HomeMy WebLinkAbout16592t_
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ORDINANCE NO. 16,592
AN ORDINANCE OF THE CITY OF LITTLE ROCK
APPROVING AN AGREEMENT FOR THE SALE OF
LITTLE ROCK WATER TO THE CITY OF SHANNON
HILLS; AND DECLARING AN EMERGENCY.
NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS OF
THE CITY OF LITTLE ROCK, ARKANSAS:
SECTION 1. The Board of Directors of the City of Little
Rock hereby approves a contract between the Little Rock
Municipal Water Works and the City of Shannon Hills for the sale
of Little Rock water to Shannon Hills, under the terms and
conditions set forth in the Agreement attached as Exhibit A to
this Ordinance.
SECTION 2. The contract shall specifically include the
following terms, covenants and conditions:
I. Term of the Agreement.
a. The initial term of this Agreement shall be
one (1) year and shall commence on the date
of the Engineer's Certificate.
b. If Shannon Hills completes a connection with
Little Rock sewer within one year of the date
of execution of this Agreement, to the
satisfaction of the City of Little Rock, and
Shannon Hills has taken all other steps
necessary to comply with local, state and
federal environmental requirements, this
Agreement shall extend for a term of twenty
(20) years from the date of the Engineer's
Certificate. In such case this Agreement
shall be renewable automatically for
successive twenty (20) year periods unless
terminated by either party. Notice of
termination shall be given in writing one
year prior to the end of the term or any
renewal term; provided, however, that if the
current sources of water for the Water Works
prove inadequate for any reason whatsoever,
then, in such event, this Agreement may be
terminated by the Water Works giving Shannon
Hills two years notice of intent to
terminate.
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II. Covenants and Conditions:
a. Shannon Hills covenants and agrees that it
1 will not sell, supply or deliver water,
2 either directly or indirectly, to any person
3 or customer outside the city limits of
4 Shannon Hills in efect on the date of this
5 Agreement, without prior written approval of
6 the Water Works and the Little Rock Board of
Directors.
7 b. Shannon Hills covenants and agrees that it
8 will not, without prior written approval of
9 the Water Works, sell water to any person, or
10 connect to Shannon Hills' water system any
11 customer whose average daily consumption
exceeds five percent (5%) of the volume of
12 water required, at the time of such sale or
13 connection, to supply all of Shannon Hills'
14 customers at the time of peak consumption of
15 the Shannon Hills water system.
C. Shannon Hills further agrees that it will not
16 resell the water purchased pursuant to this
17 Agreement to any improvement district located
18 outside the city limits of Shannon Hills, or
19 any other water association or municipality
20 without prior written approval of the Water
Works and the Little Rock Board of Directors.
21 d. Shannon Hills further agrees to restrict its
22 area growth by annexation to twenty percent
23 (20 %) of its extraterritorial planning area
24 for the first five (5) years of this
25 Agreement; up to fifty percent (50 %) for the
second five (5) years; and one hundred
26 percent (100 %) after ten (10) years.
27 e. Shannon Hills covenants and agrees to comply
28 and to remain in compliance with all
29 applicable laws, rules and regulations of the
30 U.S. Environmental Protection Agency, the
Arkansas Department of Pollution Control and
31 Ecology, and the City of Little Rock
32 regarding the discharge and disposal of
33 wastewater.
34 SECTION 3. Emergency Clause: The City of Shannon Hills
35 has experienced water shortages in its current supply and it
36 is deemed necessary to immediately authorize the connection
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of Shannon Hillso Little Rock water. Therefore an emergency
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is declared to exist, and this ordinance, being necessary for
the immediate preservation of the public peace, health,
safety and general welfare, shall be in full force and effect
from and after the date of its approval.
PASSED: February 9, 1994
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CITY CLERK
APPROVED AS TO FORM:
THOMAS M. CARP PER
CITY ATTORNEY
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This Agreement is entered into this day of
199_, between the City of Little Rock,
Arkansas ( "Little Rock ") as trustee for the use and benefit
of the Little Rock Municipal Water Works, and the City of
Shannon Hills ( "Shannon Hills ").
WITNESSETH:
WHEREAS, Little Rock is a city of the first class, and
the Board of Commissioners of the Little Rock Municipal Water
Works operates the Little Rock Municipal Water Works (the
"Water Works "); and
WHEREAS, Shannon Hills is a city of the second class and
is interested in buying water from the Water Works to serve
the needs of its customers; and
WHEREAS, the Water Works is interested in selling water
to Shannon Hills under the terms and conditions of this
Agreement; and
WHEREAS, the Board of Directors of the City of Little
Rock, Arkansas, by Resolution No. 8,995 adopted September 7,
1993, approved the sale of water to Shannon Hills by
agreement in a form satisfactory to the City Attorney; and
WHEREAS, a major inducement for Little Rock to authorize
the Water Works to sell water to the City of Shannon Hills is
Shannon Hills, agreement to limit its growth by annexation
within its own extraterritorial planning area and not to
annex into the City of Little Rock's extraterritorial area;
and
WHEREAS, Little Rock is aware of existing enforcement
action by the Arkansas Department of Pollution Control and
Ecology (herein called "ADPC &E ") concerning the existing
sewer treatment facility currently servicing Shannon Hills.
EXHIBIT
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Consequently the term of this Agreement is structured in
such a manner as to require Shannon Hills to resolve its
effluent discharge problems and to tie on to Little Rock
sewer within the first year of this Agreement.
NOW, THEREFORE, for and in consideration of the mutual
covenants, agreements and conditions contained herein, the
parties agree as follows:
1. The term of this Agreement shall be as follows:
a. The initial term of this Agreement shall be one
(1) year and shall commence on the date of the
Engineer's Certificate.
b. If Shannon Hills completes a connection with
Little Rock sewer within one year of the date of
execution of this Agreement, to the satisfaction
of the City of Little Rock, and Shannon Hills has
taken all other steps necessary to comply with
local, state I and federal environmental
requirements, this Agreement shall extend for a
term of twenty (20) years from the date of the
Engineer's Certificate. In such case this
Agreement shall be renewable automatically for
successive twenty (20) year periods unless
terminated by either party. Notice of termination
shall be given in writing one year prior to the
end of the term or any renewal term; provided,
however, that if the current sources of water for
the Water Works prove inadequate for any reason
whatsoever, then, in such event, this Agreement
may be terminated by the Water Works giving
Shannon Hills two years notice of intent to
terminate.
2. Subject to all of the terms and conditions
hereinafter set forth, the Water Works agrees to sell and
Shannon Hills agrees to buy for distribution by Shannon
Hills, a minimum of one hundred thousand (100,000) gallons of
potable water per day at the pressure and quantity available
from the Water Works commencing on the date of execution of
the Engineer's final inspection certifying completion of
construction of the twelve -inch line and meter station, and
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the disconnection of the emergency connection, described in
Paragraph 6 herein. It is specifically understood and agreed
that the said one hundred thousand (100,000) gallons of water
per day is a minimum and that Shannon Hills will pay the
Water Works for that amount of water regardless of whether
Shannon Hills actually uses, or takes delivery of, the entire
one hundred thousand (100,000) gallons each day. The maximum
amount of water sold pursuant to this Agreement is seven
hundred fifty thousand (750,000) gallons per day. The term
"day" as used herein shall mean the twenty -four (24) hour
period ending at midnight.
3. Shannon Hills agrees to pay for said water, solely
from its water system revenues, at a contract rate of a
minimum monthly charge of $ plus $0.42 per
100 cubic feet in excess of 3,000,000 gallons per month for
the first year of this Agreement, and for each succeeding
year, beginning on the anniversary date of this Agreement, at
the rate for meter size and quantity of water consumed paid
by outside city customers of the Water Works as fixed by the
Little Rock Board of Directors. It is expressly agreed that
Shannon Hills' obligations to pay for water pursuant to this
Agreement are special obligations payable solely from
revenues derived from the operation of its water system and
Shannon Hills shall not be obligated in any manner to make
any payments from its general, or any other, revenues.
4. Promptly after the first day of each month, the Water
Works shall submit an itemized monthly statement to Shannon
Hills for water delivered during the previous calendar month.
The statement shall be based upon flow meter readings
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conducted by the Water Works; however, in the event of flow
meter malfunction, the Water Works may estimate the reading
based upon a comparable preceding period. Shannon Hills shall
remit payment for water to the Water Works on or before the
tenth (10th) day of the month in which the statement is
submitted. If Shannon Hills does not remit payment on or
before the tenth (10th) day of the month, a penalty equal to
ten percent (10 %) of the total payment amount due shall be
added to such payment, and if not paid on or before the
fifteenth (15th) day of the month in which the statement is
submitted, the Water Works may discontinue delivery of water
to Shannon Hills and may continue to deny delivery to Shannon
Hills until it pays the amount due.
5. The water sold pursuant to the Agreement shall be
delivered to Shannon Hills within the City of Little Rock at
the following point of delivery and others hereinafter
established by the parties (the "point of delivery"):
intersection of the Pulaski County, Saline County line at
Sardis Road.
6. Shannon Hills shall, at its expense, construct a
twelve -inch line (the "twelve- inch,line") from the Water
Works' existing twelve -inch line in Sardis Road to the point
of delivery and obtain easements therefor. Shannon Hills
shall purchase a site for and construct, at its expense, a
meter station at the point of delivery containing a flow
meter and other necessary equipment required by and
acceptable to the Water Works. Moreover, Shannon Hills shall
disconnect the emergency connection with the Sardis Water
Association. The parties also agree that the design and
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materials to be used by Shannon Hills in the construction of
the twelve -inch line and meter station shall conform to
specifications of the Water Works. Upon completion of
construction, Shannon Hills shall convey to the City of
Little Rock, Arkansas for the use and benefit of the Little
Rock Municipal Water Works the meter station, twelve -inch
line and easements and right of way easements. Shannon Hills
covenants and agrees that its water system shall be designed
and constructed to maintain adequate storage for all its
customer needs, including, but not limited to, peak customer
demands, fire flows and interruption of supply.
7. Shannon Hills agrees that it will take delivery of
said water at the point of delivery at a time or times each
day to be designated by the Water Works, it being the intent
of the parties that Shannon Hills shall take delivery, if
required by the Water Works, during off -peak periods; as
used herein "off- peak" shall mean the period of time each day
between midnight and 10:00 a.m. and between 8:00 p.m. and
midnight.
8. In the event the Water Works determines it necessary
or advisable by reason of.an emergency, or routine operation,
maintenance, repair or replacement of any part of the Water
Works' facilities, the Water Works shall have the right and
option to restrict delivery to Shannon Hills. In the event
the Water Works determines that consumption by Shannon Hills
hinders the Water Works' effective distribution pressures or
endangers in any manner the service to the Water Works,
customers, or in the event the Water Works deems it necessary
or advisable for any reason, the Water Works shall have the
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right and option to restrict delivery to Shannon Hills,
either by reducing flow at the point of delivery or
requesting Shannon Hills to implement controlled consumption.
9. Shannon Hills hereby indemnifies, releases and
forever discharges Little Rock and the Water Works and waives
any right of or claim for damages of any kind or nature
whatsoever under this Agreement arising out of or resulting
from water quality, inadequate pressure, or restriction,
interruption or stoppage of the flow of water for any reason
whatsoever, including, but not limited to, negligence of the
Water Works. Shannon Hills shall save Little Rock and the
Water Works harmless from any damage to person or property as
a result of the performance of this Agreement by the Water
Works or its agents and employees. All loss or damage to
Shannon Hills or its water users and customers arising out of
earthquake, flood, fire, acts of God or pollution of the
Water works' facilities shall be sustained by Shannon Hills.
10. The parties agree that the Water Works does not
guarantee to provide any certain water pressure and that the
transfer of title to water delivered pursuant to this
Agreement is subject to all the terms and conditions
contained herein. Moreover, the providing of any certain
water pressure during the term of this Agreement shall not be
construed as a guarantee that any certain water pressure will
be provided at any future time during the term of this
Agreement.
11. Shannon Hills hereby relinquishes all of its right,
title and interest in and to water service to customers
located within the city limits of the City of Little Rock.
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Upon written notice by the Water Works, Shannon Hills shall
discontinue water service to its customers located within the
city limits of the City of Little Rock (the "Transferred
Customers "), and assign to the Water Works all of Shannon
Hills' rights to sell and furnish water to the Transferred
Customers.
a. Shannon Hills, upon the execution of this
Agreement, shall provide the Water Works with a
list of all of the Transferred Customers on the
date of this Agreement and agrees to immediately
notify the Water Works of any change in the
Transferred Customers from the date of this
Agreement until the date of the Engineer's
Certificate. Shannon Hills and the Water Works
will jointly notify the Transferred Customers
that:
(i) Shannon Hills' distribution system located
within the city limits of the City of
Little Rock is being transferred to the
Water Works;
(ii) Transferred Customers shall become
customers of the Water Works and shall be
required to execute customer contracts
with the Water Works in order to obtain
water service; and
(iii) Due to the differences in water pressure,
it will be necessary for the Transferred
Customers to install a pressure reduction
valve at the customer's cost.
b. Upon written notice by the Water Works, Shannon
Hills shall assign to the Water Works all
customer deposits of the Transferred Customers
and the Water Works shall refund to the
Transferred Customers all deposits received from
Shannon Hills in excess of the amount required by
the Water Works.
c. The parties acknowledge that this is not an
agreement to sell customers.
d. Shannon Hills agrees to indemnify and hold the
Water works harmless from any and all demands,
claims, actions, causes of action and damages,
including attorneys' fees, in connection with or
resulting from or arising out of the Water Works'
disconnection of the Transferred Customers from
Shannon Hills' water distribution system pursuant
to this Agreement. Shannon Hills covenants that
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it will reimburse the Water Works for, or pay
over to the Water Works, all sums of money that
the Water Works shall pay or become liable to pay
by reason of any such claim, and will make such
payments to the Water Works as soon as the Water
Works shall become liable therefor, whether or
not the Water Works shall have paid out such sums
or any part thereof. If for any reason Shannon
Hills fails to defend any such claim, the Water
Works shall have the right to adjust, settle, or
compromise any such claim, after notice to
Shannon Hills, and the right of the Water Works
to indemnification under this Agreement shall
extend to any money paid by the Water Works in
settlement or compromise of any such claim, after
such notice.
12. Upon written notice by the Water Works after the
date of the Engineer's Certificate, Shannon Hills shall
convey to the City of Little Rock, Arkansas for the use and
benefit of the Little Rock Municipal Water Works, all
property owned by Shannon Hills located within the city
limits of the City of Little Rock including, but not limited
to, real property, easements, right of way easements,
pipelines, meters, flow meters, meter stations, and all
appurtenant equipment and accessories, free and clear of all
claims, liens and encumbrances of any kind whatsoever (the
°Conveyance"). Shannon Hills hereby covenants that the
conveyance will not violate any obligation indenture,
ordinance, covenant or contract to which Shannon Hills is a
party. Shannon Hills hereby further covenants that the
property conveyed is not subject to any note, indenture,
mortgage, conditional sales agreement, loan agreement,
charge, lien or encumbrance. Shannon Hills hereby indemnifies
and holds Little Rock and the Water Works harmless from any
and all demands, claims, actions, causes of action and
damages, including attorneys' fees, arising out of or in any
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way connected with the Conveyance or the property conveyed
thereby.
13. 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.
14. Shannon Hills covenants and agrees to pay any and
all taxes levied by the United States, the State of Arkansas,
the County of Pulaski County, the City of Little Rock, and
any other governmental entity, on the sale of water to
Shannon Hills.
15. The provision of water service under this Agreement
is specifically conditioned upon compliance by Shannon Hills
with the following covenants:
a. Shannon Hills covenants and agrees that it will
not sell, supply or deliver water, either
directly, or indirectly, to any person or
customer outside the city limits of Shannon
Hills in effect on the date of this Agreement,
without ,prior written approval of the Water
Works and the Little Rock Board of Directors.
b. Shannon Hills covenants and agrees that it will
not, without prior written approval of the Water
Works, sell water to any person, or connect to
Shannon Hills' water system any customer whose
average daily consumption exceeds five percent
(5 %) of the volume of water required, at the
time of such sale or connection, to supply all
of Shannon Hills' customers at the time of peak
consumption of the Shannon Hills water system.
c. Shannon Hills further agrees that it will not
resell the water purchased pursuant to this
Agreement to any improvement district located
outside the city limits of Shannon Hills, or any
other water association or municipality without
prior written approval of the Water Works and
the Little Rock Board of Directors.
d. Shannon Hills further agrees to restrict its
area growth by annexation to twenty percent
(20 %) of its extraterritorial planning area for
the first five (5) years of this Agreement; up
to fifty percent (50 %) for the second five (5)
years; and one hundred percent (100 %) after ten
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(10) years. Shannon Hills extraterritorial area
is described in Exhibit "A" to this Agreement.
e. Shannon Hills covenants and agrees to comply and
to remain in compliance with all applicable
laws, rules and regulations of the U.S.
Environmental Protection Agency, the Arkansas
Department of Pollution Control and Ecology, and
the City of Little Rock regarding the discharge
and disposal of wastewater.
16. Water service may be terminated if Shannon Hills
fails to fully comply with all of the terms and provisions
stated herein. Termination of water service may occur only
after actual notice is given of the nature of the breach.
17. 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:
If to the Water Works: Little Rock Municipal Water Works
Post Office Box 1789
Little Rock, Arkansas 72203
Attention: Water Works Manager
If to Little Rock: City of Little Rock
City Hall, 500 W. Markham
Little Rock, Arkansas 72201
Attention: City Manager
If to Shannon Hills: Shannon Hills Water Department
10000 High Road East
Mabelvale, Arkansas 72103
Attention: Manager
and
City of Shannon Hills
10401 High Road East
Shannon Hills, Arkansas 72103
Attention: Mayor
18. Shannon Hills agrees to abide by the rules and
regulations published from time to time by the Board of
Commissioners of the Little Rock Municipal Water Works
concerning the consumption of water; and the rules and
regulations published from time to time by the Arkansas
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Department of Health concerning operation, maintenance and
protection of public water supplies. The Water Works shall
have the right if it deems necessary or appropriate to
inspect all individual tie -ons to the Shannon Hills water
system.
19. The parties recognize that furnishing potable water
is a governmental function and this Agreement shall be
performed by the parties hereto in their governmental
capacity.
20. The parties agree that in the event any term or
provision of this Agreement shall be held to be invalid,
illegal or unenforceable, all other terms and provisions of
this Agreement shall remain in full force and effect, and
this Agreement shall be construed as if not containing the
particular provision or provisions held to be invalid.
IN WITNESS WHEREOF, the parties hereto have executed
this Agreement.
Attest:
ecre ary
Attest:
City Clerk
Attest:
City Recorder-Treasurer
BOARD OF COMMISSIONERS
LITTLE ROCK MUNICIPAL WATER WORKS
Chairman
CITY OF LITTLE ROCK, ARKANSAS
Mayor
CITY OF SHANNON HILLS
Mayor
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