Evelyn Shaw: Installing utilities is in the best interest of the city – The Fayetteville Observer

Clearing up misconceptions about the roles of the PWC, City of Fayetteville in sewer line installation

Since the Fayetteville Public Works Commission (PWC) began the utility retrofitting of annexed areas related to the City of Fayetteville in its 2005 Phase V annexation, public misconceptions about the multi-faceted project seem to arise from time to time. On behalf of the PWC, I would like to provide some facts and historical perspective related to the work PWC has undertaken on behalf of the city mainly in the western side of our community.

When the city engaged in the so-called Big Bang annexation, it was obligated to extend water and sewer services to annexed properties, and the city could do so by charging property owners.

The city entered into a contract with the PWC to install the utilities in the Phase V area and agreed to contribute to the expense of the project which was estimated to be $220 million by imposing an assessment on property owners in the annexed neighborhoods. The assessment would help pay for installing sewer lines to over 8,000 properties.

The assessment, set at $5,000 for the typical single-family residential lot, was capped by the City Council. Both parties have followed the terms of the Agreement, as amended, since 2008.

Prior to 2016, under the agreement, the city and the PWC split the cost to install sewer and water lines that exceeded the $5,000 single-family residential assessment. Without this agreement with PWC, the city and property owners in the annexed neighborhoods would have been responsible for the entire cost of the utility expansion project.

Residents costs

In 2016, as part of the changes in the legal relationship between the PWC and the city that occurred as a result of the new PWC Charter adopted by the General Assembly, the PWC entered into a fourth amendment to the 2008 agreement.

The amendment was approved by the PWC Commissioners on June 22, 2016 and City Council on June 27, 2016. The amendment was signed by then PWC Chair Darsweil Rogers and Mayor Pro Tem Mitch Colvin. The parties 2016 amendment ended the citys direct financial responsibility, leaving the PWC and its customers to bear the entire cost of utility-line extension in excess of the $5,000 single family assessment amount.

For perspective, in 2008, the average installation cost per residential lot was $15,000. That cost has now grown to nearly $40,000 per lot, and while the PWC believes installing these services remain in the best interest of the City of Fayetteville, the adverse impact to PWC ratepayers continues to grow.

The PWC does not issue assessments; we have no statutory authority to do so. Only the city has that authority. Because these assessments are for sewer and water services, and the responsibility for collecting the assessments has been delegated to they PWC, they are viewed as a PWC fee. In fact, the assessments are imposed by the city and used to defray the cost of this expansive project.

Understanding that residents may have difficulty paying the assessment all at once, there are provisions to pay over time, up to 10 years. In addition, the city has successfully applied for grants to assist low-income residents pay their assessments.

As the PWC has worked through the challenges of retrofitting utilities in established neighborhoods, in 2017, it took on another expense, previously paid by the city. The PWCs Commissioners agreed to pave, not patch, streets in all future installation areas to ensure residents received the benefit of good roads following the completion of utility work.

No unintended tax

Today, utility installation is more than half complete. The PWC is scheduled to bid the final areas in 2024. PWC representatives have engaged in productive discussions with our mayor and his staff regarding acceleration of the work remaining. While we are sensitive to our neighbors desires, any potential acceleration to the work would have a minimal impact on when sewer is available to residents. Moreover, all should be aware that it could significantly increase design and installation costs, which would have additional impact on costs and customers rates.

As commissioners, we are required by our charter to take action so rates are set not only in the best interest of the city, but also the customers of the Commission. We take our responsibility very seriously as we try to balance our decisions. We do not want to create, nor will we create, an unintended tax on our ratepayers for an annexation which is outside of our purview as the hometown utility.

There is a great advantage to our citizens owning a hometown utility, where decisions are made in the best interest of all ratepayers who are also our neighbors. The PWC does not seek a profit when we provide utility services; however, we do work daily on sustainability, accountability and reinvestment in your utility to keep it strong and viable.

It is a jewel that belongs to you the customers and citizens. It is not some monolithic entity that will put profits above all else. The PWC will continue to meet our obligations under the agreement with the city, and we will seek all reasonable and practical opportunities to help property owners in annexed areas. We will work diligently to fulfill this commitment and soon complete this long, challenging, yet necessary chapter of Fayettevilles history.

Evelyn Shaw is chairwoman of the Fayetteville Public Works Commission.

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Evelyn Shaw: Installing utilities is in the best interest of the city - The Fayetteville Observer