HomeMy WebLinkAbout134-15 RESOLUTIONRESOLUTION NO. 134-15
A RESOLUTION TO EXPRESS THE CITY COUNCIL'S AGREEMENT
THAT THE CITY SHOULD FACILITATE THE CONSTRUCTION AND
FINANCING OF A WATER MAIN ALONG HABBERTON ROAD BY
ACCEPTING DEBT SERVICE PAYMENTS AS PART OF THE
CUSTOMERS' WATER BILLS AND REMITTING THOSE PAYMENTS TO
THE FINANCING ENTITY
WHEREAS, more than a dozen residences and a church along Habberton Road would like to
have Fayetteville water, but would need to build and pay for a water main along Habberton Road
to the existing city main along Highway 45 for such water service; and
WHEREAS, these potential water customers are all within the Fayetteville Water District and
entitled to our city water if a water main is extended to their properties; and
WHEREAS, the estimated cost of this water main would be about $100,000.00 and can be
financed by Community Resource Group which administers the CRG Loan Fund for Water and
Wastewater lending; and
WHEREAS, the proponents of this financing plan have agreed to secure the signed agreements
of the residents of Habberton Road who desire to pay for and receive the benefits of the new
water main to provide clear authority for the City of Fayetteville to collect not only the normal
water bill fees, but an additional debt services payment from each customer.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby expresses
agreement that the City should facilitate the construction and financing of a water main along
Habberton Road by accepting debt service payments as part of the customers' water bills and
remitting those payments to the financing entity.
PASSED and APPROVED this 4h day of August, 2015.
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City of Fayetteville, Arkansas 113 West Mountain Street
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.. Text File
File Number: 2015-0327
Agenda Date: 8/4/2015 Version: 1 Status: Agenda Ready
In Control: City Council Meeting File Type: Resolution
Agenda Number: A. 9
HABBERTON ROAD WATER MAIN CONSTRUCTION
A RESOLUTION TO EXPRESS THE CITY COUNCIL'S AGREEMENT THAT THE CITY
SHOULD FACILITATE THE CONSTRUCTION AND FINANCING OF A WATER MAIN ALONG
1 ABBERTON ROAD BY ACCEPTING DEBT SERVICE PAYMENTS AS PART OF THE
CUSTOMERS' WATER BILLS AND REMITTING THOSE PAYMENTS TO THE FINANCING
ENTITY
WHEREAS, more than a dozen residences and a church along Habberton Road would like to have
Fayetteville water, but would need to build and pay for a water main along Habberton Road to the
existing city main along Highway 45 for such water service; and
WHEREAS, these potential water customers are all within the Fayetteville Water District and entitled
to our city water if a water main is extended to their properties; and
WHEREAS, the estimated cost of this water main would be about $100,000.00 and can be financed by
Community Resource Group which administers the CRG Loan Fund for Water and Wastewater lending;
and
WHEREAS, the proponents of this financing plan have agreed to secure the signed agreements of the
residents of Habberton Road who desire to pay for and receive the benefits of the new water main to
provide clear authority for the City of Fayetteville to collect not only the normal water bill fees, but an
additional debt services payment from each customer.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the City Council of the City of Fayetteville, Arkansas hereby expresses agreement that
the City should facilitate the construction and financing of a water main along Habberton Road by
accepting debt service payments as part of the customers' water bills and remitting those payments to
the financing entity.
City of Fayetteville, Arkansas Page 1 Printed on 713012015
Legistar ID No.: dOl 5 0,3 a2'7
AGENDA REQUEST FORM
FOR: Council Meeting of August 4, 2015
FROM:
City Attorney Kit Williams
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
A RESOLUTION TO EXPRESS THE CITY COUNCIL'S AGREEMENT THAT
THE CITY SHOULD FACILITATE THE CONSTRUCTION AND FINANCING
OF A WATER MAIN ALONG HABBERTON ROAD BY ACCEPTING DEBT
SERVICE PAYMENTS AS PART OF THE CUSTOMERS' WATER BILLS AND
REMITTING THOSE PAYMENTS TO THE FINANCING ENTITY
APPROVED FOR AGENDA:
City Attorney Kit Williams Date
OFFICE OF THE
CITY ATTORNEY
TO: Mayor Jordan
. City Council
CC: Don Marr, Chief of Staff
Paul Becker, Finance Director
Tim Nyander, Utilities Director
FROM: Kit Williams, City Attorney Or
DATE: July 15, 2015
RE: Habberton Road proposed new water main
Kit Williams
City Attorney
Blake Pennington
Assistant City Attorney
Patti Mulford
Paralegal
Several landowners along Habberton Road within the City's water
district would like to obtain access to city water. Many established houses
and a church are currently using wells which are not very satisfactory. A
farm on the road was recently sold and subdivided into four large lots
where it is anticipated that houses will be built. Rather than spending
around $15,000.00 or more to dig a well for each house, the residents would
like to pool their resources to pay the costs of extending the water main
along Habberton to reach a dozen or more new customers.
As always, money is the primary concern. While the new house
purchasers and a couple other could pay their share immediately, several
others would have to pay their portion over time. Engineer Mel
Milholland has priced the project (a three inch main reducing to a two inch
main about half way down the new run) at around $100,000.00. Mel has
had dealing with the Community Resource Group which administers the
CRG Loan Fund for Water and Wastewater Lending. Jerry Kopke (4443-
2700 ext. 128) is the Arkansas State Coordinator for CRG.
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While the City should require that the new house builders and other
residents who could pay their share immediately do so to reduce the
overall debt and the City administrative costs, CRG or other financing
entity would like the other new customers to be able to pay the debt to
CRG by the City adding an agreed amount to the customers' water bills for
a number of years. They would be responsible to secure individual
written, signed agreements by each such water customer to accomplish
this.
Finance Director Paul Becker has agreed, conditioned upon City
Council approval, to have his department collect the extended debt
payments from water customers unable to pay their portion up front for a
period of not to exceed five years. A nominal fee may be assessed by our
billing department for their administrative costs.
The City is not required to extend water mains (especially outside the
City limits) to potential water customers within our Water District.
However, the provision of good Beaver Lake water to persons within our
Water District who now have only insufficient and unsatisfactory well
water should be accomplished if it can be done with little or no real cost to
our existing water customers.
My reading of § 159.02 Water and Wastewater Impact Fees (A)
Applicability would require these Habberton Road new water customers (as
all new water customers) to pay a water impact fee of at least $971.00 each.
This water impact fee "shall be paid at the time of installation of the water
meter serving the property ...."
The proposal was presented to the Aldermen's Water and Sewer
Committee on July 14, 2015. After discussion including Engineer Mel
Miholland's presentation, the Water and Sewer Committee unanimously
recommended this proposal be submitted to the full City Council and
recommend its approval.
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