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HomeMy WebLinkAbout2008-11-13 - Agendas aye ev le WATER/SEWER COMMITTEE AGENDA SUPPLEMENT 2 Meeting Date of November 13, 2008 COMMITTEE: Chairman Kyle Cook; Aldermen: Lioneld Jordan, Bobby Ferrell, Adella Gray COPY TO: Mayor Dan Coody, Sondra Smith, Gary Dumas, Paul Becker, Susan Thomas, Jeremy Pate, Ron Petrie, Shannon Jones, Tom Hubbard, Peggy Bell, Lynn Hyke, OMI FROM: David Jurgens, Water and Wastewater Director A meeting of the Fayetteville Water and Sewer Committee is pla ed f November 13, 2008, at 5:15 PM, in room 326, Fayetteville City Hall, immediately Mowing the City Council Agenda Session. This is a supplement to the previously published agenda. 1 Johnson Contracts with the Springdale Water and Sewer Utility are attached as discussed during the meeting. 2 OMI Contract Amendment for 2009 is attached and will be discussed in detail at the meeting and is attached. The change order includes costs for 2009 wastewater operations. The scope of services provided by OMI include: (1) operate and maintain the Noland Wastewater Treatment Plant (WWTP); (2) operate and maintain the West Side WWTP; (3) operate and maintain 45 wastewater pump stations; (4) administer the City's NPDES permits; (5) manage the City's biosolids disposal; (6) manage the industrial pretreatment program; (7) support the SCADA (supervisory control and data acquisition system) network that monitors water&wastewater facilities; (8) pursue operation economies, efficiencies, and permit compliance; and (8) participate in the construction of the Wastewater System Improvement Project (WSIP). The contract includes a net increase of$964,505 from 2008 to 2009, due to the full annual operation of the West Side WWTP, biosolids landfill tipping fees, anticipated natural gas increases, and a redistribution of lift station electrical costs from the Water/Sewer Operations budget to the lift station budget. THE TABLE BELOW REPLACES THE TABLE IN THE ORIGINAL AGENDA, WHICH WAS INCORRECT Current 2008 Proposed 2009 Direct Labor & Benefits $ 2,556,326 $ 2,273,628 Labor Markup 15% $ 383,449 $ 341,044 Other Direct Costs $ 2,461,348 $ 3,377,588 Other Direct Costs Markup 10% $ 246,135 $ 337,759 Subtotal $ 5,647,258 $ 6,330,019 Fixed Fee $ 118,751 $ 136,372 Electricity $ 865,615 $ 1,257,197 Lift Station Odor Control $ 109,543 $ 38,602 Capital Item Amortization $ 56,520 - Total Estimated Annualized Budget $ 6,797,685 $ 7,762,190 Net Increase from 2008 to 2009 $ 964,505 Attachments: Water and Sewer Contracts between Johnson and the Springdale W/S Utility W&S committee agenda Correction and Supplement 2 BNovOg 11/03/2008 10:00 FAX 4795217292 JOHNSON CITY HALL Z 014/022 INTER-MUNICIPAL CONTRACT FOR WATER SERVICE BETWEEN THE THE CITIES OF JOHNSON AND SPRINGDALE, ARKANSAS THIS CONTRACT made and entered into this day of 4 / L�Z , 2006, by and between the City of Springdale, Arkansas, a municipal corporation, acting through its Water and Sewer Commission, hereinafter called SUPPLIER, and the City of Johnson, Arkansas, a municipal corporation, hereinafter called USER, WITNESSETH: WHEREAS, the SUPPLIER now owns and operates a public water system located within the corporate limits of the City of Johnson, Arkansas; and, WHEREAS, the USER and SUPPLIER have entered into previous agreements whereby the SUPPLIER agreed to furnish water service to customers in the City of Johnson on an individual basis; and, WHEREAS, it is to their mutual advantage that the USER and SUPPLIER enter into an agreement to establish provisions for the ownership, operation, and maintenance of a public water system sufficient to meet public health standards and to provide water for fire protection needs in certain areas of the City of Johnson: and, WHEREAS, it is to the parties' mutual benefit that a procedure be established for future expansion and improvements to SUPPLIER'S water distribution system in the City of Johnson; NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS HEREINAFTER SET FORTH, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE SUPPLIER AND THE USER HERETO MUTUALLY AGREE AS FOLLOWS; (1) COOPERATION: The SUPPLIER and USER shall cooperate and communicate j in all the dealings through the Springdale Water Commission and the Johnson City Council. Any disagreements, questions, requests, additions to the water system, modifications of the system, connections or otherwise shall be handled through the Johnson City Council, or its authorized representative, dealing directly with the Springdale I Page 1 of 8 I i 11/03/2008 10: 00 FAX 4795217292 JOHNSON CITY HALL IA 015/022 Water and Sewer Commission, or its authorized representative. The Representative of the Johnson City Council shall have only such authority as is expressly granted by majority vote of the Johnson City Council. (2) OWNERSHIP: It is agreed by the parties that the SUPPLIER shall continue to own, operate, maintain, and from time to time expand its water distribution system located within the prescribed service boundary established in the corporate limits of the City of Johnson,Arkansas_ (3) CONSISTENT APPLICATION: The rules, procedures, regulations and laws concerning the construction, operation, and maintenance of said water distribution system shall be applied to Johnson, Arkansas and Springdale, Arkansas in the same and consistent manner_ The SUPPLIER shall act in good faith and shall not unreasonably withhold service, if economically feasible, to any potential customer located within the service boundary set forth herein. (4) SERVICE BOUNDARY! Water service shall be limited to customers located within the corporate limits of the City of Johnson as delineated on the attached service boundary map. A copy of said map is attached hereto as Exhibit "A" and made a part hereof as though included herein. It is recognized and agreed by the parties that certain areas within the City of Johnson are being provided water service by the City of Fayetteville, Arkansas. This agreement does not amend or modify areas currently being served by the City of Fayetteville. The parties agree that if in the future by written agreement the City of Fayetteville and SUPPLIER change the boundary line between them, this agreement shall be considered amended as of the execution of Fayetteville/Springdale agreement to incorporate that new boundary line without any further action by the parties hereto. (5) AUTHORITY TO FRANCHISE: The USER agrees it will on or before the effective date of this agreement cause to be adopted by vote of its City Council an ordinance granting to the SUPPLIER a franchise, without charge or franchise tax, to own, maintain, and operate a water distribution system within the USER'S corporate limits, and within the territory assigned to SUPPLIER per the memorandum of understanding between the cities of Fayetteville and Springdale, as amended by the parties from time to time. USER further agrees that it will cause to be passed by vote of its City Council an ordinance granting to the SUPPLIER, without charge or costs, easements and right-of-ways to lay, relay, install, maintain and operate water transmission lines over, under, and across public streets, alleys, and passageways. Page 2 of 8 11/03/2008 10: 00 FAX 4795217292 JOHNSON CITY HALL a016/022 (6) TERM OF CONTRACT: The SUPPLIER and USER hereby agree that the term of this contract shall be for a period of ten (10) years from the date of this agreement and shall automatically terminate at such time. (7) EFFECTIVE DATE: This contract shall become effective and enforceable on the date of this agreement and shall have the effect of terminating all prior contractual agreements on this subject between these parties. (8) CONTRACT RENEWAL: Either party shall have the option to renew this contract upon terms and conditions as may be negotiated by the SUPPLIER and USER by giving not less than six (6) months of notice in advance of the termination date of this contract. (9) WATER RATES: The SUPPLIER shall supply potable water through its lines and shall charge water customers located within USER'S city limits according to the schedule of rates for customers located outside the corporate city limits of Springdale, Arkansas as established in the latest Springdale Ordinance prescribing water rates. It is specifically understood and agreed by and between the parties hereto that, should the SUPPLIER experience a general rate increase within the corporate limits of the City of Springdale, the rates as provided above shall automatically increase in direct proportion to the percentage increase within the City of Springdale. SUPPLIER shall provide notice to USER of any rate increase. As soon as legally possible, the Johnson City Council shall pass an Ordinance to mirror any increase or decrease of water rates contained in any ordinance adopted by Springdale City Council. The failure by the Johnson City Council to pass such an ordinance shall be a breach of this agreement for which SUPPLIER may seek all remedies available at law or equity, including, without limitation, the right to seek mandamus, mandatory injunction, specific performance, damages, or termination of this agreement. (10) BILLING AND PAYMENTS: The SUPPLIER shall read meters and shall issue billing and collection of payments in accordance with ordinances of the City of Springdale and the rules and regulations of the Springdale Water and Sewer Commission which may be in effect now or hereafter adopted, and if any customer fails or refuses to pay said billing, the SUPPLIER shall disconnect water service to such customer in accordance with said ordinances, rules and regulations, (11) LIABILITY: It is stipulated that the furnishing of water service by the SUPPLIER is a governmental function and that the SUPPLIER does not agree to furnish any specific amount of water service. Water service shall be provided only to customers who enter I Page 3 of B I 11/03/2008 10:00 FAX 4795217292 JOHNSON CITY HALL 16017/022 into separate service contracts with the SUPPLIER, but the right to contract, and the type of service to be rendered, shall always be subject to such rules, regulations, and policies of the Springdale Water and Sewer Commission as may be in effect from time to time. The SUPPLIER shall not be responsible for ads of God, acts of war, insurrections or rebellions, ads of a public enemy, ads of any unauthorized person, firm or corporation, or ads of the USER. Nothing contained herein shall abrogate the tort immunity available by law to either city. (12) WATER SERVICE CONNECTIONS: The SUPPLIER and USER agree that the charges and requirements for water service connections shall be the same as for like service made in the City of Springdale at the time the water service connections or taps are made. Neither the SUPPLIER nor the USER shall unreasonably withhold service to any potential customer located within the defined service boundary established herein. Taps or connections to any and all water lines shall be made only by the SUPPLIER. Approval of such taps or connections by the USER shall constitute the SUPPLIER'S authorization to make street cuts and openings where necessary. SUPPLIER agrees to reconstruct and repair street cuts and openings with materials equal to or better than the material and street condition prior to such street cut. (13) PLUMBING: Each customer shall install all plumbing in accordance with the ordinances, rules and regulations of the City of Springdale in effect at the time such plumbing is installed. All plumbing shall be inspected by a plumbing inspector licensed by the State of Arkansas. (14) WATER LINE EXTENSIONS: Water line extensions shall be made on the same basis which they are made for the City of Springdale, based on the economic feasibility of such extension, and shall be made at the sole discretion of the SUPPLIER provided that in no event shall an extension be made without the approval of the Johnson City Council. The SUPPLIER and the USER specifically agree that no extensions shall be made or fire hydrants installed within a residential subdivision or private housing development except at the expense of the developer or owner. (15) EASEMENTS: The USER hereby grants to the SUPPLIER the right to place water lines on dedicated public streets, alleys, utility easements and other passageways. The SUPPLIER shall not lay a water line or lines across private property unless the USER and/or the owners of such private property shall furnish to the SUPPLIER an executed easement by the owners of such property giving and granting to the SUPPLIER the right to lay such water lines across such private property, and such easements shall be on forms as prescribed by the SUPPLIER. The form of such easements, together with the Page 4 of 8 11/03/2008 10 :00 FAX 4795217292 JOHNSON CITY HALL 018/022 provisions contained therein, shall be the same used by the Springdale Water and Sewer Commission at the time such easements are granted and such easements and fee titles where necessary shall show the Springdale Water and Sewer Commission as the Grantee thereon. In order to facilitate required improvements, the USER agrees to cooperate with SUPPLIER and assist in obtaining authority to cross private property with water lines. USER agrees to allow its name to be added to any eminent domain actions pursued by SUPPLIER regarding property within the corporate limits of USER if SUPPLIER'S legal counsel deems it necessary. The USER further agrees it will not unreasonably impair, hinder or delay the obtaining of such easements, or the construction of said required improvements, but will offer full support in all ways necessary to accomplish such improvements. All costs and expenses, including legal fees expended in the procuring of such easements or fee title shall be bome by SUPPLIER. (16) MAINTENANCE OF FACILITIES: The SUPPLIER shall maintain and service all facilities. The SUPPLIER shall use reasonable diligence to provide and maintain uninterrupted service; but in case of cessation, deficiency, variation in pressure or any other failure of the service, resulting from Acts of God, public enemies, accidents, strikes, riots, wars, repairs, orders of a Court of competent jurisdiction, or other acts reasonably beyond the control of the SUPPLIER, the SUPPLIER shall not be held responsible for any damages, either directly or indirectly, resulting from such interruption or failure. If scheduled interruptions in service to the USER are necessary due to system repair, extension or rehabilitation, USER shall be noted of such outage prior to start of work. SUPPLIER shall notify its customers in the city of Johnson on the same basis it notifies its customers within the City of Springdale concerning interruptions. Notification shall be given by either one or all of the following media: Press, radio, letter, telephone or personal contact. Emergency repairs, resulting in temporary interruption of service to water customers, can be made without notification to expedite necessary repairs and restoration of service. (17) ORDINANCES AND REGULATIONS: The USER agrees to adopt such resolutions, ordinances, rules and regulations as will allow the SUPPLIER to maintain and operate the distribution system in accordance with the rules, regulations, or specifications of the Arkansas Department of Health and Human Services, the U.S_ Environmental Protection Agency, and the SUPPLIER. Non-compliance with said rules, regulations or specifications may result in discontinuance of service. The USER further agrees to adopt the necessary ordinances to provide the SUPPLIER with legal authority for enforcement of all state and federal law, including regulations. The rules, procedures, regulations and laws concerning the construction, operation, maintenance and service of said system shall be applied to Johnson, Arkansas and Springdale, Arkansas in the same and consistent manner. Page 5 of 8 i 11/03/2008 10:01 FAX 4795217292 JOHNSON CITY HALL Z 019/022 (18) COMPLIANCE: The USER and all water customers shall comply with, at all times, the ordinances, rules and regulations of the City of Springdale and of the Springdale Water and Sewer Commission governing water operations and usage which may now exist or may hereinafter be promulgated. Failure or refusal of any customer to comply with such ordinances, rules or regulations will subject the customer to immediate discontinuance of water service, and the SUPPLIER or USER shall in no way be liable for any damages or expenses which may or may not result from such discontinuance. (19) TAXES PROHIBITED: The USER will not during the period of this contractor 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 SUPPLIER, the water system or the operations called for by this contract. Nothing contained herein shall preclude the collection of any gross receipts tax (i,e. state, County or local sales tax) enacted in accordance with state law and not otherwise made exempt by state law. (20) NOTICES: Any written notices provided for herein shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, to the respective parties. (21) WATER CONSERVATION: The USER covenants and agrees that it will adopt an ordinance identical to that adopted by the City of Springdale, thereby setting in place mandatory conservation measures that may become necessary due to an emergency resulting from limited supply of raw water, water treatment interruptions, failure of transportation system, pumping equipment, plant equipment, electrical facilities, or from any other source beyond the control of SUPPLIER. (22) FIRE HYDRANTS: The SUPPLIER agrees to maintain as part of its distribution system, fire hydrants connected to the distribution lines for fire protection. SUPPLIER agrees to furnish to USER un-metered water service at each such hydrant for fire Protection. The USER agrees that it shall be obligated and will pay the SUPPLIER ten ($10) dollars per annum per hydrant to defray the cost of un-metered water used for fire protection. (23) DISCONTINUANCE OF WATER SERVICE: The SUPPLIER reserves the right to discontinue the supply of water to individual customers without notice for any of the following reasons: (a) Fraudulent representation as to the condition of plumbing system as it relates to the protection and safety of the SUPPLIER'S water supply; Page 6 of B I I I 11/03/2009 10:01 FAX 4795217292 JOHNSON CITY HALL 16020/022 (b) For improperly connected appliances and fixtures resulting in hazardous or defective conditions; (c) For emergencies where damage to property, equipment or life is possible or likely to occur; (d) By order of the Arkansas Department of Health and Human Services; (e) If rules and regulations of the Arkansas Department of Health and Human Services, the SUPPLIER, or the U.S. Environmental Protection Agency relating to the safety and protection of the public water supply are being abused or violated; and/or, (f) If ordinances of the City of Johnson relating to the safety and protections of public water system are being abused or violated, and the SUPPLIER is officially notified. (24) COMPLETE AGREEMENT: It is agreed that neither party hereto is relying upon any oral or written information made by the other prior to the signing of this contract unless expressly provided herein, and that this contract constitutes the entire agreement between the parties and same shall not be hereafter amended or modified unless reduced to writing and signed by the parties hereto. It is further agreed that all earlier contracts for water service are hereby rescinded. (25) SEVERABILITY: If any phrase, clause, sentence or paragraph of this contract shall be declared invalid by the judgment or decree of a court of competent jurisdiction, such invalidity shall not affect any of the remaining sentences or paragraphs of this contract IN WITNESS WHEREOF, the SUPPLIER and the USER have executed these presents by their respective authorized representatives, having been authorized to do so by appropriate resolutions of their respective governing bodies. SPRINGDALE WATER AND CITY OF SPRINGDALE, ARKANSAS $JtWER COMMISSION ris G.Weiser, Chairman Jerre M. Van Hoose, Mayor ATTES : ATTEST: aul E. Lawren , Secretary Denise Pearce, City Clerk i I Page 7 of B I I 11/03/2009 10:01 FAX 4795217292 JOHNSON CITY HALL Z 021/022 CITY OF JOHNSON, ARKANSAS Richard Long, ayo r.. ATTEST: J en, Rerfrreasurer I Page 8 of 8 I 11/03/2008 10: 09 FAX 4795217292 JOHNSON CITY HALL 1� 004/011 INTER-MUNICIPAL CONTRACT FOR SANITARY SEWER SERVICE BETWEEN THE CITIES OF JOHNSON AND SPRINGDALE, ARKANSAS THIS CONTRACT made and entered into this day of -t—, 2006, by and between the City of Springdale, Arkansas, a municipal corporation, acting through its Water and Sewer Commission, hereinafter called SUPPLIER, and the City of Johnson, Arkansas, a municipal corporation, hereinafter called USER, WITNESSETH: WHEREAS, the SUPPLIER now owns and operates a public sewerage system consisting of gravity lines, sewage lift stations, and force mains located within the corporate limits of the City of Johnson, Arkansas; and, WHEREAS, the SUPPLIER owns and operates a wastewater treatment facility with sufficient capacity to treat current and foreseeable sewage flows generated in its corporate city limits as well as future sewage flows from the City of Johnson, Arkansas; and, WHEREAS, the USER and SUPPLIER have entered into previous agreements whereby the SUPPLIER furnished sanitary sewer service to customers located in the City of Johnson on an individual basis; and, WHEREAS, it is to their mutual advantage that the USER and SUPPLIER enter into an agreement for the SUPPLIER to own, operate, and maintain a public sewerage system within certain areas of the City of Johnson, thereby protecting public health and maintaining the quality of life desired by the USER; WHEREAS, it is to the parties' mutual benefit that a procedure be established for future expansion and improvements to the SUPPLIER'S sanitary sewer system in the City of Johnson; NOW, THEREFORE, IN CONSIDERATION OF THE MUTUAL COVENANTS AND CONDITIONS HEREINAFTER SET FORTH, AND FOR OTHER GOOD AND VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY ACKNOWLEDGED, THE SUPPLIER AND THE USER HERETO MUTUALLY AGREE AS FOLLOWS: (1) COOPERATION: The SUPPLIER and USER shall cooperate and communicate in all dealings through the Springdale Water and Sewer Commission and the Johnson Page 1 of 7 11/03/2008 10:09 FAX 4795217282 JOHNSON CITY HALL Z005/011 City Council. Any disagreements, questions, requests, additions to the sewer system, modifications of the sewer system, connections or otherwise shall be handled through the Johnson City Council, or its authorized representative, dealing directly with the Springdale Water and Sewer Commission, or its authorized representative. The Representative of the Johnson City Council shall have only such authority as is expressly granted by majority vote of the Johnson City Council. (2) OWNERSHIP: It is agreed by the parties that the SUPPLIER shall continue to own, operate, maintain, and from time to time expand its sanitary sewer system located within the service boundary established in the corporate limits of the City of Johnson, Arkansas. (3) CONSISTENT APPLICATION: The rules, procedures, regulations and laws concerning the construction, operation and maintenance of said sanitary sewer system shall be applied to Johnson, Arkansas and Springdale, Arkansas in the same and consistent manner. The SUPPLIER shall act in good faith and shall not unreasonably withhold service, if economically feasible, to any potential customer located within the service boundary set forth hereinafter. (4) SERVICE BOUNDARY: Sanitary sewer service shall be limited to customers located within the corporate limits of the City of Johnson as delineated on the attached service boundary map attached hereto as Exhibit "A" and made a part hereof as though included herein. It is recognized and agreed by the parties hereto that certain areas within the City of Johnson are currently being provided sanitary sewer service by the City of Fayetteville, Arkansas. This contract does not amend or modify areas currently being served by the City of Fayetteville. The parties agree that if in the future by written agreement the City of Fayetteville and SUPPLIER change the boundary line between them, this agreement shall be considered amended as of the execution of Fayetteville/Springdale agreement to incorporate that new boundary line without any further action by the parties hereto. (5) AUTHORITY TO FRANCHISE: The USER agrees that it will, on or before the effective date of this agreement, cause to be adopted by vote of City Council, an Ordinance granting to the SUPPLIER a franchise, without charge or franchise tax, to own, maintain and operate a sanitary sewer collection, storage and pumping system within the USER'S corporate limits, and within the territory assigned to SUPPLIER per the memorandum of understanding between the cities of Fayetteville and Springdale, as amended by the parties from time to time. USER further agrees that it will cause to be passed by vote of its City Council, an Ordinance granting to the SUPPLIER, without Page 2 of 7 11/03/2008 10:09 FAX 4795217292 JOHNSON CITY HALL a 006/011 charge or cost, easements and rights-of-way to lay, relay, install, maintain, and operate sanitary sewer lines and appurtenances, over, under, and across public streets, alleys, and passageways. (6) TERM OF CONTRACT: The SUPPLIER and USER hereby agree that the term of this contract shall be for a period of ten (10) years from the date of this agreement and shall automatically terminate at such time. (7) EFFECTIVE DATE: This contract shall become effective and enforceable on the date of this agreement and shall have the effect of terminating all prior contractual agreements on this subject between the parties. (8) CONTRACT RENEWAL: Either party shall have the option to renew this contract upon terms and conditions as may be negotiated by the SUPPLIER and USER by giving not less than six (6) months notice in advance of the termination date of this contract. (9) SEWER RATES: The SUPPLIER shall supply sanitary sewer service through its collection system and shall charge sewer customer located within USER'S city limits according to the schedule of rates for customers located outside the corporate city limits of Springdale, Arkansas as established in the latest Springdale Ordinance prescribing sewer rates. It is specifically understood and agreed by and between the parties hereto, that, should the SUPPLIER experience a general rate increase within the corporate limits of the City of Springdale, the rates established above shall automatically increase in direct portion to the percentage increase within the City of Springdale. SUPPLIER shall provide notice to USER of any rate increase. As soon as legally possible, the Johnson City Council shall pass an Ordinance to mirror any increase or decrease of sewer rates contained in any ordinance adopted by Springdale City Council. The failure by the Johnson City Council to pass such an ordinance shall be a breach of this agreement for which SUPPLIER may seek all remedies available at law or equity, including, without limitation, the right to seek mandamus, mandatory injunction, speck performance, damages, or termination of this agreement. (10) BILLING AND PAYMENTS: The SUPPLIER shall issue billing and collection of all bills in accordance with ordinances of the City of Springdale and the rules and regulations of the Springdale Water and Sewer Commission which may be currently in effect or hereafter adopted, and if any customer fails or refuses to pay said billing, the SUPPLIER shall discontinue sewer service to such customer in accordance with said ordinances, rules and regulations. Page 3 of 7 11/03/2009 10:09 FAX 4795217292 JOHNSON CITY HALL IA 007/011 (11) LIABILITY: It is stipulated that the furnishing of sanitary sewer service is a governmental function and that the SUPPLIER does not agree to furnish any specific amount of sewer service. Sewer service shall be provided only to customers who enter into separate service contracts with the SUPPLIER, but the right to contract, and the type of service to be rendered, shall always be subject to such rules, regulations, and policies of the Springdale Water and Sewer Commission as may be in effect from time to time. The SUPPLIER'S liability for damages from sewer stoppages and/or overflows shall be limited to the same as if such stoppage or overflow occurred within the City of Springdale. SUPPLIER shall not be responsible for acts of God, acts of war, insurrections or rebellions, acts of a public enemy, acts of any unauthorized person, firms or corporation, or acts of the USER. Nothing contained herein shall abrogate the tort immunity available by law to either city. (12) SEWER SERVICE CONNECTIONS: All water customers of the SUPPLIER located within the defined service boundary shall be required by the USER to connect to the sewer system in accordance with the rules and regulations as set out by the City of Johnson, the City of Springdale, and the Arkansas State Board of Health and Human Services. The Charges and requirements for sewer service connections shall be the same as for like service in the City of Springdale at the time the sewer service connections are made. Taps or connections to any and all sewer lines shall be made only by the SUPPLIER and only for sewer patrons obtaining their water service from the SUPPLIER. Approval of such taps or connections by the USER shall constitute the SUPPLIER'S authorization to make street cuts and openings where necessary. SUPPLIER agrees to repair street cuts required in street crossings, street taps and/or repairs with materials equal to or better than the materials and street condition prior to such street cut. (13) PLUMBING: Each customer shall install all plumbing in accordance with the ordinance, rules, and regulations of the City of Springdale in effect at the time such plumbing is installed. All plumbing shall be inspected by a plumbing inspector licensed by the State of Arkansas. (14) SEWER UNE EXTENSIONS: Sewer extensions shall be made on the same basis which they are made for the City of Springdale, based on economic feasibility of such extensions, and shall be made at the sole discretion of the SUPPLIER, provided that in no event shall any extension or connection be made without the approval of USER. The SUPPLIER and the USER specifically agree that no extensions shall be made or installed within a residential subdivision or private housing development except at the Page 4 of 7 11/03/2008 10:09 FAX 4795217292 JOHNSON CITU HALL U008/011 expense of the developer or owner. (15) EASEMENTS: The USER hereby grants to the SUPPLIER the right to own, operate and place additional sewer facilities on dedicated public streets, alleys, utility easements and other passageways. In order to facilitate required improvements, the USER agrees to cooperate with SUPPLIER and assist in obtaining authority to cross private property with sewer lines. The form of such easements, together with the provisions contained therein, shall be the same used by the Springdale Water and Sewer Commission at the time such easements are granted and such easements and fee titles where necessary shall show the Springdale Water and Sewer Commission as the Grantee thereon. USER agrees to allow its name to be added to any eminent domain actions pursued by SUPPLIER regarding property within the Corporate limits of USER if SUPPLIER'S legal counsel deems it necessary. The USER further agrees it will not unreasonably impair, hinder or delay the obtaining of such easements, or the construction of said required improvements, but will offer full support in all ways necessary to accomplish such improvements. All costs and expenses including legal fees in the procuring of such easements or fee title shall be borne by SUPPLIER. (16) MAINTENANCE OF FACILITIES: The SUPPLIER shall maintain and service all facilities including the sewage lift stations and the proposed improvements, and for those which may be constructed into the system in the future.The SUPPLIER shall use reasonable diligence to provide and maintain uninterrupted service; but in case of cessation, deficiency, variation in pressure or any other failure of the service, resulting from Acts of God, public enemies, accidents, strikes, riots, wars, repairs, orders of a Court of competent jurisdiction, or other acts reasonably beyond the control of the SUPPLIER, the SUPPLIER shall not be held responsible for any damages, either directly or indirectly, resulting from such interruption or failure. If scheduled interruptions in service to the USER are necessary due to system repair, extension or rehabilitation, USER shall be noted of such outage prior to start of work. SUPPLIER shall notify its customers in the city of Johnson on the same basis it notifies its customers within the City of Springdale concerning interruptions. Notification shall be given by either one or all of the following media: Press, radio, letter, telephone or personal contact. Emergency repairs, resulting in temporary interruption of service to customers, can be made without notification to expedite necessary repairs and restoration of service. (17) ORDINANCES AND REGULATIONS: The USER agrees to adopt such resolutions, ordinances, rules and regulations as will allow the SUPPLIER to construct, maintain and operate the sewage system in accordance with the rules, regulations, and specifications of the Arkansas Department of Health and Human Services, the U.S. Environmental Protection Agency, the Arkansas Department of Environmental Quality, Page 5 of 7 11/03/2008 10:09 FAX 4795217292 JOHNSON CITY HALL 1a009/011 and the SUPPLIER. Non-compliance with the said rules, regulations, or specifications may result in the discontinuance of service. The USER also agrees to adopt the necessary ordinances to provide the SUPPLIER with the necessary authority to implement any enforcement action of state and federal law, including regulations. (18) COMPLIANCE: The USER and all sewer customers shall comply with, at all times, the health ordinances, rules and regulations of the City of Springdale, the Springdale Water and Sewer Commission, the U.S. Environmental Protection Agency, the Arkansas Department of Health and Human Services, and the Arkansas Department of Environmental Quality governing sewer operations and usage which may now exist or may hereinafter be promulgated. Failure or refusal of any customer to comply with such ordinances, rules or regulations will subject the customer to immediate discontinuance of water and sewer service and the SUPPLIER shall in no way be liable for any damages or expenses which may result from such discontinuance. (18) TAXES PROHIBITED: The USER 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 SUPPLIER, the sewer system or the operations called for by this contract Nothing contained herein shall preclude the collection of any gross receipts tax (i.e. state, county or local sales tax) enacted in accordance with state law and not otherwise made exempt by state few. (20) NOTICES: Any written notices provided for herein shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, to the respective parties. (21) COMPLETE AGREEMENT: It is agreed that neither party hereto is relying upon any oral or written information made by the other prior to the signing of this contract unless expressly provided herein, and that this contract constitutes the entire agreement between the parties and same shall not be hereafter amended or modified unless reduced to writing and signed by the parties hereto. It is further agreed that all earlier contracts for sanitary sewer service are hereby rescinded, (22) SEVERABILITY: If any phrase, clause, sentence or paragraph of this contract shall be declared invalid by the judgment or decree of a court of competent jurisdiction, such invalidity shall not affect any of the remaining sentences, paragraphs or clauses of this contract. IN WITNESS WHEREOF, the SUPPLIER and the USER have executed these Page 6 of 7 11/03/2008 09:59 FAX 4795217292 JOHNSON CITY HALL 10008/022 presents by their respective authorized representatives, having been authorized to do So by appropriate resolutions of their respective governing bodies. SPRINGDALE WATER AND CITY OF SPRINGDALE, ARKANSAS S ER COMMISSION Chris G. Weiser, Chairman erre M. Van Hoose, Mayor ATTES ATTEST: 0/ JA-P, PiW7U, Paul E. Lawren , Secreta Denise Pearce, City Clerk CITY OF JOHNSON, ARKANSAS Richard Long, Mayor ATTEST: 4jder'A'1le* er/Treasurer Page 7 of 7