Fort Smith Board on path to hire consent decree management firm

An effort to hire an experienced engineering firm to help the city of Fort Smith address more than $600 million in federally-mandated sewer system work is moving forward, with the city’s board of directors set to vote Feb. 3 on a request-for-qualifications (RFQ) plan.

During Tuesday’s (Jan. 27) board study session, the city’s Director of Engineering Todd Mittge presented to the board the proposal to hire an engineering firm that would create and “oversee management and administration of activities required to support the City with implementation of the Wastewater Consent Decree.”

Essentially, a third-party program manager would look at the work holistically, determine the best way to not only address the issues in terms of workflow and priority, but find the most efficient, cost-saving methods to do that, and to provide frequent progress reports to the board.

THE WORK
After decades of failing to maintain the sewer system, officials with the U.S. Environmental Protection Agency and the U.S. Department of Justice filed a consent decree in 2014 with the city of Fort Smith that required certain improvements to the city’s sewer system.

While estimates vary, the consensus estimate is that the total cost could approach $800 million. According to city information, the city spent around $49 million prior to enactment of the consent decree, and spent $87 million on consent decree work between 2015 and 2019. Between 2020 and 2023, the city spent $64.1 million on consent decree work. The total for the work, including prior to 2015, is around $200 million.

To fund the work, Fort Smith voters on May 13 approved by a wide margin a sales tax reallocation plan to provide $360 million over 30 years.

SCOPE OF RFQ
In Mittge’s report to the board, part of the focus would include up to two project managers to be the city’s point of contact with design engineers, construction companies and others in the process to design, bid, and complete the work.

The firm also would create a “Collection System Dashboard” that would be a central information point for trouble spots, inspection tracking, project status, flow and rainfall monitoring reports, and other information components required under the consent decree.

Project management also would include updates to system flows as projects are completed to provide “analysis of flow impacts of major developments and industrial flow changes.” The scope of work also would be broad in terms of helping the city remain flexible with system needs and future planning.

“This model will be used to provide guidance on capital funding, operating cash flow, and revenue generation needs throughout the life of the Consent Decree implementation,” Mittge noted in a memo. “Projected rate increases will be developed and recommendations provided to the City, along with documentation of assumptions regarding capital financing sources, cost escalation, customer growth, etc. to support messaging to stakeholders.”

NEXT STEPS
Mittge said with board approval he will begin advertising the RFQ – which will include direct contact with experienced firms and announcements through engineering associations – on Feb. 8, with a March 20 deadline for submissions. The city’s evaluation team will narrow the applicants down to what they believe are the top three in time for board interviews to begin April 14. The goal, Mittge said, is to have a firm hired and working by mid-May.

“Our focus is going to be on nationally-recognized big firms that have done multiple consent decree program management activities in the past, or current,” Mittge told the board.

The city’s evaluation team for proposals is Acting City Administrator Jeff Dingman, Deputy City Administrator Maggie Rice, Mittge, Lance Johnson, deputy director-water engineering, Lance McAvoy, director of water resources, and Matt Meeker, director of public works.

COST SAVINGS, ‘CREATIVITY’
In response to a board question, Mittge said it’s difficult to estimate the cost to retain an engineering firm for consent decree management.

“We can’t look at cost ahead of time,” he said. “So, if you ask, ‘How much is this going to cost?’ I don’t know. I have a general idea, but we’re not going to see that until after we determine the award. At that point we can start negotiations with the engineering firm, and talk about that.”

Directors Neal Martin and Kevin Settle said they hoped the city will find a firm that can save the city money and expedite the process. Martin said he is “looking for creativity” to find cost-savings, with Settle suggesting the firm be given financial incentives for reducing costs.

“I think we need somebody big, and somebody that will value-engineer, and make some significant improvements, and maybe save money but also speed the time up,” Settle said. “Let’s get this done quicker than later.”

Mittge said the problem with value engineering is that there is no known cost as to the total project.

“Even 10% of savings back in their pocket saves us 90,” Mittge said. “That’s a slam dunk. But how to monetize that and measure that up front, we’d have to look at those and have that specific language in the RFQ so that they can know what to measure. Because measurables are important. We can’t have a moving target.”

Former City Director Lavon Morton, who in November pointed out pricing issues with almost $27 million in consent decree work, said a managing firm is the best way forward and praised the board’s intent to find an engineering firm.

“I fully support the effort by the city to explore engaging a large engineering firm experienced in major sewer construction work in large city environments such as work on major consent decree type projects,” Morton told Talk Business & Politics. “I advocated for this approach as a board member and I believe this offers the best chance for maximizing the efficiency of the ongoing consent decree work in Fort Smith.”