HomeMy WebLinkAbout22603 1 ORDINANCE NO. 22,603
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3 AN ORDINANCE TO AMEND SECTION 4 OF LITTLE ROCK,
4 ARK. ORDINANCE NO. 18,508 (JUNE 12, 2001) CONCERNING
5 FRANCHISE FEES TO BE PAID TO THE CITY OF LITTLE ROCK,
6 ARKANSAS BY CENTRAL ARKANSAS WATER; AND FOR
7 OTHER PURPOSES.
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9 WHEREAS,the City passed Little Rock,Ark.Ordinance No. 18,508(June 12,2001)that,among other
10 things, granted a franchise to Central Arkansas Water for the use of the City's rights-of-way and set a
11 franchise fee therefor equal to six and nine-tenths percent (6.9%) of Central Arkansas Water's operating
12 revenues that are attributable to gross income from water sales to customers located within the City during
13 the applicable fiscal year; and,
14 WHEREAS,the City proposes to amend Ordinance No. 18,508 to exclude certain revenues of Central
15 Arkansas Water from the franchise fee calculation.
16 NOW, THEREFORE BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY
17 OF LITTLE ROCK,ARKANSAS.
18 Section 1. Section 4 of the Ordinance No. 18,508 is hereby amended to read as follows:
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20 Setting of Franchise Fee. Pursuant to the authority contained in the Consolidated
21 Waterworks Authorization Act and Section 5.02 of the Consolidation Agreement,the City
22 hereby determines that an annual franchise fee,equal to six and nine-tenths percent(6.9%)
23 of Central Arkansas Water's operating revenues that are attributable to gross income from
24 water sales to customers located within the City during the applicable fiscal year (the
25 "Franchise Fee"), shall be imposed upon Central Arkansas Water as compensation for the
26 franchise granted by the Franchise Agreement. Operating revenues on which the Franchise
27 Fee is based, however, shall not include operating revenues derived from any user with
28 demand exceeding 1.0 MGD on an annual average provided that the City and the user have
29 entered an agreement that provides for the City from the user alternative consideration for
30 Central Arkansas Water's use of the City's rights-of-way. The Franchise Fee shall be
31 payable to the City in monthly installments,each such installment being due not less than
32 thirty (30) days following the end of the month to which it applies. Installments of the
33 Franchise Fee may be remitted on an estimated basis,subject to periodic reconciliation,on
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1 such terms as may be acceptable to the City's Finance Director and Treasurer. The
2 Franchise Fee shall continue in effect during the term of the Franchise Agreement, unless
3 revised or repealed by subsequent ordinance.
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5 Section 2. Severability. In the event any title, section, paragraph, item, sentence, clause, phrase, or
6 word of this ordinance is declared or adjudged to be invalid or unconstitutional, such declaration or
7 adjudication shall not affect the remaining portions of the ordinance which shall remain in full force and
8 effect as if the portion so declared or adjudged invalid or unconstitutional was not originally part of the
9 ordinance.
10 Section 3. Repealer. All ordinances and parts of ordinances that conflict herewith are hereby
11 repealed; provided, however, only to the extent that the same are in direct conflict herewith. Except as
12 provided,nothing herein shall be construed to alter or change the terms or conditions of the present franchise
13 under which Central Arkansas Water is operating as set forth in Ordinance No. 18,508.
14 PASSED: April 29,2025
15 ATTEST: APPROVED:
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19 Allison Segars,City Clerk Frank Scott,Jr.,Mayor
20 APPROVED AS TO LEGAL FORM:
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23 {44-1,trA7 1.6(
24 Thomas M. Carpenter,City Attor ey
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