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HomeMy WebLinkAbout121-80 RESOLUTIONRESOLUTION NO. yal-�d A RESOLUTION APPROVING A CHANGE IN PARAGRAPH 6 OF AN APPROVED WATER PURCHASE CONTRACT WITH MOUNT OLIVE WATER ASSOCIATION. BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That Paragraph 6 of the City's approved water purchase contract with Mt. Olive Water.Association shall read as set out in Exhibit "A" attached hereto and made a part hereof. PASSED AND APPROVED this /Sz�7iiday of 10Q�h , 198Q. APPROVED: 0 MICROFIW D �v WATER PURCHASE CONTRACT 7 �/, S ws ez/7 This contract for the sale and purchase h�of water, made and entered into this /t day of /ty 198, by and between the City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as the "City", and the Mount Olive Water Association, hereinafter referred to as the "Buyer). WITNESSETH: WHEREAS, the City owns and operates a water supply distribution system with a capacity currently capable of serving the present customers of the City system and the estimated number of water users to be served by the said Buyer, and, WHEREAS, the Buyer desires to purchase water from the City for distribution within the present service area of Buyer, and the City desires to furnish and sell water to the Buyer for distribution as aforesaid. NOW, THEREFORE, in consideration of the foregoing and the mutual agreements hereinafter set forth, A. The City agrees: 1. To furnish the Buyer, at the point of delivery hereinafter specified, for distribution within its present service area, during the term of this contract or any renewal or extension. thereof, potable treated water meeting applicable purity standards of the State Board of Health, and in such quanity as may be required by the Buyer, not to exceed 300 gallons per minute. The City shall not be obligated to provide water to the Buyer .at a rate greater than 300 gallons per minute. In the event the Buyer requires water at a rate greater than thus specified, the City shall have the sole discretion in determining whether to furnish water at a greater rate and in determining the terms and conditions upon which its agreement to do so will be given, including, but not limited to, conditions for reinforcement of the 8" and E" mains. (2) hereinafter referred to at the Buyer's expense in order to increase its capacity, if the reinforement has not been accomplished by the City prior to the time it is required by the Buyer. Provided, the rates charged for any water, which City may agree to supply in excess of 300 gallons per minute, shall be the same as that charged to other customers receiving in excess of 300 gallons of water per minute. Any such agreement shall be in writing and duly authorized by the governing bodies of the respective parties hereto. It is further understood and agreed that the City's respon- sibility for the water ends at the meter box outlet or vault. 2. The water will be furnished at a reasonably constant pressure (due consideration being given to friction loss) from a six (6) inch water main at a point located at the site described in Exhibit "A" attached hereto and made a part hereof. 3. City agrees to extend an eight (8) and six (6) inch water main to point of delivery and to furnish, install, operate, and maintain at point of delivery the necessary metering equipment, including a meter hourse or pit, check valves, and required devices of standard type for properly measuring the quantity of water delivered to the Buyer, including a meter or proper size, for a lump sum water connection fee in an amount equivalent to the total cost (including the cost of engineering and right-of-way acquisition) of constructing six (6) inch water main from an existing eight (8) inch line on Black Oak Road to the point of delivery to the Mount Olive, Water Association. This cost would include the meter vault and1piping. The cost of maintenance and operation of the metering facility shall be borne by the.City. The responsibility for testing and calibrating the meter rests solely with the City. A meter registering not more than two percent (28) above or below 100% accuracy shall be deemed to be accurate. The previous (3) Reading of any meter disclosed by test to be inaccurate shall be corrected for the two (2) months previous to such test in accordance with the percentage of inaccuracy found by such tests. If any meter fails to register for any period, the amount of water furnished during such period shall be determined by average readings over a period of two previous months or a like month of a previous year, at the City's option. The metering equipment shall be read on a regular schedule each month. The size of the meter shall be in keeping with anticipated water usage and/or demand. Initially, a four inch meter will be installed. The Buyer will provide a valve at the inlet side of the meter to shut off the supply and also to limit the flow of water to the rate permitted. A by-pass to the meter shall be installed for use during periods of meter maintenance. The cost for the by-pass valves, fittings, and pipe shall be borne by the Buyer. 4, The City's responsibility for maintenance shall end at the outlet side of the meter box or vault. 5. City agrees ;to furnish the Manager of the Buyer with an itemized statement of the amount of water furnished and other charges to the Buyer in accordance with the City billing policies. B. The Buyer Agrees: 1. To purchase water as required by the Buyer and the consumers within the presently defined service area of the Buyer, up to a maximum of 300 gallons per minute. Buyer shall purchase water from the City and not from some other source. 2. To pay the City not later than the due date given on the bill for water delivered in the preceding reading period, in accordance with the rate as established by the City from time to time that may hereinafter be established by the City from time to time. The rates for water and meter service charges charges presently in effect are illustrated by the attached schedule, marked Exhibit "B", but it is understood and agreed that the City is in no way bound to said schedule, and that the City in its sole discretion has the right to increase or decrease the rates and charges shown therefore, at any time, for the Buyer as for other outside the City users. 3. The Buyer agrees to pay to the City a water connection fee in an amount equivalent to the total cost (including the cost of engineering and right-of-way acquisition) of constructing a six inch (6) water main from the City's existing eight inch (8) water main on Black Oak Road to the point of delivery to the Mount Olive Water Association as an agreed cost to connect the City's system with the Buyer';s system. Said fee shall be paid as construction takes place, from invoices submitted by the City of Fayetteville. 4. The Mount Olive Water Association will pay as a part of this contract the cost of acquisition by the City of Fayetteville of a right-of-way twenty feet (20') wide from the City's existing 8 inch water main on Black Oak Road to the point of delivery to enable the City of Fayetteville to install, operate and maintain the water line on the Fayetteville side of the metering point. The cost of such right-of-way shall include, if necessary, all costs of condemnation, court costs, attorney's fees and any other expense directly related to the acquisition of said right-of-way. 5. The Buyer agrees to install, within a reasonable distance of the metering point, a backflow preventor approved by the State Health Department, 6. The Buyer agrees to restrict water connections to those customers having adequate on-site sewage disposal systems. For purposes of this contract, all on-site disposal systems previously approved by the Arkansas State Health Department shall be deemed adequate. New on-site systems shall (4) charges presently in effect are illustrated by the attached schedule, marked Exhibit "B", but it is understood and agreed that the City is in no way bound to said schedule, and that the City in its sole discretion has the right to increase or decrease the rates and charges shown therefore, at any time, for the Buyer as for other outside the City users. 3. The Buyer agrees to pay to the City a water connection fee in an amount equivalent to the total cost (including the cost of engineering and right-of-way acquisition) of constructing a six inch (6) water main from the City's existing eight inch (8) water main on Black Oak Road to the point of delivery to the Mount Olive Water Association as an agreed cost to connect the City's system with the Buyer';s system. Said fee shall be paid as construction takes place, from invoices submitted by the City of Fayetteville. 4. The Mount Olive Water Association will pay as a part of this contract the cost of acquisition by the City of Fayetteville of a right-of-way twenty feet (20') wide from the City's existing 8 inch water main on Black Oak Road to the point of delivery to enable the City of Fayetteville to install, operate and maintain the water line on the Fayetteville side of the metering point. The cost of such right-of-way shall include, if necessary, all costs of condemnation, court costs, attorney's fees and any other expense directly related to the acquisition of said right-of-way. 5. The Buyer agrees to install, within a reasonable distance of the metering point, a backflow preventor approved by the State Health Department, 6. The Buyer agrees to restrict water connections to those customers having adequate on-site sewage disposal systems. For purposes of this contract, all on-site disposal systems previously approved by the Arkansas State Health Department shall be deemed adequate. New on-site systems shall (5) be deemed adequate if the system is approved by the Arkansas State Health Department. New on-site disposal systems on lots contained within a subdivision of five or more lots shall be considered adequate for one single family residence if: (1) The State Health Department approves the system, and, (2) If the lots in the subdivision average 1.5 acres in size. New on-site disposal systems on platted lots or lots platted after the effective date of this contract shall be considered adequate for multi -family housing if: (1) The State Health Department approves the system, and, (2) The lot meets the following minimum size requirements: 1.5 acres for the first living unit plus .75 acres for each additional living unit. The Board of Directors of the City may grant a variance from.the minimum lot size requirements for multi -family dwellings upon a showing that the public health, safety and welfare will. be protected. The term "platted lot:" shall mean a lot within a subdivision, the plat of which is on file in the County Courthouse. Water use for any use other than agricultural or residential shall require the approval of the Board of Directors of the City. Buyer shall be responsible for enforcement of the minimum lot size requirements prescribed by this paragraph and shall keep proper records evidencing such enforcement. The City shall have the right to inspect such records at any reasonable time. 0 C. It is further mutually agreed between the City and the Buyer as follows: (6) 1. That this contract shall extend for a term of 20 years from the date of the initial delivery of any water by the City to the Buyer. Thereafter this contract may be renewed for such term, or terms, as may be agreed upon by the City and Buyer. 2. That 30 days prior to the estimated date of completion of construction of the Buyer's water supply line, the Buyer will notify the City in writing the date for the initial delivery of water. 3. When requested by the Buyer, the City will make available to the contractor at the point of delivery, or other point reasonably close thereto, water sufficient for testing, flushing, and trench filling the supply line of the Buyer during construction, irrespective of whether the metering equipment has been installed at that time, at a flat charge of $ 400.00, which will be paid in advance by the contractor, or on his failure to pay, by the Buyer. 4. That the City will, at all times, operate and maintain its system -in an efficient manner and will take such action as may be necessary to furnish the quanitities of water required by the Buyer, up to the maximum amount of -300 gallons per minute as provided in Paragraph A. 1. hereof. Temporary or partial failures to deliver water caused by the failures or difficulties in the City's system shall be remedied with all possible dispatch. Provided, however, the City reserves the right, in the event of acute shortage of water, to limit or discontinue water sales and service to the Buyer. Any reduction or discontinuance of water sales and service for this reason shall not render the City liable for damages of any kind, it being understood between the parties that the City's primary obligation is to furnish water and water services to the citizens of the City of Fayetteville, Arkansas. (7) • The City shall not be responsible for any damages to the Buyer or its consumers by reason of emergency failures of water supply due to water main breaks, power failure, flood, fire,, earthquake and other.acts of God, or catastrophe, acts of war, insurrection or rebellion, acts of a public enemy, acts of any unauthorized person, firm, or corporation, or acts of the Buyer, or during any periods of water reduction or discontinuance by reason of fire fighting or otheremergencysituation; nor shall such failures of water supply and/or discontinuance or reduction of water sales and service be construed as a breach of this contract by the City. 5. That this contract is subject to such rules, regulations, or laws as may be applicable to similar agreements in the State of Arkansas and the City and Buyer will collaborate in obtaining such permits, certificates, or the like, as may be required to comply therewith. It is expressly understood and agreed that the sale of water herein provided for, from the City to the Buyer, is a sale for resale, and the Buyer agrees to secure a sales tax permit as required by the Arkansas Stats. Ann. Section 84-1904 (i) 84-1913, (and any subsequent amendments thereto) and agrees that it will collect and pay over to the Commissioner of Revenues of the State of Arkansas, any and all sales tax now or hereafter imposed upon the resale of said water to the Buyer's consumers. 6. That the construction of the water supply distribution system by the Buyer is being financed by a loan from the United States of America, acting through the Farmers Home Administration of the United States Department of Agriculture, and the provisions hereof pertaining to the undertakings of the Buyer are conditioned upon the approval, in writing, of the State Director of Arkasnas, and the Farmers Home Administration. 7. That in the event of any occurance rendering the Buyer incapable of performing under this contract, any successor of the Buyer whether the result of legal process, assignment, or r 8 WE otherwise, shall succeed to the rights of the Buyer hereunder. 8. It is understood and agreed that the water to be supplied by the City to the Buyer under this contract is to be furnished for distribution within the Mount olive Water Association service area. The Buyer shall not extend its water main outside its defined service area without the prior written consent of the City.The City shall have the sole discretion in determining ther terms and/or conditions upon which its consent shall be given. 9. In the event a portion of the Buyer's water mains are constructed within the corporate limits of the City, the Buyer is not permitted to serve consumers within the corporate limits of the City without prior written consent of the City. 10. Buyer agrees that it will.not during the period' of this contract or any renewal thereof levy any franchise tax, occupation tax, or any other tax of any form whatsoever, by whatever name it may be called, upon the City, the City water system and appurtenances thereto, or the operations called for by this contract. 11. This agreement may be terminated by either Buyer or the City upon breach by the other of any of the covenants or agreements contained herein, and the failure of the party in breach to remedy such breach within thirty (30) days after receipt of written notice of the existence of such breach. Written notice shall be sufficient, if sent by certified mail, return receipt requested, postage prepaid, to the respective mayor or chairman of the parties hereto. 12. The approval and execution of this Water Purchase Contract by the City shall be contingent upon the Buyer receiving approval of Farmers Home Administration Loan and/or grant within a one (1) year period from date of execution by the City. If loan and/or grant approval is not secured within the one (1) year period, this contract shall be null and void. _ w^w "" � IN WITNESS WHEREOF, the City and Buyer have executed these presents by their respective Mayors and President and have caused their seals to be hereto affixed and the same attested to by the City Clerk and chairman of the parties, having been authorized to do so by appropriate ordinances of their respective Governing Bodies. ATTEST: CITY CLERK ATTEST: DRB/skb.. �-10� CITY OF FAYETTEVILLE, ARKANSAS a municipal corporation wasomim, MAYOR MOUNT OLIVE WATER ASSOCIATION PRESIDENT Ie LINE 26 per. rdI TI�I�N u�e� 4111 IIID l I l; I I I LI Hr -OLIVE A5Ei VIGL' -LINE i ------------------- j 2s i EXHIBIT "B"_ $ 0.765 per 1000 gallons $ 34.00 per month meter charge 9 The Buyer agrees to restrict water connections to those customers having adequate on-site sewage disposal systems. For purposes of this contract, all on-site disposal systems previously approved by the Arkansas State Health Department shall be deemed adequate. New on-site systems shall be deemed adequate if the system is approved by the Arkansas State Health Department. New on-site disposal systems on lots contained within a subdivision of five or more lots shall be considered adequate for one single family residence if: (1) The State Health Department approves the system, and, (2) If the lots in the subdivision average 1.5 acres in size. /-J New on-site disposal systems on platted lots or lots platted after the effective date of this contract shall be considered adequate for multi -family housing if: (1) The State Health Department approves the system, and, (2) The lot meets the following minimum size requirements: 1.5 acres for the first living unit plus .75 acres for each additional living unit. The Board of Directors of the City may grant a variance from the minimum lot size requirements for multi -family dwellings upon a showing that the public health, safety and welfare will be protected. The: -term "platted lot" shall mean a lot within a subdivision, the plat of which is on file in the County Courthouse. Water use for any use other than agricultural or residential shall require the approval of the Board of Directors of the City. Buyer shall be responsible for enforcement of'the minimum �_-- ---_ lot size requirements prescribed by this paragraph and shall keep proper records evidencing such enforcement. The City shall have the right to inspect such records at any reasonable time. E)HRIT'A