HomeMy WebLinkAbout1983-03-31 Minutes1
1
MINUTES OF MEETING OF WATER & SEWER COMMITTEE AND BOARD OF DIRECTORS
A combined meeting of the Water & Sewer Committee and the Board of
Directors was held on Thursday, March 31, 1983, at 9:00 a.m., at the Chamber
of Commerce.
PRESENT: Mayor Noland, Directors Bumpass, Johnson, Osborne, Orton, and
Lancaster; City Manager Grimes, City Engineer Bunn, City Clerk Kelly; members
of the press and audience.
OTHERS PRESENT: Mr. Vernon Rowe (McClelland Consulting Engineers); Mr. Richard
Bailey (Campbell Soup); Mr. Mark McBride (Stephens, Inc.); Mr. Joe Brown and
Mr. Blaine Bickel (Black & Veatch); Mr. Dale Christy (Chamber of Commerce).
ABSENT: Director Sharp
Mayor Noland called the meeting to order and stated that the purpose of
this meeting was to consider the sewer rate increase, as proposed by consultants,
Black & Veatch, of Kansas City. Mayor Noland stated that the first rate increase,
as proposed, would be approximately 26%. The rate structuring plan had been
based on a cost of service analysis, and Mayor Noland reiterated that this was
done to satisfy EPA regulations.
Mr. Joe Brown of Black & Veatch addressed the meeting and stated that the
rate structuring analysis had not taken into consideration the possibility of
utilizing the City's surplus sales tax to finance the sewer treatment program.
He felt that the addition of the $1,100,000 in sales tax, if earmarked by the
City, would not have a very great impact on the proposed rate increase. He
pointed out the need to implement the first rate increase as soon as possible,
in order to cover operation and maintenance costs for the upcoming year.
Director Bumpass reiterated his views that the rate structuring should
be reworked in order to distribute charges more equitably between residential
users and commercial -industrial users (All Other users). Director Bumpass
proposed eliminating the cost allocation paid from the Water & Sewer Fund to
the General Fund for Administrative Services (an approximate amount of
$250,000), stating that it could become excessive at the end of the bond
period due to interest rates and inflation. He felt that the allocation of
charges distributed between the water portion of the billings and the sewer
portion of the billings could be reconsidered and possibly changed. Mayor
Noland felt that if the City eliminated the Administrative Services allocation
this would result in those persons who do not have sewer service subsidizing
the operation of both the water and sewer departments with these General Fund
revenues. There are 2,000 water users on the system who do not have sewer
useage. It was felt that this reallocation of the Administrative Services
sharges could be construed by the EPA as something less than a true cost of
service plan.
Director Bumpass asked City Engineer Bunn how many companies are being
monitored in terms of their extra strength discharge of sewage. Mr. Bunn
stated that 10-15 different industries are being monitored and the number to be
charged a surcharge will probably be expanded from 1 (Campbell Soup) to
4 or 5 in the near future.
•
1
4
1
Page Two
In further discussion of the rate increase proposed for residential users,
Mr. Brown of Black & Veatch stated that a large part of the costs involved can
be attributed to the infiltration -inflow coming into the system. He said that
the cost of servicing the residential lines is greater because of the magnitude
of the length of sewer lines and the numbers of customers. He added that in
making allocations of residential use, a maximum capacity of use by customer
is taken into consideration. The lines have to be sized to handle a variety of
use and the load pattern for residential use is an uneven pattern.
Mr. Vernon Rowe of McClelland Consulting Engineers addressed the meeting.
He stated that Dr. Cliff Thompson of CH2M Hill had commented that the alloca-
tion pertaining to infiltration -inflow, although a standard method used throughout
the country, appears to show a disproportionment between charges for residential
users and All Other users. Mr. Brown stated that proportioning of these charges
could be altered to a small extent by the increase of additional classes of users,
but he felt the benefit would not be great and it would greatly complicate the
system of rate structuring.
Mayor Noland stated that he felt the committee should request Black & Veatch to
prepare the rate scheduling in line with the two alternatives proposed by CH2M
Hill, assuming both the use of sales tax proceeds, and assuming no sales tax
increase. A proposed sales tax increase would be taken to a vote of the people.
Mr. Brown said the implementation date for the first rate increase had to be
taken into consideration and the committee determined that this could become
effective June 1st.
Vernon Rowe proposed a meeting between Black & Veatch, the bonding consultants,
and McClelland/CH2M Hill in an attempt to develop any assumptions and figures
pertaining to the alternatives proposed by CH2M Hill in order to relate them to
the scheduling of proposed rate increases. Mr. Rowe felt this could be completed
within the next 30-45 days.
Mr. Dale Christy of the Chamber of Commerce addressed the Board and stated
that he felt that the analyses of these three firms results would provide the
necessary information to better acquaint the citizens of Fayetteville with
the alternatives and would better prepare them if a sales tax vote were to
take place. He added that future rate increases may be needed, along with the
sales tax.
Mayor Noland then polled the members of the committee to determine if they
were in agreement to proceed with the first rate increase. The members agreed
that this was necessary and that nothing would be gained by postponing this
initial rate increase. Director Bumpass felt that at some point the Board
might wish to allocate an additional subsidy from the existing city/county sales
tax. Directors Osborne and Lancaster disagreed in that they felt the City's
portion of the county tax should not be utilized for this purpose. Director
Osborne felt the proposed city sales tax should be strictly utilized to retire
the bonds needed to finance the sewer project. He felt the current $1,100,000
sales tax surplus could be better utilized to aid in other services in the
City.
1
4
Page 3
It was determined to direct Black & Veatch, after consulting with
the engineers and bonding counsel, to prepare a comparison of the
rate increases needed to implement the two alternatives proposed by CH2M
Hill, either utilizing the sales tax, or without the sales tax.
Mr. Mark McBride of the bonding firm of Stephens, Inc., addressed
the meeting. He stated that his firm had done some preliminary work in
the drafting of documents pertaining to the financing of the bond
issuance, but that their firm had not been formally authorized by the
Board to act as underwriters on this project. Mayor Noland stated that
this could be considered as an agenda item for a future meeting of the
Board of Directors. Director Bumpass pointed out that the selection of
bond counsel would probably be subject to the Professional Selection
Policy established by the Board and that Requests for Proposals would be
made to several companies.
Director Orton asked for consideration of the Springdale Surcharge
Ordinance in the committee's deliberations but this discussion was
postponed pending distribution of this ordinance to the committee.
This portion of the committee meeting ended at 10:25 a.m. Other
Business items were discussed but were not recorded.
•
e
PS ETTEVILLE,
ARKANSAS
Community Development Department
P. 0. DRAWER F • 72702 • 501/442-6657
MEMORANDUM
TO: Board of Directors
FROM: Sandra Carlisle
SUBJ: Citizen's Input for 1983 CD Program
&DECENT
z
0
z
D
tlOddO itl n03
SAFE, SAN
1
z
z
1N3164
Street Paving
Stonebridge Road (Wyman to Hwy 16)
serves 6 residences
West Center Street ( Razorback Road to Hartman)
serves 4 residences
Sandra Street (One Mile Road to Old Farmington)
serves 12 residences
.One Mile Road ( Hwy 62 to Old Farmington)
serves 4 residences
Velda Court ( One Mile Road to dead end)
serves 8 residences
Old Farmington Road (62 west to By -Pass)
serves 26 residences
Putman Street (Hill to University)
serves Glendale Apartments
Sidewalks
Center Street (University to Hill)
serves Beverly Manor Apartments and Evergreen Cemetary
Water and Sewer Committee request to provide fire protection capability
Lee and Helen Streets approximately $13,000
Giles Addition approximately $48,400
Drainage/Flood Control
Channelize Farmington Branch from rear property lines along north side of
Old Farmington Road, following branch southwest and then west to beyond
Dinsmore Trail.
s
s
s
2.02
Citizen's Input for 1983 CD Program
Page 2
Drainage / Flood Control Continued
Replacement of low-water bridge across Farmington Branch on Dinsmore Trail.
Housing Rehabilitation
21 elderly homeowners on waiting list.
1 loan applicant on waiting list.
Request by Children's House/Scan
(Dollar figure not available but Headstart was budgeted $125,000 for 3500 square
feet; Children's House/Scan is asking for 5300 square feet)
•
i
FAYETTEV'ILLE,
ARKANSAS
Community Development Department
P. 0. DRAWER F • 72702 • 501/442-6657
MEMORANDUM
TO: Board of Directors
FROM: Sandra Carlisle el
SUBJ: Citizen's Input for 1983 CD Program
•
•
ODECENT, SAFE, SAN
z y
n a
o <
= m
= MI!) o
z
UOddO lvno3 '1N3w
Parks &.Recreation
Park in Northeast Fayetteville east of 71 and north of Huntsville
Playground equipment for Washington Mountain Park (in 1982 budget)
Gazebo for outlook on Washington Mountain Park
Streets
Lawson - Woolsey to Gregg
Corner of North Arkansas & Woolsey (?)
Corner of Sycamore & Garland
Corner of Hughes & Leverett
Sidewalks .
Ellis - Dunn to Hill Street
Drainage, etc. (see attached)
•
l
•
•
1. Drainage: The residents of West Ora, West Berry, and Wedington
Drive suffered a good deal of property damage in last summer's
• - ---big. storm. They are in danger with any major rainstorm which comes
• air way.. If CD funds are not eligible, the city must act.
Due to the manner in which the gravel was graded, water from the street,
N.Lewis (between Cleveland and Lewis Lane),now inundates the property
and homes on the down slope. Paving and curbing would alleviate
this problem.
Z. Pedestrian Easement: University students, university professors,
Leverett elementary students, and jr. high and high school students
who catch the bus:at Leverett alt'have:need of a permanent, perhaps
paved, pedestrian easement between Eva.Ave. and Lewis Lane or N Lewis.
The city should act before this area becomes developed and hard
feelings are thus created by dropping an easement in there later.
3. "Area West of the University Due to the university's expansi6o .
west of Razorback Road, more.needs are being felt in this .area
(which is basically very low income). For practical as well as
aesthetic reasons, it is important that the city as well as the
university act to improve this area:
a. Sidewalks are needed, in particular along Razorback Road.
Potential users include university sports fans, university
students, nurseryschool and elementary-school students,
junior high and high school students.
b. Several streets between Razorback road and S. Sang (Ramay Jr. Hi.)
are in need of paving. With increased use.in this area, paving
would have to be a boon to the people who live there. Likewise,
some would like to see Cross Ave. between Markham and Halsell
paved. Also, there has been sentiment expressed about continuing
Sang "over the hill" between Maple and Ramay Jr. Hi.
c. There are abandoned buildings in this area which:need to be
razed or renovated. Some of these may be on newly -acquired
University property. Perhaps enforcement of city ordinances
would take care of this problem: Abandoned drive-in, corner
of Razorback and 62 west; Burned house, 'corner of Eastern and
Neptune; Dilapidated structures (barns) at Stone 8 Sang and
on Sang. The old fairground buildings which appear to belong
to the university could use some' maintenance.
d. The.city should replace trees lost due to road construction
along 62 west •
•
•
•
•
(continued)
•
•
•
•
•
Census. tract 106
Cam Semelsberger
Continued ..
c* C
•
4. Recreational facilities:. Due to the heavy use of.Asbell field, ._
and its prospectively heavier usedue to the increased popularity
of soccer, the acquisition of the field at the corner of Mt Comfort
and N. Lewis for more playing fields is highly recommended. It
is, of course, near low-income student housing and Washington Plaza.
Also, it is recommended that the wooded tract on the south side
of Mt. Comfort at the.corner of N. Lewis be obtained for more
park area.
5. Miscellaneous needs: (Census tract 106)
a. There have been complaints about an abandoned house on S. Maxwell.
Perhapsenforcementof city ordinances would solve this problem.
b. Parts of Lawson street and Holly street need to be paved.
c. Sidewalks are needed along Wedington for all levels of students,
as well as the elderly
6. All -city: In Kalamazoo, Michigan, free paint is made available -
to low-income property owners. Perhaps a project of this type
would benefit Fayetteville.
The city needs to encourage the replacement of lost trees. Also,
the city should replace trees taken out due to widening of streets,
etc. •
•
•
•