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1528RESOLUTION NO. A RESOLUTION TO APPROVE AN AGREEMENT BETWEEN THE WEST MEMPHIS UTILITY COMMISSION AND WILLIAMS DIESEL SERVICE FOR THE RESALE OF WATER, TO AUTHORIZE THE UTILITY COMMISSION TO EXECUTE THE AGREEMENT AND FOR OTHER PURPOSES. ~ WHEREAS, the West Memphis Utility Commission has received a request from Williams `°' n t resell water and Diesel Service for permissio o , WHEREAS,the policies of the West Memphis Utility Commission require any authorization to resell water to be by written agreement; and WHEREAS, the Utility Commission has reviewed and approved the attached written agreement with Williams Diesel Service to authorize the resale of water and the Utility Commission has recommended this agreement be approved by the West Memphis City Council; NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF WEST MEMPHIS, ARKANSAS, THAT the attached agreement with Williams Diesel Service for the resale of water is hereby approved and the West Memphis Utility Commission is hereby authorized to enter into such agreement on behalf of th ity of West Memphis. ADOPTED this day of , 1997. AL BOALS, MAYOR REG'EiVED CITY CLERK OFFICE DATE_~~.s~'~~ ~~~~~ APR-14-97 MON 213 PM CITY OF W.MPHS UTILITY FAX N0. 501 732 7623 AC3RERMRNT This Agreement, made and entered into this day of 1997, by and between the City of West Memphis, Arkansas, a municipal corporation of the State of Arkansas (hereinafter referred to as the "City") acting by and through the west Memphis Utility Commission (hereinafter referred to as the "Commission") and Williams Diesel Service (hereinafter referred to as "Williams"): ~ WHERBAB, Williams is presently being furnished with water from the City's water mains at the city limits; and ~`' WHRREAB, Williams has requested permission to resell water subject to the policies and regulations of the Commission and the Commission has agreed to grant this request; and WHEREAS, The policies of the West Memphis Utility Commission do nvt permit customers receiving water service to resell water to other customers except under a written contract agreement; NOW, therefore, in consideration of the mutual covenants and agreements hereinafter contained, the parties hereby agree as follows: 1. The City agrees to furnish to Williams and Williams agrees to purchase and take from the City a supply of water through metered connections authorized by the Commission from the City's water mains at the city limits to be used by Williams in supplying water to consumers located beyond the present city limits. 2. Williams shall pay to the City all. charges for water furnished hereunder when due and at the rate fixed by the ordinance of the City now in force and effect or which may hereafter be amended. 3. City reserves the right to any time during the term of this agreement, or any extension or renewal thereof, to class~,fy water consumers and to fix rates for each class of consumers, and also to £ix rates for water furnished to Williams and persons or other water users, for consumption outside the corporate limits of the City, higher than the rates fixed for water furnished to consumers of the same class for consumption within the corporate limits of the City, subject to such limitations as are then applicable by law. 4. This agreement shall be in force and continue in effect far a period of not longer than ~,.. yearns) from the date hereof, unless sooner terminated ae herein provided. 5. Williams, at its own cost and expense, shall provide and install the master meter or meters and metering equipment P, 5 APR-14-97 MON 214 PM CITY OF W.MPHS UTILITY FAX N0. 501 732 7623 P. 6 measuring and controlling the said supply of water, which meters and meter equipment shall be of such type, size and design as shall be satisfactory to and approved by the Commission. The control valves and the master meter or meters and meter equipment shall at all time$ be under the control of the City, but the full and complete maintenance and protection of such meters and meter equipment shall be the obligation of Williams. 6. The properly authorized officers, agents and representatives of the City shall at all times have free access ~, to the master meter or meters and alI other facilities herein ;~ provided for, for the purpose of shutting off the water for failure to pay the water rates or charges in this agreement provided to be paid by Williams, and for the purpose of reading the registrations of said master meter or meters, and to examine, shut off and test the same to ascertain whether or not they are in good condition and repair, and to make such repairs upon the same as may be necessary, the expense of any and all necessary repairs to be borne by Williams. 7. Williams, at its own cost and expense, shall provide and keep in repair all feeder mains, connections, meter vaults, receiving tanks, booster or other pumps, and slow acting valves. or other appliances deemed necessary by the Commission. 1t at any time the master meter or meters or meter housing, which also are to be provided by Williams, shall prove unsatisfactory to the Commission or be out of repair they shall be replaced or repaired by the City and the cost and expense of such replacements or repairs shall be charged to and paid by Williams. 8. Williams agrees to comply with all applicable rules and regulations of the City and the Commission. Williams further agrees that the duly authorized engineers and inspectors of the City, in collaboration with the representatives of Williams, shall be allowed to make inspections and require tests for tightness of the piping of the waterworks installations and of all plants or other buildings of water users within the service area of Williams and Williams further agrees to make such changes in its piping and to eliminate such cross connections or other connections as in the judgment of the Commission are necessary. The failure, neglect or refusal on the part of Williams to make promptly and properly such changes in its piping, to maintain tightness, or to eliminate undesirable connections upon notice in writing to do so from the Commission, shall furnish sufficient ground for the City to shut off the water and discontinue the service hereunder until changes and corrections in said piping or connections required by the Commission are made by Williams. 9. Williams agrees to prevent excessive use and waste of water. 2 ~: APR-14-97 MON 2:14 PM CITY OF W.MPHS UTILITY FAX N0. 501 732 7623 P. 7 10. In order to safeguard its water supply received hereunder and the City's water supply, Williams hereby agrees to maintain a safe water supply throughout i.ts system, and to provide, maintain, and operate at all times during the period of this agreement, and any extension or renewal thereof, chlorinating equipment of such kind and capacity that a proper chlorine residual or similarly effective result may be carried throughout its water supply system. All proposed waterworks improvements which must be approved by the Commission shall be disinfected in accordance with the requirements of the Commission and the State of Arkansas. 11. Williams agrees to notify the Commission as promptly as possible of all emergency and other conditions which may directly or indirectly affect the quality of the water received hereunder and the City's water supply and further agrees that the duly authorized engineers and inspectors of the City shall be allowed to make inspections and required tests of the quality of the water within the service area of Williams. 12. Williams agrees not to resell or permit any water furnished hereunder to be used to supply any other municipality or any consumer of water located or residing outside the present service area of Williams except if and when it should be specifically authorized in writing by the Commission. 13. Williams further agrees not to sell, lease or give any interest in or right or privilege to utilize its water supply main or mains to any other municipality or any consumer of water whose premises are located outside the present service area of Williams, and further agrees not to permit any connection to be made to its water supply main or mains without first securing the consent in writing of the Commission. 14. At the end of each billing period, but at least quarterly, Williams agrees to submit to the Commission a complete list of all water consumers serviced by Williams. 15. The City and the Commission shall not be responsible in damages for any failure to supply water or for interruption of the supply. Williams agrees to save and hold harmless the City and the Commission, their agents, servants and employees, from all damage to real and personal property occasioned or caused by the making of the water connection or connections herein referred to, or caused by the furnishing of water hereunder, and shall also keep and save the City and the Commission harmless from all damage of every kind, nature and description which may arise as the result of the making of this agreement. 16. Zf Williams shall refuse, neglect or fail to pay promptly the water bills rendered for the water supplied it APR-14-97 MON 215 PM CITY OF W,MPHS UTILITY FAX N0. 501 732 7623 P. 8 hereunder within the time prescribed by the ordinances of the City or the regulations of the Commission, or if Williams shall fail to comply with or perform any of the conditions or obligations on its part to be complied with or to be performed hereunder, and if after such failure the City or the Commission shall deliver to Williams a notice in writing of its intention to shut off the supply of water on account of such failure, refusal or neglect, then the City shall have the right to shut off the supply at the expiration of ~ days after the giving of such notice and to terminate this agreement unless within such ~,~ days Williams shall make good such failure. The shutting off of the supply of water far any such cause shall not release Williams from its obligation to make payments of any amount or amounts due or to become due in accordance with the terms hereof. 17. No assignment or transfer of this agreement shall be made by Williams. 18. In the event that all or any portion of the area serviced by Williams is annexed to the City of West Memphis, or in the event that the City of West Memphis extends water service to all or any portion of the area serviced by Williams, this agreement shall be null and void as to such area or areas. In witness whereof, the parties hereto have set their respective hands this day of 1997. WEST MEMPHIS UTIT,zTY COMMISSION By: CHAIRMAN WILLIAMS DIESEL SERVICE By: CHES wILLIAMS 4