HomeMy WebLinkAbout2025-09-23-AGENDA PACKETRick Elumbaugh, Mayor
Jessica Davis, City Clerk
Timothy Meitzen, Attorney
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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.
Authorized Agent for the Cushman
Water Board
Recorder/Treasurer of Cushman
Mayor, City of Batesville
Recorder/Treasurer of Batesville
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A�
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 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