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HomeMy WebLinkAbout2025-09-23-AGENDA PACKETRick Elumbaugh, Mayor Jessica Davis, City Clerk Timothy Meitzen, Attorney A HISTORIC TREASURE n�n a 'k� 9 \',SAS' AGENDA CITY OF BATESVILLE CITY COUNCIL 500 EAST MAIN BATESVILLE, AR 72501 September 23, 2025 5:30 P.M. COUNCILMEMBERS Brittany Bennett Scott Fredricks Julie Hinkle Paige Hubbard Fred Krug Lackey Moody, Jr. Landon Reeves Robb Roberts 1. CALL TO ORDER 2. INVOCATION 3. ROLL CALL BY CITY CLERK 4. APPROVAL OF MINUTES 5. APPROVAL OF AGENDA 6. COMMENTS FROM CITIZENS 7. UNFINISHED BUSINESS A) Consider a resolution authorizing the Batesville Water Utility to enter into a formal water utility agreement with the City of Cushman 8. NEW BUSINESS A) Consider an ordinance authorizing the City of Batesville to conduct business with certain individuals who serve as members of the City Council, City Employees, various commissions and boards of the City of Batesville - Hinkle B) Consider an ordinance authorizing the City of Batesville to conduct business with certain individuals who serve as members of the City Council, City Employees, various commissions and boards of the City of Batesville - Roberts C) Executive Session 9. COMMENTS FROM THE MAYOR 10. LIAISON REPORTS 11. COMMENTS FROM COUNCIL MEMBERS (by roll call) 12. ADJOURNMENT Batesville-- My Hometown... Make it Yours! RESOLUTION NO. A RESOLUTION AUTHORIZING THE BATESVILLE WATER UTILITY TO ENTER INTO A FORMAL WATER UTILITY AGREEMENT WITH THE CITY OF CUSHMAN WHEREAS, the City of Cushman has not produced water for its own consumers since on or about March of 2021; and WHEREAS, the City of Batesville through the Batesville Water Utility (`BWU") has produced all water distributed by the City of Cushman since on or about March of 2021; and WHEREAS, that due to the state of its infrastructure, Cushman currently loses approximately eighty percent of the water provided by BWU; and WHEREAS, due to said losses Cushman is unable to financially pay the full monthly bill; and WHEREAS, currently Cushman is paying the city the flat rate of $11,500 per month; and WHEREAS, Cushman and Batesville wish to enter into an agreement that acknowledges current deficits and sets expectations for both parties going forward; and WHEREAS, Cushman is actively repairing its infrastructure with the goal being to lower its losses to the point where said flat monthly payment will begin to address said deficit. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Batesville, Arkansas: Section 1. The City hereby authorizes the Mayor to enter into the water utility agreement with the City of Cushman, Arkansas, attached hereto as Exhibit "A." PASSED AND APPROVED this _`h day of September, 2025. APPROVED: Mayor Rick Elumbaugh ATTESTED: Jessica Davis, City Clerk AGREEMENT KNOW ALL MEN BY THESE PRESENTS: THAT the Batesville Water Utility, an agency of the City of Batesville, Arkansas (hereinafter "BWU") and the City of Cushman, Arkansas by and through its appointed Water Board (hereinafter called "Cushman") are governmental subdivisions of the State of Arkansas and each are providers to their water users, and, THAT CUSHMAN has not produced water for its own consumers since March 1, 2021; THAT BWU has produced all water distributed by the City of Cushman since March 1, 2021; and, THAT CUSHMAN water currently looses approximately eighty percent (80%) of the water provided to it by BWU due to leaks; and, THAT CUSHMAN has not been financially able to pay its full monthly water bill to BWU due to said losses; and, THAT CUSHMAN is diligently working to repair its water leaks; and, THAT CUSHMAN recognizes that it is indebted to BWU for water already provided and will continue to run deficits to BWU until leaks are repaired to an adequate level; and, THAT CUSHMAN and BWU have arrived to an agreement whereby BWU agrees to sell and CUSHMAN agrees to buy water to be utilized at Cushman to provide water to its users as follows: 1. That Cushman agrees that it shall be responsible for paying for all water provided at BWU's wholesale bulk water rate as provided by the Batesville Code of Ordinances at the time said water was provided. 2. That based on water provided to Cushman for which BWU has not been compensated since March 1, 2021, Cushman is indebted to BWU in the amount of $959,713.21 ("deficit") as of August 1, 2025. By its signature hereto Cushman acknowledges said indebtedness and promises to back said monies in full to BWU. That Cushman acknowledges that the spreadsheet attached as Exhibit "A" is an accurate representation of sums paid by Cushman and debts owed for water supplied through August 1, 2025. 3. That the BWU shall provide an updated spreadsheet of said sums paid and indebtedness incurred via an email to the Cushman Mayor on a monthly basis or upon request by any elected official or waterboard member of Cushman. Said indebtedness based on the updated spreadsheet shall be deemed accepted by the Cushman as proper unless objected to by Cushman within thirty days of receipt. Said objection should post marked within said 30 days and addressed to the Mayor of the City of Batesville by Certified Mail or by hand delivery to the Mayor of Batesville. 4. That Cushman is currently paying the sum of $11,500 per month to BWU in exchange for BWU providing Cushman's water needs. 5. That BWU agrees to keep providing water on a monthly basis at the rate of $11,500 per month for the next twelve (12) months upon the following terms: a. Cushman shall be responsible for repaying all deficits accumulated and owed as well as deficits it shall accumulate for the foreseeable future to BWU; b. Cushman shall continuously make repairs to the leaks within its system during the term of this agreement, and document said repairs on a minimum monthly basis; C. Cushman shall provide B WU with a quarterly report detailing repair efforts, financing, and grant opportunities for which they have applied; d. Cushman's water usage shall be stabilized (within twenty percent loss rate) or decreased based on the same month's average total metered consumption in gallons from the same months in prior years; e. Cushman agrees to increase the monthly amount payable to BWU if it financially possible; f. That Cushman shall continue to pay a minimum of $11,500, even after its monthly usage bill falls below that amount. Said sums paid in excess of the monthly bill shall be applied to the indebtedness until all indebtedness is paid to BWU. And Cushman's monthly minimum payment for water shall not decrease until all accumulated indebtedness to B WU has been paid in full; g. That Cushman agrees to supply BWU with a copy of their most recent audit for their water association and/or city upon request by BWU as well as its monthly billing, receipts, and expenses; and i. Regardless of the month of the term of this agreement, upon the cumulative indebtedness reaching $1,500,000, as confirmed by BWU, this contract shall terminate thirty days from notice being conveyed to the mayor of Cushman via mail, email, or phone, unless the terms are extended or renegotiated by a written agreement approved by the parties. 6. That said indebtedness shall be interest free, so long as the terms of the agreement are complied with by Cushman and all indebtedness is paid back to BWU on a monthly basis as contemplated herein. 7. Failure of Cushman to fulfill the terms a specified herein shall be grounds for default and may result in termination of service, and BWU may seek judgment and collections against Cushman. That said judgment and collection efforts shall have a six percent prejudgment interest from the month said water was provided. 8. That at the end of term of this agreement, said contract will terminate unless an extension or new agreement is reached by the parties. Upon termination of this contract by default or the term ending without a properly renegotiated and executed contract by the end of this agreement, the entire indebtedness owed by Cushman to BWU will become immediately due and payable. If BWU is not paid in full within 30 days of said termination, BMW may pursue the debt owed by Cushman with 6% prejudgment interest. 9. That this agreement and all other subsequent agreements related to the indebtedness and supplying of water to the City of Cushman by the City of Batesville are subject to approval by the Batesville city council and the Cushman Water Board prior to ratification of said agreement. 10. Arkansas law shall apply to this agreement, and Arkansas law shall be used to construe its terms in any legal or arbitration proceeding or other dispute arising here from or in any way related hereto. 11. The parties agree that the sole venue and forum for any lawsuit arising from this agreement and/or the debt(s) and/or obligation(s) incurred hereunder by either party shall be the Circuit Court of Independence County, Arkansas. 12. This agreement may not be modified verbally. Modification hereof may only be achieved by execution of a written modification signed by both parties. 13. The parties acknowledge that this Agreement is reasonable, valid, and enforceable; however, if any part of this Agreement is held by a court of competent jurisdiction to be invalid, it is the intent of the parties that such provision be reduced in scope only to the extent deemed necessary to render the provision reasonable and enforceable and the remainder of the provisions of this Agreement will in no way be affected or invalidated as a result. 14. This Agreement contains all terms and conditions agreed to by the Parties. Statements or representations which may have been made by any Party to this Agreement in the negotiation stages of this Agreement may in some way be inconsistent with this final written Agreement. All such statements are declared to be of no value to either Party. Only the written terms of this Agreement will bind the Parties. WITNESSED by the signature of the authorized representatives of the parties hereto. 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WHEREAS, the City of Batesville, Arkansas recognizes the importance of certain financial services provided to the City by the Bank of Cave City ("BCC"); and WHEREAS, a certain member of the City Council also serves in an executive role at BCC, which provides financial services to the City; and WHEREAS, Ark. Code Ann. § 14-42-107 requires the governing body of a municipality to approve by ordinance any contract or business arrangement between the municipality and an entity in which a Council member, employee, board or commission member profits from directly or indirectly through their position at said entity; and WHEREAS, the City Council acknowledges the following affiliations and finds it to be in the City's best interest to continue its financial relationship with BCC and approves the following individuals' roles within the City: Name Position with City Role with Bank of Nature of the Entity Cave City Bank of Cave City Business Julie Hinkle City Council Vice President of Financial Services Member Batesville Branch NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF THE CITY OF BATESVILLE, ARKANSAS, THAT: SECTION ONE: Pursuant to Ark. Code Ann. § 14-42-107, the Council of the City of Batesville hereby approves and authorizes the City to conduct business with the Bank of Cave City, acknowledging the positions held by Julie Hinkle, who serves on the City Council. SECTION TWO: The City Council affirms that it is in the best interest of the City to receive the financial services provided by BCC, and that the involvement of this individual does not impair their ability to serve or act in the City's best interest. SECTION THREE: The provisions of this ordinance are severable. If any section, clause, or provision is found to be invalid, the remainder shall remain in full force and effect. SECTION FOUR: All ordinances or parts thereof in conflict with this ordinance are repealed to the extent of such conflict. SECTION FIVE: Emergency Clause. Due to the need to ensure uninterrupted financial services and maintain continuity of operations for the benefit of the citizens of Batesville, an emergency is hereby declared. Therefore, this ordinance shall be in full force and effect from and after its passage and approval. APPROVED AND ADOPTED THIS DAY OF SEPTEMBER, 2025. CITY OF BATESVILLE, ARKANSAS RICK ELUMBAUGH, MAYOR ATTEST: JESSICA DAVIS, CITY CLERK ORDINANCE NO. AN ORDINANCE TO AUTHORIZE THE CITY OF BATESVILLE TO CONDUCT BUSINESS WITH CERTAIN INDIVIDUALS WHO SERVE AS MEMBERS OF THE CITY COUNCIL, CITY EMPLOYEES, VARIOUS COMMISSIONS, AND BOARDS OF THE CITY OF BATESVILLE; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. WHEREAS, the City of Batesville, Arkansas recognizes the importance of certain financial services provided to the City by First Community Bank ("FCB"); and WHEREAS, a certain member of the City Council also serve in an executive role at FCB, which provides financial services to the City; and WHEREAS, Ark. Code Ann. § 14-42-107 requires the governing body of a municipality to approve by ordinance any contract or business arrangement between the municipality and an entity in which a Council member, employee, board, or commission member profits from directly or indirectly through their position at said entity; and WHEREAS, the City Council acknowledges the following affiliations and finds it to be in the City's best interest to continue its financial relationship with FCB and approves the following individuals' roles within the City: Name Robb Roberts Position with City Entity City Council Member and Public Works Commission Member Role with First Community Bank Senior Vice President for Commercial Lending Nature of First Community Bank City Business Financial Services NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF THE CITY OF BATESVILLE, ARKANSAS, THAT: SECTION ONE: Pursuant to Ark. Code Ann. § 14-42-107, the Council of the City of Batesville hereby approves and authorizes the City to conduct business with First Community Bank, acknowledging the positions held by Rob Roberts, who serves on the City Council, and as member of the Public Works Commission. SECTION TWO: The City Council affirms that it is in the best interest of the City to receive the financial services provided by FCB, and that the involvement of this individual does not impair their ability to serve or act in the City's best interest. SECTION THREE: The provisions of this ordinance are severable. If any section, clause, or provision is found to be invalid, the remainder shall remain in full force and effect. SECTION FOUR: All ordinances or parts thereof in conflict with this ordinance are repealed to the extent of such conflict. SECTION FIVE: Emergency Clause. Due to the need to ensure uninterrupted financial services and maintain continuity of operations for the benefit of the citizens of Batesville, an emergency is hereby declared. Therefore, this ordinance shall be in full force and effect from and after its passage and approval. APPROVED AND ADOPTED THIS DAY OF SEPTEMBER, 2025. CITY OF BATESVILLE, ARKANSAS RICK ELUMBAUGH, MAYOR ATTEST: JESSICA DAVIS, CITY CLERK