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Ordinance 2016-12



WHEREAS, there has been a contract with  the City of Springdale for the Springdale  Water and Sewer Commission to provide sewer service  to customers  in certain areas of the City  of Johnson.

      WHEREAS, the most received contract was for ten (1 0) years and has by its terms expired. BE IT ORDAINED BY THE CITY COUNCIL OF JOHNSON, ARKANSAS, that,

Section I:         That the agreement attached hereto which is titled Inter-Municipal Contract for Sanitary Sewer Service Between the Cities of Johnson and Springdale, Arkansas bearing the date of    May 11th,2016, having been read, studied and considered by the Johnson City Council should be and hereby is approved and ratified; the Mayor and

Recorder-Treasurer are directed and authorized to execute same for and in the name of the City. 

Section 2:        Pursuant to the attached agreement  there is hereby levied  fees /rates forsanitary sewer service, sewer taps and associated services within that portion of Johnson served  by the Springdale Water and Sewer Commission identical to the fees/rates established  by the

relevant Springdale ordinance for users of their sewer system outside of the Springdale city limits.

Section  3:           There  is here by granted  to  the Springdale  Water and  Sewer  Commission  a license to own. Operate, maintain, improve, and place existing and new additional sewer facilities on existing and  new dedicated  street   rights-of-way.   Alleys, utility easements and other public passageways within that portion of the City of Johnson served by the Springdale Water and Sewer Commission. This license shall enable the Commission to lay, relay, install, improve, operate and maintain sanitary sewer lines and appurtenances over, under and across such public rights-of-wag', alleys and passageway's. This license shall be in full force and effect during the effective period of the agreement attached hereto. 

Section 4: A franchise is hereby granted unto the Springdale Water and Sewer Commission, without a franchise fee or franchise tax, to own, improve, maintain, expand and operate a sanitary sewer collection, storage and pumping system within the City of Johnson corporate limits on properties owned or leased by the Commission and on public rights-of-way, alleys and passageways as herein provided. Said franchise shall be for the effective dates of the agreement attached hereto.
              Section 5: Provision for sanitary sewer service for the residents of the City of  Johnson helps secure the public peace, health and safety. Therefore, an emergency is hereby declared to exist. This ordinance shall be immediately effective upon its passage and approval.

PASSED AND APPROVED this 10th day of May, 2016.

Chris Keeney, Mayor


Jennifer Allen, Recorder/Treasurer




THIS CONTRACT made and entered into this    11th  day of May, 2016 by and between the City of Springdale, Arkansas , a municipal corporation, aing  through

its Water and Sewer Commission, hereinafter called SUPPLIER , and the City of Johnson, Arkansas , a municipal corporation, hereinafter called USER,


WHEREAS, the SUPPLIER now owns and operates a public sewerage system consisting of gravity lines, sewage lift stations, and force mains located within the corporate limits of the City of Johnson, Arkansas;  and, 

WHEREAS , the SUPPLIER owns and operates a wastewater treatment facility with sufficient capacity to treat current and foreseeable sewage flows generated in its corporate city limits as well as future sewage flows from the City of Johnson, Arkansas ; and,

WHEREAS, the USER and SUPPLIER have entered into previous agreements whereby the SUPPLIER furnished sanitary sewer service to customers located in the City  of Johnson on an individual basis; and,

WHEREAS, it is to their mutual advantage that the USER and SUPPLIER enter into an agreement for the SUPPLIER to own, operate, and maintain a public sewerage system within certain areas of the City of Johnson, thereby protecting public health and maintaining the quality of life desired by the USER;

WHEREAS , it is to the parties' mutual benefit that a procedure be established for future expansion and improvements to the SUPPLIER'S sanitary sewer system in the City  of Johnson;


  1. COOPERATION:  The SUPPLIER and USER shall cooperate and communicate   in all dealings through the Springdale Water and Sewer Commission and the Johnson City Council. Any disagreements , questions, requests, additions to the sewer system, modifications of the sewer system, connections  or otherwise shall be handled  through the Johnson City Council, or its authorized representative, dealing directly with the Springdale Water and Sewer Commission, or its authorized representative. The Representative of the Johnson City Council shall have only such authority as is expressly granted by majority vote of the Johnson City Council.

  1. OWNERSHIP: It is agreed by the parties that the SUPPLIER shall continue to own, operate, maintain, and from time to time expand its sanitary sewer system located withinthe service boundary established in the corporate limits of the City of Johnson, Arkansas.

  1. CONSISTENT APPLICATION:Therules,procedures,regulationsandlawsconcerning the construction, operation and maintenance of said sanitary sewer system shall be applied to Johnson, Arkansas and Springdale, Arkansas in the same and consistent manner. The SUPPLIER shall act in good faith and shall not unreasonably withhold service, if economically feasible, to any potential customer located within the service boundary set forthhereinafter.

  1. SERVICE BOUNDARY: Sanitary sewer service shall be limited to customers located within the corporate limits of the City of Johnson as delineated on the attached service boundary map attached hereto as Exhibit "A" and made a part hereof as though included herein. It is recognized and agreed by the parties hereto that certain areas within the City of Johnson are currently being provided sanitary sewer service by the City of Fayetteville, Arkansas. This contract does not amend or modify areas currently being served by the City of Fayetteville. The parties agree that if in the future by written agreement the City of Fayetteville and SUPPLIER change the boundary line between them, this agreement shall be considered amended as of the execution of Fayetteville/Springdale agreement to incorporate that new boundary line without any further action by the parties hereto.

  1. AUTHORITY TO FRANCHISE: The USER agrees that it will, on or before the effective date of this agreement, cause to be adopted by vote of City Council, an Ordinance granting to the SUPPLIER a franchise, without charge or franchise tax, to own, maintainand operate a sanitary sewer collection, storage and pumping system within the USER'S corporate limits, and within the territory assigned to SUPPLIER per the memorandum of understanding between the cities of Fayetteville and Springdale, as amended by the parties from time to time. USER further agrees that it will cause to be passed by vote of its City Council, an Ordinance granting to the SUPPLIER, without charge or cost, easements and rights-of-way to lay, relay, install, maintain, and operate sanitary sewer lines and appurtenances, over, under, and across public streets, alleys, and passageways.

  1. TERM OF CONTRACT:   The SUPPLIER and USER hereby agree that the term of this contract shall be for a period of twenty (20) years from the date of this agreement and shall automatically terminate at such time.

  1. EFFECTIVE DATE: This contract shall become effective and enforceable on the date of this agreement and shall have the effect of terminating all prior contractual agreements on this subject between theparties.

  1. CONTRACT RENEWAL: Either party shall have the option to renew this contract upon terms and conditions as may be negotiated by the SUPPLIER and USER by giving  not less than six (6) months notice in advance of the termination date of this contract.

  1. SEWER RATES: The SUPPLIER shall supply sanitary sewer service through its collection system and shall charge sewer customer located within USER'S city limits according to the schedule of rates for customers located outside the corporate city limits of Springdale, Arkansas as established in the latest Springdale Ordinance prescribing sewer rates. It is specifically understood and agreed by and between the parties hereto, that, should the SUPPLIER experience a general rate increase within the corporate limits of the City of Springdale, the rates established above shall automatically increase in direct portion to the percentage increase within the City of Springdale. SUPPLIER shall provide notice to USER of any rate increase. As soon as legally possible, the Johnson City Council shall pass an Ordinance to mirror any increase or decrease of sewer rates contained in any ordinance adopted by Springdale City Council. The failure by the Johnson City Council to pass such an ordinance shall be a breach of this agreement for which SUPPLIER may seek all remedies available at law or equity, including, without limitation, the right to seek mandamus, mandatory injunction, specific performance, damages, or termination of this agreement.

  1. BILLING AND PAYMENTS:       The SUPPLIER shall issue billing and collection of all bills in accordance with ordinances of the City of Springdale and the rules and regulations of the Springdale Water and Sewer Commission which may be currently ineffect or hereafter adopted, and if any customer fails or refuses to pay said billing, the SUPPLIER shall discontinue sewer service to such customer in accordance with said ordinances, rules andregulations.

  1. LIABILITY: It is stipulated that the furnishing of sanitary sewer service is a governmental function and that the SUPPLIER does not agree to furnish any specific amount of sewer service. Sewer service shall be provided only to customers who enter into separate service  contracts  with  the SUPPLIER,  but the right to contract,  and  the  type of service to be rendered, shall always be subject to such rules, regulations, and policies of the Springdale Water and Sewer Commission as may be in effect from time to time. The SUPPLIER'S liability for damages from sewer stoppages and/or overflows shall be limited  to the same as if such stoppage or overflow occurred within the City of Springdale. SUPPLIER shall not be responsible for acts of God, acts of war, insurrections or rebellions, acts of a public enemy, acts of any unauthorized person, firms or corporation, or acts of the USER. Nothing contained herein shall abrogate the tort immunity available by law to either city.

  1. SEWER SERVICE CONNECTIONS: All water customers of the SUPPLIER located within the defined service boundary shall be required by the USER to connect to the sewersysteminaccordancewiththerulesandregulationsassetoutbytheCity ofJohnson, the City of Springdale, and the Arkansas Department of Health. The charges and requirements for sewer service connections shall be the same as for like service in the City of Springdale at the time the sewer service connections are made. Taps or connections to any and all sewer lines shall be made only by the SUPPLIER and only for sewer patrons obtaining their water service from the SUPPLIER. Approval of such taps or connections by the USER shall constitute the SUPPLIER'S authorization to make street cuts and openings where necessary. SUPPLIER agrees to repair street cuts required in street crossings,street taps and/or repairs with materials equal to or better than the materials and street condition prior to such streetcut.

  1. PLUMBING: Each customer shall install all plumbing in accordance with the ordinance,rules,andregulationsoftheCityofSpringdaleineffectatthetimesuchplumbing is installed.  All plumbing shall be inspected by a plumbing inspector licensed by the State  ofArkansas.

  1. SEWER LINE EXTENSIONS: Sewer extensions  shall be made  on  the  same basis which they are made for the City of Springdale, based on economic feasibility of such extensions, and shall be made at the sole discretion of the SUPPLIER, provided that in no event shall any extension or connection be made without the approval of user. The SUPPLIER and the USER specifically agree that no extensions shall be made or installed within a residential subdivision or private housing development except at the expense of the developer orowner.

  1. EASEMENTS:The USER hereby grants to the SUPPLIER the right to own, operate and place additional sewer facilities on dedicated public streets, alleys, utility easements  and other passageways. In order to facilitate required improvements, the USER agrees to cooperate with SUPPLIER and assist in obtaining authority to cross private property with sewer lines. The form  of such easements,  together  with the provisions  contained therein,  

shall be the same used by the Springdale Water and Sewer Commission at the time such easements are granted and such easements and fee titles where necessary shall show the Springdale Water and Sewer Commission as the Grantee thereon.  USER agrees to allow  its name to be added to any eminent domain actions pursued by SUPPLIER regarding property within the corporate limits of USER if SUPPLIER'S legal counsel deems it necessary. The USER further agrees it will not unreasonably impair, hinder or delay the obtaining of such easements, or the construction of said required improvements, but will offer full support in all ways necessary to accomplish such improvements. All costs and expenses including legal fees in the procuring of such easements or fee title shall be borne by SUPPLIER.

  1. (16)MAINTENANCE OF FACILITIES: The SUPPLIER shall maintain and service all current sewer facilities including the sewage lift stations and the proposed improvements, and for those which may be constructed into the system in the future. The SUPPLIER shall use reasonable diligence to provide and maintain uninterrupted service; but in case of cessation, deficiency, variation in pressure or any other failure of the service, resulting from Acts of God, public enemies, accidents, strikes, riots, wars, repairs, orders of a Court of competent jurisdiction, or other acts reasonably beyond the control of the SUPPLIER, the SUPPLIER shall not be held responsible for any damages, either directly or indirectly, resulting from such interruption or failure. If scheduled interruptions in service to the USER are necessary due to system repair, extension or rehabilitation, USER shall be notified of such outage prior to start of work. SUPPLIER shall notify its customers in the city of Johnson on the same basis it notifies its customers within the City of Springdale concerning interruptions. Notification shall be given by either one or all of the following media: Press, radio, letter, telephone or personal contact. Emergency repairs, resulting in temporary interruption of service to customers, can be made without notification to expedite necessary repairs and restoration of service.

  1. (17)ORDINANCES AND REGULATIONS: The USER agrees to adopt such resolutions, ordinances, rules and regulations as will allow the SUPPLIER to construct, maintain and operate the sewage system in accordance with the rules, regulations, and specifications of the Arkansas Department of Health, the U.S. Environmental Protection Agency,  the Arkansas Department of Environmental Quality, and the SUPPLIER. Non-compliance with the said rules, regulations, or specifications may result in the discontinuance of service. The USER also agrees to adopt the necessary ordinances to provide the SUPPLIER with the necessary authority to implement any enforcement action of state and federal law, including regulations.

  1. (18)COMPLIANCE: The USER  and all sewer  customers  shall comply  with,  at all  times, the health ordinances, rules and regulations of the City of Springdale, the Springdale Water and Sewer  Commission,  the U.S. Environmental  Protection  Agency,  the Arkansas

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Department of Health and Human Services, and the Arkansas Department of Environmental Quality governing sewer operations and usage which may now exist or may hereinafter be promulgated. Failure or refusal of any customer to comply with such ordinances, rules or regulations will subject the customer to immediate discontinuance of water and sewer service and the supplier shall in no way be liable for any damages or expenses which may result from such discontinuance.

  1. TAXES PROHIBITED:   The USER will not during the period of this contract or    any renewal thereof, levy any franchise tax, occupation tax or any other tax of any form whatsoever, by whatever name it may be called, upon the SUPPLIER, the sewer system or the operations called for by this contract. Nothing contained herein shall preclude the collection of any gross receipts tax (i.e. state, county or local sales tax) enacted in accordance with state law and not otherwise made exempt by state law.

  1. NOTICES: Any written notices provided for herein shall be sufficient if sent by certified mail, return receipt requested, postage prepaid, to the respective parties at the addressbelow:

Springdale Water and Sewer Commission 526 Oak Ave.

Springdale, AR 72764

City of Johnson PO Box 563

Johnson, AR  72741

  1. COMPLETE AGREEMENT: It is agreed that neither party hereto is relying upon any oral or written information made by the other prior to the signing of this contract unless expressly provided herein, and that this contract constitutes the entire agreement between the parties and same shall not be hereafter amended or modified unless reduced to writing and signed by the parties hereto. It is further agreed that all earlier contracts for sanitary sewer service are herebyrescinded.

  1. SEVERABILITY: If any phrase, clause, sentence  or paragraph  of this contract shall be declared invalid by the judgment or decree of a court of competent jurisdiction, such invalidity shall not affect any of the remaining sentences, paragraphs or clauses of this contract.

IN WITNESS WHEREOF, the SUPPLIER and the USER have executed these presents by their respective authorized representatives, having been authorized to do so by appropriate resolutions of their respective governing bodies.

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CITY OF SPRINGDALE, ARKANSAS                                                                    

Chris G. W eiser, Chairman


               Doug Sprouse, Mayor

             ATTEST :                                                                               

Paul E. Lawrence, Secretary                                         Denise Pearce, City Clerk


             ATTEST :

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