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HomeMy WebLinkAbout47-10 RESOLUTIONRESOLUTION NO. 47-10 A RESOLUTION TO EXPRESS THE INTENTION OF THE CITY COUNCIL TO ACCEPT THE ANNEXATION OF APPROXIMATELY 99 ACRES WHEN DETACHED BY THE CITY OF JOHNSON AND TO ENTER INTO VARIOUS PROPOSALS AND AGREEMENTS WITH THE CITY OF JOHNSON WHEREAS, landowners immediately north of where the extension of Van Asche is planned from Gregg to McGuire Street have sought to detach from Johnson and be annexed into Fayetteville; and WHEREAS, the City Council of Johnson has agreed to detach and the City Council of Fayetteville has agreed to annex a portion of these landowners' parcels and portions of other parcels for a total of about 99 acres as shown on Exhibit A; and WHEREAS, at the time the simultaneous detachment and annexation pursuant to A.C.A. §14-40-21-1 is final, the Cities of Johnson and Fayetteville will enter into a comprehensive sewer contract and an enhanced water contract; and WHEREAS, the City of Fayetteville will immediately thereafter pass a Resolution not to annex any other land lying within the City of Johnson's corporate limits unless requested to be the Johnson City Council; and WHEREAS, The City of Johnson will cooperate and help the City of Fayetteville by acquiring sufficient right of way for a four lane Van Asche extension from McGuire to Highway 112 along the border of the two cities; and WHEREAS, after the simultaneous detachment and annexation of the 99 acres is final, the City of Fayetteville will pay to the City of Johnson $35,000.00 to offset Johnson's loss of sales tax revenue from existing businesses located with the 99 acres. NOW, THEREFORE 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 affirms its agreement and intent to simultaneously annex the approximate 99 acres shown on Exhibit A once the City ofJohnson has detached the acreage. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby affirms its agreement and intent to enter into a comprehensive sewer agreement with the City of Johnson for the area within our water service area and to enter into an enhanced water agreement with the City of Johnson for this area and abide by all the remaining items referred to in the Whereas clauses of this Resolution. PASSED and APPROVED this 16th day of March, 2010. APPROVED: ATTEST: Page 2 Resolution No. 47-10 SO DRA E. SMITH, City Clerk/Treasurer 1IdddoJ tdor v6)4) 4 /0 FOR: COUNCIL MEETING OF MARCH 16, 2010 AGENDA REQUEST FROM: MAYOR LIONELD JORDAN ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A Resolution To Express The Intention Of The City Council To Accept The Annexation Of Approximately 99 Acres When Detached By The City Of Johnson And To Enter Into Various Proposals And Agreements With The City Of Johnson APPROVED FOR AGENDA: Davj Jurns. Utili Th s Director 111 -S z( 0 Kit Williams Date City Attorney ( form) 4/11Y/- 7,15t,v Date as Do Marr Chief of Staff D2e 3/06) Date THE CITY OF FAYETTEVILLE, ARKANSAS ADMINISTRATION 113 West Mountain Fayetteville, AR 72701 P (479)575-8330 F (479) 575-8257 ARKANSAS www.accessfayetteville.org To: City Council From: Lioneld Jordan, Mayor Date: March 4, 2010 RE: City of Johnson AR and City of Fayetteville AR Agreement Previously, the City of Johnson, AR and Johnson City Mayor Lonnie Barron approached the administration about providing water/sewer services, and opposing the de -annexation request of land owners requesting to de -annex from the City of Johnson AR. When earlier negotiations stalled I decided to no longer proceed with any other talks and let the property owners who were requesting de -annexation and the City ofJohnson work it out among themselves. It appeared to be headed towards litigation and I felt it was important that the City of Fayetteville not be a party to either side. In January of this year, the City of Johnson City Council unanimously expressed its willingness to negotiate to de -annex a reasonable amount of land north of the proposed extension of Van Asche. The Resolution also sought to gain agreement from the City of Fayetteville to enter into sewer and water contracts. With this request, I asked City Attorney Kit Williams to represent the City of Fayetteville in negotiations that could be brought to the Mayor and City Council Members for consideration. While I have tried to keep the City of Fayetteville uninvolved in this litigation between the City of Johnson and requesting de -annexation applicants — I also desire to work to be a good neighbor to our adjourning cities. I am recommending approval of the attached Resolution which will allow the City of Fayetteville to obtain 99 acres of prime development land on the north side of the proposed new Van Asche. This new land will add future growth opportunities for sales tax in commercial and residential developments. The City of Fayetteville will in turn receive control of the design and buildout of Van Asche Drive east of 1-540. This provides additional access to our mall area, and ensures the quality of road construction and access management our citizens have come to expect. Lastly, the City of Fayetteville will provide water and sewer services to the City of Johnson. The City of Fayetteville water and sewer systems have sufficient capacity in Johnson to provide service to future developments in Fayetteville's designated service Telecommunications Device for the Deaf TDD (479) 521-1316 113 West Mountain Fayetteville, AR 72701 City of Johnson, AR. & City of Fayetteville, AR Agreement Page 2 territory that is consistent with the level currently provided to Johnson. These services can be provided in Johnson with no negative financial impact to Fayetteville citizens. Utilities Director David Jurgens has outlined in an attached memo the details of the history of services provided to the City of Johnson, AR by Fayetteville Water & Sewer Operations. His memo states clearly there will be no additional financial impact to Fayetteville Citizens. This also allows the cost of the system to be allocated to a larger customer base which spreads the entire cost of the system over a larger number of customers. It is without hesitation that I recommend to the City Council we pass this attached Resolution. If you have any questions, please don't hesitate to contact me, the City Attorney my Chief of Staff, or the Utilities Director David Jurgens. M. - Mayor Lione ordan RESOLUTION NO. A RESOLUTION TO EXPRESS THE INTENTION OF THE CITY COUNCIL TO ACCEPT THE ANNEXATION OF APPROXIMATELY 99 ACRES WHEN DETACHED BY THE CITY OF JOHNSON AND TO ENTER INTO VARIOUS PROPOSALS AND AGREEMENTS WITH THE CITY OF JOHNSON WHEREAS, landowners immediately north of where the extension of Van Asche is planned from Gregg to McGuire Street have sought to detach from Johnson and be annexed into Fayetteville; and WHEREAS, the City Council of Johnson has agreed to detach and the City Council of Fayetteville has agreed to annex a portion of these landownersparcels and portions of other parcels for a total of about 99 acres as shown on Exhibit A; and WHEREAS, at the time the simultaneous detachment and annexation pursuant to A.C.A. §14-40- 21-1 is final, the Cities of Johnson and Fayetteville will enter into a comprehensive sewer contract and an enhanced water contract; and WHEREAS, the City of Fayetteville will immediately thereafter pass a Resolution not to annex any other land lying within the City of Johnson's corporate Ihnits unless requested to be the Johnson City Council; and WHEREAS, The City of Johnson will cooperate and help the City of Fayetteville by acquiring sufficient right of way for a four lane Van Asche extension from McGuire to Highway 112 along the border of the two cities; and WHEREAS, after the simultaneous detachment and annexation of the 99 acres is final, the City of Fayetteville will pay to the City of Johnson $35,000.00 to offset Johnson's loss of sales tax revenue from existing businesses located with the 99 acres. NOW, THEREFORE 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 affirms its agreement and intent to simultaneously annex the approximate 99 acres shown on Exhibit A once the City ofJohnson has detached the acreage. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby affirms its agreement and intent to enter into a comprehensive sewer agreement with the City ofJohnson for the area within our water service area and to enter into an enhanced water agreement with the City of Johnson for this area and abide by all the remaining items referred to in the Whereas clauses of this Resolution. PASSED and APPROVED this 16th day of March, 2010. APPROVED: ATTEST: By: By LIONELD JORDAN, Mayor SONDRA E. SMITH, City Clerk/Treasurer ettuille CITY COUNCIL AGENDA MEMO MEETING DATE OF MARCH 16, 2010 THE CITY OF FAYETTEVILLE, ARKANSAS ARKANSAS www.accessfayetteville.org To: Fayetteville City Council Thru: Mayor Lioneld Jordan Don Marr, Chief of Staff 9 From: David Jurgens, Utilities Director Date: March 2, 2010 Subject: Water and Sewer Capacity in Johnson S rvice Area CONCLUSION The City of Fayetteville water and sewer systems have sufficient capacity in Johnson to provide service to future developments in Fayetteville's service territory that is consistent with the level currently provided in Johnson. Water and sewer services in Johnson can be provided with no negative financial impact to Fayetteville citizens. BACKGROUND > First water service in Johnson was provided when Fayetteville used Clear Creek as a water supply around 1906. > First sewer service was provided in 1989 to two subdivisions, one off Highway 112 and one off Wilkerson Street. > For both water and sewer operations, Johnson customers are treated exactly like Fayetteville customers. They are direct retail customers of the City of Fayetteville. They receive their utility bills directly from Fayetteville. > Proposed developments must go through the Fayetteville development process. Construction must meet Fayetteville's standards. > At this time, water is provided for all developments up to the dividing line between the Fayetteville and Springdale water systems. Generally this dividing line follows Clear Creek. This line was established by agreement when the Beaver Water District was established in the 1960's. At this time, sewer service to new development in Johnson must be specifically approved by the Fayetteville City Council. Individual connections to existing mains in Johnson are made as they are within Fayetteville. > Johnson customers requesting new connections are charged impact fees identical to Fayetteville customers. DISCUSSION The City of Fayetteville water and sewer systems have sufficient capacity in Johnson to provide service that is consistent with the level currently provided. Water There is a 36" water transmission main in northern Fayetteville very close to southern Johnson that has ample capacity for normal development in the area that developments can tie to that will meet whatever requirements will be generated. Normal development review procedures must be followed under any circumstances. Sewer There is a 48" sewer transmission main that flows through northern Fayetteville close to and downhill from most of southern Johnson that has ample capacity for normal development in the entire drainage basin. Sewer mains can be connected to this to provide capacity to developments in these areas without restricting Fayetteville's capacity. Normal development review procedures must be followed under any circumstances. BUDGET IMPACT Water and sewer rates are established based on the actual cost of service based on the type of customer receiving the service. Johnson water and sewer rates are the "outside city" rate, which is a higher rate than is charged within the city limits of Fayetteville. Johnson customers are required to pay impact fees identical to Fayetteville customers. Thus, water and sewer services in Johnson can be provided with no negative financial impact to Fayetteville citizens. Telecommunications Device for the Deaf TDD (479) 5211316 113 West Mountain - Fayetteville, AR 72701 FAYETTEVILLE THE CiTY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY ATTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: Lioneld Jordan, Mayor City Council Sondra Smith, City Clerk CC: Don Marr, Chief of Staff David Jurgens, Utilities Director FROM: Kit Williams, City Attorney DATE: March 11,2010 RE: City of Johnson Resolution No. 2010-4 II - Attached please find the Passed, Approved and Signed Resolution from the City of Johnson expressing its intent to detach 99 acres and enter into water and sewer contracts with us. This was passed unanimously on March 9, 2010. If the Fayetteville City Council passes its Resolution of Intent similar to Johnson's, then I will begin working with Johnson City Attorney Danny Wright on the agreements and detachment/annexation ordinances necessary to carry out your Resolution. I will consult frequently with Mayor Jordan to ensure he is satisfied with the terms of any agreement before anything will be presented for your consideration. I will also work with David Jurgens in the drafting of the water and sewer contracts. If you have any questions, please do not hesitate to ask me. RESOLUTION NO. A RESOLUTION EXPRESSING THE INTENT AND DESIRE OF THE JOHNSON CITY COUNCIL TO ENTER INTO AGREEMENT WITH THE CITY OF FAYETTEVILLE FOR WATER AND SEWER SERVICES TO SOUTH JOHNSON AND WHEREBY A PORTION OF SOUTH JOHNSON WILL BE DEANNEXED FROM JOHNSON AND ANNEXED TO THE CITY OF FAYETTEVILLE AND WHEREBY THE CITIES OF JOHNSON AND FAYETTEVILLE AGREE TO ONLY ALLOW FUTURE ANNEXATION OF LANDS FORMERLY WITHIN THE OTHER CITY WITH CONSENT AND APPROVAL OF CITY COUNCIL OF THE OTHER CITY. WHEREAS, one or more property owners of lands in south Johnson desire to deannex from the City of Johnson and annex into the City of Fayetteville. WHEREAS, one of those property owners has filed a lawsuit seeking to have the Court declare their right to deannex from Johnson and annex into Fayetteville. WHEREAS, the City of Johnson desires to negotiate and enter into a contract with the City o Fayetteville whereby Fayetteville would provide potable water and sanitary sewer services to the area of Johnson south of Clear Creek in accordance with the agreement between the City of Fayetteville and Beaver Water District. WHEREAS, the City of Johnson, the City of Fayetteville and the parties to the aforementioned lawsuit all desire to resolve these issues by compromise and agreement. BE IT RESOLVED BY THE CITY COUNCIL OF JOHNSON, ARKANSAS, That: Section 1: That the City Council intends to authorize, by ordinance or otherwise, to allow approximately 99 acres of and to deannex from the City of Johnson and annex into the City of Fayetteville pursuant to the attached map. Section 2: That concurrent with the foregoing, the City shall enter into a contract for the City of Fayetteville to provide potable water (for household and municipal uses) along with sanitary sewer services to residents, citizens and developers in Johnson where the property lies south of Clear Creek (excepting those areas served by Springdale) with development/infrastructure requirements substantially in accord with similar utility uses in Fayetteville and rates equivalent with other non resident Fayetteville customers in Johnson. Section 3: That Johnson will enter into an agreement, by ordinance or otherwise, which will provide that neither Johnson nor Fayetteville will hereafter accept a request/petition Municipal/coj Deannexation Resolution 030210 for annexation of lands that were formerly within the city limits of the other city unless the City Council of both cities are in agreement with the process and procedure. Section 4: That the aforementioned deannexation/annexation process will result in an easily discernable boundary between Johnson and Fayetteville, and that wherever that boundary involves a public street clear responsibility for police patrol, maintenance and repair of such street shall be set forth. Section 5: That an agreement shall be prepared and executed between the City of Johnson and the City of Fayetteville which provides that emergency response by the Johnson police and fire departments shall be allowed to run in emergency mode across existing and future streets and ways within Fayetteville which connect Gregg Street/Ball Street to Maguire Street. Section 6: The Council will consider entering into an agreement with Fayetteville to provide for a sale of certain land which was acquired from David McClinton in an action for eminent domain in 2009(same and except any portion lying in the right of way of Maguire Street) for the price paid by the City of Johnson; at the time of the deannexation/annexation process the City of Johnson agrees to accept a one-time payment from Fayetteville of $35,000.00 to offset the loss of future sales tax revenues in the subject area. Section 7: That at such time as Fayetteville extends Van Asche from Gregg Street west to Hwy. 112, the City of Johnson will cooperate with Fayetteville concerning the necessary right of way within the City of Johnson from Maguire Street to Hwy. 112. PASSED AND APPROVED this d'day of March, 2010. Municipal/coj Deannexation Resolution 030210 LONNIE BARRON, Mayor FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS KIT WILLIAMS, CITY A'TTORNEY DAVID WHITAKER, ASST. CITY ATTORNEY DEPARTMENTAL CORRESPONDENCE LEGAL DEPARTMENT TO: City Council CC: Lioneld Jordan, Mayor FROM: Kit Williams, City Attorney_ _ DATE: March 3, 2010 RE: Resolving issues of land along and north of the Van Asche extension The City Council approved the Street Committee's plans to provide an "interior bypass" from Highway 62 to the Northwest Arkansas Mall by connecting Rupple Road from Highway 62 to Highway 112 and then directly east by extending Van Asche Boulevard to Gregg Street. This would provide not only much improved interior traffic movement for our citizens, but an important, comfortable and easy access to the Northwest Arkansas Mall area without having to use 1-540. The "fly in the ointment" of this plan was the fact that the City of Johnson's city limits would come all the way down to this multimillion dollar road project being paid by Fayetteville from 1-540 to Gregg Avenue. Recognizing this unfair situation in which Fayetteville would be investing millions of dollars to build a beautiful boulevard that would make land within Johnson accessible and developable, the Fayetteville City Council passed Resolution No. 72-08 on March 18, 2009, which stated that extension of Van Asche Boulevard could be paid by our Transportation Bond Program funds only after the land north of this extension was annexed into the City of Fayetteville. I have attached this Resolution as well as Resolution No. 76-08 passed on April 1, 2008 with a Memo of Understanding that this annexed land would eventually be zoned industrial or commercial when development occurs. Former Director of Operations Gary Dumas attempted long negotiations with Johnson City Officials to arrive at an agreed simultaneous detachment and annexation. Unfortunately, his negotiations which would have brought hundred of acres of what is now the City of Johnson into the City of Fayetteville and promised extensive road building (beyond the extension of Van Asche) were never successful. An initial extension of a neighborly hand by Mayor Jordan when he first took office was also rebuffed. It appeared that the City of Johnson preferred to fight it out in Court with the landowners who eventually filed suit to deannex from Johnson which could not provide sewer or enhanced water service necessary for substantial commercial development. This case is set for trial in May. The attorneys for the landowners who were attempting to deannex from Johnson and annex into Fayetteville approached me last fall to see if there was any possibility to resolve this city limits issue by joint agreement between Johnson and Fayetteville. I explained that I had no authority to speak for the City of Fayetteville on this issue and that the Mayor and City Council would have to approve any possible agreement. However, I did speak with administration officials and then worked with our GIS department to come up with the map showing the movement of our city limits north about 1,250 feet into what is now Johnson. This approximately 99 acres should provide sufficient development potential (and sales tax return to Fayetteville) when the Van Asche Boulevard extension is built in compliance with your Resolution No. 72-08. This map along with a proposal drawn up by the landowners' attorneys was provided to the Johnson City Attorney by letter of November 10, 2009 (copy enclosed). In January of this year, the Johnson City Council unanimously expressed its willingness (I believe for the first time) to negotiate to deannex a reasonable amount of land north of the proposed extension of Van Asche if the City of Fayetteville would enter into sewer and water contracts. With this favorable turn of events, the landowners' attorneys asked to set up a meeting with them, Johnson City Attorney Danny Wright, their hired outside counsel Tom Kieklak, and me. We all met in Tom Overbey's office on February 9, 2010 for a couple of hours. I reported the results of this meting to Mayor Jordan and Chief of Staff Marr. All agreed that similar Resolutions of intent to proceed with the proposed simultaneous detachment and annexation, sewer contract, water contract, and other parts of the proposal would be needed to be passed by both City Councils before we could proceed further. We also agreed that the City of Johnson City Council should pass its Resolution on March 9th so the Fayetteville City Council would know Johnson's position before it considered its Resolution on March 16th. 2 The City of Johnson desires that we purchase the land Johnson condemned for a sewer line and lift station (.77 acres for $68,000.00) which probably lies within the right-of-way for the extension of Van Asche. We may have to make this purchase as well as pay the $35,000.00 for the loss of sales tax Johnson will suffer. CONCLUSION When I supplied the map showing our city limits moving north into the city of Johnson by about 1,250 feet (99 acres) to the landowners' attorneys, I expressly informed them that the map did not have the final approval of Mayor Jordan. I also informed them that I was certain that this map represented the least amount of increased city limits that could be acceptable to the Mayor and City Council. I was informed by David Jurgens during negotiations that our City had properly sized mains and sufficient capacity in place to enable water and sewer service to our water service area in Johnson without further expense to Fayetteville rate payers. I believe what I have presented and Mayor Jordan has recommended for your approval conforms to the City Council's intentions and goals stated within Resolution No. 72-08 as well as numerous City Council Street Committee meetings and other City Council meetings on the Transportation Bond Program. I believe it is better to resolve issues amicably with our sister cities. I am glad at least this proposed resolution to the Van Asche expansion/city limits issues can now be considered by you. I join Mayor Jordan's recommendation for approval. 3 RESOLUTION NO. 72-08 A RESOLUTION APPROVING THE USE OF EXISTING TRANSPORTATION BOND PROGRAM FUNDS TO PROCEED WITH THE VAN ASCHE BOULEVARD EXTENSION TO THE WEST OF GREGG AVENUE UPON FORMAL ACCEPTANCE OF AN ANNEXATION FROM THE ADJOINING PROPERTY OWNER WG LAND COMPANY LIMITED PARTNERSHIP. 13E 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 the use of existing Transportation Bond Program funds to proceed with the Van Asche Boulevard Extension to the west of Gregg Avenue. Section 2. That this project shall not proceed until such time as the adjoining property, owned by WG Land Company Limited Partnership, is formally annexed into the City of Fayetteville. z...,, . _„. ...... z... •,..:. ,...0 e •C'f. r. m 1,73f. E APPROVED: :FAYETTEVILLE• I Ti.. • - By: I if '"'L DAN COODY, Mayor '.°%Ye:°14)/( 1),S •"' z.i. 1%/5'61,* • 4 1: 0, • (-)'\ 11 SONDRA E. SMITH, City Clerk/Treasurer PASSED and APPROVED this 18th day of March, 2008. ATTEST: By: RESOLLJTION NO. 76-08 A RESOLUTION APPROVING A MEMORANDUM OF UNDERSTANDING CONCERNING ANNEXATION AND ZONING OF CERTAIN REAL PROPERTY WITH WG LAND COMPANY LTD. PARTNERSHIP. 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 a Memorandum of Understanding concerning annexation and zoning of certain real property with WG Land Company Ltd. Partnership. A copy of the Memorandum, marked Exhibit A is attached hereto and made a part hereof. PASSED and APPROVED this V day of April, 2008. APPROVED: ATTEST: By: DAN COODY, ayor FROM : PG2 FAX MO. : 4795216166 Feb. 12 2009 02:46PM 41 Memorandutn of Understanding This Memorandum of Understanding, made and entered into this _IL day of April, 2008, by and between the City of Fayetteville, Arkansas, a municipal corporation, 113 W. Mountain, Fayetteville, Arkansas, and WO Land Company Ltd. Partnership, 3335 North College Avenue, Fayetteville, Arkansas WO Land Company Ltd. Partnership agrees to seek de -annexation of its real property abutting the proposed Van Asche Boulevard Extension from the City of Johnson once the proposed street extension is funded and scheduled for construction by the City of Fayetteville. In return, the City of Fayetteville agrees to annex the real property adjacent to the proposed Van Asche Boulevard Extension with the following understandings: That the property will be annexed into the City of Fayetteville as an RYA Zoning District, and will remain so until actual deVelopmc.-nt and construction of future improvements is cornmeneed; 2 That as the property is brought into development, the portion of the property north of the proposed Van Asthe Boulevard Extension shall be re -zoned to an Industrial Zoning District consistent with its use for warehousing and cold storage; and, 3 That as the property is brought into development, the portion of the property south of the proposed Van Asehe Boulevard Extension shall be re -zoned to a Commercial Zoning District. CITY OF FAYETTEVILLE: By: DAN COODY, Mayor ATTEST: By: SONDRA E.SMITH, City Clerk/Treasurer 6 EFAYETTEVILLErl ca • A- 4- • irAN5\"-.' 3/°11?-A::P.: WC LAND COMPANY LTD. PARTNERSHIP By:-(0t4J' ROBERT G. VVHITETELD, Gen 1115)MAS 1.. °VERNEY 55.5,05v5INS ANERICAN ODITTINK TRUST TANATli [TRUNK, 00E50502 ORAIIAM MCLANIIi 1. STRITIIII. CRAIG WESTBROOK LAURIE 0.11001) OVERBEY, GRAHAM, STRIGEL & WESTBROOK, PLC ATFORNEYS AT LAW 211 NOILI II COLLEGE AVENUE FAY171TEVILLE, ARKANSAS 72701-4238 TO: Thomas N. Kieklak tkieklak(a)arkansaslaw.com FACSIMILE (50))210.2992 TELEPHONE' (479) 442.3554 www.opw.com Danny Wright wrightandbakerlaw(@sbcgtobal.net FROM: Tom Overbey RE: WG LAND LIMITED PARTNERSHIP vs. City of Johnson Washington Circuit No. CV 2009-2781-6 DATE: November 10, 2009 Ltrrui Roo< OITICE SEARCY 0011.01951.003r3,310 10809 EXECUTIVE OK ILK DRIVE LI 111.1. 2008, ARKANSAS 72211 (501) 664.8105 EMAIL:WAIN/CYO 01 /SV1.51.28.1 10115107 HNC 15011 202,071 We have had discussions regarding resolving this matter but I was not sure that everything had ever been put down in one proposal. We know that you are confidant in your side of the case, just as we are in ours. However, we wanted to communicate the proposal in writing to give everyone an opportunity to give resolution by agreement another chance before the case gets more and more involved for everyone. This discussion is not dependent on the results of the upcoming hearing. And this obviously would require approval from the appropriate officials of the City of Fayetteville and the City of Springdale and the other landowners. There seems to be many reasons for the City of Johnson to favorably consider the proposal. The City of Johnson would not have to worry about water or sewer issues again for these areas. Other landowners would not be able to seek deannexation based on lack of these services. It may not even be possible for the City of Johnson to provide the necessary fire protection water services in this service area. The sewer service is even more problematic with the phosphorous limits now being imposed for all sewer facilities in the Illinois River watershed. There are difficult and expensive technical issues in providing sewer service that would meet the current standards. If representatives of Oklahoma interests opposed the City of Johnson in a permitting process, approval would be even more problematic. The City of Fayetteville has the sewer capacity to add these areas and will be dealing with the standards issue for its sewer plants already. We would be available to meet with you on this proposal as needed. cc: John Eldridge PROPOSAL 1. The land of WG Land Company and David McClinton south of the line drawn on the attached map would be brought into the City of Fayetteville. 2. The and between Ball Street and Gregg Avenue owned by APAC, Tune, and the one acre on the corner previously used as an electrical substation drawn on the attached map would be brought into the City of Fayetteville. 3. The City of Fayetteville would enter into a formal agreement with the City of Johnson with respect to sewer services for all land included in the city limits of the City of Johnson south of Clear Creek. This would clearly divide all sewer service between the City of Fayetteville and the City of Springdale to serve these areas. 4. In addition, there would be a contract with respect to a higher level of water service than is currently being provided by the City of Fayetteville to the City of Johnson for the water service area allocated to the City of Fayetteville by the Beaver Water District. 5. Sewer and water would be provided and billed by same entity — City of Fayetteville or City of Springdale based on the division along Clear Creek. 6. These actions would be taken under ACA §14-40-2101. 7. The City of Fayetteville would pass a resolution to not accept other land from the City of Johnson territory unless the City of Johnson consented. 8. The City of Johnson would publicly endorse the proposed settlement before being brought before the council for the City of Fayetteville,