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HomeMy WebLinkAbout2008-06-10 - MinutesCity Council Water & Sewer Meeting Minutes June 10, 2008 Page l of 10 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 June 10, 2008 A meeting of the Fayetteville City Council Water & Sewer Committee was held on June 10, 2008 at 5:45 p.m. in Room 326 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; Alderwoman Adella Gray STAFF PRESENT: David Jurgens; Gary Dumas; Paul Becker; Ron Petrie; Kit Williams OTHERS PRESENT: Steve Davis, Davis Business Planning (representing the cities of Farmington and Elkins) Chairman Kyle Cook called the meeting to order. 1. Approve Minutes Alderman Ferrell moved that the Water & Sewer Committee meeting hold on May 13, 2008 be approved as distributed. Alderman Jordan seconded the motion and it carried unanimously. David Jurgens gave the committee an update on the status of the West Side WWTP. Ribbon Cutting is Thursday, June 12, 2008. He said everything is going very well. 2. Mt. Seguoyah Pressure Plane David Jurgens welcomed the residents from the Mt. Sequoyah area. He said at the last meeting we identified the need and the reasons for the need and now we are ready for discussion and public input. He said we need this due to inadequate water storage and fire protection in this area. The Health Department sent a letter several months ago asking for the status of the project. (following up on a letter sent three years ago stating the need for the project). The project was identified when the subdivision at the top of the hill on Canterbury Drive was platted. The lot was deeded by plat to the City at that time for a future water tank site. It was re-emphasized as an immediate need in the 1988 Water Master Plan and again in the 1996 Water Master Plan and remains an immediate need. Essentially we have 250,000 gallons of storage in a pressure plan that requires 1 million gallons of storage minimum. Alderman Cook opened the floor for public comment. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 2 of 10 Chip Wright said back in 1991 he pointed out to the Committee that the City does not own the lot. There has not been a formal dedication nor has there been an acceptance of the dedication by the City. He said the lot is owned by the Hyland Park Homeowners Association Phase IL He asked on what basis the City believes the ownership of this lot rests with the City. Alderman Cook asked staff if this is an accurate assessment. Kit Williams said he has not done any research on this yet. He is here today to listen to the arguments and then he will look at the plat and the information. David Jurgens said in the Washington County records he has seen the lot is in the City of Fayetteville's name. The City has been paying taxes on the lot since 1995. He believes it has been in the City's name since the plat was recorded but he doesn't remember all the history. Bill Clark said he believes Mr. Wright is absolutely correct but that Mr. Williams will figure it out. He said the property was never conveyed by Hyland Park Inc., the developer, to the City. There was some sort of notation on the plat but that is all. This issue came up in 1993 and he and his neighbors asked the developer, Hyland Park, Inc. to convey the property to their homeowners association. That was done by a deed filed on July 16, 1993. They tried to pay taxes but were refused because the County records show the property is owned by the City. He believes this to be incorrect. He said the homeowners association has maintained the property for 34 years. He said they believe that because the City did not get a dedication 34 years ago it has waived its right to this property. He said there is no question the City can condemn the property and put a water tower on it. They are asking that we not do this, citing the diminished property values that he believes will result. He said the City will be doing them a great disservice by putting a water tower in this location. They believe there are other solutions to the water pressure problem. Though this may be the cheapest site, he believes the fallout from the issue will ensure that it ultimately will not be the cheapest site monetarily or in terms of public relations. Jim Lindsey said he and Coach Broyles developed this area. He pointed out the reason the lot was offered is that there was no water pressure on top of the mountain. He said they went in on Hyland Park I and installed a pump system to provide the pressure. David Jurgens said the Mt. Sequoyah water tank supplies the pressure but the water is pumped up by the Hyland Park pump station (as well as another pump station on Rogers Drive). Jim Lindsey said the pump station was needed at the time and they put it in at their expense. He said the lot was set aside for a future tower to supply water for Hyland Park II and not to support the system for the whole City of Fayetteville to the east. It was for the benefit of the top of Hyland Park. He said he had heard that this water tower would not even benefit the top of Hyland Park but is designed to take care of the growth to the east. David Jurgens said that is incorrect. He said the issue is that there is not enough flow volume to provide fire protection throughout the pressure plane, including this hilltop. The tower would provide direct benefit to the Hyland Park hilltop as well as the other areas on the pressure plane. It is not designed to provide for future growth except for the very small area on top of Canvas Mountain. It is not a future issue but an immediate need that has been identified for 20 years. Jim Wasseleus said he and his wife probably have the most to lose because the tower would be placed directly in front of their house. He said he has taken care of the lot for 20 plus years. He 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 3 of 10 said the value of his home will go to nothing with this tower there. He appreciates all the efforts of the committee and hopes they will make the right decision for everyone Tony Meyer said he read the engineering report and knows there are four options. He said if Mr. Clark is right that the value of their homes will go down, he feels the other options are better choices. He said he understands that all four options are technically equal. David Jurgens said all four options would provide adequate pressure to the pressure plane. Having balanced tanks on the two sides of the pressure plane is a lot better because you don't have to pump the water as far. A lot more piping would be involved (with other options). Saying they are all equal from a water standpoint isn't accurate. If you have to put in more piping, it means more work to be done and a lot more potential for error. However, all four options accomplish the bottom line water system mission. Tony Meyer said that ultimately there may be cheaper options than what the study suggests. Doug Kuntz said he has lived on Canterbury since 1982. He said many people have spent a lot of time and effort making the area one of the most livable places in Fayetteville. He believes everyone at the table wants to do right for the citizens and he believes they will do the right thing. A member of the audience said that there are restrictive covenants in the area that restrict set backs as well as fencing requirements and he suggested that building a tower at this site would break those covenants, adding more expense. He said the expense to this site just keeps going up. There being no further comment, Alderman Cook closed the floor to the public. Alderman Jordan said he would like to know who owns the property. Kit Williams asked Bill Clark if he could send him his best arguments for why the property does not belong to the City and that we have abandoned the property. He said he will look at that with an open mind as well as do his own research. He spoke of inverse condemnation and gave an example of a case that was rejected by the Supreme Court. They said that a government has to put things somewhere and they are not required to compensate property owners for decrease in the value of their property. He said if we take a portion of a piece of property and devalue the rest, then that is a typical inverse condemnation issue and we would be required to compensate that landowner for the remainder of his property. But to build on our own property (assuming that this lot is our property) he believes would not give the right to an inverse condemnation claim against the City. However that doesn't mean this would not be a factor in the Council's decision about where to locate the tank. Chip Wright spoke again regarding the fact that he found nothing in the records that spoke of a dedication or deeding of the lot to the City. He said the City's tax payment for eleven years doesn't hold up against what the homeowners' association has done. Bill Clark said WACO Title said the homeowners' association is the legal owner of the property. There is a quitclaim deed from the developer to the Hyland Park Homeowners Association Phase Il. WACO said they could not give him a title policy because the City has some claim and has been paying taxes on the property. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 4 of 10 Kit Williams asked that Mr. Clark give him something in writing similar to what he has said tonight, including any old cases he believes might support his case. He said he would look at that and then give his best opinion to this Committee and the Council as to the status of the property. It sounds like it is not going to be crystal clear in one direction or the other. David Jurgens said it appears there is a lack of clarity about what the water tower would accomplish and why we have the need for it. He said he and his staff would be happy to meet with their group to talk about the purpose and impacts, etc. He said his predecessor did meet with several folks back in 2003 when the study was first done. In response to a question from Bill Clark, Kit Williams said such a meeting is permissible. Alderman Cook closed the discussion regarding this topic saying that Mr. Jurgens would meet with the neighborhood. 3. WSIP Update David Jurgens said everything is going well with the WSIP. The cutover for the new West Side plant is going smoother than expected. He reviewed some of the contracts in the WSIP and said bids would be opened a week from Thursday for the last job at the Noland plant. There is one more big line job to do and bids will be opening for that in July or early August. After that bid comes in we will be talking about the Owl Creek issue, where to put the lift station, etc. The Committee had discussed this at an earlier meeting but the decision was deferred until we see how much money remains in the project itself. As it looks right now we are going to have between $1 million and $1.5 million remaining in the contingency. All of the west side lines except one have come in under the approved contingency. The last work won't be done until the end of 2009 and the design on the Owl Creek project may push the date out further. He said the Farmington work is going smoothly. a. West Side WWTP Change Order Number 5 David Jurgens said this will be the final change order and he hopes to get it before he goes on military leave. If not, it will be around mid July. b. West Side WWTP and Collection Systems Tools and Spare Parts David Jurgens said we budgeted for tools and spare parts for the West Side plant and we are sharing equipment with other locations where we can. We are only stocking those items that have to be kept on-site. He said the Wedeco piece is a proprietary item and if we lose bulbs in the disinfection process, the water goes to the creek not meeting permit requirements. Some of the hardware in the specifications had spare parts included and some did not 1. West Side WWTP Security and Operational Camera David Jurgens said he vetted the quote received by Brasfield & Gorrie on this item through the City's IT division and it was determined that we could probably save $20,000 to $25,000 by doing the work in-house. He requested this item proceed forward to the Council for approval. In response to a question from Alderman Jordan, David Jurgens said the security camera is not a no -bid contract. We received three quotes which are attached to the agenda. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 5 of 10 Alderwoman Allen moved that the West Side WWTP Security and Operational Camera contract move forward to the City Council Alderman Jordan seconded the motion and it passed unanimously. 2. Sewer Line Televising Equipment David Jurgens said the biggest line we can maintain in the sewer system right now is a 30" diameter line. We are increasing to about ten miles of 42" and 48" line and we have to have the ability to inspect these pipes from the inside. The camera we have right now is a crawler designed for a maximum size of 18" diameter pipes. We already have the camera equipment but this item is a crawler with four wheels which is designed to through larger diameter pipes. This is a non-competitive bid item because the crawler has to synchronize completely with the equipment we have. He asked that this item go to the next City Council meeting for approval. The Committee agreed that this item should be forwarded to the Council. 3. Ultraviolet Disinfection Parts and Equipment David Jurgens said this is a proprietary system for ultraviolet disinfection. We are pleased with how well the system is working but if the bulbs go out, we lose our disinfection so parts are critical. This is the last line of defense before the water hits the creek. Because this is a proprietary system, this is a no -bid item. In response to a question from Alderman Cook, David Jurgens said the shelf life of these bulbs is rated at five to seven years. But when the bulbs begin to get dim, they have to be replaced. The rule of thumb is that you can figure on getting a year and a half to two years but it is possible some could go out tomorrow. In response to a question from Alderman Jordan, David Jurgens said this is a no -bid item because no other bulb or ballast will fit this equipment. This is still a patented process and no one else can make the replacement bulbs. Once the patent expires, others may make the bulbs. The Committee agreed to forward this item on to the full City Council. C. WL -6 Change Order Number 5 David Jurgens said this is a reduction change order in the amount of $73,000. He said he had expected this to be a final change order but there will be one more small one to make changes to allow for a higher electrical load. d. Contract Legal Review -West Plant Construction Contract. David Jurgens said this review is under way. We have not received a report as yet. e. WSIP Easement Update David Jurgens said staff has not had the opportunity to go out and walk EL -3 and EL -5 yet. They hope to do it by the end of the week and have the plans and specs finalized so staff can work on it while he is on military leave. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 6 of 10 f. WSIP Construction Schedule & Cost Update David Jurgens distributed an updated WSIP Construction Schedule & Cost Update (Rainbow Sheet). In response to a question from Alderman Cook, David Jurgens said the containment pond at the Noland Plant is substantially complete. We are now processing the final punch list. David Jurgens said there haven't been any substantive changes. He said the Fayetteville Project area total is remaining at about $178.5 million. The net Fayetteville cost remains exactly the same at $180,683,701. Only a few projects are left to put out to bid — the Owl Creek Lift Station, EL -3 and EL -5, the East Plant final contract (EP -3) and the last part of the Farmington interceptor. The bottom line contingency for Fayetteville remains at $9.5 million. He said he expects it to change based off the last two big bid items remaining. 4. Impact Fee Discussion David Jurgens said staff has put together some information on starting points for discussion for impact fee implementation. Gary Dumas said the committee had suggested at the last meeting a $700 maximum first year implementation. There was discussion that the majority of that ($663) would go to the needs of the water system. If $700 is approved for the first year, the idea would be to increase it by $700 each year until we reach the maximum amount. Alderman Jordan said it would be revaluated each year by the Committee. Alderman Ferrell clarified that the Committee would approve the one year and then re-evaluate it every year. Gary Dumas said the information distributed gives a system to accomplish maximum implementation if that is what the Committee is interested in. It would take three years at $663 to reach the maximum impact fee for water (system only). The $37 (left from the $700) added to $301 in year 2011 will reach the sewer system maximum as recommended by the report. Alderman Jordan said it finally ends up to be around $5600 — if needed. It comes back to the Water & Sewer Committee every year for re-evaluation. Gary Dumas said by 2011 we will have implemented a system impact fee for both water and sewer. After that we can begin looking at the local portion. Other cities can implement a local impact fee any time they choose. In 2011 (the same year the sewer reaches maximum system impact fee) we can put $399 into the water local if the committee chooses. That (water local) would reach maximum in 2011 and in 2014 the sewer local would reach maximum. Alderman Cook said Mr. Dumas is saying we want to bring the system up quickly first. Alderman Jordan said that is fine — as long as we don't get any higher than the $1850 that we are going to need. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 7 of 10 Gary Dumas said the system is the most critical. That's the big stuff. He said $700 seemed like a reasonable number the other day when discussed. He said when you get into the bigger line sizes, that impact fee does grow proportionally and becomes a fairly significant number. Alderman Jordan said this is what he wants to do. Alderman Cook said the Committee discussed phasing in the fee and asked staff to identify the needs and how it could be phased in to satisfy those needs. From Mr. Dumas' presentation it appears it can be phased in and still satisfy our needs. Alderman Jordan said we can still get a review every year and we may not need as much the next year. Gary Dumas said staff has tried to implement as little as possible. He said that he believes implementing a fee at whatever level is more important than what that level is right now. Alderman Ferrell asked what the recommended total for water and wastewater will be and when the effective date will be for implementation. Gary Dumas said it is proposed to be implemented sometime in 2008. David Jurgens said an actual date will depend on when the ordinance is done. The very earliest it could be is in August and it will probably be September. Gary Dumas said toward the end of the year is the most logical time. He said it could be January 1 if the Committee so chooses. He said at implementation the fee amount for single family residential equivalent for water would be $971 and $872 for sewer. The total is $1843. Alderman Ferrell asked for clarification in stating that if the Committee takes a vote today to send this to the City Council, the vote would be that the $1843 would be the first year implementation for the new water and wastewater fee for 2008 and each subsequent year we would revisit and review it. Alderman Jordan agreed that is right. Alderman Ferrell asked how often we have to have an analysis or study. Gary Dumas said given the difficulty in raising rates, he suggests that the Committee implement the full schedule and say the Committee will review it every year. Alderman Ferrell said that's exactly what he thought. Gary Dumas said he suggests we bring in a consultant and do a study every three to four years. Paul Becker said he would say every three to five years. Gary Dumas said if the 2008 (first) increment is approved, it would take affect in probably six months — say January 1, 2009. Sometime in the middle of 2009 the Committee would review it for second year implementation date in January 2010. He suggested that for reference purposes, 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 8 of 10 the table of fees that has been discussed here tonight go into the ordinance so the Committee will have a number to look at each year Alderwoman Gray agreed that is a good idea. Alderman Ferrell moved the staffs suggested fee increase of $1843 with an effective date of Jan. 1, 2009 and a suggested reevaluation in July or August 2009 for the next year (with no other rates attached) be forwarded to the City Council for approval. Alderman Jordan seconded the motion. The motion passed unanimously. Alderman Cook opened the floor for public comment Steve Davis suggested referencing the date of the study so developers or others looking at multi- year development projects would be informed of potential increased impact fees for the future. David Jurgens suggested attaching all the tables as presented to the City Council agenda packet. It wouldn't be part of the ordinance but it will be part of the public record. Alderman Jordan so recommended and the Committee agreed unanimously. Ron Petrie said the Committee will see the actual ordinance before it goes to the City Council. There are some minor revisions to the ordinance that staff would like the Committee to consider. 5. Decentralized Sewer Discussion David Jurgens said Tim Conklin drafted a white paper for decentralized sewer before he left. Gary Dumas brought the Committee's attention to a paragraph in the white paper reading that as a policy, wastewater impact fees should be adopted and collected to recoup future infrastructure. This would be a charge that impact fees would have to be paid at the outset so the money would be there even though there wouldn't be a system there yet. Alderman Cook asked if someone is charged the impact fee and we have to spend that impact fee within five years, what if that customer never gets the sewer service. Even if we are increasing the capacity in that area, the sewer service might not reach that house. Gary Dumas said we would use the impact fee money; it just wouldn't be used to give that customer service. That's the way impact fees are now. The fee is used for the system, and doesn't have to be used for a particular house. Ron Petrie said it is written in the ordinance that the fee is spent as it is received, citywide. Gary Dumas said staff believes that at some point in time the on-site waste disposal system will fail and will require municipal intervention. So that is a liability the City has out there. Alderman Cook said he can see the argument of a future liability of the City. Ron Petrie said the ordinance does allow that an acceptable use of impact fees is to extend sewer to a development. They could actually get credit and extend it up front. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 9 of 10 David Jurgens said if the white paper matches the Committee's approval the ordinance can be updated based on what it says Alderman Cook said he thought we should tweak the ordinance and go ahead and take it to the City Council. Alder -woman Lucas said she thought the ordinance says we are not going to allow decentralized systems to be developed in the City. The ordinance addresses those that are already in the City and those that might be annexed in. She wondered if we are going to allow someone to build a decentralized system in the City. David Jurgens said no. But the ordinance recognizes that there are some unusual circumstances whereby the Council on appeal could allow them within the City limits. It would not be a staff or planning commission level approval — it would only be through the City Council. In response to a question from Alderwoman Lucas, David Jurgens said the State code addresses the size of the lot required and the permitting needed from the State for an individual septic tank so our ordinance does not address this. This ordinance only addresses community decentralized sewer systems. In response to a further question from Alderman Lucas, David Jurgens said there is a possibility that the City Council could make the decision to allow a decentralized sewer system in the City. No one below the Council could make the decision. Alderman Cook suggested that staff revise the ordinance based on the white paper and then take this to the City Council. 6. Johnson Water and Wastewater Agreement David Jurgens said the City of Johnson sent a letter requesting contracts pertaining to water and sewer service in the area south of Clear Creek in Johnson. He said we currently provide wastewater to areas of Johnson south of Clear Creek and by agreement with Beaver Water District we already provide water service to all of Johnson south of Clear Creek, with one small exception. The City of Johnson wants to formalize the agreements pertaining to water and sewer service. He said he thinks we should keep the two separate. We do have an agreement with Beaver Water District (vetted through ANRC) whereby we provide water services to this area but it is not an agreement with Johnson. In response to a question from Alderman Jordan, Gary Dumas said although we current provide services, we have not provided any new sewer service, particularly west of Gregg Street. Alderman Jordan asked if this would allow new sewer service west of Gregg Street. David Jurgens said he thinks that is what they are looking for. They want to know the rules. Alderman Cook said we already had one project ask for service and they were denied. Gary Dumas said as the Committee is aware, staff is in negotiations with Johnson about some potential de -annexations. He said it might be in our best interests to continue that negotiation adding this item to the discussion. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Water & Sewer Meeting Minutes June 10, 2008 Page 10 of 10 Alderman Ferrell said he thinks when we consider this we need to look at it as an economic development factor. Alderman Cook asked how quickly the negotiations are moving. Gary Dumas said they are still talking. At the last meeting with Johnson they asked this question and he told them he couldn't make a commitment on it. He told them they would need to make the request through the Mayor and this Committee. He thinks it is in our best interest to keep this as a part of the negotiations. Alderman Ferrell said he concurs. Alderwoman Gray agreed. Alderman Jordan restated that he isn't running any more outside lines. David Jurgens said we do provide water in Johnson so there are utility impacts to look at also. Alderman Cook asked if the Committee has to respond to this right now. Gary Dumas said they don't have to but he has no reason to go back and talk to Johnson more until a decision is made. He has to have an answer before he can continue discussions. He said he would like to have the answer tonight. Alderman Ferrell moved that the Water & Sewer Committee will agree to consider this as we move forward with negotiations with the City of Johnson. Alderwoman Gray seconded the motion and it carried unanimously. EPA STAG Grant Notification David Jurgens said we did get a STAG grant in 2008 for $286,400. It is a matching grant and has to come to the City Council for approval. He said we have been using STAG grants since 2004. We do have enough matching funds in the project and he would ask that this go forward to the City Council. The Committee agreed to send this forward to the City Council for approval. 9. Next Water & Sewer Committee Meetine The next Water & Sewer Committee meeting was scheduled for July 29, 2008. There being no further business, the meeting was adjourned. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org