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HomeMy WebLinkAbout177931 ORDINANCE NO. 17,793 0 3 AN ORDINANCE OF THE BOARD OF DIRECTORS OF THE CITY 4 OF LITTLE ROCK, ARKANSAS, AUTHORIZING THE MAYOR AND 5 CITY CLERK TO ENTER INTO AN AGREEMENT FOR THE SALE 6 OF WATER TO THE CITY OF ALEXANDER, ARKANSAS. 7 8 WHEREAS, the City of Little Rock, Arkansas ("Little Rock ") is a city of the first 9 class created under the laws of the State of Arkansas, and the Little Rock Municipal Water 10 Works ( "Water Works ") is a municipal utility created by Little Rock pursuant to Ark. Code 11 Ann. § 14- 234 -303 (Michie 1987); and 12 WHEREAS, the City of Alexander, Arkansas ( "Alexander ")is a city of the second 13 class created under the laws of the State of Arkansas, and is interested in buying water from 14 Little Rock, acting through Water Works, to serve the needs of Alexander's customers; and 15 WHEREAS, the Board of Directors of the City of Little Rock approved Little Rock, 16 Arkansas, Resolution No. 10,279 (May 19, 1998), by which Little Rock acknowledged its 17 intent to permit the sale of excess water to Alexander and directed that a contract for such 18 services be drafted in accordance with state statute; and 19 WHEREAS, a contract has been drafted in accordance with state law. 20 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF DIRECTORS 21 OF THE CITY OF LITTLE ROCK, ARKANSAS: 22 SECTION 1. The Agreement to sell excess water to Alexander is approved by the 23 Little Rock Board of Directors. 24 SECTION 2. The Mayor and City Clerk are hereby authorized to execute the 25 Agreement on behalf of the City of Little Rock, Arkansas in substantially the form attached 26 as Exhibit A to this Ordinance. P&A W-3 i I Passed: August 11, 1998 2 3 4 Attest: 5 6 \ Ai1�'�D n idfJ1 P14,�_ 8 Robbie Hancock, City Clerk 9 10 11 Approved as to Legal Form: 12 13 14 ^� 15 Thomas M. Carpenter, City ttorney 16 17 18 19 20 21 22 23 24 25 26 27 28 -2- Approved: q�tm 16 Jim D. i y, Mayor EM • EXHIBIT "A" ® AGREEMENT This Agreement is entered into this day of 1998, between the 383 CITY OF LITTLE ROCK, ARKANSAS ("Little Rock ") for its use and benefit and for the use and benefit of the Little Rock Municipal Water Works ( "Water Works ") and the CITY OF ALEXANDER, ARKANSAS ( "Alexander "). WHEREAS, Little Rock is a city of the first class created under the laws of the state of Arkansas, and Water Works is a municipal utility created by Little Rock pursuant to Ark. Code Ann. § 14- 234 -303 (Michie 1987); and WHEREAS, Alexander is a city of the second class created under the laws of the state of Arkansas, and is interested in buying water from Little Rock, acting through Water Works, to serve the needs of Alexander's customers; and WHEREAS, the Board of Directors of the City of Little Rock approved Little Rock, Arkansas, Resolution No. 10,279 (May 19, 1998), by which Little Rock acknowledged its intent to permit the sale of excess water to Alexander and directed that a contract for such services be drafted in accordance with state statute; and WHEREAS, Little Rock owns and operates the public drinking water system inside Alexander and is presently selling water to individual customers located within Alexander and is interested in selling water to individual customers located in the Saline County portion of Alexander; and WHEREAS, as a condition to the sale by Little Rock of its excess water to Alexander, Alexander agrees: (1) to ensure quality growth within its city limits, (2) to limit its growth by annexatiAthin its own extraterritorial plann*ea, and (3) not to annex into Little Rock's extraterritorial area. • e' NOW THEREFORE, FOR AND IN CONSIDERATION OF THE MUTUAL COVENANTS, AGREEMENTS AND CONDITIONS CONTAINED HEREIN, LITTLE ROCK AGREES TO SELL TO ALEXANDER, AND ALEXANDER AGREES TO PURCHASE FROM LITTLE ROCK, POTABLE WATER UPON THE FOLLOWING TERMS AND CONDITIONS: 1. The terms of this Agreement shall apply to all of the water sold by Little Rock to Alexander. 2. The water sold to Alexander pursuant to this Agreement shall be delivered to Alexander's customers through individual meters and priced at the rate determined by Water Works for its customers outside Little Rock city limits. 3. Additional Alexander customers may be added to the water service area supplied by Water Works pursuant to the terms of this Agreement. 4. Alexander agrees to furnish all labor and material and bear the entire cost of constructing the facilities by which Little Rock water is provided to Alexander's customers. 5. No new water facilities may be commenced until the plans and specifications are approved in writing by Water Works, and the contract for construction of water facilities has been approved by Water Works. 6. Alexander or any customer located with the city limits of Alexander shall give notice of proposed facilities by submitting a plat or the plans that have been approved by Water Works to the appropriate planning agency for review as follows: (a) the City of Little Rock Planning Commission -1- M M M M M M M r M M M M! M ("Planning Commission's any part of the facilities are to bated within the territorial 385 jurisdiction of said Planning Commission, or (b) the Saline County Planning Board if any part of the facilities are to be located in Saline County. 7. Alexander or any customer located within the city limits of Alexander shall obtain or cause to be obtained all permits required in connection with the construction of the facilities. 8. Upon completion of the construction of the facilities and acceptance by Water Works, ownership of the facilities shall vest by this Agreement in Little Rock for the use and benefit of Water Works without the necessity of any other conveyance. The facilities shall become a part of the Water Works distribution system. 9. Alexander acknowledges that the provision of water service through or from the facilities will not be commenced by Water Works prior to Alexander's fulfillment of all of its obligations in accordance with the terms of this Agreement. 10. 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, Water Works shall have the right and option to restrict delivery to Alexander. In the event Water Works determines that consumption by Alexander hinders Water Works effective distribution pressures or endangers in any manner the service to citizens of Little Rock; in the event Water Works deems it necessary or advisable for any reason, Water Works shall also have the right and option to restrict delivery to Alexander, either by reducing flow at the point of delivery or requesting Alexander to implement controlled consumption. 11. Alexander hereby indemnifies, releases and forever discharges Little Rock and Water Works and waives any right of or claim for damages of any kind or nature whatsoever under this Agreement arising out A resulting from water quality, inade&e pressure, or restriction, interruption or stoppage of the flow of water for any reason whatsoever, including, but not limited g �, to, negligence of Water Works. Alexander shall save Little Rock and Water Works harmless from any damage to person or property as a result of the performance of this Agreement by Water Works or its agents and employees. All loss or damage to Alexander or its water users and customers arising out of earthquake, flood, fire, acts of God or pollution of Water Works' facilities shall be sustained by Alexander. 12. The term of this Agreement shall be twenty (20) years, and shall be renewable automatically for like periods unless terminated by either party. Notice of termination shall be given in writing one year prior to the end of the tern or any renewal term; provided, however, that if the current sources of water for Water Works prove inadequate for any reason whatsoever, then, in such event, this Agreement may be terminated by Water Works giving Alexander two years notice of intent to terminate. 13 The parties agree that 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. 14. This Agreement and the rights hereunder shall not be assigned or transferred by Alexander, but shall be binding upon the successors of either party. 15. (A) Alexander covenants and agrees that it will not, without prior written approval of the Board of Directors of the City of Little Rock, sell, supply or deliver water to any person or customer outside the city limits of Alexander. -4- w rw w w �w w w �w �w �w ■w w w w (B) Alexander cots and agrees that it will not, without or written approval of Water Works, allow the extension of water facilities to any new customer whose average daily consump- tion exceeds five percent (5 %) of the volume of water required, at the time of such sale or connection, to supply all of Water Works' customers located in Alexander at the time of peak daily consumption of Alexander's water system. (C) Alexander further agrees to restrict its area growth by annexation to twenty percent (20 %) of its extraterritorial planning area, as of the date of this Agreement, for the first five (5) years of the cotitract; to fifty percent (50 %) for the second five (5) years; and to one hundred percent (100 %) after ten years. Alexander's extraterritorial area is described in Exhibit A to this Agreement. 16. This Agreement may be terminated by Little Rock or Water Works if Alexander fails to fully comply with its terms and provisions. 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 Little Rock: Little Rock Municipal Water Works Post Office Box 1789 AND Little Rock, Arkansas 72203 Attention: Waterworks Manager If to Alexander: City of Alexander City Hall Alexander, Arkansas 72002 Attention: Mayor -5- City of Little Rock City Hall, 500 West Markham Little Rock, Arkansas 72201 Attention: City Manager 387 18. Alexander ag* to abide by the rules and regulationsoceming the consumption of water published from time to time by the Board of Water Works Commissioners of the City of Little Rock, Arkansas; and the rules and regulations concerning operation, maintenance and protection of public water supplies published from time to time by the Arkansas Department of Health. 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. 21. Water Works agrees to the terms of this Agreement which have been accepted and. approved by the Board of Water Works Commissioners of the City of Little Rock, Arkansas, and the Board of Directors of the City of Little Rock, as evidenced by the signatures affixed hereto. 22. Little Rock retains the unilateral right to amend the terms of this Agreement to reflect that water service to Alexander shall be provided to a point of delivery in the form of a meter station at or near the Little Rock city limits. Little Rock shall provide notice to Alexander two (2) years in advance of exercising this provision. In the event that Little Rock exercises this provision, Alexander shall at its expense: (a) obtain necessary easements and construct a transmission line between Alexander and the point of delivery; (b) obtain a site for and construct a meter station at the point of delivery containing a flow meter or meters and other necessary equipment required by and acceptable to Water Works; and (c) construct and install pipelines, valves, hydrants, and appurtenant equipment required by and Ies M M M M M M M M M M M M® M acceptable to Water Wo *(the "Equipment "); (d) purchase all Oes, pipelines, hydrants, and appurtenant equipment within Alexander's city limits from Water Works. The parties agree that the design and materials used in the construction and installation of 389 the meter station and Equipment shall conform to specifications of Water Works. The parties further agree that all easements, or interests in real property, of any nature whatsoever, for the meter station and Equipment shall be acceptable to Water Works. Alexander covenants and agrees that its water system shall be designed and constructed to maintain adequate storage for all of its customers' needs, including, but not limited to, peak customer demands, fire flows, and interruption of supply. 23. This Agreement shall guarantee unfettered right of Water Works' personnel to have access to the facilities at any time for any purpose deemed necessary by Water Works. IN WITNESS WHEREOF, the parties hereto have executed this Agreement: Attest: Secretary Attest: City Clerk BOARD OF WATER WORKS COMMISSIONERS OF THE CITY OF LITTLE ROCK, ARKANSAS Un Chairman CITY OF LITTLE ROCK, ARKANSAS -7- Mayor m m m s m m m m= m m m® m CITY OF ALEXANDER, ARKANSAS Attest: Um City Clerk 511 Mayor Mr- O • rl U ^C� O � W ® O � ft ®® f ® � O ' ® I F [0 O r/ F- w w 4 aW C 3 d W H H H a i!H i W b Z O m V a 9