🔍 Bentonville Hires National Firm to Study Infrastructure Capacity Fees Amid Growth

As Bentonville continues to experience rapid development, the city is taking a closer look at how new growth contributes to the cost of public infrastructure. To help with that, the City of Bentonville has entered into a professional services agreement with Raftelis Financial Consultants, Inc., a national public finance firm, to conduct a capacity fee study that will guide how much developers pay to access the city’s utility systems.

The contract, valued at up to $59,600, was approved in 2025 and outlines the scope, expectations, and protections for both parties. The study is expected to provide recommendations for fees that support long-term sustainability of water, sewer, and other services as the city expands.

📈 Why It Matters

Capacity fees—sometimes called system development charges—are one-time payments required of new developments that connect to city infrastructure. These fees ensure that growth “pays its own way,” rather than overburdening existing ratepayers.

Raftelis, headquartered in Charlotte, North Carolina, will conduct a professional review of Bentonville’s current system and needs, using their May 2024 proposal as a blueprint. The contract gives them one year to complete the study, with the possibility of extensions if agreed upon by both parties.

💵 Terms of the Agreement

The city will pay Raftelis no more than $59,600, which includes all professional services, direct expenses, and a technology fee. Invoices will be submitted monthly, supported by documentation of work completed and hours logged. If the city requests additional services beyond the original scope, those would require separate written approval and could lead to added costs.

Raftelis is operating as an independent contractor—not as a city employee—and will be responsible for its own office space, insurance, and taxes.

🛡️ Accountability & Insurance

The agreement includes strong indemnification clauses and requires Raftelis to maintain several layers of insurance coverage, including:

• $5 million in professional liability

• $5 million in umbrella/excess liability

• $5 million in cyber security coverage

• General and auto liability

• Workers' compensation at statutory levels

Raftelis also agrees to safeguard any confidential information received during the course of their work and return all materials to the city upon request.

⚖️ Legal Framework and Termination

The contract is governed by Arkansas state law and includes standard provisions regarding performance standards, data reliance, and ownership of work product. Either party may terminate the agreement—with or without cause—following proper notice. In the event of termination, Raftelis will be paid for all services completed up to that point.

🏗️ What Comes Next?

While the agreement does not detail the specific deliverables in public documents, capacity fee studies typically involve a detailed review of the city’s capital improvement plans, existing utility systems, customer demands, and projected growth. The end result is a framework to charge equitable, cost-justified fees to future users—helping ensure that Bentonville’s infrastructure grows in step with its booming population.