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Home My WebLink About119-06 RESOLUTIONRESOLUTION NO. 119-06 A RESOLUTION ACCEPTING A PROPOSAL FROM DUNCAN ASSOCIATES IN THE AMOUNT OF $110,000.00 TO UPDATE THE EXISTING WATER AND WASTEWATER IMPACT FEES, TO CALCULATE FEES FOR THE COLLECTION SYSTEM, AND NEGOTIATE CONTRACTS WITH THE CITIES OF ELKINS, FARMINGTON AND GREENLAND TO PAY FOR AND PROVIDE POTENTIAL WATER AND WASTEWATER IMPACT FEES WITHIN THEIR CORPORATE BOUNDARIES; AND LIMITING THE CITY OF FAYETTEVILLE'S EXPENDITURES TO AN AMOUNT NOT TO EXCEED $55,000.00. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville Arkansas hereby accepts a proposal from Duncan Associates in the amount of $110,000.00 to update the existing Water and Wastewater Impact Fees, to calculate fees for the collection system, and negotiate contracts with the cities of Elkins, Farmington and Greenland to pay for and provide potential Water and Wastewater Impact Fees within their corporate boundaries. A Scope of Services for the proposal, marked Exhibit "A" is attached hereto and made a part hereof. Section 2. That the City of Fayetteville, Arkansas shall not expend more than $55,000.00 for its share of costs for this project APPRO .D By PASSED and APPROVED this 6th day of July, 2006. """""�io, A�.� �FtK/TR� '��. Gt'\SY p SG'. "� ' ATTEST: _� : FAYETTEVILLE • _ By 1/v CAL e✓ & ,(u 9sy KANSc�J*, SONDRA SMITH, City Clerk "'i�TON DAN COODY, Mayor • SCOPE OF SERVICES PROJECT UNDERSTANDING AND APPROACH Fayetteville's water and wastewater system provides service to a number of other jurisdictions. The water system is the most regional—with the exception of the City of Elkins, which owns the distribution system within its city limits, the City owns all of the facilities that serve its water customers, and bills individual customers directly. Out -of -city retail water customers include Johnson, Goshen, Farmington, Greenland and parts of unincorporated Washington County. The wastewater system is less of an integrated regional system. Goshen does not participate in the City's wastewater system, and Farmington, Greenland and Elkins own the sewer collection systems within their city limits. Jurisdiction Fayetteville Johnson Washington Co. (parts) Goshen Farmington Greenland Elkins Water System Ownership Fayetteville Fayetteville Fayetteville Fayetteville Fayetteville Fayetteville Elkins Sewer System Ownership Fayetteville Fayetteville Fayetteville N/A Farmington Greenland Elkins Billing Fayetteville - Fayetteville - Fayetteville - Fayetteville - Fayetteville - Fayetteville - Individual Customers Individual Customers Individual Customers Individual Customers Individual Customers Individual Customers Elkins (Wholesale Customer) This project will produce potentially four (4) impact fee reports — Fayetteville (water and wastewater), Elkins (water and wastewater), Farmington (wastewater) and Greenland (wastewater). Analyses for Farmington, Greenland and Elkins will be undertaken if the consultant is directed to proceed, before commencement of the Fayetteville analysis Each impact fee will be calculated based on projected future demand, and the cost of planned future capital facilities attributable to that demand (an "improvements basedfee). As appropriate each fee will also include the value of current excess capacity, calculated based on acquisition cost (a "recoupment fee"). Water Impact Fees Fayetteville • This fee will include water supply, transmission, storage and distnbution facilities and parts of facilities (existing and planned future) attributable specifically to demand within Fayetteville. The fee will be assessed within Fayetteville. Elkins This fee will include local (in -town) transmission, storage and distribution system facilities and parts of facilities (existing and planned future) attributable specifically to demand within Elkins. This fee will be assessed within Elkins. 1 Wastewater Fayetteville This fee will include (existing and planned future) treatment plant, interceptors, lift stations, and collection system facilities, or parts of facilities, along with piping required to divert existing flows to the new plant, as isspecifically attributable to demand within Fayetteville. The fee will be assessed within Fayetteville Elkins This fee will include local (in -town) transmission and collection system facilities and parts of facilities (existing and planned future) attributable to demand within Elkins. This fee will be assessed within Elkins. Farmington This fee will include local (in -town) transmission and collection system facilities and parts of facilities (existing and planned future) attributable to demand within Farmington. This fee will be assessed within Farmington. Greenland This fee will include local (in -town) transmission and collection system facilities and parts of facilities (existing and planned future) attributable to demand within Greenland. This fee will be assessed within Greenland. Methodology Notes Fees will include service area specific revenue credits (debt, grants and sales tax contributions, for example) and deficiency correction credits, as may be applicable. For the client communities (Elkins, Farmington and Greenland), and in the interest of cost savings, the analytical process will be coordinated by Fayetteville — i e., data acquisition, communications, distribution of work product and compilation of comments, and all other interchange with client communities will be accomplished by Fayetteville staff. In support of a cost-efficient approach, we have also not scheduled meetings with, or presentations for, client communities. Instead we welcome their attendance at meetings scheduled with Fayetteville With respect to impact fee reports for client communities, we will produce one draft report and, based on comments, a revised final report. The analyses will require land use inventories and projections for each of six service areas' (by impact fee property type) projected based on the same time frame for all service areas, and matching the capital improvement plan (QP) time frame, which will be provided by Fayetteville. Each of the impact fees (as above) will require information to support analysis of current Water— Fayetteville retail and Elkins service areas. Wastewater — Fayetteville retail, Elkins, Farmington, and Greenland service areas. Property types include Single Family (dwelling unit), Multi Family (dwelling unit), Hotel (rooms), Retail, Office, Industrial, and Institutional/Other (1,000 square feet) 2 deficiencies and debt, for impact fee credits. This information will be provided by Fayetteville. (Some or all of the information is likely to be on -hand, given the need for periodic demand planning.) The treatment component of the wastewater fee will include the value of plant capacity (new and existing, and capacity that will be made available by implementation of the new plant) and will be calculated based on an undifferentiated average cost per service unit (same cost per demand unit throughout the service area). The City proposes that treatment capacity be defined to include both plants and "appurtenances" - i.e., the existing and new plant, and that part of existing and planned transmission facilities needed to integrate the elements of the treatment system. The supply component of the water fee will include the value of current excess capacity and planned new capacity (as derived from the facility master plan) and will be calculated based on an undifferentiated average cost per service unit (same cost per demand unit throughout the service area). Allocation of the beneficial use of wastewater and water facilities by service area — e g defining the share and quantifying the value of CIP costs uniquely attributable to each service area — will be based on analysis provided by Fayetteville. Credits for sales tax contributions (as may be attributable to each service area) will be defined by consultant based on analysis to quantify the share of tax revenue attributable to each service area. This share analysis will be provided by Fayetteville Likewise, analysis to quantify and value current deficiencies by service area will be provided by Fayetteville. The value of potential debt service credits will be quantified by consultant, based on debt information provided by Fayetteville. Cost for future facilities will be based on existing facility plans, updated as maybe appropriate, by staff estimates. Design years for wastewater plant and underground are different. The plant design year is about 2020. Wastewater transmission/collection design year, after completion of projects in the current master plan, is thought to 'be build -out. This may require analysis to realign and match the planning periods — for example, by quantifying additional plant capacity needed between 2020 and build -out. Analysis to define and value new capacity will be provided by Fayetteville. It is our understanding that, for the wastewater system, stranded transmission and collection system costs attributable to current service provision in Farmington will be recovered by means of separate agreement with Farmington users. Analysis of stranded costs is not included as part of this project. Each fee will be calculated based on number of (single family equivalent) demand units, and projected land use by property type, which will be provided by Fayetteville This will be the basis for calculation of future service demand, and the amount of each impact fee. GIS support for production of maps, and other analysis as may be appropriate, will be provided by the City. This project does not include revisions to the City's impact fee ordinance, which will be handled by the City Attorney. Participating client communities will be provided with a sample impact fee ordinance. 3 WORK TASKS AND DELIVERABLES Phase II: Implementation This second phase entails the preparation of the impact fee study and attendance at public meetings for review and adoption of the revised impact fee ordinance. Task 2.1: Draft Impact Fee Study In this task, the Consultant will prepare the initial draft of the water and wastewater impact fee studies. The report will describe the methodology and formula used to calculate the fees, document all data sources and assumptions, and include a fee schedule that represents the fees that could be charged. At least one full working draft will be delivered to City staff for review and comment prior to delivery of the draft study. Deliverable: Draft Impact Fee Study Task 2.2: Final Impact Fee Study Following review and comment on the draft study by City staff and/or an advisory committee, the Consultant will make appropriate revisions and provide the final drafts. Deliverable: Final Impact Fee Study Task 2.3: Local Meetings and Presentations The Consultant will make up to three person -days of travel to Fayetteville to meet with staff, the City Council and/or other review bodies. Additional participation in meetings may be provided on a time -plus expense or flat -rate basis. Deliverables: Three (3) Person -Trips 4 PROJECT COST Total fee for professional services included in the scope of services is $110,000. The City will be billed monthly for percent completion of each task Cost includes all direct and indirect expenses incurred by Consultants in performing the services, including travel expenses. Additional services beyond those in the scope of services may be negotiated separately or billed on a time plus expenses basis. Fayetteville will be billed for analyses for Farmington, Greenland and Elkins only if the consultant is directed to proceed, before commencement of the Fayetteville analysis. The City of Fayetteville will be responsible for payment of the total amounts shown for Fayetteville and any participating chent cities. e Task Fayetteville Elkins Farmington Greenland Total 2.1: Draft Impact Fee Study $43,105 $21,473 $12,884 $12,884 $90,346 2.2: Final Impact Fee Study $7,095 $3,527 $2,116 $2,116 $14,854 2.3: Meetings (3 person- days) $4,800 $0 $0 $0 $4,800 Total $55.000 $25,000 $15,000 $15,000 $110,000 PROJECT SCHEDULE The project schedule outlined in the scope of services is summarized in the following flowchart. As shown below, the second phase could be completed in six months. Tasks Months from Project Start 1 2 3 4 5 6 2.1: Draft Impact Fee Study.. 2.2: Final Impact Fee Study 2.3: Meetings x x x . y x = meeting/presentation 5 Tim Conklin Submitted By City of Fayetteville Staff Review Form City Council Agenda Items or Contracts 6/20/2006 City Council Meeting Date Planning and Development Mgt Operations Division Action Required: 7/6/0() 19 flout /t o tt s Department Approval of a resolution to accept a proposal from Duncan Associates to update the existing water and sewer impact fees, calculate fees for the collection system, and negotiate contracts with Elkins, Farmington, and Greenland to pay for and provide potential water and sewer impact fees within their corporate boundaries. $110,000 Cost of this request Sycv— /M — S5c44-00 Account Number Project Number Budgeted Item $ . J,2 /300, 0o Category / Project Budget $ J 36o, oo Funds Used to Date -e Program Category / Project Name Program / Project Category Name Remaining Balance Fund Name Budget Adjustment Attached City Attorney 42,1s( Fan l Service Dir or a_ Mayor Comments: (0-20 G' Date (Dat 6/6./06, Date 1312 _1 Date Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: (Received in City Clerk's Office Received in Mayor's Office EN D "Terh/ze/ s/a 7A/D6 • 06 ayettevll1e ARKANSAS THE CITY OF FAYETTEVILLE, ARKANSAS TO: THROUGH: FROM: DATE: SUBJECT: Mayor Dan Coody Fayetteville City Council Gary Dumas, Operations Director Steve Davis, Finance and Internal Services Director Tim Conklin, Planning and Development Director June 2, 2006 Approval of a resolution to accept a proposal from Duncan Associates to update the existing water and sewer impact fees, calculate fees for the collection system, and negotiate contracts with Elkins, Farmington, and Greenland to pay for and provide potential water and sewer impact fees within their corporate boundaries. RECOMMENDATION Staff recommends approval of a resolution to accept a proposal from Duncan Associates to update the existing water and sewer impact fees, calculate fees for the collection system, and negotiate contracts with Elkins, Farmington, and Greenland to pay for and provide potential water and sewer impact fees within their corporate boundaries. BACKGROUND • • The City of Fayetteville approved a bid waiver ordinance on October 18, 2006 to hire Duncan Associates to complete Phase 1 of the contract in the amount of $12,300. Phase 1 included the development of the scope of work and contract to update the existing fees to include the wastewater interceptor and collection system. The current fees are based on the historical and estimated costs for the water transmission, storage, and distribution system and the estimated costs for the planned 10 million gallons per day wastewater treatment plant capacity improvements. The wastewater fee did not include the proposed collection system and associated lift stations. Staff is recommending updating the existing 2002 calculated water and wastewater impact fees to: 1) reflect ci trent construction costs; 2) calculate impact fees for new capacity created as part of wastewater collection system; and 3) calculate specific impact fees for outside jurisdictions served by the Fayetteville system. Most communities update their fees on a three -to five-year cycle to reflect fluctuations in infrastructure construction costs. BUDGET IMPACT The update to the existing impact fees and adding in the collection system will allow new development to pay its proportionate share of infrastructure capacity costs. RESOLUTION NO. A RESOLUTION ACCEPTING A PROPOSAL FROM DUNCAN ASSOCIATES IN THE AMOUNT OF $110,000.00 TO UPDATE THE EXISTING WATER AND WASTEWATER IMPACT FEES, TO CALCULATE FEES FOR THE COLLECTION SYSTEM, AND NEGOTIATE CONTRACTS WITH THE CITIES OF ELKINS, FARMINGTON AND GREENLAND TO PAY FOR AND PROVIDE POTENTIAL WATER AND WASTEWATER IMPACT FEES WITHIN THEIR CORPORATE BOUNDARIES. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville Arkansas hereby accepts a proposal from Duncan Associates in the amount of $110,000.00 to update the existing Water and Wastewater Impact Fees, to calculate fees for the collection system, and negotiate contracts with the cities of Elkins, Farmington and Greenland to pay for and provide potential Water and Wastewater Impact Fees within their corporate boundaries. A Scope of Services for the proposal, marked Exhibit "A" is attached hereto and made a part here. A PASSED and APPROVED this 20th day of June 200&.. APPROVED: AN CO,ODY, Mayor By SoNDRA4SIMIIT PCitty Clerk 1 Clarice Pearman - Duncan Assoc Page 1 • From: Clarice Pearman To: Conklin, Tim Date: 6.6.06 4:53PM Subject: Duncan Assoc Tim, You 6120106 agenda item for water & wastewater impact fees for Duncan Associates is incomplete in that your budget adjustment is not signed by you or your department head. Please see that the city clerk's office get a signed copy. Thanks. Clarice CC: Smith, Sondra [(Clarice Pearman - Res. 119-06 Page 1 il From: Clarice Pearman To: Conklin, Tim Date: 7.14.06 3:32PM Subject: Res. 119-06 Tim, Attached is a copy of the above resolution passed by City Council, July 6, 2006 regarding Duncan Associates. I will forward to budget the original budget adjustment via interoffice mail. I will also forward to you via interoffice mail two of three original agreements If anything else is needed please let me know. Thanks. Clarice CC: Fell, Barbara Clarice Pearman - Fwd: Res. 119-06 Page 11 From: Clarice Pearman To: Audit Date: 7.14.06 3:37PM Subject: Fwd: Res. 119-06 Sorry, somehow it get attach you two to receive a cc »> Clarice Pearman 7.14.06 3:32:47 PM »> Tim, Attached is a copy of the above resolution passed by City Council, July 6, 2006 regarding Duncan Associates. I will forward to budget the original budget adjustment via interoffice mail. I will also forward to you via interoffice mail two of three original agreements If anything else is needed please let me know. Thanks. Clarice •