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HomeMy WebLinkAbout2005-10-13 - Agendas - Final f F .. j, 8, eVille � ARKANSAS' lR TERDA" YOM , ' Meeting Elate of October 13 2t}U5 COMMITTEE: Chairman Kyle Cook; Alderman-; Lioneld Jordan, Bobby Ferrell, Robert Reynolds COPY TO Mayor Dan Coody, Sondra.Smith; cry mas, Steve Davis, Susan Thomas, Tirri Conklin, Jeremy Pate etrie FROM: David J.urgens, Water/Wastewater A meeting of the Fayetteville Water and Sewer Committee. ! `. ,tanned for October 13 0©v, at; 5;30 PM, Room 219, Fayetteville City Hail. The topics prop, . d for discussion at the committee meeting include: 1. WSIP Update. a. West:Side Treatment Plant, Presentation of the Brasfield?.& G:orrie contract. b. Construction Cost and Time-Line Sum »cry.: An update to the construction schedule and cost estimates: . 2. Capital Improvements Program. staff will present flat iriput on the waterfSewer Capital Improvements Plan. 3 HORSES Operations Study. This study has:been received and will be;availabie for review . 4. Outside City Sewer Requests; a. Lierly Lane. b. Rom Orchard Road, C Double Springs Roast. 5 Elkins Contract Roviewi, Staff will'present an update on the current status of the contract negotiations with Elkins. ti. Farmington Contract Update. Staff will present an, upd,Wo on the contract negotiations vsri#h Farmington. 7. Scheduling the Next Water/Sewer Cc ntm�ttee Meeting: There wit! be a speciai.Citj+ Council hieeting at 6:00 Thursday, 20 October 2005, to zconsider the Brasfield & Gorne contract; Staff recommendsthe next W.1, Committee meeting be sctiedtrle'd for Monday, November 7 at. 5:30 in room 326. i Attachments: Elkins Contract Elkins Volume Spreadsheet i Farmington City Council Resolution E Greenland City. Council Resolution: f f F W-S committee 13 Oct 05 doc , i i i i I i i,, I I I�'' i i I j i SEWER CONTRACT 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 own 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, at this time it has been determined that the best and most feasible treatment for Elkins' wastewater can 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 burden of 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 Elkins' retail customers for which Elkins' retail customers receive no benefit; and 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: 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, 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. Fayetteville will provide Elkins a current copy of the NPDES permit and any future revisions. Permits which are issued relative to portions of the Fayetteville wastewater jconveyance 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") and the hydraulic loading at any point in the collection system from the Point of Connection to and including the "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 of that "Plant" by each city or non-city customer until additional capacity is provided. Fayetteville will provide Elkins with the average monthly bio-loading for the Noland plant for all of 2005. Going forward, Fayetteville will provide monthly reports to Elkins showing the average bio-loading for each month. S. 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 agrees that Fayetteville's return on investment on assets employed to provide service to Elkins will be limited to 2% above the average bond coupon outstanding debt at the time of the comprehensive cost of service study noted in paragraph 5 below. 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 partially due to the Elkins sewer meter registering faulty volumes. I� I 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 resolved all potential claims and released any rights they might have had prior to March 1, 2005 relating to sewer rates, metering, etc. Fayetteville agrees to 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 CONTRACTURAL SURCHARGE 1 . Elkins and Fayetteville further agree that Elkins shall pay an additional $0.25/1,000 gallons of billed sewage, beginning January 1, 2006, to fund Elkins' portion of future capacity enhancements to the Fayetteville collection and treatment facilities utilized by Elkins. Fayetteville and Elkins agree that this rate per thousand shall be evaluated concurrent with each comprehensive cost-of- service study described in Section E paragraph 5 above as governed by Section H below. Fayetteville and Elkins further agree that Elkins shall assess, collect and remit to Fayetteville the cost of increasing capacity within the Fayetteville collection system used by Elkins as depicted in APPENDIX A. The capacity cost is to be calculated on the volume of contributed wastewater flow caused by the development under review. 2. The payment for wastewater treatment shall be based on metered water purchases discounted by the formula described in APPENDIX B. Elkins and Fayetteville agree to use eighty-five per cent (85%) as the initial percentage. This initial percentage shall remain in effect until December 31, 2006 at which time the percentage may be adjusted to reflect adjusted wastewater flows as calculated by a registered engineer contracted by Elkins. Elkins and Fayetteville agree that the volume of wastewater received by Fayetteville at the "Point of Connection" shall be measured by the wastewater meter installed. The Cities agree to base monthly billing on the percentage method unless the metering device readings detect any volume discrepancies greater than 10% for three consecutive months. Elkins and Fayetteville agree to use actual meter readings while the volume discrepancies are investigated. The use of the meter for billing purposes shall cease only upon mutual agreement between Elkins and Fayetteville. 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 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 20`h day following 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 attorneys fee. (B) In 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). 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 in 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. Fayetteville will notify the Elkins Water and Sewer Department during normal business hours, of Fayetteville's intent to inspect portions of Elkins Wastewater Collection System. Fayetteville agrees to provide Elkins a copy of any written reports that result from the inspection(s). i i i i E. ELKINS' ADOPTION OF SEWER CODE REQUIREMENTS i j 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. F. REPORTING DEVELOPMENT APPROVALS L Elkins agrees to provide to Fayetteville, on an annual 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 loan #9206 whose original date is July 23, 1981, with the loan having an initial term of forty (40) years, 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. 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 as depicted in APPENDIX A. 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 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 the parties hereto, their successors and assigns. In the event of any occurrence rendering Elkins incapable of performing under this contract, any successor of Elkins, whether by result of legal process, assignment, or otherwise shall succeed to the rights of Elkins under this contract. L. NO FRANCHISE OR OTHER FEE OR TAX TO BE LEVIED I 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 form 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 maybe terminated by either party upon a material or substantial 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 (6) months after receipt of written notice of the existence of such breach. Either party will have the right to utilize a mediation process if they disagree with a proposed breach. Elkins reserves the right to re-negotiate or terminate this contract if it is. advantageous for the Elkins to pursue a different type of sewage treatment process, subject to advance notification of at least two years. 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, 348B North Center Street, Elkins, Arkansas, 72727, but not limited thereto. i IN AGREEMENT WITH ALL THE TERMS AND CONDITIONS ABOVE AND IN WITNESS WHEREOF, The Mayor and City Clerk of the City of Fayetteville, j ; i i 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 j 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 Fayetteville - Elkins Wastewater Agreement APPENDIX B Wastewater Volume Based On Metered Water i FORMULA ACTIONS Example Water Meter Reading Volume - September, 2005 4,431,900 Wastewater Volume as a % of Water 85% 3,767,115 i j j - = " m (1) o o m O 00 N OCJS O O O O O t0 171 7 \ *0 = 3 N A W N O OO. W D fA a0 � (D 0 N O Q I 00 lD I 3 As N O W '0 D N N 01 O � W 0) (31A 00 N CWO C O W N y C N W N O N n O _ m c0 C W -P V1 W 3 D) O 7 3 01 00 00 f0CD ¢) = O O O O OC) O O O O O I a 0 o O O O O O O O O Q p <D �D :3 CDCL Q .► C 1t �D N N OD 00 W CA) IQ O CN17 ONO C N N N NA N N O -P W t0 -� O CDD C 3 D) fD O -I N -a 0 0 C (7 O Q OO V O 0 � O <D OOp O W O O O O O O O O (D a O O O O O O O lD C C 3 N 3 M O O (D CC C in a) CpS 2) V OO O OO O O 0) y O 3 O lD D) �G 01 C7 p CA) CSi W N _. CD O) o C lD M o ^ -' V O O d7 N CD CA3t _, W CD O A CD O 3 O R CD C4 C (D a -n 'S — O O '+ V! O � � C 3 3 tD m M m �- �L N N0 O N -n M p) O � N �D < I _ Q O O I I '. i i j i I i i -� - - I I �' f Oct 12 05 10: 23a. City Of Farmington 4792673005 P . 1 ,I j RESOLUTION NO . 2005-06 A RESOLUTION SUPPORTING SEWER RATE AND IMPACT FEE STUDIES BY THE CITY OF FAYETTEVILLE IN CONJUNCTION WITH NEGOTIATIONS FOR THE ACQUISITION OF THE FARMINGTON WASTEWATER COLLECTION SYSTEM WHEREAS, the City of - Farmington does not operate a municipal sewer system or a municipal water system, and WHEREAS, . the City of Fayetteville provides water service and 'wastewater collection and treatment for the City of Farmington, and WHEREAS, the City of Fayetteville has expressed an interest in acquiring the Farmington sewer collection infrastructure and entering into a long term contractual agreement to provide water and wastewater collection and treatment for the City of Farmington, and WHEREAS, the City of Fayetteville has agreed to provide sewer rate and impact fee studies in conjunction with negotiations for the transfer and acquisition of the Farmington sewer collection infrastructure , BE IT THEREFORE RESOLVED By THE CITY COUNCIL OF THE CITY OF FARMINGTON Section 1 : The Farmington City Council supports negotiations. for a long term contractual agreement with the City of Fayetteville for the transfer and acquisition of Farmington, s sewer collection infrastructure and for the City of Fayetteville to provide water service and wastewater collection and treatment service for the City of Farmington . Section 2 : The Farmington City Council further supports the Fayetteville City Council ' s decision to engage the services of consulting firms to provide sewer rate and impact fee studies to analyze the rate components of Fayetteville' s treatment facilities, the implementation of impact fees by Farma.ngton, and the rate components of Farmington ' s collection facilities to address capital funding and develop a rate structure in furtherance of negotiations between the respective cities . 0 Oct 12 05 10 : 23a City Of Farmington 4792673805 p . 2 Section 3 : The Farmington City Council directs the Mayor, City Clerk and city staff to provide information requested by the consulting firms to assist in the preparation of rate and impact fee studies . PASSED AND APPROVED this 10th day of October, 2005 . hn Harris , Mayor J \1 r jean. Swift, City Cle k j i i i 1 ^ r I i I i j - j - i j I i i 09f19/20H5 08:05 4795217780 CITY OF GREENLAND PAGE HI Post-Or 1--ax Note 7671 "�'� ' � t �° � Phone P�+io.ne• � /e�.r�t, z� ' RECEIVED !/ — 74�� Fax, � SEP 19 206 t CITY OF FAYETTEVILLE CM CLERK'S OFFICE RESOLUTION NO, WHEREAS, the City of Greenland does not operate a municipal sewer system or a municipal water system. WHEREAS, the City of Fayetteville owns and operates the water system within the City and provides wastewater collection and.treaftwnt.for.nesidents-of the City. WHEREAS;rapid projected development.will.very quicidy increase thedemand for sewage collection-and-treatment-infrastructure which-the City cannot.undertalM at this time. WHEREAS, the City owns its existing sewage collection right-of--ways and system._ WI#EREAS, the City of Fayetteville has expressed interest in acquiring the Greenland sewage collection and treatment infrastructure and operating same in conjunction with their City department/system- BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF GREENLAND, ARKANSAS, that: S ct� ion I= The Greenland City Council strongly supports the concept of selling to the City-of Fayetteville the entire Gzeenland sewage collection system,. including rig}tt-of ways, piping, lift-stations, etc. Sec .on 2: The Greenland City Cqunci l hereby authorizes and directs the Mayor and Recorder-Treasurer along with all City officials, employees, staff and agents to cooperate with the City of Fayetteville in collecting information and conducting further investigation musistent with-a transfer by the City of Greenland to the City of Fayetteville of Greenland's sewage collection system. Section 3: The-Mayor.shall.4repare-a monthly.oral report on the various s"taken 09/19/2005 08:05 4795217780 CITY OF GREENLAND PAGE 02 for the i mmadiate•pastmonih and the prospective steps.to be taken in thw.coming-month al each Council Meetjng. Recognizing.dist-theaNuisition by Fayetteville of the City sewage item wit} also xegnire-the-appl icatiron-of Impact Fees Aland developed-and sold for use in Creed the City Council pledges its support of those-fees and-authorizes•attd-directs the Mayor, the Recorder-Treasurer and all City officials, employees, staff and agents to cooperate in investigation-and pre implementation-procedures iff this regard as well. PASSED AND APPROVED this Z�ay of September, 2005. :,0j WILL" Y4ES, Ma ATTEST: DONNA. CHEEYERS, Recorder.:Tteasurer I 1 1