HomeMy WebLinkAboutOrdinance 6844113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6844
File Number: 2025-102
ADMINISTRATIVE ITEM (AMEND CHAPTER 51— WATER AND SEWERS):
AN ORDINANCE TO AMEND CHAPTER 51, WATER AND SEWERS OF THE FAYETTEVILLE CODE OF
ORDINANCES TO PROVIDE FOR INCREASES IN WATER AND SEWER TAP CONNECTION FEES
WHEREAS, Fayetteville has a long and well -established history of charging user fees for a number of City services,
including those associated with development review; and
WHEREAS, in February 2023 the City Council approved a contract with MGT for an updated user fee study whose
core objectives include evaluating and improving the current fee structure, defining the cost of City services, and
recommending fees based on the cost of service; and
WHEREAS, MGT completed the review -related services, the hourly rates of staff providing those services, and the
time providing each service in six areas that include Building Safety, Business Licensing, Engineering, Fire, Planning,
and Water & Sewer; and
WHEREAS, the most prominent finding of the study is a significant discrepancy between the cost of services provided
and the user fees charged, totaling approximately $2,679,307.00 and for those fees associated with the Utility
Department's water and sewer tap connection fees, the recovered cost of the service and associated materials was 22%;
and
WHEREAS, on July 2, 2024 the City Council passed Resolution 182-24 expressing intent to implement the study's
findings; and
WHEREAS, the proposed amendments to Chapter 51, Water and Sewer include water and sewer tap connection fees
increasing by 1/3rd of the recommended fee amount to ease the impact of these increases after 20 years without change,
new fees for connections of depth greater than five feet, and that street cuts and bores remove the distinction between
those within the City and those outside the City, with most fees increasing by 1/3rd of the recommended fee amount.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 51.114 (A) and enacts a
replacement § 51.114 (A) as follows:
51.114 Water, Sewer Tap Connection Fees
Page 1
Ordinance: 6844
File Number: 2025-102
(A) All service connections made on city owned water and sewer mains shall be made by the Water and Sewer
Division. Such connections shall be made upon payment to the city of the following fees:
Fee Description
INSIDE CITY
OUTSIDE CITY
s/s-inch Water
$810.00
$997.00
/s-inchDouble Water
$957.00
$1,144.00
1-inch Water
$1,087.00
$1,273.00
2-inch Water
$2,249.00
$2,436.00
4-inch Sewer
$855.00
$1,009.00
Cost Per Additional Depth
(Exceeding 5-foot, up to 10-foot)
$606.00
Cost Per Additional Depth
(Exceeding 10-foot)
Actual Cost
Cost Per Additional Length (Per
Foot Exceeding 60 feet)
$40.00
Street Cut
$1,136.00
Street Bore
$560.00
Cost per Additional Lane
$213.00
Gravel Road Crossing/Cut
$774.00
PASSED and APPROVED on February 18, 2025
Approved:
Molly Rawn, Mayor
Attest:
am
Kara Paxton, City Clerk Treasurer
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas.
Amount Paid: $494.55
Page 2
CITY OF
FAYETTEVILLE
ARKANSAS
MEETING OF FEBRUARY 18, 2025
CITY COUNCIL MEMO
2025-102
TO: Mayor Rawn and City Council
THRU: Keith Macedo, Interim Chief of Staff
FROM: Jonathan Curth, Development Services Director
SUBJECT: Administrative Item (Amend Chapter 51 — Water and Sewers): Submitted by CITY
STAFF. The proposed code change will amend 51.114, Water, Sewer Tap Connection
Fees to modify the existing fee schedule and fees.
RECOMMENDATION:
City staff recommend approval of an amendment to Chapter 51, Water and Sewers, of the Code of Ordinances
as described in Exhibit `A'.
BACKGROUND:
The City has a long and well -established history of charging user fees for a number of City services, including
those associated with development review. Documentation from as early as the 1980s indicates codified fees
for project classes that are still familiar today: lot splits, preliminary plats, large scale developments, and
others. In mid-1991, a formal user fee study was initiated. Following a change in the form of Fayetteville's form
of municipal government between 1991 and 1992, implementation was delayed, with only portions adopted in
the mid-1990s.
Subsequently in 2003, Council approved a contract for a second user fee study. This recommended fees that
accurately reflect the cost of services. During the same period, Council adopted a user fee policy which include
among its tenets the evaluation of user fees on a three-year cycle, an annual adjustment of fees based on the
All Urban Consumer Price Index, fees that "should be levied fairly and equitably and properly to account for the
benefit received by each user", and a standard that "Development charges (annexation, rezoning, lot split,
construction plan review, infrastructure, stormwater, etc.) shall recover 100% of the full cost of providing the
services unless reduced or waived by City Council." Despite the user fee study's proposal and the policy's
adoption, no discernable action was taken, with many fees from 2024 remaining as they existed in 2004.
In the intervening years, several new development fees were introduced or saw one-off changes as additional
services were offered or specific issues of recovery were identified, but no concerted study of development
review fees occurred.
More recently, in February 2023 the City Council approved a contract with MGT for an updated user fee study.
Core objectives of the study include evaluating and improving the current fee structure, defining the cost of City
services, and recommending fees based on the cost of service.
MGT completed a review of City development review -related services, the hourly rates of staff providing those
services, and the time providing each service in six areas. These include Building Safety, Business Licensing,
Engineering, Fire, Planning, and Water & Sewer. The most prominent finding of the study is a significant
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
discrepancy between the cost of services provided and the user fees charged, totaling approximately
$2,679,307. For those fees associated with the Utility Department's water and sewer tap connection fees, the
recovered cost of the service and associated materials was 22%.
Recovery `23/'24 Revenue Cost Subsidy
Water & Sewer: 22% $156,975 $698,021 $541,046
All User Fees: 55% $2,679,307 $4,843,998 $2,164,691
This information along with the larger user fee study was shared with the City Council at their June 25th
Agenda Session, after which a resolution was adopted at the Council's July 2nd meeting expressing intent to
implement the study's findings (attached; Resolution 182-24).
DISCUSSION:
The proposed amendment to Chapter 51, Water and Sewer includes the following:
• Water and sewer tap connection fees will increase by 1/3rdof the recommended fee amount to mitigate
the potential for shock following approximately 20 years without change
o Increases vary from $385.00-$1,186.00
o Additional recommended fee amounts will occur by thirds in subsequent years
• New fees are proposed for connections of depth greater than five feet
o These fees are proposed to be actual cost when exceeding 10 feet rather than as an increment
due to clear costs of equipment and material
• Street cuts and bores removed the distinction between those within the City and those outside the City,
with fees increasing by 1/3rdof the recommended fee amount
o Increases vary from $199.00-$561.00
o Additional recommended fee amounts will occur by thirds in subsequent years
Recognizing the scope of the changes proposed in the overall user fee study, staff is recommending a
staggered implementation of fees, with those proposed herein to be effective at the standard effectiveness
date of an ordinance.
BUDGET/STAFF IMPACT:
The City will be reimbursed for more of its costs in providing municipal services. 2023/2024 revenue data
suggests potential additional recovery of $150,000 to $200,000 depending on 2025 volumes.
ATTACHMENTS: Exhibit A (#3), 51.114 Water Sewer Tap Connection Fees - Strikethrough & Redlines (#4),
182-24 Resolution (#5)
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 #: 2025-102
Administrative Item (Amend Chapter 51— Water and Sewers): Submitted by CITY STAFF. The
proposed code change will amend 51.114, Water, Sewer Tap Connection Fees to modify the
existing fee schedule and fees.
AN ORDINANCE TO AMEND CHAPTER 51, WATER AND SEWERS OF THE FAYETTEVILLE
CODE OF ORDINANCES TO PROVIDE FOR INCREASES IN WATER AND SEWER TAP
CONNECTION FEES
WHEREAS, Fayetteville has a long and well -established history of charging user fees for a number of
City services, including those associated with development review; and
WHEREAS, in February 2023 the City Council approved a contract with MGT for an updated user fee
study whose core objectives include evaluating and improving the current fee structure, defining the cost
of City services, and recommending fees based on the cost of service; and
WHEREAS, MGT completed the review -related services, the hourly rates of staff providing those
services, and the time providing each service in six areas that include Building Safety, Business
Licensing, Engineering, Fire, Planning, and Water & Sewer; and
WHEREAS, the most prominent finding of the study is a significant discrepancy between the cost of
services provided and the user fees charged, totaling approximately $2,679,307.00 and for those fees
associated with the Utility Department's water and sewer tap connection fees, the recovered cost of the
service and associated materials was 22%; and
WHEREAS, on July 2, 2024 the City Council passed Resolution 182-24 expressing intent to implement
the study's findings; and
WHEREAS, the proposed amendments to Chapter 51, Water and Sewer include water and sewer tap
connection fees increasing by 1/3rd of the recommended fee amount to ease the impact of these
increases after 20 years without change, new fees for connections of depth greater than five feet, and
that street cuts and bores remove the distinction between those within the City and those outside the
City, with most fees increasing by 1/3rd of the recommended fee amount.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 51.114 (A) and
enacts a replacement § 51.114 (A) as follows:
Page 1
Ordinance: 6844
File Number: 2025-102
51.114 Water, Sewer Tap Connection Fees
(A) All service connections made on city owned water and sewer mains shall be made by the Water and
Sewer Division. Such connections shall be made upon payment to the city of the following fees:
Fee Description
INSIDE CITY
OUTSIDE CITY
%-inch Water
$810.00
$997.00
%-inch Double Water
$957.00
$1,144.00
1-inch Water
$1,087.00
$1,273.00
2-inch Water
$2,249.00
$2,436.00
4-inch Sewer
$855.00
$1,009.00
Cost Per Additional Depth
(Exceeding 5-foot, up to 10-foot)
$606.00
Cost Per Additional Depth
(Exceeding 10-foot)
Actual Cost
Cost Per Additional Length (Per
Foot Exceeding 60 feet)
$40.00
Street Cut
$1,136.00
Street Bore
$560.00
Cost per Additional Lane
$213.00
Gravel Road Crossing/Cut
$774.00
Page 2
51.114 Water, Sewer Tap Connection Fees
(A) All service connections made on city owned water and sewer mains shall be made by the Water and Sewer
Division. Such connections shall be made upon payment to the city of the following fees:
Fee Description
INSIDE CITY
OUTSIDE CITY
%-inch Water
$810.00
$997.00
%-inch Double Water
$957.00
$1144.00
1-inch Water
$1087.00
$1,273.00
2-inch Water
$2,249.00
$2,436.00
4-inch Sewer
$855.00
$1,009.00
Cost Per Additional Depth
(Exceeding 5-feet, up to 10-
feet)
$606.00
Cost Per Additional Depth
(Exceeding 10-feet)
Actual Cost
Cost Per Additional Length
(Per foot exceeding 60-feet)
$40.00
Street Cut
$1,136.00
Street Bore
$560.00
Cost per Additional Lane
$213.00
Gravel Road Crossing/Cut
$774.00
(B) Fees for connections where unusual field conditions exist shall be determined by the City Engineer. Unusual
field conditions would include but not be limited to the presence of rock, any state or U.S. Highway crossing,
extra thick concrete or asphalt paving, or conflicts with other utilities. The City Engineer may also modify the
stated fees if there are a number of taps to be made in the same location, or if a plumber or other contractor
is allowed to do the excavation.
(Code 1965, §21-2; Ord. No. 2676, 11-4-80; Ord. No. 2746, 8-4-81; Ord. No. 2895, 2-15-83; Ord. No. 3088, 5-7-85;
Ord. No. 4066, §1, 11-4-97; Code 1991, §51.114)
(Supp. No. 34)
Created: 2024-08-27 12:27:24 [EST]
Page 1 of 1
51.114 Water, Sewer Tap Connection Fees
(A) All service connections made on city owned water and sewer mains shall be made by the Water and Sewer
Division. Such connections shall be made upon payment to the city of the following fees:
Fee Description
INSIDE CITY
OUTSIDE CITY
%-inch Water
c"� 810.00
Cn� 997.00
%-inch Double
Water
$475.00957.00
$525.00 1144.00
1-inch Water
$525.00 1087.00
$57-5, W1 273.00
2-inch Water
c1,200.- ^ 2 249
c, ' 2 436
4-inch Sewer
c"� 855.00
_ 1 009.00
Cost Per Additional Depth
$606.00
(Exceeding 5-feet, up to 10-
feet
Cost Per Additional Depth
Actual Cost
(Exceeding 10-feet)
Cost Per Additional Length
$40.00
Per Foot
&t-+-Street Cut
00 1 136.00
c
Cry -Street Bore
$'� 560.00
r'
State aT
i
r
Cost per Additional Lane
213.00
Gravel Road Crossing/Cut
774.00
(B) Fees for connections where unusual field conditions exist shall be determined by the City Engineer. Unusual
field conditions would include but not be limited to the presence of rock, any state or U.S. Highway crossing,
extra thick concrete or asphalt paving, or conflicts with other utilities. The City Engineer may also modify the
stated fees if there are a number of taps to be made in the same location, or if a plumber or other contractor
is allowed to do the excavation.
(Code 1965, §21-2; Ord. No. 2676, 11-4-80; Ord. No. 2746, 8-4-81; Ord. No. 2895, 2-15-83; Ord. No. 3088, 5-7-85;
Ord. No. 4066, §1, 11-4-97; Code 1991, §51.114)
(Supp. No. 34)
Created: 2024-08-27 12:27:24 [EST]
Page 1 of 1
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 182-24
File Number: 2024-222
IMPLEMENT USER FEE STUDY RECOMMENDATIONS (RESOLUTION OF INTENT):
A RESOLUTION OF INTENT TO IMPLEMENT THE RECOMMENDATIONS OF THE 2024 USER FEE STUDY
INCLUDING A FULL COST RECOVERY MODEL, ESTABLISHMENT OF A MASTER FEE SCHEDULE, AND
ANNUAL ADJUSTMENT
WHEREAS, Fayetteville has a long and well -established history of charging user fees for a number of City services,
including those associated with development review; and
WHEREAS, documentation from as early as the 1980s indicates codified fees for project classes that are still familiar
today: lot splits, preliminary plats, large scale developments, and others; and
WHEREAS, in mid-1991, a formal user fee study was initiated but, following a change in the form of Fayetteville's
form of municipal government between 1991 and 1992, implementation was delayed with only portions adopted in the
mid-1990's; and
WHEREAS, in 2003, the City Council approved a contract for a second user fee study, an element of which focused
on Planning and Building Safety; and
WHEREAS, in June 2005, the City Council approved a User Fee Cost Recovery Policy for City Services, but no
discernable action was taken, with many fees from 2024 remaining as they existed in 2004; and
WHEREAS, in February 2023, the City Council approved a contract with MGT for an updated user fee study whose
core objectives include evaluating and improving the current fee structure, defining the cost of City services, and
recommending fees based on the cost of service.
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 implement the
recommendations of the 2024 User Fee Study including a full cost recovery model, establishment of a master fee
schedule, and annual adjustment.
PASSED and APPROVED on July 2, 2024
Page 1
Resolution: 182-24
File Number: 2024-222
Page 2
Attest: ; ����• i 1 F� "'�►,•
Kara Paxton, City Cl rk Treasurer �P);=
Cj
.��� ��NG i 0IA
Form 0.54
Account #: NWCL5004205
Company: CITY OF FAYETTEVILLE-CLERKS OFFI
113 W MOUNTAIN
FAYETTEVILLE, AR 72701
Ad number #: 483994
PO #:
Matter of: ORD 6844
AFFIDAVIT • STATE OF ARKANSAS
ECEIVE
02/25/2025
CITY OF FAYETTEV L_=
CITY CLERK'S CUICE
I, Maria Hernandez -Lopez , do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette, a daily
newspaper printed and published in WASHINGTONBENTON county, State of ARKANSAS; that I was so related to
this publication at and during the publication of the annexed legal advertisement in the matter of
ORD 6844
Pending in the court, in said County, and at the dates of the several publications of said advertisement stated below, and
that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County,
that said newspaper had been regularly printed and published in said county, and had a bona fide circulation therein for
the period of one month before the date of the first publication of said advertisement; and that said advertisement was
published in the regular daily issues of said newspaper as stated below.
And that there is due or has been paid the NWA Democrat Gazette for publication the sum of $494.55.
(Includes $0.00 Affidavit Charge).
NWA Democrat Gazette 02123125
Legal Clerk
State of ARKANSAS, County of Sebastian
Subscribed and sworn to before me on this 24th day of February, 2025
T_Iba�L_
TARY PUBLIC
2/25/25, 11:32AM edition.nwaonline.com/northwest-arkansas-democrat-gazette/20250223
1
Ordinance: 6844
File Number: 2025-102
ADMINISTRATIVE ITEM (AMEND CHAPTER 51 — WATER AND SEWERS):
AN ORDINANCE TO AMEND CHAPTER 51, WATER AND SEWERS OF THE FAYETTEVILLE CODE
OF ORDINANCES TO PROVIDE FOR INCREASES IN WATER AND SEWER TAP CONNECTION FEES
WHEREAS, Fayetteville has a long and well -established history of charging user fees for a
number of City services. including those associated with development review: and
WHEREAS, in February 2023 the City Council approved a contract with MGT for an updat-
ed user fee study whose core objectives include evaluating and improving the current fee
structure. defining the cost of City services, and recommending fees based on the cost of
service: and
WHEREAS, MGT completed the review -related services, the hourly rates of staff providing
those services, and the time providing each service in six areas that include Building Safety,
Business Licensing. Engineering, Fire. Planning, and Water & Sewer: and
WHEREAS, the most prominent finding of the study is a significant discrepancy between the
cost of services provided and the user fees charged. totaling approximately $2.679,307.00
and for those fees associated with the Utility Department's water and sewer tap connection
fees. the recovered cost of the service and associated materials was 22%: and
WHEREAS, on July 2, 2024 the City Council passed Resolution 182-24 expressing intent to
implement the study's findings: and
WHEREAS, the proposed amendments to Chapter 51, Water and Sewer include water and
sewer tap connection fees increasing by 1/3rd of the recommended fee amount to ease
the impact of these increases after 20 years without change. new fees for connections of
depth greater than five feet, and that street cuts and bores remove the distinction between
those within the City and those outside the City, with most fees increasing by 1/3rd of the
recommended fee amount.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTE-
VILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 51.114
A) and enacts a replacement § 51.114 (A) as follows:
51.114 Water, Sewer Tap Connection Fees
A) All service connections made on city owned water and sewer mains shall be made by
the Water and Sewer Division. Such connections shall be made upon payment to the city of
the following fees:
Fee Description
INSIDE CITY
OUTSIDE CITY
5/8-inch Water
S810.00
S997.00
5/8-inch Double Water
S957.00
$1,144.00
1-inch Water
S1,087.00
$1,273.00
2-inch Water
S2,249.00
$2,436.00
4-inch Sewer
S855.00
$1,009.00
Cast Per Additional Depth
(Exceeding 5-foot, up to 10-foot)
S606.00
Cast Per Additional Depth
(Exceeding 10-foot)
Actual Cost
Cost Per Additional Length (Per
Foot Exceeding 60 feet)
S40.00
Street Cut
S1,136.00
Street Bore
S560.00
Cost per Additional Lane
S213.00
Gravel Road Crossing/Cut
S774.00
PASSED and APPROVED on February 18, 2025
Approved: Attest:
Molly Rawn. Mayor Kara Paxton. City Clerk Treasurer
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville. Arkansas.
Amount Paid: S494.55
https://edition.nwaonline.com/northwest-arkansas-democrat-gazette/20250223 1 /1
