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99431 RESOLUTION NO. 9,943 2 3 A RESOLUTION ADOPTING A GUIDING DIRECTION FOR 152 4 ALL DISCUSSIONS AND ACTIONS RELATED TO 5 POTENTIAL FUTURE COOPERATIVE EFFORTS BETWEEN 6 THE NORTH LITTLE ROCK WATER DEPARTM ENT AND 7 8 THE LITTLE ROCK MUNICIPAL WATER WORKS; AND 9 FOR OTHER PURPOSES. 10 11 WHEREAS, the cities of North Little Rock and Little Rock each own, operate and maintain 12 separate municipal water distribution and service systems for their respective residents of and other 13 14 customers, the said water systems being operated and managed through autonomous, independent 15 Commissions created and established under Arkansas law, and 16 WHEREAS, the North Little Rock Water Department has been a customer of the Little Rock 17 Water Works for the past sixty (60) years, but is now facing a rapid escalation of the cost of water; 18 and 19 WHEREAS, the f Lure needs of the metropolitan area have prompted the two Water 20 21 Commissions to explore various possibilities to acquire new water sources to provide for the 22 increased needs of the two cities and the surrounding area, to expand the service area to provide for 23 a broader rate base to ensure stable and equitable rates for the citizens and residents served by the 24 Commissions, and to provide for economies in the production, operation and management of the 25 two systems in order to stabilize rates, particularly in view of the need for new water sources and the 26 27 increased costs required to meet federally- mandated water quality regulations and rapidly changing 28 technology; and 29 WHEREAS, one of the alternatives which should be explored by the two Commissions is a 30 merger of the two systems into a metropolitan water system; and 31 WHEREAS, the Commissions independent of the City Board of Little Rock and City Council 32 of North Little Rock have determined that it may be in the best interests of their respective customers 33 34 to explore further the concept of a merger and to adopt A Statement of Policy to guide discussions 35 related to the merger concept; and 36 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 WHEREAS, the knowledge of the elected officials of both cities of the exploration of a 153* possible merger by the Commissions is necessary and advisable before the Commissions fully explore the merger concept. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF LITTLE ROCK, ARKANSAS: SECTION 1. That the following parameters will guide all discussions related to the possible merger of the North Little Rock Water Department and the Little Rock Water Works system , and the same is hereby approved: All work and discussion related to any possible consolidation or merger of the two utilities must have the goal of providing ample production and delivery of safe, high - quality drinking water, that meets all standards for the protection of public health; that supports economic growth and community development in the metropolitan area; and that provides for a broader rate base, which would ensure more stable and equitable rates for all customers and is fair and equitable to both cities it its implementation. SECTION 2. That the Board of Commissioners of the Little Rock Municipal Water Works be, and it is hereby permitted to proceed to explore the possibility of a merger of the Little Rock Municipal Water Works with the North Little Rock Water Department, and to develop the necessary plans, terns, and conditions for any such merger and that said exploration is being done with the knowledge of the Little Rock Board of Directors. SECTION 3. Regular quarterly progress reports on all discussions, consultant studies, and related information will be provided to the Little Rock Board of Directors and the North Little Rock City Council. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 ADOPTED: March 25, 1997 ATTEST: APPROVED: ` ROBBIE HANCOCK JIM ILEY CITY CLERK MAYOR APPROVED AS TO FORM: p�LioH.�y K,( • � J� THOMAS M. CARPE ER CITY ATTORNEY 154