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Home My WebLink About192-26 RESOLUTION Page 1 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Resolution: 192-26 File Number: 2026-2774 A RESOLUTION TO APPROVE AMENDMENT NO. 1 TO THE AGREEMENT WITH CAROLLO ENGINEERS, INC. IN AN AMOUNT NOT TO EXCEED $74,990.00 FOR ADDITIONAL SERVICES RELATED TO THE 2025 WATER AND SEWER RATE AND IMPACT FEE STUDIES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on May 6, 2025, the City Council passed Resolution 119-25 authorizing a contract with Carollo Engineers, Inc. to perform the 2025 Water and Sewer Rate and Impact Fee Studies; and WHEREAS, City staff recommend that the City amend the contract to provide for additional services outside the original project scope, including additional virtual and in-person meetings and workshops to complete the study, analysis of impact fee scenarios for multiple Capital Improvement Plan (CIP) alternatives, development of additional rate increase scenarios, additional water rate design effort, and an Asset Management Plan as required by the State of Arkansas Act 605. 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 Rawn to sign Amendment No. 1 to the agreement with Carollo Engineers, Inc. in an amount not to exceed $74,990.00 for additional services related to the 2025 Water and Sewer Rate and Impact Fee Studies. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget amendment, a copy of which is attached to this Resolution. PASSED and APPROVED on September 1, 2026 Approved: _______________________________ Molly Rawn, Mayor Attest: _______________________________ Kara Paxton, City Clerk Treasurer Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 Mailing address: 113 W. Mountain Street Fayetteville, AR 72701 www.fayetteville-ar.gov CITY COUNCIL MEMO 2026-2774 MEETING OF SEPTEMBER 1, 2026 TO: Mayor Rawn and City Council THROUGH: Tim Nyander, Utilities Director Keith Macedo, Chief Information Officer FROM: Corey Granderson, Utilities Engineer SUBJECT: Carollo Engineers, Inc. - Amendment No. 1 for 2025 Water and Sewer Rate and Impact Fee Studies RECOMMENDATION: Staff recommends approval of Amendment No. 1 to the professional services contract with Carollo Engineers, Inc. in an amount not to exceed $74,990.00 for the 2025 Water and Sewer Rate and Impact Fee Studies, and approval of a budget amendment. BACKGROUND: Interviews and a formal selection committee were held on March 31st, 2025, for RFP 25-02, Carollo Engineers, Inc. was selected to perform the Water & Sewer rate and impact fee studies for the City of Fayetteville. The City of Fayetteville recently adopted and implemented updated water and sewer rates, as well as water and sewer impact fees as recommended by Carollo. Near the end of this project City Staff directed Carollo to perform additional financial analyses and attend additional in-person meetings, including out-of-state travel expenses, driving the need for a contract amendment. DISCUSSION: The following list represents additional services requested by City Staff outside the original project scope, necessitating this amendment: • Additional virtual and in-person meetings and workshops to complete the study • Analysis of impact fee scenarios for multiple Capital Improvement Plan (CIP) alternatives • Development of additional rate increase scenarios • Additional water rate design effort • Asset Management Plan as required by the State of Arkansas Act 605 BUDGET/STAFF IMPACT: A budget amendment is attached to move funds from the Water System Rehabilitation and Sewer System Rehabilitation accounts to cover the cost of this amendment. ATTACHMENTS: 3. Staff Review Form, 4. Budget Amendment, 5. Amendment No. 1 Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 Page 1 City of Fayetteville, Arkansas Legislation Text 113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 File #: 2026-2774 A RESOLUTION TO APPROVE AMENDMENT NO. 1 TO THE AGREEMENT WITH CAROLLO ENGINEERS, INC. IN AN AMOUNT NOT TO EXCEED $74,990.00 FOR ADDITIONAL SERVICES RELATED TO THE 2025 WATER AND SEWER RATE AND IMPACT FEE STUDIES, AND TO APPROVE A BUDGET ADJUSTMENT WHEREAS, on May 6, 2025, the City Council passed Resolution 119-25 authorizing a contract with Carollo Engineers, Inc. to perform the 2025 Water and Sewer Rate and Impact Fee Studies; and WHEREAS, City staff recommend that the City amend the contract to provide for additional services outside the original project scope, including additional virtual and in-person meetings and workshops to complete the study, analysis of impact fee scenarios for multiple Capital Improvement Plan (CIP) alternatives, development of additional rate increase scenarios, additional water rate design effort, and an Asset Management Plan as required by the State of Arkansas Act 605. 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 Rawn to sign Amendment No. 1 to the agreement with Carollo Engineers, Inc. in an amount not to exceed $74,990.00 for additional services related to the 2025 Water and Sewer Rate and Impact Fee Studies. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget amendment, a copy of which is attached to this Resolution. Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 City of Fayetteville Staff Review Form 2026-2774 Item ID 9/1/2026 City Council Meeting Date - Agenda Item Only N/A for Non-Agenda Item Tim Nyander 8/11/2026 WATER SEWER (720) Submitted By Submitted Date Division / Department Action Recommendation: Staff recommends approval of Amendment No. 1 to the professional services contract with Carollo Engineers, Inc. in an amount not to exceed $74,990.00 for the 2025 Water and Sewer Rate and Impact Fee Studies, and approval of a budget amendment. Budget Impact: 5400.720.1840-5314.00 Water & Sewer Account Number Fund 02064.1 Water & Sewer Rate/Operations Study Project Number Project Title Budgeted Item?Yes Total Amended Budget $34,020.00 Expenses (Actual+Encum)$28,835.78 Available Budget $5,184.22 Does item have a direct cost?Yes Item Cost $74,990.00 Is a Budget Amendment attached?Yes Budget Amendment $74,990.00 $227.00 Remaining Budget $5,184.22 Purchase Order Number:2025-575 Previous Ordinance or Resolution #119-25 Change Order Number:1 Approval Date: Original Contract Number:2025-26 Comments:RFP 25-02 9/01/2026 Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 City of Fayetteville, Arkansas - Budget Amendment/Adjustment (Agenda) Budget Year Division /Org2 WATER SEWER (720) BA Number 2026 Requestor:Cheryl Partain BUDGET AMENDMENT/ADJUSTMENT DESCRIPTION: Staff recommends approval of Amendment No. 1 to the professional services contract with Carollo Engineers, Inc. in an amount not to exceed $74,990.00 for the 2025 Water and Sewer Rate and Impact Fee Studies, and approval of a budget amendment. COUNCIL DATE:9/1/2026 ITEM ID#:2026-2774 Holly Black 8/13/2026 12:08 PM Budget Division Date TYPE:D - (City Council) JOURNAL #: GLDATE: RESOLUTION/ORDINANCE CHKD/POSTED:/ v.2026714TOTAL-- Increase / (Decrease)Project.Sub# Account Number Expense Revenue Project Sub.Detl AT Account NameGLACCOUNTEXPENSEREVENUEPROJECTSUBATDESCRIPTION X 5400.720.1840-5314.00 74,990 -02064 1 EX Professional Services 5400.720.5700-5815.00 (37,495)-02017 1 EX Improvements - Sewer 5400.720.5600-5808.00 (37,495)-12009 1 EX Improvements - Water Line -- -- -- -- -- -- -- -- -- -- -- -- -- -- 1 of 1 Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 AMENDMENT NO. 1 For PROFESSIONAL SERVICES Between CITY OF FAYETTEVILLE, ARKANSAS And CAROLLO ENGINEERS, INC. Amendment 1 - Water and Sewer Rate and Impact Fee Studies (002).doc1 WHEREAS, the CITY OF FAYETTEVILLE and Carollo Engineers, Inc. (CONSULTANT) entered into an Agreement for Professional Services (AGREEMENT) on May 6, 2025; and, WHEREAS, the CITY OF FAYETTEVILLE has requested that CONSULTANT perform additional services outside the scope of the AGREEMENT. NOW THEREFORE, the following modifications will be made to the AGREEMENT to include the additional services requested: MODIFICATIONS: 1.Section 2.1.1 – the additional scope of services is included in the attached Appendix A-1. 2.Section 5.1 – the maximum not-to-exceed amount is increased from $176,358.00 to $251,348.00. Modifications to compensation are included in the attached Appendix A-1. IN WITNESS WHEREOF, the parties execute this Amendment No. 1 to be effective on , 2026. CITY OF FAYETTEVILLE, ARKANSAS CAROLLO ENGINEERS, INC. By : By: Mayor, Molly Rawn Jennifer Ivey, P.E. Title: Vice President By: Isalah Barnes Title: Associate Vice President END OF AMENDMENT NO. 1 FOR PROFESSIONAL SERVICES September 1 Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 903 East 104th Street, Suite 230, Kansas City, Missouri 64131 P. 816-942-5027 June , Mr. Corey W. Granderson, P.E. Utilities Engineer City of Fayetteville, Arkansas W Mountain Street Fayetteville, AR Subject: Water and Sewer Rate and Impact Fee Studies Amendment Dear Mr. Granderson: Per our discussions regarding the remaining tasks on the Water and Sewer Rate and Impact Fee Studies (Project) and the status of the budget, we have prepared this request for additional funds to complete the Project. The factors driving the need for the additional budget are the additional rate and financial analyses completed during the Project that were not anticipated in the original scope of services or that required more effort than initially anticipated. These tasks included: . Additional meetings and workshops to complete the Project . Impact fee scenarios for multiple Capital Improvement Plan (CIP) alternatives . Development of additional rate increase scenarios . Additional water rate design . Asset Management Plan as required by the State of Arkansas. SCOPE OF ADDITIONAL SERVICES Task 1 – Project Management and Coordination The Consultant provided the following additional services that were not originally included in this task: Additional virtual biweekly progress meetings with the City. A total of twelve ( ) progress meetings were assumed for the original scope. Additional dry run meetings with Mayor’s office. Task 4 – Impact Fees Update The Consultant calculated impact fees based on the assumption that the Noland Wastewater Treatment Plant (WWTP) would be funded through rates versus through the sales tax bond proceeds. The calculation included capital project cost, estimated additional capacity designated for growth, and capacity used by estimated additional equivalent dwelling units (EDUs) over the next years. Task 5 – Financial / Revenue Requirement Analysis The Consultant developed the following additional ‐year financial plan scenarios: Water baseline CIP with million in additional projects funded by debt o Varying levels of impact fee implementation Water baseline CIP with million in additional projects funded by cash o Varying levels of impact fee implementation Sewer baseline CIP with Noland WWTP funded by debt Sewer baseline CIP with Noland WWTP funded by cash Water mid‐year rate increase The mid‐year increase required modifications to the rate model to accurately reflect the revenues from the January increase and the subsequent July increase. There were also additional virtual meetings and workshops to discuss the results of the various scenarios with City staff and management. Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 Page carollo.com Task 7 – Water and Sewer Rate Design The Consultant developed an additional five‐year water rate schedule to capture a FY mid‐year rate increase to cover the full year of FY revenue requirements. The water and sewer rate survey was updated with the mid‐year rate increase and following four years of proposed rates. Task 9 – Asset Management Plan In order to comply with Act of , the final rate study report must include an asset management plan for the City’s water and sewer system. The Consultant will prepare the asset management plan to include as an appendix to the final rate study report. The plan will include the following items: Inventory of essential assets o The City’s fixed asset registry provided to Consultant as part of the rate and impact fee study analysis will be used. Assets will be categorized as essential and non‐essential. Non‐essential assets will be excluded from the data set. Examples of non‐essential assets include land, easements, studies, etc. o For each essential asset in the registry, the following information will be assigned: Asset type – major category and subcategory. Year installed. Vendor‐specified useful life, if available. If not available, useful life will be established based upon general industry accepted values with concurrence from the City. Anticipated date of replacement. Replacement cost estimate. The book value from the registry will be escalated to a Replacement Cost New (RCN) value using the Engineering News Record (ENR) Construction Cost Index (CCI). Projected consequence of failure, on a scale of to ( being worst case scenario, being minimal impact to service). Annual maintenance costs. In lieu of assigning maintenance costs to each asset listed in the registry, the annual maintenance budgets for major categories will be provided for the years ‐ based on the cost model from the rate study. Summary of water and sewer system assets (excluding Noland and West Side wastewater treatment plants). Information will be obtained from current GIS data sets available from the City’s website. o Water System Size/length of water mains Number of pump stations Number of storage tanks Number of valves Number of fire hydrants o Sewer System Size/length of sewer mains Number of lift stations Number of valves Number of manholes Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978 Page carollo.com Summary of the City’s plan for replacement of essential assets. o Reference annual maintenance budgets for water and sewer system. o Reference City Council approved CIP and categories dedicated to rehabilitation/replacement of essential assets. o Reference ongoing/upcoming programs the City is implementing, including, but not limited to: water service line replacement program, water meter replacement program, water transmission main condition assessments, sewer main cleaning and CCTV inspection program, and rehabilitation/replacement projects that will utilize sales tax bond revenues. Submit asset management plan appendix and to City for review and comment. Address City comments and submit full rate study report to Arkansas Natural Resources Commission (ANRC) before July , . ANRC submittal will include a certification from the Consultant that the study complies with Arkansas State law. FEE SUMMARY The total not‐to‐exceed budget for this Amendment is , as outlined in the table below. Billing for these tasks will be based on the hourly rates in the existing project agreement. Tasks Total Hours Labor Cost PECE Expenses Total Not‐ to‐Exceed Cost Task – Project Management and Coordination , , Task – Impact Fees Update , , Task – Financial / Revenue Requirement Analysis , , , Task – Water and Sewer Rate Design , , Task – Asset Management Plan , , , Total Requested Budget for Amendment ͈ͳͰ,͵͵ͬ Thank you for your continued collaboration with Carollo; we look forward to completing the Project. Sincerely, CAROLLO ENGINEERS, INC. Jennifer Ivey, P.E. Isalah Barnes Vice President Project Manager Docusign Envelope ID: 63870A09-A886-82E7-82C6-0235D745C978