HomeMy WebLinkAbout2006-09-25 - MinutesCity Council Water & Sewer Meeting Minutes
September 25, 2006
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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.
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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.
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September 25, 2006
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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.
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City Council Water & Sewer Meeting Minutes
September 25, 2006
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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.
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