Loading...
HomeMy WebLinkAbout118-10 RESOLUTIONRESOLUTION NO. 118-10 A RESOLUTION TO APPROVE A 15 YEAR CONTRACT FOR ENHANCED WATER SERVICE BETWEEN FAYETTEVILLE AND JOHNSON WHEREAS, Fayetteville owns and operates a public water system consisting of water mains, some of which are located within the corporate limits of the City of Johnson, Arkansas, and water storage facilities and pumps with sufficient capacity to treat current and foreseeable water flows needed for its corporate city limits as well as Johnson, and other out-of-town customers; and WHEREAS, Fayetteville has provided water service to customers in Johnson for many years, and has now been requested by the City of Johnson to provide enhanced water service for its citizens within the Fayetteville water service area; and WHEREAS, Johnson and Fayetteville desire to enter into an agreement whereby Fayetteville will provide access to enhanced water service on an individual basis to its water mains for customers in the City of Johnson who are within Fayetteville's water service area; and, WHEREAS, all new customers of the Fayetteville water service and public water and treatment system are responsible to pay the system wide water and wastewater impact fee to ensure new development that increases demand upon the water and wastewater system will bear its proportionate share of necessary improvements caused by increasing demand; and WHEREAS, it is to the mutual advantage of Johnson and Fayetteville and their citizens to enter into an agreement for Fayetteville to own, operate and maintain a water distribution system within Fayetteville's water service areas of the City of Johnson freely utilizing street and alley rights of way and easements to provide enhanced water service where feasible and practical to Johnson citizens and thereby protecting the public health and maintaining the quality of life desired by citizens of Jolmson; and WHEREAS, the cities and their citizens will be benefitted by establishing a procedure and framework for future expansion and improvements to Fayetteville's water system in the City of Johnson. Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the fifteen year Contract For Enhanced Water Service between the cities of Johnson and Fayetteville attached as Exhibit A and authorizes Mayor Jordan to execute this Contract upon its approval by the Johnson City Council and signature by Mayor Lonnie Barron and the approval of all other pending contracts between Johnson and Fayetteville and the ordinance for the simultaneous detachment and annexation into Fayetteville of the agreed 99 acre parcel by the Johnson City Council and signature by Mayor Barron PASSED and APPROVED this 6th day of July, 2010. APPROVED: ATTEST: DDRSA E. SMITH, City Clerk/Treasurer Page 2 Resolution No. 118-10 ORDINANCE NO. 2010— ©'r AN ORDINANCE APPROVING A CONTRACT WITH THE CITY OF FAYETTEVILLE, ARKANSAS, TO PROVIDE ENHANCED WATER SERVICE TO CUSTOMERS WITHIN CERTAIN AREAS OF JOHNSON, ARKANSAS, AND GRANTING A FRANCHISE TO THE CITY OF FAYETTEVILLE TO PROVIDE ENHANCED WATER SERVICE WITHIN THE CITY OF JOHNSON AND DECLARING AN EMERGENCY TO EXIST WHEREAS, there has been a defacto agreement with the City of Fayetteville for the City of Fayetteville to provide water service to customers in certain areas of the City of Johnson for many years. BE IT ORDAINED BY THE CITY COUNCIL OF JOHNSON, ARKANSAS, that, Section 1: That the agreement attached hereto which is titled Contract for Enhanced Water Service Between the Cities of Johnson, Arkansas and Fayetteville, Arkansas bearing the date of July , 2010, having been read, studied and considered by the Johnson City Council should be and hereby is approved and ratified; the Mayor and Recorder -Treasurer are directed and authorized to execute same for and in the name of the City. Section 2: Pursuant to the attached agreement there is hereby levied fees/rates for water and wastewater impact fees, water service, water taps/connections and associated services within that portion of Johnson served by the City of Fayetteville identical to the fees/rates established by the relevant Fayetteville ordinance for users of their water service outside of the Fayetteville city limits. However, the gross receipts taxes of the City of Johnson shall apply to all charges for water service within the City of Johnson collected by the City of Fayetteville. Section 3: There is hereby granted to the City of Fayetteville a license to own, operate, maintain, improve, and place existing and new additional water service facilities on existing and new dedicated street rights-of-way, alleys, utility easements and other public municipal/coj Ordinance Approving Water Contract with Fayetteville 070210 passageways within that portion of the City of Johnson served by the City of Fayetteville. This license shall enable Fayetteville to lay, relay, install, improve, operate and maintain water lines and appurtenances over, under and across such public rights-of-way, alleys and passageways. This license shall be in full force and effect during the effective period of the agreement attached hereto. Section 4: A franchise is hereby granted unto the City of Fayetteville, without a franchise fee or franchise tax, to own, improve, maintain, expand and operate a water service (delivery, storage and maintenance thereof) within the City of Johnson corporate limits on properties owned or leased by Fayetteville and on public rights-of-way, alleys and passageways as herein provided. Said franchise shall be for the effective dates of the agreement attached hereto. Section 5: Provision for water service for the residents of the City of Johnson helps secure the public peace, health and safety. Therefore, an emergency is hereby declared to exist. This ordinance shall be immediately effective upon its passage and approval. PASSED AND APPROVED this 13th day of July, 2010. ATTEST: k1 'ecorder/Treasurer LONNIE BARRON, Mayor municipallcoj Ordinance Approving Water Contract with Fayetteville 070210 CONTRACT FOR ENHANCED WATER SERVICE BETWEEN THE CITIES OF JOHNSON, ARKANSAS AND FAYETTEVILLE, ARKANSAS THIS CONTRACT is made and entered into this 1 lay of , 2010, by and between the City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as "Fayetteville", and the City of Johnson, Arkansas, a municipal corporation, hereinafter referred to as "Johnson". WHEREAS, Fayetteville owns and operates a public water system consisting of water mains, some of which are located within the corporate limits of the City of Johnson, Arkansas, and water storage facilities and pumps with sufficient capacity to treat current and foreseeable water flows needed for its corporate city limits as well as Johnson, and other out-of-town customers; and WHEREAS, Fayetteville has provided water service to customers in Johnson for many years, and has now been requested by the City of Johnson to provide enhanced water service for its citizens within the Fayetteville water service area; and WHEREAS, Johnson and Fayetteville desire to enter into an agreement whereby Fayetteville will provide access to enhanced water service on an individual basis to its water mains for customers in the City of Johnson who are within Fayetteville's water service area; and, WHEREAS, all new customers of the Fayetteville water service and public water and treatment system are responsible to pay the system wide water and wastewater impact fee to ensure new development that increases demand upon the water and wastewater system will bear its proportionate share of necessary improvements caused by increasing demand; and WHEREAS, it is to the mutual advantage of Johnson and Fayetteville and their citizens to enter into an agreement for Fayetteville to own, operate and maintain a water distribution system within Fayetteville's water service areas of the City of Johnson freely utilizing street and alley rights of way and easements to provide enhanced water service where feasible and practical to Johnson citizens and thereby protecting the public health and maintaining the quality of life desired by citizens of Johnson; and WHEREAS, the cities and their citizens will be benefitted by establishing a procedure and framework for future expansion and improvements to Fayetteville's water system in the City of Johnson. NOW, THEREFORE, THE CITY OF JOHNSON AND THE CITY OF FAYETTEVILLE AGREE AS FOLLOWS: (1) ENHANCED WATER SERVICE PROVIDED TO JOHNSON CITIZENS AND BUSINESSES: (A) Water service area. The City of Fayetteville agrees to provide access to its enhanced water service facilities where feasible and practical to individual customers in Johnson who are located within Fayetteville's water service boundary area (shown on the attached map) as agreed by the Beaver Water District and the Cities of Fayetteville and Springdale. (This shall be referred to as the "water service area" hereinafter.) This water service area may be modified by future mutual agreement of Fayetteville and Springdale. (B) Water services. The City of Fayetteville agrees that it will maintain and service all water facilities within its water service area within Johnson in a reasonable manner with the aiin of providing reasonably consistent water service similar to the water service enjoyed by Fayetteville's out-of-town customers. Although not previously required to do so, Fayetteville has supplied enhanced water service by providing water at sufficient flow and pressure to partially support fire hydrants in some places in Johnson within Fayetteville's water service area. Fayetteville will attempt (without having to build new water storage, larger mains or pumping stations in Johnson) to maintain adequate flow and pressure at these locations and may allow additional fire hydrant installation if an adequate flow and pressure is feasible and practical without additional cost to Fayetteville. Fayetteville is not responsible for any diminution in the enhanced flow and pressure caused by allowing the extension of water mains or water service lines to service new development or new customers. Fayetteville will not be required to increase the size of water mains, add pumping facilities or water tanks to maintain enhanced water service flow and pressure to the Johnson water service area. Fayetteville shall not be responsible nor liable for any damages or claims resulting from the interruption, discharge or failure of any part of the Fayetteville water system. If a scheduled interruption to water service in Johnson is necessary for system repair, maintenance, extension or rehabilitation, Fayetteville will attempt to notify the City of Johnson of such interruption prior to the commencement of the work. Fayetteville shall also attempt to notify affected Johnson customers similarly to how it attempts to notify its own citizens and other customers. 2 (C) Effective date of this contract. Fayetteville and Johnson agree that this contract shall be effective on the date that both city councils have approved this contract and both mayors have signed this contract. (D) Term of the contract. Fayetteville and Johnson agree that the term of this contract shall be fifteen (15) years. This contract may be renewed for another term of fifteen (15) years under the same terms and conditions upon the approval of both cities through city council resolutions. (E) Cooperation of the cities. Fayetteville and Johnson pledge to cooperate and work together to effectuate the goals and purposes of this contract for the benefit of their citizens. (F) Ownership of water mains and facilities; franchise and right to use rights-of- way and easements for water mains and facilities. Fayetteville shall continue to own and operate all water mains and facilities located within or serving the Johnson water service area. Johnson shall by ordinance grant Fayetteville a permanent franchise, free of charge but contingent upon Fayetteville providing water service to the Johnson water service area, so that Fayetteville has access to all street and alley rights-of-way, public easements, etc. for the use, maintenance, repair, replacement, and installation of water mains and water facilities necessary to properly serve the Johnson water service area and the Fayetteville Water Distribution System. (G) Water rates. Fayetteville shall supply water service through its distribution system and shall charge water customers located within Johnson's city limits according to the schedule of rates for customers located outside the corporate city limits of Fayetteville, Arkansas as established in the latest Fayetteville Ordinance prescribing water rates. Water rates may change periodically for both Fayetteville and out-of-town customers based upon a rate study and in accordance with state law. Fayetteville will notify Johnson of any public hearing for a water rate change before the Fayetteville City Council meeting in which a water rate increase is being proposed. 3 (H) Water and Wastewater Impact Fees. Johnson agrees that the City of Fayetteville is empowered to charge its Water and Wastewater Impact Fees to new development customers in the Johnson water service area as Fayetteville does for new development in "all of the territory within the City's water and wastewater service areas .... Unified Development Code of Fayetteville §159.02(A). Johnson agrees these impact fees may be changed by Fayetteville after following the procedures mandated by A.C.A. § 14-56-103. (I) Billing and collection powers. Johnson agrees that Fayetteville may continue its meter reading, billing and collection procedures and operations, including discontinuing service to customers who fail to pay their bills, throughout all of its water service area within Johnson just as Fayetteville does throughout its entire water and wastewater service area, (J) Water service connections. All water customers of Fayetteville located within Johnson's water service area shall be required by Johnson to connect to the water distribution system in accordance with the rules and regulations as set out by the City of Fayetteville, the City of Johnson, the Arkansas Department of Health, the Arkansas Department of Environmental Quality, and the U. S. Environmental Protection Agency. The charges and requirements for water service connections shall be the same as for like service in the City of Fayetteville at the time the water service connections are made. Taps or connections to any and all water mains shall be made only by the Fayetteville Water and Water Department after Fayetteville has approved such taps. Johnson authorizes Fayetteville to make street cuts and openings where necessary to make new taps or connections. Fayetteville agrees to repair street cuts required in street crossings, street taps and/or repairs with materials equal to or better than the material and street condition prior to such street cut. (K) Plumbing. Johnson shall require each customer within the Johnson water service area to pay Fayetteville's current plumbing inspection fee and to install all plumbing in accordance with the then current ordinances, rules and regulations of the City of Fayetteville. All plumbing shall be inspected by inspectors of the Fayetteville Building Safety Division. Water service shall not be provided if the plumbing fails to meet the requirements of the applicable Fayetteville Code. 4 (L) Ensuring viability of water valve boxes, fire hydrants, water meters and other water system components. Johnson agrees to ensure that water valve boxes, fire hydrants, water meters and other water system components are re-established to the proper elevation after all street widening, reconstruction or overlay projects permitted or constructed by the City of Johnson have been completed. Any water valve box, fire hydrant, water meter or other water system component repair or reconstruction must meet the City of Fayetteville's specifications and pass inspection by Fayetteville. Water valve boxes, fire hydrants, water meters and other water system components must be raised or lowered to grade within fifteen (15) days of being covered. Johnson agrees to hold Fayetteville harmless from any claims or cost incurred that are worsened by water valve boxes, fire hydrants, water meters and other water system components being covered by a City of Johnson street project. Any water valve boxes, fire hydrants, water meters and other water system components or any other water system components that have to be raised, moved, or otherwise changed as a result of work performed in any way by Johnson shall be at Johnson's expense. (M) Johnson to allow construction and operation of water distribution system by Fayetteville. Johnson agrees to adopt such ordinances, rules and regulations as will allow Fayetteville to construct, maintain and operate the water distribution system in accordance with the rules, regulations, or specifications of the Arkansas Department of Health, the Arkansas Department of Environmental Quality, the U.S. Environmental Protection Agency, and Fayetteville. Noncompliance with said rules, regulations or specifications by any customer may result in discontinuance of service to that customer. Fayetteville shall determine if such noncompliance has occurred. Johnson also agrees to adopt the necessary ordinances to provide Fayetteville with the necessary authority to implement any enforcement action of local, state and federal law or regulation. (N) Public health regulation compliance. Johnson agrees to ensure and require that all of its water customers within the water service area shall constantly comply with the ordinances, rules and regulations of Fayetteville, the U.S. Environmental Protection Agency, the Arkansas Department of Health, and the Arkansas Department of Environmental Quality governing public health and water operations and usage which may now exist or may hereinafter be promulgated. Failure or refusal of any customer to comply with such ordinances, rules or regulations will subject the customer to immediate discontinuance of water and water service and Fayetteville shall not be liable for any damages or expenses which might result from any discontinuance. 5 (0) Discontinuance of water service. Fayetteville reserves the right to discontinue water service to individual customers without notice for any of the following reasons: (P) 1. For fraudulent representation as to the condition of plumbing system as it relates to the protection and safety of Fayetteville's water or sewer system; 2. For improperly connected appliances and fixtures resulting in hazardous, potentially hazardous, or defective conditions; 3. For emergencies where damage to property, equipment or health may occur; 4. By order or request of the Arkansas Department of Health; 5. By order or request of the Arkansas Department of Environmental Quality; 6. If rules and regulations of the Arkansas Department of Health, or the U.S. Environmental Protection Agency relating to the safety and of the public water or sewer collection or treatment system are being neglected or violated; 7. If Ordinances of the City of Johnson or City of Fayetteville relating to the safety and protection of public water system are being neglected or violated; and 8. For failure to fully and timely pay water and sewer bills. Taxes and fees prohibited. Johnson 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 whatsoever nor assess any fee upon Fayetteville, the water distribution or the sewer systems operations called for by this contract. Nothing contained herein shall preclude the collection of any gross receipts tax (i.e. state, county or local sales tax) enacted in accordance with state law and not otherwise made exempt by state law. (Q) Developers extending water mains. Water mains to meet the needs of new development are primarily the responsibility of the developer and not the City of Fayetteville. Engineering, placement, size and construction of new water mains by a developer within the Johnson water service area must be inspected and approved by Fayetteville. The developer shall pay to Fayetteville the normal system wide inspection and permit fee rate for these services by Fayetteville. 6 (R) Obtaining necessary new public water/sewer easements. Johnson hereby grants to Fayetteville the right to construct, operate and own additional water facilities on or within the rights-of-way of dedicated public streets and alleys or within utility easements and other passageways. Fayetteville shall not construct or lay a water main across private property unless Johnson and/or the owners of such private property shall furnish to Fayetteville an executed easement by the owners of such property giving and granting to Fayetteville the right to construct, lay and maintain such water main across the private property. These easements shall be on forms as prescribed by Fayetteville. The form of such easements and their provisions or deeds shall show Fayetteville as the Grantee. In order to facilitate required improvements, Johnson agrees to cooperate with Fayetteville and assist in obtaining authority to cross private property with water mains. Johnson agrees to participate in any necessary eminent domain actions regarding property within the corporate limits of Johnson if Fayetteville so requests. Johnson further agrees it will not unreasonably impair, hinder or delay the obtaining of such easements or the construction of such required improvements. Johnson agrees that it will offer its full support to accomplish such improvements and obtain necessary easements. (S) Backflow prevention. Backflow prevention is necessary to protect the public water supply. Fayetteville shall be responsible for any determinations relating to which customers may need backflow prevention on their plumbing system. All such systems will be subject to Fayetteville's plan approval, inspection criteria, etc. Each customer that is required to install a backflow prevention assembly shall install and maintain the backflow assembly in accordance with the ordinances, rules and regulations of the City of Fayetteville (T) Water conservation. Johnson covenants and agrees that it will adopt an ordinance that provides enforcement of any necessary and mandatory water conservation measures proclaimed by the Mayor of Fayetteville that may become necessary due to an emergency resulting from limited supply of raw water, water treatment interruptions, failure of distribution system, pumping equipment, plant equipment, electrical facilities, or from any other source. (U) Fire hydrants. Without warranting their capacity to provide sufficient water for fire fighting, Fayetteville will allow the current fire hydrants connected to its distribution system within its water service area within Johnson to remain and will provide maintenance for those fire hydrants. Fayetteville will allow additional fire hydrants to be placed within its water service area in Johnson where feasible and practical. Fayetteville will provide maintenance of these fire hydrants. Fayetteville will furnish unmetered 7 (free) water service for the Johnson Fire Department at each fire hydrant for emergency fire protection purposes only. Non -emergency water from fire hydrants must be metered and shall be billed to the user. Fire hydrant meter installations must comply with the ordinances, rules and regulations of the City of Fayetteville. Fire hydrant meters can be obtained from the Fayetteville Meter Division. (2) NOTICES: Any written notices provided for herein shall be sufficient if hand -delivered or sent by certified mail, return receipt requested, postage prepaid, to the respective Mayor of the City. (3) COMPLETE AGREEMENT: It is agreed that neither city hereto is relying upon any oral or written information made by the other prior to the signing of this contract unless expressly provided herein, and that this contract constitutes the entire agreement between the City of Johnson and the City of Fayetteville and the contract shall not be hereafter amended or modified unless reduced to writing, approved by both City Councils and signed by the Mayors. (4) SEVERABILITY: If any phrase, clause, sentence or paragraph of this contract shall be declared invalid by the Judgment or decree of a court of competent jurisdiction, such invalidity shall not affect any of the remaining sentences or paragraphs of this contract and this contract shall remain in effect. (5) SOVEREIGN IMMUNITY: Nothing in this contract shall be construed to waive or limit the sovereign immunity enjoyed by both cities. Any provision that could be interpreted as a waiver or limitation of either city's sovereign immunity is expressly rejected and invalidated to the extent of such waiver or limitation. Nothing in this contract shall be construed as creating a partnership or joint venture between the City of Johnson and the City of Fayetteville for the provision of water services. IN WITNESS WHEREOF, the Mayor and City Recorder/Treasurer of the City of Johnson, Arkansas, by authority of a resolution adopted by the City Council of the City of Johnson, Arkansas and the Mayor and City Clerk/Treasurer of the City of 8 Fayetteville, Arkansas, by authority of a resolution adopted by the City Council of the City of Fayetteville, Arkansas, have herunto set their hand and caused the corporation seal to be affixed and dated this the / 7-- day of iuly, 2010. CITY OF JOHNSON, ARKANSAS M OR LONNIE BARRON � ATTEST: lid :f lr�� FER City Re• order/Treasurer 9 CITY OF FAYETTEVILLE, ATTEST: SONDRA E. SMITH City Clerk/Treasurer vow !II!• 4C-'‘‘\-‘!:°c1\-[Y'.(1.10,C43•6' • •cam' FAYETTEVILLE; o �y •s Co • 5,; NSP• o • • • • • _Enhanced Water Service Area 1 Johnson City Limits Fayetteville City Limits AGENDA REQUEST FOR: COUNCIL MEETING OF JUNE 15, 2010 FROM: KIT WILLIAMS, CITY ATTORNEY ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution To Approve A 15 Year Contract For Enhanced Water Service Between Fayetteville And Johnson APPROVED FOR AGENDA: Kit Williams, City Attorney gens, Utilities Director Date Date 7-6/10 l0 -k)etA ot_ Paul Becker, Financial Director Don Marr, Chief of Staff c Date Date / Lioneld J • • - , Mayor Date FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE 11 (,AEDE+PARIMEN1' TO: Lioneld Jordan, Mayor City Council CC: Don Marr, Chief of Staff David Jurgens, Utilities Director FROM: Kit Williams, City Attorney DATE: May 26, 2010 RE: 15 Year Contract for Enhanced Water Service between Johnson and Fayetteville Fayetteville already has a contractual duty (with the Beaver Water District) to supply domestic water to its water service area which includes most of the City of Johnson south of Clear Creek. Supplying "domestic water" does not mean supplyingfire flow"water which requires mains,storage or pumping. Utilities "'water substantially larger distribution Director David Jurgens has informed the Water and Sewer Committee and City Council that our existing water mains and water distribution system have current capacity for "enhanced" water service within Johnson. The flow and pressure at some existing fire hydrants in Johnson may be sufficient to provide some fire fighting capability. This contract intends to assure Johnson that Fayetteville will not purposefully degrade this enhanced flow and pressure although serving new customers and development may lower potential pressure and especially flow from a fire hydrant. Fayetteville does not assure Johnson that it will maintain the current enhanced water service nor expend resources for larger mains, new storage facilities or pumps to keep or restore the current level of enhanced water service. Please read section (B) Water services in the water contract for a more precise description of what we are proposing in relation to "enhanced" water service. This proposed contract was unanimously approved at the Water and Sewer Committee meeting on May 25th, but may need minor modifications before final approval by the City Council. Like the proposed Sewer Contract, this Enhanced Water Contract should be discussed, but then tabled at your June 15th meeting and then considered for passage at your July 6th meeting when David Jurgens can answer any of your questions. Please see my memo with the Sewer Contract for further information. RESOLUTION NO. A RESOLUTION TO APPROVE A 15 YEAR CONTRACT FOR ENHANCED WATER SERVICE BETWEEN FAYETTEVILLE AND JOHNSON WHEREAS, Fayetteville owns and operates a public water system consisting of water mains, some of which are located within the corporate limits of the City of Johnson, Arkansas, and water storage facilities and pumps with sufficient capacity to treat current and foreseeable water flows needed for its corporate city limits as well as Johnson, and other out-of-town customers; and WHEREAS, Fayetteville has provided water service to customers in Johnson for many years, and has now been requested by the City of Johnson to provide enhanced water service for its citizens within the Fayetteville water service area; and WHEREAS, Johnson and Fayetteville desire to enter into an agreement whereby Fayetteville will provide access to enhanced water service on an individual basis to its water mains for customers in the City of Johnson who are within Fayetteville's water service area; and, WHEREAS, all new customers of the Fayetteville water service and public water and treatment system are responsible to pay the system wide water and wastewater impact fee to ensure new development that increases demand upon the water and wastewater system will bear its proportionate share of necessary improvements caused by increasing demand; and WHEREAS, it is to the mutual advantage of Johnson and Fayetteville and their citizens to enter into an agreement for Fayetteville to own, operate and maintain a water distribution system within Fayetteville's water service areas of the City of Johnson freely utilizing street and alley rights of way and easements to provide enhanced water service where feasible and practical to Johnson citizens and thereby protecting the public health and maintaining the quality of life desired by citizens of Johnson; and WHEREAS, the cities and their citizens will be benefitted by establishing a procedure and framework for future expansion and improvements to Fayetteville's water system in the City of Johnson. Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the fifteen year Contract For Enhanced Water Service between the cities of Johnson and Fayetteville attached as Exhibit A and authorizes Mayor Jordan to execute this Contract upon its approval by the Johnson City Council and signature by Mayor Lonnie Barron and the approval of all other pending contracts between Johnson and Fayetteville and the ordinance for the simultaneous detachment and annexation into Fayetteville of the agreed 99 acre parcel by the Johnson City Council and signature by Mayor Barron PASSED and APPROVED this 6' day of July, 2010. APPROVED: ATTEST: By: By: LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer CONTRACT FOR ENHANCED WATER SERVICE BETWEEN THE CITIES OF JOHNSON, ARKANSAS AND FAYETTEVILLE, ARKANSAS THIS CONTRACT is made and entered into this day of July, 2010, by and between the City of Fayetteville, Arkansas, a municipal corporation, hereinafter referred to as "Fayetteville", and the City of Johnson, Arkansas, a municipal corporation, hereinafter referred to as "Johnson". WHEREAS, Fayetteville owns and operates a public water system consisting of water mains, some of which are located within the corporate limits of the City of Johnson, Arkansas, and water storage facilities and pumps with sufficient capacity to treat current and foreseeable water flows needed for its corporate city limits as well as Johnson, and other out-of-town customers; and WHEREAS, Fayetteville has provided water service to customers in Johnson for many years, and has now been requested by the City of Johnson to provide enhanced water service for its citizens within the Fayetteville water service area; and WHEREAS, Johnson and Fayetteville desire to enter into an agreement whereby Fayetteville will provide access to enhanced water service on an individual basis to its water mains for customers in the City of Johnson who are within Fayetteville's water service area; and, WHEREAS, all new customers of the Fayetteville water service and public water and treatment system are responsible to pay the system wide water and wastewater impact fee to ensure new development that increases demand upon the water and wastewater system will bear its proportionate share of necessary improvements caused by increasing demand; and WHEREAS, it is to the mutual advantage of Johnson and Fayetteville and their citizens to enter into an agreement for Fayetteville to own, operate and maintain a water distribution system within Fayetteville's water service areas of the City of Johnson freely utilizing street and alley rights of way and easements to provide enhanced water service where feasible and practical to Johnson citizens and thereby protecting the public health and maintaining the quality of life desired by citizens of Johnson; and WHEREAS, the cities and their citizens will be benefitted by establishing a procedure and framework for future expansion and improvements to Fayetteville's water system in the City of Johnson.