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HomeMy WebLinkAbout134-15 RESOLUTIONRESOLUTION NO. 134-15 A RESOLUTION TO EXPRESS THE CITY COUNCIL'S AGREEMENT THAT THE CITY SHOULD FACILITATE THE CONSTRUCTION AND FINANCING OF A WATER MAIN ALONG HABBERTON ROAD BY ACCEPTING DEBT SERVICE PAYMENTS AS PART OF THE CUSTOMERS' WATER BILLS AND REMITTING THOSE PAYMENTS TO THE FINANCING ENTITY WHEREAS, more than a dozen residences and a church along Habberton Road would like to have Fayetteville water, but would need to build and pay for a water main along Habberton Road to the existing city main along Highway 45 for such water service; and WHEREAS, these potential water customers are all within the Fayetteville Water District and entitled to our city water if a water main is extended to their properties; and WHEREAS, the estimated cost of this water main would be about $100,000.00 and can be financed by Community Resource Group which administers the CRG Loan Fund for Water and Wastewater lending; and WHEREAS, the proponents of this financing plan have agreed to secure the signed agreements of the residents of Habberton Road who desire to pay for and receive the benefits of the new water main to provide clear authority for the City of Fayetteville to collect not only the normal water bill fees, but an additional debt services payment from each customer. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby expresses agreement that the City should facilitate the construction and financing of a water main along Habberton Road by accepting debt service payments as part of the customers' water bills and remitting those payments to the financing entity. PASSED and APPROVED this 4h day of August, 2015. A PPR (1'\IFT) ATTFCT- `������RK,� TRF Bio y'\CY ()NDRA E. SMITH, City Clerk Treasurer , ; •�,�, =0; FAYETTEVILLE'�= ' kA N S § uutt City of Fayetteville, Arkansas 113 West Mountain Street _ Fayetteville, AR 72701 8 (479) 575-8323 .. Text File File Number: 2015-0327 Agenda Date: 8/4/2015 Version: 1 Status: Agenda Ready In Control: City Council Meeting File Type: Resolution Agenda Number: A. 9 HABBERTON ROAD WATER MAIN CONSTRUCTION A RESOLUTION TO EXPRESS THE CITY COUNCIL'S AGREEMENT THAT THE CITY SHOULD FACILITATE THE CONSTRUCTION AND FINANCING OF A WATER MAIN ALONG 1 ABBERTON ROAD BY ACCEPTING DEBT SERVICE PAYMENTS AS PART OF THE CUSTOMERS' WATER BILLS AND REMITTING THOSE PAYMENTS TO THE FINANCING ENTITY WHEREAS, more than a dozen residences and a church along Habberton Road would like to have Fayetteville water, but would need to build and pay for a water main along Habberton Road to the existing city main along Highway 45 for such water service; and WHEREAS, these potential water customers are all within the Fayetteville Water District and entitled to our city water if a water main is extended to their properties; and WHEREAS, the estimated cost of this water main would be about $100,000.00 and can be financed by Community Resource Group which administers the CRG Loan Fund for Water and Wastewater lending; and WHEREAS, the proponents of this financing plan have agreed to secure the signed agreements of the residents of Habberton Road who desire to pay for and receive the benefits of the new water main to provide clear authority for the City of Fayetteville to collect not only the normal water bill fees, but an additional debt services payment from each customer. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the City Council of the City of Fayetteville, Arkansas hereby expresses agreement that the City should facilitate the construction and financing of a water main along Habberton Road by accepting debt service payments as part of the customers' water bills and remitting those payments to the financing entity. City of Fayetteville, Arkansas Page 1 Printed on 713012015 Legistar ID No.: dOl 5 0,3 a2'7 AGENDA REQUEST FORM FOR: Council Meeting of August 4, 2015 FROM: City Attorney Kit Williams ORDINANCE OR RESOLUTION TITLE AND SUBJECT: A RESOLUTION TO EXPRESS THE CITY COUNCIL'S AGREEMENT THAT THE CITY SHOULD FACILITATE THE CONSTRUCTION AND FINANCING OF A WATER MAIN ALONG HABBERTON ROAD BY ACCEPTING DEBT SERVICE PAYMENTS AS PART OF THE CUSTOMERS' WATER BILLS AND REMITTING THOSE PAYMENTS TO THE FINANCING ENTITY APPROVED FOR AGENDA: City Attorney Kit Williams Date OFFICE OF THE CITY ATTORNEY TO: Mayor Jordan . City Council CC: Don Marr, Chief of Staff Paul Becker, Finance Director Tim Nyander, Utilities Director FROM: Kit Williams, City Attorney Or DATE: July 15, 2015 RE: Habberton Road proposed new water main Kit Williams City Attorney Blake Pennington Assistant City Attorney Patti Mulford Paralegal Several landowners along Habberton Road within the City's water district would like to obtain access to city water. Many established houses and a church are currently using wells which are not very satisfactory. A farm on the road was recently sold and subdivided into four large lots where it is anticipated that houses will be built. Rather than spending around $15,000.00 or more to dig a well for each house, the residents would like to pool their resources to pay the costs of extending the water main along Habberton to reach a dozen or more new customers. As always, money is the primary concern. While the new house purchasers and a couple other could pay their share immediately, several others would have to pay their portion over time. Engineer Mel Milholland has priced the project (a three inch main reducing to a two inch main about half way down the new run) at around $100,000.00. Mel has had dealing with the Community Resource Group which administers the CRG Loan Fund for Water and Wastewater Lending. Jerry Kopke (4443- 2700 ext. 128) is the Arkansas State Coordinator for CRG. 1