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1301 ORDINANCE NO. 1301 (#34 - 06) AN ORDINANCE AUTHORIZING AND DIRECTING THE CITY OF JACKSONVILLE, ARKANSAS, TO ACT AS AN INTERMEDIARY IN THE TRANSFER OF ASSETS AND LIABILITIES, PURSUANT TO AN INTERLOCAL MERGER AGREEMENT BETWEEN HIGHWAY 319 WATER USERS PUBLIC FACILITIES BOARD OF LONOKE COUNTY, ARKANSAS (HIGHWAY319) AND NORTH PULASKI WATERWORKS PUBLIC FACILITIES BOARD (NORTH PULASKI); AMENDING JMC §13.10.020 AND §13.10.080; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. WHEREAS, Highway 319 is a Public Facilities Board created to service property within Lonoke County, Arkansas, while North Pulaski is a Public Facilities Board created to service property within northern Pulaski County; WHEREAS, both entities provide potable water to adjoining service areas; WHEREAS, both entities have the same management and use the same professionals for legal, accounting, and engineering services; and, WHEREAS, the entities entered into a Memorandum of Understanding on January 22, 2004, which provides for a merger of the two entities. NOW, THEREFORE, BE IT ORDAINED AND ENACTED BY THE CITY COUNCIL OF THE CITY OF JACKSONVILLE, ARKANSAS: SECTION ONE: Pursuant to the January 22, 2004 Memorandum of Understanding, entered into by and between Highway 319 and North Pulaski, it is agreed that the City of Jacksonville, Arkansas will and does accept by gift a transfer of all assets and liabilities of Highway 319 as an intermediary. Under no condition does acceptance of such a transfer impose upon the City of Jacksonville, Arkansas, any liability or responsibility for any debts, liabilities, or potential claims of either the transferor or the transferee. JMC §13.10.080 (Indemnity) shall be amended to include indemnity to the City of Jacksonville, Arkansas for the past, present, and future operation of the Highway 319 Public Facilities Board and the North Pulaski Waterworks Public Facilities Board. SECTION TWO: Immediately upon receipt of said assets and liabilities from Highway 319, it is agreed that the City of Jacksonville, Arkansas, shall then, by gift, transfer all assets and liabilities received of Highway 319 to the North Pulaski Waterworks Public Facilities Board. SECTION THREE: After the aforesaid transfers of assets and liabilities, the two (2) public facility boards shall be merged and known as the North Pulaski Waterworks Facilities Board. ORDINANCE 1301 (#34 — 06) Page Two SECTION FOUR: Because said Memorandum of Understanding provides for service of water customers in two (2) Arkansas counties, the future Board of Directors of the North Pulaski Waterworks Public Facilities Board may have a Board of Directors consisting of up to seven (7) members by appointment as authorized by A.C.A. §4- 137- 108(b)(7). JMC 13.10.020 shall be amended pursuant to ACA 4- 137(b)(7) to consist of up to seven (7) Board members to be selected from those eligible for membership as part of the users /members of the North Pulaski Public Facilities Board and the former Highway 319 Public Facilities Board. SECTION FIVE: All Ordinances or parts thereof that are in conflict with this Ordinance are hereby repealed to the extent of said conflict. SECTION SIX: This Ordinance is necessary in order to promote the public peace, safety, and welfare by maintaining continual water service to the areas serviced by both Boards. Therefore, it is hereby found and determined that an emergency exists, and this Ordinance shall be in full force and effect upon its passage and approval, as subject to and by applicable law. APPROVED AND ADOPTED THIS 21ST DAY OF DECEMBER 2006. CITY OF JACKSONVILLE, ARKANSAS TOMMM,MAYOR ATTEST: SUSAN DAVITT, CI CLERK A' • - V D AS • r;,.: 1 C � f a ROB T E. B 'p" ATTOR ` Y