Maumelle Water Management and North Little Rock Wastewater entered into an agreement this week for North Little Rock to take over the wastewater portion of the Maumelle entity.
Central Arkansas Water, based in Little Rock, had previously announced it would consolidate with Maumelle Water Management, taking over water service for Maumelle's 7,400 customers.
Part of Central Arkansas Water's responsibility under that consolidation was to help Maumelle figure out a plan for the city's wastewater services, which the water provider does not handle. The Maumelle City Council voted last month not to create a city-owned wastewater entity and to enter into negotiations with North Little Rock.
A wastewater consolidation agreement approved by Maumelle and North Little Rock on Tuesday, and by Central Arkansas Water on Thursday, states that North Little Rock Wastewater will take over control of Maumelle's wastewater customers on the date Central Arkansas Water assumes liability of water operations. That is set to take place in March.
North Little Rock Wastewater will purchase the Maumelle wastewater system at a cost equal to Maumelle Water Management's debt attributed to the wastewater portion of the utility -- almost $2.5 million.
North Little Rock Wastewater currently services 33,900 customers. The 7,400 Maumelle customers who will join that system in March will pay the same wastewater rates that North Little Rock customers pay, according to the agreement.
However, North Little Rock may charge Maumelle customers a .surcharge to recover the cost of removing existing sludge from two wastewater lagoons it will take over. The "sludge surcharge" fee must stop being collected once North Little Rock has been reimbursed the cost of removing the sludge plus 3.5 percent interest.
Under the wastewater consolidation agreement, Central Arkansas Water is responsible for the old debts of Maumelle Water Management's wastewater system, except for what was covered under the purchase price.
The water utility will take over responsibility of all accounts receivable and payable associated with the Maumelle operation before the date North Little Rock assumes control of the wastewater portion in March.
The agreement says North Little Rock may make job offers to employees currently running Maumelle's wastewater facilities, but that Central Arkansas Water's commitment to make offers to all current Maumelle Water Management employees -- including the wastewater staff -- still stands.
Metro on 11/13/2015