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Home My WebLink About165-22 RESOLUTION113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Resolution: 165-22 File Number: 2022-0556 PUBLIC HEARING ON THE PROPOSED ORDINANCE TO CHANGE OR ESTABLISH WATER AND SEWER RATES: A RESOLUTION TO CONDUCT A PUBLIC HEARING ON THE PROPOSED ORDINANCE TO CHANGE OR ESTABLISH WATER AND SEWER RATES WHEREAS, A.C.A. § 14-235-223 requires that for any ordinance to change sewer rates, a public hearing must be held prior to the passage of such ordinance; and WHEREAS, proper notice of this Public Hearing has been published in the newspaper with the proposed schedule of rates and charges included within this publication at least 10 days prior to this Public Hearing. 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 conducts this Public Hearing during the City Council Meeting of July 19, 2022, and allows public comment by all interested persons pursuant to the normal requirements of Public Comments subsection of the Rules of Order and Procedure of the Fayetteville City Council, A. City Council Council Meetings, 7.d. (2) Public Comments. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby affirms the Public Hearing discussed above was properly held in City Hall on July 19, 2022 and all interested persons were allowed to present comments upon the proposed ordinance and its proposed new or changed water and sewer rates and charges. Page 1 Printed on 7/20/22 Resolution: 165-22 File Number: 2022-0556 PASSED and APPROVED on 7/19/2022 Attest: %X1111 t 1 r r 1 CST Y ` • Fa YE TT,`-V Kara Paxton, City Clerk Treasurer =41 NS1';.��. ON C Page 2 Printed on 7/20/22 City of Fayetteville, Arkansas 113 West Mountain Street Fayetteville, AR 72701 (479)575-8323 Text File File Number: 2022-0556 Agenda Date: 7/19/2022 Version: 1 Status: Passed In Control: City Council Meetinq File Type: Resolution Agenda Number: B.1 PUBLIC HEARING ON THE PROPOSED ORDINANCE TO CHANGE OR ESTABLISH WATER AND SEWER RATES: A RESOLUTION TO CONDUCT A PUBLIC HEARING ON THE PROPOSED ORDINANCE TO CHANGE OR ESTABLISH WATER AND SEWER RATES WHEREAS, A.C.A. § 14-235-223 requires that for any ordinance to change sewer rates, a public hearing must be held prior to the passage of such ordinance; and WHEREAS, proper notice of this Public Hearing has been published in the newspaper with the proposed schedule of rates and charges included within this publication at least 10 days prior to this Public Hearing. 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 conducts this Public Hearing during the City Council Meeting of July 19, 2022, and allows public comment by all interested persons pursuant to the normal requirements of Public Comments subsection of the Rules of Order and Procedure of the Fayetteville City Council, A. City Council Meetings, 7.d. (2) Public Comments. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby affirms the Public Hearing discussed above was properly held in City Hall on July 19, 2022 and all interested persons were allowed to present comments upon the proposed ordinance and its proposed new or changed water and sewer rates and charges. City of Fayetteville, Arkansas Page 1 Printed on 712012022 Legistar ID No.: 2022-0556 AGENDA REQUEST FORM FOR: Council Meeting of July 19rh, 2022 FROM: City Attorney Kit Williams ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A RESOLUTION TO CONDUCT A PUBLIC HEARING ON THE PROPOSED ORDINANCE TO CHANGE OR ESTABLISH WATER AND SEWER RATES APPROVED FOR AGENDA: June 27, 2022 City Attorney I it Williams Approved ' � M DEPARTMENTAL CORRESPONDENCE OFFICE OF THE CITY ATTORNEY Kit Williams City Attorney TO: Mayor Jordan Blake Pennington City Council Assistant City Attorney Jodi Batker CC: Susan Norton, Chief of Staff Paralegal Paul Becker, Chief Financial Officer Tim Nyander, Utilities Director FROM: Kit Williams, City Attorney 1 DATE: June 27, 2022 RE: Public Hearing on July 19, 2022, on Water & Sewer Rates The City Council, after the first reading of the proposed ordinance adopting new water and sewer rates, scheduled the statutorily required Public Hearing on those rates for July 19, 2022, which will be at least 10 days since publication of the Notice for this Public Hearing. The Legissar system that the City uses to prepare all City Council Agendas requires each item (such as a Public Hearing) to have a Resolution or Ordinance as part of the Agenda Item. Therefore, I have drafted this Resolution to Conduct a Public Hearing on the Proposed Ordinance to Change or Establish Water and Sewer Rates to meet the Legitsar requirement. After completion of the Public Hearing on July 19, the City Council's passage of the Resolution "affirms the Public Hearing discussed above was properly held in City Hall..." Then you may legally advance to Unfinished Business to consider passage of the Water and Sewer Rates Ordinance. CITY OF FAYETTEVILLE ARKANSAS CITY OF FAYETTEVILLE, ARKANSAS Notice of Public Hearing on Proposed Water and Sewer Rate Changes City Council Meeting: Tuesday, July 19, 2022 at 5:30 PM City of Fayetteville Administration Building, City Hall 113 W. Mountain — Room 219 or via Zoom link at www.favetteville-ar.gov On the date and at the approximate time mentioned above, the Fayetteville City Council will hold a public hearing as part of the Fayetteville City Council Meeting prior to the consideration and possible adoption of the 2023 water and sewer rate increase ordinance. The public will also be able to comment during the public comment portion during consideration of the rate ordinance prior to its final consideration and vote by the Fayetteville City Council. The public can attend in person or remotely via the link on the City's website, www.fayetteville-ar.gov. If adopted, the proposed new rates would take effect on or after January 1, 2023, with 3% increases annually thereafter. All persons are invited to attend the public hearing and be heard on the matter. A water and sewer cost of service study was conducted by Black & Veatch pursuant to Fayetteville City Council Resolution 212-20 and State Law to perform a cost analysis to determine if costs allocations are fair and equitable among customer classes and to review the existing rate structure and design proposed rates that provide adequate revenues to operate and maintain the utilities and ensure sufficient funds will be available for necessary capital expansions. The rate study was conducted following the industry standard methodology from the American Water Works Association (Ml Principles of Water Rates, Fees, and Charges). The proposed water and sewer rate changes below are necessary for the City of Fayetteville to continue to provide safe and reliable water and sewer services to its citizens and other customers because extensive new capital needs are required now and will be required in the future and operating costs have increased and will continue to increase above the revenue increases generated by the current annual 3%proportional adjustment. Page 113 PROPOSED WATER RATE CHANGES -ON OR AFTER 11112023 FIXED BASE • r OUTSIDE EXISTING PROPOSED CHANGE EXISTING PROPOSED CHANGE 5/8'. 6.59 6.59 0.0% 7.54 7.54 0.0°% 3/4" 6.59 6.59 0.0% 7.54 7.54 0.0% 1" 9.14 9.14 0.0% 10.52 12.26 16.5% 1.5" 15.93 15.93 0.0% 18.31 24.22 32.3% 2" 23.20 23.20 0.0% 26.66 33.52 25.7% 3" 54.05 54.05 0.0% 62.18 69.94 12.3% 4" 89.50 89.50 0.0% 102.93 102.93 0.0% 6" 178.99 178.99 0.0% 205.82 205.82 0.0% 8" 268.41 268.41 0.0% 308.67 308.67 0.0% AVG 0.0% AVG 9.7% • rr: ' -"Residential - - -� _ _ First 2,000 gallons 3.51 3.30 -6.0% 4.04 4.47 10.6% Next 13,000 gallons 4.64 4.37 -5.8% 5.34 5.91 _ 10.7% All over 15,000 gallons 6.59 6.20 -5.9% 7.54 8.38 11.1% AVG -5.9% AVG 10.8% First 300,000 gallons 3.79 3.93 3.7% 4.38 5.05 15.3% All over 300,000 gallons 3.38 3.93 16.3% 3.90 5.05 29.5% AVG 10.0% AVG _ 22.4% Major Industrial All Usage 2.96 3.14 6.1% 3.20 3.49 9.1% Irrigation First 300,000 gallons 5.04 4.29 -14.9% 5.80 5.43 -6.4% All over 300,000 gallons 4.53 4.29 -5.3% 5.22 5.43 4.0% AVG -10.1% AVG -1.2% Wholesale Reduced Peak Demand 2.87 3.16 10.1% Peak Demand 3.20 _ 3.16 -1.3% AVG 4.4% _ *Beginning January 1, 2024, all monthly water rates shall be increased by 3% per year Page 213 PROPOSED SEWER RATE CHANGES - ON OR AFTER 11112023 Meter Size 5/8" 18.28 r 18.28 r 0.0% 18.28 r 18.28 0.0% r 16.74 25.10 49.9% 3/4" 18.28 18.28 0.0% 18.28 18.28 0.0% 16.74 25.10 49.9% 1" 23.74 23.74 0.0% 33.92 33.92 0.0% 31.28 52.62 68.2% 1.5" 38.77 38." 0.0% 60.37 66.73 10.5% 55.50 109.78 97.8% 2" 55.43 55.43 0.0% 79.73 93.11 16.8% 73.45 154.24 110.0% 3" 128.73 128.73 0.0% 184.24 196.10 6.4% 169.29 327.83 93.6% 4" 212.13 212.13 0.0% 303.44 303.44 0.0% 278.93 482.37 72.9% 6" 420.39 420.39 0.0% 601.46 601.46 0.0% 553.70 997.30 62.1% 8" 628.73 628.73 0.0% 899.76 899.76 0.0% 826.81 998.92 20.8% AVG 0.0% AVG 3.8% AVG 69.5% QGALLONS rrr Residential' -:. ._ :... ... :.._-.. ._.. -. .... First 2,000 Gallons 4.35 3.39 -22.1% 8.19 8.55 4.5% 7.52 8.27 10.0% All over 2,000Gallons 5,80 4.52 -22.1% 9,18 8.55 4.5% 7.52 8.27 100% AVG -22.1% AVG 4.5% AVG 10.0% Non -Residential All Usage 4,40 5.10 15.9% 8,18 4-.5% Z52 8.27 10.0% Major Industrial- �8.55 All Usage 4,71 5,71 21.2% 8.18 8.55 4.5% 7.52 8.27 10.0% :._Wholesale Reduced Peak Demand 5,19 7.20 38.7% Peak Demand 2.71 7.20 165.7% AVG 102.2% "Beginning January 1, 2024, all monthly sewer rates shall be increased by 3% per year For more information or questions about the proposed water and sewer rate changes, contact the City of Fayetteville, Utilities Financial Services Division at (479) 575-8224 or visit the City's website for at www.favetteville-ar.gov. Page 313