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HomeMy WebLinkAbout93-25 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 93-25 File Number: 2025-196 STORMWATER UTILITY (PERSONNEL AND EQUIPMENT PLAN): A RESOLUTION TO APPROVE THE ADDITION OF NINE FULL TIME EQUIVALENT POSITIONS TO SUPPORT THE NEW STORMWATER UTILITY, TO ESTABLISH A NEW STORMWATER MANAGEMENT ENTERPRISE FUND, TO AUTHORIZE A LOAN FROM THE GENERAL FUND TO PROVIDE TEMPORARY FUNDING FOR THE STORMWATER UTILITY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville has experienced issues with management of its stormwater utility system that stem from many sources including, but not limited to, compliance with the mandated Municipal Separate Stormwater System 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; and WHEREAS, the City has historically funded the stormwater program through the Sales Tax Capital Improvement Program and the Street Fund for capital and operational/maintenance functions, respectively, and there are many needs within the City that require funding from these sources; and WHEREAS, in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater management within the City, and 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 for each project; and WHEREAS, on June 5, 2018, the City Council passed Resolution 131-18 that approved a consultant contract for a feasibility study and then amended that agreement with Resolution 209-19 and again with Resolution 250-19 to provide additional investigation and details; and WHEREAS, the study was completed in August of 2019 and updated in 2022 with more recent program costs, impervious area and associated fees; and WHEREAS, on July 5, 2022, the City Council passed Resolution 157-22 that declared the intent to establish a stormwater utility; and WHEREAS, on December 17, 2025, City Council approved Ordinance 6825 creating the stormwater utility. 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 the addition of nine full time equivalent positions to support the new stormwater utility and further approves the purchase of necessary equipment to support the approved positions. Page 1 Resolution: 93-25 File Number: 2025-196 Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the establishment of the "Stormwater Management Fund" to account for the collection of revenues from stormwater fees and exclusively use those funds for managing and improving stormwater infrastructure. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor or the Mayor's designee to loan cash from the General Fund to the Stormwater Management Fund until the revenues from stormwater fees are available to provide necessary reimbursements. Section 4: That the City Council of the City of Fayetteville, Arkansas further authorizes the Mayor or the Mayor's designee to repay the cash loaned to the Stormwater Management fund as soon as possible based on the collection of revenues from stormwater fees. Section 5: 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 April 1, 2025 Approved: Molly Rawn, Mayor Attest: �Ei FNYETfEVILL-'- C% �_ kANSP •?� �'oNCTONJ�„ Kara Paxton, City Clerk Treasurer Page 2 CITY OF FAYETTEVILLE ARKANSAS MEETING OF APRIL 1, 2025 CITY COUNCIL MEMO TO: Mayor Rawn and City Council THRU: Chris Brown, Public Works Director FROM: Alan Pugh, Staff Engineer SUBJECT: STORMWATER UTILITY (PERSONNEL AND EQUIPMENT PLAN): RECOMMENDATION: 2025-196 City staff recommends approval of a resolution creating 9 positions for the new stormwater utility and authorizing the purchase of necessary equipment, establishing a new Stormwater Management enterprise fund, authorizing a loan from the General Fund to provide temporary funding for the stormwater utility, and approving a budget adjustment. Equipment and Staffing: Approval to create 9.00 positions outlined within the approved stormwater utility, to purchase necessary equipment to support the approved positions and to approve a budget adjustment. Establishing Fund: Establishing a new enterprise fund (5450) titled "Stormwater Management" to account for the collection of revenues from stormwater fees and exclusively use those funds for managing and improving stormwater infrastructure. Loan agreement: The Mayor or Mayor's designee (Chief Financial Officer) is authorized to loan cash from the General Fund to the Stormwater Management Fund for monthly expenditures until stormwater revenues received are sufficient to provide necessary reimbursements. Loan repayments from the Stormwater Management Fund to the General Fund should be made as soon as practicable. The total loan liability amount due to the General Fund from the Stormwater Management Fund should be reduced to its lowest amount based on available cash by the end of each fiscal year. 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 Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 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). Ultimately, the Council unanimously approved ordinance 6825 creating the stormwater utility on December 17, 2024, allowing staff to move forward with implementation of the program. DISCUSSION: The approved program includes several additional staff positions and the necessary equipment to support them. Specifically, the program will add a 5-member transportation drainage crew, a Senior Utility Billing Coordinator, a GIS Analyst, a Staff Engineer, and a Public Works Inspector. The budget for each position is outlined below. To assist with the implementation, the GIS Analyst and Senior Utility Billing Coordinator positions will be filled as soon as possible after approval, while the other positions will be added later in the year. GIS Analyst General* SR Utility Billing Coordinator Water/Sewer* 1.00 92,521 1.00 79,982 69,394 59,989 Crew Leader Stormwater 1.00 70,321 17,582 IStaff Engineer Stormwater 1.00 121,830 30,460 Stormwater Inspector Stormwater 1.00 76,754 19,191 Maintenance Worker 4 Stormwater 2.00 127,780 31,950 Maintenance Worker 3 Stormwater 2.00 118,022 29,510 i *Expense will be allocated to Stormwater. 9.00 687,210 258,076 Each of these positions will play a crucial role in implementing and managing the program, as well as completing the tasks outlined in the program. These tasks include inspecting the existing storm sewer system, replacing failing portions of the storm sewer system, maintaining the expanding stormwater infrastructure, aiding in the implementation of capital improvement projects, monitoring city-wide impervious areas, ensuring accurate billing, addressing appeals filed by sewer customers, and answering general questions about the program. Since the work performed by these proposed positions must be related to Stormwater Management duties, the GIS Analyst (funded by the General Fund) and the Senior Utility Billing Coordinator (funded by the Water/Sewer Fund) will be paid from their respective sources and allocated to the Stormwater Fund as needed. It is anticipated that in 2025, their time spent on Stormwater duties will be 100%, and the ongoing allocation will be revised for 2026. Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 To support the successful operation and maintenance of the existing and future storm sewer system and complete the tasks set forth in the program, the purchase of the following equipment is necessary. This list, while not exhaustive, highlights the essential equipment needed to effectively implement the proposed program. Note that the cost of the equipment is approximate and subject to revision based on the order date and the exact cost breakdown at that time. I" Equipment Camera Van HV Dump Truck F550 Crew Cab 2025 Cost 398,000 250,000 100,200 T76 T4 Compact Track Loader + Attachments 99,300 E48 Excavator and Attachments 63,300 F150 Hybrid MT100 Mini Track Loader Tandem Axel Trailer VAC Truck ($798,000 / On -Hold) 51,000 34,200 18,000 1,014,000 This equipment will be ordered as soon as possible to ensure it is available for use, except for the VAC truck. Due to the significant investment required and the need to better understand its full usage, it is proposed that this service be outsourced at an hourly rate to local vendors. The effectiveness and cost -efficiency of the VAC truck will be evaluated at a later date, and a decision will be made whether to purchase the truck or continue outsourcing the service. BUDGET/STAFF IMPACT: Although the stormwater fee, which is expected to be implemented by August 2025, will ultimately fund these positions and equipment, some of these resources are needed sooner to facilitate the implementation process. Additionally, certain equipment must be ordered well in advance to ensure it is ready to support the staff once implementation begins. Therefore, the general fund will temporarily cover the costs for both the equipment and the positions until the stormwater fee is in effect. These expenses will be reimbursed by the utility fee once it is implemented. ATTACHMENTS: SRF (#3) , BA (#4) Mailing address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 == City of Fayetteville, Arkansas Y 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 - Legislation Text File #: 2025-196 STORMWATER UTILITY (PERSONNEL AND EQUIPMENT PLAN): A RESOLUTION TO APPROVE THE ADDITION OF NINE FULL TIME EQUIVALENT POSITIONS TO SUPPORT THE NEW STORMWATER UTILITY, TO ESTABLISH A NEW STORMWATER MANAGEMENT ENTERPRISE FUND, TO AUTHORIZE A LOAN FROM THE GENERAL FUND TO PROVIDE TEMPORARY FUNDING FOR THE STORMWATER UTILITY, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, the City of Fayetteville has experienced issues with management of its stormwater utility system that stem from many sources including, but not limited to, compliance with the mandated Municipal Separate Stormwater System 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; and WHEREAS, the City has historically funded the stormwater program through the Sales Tax Capital Improvement Program and the Street Fund for capital and operational/maintenance functions, respectively, and there are many needs within the City that require funding from these sources; and WHEREAS, in recent years, the funding for stormwater has been inadequate to comprehensively address stormwater management within the City, and 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 for each project; and WHEREAS, on June 5, 2018, the City Council passed Resolution 131-18 that approved a consultant contract for a feasibility study and then amended that agreement with Resolution 209-19 and again with Resolution 250-19 to provide additional investigation and details; and WHEREAS, the study was completed in August of 2019 and updated in 2022 with more recent program costs, impervious area and associated fees; and WHEREAS, on July 5, 2022, the City Council passed Resolution 157-22 that declared the intent to establish a stormwater utility; and WHEREAS, on December 17, 2025, City Council approved Ordinance 6825 creating the stormwater utility. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Page 1 Resolution: 93-25 File Number: 2025-196 Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the addition of nine full time equivalent positions to support the new stormwater utility and further approves the purchase of necessary equipment to support the approved positions. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves the establishment of the "Stormwater Management Fund" to account for the collection of revenues from stormwater fees and exclusively use those funds for managing and improving stormwater infrastructure. Section 3: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor or the Mayor's designee to loan cash from the General Fund to the Stormwater Management Fund until the revenues from stormwater fees are available to provide necessary reimbursements. Section 4: That the City Council of the City of Fayetteville, Arkansas further authorizes the Mayor or the Mayor's designee to repay the cash loaned to the Stormwater Management fund as soon as possible based on the collection of revenues from stormwater fees. Section 5: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a copy of which is attached to this Resolution. Page 2 Chris Brown Submitted By City of Fayetteville Staff Review Form 2025-196 Item ID 4/1/2025 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 3/13/2025 ENGINEERING (621) Submitted Date Division / Department Action Recommendation: Request to create 9.00 FTE positions for the new stormwater utility and purchase necessary equipment, to establish a new Stormwater Management enterprise fund, to authorize a loan from the General Fund to provide temporary funding for the stormwater utility, and to approve a budget adjustment. Budget Impact: 5450.740.xxxx-xxxx.xx Stormwater Management Account Number Fund Project Number Budgeted Item? No Does item have a direct cost? No Is a Budget Adjustment attached? Yes Purchase Order Number: Change Order Number: Original Contract Number: Comments: Project Title Total Amended Budget $ - Expenses (Actual+Encum) $ - r Available Budget Item Cost $ - Budget Adjustment $ 1,552,000.00 Remaining Budget 1,552,01C V20221130 Previous Ordinance or Resolution # Ord 6825 Approval Date: City of Fayetteville, Arkansas - Budget Adjustment (Agenda) Budget Year Division Adjustment Number STORMWATER MANAGEMENT (740) /Org2 2025 Requestor: Kevin Springer BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION: Request to create 9 positions for the new stormwater utility and purchase necessary equipment, to establish a new Stormwater Management enterprise fund, to authorize a loan from the General Fund to provide temporary funding for the stormwater utility, and to approve a budget adjustment. RESOLUTION/ORDINANCE COUNCIL DATE: 4/1/2025 ITEM ID#: 2025-196 Kevin Springer 317312025 72: q0 Pln Budget Division Date TYPE: D - (City Council) JOURNAL #: GLDATE: CHKD/POSTED: TOTAL 2,566,000 2,566,000 v.2025211 Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 5450.740.5900-4434.00 - 412,300 RE N/A 5450.740.5900-4434.01 - 161,100 RE N/A 5450.740.5900-4434.03 - 379,500 RE N/A 5450.740.5900-4434.04 - 23,100 RE N/A 5450.740.5900-4999.99 - 576,000 RE Use Fund Balance - Current 5450.740.5900-5100.00 36,999 - EX Salaries/Wages - FT, Regular 5450.740.5900-5105.00 2,295 - EX Payroll Taxes - FICA 5450.740.5900-5105.01 538 - EX Payroll Taxes - Medicare 5450.740.5900-5108.00 5,124 - EX Emp Insurance - Health 5450.740.5900-5108.01 123 - EX Emp Insurance - LTD 5450.740.5900-5108.02 4 - EX Emp Insurance -ADD 5450.740.5900-5108.03 128 - EX Emp Insurance - Life 5450.740.5900-5109.06 4,440 - EX Pension - Retirement Savings 5450.740.5900-5120.00 69,394 41002 5450.1701 EX Personnel Other - Contra 5450.740.5900-5120.00 59,989 41002 5450.7101 EX Personnel Other - Contra 5450.740.5900-5200.00 800 - EX Supplies - Office/Printing 5450.740.5900-5209.00 12,904 - EX Software 5450.740.5900-5210.00 30,572 - EX Minor Equipment 5450.740.5900-5302.00 350 - EX Uniforms/Personal - Equipment loft Increase / (Decrease) Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account Name 5450.740.5900-5304.00 4,000 - EX Travel & Training 5450.740.5900-5309.02 6,336 - EX Lease - Software 5450.740.5900-5310.01 300 - EX Utilities - Telephone 5450.740.5930-5100.00 55,028 - EX Salaries/Wages - FT, Regular 5450.740.5930-5105.00 3,414 - EX Payroll Taxes - FICA 5450.740.5930-5105.01 799 - EX Payroll Taxes - Medicare 5450.740.5930-5108.00 12,810 - EX Emp Insurance - Health 5450.740.5930-5108.01 184 - EX Emp Insurance - LTD 5450.740.5930-5108.02 10 - EX Emp Insurance - ADD 5450.740.5930-5108.03 191 - EX Emp Insurance - Life 5450.740.5930-5109.06 6,606 - EX Pension - Retirement Savings 5450.740.5930-5210.00 500 - EX Minor Equipment 5450.740.5930-5302.00 5,500 - EX Uniforms/Personal - Equipment 5450.740.5930-5310.01 300 - EX Utilities - Telephone 5450.740.5930-5331.00 32,000 - EX Motorpool Charges - Maintenance 5450.740.5930-5331.01 159,000 - EX Motorpool Charges - Replacement 5450.740.5930-5331.02 24,200 - EX Motorpool Charges - Shop Overhead 5450.740.5930-5331.03 3,162 - EX Motorpool Charges - Shop OH Insurance 5450.740.5900-7602.70 1,014,000 - 59700 5450 EX Transfers To Funds - Shop 9700.770.1920-6602.44 - 1,014,000 97000 5450.7400 RE Transfer from Fund - Stormwater 9700.770.1920-5802.00 1,014,000 - 97000 5450.7400 EX Vehicles & Equipment - base 1010.170.1720-5100.00 51,278 - 41002 5450.1701 EX Salaries/Wages - FT, Regular 1010.170.1720-5105.00 3,180 - 41002 5450.1701 EX Payroll Taxes - FICA 1010.170.1720-5105.01 744 - 41002 5450.1701 EX Payroll Taxes - Medicare 1010.170.1720-5108.00 7,686 - 41002 5450.1701 EX Emp Insurance - Health 1010.170.1720-5108.01 170 - 41002 5450.1701 EX Emp Insurance - LTD 1010.170.1720-5108.02 5 - 41002 5450.1701 EX Emp Insurance -ADD 1010.170.1720-5108.03 177 - 41002 5450.1701 EX Emp Insurance - Life 1010.170.1720-5109.06 6,154 - 41002 5450.1701 EX Pension - Retirement Savings 1010.170.1720-5120.00 (69,394) - 41002 5450.1701 EX Personnel Other - Contra 5400.710.1810-5100.00 43,462 - 41002 5450.7101 EX Salaries/Wages - FT, Regular 5400.710.1810-5105.00 2,695 - 41002 5450.7101 EX Payroll Taxes - FICA 5400.710.1810-5105.01 631 - 41002 5450.7101 EX Payroll Taxes - Medicare 5400.710.1810-5108.00 7,686 - 41002 5450.7101 EX Emp Insurance - Health 5400.710.1810-5108.01 144 - 41002 5450.7101 EX Emp Insurance - LTD 5400.710.1810-5108.02 5 - 41002 5450.7101 EX Emp Insurance -ADD 5400.710.1810-5108.03 150 - 41002 5450.7101 EX Emp Insurance - Life 5400.710.1810-5109.06 5,216 - 41002 5450.7101 EX Pension - Retirement Savings 5400.710.1810-5120.00 (59,989) - 41002 5450.7101 EX Personnel Other - Contra 2of2