HomeMy WebLinkAbout2006-07-11 - Agendas - Final 3V 01 le
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ARKANSAS
WATER/SEWER COMMITTEE AGENDA
Meeting Date of July 11, 2006
COMMITTEE: Chairman Kyle Cook; Alderman: Lioneld Jordan, Bobby Ferrell, Robert
Reynolds
COPY TO: Mayor Dan Coody, Sondra Smith, Gary Dumas, Steve Davis, Susan
Thomas, Tim Conklin, Jeremy Pate, Ron Petrie, $no, Jones, Tom
Hubbard, Peggy Bell, Nita Horn
FROM: David Jurgens, Water and Wastewater Director
A meeting of the Fayetteville Water and Sewer Committee is planned foy 11, 2006, at 5:30
PM, Room 326, Fayetteville City Hall. Proposed topics include:
1 . Approval of the Minutes of the May 30, 2006 and June 12 Water/Sewer Committee Meetings.
2. WSIP Update.
a. West Side Wastewater Treatment Plant. Under construction by Brasfield & Gorrie.
b. Subproject WL-5, Force Mains from Hamestring Lift Station to West Side WWTP.
Under construction by Garney.
c. Subproject WL-1 and 3, gravity Lines from Old Wire Road to Gregg Avenue, and from
Porter Road to Hamestring Lift Station, combined as one contract. Under construction by Oscar
Renda.
d. Subproject WL-4, gravity Lines and Force Main from Gregg Avenue Lift Station to
Hamestring Lift Station. Under construction by Oscar Renda.
e. Subproject EP-1, Noland Plant Renovation. Under construction by Archer Western.
f. Subproject WL-6, Hamestring Lift Station. The project entails building a 36 million
gallon per day sewer lift station containing seven 350 horsepower pumps, including associated
site work, and odor control. The lift station pumps water through the 24" and 30" sewer force
mains (currently under construction) to the West Side Wastewater Treatment Plant. The lift
station is where 51 st Street crosses Hamestring Creek. The City received three bids 29 June
2006, shown below.
Brasfield & Gorrie $ 6,130,000.00 (low bid)
Crossland Heavy 6,218,820.00
Van Horn Const 6,171 ,415.00
Engineer's Estimate $ 6,200,000.00
Staff requests authorization for to keep this is on the agenda for the 18 July City Council meeting.
The item is for approval of a construction contract with Brasfield & Gorrie, LLC., in the amount of
$6,130,000.00, for construction of the Hamestring Sewer Lift Station, WL-6, approve a 4%
contingency of $245,000.00, and approve a budget adjustment. Memo attached.
g. Cost and Schedule Updates. A revised cost and schedule update shall be distributed
at the meeting.
3. Public Information Update. The attached documents have been sent to the Northwest
Arkansas Times in order to accurately inform the public as to the status of various capital projects
the City has underway. The intent is to update the information every other week. It is also being
posted on the City's web site.
W&S committee I IJul 06.doe
4. Sanitary Sewer Rehabilitation Project Update.
a. Basin 1-5, 18 & 19 Sewer Rehabilitation Construction. Under construction by T-G
Excavating.
b. Farmington Area. Final design is underway by RJN for line work.
c. Insituform Term Contract Renewal. Staff expects to bring a contract amendment
forward for Council approval in August.
5. OMI Budget Modifications. As presented and discussed in OMI's annual presentation to the
City Council at the 30 May 2006 Agenda Session, the volume of solids entering the Noland
WWTP has risen steadily over the last two years. This increase in solids has impacted every
aspect of the treatment process, has a direct increase on the sludge volume, and at times
approaches the maximum treatment capacity without using chemicals (alum and/or polymer) to
supplement the biological process. Adding chemicals further increases the sludge volume. While
every effort will be made to keep 2006 operations within the existing budget, there is a possibility
there may be an increase required. If required, a budget adjustment will be submitted to the
Council later in the year. The 2007 budget will be increased during the budget process to allow
for these increased loadings. A letter explaining the increased loadings is attached.
6. Sludge Tractor/Trailer Purchase. The City, through OMI, is soliciting bids for one additional
sludge tractor and trailer. This was an anticipated expense and is included in the WSIP budget.
We intend to acquire the tractor/trailer this summer, as the sludge volume remains high and the
trailer would be put to use immediately. When the West Side WWTP comes on line, the sludge
hauling equipment should be sufficient to haul sludge from both plants.
7. Superior Industries Impacts. Superior Industries has reduced production. This has several
immediate impacts on the City, including a reduced water consumption of approximately 300,000
gallons per day, reduced wastewater load by approximately 300,000 gallons per day, and a
corresponding reduction in revenues.
8. Water Transmission Surge Tank Painting Contract. Bids will be opened within the next two
months for painting the surge tank on the 36" and 42" water transmission lines. The surge tank
has not been painted in over twenty years, and must be painted before additional upgrades can
be made to the 36" and 42" water transmission lines.
9. Farmington Contract and WSIP Status Update. Final design must begin within the next few
months in order to tie the Farmington wastewater system into the new West Side WWTP.
Farmington is rapidly reaching the decision point for what they wish to do. The preliminary
engineering, with cost estimates, is due by the end of the month. Details are included in the
attached memo.
10. Scheduling the Next Water/Sewer Committee Meeting. Staff recommends the next W/S
Committee meetings be scheduled for 5:30 Thursday, August 10, 2006 in room 326.
Attachments: WL-6 (Hamestring) Staffing memo and bid documents, Brasfield & Gorrie
Public Information Update Handout
OMI/Noland WWTP loading letter
Farmington Lift Station Memorandum
W&S committee 11Jul 06.doc
C. 8
Brasfield & Gorrie, LLC
Page 2 of 18
City Council Meeting of July 18, 2006
CITY COUNCIL AGENDA MEMO
To: Fayetteville City Council
Thru: Mayor Dan Coody
Fayetteville Sewer Committee
From: David Jurgens, Water and Wastewater Director
Date: 30 June, 2006
Subject: Approval of a construction contract with Brasfield Gorrie, LLC., in the amount of
$6,130,000.00, for construction of the Hamestring Sewer Lift Station, WL-6, approve a 4%
contingency of$245,000.00, and approve a budget adjustment.
RECOMMENDATION
City Administration recommend approval. of a construction contract with Brasfield & Gorrie, LLC.,
in the amount of$6,130,000.00, for construction of the Hamestring Sewer Lift Station, WL-6,
approve a 4% contingency of$245,000.00, and approve a budget adjustment.
BACKGROUND
The City received three bids for this project, as follows:
Brasfield & Gorrie $ 6,130,000.00 (low bid)
Crossland Heavy 6,218,820.00
Van Horn Const 6,171 ,415.00
Engineer's Estimate $ 6,20000.00
The project entails building a 36 million gallon per day sewer lift station containing seven 350
horsepower pumps, including associated site work, and odor control. The lift station pumps water
through the 24" and 30" sewer force mains (currently under construction) to the West Side
Wastewater Treatment Plant. The lift station is where 51" Street crosses Hamestring Creek.
.DISCUSSION
The bid has been reviewed by RJN Group, the Engineer; their letter recommending award is
attached. The Arkansas Natural Resources Commission will complete their review prior to contract
award.
Brasfield Gorrie is currently building the West Side WWTP, and is ranked number 29 in the
Engineering News Record listing of the top 400 contractors in the country.
BUDGET IMPACT
Funds are available in the wastewater fund balance Fiscal Year 2006 budget. A budget adjustment
is attached. These system revenues have been identified to cover Wastewater System Improvements
Project costs in order to reduce the amount required to.be borrowed.
WL-6 Brasfield CCMemoh][06_doc
City of Fayetteville,Arkansas C. 8
Brasfield & Gorrie, LLC
Budget Adjustment Form Page 18 of 18
Budget Year Department: Water/WastewaiTer Date Requested Adjustment Number
Division: Water/Wastewater
2006 6!3012006
Program: WSIP, WL-6 Hamestring Sta.
Project or Item Added/Increased: Project or Item DeIeted/Reduced:
$5,100,000 is requested in the Wastewater System Fund balance.
Improvements Project account to cover project costs for
the Hamestring Lift Station construction (WL-6) and
project costs prior to the next bond issue.
Justification of this Increase: Justification of this Decrease:
These system revenues have been identified to cover Sufficient funds remain within Fund Balance to meet City
Wastewater System Improvements Project costs in policies.
order to reduce the amount required to be borrowed.
Increase Expense Budget(Decrease Revenue Budget)
Account Name Account Number Amount Project Number
Contract services 4480 9480 5315 00 5,100,000 02133 0362
Decrease Expense Budget (Increase Revenue Budget)
Account Name Account Number Amount Project Number
Use of fund balance 5400 0940 4999 99 5,100,000 02133 0362
Approval Signatures Budget Office Use Only
Type: A B C D . E
Requested By Date
Date of Approval
B g ager Date Initial Date
Posted to General Ledger
De n Du r Date Initial Date
Q Posted to Project Accounting
Finance ternal Services Dir or ate Initial Date
Entered in Category Log
Mayor Date Initial Date
C. 8
Brasfield & Gorrie, LLC
Page 5 of 18
ri n grouD www.rjn.corr
mop
Excellence through Ownership
June 30, 2006
Mr. Dave Jurgens, P.E.
City of Fayetteville
Director Water and Wastewater
113 West Mountain Street
Fayetteville, AR 72701
Subject: Fayetteville Westside Wastewater Improvements - WL-6
RJN#18157500
Dear Mr. Jurgens:
RJN has reviewed and processed the Contractor Bids for the above referenced project.
All bids are correct as submitted by each contractor. Brasfield & Gorrie is certified to be
the low bidder with a total bid amount of six million one hundred thirty thousand dollars ,
and zero cents ($ 6,130,000).
RJN is in the process of checking references supplied by Brasfield & Gorrie and expects
that, based on their performance on the Fayetteville Westside Treatment Plant Project and
the previous reference checks by the City, Brasfield & Gorrie will be found to be a
qualified contractor.
i
Contingent upon the final reference checks, RJN recommends that the contract for WL-6
in the amount of$ 6,130,000 be awarded to the low bidder, Brasfield & Gorrie. Attached
is the summary of the lump sum bids received.
Should you have any further questions, please call me at (972) 437-4300.
RJN Group, Inc.
Hugh M. Kelso
Vice President
xc: file
26 East Meadow 0
C. 8
Brasfield & Gorrie, LLC
Page 6 of 18
BID TABULATION
CITY OF FAYETTEVILLE, ARKANSAS
WESTSIDE WASTEWATER SYSTEM IMPROVEMENT PROJECT WL-6
HAMESTRING LIFT STATION
BID OPENING
JUNE 2% 2006
10:30 AM
Bidder Bid Amount ($)
Brasfield & Gorrie, LLC 6,130,000
Crossland Heavy Contractors, Inc. 67218,820
Van Horn Construction, Inc. 6,171 ,415
City of Fayetteville
Major Capital Improvements
Progress Report as of July 7, 2006
Waste Water System Other Capital Improvements
Improvement Project (WSIP) (Not WSIP)
Hwy. 16 Water Line Relocation
• Relocating the water line along Hwy. 16 due to
widening from Rupple Rd to Double Springs Rd
• $1 ,591 ,426 cost
• 41% complete
Hwy. 62 Water Line Relocation
• Relocating the water line along Hwy. 62 due to
31 , 52% ,fat -ted' widening from North Hunter to County Rd 647
$38,300 000 *0 xxvb00 • $1 ,180,177 cost
A ttil� � • 95% complete
Razorback Road Water Line Relocation
00 4t- • Relocating the water line along Razorback Rd
$20,0007000 �061+�,��' due to widening from 6th St to 15th St
• $722,891 cost
• 95% complete
North College Water Line Replacement
; ►� • Replacing old water lines along College Ave
+�( from Maple St to North St
flea • $1 ,377, 141 cost
68,2% ,&e • 80% complete
Happy Hollow Rd 8t Huntsville Rd (Hwy 16)
Intersection Improvements
• The main flow of traffic will be permanently
redirected so that Happy Hollow Rd flows into
Hwy 16 east rather than the current 90 degree
turn.
Other Street Construction
• Overlaying streets in the next two weeks - Olive
Street, Jackson Drive Et Lakeside Drive
Other Sidewalk Construction
• Scheduled for July 2006 - Hill Street between
Sixth 8 Center Streets.
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Water Sewer Improvement Projects
1 Hamestring Sewer Lift Station
• Construct a 36 mgd capacity sewer pump station
• $6,130,000 cost
2 48" Gravity Sewer Line - Gregg to Hamestring
• Construct 24,751' of 48" gravity sewer pipe line and 3,876' of 30" sewer pressure pipe line
• $10,441,319 cost
3 Force Mains - Hamestring to West Plant
• Construct 21,740' of 24 and 30" sewer force pipe lines
• $4,582,537 cost
4 Broyles Road Water Line
• Construct 3,100' of 12" water Line
• Cost included with West Side Water Treatment Plant - N5
5 West Side Waste Water Treatment Plant
• Construct a new 10 million gallon per day (mgd) (average daily flow) wastewater treatment plant
• $59,994,710 cost
6 Wetlands Mitigation
• Construct and plant 25.5 acres of wetlands
• $287,040 estimated cost - not yet bid
7 Owl Creek Lift Station Force Main
• Upgrade the existing sewer pump station and install 11,600' of (estimated) 15" sewer pressure pipe line
• $1,200,000 estimated cost - not yet bid
8 Porter Rd to Hamestring Sewer Line
• Construct 14,100' of 21-24" gravity sewer pipe line
• $7,014,948 cost
9 North St to Poplar to Van Asche Rd Sewer Line
• Construct 15,500' of mostly 24-33" gravity sewer pipe line
• $4,154,667 estimated cost - not yet bid
10 Gregg Ave Sewer Lift Station
• Construct a 19 mgd capacity sewer pump station
• $1,557,000 estimated cost - not yet bid
11 Old Wire Rd to Gregg Ave Sewer Line
• Construct 15,770' of 21-36" gravity sewer pipe line
• Cost included with Porter to Hamestring - M8
12 East Side Waste Water Treatment Plant Renovation
• Upgrade odor control, solids handling, headworks at the Noland wastewater treatment plant
• $14,644,000 cost
13 Mally Wagnon Sewer Lift Station li Force Main
• Upgrade sewer pump stations, install 4,968' of 16" sewer force pipe line
• $2,043,000 estimated cost - not yet bid
14 Happy Hollow to Noland Waste Water Treatment Plant Sewer Line
• Construct 26,458' of 42" gravity sewer pipe line
• $14,225,000 estimated cost - not yet bid
15 Razorback Rd to Happy Hollow Sewer Line
• Construct 13,489' of 21-30" gravity sewer pipe line
• $6,015,000 estimated cost - not yet bid
16 South Mountain to Industrial Park Sewer Line
• Construct 4,084' of 10" gravity sewer pipe line
• $572,000 estimated cost - not yet bid
Other Maior Capital Improvements
17 Hwy 62 West Water Line
• Relocating the water line along Hwy. 62 due to widening from North Hunter to County Road 647
• $1,180,177 cost
18 Sanitary Sewer Rehab
• Construct 13,067' of 8-15" gravity sewer pipe line at various locations city-wide
• $2,223,022 cost
19 North College Water Line Replacement - Maple to North
• Replacing old water lines along College Avenue from Maple Street to North Street
• $1,377,141 cost
20 Happy Hollow - Huntsville Rd Intersection Construction
• Installation of new traffic signals, as well as intersection and drainage improvements
• $1,235,213 cost
21 Razorback Road Water Line Relocation
• Relocating the water line along Razorback Road due to widening from 6th Street to 15th
• $722,891 cost
22 Hwy 16 Water Line Relocation - Rupple Rd to Double Springs Rd
• Relocating the water line along Hwy. 16 due to widening from Rupple Road to Double Springs Road
• $1,591,426 cost
WASTEWATER SYSTEM IMPROVEMENT PROJECT
The Wastewater System Improvement Project (WSIP) is a system wide
project that significantly increases the capacity of the City's wastewater
system. This project addresses capacity shortfalls in the wastewater
collection and treatment systems; the design is expected to treat the
wastewater for 115,000 people.
This project will increase the City's wastewater treatment capacity from 12.6
to 21.4 million gallons per day, and will reduce the number of sewer system
overflows due to rain entering the system. It also improves odor control
facilities system wide. The west side wastewater treatment plant will start
treating wastewater in mid 2008.
Four major construction elements of the project include :
(1) constructing a new West Side Wastewater Treatment Plant ($64.3
million including water lines, wetlands construction, and other work adjacent
to the site);
(2) constructing 21 .6 miles of new or replacement sewer transmission
pipes and 2 pump stations in the north and west areas of the City to carry
the wastewater to the new West Side WWTP ($37.9 million);
(3) upgrading the existing Noland WWTP on the east side of town
($17. 1 million); and
(4) constructing 9.3 miles of new or replacement sewer transmission
pipes and replacing, modifying, or upgrading six pump stations in the south
and east areas of the City to better carry the wastewater to the Noland
WWTP ($24.0 million).
The project also involves work including constructing 25.5 acres of wetlands,
over one mile of roadway, 1/2 mile of water pipe, engineering design for all
aspects of the project, and all of the associated permitting and coordination
with the Corps of Engineers, Arkansas Department of Equality, the Arkansas
Natural Resources Commission, the Beaver Water District, various Oklahoma
agencies, and others.
The project is being funded through a combination of a $125 million sales tax
bond issue approved in November 2001, system revenues, and developer
impact fees. At the current time, there is a $38.3 million shortfall between
what is needed to complete construction and the funding available. This
shortfall is going forward to Fayetteville voters on 12 September, 2006. The
current sales tax is 9.00%. The issue before the voters is to consider an
extension of the 3/4 cent sales tax that is currently funding the majority of the
project and adding a 1/4 cent to the sales tax for a total state, county, and
city sales tax of 9.25%.
OMI, Inc.
1400 North Fox Hunter Road
Fayetteville, AR 72701
OMI
Tel 479 443.3292
Fax 479 443.5613
May 24, 2006
David Jurgen, P.E.
City of Fayetteville Water and Wastewater Director
113 West Mountain Street
Fayetteville, AR 72702
RE: Noland WWTP Loadings Issues
Dear Mr. Jurgens:
As you are aware, OMI has operated the Paul R. Noland wastewater treatment plant (Noland
WWTP) for the past eighteen years and has compiled a remarkable record of compliance and
budgetary restraint during that period. While we have had to deal with a number of significant
challenges during the life of the Noland WWTP, (odor issues, regulatory issues, sludge handling
issues, large influent flow volumes, etc.), we have not heretofore been placed under a great deal
of pressure due to influent organic loadings. These loadings have been relatively flat with a
slight general upward trend for the past several years. Since the spring of 2004, however, this
situation has changed significantly and is currently presenting us with several challenges which
could pose difficulties in meeting our permit requirements and our 2006 budget.
Specifically, the influent organic loading increased over 16% from 2004 to 2005, and that trend
is apparently continuing through April of 2006. Certainly we accounted for the previous increase
when developing our 2006 budget, but we did not anticipate that the previous years' rate of
growth would continue. At this point, we are nearing a critical juncture in relation to plant O &
M which has the potential to require greatly increased expenditures for treatment chemicals (i.e.
alum for TSS and phosphorus removal, polymer for sludge thickening, and potentially liquid
oxygen for aeration), as well as increased costs for disposal of solids generated during the
treatment process (landfill tipping fees, diesel fuel, labor).
We will of course optimize all available resources to keep these costs to a minimum and we will
keep you apprised of the situation and specific additional costs as we take each step along the
way, but we wanted to provide notification in as timely a manner as possible. Please do not
hesitate to request any additional information that you may desire.
Sincerely yours,
Bill Ammons, OMI Regional Business Manager
Noland Loadings May 2006.doc
ARKANSAS
Faye
OPERATIONS DIRECTOR
To: Water and Sewer Committee
From: Gary Dumas
Date: July 7, 2006
Re: Farmington Lift Station
Issues:
• Timing of Construction and Target Completion Date of New Farmington West
Lift Station (Lift Station 12 at 398 N. Double Springs Road) vs.
Rehabilitation/Enlargement of Farmington East Lift Station (Lift Station 11 at
4412 W. 6th Street) and Construction of New Force Main to West Side Plant.
• Decisions to be Made by Farmington Concerning Funding.
• Farmington Sewer Capacity; Master Facility Plan vs. Farmington Request.
• Fayetteville Ownership of Farmington Sewer System vs. Farmington Ownership.
Discussion:
Timing of Construction and Target Completion Date of New Farmington West Lift
Station (Lift Station 12) vs. Rehabilitation/Enlargement of Farmington East Lift
Station (Lift Station 11) and Construction of New Force Main to West Side Plant.
The City of Farmington is primarily served by the existing Lift Station 12, owned by the
City of Farmington. This station pumps to Lift Station 11, just east of the Farmington
City limits. Lift station 11 is owned by the City of Fayetteville. As currently configured,
Lift Station 12, and the associated gravity lines coming to it and force mains leading from
it, carry only Farmington flows. In the Master Facilities Plan, wastewater flow is
proposed to be rerouted directly to the new West Side Wastewater Treatment Plant
(WWTP) on Broyles Road from a new relocated Lift Station 12. The plan also includes
provisions to increase the size of the gravity interceptor that parallels North Farmington
Branch through Farmington. The optimal and recommended solution includes the
following:
- The Lift Station 12 is relocated to the confluence of North Farmington Branch
and Goose Creek, so as to allow a significantly larger area to have sewer service
without adding more lift stations.
- The gravity interceptor that parallels North Farmington Branch through
Farmington from Lift Station 11 to Lift Station 12 be upsized to allow for future
Farmington growth and carry existing wet weather flows without overflows.
113 West Mountain
Fayetteville, Arkansas 72701
Office plione-479-575-8330
Fax -479-575-8257
E-mail -gdumas@ci.fayetteville.ar.us
Lift Station 11 be removed and all flows that currently flow by gravity into this
lift station be tied by gravity to the replacement interceptor leading to the Lift
Station 12 (Fayetteville is responsible for the portion of cost to the Farmington
system attributed to carry this flow, as it comes from Fayetteville sources).
A new force main be installed from the new Lift Station 12 to the new WWTP on
Broyles Road.
This solution increases the drainage basin that can be routed through the Lift Station 12,
eliminates wet weather overflows, and significantly reduces the overall pumping
requirements. It involves a partnership between the two cities, as it combines some flow
from both. The proportionate cost of this alternative is 80% Farmington and 20%
Fayetteville, based on flows. The current (preliminary) cost estimate, including
contingencies, easements, pipelines, design, is $4,725,000. A more refined cost estimate
is expected by the end of July, 2006, when the preliminary design is complete. The final
cost will not be known until the project is awarded and construction is complete.
The alternative for the City of Fayetteville is to continue to keep both systems completely
separate. This would involve enlarging Lift Station 11 and constructing a new force main
to the West Side WWTP.
The timeline for design and construction is approximately two years. The new West Side
treatment plant is proposed to be substantially complete by May 2008.
A decision by the City of Farmington is necessary immediately. If the City of
Farmington agrees to participate in the funding of this new Lift Station 12, Fayetteville
can begin the design process utilizing the Fayetteville 20% cost share while waiting the
City of Farmington funding.
Decisions to be Made by Farmington Concerning Funding.
It is the responsibility of the City of Farmington to secure necessary funding for their
80% share in the cost of the new Lift Station 12 and associated gravity lines, force mains,
and easements. It is anticipated that they would secure a loan from the Arkansas Natural
Resources Commission, Water Resources Development Division, Revolving Loan Fund.
This loan or other loan source would be repaid through rates charged to customers of the
Farmington Sewer System. The tentative plan is to include in each Farmington sewer
customer monthly bill, a flat rate to pay for the capital needs of Lift Station 12 and
associated piping and easements.
Mr. Steve Davis, former Finance and Internal Services Director, provided to the
Farmington/Fayetteville Sewer Negotiating teams an estimate of the Farmington capital
need for the relocated Lift Station 12. This estimate was $3,600,000 with an annual debt
service need of$197,600 and a monthly fixed debt service fee of$10.34 per Farmington
sewer customer. The $3,600,000 is an estimate and can not be known until the project is
designed, bid and built with all costs finalized. Additionally the $3,600,000 does not
include contingencies. More importantly however, is that the maximum debt service
needed to retire $3,600,000 in 20 years is approximately $249,250 with an approximate
minimum debt service requirement of$244,400 (See Debt Service Schedule Dated
3/20/2006 from Stephens Inc.) rather than the erroneously reported $197,600. The
monthly fixed debt service charge necessary to cover the maximum annual payment
would be $13.05 rather than $10.34 previously reported by Mr. Davis.
113 West Mountain
Fayetteville, Arkansas 72701
Office phone-479-575-8330
Fax -479-575-8257
E-mail - gdumas@ci.fayetteville.ar.us
Issues likely to be of concern to the City of Farmington are:
• Future rates.
• Sources of revenue to repay Farmington costs of lift station and associated piping
and easements.
• Ownership of sewer system.
Future rates.
A tentative rate was proposed in the initial review of the 2003 Black and Vetch Rate
study by HDR of$5.02 per 1000 gallons. If a rate change is necessary at this time, the
$5.02/1000 gallons would be appropriate with the understanding that a subsequent rate
change will be implemented in early 2007 based upon the Rate Study currently underway
with HDR. This immediate rate change to $5.02/1000 gallons is most likely an issue that
must be resolved before a Farmington decision regarding Lift Station 12 will be made.
In addition to the volumetric rate, the fixed sewer service charge of$10.35 will remain.
Sources of revenue to repay Farmington costs of lift station.
During the Fayetteville/Farmington Sewer Negotiations, it was proposed that a
Farmington Capital Debt Service Charge could be added to the Farmington Sewer
Customers Monthly Billing. This Debt Service Charge is estimated to be $13.05 per
month and would be rebated to the City of Farmington to service the debt encumbered to
pay for the Farmington portion of the relocated Lift Station 12. This is an immediate
issue that the City of Fayetteville must agree to regarding billing, collection and
distribution of funds. The City of Farmington must secure a loan for their proportionate
costs of Lift Station 12.
Ownership of sewer system.
The ownership of the Farmington Sewer System decision will need to be made after the
City of Farmington secures their necessary financing for Lift Station 12. Depending
upon the lending agency requirements, the ownership discussion may continue or may
need to be deferred until after construction of the lift station or perhaps until after the debt
is retired. This is not an immediate issue to be decided.
Farmington Sewer Capacity; Master Facility Plan vs. Farmington Request.
The Waste Water System Improvement Facility Plan published in August 2001 projected
a Westside Waste Water Treatment Plant service area population of 61,337 with
Farmington contributing 5,000 to that 61,337 (see attachment titled Future Conditions —
200). This population is the design capacity of the new facility under construction. The
actual operating capacity will be higher, similar in characteristic to the operating capacity
of the existing Noland Plant. The Water and Sewer Committee decision is whether to
allocate any of the operating capacity above the design capacity to any contracting
community.
The City of Farmington has requested a guaranteed capacity for 7,500 residents.
Discussion by the two cities negotiating teams indicated that Farmington could mitigate
the Fayetteville capital costs by providing the Fayetteville Sewer Utility with sufficient
funds (money) to acquire the initial asset or fund the initial capital cost.
This will most likely need to be resolved prior to a decision by Farmington.
113 West Mountain
Fayetteville, Arkansas 72701
Office phone-479-575-8330
Fax - 479-575-8257
E-mail-gdumas@ci.fayetteville.ar.us
Fayetteville Ownership of Farmington Sewer System vs. Farmington Ownership.
This is an issue that is not yet ripe for decision. Several issues must first be addressed.
Most importantly, will Farmington participate in the Lift Station 12 project? If
Farmington chooses not to participate, then the City of Fayetteville will need to begin
design of a new Farmington East Lift Station (Lift Station 11) and force main to the West
Side Plant. This decision will restrict additional Farmington growth served by municipal
waste water treatment as Lift Station 12 and associated line work is at capacity.
113 West Mountain
Fayetteville, Arkansas 72701
Office phone-479-575-8330
Fax -479-575-8257
E-mail - gdumas@ci.fayetteville.ar.us
City of Fayetteville, AR
Water and Sewer System Revenue Bonds, Series 2006
(Revolving Loan Fund')
Debt Service Schedule
Date Principal Coupon Interest Total P+I
7/1/2006 - - - -
7/1/2007 130,000.00 3.250% 117,000.00 247,000.00
7/1/2008 135,000.00 3.250% 112,775.00 247,775.00
7/1/2009 140,000.00 3.250% 108,387.50 248,387.50
7/1/2010 145,000.00 3.250% 103,837.50 248,837.50
7/1/2011 150,000.00 3.250% 99,125.00 249,125.00
7/1/2012 155,000.00 3.250% 94,250.00 249,250.00
7/1/2013 160,000.00 3.250% 89,212.50 249,212.50
7/1/2014 165,000.00 3.250% 84,012.50 249,012.50
7/1/2015 170,000.00 3.250% 78,650.00 248,650.00
7/1/2016 175,000.00 3.250% 73,125.00 248,125.00
7/1/2017 180,000.00 3.250% 67,437.50 247,437.50
7/1/2018 185,000.00 3.250% 61,587.50 246,587.50
7/1/2019 190,000.00 3.250% 55,575.00 245,575.00
7/1/2020 195,000.00 3.250% 49,400.00 244,400.00
7/1/2021 205,000.00 3.250% 43,062.50 248,062.50
7/1/2022 210,000.00 3.250% 36,400.00 246,400.00
7/1/2023 215,000.00 3.250% 29,575.00 244,575.00
7/1/2024 225,000.00 3.250% 22,587.50 247,587.50
7/1/2025 230,000.00 3.250% 15,275.00 245,275.00
7/1/2026 240,000.00 3.250% 7,800.00 247,800.00
Total $3,600,000.00 - $1,349,075.00 $4,949,075.00
Yield Statistics
Bond Year Dollars $41,510.00
Average Life 11.531 Years
Average Coupon 3.2500000%
Net Interest Cost (NIC) 3.2500000%
True Interest Cost (TIC) 3.2500000%
Bond Yield for Arbitrage Purposes 3.2500000%
All Inclusive Cost (AIC) 3.2500000%
IRS Form 8038
Net Interest Cost 3.2500000%
Weighted Average Maturity 11.531 Years
File I FAYETTEVILLE(W&S).sf 1 3/20/2006 1 1:13 PM
Stephens Inc.
Public Finance
5-
201. Projected Population
The City of Fayetteville provides sewer services to the cities of Farmington, Greenland and Elkins.
Fayetteville and these neighboring bedroom communities have experienced tremendous growth
over the last 20 years. Beginning in 1980, growth rates in Fayetteville have averaged 3.26%
compounded annually. For the combined population, the growth rate is 3.58%. In the May 2001
report entitled Preliminary Design Report Noland Wastewater Treatment Plant Improvement,
which can be found in Appendix PDR-1, Black and Veatch reported the projected population of
Fayetteville for the year 2020 to be 85,000. The report also projects the total population of the
service area to be 93,186 in the year 2020. The Noland WWTP is projected to serve 31,849 of the
2020 population, while the Westside WWTP is projected to serve the remaining 61,337 of the 2020
service area population. Table 201 is provided to summarize the population projections for the
City of Fayetteville Sewer Service Area.
Table 201
Projected Population Growth in the Fayetteville Service Area
Noland WWTP Westside WWTP City of Fayetteville
Service Area Service Area Service Area
Design Year 2000 2020 2000 2020 2000 2020
Fayetteville(') 18,583 28,663 37,817 56,337 56,400 855000
Elkins / Greenland(') 2,196 3,186 - - 2,196 3,186
Farmington(') - - 33200 5,000 3,200 5,000
Total Population 20,779 315849 415017 61,337 615796 93,186
(1)Developed By RJN
202. Future Flows and Loadings
The selected alternative for Fayetteville is to upgrade the existing Noland WWTP in the White
River WatershCd and build a new WWTP in the Illinois River , treating the wastewater generated
in each watershed without diversion. After separation of the flow streams into their respective
watersheds, the anticipated design flows and loadings to their facilities for the year 2020 are shown
in Table 202.
facility flan Amendment FUTURE CONDITIONS 200 - 1