Ft. Smith Wholesale Water Customers Discussed

A discussion regarding contracts with wholesale customers was held by the Ft. Smith Board of Directors early last week.  At present there are thirteen wholesale water customers.  One of them is negotiating a new contract.  Six of them have contracts that have lapsed, with the remaining six customers having current contracts.  Ft. Chaffee, Mountainburg and Van Buren are some of the City's customers.

The debate is whether or not the City should push for contract renewals.  To encourage con- tracts, some of the directors want to charge those who opt out, more.  Kevin Settle, At- Large Director, asked the question of why is water supplied to cities who do not have a con- tract.  At-Large Director Tracy Pennartz said she thinks that as a regional city, they have a responsibility to their sister cities.  She also said, in some sense, there is nothing ethically wrong with charging somebody at cost, rather than making a net profit margin on the sale of the water.  Keith Lau, Ward 1 Director, said he did not see a benefit to service contracts.

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