HomeMy WebLinkAbout06-08 RESOLUTIONRESOLI. TION NO. 06-08
A RESOLUTION APPROVING AN AMENDMENT TO THE SEWER
CONTRACT BETWEEN TIIE CITY OF FAYETTEVILLE. AND TIIE
CITY OF ELKINS.
BE IT RESOLVED BY THE CITY COUNCIL OF TIIE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville. Arkansas. hereh�
approves an Amendment to the Sewer Contract between the City of Fayetteville and the
City of Elkins. A copy of the Amendment, marked Exhibit "A." is attached hereto and
made a part hereof.
...NI ,: r.!1#,
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APPROVED: . ' i c !
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By: UP/ By: r, t.4:....• `,,,,,,.,,,,,.,
1 A7 N COODY, Mayor SONDRA E. SMITH, Citv Clerk/Treasurer
PASSED and APPROVED this 3`d day of January. 2008.
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AMENDMENT 1 TO SEWER CONTRACT •
The Sewer Contract (hereinafter "Contract") dated December 20, 2005 between the
City of Fayetteville (hereinafter "Fayetteville") and City of Elkins (hereinafter
"Elkins") shall be amended and rnodifred by this amendment (hereinafter
"Amendment") as follows:
WHEREAS:
Under the Contract, Faye:teviie receives wastewater from Elkins and then
transports and processes the wastewater in Fayetteville's wastewater treatment
facility ar.d discharges treated wastewater effluent under Fayetteville's National
Pollution Discharge Elimination System permit; and
Fayetteville must ensure that this role does not place financial burdens on
Fayetteville's retail customers for which Fayetteville's retail customers receive
no benefit; and
Elkins must ensure that this role does not place financial burdens on Elkins'
retail customers for which Eakins' retail customers receive no benefit; and
City of Fayetteville and City of Elkins desire to amend said Contract.
NOW, THEREFORE, in consideration of the mutual covenants contained herein,
Fayetteville and Elkins do hereby agree to amend the Contract as follows:
The Contract and the terms and conditions therein shall remain unchanged
except for the sections listed below:
Section C. IMPACT FEE IMPLEMENTA 1 ION or CONTRACTUAL
SIJRCHARGE subparagraph 3 is removed in its entirety and replaced with the
following:
3. The payment for wastewater treatment shall be based on metered water
purchased discounted by the formula described in APPENDIX B. Elkins and
Fayetteville agree to use eighty-five percent (85%) as the initial percentage.
Elkins and Fayetteville armee that the volume of wastewater received by
Fayetteville at the "Paint of Connection" shall be measured by the wastewater
meter installed. The Cities agree to Kase monthly billing on the percentage
method_ Volumes of wastewater below or above the agreed upon percentage
(85%), as measured by the wastewater meter, s:rall be recorded on a monthly
basis, with a reconciliation of the net difference to occur semiannually in June
and December. If the reconciliation volume is over the agreed upon percentage,
t::is amount shall be billed to Elkins in June and December at the actual
computed cost of wastewater collection to and treatment at the Noland
Wastewater Treatment Plant, not including the calculated rate of return and not
rlMint Cnmran Addendum 1 DR0't
I2r18/2002. 12 26 PM
including depreciation charges, but including any capacity surcharge, based on
the most recent rate as determined in paragraph B. of this Contract. If the
reconciliation volume is below the agreed upon percentage, the actual amount
billed for the difference shall be refunded to Elkins in June and December. For
2007, the only reconciliation shall take place in December, 2037 and shall be
calculated based on the rate in place as of December 1, 2007. Late penalties
shall not be computed on any amount overage accumulated prior to the
reconciliation bill.
IN WITNESS WHE
day of
EOF, the parties hereto have executed this Amendment as of the
20C}?.
CIU OF EL-K.INS
ATTEST:tij
GAYL. srAkinuk J Qtrr oFF1ed MRS.
Ek m Comm AodaKlum 1 DcCC 1
CITY OF FAYE'I i EV ILLE
L
Coody, Mayor
A Lk
Sondra Smith, City Clerk
12)18/2007. 1226 PM
ORDINANCE N1 f. , � r
/t
AN ORDINANCE ADOPTING AN AMENDMENT TO 11W 2005 SEWER
('ON IRACI' WITH l TIIE CITY OF FAYF TTNVILLI: WHICH WAS
ADOP IED BY ORDINANCE 11-3-2005. PROVIDING A MEM IDD AND
PRO( EDURIj TO CALC'ITI.AI'l: AND ADJUST PAYMENTS FOR A('T1'AL
AMOUN TS OF SFWA(iE VERSUS ESTIMATED AMOUNTS OF SEWAGE
AND TOR OTHER PURPOSES. AND DECLARING AN EMERGENCY TO
EXIST
WIIFEREAS, the existing seder contract between the Cities of Elkins and Fayetteville for
treatment and discharge of Elkins' wasteva:er was approved by Elkins' Ordinance 11-3-2005.
WHEREAS, there was a provision in such consact to compare the actual metered se'\age
being transported to Fayetteville with the contract percentage method of charging for semagc
treatment.
WIIFREAS, the conditions prerequisite in the contract occurred during the %%inter of
2006/2007 and the parties %Acre required by such contract to negotiate an agreeable charge for the
excess sewage treatment and discharge.
WHEREAS. both Cities desire to amend the 2005 Sinner Contract to prm ide for
semiannual reconciliations of the actual sewage treated t ersus the percentage usage being billed.
WHEREAS. committees from both Cities have labored to produce an amendment to the
sewer contract that has distinct advantage to both Cities both now and in the future
NOW, TI IERLFORL_ BE 1 f ORDAINI:I) BY THF CITY COL NUL OF ELININS.
ARKANSAS. l hat.
Section I: That the attached Amendment 1 to Sewer Contract has been filed and has
been available to the public at the City Hall since December _ 2007. and notice of the public
.Uw, q•K.. r 1.,n_ \mP,M,,1
hearing scheduled IIT.iantrtry- 17th. 2008. a: 6 ;n p.m. Rae duly published as required by lacy
and a public hearing held this date.
Section 2: 'hat Amendment I to Sewer Contract attached hereto as Exhibit A. should
he and hereby is appro‘ ed and adopted b' this Council to amend the 2005 Sewer Contract
anprn ed by Ordinance I 1-3-2005.
Section That the May or and 13ohby Mc(iarrah as Alderman are hereby authorized
to execute the attached Amendment 1 to Sewer Contras:, and obtain for the citizens and residents
of Elkins the benefits of such Amendment.
Section 4: that the at:ached Amendment 1 to Sewer Contract when approved and
adopted by the City Council of this City and the City Council of the City of Fayetteville.
Arkansas. will immediately provide for equitable resolution of charge owed by the City of Elkins
to Fay ettoille for treatment and discharge of wastewater. which wilI enable the City of Elkins to
make any necessary changes to the sewer rates charged to Elkins citizens and residents or take
other actions required to provide financial stability to the Elkins' Water and Sewer Department.
That the Council believes this to be a significant benefit to the people of Elkins. which will
promote the health. safely. peace and welfare of Elkins' citizens and residents. therefore an
emergency is hereby declared to exist and this ordinance shall he in full force and effect
immediately upon its passage and approval.
PASSED AND APPROVED this ''k /day,- of , 1•; cef•2y . 2008.
1
130i313 ' Mc AR A H.Alderman
M ..p.IkfnH. 14.1 amend :
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JACK LADI'M1115,1`4a. o '
+rt
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David Jurgens
Submitted By
City of Felayetteville //5-0g
0R
Staff Review Form
(»/ o/A17
e
`3?Jan-08
City Council Meeting Date
Water/Wastewater
Division
Action Required:
Water/Wastewater
Department
Approval of an Amendment to the Sewer Contract Between the Cities o' Fayetteville and Elkins
Cost of this request
5400-1840-5314.69
Account Number
07022
Project Number
Categcry I Project Budget
$
$
Water and Wastewater
Program Category / Project Name
Water and Wastewater
Funds Used to Date Program / Project Category Name
Water/Sewer
Rema n•ng Ba arce rund Name
Budgeted Item 1 J Budget Adjustment Attached
Depart e Dirctor
City Attorney
Finance and Internal Service Director
'
i
tiff— t:r '2 _
Mayor
B pee0
Date
r2- zl-67
Date
Date
Previous Ordinance or Resolution #
Original Contract Date.
Or ginal Contract Number:
252-05
12120/2005
N/A
Received in City Clerk's Office
rzbaoj0?
Received in. Mayor's Office
Comments:
C4—
ti
('ITY COUNCIL AGENDA MEMO
City Council Meeting of January , 2008
Fo: I aveticville ('jty Council
Thrn: \1a\or Dan ('uodw
From: 1 a\ette\ille Se\vct Committee
I)a\ id Jur2ens. Water & Wastewater Dire( tor
Date: 1)cccnihcr 18, 2007
Subject: Approval nt an Amendment to the Sc\\ er ('antra t I3clwcen the ('ities of Fayette \ ille
and 1'lkins
1(E('OINIMENDATION
Faye:1c\ 111r ('1tv Administration recommends approwa; of an amendment to the Contract
between the Cities of layette\ We and Elkins for sewer sen ice.
BACKGROUND
I he contract between Fayetteville and Elkins states Elkins paps for \\ aste\\atcr treatment based
on a volume of 85"n of metered water purchased by Elkins. unless the wastewater meter show ed
volume discrepancies greater than 10% from that number tbr Ihrce consecutive months. It also
allow ed for the percentage to he adjusted based on actual ohsen ed readings after one year.
Since the contract was executed, the wastcw ater meter has show n wastewater volumes both
aho\c and below the 85"0 of metered w ater, depending upon the weather. In mid -2(R)7.
negotiating teams from Elkins and Fayette\ ille met to dc.tirmnn. how to account and hill fur the
dilILrenees. the objectj\ e was to establish the volume to he used fur billing, the components of
the already agreed upon rates :o he applied to these \ o: umes. and the mechanism by which to
apply these charges. The values had to be lair. while. at the same time. recognizing that both
Fayetteville and Elkins must ensure that this agreement does not place Mancnal burdens on their
City's retail customers tin which the retail customers receive no benefit. Thus. actual costs of
wastewater collection and treatment had to be co\ ered. w hile there should be no duplication of
costs for depreciation and rate of return.
DISCUSSION
this amendment meets :he above criteria. Elkins pays the fu]] rate, which includes all cost
components. for the 8500 ofmctered water (which totals 5142.871.89 fir 2007 paid in the normal
monthly billing process). and pays a reconcaiation rate. t hj\h excludes deprecrcaon and return
on investment. of S2.23 per 1.000 gallons on the net difference between that reading and the
actual waste\ ater meter reading (net due balance o' S1 K485.59). The details of the cost and
volume computations are shown in Attachment A. Late tees shall not he assessed on the
reenncihation volumes hut will he assessed on late pa\ ments for the basic monthly hills.
BUDGET IMPACT
None. The wistew ater rates for Elkins were based on ltlk:ns paying 85n of metered water
purchases. and are thus consistent with this ::meudment.
1 i tt -illi - I I im \V:.I:wa1r (\lmi i. \:urel I: 1) 1i 1 ( p5c.r�
City ('ounci1 NIeeting of January 3. 2008
Attachment A. Details of ('ost Computation, Elkins Sewer Bill
1. 'Ube rate computation is:
Component of cost
Operations & Maintenance ('ost
Depreciation
Rout
Impact Fee Capacity Charge
Basic Full Rate
-
Less: 1)cpieciation
Rctuni_
Reconcilialion Rate
2. 'Fhe volume calculation is:
Month
Jan
Feb_
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
_Nov
Dec
TOTAL
85% of Metered Water
Billed
Volume Cost
3 998,400 $42,235 10
3 055.240 $9.349 03_
3 368.635 $10.308 02
4 119,780 _ $12,605_53
_ 3 602.895 $11,024 86
4 585.835 $14,032.66
__3 500,470 $10,711 44
4 685,964..._ __$14,33905
4 77.415 $14,435 29
3 540.590_ ___.$10,834 21
3 517,385 $10,76320
3 997.550 $12,232 50
46.690,159 $142,871.89
Cost (S/1.000 gallons)
1.98
0.57
0._26
025
S 3.06
(().57)
' ((l26)
$
Sewer
Meter
Reading
Volume
8 089,698
5 946,985
5.140,827
4 226,169
4.164,074
4 534,635
3.728,237
3 5" 7.444
4 226.846
3.402.842
3 723,125
4 2 78, 780
54,979,662
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2.23
Difference
Cost @
Volume $2.2311000
4,091.298 $9.123 59 1
2.891,745 56,448.59 1
1,772.192 S3.951.99
106.389 _ 5237 25
561.179 51.251.43 1
(51,200) ($1'4.18) {
227.767 S507 92 !
(1.168,520) ($2,605 80)
(490,569) ($1,093.97
(137,74 ($307.18)
205.740 S458 80
281.Q40 $62714
8,289,503 $18,485.59
1 ..x,11 v�ilr 1 Ik 1' N nlc
c� 1 ornd.1 1 rend 1:D cn. l'( \Iem.
RESOLUTION NO.
A RESOLUTION APPROVING AN AMENDMENT TO THE SEWER
CONTRACT BETWEEN THE CITY OF FAYETTEVILLE, AND THE
CITY OF ELKINS.
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas, hereby
approves an Amendment to the Sewer Contract between the City of Fayetteville and the
City of Elkins. A copy of the Amendment, marked Exhibit "A," is attached hereto and
made a part hereof.
PASSED and APPROVED this 3" day of January, 2008.
APPROVED: ATTEST -
By:
DAN COODY, Mayor SONDRA E. SMITH, City Clerk/Treasurer
AMENDMENT 1 TO SENT ER CONTRACT
] he Sewer Contract (hereinafter "Contract") dated December 20, 2005 between the
Cir\ of Fayetteyi:le (hereinafter -Fayette\ ill e") and City of Elkins (hereinafter
"Elkins") shall he amended and modified hv this amendment (hereinafter
• Anendnrent-) 35 Ib] lo vs:
\\'}IEREAS:
Under the Contract. Fayetic\tllc recces wastewater from Elkins and then
transports and processes the nastew,rter in Fayetteville's wastewater treatment
facility and discharges treated wastewater effluent under Fayctteki]le's National
Pollution Discharge El:mntatn n. Sy SILO) pc mit. and
Favettesille roust ensure that This role does not place financial burdens on
Fanettevil!e's retail customers 1)ir V‘Lich Fa\etleville's retail customers receive
no benefit; and
Elkins must ensure Ihat this role does not place financial burdens on Elkins'
retail customers for \shich Elkins" retail customers receive no benefit: and
('it). of Fayetteville and ('itc of Elkins desire to amend said Contract.
NO\V, THEREFORE. in consideration of the mutual covenants contained herein.
Fayetteville and Elkins da hereby agree to amend the Contract as follows:
Elle Contract and the terms and conditions (herein shall remain unchanged
except for the sections listed below:
Section (' 1\IPA('T EFE !\1PLE\1ENTAT1(JN or ('()NTRAC'TUAI.
St'R('ILARGE subparagraph 3 i rearmed in its entirety and replaced with the
following:
'[he payment for wastewater treatment shall he based on metered \sater
purchased discounted by the formula dcscr.hcd in APPENDIX B. Elkins and
FaN cite\Ills agree to use eighty -fine percent (85^0) as the initial percentage.
Elkins and Ea\elte\ille agree that the ‘o lurne of wastewater receiscd by
Fayetteville at the "Point of Connection- shall be measured by the xiastewater
meter installed. The Cities agree to base monthly billing on the percentage
method. Volumes of wastewater below or oho\ e the agreed upon percentage
(85°0), as mca.urcd by the wastewater meter. shall he recorded on a monthly
basis, v% th a reconciliation of the net difference to occur serniannualh nt June
and December. If the reconci:iation o:umc is oyer the agreed upon percentage,
this amount shall he billed to Elkin; in June and December at the actual
computed cost of wastcuater collect:on ;0 and treatment at the Noland
Wastm aler'Eteatmcnl Plant. not including the calculated rate of return and not
1;kin n;('1 1 0 1 ,
including depreciation charges. bul including an capacit) surcharge. based on
Me most recent rale as determined in paragraph 13. of this Contract. I1 the
rc.nnclliallnn °Kline is below the agreed upon percentage. the actual amount
baled for the difference ;hal; be refunded to Elkins in June and December. For
21017, lire only rcconeiliation shall take place in December. 2007 and shall be
calculated based on the rale in place as of E)ecembel 1. 2007 Late penalties
sha:1 no: he computed on anV ::rnoLnt n\ crape accurnulalul .prior lo the
1econcilia(iun hilt.
IN WITNESS \\ 1IEREOF. the part:es hereto haN e executed this Amendment as u1 the
da\ of . 11100.
('ill Oh 11]1<I\'S (']1 OF FAl'1. TEN 11.I.F
Jack 1_advinan. Mayor Dan c end y. \1a�ur
ATIPST.
Sondra Smith. ('ire ('leek
1 'Ari. l 'nein 1.Lluldmn IL ii•'
2 1 IA1
(1.4.08) Clarice Pearman -City of Elkins Page 1
From: Clarice Pearman
To: Jurgens, David
Date: 1.4.08 1:40 PM
Subject: City of Elkins
David.
The City Council passed your agenda itern for a sewer agreement with the City of Elk ns. However 1 Co not have signed
agreements for this items Please let rre know wher 1 might expect them. Have a good afternoo^.
Thanks.
Clarce
(1.4.08) Clarice Pearman-Re: City of Elkins Page 1
From: David Jurgens
To: Pearman, Clarice
Date: 1.4.08 2:14 PM
Subject: Re: City of Elkins
CC: sldavis@davisbusinessplanning.com
Clarice,
The Elkins City Counci' was expected to pass the item last nigh, but did -ot. As soon as I receive signed documents from
them, I will forward them to you.
Thank you,
David
»> Dance Pearman 1/4/2008 1:40 pn »>
David:
The City Council passed your agenda item 'cr a sewer agreement wits. the City of Elkins. However I do not have signed
agreements for this items. Please let me know whe- ] night expect them. Have a good afternoon.
—hanks.
Clarice
(1.28 08) Clarice Pearman - Res 06-08
From:
To:
Date:
Subject:
Attachments:
Clarice Pearman
Jurgens, David
1.28.08 1:11 PM
Res. 06-08
06-08 City of Elkins.pdf
CC: Audit
David:
Attached is a copy of the resolution passed by C.ty Council regarding the amendment to the City of Elkins sewer agreement.
:f there is anything else needed for this item please let me know. 'lave a good day.
Thanks.
Clarice
Page 1