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HomeMy WebLinkAbout2006-09-25 - MinutesCity Council Water & Sewer Meeting Minutes September 25, 2006 Page 1 of 4 Member Aldermen Mayor Dan Coady Ward 1 Position 1 - Robert Reynolds V10 Ward 2 Position 1 - Kyle rt Cook CityAttorney Kit Williams 1 Ward 3 Position 2—Robert Ferrell Tave e Ward 4 Position 2 -Lioneld Jordan City Clerk Sondra Smith ARKANSAS City of Fayetteville Arkansas City Council Water & Sewer Committee Meeting Minutes September 25, 2006 A meeting of the Fayetteville City Council Water & Sewer Committee was held on September 25, 2006 at 6:00 p.m. in Room 111 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. MEMBERS PRESENT: Alderman Kyle Cook, Chair; Alderman Lioneld Jordan; Alderman Robert Ferrell; and Alderman Robert Reynolds. Staff Present: Gary Dumas, Ron Petrie, Tim Conklin Others Present: Stephen Davis Chairman Kyle Cook called the meeting to order. 1. Farmington Contract and WSIP Status Update The Committee was given a copy of the agreement that was reached with the Farmington and Fayetteville negotiating team. Alderman Cook asked for further explanation about the rebate computation that was used. Gary Dumas explained the method and numbers used to reach the potential Farmington rebate. Farmington is agreeable to the computation. In response to a question from Alderman Reynolds, Alderman Cook said that Farmington has requested that the rebate go directly to the citizens, therefore the City of Fayetteville is cutting checks to the customers who were signed up from January 2004 to the date of the rebate. In response to a question from Alderman Reynolds, Gary Dumas said if the customers are no longer at the known address and it cannot be forwarded, the check will eventually make it to the State. Alderman Cook said everything possible will be done to get the money to the citizens and the Business Office is confident they can accomplish this. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes September 25, 2006 Page 2 of 4 Alderman Reynolds asked what the estimated cost of engineering is on the project. Gary Dumas said the estimated cost is $960,000. Steve Davis said that Farmington has agreed to pay up to $480,000 toward the cost of engineering. Alderman Ferrell asked if the cost to make the refund to the citizens of Farmington was deducted from the overall cost. Gary Dumas said he is not sure what the standard is in the utility industry. Alderman Ferrell said it depends on the dollar amount, how old it is and how many subscribers are involved. He said it isn't a lot but is significant and he believes it is worthy of consideration. He further asked what forward thinking agreements have been made in the event Farmington ever decides to build its own publicly operated wastewater treatment plant or join with a regional plan. Gary Dumas said no agreements have been made although he knows it is always a possibility. He said he knows there was discussion last spring or winter between Prairie Grove and Farmington. He doesn't believe anything came of those discussions. Steve Davis said Prairie Grove told Farmington they were not interested. Gary Dumas said he believes that once this lift station is built, the possibility of separating the Farmington and Fayetteville systems will become almost impossible. Alderman Ferrell asked if rates would go up for the communities we serve when they go up for Fayetteville. Gary Dumas agreed that that is correct. Steve Davis clarified that if Farmington citizens benefit from whatever the cost is associated with in the system that is driving the rates up, then Farmington citizens would also be affected by the increase. But if it is something that is completely separate from Farmington, then they would not be affected. In response to a question from Alderman Ferrell, Steve Davis said that from Farmington's point of view, there has to be tighter communication between the two cities than there has been in the past. His expectation is that the decisions about rate increases would be worked out at the staff level. There shouldn't be a lot of disagreement because the situation should be pretty clear cut. Alderman Ferrell said that his understanding is if the any community we are serving causes the impact for the Fayetteville ratepayers to go up, that community would pay for it. Alderman Cook said he believes item #10 in the agreement addresses that to some degree. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes September 25, 2006 Page 3 of 4 Alderman Ferrell said he saw that and sees a little ambiguity in there. He said he would also like to thank Chairman Cook for all the time he has invested with staff working on this agreement. Gary Dumas said in the beginning the Farmington's rate was based on the flow going through that part of the system. But there are changes to the overall system that can occur that will increase the usable capacity of the West side plant, so many factors will go into making a determination of which customers are benefited. But most anything we do to the system will benefit all the ratepayers. In response to a question from Alderman Reynolds, Gary Dumas said the results of the rate study being done right now will affect all ratepayers, including Farmington. Alderman Reynolds asked if there is any way to put a flow meter on Farmington to see what impact they're going to have on the City's system such as was done with Elkins. Steve Davis said there are so many interconnections on the Illinois River watershed that you would have to put too many different meters in. Fayetteville flow comes in at various points and Farmington flow comes in after that and before that. This was discussed earlier and David Jurgens said it is virtually impossible to meter it because of the technological differences in an open channel versus closed pipe system. It is an open channel in the Farmington system and a closed pipe in Elkins. In response to a question from Alderman Reynolds, Gary Dumas said in the rate study that is currently underway it has been identified that by 2009 a rate increase will be required for the operation of the system. That rate will be factored into the rates for all users. Alderman Reynolds said he thinks Alderman Cook and the negotiating committee have done a good job and wanted to thank them for the hard work they have done. Alderman Jordan said he has a little concern about going all the way back to 2004 for the rebate to Farmington. Alderman Cook said he too had problems with that. He expressed his concerns to Farmington. But it finally came down to two issues, money for the lift station and the rebate number. Those were the items that kept the negotiations from moving forward and the only way to get past them was with some give and take. Alderman Cook said at this point he understands that Steve Tennant is drafting this agreement. It will then go to Kit Williams and the two will hammer out the legal language. At that point, both Councils will get the agreement for discussion. Alderman Reynolds moved that the agreement be approved by the Committee to go on to the Council when approved by the City Attorney. Alderman Ferrell seconded the motion and it passed unanimously. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes September 25, 2006 Page 4 of 4 Gary Dumas said that Mr. Jurgens had requested that he distribute to the Committee the wetlands contract for the West side plant property. He does not expect an action at this meeting but would like to get it on the Council agenda as soon as possible. Mr. Dumas said that Mr. Jurgens will be in contact with the Committee members to answer questions. 2. Schedulinq the Next Water/Sewer Committee Meeting The next meeting of the Water and Sewer Committee is scheduled for Thursday, October 19, 2006 at 5:30 p.m. Alderman Cook will call a quick meeting if necessary before that time to discuss the wetlands contract. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org