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HomeMy WebLinkAbout19-90 RESOLUTION• • • RESOLUTION NO. 19-90 A RESOLUTION AUTHORIZING THE MAYOR AND CLERK TO EXECUTE A CONTRACT WITH WHEELER WATER ASSOCIATION FOR SUPPLYING WATER TO THE WHEELER COMMUNITY. BE IT RESOLVED BY THE BOARD OF DTRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute a contract with the Wheeler Water Association for supplying water to the Wheeler community. A copy of the contract autncrized for execution hereby is attached hereto marked Exhibit "A' and made a part hereof. PASSED AND APPROVED this 6th day of February ATTEST: By , 1990. • • • INTERLOCAL AGREEMENT BETWEEN WASHINGTON COUNTY, CITY OF FAYETTEVILLE, AND WHEELER WATER ASSOCIATION, INC THIS AGREEMENT made and entered into this 6th day of February 1990, by and between WASHINGTON COUNTY, ARKANSAS, hereinafter referred to as "County"; THE CITY OF FAYETTEVILLE, ARKANSAS, hereinafter referred to as "City"' and WHEELER WATER ASSOCIATION, INC , hereinafter referred to as "Wheeler" WHEREAS, County has applied for a grant to be administered by the Northwest Arkansas Economic Commission for construction of a water system in an area of Washington County known as "Wheeler"; and, WHEREAS, the citizens of the "Wheeler" community have formed a corporation which has also applied to the Farmers Home Administration for a loan to extend the water service to other residents not in the imminent health threat area; and, WHEREAS, said water system shall be connected with the water system owned and operated by City; NOW, THEREFORE, IT IS AGREED: 1. Obligation of County. County shall take all reasonable steps to insure that the above -referred -to grant is awarded. 2. Obligation of Wheeler. Wheeler shall take all necessary and reasonable steps to complete application to the Farmers Home Administration for the loan as stated above. 1 • • • 3. Obligation of City. City does hereby agree to operate and manage said water system, its duties to include, but not be limited to: a. Billing and collecting of accounts. b. Maintenance of system. c. Provide bookkeeping and accounting services to Wheeler in making note payments to Farmers Home Administration. 4. Duty to Establish Rates. Wheeler shall provide all information necessary to City so that the City may effectively manage said water system. 5. Management Fee of City. City shall charge a fee as follows for its management of the water system: See attached exhibit. 6. Term. This contract shall 'oe deemed to be effective as of , 1990. and shall terminate upon the payment of the aforementioned FmHA loan by Wheeler. Upon such termination ownership of the system passes to the City under the terms and conditions more fully set forth in paragraph 14 below. 7. Water Quality; Fill station. Water to be furnished hereunder is to be supplied to Wheeler from waters purchased from the Beaver Water District. The water supply shall be filtered and drawn from City's reservoir, shall meet the minimum EPA and Arkansas State Health Department standards, be in such quantity allowed by the capacity of the system, and shall average the same standard of purity as furnished to the residents of City. The City agrees to allow Wheeler to install and maintain one fill station within the system area to assist Wheeler in fire 2 • • • • • • protection. City will make no charge for water used to combat bonafide fires in the system area, provided the persons using water are representatives of a rural fire association or the City of Fayetteville Fire Department. This provision in no way obligates the City of Fayetteville Fire Department to answer calls or combat fires in the area concerned herein. Wheeler recognizes and agrees that the water system is primarily for domestic purposes. The City at its own discretion may limit at any time and for whatever period the use of water for nondomestic purposes, including but not limited to, irrigation, commercial watering, and/or chicken house purposes. 8. Repairs. City shall have a reasonable time to repair any accidents, leaks, or breaks to any part of the system. Such repair shall be made with due diligence and dispatch and without unnecessary delay. 9. Laws of State of Arkansas. This contract is made and accepted by the City subject to the provisions of the laws of the State of Arkansas. 10. Prohibition of Assignment. No sale, transfer, or assignment of this contract or any right hereunder shall be made by either party without the prior written consent of the other party. 11. Annexation. Wheeler on its own behalf and on behalf of its individual members shall agree to apply for annexation with the City of Fayetteville if and when such annexation becomes possible. In the event the area to be served by this water system • • • • is ever annexed into the City, then the City will continue to operate and manage said system. Upon annexation, the City agrees that the water charges will become approximately the same as the rates charged other annexed areas plus the amounts necessary for the debt service payments on the aforementioned Farmers Home Administration loan. Should Wheeler become an incorporated city, the City and Wheeler agree to execute a water purchase contract. 12. Ownership of System. In consideration for City's agreement herein to assume control of said water system and to furnish Wheeler water through said system, Wheeler hereby agrees with execution of this contract to place full and complete control of the water distribution system in City. It is understood and agreed that a portion of this project is being funded by the Arkansas Industrial Development Commission through a grant. The remaining portion is being funded by a loan with the Farmers Home Administration and upon retirement of said loan. the system shall be vested in City. Wheeler agrees to cooperate with City in executing all documents necessary for the transfer of ownership to City. 13.. Water Shortage. The City, at its sole discretion, reserves the right, in the event of an acute shortage of water, to limit, ration, or temporarily discontinue water sales and service to Wheeler. Any reduction, limitation, rationing or temporary discontinuance of water sales and service for this time shall not render the City liable for damages of any kind. It is understood between the parties hereto that City's primary obligation is to 4 • • • provide water and water service to the citizens of the City of Fayetteville, Arkansas. It is mutually agreed that Wheeler's residential consumers essential usage will not be restricted unless, or until, it has previously become necessary to eliminate non-essential usage in the entire Fayetteville Water System. (Non-essential usage shall mean water used for lawn sprinkling, car washing, swimming pools, air conditioning systems, which are not needed for health purposes, industrial processes, or food preservation, and other uses as defined by the City of Fayetteville as non-essential.) 14. Obligation to Purchase Water; Plumbing Codes. Wheeler agrees to purchase from City for the period specified herein all water needed by Wheeler and the consumers within its territorial limits and agrees to pay to City therefor the rates and charges hereinafter provided. However, all plumbing connected to the system must meet City of Fayetteville plumbing codes. 15. Rates. The rates for water consumed, meter service, and water service connections (tapping fees and meter deposit charges) shall be plus any that the note a charge by payments. 16. Charges and Requirements for Water Service Connection. Water service connections (water taps) shall be made only by the as set by the City Board of Directors from time to time, additional charges that may be required by Wheeler so to FmHA may be retired according to its terms, plus the City for collecting and handling the loan 5 • • • • water department of the City of Fayetteville or its authorized agents. 17. Maintenance. City shall maintain and service all water mains, laterals, valves in the system and those that may be constructed in the future. 18. Billing, Collecting, and Payment. City shall read all meters, issue billing, collect all bills and initiate service to customers in accordance with the ordinances of the City of Fayetteville and the rules and regulations of the water department of said City, now or hereafter adopted, and if any consumer fails or refuses to pay said billing, City shall discontinue water service to such consumer in accordance with said ordinances, rules and regulations. City agrees to cooperate and provide bookkeeping and accounting services to Wheeler in making Wheeler's note payments to FmHA. 19. Construction of New Water Mains. Construction of any new water mains, valves, laterals, etc., shall be without cost to City. Plans and specifications for construction of any such new facilities must be approved by the City Engineer and the State Health Department, prior to the execution of any contract for such construction. Wheeler shall not extend any water mains beyond the present territorial limits of Wheeler Water Association, as the same are defined herein, without the prior written consent of City. City shall have the sole discretion in determining whether or not to 6 • • • • • • • • • • consent to such extensions and in determining the terms and conditions upon which its consent will be given. 20. Compliance with Rules and Regulations. Wheeler and all water consumers shall comply at all times with the ordinances, rules and regulations of the City of Fayetteville and the City of Fayetteville Water Department, governing water operations and usage, which may be or hereafter be promulgated. Failure or refusal of any consumer to comply with such ordinances, rules, and regulations will subject the consumer to immediate discontinuance of water service, and City shall in no way be liable for any damages or expenses which may result from such discontinuance. Each water consumer shall install all plumbing in accordance with the ordinances, rules and regulations of the City of Fayetteville in effect at the time such plumbing is installed. All plumbing shall be inspected by the City of Fayetteville Plumbing Inspector or his authorized agent. Fees and charges for such inspections must be paid by the consumer or prospective consumer, and the amount of such fees and charges shall be as prescribed by the City of Fayetteville, from time to time for outside city inspections. Wheeler will make provision for authorized agents of the City to enter any and all properties for inspection where the possibility of violations of said plumbing ordinances rules and regulations may exist. 21. Taxes Prohibited. Wheeler 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 7 • • • • • whatsoever by whatever name it may be called, upon City, the water system or the operations called for by this contract. 22. Termination of Contract. This agreement may be terminated by either Wheeler or 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. 23. Notices. The written notices provided for herein shall be sufficient if sent by certified mail, return receipt requested, postage prepaid to the respective mayors of the parties hereto. 24. Liability. City shall not be responsible for any damages resulting from water main breaks, acts of God, acts of war, insurrection or rebellion, acts of a public enemy, acts of any unauthorized person, firms, corporations, or acts of Wheeler, its agent or employees, or during periods of water reduction or discontinuance by reason of firefighting or other emergency situation. 25. Ordinances and Regulations to Facilitate Performance Contract. Wheeler agrees to enact and adopt any motions, resolutions, or rules and regulations which may be necessary to carry out the terms of this contract. 26. Financing. In the event all of the financing referred to herein is not obtained, then this agreement shall be null and void. 8 • ▪ • • • • • • • • IN WITNESS WHEREOF, City, County, and Wheeler have executed this contract on the date first above written. APPROVED AS TO ORM: Cit 'Att2rney WASHINGTON COUNTY, ARKANSA By: CITY OF FAYETTEVILLE, ARKANSAS By: aar? tar WHEELER WATER ASSOCIATION, INC. 9 President