HomeMy WebLinkAbout2025-09-05-R RESOLUTION NO. 09-05-25-R
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 23`d day of September,2025.
APPROVED:
BY:
Mayor Ri mbaugh
ATTESTED:
Jessica Davis, C- 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,
THAT CUSHMAN has not produced water for its own consumers since March 1, 2021;
and,
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 BWU 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 BWU 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 herefrom 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 Parry. 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
CUSHMAN TEMPORARY LEAK AGREEMENT CURRENT DATE 09103/2025
FROM 2-28-19 TO CURRENT DATE
Adjusted to Actual Taxable total Metered Act,Consump in service S,-mice Sian Service rod Cons
fTil1 Date Bill Type Service Code Rate Code Dollars Dollars Diff-Dollars Consumption in gallons hundred of 91 Status Date Date Year
Charged 1 1
12/31/2025 Regular 100 actual S I 1.",rw 00 S S 11,500m Active i `'Xv 12r02(2'025 2126
I I/aof2m Regular 1100 actual S 11,5W.00 S 1,500.00 Aclive 10.41,4120 ;14)V2075 21z4-5
10/31/2025 Regular 1100 actual S I 1's(Na 00 S S 11,500m Active 09 10 1"Wt ii)M2r-025 2025
09/3012025 Regular 1100 sKtual S 11,5W.00 $ S 11.500.00 Active 08XI oqjolovs 2025
08131/2025 Regular 1100 actual S I I,SW 00 3 40,19710 S (28,697.10) 10,522,WO 105,228 Active ;,m)2=5 2045
-
071310025 R0911131 1100 actual S 11,5w'00 $ -m'fm S (23.108 05]1 9,069,700 4< 90,597 Active ()O;o V20i "�'-IOZW25 2025
06,30r2025 Regular 100 S 11,50000 S 37�535,05 70 S (26,035,70) 9'4713,11210 98,261Active L ol,20i ,'601r425 205
05131 S 115moo S 9�11300
25 Regular 100 actual 34,813.95 S (23.31395) "Ye ')51011,102$ 2M
04,30/2025 Regular 100 actual S 11500,00 S 31,78%66 S (20,289k6) 8.321 83,219 Active 7076
0;1i3012025 Regular 100 actual S 11,500,00 S 34.75W,16 S (23.25016) 9,096,900 K969 Active 425
02128=5 Regular 100 actual S 11-50000 S 40,353,33 $ (28,85133) 10,563,700 105,�66537 Active 0�V I r4-25 2,025
];M I
0 1,31 rD25 Regular 1100 actual I 1-51W 00 S 33,615,24 1 S (22,115,24)1 8,799,800 87.9% Active- 12101,702A 0 1?V7°, 202F,
FROM 3.31-21 TO CURRENT DATE
Adjusted to Actual Taxable Cliff-Dollars TOW Metered Ad,Consump in service service Sian $emce End Cons
C3rR Date Bill type Service rode Rate Code Dollars Dollars Consumption In gallons hundred of gl, Status Date Date Year
Charged
12/31/2024 f1i'V11131 100 actual S 11,000,00 $ 31,358,01 S (20.358,01) 9,115,700 91,157 Active 4024 i2;02!20�1'11
11130/2024 Regular 100 actual S 111-00000 S X001,96 S (19,001.96) 8.721,WO $7,215 Active O;WiW24 I txl'
10/3012024 Regular 10D aalial S I LODD-00 S 27.989,56 S (16,989.56) 8,136.500 g I_V,5 Active 09Vi2024 11)021 u.
09/30/2024 Regular 1()0 actual S 11,0W00 S 30,35456 S (19.354.56) 8,824,00D 88,240 Active 114,02;2,024 0"1 Q1112
08/31/2024 Regular 1()0 actual S 111-00000 S 31,52588 S (20,525.88) 9,164,5W 91.645 Active 07 4024 08,102,20224
07131 f2024 Regular 1100 actual S 11,00000 S 24,496,58 S 0 3A96,58), 7,121,100 72,211 Active teo',�M2A 07V2,",1
M,2&2024 Regular 100 actual
$ 11 OW,00 3 29,376"91 S (18,376.91) 8'539,o00 85.398 Active t15%OW424 VOW01W24
0,5179r2024 Regular 100 actual S 11,00-00 S 21.639,32 S (10.63932) 6,290,5W 62,905 Active 04r01,1024 0501;2021
04t290024 Regular 100 actual $ 11-00000 S 211,25SA2 $ (10,25542) 6,773,200 65,370 Active 03a011424 N;O 14074
03MQ024 Regular 100 actual S 11-00000 $ 21,755,42 S (10.255,42) _7178.901I 6 t,789 Active. 02�0 14=4 03,01*W4 202,-
02QW074 Regular 100 S 11,000.00 $ 29,9101,89 $ 8,717,700 87,177 Active ()V01,W24 2024
01r3lQaortal024 Regular 100 aortal $ (10,357,54)1 6,208.600 62.086 [Eve !2XA,1A13 01',3V2,024 IX22
FROM 3-31-21 16 CURRENT DATE
Adjusted to Actual Taxable total Metered act.Meter reading Service Service Stan Service End Cons
Bill Date Bill Type Service Code 'R'jte G,do Dollars Dollars Ddf-Dol Cnnsumpwn in q)Wions Consumption Stairs Dale Date Year
Charged
12r302023 Regular 100 adj.to S 1 11000.00 S 7.4,966.50 S (13,966.50) 7,851.100 TOOK OFF BASE RATE 78,511 Active 10/02/2023 11102/20Z3 202
1 wo=3 Regular 100 adj.to S 11,000.00 S 26.033.39 S (15.033.39) 8,186.600 TOOK OFF BASE RATE 81,866 Active 09/p1i2Q23 10/02/2023 202
10t312023 Regular 100 adj.to S 11,000.00 S 35,277.01 S (24,277.01) 11,093,400 TOOK OFF BASE RATE 110,934 Active 08/01/2023 09JO1/2023 202
M30/2023 Regular 100 adi.to S 10,500,00 ..$..,, 31,764.07 $ (21,264,07) 9,988.700 TOOK OFF BASE RATE 99,887 Active 07,'O5t2023 OMIM23 202
08M1/2023 Regular 100 adj.to S 11,000,00 S ' 28,451.78 $ (17.451.78) 8,947.100 TOOK OFF BASE RATE 89,471 Active 07/05/7073 OS/012023 202.
07M1=3 Regular 100 adj.to S 10.500,00 S 35,056.00 S (24,556,00) 11.023,900 TOOK OFF BASE RATE 110,239 Active 06/0112023 07/05/2023 202
OMM023 Regular 100 adj,to S 10,500.00 $ 29,322.14 S (19,822.14) 9.M,80O TOOK OFF BASE RATE 92,208 Active 05R112023 0610/2023 202
05M2023 Regular 100 adi.to S 10,500.00 S 22,627.93 S (12,127,93) 7,115,700 TOOK OFF BASE RATE 71,157 Active 04103/2Q23 05/012023 202
04/W/M3 Regular 100 adj.to S 10,500.00 S 26.543.14 $ (16,043.14) 8,346,900 TOOK OFF BASE RATE 83,469 Active 03/01/2023 04103=3 202
03/3(2023 Regular 100 adj.to $ 10,500,00 S 24,962,68 S (14,462.68) 7.849.900 TOOK OFF BASE RATE 78,499 Active 01292023 03/01/2M3 202.
022e2023 Regular 100 adi.to $ 10,5Q0.00 $ 28.111.20 S (17.611.20) 8.840,000 TOOK OFF BASE RATE 88.400 Active 121300022 01/29=3 202:
Adjusted to Actual Taxable total Motered act.Meter reading Service Service Stan Service End Con:
Bill Dale SIII Type Service Code Rate Code Dollars Dollars Consumption Dollars total
in gallons Consumption Status Date pate Yea
Gterged
0112912023 Regular 100 adj.to S 10,500.00 $ 28,848.32 $ (18,348 32) 9.071.800 TOOK OFF BASE RATE 90.718 Active 1210112022 01102MO23 202-,
12/30/2022 Regular 100 adj.to S 10,OQO.00 S 23,766.97 S 13,766.9 7,561,BOO 75,61a Active t1/01/2622 12/0212022 202:
11129/2022 Regular 100 adj.to $ 10,000:01 S 26A08.61 $ (16,408.61) 8,416,700 84,167 Act- 10/0112022 11/012022 2OZ
10/30/2022 Regular 100 adj.to S 10,000.00 $ 27,981.11 $ (17,981.11) 8,925,600 89,256 Active pg/0wom imirim 202i
09/3012022 Regular 100 adj.to S 10,000.00 S 24,068.25 S (14,068.25) 7,659,300 76,593 Active 08/02/2022 0WZQ022 202,
48 lM22 Regular 100 adj.to S 10,000.00 S 32,590.78 $ (22.590.78) 10,417.400 104,174 Active 0710ZW22 08/O1/2022 202;
0713112022 Regular 100 adj.to S 10,000.W S 29,430.94 $ (19.430.94) 9,394,800 93.948 Act" 06102*022 07/022022 2022
0613012022 Regular 100 adj.to S 10,000.00 S 28,38L58 $ (18,38t_56) 9,055,200 90,552 Active 05/022022 0610712022 2022
05r312022 Regular 100 adj.to S 10,000.00 $ 26,736.15 S (16,736.15) 8,522,700 85,227 Active 04/01*022 0S/Q r2M 2022
04MI2022 Regular 100 adj.to S 10,000.00 $ 27,209.23 S (17,209,23) 8,675,800 86.758 Active 03/01/2022 04/012022 2022
_._.._.__.....03292022 Regular 100 adj.to S 10,OQ0.00 S 24,050.94 $ (14,050.94)1 7.653,700 76,537 Active 02/0112022 0310IM22 2022
02J272022 Regular 100 adj.to S 10,000.00 $ 22,931.75 $ (12,931.75)1 7,291,500 72,915 Active 01/012022 02/012022 2022
0128r2022 Regular 100 adj.to S 10,0M00 S 23,842.06 S (13.842.06) 7,586,100 75.861 Active 12/oirmi 01/01=2 2022
12292021 Regular 100 adj.to S 10,000.00 S 23,259.53 $ (13,259.53) 7.623,400 76,234 Active 11101t2021 12/01/2021 2021
1129/2021 Regular 100 adj.to S 9,500.00 $ 21,301.73 S (11,901.73) 6,970,800 69.708 Active 10/010021 11MIM21 2021
10130/2021 Regular 100 adj.to $ 9.000.00 $ 22,740.83 S (13,740.83) 7,450,500 74,505 Active 09tom21 10/Oi2021 2021
091302021 Regular 100 adj.to S 8,500.00 S 23,839.13 S (15,339.13) 7,816,600 78,166 Active 08/02J2021 OW12021 2021
08/"d02071 Regular 100 - adj.to $ 8,0130.00 S 25,638.23 $ (17,63913)T &.416.300 84,163 Active 07/012021 08/02/2021 2021
0713012021 Regular, 100 adj.to S 7,500.00 S 24.222.23 S (16,722.23) 7,944,000 79,449 Active 06102=1 07101=1 2021
06130=1 Regular 100 adj.to S 5,000.00 S 23,079.53 S (18,079,63) 7,563.400 75.634 Aetivo 05103/2021 06102/2021 2021
0513112021 Regular 100 adj.to $ 5,000.00 S 29,744.03 S (24,744A3) 9,784,900 97.849 —[A—Clive— 04101/2021 05=12021 2D21
04130=1 Regular 1100 adj.to $ 5,000-00 S 26,528.33 S (21,528,33) 8,713,000 87,130 JActive 03101=1 0N0112021 2021
03/31/2021 Regular 1100 adj.to S %M.00 $ 16,233.83 $ (11,233-83) 5,281,500 52,816 JActive OVOI2021 03101 r20211 2021
$397,500.00 S 3,504,233.21 $ (959,713,21) 336,091,600 gallons
$397,S00.00 5 1,504,213.21 336,092
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