ORD NO 16-2002 C 4
ORDINANCE NO. /(.c 0
ORDINANCE AUTHORIZING THE MAYOR OF THE CITY
OF VAN BUREN TO ENTER INTO A SUPPLEMENT TO
FINAL SETTLEMENT AND RELEASE AGREEMENT WITH
THE CITY OF FORT SMITH.
WHEREAS, the City of Van Buren, Arkansas, and the City of Fort Smith entered
into an Agreement in 1983 regarding the impoundment of water on Lee Creek in
Crawford County and said Agreement required Fort Smith to furnish available water to
Van Buren at rates and pursuant to terms contained in said Agreement; and
WHEREAS, a lawsuit, resulting from different interpretations of the 1983
Agreement by the Cities of the terms contained therein with regards to rights and
obligations of the Parties thereto, seeking a declaration of the Parties' respective rights
and obligations under the Agreement, was filed in the Crawford County Circuit Court,
the same being styled City of Van Buren, Arkansas v. City of Fort Smith, Arkansas, Crawford
Circuit No. E- 2001 -255; and
WHEREAS, the City of Van Buren and the City of Fort Smith entered into a
Final Settlement and Release Agreement on December 19, 2001, to settle the aforesaid
lawsuit and to submit to binding arbitration certain unresolved issues regarding the
determination of a method for computing the rate under Paragraph 3, Subparagraph
Second, of the 1983 Agreement that Van Buren shall pay for water purchased from Fort
Smith for the years 2004 through 2021; and
WHEREAS, the parties desire to define the elements of the Rate Model that shall
be used to determine said rate and to define the circumstances and the manner in which
that Rate Model may be adjusted during that time period, the Municipal Utilities
Commission hereby recommends:
WHEREAS, the Van Buren Municipal Utilities Commission has recommended
that the Mayor of the City of Van Buren be and hereby is authorized to enter into, upon
behalf of the City of Van Buren, the following document:
(1) Supplement to Final Settlement and Release Agreement, a copy
of same being attached hereto as Exhibit `A';
Therefore, as this Ordinance is necessary for and in the best interests of the
citizens of the City of Van Buren, Arkansas, this Ordinance shall be of full force and
effect as of the date of its adoption and shall be implemented as of the dates set forth in
the Ordinance.
PASSED AND APPROVED THIS 1e day of September, 2002.
APPROVED:
John Rikgs, OR
ATTEST:
C aLA...Lt
Barbie- C —urtis, CIT- Y- GL-ERK
0