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HomeMy WebLinkAbout2005-09-29 - Agendas - Final 7aye I ARKANSAS WATEMEWER COMMITTEE AGENDA Meeting Date of September 29, 2005 COMMITTEE: Chairman Kyle Cook; Alderman: Lioneld Jordan, Bobby Ferrell, Robert Reynolds COPY TO: Mayor Dan Coody, Sondra Smith, Dum s, Steve Davis, Susan Thomas, Tim Conklin, Jeremy Pate R n Pet ie FROM: David Jurgens, Water/Wastewater A meeting of the Fayetteville Water and Sewer Committee is pl ned or September 29, 2005, at 5:30 PM, Room 326, Fayetteville City Hall. The topics oposed for discussion at the committee meeting include: 1. Approval of the Minutes of August 25 and September 1 Water/Sewer Committee Meetings. 2. WSIP Update. a. West Side Treatment Plant Action Plan. 1) Update on the status of negotiations with Brasfield and Gorrie. 2) Staff met with ADEQ regarding the alternative design solutions. ADEQ is very supportive of the possibility of using the MBR technology, and feels that changing the process, as long as we keep the same discharge point, basic plant location, and permit, can be executed in such a fashion that it should not delay the WWTP construction in any way. A follow-up letter from ADEQ is attached. b. Discussion of On-Site Inspectors for Construction Monitoring. This is a follow- up to our conversation on July 21 concerning the need for City employed staff to perform quality control/quality assurance duties for the West Plant as well as the pipeline and lift station work. 3. Hamestring Sewer Basin Update. Staff will present an update on the Hamestring sewer basin action plan. 4. STAG Grant Application/Approval Status. The City has received approval of the 2003, 2004, and 2005 STAG Grant applications within the last week. 5. Duncan and Associates Contract Discussion of a contract with Duncan and Associates for them to reevaluate our water and sewer impact fees. The original sewer impact fee was based solely on the west side plant construction estimate cost of $42.5 million. This study would reevaluate the fee based on updated collection system and treatment plant construction costs, and would also evaluate fees respective to the customer cities of Elkins, Farmington, and Greenland. 6. 33.4 Acre Purchase, North Side in the west side WWTP property. The City received one bid, in the amount of $1 ,039,007, for the 33.4 acres that are the northernmost portion of the west side WWTP property adjacent to Persimmon Road, from J. B. Hays and Charles Sloan. The offer included two conditions: development approval; and approval to reroute Persimmon Road (thus avoiding construction of another bridge over Owl Creek). The proposal is being reviewed by staff. The offer and acceptance documents are attached. W-S committee 29 Sep 05.doc 7. Arkansas Natural Resources Commission Interest in the west WWTP property. The ANRC is interested in purchasing land on and adjacent to the west side WWTP property for use as a banked wetlands. They are currently in negotiations with the landowner on the south border of the WWTP property. Staff requests authorization to evaluate this possibility. 8. Water/Sewer Operations Center Update. This project reached substantial completion on September 19. Punch list items are being completed. Water/Sewer Maintenance and Meter Operations will be moving in October. 9. Elkins Contract Review. Staff will present an update on the current status of the contract negotiations with Elkins. The proposed contract and related Arkansas Natural Resources Commission and Arkansas Department of Health and Human Services letters are attached. 10. Farmington Contract Update. Staff will present an update on the contract negotiations with Farmington. 11. Scheduling the Next Water/Sewer Committee Meeting. Staff recommends the next meeting be scheduled for October 11 at 5:30 in room 326. A primary issue will be the Capital Improvements Plan. Attachments: Letter from ADEQ, Sept 22, 2005 J. B. Hays and Charles Sloan offer and acceptance documents Elkins Draft Contract with cover letter Letter from Arkansas Natural Resources Commission, Aug 22, 2005 Letter from Arkansas Department of Health and Human Services, Sept 16, 2005 W-S committee 29 Sep 05.doe ADEQ � a �pED A R K A N S A S SEP 2 6 2005 Department of Environmental Quality G►T� Oiz ► � MAYOR, 4,.1/,L4,<e' September 22, 2005 Honorable Dan Coody Mayor, City of Fayetteville 113 West Mountain Street Fayetteville, AR 72701 Re: Follow-up to the September 13; 2005 Meeting (Construction Permit Number AR0050288) Dear May Coody: This letter is written as a follow-up to a meeting with representatives from the City of Fayetteville and ADEQ representatives on September 13, 2005 regarding the revising the treatment system for the City of Fayetteville-Westside. As discussed in the meeting, the Department understands that the City of Fayetteville is considering a better technology such as a membrane bioreactor (MBR) instead of clarifiers and filteration which was proposed by the City and approved by ADEQ. From available literature, the membrane bioreactor produces a superior quality effluent that exceeds the most stringent wastewater discharge standards, and it is easy to operate, has low maintenance costs, and a simple, effective design. These systems are capable of meeting Biological Oxygen Demand - BOD5 <5 mg/L and Total Suspended Solids — TSS <5 mg/L limits; but no data exists for this type of system in Arkansas. With the growing water quality concerns in the NW Arkansas area, the ADEQ Water Division is always interested in improving Arkansas water quality in an economical, as well as, an environmentally sound manner. Therefore, this system seems to meet the above requirements. If you have any questions concerning this matter, please feel free to contact me at (501) 682- 0616 or by E-mail at shafii@adea.state.ar.us. Respectfully submitted, Mo Shafii Permits Section Chief Water Division ARKANSAS DEPARTMENT OF ENVIRONMENTAL QUALITY 8001 NATIONAL DRIVE / POST OFFICE BOX 8913 / LITTLE ROCK, ARKANSAS 72219-8913 / TELEPHONE 501-682-0744 / FAX 501-682-0798 www.adeq.state.ar.us City of Fayetteville Bid 05-64, 33.436 Acres MIL of the Westside Wastewater Treatment Plant Site Attachment A: Offer and Acceptance Contract Note.Attachment A must be submitted with bid document OFFER AND ACCEPTANCE CONTRACT t �A I_ Buyer, � OJ ' `� AIZITs LJ • yOA�offers to buy, from the City of Fayetteville, Seller, subject to the to s and conditions set forth herein, the following described property. Adjusted Tract "A" Description (Doc. Ref_ 2005-00009354 Lot Line Adjustment): A tract of land being a part of the North Half (NYZ) of the Northeast Quarter (NE'1<) of Section Fourteen (14), Township Sixteen (16) North, Range Thirty-one (31) West, Washington County, Arkansas, described as follows: Beginning at a railroad spike which marks the northeast corner of said Section 14, as shown on Tyrone Vinson's plat found at Washington County Land Tide Record 2000 75843-51 and run thence North 87" 42' 12" West a distance of 2,648.05 feet to a railroad spike which marks the northwest comer of said Northeast Quarter of said Section 14; thence South 02" 35' 16" West along the west line of said Northeast Quarter a distance of 601.00 feet to a set steel pin; thence leaving said west tine and running South 87" 42' 12" East a distance of 2647.75 feet to the east line of said Northeast Quarter of Section 14; thence along said east fine North 2' 3T 00" East a distance of 601.00 feet to the POINT OF BEGINNING, containing 1,591,366 square feet or 36.53 acres, more or less. LESS AND EXCEPT (Persimmon Street Dedication): The North Thirty-five (35) feet of the Northeast Quarter (NE'/) of Section 14, Township 16 North, Range 31 West of the Fifth Principal Meridian, Washington County, Arkansas, being more particularly described as follows: Beginning at the Northeast Comer of the NE'/ of said Section 14 and running North 87" 42' IT West 2648.05 feet along the North tine to the Northwest comer of the NE% of said Section 14; thence along the west line of the NE'/ of said Section 14, South 2" 35' 16" West 35.00 feet; thence leaving said west line, South 87" 42' 12" East 2648.03 feet to the east line of the NE'/ of said Section 14; thence North 2" 37' 00" East along said east line 35.00 feet to the Point of Beginning, containing 92,680 square feet or 2.127 acres, more or less. LESS AND EXCEPT (5e Avenue Dedication): A part of the Northwest Quarter (NW'/e) of the Northeast Quarter (NE'/,) of Section 14, Township 16 North, Range 31 West, Washington County, Arkansas, described as follows: Commencing at a railroad spike which marks the Northwest comer of said NE'/ of said Section 14, thence South 02" 35' 16" West along the West line of said NE'/ a distance of 35.00 feet, to the Point of Beginning; thence continuing along said West line South 02" 35' 16" West a distance of 566.00 feet to a set steel pin; thence leaving said West line and running South 87" 42' 12" East a distance of 61..93 feet; thence North 020- 51' 34" East a distance of 566.02 feet, to a point along the proposed south right-of-way line of Persimmon Street; thence along said south right-of-way line; North 87' 42' 12" West a distance of 64.61 feet, to the Point of _ Beginning, containing 35,810 square feet or 0.822 acres, more or less_ LESS AND EXCEPT (Broyles Avenue Dedication): A part of the Northeast Quarter (NE'/) of the Northeast Quarter (NE'/) of Section 14, Township 16 North, Range 31 West, Washington County, Arkansas, more particularly described as follows: Beginning at a steel pin on the east line of the NE'/ of said Section 14, said pin being South 020 37' 00"West 248.93 feet from the Northeast comer of the NEM4 of the NEI/4 of said Section 14; thence leaving the east line of the NE'/ of said Section 14 and running South 12" 34' 42' West 64.91 feet to a steel pin at the beginning of a curve to the left having a radius of 739 feet and a delta angle of 09` 37' 15", thence along the are of said curve a distance of 124.09 feet to a steel pin; thence South 02" 57' 26" West 165.0 feet; thence South 87" 42' 12" East 23.34 feet, to the East boundary tine of the NE'/ of said Section 14; thence along said east boundary line, North 020 37' 00" East 352.24 feet to the Point of Beginning,.containing 6,416 square feet or 0.147 acres, more or less. NET ACREAGE: 33.436 ACRES 2. Purchase Price: subject to the following conditions the Buyer shall pay for the property at closing the total and cash payment of$ I ©3�t 4O 7 . -' cash. s/O kJ 3. Contingent Earnest Money Deposit: The Buherewith tenders a check for $5,000 to the City of Fayetteville, hereinafter referred to as Seller, as earnest money, which shall apply on the Purchase Price. This offer of purchase is contingent upon approval of the Fayetteville City Council--and, if they do not so approve, the earnest money deposit will be returned to the Buyer by the Seller. If title requirements are not .fulfilled or the Seller fails to fulfill any obligations under this contract, the earnest money shall be promptly refunded to Buyer. If Buyer fails to fulfill his obligations under the contract or after all conditions have been met, Buyer fails to close this transaction the earnest money may at the option of the Seller, become liquidated damages to the Seller. Alternatively, Seller may assert legal or equitable rights which it may have because of breach of this contract. 4. Conveyance will be made to Buyer 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 Seller. 5. Seller shall furnish, at Buyer's cost a policy of title insurance in the amount of the purchase price from a title insurance company as selected by Buyer. 6. Seller agrees to allow Buyer, at Buyer's expense, to survey the property. Seller agrees, at Seller's expense, to cure any title problems which may result from any differences between the recorded legal description of the property and the survey description. Said title problems, if any, must be solved prior to closing to the satisfaction of the Buyer. 7. Taxes and special assessments due on or before closing shall be paid by the Seller. Insurance, general taxes, ad valorem taxes, special assessments and rental payments shall be prorated as of closing. 8. Seller acknowledges that Buyer offers to purchase the property as outlined in buyer's proposal and Request For Proposal incorporated herein and made a part hereof. 9. The closing date is designated to be ninety (90) days after acceptance of this offer by the Seller. The location and time of closing shall be agreed to by Seller and Buyer. 10. Possession of the property shall be delivered to the Buyer on the date of closing. 11. All fixtures, improvements and attached equipment are included in the Purchase Price. 12. Risk of loss or damage to the property by fire, other casualty, or natural disaster occurring up to the time of closing is assumed by the Seller. 13. By submitting this bid, you agree that the Fayetteville City Council will-award this bid to the bidder that is foreseen to have the "best interest of the City of Fayetteville" in mind. The "best interest of the City of Fayetteville" is to be determined by the Fayetteville City Council. 14. The City of Fayetteville reserves the right to reject any bid. 15. This AGREEMENT shall be governed by the laws ofthe State of Arkansas_ 16. This AGREEMENT, when executed by both Buyer and Seller 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. Zo®J 17. This contract expires, if not accepted, on or before the —d ay of . 18_ NOTICE: BUYER ASSERTS AND SELLER HEREBY ACKNOWLEDGES THAT THIS OFFER IS EXPRESSLY CONTINGENT UPON THE FAYETTEVILLE CITY COUNCIL'S APPROVAL OF THIS OFFER OF PURCHASE AND THAT THE FAILURE OF THIS ENTITY TO SO APPROVE WILL MAKE ALL PORTIONS OF THIS OFFER NULL AND VOID, INCLUDING, BUT NOT LIMITED TO, THE RETURN TO BUYER OF THE S 5,000 EARNEST MONEY DEPOSIT. WITNESS OUR HANDS-THIS DAY OF , 2005. CITY OF FAYETTEVILLE, FAYETTEVILLE, ARKANSAS BY DAN COODY, Mayor ATTEST: :SonddraS 'th, City Clerk BY S s -YlA{Cs �, /O/fw PRINTED NAME AND TITLE ATTEST: COMPANY SECRETARY C 3s �Yt�4sSnc �i� BUSINESS ADDRESS GENERAL ADDENDUM BID 05-64, 34.436 ACRES M/L Westside Wastewater Treatment Plant Site Bid Offer & Acceptance Subject to the following: 1. Approval for Large Scale Development for Residential Subdivision, by City of Fayetteville and all appropriate governing agencies. 2. Approval for ability to change Master Street Plan to move Persimmon to the South thru 34.436 Acres M/L. Buyer Seller 0j, ►�I, Buyer Tayve re;ille ARKANSAS THE CITY OF FAYETTEVILLE, ARKANSAS I September 21, 2005 Jack Ladyman, Mayor City of Elkins P. O. Box 331 Elkins, AR 72727 Reference: Wastewater Services Contract - 2005 to 2021 Dear Mayor Ladyman; Enclosed is the contract proposal from Fayetteville for Fayetteville to provide wastewater transportation and treatment services for Elkins at Fayetteville's Paul Noland Wastewater Treatment Plant. The proposed contract is the culmination of several months of negotiations between representatives of Elkins and Fayetteville. It is Fayetteville's belief that this agreement accurately reflects the essence of this negotiation process. The primary points-of-concern stated in the early negotiations were the rate per 1,000 gallons and volume measurement. This agreement establishes the rate per 1,000 gallons from March 1, 2005 until the next comprehensive rate study at $2.81 per 1,000 gallons. It also contains a provision for an additional $0.25 per 1,000 gallon to fund additional capacity needs related to new customers. Fayetteville is offering, subject to Elkins approval, to substitute this additional charge for Elkins collecting and remitting to Fayetteville Fayetteville's wastewater impact fee. This contract calls for Fayetteville to install a new meter and for Elkins and Fayetteville to use a formula based on water purchases as a proxy for wastewater volumes, for a 120- day test period, to determine which method to use for future volume based billing purposes. Fayetteville will install the meter and cause it to be calibrated in compliance with the manufacturer's specifications on an annual basis to ensure accuracy. At our meeting on September 8, Elkins stated a desire to receive a refund or credit back to October, 2004; the City of Fayetteville took this request under advisement. A review of the correspondence files revealed that Greg Boettcher notified Mayor Brt that Elkins sewer meter was significantly under-reading volumes. This initial correspondence is dated in November 2003 and references discussions and meetings with Mayor Brt; a formal report was provided to Elkins in October, 2003 further documenting the meter under-read. Mr. Boettcher followed the November 2003 letter with follow-up correspondence on January 2004. Arkansas Public Service Commission rules allow for a utility to back-bill for a six month period after a meter malfunction is discovered. s Fayetteville is entitled to bill for additional unreported volumes back to May 2003. Because of the lack of action on the part of Elkins officials to remedy the meter issue, the City of Fayetteville cannot provide a credit back to October 2004. Fayetteville is willing to settle all under-read volume billing issues if Elkins agrees to limit the credit to volumes billed after March 1, 2005. Also, as stated in our September 8 meeting, Fayetteville will participate in the cost of an impact fee study that addresses Fayetteville's existing water and wastewater impact fee as well as develop an impact fee calculation for the Elkins water and wastewater system. In this regard Fayetteville has negotiated a contract with Duncan Associates to conduct a feasibility analysis. Fayetteville expects to submit this contract to the Fayetteville Sewer Committee for review and approval on September 29. As soon as the Fayetteville Sewer Committee approves the contract it will be forwarded to Fayetteville City Council for approval. Please note that Fayetteville and Elkins city councils must approve the contract before it can become effective. Also, note that a public hearing is required before any wastewater rates can be adjusted. If you have any questions concerning any item contained within this letter or the proposed contract, please contact Stephen Davis at 479-575-8330. Sincerely; Stephen L. Davis Finance & Internal Services Director Enclosure: Proposed contract Professional Services Agreement with Duncan Associates CC: Dan Coody, Mayor Fayetteville Sewer Committee Kit Williams, Fayetteville City Attorney Sondra Smith, Fayetteville City Clerk Ron Petrie, Fayetteville City Engineer David Jurgens, Fayetteville Water & Wastewater Director, Interim Rainy Laycox, Fayetteville Billing & Collection Manager SEWERCONTRACT This Agreement , made and entered into this day of , 2005, by and between the City Of Fayetteville, Arkansas, hereinafter referred to as "Fayetteville", and the City Of Elkins, Arkansas, hereinafter referred to as "Elkins"; WITNESSETH: WHEREAS, Fayetteville in its governmental capacity owns and operates its own complete wastewater collection, treatment and discharge system; and WHEREAS, Elkins in its governmental capacity owns and operates its own wastewater collection system and does not operate a wastewater treatment or discharge system; and WHEREAS, Fayetteville receives wastewater from Elkins and then transports and processes the wastewater in Fayetteville's wastewater treatment facility and discharged treated wastewater effluent under Fayetteville's National Pollution Discharge Elimination System (NPDES) permit; and WHEREAS, it has been determined that the best and most feasible treatment for Elkins' wastewater can best be provided by Fayetteville's wastewater treatment facilities; and WHEREAS, Elkins desires to contract with Fayetteville to provide continued transportation and treatment for the wastewater from Elkins; and WHEREAS, Fayetteville must ensure that this role does not place financial burdens on Fayetteville's retail customers for which Fayetteville's retail customers receive no benefit; and WHEREAS, Elkins must ensure that this role does not place financial burdens on I Elkins' retail customers for which Elkins' retail customers receive no benefit; and i WHEREAS, Elkins acknowledges that Fayetteville must add and fund capacity additions from time-to-time. NOW THEREFORE, in consideration of the mutual covenants, promises and conditions hereinafter set forth and other valuable considerations, the receipt of which is hereby acknowledged by Fayetteville and Elkins, it is hereby agreed as follows: i A. TREATMENT OF SEWAGE 1. Fayetteville agrees to accept for treatment the sanitary sewage delivered by Elkins to the Fayetteville system and to process such wastes in the same manner as wastes from Fayetteville are treated under the following terms and conditions: 2. Elkins will construct all facilities required to deliver wastewater from Elkins to a "Point of Connection" to Fayetteville's sewer collection system as described below and As Elkins' wastewater is discharged to the environment under Fayetteville's NPDES permit or permits, so is Elkins subject to the terms, conditions and requirements of said NPDES permit or permits, as well as any other regulatory requirements that apply as a result of said permit or permits. This applies to any and all permits that pertain to any portion of the wastewater conveyance and treatment system through which Elkins wastewater flows. Permits which are issued relative to portions of the Fayetteville wastewater conveyance and treatment system through which Elkins wastewater does not flow do not apply. 3. Fayetteville and Elkins agree that Fayetteville shall accept and treat all wastewater flows from Elkins until the bio-loading at the Paul Noland Plant ("Plant") reaches 75%, and, at that time the Elkins and Fayetteville agree to pro-rate the remaining capacity between all cities and any non-city customers using the "Plant" based on the existing percentage usage of that "Plant" by each city or non-city customer until additional capacity is provided. B. RATES FOR SEWER SERVICE 1. Elkins and Fayetteville agree that rate-making shall be fair and equitable, be easy to administer and understand and shall be based on policies that result predictable ! rate adjustments and avoid abrupt rate changes. 2. Elkins and Fayetteville agree that Fayetteville shall recover a return on investment on the assets employed to provide service to Elkins limited to no-more-than j 2% above the highest outstanding bond issue for assets purchased with Sewer System I revenues. 3. Elkins and Fayetteville agree the rate for sewage treatment services provided herein shall be reduced to $2.81 per 1,000 gallons of sewage received by Fayetteville from Elkins for treatment beginning on the date this agreement is approved by both Cities. The Cities acknowledge this rate reduction is due to the Elkins sewer meter registering faulty volumes. 4. Fayetteville and Elkins agree to apply and accept a retroactive adjustment, ' based on actual metered volumes, back to March 1, 2005. Both cities acknowledge this is a settlement that resolves all potential claims and releases any rights they might have had prior to March 1, 2005 relating to sewer rates, metering, etc. Fayetteville agrees to 2 i release its rights for all back billings for volume underreporting that has occurred prior to the effective date of this agreement. 5. Fayetteville will conduct a comprehensive cost-of-service study in the future that will reset these sewer rates based on industry standards. Fayetteville shall cause the rate per 1,000 gallons for wastewater treatment services to be determined by an independent utility rate consulting firm with demonstrable expertise in water and wastewater utilities under a wholesale contractual agreement and in compliance with the rate methodology based in part or whole on the rate making standards promulgated by the American Water Works Association (AWWA), Water Environment Federation (WEF) or other authoritative organization. All of the wastewater flows from Elkins shall flow through a metering device provided at the pump station which pumps to the point of connection of the Elkins system to the Fayetteville system. C. IMPACT FEE IMPLEMENTATION or CONTRACTUAL SURCHARGE 1. Elkins and Fayetteville further agree that Elkins shall pay either an additional $0.25(1,000 gallons, beginning January 1, 2006, to fund Elkins' portion of future capacity enhancements to the Fayetteville collection and treatment facilities utilized by Elkins or Elkins will assess, collect and remit Fayetteville's Wastewater Impact Fee for treatment plant capacity as described in Fayetteville Code of Ordinances §159.02, as amended from time to time. 2. The payment for wastewater treatment shall be based upon the volume of wastewater received by Fayetteville at the "Point of Connection" measured either by a formula jointly developed by Elkins and Fayetteville as more fully set-forth in Attachment B or the actual meter reading from the wastewater meter installed. Elkins and Fayetteville agree to monitor wastewater volumes using both methods described previously for a 120 day period beginning on the nearest meter reading date to determine the most appropriate volume measurement procedure for billing purposes. Elkins and Fayetteville agree to utilize the meter reading exclusively if the calculated volume method differs from the meter reading volume by 10% for three consecutive billing periods. The Cities agree to base monthly billing on the metering device readings while any formula discrepancies are investigated. The use of the meter for billing purposes shall cease upon mutual agreement between Elkins and Fayetteville. I 3. Fayetteville shall provide the maintenance and any required replacement of the metering device, and Elkins shall be the right of inspection of the metering device and "Point of Connection" at any reasonable time. Elkins shall have full and complete access to the pump station at all times. The metering device shall be calibrated in compliance with the manufacturer's guidelines for accuracy once per year by Fayetteville. 4. A statement for sewer services shall be rendered by Fayetteville once each month, and shall be paid by Elkins in accordance with Fayetteville Code of Ordinances 3 Chapter 51.141, as amended from time-to-time and incorporated herein as of September 14, 2005: Sewer Billing procedure (A) Bills for sewer service shall be rendered monthly. Sewer bills are due and payable on or before the 201h dayfollowing the billing date stated on the sewer bills. Sewer bills not paid on or before the due date shall be considered delinquent and an additional charge of 10% of the total bill shall be added, and if any bill is not paid within 30 days after the bill shall be due, suit may be brought to collect the amount due, together with the expenses of collection and a reasonable attorney's fee. (B) 1n the case of the sewer customers outside the city limits, if the monthly service charges Are not paid within the prescribed time, sewer service to the customer will be discontinued in the same manner and subject to the same provisions as prescribed for discontinuance of service under 51.140(B). i D. ELKINS RESPONSIBILITY FOR SEWER MAINTENANCE 1. Elkins shall have full responsibility for all maintenance and operations of Elkins' sanitary sewer system, including all parts thereof necessary to deliver the sanitary waste to the point of connection with the Fayetteville system in such a manner to be suitable for the treatment capabilities of the Fayetteville system. In such regard, Elkins agrees to comply with all reasonable requirements of Fayetteville. 2. Elkins agrees that Fayetteville will have the right to inspect the sanitary sewage system of Elkins at all reasonable times so as to assure Fayetteville that the construction, maintenance and operation of said sanitary sewer system is being carried out in a manner consistent with modern engineering and health practices. Fayetteville may inspect any taps onto the sanitary sewer system of Elkins at the time of installation of said taps, said inspection to be by a designated official of Fayetteville. E. ELKINS" ADOPTION OF SEWER CODE REQUIREMENTS 1. Elkins agrees to adopt and enforce with reference to all users of its sanitary sewer system requirements and restrictions which are, at least, as restrictive as those provisions of the ordinances of Fayetteville restricting and controlling discharges into the sanitary sewer system of the City of Fayetteville. The requirement of this subparagraph shall be interpreted as to require the adoption and enforcement of such restrictions by Elkins as are equal to any ordinances or subsequent amendments to such ordinances of Fayetteville. 2. Elkins hereby agrees to exclude from their sewage collection system any industrial process wastewater without prior written approval from Fayetteville. Elkins agrees to provide Fayetteville an official copy of the Elkins adopted guidelines. 4 F. REPORTING DEVELOPMENT APPROVALS 1 . Elkins agrees to provide to Fayetteville, on a monthly basis, all development approvals grants by the Elkins Planning Commission and/or Elkins City Council. G. TERM OF CONTRACT 1. The term of this contract shall be for the life of the loan (7/23/2021) from Farmers Home Administration to the City of Elkins, which is being made to enable Elkins to build its sewage facilities. H. SEWER RATE SCHEDULE ADJUSTMENT 1. The rate schedule established herein is subject to adjustment by Fayetteville every two (2) years during this contract upon thirty (30) days written notice to Elkins. i 2. Fayetteville agrees that Elkins may participate in the selection of the independent rate consultant. I. POINT OF CONNECTION 1. The "Point of Connection" shall be at the end of Fayetteville's 10-inch gravity sewer line in Lewis Woods Lane in the Baldwin Community. J. HOLD HARMLESS 1. Elkins covenants and agrees that it will defend and hold harmless against and indemnify said City of Fayetteville, Arkansas, for any judgment which might be obtained against them by reason of any negligent act on the part of Elkins in the operations, maintenance and construction of Elkins' sewage collection facilities within Elkins' service area. This provision does not waive either City's statutory sovereign immunity. Fayetteville shall not be responsible for damages resulting from acts of God, acts of war, insurrections, or rebellions, acts of a public enemy, acts of any unauthorized persons, firms, or corporations, or acts of Elkins, its agents or employees. K. CONTRACT BINDING ON SUCCESSORS 1. This contract shall be binding upon n tha parties hereto, thei r successors and assigns. In the event of any occurrence rendering Elkins incapable of performing under j this contract, any successor of Elkins, whether by result of legal process, assignment, or j otherwise shall succeed to the rights of Elkins under this contract. j< 1 5 I L. NO FRANCHISE OR OTHER FEE OR TAX TO BE LEVIED 1. Elkins will not during the period of this contract or any renewal thereof, levy any franchise tax, occupation tax, or any other tax or fee of any forth whatsoever, by whatever name it may be called, upon Fayetteville, or the services rendered pursuant to this contract without consent of all the parties. M. TERMINATION 1. This agreement may be terminated by either party 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 six months (6) months after receipt of written notice of the existence of such breach. N. NOTICES 1. The written notices provided for herein shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, to the Mayor of the City of Fayetteville, 113 West Mountain Street, Fayetteville, Arkansas 72701, or the Mayor of the City of Elkins, 348 B North Center Street, Elkins, Arkansas 72727, but not limited thereto. IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE AND IN WITNESS WHEREOF, the Mayor and City Clerk of the City of Fayetteville, Arkansas, by authority of a Resolution adopted by the City Council of the City of Fayetteville, and the Mayor and City Recorder of the City of Elkins, Arkansas, by authority of a Resolution adopted by the City Council of the City of Elkins, have hereunto set their hand and caused the corporation seal to be affixed and dated this day of . 2005. CITY OF FAYETTEVILLE CITY OF ELKINS By: By: DAN COODY JACK LADYMAN Mayor of Fayetteville, AR Mayor of Elkins, AR Attest: Attest: Sondra Smith, City Clerk Meg Smith, Recorder 6 aP�aeso�4 ,tt1E STq?, Arlecansas NaturalA. ° Resources Commission J. Randy Young, PE 101 East Capitol, Suite 350 Phone: (501) 682-1611 Mike Huckabee Executive Director Little Rock, Arkansas 72201 Fax: (501) 682-3991 Governor http://www.anrc.arkansas.gov/ E-mail: anrc@arkansas.gov August 22, 2005 R E P" ED Mr. Stephen Davis, Financial Manager AUG 2 5 2005 113 West Mountain CITY OF FAYE'fI tz-VILLE Fayetteville, AR 72701 MAYOR'S OFFICE RE: Arkansas Natural Resources Commission — City of Fayetteville — "Report on Revenue Requirements, Costs of Service, and Rates for Water and Wastewater Service" and its impact on rates for the City of Elkins Dear Mr. Davis: The Arkansas Natural Resources Commission (ANRC) believes that the Black and Veatch report entitled "Report on Revenue Requirements, Costs of Service, and Rates for Water and Wastewater Service" does not sufficiently discuss the rate design as it pertains to the City of Elkins. Due to past metering issues, the City of Elkins is currently being billed on twice the volume that it was billed on from 2002 to 2004. However, since Black and Veatch was apparently unaware of these metering issues, they did not address the rate design in enough detail to determine why the volumetric rate for the City of Elkins was greater than the average cost rate. Since Elkins wholesale use represents less than 1% of the total flow of the system, ANRC encourages the City of Fayetteville to take this opportunity to reevaluate the rate analysis in an effort to provide rate relief for the City of Elkins. ANRC is hopeful that the City of Fayetteville will be able to find a mutually beneficial resolution to this matter and as always if ANRC can assist in any way, please let us know. ANRC is proud to be able to work with the City of Fayetteville on such a worthwhile endeavor. If you need additional information or clarification of this letter, please contact me at 501-683-0279. Very trulfection , } i tt J. Planning Manager An Equal Opportunity Employer SaE ST,N . yArkansas Department- a4 Y�..-. T� � n ra of Health and Human Services Division of Healthmmike Paul K. Halverson�DrPH, Director � P.O. Box 1437, Slot H-37 Little Rock, AR 72203-1437 C E I -661-2623 • TDD. 1-800-234-439 September 16, 2005 SEP 2 2 2005 Honorable Jack Ladyman ENGINEERING DIV. Mayor, City of Elkins P. O. Box 331 Elkins, AR 72727 10%E: Sevier System Capacity Dear Mayor Ladyman: This is follow up to your correspondence dated August 26, 2005 and our telephone conversation yesterday. We are pleased to learn that Elkins has been working on repairs to the Elkins sewer system to reduce the amount of infiltration and inflow (1/1). We understand that you had a contractor inspect and smoke test the oldest 2/3rds of the sewer system and give you a priority list for repairs. We understand that all Category 1 leaks have been repaired and that currently the City of Elkins is working on Category 2 leaks. We understand that you have seen at least some reduction in 1/1 during rainfall events based upon pump run times and that you have not had an overflow since the Category 1 leaks were repaired. We understand that the Elkins planning commission has approved 5 subdivisions (Millers Meadow, Stonecrest, Elkridge, Oakleaf Manor, and Stokinberry Farms) and that a sewer system capacity assessment done by McClelland Engineering indicated that Elkins had sufficient current capacity to serve the 5 proposed subdivisions, but would then need to upgrade lift station #1 prior to serving additional developments. We would like to receive a copy of the capacity assessment. Currently, we have approved the plans for Millers Meadow and Stonecrest. We have been holding Elkridge pending receipt of information on Elkin's sewer capacity and based upon your correspondence dated August 26, 2005, we will approve Elkridge. We have been holding Oakleaf Manor pending receipt of information on Elkin's sewer capacity and on other issues. Once the other issues are resolved, we will approve Oakleaf Manor. We have not received plans for Stokinberry Farms. We understand that Elkins is planning on upgrading lift station #1 from 275 GPM up to 600 GPM. We would like to remind you that plans for this upgrade need to submitted to and approved by ADHHS prior to construction. Also, as we discussed by telephone, we are concerned about the ability of the Fayetteville sewer system to handle this much of an increase. According to records on file in our office, Elkins has an 8 inch force main from lift station #1 that discharges into a manhole at the end of a 10 inch gravity sewer main in the Fayetteville sewer system. A 10 gravity main installed at minimum slope (0.28%) should have a capacity of about 550 GPM. We understand that www.healthyarkansas.com Serving more than one million Arkansans each year n portions of the existing 10 inch gravity main have been installed at slopes less than the " minimum required and in fact that one section actually has a negative slope. The capacity of the existing 10 inch line will have to be determined prior to upgrading the Elkins lift station. Also, keep in mind that some of the capacity of the 10 inch line is utilized by other customers of the Fayetteville sewer system. We understand that the 10 inch gravity main discharges into a Fayetteville sewer lift station which has a current capacity of 600 GPM and that Fayetteville is proposing to upgrade the lift station to 1 ,800 GPM. We are not aware of any plans by Fayetteville to upgrade the 10 inch force main from Elkins to the lift station. Please be advised that other than Stokinberry Farms, we probably will not be able to approve any additional development in Elkins until the sewer system capacity is upgraded. We are requesting that if developers contact the City staff and/or the City Planning Commission staff, that the developers be made aware of the potential limitation of sewer system and that the ADHHS may-not approve flans until such time as the sewer system capacity is increased. If you have any questions, please feel free to contact Roy Davis, Robert Hart, or I at 501- 661-2623. Sincerely, ,��Zr Craig S. Corder, P.E. Engineer Supervisor Division of Engineering RH:CSC:RAD:csc Cc: David Jurgens, Fayetteville Water Washington County Sanitarian ADEQ Barrett Morgan, P.E. Northstar Engineering McClelland Engineering