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HomeMy WebLinkAboutOrdinance 5046 3 ORDINANCE NO. 5046 AN ORDINANCE WAIVING THE REQUIREMENTS OF ORDINANCE NO. 4358 AND APPROVING AN OFFER AND ACCEPTANCE CONTRACT BETWEEN THE CITY OF FAYETTEVILLE AND OZARKS ELECTRIC COOPERATIVE CORP. FOR TIM SALE OF FOUR (4) ACRES OF UNNEEDED LAND WITH AN ACCESS AND UTILITY EASEMENT FOR SAME AT THE WEST SIDE WASTEWATER TREATMENT PLANT FOR $140,000.00; APPROVING A BUDGET ADJUSTMENT; AND AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE SAID AGREEMENT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1 . That the City Council of the City of Fayetteville, Arkansas hereby waives the requirements of Ordinance No. 4358 and approves an Offer and Acceptance contract between the City of Fayetteville and Ozarks Electric Cooperative Corp. for the sale of four (4) acres of unneeded land with an access and utility easement for same at the West Side Wastewater Treatment Plant for $140,000.00;. A copy of the contract is attached hereto marked Exhibit "A" and made a part hereof. Section 2. That the City Council of the City of Fayetteville, Arkansas hereby approves a budget adjustment recognizing the revenue. Section 3. That the City Council of the City of Fayetteville, Arkansas hereby authorizes the Mayor and City Clerk to execute said agreement with Ozarks Electric Cooperative Corp. ��.�``WRK/TR ''�.,, PASSED and APPROVED this 7h day of August, 2007. * FAYETTEVILLE • APPROVE ATTEST: z •• 5 ' � :,ys .9�KANSP.JZ By: DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer OFFER AND ACCEPTANCE CONTRACT 1 . Ozarks Electric Cooperative Corp. an Arkansas Corporation. hereinafter referred to as the "Buyer", offers to buy, subject to the terms and conditions set forth herein, the following described property: SEE ATTACHED EXHIBIT "A" FOR PROPERTY DESCRIPTION 2. Purchase Price: Subject to the following conditions, Ozarks Electric Cooperative shall pay for the property at closing, the total and cash payment of $ 140.000. 3. Contingent Earnest Money Deposit: Ozarks Electric Cooperative herewith tenders a check for $ 100.00 to the City of Fayetteville, as earnest money, which shall apply on the purchase price. This offer of purchase is contingent upon approval of the City Council of the City of Fayetteville, Arkansas, and, if they do not so approve, the earnest money deposit will be returned to Ozarks Electric Cooperative by the City of Fayetteville. If title requirements are not fulfilled or the City of Fayetteville fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to Ozarks Electric Cooperative . If Ozarks Electric Cooperative fails to fulfill their obligations under this contract or, after all conditions have been met, Ozarks Electric Cooperative fails to close this transaction, the earnest money may, at the option of the City of Fayetteville, become liquidated damages to the City of Fayetteville. 4. Conveyance will be made to Ozarks Electric Cooperative by general Warranty Deed, except it shall be subject to recorded instruments and easements, if any, which do not materially affect the value of the property. Such conveyance shall include mineral rights owned by the City of Fayetteville. A 5. The City of Fayetteville shall furnish a policy of title insurance in the amount of the purchase price from a title insurance company as selected by the City of Fayetteville. Ozarks Electric Cooperative and the City of Fayetteville shall share equally in the cost of the title insurance. i 6. The City of Fayetteville agrees to allow Ozarks Electric Cooperative , if Ozarks Electric Cooperative so desires, at Ozarks Electric Cooperative 's expense, to survey the property. The City of Fayetteville agrees to cure any title problems which may result from any differences between the recorded legal descriptions of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the City of Fayetteville. 7. Taxes and special assessments due on or before closing shall be paid by the City of Fayetteville. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. 8. The closing date shall be within Sixty 60 days after approval of this offer by the City Council. If such date of closing falls on a weekend or holiday, it will be held the following working day. 9. Possession of the property shall be delivered to Ozarks Electric Cooperative on the date of closing. 10. The City of Fayetteville hereby grant(s) permission for Ozarks Electric Cooperative or their designates to enter the above described property and improvements for the purpose of inspection and/or surveying. 11 . All fixtures, improvements and attached equipment are included in the purchase price. 12. Risk of loss or damage to the property by fire or other casualty occurring up to the time of closing is assumed by the City of Fayetteville. 13. The City of Fayetteville shall disclose to Ozarks Electric Cooperative any and all environmental hazards of which the City of Fayetteville has actual knowledge. OFFER AND ACCEPTANCE CONTRACT Page 2 of 4 14. This agreement shall be governed by the laws of the State of Arkansas. 15. This agreement, when executed by both Ozarks Electric Cooperative and the City of Fayetteville shall contain the entire understanding and agreement of the parties with respect to the matters referred to herein and shall supersede all price or contemporaneous agreements, representations and understanding with respect to such matters, and no oral representations or statements shall be considered a part hereof. 16. This agreement is contingent upon approval of a lot split by the City of Fayetteville Planning Commission. 17. This contract expires, if not accepted by the City of Fayetteville on or before the 31 s' day of December, 2007. 18. The City of Fayetteville shall submit this fully executed Offer and Acceptance Contract to the CityCouncil for their approval within one hundred twenty 120 days of acceptance by the City of Fayetteville. 19. NOTICE: THE Ozarks Electric Cooperative AND THE CITY OF FAYETTEVILLE ASSERTS HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE APPROVAL OF THIS OFFER OF PURCHASE BY THE CITY COUNCIL OF FAYETTEVILLE AND THAT THE FAILURE OF THE COUNCIL TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO THE Ozarks Electric Cooperative OF THE $ 100.00 EARNEST MONEY DEPOSIT. Dated Date: SecPt° AGENT OR WITNESS: (��) Date: City of Fayetteville, Arkansas, A municipal corporation �- `pnrnnrrrrrr Date: �1 d7 `� ;G��Y Oc •Gp� , Dan , Mayor = U • •• � 3 Q = : FAYETTEVILLE : Date: / Q :�•.•yR SP5 •_ Sondra Smith, City Clerk %9s vKAN J . //croN rrruuuw�u� .. �. � �, . `cam:�. ., : �. � ' ; .... . _: , _.- . __ _. �.� . . .. ;- , ...: �. '� � `,� '� ' a ., -- ,, .. t `� � t OFFER AND ACCEPTANCE CONTRACT Page 3 of 4 EXHIBIT "A" PROPERTY DESCRIPTION A part of the Northeast Quarter (NE /4) of Section 14, Township 16 North, Range 31 West Washington County, Arkansas, being more particularly described as follows: Commence at the Railroad Spike marking the northwest Corner of said Northeast Quarter (NE /4) of said Section 14 and run thence South 02035'16" West along the west line of said Northeast Quarter (NE /4) a distance of 2490.43 feet; thence leaving said west line South 88°32' 18" East along the North line of an existing 50 foot wide overhead electric right of way, a distance of 130.03 feet to a set 5/8" rebar pin with yellow plastic cap stamped "Gary Denzer 1266" for the `True Point of Beginning" of this boundary description; thence continue South 8803218" East along said north line of said existing 50 foot right of way a distance of 335.00 feet to a set 5/8" rebar pin with plastic yellow cap stamped "Gary Denzer 1266'; thence leaving said north line of said existing 50 foot right of way North 0203616" East a distance of 520.21 feet to a set 5/8" rebar pin with yellow plastic cap stamped "Gary Denzer 1266'; thence North 88032'18" West a distance of 335.00 feet to a set 5/8" rebar pin with yellow plastic cap stamped "Gary Denzer 1266" ; thence South 0203516" West a distance of 520.21 feet to the Point of Beginning, containing 4.00 acres, more or less. In addition to A part of the Northeast Quarter (NE /4) of Section 14, Township 16 North, Range 31 West Washington County, Arkansas, being more particularly described as follows: Commence at the Railroad Spike marking the northwest Corner of said Northeast Quarter (NE Y4) of said Section 14 and run thence South 0235'16" W est along the west line of said Northeast Quarter (NE Y4) a distance of 2490.43 feet; thence leaving said west line South 88032'18" East along the North line of an existing 50 foot wide overhead electric right of way, a distance of 130.03 feet to a set 5/8" rebar pin with yellow plastic cap stamped "Gary Denzer 1266" for the `True Point of Beginning" of this boundary description of a utility and access easement being contiguous with the existing 50 foot wide overhead electric right of way, the aforementioned 4.00 acres, and the 54`h Street; thence leaving said North line of said existing 50 foot right of way North 0203616" East a distance of 40 feet; thence North 88032'18" West a distance of 130.03 feet; thence South 02035'36" West along the west line of said Northeast Quarter (NE1 /4) a distance of40 feet; thence South 88°32' 18" East a distance of 130.03 feet to the Point of Beginning. Recorded at 2007-00010234 of the Records of Washington County, Arkansas. y SIGNED FOR IDENTIFICATION : Date: 2l¢ 1e ,07 i Date: �„rmnrrrhq Date: Dan Coo y, Mayor -'�G•G�jY pF• Gf' , Date: � D`/ Q = ; FAYETTEVILLE ; Sondra Smith, City Clerk 4a •� of .9RKANSP'J� �•wdoy/VG SON �C .. _ . . _ :, � � - '� � - 1 E_ .. •, . . � r, � , r . er. .. OFFER AND ACCEPTANCE CONTRACT Page 4 of 4 ACKNOWLEDGMENT STATE OF ARKANSAS ss. COUNTY OF WASHINGTON ) BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Larry Baggettand R.L. Dusty Richards, to me well known as the person(s) who executed the foregoing document, and who stated and acknowledged that he/she/they istare the Chairman and Secretary of Ozarks Electric Cooperative Corporation and islare duly authorized to execute the foregoing instrument for and in the name and behalf of said corporation, and further stated and acknowledged that he/she/they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 24 day of August, 2007. lal MY COMMISSION EXPIRES: �$ONIfLYNS al X Notary Public-Arkensaa WASHINGTON COUNTY fMY Commission Expires 32-2m ACKNOWLEDGMENT STATE OF ARKANSAS ss. COUNTY OF WASHINGTON ) BE IT REMEMBERED, that on this date, before the undersigned, a duly commissioned and acting Notary Public within and for said County and State, personally appeared Dan Coody and Sondra Smith, to me well known as the persons who executed the foregoing document, and who stated and acknowledged that they are the Mayor and City Clerk of the City of Fayetteville, Arkansas, a municipal corporation, and are duly authorized in their respective capacities to execute the foregoing instrument for and in the name and behalf of said municipal corporation, and further stated and acknowledged that they had so signed, executed and delivered said instrument for the consideration, uses and purposes therein mentioned and set forth. WITNESS my hand and seal on this 45t _ dayof , 2007. MY COMMISSION EXPIRES: .4�EEP\.OHEgp p�/*#* tary Public =5 � aCTARY r • Q� •� PUBO i�iy iesMaY;t • PQp� e � City of Fayetteville; Arkansas Budget Adjustment Form Budget Year Department: Sewer Plant Const Rev Date Requested Adjustment Number 2007 Division: g � 7 � 07 ; Program: Project or Item Added/Increased: Project or Item Deleted/Reduced: Increase W SIP project by $140,000. No items reduced. This budget adjustment is necessary to recognize revenue in the amount of $140,000 from Ozarks Electric property purchase of four (4) acres of West Plant property. Justification of this Increase: Justification of this Decrease: The increase represents the proceeds from the City's No items reduced. This budget adjustment is necessary land sale to Ozarks Electric Cooperative Corp. Ozarks to recognize revenue in the amount of $140,000 from Electric Cooperative is purchasing a four (4) acre section Ozarks Electric property purchase of four (4) acres of of the West Plant's property; specifically, a part of the West Plant property. Northeast Quarter of Section 14, Township 16 North, Range 31 West. Increase Expense Budget (Decrease Revenue Budget) Account Name Account Number Amount Project Number Transfer to WWT Imp Cap 5400 5700 7602 48 140,000 06032 1 . Contract services 4480 9480 5315 00 140,000 02133 1 Decrease Expense Budget (Increase Revenue Budget) Account Name Account Number Amount Project Number Gain/loss sale of assets 5400 0940 6881 02 140,000 06032 1 Trans from Water & Sewer 4480 0948 6602 40 1409000 02133 1 Approval Signatures Budget Office Use Only Type: A B C / DE ` Requested By Date (� �, D7 U t M er Date Posted to General Ledger - Initial Date Departm t Dire or Posted to Project Accounting Initial Date Financ Internal Ser ices Dire or at Entered in Category Log Initial Date Ma or Date City of Fayetteville � I 7 Staff Review Form City Council Agenda Items 5 or Contracts UGC K� �IeGT//G 7-Aug-07 O �� r �curee City Council Meeting Date David Jurgens Wastewater System Impry Project Water/Wastewater Submitted By Division Department Action Required: Approval of the sale of 4.0 acres of the Citys West Side Wastewater Treatment Plant site to Ozarks Electric Cooperative for the amount of $140,000 ($35,000.00 per acre), providing an access and utility easement to the same, and waiving the requirements of Ordinance 4358 ($140,000.00) $ Wastewater System Imp Project Cost of this request Category / Project Budget Program Category / Project Name 5400.0940.6881 .02 $ Water and Wastewater Account Number Funds Used to Date Program / Project Category Name 06032 $ Water/Sewer Project Number Remaining Balance Fund Name Budgeted Item xx Budget Adjustment Attached �x , Previous Ordinance or Resolution # 7.0J� Ia� Depart nt D ector Date Original Contract Date: li47(=LOriginal Contract Number: zs a City Attornet Date Received in Ci Clerk's ffice hI ENTERED 7 - 23-07 Finance and Internal Service Director Date Received in Mayor's Offi a EN' ED 9Z31 Mayor Date Comments: � � � � � 4 1 � .. sr_---� . � .�t f Y � � t lei '� 1 . j �. � � � .. -. . `��� , r i :x_ City Council Meeting of August 7, 2007 CITY COUNCIL AGENDA MEMO To: Fayetteville City Council Thru: Mayor Dan Coody Fayetteville Sewer Committee From: David Jurgens, Water and Wastewater Director u/1 I Date: July 18 2007 Subject: Approval of the sale of 4.0 acres of the City' s We Side Wastewater Treatment Plant site to Ozarks Electric Cooperative for the amount of $ 140,000 ($35,000.00 per acre), providing an access and utility easement to the same, and waiving the requirements of Ordinance 4358 RECOMMENDATION City Administration recommends approval of the sale of 4.0 acres of the City' s West Side Wastewater Treatment Plant site to Ozarks Electric Cooperative for the amount of $ 140,000 ($35,000.00 per acre), providing an access and utility easement to the same, and waiving the requirements of Ordinance 4358. BACKGROUND Ozarks Electric approached the City about purchasing land adjacent to the West Side WWTP for the future installation of an electrical substation several years ago. Collocating the two utility facilities is in the bests interests of both utilities and the public. DISCUSSION Selling the property. Staff does not anticipate utilization of this land for wastewater purposes as itis located at the west and north of the existing WWTP site. There is adequate room for expansion of the wastewater treatment plant first to the south for an additional 50% capacity increase ( 10 ingd to 15 mgd), and then to the west for a full doubling to 30 mgd, all based on using the current 1 technology. It is likely that technology improvements will reduce this future footprint requirement. The property layout is such that the City will keep a 50' strip of land between the Ozarks property and the 54°i Avenue right of way for future trail construction and a tree buffer. Waiving the ordinance. The $35,000 per acre price is higher than both the $29,000 per acre price . established by the City Council in resolution 109-05, and $31 ,850 per acre at which the WWTP site land was sold in 2007. Given the location within and completely surrounded by the City' s West Side WWTP property, this land is not eligible for sale for commercial or residential use. Thus, staff feels it would be an unnecessary cost to have a new appraisal, as required in Ordinance 4358 . The entire West Side WWTP site is zoned residential-agricultural, as is appropriate for the proposed electrical substation and the WWTP. BUDGET IMPACT Funds from this sale will be placed in the WSIP project fund. Oniks Elco CCMemoMay07