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ORDINANCE NO. 1207 (#15 - 03)
AN ORDINANCE CREA TING JACKSONVILLE MUNICIPAL CODE 9 13.10; CREA TING A
PUBLIC FACILITIES BOARD KNOWN AS THE NORTH PULASKI WA TERWORKS PUBLIC
FACILITIES BOARD; APPOINTING THE INITIAL BOARD MEMBERS THEREOF;
DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES.
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WHEREAS, the City Council of the City of Jacksonville, Arkansas (the "City"), pursuant to the
provisions of the Public Facilities Board Act, ACA 99 14-137-101 e1. seq. (the "Act"), is authorized to
establish public facilities board for the purposes set forth in the Act, including the acquisition of and
financing of waterworks facilities within and near the City;
WHEREAS, the North Pulaski Waterworks Association is a public facilities board of Pulaski
County, Arkansas, organized and existing under the laws of the State of Arkansas. North Pulaski
Waterworks Association owns and operates waterworks facilities, which include facilities for
furnishings of water for domestic, commercial, agricultural and industrial purposes. These facilities
include but are not limited to, mains, hydrants, meters, valves, standpipes, storage tanks, pumping
tanks, intakes, wells, purification plants, and watercourses or water supplies pertaining thereto serving
citizens and residents of North Pulaski County and a portion of Faulkner County; and,
WHEREAS, the North Pulaski Waterworks Association has enacted a resolution authorizing
the transfer of its assets and operations through the City of Jacksonville to the North Pulaski
Waterworks Public Facilities Board as established by this Ordinance.
NOW, THEREFORE, BE IT 0 ~DAINE) 3V THE C TV COUNCil OF THE CITY OF
JACKSONVillE, ARKANSAS, THAT: ~
SECTION ONE: Jacksonville Municipal Code 9 13.10 (North Pulaski Waterworks
Public Facilities Board) is hereby created and shall include the following provisions:
SECTION TWO: JMC ~ 13.10.010 · Creation of Public Facilities Board. There is
hereby created a Public Facilities Board pursuant to the provisions of ACA 99 14-137-101, e1. seq.
(the "Act".). The Board shall be known as the North Pulaski Waterworks Public Facilities Board (the
"Board), and the Board shall have the powers provided for within the Act and under the terms of this
Code,
SECTION THREE: JMC ~ 13.10.020 · Members of the Public Facilities Board. The
Board shall consist of five (5) members, who shall be appointed by the City Council of the City of
Jacksonville, Arkansas, from those eligible for membership being all users/members of the North
Pulaski Waterworks Association. The terms of said appointed members shall be as follows: Position
1, one year; Position 2, two years, Position 3, three years; Position 4, four years; and, Position 5, five
years. Successor members shall be recommended for appointment by a majority of the Board for
terms of five (5) years each for appointment by the City Council of the City of Jacksonville, Arkansas.
Each member shall qualify by taking and filing with the Clerk of the City his or her oath of office in
which he or she shall swear to support the constitution of the United States, the Constitution of the
State of Arkansas, and to discharge faithfully the duties in the manner provided by law. Each member
shall serve until his or her successor is elected and qualified. In the event of a vacancy in the
membership, however caused, a successor member shall be appointed pursuant to the same process
as outlined above. A member shall be eligible to succeed himself or herself when determined
appropriate to do so.
ORDINANCE NO. 1207 (15-03)
Page Two
The five (5) initial members of the North Pulaski Waterworks Public Facilities Board will be:
R. J. (Rick) Love, who shall serve in Position 5; William Driggers, who shall serve in Position 4;
Sharon Malnar, who shall serve in Position 3; Marion Lee, who shall serve in Position 2; and, Vestal
Johnson, who shall serve in Position 1.
SECTION FOUR: JMC ~ 13.10.030 · Or~anization of the Board. Board members
shall met and organize by electing one of their members as Chair, one as Vice-Chair, one as
Secretary, and one as Treasurer, and such officers shall be elected annually thereafter in like manner.
The duties of the Secretary and Treasurer may be performed by the same member. Board members
shall receive no compensation for their services. However, Board members shall be entitled to
reimbursement of expenses incurred in the performance of their duties. Further, Board members shall
adopt by-laws to operate said Board.
SECTION FIVE: JMC ~ 13.10.040 · General Powers of the Board. The Board is
hereby specifically empowered:
a) To own, acquire, construct, reconstruct, extend, equip, improve, operate, maintain,
sell, lease, contract concerning or otherwise deal in or dispose of waterworks facilities (as defined in
the Act) or any interest in such facilities (as defined in the Act) or any interest in such facilities,
including, without limitation, to provide financing for such facilities;
b) To issue bonds to obtain funds and revenues for the accomplishment of any of the
waterworks facilities projects herein authorized, either alone or together with other available funds and
revenues therefor;
c) As a body politic and corporate to have perpetual succession and to adopt bylaws,
not in conflict with this Code or the Act, as may from time to time be amended, for the regulations of
its affairs and the conduct of its business;
d) To maintain an office at such place or places in our near the city as the Board may
designate, from time to time.
e) To sue and be sued in its own name;
D To fix, charge and collect rates, fees, interest, and charges for the use of any
waterworks facilities and the supplying of water;
g) To employ and pay compensation to such employees and agents, including
attorneys, consulting engineers, surveyors, accountants, financial experts, and others as it may in its
judgment find necessary for the accomplishment of the purposes and objective for which it has been
created and to fix their compensation; and,
h) To do any and all other acts and things to accomplish the waterworks facilities
projects for which it is authorized by this Code and all other acts and things authorized or required by
the Act as it may from time to time be amended, except as may be specifically limited herein, and any
and all other things necessary or convenient to accomplish the purposes for which the Board has been
created.
SECTION SIX: JMC ~ 13.10.050 · Limitation on the Exercise of Powers.
The North Pulaski Waterworks Public Facilities Board shall be a public facilities board with
limitations on the exercise of its powers to projects solely defined as "Waterworks Facilities" for the
furnishing of water for domestic, commercial, agricultural and industrial purposes including, without
limitation, mains, hydrants, meters, valves, sandpipes, storage tanks, intakes, wells, impounding
reservoirs, purification plants, and lakes, watercourses, or water supplies pertaining thereto. Its power
to issue bonds shall be limited solely to the accomplishment of waterworks facilities.
OO(~:l.10
ORDINANCE NO. 1207 (15 - 03)
Page Three
SECTION SEVEN: JMC ~ 13.10.060 · Use of Funds and Revenues. Thislhrd
is hereby authorized to use any available funds and revenues for the accomplishment of the
waterworks facilities projects which it is authorized to own, acquire, construct, reconstruct, extend,
equip, improve, operate, maintain, sell, lease, contract concerning or otherwise deal in. Bonds may
be issued by the Board in such principal amounts as shall be sufficient to pay the cost of
accomplishing the waterworks facilities projects involve; the cost of issuing the bonds; the amount
necessary for services, if deemed desirable; the amount necessary to provide for debt service on the
bonds until revenues for the payment thereof are available from other sources; and any other cost and
expenditures of whatever nature incidental to the accomplishment of the waterworks facilities involved
and the placing of it in operation. Any net earnings of the Board (beyond that necessary for retirement
of the indebtedness or to implement any waterworks facilities project) shall not inure to the benefit of
any person other than to the Board.
SECTION EIGHT. JMC ~ 13.10.070 · Authority With Respect to Bond and Debt
Obliaations. This Board shall have, with respect to the issuance of bonds authorized to be issued
by it, the authority and power with respect thereto set forth and contained in the act, which terms and
provisions are hereby incorporated in this Ordinance as though herein expressly set forth, word for
word, except to the extent of changes required for the provisions by amendment of the act from time
to time hereafter.
It shall be plainly on the face of each bond that it has been issued under the provision of the
Act and that the bonds of the Board shall be special obligation revenue bonds which shall be
obligations only of the Board and shall not constitute an indebtedness for which the faith and credit
of the City of Jacksonville, Arkansas, or any of its revenues are pledged. The principal of and interest
on the bonds shall be payable from and secured by a pledge of revenues derived solely from the
waterworks projects financed, in whole or in part, from bond proceeds and as authorized by, and in
accordance with the provisions of the Act.
It shall also be plainly stated on any debt, loan agreement, or other such obligation that no
City dollars from the City General fund shall be used to pay any amount, debt, indenture, or other such
obligation of the Public Facilities Board.
SECTION NINE: JMC ~ 13.10.080 · Indemnitv,. It is further stated and known that
at no time in the creation or operation of this Public Facilities Board does the City of Jacksonville,
Arkansas, have any liability for the past, present, or future operation of the North Pulaski Waterworks
Public Facilities Board. The Board shall be solely responsible for its operations expenses and the
creation of any liabilities that may arise and agrees to hold the City of Jacksonville, Arkansas harmless
therefrom.
SECTION TEN: JMC ~ 13.10.090 · Meeting. The Board shall meet upon the call
of its Chair, or a majority of its members, and at such times as may be specified in the bylaws for
regular meetings, and a majority of its members shall consist of a quorum for the transaction of
business. The affirmative vote of the majority for the members present at a meeting of the Board shall
be necessary for any action taken by the Board. Any action taken by the Board may be authorized
by resolution and such resolution shall take effect immediately unless a later effective date is specified
in the resolution. No vacancy in the membership in the Board shall impair the right of a quorum to
exercise all the rights and perform all the duties of the Board.
SECTION ELEVEN. JMC ~ 13.10.100 · Records. The Secretary shall keep a record
of the proceedings of the Board and shall be custodian of all books, documents, and papers filed with
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ORDINANCE NO. 1207 (#15 - 03)
Page Four
the Board and of the minute book or journal of the Board and its official seal, if any shall be adopted.
The Secretary may cause copies to be made of all minutes and other records and documents of the
Board and may give certificates of the Board to the effect that such copies are true copies, and all
persons dealing with the Board may rely upon such certificates.
SECTION TWELVE: JMC ~ 13.10.110 · Annual Reports. Within the first ninety (90)
days of each calendar year, this Board shall make a written report to the City Council of the City of
Jacksonville, Arkansas, concerning its activities for the preceding calendar year. Each such report
shall set forth a complete operating and financial statement covering its operation during the year,
All funds under the control of the Public Facilities Board, whether held by the Board or by the trustee
or custodian, shall be subject to an annual audit to be conducted by a private accounting firm selected
by the Board through appropriate bidding procedures and funded by the Public Facilities Board. The
auditors shall identify any net earnings of the Board defined as: (1) those monies received by the
Board that are not pledged to repayment of early retirement of bonds or other indebtedness; (2) those
monies not required for ordinary and necessary expenses of the Board; and, (3) those monies
released from such a pledge by means of defeasance or restructure of an existing bond issue. Those
net earnings shall be remitted forthwith within five (5) days of the audit finding to the Treasurer of the
City of Jacksonville, Arkansas, to be placed in a special project or capital fund account. Additionally,
every indenture or resolution authorizing the issuance of bonds shall expressly provide that any net
earnings of the Board shall not insure to the benefit of any person or entity other than to the City of
Jacksonville, Arkansas, and shall be remitted forthwith to the Treasurer of the City of Jacksonville,
Arkansas.
Pursuant to the requirements of ACA 99 14-137-110 et. seq., no funds shall be expended by
the Board without: (1) authorization by the affirmative vote of a majority of the members present at a
meeting of the Board; (2) duly recorded by the Secretary in the minutes of the meeting; and, (3)
supported by documentation justifying the lawful expenditure of public funds.
SECTION THIRTEEN: Severability. The provisions of this Ordinance are
severable. If any provision hereof shall be held to be invalid, such holding of invalidity shall not affect
the validity of applicability of the remainder of the provisions thereof.
SECTION FOURTEEN: Conflict. All Ordinances or parts thereof in conflict herewith
are hereby repealed to the extent of said conflict.
SECTION FIFTEEN: Emeraency Clause. An emergency is hereby declared to
exist and this Ordinance, being necessary for the immediate preservation of the public peace, welfare,
health, and safety, shall be in full force and effect from and after its passage and approval.
APPROVED AND ADOPTED THIS ~d DAY OF OCTOBER, 2003.
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TOMMY SWAIM, M OR
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ROB~R\ E. BA~U G, CIT~,
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