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HomeMy WebLinkAbout171-09 RESOLUTIONRESOLUTION NO. 171-09 A RESOLUTION APPROVING AN AMENDMENT TO THE WASTEWATER COLLECTION AND TREATMENT SERVICES CONTRACT WITH THE CITY OF FARMINGTON, ARKANSAS. 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 Wastewater Collection and Treatment Services Contract between the City of Fayetteville and the City of Farmington, Arkansas. A copy of the Amendment, marked Exhibit "A," is attached hereto and made a part hereof. PASSED and APPROVED this 4th day of August, 2009. APPROVED: By: ATTEST: ONDRA E. SMITH, Citylerk/Treasurei.000�i5 �a� � aoaoa-+S •j FAYETTEVILLE ":11; ��\2 (°�'RANSP m �+Saa' 7 o a t0�60 g� QI §0��p4 ti�`4S David Jurgens Submitted By City of Fayetteville Staff Review Form City Council Agenda Items and Contracts, Leases or Agreements 8/4/2009 City Council Meeting Date Agenda Items Only Water & Wastewater Division Action Required: Utilities Department Approval of an amendment to the wastewater collection and treatment services contract between the Cities of Fayetteville and Farmington Cost of this request Account Number Project Number Budgeted Item 0 Depart snt Direc City Attorney ' . nce and Internal Services Director Category / Project Budget Funds Used to Date Remaining Balance Budget Adjustment Attached XX Program Category / Project Name Water and Wastewater Program I Project Category Name Water/Sewer Fund Name Z1.2uL1 Ot Previous Ordinance or Resolution # 61-07 Date Zz Date 7-t2-2 Date 7 4/ f S'-ff ate Original Contract Date: 4/3/2007 vl Original Contract Number: Mayor Received in Mayor's Office Comments: Revised January 15, 2009 Wane CITY COUNCIL AGENDA MEMO Special City Council Meeting of August 4, 2009 To: Mayor Lioneld Jordan Fayetteville City Council Thru: Don Marr, Chief of Staffer\ From: David Jurgens, Utilities Director Fayetteville Sewer Committee Date: July 21, 2009 Subject: Supplemental memo to proposed amendment to the wastewater collection and treatment services contract between the Cities of Fayetteville and Farmington The City of Farmington proposed several non -substantive changes to the proposed amendment to the wastewater collection and treatment services contract between the Cities of Fayetteville and Farmington. The final amendment simply incorporates language that was extracted word for word from the original agreement. The changes were made at the request of the Farmington City Attorney after the original agreement was staffed. This amendment was passed by the Farmington City Council at a special meeting on 20 July, 2009. A signed copy is attached, as is the informational memo sent to them is attached. RESOLUTION NO. A RESOLUTION APPROVING AN AMENDMENT TO THE WASTEWATER COLLECTION AND TREATMENT SERVICES CONTRACT WITH THE CITY OF FARMINGTON, ARKANSAS. 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 Wastewater Collection and Treatment Services Contract between the City of Fayetteville and the City of Farmington, Arkansas. A copy of the Amendment, marked Exhibit "A," is attached hereto and made a part hereof. PASSED and APPROVED this 4th day of August, 2009. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer FIRST AMENDMENT to FARMINGTON=FAYETTEVILLE SEWER SERVICES CONTRACT The Sewer Contract (hereinafter "Contract") dated April 3, 2007 between the City of Fayetteville (hereinafter "Fayetteville") and City of Farmington (hereinafter "Farmington") shall be amended and modified by this amendment (hereinafter "Amendment") as follows: WHEREAS: Under the Contract, Fayetteville receives wastewater from Farmington and then transports and processes the wastewater in Fayetteville's wastewater treatment facility and discharges treated wastewater effluent under Fayetteville's National Pollution Discharge Elimination System permit; and Fayetteville must ensure that this role does not place financialburdens on Fayetteville's retail customers for which Fayetteville's retail customers receive no benefit; and Farmington must ensure that this role does not place financial burdens on Farmington' retail customers for which Farmington' retail customers receive no benefit; and City of Fayetteville and City of Farmington desire to amend said Contract. NOW, THEREFORE, in consideration of the mutual covenants contained herein, Fayetteville and Farmington 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: 1.9 Farmington Wastewater Collection System Farmington Publicly Owned Treatment Works including any device or system used in the collection, transportation, or treatment of municipal sewage or industrial wastes of a liquid nature that is owned by Farmington. This definition shall include, but is not limited to, the gravity sewer pipes, collector sewers, transmission mains, force mains, manholes, and all appurtenances within the corporate boundaries of Farmington, the Farmington Branch Interceptor, Lift Station #12 and relocated Lift Station #12; Lift Station #12 Force Main located within the corporate boundaries of Farmington and Fayetteville and all other appurtenances which are being financed and constructed. This will include appurtenances not yet constructed as of the date of this agreement. The Farmington Wastewater Collection System may connect to the Fayetteville Wastewater Collection System at multiple locations. Service laterals are generally the responsibility and ownership of the Retail Customer and are thus excluded from this definition.. Fsrrnington_Contract Addendum_20Ju1y09.doc: 3.3 Operational Capacity Throughout the term of this contract, Farmington customers shall be granted 8.2% of the Operational Capacity of the Fayetteville West Side Wastewater Treatment Plant. Until such time as the construction of the West Side Wastewater Treatment Plant is completed, Farmington retail and industrial customers shall continue to utilize the Noland Wastewater Treatment Plant and present facilities. Throughout the term of this contract, Fayetteville customers shall be granted Operational Capacity in Farmington's Wastewater Collection System as defined in Paragraph 1.20 and further defined as 19.73% of WL -10 and WL -10A, and 28.39% of WL -11 and. WL -12 and as set forth with Section 12.10 of the original contract dated April 3, 2007. 3.4 Farmington Connections to Fayetteville's Wastewater Collection System and Westside Treatment Plant. Farmington is authorized multiple connections to Fayetteville's Wastewater System. 9.1 Fayetteville Wastewater Impact Fee As soon as this contract is approved by both parties, the existing Fayetteville Wastewater Impact fee enacted as § 159.02 of the Unified Development Code of the City of Fayetteville shall be applicable and enforced on new connections within Fayetteville just as it is to new connections in Fayetteville. Upon completion of any new wastewater development impact fee study and adoption by Fayetteville of any new or amended wastewater impact fee ordinance, the new or amended impact fee ordinance shall be applicable and enforced within Farmington identically to its enforcement in Fayetteville. Farmington shall immediately enact Fayetteville's impact fee ordinances (and any amendments thereto) after Fayetteville provides notice of any such impact fee ordinance to ensure that Fayetteville's wastewater impact fee shall apply to all new connections in Farmington. 9.2 Farmington Wastewater Impact Fee Upon completion of the study referred to in Section 9, Farmington may adopt a development impact fee ordinance and shall assess and collect impact fees from new sewer connections within the corporate boundaries of Farmington. Farmington may also assess and collect impact fees from new sewer connections in areas of Fayetteville served by the Farmington Wastewater Collection System when Fayetteville's use of its guaranteed capacity exceeds the limits set forth in Paragraph 3.3 as measured by the Exhibits referenced in, Paragraph 1.2.10. Fayetteville shall pass any necessary ordinance to ensure Farmington may legally collect this wastewater 'impact fee in the part of Fayetteville served by Farmington's sewer collection system. • Fannirigton anticipates annexing theremaining portions of Basin 1-54 and :I-55 located 7 --.south, and east of Parmington's corporate boundaries in Washington .County. In the FFaington_Contract �Addendum m20iuly09.doc 7/2012009; 4:5.7 PM event this or any other territory is annexed into Farmington, Farmington and Fayetteville may assess and collect impact fees from new sewer connections, as determined by a development impact fee study. 9.4 Developments and Property Owners The parties agree to provide each other, on a quarterly basis, a report that list new developments and new connections of individual property owners which utilize operational capacity granted to the other party. 10.2 Cost of Construction Farmington and Fayetteville agree to cost share the construction cost of the Project for serving areas identified to be served by the RJN Plan dated January 1, 2007. The construction cost estimated by RJN and based on the service area map dated January 1, 2007 is $5,586,930.00 and incorporates the annexations completed during 2006. $4,221,779:00 of this construction cost is associated to and shall be paid by Farmington and includes the cost of providing capacity to serve Basins I-54 and 1-55, in the Farmington Wastewater System. Fayetteville is allocated $1,365,151.00 of the construction cost of the improvements to the Farmington Wastewater System. If Fayetteville annexes Basin I.54 and/or 1-55 Fayetteville agrees to pay the cost of providing capacity to serve these two areas in the Farmington Wastewater System. The cost to provide capacity in the Farmington Wastewater System for Basins 1-54 and I-55 is estimated at $745,937.00. Both Parties agree that each party shall incur the construction, engineering and right of way costs to provide wastewater facilities for the additional areas annexed by each Party after execution of the contract.. The Parties further agreed that Farmington shall not be required to pay more than $480,000.00 in engineering fees and associated costs unless there was a change in cost of engineering due to scope of work change requested by Farmington. The parties acknowledge and agree that additional engineering fees were required due to relocation of Lift Station #12 and phasing the construction of the Farmington Gravity Sewer; however, the Parties agree that Farmington shall not be required to pay more than $550;000.00 in engineering fees and all associated engineering and survey cost as a: result of relocating Life Station #12 and completing the construction of the Farmington Gravity Sewer System. Farmington also agrees to acquire the necessary right of ways and easements at an estimated cost of $432,640.00 and pay value engineering fees of $39,844.00. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the ao day of . LA;\ , 2009. ,Fannington_Contract_Addendum 20Ju1y09.doc 712012009, 4:57 Plvl:. CITY OF FARMINGTON Ernie Penn, Mayor CITY F FA i TTEV LE Lioneld dan, Mayor Farmington Contract Addendum 20JuIyO9.doc 7/20!2009, 4:57 PM June 24, 2009 Davis Business Planning ca Stephen L. Davis P.O. Box 3381 Fayetteville, Arkansas 72702 Telephone Number: 479-935-4572 Fax Number: 479-935-4573 Web Site: Davisbusinessplanning.com Email: SLDavis@davisbusinessplanning.com Mayor Ernie Penn and Farmington City Council 354 West Main Street P. O. Box 150 Farmington, AR 72730 SUBJECT: Farmington -Fayetteville Sewer Services Contract Amendment 1 Dear Mayor Penn and City Council, The cities of Farmington and Fayetteville finalized a sewer services contract on April 3, 2007. Farmington approved the contract at a Special City Council Meeting on April 2, 2007 and Fayetteville approved the agreement at its regular meeting of April 3, 2007. The need exists to amend the agreement to codify changes that have been agreed to over the past 2 years. The contract amendments needed include the following items: Contract Paragraph Proposed Change:; 1.9 Farmington Wastewater Collection System Adds "appurtenances not yet constructed" to allow all of Farmington's future sewer lines to be a part of this contract without having to amend the agreement each time a new line is constructed. 3.3 Operational Capacity Grants Fayetteville Operational Capacity in Farmington's collection System within the body of the contract rather than as an exhibit. 3.4 Farmington Connections to Fayetteville's Wastewater Collection System and Westside Treatment Plant Changes Farmington's connections to Fayetteville's Wastewater System from a single connection to multiple connections. 9.1 Fayetteville Wastewater Impact Fee Change "development to connection". This will allow Fayetteville's System impact fee to be assessed in Farmington as it is in Fayetteville. Page 1 of 2 Contract Paragraphp Pro Proposed p sed Changc. 9.2 Farmington Wastewater Impact Fee Changes "shall" to "may" to give Farmington more flexibility in financing future capacity improvements and stipulates that Fayetteville customers will only be assessed a Farmington impact fee when and if the Operational Capacity granted in 3.3 is exceeded. 9.4 Developments and Property Owners Changes the reporting requirement from monthly to quarterly. 10.2 Cost of Construction Recognizes increased engineering fees for Farmington made necessary by changing the location of WL 12 from east of Double Springs Road to West of Double Springs Road and the phasing of WL -10 and WL -10A. It should be noted WL -10A is costing approximately $1.0 million less because of the phased approach. Fayetteville Water & Sewer Committee reviewed this change order at its June 23, 2009 meeting and will finalize its discussion on/about July 14. It is expected to be presented to the Fayetteville City Council on July 21 for approval. I plan to be present at Farmington's City Council meeting to answer any questions related to Farmington's wastewater system, the improvements underway and this proposed contract amendment. In the meantime, if you have any questions or would like any clarifications please contact Stephen Davis by telephone at 479-935-4572 or via email at sldavis@davisbusinessplanning.com. Respectfully Submitted, Stephen Davis, Member Page 2 of 2 FIRST AMENDMENT to FARMINGTON-FAYETTEVILLE SEWER SERVICES CONTRACT The Sewer Contract (hereinafter "Contract") dated April 3, 2007 between the City of Fayetteville (hereinafter "Fayetteville") and City of Farmington (hereinafter "Farmington") shall be amended and modified by this amendment (hereinafter "Amendment") as follows: WHEREAS: Under the Contract, Fayetteville receives wastewater from Farmington and then transports and processes the wastewater in Fayetteville's wastewater treatment facility and 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 Farmington must ensure that this role does not place financial burdens on Farmington' retail customers for which Farmington' retail customers receive no benefit; and City of Fayetteville and City of Fainnington desire to amend said Contract. NOW, THEREFORE, in consideration of the mutual covenants contained herein, Fayetteville and Farmington 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: 1.9 Farmington Wastewater Collection System — Farmington Publicly Owned Treatment Works including any device or system used in the collection, transportation, or treatment of municipal sewage or industrial wastes of a liquid nature that is owned by Farmington. This definition shall include, but is not limited to, the gravity sewer pipes, collector sewers, transmission mains, force mains, manholes, and all appurtenances within the corporate boundaries of Farmington, the Farmington Branch Interceptor, Lift Station #12 and relocated Lift Station #12; Lift Station #12 Force Main located within the corporate boundaries of Farmington and Fayetteville and all other appurtenances which are being financed and constructed. This will include appurtenances not yet constructed as of the date of this agreement. The Farmington Wastewater Collection System may connect to the Fayetteville Wastewater Collection System at multiple locations. Service laterals are generally the responsibility and ownership of the Retail Customer and are thus excluded from this definition. Farmington_Contract_Addendum_2oJuly09.doc 7/20/2009, 4:57PM 3.3 Operational Capacity Throughout the term of this contract, Farmington customers shall be granted 8.2% of the Operational Capacity of the Fayetteville West Side Wastewater Treatment Plant. Until such time as the construction of the West Side Wastewater Treatment Plant is completed, Farmington retail and industrial customers shall continue to utilize the Noland Wastewater Treatment Plant and present facilities. Throughout the term of this contract, Fayetteville customers shall be granted Operational Capacity in Farmington's Wastewater Collection System as defined in Paragraph 1.20 and further defined as 19.73% of WL -10 and WL -10A, and 28.39% of WL -11 and WL -12 and as set forth with Section 12.10 of the original contract dated April 3, 2007. 3.4 Farmington Connections to Fayetteville's Wastewater Collection System and Westside Treatment Plant. Farmington is authorized multiple connections to Fayetteville's Wastewater System. 9.1 Fayetteville Wastewater Impact Fee As soon as this contract is approved by both parties, the existing Fayetteville Wastewater Impact fee enacted as § 159.02 of the Unified Development Code of the City of Fayetteville shall be applicable and enforced on new connections within Fayetteville just as it is to new connections in Fayetteville. Upon completion of any new wastewater development impact fee study and adoption by Fayetteville of any new or amended wastewater impact fee ordinance, the new or amended impact fee ordinance shall be applicable and enforced within Farmington identically to its enforcement in Fayetteville. Farmington shall immediately enact Fayetteville's impact fee ordinances (and any amendments thereto) after Fayetteville provides notice of any such impact fee ordinance to ensure that Fayetteville's wastewater impact fee shall apply to all new connections in Farmington. 9.2 Farmington Wastewater Impact Fee Upon completion of the study referred to in Section 9, Farmington may adopt a development impact fee ordinance and shall assess and collect impact fees from new sewer connections within the corporate boundaries of Farmington. Farmington may also assess and collect impact fees from new sewer connections in areas of Fayetteville served by the Farmington Wastewater Collection System when Fayetteville's use of its guaranteed capacity exceeds the limits set forth in Paragraph 3.3 as measured by the Exhibits referenced in Paragraph 12.10. Fayetteville shall pass any necessary ordinance to ensure Farmington may legally collect this wastewater impact fee in the part of Fayetteville served by Farmington's sewer collection system. Farmington anticipates annexing the remaining portions of Basin 1-54 and 1-55 located south and east of Farmington's corporate boundaries in Washington County. In the Farmington _Contract_Addendum_20July09.doc 712012009, 4:57 PM event this or any other territory is annexed into Farmington, Farmington and Fayetteville may assess and collect impact fees from new sewer connections, as determined by a development impact fee study. 9.4 Developments and Property Owners The parties agree to provide each other, on a quarterly basis, a report that list new developments and new connections of individual property owners which utilize operational capacity granted to the other party. 10.2 Cost of Construction Farmington and Fayetteville agree to cost share the construction cost of the Project for serving areas identified to be served by the RJN Plan dated January 1, 2007. The construction cost estimated by RJN and based on the service area map dated January 1, 2007 is $5,586,930.00 and incorporates the annexations completed during 2006. $4,221,779.00 of this construction cost is associated to and shall be paid by Farmington and includes the cost of providing capacity to serve Basins I-54 and I-55, in the Farmington Wastewater System. Fayetteville is allocated $1,365,151.00 of the construction cost of the improvements to the Farmington Wastewater System. If Fayetteville annexes Basin I-54 and/or I-55 Fayetteville agrees to pay the cost of providing capacity to serve these two areas in the Farmington Wastewater System. The cost to provide capacity in the Farmington Wastewater System for Basins I-54 and 1-55 is estimated at $745,937.00. Both Parties agree that each party shall incur the construction, engineering and right of way costs to provide wastewater facilities for the additional areas annexed by each Party after execution of the contract. The Parties further agreed that Farmington shall not be required to pay more than $480,000.00 in engineering fees and associated costs unless there was a change in cost of engineering due to scope of work change requested by Farmington. The parties acknowledge and agree that additional engineering fees were required due to relocation of Lift Station #12 and phasing the construction of the Farmington Gravity Sewer; however, the Parties agree that Farmington shall not be required to pay more than $550,000.00 in engineering fees and all associated engineering and survey cost as a result of relocating Life Station #12 and completing the construction of the Farmington Gravity Sewer System. Farmington also agrees to acquire the necessary right of ways and easements at an estimated cost of $432,640.00 and pay value engineering fees of $39,844.00. IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day of �� , 2009. Farrnington_Contract Addendum20July09.doc 7/20/2009, 4:57 PM CITY OF FARMINGTON Ernie Penn, Mayor ATTEST: CITY OF FAYETTEVILLE Lioneld J P an, Mayor ATTEST: Kelly Thom., City Clerk Sondra Smith, City Clerk Farmington_Contract_Addendum 20July09.doc 712012009, 4:57 PM David Jurgens Submitted By City of Fayetteville Staff Review Form 71- 45 u.20a rLiup`osd City Council Agenda Items CJ) Y\P_AJ3 C0C\ and Contracts, Leases or Agreements 7/21/2009 City Council Meeting Date Agenda Items Only Water & Wastewater Unities Division Debartment Action Required: Approval of an amendment to the wastewater collection and treatment services contrac •etween the Cities of Fayetteville and Farmington Cost of this request Account Number Project Number Budgeted Item Depa - t D City Attor ey ector Category / Project Budget Program Category / Project Name Funds Used to Water and Wastewater ate Program 1 Project Category Name emai' ing Balance Budget A• . tment Attached 1-1 Finance and Internal Service Director Dat a b Da e Water/Sewer Fund Name Previous Ordinance or Resolution # Original Contract Date: Original Contract Number: 61-07 4/3/2007 Date Rec: ived in City Cle , `s Office Date Receive in Mayor's O ce EN Comments: 1 bid IDAL,Li „alai .Parl'uarry 2009 WeIdle CITY COUNCIL AGENDA MEMO Special City Council Meeting of July 21, 2009 To: Mayor Lioneld Jordan Fayetteville City Council Thru: Don Marr, Chief of Staff f1 From: David Jurgens, Utilities Director \U Fayetteville Sewer Committee Date: July 2, 2009 Subject: Approval of an amendment to the wastewater collection and treatment services contract between the Cities of Fayetteville and Farmington RECOMMENDATION Fayetteville City Administration recommends approval of an Amendment to the wastewater collection and treatment services contract between the Cities of Fayetteville and Farmington. BACKGROUND Fayetteville and Farmington have a 32 year partnership in wastewater collection and treatment, the conditions for which have been agreed upon in three consecutive contracts. The current contract, adopted in April 2007, needs some minor modifications due to system upgrades, growth, construction changes, and ordinance updates. Over the last 3 years, the cities have worked together with unprecedented teamwork executing over $7 million worth of joint work in the Farmington portion of the Wastewater System Improvement Project. DISCUSSION This amendment, developed cooperatively by staff and elected officials, and reviewed by the Water/Sewer Committee, updates several specific items within the 2007 contract. Key changes are: (1) Changing from a single point of connection from the Farmington to the Fayetteville systems to multiple points of connection, allowing for multiple points of connection from Farmington's system to Fayetteville's. This allows for intelligent system design in current and potential future annexed areas. (2) Farmington guarantees Fayetteville a set percentage of the operational capacity of Farmington's system (19.73% for WL -10 and WL -10a -gravity lines through Farmington- and 28.39% for WL -12 -lift station - based on the population breakdown from the original agreement and the cost share used in WS1P work. (3) Impact fee changes including (a) Who pays impact fees from "new developments" to "new connections." This change is consistent with changes in the Fayetteville impact fee ordinance eliminating a loophole. (b) Eliminates the Farmington impact fee for new connections within Fayetteville that flow through the Farmington system where Fayetteville paid for its share of the construction. Fayetteville "owns" that capacity, so it is not appropriate for Fayetteville residents to pay the Farmington impact fee. Fayetteville residents could pay the Farmington impact fee if they someday tie to another portion of the Farmington system other than those lines where Fayetteville paid for its share of the work. (4) Increases the amount Farmington will reimburse Fayetteville for engineering by $70,000 from the original number of $480,000 to the new number of $550,000, due to the increased engineering costs associated with separating WL -10 and WL -10a gravity lines into two projects. BUDGET IMPACT The amendment acknowledges that Farmington is reimbursing up to an additional $70,000 for the actual design and construction phase engineering costs incurred for Farmington WSIP work, for a total maximum engineering cost of $550,000. Farm Amend 1 CCMemo Ju109 RESOLUTION NO. A RESOLUTION APPROVING AN AMENDMENT TO THE WASTEWATER COLLECTION AND TREATMENT SERVICES CONTRACT WITH THE CITY OF FARMINGTON, ARKANSAS. 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 Wastewater Collection and Treatment Services Contract between the City of Fayetteville and the City of Farmington, Arkansas. A copy of the Amendment, marked Exhibit "A," is attached hereto and made a part hereof. PASSED and APPROVED this 21st day of July, 2009. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer AMENDMENT 1 TO SEWER CONTRACT The Sewer Contract (hereinafter "Contract") dated April 3, 2007 between the City of Fayetteville (hereinafter "Fayetteville") and City of Farmington (hereinafter "Farmington") shall be amended and modified by this amendment (hereinafter "Amendment") as follows: WHEREAS: Under the Contract, Fayetteville receives wastewater from Farmington and then transports and processes the wastewater in Fayetteville's wastewater treatment facility and 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 Farmington must ensure that this role does not place financial burdens on Farmington' retail customers for which Farmington' retail customers receive no benefit; and City of Fayetteville and City of Farmington desire to amend said Contract. NOW, THEREFORE, in consideration of the mutual covenants contained herein, Fayetteville and Farmington 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: 1.9 Farmington Wastewater Collection System — Farmington Publicly Owned Treatment Works including any device or system used in the collection, transportation, or treatment of municipal sewage or industrial wastes of a liquid nature that is owned by Farmington. This definition shall include, but is not limited to, the gravity sewer pipes, collector sewers, transmission mains, force mains, manholes, and all appurtenances within the corporate boundaries of Farmington, the Farmington Branch Interceptor, Lift Station #12 and relocated Lift Station #12; Lift Station #12 Force Main located within the corporate boundaries of Farmington and Fayetteville and all other appurtenances which are being financed and constructed. This will include appurtenances not yet constructed as of the date of this agreement. The Farmington Wastewater Collection System may connect to the Fayetteville Wastewater Collection System at multiple locations. Service laterals are generally the responsibility and ownership of the Retail Customer and are thus excluded from this definition. 3.3 Operational Capacity FarmingtonContract_Addenduin 22June09 7/2/2009, 11:34 AM Throughout the term of this contract, Farmington customers shall be granted 8.2% of the Operational Capacity of the Fayetteville West Side Wastewater Treatment Plant. Until such time as the construction of the West Side Wastewater Treatment Plant is completed, Farmington retail and industrial customers shall continue to utilize the Noland Wastewater Treatment Plant and present facilities. Throughout the term of this contract, Fayetteville customers shall be granted Operational Capacity in Farmington's Wastewater Collection System as defined in Paragraph 120 and further defined as 19.73% of WL -10 and WL -10A, and 28.39% of WL -11 and WL -12 and as set forth with Section 12.10 of the original contract dated April 3, 2007. 3.4 Farmington Connections to Fayetteville's Wastewater Collection System and Westside Treatment Plant. Farmington is authorized multiple connections to Fayetteville's Wastewater System. 9.1 Fayetteville Wastewater Impact Fee Change "development" to "connections". 9.2 Farmington Wastewater Impact Fee Upon completion of the study referred to in Section 9, Farmington may adopt a development impact fee ordinance and shall assess and collect impact fees from new sewer connections within the corporate boundaries of Farmington. Farmington may also assess and collect impact fees from new sewer connections in areas of Fayetteville served by the Farmington Wastewater Collection System when Fayetteville's use of its guaranteed capacity exceeds the limits set forth in Paragraph 3.3 as measured by the Exhibits referenced in Paragraph 12.10. Fayetteville shall pass any necessary ordinance to ensure Farmington may legally collect this wastewater impact fee in the part of Fayetteville served by Farmington's sewer collection system. 9.4 Developments and Property Owners The parties agree to provide each other, on a quarterly basis, a report that list new developments and new connections of individual property owners which utilize operational capacity granted to the other party. 10.2 Cost of Construction The Parties agree that additional engineering fees were required due to relocation of Lift Station #12 and phasing the construction of the Farmington Gravity Sewer. The parties agree engineering fees, including the cost of additional engineering services shall not exceed a total of $550,000. Fannington_Contract Addendum 227une09 7/2/2009, 11:34 AM IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day of , 2009. CITY OF FARMINGTON CITY OF FAYETTEVILLE Ernie Penn, Mayor Lioneld Jordan, Mayor ATTEST: ATTEST: Kelly Thomas, City Clerk Sondra Smith, City Clerk Farmington_Contract_Addendum_22June09 7/2/2009, 11:34 AM