2015 Arkansas Code
Title 8 - Environmental Law
Chapter 5 - Water Pollution Control Facilities
Subchapter 6 - Arkansas Privatization Act
§ 8-5-607 - Service agreements generally.

(a) (1) In connection with a privatization contract, a local government, if authorized by ordinance of its governing body, may enter into one (1) or more service agreements with a private owner or operator pursuant to which the private owner or operator will provide one (1) or more sewer services or solid waste disposal services to or for the benefit of the local government.

(2) The service agreement may provide for the purchase by the local government of all or any part of the capacity, capability, or output of the facilities used to provide the applicable sewer service or solid waste disposal service and shall contain such other terms and conditions as the local government and the private owner or operator may provide, including, without limitation, the charges or rates for the services and a covenant by the local government to maintain rates sufficient to pay debt service incurred in connection with the financing of construction of a wastewater or solid waste disposal project.

(b) (1) Prior to the execution of a service agreement, the local government shall publish notice of its intention to adopt an ordinance to accomplish the service agreement.

(2) The notice shall:

(A) Set forth a brief summary of the service agreement provisions; and

(B) Set a time and place for a public hearing to be conducted by the chief executive.

(3) The notice shall be published in a newspaper having general circulation within the county in which a substantial portion of the project is located by one (1) publication each week for a period of two (2) weeks. The first publication shall be not less than fourteen (14) days prior to the adoption of the ordinance approving the execution of the service agreement.

(c) The hearing may be held in conjunction with any hearing on the question of issuing bonds to finance the cost of the privatization project, on the question of adoption of the service agreement, or any other question.

(d) A copy of the proposed service agreement shall be filed as a public record with the clerk of the local government not less than two (2) weeks prior to the adoption of the ordinance.