Bentonville City Council Highlights: Water Leaks, Electric Rate Study

On Tuesday, Jan. 14, the City Council voted on over 40 items. Here are some of the highlights:

City Approves Additional $1M For Water Leaks

The City will spend $1 million in additional funding to address water service line leaks. 

Council unanimously voted to amend existing contracts with Calcon Inc. and Mo-Ark Utilities, each receiving an additional $500,000, for a water service line replacement project. The original contracts were approved in November. 

The additional funding is “necessary to keep both contractors working to replace failing water service lines,” according to a memo in the agenda.

During a water and wastewater rate workshop in December, city officials said current water loss — mainly due to leaks — stands at 56%. Typical industry standards for water loss levels hover around 15%.

“The contract work is an aggressive, turnkey measure taken to directly address the City’s water loss and the amendments are necessary to keep both contractors working to replace failing water service lines,” wrote Donald Schmidt, water utilities operations manager, in the agenda item form. “Both contractors continue to exceed production expectations and are helping to reduce water loss with every service line that is replaced.”

The funding will come from the city’s utility fund reserves.

Council also approved two contracts totaling $309,081 for leak detection services.

“This is another critical step being taken to help reduce water loss and improve resource management,” Schmidt wrote.

Electric Department Cost of Service Study

The City will spend $58,600 on a cost of service study for the Bentonville Electric Department. 

The study will review current rates and make sure the utility’s operations and maintenance, capital improvement program, depreciation and debts are properly funded, while keeping rate increases as low as possible, according to a document from Utility Financial Solutions, LLC, the company chosen to conduct the study.

The last cost of service study was conducted in 2020-21.

Lease Approved for Ignite Aviation Program 

The City Council approved a lease agreement allowing Bentonville Public Schools to use vacant space at the Bentonville Municipal Airport for its Ignite Aviation – Air Mobility program.

The program, which was added in 2022, gives students the opportunity to work with drones, simulators and planes in order to gain practical, hands-on experience with the technology. It also gives students insight into career opportunities and the potential of the aviation industry.

The lease rate is $806.05 per month for a 10-year term. 

The Bentonville Schools Ignite Professional Studies program offers 11th- and 12th-grade students work-based learning experiences, industry-recognized credentials and classroom instruction in 10 career fields.

Bentonville Public Library Purchases

The City Council approved three items related to purchases for the Bentonville Public Library. 

A 2025 budget adjustment was approved to cover the remaining costs associated with RFID technology installed in the library in October 2024. While the 2025 budget allocated $32,500 for this project, the total cost amounted to $41,550.

This is an annual expense that supports existing library technologies, according to the agenda form. It covers self-check terminals, security gates, remote lockers and other specialty equipment. 

The city will also pay $58,500 to OverDrive Inc. for digital products at the Bentonville Public Library after waiving a competitive bidding requirement. The library has a long-standing agreement with OverDrive and participates in a regional consortium with other libraries that leverage its services.

Annual use of digital offerings at the library continues to increase with more than 143,000 downloads in 2024.

The third purchase is for adaptive technologies and equipment for the library’s new Business Center and Community Hub, which is set to open Feb. 1.

Rezoning of NW 3rd Street Property Approved

The City Council gave final approval for the rezoning of a vacant property on Northwest 3rd Street to low-density single-family residential.

In November, a different rezoning request for the site to develop the proposed Echelon project was rejected by the City Council. The City’s Planning Commission had approved both rezoning requests.

Bentonville City Council meets every second and fourth Tuesday of the month, where they pass local laws and ordinances, approve development projects, establish policies and more. The Council typically covers a dozen or more agenda items each meeting, so we try to pick the items we think residents would be most interested in. City Council meetings are open to the public. Find the most recent agendas and minutes here.