HomeMy WebLinkAbout104-20 RESOLUTIONF FAYETr"Oil
4RKANS AS
113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 104-20
File Number: 2020-0024
2019 DRAINAGE IMPROVEMENTS BOND PROJECT:
A RESOLUTION TO APPROVE THE PURCHASE OF PROPERTY LOCATED AT 923 WEST
CATO SPRINGS ROAD FROM MIGUEL AND JUANITA CONTRERAS FOR THE AMOUNT OF
$92,000.00 TO REDUCE FUTURE FLOOD DAMAGE AND RESTORE FLOOD CAPACITY IN THE
AREA, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $3,000.00 TO COVER ALL
ASSOCIATED CLOSING COSTS, TO APPROVE INTERNAL CHARGES IN THE AMOUNT OF
$1,500.00, AND TO APPROVE A BUDGET ADJUSTMENT - 2019 DRAINAGE IMPROVEMENTS
BOND PROJECT
WHEREAS, the home at 923 West Cato Springs Road is located within the floodway and has flooded
multiple times according to city records; and
WHEREAS, the City participates in the Federal Emergency Management Agency Community Rating
System, which currently provides a 10% discount on most flood insurance policies within the city limits
but the City's rating and the associated discount can be negatively affected by having too many
structures within the floodway; and
WHEREAS, unless removed, the house would need to be elevated at least 7.5 feet above grade to comply
with current codes; and
WHEREAS, City staff recommends purchasing the property and removing the structure so that the areas
within the floodway will be open space.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Page 1 Printed on 3117120
File Number. 2020-0024
Resolution 104-20
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the purchase of
property located at 923 West Cato Sprigs Road from Miguel and Juanita Contreras for the amount of
$92,000.00, approves a project contingency in the amount of $3,000 and further approves internal charges
in the amount of $1,500.00.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan
to sign all documents necessary to effectuate the purchase authorized by this Resolution.
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment,
A copy of which is attached to this Resolution.
PASSED and APPROVED on 3/16/2020
Attest:
may.. •��..
sv, FAYETTEVILLE;
Kara Paxton, City Clerk Treasurer %A��,P�.'��
sy.. J
Page 2 Printed on 3117120
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
u % Text File
File Number: 2020-0024
Agenda Date: 3/16/2020 Version: 1 Status: Passed
In Control: City Council Meeting File Type: Resolution
Agenda Number: C. 7
2019 DRAINAGE IMPROVEMENTS BOND PROJECT:
A RESOLUTION TO APPROVE THE PURCHASE OF PROPERTY LOCATED AT 923 WEST CATO
SPRINGS ROAD FROM MIGUEL AND JUANITA CONTRERAS FOR THE AMOUNT OF
$92,000.00 TO REDUCE FUTURE FLOOD DAMAGE AND RESTORE FLOOD CAPACITY 1N THE
AREA, TO APPROVE A PROJECT CONTINGENCY IN THE AMOUNT OF $3,000.00 TO COVER
ALL ASSOCIATED CLOSING COSTS; TO APPROVE INTERNAL CHARGES IN THE AMOUNT
OF $1,500.00, AND TO APPROVE A BUDGET ADJUSTMENT - 2019 DRAINAGE
IMPROVEMENTS BOND PROJECT
WHEREAS, the home at 923 West Cato Springs Road is located within the floodway and has flooded
multiple times according to city records; and
WHEREAS, the City participates in the Federal Emergency Management Agency Community Rating System,
which currently provides a 10% discount on most flood insurance policies within the city limits but the City's
rating and the associated discount can be negatively affected by having too many structures within the floodway;
and
WHEREAS, unless removed, the house would need to be elevated at least 7.5 feet above grade to comply
with current codes; and
WHEREAS, City staff recommends purchasing the property and removing the structure so that the areas
within the floodway will be open space.
NOW, THEREFORE, 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 authorizes the purchase of
property located at 923 West Cato Sprigs Road from Miguel and Juanita Contreras for the amount of
$92,000.00, approves a project contingency in the amount of $3,000 and further approves internal charges in
the amount of $1,500.00.
Section 2: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign
all documents necessary to effectuate the purchase authorized by this Resolution.
City of Fayetteville, Arkansas Page 1 Printed on 3117/2020
File Number: 2020-0024
Section 3: That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment, a
copy of which is attached to this Resolution.
City of Fayetteville, Arkansas Paye 2 Printed on 3117/2020
Alan Pugh
Submitted By
City of Fayetteville Staff Review Form
2020-0024
Legistar File ID
2/4/2020
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
2/28/2020 ENGINEERING (621)
Submitted Date Division / Department
Action Recommendation:
Authorization to purchase the property and structure located at 923 W Cato Springs Road, in the amount of
$92,000 plus a $3,000 contingency for the associated closing costs and taxes to reduce future flood damage and
restore flood capacity in the area, and $1,500 for Internal Charges and approval of a budget adjustment.
4604.860.7405-5805.00
Account Number
46040.7405
Project Number
Budgeted Item? Yes
Does item have a cost? Yes
Budget Adjustment Attached? Yes
Purchase Order Number:
Change Order Number:
Original Contract Number:
Comments:
Budget Impact:
4604 - Drainage Projects 2019 Bonds
Fund
Drainage Projects (2019 Bonds), Floodplain
Buyout/Elevation
Current Budget
Funds Obligated
Current Balance
Item Cost
Budget Adjustment
Remaining Budget
Project Title
$ 7,968,467.00
$ 920,794.51
7,047,672.49
$ 96, 500.00
6,951,172.49
Previous Ordinance or Resolution #
Approval Date:
V20180321
K:\Engineering Design Services\Projects\Drainage Projects\2019 Bond Program-Drainage\Floodplain Buyout_Elevation\923 S Cato
Springs\2020-0024 SRF -923 W Cato Springs
1 CITY OF
C FAYETTEVILLE
ARKANSAS
MEETING OF MARCH 17, 2020
TO: Mayor and City Council
THRU: Susan Norton, Chief of Staff
Garner Stoll, Development Services Director
Chris Brown, City Engineer
FROM: Alan Pugh, Staff Engineer
DATE: February 21, 2020
CITY COUNCIL MEMO
SUBJECT: Authorization to purchase the property and structure located at 923 W Cato
Springs Road, in the amount of $92,000 plus a $3,000 contingency for the
associated closing costs and taxes and $1,500 for Internal Charges and approval
of a budget adjustment.
RECOMMENDATION:
Staff recommends authorizing the purchase of the property and structure located at 923 W Cato
Springs Road, in the amount of $92,000 plus a $3,000 contingency for the associated closing
costs and taxes to reduce future flood damage and restore flood capacity in the area, and
$1,500 for Internal Charges and approval of a budget adjustment.
This recommendation is based on the following:
1. The home located at 923 W Cato Springs Road has flooded multiple times according to
city records.
2. As a service to our residents, the City of Fayetteville participates in the Federal
Emergency Management Agency (FEMA) Community Rating System (CRS). This
provides for discounts (currently 10%) on most flood insurance policies within the City
limits.
3. As of November 30, 2018, the City of Fayetteville contained 532 flood insurance policies
resulting in approximately $522,224 in annual premiums paid. The total insurance
coverage in force was just over $122 million and the total paid losses since entering the
program in 1982 was approximately $3.2 million.
4. CRS requires the participating community to develop and implement a plan to deal with
structures that continually flood. In many instances, including this one, the only
economically feasible option is to purchase the property.
5. The owner of the property is a willing seller and has accepted below appraised value for
the structure and property.
6. It will increase Fayetteville's overall flood resiliency
7. It will reduce the overall flood loss to the community during large rain events affirming
one goal of the Washington County Pre -Hazard Mitigation plan.
Mailing Address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
BACKGROUND:
The subject property and structure are located within Zone AE according to flood insurance rate
map 05143CO220F with the structure and the majority of the property located within the
floodway.
For those not familiar, the Special Flood Hazard Area (SFHA) is made up of multiple "zones."
These zones identify the various risks as well as the applicable regulations for development.
Zone AE is commonly referred to as the 100 -year floodplain and is made up of both floodplain
and floodway. The floodway is the area designated by the Federal Emergency Management
Agency, FEMA, for flood water conveyance. This is often relatively high velocity flood waters
and the regulations are very restrictive as the intent is for this area to remain open space in
order to preserve that conveyance. It is also the intent of the regulation to restrict developments
in these areas which are the most susceptible to flooding. Unfortunately, this structure was
located within a high-risk area prior to the maps being adopted by the City and as such has a
long history of flooding.
DISCUSSION:
The current home has been under renovation for several years. In 2013, the initial building
permit (AP #56554) contained a relatively limited scope based on the regulations in place for
existing homes within the floodplain that are not in compliance with current codes. However,
based on my conversations with the owner these improvements have expanded over time as
damage and other code violations were discovered during the renovation. Along with the
renovation, the structure did flood during the April 2017 rains and at this point the structure is
considered substantially damaged/improved and the owner has limited options on moving
forward. This leaves few options for the owner moving forward and given the history of flooding
staff feels the most feasible solution is for the City to purchase the home and have it removed
from the lot.
If the home is not removed, the options include elevating the structure to two feet above the
base flood elevation or requesting a variance from Planning Commission from that requirement.
The preliminary analysis indicates that the structure would likely need to be elevated
approximately 7.5 feet above grade in order to bring it into compliance with current codes. Due
to the fact the structure is within the floodway it is highly susceptible to flooding and relatively
high velocity flood waters and if it were elevated in place, staff would continue have some
concerns that the velocity of the water may continue to threaten the foundation of the home.
It should be noted that this property is bordered on the east and west by City owned property
which is and is planned to remain either open space or potentially a future parking area.
However, the planned parking area is shown to remain outside of the floodway. Staff feels that
given the circumstances and potential for the area to continue to flood that both open space and
parking area that remains outside of the floodway is the highest and best use of the property.
BUDGET/STAFF IMPACT:
As a part of the process, engineering staff had the property appraised to get a general idea of
the market value. In July of 2017 the market value of the property was indicated to be $105,000
based on that appraisal. During the appraisal the owner indicated that approximately $64,000 in
improvements/repairs from previous damage, flood events and vandalism had been performed
to the structure. The owner has accepted an offer of $92,000 for the property and structure.
Attachments:
See photos on following pages
Offer and acceptance letter
April 2017 Flood: Home at 923 W Cato Springs Road during the afternoon. It is believed that
the water levels rose further after this photograph was taken. There was another band of rain
that moved through later in the evening.
Photos of the south
side of the Cato
Springs Road
Bridge. Notice the
velocity of the flood
waters at this
location, relatively
close to the home in
question.
- N2
t:;7
SV'ing4 Rd
s
Map of the
flood pla i n/floodway - -
and surrounding
properties to 923 W
Cato Springs. City
owned property PANS_ - -
showed in green ,. effrsr,�os1esco�oF
zoo's r
shading.
S
December 12, 2019
Miguel Contreras
1085 S Nelson Drive
Fayetteville, AR 72701
RE:
Dear Mr. and Mrs. Contreras:
CITY OF
FAYETTEVILLE
ARKANSAS
923 W. Cato Springs Road
Parcel No. 765-15371-000
Offer Letter
The City of Fayetteville has been in contact with you previously regarding the purchase of property you own within the
floodplain at 923 W. Cato Springs Road. Thank you for your visit today updating your contact information.
The City of Fayetteville hereby offers $92,000.00, contingent upon City Council approval, for 0.27 acres known as part of
the N '/ of the NW'/< of Section 28, Township 16 North, Range 30 West and Washington County Assessment Parcel No.
765-15371-000 and including a 1568 square foot dwelling in its current condition.
Upon acceptance of the offer and City Council approval, title insurance will be ordered, and a closing will be scheduled. We
will notify you of the date of the closing. Each party to this transaction will pay normal closing costs associated with a
transaction such as this one. A copy of estimated costs is attached, any real estate taxes due at the time of closing are not
included in this estimate.
A City Land Agent will be glad to meet with you at your convenience and discuss all phases of this project and the associated
acquisitions. Please contact Holly Jones at (479) 444-3414 (hiones fayetteville-ar.gov) or Brandi Samuels (479) 444-3421
(bsamuelsfa etteville-ar.govt. For questions or concerns, please contact Alan Pugh, Staff Engineer at
aapughfayetteville-ar.gov or Chris Brown, City Engineer at cbrown a Fayetteville-ar.gov.
Sincerely,
�4-
Chris Brown
City Engineer
CB/hj
Agur,AiAfteras
Accepted.
itf MonlmPas
Date: (�-" f —4 ' C
Witness: r
City of Fayetteville Engineering Division: 479-575-8206
Mailing Address: www.fayetteville-ar.gov
113 W. Mountain Street
Fayetteville, AR 72701
City of Fayetteville, Arkansas - Budget Adjustment Form (Legistar)
Budget Year Division Adjustment Number
/Org2 ENGINEERING (621)
2020
Requestor: Kevin Springer
BUDGET ADJUSTMENT DESCRIPTION / JUSTIFICATION:
Authorization to purchase the property and structure located at 923 W. Cato Springs Road in the amount of $92,000
plus a $3,000 contingency for the associated closing ciosts and taxes to reduce future flood damage and restore flood
capacity in the area, and $1,500 for Internal Charges and approval of a budget adjustment.
COUNCIL DATE: 3/17/2020
LEGISTAR FILE ID#: 2020-0024
Matthew Madd 0-
3/2/2020 1:47 PM
Budget Director Date
TYPE: D - (City Council)
JOURNAL #:
RESOLUTION/ORDINANCE
I
GLDATE:
CHKD/POSTED:
3/17/2020
TOTAL
Account Number
- _
Increase / (Decrease)
Expense Revenue
Proiect.Sub#
Project Sub.Detl
AT
v.20191231
Account Name
4604.860.7405-5805.00
92,000 -
46040
7405
EX
Land - Acquisition
4604.860.7405-5911.99
4604.860.7405-5860.04
3,000 -
1,500 -
46040
46040
7405
7405
EX
EX
Contingency - Capital Project
Capital Prof Svcs - Engineering Contra
4604.860.7999-5899.00
(96,500) -
46040
7999
EX
Unallocated - Budget
H:\Budget Adjustments\2020_Budget\City Council\03-17-2020\BA 2020-0024 923 W Cato Springs 1 of 1