately 20% of the overall drainage system annually (400,000 LF). - Replacing 2.5% of drainage system annually (8,500 LF). - Performing maintenance on residential detention basins (110 total). Future Stormwater . Depending on the LOS option selected, the City would need $3.5 to $4.6 million annually to fund Program Costs Operation and Maintenance, Engineering and Planning, Regulatory Compliance, and (Refer to Administration (CIP costs described separately in Section 3.4). Section 3.3.3.) Alternative funding sources such as additional taxes, special assessments, developer trust funds, impact fees and grants would not be equitable, provide adequate funding or allow for use across the City. Programmatic Capital . Depending on the option selected, total Future CIP needs range from $35 to $59 million over a Improvement Project 15- to 20-year time period, respectively. Costs • Excluding the $15 million of early action plan CIP projects funded by 2019 drainage bond (Refer to Section 3.4.) program, the City would need approximately $1 to $3 million annually to fund its CIP needs. • This would fund drainage improvements, floodplain buyouts/elevation projects, projects identified by drainage studies and watershed improvement/stream restoration projects. The higher level of CIP funding would also provide large-scale regional detention projects and some detention pond retrofits. CIP = Capital Improvements Program EOS = extent of service IA = impervious area LF = linear foot (feet) LOS = level of service ROW = right of way SF = square foot (feet) ES-2 OCTOBER 2019 EXECUTIVE SUMMARY Table ES-1. Flood Management and Water Quality Funding Study —Key Findings Topic Findings Financial Planning and . IA, using a billing unit of 1,000 SF, was selected as the basis of the fee in order to quantify the Rate Analysis approximate burden a property places on the City's drainage system. (Refer to Section 4.) • A six -tier, customer -neutral rate structure was selected as the most equitable and cost-effective option given the distribution of the City's IA. • The selected rate option would be phased in over a 5-year period. • Future services would be funded from Tier Range (SF of IA) Year 5 Monthly Fee a stand-alone enterprise fund sourced from a new Flood Management and Tier 1 (0 and 2,000) $2.31 Water Quality Fee and the intermittent issuance of revenue Tier 2 (2,000 and 3,S00) $5.09 bonds. • The City plans to evaluate two Tier 3 (3,500 and 5,000) $7.86 methods for billing property owners Tier 4 (5,000 and 6,500) $10.64 during implementation, either its existing, monthly utility system or Tier 5 (6,500 and 8,000) $13.41 Washington County's annual property tax system. Tier 6 (over 8,000) $1.85/1000 SF Stormwater Credit A sustainable credit system would be developed with additional Stakeholder input. and Incentive Programs 0Credits would be available to all customers and be based on the sizing criteria found in City's (Refer to Section 5.) drainage criteria manual with additional credits likely offered for green infrastructure practices, rain barrels and public education. • A stormwater rebate program and in lieu of fee program may also be considered as incentives during implementation. Policy and Legislative . Selection of IA as the billing unit established a "rational nexus" between the drainage services Considerations provided by the City and how they are funded. (Refer to Section 6.) • The Funding Study was structured to reflect the following "fee for service" policy considerations: - Unlike a tax, it is also important that all properties with impervious surfaces pay, there should be no exemptions, only credits for reducing a property's burden on the stormwater system. As a result, important City Stakeholders who have historically not paid impact fees for police and fire, will still be expected to contribute to the Flood Protection and Water Quality fee program. - The overall cost of the program would be reasonably related to the services being provided, - Revenue from the fee would be accounted for separately in an enterprise fund for use by the stormwater program, - The tiered rate structure would be proportional to a property's contribution to stormwater runoff. • At the State level, stormwater management, including the creation and operation of a stormwater utility, is authorized by the definition of the term "works" in Arkansas Code14-235-201. • There are currently two communities in Arkansas with drainage fees: Bryant and Hot Springs. CIP = Capital Improvements Program EOS = extent of service IA = impervious area LF = linear foot (feet) LOS = level of service ROW = right of way SF = square foot (feet) OCTOBER 2019 ES-3 EXECUTIVE SUMMARY CURRENT STORMWATER SYSTEM AND COSTS The City currently provides stormwater services within the public rights of way (ROWS), on City -owned property, and in those areas with public drainage easements. The City spends approximately $1.5 million annually on these services, of which $200,000 is for capital projects. Although the City does try to leverage grants and other funding sources, these activities are primarily supported by the Street Fund, General Fund, and Sales Tax Capital Improvements Fund. As such, these activities are competing for limited funds with the City's other transportation and operating needs on a year-to-year basis. FUTURE STORMWATER SERVICES AND COSTS A range of future service options was evaluated in the study. This included looking at different options for the EOS (where the City will work) and LOS options (what stormwater services the City would provide and at what frequency). Routine, proactive, and enhanced EOS/LOS options were studied to enable a comparison of benefits versus costs and consideration of how they relate to the City's financial capacity. Based on Stakeholder input, the City intends to pursue a future EOS option that makes the City's current drainage services more equitable by extending maintenance to older parts of Fayetteville while taking on public responsibility of select private infrastructure (residential detention ponds and private infrastructure connected to Public ROW) (Figure ES-2). ure is-2. r-uture txtent of 5tormwater Services Future Extent of Stormwater Servi pri" to CAN -,Am. f49—Wt#m. am nriYAfo Ccmate a dmin ve easa meat to trio Cat f V* RAY mpecw by cm(ats Ket>ead PC to ensue so WiY oe d aa W are specowtown d ace cis'ttvia mxxx.Y, t Public roads, public detention ponds and rights of way, and drainage teatufes within existing dedicated public easements (excluding private commercial detention ponds). 2 City would assume public maintenance of those private drainage features found within what would now be designated a public drainage easement but not for the age of the development OLE 3 Public maintenance would extend to the downstream end of the first private infrastructure connected to the public i system. WJww 4 City would establish a process for accepting public mamtenan€e responsibilities of private residential detention ponds. ES-4 OCTOBER 2019 EXECUTIVE SUMMARY A 20-year capital program schedule and routine maintenance approach for the future LOS was selected to address the backlog of drainage projects and meet Flood Management and Water Quality Goals. This LOS option would provide for services such as: • Cleaning/inspecting approximately 20% of the overall drainage system annually (approximately 400,000 LF) • Replacing 2.5% of drainage system annually (approximately 8,500 LF) • Performing maintenance on residential detention basins (110 total) To do so, the City would spend $4.5 million annually in the future, of which $1.1 million would be on capital projects. FUTURE CAPITAL COSTS The 2018 Drainage Plan estimated that more than $15 million is needed to address the most urgent backlog of known capital projects (Figure ES-3). Because it can take several years for the City to save enough to complete a single drainage project at the current funding level, the 2019 Drainage Bond was passed as an Early Action Plan to start addressing these high priority capital projects. However, additional funds are also needed to fully evaluate the City's watersheds and drainage system to identify the full extent of issues and identify cost-effective, sustainable flood management and water quality solutions. After removing the projects funded by the Drainage Bond, future CIP needs total $34.6 million over a 20-year period, or $1.1 million on an annual basis. This would fund drainage improvements, floodplain buyouts/elevation projects, projects identified by drainage studies and watershed improvement/stream restoration projects. Figure ES-3. Comparison of Current Stormwater Budget with Identified Future Needs COMPARISON OF CURRENT STORMWATER BUDGET WITH IDENTIFIED FUTURE NEEDS ■ Operation and Maintenance 0 Engineering and Planning F5 Regulatory Compliance Stormwater CEP Components a Administrative CURRENT FUTURE NEEDED OCTOBER 2019 ES-5 EXECUTIVE SUMMARY BASIS OF POTENTIAL FEE FOR FUTURE SERVICES Impervious Area, or surfaces that do not absorb stormwater such as rooftops, driveways, and parking, would be the basis of the Flood Protection and Water Quality Fee. RECOMMENDED FLOOD MANAGEMENT AND WATER QUALITY FEE STRUCTURE A range of fee estimates was examined with and without the continuation of current funding from the Street and General Funds. Ultimately, a stand-alone program for future services was recommended that discontinues reliance on these sources for the City's drainage program. It would instead be administered from an enterprise fund sourced from the new Flood Management and Water Quality fee and the intermittent issuance of revenue bonds. The proposed rate structure shaded yellow in Table ES-2 would be phased in over a 5-year period to IA was selected as the basis of a potential Flood Management and Water Quality fee. It is the most common basis for stormwater-related fees nationwide because using this metric ensures that customers pay according to the demand their property places on the City's stormwater system. IA causes an increase in the amount of water entering the drainage system, which can then increase the chance of flooding, stream bank erosion, and sedimentation. Runoff from IA also carries pollutants that can impact water quality, such as sediment, herbicides and pesticides, metals, and bacteria from pet waste. Therefore, IA is an equitable basis for the fee because larger developments, businesses, and homes, with corresponding parking lots and driveways, generate a greater need for stormwater services because of the greater amount of runoff that they generate (Figure ES-4). A preliminary customer billing database was developed by the City's Geographic Information System (GIS) department to assess the funding potential of the 236 million SF of IA identified within its 25,690 parcels. A six -tier, customer -neutral rate structure based on IA was selected as the most equitable and cost-effective method of billing a Flood Management and Water Quality fee (Table ES-2). Table ES-2. Tiered Rate Structure Tier Range (SF of Impervious Area) Proposed Monthly Fee Without Current Funding $2.31 Monthly Fee with Current Funding' Tier 1 (0 and 2,000) $1.60 Tier 2 (2,000 and 3,S00) $S.09 $3.52 Tier 3 (3,S00 and S,000) $7.86 $S.44 Tier 4 (5,000 and 6,S00) $10.64 $7.36 Tier 5 (6,500 and 8,000) $13.41 $9.28 Tier 6 (over 8,000) $1.85/1,000 SF $1.28/1,000 SF a. If there is an onsite stormwater management facility, there achieve these monthly rates in Year 5. This could be a reduced fee based on a sustainable credit program would result in an $5.09 monthly fee for a established by the City. 1,S00-SF home with a two -car garage, a $67 monthly fee for a typical fast food restaurant, and a $250 monthly fee for a 75-unit apartment complex. ES-6 OCTOBER 2019 I WA =11119Al& 1JAIPG1:0 SUSTAINABLE CREDIT PROGRAM A sustainable credit program would be developed with additional Stakeholder input if the City proceeds with implementation. A stormwater credit is an ongoing, renewable reduction in the Flood Management and Water Quality fee that is provided to property owners that implement practices onsite that reduce the stormwater runoff from their properties; all properties subject to the fee are eligible to apply for a fee credit. Credits would be offered to customers based on the sizing criteria found in City's drainage criteria manual with additional credits likely offered to property owners that implement green infrastructure practices on their properties or contribute substantially to public education related to the City's stormwater programs. Other incentives such as a stormwater rebate program and in lieu of fee program may also be considered during implementation. POLICY BASIS OF A POTENTIAL FEE SERVICE PROGRAM Development of this Funding Study was guided by establishing a "rational nexus" between the drainage services provided by the City and how the services are funded. User fees are based on the "polluter pays" principle; therefore, the size of the fee charged must be related to the burden a property places on the City's stormwater system. The Funding Study was structured to reflect the following "fee for service" policy considerations: • All properties with impervious surfaces would pay; unlike a tax, there would be no exemptions only appropriate appeals and credits would be allowed (NAFSMA, 2006). • The overall cost of the program would be reasonably related to the services being provided. • Revenue from the fee would be accounted for separately in an enterprise fund for use by the stormwater program. • The tiered rate structure would be proportional to a property's contribution to stormwater runoff. Unlike a tax, it is also important that all properties with impervious surfaces pay, there should be no exemptions, only credits for reducing a property's burden on the stormwater system. As a result, important City Stakeholders who have historically not paid impact fees for police and fire, will still be expected to contribute to the Flood Protection and Water Quality fee program. OCTOBER 2019 ES-7 Contents Section Page ExecutiveSummary.........................................................................................................................ES-1 Acronymsand Abbreviations............................................................................................................... v 1 Introduction and Background......................................................................................................... 1-1 1.1 Strategic Vision and Goals...............................................................................................1-1 1.2 Background......................................................................................................................1-2 1.2.1 2010 Stormwater Utility Feasibility Study..........................................................1-3 1.2.2 2018 Drainage Improvement Plan......................................................................1-3 1.2.3 2019 Bond Program............................................................................................1-4 2 Stakeholder Engagement and Education........................................................................................ 2-1 2.1 Stakeholders....................................................................................................................2-1 2.2 Funding Study Survey#1.................................................................................................. 2-3 2.3 Funding Study Survey#2.................................................................................................. 2-4 3 Stormwater Program Costs............................................................................................................ 3-1 3.1 Current Stormwater System and Services.......................................................................3-1 3.1.1 Current Stormwater Services..............................................................................3-2 3.2 Current Stormwater Program Costs................................................................................3-4 3.3 Extent of Service and Level of Service Analysis...............................................................3-5 3.3.1 Extent of Service.................................................................................................3-6 3.3.2 Level of Service.................................................................................................3-10 3.3.3 EOS/LOS Program Cost Estimates.....................................................................3-13 3.4 Programmatic Stormwater Capital Improvement Plan.................................................3-15 3.5 Final Future Program Costs by Option...........................................................................3-17 3.6 Preliminary Organizational Structure............................................................................3-18 4 Financial Planning and Rate Analysis.............................................................................................. 4-1 4.1 Alternative Funding Sources............................................................................................4-1 4.2 Basis of Proposed Fee Estimates.....................................................................................4-3 4.3 Financial Planning Assumptions.......................................................................................4-5 4.4 Recommended Fee Option..............................................................................................4-6 4.4.1 Flood Protection and Water Quality Fee Examples............................................4-7 5 Stormwater Credit and Incentive Programs.................................................................................... 5-1 5.1 Stormwater Credits..........................................................................................................5-1 5.2 Other Incentive Programs................................................................................................5-2 6 Policy and Legislative Considerations............................................................................................. 6-1 6.1 Existing Stormwater Management Regulations..............................................................6-1 6.2 Policy Considerations.......................................................................................................6-2 6.3 Legislative Implementation Steps....................................................................................6-3 6.4 Arkansas Authorizing Legislation and Fee Programs.......................................................6-3 7 Next Steps Towards Implementation............................................................................................. 7-1 8 References..................................................................................................................................... 8-1 OCTOBER 2019 1 CONTENTS Tables ES-1 Flood Management and Water Quality Funding Study —Key Findings ...................................... ES-2 ES-2 Tiered Rate Structure.................................................................................................................. ES-6 1-1 Drivers for Flood Management and Water Quality Funding........................................................1-2 1-2 2018 Capital Budget Projects........................................................................................................1-4 1-3 2019 Drainage Bond Phase I Projects...........................................................................................1-5 2-1 Key Stakeholders and Methods of Engagement...........................................................................2-2 3-1 City of Fayetteville Stormwater System........................................................................................3-1 3-2 Overview of Current City Drainage Levels of Service...................................................................3-2 3-3 Current Stormwater Program Costs.............................................................................................3-4 3-4 Overview of Initial Extent of Service and Level of Service Options..............................................3-5 3-5 Extent of Service Options..............................................................................................................3-6 3-6 Level of Service Options..............................................................................................................3-11 3-7 Programmatic Costs by EOS/LOS Option....................................................................................3-14 3-8 Stormwater CIP Program Elements by Option...........................................................................3-15 3-9 Initial Capital Improvement Program Costs by Option...............................................................3-15 3-10 Final Capital Improvement Program Total Costs by Option.......................................................3-16 3-11 Final Future Program Costs by Option........................................................................................3-17 4-1 Summary of Alternative Funding Sources....................................................................................4-2 4-2 Parcel Count and Impervious Area by Customer Class.................................................................4-3 4-3 Comparison of Billing Unit Distribution by Customer Class..........................................................4-4 4-4 Proposed Tier Structure (Applies to All Properties)......................................................................4-5 4-5 Monthly Fee Estimates by Tier and Scenario................................................................................4-6 4-6 Staging of Recommended Fee Structure under Scenario 2 ($/1,000 SF/month).........................4-6 4-7 Monthly Residential Fee Examples by Tier in Year 5....................................................................4-7 4-8 Fee Examples for Other Property Types.......................................................................................4-8 6-1 Surveyed Status of Billing and Collecting Stormwater Fees from Government Entities ..............6-2 6-2 Stormwater Fee Rates for Hot Springs, Arkansas.........................................................................6-4 7-1 Next Steps Towards Implementation...........................................................................................7-1 Figures ES-1 Survey #1 Results........................................................................................................................ ES-1 ES-2 Future Extent of Stormwater Services........................................................................................ ES-4 ES-3 Comparison of Current Stormwater Budget with Identified Future Needs ............................... ES-5 ES-4 Impervious Area.......................................................................................................................... ES-6 1-1 Historical Stakeholder Education Example...................................................................................1-2 1-2 2017 Flooding Service Requests...................................................................................................1-3 1-3 2019 Drainage Bond Phase I Projects...........................................................................................1-6 2-1 Funding Study Business Card........................................................................................................2-1 2-2 Funding Study included in the Beaver Water District Speaker Series..........................................2-3 2-3 Drainage Issues Identified in Survey#1........................................................................................2-3 2-4 Survey#1 Results..........................................................................................................................2-4 2-5 Survey #1, Willing to pay a fee for additional services?...............................................................2-4 3-1 Current Extent of Service..............................................................................................................3-7 3-2 Standard Extent of Service (Option A)..........................................................................................3-8 3-3 Proactive Extent of Service (Option A/B and B)............................................................................3-9 3-4 Enhanced Extent of Service (Option C).......................................................................................3-10 3-5 Final Future Program Costs by Option........................................................................................3-17 3-6 Potential Future Organizational Integration...............................................................................3-19 OCTOBER2019 Section 4-1 4-2 4-3 5-1 Distribution of Parcel Count versus Impervious Area ................... Recommended Monthly Flood Management and Water Quality Fee Structure in Year 5 Example of a Residence that falls within Tier 2................................................................. 2014 Drainage Criteria Manual Sizing Criteria................................................................... OCTOBER 2019 CONTENTS Page 4-4 4-7 4-8 5-1 Acronyms and Abbreviations ADEQ Arkansas Department of Environmental Quality BMP Best Management Practices CIP Capital Improvements Program CWA Clean Water Act DCM Drainage Criteria Manual EOS extent of service ERU equivalent residential unit GIS Geographic Information System IA impervious area ID Identification number LF linear foot (feet) LID low -impact development LOS level of service MCM Minimum Control Measures MS4 Municipal Separate Storm Sewer System NPDES National Pollutant Discharge Elimination System 0 & M operation and maintenance ROW right of way SF square foot (feet) SWMP Stormwater Management Plan USGS U.S. Geological Survey WCRC Watershed Conservation Resource Center OCTOBER2019 v SECTION 1 Introduction and Background The City of Fayetteville (the City) needs additional funding for drainage, flood management, and water quality improvements. The City continues to attract new residents and corresponding new development, while its existing stormwater system continues to age. At the same time, recent flooding demonstrated the need to proactively plan for storms of increasing intensity and frequency. A combination of more high -intensity rainfall and growth of hard surfaces have contributed to flooded streets and properties, among other drainage issues, which can ultimately impact the quality of its drinking water source, Beaver Lake. Other stormwater-related funding needs are driven by the need for compliance with evolving National Pollutant Discharge Elimination System (NPDES) Municipal Separate Storm Sewer System (MS4) regulations and the inherent operation and maintenance (0 & M) requirements of aging infrastructure. As a result, the City embarked on this Flood Management and Water Quality Funding Study (Funding Study) to assess what services are currently provided by our drainage program and to compare the cost of these services with the cost of a more proactive approach to reduce flooding and pollutants that impact water quality. 1.1 Strategic Vision and Goals The strategic vision for the Funding Study is taken from Fayetteville Vision 2050 (InVeritas, 2017), which seeks "to support the City's guiding principles of well -maintained infrastructure and facilities, a financially sustainable City government and ecosystem preservation to meet its future vision of a vibrant and welcoming city that encourages diversity, creativity, and innovation while providing our citizens the opportunity to thrive." In addition to the goals found in the City's MS4 Stormwater Management Plan (SWMP) (based on the City of Fayetteville 2015 Stormwater Management Program for Permit ARR 040010), the Council provided feedback at the beginning of the Funding Study on the six primary drivers for additional Flood Management and Water Quality Funding. The City Council clearly noted that its intent was to identify a funding source that is fair and equitable, that helps prevent flooding, and that addresses erosion while improving water quality (Table 1-1). These goals and the guiding principles from Vision 2050, listed as follows, were used to define the extent of service (EOS) and level of service (LOS) options: 1. A diverse growing local economy 2. A naturally beautiful city 3. Well -maintained city infrastructure 4. Greater ease of mobility — effective transportation system 5. Financially sustainable government 6. Quality public school system 7. Reputation as a safe community 8. A fun city in which to live 9. Pathways to prosperity 10. Education, research, and healthcare excellence 11. Ecosystem preservation EOS goals are defined as "what infrastructure" and "where" the City is responsible for managing stormwater. LOS goals are defined as "how well" and "how often" stormwater infrastructure is to be managed. OCTOUR 2019 1-1 SECTION 1- INTRODUCTION AND BACKGROUND Table 1-1. Drivers for Flood Management and Water Quality Funding Drivers MS4 SWMP Goals and Related Council Chartering Feedback Education and Engagement SWMP Goal: Educate citizens and businesses to understand the need to protect water quality Equity and Fairness • How to pay for it in a fair and legal way • Cost • Equitable to everyone Flood Management SWMP Goal: Protect citizens and property from flooding • Address topography, clogged ditches, and inadequate existing drainage • Prevent home flooding • "Get the water out' Proactive and Sustainable Look to the future and plan for it • Have clear long term, value-added solution • Fund and implement CIP projects in a shorter time frame Water Quality SWMP Goal: Improve the quality of surface and sub -surface drainage • Need to address erosion • Water quality Watershed Maintenance and SWMP Goal: Preserve and maintain surface waters, wetlands and riparian areas Preservation 0 Need to address erosion • Water quality CIP = Capital Improvements Program 1.2 Background The City has a long history of educating and engaging its Stakeholders on the importance of sustainable drainage practices in creative ways (Figure 1-1). On April 29, 2017, a large rain event occurred in Fayetteville, Arkansas, causing flooding in much of the City and surrounding areas. In response to this event, many citizens contacted the City to report damages to structures, roadways, streams, and other damages. The City recorded the customer service requests and has used this record to identify over 100 drainage improvement and maintenance projects ranging in size and complexity (Figure 1-2). The 2018 Drainage Improvement Plan (Fayetteville, 2018a), described further in the following section, estimated that the cost of drainage projects is between $1S to $20 million, excluding O & M costs and projects that require additional flood studies. 1 2 OCI0BER 2019 SECTION 1— INTRODUCTION AND BACKGROUND Figure 1-2. 2017 Flooding Service Requests April 29th, 2017 Flooding Service Requests �— p 1 vl w.�.ww+uoa 7 ) Source: 2018 Drainage Improvement Plan (Fayetteville, 2018a) 1.2.1 2010 Stormwater Utility Feasibility Study This Funding Study builds on the Stormwater Utility Feasibility Study completed by the City in 2010. It was developed in response to the funding needs identified in the Nutrient Reduction Plan to reduce the load of total phosphorus into Beaver Lake as part of a 2006 agreement between the City and the Beaver Water District (Geosyntec, 2009). It found that a utility funded by a user fee would be beneficial as the City continues to grow and develop. 1.2.2 2018 Drainage Improvement Plan To prioritize the many drainage projects within the City, a numeric ranking system was developed by City staff and approved by the City Council. The prioritization system ranks projects on a points system with scoring based on the number of structures flooded, the number of structures with water against or surrounding them, and other occurrences of property damage. The City prioritizes projects with flooding structures by giving a score of 5 points to each residence or commercial building with water intrusion. Water against or surrounding a structure is scored 2 points for each occurrence. Other property damage, such as damage to an outbuilding or fence, scores 1 point for each occurrence. For example, the ranking system would result in a score of 25 total points for a drainage project with two structures flooded (10 points), five structures with water against or surrounding them (10 points), and five other incidents of property damage (5 points). This sample drainage project would have a lower priority than projects that scored above 25 and a higher priority than projects with fewer than 25 points. OCTOBER 2019 1-3 SECTION 1 - INTRODUCTION AND BACKGROUND To begin planning for a capital improvement program, the City compiled a list of all potential improvement projects identified during the 2017 flooding incident. The cost of the projects, maintenance, and floodplain buyouts were combined with contingencies, contractor overhead and profit, and design fees to determine a total cost for the existing project demand. Table 1-2 summarizes the projects implemented as part of the 2018 capital budget of $500,000; some projects were ultimately delayed due to budget overruns. 1.2.3 2019 Bond Program Table 1-2. 2018 Caoital BudEet Proiects Project Location Estimated Cost Status Eastern Avenue Interim $3,000 Complete Park Avenue/Wilson Park $33,000 Design Complete/ Transportation to Construct Ramsey $56,000 Design Complete/Bid 2020 Ferguson/Country Way $ 427,624 Under Construction Spyglass Hill $172,621 Complete Black Canyon $500 Complete South Emma Avenue $7,000 Complete The City proposed an "Early Action Plan" to address the most significant stormwater projects in early 2019 as part of a bond program for flood mitigation and drainage improvement projects identified from the April 2017 flooding event. Funding for these Drainage Improvement Projects, approved at a level not to exceed $15,840,000, was passed by voters on April 9, 2019. The 2019 Bond Program will be implemented in two phases, Phase 1 (2019 to 2022) and Phase II (2022 to 2025). Eleven projects have been identified for Phase I (Table 1-3 and Figure 1-3); Table 1-3 lists each of the Phase I projects' location, estimated cost, and rank. The rank total is calculated using a point scoring system to prioritize projects that will have the greatest impact. The scoring system used for the bond program projects is the same scoring system described in Section 1.2.1. The estimated construction cost of each of the 11 projects is a planning -level estimate and does not include contingencies, contractor overhead and profit, and design. Although the Drainage Bond projects are generally focused on improvements larger than $200,000, smaller system upgrades such as North Palmer Avenue, and floodplain buyout efforts (on Linda Jo Place, for example) are also,included. The drainage projects outlined in this section were identified as top priorities to kickstart improvement of the City's stormwater system. However, once these projects are completed, an ongoing and sustainable effort will be required to maintain a quality stormwater management system over time. This study for Flood Management and Water Quality Funding will evaluate the most equitable way to fund the remaining needs going forward. The total estimated cost of these drainage projects during Phase I is just under $9 million. With contingencies, contractors' overhead and profit, and the costs of design, the total cost of these Phase I and II projects will be much closer to the $15 million in capital funding from the proposed bond. 1-4 OCTOBER 2019 SECTION 1— INTRODUCTION AND BACKGROUND Table 1-3. 2019 Drainage Bond Phase I Projects Project Estimated Rank ID Project Location Cost Project Type Total 1 Missouri Creek/Rolling Hills Phase 1 $3,726,000 Large Drainage Improvement. To alleviate street 22 flooding, property damage, and flooding in structures throughout the drainage basin 2 Sunbridge Drive/North College $1,400,000 Large Drainage Improvement. Additional storm 16 Avenue Area Phase I drainage capacity in order to alleviate flooding the intersection and structures near/at the intersection 3 Fairlane, Elmhurst, and McClinton $247,S00 Large Drainage Improvement. To alleviate flooding in 17 Street Area Phase I several structures in the area from drainage that flows from the north 4 Upper Scull Creek, Part 2 $700,000 Large Drainage Improvement. Continuation of the 10 Upper Scull Creek project to address neighborhood wide flooding of streets that is also causing damage to private property 5 South River Meadows Drive / $630,000 Drainage Improvements 8 Cherry Hills 6 Boxwood Addition Drainage $632,500 Large Drainage Improvement. To alleviate the flooding 15 Improvements of multiple structures and property damage by installation of new storm drain along Ashbrook Drive 7 Eastern Avenue, Part 2 $490,000 Large Drainage Improvement 25 8 Niokaska Creek Stream $350,000 Streambank Stabilization. Stream restoration project 4 Restoration that would address major erosion currently damaging private property 9 Scull Creek Stream Restoration $350,000 Streambank Stabilization. Stream restoration project 4 that would address major erosion currently damaging private property in the area 10 Homespun Drive $210,000 Large Drainage Improvement. Upgrades of the existing 10 storm drainage system to alleviate structure flooding 11 North Palmer Avenue $161,000 Drainage Improvement. Upgrades of the existing storm 5 drainage system to alleviate structure flooding near Hotz Park ID = identification number OCTOBER 2019 1-5 SECTION 1 — INTRODUCTION AND BACKGROUND IFiPure 1-3. 2019 Drainage Bond Phase I Proiects Phase 1 (First Bond Issue) Drainage Projects 'A 9/19 - 6/22 —Design — Construction c f- Project ID a Project Name 1 Missourl creek 2 Sunhddge/College 3 Fairlane/Elmhurst/McClinton d Upper Scull Creek Phase 2 S River Meadows or 6 Boxwood Addition 7 Emtem Avenue R Nlokmka Creek SLRest�tlon 9 Scull Creek Strea SO Homespun Drive 11 Palmer Avenue After the $15,000,000 drainage bond is considered, the 2018 Drainage Plan identified a known remaining CIP demand of just over $3,000,000, not counting the large-scale floodplain issues that require further study. Section 3.4 further describes the City's programmatic stormwater CIP. OCTOBER 2019 SECTION 2 Stakeholder Engagement and Education 2.1 Stakeholders The City was cognizant that input from its many Stakeholders, listed in Table 2-1, would be vital to the City Council making an informed decision of how to fund its Flood Management and Water Quality needs. As a result, the Funding Study, with extensive support from the City's Communication Department, used multiple methods of engaging its Stakeholders. These included developing a business card for City leadership to use at community gatherings to raise awareness and direct Stakeholders to the project website (Figure 2-1). The project website was populated with meeting presentations and other materials such as flyers and common acronyms (Appendix A), to keep Stakeholders up to date on the progress of the Funding Study. Speak Up Fayetteville, the City's new interactive engagement website, was also used to administer the two surveys described in this section as well as to allow Stakeholders to identify drainage issues that City staff might otherwise not be aware of. Figure 2-1. Funding Study Business Card City of Fayetteville Study for Flood Management & Water Quality Funding The City of Fayetteville faces many challenges when it comes to stormwater, both in quantity and quality, which require a sustainable funding source. The City is undertaking a study to discover the full cost of stornwvater services that our citizens expect, and to identify sources of funding to provide those services. We encourage you to be a part of the process by voicing your opinion. Learn more at: fayettevflle-ar.gov/flood-management-study Due to the multiple studies and bond referendum activities that were ongoing concurrent with the Funding Study, additional Stakeholder engagement and education efforts are planned, should the City decide to proceed with implementation of the recommended option. OCTOBER 2019 2 1 SECTION 2 - STAKEHOLDER ENGAGEMENT AND EDUCATION Table 2-1. Key Stakeholders and Methods of Engagement Key Stakeholders Methods of Engagement Mayor and Council Members 1. Direct coordination via in -person meetings, presenting the program, and answering potential questions from their constituencies 2. Special Committee Meetings 3. Public Meetings and presence at Community Events City Staff: Representatives of 1. Direct coordination via in -person meetings, presenting the program, and answering Key Departments potential questions from their constituencies 2. Staff Technical Advisory Committee (STAC) General Public 1. Stormwater Public Meetings: • September 20, 2018 (Ozark Natural Foods) • September 22, 2018 (Fayetteville Farmers' Market) • January 9, 2019 (Fayetteville Public Library) • January 10, 2019 (Arkansas Research & Technology Park) • January 17, 2019 (Boys & Girls Club) 2. Funding Study materials at other community events 3. Dedicated Funding Study website with presentations, acronyms and definitions, and Factsheets #1 and #2 4. Speak Up Fayetteville with Survey #1 and Survey #2 as well as a mapping tool to identify drainage needs S. Direct mailing of outreach postcard to all residential utility account holders. Stakeholders (Known Service Citizens who contacted the City during the April 2017 storm event were provided direct Calls) notification of upcoming Funding Study events and opportunities to submit comments. Key Stakeholders Key Stakeholder such as the University of Arkansas, Residential Property Managers/Student Housing Providers, Chamber of Commerce members, and those holding business licenses were contacted using the following methods: 1. Direct notification of upcoming Funding Study events and opportunities to provide comment. 2. Additional a -mails to key Stakeholder groups as well as traditional mailings to reach those without e-mail/internet access. 3. Coordination via in -person meetings, presenting the program and answering potential questions. As outlined in Table A-1 in Appendix A and illustrated by the photograph on Figure 2-2, over a dozen workshops and meetings were held with City staff, Council, and Stakeholders between June 2018 and August 2019 to: • Establish a strategic vision and goals for the Funding Study • Review the City's current stormwater system and services • Identify future stormwater needs and the additional cost of providing these services • Present options related to where the City provides drainage services (EOS) and what services the City provides and their frequency (LOS) • Select impervious area (IA) by property as the basis for billing a six -tier, customer neutral rate structure as the most equitable method of linking a property's impact on the drainage system with the fee it is charged • Review a range of Flood Management and Water Quality fee estimates by program options • Review options for a sustainable credit program to reduce the fees of those owners willing to proactively manage their property's stormwater runoff 2 2 OCTOBER 2019 SECTION 2 — STAKEHOLDER ENGAGEMENT AND EDUCATION 2.2 Funding Study Survey #1 Stakeholder Survey #1 was open from August 8, 2018 to April 7, 2019, during which 166 responses were logged. Of these, 157 responses were from survey takers that live in the City, with approximately 85% of these owning their residence and 1S% renting. During this time period, on average, there were: • SS4 total visits to the website • A maximum of 49 visits per day • 64 engaged visitors, meaning they filled out a survey or dropped pins on the map • 196 informed visitors, meaning that they clicked on something, either viewing a page or downloading a document Overall, the majority (82%) think drainage issues are either a major or minor problem in their area. Figure 2-3 characterizes what type of drainage issues the Stakeholders are experiencing. Although Stakeholders could select more than one issue, flooding in streets, roads, or private drives; flooding on their property; and trash/debris in streams or drainage ditches each received over 75 responses. 2-3. Drainaee Issues Identified in Survev #1 150 Question options Flooding in streets, roads, or private drives near your home or business 0 Flooding anywhere on your property Flooding inside your home or business 0 irashidebris in streams or drainage ditches 0 Pollution in streams, ponds, or lakes Soil andlor stream bank erosion * Other 0 1 have not experienced any drainage issues (166 responses, 0 skipped) To gauge the extent to which the City is aware of its overall drainage needs, Survey #1 asked how many of those surveyed were affected by the April 2017 storm. Of the 166 respondents, 76 were affected; however, only 18 (23%) logged a service request with City staff. To determine whether the City would have legal access to fix drainage issues when a service request is filed, survey takers were asked whether there was an existing public drainage easement on their property. Figure 2-4 illustrates that 30% do have a drainage easement on their property while 39% did not know, indicating that additional Stakeholder education is needed on public easements. Almost half of those responding noted that drainage issues in their part of Fayetteville were a major issue while 33% thought they were a minor issue (Figure 2-4). OCTOBER 2019 2-3 SECTION 2 - STAKEHOLDER ENGAGEMENT AND EDUCATION 55 (33.1%) "a k40-rW1 Question options Question options Yes P No 0 ! don't know goes not apply r Major problem 0 Minor problem 0 Not a problem Coxonar question (166 responses. 0 s*pped) (166 responses, 0 skipped) Survey #1 also asked Stakeholders about their willingness to pay a Flood Management and Water Quality fee based on the amount of impervious surface (Figure 2-5). Sixty-five (39%) responded that they were willing to pay a fee while fifty-eight, 35%, said they were not, and 25% were undecided. Survey #1 provided an open-ended question; a sample of these responses included the following: • Comments encouraging credits for low impact/green infrastructure measures, such as preservation of drainage onsite through bioswales, rain gardens, or rainwater collection for metered irrigation • Comments regarding affordability and equity • Willingness to pay for long-term, forward - thinking, sustainable solutions, not more ditches/culverts/higher curbs, and similar; instead, solutions such as more permeable surfaces, more native vegetation, and education 2.3 Funding Study Survey #2 Funding Study Survey #2 was posted on July 11, 2019 and will be open through the end of the September 2019. It solicits the City's businesses' and residents' opinions on the reasonableness of the proposed rates needed to proactively fund the management of flooding and water quality issues. 2-4 OCTOBER 2019 SECTION 3 Stormwater Program Costs This section summarizes the cost of the City's current stormwater program and the potential programmatic costs of future program options related to EOS, where the City will work, and LOS, what stormwater services the City would provide and at what frequency. To do so, it first characterizes the City's current stormwater system and then describes the range of EOS/LOS options developed to allow the City to characterize potential tradeoffs between cost of these services and its financial capacity (Section 4). Understanding the required costs associated with stormwater program implementation is critical to identifying required revenue and the associated financial management strategy. 3.1 Current Stormwater System and Services Currently, the City focuses its limited stormwater management funding on complying with the City's MS4 NPDES permit and responding to emergency repairs. The City is only responsible for operating and maintaining the public portion of its municipal stormwater system. Maintenance of the City's stormwater assets is primarily done in response to an emergency or to customer calls complaining about a stormwater management issue (typically associated Table 3-1. City of Fayetteville Stormwater System Total Responsibility City % of Total Feature Count Miles City Private/ Other Area of City of FayettevillE 55 square miles Rivers and Creeks draining > 100 acres 101 Highways 91 X X City Streets 386 X Private Streets 110 X Bridges 50 -- X X -- Detention Ponds 286 12 274 4% Outfall 1,494 643 851 43% with localized or nuisance flooding). The City relies on its Transportation Division to perform street sweeping and the cleaning out of curb inlets to remove sediment and debris that could potentially clog storm drains. They manage roadside ditches and continually clean and reshape the ditches to maintain positive drainage. Table 3-1 summarizes the City's stormwater assets and provides information on some relevant contributing aspects of the City, such as the rivers and creeks or streets. Various stormwater assets are tabulated based on type, and the responsibility for both City features and Stormwater assets is included. The quantity of various assets and the responsibility for them affects both the current and future stormwater program costs (Sections 3.2 through 3.4). The City's stormwater assets also include: • 257 miles of conduit pipes, of which 167 miles are in drainage easements or ROWS • 11 miles of box culvert, of which 7 miles are in drainage easements or ROWS • 238 miles of channel, of which 114 miles are in drainage easements or ROWS • 7,921 inlets and 794 junctions, also within easements or ROWS OCTOBER 2019 3-1 SECTION 3 - STORMWATER PROGRAM COSTS 3.1.1 Current Stormwater Services The City currently provides the stormwater services summarized by program area in Table 3-2 for the public assets listed in Table 3-1. As noted previously, the City is not responsible for the 110 miles of private streets and ROWS (which include drainage infrastructure), nor does it maintain the 274 private detention ponds that are not part of the public drainage system. Table 3-2. Overview of Current City Drainage Levels of Service Program Area Current City Services Maintenance of Public Drainage System The City is responsible for 43% of its outfalls (643 of 1,484 total), 48% of channels (Public Roads, ROWs, and Infrastructure (114 miles of 238 total) and 386 miles of streets/ROWS. with Easements) Maintenance of Private Drainage System Not applicable. There are approximately 110 miles of private streets in Fayetteville. (Private Roads and Infrastructure) Maintenance of BMPs Fayetteville is responsible for maintaining the 12 public (of 286 total) detention (Detention Ponds) ponds within the City. Maintenance of City Streamside Corridor There are currently no funding or corresponding public easements to allow the City to maintain most of its City Streamside Corridor. The City is currently inventorying and assessing the 100 miles of rivers and creeks draining more than 100 acres in Fayetteville as part of a multi -year project, as funding allows. Capital Improvement Program Projects Approximately $200,000 is currently budgeted annually for CIP projects. The 2019 Drainage Bond approved by voters provides for an Early Action Plan to address $15 million of the City's known $17.3 million backlog of projects. Program Administration Drainage/stormwater plan reviews and inspections are addressed by a mix of City (Plan Reviews and Inspections) staff located in multiple departments. These services are funded via multiple sources (impact fees and tax revenue). Stream Restoration and Stabilization As funding allows, the City has started inventorying and assessing streams on a Projects watershed basis to prioritize restoration and stabilization activities. NPDES MS4 Program Administration Phase II Small Community responsible for dry weather screening of all of the City's existing stormwater outfalls within a 5-year period, monthly construction site stormwater runoff control (erosion and sediment control) inspections, post - construction stormwater plan reviews (DCM and similar), post -construction stormwater plan "as built" inspections, and municipal maintenance/good housekeeping inspections. Water Quality Monitoring The City currently funds two USGS Stations. BMP = Best Management Practice DCM = Drainage Criteria Manual USGS = U.S. Geological Society The City's Engineering Department is responsible for the following flood management and water quality - related functions and services: • NPDES MS4 permit compliance • Floodplain administration • Streamside protection • Stormwater quality and nutrient reduction • Design, bid, and construction management of drainage improvement projects 3-2 OCTOBER 2019 SECTION 3-STORMWATER PROGRAM COSTS As an operator under the NPDES ARR040000 MS4 general permit, the City must comply with all permit conditions. Violation of any condition of the general permit constitutes a violation of the Arkansas Water and Air Pollution Control Act and subjects the discharger to the penalties specified therein. The Arkansas Department of Environmental Quality (ADEQ) issued a revised five-year permit, effective August 1, 2019, in order to renew general permit coverage for Phase II MS4s like Fayetteville. The level of effort and cost of ensuring compliance continues to increase with each subsequent permit renewal. For example, ADEQ has implemented a two-phase permit in order to be compliant with the federal general permit remand rule'. This makes the City's associated SWMP an integral and enforceable part of its permit, requiring public notice in the event of major modifications. As part of the recent MS4 permit renewal, ADEQ also made over 30 changes to the permit conditions that the City must integrate to ensure compliance going forward2. The City's NPDES MS4 permit conditions include six Minimum Control Measures (MCMs). The MCMs provide a framework for operators to design their programs to meet the three goals of reducing discharge of pollutants, protecting water quality, and satisfying the appropriate water quality requirements of the Clean Water Act (CWA). The six MCMs, or program elements, are as follows: • Public Education and Outreach on Stormwater Impacts • Public Involvement/Participation • Illicit Discharge Detection and Elimination • Construction Site Stormwater Runoff Control • Post -Construction Stormwater Management in New Development and Redevelopment • Pollution Prevention/Good Housekeeping for Municipal Operations Public education and outreach on stormwater impacts includes distributing educational materials and performing outreach to inform citizens about the impacts of polluted stormwater runoff on water quality. Public involvement/participation takes this a step farther by providing opportunities for citizens to participate in program development and implementation. Illicit discharge detection and elimination deals with both systematic and episodic discharges and includes public outreach as citizens should be informed of the hazards associated with illegal and improper disposal of waste. Construction site runoff control involves developing, implementing, and enforcing an erosion and sediment control program for construction activities that disturb 1 or more acres of land. Post -construction runoff control continues this process by implementing community -appropriate BMPs to reduce the impact of developments over their lifespan. Pollution prevention from municipal operations includes staff training on pollution prevention measures and it is the City's stated intention to "lead by example" and use this MCM to model excellent pollution control practices for Fayetteville citizens and businesses. The City is responsible for reviewing all new development plans for compliance with the City of Fayetteville Code of Ordinances and other applicable regulations. These regulations include, but are not limited to, the City of Fayetteville DCM and the flood damage prevention code. The City participates in the National Flood Insurance Program and has adopted a flood prevention ordinance in order to help protect residents and comply with the program. 1 For more information, see https://www.epa.gov/npdes/npdes-stormwater-final-ms4-general-permit-remand-rule for documents associated with the final MS4 general permit remand rule. 2 See%Section 1.10 of https://www,adeo.state.ar.us/water/permits/npdes/stormwater/pdfs/ms4/arrO400i)0-final-fact-sheet-20190801.pdf. OC10BLR 2019 3-3 SECTION 3—STORMWATER PROGRAM COSTS Streamside protection, stormwater quality, and nutrient reduction are also handled by the City's engineering department. A Streamside protection ordinance is in effect and the City published a Streamside Protection BMP Manual to assist the public in complying with this ordinance. They also partner with the Watershed Conservation Resource Center (WCRC) and perform stream restoration projects. 3.2 Current Stormwater Program Costs The City currently spends approximately $1.3 million to $1.5 Table 3-3. Current Stormwater Program Costs million annually on water quality and flood management activities (Table 3- 3). Although the City does try to leverage grants and other sources, these activities are primarily funded by the Street Fund, General Fund, and Sales Tax Capital Improvements Fund. The Street Fund is used to maintain and repair City streets, ROWS, drainage, traffic control and maintenance, and City -owned sidewalks; portions are also allocated for public transit to Razorback and Ozark Transit systems. The Street Fund is primarily financed by turnback revenues received from the State of Arkansas and turnback monies received from the County Road Millage Tax, as well as a temporary gasoline tax levied by the State. The General Fund, the City's major operating fund, is sourced from over 10 different taxes, fees, and services. Over 80% of the revenue supporting the General Fund comes Department and Cost Center 2017 Engineering $460,000 Non -project -related labor (Floodplain Administration, Streamside Protection, and similar) $100,000 Stormwater Quality Management and Nutrient Reduction $160,000 Drainage Projects/Other $200,000 Parks & Recreation $25,000 Maintenance of public owned detention and stormwater quality features $25,000 Transportation Division $959,682 Drainage $697,101 Street Sweeping $262,581 Water & Sewer $13,759 Staffing - Inspections $1,207 Dam Inspection and Maintenance $12,552 Grand Total $1,458,441 from the City's Share of county sales Note: Drainage capital increased from $200,000 annually to $500,000 tax, the city sales tax, franchise fees, annually in 2018 for Engineering. and the property tax millage (Fayetteville, 2018b). The Sales Tax Capital Improvements Fund is sourced from the City's sales and use taxes and is used for acquisition and improvement projects as well as equipment additions and replacements that are included in the City's 5-year CIP. Contributions to the stormwater program come from various departments including Engineering, Parks and Recreation, Transportation Division, and Water and Sewer. The current costs of the City's stormwater program, as of 2017, are summarized in Table 3-3. The City's Engineering Department is also responsible for the design, bid, and construction management of drainage improvement projects throughout the City. Projects are generally classified as small, medium, or large based on their cost. Small drainage projects are defined as less than $500,000; some examples include culvert replacement or size increase, curb or inlet construction, increasing inlet capacity, and creation of ditches or swales to divert runoff. Medium drainage projects are similar project types but are larger in scope and range from $500,000 to $1 million. Large drainage projects are those that would be 3-4 OCTOBER 2019 SECTION 3 — STORMWATER PROGRAM COSTS over $1 million and be implemented throughout entire watersheds. Projects this size have been considered previously but were deferred due to cost considerations. Maintenance is a combined effort between the City and the property owners. The Parks and Recreation Department maintains the 12 detention ponds as well as the parks in which many low -impact development (LID) features have been installed. However, the bulk of maintenance efforts for stormwater assets are addressed by the Transportation Services Department. The City maintains all public facilities, including above and below ground storm drainage. When needed, the City will address waterways located within the city limits by removing debris, sediments and other items that may inhibit effective conveyance of stormwater runoff. However, in many instances this maintenance activity dependent on the existence of a drainage easement surrounding the structures and waterways in question. If no drainage easement exists or if the portion of the storm drainage system is private, it becomes the responsibility of the property owner or owners to maintain that portion of the system. This is also applicable for stormwater detention basins as the maintenance responsibility is placed on the property owner or in some instances the Property Owner's Association. The Water and Sewer Department is responsible for inspections including dam inspection and maintenance on the three major lakes in Fayetteville (Lakes Fayetteville, Sequoyah, and Wilson). 3.3 Extent of Service and Level of Service Analysis Future stormwater program costs are based on a range of options for both EOS and LOS (Table 3-4). The EOS defines where the City will work or, in other words, what drainage infrastructure the City will be responsible for. The LOS defines what stormwater services the City would provide and at what frequency. These services generally fall into categories such as 0 & M, regulatory compliance, engineering and planning, and capital improvement planning. Three initial options were provided for both EOS and LOS—Routine, Proactive, and Enhanced —ranging from the least to the most involved. Having a range of potential EOS and LOS options will allow the City to characterize potential tradeoffs between the cost of these services and its financial capacity. Programmatic cost estimates are tabulated for these options in later sections while a blended option of Standard/Proactive was added later in the Funding Study. Table 3-4. Overview of Initial Extent of Service and Level of Service Options Likely Time Cost Option Frame'• Purpose of Option Current Characterize existing conditions, that is, what drainage services the City provides and where for the current program costs $ Standard 20 years Characterize the cost to address unintended inequities in the City's current drainage services $$$ Proactive 10 years Characterize the cost of additional public responsibility of private infrastructure and to estimate the cost of additional unfunded regulatory compliance if the City continues to grow in population $$$$$ Enhanced S years Characterize the cost of additional public responsibility of private infrastructure. Estimate the cost of additional unfunded regulatory compliance if the City continues to grow in population ' Time frame to address backlog of drainage projects and meet Flood Management and Water Quality goals Financial planning and rate analysis, described in Section 4, follows an iterative process to help the City identify the right balance of stormwater services, given its financial capacity and Stakeholder priorities. ocro�i [z )oly 1-s SECTION 3 — STORMWATER PROGRAM COSTS 3.3.1 Extent of Service Although the current EOS has been implemented fairly consistently, some areas of the City do not have drainage easements simply due to the age of the development, while others are adjacent to larger waterways or drainage conveyances that are not realistic to maintain privately. Table 3-5 outlines the City service areas and dictates which service areas would be addressed by each EOS. Table 3-5. Extent of Service Options Service Area Current Standard (Option A) Proactive (Option A/B and B) Enhanced (Option C) Public Roads and ROW X X X X Private infrastructure connected to Public ROW, X X Drainage Easements Existing X X X X Assume Easements Equitably (City-wide) X X X Detention Pondsb Public X X X X Residential X X Non -Residential X City Streamside Corridor' X a_ Public maintenance would extend to the downstream end of the first private infrastructure connected to the ROW. b. Donated easement and a brief report certified by a licensed Arkansas Professional Engineer demonstrating that all private drainage features are functioning according to the specifications of the City's DCM prior to being accepted by City. A corridor representing a 10-foot buffer from the top of each waterway's banks downstream of the City's 100-acre headwater for streamside protection areas. 3-6 OCTOBER 2019 SECTION 3—STORMWATER PROGRAM COSTS 3.3.1.1 Current Extent of Service Figure 3-1 illustrates existing conditions in which the City maintains public roads and ROWS as well as drainage features (excluding detention ponds) within dedicated easements. These dedicated public easements are generally found in the more recently developed areas of the City. Figure 3-1. Current Extent of Service H -",q r 17,19 orb+ 5tvd� for i iaod A4anageawnr and NhrrerQL aky knWing l OCTOBER 2019 3-7 SECTION 3—STORMWATER PROGRAM COSTS 3.3.1.2 Standard Extent of Service (Option A) Current EOS plus public maintenance of those private drainage features found within what would now be designated a public drainage easement but not for the age of the development (Figure 3-2). Private property owners would be expected to: • Donate these new drainage easements to the City on an as needed basis • Provide a brief report certified by a licensed Arkansas Professional Engineer demonstrating that all private drainage features are functioning per the specifications of the City's drainage criteria manual prior to being accepted. Alternately, should the City decide to proceed with implementation, the City may assess the cost and legal implications of allowing City staff to perform these certifications for private property owners. Figure 3-2. Standard Extent of Service (Option A) Pilot to city eccewm 1`060rm6ia W fibx.2rr .st �s:!: D"sao=3" 02senwil aoeva P; a user repot ceMf*d W an Ergrbr einn-Amliin &—aw iaa — are hater orwv pe ar V" COY$ "wtage otem "WnQ t Public roads, publk detenbcan ponds and rights of way, and 2. Drainage features (excluding private detention ponds) within dedicated public easements 3. City would assume public maintenance of those private drainage features fouM within what would now be designated a public drainage easement but not for the age of the development 3-8 OCTOBER 2019 SECTION 3-STORMWATER PROGRAM COSTS 3.3.1.3 Proactive Extent of Service (Option A/B and B) The proactive EOS alternative, referred to later as "Option A/B and B," includes the standard EOS plus the City would establish a process for accepting public maintenance responsibilities of private residential detention ponds as needed (Figure 3-3). Private property owners would be held to the same expectations as the standard EOS. 3-3. Proactive Extent of Service (Option A/B and Prim to cov accRohm resms4bNitV. the DrNme oroftoy ownsr Mot • Dot: a "k+r eastrnart m ow chy, as —km, • € lovee a bW repA eeTtrW by an Aft-kU se4 FIE 66ff4 VWV Oft A: M4* * M A90 are hr+c9Ktsm pet VA S eaftawn3 a€ ste ceys &ar,.40 allefu r9LY "V411 i Standard EOS, additionally public maintenance would extend to the downstream end of the first private infrastructure connected to lire public system. H2 Drainage features (excluding private commercial detention ponds) within dedicated public easements RMIP i City +,mould estabhsh a process for accepting public maintenance responsibilities of private reside'nual detenuon ponds. Steadylar Flood Manage nent and Waiter Quality Funding OCTOBER 2019 3-9 SECTION 3—STORMWATER PROGRAM COSTS 3.3.1.4 Enhanced Extent of Service (Option C) Includes the proactive EOS described previously, plus public maintenance of commercial detention ponds and those waterways downstream of the City's 100-acre headwater for streamside protection areas with public responsibility extending out approximately 10 feet from the top of the waterway's banks (Figure 3-4). Private property owners would be held to the same expectations as proactive EOS. Figure 3-4. Enhanced Extent of Service (Option C) ur+ztlttx.2=rmtsc Dons, a df WM ma to VW c vy as nceOW, FIVv-eJd a U M,eV-t u-mkd Uf.V31R- taexd FE ci9diK'/t VJIV t W.4 xa (:pima Qa{l,a8 ie rax ls" am 4,A CmM iw the speaT,kat*m al t o Otis d anaW sa4W3 rmxr,,V. cmw.t I Proactive EOS, and 2 City would establish a process for accepting public maintenance responsibilities of private residential and commercial Mdetention ponds, and Public maintenance of the approximately 100 Was of waterways downstream of the City's 100-acre headwater for streamside protection areas; public responsibility would d extend ml approximately 10 feet from the top of the waterway's banks 3.3.2 Level of Service The LOS dictates what stormwater services would be provided by the City and at what frequency. These services, listed by option in Table 3-6, are generally distributed among four categories: O & M, regulatory compliance, engineering and planning, and stormwater CIP. After additional Stakeholder feedback, Option A/B was added to characterize the financial impacts of the Option B EOS with the Option A "standard" frequency of maintenance and time frame for CIP. 3.3.2.1 Current Level of Service Table 3-6 outlines the stormwater services provided for a current LOS. These are the services that are currently provided by the City. O & M services are primarily reactionary, drainage calls are responded to and resolved, and public detention ponds are inspected and maintained at a minimum level. The current LOS does not cover inspection and maintenance of private residential or commercial ponds. Regulatory compliance actions include administration of the NPDES MS4 program as well as water quality monitoring and inspections that meet regulatory minimums. Program elements related to engineering and planning are limited for the current LOS (Table 3-6). Dam safety studies are performed, as are a limited number of drainage studies, stream and watershed assessments, and floodplain studies. Low impact development retrofits are not addressed at this LOS. Capital improvement projects are limited by 3-10 OCTOBER 2019 SECTION 3—STORMWATER PROGRAM COSTS funding. At this LOS, a limited number of drainage improvements, watershed improvements, and dam safety upgrades are performed but many larger stormwater improvement projects are not feasible. Table 3-6. Level of Service Options Standard Proactive Enhanced Program Elements Current (Options A and A/B) (Option B) (Option C) Operations and Maintenance' Respond to Drainage Calls Xb. X X X Provide Resolution to Drainage Call Xb, 4S days 30 days 2 weeks (No Action, Routine Fix, CIP Fix, or Drainage Study) Inspection and Routine Maintenance of Public V Annually Annually Annually Detention Ponds Inspection and Routine Maintenance of Private 1S%Annually 2S%Annually 50%Annually Residential Ponds Inspection and Routine Maintenance of Private 25%Annually Commercial Detention Ponds Inspection and Routine Maintenance of Public Reactive` 20% Annually 25%Annually S0%Annually Drainage System/MS4 Regulatory Compliance NPDES MS4 Program Administration Phase II Phase II Small Phase II Medium Phase II Medium Small Water Quality Monitoring Two USGS Two USGS Stations Four USGS Four USGS Stations Stationed Stationsd Dry Weather screening of existing stormwater 20% 20% Annually 50% Annually 100% Annually outfalls Annually (Compliance goal = Screen all outfalls every S years) Construction Site Stormwater Runoff Control Monthly Monthly Biweekly Biweekly (Erosion and Sedimentation Control) Inspections Post Construction Stormwater Plan Reviews (DCM X X X X and similar) Post Construction Stormwater Plan "As Built" X X X X Inspection Dam Safety Inspections Xc X X X Municipal Maintenance/Good Housekeeping Annually` Annually Two per Year Two per Year Inspections OCTOBER 2019 3-11 SECTION 3 — STORMWATER PROGRAM COSTS Table 3-6. Level of Service Options Standard Proactive Enhanced Program Elements Current (Options A and A/B) (Option B) (Option C) Engineering and Planning Drainage Studies Limited Prioritize basins, Prioritize basins, City-wide 10% of City studied 25% of City Drainage Study annually studied annually Stream and Watershed Assessments Limited Prioritize basins, Prioritize basins, City-wide 10% of City studied 25% of City Watershed annually studied annually Assessment, including Stream Condition Assessment Floodplain Studies Limited As Needed As Needed As Needed LID Retrofits Limited As Prioritize and Redevelopment implement Occurs retrofits based on Drainage Studies Dam Safety Studies X X X X Stormwater CIP Components CIP Project Completion Rate Limited 20 Year 10 Year e_ 5 Year Potential CIP Project Types: Drainage Improvements/Retrofits Limited X X X (Pipe Replacements, Neighborhood Systems) Floodplain Buyouts or Improvement/Elevation X X X Projects Large-scale regional detention projects X X Watershed Improvement, that is, Stream Limited X X Restoration and Stabilization Projects Dam Safety Upgrades Limited X Detention Pond Retrofits X X ' O & M to address both the drainage and water quality criteria of the City DCM b. Where public drainage easements exist to legally allow the City to work on private property Meeting regulatory minimum, frequency limited by current City resources (funding and staff) d. Additional monitoring points may be required under a Phase II Medium permit and/or due to Total Maximum Daily Load monitoring of the Illinois River. e. After additional analysis of potential costs and input from City Stakeholders, the CIP completion rate was later increased modestly for Option B from 10 years to the 15 years 3-12 OCTOBER 2019 SECTION 3 - STORMWATER PROGRAM COSTS 3.3.2.2 Future Level of Service Options Three future LOS options were considered including Options A and A/B (standard), Option B (proactive), and Option C (enhanced). Each LOS alternative provides an increase to the baseline LOS currently provided, see Table 3-6. The frequency of several program elements would remain constant for each LOS. These include responding to drainage calls, post -construction plan reviews and "as built" inspections, and dam safety inspections and studies. However, the LOS options provide a framework for program elements to be transitioned from reactionary to scheduled. O & M activities could become more preventive in nature and greater numbers of water quality control efforts could be implemented. Table 3-6 illustrates that increases in LOS would allow the City's Engineering and Planning Departments to play a much larger role in the stormwater management program. Currently, studies of drainage, streams and watersheds, and floodplains are limited. The three new levels of service would allow for portions of the City, or even the City as a whole, to be studied with the added benefit that the new information facilitates appropriate use of future capital improvement funds. 3.3.3 EOS/LOS Program Cost Estimates Feedback on these three EOS/LOS options was solicited from Stakeholders and Council members through a series of meetings regarding what should be included in each option. The three alternatives for EOS and LOS have different associated costs, which increase over time. Programmatic cost estimates were generated and projected forward over a 5-year time frame and are provided in Tables 3-7 and 3-8 or, with respect to capital improvement components, in Section 3.4. The programmatic costs for O & M are based on the services needed for the current stormwater system, as quantified in Table 3-1. Costs for responding to drainage calls and resolving them as well as inspecting and maintaining detention ponds are consistent for Option A, Option B, and Option C services. However, the 0 & M costs for Option A/B were adjusted to reflect the City taking care of private, residential detention ponds. 0 & M costs were estimated based on several factors including: quantity of various assets, frequency of maintenance, and the required time and personnel to complete maintenance. Salary schedules were used to obtain costs from the annual number of labor hours required for various maintenance levels. O & M costs also include construction materials such as new conduit and annual operating costs for equipment such as trucks, excavators, and trailers. Equipment operating costs were based on unit prices provided by the Transportation Division. Engineering and planning programmatic costs consist of staffing costs for inspection and engineering services as well as the cost of contracted studies. Inspection costs span various aspects of the program and include: • Dry Weather Screening • Construction Site Inspection • Building Safety EC Inspections • Inspection of MS4 Facilities • Illicit Discharge Detection • Inspection of Public and Private Detention Basins • Dame Safety Inspections • MS4 Reporting Each EOS/LOS involves an increased number of facilities requiring inspection and increased frequencies of inspection which are detailed in the previous sections. Engineering services include the costs for engineering work on drainage studies, stream and watershed assessments, and LID retrofits, as well as the cost of managing contracted studies in these areas. The cost of contracted studies varies between OCTOBER 2019 3-13 SECTION 3 — STORMWATER PROGRAM COSTS the LOS options depending on who is performing the work. The City would self -perform S% of the prioritized studies for both a standard and proactive LOS. For a standard LOS, 5% of them would be contracted annually, and 20% would be contracted annually for a proactive LOS. The enhanced LOS involves City-wide studies, which would be 100% contracted. Approximate costs for contracted stream and watershed assessments were determined based on previous WCRC projects. The programmatic costs for Regulatory Compliance are based on the size of stormwater program. Section 3. 2 describes how the program is considered to be Phase II Small for the baseline and standard EOS/LOS. This is upgraded to Phase II Medium for the proactive and enhanced EOS/LOS to reflect the possibility of continued population growth. The MS4 permit cost and cost per USGS station were held constant for this cost estimate. The cost for the standard EOS/LOS was assumed to be the same as the Baseline. For the remaining sources of Regulatory Compliance cost, the costs were scaled up for each EOS/LOS. These sources include staff time charged to program administration, partnerships with the University of Arkansas Cooperative Extension Service, the Illinois River Watershed Partnership, and the Beaver Watershed Alliance for public outreach and education, and natural stream restoration maintenance through the WCRC. Table 3-7 provide 5-year projections of cost of each EOS/LOS alternative; these projections assumed a 3% annual rate of increase. Table 3-7. Programmatic Costs by EOS/LOS Option Option A (Standard EOS/LOS) Year 1 Year 2 Year 3 Year 4 Year 5 Operation and Maintenance $1,630,000 $1,678,900 $1,729,267 $1,781,145 $1,834,579 Engineering and Planning $290,000 $298,700 $307,661 $316,891 $326,398 Regulatory Compliance $193,000 $198,790 $204,75 $210,896 $217,223 Option B (Proactive) Year 1 Year 2 Year 3 Year 4 Year 5 Operation and Maintenance $2,190,000 $2,255,700 $2,323,371 $2,393,072 $2,464,864 Engineering and Planning $799,000 $822,970 $847,659 $873,089 $899,282 Regulatory Compliance $333,000 $342,990 $3S3,280 $363,878 $374,794 Option C (Enhanced) Year 1 Year 2 Year 3 Year 4 Year 5 Operation and Maintenance $3,860,000 $3,975,800 $4,095,074 $4,217,926 $4,344,464 Engineering and Planning $2,250,000 $2,317,500 $2,387,025 $2,458,63 $2,532,395 Regulatory Compliance $333,000 $342,990 $353,280 $363,878 $374,794 Note: Refer to Section 3.4 for stormwater CIP components. 3-14 OCTOBER 2019 SECTION 3 — STORMWATER PROGRAM COSTS 3.4 Programmatic Stormwater Capital Improvement Plan Historically, the City has budgeted $200,000 per year to address design and construction of drainage projects. As discussed in Section 1.2.2, the high demand for drainage projects revealed by the 2017 flooding prompted the City Council to approve an increase for the 2018 drainage improvement budget to $500,000. For 2018, the City has used this increased budget to address seven drainage improvements projects (listed in Table 3-8). These costs do not include labor costs for maintenance projects or the capital costs for projects that need additional flood studies. Section 1.2.3 describes the 2019 Bond Program, which funds a $15 million Early Action Plan of flood mitigation and drainage improvement projects (larger than $200,000). However, the increase in 2018 funds to $500,000 along with the $15 million bond are anticipated to be insufficient to address many of the stormwater improvements identified, particularly with respect to large-scale, City-wide studies and improvements. Table 3-8 summarizes the current and future CIP program elements considered for the Funding Study. Table 3-8. Stormwater CIP Program Elements by Option Program Elements Current Option A and A/B Option B Option C CIP Project Completion Rate Limited 20 Year 10 Year a 5 Year Potential CIP Project Types: Drainage Improvements/Retrofits (pipe replacements, neighborhood systems) Limited X X X Floodplain Buyouts or Improvement/Elevation Projects X X X Large-scale Regional Detention Projects X X Watershed Improvement, that is, Stream Restoration & Stabilization Projects Limited X X Dam Safety Upgrades Limited X Detention Pond Retrofits X X Note: a After additional analysis of potential costs and input from City Stakeholders, the CIP completion rate was later increased modestly for Option B from 10 years to the 15 years Table 3-8 was used to develop a budget for capital improvement projects for the EOS/LOS options. In addition to these program elements, the capital cost of equipment used for 0 & M and the cost of completion for projects identified by drainage studies were included in the budget for each option. Once the budgets were compiled, the total cost was annualized by the project completion rates listed previously to generate a yearly cost for each LOS (Table 3-9). Table 3-9. Initial Capital Improvement Program Costs by Option Option A and A/B (Standard) Option B (Proactive) Option C (Enhanced) Total Programmatic Cost $22,813,000 $46,046,000 $49,217,000 Annual Average Programmatic Cost $1,141,000 $4,605,000 $9,844,000 OCTOBER 2019 3-15 SECTION 3—STORMWATER PROGRAM COSTS After additional analysis of potential costs and input from City Stakeholders, these options were narrowed to Options A/B and B. Concurrently, the CIP completion rate was increased modestly for Option B from 10 years to the 15 years noted in Table 3-10. Table 3-10 provides these final CIP costs by project type prior to excluding the $15 million budged for the Early Action Plan and funded by 2019 Drainage Bond. O & M costs are not eligible for Bond funding. Table 3-10. Final Capital Improvement Program Total Costs by Option Option A/B (Standard) Option B (Proactive) CIP Project Completion Rate (years) 20 15 CIP Project Types Total Budget % of Total Total Budget % of Total Drainage Improvements $26,693,450 77% $26,693,4SO 4S% Flood Plain Buyouts/Elevation Projects $1,750,000 5% $ 2,500,000 4% Operation and Maintenance Equipment (startup) $1,654,000 5% $1,88S,S00 3% Projects identified by drainage studies $ 2,S00,000 7% $5,000,000 8% Large-scale Regional Detention $15,000,000 25% Watershed Improvement/Stream Restoration $2,000,000 6% $ 2,500,000 4% Detention Pond Retrofits $ 5,500,000 9% Totals (rounded) $ 34,598,000 $59,079,000 Minus FY2018 Funding ($500,000) ($500,000) Minus 2019 Bond Funding ($15,000,000) ($15,000,000) Net Total CIP Needs (rounded) $19,100,000 $43,600,000 3-16 OCTOBER 2019 SECTION 3—STORMWATER PROGRAM COSTS 3.5 Final Future Program Costs by Option As discussed previously, program costs were developed for each option and refined for Option A/B and Option B. Table 3-11 and Figure 3-5 present these costs (in 2018 dollars) for each aspect of the program along with a total programmatic cost for each both EOS/LOS options. Table 3-11. Final Future Program Costs by Option Current % of Total Option A/B (Standard) % of Total Option B (Proactive) % of Total Operation and Maintenance $998,441 68% $2,623,000 58% $2,982,000 38% Engineering and Planning $67,000 5% $201,000 4% $638,000 8% Regulatory Compliance $193,000 13% $351,000 8% $638,000 8% Stormwater CIP Components $200,000* 14% $954,900 24% $2,905,267 42% Administrative $286,000 6% $315,000 4% Total $1,458,441 $4,415,900 $7,478,267 Figure 3-5. Final Future Program Costs by Option $3,500,000 $3,000,000 $2,500,000 $2,000,000 S 1, so0,000 $1,000,000 $S00,000 $0 Operation and Maintenance Engineering and Planning Regulatory Compliance Stormwater CIP Components Administrative ■ Current M Option A(B v Option B OCTOBER 2019 3-17 SECTION 3-STORMWATER PROGRAM COSTS 3.6 Preliminary Organizational Structure There are many ways that the City could integrate a Flood Management and Water Quality fee program into its current organization structure, ranging from a new stormwater organization to a matrixed organization that leverages existing resources and sharing of expertise between City departments. The City has indicated its preliminary interest in a matrixed approach (Figure 3-6), using existing departments and divisions. The Engineering Department, housed under Development Services, would lead the implementation of a Flood Management and Water Quality fee if the City decides to proceed. Engineering staff provide technical review and support for all private development including the technical review of compliance with the City's water, sanitary sewer, street design, grading, and stormwater runoff standards and ordinances. It also supports of the Planning Department and Planning Commission at the development review meetings. The Engineering Division is responsible for the following: • Providing design and project management for City infrastructure projects • Reviewing development proposals for compliance with city criteria such as water, sewer, streets, drainage, grading, and other technical requirements • Managing the planning, design, and permitting of trails projects and oversees construction of trails by the Transportation Division or private contractors. • Assisting in the acquisition and sale of City property, ROWs, easements, and similar • Managing miscellaneous stormwater and water quality initiatives • Ensuring compliance with the City's NPDES Stormwater Permit issued through ADEQ and its floodplain regulations 3-1F OCTOBER 2019 SECTION 3-STORMWATER PROGRAM COSTS Figure 3-6. Potential Future Organizational Integration Vti5ty Fin— at SendcM Geog aphic la(or EnK(nmr, g err M CTeryl Pattatn Chris Brown Greg Rest I E Transportation Servkas Flee Cpea[weu_ KeiM Sh i Sar C.� i D-elopntent A Sfornnwcw En6rt E 1 Stmn - Engnaw Iili W .... 41­1'11 G6 Analyst (0.<FTEI Commmon i Lkm d vrhl ep at �a Lltens i j Eiy- I los Fre7� (0.5 Frn r fustomn Sbv3Ye SCpllnsv W �n#Pfna' . 5t, S weepins kepresentatNe il.s iTO .w lr�dn 4'eir laatlr� Ope Wns QFM $Ni Fngneer I ( I � jj} Llnik¢nsei lG.S FfEi ( New Employee Front tine Employee OCTOBER 2019 3-19 SECTION 4 Financial Planning and Rate Analysis The Financial Planning and Rate Analysis followed an iterative process to help the City identify the right balance of stormwater services, given its financial capacity and Stakeholder priorities. Financial planning for developing a stormwater utility is typically an iterative process that includes both a "top down" and "bottom up" evaluation. The "top down" component focuses on what it would actually cost to deliver the anticipated LOS, and the "bottom up" component typically focuses on what customers are willing to pay. A sound financial planning process that considers all relevant revenue sources is critical to rate setting, because the level of revenues required from user fees should consider the projected revenues available from other revenue sources. This financial planning must support the correlation between the cost of service and the relative burden of an individual property on the stormwater system in order to develop a defensible recommended fee. Therefore, the financial planning activities are usually conducted in parallel with the development of the final LOS/EOS and rate structure evaluation to identify an overall fee and financial plan that supports the goals for improving stormwater management and is acceptable to key Stakeholders. 4.1 Alternative Funding Sources There are several types of funding sources that can be used for drainage services, which may include one or more ad valorem taxes, grants, loans, and/or user charges. Stormwater programs often depend on mix of other funding sources beyond a potential drainage fee or general fund sourced from tax revenue. For example, some capital projects may qualify for federal or State grant funding; as another example, plan review and inspection fees or other special fees may be used to cover some program - related activities. A number of utilities secure State revolving fund loans to pay for capital projects that merit such long-term funding. For the 2019 Drainage Bond, the City is using a revenue bond, which consist of municipal bonds secured by a specified revenue source. Use of these other funding sources can increase the LOSS offered by a stormwater program because the stormwater user fees are employed to pay the annual debt service rather than the upfront capital expenditure costs. The City's current drainage program is primarily funded by the Street Fund, General Fund, Sales Tax Capital Improvements Fund, and the intermittent issuance of revenue bonds. However, due to the increasing and competing demands for these limited funds, the City recognizes the need to identify other dedicated and equitable funding sources to sustainably support its future drainage needs. The City's 2010 Feasibility Study reviewed a series of alternative funding sources and generally eliminated additional funding from the following other long-term funding sources due to the reasons noted as follows and summarized in Table 4-1: • Millage from Property Taxes — Not equitable because tax exempt organizations do not pay for the management of the stormwater they generate. Not a stable, dedicated funding source. Sales Taxes — No direct relationship with the amount of stormwater management needed nor dedicated specifically to drainage needs. Taxes can also be politically difficult to increase and can vary from year to year. OCTOBER 2019 4-1 SECTION 4 — FINANCIAL PLANNING AND RATE ANALYSIS Similarly, the following supplemental funding sources were found to be inadequate for the City's future needs: • Special Assessments — Typically used to fund public works associated with specific properties and for a specific purpose, as opposed to the long-term O & M of a system. • Developer trust funds — Typically only successful when associated with a new development's desire to be annexed into a community. Because these funds cannot be retroactively applied to existing developments, these trust funds can raise the cost of new construction, while their revenue potential is limited to new development. • Impact Fees — Use of revenue from impact fees on new construction is limited to new facilities that serve those paying the fee and cannot be used to retrofit existing infrastructure unless it is redeveloped and must go through the City's permitting process. The amount of revenue from impact fees is directly related to the rate of new development and thus vary from year to year. • Low Interest Capital Funding — Sometimes offered by various agencies; however, these typically fund short-term capital projects and not long-term O & M needs. • Bond Financing of Capital Projects — Used for capital projects with the potential to generate new revenue. However, the revenue stream must first be established and proven prior to bonds being issued. • Grants — Offered by various agencies such as the U.S. Environmental Protection Agency and the U.S. Department of Agriculture. Although useful for specific projects, the grant amounts are typically not sufficient to fund long-term O & M needs, and the administrative requirements can be burdensome for local communities. Table 4-1. Summary of Alternative Funding Sources Equitable Flexible Can provide adequate funds? Data/ Administrative Complexity Use of Funds Stormwater User Fee Yes Yes Yes High City-wide Millage from Property Taxes Yes Low City-wide Sales Taxes Yes Low City-wide Special Assessments Yes Medium Project -specific, not for 0 & M Developer trust funds Medium Project -specific, not for O & M Impact Fees Yes Medium Project -specific, not for 0 & M Low Interest Capital Funding Yes Project -specific, not for 0 & M Bond Financing of Capital Projects Yes High Project -specific, not for O & M Grants High Project -specific, not for 0 & M 4-2 OCTOBER 2019 SECTION 4 - FINANCIAL PLANNING AND RATE ANALYSIS 4.2 Basis of Proposed Fee Estimates IA was selected as the basis of the fee because it increases the amount of water entering the drainage system and waterways, which can then increase the chance of flooding, stream bank erosion, and sedimentation. Runoff from IA also carries pollutants that can impact water quality, such as sediment, sand, fuel from spills and leaks of vehicles, herbicides and pesticides, detergents, metals, and bacteria from pet waste. It is an equitable basis for a fee for services since larger, developed properties tend to have larger amounts of IA which generates a greater volume of runoff. More runoff requires more drainage infrastructure, which necessitates additional O & M as well as the long-term capital costs of repair and replacement. Put simply, larger developments and homes with corresponding parking and driveways create a greater need for stormwater services. To determine the revenue potential of a user fee program, accurate spatial data is needed to calculate individual user fees based on IA and property boundaries and to determine the number of billing units, while other attributes such as ownership, billing, and service addresses (if different) are needed to generate a customer billing database. The City's Geographic Information System (GIS) Department performed a preliminary spatial analysis of: • The number of properties within the City • The amount of imperviousness (buildings, driveways, and similar) by parcel/property • Their distribution by customer class The Funding Study team then reviewed of distribution of IA by parcel boundary and customer type (Table 4-2) to identify an equitable billing unit and whether a tiered rate structure would be appropriate. Due to the historical expense of mapping all the IA within a local governments service area, many entities adopted an "equivalent residential unit" (ERU) billing unit based on statistical sample of the median impervious area of single-family residential properties. For the City, the ERU based on all 18,974 single family parcels would be approximately 3,500 square feet (SF) of IA. Table 4-2. Parcel Count and Impervious Area by Customer Class Customer Class Parcel Count Total IA (SF) Average IA (SF) Median IA (SF) Maximum IA (SF) All Properties 25,690 235,940,932 9,184 3,425 2,325,502 Single -Family 18,974 76,451,588 4,029 3,466a 90,954 Multi -Family 3,059 36,724,982 12,006 3,734 521,127 Non -Residential 2,943 98,178,891 33,360 12,819 2,325,502 Public School 68 5,002,386 73,565 14,188 530,925 Religious 206 4,589,749 22,280 8,353 428,155 University 440 14,993,336 34,076 7,26S 1,210,092 a Based on a preliminary GIS analysis by City staff; minimum mapping unit of data is 100 SF. Figure 4-1 illustrates this comparison and why IA serves as an equitable representation of the cost of providing these services. This avoids the multiple issues generated by using a flat rate based on customer or meter type. For example, if the City adopted a program similar to the City of Bryant, Arkansas (bills based a monthly flat fee of $3 for residential utility account holders and $6 for OCTOBER 2019 4-3 SECTION 4 —FINANCIAL PLANNING AND RATE ANALYSIS commercial and industrial accounts), which is closer to parcel count distribution on the left, there would be an inequitable "disconnect" between the cost of services and fee/charge paid by the customer for these services. Figure 4-1. Distribution of Parcel Count versus Impervious Area Number of Parcels Impervious Area (sq. ft.) Public School -., Religious University University 0.3% �`, 1% �� 2/ Religious 6% 2%, Public school_.___ 2% Customer billing equity was further assessed by comparing the percent distribution of billing units by customer class using an ERU method versus a tiered method to illustrates the distribution of potential costs (Table 4-3). It shows the potential for non-residential and multi -family residential properties (shaded light gray) to subsidize the cost of providing single family residential stormwater services under an ERU billing unit method. A six -tier billing unit method, using a rate expressed as cost per 1,000 SF of IA, was found to most closely equate to the distribution of actual IA and therefore could best serve to avoid inter -customer class subsidies. Therefore, a tiered rate structure, shown in Table 4-4, with no customer class distinction was selected to balance equity with ease of administration. Most properties pay based on tier assignments where the fee is based on middle value of the range divided by 1,000 SF. For example, a property assigned to Tier 3 (more than 3,500 and less than or equal to 5,000 SF) pays based on 4.25 billing units (4,250/1,000). For those properties with imperviousness greater than 8,000 SF, the owner would pay based on actual impervious area divided by 1,000 SF. For example, a property with 10,000 SF pays based on 10 billing units (10,000/1,000). Table 4-3. Comparison of Billing Unit Distribution by Customer Class Parcels Total IA ERU Method (1 ERU = +/-3,500 SF of IA) Tier Method (1 Billing Unit = 1,000) Single -Family 74.6% 34.8% 30.4% 34.8% Multi -Family 11.6% 15.6% 16.6°' 41.8% 15.6% Non -Residential 11.2% 39.2% 39.2% Public School 0.2% 2.1% 2.3% 2.1% Religious 0.8% 1.9% 2.1% 1.9% University 1.6% 6.4% 6.8% 6.4% 4-4 OCTOBER 2019 4.3 Financial Planning Assumptions Using the tier structure presented in Table 4-4, the Funding Study then assessed a series of financial planning scenarios and narrowed them down to the following two based on feedback from the City: • Scenario 1 reflects rates with the continuation of current funding ($1.5 million) from the City budget. Scenario 2 represents a stand-alone program without the current funding from City budget. Assumptions include: • Staging over a 5-year period to allow adequate time for the City to implement an enhanced program SECTION 4 — FINANCIAL PLANNING AND RATE ANALYSIS Table 4-4. Proposed Tier Structure (Applies to All Properties) Tier Tier Range (SF) Property Count Billing Units 1 5 2,000 2,196 2,74S 2 >2,000 and 5 3,500 9,602 26,406 3 >3,500 and 5 5,000 6,491 27,587 4 >5,000 and <- 6,500 2,644 15,203 S >6,500 and <_ 8,000 1,093 7,924 6 >8,000 3,664 156,095 Total 25,690 235,960 • A reduction in CIP costs, reflecting an Early Action Plan of projects being funded by the 2019 Drainage Bond (http://www.fayetteville-ar.gov/3713/Drainage-Projects) • A baseline credit/rebate program to encourage BMPs that will modestly reduce potential revenue Assumptions do not yet include: • Reductions in revenue due to the potential for bad debt • Increases in revenue due to new/infill development As noted previously, Option A/B was added to characterize the financial impacts of the Option B EOS with the Option A "routine" frequency of maintenance and time frame for CIP. After additional Stakeholder feedback, the City chose to narrow the EOS/LOS options to those that could be realistically implemented by a reasonable rate structure (Options A/B and B). Table 4-5 presents the monthly Flood Management and Water Quality fee estimates for these two options by tier and scenario based on the assumptions stated previously. OCTOBER 2019 4-5 SECTION 4 - FINANCIAL PLANNING AND RATE ANALYSIS Table 4-S. Monthly Fee Estimates by Tier and Scenario Scenario 1: With Current Funding from City Budget Tier Range A/B Monthly Fee (Standard) B Monthly Fee (Proactive) Tier 1 (0 and 2,000) $1.60 $3.23 Tier 2 (2,000 and 3,500) $3.S2 $7.10 Tier 3 (3,500 and S,000) $5.44 $10.97 Tier 4 (5,000 and 6,500) $7.36 $14.84 Tier 5 (6,500 and 8,000) $9.28 $18.71 Tier 6 (over 8,000) $1.28/1000 SF $2.S8/1000 SF Scenario 2: Without Current Funding from City Budget Tier Range A/B Monthly Fee (Standard) B Monthly Fee (Proactive) Tier 1 (0 and 2,000) $2.31 $3.94 Tier 2 (2,000 and 3,500) $5.09 $8.66 Tier 3 (3,500 and 5,000) $7.86 $13.39 Tier 4 (5,000 and 6,500) $10.64 $18.11 Tier 5 (6,500 and 8,000) $13.41 $22.84 Tier 6 (over 8,000) $1.85/1000 SF $3.15/1000 SF Note: If there is an onsite stormwater management facility, there could be a reduced fee based on a sustainable credit program established by the City. 4.4 Recommended Fee Option The City is considering proceeding with the implementation of a stand- alone Flood Management and Water Quality Fee Program (that is, Scenario 2) with the Option A/B rates. A stand-alone program for future services was selected that discontinues current funding and is instead administered from an enterprise fund sourced from a Flood Management and Water Quality fee and the intermittent issuance of revenue bonds. Option A/B was selected because it would provide the funding needed for an equitable, sustainable drainage program while also addressing the ongoing challenges many homeowner associations in the City have with operating and maintaining their detention ponds. Further, more than half of those responding to Survey #2 as of August 2019 found the Option A/B rates to be reasonable. The selected rate option would be staged/ramped up over a 5-year period (Table 4-6), to the monthly rates in Year 5, illustrated on Figure 4-2. Table 4-6. Staging of Recommended Fee Structure under Scenario 2 ($/1,000 SF/month) Year 1 Year 2 Year 3 Year 4 Year 5 Option A/B $0.74 $0.93 $1.14 $1.35 $1.85 4 6 OCTOBER 2019 SECTION 4 — FINANCIAL PLANNING AND RATE ANALYSIS Figure 4-2. Recommended Monthly Flood Management and Water Quality Fee Structure in Year 5 © Year 5 Fee (without Credits) $35 $30 — Tier 1(>0 and <= 2,000) $2.31 $25 Tier 2 (>2,000 and <= 3,500) $5.09 v Tier 3 (>3,500 and <= 5,000) $7.86 1A � $20 Tier 4 (>5,000 and <= 6,500) $10.64 p`etUa1 }, Tier 5 (>6,500 and <= 8,000) $13.41 b: o $15 Tier 5 Tier 4 $10 Tier 3 Tier 2 $5 Tier 1 4. . . _ :, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o Ln o rn o Ln o rn o Ln o Ln o Lri o Ln o Ln o r 4 i-4 tV N M M �' � Ln Ln tD LD n n 00 00 M Q1 0 r_1 Impervious Area (sq. ft.) Note: Base rate of $1.8S/1,000 SF/month 4.4.1 Flood Protection and Water Quality Fee Examples This would result in an $5.09 monthly fee for a 1,500-SF home (Table 4-7 and Figure 4-3) with a two -car garage, a $67 monthly fee for a typical fast food restaurant and a $250 monthly fee for a 75-unit apartment complex (Table 4-8). Table 4-7. Monthly Residential Fee Examples by Tier in Year 5 Tier Range Option A/B Monthly Fee Example Residential Property Tier 1 (0 and 2,000) $2.31 1,000 SF home, no garage or carport Tier 2 (2,000 and 3,500) $5.09 1500 SF home, attached two -car garage Tier 3 (3,500 and 5,000) $7.86 2,500 SF home, attached three -car garage Tier 4 (5,000 and 6,500) $10.64 3,S00 SF home, attached three -car garage Tier S (6,500 and 8,000) $13.41 4500 SF home, attached three -car garage Tier 6 (over 8,000) $1.85/1000 SF Based on actual IA Note: If there is an onsite stormwater management facility, there could be a reduced fee based on a sustainable credit program established by the City. OCIOBER 2019 4-7 SECTION 4 — FINANCIAL PLANNING AND RATE ANALYSIS Table 4-8. Fee Examples for Other Property Types Impervious Area (SF) Option A/B: Monthly Stand-alone Fast Fooda 36,000 $67 Big Box Retailer/Commercial Center 300,000-750,000 $555-$1,388 Apartment (76 units) 135,000 $2S0 Apartment with Clubhouse (306 units) 413,820 $766 Industrial/Manufacturing 780,000 $1,443 Industrial/Manufacturing 665,000 (floor area), 1,100,000 (total) $2,035 Note: If there is an onsite stormwater management facility, there could be a reduced fee based on a sustainable credit program established by the City. a. The average IA for the more than 2,900 commercial properties in the City is 33,360 SF. 4-8 OCTOBER 2019 SECTION 5 Stormwater Credit and Incentive Programs A stormwater credit is an ongoing, renewable reduction in the fee charged to a property for its contribution (measured via its amount of IA) of runoff to the stormwater system; all properties subject to the Flood Management and Water Quality fee would be eligible to apply. Credits would be offered for existing practices or facilities that reduce the water quality and quantity burden imposed on the City drainage system by runoff from a property. Other incentive programs such as a stormwater rebate program (for private investments to mitigate drainage from existing developments) and in lieu of fee program (for small development sites or areas where a regional solution is practical) would also be considered during implementation. 5.1 Stormwater Credits Basic credit programs typically mimic the requirements of a community's DCM (Figure 5-1), which helps support the City's compliance with its MS4 permit. To the extent that property owners mitigate the effects of stormwater runoff before it is discharged to the City of Fayetteville MS4 system (essentially pretreating their stormwater runoff), the burden placed on the City's system is somewhat less than if no such mitigation were in place. Therefore, the Flood Management and Water Quality fees for properties having certain stormwater management facilities or for owners performing approved stormwater educational activities will be reduced to recognize the public benefits of privately owned and managed facilities. It is recommended that full credits not be offered for undeveloped property or those treating 100% of stormwater onsite because all property owners benefit from the following City services: • Maintaining the public ROWS including, but not limited to, storm drain cleaning and street sweeping. • Maintaining regional Stormwater infrastructure that serves multiple property owners • Inspection of public and private stormwater facilities to ensure operating as designed Additional credits can be offered for green infrastructure practices, public education, and other activities important to a community. Credits are typically calculated based on the amount of IA and/or the volume of water managed onsite. For example, a property could earn a 40% credit for demonstrating that it meets all four sizing criteria illustrated in Figure 5-1, or a 10% credit for meeting each one individually. OCTOBER2019 SECTION S - STORMWATER CREDIT AND INCENTIVE PROGRAMS Key characteristics of a sustainable credit program would include: • Customizing it to Fayetteville's unique mix of customers • Providing the opportunity to meaningfully mitigate a customer's fees • Keep it administratively simple • Establishing a cap on the credit offered to ensure adequate revenue A sustainable credit system will be developed with additional Stakeholder engagement on eligibility and technical guidelines; application, inspection, and verification procedures; and duration between renewals as part of implementation. It would be offered to customers based on the sizing criteria found in the City's DCM, with additional credits possibly offered for green infrastructure practices and public education. 5.2 Other Incentive Programs The City is also considering other inventive programs to encourage long-term, sustainable solutions both during and after construction, such as: Stormwater rebates could be offered to eligible property owners that are willing to retrofit existing or install new stormwater treatment facilities. Rebates would provide them with a mechanism to recoup some of the costs of installing approved DCM facilities up to the amount of the actual fee for a set period of time. A stormwater "in lieu of fee program could be offered, wherein an owner or developer may contribute via a fee to the construction of a regional or sub -regional detention site in lieu of constructing onsite detention. For example, Hot Springs offers an in -lieu fee program where the fee is calculated based on $10,000 per acre-foot of stormwater storage. However, no in -lieu contributions are allowed when existing flooding occurs downstream from the development, or if the development will cause downstream flooding. 5-2 OCTOBER 2019 SECTION 6 Policy and Legislative Considerations This section provides an overview of the City's existing stormwater management regulations, key legal considerations for development of a Flood Management and Water Quality fee program, Arkansas' authorizing legislation for stormwater utilities, and potential legislative steps, should the City decide to proceed with implementation. 6.1 Existing stormwater Management Regulations Fayetteville is home to many streams and water bodies and is near the upstream end of two main watersheds, the Beaver Lake Watershed and the Illinois River Watershed. As a result, the City has a long history of implementing regulations that manage the volume and quality of stormwater. These efforts have included the adoption of a LID ordinance in 2010, a streamside protection ordinance in 2011, and a DCM in 2014 (Fayetteville, 2014). The DCM summarizes the regulations governing development and stormwater management, which include: • Chapter 161—Zoning Regulations • Chapter 166 — Development • Chapter 167—Tree Preservation & Protection • Chapter 168 — Flood Damage Prevention Code • Chapter 169 — Physical Alteration of Land • Chapter 170—Stormwater Management, Drainage, & Erosion • Chapter 171—Streets and Sidewalks • Chapter 172 — Parking & Loading • Chapter 173 — Building Regulations • Chapter 177 — Landscape Regulations • Chapter 179 — Low Impact Development • City Plan 2030 • City of Fayetteville Drainage Criteria Manual, Appendix H Exhibits • City of Fayetteville Landscape Manual • City of Fayetteville Streamside Protection BMP Manual City of Fayetteville Minimum Street Standards • City of Fayetteville Water and Sewer Specifications OCTOBER 2019 6-1 SECTION 6 - POLICY AND LEGISLATIVE CONSIDERATIONS 6.2 Policy Considerations To be equitable and legal, a fee for service program should be structured to reflect the following policy and rate -setting considerations: • The overall cost of the program must be reasonably related to the services being provided. • The funds raised must be segregated for use by the stormwater program. • The fee should be proportional to the property's contribution to stormwater runoff. • Participation in the program should allow appropriate exemptions and credits (NAFSWA, 2006). Development of this Funding Study was guided by establishing a "rational nexus" between the drainage services provided by the City and how they are funded. Selection of IA as the basis for funding these services was considered key to creating a legally defensible and equitable user fee program. These fees are based on the "polluter pays" principle and therefore the size of the fee charged must be related to the burden a property places on the City's stormwater system. Unlike a tax, it is also important that all properties with impervious surfaces pay, there should be no exemptions, only credits for reducing a property's burden on the stormwater system. As a result, important City Stakeholders such as the University of Arkansas, who have historically not paid impact fees for police and fire, will still be expected to contribute to the Flood Protection and Water Quality fee program. The question of whether sovereign immunity is applicable when stormwater fees are billed to federal and State properties typically hinges on the question of whether the CWA waives sovereign immunity about imposition of fees on these properties (SESWA, 2017). Although there are still challenges, an amendment to the CWA passed in January 2011, 33 United States Code § 1323(a), clarified that there is a federal responsibility for municipal stormwater charges. Additionally, many communities around the country have successfully billed and collected stormwater utility fees from Table 6-1. Surveyed Status of Billing and Collecting Stormwater Fees trom Government Entities Government Entity Exempt Bill and Collect Bill But Do Not Collect Not Billed Federal 4 63 8 2 • of Total 5% 82% 10% 3% State 6 59 10 4 • of Total 8% 75% 13% 5% County 2 74 4 2 • of Total 2% 90% 5% 2% City 3 76 7 2 • of Total 3% 86% 8% 2% School District 6 66 3 0 % of Total 8% 88% 4% 0% Special District 1 45 0 3 % of Total 2% 92% 0% 6% State, federal, and local government source: SESWA, 2017 properties, including school districts. In practice, the 2017 SESWA survey found that 82% of 77 communities responding to this question on the survey billed and collected from these public entities (Table 6-1). As a result, it is recommended that that no exemptions be provided and that the City instead integrate these entities in to a credit program, where possible. Similar to other utilities, it is important that revenue from stormwater fees be accounted for separately via an enterprise fund, instead of being added to the existing Street or General Funds. This helps ensure that these funds are only used for their intended purpose (that is, to provide stormwater services). 6-2 OCTOBER 2019 SECTION 6 — POLICY AND LEGISLATIVE CONSIDERATIONS 6.3 Legislative Implementation Steps Because each local and State government is unique, there are multiple legislative routes that can be taken to establish a stormwater fee program once a community has assessed the feasibility of developing a fee program and decided to move forward. Further, some utilities will develop a guidebook or other document (that is, cross-referenced in the legislation) detailing the step -wise processes used for administration of the fee program. This allows the enabling legislation to be more succinct while allowing the local government to make minor program adjustments without revisiting the original ordinance. As illustrated by the legislative examples provided in Appendix B, local governments have successfully adopted fee programs without some of the following key legal requirements. However, it is recommended that the City's ordinance(s) include these key elements at a minimum: • Establish a separate Enterprise Fund • Establish the City's Administrator for the Stormwater Program • Identify the scope of stormwater services (what will be funded) • Establish a Flood Protection and Water Quality fee • Note exemptions (limited) • Provide a mechanism for appeals • Provide a Credit Program 6.4 Arkansas Authorizing Legislation and Fee Programs At the State level, stormwater management, including the creation and operation of a stormwater utility, is authorized by the definition of the term "works" in Arkansas Code § 14-235-201. This statute provides for: 1. The structures and property as provided in Arkansas Code § 14-235-203 2. Stormwater management 3. The creation and operation of a stormwater utility 4. The creation and operation of a stormwater department 5. Other like organizational structures related to the disposal or treatment of stormwater by municipalities 3 3 2017 Arkansas Code, Title 14 - Local Government, Subtitle 14 - Solid Waste Disposal, Waterworks, And Sewers Generally, Chapter 23S - Municipal Sewage Systems, Subchapter 2 - Operation of Systems by Municipalities, § 14-235-201 - Definition. OCTOBER 2019 6-3 SECTION 6 - POLICY AND LEGISLATIVE CONSIDERATIONS To date, two Arkansas communities have adopted stormwater fees: 1. Hot Springs, Arkansas: Flat rate for residential and tiered rate for nonresidential based on the square footage of impervious surface (Ord. No. 6153, '1, 6-7-2016), as described in Table 6-2: Table 6-2. Stormwater Fee Rates for Hot Springs, Arkansas Cost Per Month Current June 2016 Jan. 2017 Jan. 2018 Jan. 2019 Jan. 2020 Residential $3.00 $4.00 $4.00 $4.00 $4.25 $4.2S Commercial 0-9,999 $6.00 $8.00 $10.00 $12.00 $12.00 $12.00 10,000-49,999 $6.00 $10.00 $12.00 $21.60 $28.80 $36.00 50,000-99,999 $6.00 $12.00 $30.00 $54.00 $72.00 $90.00 100,000-249,999 $6.00 $28.00 $70.00 $126.00 $168.00 $210.00 250,000-Above $6.00 $60.00 $150.00 $270.00 $360.00 $450.00 2. Bryant, Arkansas: Monthly flat fee of $3 for residential utility account holders and $6 for commercial and industrial accounts (Ord. No. 2016-3, § 1, 2-23-2016). b-4 OCTOBER 2019 SECTION 7 Next Steps Towards Implementation This section summarizes the additional activities that need to occur prior to a Flood Management and Water Quality fee being billed by the City. It is estimated that 1 to 2 years would be needed to complete these activities, with the bulk of the level of effort associated with developing a customer billing database that is compatible with the existing utility or the County property tax systems. The next steps towards implementation are detailed in Table 7-1. Table 7-1. Next Steps Towards Implementation Program Element Next Steps Stakeholder Engagement and 0 Additional Stakeholder involvement and education with a particular focus on the Education owners of rental property and key Stakeholders. • Educate Stakeholders on the findings of this Funding Study and the timeline for implementation • Engage Stakeholders on the development of a sustainable credit program. • Establish Intergovernmental Agreements with key Stakeholders. Stormwater Program Definition . Refine future program costs based on selected LOS/EOS options using updated stormwater system condition and needs. • Finalize preferred EOS option and publish it via legislation or other mechanism to ensure Stakeholders understand public versus private drainage responsibilities. Customer Billing Database Refine preliminary customer billing database to confirm impervious area by parcel,, property identification number, ownership, mailing address and existing utility account number, if applicable. • Establish method of billing property owners either within the existing utility billing system or on the County property tax bill. • Establish procedures for billing rental and multi -family properties as well as properties that do not have a utility account currently. • Establish procedures for adding new customers and capturing new impervious area as property is developed or redeveloped. Policy and Ordinance . Pass a resolution to accept the Funding Study, establish a new enterprise fund, the basis Development of fee and definition of the rate structure. • Pass ordinance with the final rate structure and fees, credit and appeal programs and other administrative requirements. • Develop process and procedures for obtaining public drainage easements in an iterative fashion for those portions of Fayetteville that developed prior to them being required. Stormwater Credit and Engage Stakeholders on the development of a sustainable credit program. Incentive Programs • Determine whether the City wants to pursue other incentives such as rebates and in lieu of fee programs. • Develop policies for eligibility and technical guidelines; application, inspection and verification procedures; and duration between renewal. Appeals and Administration Develop a robust customer service program that addresses appeals and ongoing administration of the fee program. • Proactively establish a process that allows customers to request a review of their fee should they think it was calculated incorrectly. OCTOBER 2019 7-1 SECTION 8 References InVeritas. 2017. Fayetteville Vision 2050: Strategic Planning Final Report. March. City of Fayetteville, Arkansas (Fayetteville). 2010. Stormwater Utility Fee Feasibility Study. City of Fayetteville, Arkansas (Fayetteville). 2014. Drainage Criteria Manual. July. City of Fayetteville, Arkansas (Fayetteville). 2018a. 2018 Drainage Improvement Plan. City of Fayetteville, Arkansas (Fayetteville). 2018b. 2019 Annual Budget and Work Program. November 20. https://www.favetteville-ar.gov/ArchiveCenter/ViewFile/Item/1991. Geosyntec. 2009. Nutrient Reduction Plan. April. National Association of Flood and Stormwater Management Agencies (NAFSMA). 2006. Guidance for Municipal Stormwater Funding. Prepared under a grant provided by the U.S. Environmental Protection Agency. January. Southeast Stormwater Water Association (SESWA). 2017. 2017Southeast Stormwater Utility Report. Prepared by CDM Smith, Dewberry. OCTOBER 2019 8-1 Appendix A Stakeholder Information APPENDIX A Stakeholder Information Table A.1. Funding Study Meetings and Topics Date Topics Full Council June 25, 2018 • Chartering • Study and Schedule Overview • Review Relevant Goals • Constituent Concerns Roundtable • Review Draft Stakeholder Engagement Strategy Special Council Committee July 31, 2018 • Chartering • Study and Schedule Overview • Review Relevant Goals . Constituent Concerns Roundtable with Ward Map • Review Draft Stakeholder Engagement Plan August 28, 2018 . Review Current Stormwater System, Regulatory Requirements and Costs • Stormwater Extent of Service Options . Stormwater Level of Service Options • Committee Feedback and Next Steps April 9, 2019 . Speak Up Fayetteville Results to Date • Program Costs and EOS/LOS Options Refresher • Review Draft Fee Estimates by Program Option . Policy Primer on Credit/Rebate Program Options Next Steps July 30, 2019 • Final Extent of Service and Level of Service Option Refresher • Review Final Fee Estimates by Program Option and Scenario • Speak Up Fayetteville Survey #2 Results to Date • Staff Recommendations for Council Committee Consideration • Next Steps Staff Technical Advisory Committee (STAC) June 25, 2018 Chartering • Study and Schedule Overview • Review Relevant Goals • Review Draft Stakeholder Engagement Plan • STAC Homework Assignment for Stormwater Needs Analysis Meeting, OCTOBER 2019 A-1 APPENDIX A —STAKEHOLDER INFORMATION Table A.1. Funding Study Meetings and Topics Date Topics August 1, 2018 . Review Baseline Stormwater Program Elements and Costs • Review Chartering Feedback and Completed Homework Assignments • Review Preliminary Extent and Level of Service Options • Stormwater Needs Prioritization Exercise December 10, 2018 Study Update • Review Final Extent and Level of Service Options • Review Corresponding Future Program Costs • Next Steps Public September 30, 2018 . Study Purpose . What is the City's Role? . What are the funding needs? . What are the proposed solutions? . Speak Up Fayetteville! November 29, 2018 Study Background Beaver Water District Speaker . 2017 Flooding Series . Review Current Stormwater System, Regulatory Requirements and Costs . Stormwater Extent of Service Options . Stormwater Level of Service Options . Proposed Solutions/Funding Options December 12, 2018 . Study Background AWWWEA NW District Meeting . 2017 Flooding . Review Current Stormwater System, Regulatory Requirements and Costs . Stormwater Extent of Service Options . Stormwater Level of Service Options . Proposed Solutions/Funding Options January 17, 2019 Study Update . Review Final Extent and Level of Service Options and Corresponding Future Program Costs . Review of National and Regional Average Stormwater Fees AWWWEA NW = Arkansas Water Works and Water Environment Association, Northwest District EOS = extent of service LOS = level of service A-2 OCTOBER 2019 APPENDIX A— STAKEHOLDER INFORMATION Figure A-1. Speak Up Fayetteville Factsheet City of Fayetteville Stormwater Study: Wff Flood Management & Water Quality Funding Stormwater runoff is generated from rain and snowmelt events that flow over land or impervious surfaces, such as paved streets, parking lots, and rooftops, and does not soak into the ground. The runoff picks up pollutants like trash, chemicals, oils, and dirt/sediment that can harm our rivers, streams, and lakes. —US Environmental protection Agency Why Is the City Concerned about Stormwater? Flood Service Requests, April 2017 Fayetteville faces a growing backlogof drainage and stormwater manage- ment issues that can cause flooding of streets, structures, and the property of those who live here. Although customers can tell us where the worst issues are, the City does not currently have the financial resources or legal access to fix them all. Recent storms have generated hundreds of service requests for the City, on top of stormwater management activities and water quality projects that are mandated, but not funded, by the Clean Water Act. The City is responsible for operating and maintaining the public portion of Fayetteville's municipal storrnwater system. For example, approximately 65 percent of its roads and rights of way, 57 percent of the drainage pipes, and 43 percent of its outfalls are public. I our city's growing population, we gnize that there is an increasing need entity sustainable options for funding nwater management. 4 a What are the Funding Needs? The City currently spends approximately $1.3 million annually on Stormwater activities. This includes compliance with the Arkansas Department of Environmental Quality Stormwater permit requirements, maintenance and repair of the public drainage system, as well as water quality and flood management activities. The City's 2018 Drainage improvement Plan estimates that more than $15 million is needed to protect public safety by addressing our most urgent backlog of stormwater maintenance and capital projects. More funds are needed to identify issues that have not yet been documented. Under current policy, it will take several years for the City to accrue enough funds to complete even one of these significant stormwater projects. What Is the Proposed Solution? The City is proposing to develop an `Early Action Plan' to address the most significant stormwater projects, to be presented to voters in early 2019 as part of a bond program. To determine the best way to fund the remaining needs going forward, the City is conducting this Study for Flood Management & Water Quality Funding to evaluate a range of options. What Will the Study Do? The purpose of the study is to present options for sustainable funding for stormwater management, to reduce flooding, and protect water quality. The study has three phases 1. Review the City's existing stormwater system and program. 2. Collect input from the City Council, staff, and City residents regarding the current state, and the necessary/desired future state of the City's stormwater programs. 3. Assess the advantages and disadvantages of various means of funding the program. including ongoing intermittent bond referendums, additional General Fund or Capital Improvement Program resources, and/or a dedicated stormwater fee. Up We Need Your Input! SID'EAK Input collected from stakeholders on both the program and funding options will be vital to the process in order for the City Council to make an informed decision early in 2019. To provide your FAYETTEV I LLE input. visit Speak Up Fayetteville, the City's civic engagement portal, and complete our public input survey: fayetteville-ar.gov/speakup. _911111 OCTOBER2019 A-3 APPENDIX A -STAKEHOLDER INFORMATION Table A-2. Common Acronyms and Terms Acronym Description Definition Arkansas Department of Government agency responsible for protecting human health and the ADEfl Environmental Quality natural environment in Arkansas. Permitting authority for stormwater drainaget1tips 1twww adert state ar ust Activates, practices, procedures,. and treatment processes utilities use to reduce or prevent pollutants from being released into streams, lakes, rivers, and oceans. Fayetteville -specific 8MPs can be found in: BMP Best Management Practices 1I /Av rE Draa w.fa),sltevd6r_r-ar.00vlS o - .ritef a �r� t�i htlDs'tlwww Batt.vile :-ar novt0 - rnn-nil nr-rNiewfl�+ it auras: Ptat ion Best -Mari merit Praci c #1L is PGF The CIP for the City of Fayetteville examines the infrastructure and capital C IP Capital lmpro ,emenl Plan needs of the City for the next five years. https Plan Capital Improvement Plan Projects and there cumulative component areas totaling $10,000 or more CiP Projects Protects should be included in the CIP. Projects costing less than $5,000 are not considered capital and are funded through program operating budgets. Federal Clean Water Act, i.e. Federal measure to regulate pollutant discharge into streams, rivers, lakes, CWA Federal Water Pollution Control and oceans of the United States, Act. 33 U.S.C. 1251 h: ten hwww epa.opvtlaws-terauiatrerrrsisummary-clean-water-act Cry docvmert that provides guidance on procedures and design to control DCM City of Fayetteville 2014 stomnwater. Drainage Criteria Manual httV1.1lwwrsur-tavetievrile-ar.00vr69BlOramacpe Crgena Manual EOS Extent of Service Defines where the City will work, i.e. drainage infrastructure for which the City will be responsible. FEMA Federal Emergency Management Federal entry that handles disaster response in case the event is too large Agency for state or local governments to effectively handle_ A= fema oov Map created by the Federal government that shows areas that are at higher FIRM Flood Insurance Rate Map risk of floodinq httpsilfwww tan.=attevdle-ar govI4021Ffzodolain-Management Study to evaluate sustainable funding options for the Crtys stormwater Study for Flood Management and program, including a review of the existing program and additions needed FS Water Quality Funding to satisfy future regulatory and customer service needs, hftps;Uw'ww fa'its-'tleyWe-ar.4oy+33i$iFlo d-ManaoeR\ent•Stuti Monitoring stormwater outfafts to detect illegal discharges including trash, IDDE Illicit Discharges Detection and yard waste, wastewater. oil, petroleum products, cleaning products, paint Elimination products, hazardous waste and sediment. htWs iwww.far"heviile-ar.cov1s+j1fRetnon-S}ormwater-r ;Aiuliion What stormwater services the City would provide and at what frequency, LOS Level of Service i.e. regulatory compliance, operations and maintenance, and capital improvement planning, etc. A conveyance (e.g, storm drains, channels, pipes,) or system of conveyances that is owned by the City of Fayetteville that discharges to MS4 Municipal ipa Separate Strum Sewer waters of the U.S. and is designed or used to collect or convey stormwater System runoff httm' IAi;*w eoi onoy pooes1st(Sm]w.lt..Cz€SLr' rrae5 ,mtrni[iL �t-': sf €.5 Phase I There are no Phase 1 Large MS4 permit hoiden in Arkansas, the City of Medium Medium municipal separate Little Rock and Arkansas DOT are the only Phase I Medium MS4 entities M54 storm sewer systems hkirrs:11v1•w^«v-ad?g slatear us.'water�txe�masrnpdeststormwater! Study for Flood Management and Water Quality Funding A-4 OCTOBER 2019 r_1aaanQM-1M1/_1a:11.1IQIQ4 9ki1130 iIJ_U[QLI Table A-2. Common Acronyms and Terms Acronym Description Definition Phase 11 Small municipal separate storm City of Fayetteville is a Phase 0 small MS4 community covered under Small PASS sewer systems ADEQ's GeneralPermit, # ARRO40000. A permit program that regulates water pollartion from distinct pipe, ditch, channel, tunnel, conduit, well, container, animal feeding operation, landfill, National Pollutant Discharge or floating vessel that discharges pollutants- The Clean Water Act prohibits "poll NPDES Elimination System anybody from discharging itants'through a'point source into a'water of the United States' unless they have an NPDES permit. The NPDES permit program addresses water pollution by regulating pant sources that discharge pollutants to waters of the United States. Pollution from a combination of dispersed sources resulting from rainfall or NPS Non -point Source Pollut on snowfall moving over and through the ground during which 4 picks up and tames away natural and human -made pollutants, finally depositing them into lakes, rivers, wetlands, coastal waters and ground waters. Streams that drain at least 100 acres as identified on the Streamside Protected Streams Protection Map available on: https:flwww fayefteviile- ar cov1121d; s re- ;msA,; Pro er tan Distinct pipe, ditch, channel, tunnel, conduit, well, contavier, animal feeding PS Pont Source Pollution operation, landfill, or floating vessel that discharges pollutants_ This term does not include agricultural story water nmff. Rain, once if lands on the ground, which can either evaporate, seep underground, or flow downhill into streams, rivers, takes, and oceans_ In the SW Stormwater natural environment, stormwater is soaked up by the sod and some plants, however in developed places with more asphalt, concrete, and roofs where the rainwater can't seep into the sal or be absorbed by plants, it can accumulate on top of the ground and cause flooding 4 not managed. The City of Fayetteville's plan to erasure compliance with their stormwater SWR1P City of Fayetteville 2015 Storm permit. Water Management Program https'dtwww #avettexillt�ar,t7lovtDsacumetti nterNie�vlt66 Stormwater- an-gemn t Plan POF>hidJrl= Streamside Protection Areas should be measured from the stream's top of bank as defined in: Streamside Protection Areas httDsxtwww favetteville-argoviDocumentCenteriyiew1155fii streamside- Proteotion-Rest -ManaGernent-Prmuces-Manual-PDF Document which Consolidates all development-retated activity including zDnng requirements, subdivision regulates, design and development UDC Unified Development Code standards, and review procedures within a local governments jurisdiction. hngsatiibrarwlmumcode of ordinances7nod eId=CD ORD TITKVUNDECO USAGE U S Army Corps of Engineers Federal governing entity over waters of the United States. WQ Water Quality Desired condition (chemical, physical, or biological) of a water body_ Standards of water quality are enacted to preserve environmental hearth. References: %vA rov �a." lema.gov, Fayetteville, AR DCM, 2014. university of Arkansas Extension. What is Water Qualify? I-' ,,,,,, N uae, d st aMcat;ons1DditFSA 4F2:8 pdf Bpi�1 Study for Flood Management and Water Quality Fundingal; OCTOBER 2019 A Legislative Examples APPENDIX B Legislative Examples The following ordinances were provided to the City of Fayetteville as legislative examples: 1. City of Bryant, AR — Rates in ordinance. Exemption for seniors only. No appeals or credits offered in ordinance. 2. City of Hot Springs, AR — Rates in ordinance. No appeals or credits offered in ordinance. 3. City of San Antonio, TX — Provided due to its central-U.S. location. This drainage utility example covers all legal considerations and is an example of tiered rates in ordinance. 4. City of Charlotte, INC — Provided as an example because it: establishes rates by a separate resolution, includes the precedence in which fees will be applied to a utility bill and establishes a Stormwater Advisory Committee within the ordinance. 5. City of Brookhaven, GA —This municipal example covers all legal considerations and is an example of rates established by Mayor and City Council outside of ordinance. 6. DeKalb County, GA —The ordinance for DeKalb County, Georgia is provided as an example of a single ordinance that establishes the enterprise fund and rate structures in one step. Like Hot Springs, this ordinance has withstood formal legal challenge since it was adopted in 2004. 7. Montgomery County, MD — Water Quality Protection charge with rates established by resolution. The ordinances for the cities of Bryant (2016) and Hot Springs (2008) are provided to demonstrate the legislation used for the two other stormwater fee programs in Arkansas. However, the consulting team recommends the following modifications to these two ordinances for the City of Fayetteville's purposes: Removal of the actual fee/rate schedule from the ordinance, see later examples from the City of Brookhaven, GA and Montgomery County, MD for how this can be referenced outside of the legislation. Exemptions should only be specified for public right of ways, no discharge properties and select other subsets. • Add essential sections for appeals and a credit system. OCTOBER 2019 B-1 JACOBS October 17, 2019 Chris Brown, PE City of Fayetteville, Arkansas Subject: Flood Management and Water Quality Funding Program Implementation Dear Mr. Brown: Jacobs is pleased to submit this amendment to our existing agreement for the purposes of assisting the City of Fayetteville, Arkansas with consistency revisions to its Unified Development Code (related to storm drainage and tree preservation), assessing the use of a mitigation / fee -in -lieu of program for small, infill developments, and furthering elements of the Flood Management and Water Quality Funding Study (prepared under Resolution 131-18, File Number 2018-0267). The code revisions and program assessment activities represented in this proposal reflect the City being responsive to Stakeholder feedback on the Funding Study. While many of these activities will be completed internally by City staff, the Jacobs Team would assist, as needed, over the next year. The proposal attached provides the following information: • Article A. Purpose and Scope of Services • Article B. Schedule and Fee • Article C. Terms and Conditions We appreciate the opportunity to provide a proposal for these services and look forward to working with you and your staff on this important project. If you have any questions, please do not hesitate to contact us. Sincerely, Heather H. Dyke, AICP Kaitlin Tymrak Enclosure 10/17/2019 SCOPE CHANGE AUTHORIZATION Project: Amendment 2 to the Stormwater Date Prepared Feasibility Study Contract October 21, 2019 Jacobs Project No.: 705896CH Date Revised: Client: City of Fayetteville, AR Client Project No.: Project Manager: Heather H. Dyke Change No.: 2 1. The attached proposal for changes in the scope of the work are hereby authorized: 2. As an amendment to our existing agreement, Resolution 131-18, File Number 2018-0267. 3. The effect of these changes in scope is as follows: a. Fee (1) Change Labor: $142,000 + Travel: $8,200 = $150,200 (2) New Total $383,282 b. Schedule December 2019 to December 2020, or 12 months from NTP. c. Construction (1) Cost N/A (2) Schedule N/A d.Other N/A 4. The reason for these changes in the scope of the work are as follows: For the purposes of assisting the City of Fayetteville, Arkansas with consistency revisions to its Unified Development Code (related to storm drainage and tree preservation), assessing the use of a mitigation / fee -in -lieu of program for small, infill developments, and furthering elements of the Flood Management and Water Quality Funding Study. 4. Project Manager's comments: N/A Approved by Client: Date: Agreed to by JEG: / Date: 10/18/2019 J �i/j ix'AM' Carlos Giron, PG Jacobs Vice President I BIAF City of Fayettevi I le, Arkansas Flood Management and Water Quality Funding Program Implementation Article A. Purpose and Scope of Services This scope of work would provide the City of Fayetteville, Arkansas with additional analysis of the Flood Management and Water Quality Funding Study findings (prepared under Resolution 131-18, File Number 2018-0267). The Jacobs Team has a unique awareness of why additional future funding is needed: • To further protect the public (safety), public roads, and private property from flooding, • For watershed improvements to continue protecting the quality of the Beaver Lake, the City's drinking water source • To proactively maintain current drainage systems while starting to retrofit and replace, as needed, aging infrastructure • To continue complying with increasing NPDES Phase II MS4 permit requirements • To encourage the use of green infrastructure and other sustainable development practices to help mitigate stormwater runoff and flooding. This additional analysis will use the preliminary customer billing database and rate model from the Funding Study to revisit the fee structure in response to Stakeholder feedback. It will also assist City staff with consistency revisions to its Unified Development Code, related to storm drainage and tree preservation, and assess the use of a mitigation / fee -in -lieu of program for small, infill developments. The Project Team would continue to be led by Heather Dyke, AICP with support from Mike Matichich, Rick Brownlow and other Jacobs staff already familiar with the Funding Study. The following definitions will be used throughout this document. Term Description JACOBS Local and remote JACOBS staff. CITY City of Fayetteville's management and, or technical staff. Funding Study Flood Management and Water Quality Funding Study 10/17/2019 PAGE 2 OF 10 Scope of Services Project Understanding Table 7-1 of the Flood Management and Water Quality Funding Study summarized the additional activities that need to occur prior to a fee being billed by the City. Further, the City has received additional, valuable Stakeholder feedback and suggestions since the Funding Study was completed that is driving additional analysis of the rate structure and policy options. While many of these activities will be completed internally by City staff, the Jacobs Team would assist City staff with the following tasks over the next year: Support additional Stakeholder Engagement and Education activities (Task 1) Finalize the Stormwater Program Definition (EOS / LOS), perform an alternative rate structure analysis based on "intensity of development", i.e. percent of impervious cover / gross area of property and then perform a final rate analysis (Task 2) As needed support of City staff in their efforts to select a billing method and to finalize a Stormwater Customer Billing Database (Task 3) Develop a Sustainable Stormwater Credit and Incentive Program (Task 4) Assess the Feasibility of a Mitigation / Fee In Lieu of (FILO) Program including a Framework, Fee Structure and "Cookbook" of Water Quality, Flood, and Tree mitigation measures (Task 5) Consistency revisions to the City's existing Unified Development Code and development of Ordinances and Intergovernmental Agreements for potential Implementation (Task 6) Cost effectively manage the Project over a 12-month time frame and document the results in a Program Summary Technical Memorandum (Task 7). Stakeholder Engagement and Education The Jacobs Team understands that Fayetteville's goal is to reach as many people as practical throughout the stakeholder engagement and education process. Our experience during the Funding Study gave us a unique perspective on the additional stakeholder education needed to ensure that property owners are aware the drivers for additional funding above and beyond the 2019 drainage bond. Task 1 will focus on raising awareness of these drivers, why additional future funding is needed as well as the availability of a sustainable credit program. Task 1 will support implementation of the Next Steps noted in the Funding Engage Stakeholders on the development of a sustainable credit program. Educate Stakeholders on the findings of this Funding Study and the timeline for implementation. Task 1.1 Stakeholder Engagement and Education Strategy The Jacobs Team will kick off this task by hosting a Stakeholder workshop with City staff, either in person or via conference call, to: Review lessons learned from the Funding Study Stakeholder activities, i.e. what worked well and what could be improved, as well as from the City's many other stakeholder efforts. Confirm internal and external stakeholder participants o Stakeholders (Internal) ■ Elected Officials (Mayor and Council) ■ Staff o Stakeholders (External) ■ General Public (neighborhood groups, homeowner's associations, civic groups) ■ Key Stakeholders (University of Arkansas, Fayetteville Public Schools, Top 20 Impervious Customers and Chamber of Commerce) ■ Targeted Stakeholders (Faith community, nonprofits, environmental groups, etc.) III. Confirm the City's preferred engagement and education methods, such as: o Meetings: ■ Special City Council Committee ■ Staff Technical Advisory Committee ■ Public Briefings (General Public) o SpeakUp Fayetteville tools: ■ One Stakeholder Survey ■ Frequently Asked Questions (Fee Basics and Credits and Incentives) o Traditional mailers IV. Identify appropriate technical content and materials V. Confirm general timing / schedule for implementing the Strategy. Based on the results of the Stakeholder workshop, Jacobs will develop a draft Stakeholder Engagement and Education Strategy for City staff review. After addressing one round of comments, Jacobs will finalize the Strategy for implementation. Task 1.2 General Meetings, Workshops and Briefings The Jacobs Team will support City staff in engaging internal and external stakeholders via a variety of in person meetings, workshops and briefings. Elected officials will be briefed either through the Special subcommittee established during the Funding Study or full Council presentations. This scope of work would cover 4 meetings over 2 trips by the Project Manager plus 1 additional staff member, as needed. Task 1.3 Stakeholder Materials The Team will work closely with Fayetteville's Communications and Marketing Department and the Media Services Division to support the implementation of a robust and innovative stakeholder engagement and education strategy that reflects the City's long history of reaching out to its citizens. Jacobs will develop the draft technical content of Stakeholder Materials while City staff will finalize the materials for posting and distribution. • Up to 4 PowerPoint presentations in support of Task 1.2 • SpeakUp Fayetteville materials: One Stakeholder Survey and one set of Frequently Asked Questions. 10/17/2019 PAGE 4 OF 10 Task 1 Deliverables — • Stakeholder Engagement Workshop • Draft and Final Stakeholder Engagement and Education Strategy • Meeting materials and 1— 2 team members for up to 4 Meetings, Workshops or Briefings (2 individual trips). • One Stakeholder Survey • One set of Frequently Asked Questions (Fee Basics, Credits and Incentives) Task 1 Assumptions — • The Jacobs Team will facilitate internal stakeholder meetings and workshops. • City staff will administer the SpeakUp Fayetteville website including the compilation and analysis of stakeholder survey data. • Staff with Fayetteville's Communications and Marketing Department and the Media Services Division will facilitate external meetings and support the internal implementation of the technical content provided by the Jacobs Team. • This task will be documented in the Program Summary TM as part of Task 7. Task 2. Final Stormwater Program Definition (EOS/LOS) and Rate Analysis Task 2 would finalize the City of Fayetteville's definition of its future Stormwater Program including Extent of Service (EOS) and Level of Service (LOS) as well as the associated costs based on additional stakeholder feedback. This will include a high-level path forward for capital improvement planning efforts that would serve as the basis for a more detailed master planning and prioritization effort of future drainage studies that would be developed separately. It will support implementation of the Next Steps noted in the Funding Study, including: • Refine future program costs based on selected LOS/EOS option using updated stormwater system condition and needs. • Finalize preferred EOS option and publish it via legislation or other mechanism to ensure Stakeholders understand public versus private drainage responsibilities. In response to Stakeholder suggestions, Task 2 will also develop and analyze an alternative rate structure based on a property's "intensity of development", as represented by percent of a parcel that is impervious instead of on tiers of total impervious area (IA). While not as common, using "intensity of development" as part of their rate calculations is not unprecedented. The cities of Bellevue and Seattle, Washington use IA billing units of 1,000-2,000 feet with a rate structure that is tiered by percent impervious. Starting with the preliminary stormwater customer billing database developed by the City's Geographic Information System (GIs) Department, Jacobs will perform a distribution analysis of the percent imperviousness (buildings, driveways, and similar) to assess its use as an equitable billing unit and what a tiered rate structure would be with its use. After the future Stormwater Program definition, costs and rate structure are agreed to, one additional rate analysis will be performed to confirm the fee schedule needed to support these services. The existing rate model developed as part of the Funding Study will be used to evaluate the rate and financial impacts of funding the final cost of service components. The rate analysis will be summarized as part of the Program Summary Technical Memorandum (TM) which would be developed as part of Task 7. 10/17/2019 PAGE 5 OF 10 Task 2 Deliverables — • Final Stormwater Program definition and cost of service estimate tabulated (over 5 years) for up to 6 program areas. • Alternative rate structure analysis that assesses a rate schedule that is tiered based on "intensity of development", i.e. percent of impervious cover / gross area of property. Stormwater pro forma financial spreadsheet model (financial / rate model) with a detailed 5-year cash flow analysis and planning level projections over a 20-year time frame. Task 2 Assumptions — EOS/LOS Option A/B, with minor modifications, will generally serve as the basis for the final Stormwater Program definition and cost of service estimates. The existing preliminary stormwater customer database will be used to generate an alternative rate structure that also integrates intensity of development. The existing financial spreadsheet model, with minor modifications, will serve as the starting point for the alternative rate structure analysis and one additional rate analysis will be performed. This task will be documented in the Program Summary TM as part of Task 7. Task 3. Stormwater Customer Billing Database Task 3 will provide support to the City of Fayetteville as it selects the most cost-effective stormwater billing mechanism and finalizes the corresponding preliminary billing database developed during the Funding Study. Should the City decide to proceed with a Fee Program, the City would self -perform the majority of Task 3, including the extensive CA/QC and database processing efforts needed to ensure the accuracy of the resulting bills and prevent excessive customer appeals. As part of Task 3, Jacobs will support City staff as they implement the Next Steps noted in the Funding Study, including: • Selection of a method of billing property owners (not tenants) either within the existing utility billing system, on the Washington County property tax bill or as a standalone bill. • Refine preliminary customer billing database to confirm impervious area by parcel, property identification number, ownership, mailing address and existing utility account number, if applicable. Task 3 Deliverables — As needed support for the City as it assesses and selects its preference billing method. Up to 3 conference calls with GIS Office staff to strategize and support development of a final stormwater billing database. Task 3 Assumptions The City will be responsible for selecting its preferred billing method with limited support by Jacobs staff. • This task will be documented in the Program Summary TM as part of Task 7. 10/17/2019 PAGE 6 OF 10 Task 4. Sustainable Stormwater Credit Program A stormwater credit is an ongoing, renewable reduction in the fee charged to a property for its contribution (measured via its amount of impervious surface) of runoff to the stormwater system; all properties subject to the stormwater fee are eligible to apply for a fee credit. As part of Task 4, Jacobs will support Fayetteville with determining the applicable range of credits available to customers and how they would be applied. A resulting credit and incentive framework will provide customers with the opportunity to receive reductions on their stormwater bills for specific measures or actions that reduce their stormwater runoff/contribution to Fayetteville's drainage system. A draft and final Sustainable Stormwater Credit and Incentive Framework will be developed for the purposes of interacting with the City's internal and external Stakeholders. Stakeholders will be engaged, as appropriate, to review the draft framework which would provide the "universe" of credit options encompassed by the City's Drainage Manual and Ordinances as well as innovative credits to raise stakeholder awareness and encourage innovative practices. The Jacobs team will also support the City as it decides whether it wants to pursue other incentives such as rebates; Stormwater rebates would provide eligible applicants the opportunity to recoup some of the costs of installing approved Stormwater Best Management Practices (BMPs) up to the amount of the actual fee for a set period. The Team will identify procedures for implementing the selected credit and rebate programs and application rules and processes for property owners to use in applying for credits and rebates. The framework will also: Assist in determination applicable credits for existing commercial and residential uses and how the credits will be applied, Assist in the determination of applicable credits for new development projects and how the credits will be applied, Identify how the City's credit and rebate programs will generally be administered, including the application documentation needed, enforcement, renewal and a credit appeals process. Task 4 Deliverables — Draft and Final Sustainable Stormwater Credit and Incentive Framework. Task S. Mitigation / Fee -In -lieu -of Program Assessment Task 5 will support the City in assessing the value of a mitigation measure / fee in lieu of program for small infill developments and how such a program would interact with implementation of a Flood Management and Water Quality Fee Program. Fayetteville's 2014 Design Criteria Manual requires mitigations measures such as (1) onsite storage, (2) offsite storage, or (3) offsite drainage system improvements if hydrologic and hydraulic studies reveal that a proposed development would cause increased frequency of flooding, increased depth of inundation of structures, or inundation of unprotected structures not previously subject to inundation. While the DCM does allow for cost sharing of offsite facilities with the City, it's limited budget typically makes it unable to contribute its share of the offsite costs which shifts the burden of these costs back to the developer. Additionally, the City's Unified Development Code (UDC) currently exempts non-SFR (single family residential) additions of 2,000 sf of impervious or less and individual SFR and duplexes (that are not part of a larger subdivision) from these DCM requirements. 10/17/2019 PAGE 7 OF 10 For those infill developments and redevelopments where these DCM requirements are not feasible, the City is interested in providing these with property owners with alternatives, either by selecting a mitigation measure from the Cookbook or paying a FILO. To date, in lieu of fees have mainly been used as part of the development process as an alternative to on -site detention. As such, they are typically a one-time fee used to construct larger, regional stormwater infrastructure versus an ongoing fee used to also fund operation and maintenance costs. For example, Hot Springs offers an in -lieu fee program where the fee is calculated based on $10,000 per acre-foot of stormwater storage. As part of Task 5, the Jacobs team will: A. Benchmark and summarize the use of mitigation measures and FILO incentives in other communities. Facilitate public input meetings. B. Develop a standard "Cookbook" of alternative water quality, flood, and tree mitigation measures for small infill developments to choose from, instead of requiring a site -specific drainage study. The City's Drainage Criteria Manual and Streamside Protection Best Management Practices Manual will serve as the basis for these Cookbook mitigation measures. C. Develop a framework for accepting either mitigation measures or payments in lieu of construction of onsite drainage BMPs. The framework would include policies on when mitigation measures / FILO payments are applicable and a potential fee structure. Task S Deliverables — Draft and Final Mitigation / Fee -In -lieu -of Program Assessment TM, including a Framework, Fee Structure and "Cookbook" of Water Quality, Flood, and Tree mitigation measures Task 6. Ordinances and Intergovernmental Agreements As part of Task 6, the Team will work closely with the City's legal staff to update select Chapters of the City's Unified Development Code, to develop a new ordinance establishing a stormwater enterprise fund and to develop Intergovernmental Agreements with key stakeholders. Task 6.1 Unified Development Code Revisions The City of Fayetteville's Unified Development Code exempts single family homes and duplexes from most stormwater management and tree preservation criteria required for other types of. This exemption has led to a development pattern that is inconsistent with the goals of City Plan 2040, especially Goal 1 (Making appropriate infill and revitalization our highest priority) and Goal 6 (Creating opportunities for attainable housing), by encouraging the development of relatively large (and expensive) single family homes and duplexes on small lots in many redeveloping areas of town, especially in and near downtown. These large structures with no associated storm drainage mitigation or tree preservation create negative impacts to adjacent property owners and to the stormwater system and larger neighborhood as a whole. In comparison, all other types of housing and non-residential development are required to fully meet all water quality, flood mitigation and tree preservation requirements in City code, regardless of the size or relative impact to the storm drainage system or tree canopy. 10/17/2019 PAGE 8 OF 10 The overall purpose of Task 6.1 is to normalize the storm drainage and tree preservation requirements for developments in Fayetteville and to establish consistent requirements based on the impact of each development, rather than land use or development type. The City anticipates that the effects of these changes will likely make requirements for single family homes and duplexes more stringent but may relax requirements for certain other types of development. To do so, the Jacobs team will: A. Review the following relevant UDC chapters: 1. Chapter 151 Definitions 2. Chapter 166 Development 3. Chapter 167 Tree Preservation and Protection 4. Chapter 168 Flood Damage Prevention Code 5. Chapter 169 Physical Alteration of Land 6. Chapter 170 Stormwater Management, Drainage, and Erosion Control 7. Chapter 172, Parking and Loading 8. Chapter 179, Low Impact Development 9. City Drainage Criteria Manual B. Facilitate public input meetings. A minimum of two public input meetings with a focus group and potentially affected stakeholders shall be conducted by the Jacob's team to identify issues and incorporate feedback into the code revisions. C. Redline the existing UDC chapters to refine development thresholds based on land disturbance and impervious surface, instead of building / land use type, based on input from City staff and stakeholder input. D. Attend public hearings. Jacobs team members will attend and present the findings of Tasks 5 and 6.1, including the UDC revisions, "Cookbook" of alterative mitigation measures and framework at one Planning Commission and one City Council meeting. Task 6.2 Enterprise Fund Ordinance and Intergovernmental Agreements Task 6.2 will provide for the development of a new enterprise fund ordinance will provide the basis of fee as well as policies for credits and appeals and establish / adopt a separate Implementation document by reference; the final rate structure and administrative details would be developed later in this Implementation document. Implementation of an enhanced stormwater management program would also require developing and defining specific policies and procedures to convey to key stakeholders exactly what is covered in the program, where Fayetteville provides services and what remains their responsibility. This will be particularly important with key Stakeholders such as the University of Arkansas, Washington County and the Fayetteville School System. Jacobs will develop up to 3 Intergovernmental Agreements, also known as Interlocal Agreementsl, that clearly delineate the extent and level of stormwater services provided by the City, the rights and responsibilities of each party as well as mutual obligations, compensation and miscellaneous terms. 1 Community and Economic Development, University of Arkansas Division of Agriculture. FSPPC110 on Interlocal Agreements. August 2015. littps://www.uaex.edu/pubIications/PDF/FSPPC11O.Pdf. 10/17/2019 PAGE 9 OF 10 Task 6 Deliverables: 1. Draft and Final redlined UDC chapters 2. Meeting materials and attendance at 2 public input meetings and 2 public meetings of the Planning Commission and City Council. 3. Draft Enterprise Fund Ordinance, if warranted. 4. Up to 3 Intergovernmental Agreements, if warranted. Task 6 Assumptions: City staff will provide guidance on the development thresholds, based on corresponding land disturbance and impervious surface percentages, it would like to see integrated in the UDC. Jacobs staff will review up to 10 existing chapters / sections of the UDC solely for the purposes of identifying opportunities to improve consistency among storm drainage and tree preservation requirements based on the impact of each development. Revisions for other purposes, such as updating text or consolidating sections will be handled separately by the City. Meeting materials and 1— 2 team members for up to 4 public meetings (requiring 2-3 individual trips). Task 7.Overall Project and Quality Management The objective of this task is to charter the project by defining the design team, management team, individual roles, personnel contact information, and project controls. This includes managing and coordinating project resources and responsiveness consistent with the schedule and budget. Task 7 will also develop a succinct Program Summary Technical Memorandum (TM) summarizing the status / results of: • Stakeholder Engagement and Education activities, • Final Stormwater Program Definition (EOS/LOS) and Rate Analysis, • Development of a Stormwater Customer Billing Database, • Development of a Sustainable Stormwater Credit Program If warranted, the Program Summary TM will also outline next steps towards Program Implementation and final versions of the other deliverables as attachments. Task Deliverables — 1. 12 monthly invoices and progress reports. 2. Monthly status calls, including an agenda, updated schedule, and action items. 3. Draft and Final Program Summary TM. 10/17/2019 PAGE 10 OF 10 Project Deliverables Task q Task Name Deliverables 1. Stakeholder Engagement Workshop 2. Draft and Final Stakeholder Engagement and Education Strategy Stakeholder Engagement and 3. Meeting materials and 1— 2 team members for up to 4 Meetings, 1 Education Workshops or Briefings (2 individual trips). 4. 1 Stakeholder Survey 5. 1 set of Frequently Asked Questions (Fee Basics, Credits and Incentives) 6. Final Stormwater Program definition and cost of service estimate tabulated (over 5 years) for up to 6 program areas. Final Stormwater Program 7. Alternative rate structure analysis that assesses a rate schedule that is 2 Definition (EOS/LOS) and Rate tiered based on "intensity of development", i.e. percent of impervious Analysis cover / gross area of property. 8. Stormwater pro forma financial spreadsheet model (financial / rate model) with a detailed 5-year cash flow analysis and planning level projections over a 20-year time frame. 9. As needed support for the City as it assesses and selects its preference Stormwater Customer Billing billing method. 3 Database 10. Up to 3 conference calls with GIS Office staff to strategize and support development of a final stormwater billing database. 4 Sustainable Stormwater Credit 11. Sustainable Stormwater Credit and Incentive Framework. Program Mitigation / Fee -In -lieu -of 12. Mitigation / Fee -In -lieu -of Program Assessment TM (Attachment to 5 Program Assessment Program Summary TM) including a Framework, Fee Structure and "Cookbook" of Water Quality, Flood, and Tree mitigation measures 13. Redlined UDC chapters 14. Meeting materials and attendance at 2 public input meetings and 2 6 Ordinances and public meetings of the Planning Commission and City Council (requiring Intergovernmental Agreements 2-3 individual trips). 15. Enterprise Fund Ordinance and up to 3 Intergovernmental Agreements, if warranted. 16. 12 monthly invoices and progress reports. 7 Overall Project and Quality 17. Monthly status calls, including an agenda, updated schedule, and action Management items. 18. Draft and Final Program Summary TM. Project Assumptions 1. A period of performance not to exceed 12 months. 2. Travel expenses for up to 5 individual trips in support of up to 8 total meetings are included. 3. It is assumed that all deliverables will consist of no more than 2 drafts and 1 final. 4. Unless specified, all deliverables will be provided in electronic format. 5. Key managers and staff from both CITY and FAY shall provide written review comments for deliverables via email within 10 working days. Otherwise, deliverables shall be considered acceptable as submitted. Comments will be addressed, and a final document issued. 10/17/2019 PAGE 11 OF 10 6. EOS/LOS Option A/B, with minor modifications, will generally serve as the basis for the final Stormwater Program definition and cost of service estimates. 7. The existing stormwater customer billing database and financial spreadsheet model, with minor modifications, will serve as the starting points for the alternative rate structure. After the City's preferred rate structure is selected, one additional rate analysis will be performed. Article B. Schedule and Fee JACOBS will commence work within 10 working days of receiving a written notice to proceed with the project. The schedule will be developed in consultation with City staff with activities anticipated to be complete within 12 months. The fee for the Scope of Services is calculated based on the hourly rates, and the estimated Level of Effort (LOE) for this Scope of Services is shown in Table 1. Compensation will be on a not -to -exceed basis, and the project compensation will not exceed a value of $150,200 without written authorization from the client. CITY will be provided with a monthly breakdown of hours spent along with a summary of activities performed. 10/17/2019 PAGE 12 OF 10 Table 1 - Estimated Level of Effort and Expenses Role Project Director Senior Consultant Consultant Project Mana er Stall Engineer Project Support Project Assistant Rate $ 225 S 175 $ 160 $ 140 $ 100 $ 90 $ 85 Hours by Employee 56 16 451 60 396 36 32 _ Cost by Employee $ 12,600 $ 2800 $ 72,160 $ 8,400 $ 39,6D0 S 3240 $ 2720 Hours Cost Task 1: Stakeholder Engagement and Education 178 S 23,580 16 0 80_ 0 24 0 -- $-- Labor 128 $ 19.480 16 _ 80 24 8 Expenses $ 4,100 Task. 2: Final Stormwater Program Definition and Rate Analysis 128 $ - 19,560 8 0 96. 0 24 0 0 Labor Program Definition / Costs 40 $ 4,960 16 24 Labor Alternative Rate Structure and 1 Rate Analysis 88 $ 14,600 8 80 Task 3: Stormwater Customer Billing Database Support 24 S 3,940 0 0 24 0 0 0 Labor 24 $ 3,840 24 Task 4: Sustainable Stormwater Credit Program 120 '" $ 14,740 4 0 40 0 is 0 Labor 120 S 14.740 4 40 K40 16 Task S: Mitigation fee-1n h--f Pro ram Feasibility Assessment 212 $ 27,780 20 16 48 0 0 0 labor - Senchmarking 76 56 S 10,260 $ 7,080 4 16 16 Labor- Cookbook of Mitigation Measures 8 8 40 Labor -FILO policy framework and fee structure 80 $ 10440 8 24 48 Task 6: Ordinance and Inter mernmental Agreements 226` - $ 32,160 4 0 ' 74 16 120 12 0 Labor - IGAs and Enterprise Fund Crdinance 68 s 8,740 4 24 Labor- UDC Review and Redlinin 158 $ 19,320 50 16 12 Expenses -- - s 4100 �- - Task 7: Project Management and SummaryReport 209 $ 28 D60 4. 0 89 u E40 8 24 PM (12 months) 92 S 12040 24 44 24 Report120 S 16,500 8 Total 1050 s 150 City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 ENGINEERING (621) 2019 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of Amendment 2 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 and to approve a budget adjustment. $100,000 from Other Drainage Improvements (Cedarwood/Glennwood) & $50,200 from the Stormwater Quality Management project. COUNCIL DATE: 1 1 /5/201 9 LEGISTAR FILE ID#: 2019-0596 ff a y 3lack 1012112019 11:31 AM Budget Director Date TYPE: JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED: TOTAL - - v.20190816 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 4470.621.8810-5314.00 150,200 17008 1 EX Professional Services 4470.621.8810-5817.00 (100,000) 02108 1807.40 EX Improvements - Bridge & Drainage 4470.621.8810-5817.00 (50,200) 02097 1 EX Improvements - Bridge & Drainage H:\Budget Adjustments\2019_Budget\City Council\ 1 1-05-2019\2019-0596 Jacobs contract amend 1 of 1 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 157-22 File Number: 2022-0549 STORMWATER AND FLOOD MANAGEMENT WATER QUALITY PROJECTS: A RESOLUTION OF INTENT TO ESTABLISH A STORMWATER UTILITY FOR THE PURPOSES OF FUNDING NEEDED STORMWATER AND FLOOD MANAGEMENT WATER QUALITY PROJECTS THROUGH A MONTHLY STORMWATER FEE TO BE PAID BY MOST PROPERTY OWNERS IN FAYETTEVILLE, TO REQUEST CITY STAFF TO CONTINUE WITH ANALYSIS AND SUPPORTING ACTIVITIES, AND TO APPROVE THE ATTACHED $199,660.00 BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville experienced major floods in 2008, 2011, 2015 and 2017, each of increasing frequency and magnitude; and WHEREAS, additional funds are needed for measures to protect the long -teen resiliency of the City's infrastructure and its ability to protect public safety and access to public roads, as well as increase flood mitigation measures for the protection of private property; and WHEREAS, the City became a regulated small Municipal Separate Storm Sewer System (MS4) community under the State of Arkansas' General Permit (ARR040000) in 2003 with no corresponding federal or state funding for its mandated MS4 Stormwater Management Program; and WHEREAS, the Minimum Control Measures that the City is required to implement, track and report as part of its MS4 Stormwater Management Program have increased with each 5-year permit renewal cycle since 2003 and will likely increase again soon to reflect our substantially increasing population; and WHEREAS, the City's MS4 assets and responsibilities continue to increase with new development built in Fayetteville while additional routine maintenance, repair and replacement Page 1 Printed on 716122 Resolution: 157-22 File Number- 2022-0549 of the City's existing MS4 required infrastructure becomes necessary as these assets age; and WHEREAS, the City will likely meet the population threshold of 100,000 by the 2030 Decennial Census for Arkansas to become a medium MS4 community, triggering additional mandated activities and infrastructure; and WHEREAS, the City's current funding sources, including Street Fund, General Fund, Sales Tax Capital Improvements Fund, and the intermittent issuance of revenue bonds, are no longer adequate to provide and sustain these stormwater, flood management and water quality services; and WHEREAS, the 2019 Flood Management and Water Quality Funding Study identified a Stormwater Utility Fee to help pay for these services based upon the impervious area of houses, buildings, driveways, etc. as the most equitable mechanism for funding these increasing needs when paired with the Sustainable Credit Program available to all customers. 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 expresses its intention to adopt a Stormwater Utility and Stormwater Utility Fee upon satisfactory completion of the following tasks which are necessary for a complete Stormwater Utility Ordinance: a. Development of an accurate billing database with the attributes needed to facilitate billing. b. Completion of a final validation of the original financial model using updated program costs and the Customer Billing Database and develop final billing rates to complete. c. Development, Expansion and Finalization of the Sustainable Credit Framework, to include eligibility, application requirements, inspection and verification procedures and duration between renewal. d. Negotiate, if possible, Interlocal Cooperation Agreements with other public property owners in the City, such as the University of Arkansas and Washington County. e. Develop and implement stakeholder engagement and education materials and strategies including an interactive map that will allow property owners to see information specific to their property, including impervious areas and potential rates and monthly billing amounts. f. Review and consider municipal exemptions for rights of way, parking lots and other City properties. g. Development of a robust customer service program with processes allowing customers to request an audit/map supporting their fee amount, to answer questions, and to facilitate appeals of fee amounts and credits. Page 2 Printed on 716122 Resolution: 157-22 File Number: 2022-0549 Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Contract Amendment No. 3 with Jacobs in the amount of $199,660.00 for additional services necessary to complete the tasks in section 1. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment. PASSED and APPROVED on 7/5/2022 Attest: %011iit1tfyl G~EDIT Y •FAY ". �F-Vft Kara Paxton, City Clerk Treasurerw I.If/ 44 N l�s` va Page 3 Printed on 716122 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0549 Agenda Date: 7/5/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: D.1 STORMWATER AND FLOOD MANAGEMENT WATER QUALITY PROJECTS: A RESOLUTION OF INTENT TO ESTABLISH A STORMWATER UTILITY FOR THE PURPOSES OF FUNDING NEEDED STORMWATER AND FLOOD MANAGEMENT WATER QUALITY PROJECTS THROUGH A MONTHLY STORMWATER FEE TO BE PAID BY MOST PROPERTY OWNERS IN FAYETTEVILLE, TO REQUEST CITY STAFF TO CONTINUE WITH ANALYSIS AND SUPPORTING ACTIVITIES, AND TO APPROVE THE ATTACHED $199,660.00 BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville experienced major floods in 2008, 2011, 2015 and 2017, each of increasing frequency and magnitude; and WHEREAS, additional funds are needed for measures to protect the long-term resiliency of the City's infrastructure and its ability to protect public safety and access to public roads, as well as increase flood mitigation measures for the protection of private property; and WHEREAS, the City became a regulated small Municipal Separate Storm Sewer System (MS4) community under the State of Arkansas' General Permit (ARR040000) in 2003 with no corresponding federal or state funding for its mandated MS4 Stormwater Management Program; and WHEREAS, the Minimum Control Measures that the City is required to implement, track and report as part of its MS4 Stormwater Management Program have increased with each 5-year permit renewal cycle since 2003 and will likely increase again soon to reflect our substantially increasing population; and WHEREAS, the City's MS4 assets and responsibilities continue to increase with new development built in Fayetteville while additional routine maintenance, repair and replacement of the City's existing MS4 required infrastructure becomes necessary as these assets age; and WHEREAS, the City will likely meet the population threshold of 100,000 by the 2030 Decennial Census for Arkansas to become a medium MS4 community, triggering additional mandated activities and infrastructure; and WHEREAS, the City's current funding sources, including Street Fund, General Fund, Sales Tax Capital City of Fayetteville, Arkansas Page 1 Printed on 71612022 File Number: 2022-0549 Improvements Fund, and the intermittent issuance of revenue bonds, are no longer adequate to provide and sustain these stormwater, flood management and water quality services; and WHEREAS, the 2019 Flood Management and Water Quality Funding Study identified a Stormwater Utility Fee to help pay for these services based upon the impervious area of houses, buildings, driveways, etc. as the most equitable mechanism for funding these increasing needs when paired with the Sustainable Credit Program available to all customers. 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 expresses its intention to adopt a Stormwater Utility and Stormwater Utility Fee upon satisfactory completion of the following tasks which are necessary for a complete Stormwater Utility Ordinance: a. Development of an accurate billing database with the attributes needed to facilitate billing. b. Completion of a final validation of the original financial model using updated program costs and the Customer Billing Database and develop final billing rates to complete. c. Development, Expansion and Finalization of the Sustainable Credit Framework, to include eligibility, application requirements, inspection and verification procedures and duration between renewal. d. Negotiate, if possible, Interlocal Cooperation Agreements with other public property owners in the City, such as the University of Arkansas and Washington County. e. Develop and implement stakeholder engagement and education materials and strategies including an interactive map that will allow property owners to see information specific to their property, including impervious areas and potential rates and monthly billing amounts. f. Review and consider municipal exemptions for rights of way, parking lots and other City properties. g. Development of a robust customer service program with processes allowing customers to request an audit/map supporting their fee amount, to answer questions, and to facilitate appeals of fee amounts and credits. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Contract Amendment No. 3 with Jacobs in the amount of $199,660.00 for additional services necessary to complete the tasks in section 1. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby approves the attached budget adjustment. City of Fayetteville, Arkansas Page 2 Printed on 71612022 Chris Brown Submitted By City of Fayetteville Staff Review Form 2022-0549 Legistar File ID 7/5/2022 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/14/2022 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Approval of a resolution of intent to establish a stormwater utility for the purposes of funding needed stormwater and flood management water quality projects through a monthly stormwater fee to be paid by most property owners in Fayetteville; and to request city staff to continue with analysis and supporting activities; and approval of Amendment 3 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $199,660 (total contract amount $582,942) are complete and to approve a budget adjustment. Budget Impact: 1010.090.6600-5314.00 General Fund Account Number Fund 17008.1 Stormwater Utility Feasiblity Study Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? Yes Purchase Order Number: 2018-498 Change Order Number: Original Contract Number: Comments: 2 2018-23 Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 2,890.00 $ 2,889.92 0.08 $ 199,660.00 $ 199,660.00 V20210527 Previous Ordinance or Resolution # 131-18, 209-19, 250-1S Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF JULY 5, 2022 TO: Mayor and City Council THRU: Susan Norton, Chief of Staff Chris Brown, Public Works Director FROM: Alan Pugh, Staff Engineer DATE: June 14, 2022 CITY COUNCIL MEMO SUBJECT: Approval of a resolution of intent to establish a stormwater utility for the purposes of funding needed stormwater and flood management water quality projects through a monthly stormwater fee to be paid by most property owners in Fayetteville; and to request city staff to continue with analysis and supporting activities; and approval of Amendment 3 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $199,660 (total contract amount $582,942) are complete and to approve a budget adjustment. RECOMMENDATION: Staff recommends approval of a resolution of intent to establish a stormwater utility for the purposes of funding needed stormwater and flood management water quality projects through a monthly stormwater fee to be paid by most property owners in Fayetteville; and to request city staff to continue with analysis and supporting activities; and approval of Amendment 3 to the Stormwater Feasibility Study professional services contract with Jacobs in an amount not to exceed $199,660 (total contract amount $582,942) are complete and to approve a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. To develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require more than $1 million dollars for each project. Given the current funding levels, it would take many years to address just one of those projects. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 The City Council recognized these needs and approved moving forward with a feasibility study on June 5, 2018 via resolution 131-18 and amended that agreement on two occasions; resolution 209-19 and 250-19 to provide additional investigation. DISCUSSION: With the feasibility portion of the project complete and accepted by the City Council, the next phase will include preparation for the actual implementation should Council ultimately decide to move forward. In the immediate future the proposed work would include developing a billing database and procedure, finalizing the credit system, analyzing the latest impervious area and finalizing the proposed rate structure. The proposed project will also, with the help of the City's Communications Division, include a robust outreach program to educate the public about the program once the analysis is complete. While there will be checkpoints along the way, the contact also includes a full 24 months of support which will take the project all the way through the implementation process. With the amount of work remaining, the stormwater committee would like City Council to consider the attached resolution of intent along with the amendment to the contract. This resolution would only state Council's intent to move forward with the program and would not establish the program at this time. Once the applicable items in contract Amendment #3 are complete, staff would bring forth an ordinance for Council consideration to establish the stormwater utility and move forward with the implementation. BUDGET/STAFF IMPACT: The overall cost proposed is $199,660 which would bring the total of all services to $582,942 and is proposed to be set aside from the general fund as was the case with the original funding for the study. Attachments: Draft Resolution of Intent Amendment 2 to Stormwater Feasibility Contract Budget Adjustment Resolution 131-18 Resolution 209-19 Resolution 250-19 RESOLUTION NO. A RESOLUTION OF INTENT TO ESTABLISH A STORMWATER UTILITY FOR THE PURPOSES OF FUNDING NEEDED STORMWATER AND FLOOD MANAGEMENT WATER QUALITY PROJECTS THROUGH A MONTHLY STORMWATER FEE TO BE PAID BY MOST PROPERTY OWNERS IN FAYETTEVILLE, AND TO REQUEST CITY STAFF TO CONTINUE WITH ANALYSIS AND SUPPORTING ACTIVITIES. WHEREAS, the City of Fayetteville experienced major floods in 2008, 2011, 2015 and 2017, each of increasing frequency and magnitude; and WHEREAS, additional funds are needed for measures to protect the long-term resiliency of the City's infrastructure and its ability to protect public safety and access to public roads, as well as increase flood mitigation measures for the protection of private property; and WHEREAS, the City became a regulated small Municipal Separate Storm Sewer System (MS4) community under the State of Arkansas' General Permit (ARR040000) in 2003 with no corresponding federal or state funding for its mandated MS4 Stormwater Management Program; and WHEREAS, the Minimum Control Measures that the City is required to implement, track and report as part of its MS4 Stormwater Management Program have increased with each 5-year permit renewal cycle since 2003 and will likely increase again soon to reflect our substantially increasing population; and WHEREAS, the City's MS4 assets and responsibilities continue to increase with new development built in Fayetteville while additional routine maintenance, repair and replacement of the City's existing MS4 required infrastructure becomes necessary as these assets age; and WHEREAS, the City will likely meet the population threshold of 100,000 by the 2030 Decennial Census for Arkansas to become a medium MS4 community, triggering additional mandated activities and infrastructure; and WHEREAS, the City's current funding sources, including Street Fund, General Fund, Sales Tax Capital Improvements Fund, and the intermittent issuance of revenue bonds, are no longer adequate to provide and sustain these stormwater, flood management and water quality services; and WHEREAS, the 2019 Flood Management and Water Quality Funding Study identified a Stormwater Utility Fee to help pay for these services based upon the impervious area of houses, buildings, driveways, etc. as the most equitable mechanism for funding these increasing needs when paired with the Sustainable Credit Program available to all customers. 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 expresses its intention to adopt a Stormwater Utility and Stormwater Utility Fee upon satisfactory completion of the following tasks which are necessary for a complete Stormwater Utility Ordinance: a. Development of an accurate billing database with the attributes needed to facilitate billing. b. Completion of a final validation of the original financial model using updated program costs and the Customer Billing Database and develop final billing rates to complete. c. Development, Expansion and Finalization of the Sustainable Credit Framework, to include eligibility, application requirements, inspection and verification procedures and duration between renewal. d. Negotiate, if possible, Interlocal Cooperation Agreements with other public property owners in the City, such as the University of Arkansas and Washington County. e. Develop and implement stakeholder engagement and education materials and strategies including an interactive map that will allow property owners to see information specific to their property, including impervious areas and potential rates and monthly billing amounts. f. Review and consider municipal exemptions for rights of way, parking lots and other City properties. g. Development of a robust customer service program with processes allowing customers to request an audit/map supporting their fee amount, to answer questions, and to facilitate appeals of fee amounts and credits. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Contract Amendment No. xx with Jacobs in the amount of $xxx,xxx for additional services necessary to complete the tasks in section 1. PASSED and APPROVED this 1 st day of March, 2022. APPROVE] ATTEST: LIONELD JORDAN, Mayor KARA PAXTON, City Clerk/Treasurer Project: Jacobs Project No. Client: Project Manager: SCOPE CHANGE AUTHORIZATION Amendment 3 to the Stormwater Date Prepared: Feasibility Study Contract 705896CH Date Revised: City of Fayetteville, AR Heather H. Dvke June 15, 2022 Client Project No.: Change No.: 3 1. The attached proposal for changes in the scope of the work are hereby authorized: As an amendment to our existing agreement, Resolution 131-18, File Number 2018-0267. 2. The effect of these changes in scope is as follows: a. Fee (1) Change Labor: $191,460 + Travel: $8,200 = $199,660 (2) New Total $582,942 b. Schedule August 2022 to July 2024, or 24 months from NTP. c. Construction (1) Cost N/A (2) Schedule N/A d. Other N/A 3. The reason for these changes in the scope of the work are as follows: The purpose of Phase III is for Jacobs to provide an additional 24 months of support to prepare the City of Fayetteville for the initial billing of a customer -neutral fee based on impervious area (IA) as recommended by the 2019 Funding Study and subsequent analysis by the City Council Special Stormwater Subcommittee. 4. Project Manager's comments: On behalf of Jacobs, I greats ppreciate portunito support the City with potential implementation of its Flood Managem nt Water ality F ding Pa gram. Approved by Client: Agreed to by J EG: / Heather Laryisson, PE Jacobs Manager of Projects I BIAF Date: '�� e = 2'L Date: 6 15 2022 JACOBS` June 10, 2022 Chris Brown, PE Public Works Director City of Fayetteville 125 W. Mountain Street Fayetteville, AR 72701 Subject: Flood Management and Water Quality Funding Program Implementation, Phase III Dear Mr. Brown: Jacobs is pleased to submit this proposal for an amendment to our existing agreement for the purposes of assisting the City of Fayetteville (the "City") with the implementation of the findings of the Flood Management and Water Quality Funding Study (prepared under Resolution 131-18, File Number 2018-0267) and subsequent analysis for Funding Program Implementation (Resolution 250-19, File Number 2019-0596). As a result of these efforts, our Team uniquely understands the many drivers for the City establishing an equitable and sustainable long-term funding source for its MS4 stormwater, flood management and water quality needs. Similarly, we recognize the importance of the remaining work for the City's leadership, staff and citizens. The overall purpose of Phase III of the Flood Management and Water Quality Funding Program Implementation ("Phase III") is for Jacobs to provide 24 months of support as described in the attached documents to facilitate the initial billing of a customer -neutral fee based on impervious area (IA). As part of Phase III, Jacobs will support the City as it develops its internal billing policies to support its diverse range of customers, a current customer billing database, and a Sustainable Stormwater Credit Manual with Application and Instructions. Similarly, Jacobs will provide technical content for the City's Communication Department to utilize with stakeholders and facilitate a Customer Billing Preview & Notification Study paired with a public -facing Billing Preview tool for customers to view the draft billing data (parcel boundaries and impervious area). The proposal attached provides the following information: • Article A. Purpose and Scope of Services • Article B. Schedule and Fee We greatly appreciate the opportunity to provide this proposal for the City's consideration. If you have any questions, please do not hesitate to contact us. Sincerely, AIA�171__ Heather Layrisson/BTR Heather H. Dyke, AICP 6/10/2022 PAGE 1 OF 12 Enclosure Flood Management and Water Quality Funding Program Implementation for the City of Fayetteville, Arkansas Article A. Purpose and Scope of Services This scope of work would provide the City of Fayetteville, Arkansas with support in implementing the findings of the 2019 Flood Management and Water Quality Funding Study (prepared under Resolution 131-18, File Number 2018-0267) and subsequent analysis for Funding Program Implementation (Resolution 250-19, File Number 2019-0596). The purpose of Phase III is to provide 24 months of support to the City of Fayetteville to facilitate the initial billing of a Stormwater, Flood Management and Water Quality fee. This customer -neutral fee, based on impervious area (IA), was identified as the most equitable method of funding its drainage and federally mandated, albeit unfunded, Municipal Separate Storm Sewer System (MS4) permit compliance needs by the 2019 Funding Study. Under Phase III, Jacobs would first provide as needed services to City staff to navigate final policy decisions and implement robust stakeholder engagement and education and develop credit and customer service programs. Secondly, Jacobs would facilitate the creation of an updated Customer Billing Database by the City and perform a final validation of the original financial model using updated program costs and the updated Billing Database. Lastly, Jacobs will work with City staff to conduct a Customer Billing Preview & Notification Study at least 6 months in advance of the first billings using the draft Customer Billing database. This study will notify customers of their anticipated fee amount without credits, provide them with the Draft Sustainable Stormwater Credit Manual, including a Credit Program Application and Instructions as an attachment, and allow them to view the underlying parcel boundaries and impervious area via a City -developed and hosted map tool. If the customer finds a discrepancy in this source data an online link or form will be provided to request an appeal. The Jacobs Project Team would continue to be led by Heather Dyke, AICP with support from Mike Matichich and other Jacobs staff already familiar with the Funding Study and subsequent Program Implementation Findings. Scope of Services Project Understanding Phase III of the Flood Management and Water Quality Funding Program includes the interim activities necessary to establish a fee program. After consideration and passing of a Resolution by City Council, the Jacobs team would work closely with City staff to forward these activities in a cost-effective, stepwise and collaborative fashion. The following table summarizes the Project Team's understanding of City -led activities versus Jacobs -led deliverables by task, which are described further in the next section. For example, it is assumed that the City will lead Stakeholder Education and Outreach activities with technical support and content provided by Jacobs. Similarly, Task 5 is now dedicated to the development of robust, sustainable customer service program in which Jacobs would support the City as it develops a responsive program, including processes for customers to request a brief audit / map supporting their fee amount, to answer questions, and facilitate appeals of fee amounts and credits. 6/10/2022 PAGE 2 OF 12 Task # Task Name City -led Activities Jacobs Deliverables • Overall Flood Management and Water • Technical content for SpeakUp Quality Stakeholder Engagement and Fayetteville, the Customer Billing Education Program Preview & Notification Study, Stakeholder • Strategy and Action Plan including Example Fee Calculations and 1 Engagement and methods, milestones and schedule for Frequently Asked Questions. Education necessary technical content from • Meeting materials and Jacobs. attendance for up to 8 Meetings, Workshops or Briefings (4 individual trips). Development of underlying billing database • Updated stormwater cost of source data in Task 3, which will also be an services, 2024 to 2034. Final Stormwater input for the financial /rate model. • Updated stormwater financial / rate model, with detailed 5-year 2 Program Costs and cash flow analysis and planning Rate Analysis level projections over a 20-year time frame. • Obtain and process underlying billing • Billing Policy Paper database source data • Workshops with City GIS and • Develop public -facing Billing Preview Utility Billing staff tool for customers to view the draft . Customer Billing Database Stormwater 2024 Customer Billing Data (parcel Work Ian p boundaries and impervious area) and 3 Customer Billing submit a request for City staff review • Draft 2024 Customer Billing Database as part of Notification Database • Distribute Customer Billing Preview & • Customer Billing Preview & Notification Notification Study • Final 2024 Customer Billing Database • City staff will take the lead soliciting input from City stakeholders on the . Revisit Phase II Credit Framework range of credit opportunities that and assess the cost /benefits of Sustainable should be offered, see Task 1, with providing additional credits. 4 Stormwater Credit technical support from Jacobs. Program • City staff will negotiate Interlocal • Draft and Final Sustainable Cooperation Agreements with other Stormwater Credit Manual with public governments relating to their Application and Instructions credits • Sustainable Customer Service Program • Draft and Final Customer Service • Drainage Easement Equity Plan Fee and Credit Appeal processes Customer Service and procedures 5 and • Plan for Private Residential Detention Administration Pond Program (inventory, contact, • Draft and Final CS processes and procedures and a schedule) procedures for administering the Credit Program and Billing Database. • Confirm Section 52.03—Applicability. • Up to 3 draft Interlocal 6 Ordinances and Intergovernmental • Negotiate Interlocal Cooperation Cooperation Agreements Agreements Agreements • Revise Ordinance Section 52.07, if needed. 6/10/2022 PAGE 3 OF 12 Project Tasks Task 1. Stakeholder Engagement and Education The Jacobs Team understands that the City's goal is to continue to reach as many people as practical throughout the stakeholder engagement and education process. Further, that additional involvement and education of the owners of rental property, large industries, non -profits and other traditionally exempt property may be needed to ensure they understand how equitable the fee is, the services it provides and that the City is providing a robust, Sustainable Credit Program to recognize existing, functional stormwater practices. Task 1 will provide the technical content for the City's Communication Department to use to raise awareness among citizens and businesses of the need for additional funding and the equity / fairness of Funding Program selected. Other technical content would support Stakeholder awareness of the Customer Billing Preview & Notification Study planned for at least 6 months in advance of initial billing. Task 1.1 General Meetings, Workshops and Briefings The Jacobs Team will support City staff in engaging internal and external stakeholders via a variety of in person meetings, workshops and briefings. Elected officials will be briefed either through the Special Stormwater Subcommittee established during the Funding Study or through full City Council presentation(s). This scope of work would cover 4 meetings over 2 trips by the Jacobs Project Manager plus 1 additional staff member, as needed. Task 1.2 Stakeholder Materials The Team will work closely with the City's Communications and Marketing Department and the Media Services Division to support the implementation of a robust and innovative stakeholder engagement and education strategy that reflects the City's long history of reaching out to its citizens. Jacobs will develop the draft technical content of Stakeholder Materials while City staff will finalize the materials for posting and distribution. Task 1 Deliverables and Assumptions — o Meeting materials and 1— 2 team members for up to 8 Meetings, Workshops or Briefings (4 individual trips). o Up to 4 PowerPoint presentations o Technical content for SpeakUp Fayetteville, the Customer Billing Preview & Notification Study, Example Fee Calculations and Frequently Asked Questions. o Staff with the City's Communications and Marketing Department and the Media Services Division will now lead this Task with technical support from the Jacobs Team. Task 2. Final Stormwater Program Costs and Rate Analysis Task 2 would update the costs associated with the City providing the Extent of Service (EOS) and Level of Service (LOS) planned for its Stormwater Program based on inflation and additional stakeholder feedback. Similarly, the financial planning and rate analysis activities performed in Phases I and II will be updated and validated using these updated costs, the draft Stormwater Customer Billing Database from 6/10/2022 PAGE 4 OF 12 Task 3, and other potential changes to the underlying assumptions to confirm the fee schedule needed to support its desired EOS / LOS. Task 2 Deliverables and Assumptions — • Final projected stormwater cost of services tabulated from 2024 to 2034. • Final stormwater pro forma financial spreadsheet model (financial / rate model) with a detailed 5- year cash flow analysis and planning level projections over a 20-year time frame. • The EOS/LOS assumptions used for generating the final stormwater program costs will not vary substantially from those in Phase II. Task 3. Stormwater Customer Billing Database Jacobs will work in collaboration with City staff in Task 3 to develop a current Stormwater Customer Billing database. The resulting draft and final databases will serve multiple purposes for implementation, including accurately identifying the top 20 Stakeholders for engagement (Task 1), estimating fee amounts for the purposes of negotiating interlocal agreements (Tasks 4 and 6) as well as determining efficient methods for billing non -fee simple properties and properties administered as rentals by management companies. Jacobs anticipates the City needing to follow the steps below to identify and develop a customer billing database that meets its needs: 1) A Billing Policy Paper to identify and evaluate the full range of policy questions in advance of designing the Customer Billing Database of a parcel -based fee as a new module within the City's monthly utility billing system. Examples of topics to be addressed during a Task Kickoff with City staff include but are not limited to: a) Will most undeveloped properties inherently not have a utility account? b) What are cost-effective (long term) methods for? i) Linking parcel ownership to the existing utility billing system? ii) Calculating and administering fees for non -fee simple properties and properties administered as rentals by management companies? iii) Calculating and administering credit amounts? 2) Develop a Customer Billing Database Workplan based on findings of the Policy Paper and a series of workshops with City GIS and Utility Billing staff. The workshops will: a) Identify a wide range of attributes needed for billing, the structure of this data and cost- effective processing steps to generating it. b) Establish procedures for billing rental and multi -family properties. c) Establish procedures for resolving database exceptions and customer appeals. 3) Generating a draft 2024 Customer Billing Database, as described in the Workplan. 4) Perform a Customer Billing Preview & Notification Study with the draft 2024 Customer Billing database at least 6 months in advance of the initial billing to notify owners of their anticipated fee amount without credits and to provide the Sustainable Credit Program Manual, including an Application and Instructions, with a proposed period for owner submittals of appeal and credit applications and subsequent City processing (see Task 5) before billing. 5) Generate fina12024 Customer Billing Database with credit amounts to date and adjustments resulting from the Customer Billing Preview & Notification Study. 6/10/2022 PAGE 5 OF 12 Jacobs will provide support to the City while it generates a draft and final Customer Billing database. Should the City decide to proceed with Phase III, it is assumed that the City would self -perform the majority of Task 3, including the extensive QA/QC and database processing efforts needed to test for accuracy of the resulting bills and reduce the likelihood of excessive customer appeals. Examples of self - performed efforts include generating: • Current Impervious Area (IA) data that reflects the City's definition of IA and growth that has occurred since 2018. • Parcel / Property Boundary Verification (attributed with PIN [parcel identification number], physical address and owner) o Purpose: Parcel boundaries are needed for calculating a fee, no matter the billing method selected. The PIN or physical address will serve as the method of joining the customer billing database to the City's utility billing system. o Existing data: Substantial database processing could be needed to examine the extent that parcel boundaries are reasonably correct. Moderate database processing will be needed for all parcels to be attributed with PINs and Ownership. Lastly, while the fee is customer - neutral, there are multiple benefits to retaining, or adding, attributes to indicate customer type / class. Task 3 Deliverables and Assumptions — 1. Deliverables: a. Up to 8 virtual, or in -person, if possible, workshops with City staff from corresponding Departments to develop the Billing Policy Paper, Customer Billing Database Workplan and Customer Billing Preview & Notification Study. b. Draft and Final Billing Policy Paper c. Draft and Final Customer Billing Database Workplan d. Draft and Final 2024 Customer Billing Database e. Technical Support of Customer Billing Preview & Notification Study. 2. Other as needed support includes: a. Technical input as City GIS staff leads (and hosts) the development of a simple, public -facing tool for customers to view the draft 2024 Customer Billing Database, i.e., quick map of the property boundaries and IA, for verification. The tool will also allow customers to request an audit if something looks amiss in advance of billing. 3. Assumptions: a. The City will be responsible for providing Jacobs with an updated ArcGIS geodatabase of an "intersect" or "identity" between the following data sources as an input to the Draft 2024 Customer Billing Database: Its version of the Washington County Tax Parcels with the attributes, highlighted below: Parcel: 765-13492-COO Washington County Report ID: 46604 Prev Parcel. 14 5J-0QC-l_0 Property Owner Property Information Name: Physical Address: 1772 N COLLEGE AVE Mailing Address: PO BOX 6536 Subdivision: 3-16-30 FAYETTEVILLE OUTLOTS FORT SMITH, AR 72906-6538 Block I Lot: NIA I NIA Type: (CI) Comm. Impr. S-T-R: 03-16-30 Tax Dist: (011) FAYETfEVILLE SCH, FAY Size (Acres): 0.336 Millage Rate: 57 95 6/10/2022 PAGE 6 OF 12 Building 1 AgeNC Condition Effective Age Stories Grade 1972 Average 14 1 C2 Avg. Floor Area: 1978 Common Wall: Avg. Perimeter: 196 Total Floor Area: 1978 No. Floors: 1 Total Height: 10 Avg. Floor Hgl: 10 Unit Multiplier. 1 Occupancy HeatinglCooling Sprinkler Primary Restaurarl - Fast Food (100%) WmnCI Air (100%) NIA Secondary NIA NIA NIA Outbuildings and Yard Improvements Item Type Size/Dim Unit Multi. Quality Age Cooler (35 F) 7x12 Fence, Metal WIRON4 300 Freezer(0 F) 10x7 Lighting PAVAPFX 7 Lighting LGTP 34 3 Paving ASPH 5000 Sign Pasts or Poles 6x2 Flagpole NCV Lighting LGTP 20 1 Paving CONC 4500 Walls, Masonry CONC134 180 ii. Current impervious area (IA) data of all hard surfaces in the City, including compacted gravel. iii. Its best available data source for accurately determining legal ownership type between the following buckets: 1. Private — Fee Simple 2. Private - Condominium 3. Public — City owned within the public rights of way, 4. Public —City owned, Drake Field, 5. Public — Other City owned lands such as parks and trails, 6. Public — Fayetteville Public Schools, 7. Public —Washington County, 8. Public —State of Arkansas, 9. Public — University of Arkansas (main campus and annexes), 10. Public —Federal 11. Other —Traditionally tax-exempt properties. iv. Use of the City's Utility Billing System will also necessitate the need for a corresponding linkage via meter location address or other method. Task 4. Sustainable Stormwater Credit Program As described further in the 2019 Funding Study and 2021 Sustainable Credit Framework memo, a stormwater credit is an ongoing, renewable reduction in the fee charged to a property for mitigating its impact on the City's stormwater system. The Framework provides all customers with an opportunity to meaningfully reduce their fees by demonstrating activities or stormwater practices that reduce the water quality and quantity burden imposed on the City's drainage system. As part of Task 4, Jacobs will finalize the Sustainable Credit Program by: • Revisiting the range of credit opportunities listed in draft Subsection 52.12 — Sustainable Credit Framework, with input from City stakeholders. • Assessing the administrative costs versus direct and indirect benefits of providing additional credits, or a rebate program, for smaller residential stormwater practices such as rain barrels. 6/10/2022 PAGE 7 OF 12 • Producing a draft and final Sustainable Stormwater Credit Manual, including sections addressing applicability and eligibility, application documentation, and processes for enforcement, renewal and appeals. Application instructions and forms would be provided as appendices to the Manual. Task 4 Deliverables and Assumptions — 1. Draft and Final Sustainable Stormwater Credit Manual, including a Credit Program Application and Instructions as an attachment. 2. It is assumed that City staff will take the lead soliciting input from City stakeholders on the range of credit opportunities that should be offered, see Task 1, with technical support from Jacobs. 3. It is assumed that corresponding internal administrative procedures for the Sustainable Stormwater Credit are in Task 5. Task 5. Customer Service and Administration Support For Task 5, Jacobs will provide as needed support to the City in developing the internal Customer Services processes and procedures to administer the Fee Program. This includes providing technical support to a City -led Drainage Easement Equity Plan and Plan for Private Residential Detention Ponds. Implementation of an enhanced stormwater management program would also require developing and defining specific policies and procedures to convey to key stakeholders identified in Task 1, what is covered in the program, where the City will provide services and what will remain the responsibility of private property owners. As part of Task 5, the Jacobs team will: • Work with the City to develop the processes and procedures for reviewing appeals to customers fee amounts as well as appeals of the credits granted if the owner does not concur. • Work with the City to develop the processes and procedures for administering the Sustainable Credit Program including the review credit applications, determining the credit amount is warranted and then integrating into the Customer Billing database. • After granted, a long-term process for tracking credits, validation and renewal would be developed for City staff. Similarly, Jacobs will work with City staff to identify a cost-effective method for administering and tracking of credits for education and involvement activities as well as individual residential practices, if needed. Task 5 Deliverables and Assumptions — • Up to 4 virtual, or in -person, if possible, workshops with City staff from corresponding Departments to develop the City -specific process and procedures. • Draft and Final Customer Service Fee and Credit Appeal processes and procedures • Draft and Final Customer Service processes and procedures for administering the Sustainable Stormwater Credit Program and the Customer Billing Database. Task 6.Ordinances and Interlocal Cooperation Agreements As part of Task 6, the Jacobs Team will work closely with the City's legal staff to update draft Chapter 52, Stormwater Utility further, if needed, based on the findings of Tasks 1— 5. They will support the City as it negotiates Interlocal Cooperation Agreements, under § 25-20-104 and § 14-54-704, with other public property owners such as the University of Arkansas, Washington County and Fayetteville Public Schools in recognition of their own MS4 permits or efforts to reduce stormwater runoff. Jacobs will develop up 6/10/2022 PAGE 8 OF 12 to 3 draft Intergovernmental Agreements for City staff that clearly delineate the extent and level of stormwater services to be provided by the City, the rights and responsibilities of each party as well as mutual obligations, compensation and miscellaneous terms. Task 6 Deliverables and Assumptions: 1. Draft and Final revisions to Chapter 52. Stormwater Utility. 2. Up to 3 Interlocal Cooperation Agreements. Task 7.Overall Project and Quality Management The objective of this task is to recharter the project by defining the individual project roles, points of contact and project controls for the next 24 months. This includes managing, coordinating and proactively communicating the status of project resources, schedule and budget. Task 7 Deliverables and Assumptions — 1. 24 monthly invoices and progress reports. 2. Monthly or quarterly status calls, including an agenda, updated schedule, and action items. 6/10/2022 PAGE 9 OF 12 Project Deliverables Task # Task Name Deliverables 1. Technical content for SpeakUp Fayetteville, the Customer Billing Preview & Notification Study, Example Fee Calculations and Frequently 1 Stakeholder Engagement Asked Questions. and Education 2. Meeting materials and 1— 2 team members for up to 8 Meetings, Workshops or Briefings (4 individual trips). 3. Final stormwater cost of services tabulated from 2024 to 2034. Final Stormwater 2 Program Costs and Rate 4. Final stormwater pro forma financial spreadsheet model (financial / Analysis rate model) with a detailed 5-year cash flow analysis and planning level projections over a 20-year time frame. 5. Up to 8 virtual, or in -person, if possible, workshops with City staff from corresponding Departments to develop the Billing Policy Paper, Customer Billing Database Workplan and Customer Billing Preview & Notification Study. 3 Stormwater Customer Billing Database 6. Draft and Final Billing Policy Paper 7. Draft and Final Customer Billing Database Workplan 8. Draft and Final 2024 Customer Billing Database 9. Technical Support of Customer Billing Preview & Notification Study. 10. Revisit Phase II Sustainable Credit Framework, including the range of credit opportunities and assessing the administrative costs versus direct and indirect benefits. Sustainable Stormwater 11. Draft and Final Sustainable Stormwater Credit Manual with sections 4 Credit Program addressing applicability and eligibility, application documentation, and processes for enforcement, renewal and appeals. Application instructions and forms would be provided as appendices to the Manual 12. It is assumed that corresponding internal administrative procedures for the Sustainable Stormwater Credit are in Task 5. 13. Up to 4 virtual, or in -person, if possible, workshops with City staff from corresponding Departments to develop City -specific process and procedures (2 individual trips). Customer Service and 14. Draft and Final Customer Service Fee and Credit Appeal processes and 5 Administration procedures 15. Draft and Final Customer Service processes and procedures for administering the Sustainable Stormwater Credit Program and the Customer Billing Database. Ordinances and Interlocal 16. Draft and Final revisions to Chapter 52. Stormwater Utility. 6 Cooperation Agreements p g 17. Up to 3 Interlocal Cooperation Agreements 18. 24 monthly invoices and progress reports. Overall Project and 7 Quality Management 19. Monthly or quarterly status calls, including an agenda, updated schedule, and action items. Project Conditions and Assumptions • A period of performance not to exceed 24 months. 6/10/2022 PAGE 12 OF 12 • Travel expenses for up to 4 individual trips in support of up to 8 total meetings are included. • It is assumed that all deliverables will consist of no more than 2 drafts and 1 final. • Unless specified, all deliverables will be provided in electronic format. • Staff with the City's Communications and Marketing Department and the Media Services Division will now lead Task 1. Stakeholder Engagement and Education, with technical support from the Jacobs Team. • The EOS/LOS assumptions used for generating the final stormwater program costs in Task 2 will not vary substantially from those in Phase II. • For Task 3, the City will be responsible for providing Jacobs with an updated ArcGIS geodatabase of an "intersect" or "identity" between its version of the Washington County Tax Parcels, current impervious area (IA) data, and its best available data source for accurately determining legal ownership type. If the City's Utility Billing System is selected, the geodatabase will also need to have a corresponding linkage via meter location address or other method. • For Task 4, it is assumed that City staff will take the lead soliciting input from City stakeholders on the range of credit opportunities that should be offered, see Task 1, with technical support from Jacobs. Article B. Schedule and Fee JACOBS will commence work within 10 working days of receiving the City's order for the project services. The schedule will be developed in consultation with City staff with activities anticipated to be complete within 24 months. The fee for the Scope of Services is calculated based on the hourly rates, and the estimated Level of Effort (LOE) for this Scope of Services is shown in Table 1. Compensation will be on a not -to -exceed basis, and the project compensation will not exceed a value of $199,660 without written authorization from the City. The City will be provided with a monthly breakdown of hours spent along with a summary of activities performed. 6/10/2022 PAGE 2 OF 12 4.1 C m O N co O O a`Q m U C U QO) O 66, m m m r m N C_ O_ Ci (� C M - W c O N O N 0°0 m m V m N 0 U a Cm �_ m O C cl) N O O N I- m N O V d' N O of (O m M V N V N V N V N m m M V m N cR O O O =°'N c v a m N o) r and n C C n O N O m m N m m V 0 m V 7 V V 7 m _ m o o o o o o 0 o o o 0 po o o o o o o 0 0 0 0 0 0 0 oo to m N o V of Oo O O N V w O V' Q m (D w 7 O V _ w u) O O O (o O pp O (O V o V M m o m N N Vf (R H3 N fA N 49 V fR V3 6% N (A (A N i4 (R fA YJ fA (H V) (R fA (A N fR V3 fA of Oo � m a U m N � O m o K 0'2 0 o ^ O N O (O m m N p N N� m So t N J o d°. �y m co 0N Oo m M � 7 ,y o1 V M 4 a (o N 7 S N O r (D - u ? N c m L N m c L , o a T e m$ m 'n'Fa o C E= c h N in E m J a N m u c m° o o m -Jo oo v m m Y 't W ° N V O bC0 'O Y L N vYi N m n L po C J n V C-•CbD O U O m E '^ o _ N m V E w a O a o° 2 •m v Y° ¢ N m m E u o L m O y m m E> O m e y v o v w m o Y a u E m `1 3 m v u m v o m c a u m L v° E E c a `w 'm 'm w LL In .L a o o m a u m m p o m E m n m v - L O YI o o L U m C {A VI ii 3 a E rca E •Ip _ '� Y m .E eco o= v i E u O �+ O $ a°+ .0 .o C a v� a+ N •� N.. r ° m N c Y O O Y O O Y O O O O Y O O Y O O O Y O O Y O v m n a s n a n a r H 3 H w 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 131-18 File Number: 2018-0267 STORMWATER UTILITY STUDY CONTRACT: A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH CH2M HILL ENGINEERS, INC., PURSUANT TO RFQ 18-02, IN AN MOUNT NOT TO EXCEED $229,222.00 FOR A STORMWATER UTILITY FEASIBILITY STUDY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study. 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 a professional services agreement with CH2M Hill Engineers, Inc., pursuant to RFQ 18-02, in an amount not to exceed $229,222.00 for a stormwater utility feasibility study. 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 6/5/2018 Attest: -, d-wl Sondra E. Smith, City Clerk Treasurer �+�'o1���ir� .p �. • FA�'E� •,.. �f;ti� `G `ON ����� Page 1 Printed on 6/5118 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 .; Text File File Number: 2018-0267 Agenda Date: 6/5/2018 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 2 STORMWATER UTILITY STUDY CONTRACT: A RESOLUTION TO AUTHORIZE A PROFESSIONAL SERVICES AGREEMENT WITH CH2M HILL ENGINEERS, INC., PURSUANT TO RFQ 18-02, IN AN AMOUNT NOT TO EXCEED $229,222.00 FOR A STORMWATER UTILITY FEASIBILITY STUDY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Sections 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a professional services agreement with CH2M Hill Engineers, Inc., pursuant to RFQ 18-02, in an amount not to exceed $229,222.00 for a stormwater utility feasibility study. 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 61512018 Chris Brown Submitted By City of Fayetteville Staff Review Form 2018-0267 Legistar File ID 6/5/2018 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 5/15/2018 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Approval of the Stormwater Feasibility Study professional services contract with CH21VI Hill Engineers, Inc in an amount not to exceed $229,222 and to approve a budget adjustment. Budget Impact: 1010.090.6600-5314.00 General Fund Account Number Fund 17008.1 Stormwater Utility Feasibility Study Project Number Budgeted Item? Yes Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? Yes Budget Adjustment Purchase Order Number: Change Order Number: Original Contract Number: Comments: Project Title $ 200,000.00 $ 275.40 $ 999,724.60 $ 229,222.00 $ 29,498.00 Remaining Budget $ 0.60 V20180321 Previous Ordinance or Resolution # 175-17 Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF JUNE 5, 2018 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: May 21, 2018 CITY COUNCIL MEMO SUBJECT: Approval of the Stormwater Feasibility Study professional services contract with CH2M Hill Engineers, Inc in an amount not to exceed $229,222 and to approve a budget adjustment. RECOMMENDATION: Approval of the Stormwater Feasibility Study professional services contract with CH2M Hill Engineers, Inc in an amount not to exceed $229,222 and to approve a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. In order to develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require in excess of $1 million dollars for each project. Given the current funding levels, it would take many years in order to address just one of those projects. The City Council recognized these needs and expressed the City's intent to move forward with a stormwater feasibility study on August 15, 2017 as noted in resolution 175-17. DISCUSSION: Upon approval by the Council in August of last year, staff began working with the purchasing division to draft an appropriate scope of work to go along with a request for professionals to submit their qualifications for consideration. This scope was shared with the Water and Sewer Committee and any comments from the committee were addressed. The RFQ was then published on January 2, 2018 and qualifications were due on or before and February 8, 2018. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 The City received statements of qualifications from 7 firms and from these the top 3 were interviewed by the selection committee. Of the top three firms, CH21VI Hill was selected as the most qualified and contract negotiations began. It should be noted that CH2M Hill was recently acquired by Jacobs and accordingly some of the following materials reference both firms. Although both are licensed in the state of Arkansas, the contract itself would be with CH2M Hill Engineers Inc. Subsequent to the selection of CH2M Hill as the most qualified firm, staff has worked to develop a contract that meets the expectations of the Administration and the City Council. This contact is attached for your consideration. Although it does slightly exceed the original approved amount, staff feels that all aspects are necessary for a thorough and complete study. This includes a robust public outreach program as well as the financial analysis and other aspects required to complete the study. It will also provide the platform should Council decide to move forward with implementation of the stormwater utility. It should be noted that there are also stopping points built into the contract so that at various times throughout the study, staff and CH21VI Hill would present the findings to council committee at which time the City would have the option to discontinue the study should it be necessary. BUDGET/STAFF IMPACT: The overall cost proposed is $229,222 which does include the opportunity for some additional services should they be required. The council originally set aside $200,000 from the general fund in order to pay for the study. This request also includes a budget adjustment that would provide the additional $29,222 from that same fund, and cover the cost of advertising the request for qualifications, for a total budget adjustment of $29,498. Attachments: Resolution 175-17 Stormwater Utility Contract 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 209-19 File Number: 2019-0510 JACOBS ENGINEERING GROUP, INC F/K/A CH2M HILL ENGINEERS, INC. AMENDMENT NO. 1: A RESOLUTION TO APPROVE AMENDMENT NO. I TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND JACOBS ENGINEERING GROUP, INC F/K/A CH2M HILL ENGINEERS, INC. IN THE AMOUNT OF $3,860.00 FOR ADDITIONAL TRAVEL AND LABOR EXPENSES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on June 4, 2018, the City Council approved a contract with CH2M Hill Engineers, Inc., now known as Jacobs Engineering Group, Inc., to evaluate the feasibility of creating a stormwater utility program; and WHEREAS, City staff is requesting additional funds for to allow the Jacobs Engineering Group, Inc. project manager to attend the presentation to the City Council and answer any questions about the study. 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 and authorizes ` Mayor Jordan to sign Amendment No. 1 to the Professional Services Agreement between the City of Fayetteville, Arkansas and Jacobs Engineering Group, Inc. formerly CH2M Hill Engineers, Inc. in the amount of $3,860.00 for additional travel and labor expenses for the Jacobs Engineering Group, Inc. project manager to be present for the stormwater utility feasibility study presentation to the City Council Page 1 Printed on 9/19/19 File Number: 2019-0510 Resolution 209-19 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 9/17/2019 �V����►►��► IRK /T Attest: O'�•••`sG�: �U• ' FAYETTEVI(LE;X- O �L• ice• 9 •� Lisa Branson, Deputy City Clerk �„'►'Nt►i►`or Page 2 Printed on 9119119 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 A; Text File �`- - File Number: 2019-0510 Agenda Date: 9/17/2019 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: A. 6 JACOBS ENGINEERING GROUP, INC F/WA CH2M HILL ENGINEERS, INC. AMENDMENT NO. 1: A RESOLUTION TO APPROVE AMENDMENT NO. 1 TO THE PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF FAYETTEVILLE, ARKANSAS AND JACOBS ENGINEERING GROUP, INC F/K/A CH2M HILL ENGINEERS, INC. IN THE AMOUNT OF $3,860.00 FOR ADDITIONAL TRAVEL AND LABOR EXPENSES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on June 4, 2018, the City Council approved a contract with CH2M Hill Engineers, Inc., now known as Jacobs Engineering Group, Inc., to evaluate the feasibility of creating a stormwater utility program; and WHEREAS, City staff is requesting additional funds for to allow the Jacobs Engineering Group, Inc. project manager to attend the presentation to the City Council and answer any questions about the study. 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 and authorizes Mayor Jordan to sign Amendment No. 1 to the Professional Services Agreement between the City of Fayetteville, Arkansas and Jacobs Engineering Group, Inc. formerly CH2M Hill Engineers, Inc. in the amount of $3,860.00 for additional travel and labor expenses for the Jacobs Engineering Group, Inc. project manager to be present for the stormwater utility feasibility study presentation to the City Council 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 9/19/2019 Chris Brown Submitted By City of Fayetteville Staff Review Form 2019-0510 Legistar File ID 9/17/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 5/15/2018 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH21VI Hill, in an amount not to exceed $3,860 (total contract amount $233,082) and to approve a budget adjustment. 1010.090.6600-5314.00 Account Number 17008.1 Project Number Budgeted Item? Yes Does item have a cost? Yes Budget Adjustment Attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Budget Impact: General Fund Fund Stormwater Utility Feasibility Study Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Project Title $ 229,222.00 $ 229,222.00 !$ $ 3,860.00 $ 3,860.00 $ - V20180321 Previous Ordinance or Resolution # 131-18 Approval Date: CITY OF FAYETTEVILLE ARKANSAS MEETING OF SEPTEMBER 17, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: August 20, 2019 CITY COUNCIL MEMO SUBJECT: Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH2M Hill, in an amount not to exceed $3,860 (total contract amount $233,082) and to approve a budget adjustment. RECOMMENDATION: Approval of Amendment 1 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH2M Hill, in an amount not to exceed $3,860 (total contract amount $233,082) and to approve a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. To develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require more than $1 million dollars for each project. Given the current funding levels, it would take many years to address just one of those projects. The City Council recognized these needs and approved moving forward with a feasibility study on June 5, 2018 via resolution 131-18. DISCUSSION: As the feasibility study nears completion, staff is requesting additional funds so that Jacobs may be present for the presentation of the study to the City Council. We feel it is important for the Council to hear the findings of the study and for the Council to be able to ask any questions of Jacobs in person. Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 BUDGET/STAFF IMPACT: The overall cost proposed is $3,860 which includes one additional trip not included in the original contract. This would bring the total of all services to $233,082 and is proposed to be set aside from the general fund as was the case with the original funding for the study. Attachments: Amendment 1 to Stormwater Feasibility Contract Budget Adjustment Resolution 131-18 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 250-19 File Number: 2019-0596 JACOBS ENGINEERING, INC. AMENDMENT NO. 2: A RESOLUTION TO ACCEPT AND ADOPT THE STORMWATER STUDY FOR FLOOD MANAGEMENT AND WATER QUALITY FUNDING, TO APPROVE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH JACOBS ENGINEERING, INC. IN AN AMOUNT NOT TO EXCEED $150,200.00 FOR ADDITIONAL SERVICES RELATED TO THE DEVELOPMENT OF FINAL RECOMMENDATIONS FOR THE CREATION OF A STORMWATER UTILITY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study; and WHEREAS, on June 5, 2018 the City Council passed Resolution 131-18 authorizing a contract with CH2M Hill Engineers, Inc. for the feasibility study; and WHEREAS, the feasibility study has been completed and is being presented to the City Council for final acceptance and adoption of the findings and recommendations; and WHEREAS, if the study is accepted and adopted, staff also recommends the approval of Amendment No. 2 to the contract for Jacobs Engineering, Inc., the parent company of and successor in interest to CH2M Hill Engineers, Inc., to develop final recommendations for the creation of a stormwater utility in the City of Fayetteville. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF Page 1 Printed on 1116119 File Number. 2019-0596 Resolution 250-19 FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby accepts and adopts the Stormwater Study for Flood Management and Water Quality Funding, a copy of which is attached to this Resolution. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 2 to the Professional Services Agreement with Jacobs Engineering, Inc., a copy of which is attached to this Resolution, in the amount not to exceed $150,200.00 for additional services related to the development of final recommendations for the creation of a stormwater utility. Section 3: 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 11/5/2019 ``���ttnrrrrh ♦``��� CLE.R K ♦ '�y. T .'�cl�i Attest: CITyo.�`9J.i Lisa Branson, Deputy City Cleat••� ;'-"'v r CU\� Page 2 Printed on 1116119 City of Fayetteville, Arkansas 113 West Mountain Street - Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2019-0596 Agenda Date: 11/5/2019 Version: 1 Status: Passed In Control: City Council Meeting File Type: Resolution Agenda Number: C. 3 JACOBS ENGINEERING, INC. AMENDMENT NO. 2: A RESOLUTION TO ACCEPT AND ADOPT THE STORMWATER STUDY FOR FLOOD MANAGEMENT AND WATER QUALITY FUNDING, TO APPROVE AMENDMENT NO. 2 TO THE PROFESSIONAL SERVICES AGREEMENT WITH JACOBS ENGINEERING, INC. IN AN AMOUNT NOT TO EXCEED $150,200.00 FOR ADDITIONAL SERVICES RELATED TO THE DEVELOPMENT OF FINAL RECOMMENDATIONS FOR THE CREATION OF A STORMWATER UTILITY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on August 15, 2017, the City Council passed Resolution No. 175-17 expressing the City Council's intent to fund a study to evaluate the feasibility of creating a stormwater utility program and authorizing City staff to move forward with the selection of a professional consultant to complete the study; and WHEREAS, on June 5, 2018 the City Council passed Resolution 131-18 authorizing a contract with CH2M Hill Engineers, Inc. for the feasibility study; and WHEREAS, the feasibility study has been completed and is being presented to the City Council for final acceptance and adoption of the findings and recommendations; and WHEREAS, if the study is accepted and adopted, staff also recommends the approval of Amendment No. 2 to the contract for Jacobs Engineering, Inc., the parent company of and successor in interest to CH2M Hill Engineers, Inc., to develop final recommendations for the creation of a stormwater utility in the City of Fayetteville. 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 accepts and adopts the Stormwater Study for Flood Management and Water Quality Funding, a copy of which is attached to this Resolution. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves Amendment No. 2 to the Professional Services Agreement with Jacobs Engineering, Inc., a copy of which is attached to this City of Fayetteville, Arkansas Page 1 Printed on 111612019 File Number: 2019-0596 Resolution, in the amount not to exceed $150,200.00 for additional services related to the development of final recommendations for the creation of a stormwater utility. Section 3: 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 2 Printed on 111WO19 Chris Brown City of Fayetteville Staff Review Form 2019-0596 Legistar File ID 11/5/2019 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: 10/17/2019 Approval of the Flood Management and Water Quality Funding Study recommendations as well as contract amendment 2 with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 (total contract amount $383,282) for additional services and approval of a budget adjustment 4470.621.8810-5 817.00 Account Number 17008.1 Project Number Budgeted Item? Yes Budget Impact: Sales Tax Capital Improvement Fund Stormwater Utility Feasibility Study Project Title Current Budget Funds Obligated Current Balance Does item have a cost? Yes Item Cost Budget Adjustment Attached? Yes Budget Adjustment Remaining Budget $ 233,082.00 $ 233,082.00 $ $ 150,200.00 $ 150,200.00 $ - V20180321 Purchase Order Number: Previous Ordinance or Resolution # 131-18 Change Order Number: Original Contract Number: Comments: Approval Date: CITY OF FAYETTEVILLE V4W ARKANSAS MEETING OF NOVEMBER 5, 2019 TO: Mayor and City Council THRU: Don Marr, Chief of Staff Garner Stoll, Development Services Director Chris Brown, City Engineer FROM: Alan Pugh, Staff Engineer DATE: October 16, 2019 CITY COUNCIL MEMO SUBJECT: Approval of the Flood Management and Water Quality Funding Study recommendations as well as contract amendment 2 with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 (total contract amount $383,282) for additional services and approval of a budget adjustment. RECOMMENDATION: Staff recommends approval of the Flood Management and Water Quality Funding Study recommendations as well as contract amendment 2 with Jacobs, formerly CH2M Hill, in an amount not to exceed $150,200 (total contract amount $383,282) for additional services and approval of a budget adjustment. The contract amendment would further refine the stormwater utility framework by developing final recommendations for the extent and level of service with associated rates, investigating and developing the credit program, investigating the necessary ordnance revisions associated with the program and other services. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with stormwater runoff. These issues stem from many sources including, but not limited to, aging infrastructure, maintenance of system capacity, manpower to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. In order to address these concerns, the City has historically funded maintenance and new projects directly from the Sales Tax Capital Improvement Program (CIP). However, there are many needs within the City that require funding from the CIP and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater issues. To develop a comprehensive solution, funding is required for manpower and equipment as well as multiple capital projects, some of which will require more than $1 million dollars for each project. Given the current funding levels, it would take many years to address just one of those projects. The City Council recognized these needs and approved moving forward with a feasibility study on June 5, 2018 via resolution 131-18 Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 DISCUSSION: The Flood Management and Water Quality Funding Study final draft is attached for review. However, in general it finds that the most equitable way to fund the Stormwater needs into the future is with a fee for service based on the customer's impact to the system. Impervious area was selected as the basis for the fee as it is directly related to the customer's impact to the system. Impervious area causes an increase in the amount of water entering the drainage system which can then increase the chance of flooding, stream bank erosion and sedimentation. Runoff from impervious area also carries pollutants that can impact water quality. These include, among others, sediment, herbicides and pesticides, meals and bacteria from things such as pet waste. For these reasons, impervious area is an equitable basis for the fee because larger developments, businesses and homes generate a greater need for Stormwater services because of the greater amount of runoff they generate. Given the feedback from stakeholders, residents and the council committee, Option A/B was selected as it provides an adequate level of service, extends services to areas of town not currently served and provides additional services not currently in the stormwater program. It includes a 20-year capital program schedule and routine maintenance. This maintenance would include cleaning/inspecting approximately 20% of the overall drainage system annually (approximately 400,000 LF), replacing 2.5% of the drainage system annually (approximately 8,500 LF), performing maintenance on residential detention basins (approximately 110 total) and providing for approximately $1.1 million annually for capital projects. Table ES-2. Tiered Rate Structure A tiered system based on impervious area was . - . selected as the most equitable way to distribute the ''°e cost of the program based on the items noted Monthly Fee R �Qut above. The proposed tiers can be found below, and additional information can be found within the Tier Range (SF of�,, .n attached study. Impervious Area) _'Funding' Tier 1(0 and 2,000) $2.31 CONTRACT AMENDMENT SUMMARY: The contract amendment with Jacobs will include Tier 2 (2,000 and 3,500) $5.09 several of the recommended additional tasks based on the outcome of the feasibility study and feedback Tier 3 (3,500 and 5,000) $7.86 received during the public outreach efforts. These Tier 4 (5,000 and 6,500) $10.64 tasks include additional stakeholder engagement and education, final stormwater program definition Tier 5 (6,500 and 8,000) $13.41 and rate analysis, refinement of stormwater customer billing database, development of a Tier 6 (over 8,000) $1.85/1,000 SF sustainable credit system, fee -in -lieu -of program a. tf there is on onsitestorm water man ogement assessment, review or ordinances and facility, there could be areducedfeebosdona intergovernmental agreements and overall project sustainable credit program established by the City. and quality management. • Stakeholder Engagement and Education: this item will include additional stakeholder engagement through workshops, public meetings, etc... in order to further educate the public and targeted stakeholders of the need for a sustainable stormwater program. • Stormwater program definition and rate analysis: this item will include final definition of the stormwater program extent and level of service as well as a final rate analysis. This will include a review of an alternate rate structure using percentage of impervious area to lot size rather than an absolute rate based on public feedback. • Stormwater Customer Billing Database: while the majority of this task will be handled by staff, Jacobs will provide support where necessary as guidance. The billing database will not be finalized until such time that a final decision is made on the billing mechanism and implementation. • Sustainable Credit System: the next phase of the contract will begin to define further the credit system and how it will apply to the various tiers shown in the current proposal • Fee -in -lieu -of Program Assessment: assessment of the potential for a fee -in -lieu -of improvement in instances where the project site may be limited and there is potential for the City or other parties to make regional improvements. • Ordinances and Intergovernmental Agreements: review ordinances to include all aspects of water quality and water quantity. This will include an analysis of the current exemptions of 1 and 2 family from the grading and drainage permit requirements as well as development of agreements with certain entities that would be included in the stormwater program. • Overall project quality and management: this item will include the overall project and quality management associated with the continuation of the project. BUDGET/STAFF IMPACT: The overall cost proposed amendment is $150,200 which includes additional tasks outlined above as well as those listed in more detail on the attached contract amendment. This would bring the total of all services to $383,282. A budget adjustment is proposed to move funding from two existing drainage projects into the stormwater utility study project. The overall cost of the additional services, if approved, would include additional staff and consultant time as well as additional consultant expenses. If approved, it is anticipated that these additional tasks could take up to one year, at which point an ordinance to establish the utility could be presented to the Council. An additional period would then be required to finalize the billing database and begin collecting the fee from users. Attachments: Final Draft Stormwater Study for Flood Management and Water Quality Funding Contract Amendment 2 to the Stormwater Feasibility Contract City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar) Budget Year Division Adjustment Number /Org2 ENGINEERING (621) 2022 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of Amendment 3 to the Stormwater Feasibility Study professional services contract with Jacobs, formerly CH21VI Hill, in an amount not to exceed $199,660 (total contract amount $582,942) and to approve a budget adjustment. RESOLUTION/ORDINANCE COUNCIL DATE: LEGISTAR FILE ID#: 7/5/2022 2022-0549 Ro-Uy Black 611512022 10:56 AM Budget Director Date TYPE: D - (City Council) JOURNAL #: GLDATE: 7/5/2022 CHKD/POSTED: TOTAL 199,660 199,660 v.20220516 Increase / (Decrease) Proiect.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 1010.090.6600-5314.00 199,660 - 17008 1 EX Professional Services 1010.001.0001-4999.99 - 199,660 RE Use Fund Balance - Current H:\Budget Adjustments\2022_Budget\CITY COUNCIL\07-05-22\2022-0549 BA Stormwater Feasability Study - Jacobs 1 of 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 143-24 File Number: 2024-1836 INTENT TO ENACT STORMWATER UTILITY FEE (RESOLUTION OF INTENT): A RESOLUTION OF INTENT TO ENACT A STORMWATER UTILITY ORDINANCE AND ESTABLISH A STORMWATER MANAGEMENT AND WATER QUALITY FUND, AUTHORIZE ADDITIONAL SERVICES RELATED TO IMPLEMENTATION AND PUBLIC OUTREACH, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Engineering Division, the City Council Stormwater Committee, and the City Council Water & Sewer Committee have studied our community's growing need to improve our stormwater management services; and WHEREAS, with the help of a professional consultant with extensive experience in creating Stormwater Utilities supported by appropriate and fair utility fees, these City Council committees and Engineering staff have devised the fairest Stormwater Management Utility Fee possible and recommend this ordinance to the full City Council for passage; and WHEREAS, the City Council has determined that the Stormwater Utility Fee is necessary to equitably and efficiently fund stormwater management services in order to provide for the safety, preserve the health, and promote the prosperity of Fayetteville residents, businesses, and institutions; and WHEREAS, the City Council also agrees with and adopts all the purposes explained in § 52.01 —Purpose of the proposed new code section; and WHEREAS, additional services authorized with this resolution of intent include development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts, which could include engaging a consultant or additional temporary staff. 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 expresses its intent to enact Chapter 52 Stormwater Management Utility Fee as shown in Exhibit A attached hereto and made a part hereof. 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, to appropriate funds for additional services including development of the billing database and a billing tool to allow property owners and residents to view their proposed fees. Page 1 Resolution: 143-24 File Number: 2024-1836 PASSED and APPROVED on May 21, 2024 Page 2 Attest: g�RK1/'TRE�9 Y 'G FAY ETTEVILLE Kara Paxton City rk Treasurer •' • O �. ' '/yl TO `` . CITY OF FAYETTEVILLE r4W ARKANSAS MEETING OF MAY 21, 2024 CITY COUNCIL MEMO 2024-1836 TO: Mayor Jordan and City Council THRU: Chris Brown, Public Works Director FROM: Alan Pugh, Staff Engineer SUBJECT: Approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment RECOMMENDATION: Staff recommends approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment. BACKGROUND: Like many cities throughout the state and nation, the City of Fayetteville experiences issues with management of its stormwater utility system. These issues stem from many sources including, but not limited to, compliance with the mandated Municipal Separate Stormwater System (MS4) requirements, aging infrastructure, maintenance of system capacity, personnel to perform systematic inspections and the lack of formal drainage systems in many older areas of the City. To address these concerns, the City has historically funded the stormwater program through the Sales Tax Capital Improvement Program (CIP) and the Street Fund for capital and operational/maintenance functions, respectively. However, there are many needs within the City that require funding from these sources and, at least in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater management within the City. To develop a comprehensive solution, additional funding is required for personnel and equipment as well as multiple capital projects, many of which will require more than $1 million dollars for each project. Given the current levels, it would take many years to address just one of those projects. In June, 2018, the City Council recognized these needs and approved with a consultant contract for a feasibility study (Resolution 131-18) and amended that agreement on two occasions (Resolutions 209-19 and 250-19) to provide additional investigation and details. That study was completed in August of 2019 and updated in 2022 with more recent program costs, impervious area and associated fees. The Council also passed a resolution of intent to establish a stormwater utility in July of 2022 (Resolution 157-22) DISCUSSION: The study recognized several areas that are currently underfunded, with the gap between the funding and actual costs to provide the services increasing every year. These needs include categories such as: Operation and Maintenance Engineering and Planning Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 Regulatory Compliance Capital Improvement Projects The costs associated with these categories were based on a level and extent of service agreed upon by council early in the program discussions as well as estimates of future regulatory compliance costs and expansion of the stormwater system as Fayetteville continues to grow. The costs associated with the recommended stormwater utility program can be found below. Program Costs Current Budget Additional Needs Total Program Operation and Maintenance $998,441 $1,508,000 $2,506,441 Engineering and Planning $67,000 $122,000 $189,000 Regulatory Compliance $193,000 $274,000 $467,000 Stormwater CIP $200,000 $913,400 $1,113,400 Administrative $0 $324,000 $324,000 Total $1,458,441 $3,141,400 $4,599,841 In response to the completed study and the need to find a sustainable funding source for the stormwater management program, City staff has drafted Chapter 52, Stormwater Management and Water Quality Utility, for consideration by City Council. The proposed ordinance would establish an equitable funding source based on impervious areas, which can be directly correlated to the impact of any given property to the stormwater system. The fee is proposed to be billed to sewer users with the City limits in a tiered system. Properties with greater impervious areas would have a higher fee than smaller properties due to the increased impact to the system. If there are multiple sewer customers on a single property, the total impervious area would be allocated between those customers and the appropriate portion of the total fee billed to each customer. Staff have worked closely with the City Attorney's office throughout the process and has modified the program to address the concerns that have been raised. The City Attorney has expressed concern over the legality of billing federal, state and county governments, and recommended that they be exempted. Staff has included a revised monthly fee that reflects this recommendation. The monthly fee is estimated to go to $1.35 per billing unit with those exemptions, which is a slight increase from the $1.30 per billing unit discussed previously. That change is reflected in the table below and in the attached draft of Chapter 52. The proposed fee would provide funding, in addition to that already being allocated from existing sources, to operate and maintain as well as improve and expand the stormwater system. The fee tiers are as shown below. Tier Range (by square footage Billing Units Initial Monthly Fee of impervious area on a $1.35 per unit) Tier property) 1 1052,000 11.25 I $1.69 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 2 >2,000 to <_ 3,500 2.75 $3.71 3 >3,500 to <_ 5,000 4.25 $5.73 4 >5,000 to <_ 6,500 5.75 $7.76 5 >6,500 to <_ 8,000 7.25 $9.79 6 >8,000 Per Calc Billing Unit x Rate This fee will close the existing funding gap and will fully fund a program to adequately manage stormwater within the City of Fayetteville. The proposed program presents a sustainable and equitable method of funding. The additional services authorized with this proposal would include development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts. This could include engaging a consultant and/or additional temporary staff. If a consultant is engaged, the contract for the services will be brought back to the council. However, council would be authorizing and to authorize the addition of up to 3.0 temporary full- time equivalent positions for the GIS and utility financial services to backfill existing employees related with the implementation of a Stormwater Utility with this resolution. This would bring the City one step closer to implementing the program. The anticipated schedule moving forward would be for the billing tool to be available to the public by October of this year and for the council to consider the ordinance adopting the program prior to the end of the year with the goal of the fee being included on sanitary sewer bills by August of 2025. Additional funding is anticipated to be necessary at the time of adoption of Chapter 52 for aerial imagery and impervious data in order to establish the baseline of impervious area for the program. BUDGET/STAFF IMPACT: The proposal would initially generate approximately $3 million in additional funding to be allocated to the Stormwater Management and Water Quality program. ATTACHMENTS: SRF (#3), BA (#4), Exhibit A - Stormwater Management and Water Quality - Final Draft (#5), 2024-4 Letter of Support_Stormwater Utility_BWA (#6) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Legislation Text File #: 2024-1836 Approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment A RESOLUTION OF INTENT TO ENACT A STORMWATER UTILITY ORDINANCE AND ESTABLISH A STORMWATER MANAGEMENT AND WATER QUALITY FUND, AUTHORIZE ADDITIONAL SERVICES RELATED TO IMPLEMENTATION AND PUBLIC OUTREACH, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the Engineering Division, the City Council Stormwater Committee, and the City Council Water & Sewer Committee have studied our community's growing need to improve our stormwater management services; and WHEREAS, with the help of a professional consultant with extensive experience in creating Stormwater Utilities supported by appropriate and fair utility fees, these City Council committees and Engineering staff have devised the fairest Stormwater Management Utility Fee possible and recommend this ordinance to the full City Council for passage; and WHEREAS, the City Council has determined that the Stormwater Utility Fee is necessary to equitably and efficiently fund stormwater management services in order to provide for the safety, preserve the health, and promote the prosperity of Fayetteville residents, businesses, and institutions; and WHEREAS, the City Council also agrees with and adopts all the purposes explained in § 52.01 — Purpose of the proposed new code section; and WHEREAS, additional services authorized with this resolution of intent include development of the billing database and billing tool that would allow property owners and residents to view their proposed fee as a portion of the continued public outreach efforts, which could include engaging a consultant or additional temporary staff. 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 expresses its intent to enact Chapter 52 Stormwater Management Utility Fee as shown in Exhibit A attached hereto and made a part hereof. Page 1 Resolution: 143-24 File Number. 2024-1836 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, to appropriate funds for additional services including development of the billing database and a billing tool to allow property owners and residents to view their proposed fees. Page 2 City of Fayetteville Staff Review Form 2024-1836 Item ID 5/21/2024 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Chris Brown 5/2/2024 ENGINEERING (621) Submitted By Submitted Date Division / Department Action Recommendation: Approval of a resolution of intent to adopt Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment 1010.090.6600-5314.00 Account Number 17008.1 Project Number Budgeted Item? Yes Does item have a direct cost? No Is a Budget Adjustment attached? Yes Budget Impact: General Fund Fund Stormwater Feasability Study Project Title Total Amended Budget Expenses (Actual+Encum) Available Budget Item Cost Budget Adjustment Remaining Budget $ 52,685.00 $ 52,684.64 0.36 $ 150,000.00 $ 150,000.36 V20221130 131-18, 209-19, Purchase Order Number: Previous Ordinance or Resolution # 250-19, 157-22 Change Order Number: Original Contract Number: Comments: Approval Date: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number ENGINEERING (621) /Org2 2024 Requestor: Chris Brown BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Approval of a resolution of intent to adopt of Chapter 52, Stormwater Management and Water Quality Utility, of the City of Fayetteville Code or Ordinances establishing a Stormwater Management and Water Quality Fund, authorization to perform additional services and approval of a budget adjustment COUNCIL DATE: 5/21/2024 ITEM ID#: 2024-1836 Nolly Black 51312024 77:77 RIn RESOLUTION/ORDINANCE Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL Account Number 150,000 150,000 Increase / (Decrease) Expense Revenue Project.Sub# Project Sub.Detl AT v.2024422 Account Name 1010.090.6600-5314.00 150,000 - 17008 1 EX Professional Services 1010.001.0001-4999.99 - 150,000 RE Use Fund Balance - Current I of 1 EXH I BIT A CHAPTER 52: STORMWATER MANAGEMENT UTILITY FEE ARTICLE I — GENERAL PROVISIONS 52.01 - Purpose The Stormwater Management Utility Fee is hereby established to create an equitable, efficient, and dedicated funding source for stormwater management services in the City of Fayetteville and provide for the safety, preserve the health and promote the prosperity of Fayetteville residents, businesses and institutions. The purposes for the Stormwater Management Fee further include: (A) To establish an equitable, fair, efficient and dedicated funding source for stormwater management services in the City of Fayetteville, Arkansas in addition to other taxpayer funds so that better long- range planning can be achieved. (B) To lessen or deter hazards to persons, property and the environment caused by increased runoff, obstructions to drainage and introduction of excessive silts, debris and pollutants into the drainage system, lakes, ponds, streams, rivers and other water bodies in the City of Fayetteville, and to otherwise promote the public health, safety and welfare of the public. (C) To fund the City's MS4 Stormwater Management Program for which it is expected to require a series of minimum control measures and report on their progress annually. In addition to new measures with each 5-year permit renewal, the City is projected to meet the population threshold of 100,000 by no later than 2030 and would be designated a medium MS4 community, triggering additional mandated activities. (D) To administer the National Flood Insurance Program and its Community Rating System which provides property owners with credits to reduce their flood insurance premiums, (E) To equitably and legally address drainage needs, also known as stormwater management, to protect public health, safety, and welfare and to reduce flooding on city streets thereby ensuring access of emergency vehicles to all properties within the City during flood events, by providing resources for construction, maintenance, and operation of stormwater facilities. (F) To implement additional watershed improvements of the City's waters in general, and specifically, that of Beaver Lake, the City's drinking water source, and the Illinois River. 52.02 - Definitions The following definitions shall apply to this chapter: Billing Unit shall mean the unit by which stormwater utility bills are calculated. A single billing unit shall be equal to 1,000 square feet of impervious area. Customer shall mean all persons or entities to whom the Stormwater Management Utility Fee is properly billed. A customer is further defined as a person or an entity billed for sanitary sewer services within the City limits. Credit shall mean a conditional, renewable reduction in the amount of the fee owed by a customer in accordance with the Sustainable Credit Framework. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY EXH I BIT A Public customer shall mean a local public agency including property of a school district within the City of Fayetteville. Public Stormwater System shall mean all stormwater conveyance systems located within the City of Fayetteville right-of-way or public drainage easements. All other stormwater conveyance systems shall be considered Private Stormwater Systems. Stormwater Management Utility Fee is the utility fee authorized by state law to provide necessary funds for a city to adequately address stormwater problems and needs through an equitable and fair utility fee derived from an expert analysis of the amount of impervious surface of each property which causes increased stormwater runoff that needs to be managed by the city to reduce or prevent flooding problems for our citizens and businesses. 52.03 - Applicability (A) The stormwater utility fee shall apply to all real property within the territorial jurisdiction of the City of Fayetteville for which sanitary sewer is provided by the City and upon which the City may constitutionally and legally assess such stormwater utility fee. (B) City -owned real property constituting the municipal drainage system, including public streets, public rights -of -way, drainage facilities, and related infrastructure is not served by a sanitary sewer and thus is not subject to a stormwater utility fee. (C) The requirements of this chapter do not relieve landowners, developers, other individuals, and entities from their responsibility for complying with the obligations of other portions of the Unified Development Code. 52.04-52.05 - Reserved ARTICLE II — STORMWATER MANAGEMENT UTILITY FUND 52.06 - Establishment of a Stormwater Management Utility Fund Pursuant to A.C.A. § 14-235-201 and other state law, the City of Fayetteville hereby creates a fund entitled the "Stormwater Management Utility Fund" for the purpose of segregating, identifying, and controlling revenues and expenses for operation of the City of Fayetteville Stormwater Management Program and other storm -related equipment, construction, materials, supplies or services attributable to these functions. The following revenue sources shall be deposited in said fund: (A) All revenue collected by or on behalf of the Stormwater Management Utility Fee. (B) Revenue from contributions in -lieu of onsite detention or from developers as contributions for required off -site drainage improvements, which may include bridge assessments. (C) Any interest earned on monies held in the Stormwater Management Utility Fund. (D) Any other revenue as may be determined appropriate by the City Council, including but not limited to general revenue, bond and grant proceeds. These revenues shall be used exclusively for the purposes listed in Article I — General Provisions. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -2- EXH I BIT A 52.07 — Authorization of a Stormwater Management Utility Fee The Stormwater Management Utility Fee is a utility fee that is hereby authorized to be charged on most real property within the City of Fayetteville, Arkansas. The fee shall be billable to the City's Sewer Utility customers. The rate structure for the utility fee shall: (A) Be based on the square footage of impervious area on a property, (B) Be owner / customer type (residential, commercial, etc..) -neutral, (C) Use a billing unit of 1,000 square feet of impervious area, (D) Slot property within the following six -tier billing unit structure: Tier Tier Range (by square footage of impervious area on a property) Billing Units Initial Monthly Fee (Billing Unit times Billing Rate) 1 Less than 2,000 1.25 $1.69 2 2,001 to 3,500 2.75 $3.71 3 3,501 to 5,000 4.25 $5.73 4 5,001 to 6,500 5.75 $7.76 5 6,501 to 8,000 7.25 $9.79 6 More than 8,000 See (F) See (F) (E) For Tiers 1 through 5, the billing unit in the chart shall be multiplied by the billing rate per unit rounded down to the nearest cent. (F) For Tier 6, properties with impervious area greater than 8,000 square feet, the actual impervious area is divided by 1,000 and multiplied by the monthly rate per billing unit. (G) The initial rate per billing unit shall be $1.35. This rate shall be increased by 3% per year beginning in the January 2026 billing period. No rates shall increase after 2031 without a further rate study. (H) Fees for sewer customers on properties with multiple sewer accounts shall be based on the individual sewer customer's percentage of total impervious area of the property or properties that may be attributed to the customer's account, included any areas of parking, common use areas, or other impervious area on the attributable properties. (1) Sewer customers or property owners may apply to have the fee for their property mitigated or reduced by the Sustainable Credit Framework. 52.08 — Initial Charge for the Stormwater Management Utility Fee The initial assessment of the Stormwater Management Utility Fee established shall be charged beginning one year after the effective date of the ordinance. 52.09 — Level and Extent of Service Policies The level of services funded by the Stormwater Management Utility Fees are dependent upon the amount of revenue generated by this Utility Fee, as well as possible general fund, sales tax bond, grants and other sources. These revenues shall fund the operation and maintenance, engineering and planning, regulatory compliance, stormwater capital improvements and administration of the City of Fayetteville's MS4 Program. The most recently adopted version of the City of Fayetteville Drainage Criteria Manual and Green Stormwater Practices will serve as the basis for the extent of stormwater service related to: (A) Public roads, public rights of way and public detention ponds(detention pond maintenance limited to activities necessary for proper functionality), CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY -3- EXH I BIT A (B) Drainage features within existing dedicated public easements (excluding private commercial detention ponds). (C) These services extend to the downstream end of the first private infrastructure connected to the City of Fayetteville's drainage system. (D) Prior to City accepting responsibility for any private stormwater system, its owner must dedicate a drainage easement to the City of sufficient size as determined by the City to allow access to and work on the drainage facilities with appropriate equipment. The City Engineer shall determine the sufficiency of the width and extent of easements. 52.10 - Reserved ARTICLE III -ADMINISTRATION 52.11- Administration and Appeals (A) The City Engineer is responsible for the interpretation and administration of this chapter. (B) Owners may appeal the initial amount of the Stormwater Management Utility Fee credit allowed denial of exemption or other dispute to the City Engineer, who shall determine the validity of any such appeal. The City Engineer shall set forth the requirements of any such appeal in the Drainage Criteria Manual. The City Engineer shall report the amount of any requested credit to be allowed in writing to the appellant and maintain such record by the Engineering Department for at least one year. (C) After exhausting administrative means with the City Engineer, customers desiring to further appeal of an impervious area estimate, fee or credit can be heard by The City Water and Sewer Committee pursuant to Chapter 155: Appeals." 52.12 —Sustainable Credit Framework (A) A Sustainable Credit Framework will be established by the City Council that provides all Stormwater Management Utility customers with an opportunity to reduce their normal fees. Customers may qualify for renewable fee reductions by demonstrating activities or stormwater practices that increase the water quality and thereby reduce the water quality and quantity burden imposed on the City of Fayetteville's drainage system. Activities eligible for credit include the following: (1) Compliance with an industrial stormwater permit (2) Public customers that establish contracts, or Interlocal Cooperation Agreements, with the City under § 25-20-104 will receive a credit recognizing the value of their public efforts to reduce stormwater runoff, in accordance with the terms of the interlocal agreement. (3) Using shared parking lots to minimize the creation of new impervious area (4) Property retrofits using Water Quality, Flood, and Tree Mitigation Measures from the Drainage Criteria Manual. (5) Attendance at approved Stormwater Education Program and Stormwater Stewardship Activities. (6) Demonstration of no direct discharge of stormwater. CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY QB EXH I BIT A (B) The final Sustainable Credit Framework, including appropriate application forms and instructions, will be developed and available to customers a minimum of 6 months in advance of the effective date of the initial collection of the Stormwater Management Utility Fee. 52.13 - Billing and collection The Stormwater Management and Fee shall be administered and collected in the same manner as the City's sewer utility. 52.14-52.15 - Reserved CHAPTER 52. STORMWATER, FLOOD MANAGEMENT UTILITY I&I Received By: Alan Pugh 05/14/2024 3:05 P.M. BEAVER WATERSiHED�ALLIANCE Becky Roark Executive Director, Beaver Watershed Alliance PO Box 762 Elkins, AR 72727 Becky@ beaverwatershedalliance.org 479-305-9701 April 10, 2024 City of Fayetteville Council Members 113 West Mountain St. Fayetteville, AR 72701 RE: Support for Stormwater Utility Dear City of Fayetteville Council Members, I am writing to express strong support for the implementation of a stormwater utility in Fayetteville and its positive impact on the Beaver Lake watershed. Beaver Watershed Alliance is a 501c3 nonprofit watershed group, formed in 2011, working to protect, enhance and sustain Beaver Lake and the integrity of its watershed. We work closely with the City of Fayetteville and residents to engage the public in conservation stewardship, work alongside city staff to install green infrastructure and have celebrated many success stories in water quality achievements over the past decade. However, with the growth outpacing the resources for water quality protection and restoration needs, we believe that this initiative is crucial for the future of water quality in the Town Branch watershed and West Fork watershed, which are major tributaries to Beaver Lake, and an additional safeguard to keep high -quality drinking water rates low for residents. Increased urbanization and land development have led to a rise in stormwater runoff, which poses significant threats to water quality and ecosystem health. Pollution from sediment, nutrients, and contaminants can degrade water quality, harm aquatic life, and jeopardize public health. Sediments are costly to the drinking water utilities to remove and dispose. By implementing a stormwater utility, Fayetteville can take proactive measures to mitigate the adverse effects of stormwater runoff and protect the integrity of the Beaver Lake watershed. The revenue generated from a stormwater utility fee could be invested in critical infrastructure projects, including green infrastructure, detention pond management, and erosion control measures, which help to reduce runoff volume and pollutant loads. Additionally, funding can support educational programs and outreach efforts to raise awareness about the importance of watershed stewardship and encourage sustainable practices among residents and businesses. We urge you, as members of the City of Fayetteville Council, to consider the positive outcomes from the implementation of a stormwater utility as a critical step towards safeguarding the Beaver Lake watershed and ensuring a sustainable future for generations to come. Your leadership and commitment to environmental stewardship will not only benefit our community and watersheds today but leave a legacy of conservation and responsible resource management in our region. Thank you for your attention to this matter, and we look forward to seeing the City of Fayetteville continue as a leader in stormwater management and water quality protection. Sincerely, Becky ark Executive Director Beaver Watershed Alliance becky@beaverwatershedalliance.org