HomeMy WebLinkAbout137-91 RESOLUTIONRESOLUTION NO. 137-91
A RESOLUTION APPROVING A WATER PURCHASE
CONTRACT WITH THE WASHINGTON COUNTY RURAL
DEVELOPMENT AUTHORITY (WWA).
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to execute a contract with Washington
County Rural Development Authority for water purchase. A copy of
the -contract authorized for execution hereby is attached hereto
marked'Exhibit "A" and made a part hereof.
PASSEDAND APPROVED this 16th day of July , 1991.
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v;ATTEST:
fafr
%BY.',.
'.-;.City Clerk:`\;
reit44-; C'� -troy., kl•Co�
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APPROVED:
Mayor
MODIFICATION OF CONTRACT
This MODIFICATION OF CONTRACT executed this
(7
3 / day of
, 1991, by and between the City of Fayetteville,
Arkansas hereinafter referred to as the "City" and the Washington
County Rural Development Authority, hereinafter referred to as the
"Buyer".
WHEREAS, the City and the Buyer have executed a contract dated
April 29, 1975, a copy of which is attached hereto and made a part
hereof; and
WHEREAS, the City and the Buyer desire to modify said
contract.
NOW, THEREFORE, the City and the Buyer hereby agree that the
aforesaid contract shall be modified as follows:
1. Section A, Paragraph 1 is hereby amended to read as
follows:
A. The City agrees:
1. To furnish the Buyer at the points of delivery
hereinafter specified, during the term of this contract or
any renewal or extension thereof, potable treated water
meeting applicable purity standards of the Arkansas .State
Department of Health in such quantity as may be required by
the Purchaser not to exceed a total of 400 million gallons
per year.
2. Section B, Paragraph 1 is hereby amended to read as
follows:
1
B. The Buyer agrees:
1. To pay the Seller, not later than the given due-date•on
the monthly bill (20 days after the billing date of the bill),
for water delivered in accordance with the schedule of rates
established and approved by•the Fayetteville Board of Director
beginning on August 1, 1990, and ending on January 1, 1994.
It is further understood and agreed that if any maximum
allowable rate of usage set out in Section A-1 is exceeded,
an excess demand charge of 10% may be added to the bill for
each month during which the maximum allowable rate was
exceeded. If any maximum allowable rate of usage is exceeded
on three separate occasions, the City may install automatic,
variable rate -of -flow controllers at the City's cost.
This excess demand charge shall'not apply if the excess
usage was beyond the control of the Buyer. However, all
customer usage is considered as being within the control of
the Buyer, as is system loss which is not promptly corrected
by the Buyer.
3. Section C, Paragraph 1 is hereby amended to read as
follows:
C. It is further mutually agreed between the Buyer and the
City as follows:
1. That this contract shall extend for a term of 23
years from the date of the initial delivery of any water as
shown by the first bill submitted by the City to the. Buyer
(expiration date of April 29, 1998) .and, thereafter may be
•
renewed for four (4) consecutive terms of ten (10) years each,
or extended for such term, or terms, as may be agreed upon by
the City and Buyer. Buyer shall notify the City of their
intent to exercise such option at least one -hundred twenty
(120) days prior to expiration of the present contract.
The City reserves the right to review the water rates at
the end of each three year period, and make an adjustment
(increase or decrease) in said rates if indicated, based upon
a demonstrable .increase or decrease in cost of performance
hereunder. However, from,4 0� e/ =T , 1991, to April 29,
1995, there will be no additional water rate increases passed
to the Buyer above the aforementioned established rates.
However, any rate increase imposed upon the City by Beaver
Water District shall be immediately passed on to the Buyer.
It is further understood and agreed that'before another
water rate study is started, not including the water rate
study completed for the rates established and approved by the
Fayetteville Board of Directors on November 20, 1990, the City
will research other accounting methodologies for valuing the
plant investment and assigning allocations to each class of
customer.
4. Section C, Paragraph 12 is hereby amended to read as
follows:
12. The Buyer shall not supply water to any customer within
the City's planning jurisdiction; nor shall the Buyer supply
water to or within any incorporated municipality without the
r
prior written approval of the City.
CITY OF FAYETTEVILLE, ARKANSAS
By: (17, /V.( !/�C✓�
Asst. yor
ATTEST
By1C-CerCp
'�q/j
Title: %%���CS - %/i%LC/
WASHINGTON COUNTY
RURAL DEVELOPMENT AUTHORITY
or
LC.12i1A1 7D^
L.13-7
MODIFICATION OF CONTRACT
4
4(90,i -ii Picks u
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This MODIFICATION OF CONTRACT executed this 3 / day of
, 1991, by and between the City of Fayetteville,
•
Arkansas hereinafter referred to as the "City" and the Washington
County Rural Development Authority, hereinafter referred to as the
"Buyer".
WHEREAS, the City and the Buyer have executed a contract dated
April 29, 1975, a copy of which is attached hereto and made a part
hereof; and
WHEREAS, the City and the Buyer desire to modify said
contract. •
NOW, THEREFORE, the City and the Buyer hereby agree that the
aforesaid contract shall be modified as follows:
1. Section A, Paragraph 1 is hereby amended to read as
follows:
A. The City agrees:
1. To furnish the Buyer at the points of delivery
hereinafter specified, during the term of this contract or
any renewal or extension thereof, potable treated water
meeting applicable purity standards of the Arkansas State
Department of Health in such quantity as may be required by
the Purchaser not to exceed a total- of 400 million gallons
per year.
2. Section 8, Paragraph 1 is hereby amended to read as
follows:
1
B. The Buyer agrees:
1. To pay the Seller, not later than the given due date on
the monthly bill (20 days after the billing date of the bill),
for water delivered in accordance with the schedule of rates
established and approved by the Fayetteville Board of Director
beginning on August 1, 1990, and ending on January 1, 1994.
It is further understood and agreed that if any maximum
allowable rate of usage set out in Section A-1 is exceeded,
an excess demand charge of 10% maybe added to the bill for
each month during which the maximum allowable rate was
exceeded. If any maximum allowable rate of usage is exceeded
on three separate occasions, the City may install automatic,
variable rate -of -flow controllers at the City's cost.
•
This excess demand charge shall not apply if the excess
usage was beyond the control of the Buyer. However, all
customer usage is considered as being within the control of
the Buyer, as is system loss which is not promptly corrected
by the Buyer.
3. Section C, Paragraph 1 is hereby amended to read as
follows:
C. It is further mutually agreed between the Buyer and the
City as follows:
1. That this contract shall extend for a term of 23
years from the date of the initial delivery of any water as
shown by the first bill submitted by the City to the Buyer
(expiration date of April 29, 1998) and, thereafter may be
2
renewed for four (4) consecutive terms of ten (10) years each,
or extended for such term,or terms, as may be agreed upon by
the City and Buyer. Buyer shall notify the City of their
intent to exercise such option at least one -hundred twenty
(120) days prior to expiration of the present contract.
The City reserves the right to review the water rates at
•
the end of each three year period, and make an adjustment
. (increase or decrease) in said rates if indicated, based upon.
a demonstrable increase or decrease in cost of performance
hereunder. However, from ,J9c, -Q/ tC , 1991, to April 29,
1995, there will be no additional water rate increases passed
•
to the Buyer above the aforementioned established rates.
However, any rate increase imposed upon the City by Beaver
Water District shall be immediately passed on to the Buyer.
It is further understood and agreed that before another
water rate study is started, not including the water rate
study completed for the rates established and approved by the
Fayetteville Board of Directors on November 20, 1990, the City
will research other accounting methodologies for valuing the
plant investment and assigning allocations to each class of
customer.
4. Section C, Paragraph 12 is hereby amended to read. as
follows:
12. The Buyer shall not supply water to any customer within
the City's planning jurisdiction; nor shall the Buyer supply
water to or within any incorporated municipality without the
•
prior written approval of the City.
CITY OF FAYETTEVILLE, ARKANSAS
By:
7141;%/At"-"----
Asst.yor
ATTEST
By KW dad
Title: /. ti -CS l/f) 02/11
WASHINGTON COUNTY
RURAL DEVELOPMENT AUTHORITY
RESOLUTION NO. 137-91
A RESOLUTION APPROVING A WATER PURCHASE
CONTRACT WITH THE WASHINGTON COUNTY RURAL
DEVELOPMENT AUTHORITY (WWA).
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF
FAYETPEVILLE, ARKANSAS:
Section 1. That the Mayor and City Clerk are hereby
authorized and directed to execute a contract with Washington
County Rural Development Authority for water purchase. A copy of
the contract authorized for execution hereby is attached hereto
marked Exhibit "A" and made a part hereof.
PASSED AND APPROVED this 16th day of July , 1991.
APPROVED:
B
ATTEST:
By: / lrA �I ley7A40 _
City 4erk
Mayor
USDA -FHA
Foes HA 442-30
(3-.t. ca) WATER PURCHASE CONTRACT
R24 1B7-9/
q is
Tbis contract far the sale and purchase of water is entered into as of the �/ day of
City of Fayetteville, Arkansas
19 7-4— between the
P.O. Box F, Fayetteville, Arkansas 72701
(Address)
hereinafter referred to as the "Seiler' and the Washington County Rural Development .Authority,
P. 0. Box 221, Springdale, Arkansas 72764
(Address)
hereinafter referred to as the "Purchaser',
WITNESSETH:
'Whereas, the Purchaser is organized and established under the provisions crArkansas Statutes
a
20-1424, and.proposes to construct and operate
C:id rf ,-6. t;.-'p7sevi"c-rstrLCnrgartdtperatinga water supply distribution
20-1401 through
of -Se
sy?tem s—ring water users within the area described in plans now on file in the office of the Purchaser and to accomplish
this purpose, the Purchaser will require a supply of treated water, and
Waeres, the Seller owns and operates a water supply distribution system with a capacity currently capable of serving the
present customers of the Sellers system and the estimated number of water users to be served by the said Purchaser as shown
in the plans of the system now on file in the office of the Purchaser, and
Resolution`
of
Frne:eas, by
August
with the provisions of the said
csnving out the
and attested by
Whereas, by
No. 68-73 enacted on the Seventh
day
, 19 73 by the Seller, the sale of water to the Purchaser in accordance
Resolution
said Resolution by Cie
the See:e ,. yas duly authorized, and
Cit1 t.! 3'r
solution No. ^-
0-5 of the
of the Pur;maser, enacted en the
29th
day of
was approved, and.the execution of this contract
Mayor
Board of Commissioners
April
the purchase of water from the Seller in accordance with the terms set forth in the said
Resolution
•
, 19.75 I
No. 75 -5
was approved, and the execution of this contract by the Chairman , and
attested by the Secretary was duly authorized;
NOW, therefore, in consideration of the foregoing and the mutual agreements hereinafter set forth,
A. The Seller Agrees:
1. (Quality and Quantity) To furnish the Purchaser at the point of -delivery hereinafter specified, during the term of
this contract or my renewal or estensioa thereof, potable treated water meeting applicable purity standards of the
Arkansas State Department of Health
in such g_anti:y a> may be required by the Purchaser not to exceed gallons per month.
See Secticn A-1, attachment. to this contract.
s•
FHA 442.30 (34.68)
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2. (Point of Delivery and Pressure) That water will
et the locations given under Section A-2 on
a -iron--an- ex:s`t:rs
be furnished at a reasonably constant pressure calculated
attachment to this contract.
Melt-eeio-.supply a ra_poiat�eeat
If a greater pressure than that normally available at the point of delivery is required by the Purchaser, the cost of providing
such greater pressure shall be borne by the Purchaser. Emergency failures of pressure or supply due to main supply line
breaks, power failure, flood, fire and use of water to fight fire, earthquake or other catastrophe shall excuse the Seller from
this provision for such reasonable period of time as may be necessary to restore service.
3. (Metering. Equipment). To furnish, install, operate, and maintain at its own expense at point of delivery, the
necessary metering equipment, including a meter house or pit, and required devices of standard type for properly measuring
the quantity of water delivered to the Purchaser and to calibrate such metering equipment whenever requested by the Purchaser
but not more frequently than once every twelve (12) months. A meter registering not more than two percent (2%) above or
below the test result shall be deemed to be accurate. The previous readings of any meter disclosed by test to be inaccurate
shall be corrected for the three (3) months previous to such test in accordance with the percentage of
inaccucaty found by such tests. If any meter fails to register for any period, the amount of water furnished during such period
shall be deemed to be the amount of water delivered in the corresponding period immediately prior to the failure, unless Seller
monthly on the Seller's
and Purchaser shall agree upon a different amount. The metering equipment shall be read an established schedule._
An appropriate official of the Purchaser at all reasonable times shall have access to the meter for the purpose of verifying
its readings.
4. (Billing Procedure) To furnish the Purchaser at the above address not later than the day of
each month, with an itemized statement of the amount of water furnished the Purchaser during the preceding month.
2. The Purchaser Agrees:
• 15th
1. (Rates and Payment Date) To pay the Seller, not later than the day of each month, for water
d.tu,ered in accordance with the following schedule of rates:
a $
minimum rate per month.
1
b. S
for the first gallons, which amount shall also be the
cents per 1000 gallons for water in excess of
less than gallons.
a
gallons but
cents per 1000 gallons for water in excess of gallons.
d.•$0.645 per 1,000 gallons for all water used; provided, however, that if
any maximum allowable rate of usage set out in Section A-1 is exceeded, an
.excess demand charge of 10% may be added to the bill for each month during
which the maximum allowable rate was exceeded. if any maximum allowable
rate of usage is exceeded on three separate occasions in any two ;months,
the Seller may install automatic, variable rate -of -flow controllers and charge
the cost of same to the Purchaser.
This excess demand charge shall not apply if the excess usage was beyond
the control of the Purchaser. However, all customer usage is considered
as being within the control of the Purchaser, as is system loss which is
not promptly corrected by the Purchaser.
2. (Connection Fee) To pay as an agreed cost, a connection fee to connect the Seller's system with the system
of the Purchaser, the sum of
of the metering equipment and
s14, 560 • Co
dollars which shall cover any and all costs of the Seller for inntalla;ion
reduced pressure backflow preventors.
C. It is farther mutually agreed between the Seller and the Purchaser as follows:
1. (Term of Contract) That this contract shall extend for a term of PO years from the date of the initial
deliver,+ of any water as shown by the first bill submitted by the Seller to the Purchaser and, thereafter may be renewed or
extended For such term, or terms, as may be agreed upon by the Seller and Purchaser. See Section C-1 on
attachment for continuation.
2. (Delivery of Water) That 30 days prior to the estimated date of completion of construction of the
Purchaser's water supply distribution system, the Purchaser will notify the Seller in writing the date for the initial delivery
cf water.
3. (Water for Testing) When reeuested by the Purchaser the Seller will 'make available to the contractor at the
paint al delivery, or other point reasonably close thereto, water sufficient for testing, flushing, and trench filling the system
of the Purchaser during construction, irrespective of whether the metering equipment has been installed at that time, at a
flat charge of Sper rate schedul.hich wilt be paid by the contractor or, on his failure to pay, by the Purchaser.
4. (Failure to Deliver) That the Seller will, at all times, operate and maintain its system in an efficient manner
and viii take such action as may be necessary to furnish the Purchaser with quantities of water :equired by the Purchaser.
Temporary or partial .failures to deliver water shall be ,remedied with all possible dispatch. In the event of an extended
shortage of water, or the supply of water available to the Seller is otherwise diminished over art extended period of time,
the supply of water to Purchase?s consumed shall be reduced or diminished in the same ratio or proportion as the supply to
Seller's consumers is reduced or diminished.
5•
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6. (Regulatory Agencies) That this contract is subject to such rules, regulations, or laws as may be applicable
to o.rilar agreements in this State and the Seller and.Purchaser will collaborate in obtaining such permits, certificates, or the
like, as say be required to comply therewith.
7. ('disce!1aneo s) That the construction of the water supply distribution system by the Purchaser is being financed
by a luan made or insured by, and/or a grant from, the United States of America, acting through the Farmers Home Acfministra-
Hon 01 the United States Decarttent of Agriculture, and the provisions hereof pertaining to the undertakings of the Purchaser
a,e conditioned upon the approval, in writing, of the State Director of the Farmers Horne Administration.
2. (Successor to the Purchaser) That in the event of any occurence-rendering the Purchaser incapable ofper-
fo.rin g tinder this co:t:act, any successor of the Purchaser, whether the result of legal process, assignment, or otherwise,
shall succeed to the rights of the Purchaser hereunder.
9. The Purchaser shall not supply water to any proposed subdivision, business,
industry, mobile home park, or to any other new customer withih the City's planning
jurisdiction u. -,til the intended land use thereof has been reviewed and approved by
the Fayetteville Planning Commission. However, approval by said Fayetteville Plan-
ing Co.nission shall be based upon the- usual and customary criteria and shall not be
arbitrarily withheld. Beyond the City's planning jurisdiction, intended land use
will be reviewed and approved by the Washington County Planning Board before the
Purcl-==ar supplies water as set out abova
10. The Purchaser shall not supply crater to any customer within the City's
planning jurisdiction which does. not abide by the wastewater disposal regulations of
e trkansas State Department of Health and the Arkansas Department of Pollution
Control and Scology; nor shall the Purchaser supply water to or within any incor-
porate; a_ri ipality without. the written -approval of the Seller.
11.
The Purchaser shall not supply water to any customer on new construction
not complied with, cr who does not comply with Arkansas State Department
Pgalst4^rs and ark :0=u 'Broin, Codes.
Items 12 1 ,:
d 15 are on the Attachme;,t to this form.
•
In wi aess whereof, the parties hereto, acting under authority of their respective governing bodies, have caused this contract
to be duly executed in 5 counterparts, each of which shall constitute an original.
Att_st
y t:LC .'1-&
&eceetery. .
City Clerk
Secretarj
1
N
This contract is approved on behalf of the Farmers Home Administration this day of
Seller:
City of Fayetteville, Arkansas
By//
or •
Title Mayor
Purchaser:
i
Washington Co. Rural Develotxent Authority
Title Chairman
19
By
Title
GAO BIO—:o,
ATTACHMENT TO WATER PURCHASE CONTRACT
BETWF'•F'N THE CITY OF FAYETTEVILLE AND THE
WASHINGTON COUNTY, ARKANSAS RURAL DEVELOPMI T AUTHORITY
Section A-1. (Continued from page 1.) The Seller agrees to sell water in such
quantities as may be required by the Purchaser, but not to exceed 60 million
gallons per year, 415 thousand gallons per -day, or 515 gallons per minute.
motel usage exceeding 60 million gallons 'per year, peak day usage exceeding
415 thousand.gallons, or peak hour rate of'515 gallons per minute 'shall be cause
for renegotiation of this contract.
It shall not be the Seller's responsibility to maintain a chlorine residual
within the Seller's distribution system. The Seller does not presently fluori-
date its water supply. Any decision to fluoridate the water supplies under this
contract shall be at the sole discretion of the Seller.
Section A-2. (Continued from page 2..)
A. On U. S. Highway No. 62, near the SE corner of the NW14, Section 27,
Township 16 North, Range 31 West.
B. On Arkansas State Highway 16, approximately 3,000 feet west of the
east line of Section 10, Township 16 North, Range 31 West.
C. On Arkansas State Highway 265 near township line between Township 15
North and Township 16 North.
Section C-1. (Continued from page 3.) The Seller reserves the right to review
the water rate at the end of each three year period, and make an adjustment
(increase or decrease) in said rate if indicated, based upon a demonstrable
increase or decrease in cost of performance hereunder.. However, any rate in-
crease or decrease imposed upon the Seller by Beaver Water District shall be
imm-diately passed on to the Purchaser. The rate shall be adjusted in the
sane amount as the increase or decrease from Beaver Water District.
t&e C-12
The area referred to in paragraph 2 of page 1 of this contract which the
RD.;. proposes to serve with water purchased from the Seller,.is bounded
generally on the north by Clear Creek, on the vest by the Illinois River, on
the south by a line dividing Township 14 North into approximately two equal
^ arts, and on the east by U. 5. Highway 71 and/or the Fayetteville growth area.
Further, based upon the cuantity of water to be furnished to the RDA as
set out in Section A-1 of the. contract, and upon the engineering design of
▪ ?.DA system, it may not.be.feasible to extend service outside of the area
outlined above. Consequently, the RDA system will tot be extended outside of
the defined area until any required improvements to existing systems have been
completed and the proposed extension has been mutually agreed to.
This provision does not prohibit the RDA from serving areas outside the
defined area utilizing other sources of water supply.
Item C-13
A11 facilities constructed by the Purchaser which are connected to the
Seller's water system shall be constructed in accordance with-*he'.ties and
regulations of the State Department of Health, and that the Purchaser will
operate its water system in accordance with the rules and regulations of the
Arkansas State Department 'of Health
Item C-14
•
The Purchaser covenants and agrees that it will not interconnect its
facilities to any other source of water which is not approved by the Arkansas
State Department of Health, or permit its customers to interconnect a private
well, or wells with the distribution system while connected to and using water
from the Seller's system. The Purchaser will not interconnect any of its facili-
ties which are connected to the Seller's system to any other water source without
the approval of the Seller.
•
Iter C-15
The Seller and Purchaser agree to each other's proposed service area and
covenant that they will not provide water service into the other's service
area, unless the Pu;chaser.and Seller mutually agree.
4
•
RESOLUTION NO. ;10-73
BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY
FAYETTEVILLE, ARKANSAS:
That the Mayor and City Clerk be and they hereby are
:;thorized and directed to execute a proposed contract with
)A (Rural Development Authority) contingent upon the final
2proval of the growth area projects by the Board of Directors.
Be it further resolved that the district to be served
:uld not include areas to the East of U.S. Highway 71 as
resently located or an area North of the West Fork Improvement
istrict, West of Highway 71 and East of the West Fork of White
iver between the West Fork of White River and Highway 71.
.973
PASSED AND APPROVED this ,T.h day of
PASSED:
MAYORr PAC?*
MAYOR
APPROVED:
SiCbRitrint