15614615
ORDINANCE NO. 15,614
AN ORDINANCE APPROVING A CONTRACT BETWEEN
THE CITY OF LITTLE ROCK AND THE CITY OF
SHANNON HILLS AND SHANNON HILLS WATER,
SEWER AND FIRE PROTECTION IMPROVEMENT
DISTRICT NO. 3 FOR THE TREATMENT OF SEWAGE
WHEREAS, the City of Little Rock, Arkansas owns a sewage
disposal works and operates said work through the Little Rock
Sanitary Sewer Committee ("the Sewer Committee ") and the Little
Rock Wastewater Utility (the "Utility ") and the City of Little
Rock is authorized to contract with another city or political
subdivision to provide sewage treatment for that entity to the
extent of the capacity of the sewage disposal works without
impairing the usefulness of said works to the owners upon such
terms and conditions as may be fixed by the Sewer Committee and
approved by ordinance of the respecting contracting parties; and
WHEREAS, the Shannon Hills Water, Sewer and Fire Protection
Improvement District No. 3 ( "S.I.D. No. 3 ") owns and operates a
certain sewage collection system within the City of Shannon
Hills and this system is not adequate or satisfactory to treat
the sewage; and
WHEREAS, the City of Shannon Hills is the holder of a
conditional assignment of S.I.D. No. 3 to transfer all of the
property of the improvement district to the City of Shannon
Hills after the re- payment of all capital indebtedness of
S.I.D. No. 3; and
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WHEREAS, it is in the best interest of the City of Shannon
Hills and S.I.D. No. 3 (both referred to hereafter as "Shannon
Hills ") to enter into an agreement with the City of Little Rock
for the treatment of sewage upon such terms and conditions as
may be fixed by the Sewer Committee and approved by ordinance
of the respective contracting parties; and
WHEREAS, the City of Little Rock and Shannon Hills desire
to enter into a certain contract pursuant to law for a period
not to exceed 15 years and said contract is attached hereto; and
WHEREAS, the treatment of sewage in accordance with said
contract will not impair the usefulness of the sewage disposal
works owned by the City of Little Rock, and the City of Little
Rock, by its City Board of Directors, desires to enter into
said contract and authorize the Mayor, City Clerk, Sewer
Committee and the Manager of the Utility to execute said
contract; and
WHEREAS, the provisions of A.C.A. §14- 235 -212 require
approval by ordinance of the respective contracting parties and
the Sewer Committee has recommended approval of the contract
for treatment of the sewage in accordance with the provisions
of said contract;
NOW, THEREFORE, BE IT ORDAINED by the Board of Directors of
the City of Little Rock, Arkansas:
SECTION 1. That the contract between the City of Little
Rock and Shannon Hills for the treatment of the sewage from
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Shannon Hills by the sewage disposal works owned by the City of
Little Rock is hereby approved, subject to the terms of the
contract, a copy of which is attached hereto. The Mayor, the
City Clerk, the Chairman of the Sewer Committee and the Manager
of the Little Rock Wastewater Utility are authorized to execute
the contract.
SECTION 2. That since the contract approved by this
ordinance is of great importance to the health and welfare of
the citizens of the City of Little Rock, an emergency is hereby
declared to exist and this ordinance shall be in full force and
effect from and after its passage and approval.
PASSED: December 20 1988.
ayor Lot ie Shackelford
ATTEST:
C &y Clerk zech
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Shannon Hills by the sewage disposal works owned by the City of
Little Rock is hereby approved, subject to the terms of the
contract, a copy of which is attached hereto. The Mayor, the
City Clerk, the Chairman of the Sewer Committee and the Manager
of the Little Rock Wastewater Utility are authorized to execute
the contract.
SECTION 2. That since the contract approved by this
ordinance is of great importance to the health and welfare of
the citizens of the City of Little Rock, an emergency is hereby
declared to exist and this ordinance shall be in full force and
effect from and after its passage and approval.
PASSED: December 20 1988.
ayor Lot ie Shackelford
ATTEST:
C &y Clerk zech
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Agreement
THIS AGREEMENT made on this _ day of , 1988,
by and between the City of Little Rock, Arkansas, the Sanitary
Sewer Committee (both hereinafter collectively referred to as
"Little Rock "), and the City of Shannon Hills and Shannon Hills
Water, Sewer and Fire Protection Improvement District No. 3
(both hereinafter collectively referred to as "Shannon Hills");
WHEREAS, the City of Shannon Hills is the holder of a
conditional assignment of the aforesaid improvement district to
transfer all of the property of the improvement district to the
City of Shannon Hills after the re- payment of all capital
indebtedness of the improvement district; and the improvement
district may acquire, through improvement loans or bonds, the
funds to perform the construction work intended by this
agreement and will perform all operational and maintenance
duties provided for in this contract until the plant, equipment,
lines and other improvements can be transferred capital debt
free to the City of Shannon Hills, and both political entities
agree, as Shannon Hills, to comply with all of the terms and
conditions of this agreement and perform the responsibilities
applicable to each under this agreement; and
WHEREAS, Shannon Hills desires to connect into the existing
sewer system owned by the City of Little Rock, and operated by
the City of Little Rock through the Sanitary Sewer Committee and
the Little Rock Wastewater Utility (the "Utility "), and also to
abandon its existing treatment plant located within the
corporate limits of Shannon Hills, as well as to regulate
further connections to the Shannon Hills system; and to transfer
the service of all of the Shannon Hills sewer system users
residing within the corporate limits of the City of Little Rock
to the Sewer Committee's system; and,
WHEREAS, Little Rock desires to enter into an agreement
permitting Shannon Hills to connect with the sewer system of
Little Rock, upon certain terms and conditions as herein
specifically set forth, and to provide for service for all
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residents of the City of Little Rock who are presently connected
to the Shannon Hills sewer system, and to provide for control of
all future temporary service for Little Rock residents; and,
when permanent service to the Sewer Committee's system can be
provided for the Little Rock resident users, to terminate Shan-
non Hills sewer service to the Little Rock residents; and to
further limit the extension of sewer services to unincorporated
areas of Saline County;
NOW, THEREFORE, in consideration of the mutual benefits to
be derived herefrom by all parties hereto, it is hereby agreed
by and between the parties:
1. Connection by Shannon Hills to the Sewer System of the
City of Little Rock. Little Rock, as Owner, hereby agrees to
permit Shannon Hills, as Lessee, to connect to the sewer system
of Little Rock under the terms of this agreement as soon as
practical after the necessary ordinances are adopted as referred
to herein, including those approving this agreement pursuant to
A.C.A. §14- 235 -212 by the governing authorities of the City of
Little Rock and Shannon Hills; and Shannon Hills hereby agrees
at its expense to make such connection in a manner and at a
location as approved by the Manager of the Little Rock
Wastewater Utility (the "Manager "), and in accordance with the
terms and provisions of this agreement and all applicable laws
and regulations. As soon as this connection is completed and
approved by the Manager, the treatment plant currently operated
by Shannon Hills shall be abandoned and no longer used in the
sewer system of Shannon Hills. Shannon Hills shall pay to the
Sewer Committee an initial connection fee of $8,000.00 for the
present users (approximately 550 users) ; and, thereafter,
$100.00 per home user for future tie -ons, and such other
connection fees as published in the Sewer Committee's connection
fee schedule, effective February 6, 1987, and any amendments
made thereto.
2. Wastewater Discharge Flow Measuring Meter. The connec-
tion to the Little Rock facilities shall include the furnishing
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and installation of a wastewater discharge flow meter by Shannon
Hills and all expenses in connection therewith shall be borne by
Shannon Hills. The meter shall be of a type and installation as
approved by the Manager. The function of the meter shall be to
measure and record accurately all flows discharged into the
Little Rock sewer facilities by Shannon Hills. Little Rock by
the Utility further agrees to maintain this meter to insure its
reliability and accuracy.
3. Sewer Services, Charges and Collections.
(a) Shannon Hills agrees to pay the Utility a monthly sewer
service charge and said charge shall be promptly billed after
the first day of each month for the services provided by this
agreement. The monthly sewer service charge shall be computed
from the total flow registered by the Wastewater Discharge Flow
Measuring Meter, including all infiltration and inflow, at the
rates set by the Little Rock Board of Directors for sewer ser-
vice outside the city limits of Little Rock, Arkansas. The
monthly statement for the charge shall be based upon flow meter
readings conducted by the Utility; however, in the event of flow
meter malfunction, the Utility may estimate the reading based
upon a comparable preceding period. All charges for sewer
service provided to Shannon Hills shall be billed to Shannon
Hills and it shall be the responsibility of Shannon Hills to
make timely payment of these charges on or before the twentieth
(20th) day following the month for which the service is billed.
Shannon Hills shall collect from its users all sums which may be
due in connection with the service extended. The Sewer Commit-
tee for the use and benefit of the City of Little Rock shall
have all rights to effect such collection of all sums owed to
Little Rock pursuant to Arkansas law, including but not limited
to those provisions contained in A.C.A. §14- 235 -223; and Shannon
Hills agrees to hold harmless the Sewer Committee for all los-
ses, costs and expenses as may be sustained by Little Rock in
connection with the payment of such sewer service. If Shannon
Hills does not remit payment on or before the twentieth (20th)
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day of the month following the month for which the service is
billed, a penalty equal to ten percent (10 %) of the total pay-
ment amount due shall be added to such payment, and if not paid
on or before the twentieth (20th) day of the month in which the
statement is submitted, Little Rock may terminate this agreement
in accordance with the terms herein.
(b) All customers of Shannon Hills who reside within the
city limits of Little Rock shall be billed for sewage treatment
by Shannon Hills at inside city limits rates as provided in the
applicable ordinances of the City of Little Rock, as currently
set forth in City of Little Rock Ordinance No. 15,242, amending
Ordinance No. 13,982, adopted on February 3, 1987, and as may be
amended or adopted in the future. However, Shannon Hills may
make any uniform reasonable charge to all of its customers to
provide funds to amortize fees charged it by Mabelvale- Alexander
Sewer Improvement District 142 ( "S.I.D. No. 142 "), capital debt
amortization, infiltration costs, sewer maintenance and opera-
tional costs; and as long as the Little Rock customers are
charged no more than inside city rates for ,sewer treatment, the
uniform charges will not be deemed to contravene this agree-
ment. Shannon Hills shall receive a credit each month for
service to customers residing inside the city limits of Little
Rock. The credit shall be an amount equal to the difference
between the amount owed by those customers residing in the city
limits of Little Rock as reflected by their individual water
meters based on the inside city limit rate, and that portion of
the actual charge by the Sewer Committee (as computed from the
total flow registered by the discharge flow measuring meter)
which is attributable to the service provided by Shannon Hills
to those customers inside the city limits of Little Rock.
4. Application of City of Little Rock Sewer Ordinances. The
provisions of all existing and future ordinances enacted by the
City of Little Rock relating to the regulation of the construc-
tion, operation and maintenance of sewers shall apply to the
sewer facilities owned and operated by Shannon Hills and con -
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nected to the sewer facilities owned and operated by the City of
Little Rock. The provisions of these ordinances shall be
binding on the parties hereto, including the rates as may be
from time to time specified; and Shannon Hills covenants that it
will at all times comply with said ordinances and further agrees
to hold harmless the Sewer Committee from all losses, damages,
expenses or liabilities of any nature incurred by the Sewer
Committee as a consequence of any acts, omissions or any conduct
by any authorized representative or employee of Shannon Hills,
its customers or citizens arising out of any violations of said
ordinance or any provision of this agreement or relating to the
sewer service furnished as a consequence thereof.
5. Future Connections with the Sewer System of Shannon Hills.
Shannon Hills agrees not to extend any sewer services to any
area outside the incorporated area of Shannon Hills as the
boundaries exist on the date when this agreement is executed,
unless the governing body of the City of Little Rock has given
its prior written approval to do so. Shannon Hills further
agrees to limit any future sewer main extensions and sewer
connections in any portion of Pulaski County not currently ..
served unless Shannon Hills obtains the prior approval in
writing by the Sewer Committee; and then only for so long as
service is not available from the Sewer Committee for all users
now located in the City of Little Rock, including but not
limited to Rolling Hills Subdivision, situated in Pulaski
County, Arkansas. A map of the City of Shannon Hills showing
the current boundaries is attached hereto as Exhibit "A ".
6. Future Extensions of Service. The Sewer Committee shall
not be obligated for and assumes no liability for any future
extension of service not specifically set forth herein, and no
such extension shall be made without the prior written approval
of the governing body of the City of Little Rock and the Sewer
Committee. This agreement anticipates up to 1,000 Shannon Hills
users. In any event, anyone desiring such an extension of ser-
vice beyond the existing facilities hereby served shall bear the
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full cost thereof, including all costs of any nature whatsoever
involved in effecting such extension or making available such
service and any connection fees set by the Sewer Committee, and
S.I.D. No. 142 and Shannon Hills. The further extension of
service shall be in accordance with the rules and regulations of
the Sewer Committee and subject to its approval at the time of
the extension of service.
7. Shannon Hills Comprehensive Development Plan, Zoning Or-
dinance and Pre - Treatment Ordinance. Prior to the connection
of the sewer system of Shannon Hills with the City of Little
Rock, Shannon Hills shall furnish proof of the adoption of a
comprehensive development plan and zoning ordinance and a sewage
pretreatment ordinance; and said plan and zoning ordinance shall
have been submitted to the Director of Comprehensive Planning
for the City of Little Rock for his written approval before the
sewer connection specified in this agreement with the pretreat-
ment ordinance to be approved by the Manager before said con-
nection is made.
B. Title and Maintenance Responsibility for Sewer Facilities
Owned and Operated by Shannon Hills. Title to and maintenance
responsibility for any and all sewer facilities of any nature
whatsoever located within the incorporated city limits of
Shannon Hills, including but not limited to each customer's
public facilities to the public sewer line, shall remain with
Shannon Hills or its citizens; and Little Rock shall have no
liability or responsibility for the operating or maintenance of
said sewer system located within the incorporated city limits of
Shannon Hills or any future connections as may from time to time
be permitted.
9. Term of Agreement. Unless terminated earlier, the term
of this agreement shall be for a period of fifteen (15) years
from the date hereof at which time it will expire; provided,
however, this agreement may be extended by the agreement of the
parties hereto upon notice given by either party prior to the
end of the term and adoption, thereafter, of approving ordinances
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by the contracting parties hereto.
10. Assignment or Transfer. This agreement and the rights
hereunder shall not be assigned or transferred by Shannon Hills,
but shall be binding upon the successors of either party.
11. Taxes. Shannon Hills covenants and agrees to pay any
and all taxes levied by the United States and the State of
Arkansas for the services provided and treatment of sewage
pursuant to this contract, and shall comply with all federal,
state, county and municipal laws, ordinances, rules and
regulations pertaining to the treatment of sewage; and Shannon
Hills further agrees to indemnify and hold harmless Little Rock
for any loss or damage of nature whatsoever sustained by Little
Rock occasioned by the failure to comply with said laws,
ordinances, rules and regulations by the employees or authorized
representatives of Shannon Hills.
12. Termination. This agreement may be terminated by
Little Rock if Shannon Hills fails to comply fully with any of
the terms and provisions of this agreement. Termination of this
agreement may occur only after actual written notice is given of
the nature of the breach. In the event of the termination of
this agreement, all obligations of Little Rock to treat the
sewage under the agreement shall cease and Shannon Hills shall
immediately remove the sewer connection provided herein, it
being the intention of the parties hereto that Shannon Hills
shall be solely responsible for the treatment of its sewage upon
termination of this agreement, failing which Little Rock shall
be entitled to recover from Shannon Hills all damages sustained
by Little Rock of any nature whatsoever proximately caused by
Shannon Hills' violation of any provision(s) of this agreement,
including but not limited to Shannon Hills' failure to remove
said sewer connection and treat said sewage in the event it
fails to do so.
13. Notices. All notices hereunder shall be in writing and
shall be deemed to have been duly given when sent by registered
or certified mail, postage prepaid, as follows:
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If to Little Rock:
Little Rock Wastewater Utility AND City of Little Rock
221 East Capitol Avenue City Hall, 500 W. Markham
Little Rock, AR 72202 Little Rock, AR 72201
Attention: Manager Attention: City Manager
If to.Shannon Hills:
Shannon Hills Water, Sewer AND City of Shannon Hills
& Fire Protection District City Hall
10000 High Road Shannon Hills, AR 72103
Shannon Hills, AR 72103 Attention: Mayor
Attention: Manager
14. Update of Regulations. Shannon Hills agrees to abide
by the rules and regulations published from time to time
concerning the treatment of sewage by Little Rock; and all
applicable federal, state, county and municipal regulations
concerning construction, operating, maintenance, and protection
of treatment of sewage pursuant to this agreement. Little Rock
shall have the right, if it deems necessary or appropriate, to
inspect all individual tie -ons to the Shannon Hills sewage
system.
15. Governmental function. The parties recognize that
treatment of sewage pursuant to this agreement is a governmental
function and this Agreement shall be performed by the parties
hereto in their respective governmental capacities.
16. Invalid Provision Shall Not Invalidate Agreement. The
parties agree that in the event any paragraph, sentence, clause
or word(s) of this agreement shall be held to be invalid, il-
legal or unenforceable, all other terms and provisions of this
agreement shall remain in full force and effect, and this agree-
ment shall be construed as if not containing the particular
provision or provisions held to be invalid.
17. Agreement Legally Binding. All parties to the agree-
ment agree to the terms contained herein and represent to each
other that the terms of this agreement have been duly accepted
and approved by the authorized representatives of the 'parties
hereto; and all parties covenant to each other that all action
required by law has been taken to make this agreement legally
binding and enforceable and that the parties hereto shall have
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all of the rights and remedies under the law of Arkansas to 630
enforce the terms of this agreement.
DATED this day of 1988.
.. CITY OF SHANNON HILLS, ARKANSAS
By:
Mayor
ATTEST:
SHANNON HILLS WATER, SEWER AND FIRE
PROTECTION IMPROVEMENT DISTRICT
NO. 3
BY:
Chairman
retary
ro
CITY OF LITTLE ROCK, ARKANSAS
BY:
Mayor
ATTEST:
Clerk
LITTLE ROCK SANITARY SEWER COMMITTEE
BY:
Chairman
ATTEST:
Manager
Little Rock Wastewater Utility
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