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HomeMy WebLinkAbout121-86 RESOLUTIONs J Rffiowriw ND.1 1-R,; - V .t A RESOLUTION AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY FOR THE PURCHASE OF ELECTRICITY AT THE CITY'S WASTEWATER TREATMENT PLANTe Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute an agreement with the Northwest Arkansas Resource Recovery Authority for the purchase of electricity at the City's wastewater treatment plant. A copy of the agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this day of December NN %%-ATTEST 1 `?t By: Clerk C/. APPR By Mayor 1986. • T 7 s J Rffiowriw ND.1 1-R,; - V .t A RESOLUTION AUTHORIZING AND DIRECTING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT WITH THE NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY FOR THE PURCHASE OF ELECTRICITY AT THE CITY'S WASTEWATER TREATMENT PLANTe Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute an agreement with the Northwest Arkansas Resource Recovery Authority for the purchase of electricity at the City's wastewater treatment plant. A copy of the agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. PASSED AND APPROVED this day of December NN %%-ATTEST 1 `?t By: Clerk C/. APPR By Mayor 1986. .AGREEMENT This AGREEMENT executed this day of 1986, between the Northwest Arkansas Resource Recovery Authority (the "Authority",) and the City of Fayetteville, Arkansas (the "City"). WHEREAS, the City of Fayetteville is a member of the Northwest Arkansas Resource Recovery Authority! and WHEREAS, the Authority proposeE to provide for the design, con- struction, operation and maintenance of an environmentally satisfactory, efficient and economical high capacity Solid Waste Disposal and Resource Recovery Facility (the "Facility"); and WHEREAS, the Facility will generate electricity, a small portion of which will be used to operate the Facility, and the balance of which will be sold to the City's new wastewater treatment plant (the "WWTP") and to Arkansas Electric Cooperative Corporation; and, WHEREAS, the Facility and the City's new wastewater treatment plant are located in the service area of Ozarks Electric Cooperative Corporation ("Ozarks"); and WHEREAS, Ozarks Electric Cooperative Corporation will "wheel" electricity from the Facility to the City's wastewater treatment plant pursuant to an agreement with the Authority. NOW, THEREFORE, the City and the Authority hereby agree as follows: 1. The City agrees to purchase from the Authority each month during the term of this agreement all electricity needed by the City's wastewater treatment plant which the Authority can provide. The Authority agrees to provide electricity to the WWTP on a "best efforts" basis; the failure of the Authority to provide electricity to the WWTP in the amounts requested shall not result in any liability on the part of the Authority to the City, 2. The purchase price payable by the City during the term of this agreement shall be computed at the rate which the City would have paid Ozarks for electricity under the rate schedule for Ozarks approved by the Arkansas Public Service Commission on the date of usage. The Authority shall bill the City monthly and the City shall pay the Authority within fifteen (15) days from the date each bill is received. -2- 3. The Authority agrees to use payments from the City hereunder to operate and maintain the Facility and to meet debt service requirements on bonds issued by the Authority to finance construction of the Facility. 4. The term of this agreement shall coni Ince on Qhe commencement t, 1 date and shall continue for a period of 25 years; provided, this agreement shall automatically terminate if ownership of the Facility is transferred from the Authority to another party. The term "commencement date" shall mean the date on which the operator of the Facility commences commercial operation following the start-up process and notifies the Authority in writing that it is prepared to receive Acceptable Waste at the Facility on a regular basis, and the Authority notifies the City in writing that the Facility is prepared to receive Acceptable Waste from the City, IN WITNESS WHEREOF, the Authority and the City have executed this agreement on the date first above written. CITY OF FAY EITEVILLE, ARKANSAS / By:qeoed�� GvGcUC/ Mayor ATTEST By: Clerk NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY By: 440;r,/e z ATTEST BY /1 ��G/,� Secretary