RES NO 12-01-1976 12 1 lo
RESOLUTION NO 2-- 7C'
,.A RESOLUTION MODIFYING CONTRACT'FOR SALE OF WATER.FOR RESALE?
AND FOR OTHER PURPOSES
WHEREAS, the cost of operating the Van Buren Water and
Sewer system has increased beyond 'the revenues collected; and,.
WHEREAS, the City of Van Buren is obligated to the pay-
ment of bonded indebtedness for construction of improvements
and betterments to the system and the cost thereof and the
cost of operating the water system makes it necessary that
such raise in rates be passed on to its customers; and,
e
WHEREAS, because of.a demonstrable increase in the cost
of performance under existing contracts with Oak Grove Water
Users Association, Inc., Cedarville Water Users Association, i
Inc., and Dora Rural Water Users Association, Inc., it is
necessary for the City of Van Buren to modify the provisions
•of Paragraph No. 5 of each of said contracts to increase
cost of water for resale to each of said associations from
twenty -five (250) cents per thousand gallons to thirty three
(330) cents per thousand gallons;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VAN BUREN, ARKANSAS:
Section 1. That the rate for sale of water to Oak Grove
'Water Users Association, Inc., Cedarville Water Users Association;
L.
Inc., and Dora Rural Water Users Association, Inc. under Para-
graph No 5 of the existing contracts be and the same is modified
to increase said rates from the existing twenty -five (250) cents
per thousand gallons to thirty -three (330) cents per thousand
gallons;
S.
Section 2. The City Councel hereby finds that $aid rates are 1
I
I 4 reasonable and necessary to be charged for monthly deliveries of F
i 0 and water for resale and it is necessary that same be charged an
r ri
collected in order to produce sufficient revenue to pay outstanding
bonds and interest thereon as they mature, 'the cost of water pur
chased from the City of Fort Smith or produced by the City .of
Van Buren, Arkansas, and together with the cost of the operation, of
the system. 6
2
Section 3. All"laws and parts of laws in conflict I
herewith are hereby repealed.
Section 4. It is ascertained 'and declared that there is
immediate need in. order to procure approved water and to pro-
tect the health, lives and property of the inhabitants of the
City of Van Arkansas, to charge and collect the rates
hereinabove 'set out; therefore, an emergency is found to
exist, that this resolution is necessary for the preservation
of the public peace, health and safety, .same shall take effect
and be in force without dt1ay, and the same shall be charged
against all water sold and delivered after�7,- 1977.'
K.
PASSED this day of December, 1976..
APPROVED:
.414 Mayo
ATTEST:
l
0
City Clerk
z
f r
b
1
Q7