HomeMy WebLinkAbout2007-01-30 - MinutesCity Council Water & Sewer Meeting Minutes
January 30, 2007
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Member Aldermen
Mayor Dan Coady Ward 1 Position 1 — Adella Gray
V10
Ward 2 Position l - Kyle rt Cook
CityAttorney Kit Williams � 1 Ward 3 Position 2—Robert Ferrell
Ward 4 Position 2 - Lioneld Jordan
City Clerk Sondra Smith ARKANSAS
City of Fayetteville Arkansas
City Council Water & Sewer Committee
Meeting Minutes
January 30, 2007
A meeting of the Fayetteville City Council Water & Sewer Committee was held on January 30,
2007 at 5:30 p.m. in Room 326 of the City Administration Building located at 113 West
Mountain Street, Fayetteville, Arkansas.
MEMBERS PRESENT: Alderman Kyle Cook, Chair; Alderwoman Adella Gray;
Alderman Robert Ferrell; Alderman Lioneld Jordan
Staff Present: David Jurgens, Gary Dumas, Ron Petrie, Tim Conklin, Susan Thomas,
Others Present: Billy Ammons, OMI; Stan Williams, OMI; Lane Crider, McGoodwin,
Williams and Yates.
Chairman Kyle Cook called the meeting to order. He welcomed Alderwoman Adella Gray
as the newest member of the Water & Sewer Committee.
1. Approval of the Minutes
Alderman Ferrell moved that the minutes of the Water & Sewer Committee meeting held on
December 28, 2006 be approved as submitted Alderman Jordan seconded the motion and it
passed unanimously.
2. WSIP Update
David Jurgens said the WSIP projects are moving forward very well. We had some good
information published in the newspaper over the weekend. At this point everything is coming in
within contract and contingency and with a great deal to spare. Staff will be trying to set up a
tour of the plant site next week. He said WL -7, which is the last major component on the west
side, has been advertised and bids will be opened in March.
a. Subproject EP -2, Noland WWTP Renovation
David Jurgens said Subproject EP -2 is currently underway with Archer Western as the
contractor. There has been a little delay in getting some parts associated with the bar screen so
the project is now coming in on schedule rather than ahead of schedule. The contractor knows
that if he doesn't meet the deadline, the City will enforce the $1000 per day liquidated damages
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allowed in the contract. Mr. Jurgens doesn't believe the project will be delayed past the
deadline.
b. Subproject EP -1, Noland WWTP Wet Weather Improvements
David Jurgens said this project has been moved up about six months. The project involves
lining the wet weather storage basin at the Noland Plant. This sequences the construction on that
basin so they will be able to work on it during the driest time of the summer and it moves the
project almost a full year ahead of schedule. This allows us to store wet weather high flows
coming into the plant. Right now we use the ponds simply for effluent that has been treated. This
gives us a great deal more flexibility and should reduce both volume and frequency of sewer
overflows.
c. Beaver Lake Watershed Nutrient Reduction Study
David Jurgens said we are still in negotiations on this contract. He expects the contract to come
to the Council in March. The purpose is to study what can be done within the City to reduce the
phosphorous loading going into the White River.
d. WSIP Farmington Area Work
David Jurgens said Value Engineering comments are still being evaluated from Farmington.
The easement acquisition process is underway. Farmington is fully responsible for all of the
easement acquisition.
Alderman Cook commented that the article published in the paper was very good.
3. Farmington Wastewater Service Agreement
David Jurgens said Farmington has accepted the language changes proposed in the contract. We
are now at the point of legal review by the city attorneys.
In response to a question from Alderman Cook, David Jurgens said Farmington's time frame
refers to the financing of the project. There is a meeting every 30 days and every quarter. He also
said that Arkansas Natural Resources published a 90 -day reduction in interest rates and
Farmington will be proceeding with the initial stages of borrowing the money. They won't be
able to execute without the signed contract but will proceed anyway.
4. Sanitary Sewer Rehabilitation Project Update
a. Basins 1-5, 18 & 19 Sewer Rehab
David Jurgens said we are waiting for the highway permit and negotiations are underway with
the owner of the Doc Murdock's building.
b. Farmington Area
David Jurgens said the documents have been submitted to Arkansas Natural Resources for
review. We are currently waiting on the approval of the Categorical Exclusion. He explained that
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this has to come from EPA Region 6 and is where we publish what we are going to be doing on
this job and all the other agencies get the opportunity to object. We have not received any
comments. We are awaiting a letter from Region 6 saying no comments have been received and
we can go ahead. If we receive comments, that could force us into doing an environmental
assessment.
5. 36" Water Transmission Main Rehabilitation
David Jurgens said we are continuing to work on painting the surge tank. Painting depends on
the temperature (you can't paint if it is too cold) so not much has been done in the past month.
6. Sewer Pump Station Design Standards
David Jurgens said that years ago the Council wanted to review design criteria and
specifications for water & sewer, streets, etc. when we do standard specifications. He said it
makes things easier for developers, City inspection staff and other staff and contractors working
for the City to have design standards and standard criteria for construction. The design standards
for sewer pump stations are the first small piece of the design criteria to be developed. Once
these are compiled, he would like to bring them forward to this Committee for approval and not
have to go to the full City Council.
In response to a question from Alderman Cook, David Jurgens said these design standards
were developed by staff and reviewed by OMI. They answer most of the questions and problems
we have had with the smaller package lift stations the developers put in. One of the biggest
changes was implemented last summer and is the requirement for backup power on all sewer lift
stations. That is a specific requirement in our NPDES permit and we have put it into the standard
specifications. We are doing this on all of our larger pump stations. We have it programmed as a
long-term CIP project so it will take awhile. But we don't want to accept any new lift stations
that don't meet this requirement.
Alderman Cook said that although he likes looking at the design standards and being aware of
what is required, he feels the staff should make the decision regarding those standards.
David Jurgens said there is value in having approval from the Council level so everyone knows
the standards have the backing of the elected officials.
Alderman Cook said the Committee could discuss these standards at the next meeting, after
having the opportunity to review them.
7. Scheduling the Next Water/Sewer Committee Meeting
The next meeting of the Water/Sewer Committee was scheduled for February 27, 2007 at 6:30
p.m. If an Equipment Committee meeting scheduled for 5:30 on that date is cancelled, the
Water/Sewer Committee meeting will be moved to immediately follow the Council Agenda
Session.
David Jurgens informed the Committee that he has a couple of items (information requested by
the Committee) to add to the end of this agenda.
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SUPPLEMENTAL AGENDA ITEMS:
1. WP -2 West Side WWTP Change Order Number 1
David Jurgens said he mentioned this at the last meeting. Some of the items on the change order
are recommended by the contractor as savings. He said the biggest item is the exact grade at
which they had to excavate to build the structure. In the contract a specific grade was set (to
within 1/10 of a foot of what it was expected they would have to excavate) and there was an
allowance per yard if they had to go any deeper. They did have to go deeper in some places. The
details of the changes were listed on a handout distributed to the Committee. He said that
backup information was available if requested. He said that savings have resulted because of the
ruling from the Ark. Finance & Administration Dept. issued after this contract was awarded
regarding sales tax as it applies to certain components of a wastewater treatment plant. Also, the
City opted to pull the fuel cost out of the contract which allowed for savings. These changes
make this a "no cost' change order.
Alderman Ferrell clarified that there is a cost but that the cost is being offset by the reduction of
the taxes and eliminating the fuel cost from the contract. In reality the cost is $451,405 more than
was anticipated, but that cost is being offset by savings.
David Jurgens agreed and said for the total job cost, it is awash. He said we still have a
balance of almost $300,000 in savings estimated because of the sales tax and the fuel savings. It
should be remembered that the additional quarter cent sales tax that went into affect in January
will increase the sales tax paid on everything that requires sales tax.
Alderman Ferrell asked if he understood right that the entire project is 31% complete and that
the Noland WWTP plant is 70% complete.
David Jurgens said that the Noland plant is at 79% completion for the construction project with
Archer Western. The total project dollars spent is approximately $59 million. So we are about
30% complete on dollars spent. We are actually a little ahead of that on work performed because
the checks are always cut after the invoice is received for work done.
In response to a question from Alderman Ferrell, David Jurgens said we are on schedule. He
said the west plant will have water flowing through it in May 2008.
2. Real Estate Transfer Tax Issues
David Jurgens said staff is greatly concerned about the language of paragraph B of the proposed
Real Estate Transfer Tax. The paragraph deals with any fees collected by a city on any new
development or redevelopment. According to this language any fees assessed by the City would
require a vote of the people and this could create a real problem. He just wanted to bring that
paragraph to the attention of the Committee.
3. WSIP Construction Schedule and Cost Update
David Jurgens reviewed the information on the updated schedule. He said that when a contract
is awarded, it is moved from the center column (estimated cost) over to the left column (actual
contract cost). At that point, the number in the right column becomes the actual contingency that
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the City Council approves. He said there are some projects that have been repackaged -
separating out some jobs where it makes more sense and re -sequencing and shuffling some jobs
where it saves money to do one job earlier.
Alderman Cook asked, with the rate at which construction prices change, if staff is still
comfortable with the $38 million estimated.
David Jurgens said he is comfortable with the number, with the caveat that we don't control the
market. He feels we have a good contingency on the project. There is a contingency with each
job as well as an overall contingency amount for the entire project. As a job is completed, any
contingency amount not spent goes back into the overall project contingency. He said that
sequencing the projects intelligently so that one project is closing out at the same time we have
others starting allows us to release contingencies and enables him to feel comfortable with the
numbers. He feels the numbers for all the projects are based off good estimates.
In response to a question from Alderman Cook, David Jurgens said all the letters have gone
out in regard to easements on the east side. We have two unresolved easement issues on the west
side. One looks like it will go to court. On the other, both parties have agreed to a settlement that
should be coming to the Council at the second meeting in February.
David Jurgens talked about the Farmington part of the schedule. He said the scope of work on
this has been changed and that the schedule reflects the changes in costs. He said the Fayetteville
Area Project total cost, the only part of this over which we have complete control, has not
changed.
There being no further business, the meeting was adjourned.
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