HomeMy WebLinkAboutOrdinance 2413 ORDINANCE N0 ,
AN ORDINANCE AUTHORIZING THE MAYOR AND CITY CLERK TO
EXECUTE A CONTRACT WITH THE CITY OF WEST FORK FOR THE SALE
OF WATER TO SAID CITY .
BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE , ARKANSAS :
Section 1 . That the Mayor and City Clergy; are hereby
authorized and directed to execute a contract with the City .
of West Fork for the sale of water to said City . A copy of
said contract , marked Exhibit "A" , is attached hereto and
made a part hereof .
PASSED AND APPROVED this day of February, 1978 .
APPROVED : c
MAYOR
ATTEST
O CITY CLERK
DATES� 111e
RHLI.
CERTIFICATE OF RECORD
State of Arkansas ( SS
City of Fayetteville
1, Suzanne C. Kennedy, City Clerk and
Ev-Officio recorder for the City of Fayetteville,
do hereby certify that the :rnv: ;e I or fore-
0-4i 1g is of record in my office •i �d Cle s:;aic ap-
pears in Ordinance iZcsoiutiou nook
\1 I at page Witness my
hand and seal this —day of
City Clerk and Ex-OffLio
WATER PURCHASE CONTRACT
This contract for the sale and purchase of water , made
and entered into this _ IP4, day of 1/9 . , 1978 , by
and between the City of Fayetteville , Arkansas , a municipal
corporation , hereinafter referred to as the " City " , and the
City of West Fork , Arkansas , a municipal corporation , hereinafter
referred to as the " Buyer " .
WITNESSETH :
WHEREAS , the City owns and operates a water supply distribution
system with a capacity currently capable of serving the present
customers of the City system and the estimated number of water
users to be served by the said Buyer , and ,
WHEREAS , the Buyer desires to purchase water from the City
for distribution within the present corporate limits of Buyer
and to residents within reasonable proximity to the transmission
line , and the City desires to furnish and sell water to the Buyer
for distribution as aforesaid .
NOW THEREFORE , in - consideration of the foregoing and the
mutual agreements hereinafter set forth ,
A . The City agrees :
1 . To furnish the Buyer , at the point of delivery herein -
after specified , for distribution within its present corporate
limits and along the route of the tramsmission main , during
the term of this contract or any renewal or extension thereof ,
potable treated water meeting applicable purity standards of
the State Board of Health , and in such quantity as may be
required by the Buyer , not to exceed 600 gallons per minute .
The City shall not be obligated to provide water to the Buyer
at a rate greater than 600 gallons per minute . In the event
the Buyer requires water at a rate greater than thus specified ,
the City shall have the sole discretion in determining whether
to furnish water at a greater rate and in determining the terms
and conditions upon which its agreement to do so will be given ,
including , but not limited to , conditions for reinforcement of
hLROMMED. 1919
DATE JUL 1
REEL
1
J
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the 12 inch main hereinafter referred to at the Buyer ' s expense
in order to increase its capacity , if the reinforcement has not
been accomplished by the City prior to the time it is required
by the Buyer . Provided , the rates charged for any water , which
City may agree to supply in excess of 600 gallons per minute ,
shall be the same as that charged to other consumers receiving
in excess of 600 gallons of water per minute , plus charges for
meter service established for consumers outside the City . Any
such agreement shall be in writing and duly authorized by the
governing bodies of the respective parties hereto .
It is further understood and agreed that the City ' s respon -
sibility for the water ends at the meter box outlet or vault .
2 . The water will be furnished at a reasonably constant
pressure ( due consideration being given to friction loss ) from
a twelve ( 12 ) inch water main at a point located at the site
described in Exhibit "A " attached hereto and made a part hereof .
3 . City agrees to extend a twelve ( 12 ) inch water main
to point of delivery and to furnish , install , operate , and
maintain at point of delivery the . necessary metering equipment ,
including a meter house on pit , check valves , and required
devices of standard type for properly measuring the quantity of
water delivered to the Buyer , including a meter of proper size ,
for a lump sum water connection fee in an amount equivalent to
the total cost ( including the cost of engineering and right - of -
way acquisition ) of constructing a ten inch ( 10 " ) water main
in . the City of Greenland to - the point of delivery to the City of
West Fork . The cost of maintenance and operation of the metering
facility shall be borne by the City . The responsibility for
testing and calibrating the meter rests solely with the City .
A meter registering not more than two percent ( 2 % ) above or
below 100 % accuracy shall be deemed to be accurate . The previous
reading of any meter disclosed by test to be inaccurate shall be
corrected for the two ( 2 ) months previous to such test in accordance
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with the percentage of inaccuracy found by such tests . If
any meter fails to register for any period , the amount of water
furnished during such period shall be determined by average
readings over a period of two previous months or a like month
of a previous year , at the City ' s option . The metering equipment
shall be read on the last working day of each month .
The size of the meter shall be in keeping with anticipated
water usage and / or demand . Initially , a four inch meter will be
installed . The Buyer will provide a valve at the inlet side of
the meter to shut off the supply and also to limit the flow of
water to the rate permitted . If the Buyer desires a by - pass to
the meter for use during periods of meter maintenance , the cost
for the by - pass valves , fittings and pipe shall be borne by the
Buyer .
4 . The City ' s responsibility for maintenance shall end
at the outlet side of the meter box or vault .
5 . City agrees to furnish the City Clerk of the Buyer ,
at West Fork , Arkansas , not later than the 5th day of each month ,
with an itemized statement of the amount of water furnished and
other charges to the Buyer during the preceding month .
B . The Buyer agrees :
1 . To purchase water as required by the Buyer and the
consumers within the present corporate limits of the Buyer , and
a service area along the transmission line as determined in
Paragraph C 8 hereof up to a maximum of 600 gallons per minute .
Buyer shall be under no obligation to purchase any water from the
City unless Buyer so elects , but any water purchased by Buyer
shall be from the City and not from some other source .
2 . To pay the City not later than the 15th day of each
month for water delivered in the preceding month , in accordance
with the rates as established by the City from time to time
for consumers outside the City of Fayetteville , Arkansas , plus
any charges for meter service that may hereinafter be established
by the City from time to time for consumers outside the City of
. 4 .
Fayetteville , Arkansas . The rates for water and meter service
charges presently in effect are illustrated by the attached
schedule , marked Exhibit " B" , but it is understood and agreed
that the City is in no way bound to said schedule , and that the
City in its sole discretion has the right to increase or decrease
the rates and charges shown therefore , at any time , for the
Buyer as for other outside the City users .
3 . The Buyer agrees to pay to the City a water connection
fee in an amount equivalent to the total cost ( including the cost
of engineering and right - of -way acquisition) of constructing a ten
inch ( 10 " ) water main from the South end of the City ' s existing twelve
inch ( 12 " ) water main in the City of Greenland to the point of de -
livery to the City of West Fork as an agreed cost to connect the
City ' s system with the Buyer ' s system . Said fee shall be paid at
the time the contract for the Buyer ' s transmission line is awarded .
4 . The City of West Fork will pay as a part of this
contract the cost of acquisition by the City of Fayetteville of
a right - of-way twenty feet ( 20 ' ) wide from the South end of the
City ' s existing 12 " water main in the City of Greenland to the point
of delivery to the City of West Fork to enable the City of Fayetteville
to install , operate and maintain the water line on the Fayetteville side
of the metering point . The cost of such right - of-way shall include , if
necessary , all cost of condemnation , court costs , attorney ' s fees and
any other expense directly related to the acquisition of said right -
of -way .
C . It is further mutually agreed between the City and the
Buyer as follows :
1 . That this contract shall extend for a term of 20 years
from the date of the initial delivery of any water by the City to
the Buyer . Thereafter this contract may be renewed for such term , or
terms , as may be agreed upon by the City and Buyer .
2 . That 30 days prior to the estimated date of completion
of construction of the Buyer ' s water supply line , the Buyer will
notify the City in writing the date for the initial delivery of
water .
3 . When requested by the Buyer , the City will make
available to the contractor at the point of delivery , or other
point reasonably close thereto , water sufficient for testing ,
flushing , and trench filling the supply line of the Buyer during
construction , irrespective of whether the metering equipment has
been installed at that time , at a flat charge of $ 400 . 00 , which
will be paid in advance by the contractor , or , on his failure
to pay , by the Buyer .
4 . That the City will , at all times , operate and maintain
its system in an efficient manner and will take such action as
may be necessary to furnish the quanitities of water required
by the Buyer , up to the maximum amount of 600 gallons per minute
as provided in Paragraph A . 1 . hereof . Temporary or partial
failures to deliver water caused by the failures or difficulties
in the City ' s system shall be remedied with all possible dispatch .
Provided , however , the City reserves the right , in the event of
acute shortage of water , to limit or discontinue water sales and
service to the Buyer . Any reduction or discontinuance of water
sales and service for this reason shall not render the City
liable for damages of any kind , it being understood between the
parties that the City ' s primary obligation is to furnish water
and water services to the citizens of the City of Fayetteville ,
Arkansas .
The City shall not be responsibie for any damages to the
Buyer or its consumers by reason of emergency failures of water
supply due to water main breaks , power failure , flood , fire ,
earthquake and ,- other acts of God , or catastrophe , acts of war ,
insurrection or rebellion , acts of a public enemy , acts of any
unauthorized person , firm or corporation , or acts of the Buyer ,
or during any periods of water reduction or discontinuance by
reason of fire fighting or other emergency situation ; nor shall
such failures of water supply and / or discontinuance or reduction
of water sales and service be construed as a breach of this contract
by the City .
• t ..
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5 . That this contract is subject to such rules , regulations ,
or laws as may be applicable to similar agreements in the State of
Arkansas and the City and . Buyer will collaborate in obtaining such
permits , certificates , or the like , as may be required to comply
therewith .
It is expressly understood and agreed that the sale of water
herein provided for , from the City to the Buyer , is a sale for
resale , and the Buyer agrees to secure a sales tax permit as
required by Arkansas Stats . Ann . Sections 84 - 1904 ( i ) 84 - 1913 ,
( and any subsequent amendments thereto ) and agrees that it will
collect and pay over to the Commissioner of Revenues of the State
of Arkansas , any and all sales tax now or hereafter imposed upon
the resale of said water to the Buyer ' s consumers .
6 . That the construction of the water supply distribution
system by the Buyer is being financed by a loan from the United
States of America , acting through the Farmers Home Administration
of the United States Department of Agriculture , and the provisions
hereof pertaining to- . the undertakings of the Buyer are conditioned
upon the approval , in writing , of the State Director of Arkansas ,
of the Farmers Home Administration . Similarly , any modification of
the provisions of this contract , shall be conditioned upon the
prior approval , in writing , of the State Director of Arkansas , of the
Farmers Home Administration .
7 . That in the event of any occurance rendering the
Buyer incapable of performing under this contract , any successor
of the Buyer whether the result of legal process , assignment , or
otherwise , shall succeed to the rights of the Buyer hereunder
8 . It is understood and agreed that the water to be
supplied by the City to the Buyer under this contract is to be
furnished for distribution within the corporate limits ( as
hereinafter defined ) of Buyer and an area three hundred feet
( 3001 ) on each side of the transmission line from the metering
point to the corporate limits of the Buyer . The Buyer shall not
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extend its water main outside its corporate limits in the
unincorporated areas without the prior written consent of the
City . The City shall have the sole discretion in determining
whether or not to consent to any such extensions and in determining
the terms and / or conditions upon which its consent shall be given .
The Buyer has the right to provide service in the area three
hundred feet ( 300 ' ) on each side of the transmission line and
shall have sole discretion as to whether or not it shall provide
water services in that area and the terms and conditions upon
which it shall support such service . In the event the Buyer
elects not to provide services in said area then the City may
provide such service if it desires to do so , but shall use water
mains of its own to provide such service and not the transmission
line as referred to hereinabove .
For the purpose of this instrument the phrase " corporate
limits " of the Buyer means the present corporate limits at the
time of this contract and any lands within an area designated as
the growth area of the City of West Fork as shown and described
by Exhibit " C " to this :-contract provided such lands are , in fact ,
annexed within the Buyer ' s corporate limits . The Buyer shall have
the right under this contract to extend main and water service
into such area without the prior consent of the City .
9 . In the event a portion of the Buyer ' s water mains
are constructed: .within the corporate limits of the City , the
Buyer is not permitted to , serve consumers within the corporate
limits of the City without the prior written consent of the City .
10 . Buyer agrees that it will not during the period of
this contract or any renewal thereof levy any franchise tax ,
occupation tax , or any other tax of any form whatsoever , by
whatever name it may be called , upon the City , the City water
system and appurtenances thereto , or the operations called for
by this contract .
11 . This agreement may be terminated by either Buyer
or the City upon breach by the other of any of the covenants
or agreements contained herein , and the failure of the party
in breach to remedy such breach within thirty ( 30 ) days after
receipt of written notice of the existence of such breach .
Written notice shall be sufficient , if sent by certified mail ,
return receipt requested , postage prepaid , to the respective
mayors of the parties hereto .
12 . The approval and execution of this Water Purchase
Contract by the City shall be contingent upon the Buyer receiving
approval of Farmers Home Administration Loan and / or grant within
a one ( 1 ) year period from date of execution by the City . If loan
and / or grant approval is not secured within the one ( 1 ) year
period , this contract shall be null and void .
IN WITNESS WHEREOF , the City and Buyer have executed these
presents by their respective mayors and have caused their seals
to be hereto affixed and the same attested to by the City Clerks
of the parties , having been authorized to do so by appropriate
ordinances of their respective Governing Bodies .
CITY OF FAYETTEVILLE , ARKANSAS
a municipal corporation
BY & 2
MAYOR
ATTEST :
CITY CLERK
CITY OF WEST FORK , ARKANSAS
a municipal corporation
7aAM
AYOR
ATTEST:
CITY CLERK
� Y +IISIT A
LEGAL DESCRIPTION
A part of the NWa of the NE; of Section Twenty -one ( 21 ) in
Township Fifteen ( 15 ) North of Range Thirty ( 30 ) West , being
more particularly described as follows : Beginning at a point
on the East right -of -way line of U . S . Highway No . 71 said
point located 389 feet West and 595 feet S 140 33 ' W of the
NE corner of said 40 acre tract ; running thence S 140 33 ' W
along said right -of -way 12 feet ; thence S 750 27 ' E 20 feet ;
thence N 140 33 ' E 12 feet ; thence N 750 27 ' W 20 feet to the
point of beginning , containing 0 . 006 acres , more or less,
Washington County , Arkansas .
This legal description prepared by McClelland Consulting Engineers ,
February 9 , 1978 .
MIGIIOFlLMM
ItAiE7 1979
Errfk/� FAYETTEVILLE , ARKANSAS
P. O. DRAWER F 72701 15011521-7700
C
Ioncoo`'�i� ,
OFFICE OF THE CITY CLERK
March 27 , 1978
Mayor Alexander P . Stikkers
City of West Fork
P . 0 . Box 339
West Fork , Arkansas 72774
Dear Mayor Stikkers :
Enclosed are three fully executed copies of the City of West Fork water
purchase agreement . I would appreciate a copy of the resolution authorizing
the City of West Fork to enter into this contract with the City of Fayetteville .
Please contact us should you have any questions .
Sincerely ,
qt a`l�
Darlene Westbrook
City Clerk
/dw
Enclosures
