HomeMy WebLinkAbout109081 RESOLUTION NO. 10,908
2 A RESOLUTION AFFIRMING THE GOAL OF CONSOLIDATING THE
3 WATER UTILITIES OF THE CITIES OF NORTH LITTLE ROCK AND
4 LITTLE ROCK; DIRECTING THE MAYOR TO INITIATE A PROCESS
5 FOR CONSOLIDATION; SETTING THE EFFECTIVE DATE OF THE
6 MERGER AND THE DATE FOR THE SUBMISSION OF THE PLAN OF
7 CONSOLIDATION; COMMENDING THE UNIVERSITY OF ARKANSAS
8 AT LITTLE ROCK AND ITS WATER STUDY TASK FORCE; AND FOR
9 OTHER PURPOSES.
10 Whereas, the University of Arkansas at Little Rock, at the request of the mayors of Little
I I Rock and North Little Rock and the Chairs of the two municipal water commissions, conducted a
12 study of water issues facing the two municipalities; and
13 Whereas, the University of Arkansas at Little Rock Water Study Task force has now
14 issued its report entitled Wafer for Our Puna-e: Overcoming Regiowd Paralysis; and
15 Whereas, the, study recommends the consolidation or merger of the two municipal utilities
16 and sets forth the steps which the municipalities should follow to achieve consolidation or merger,
17 including the initiation of the consolidation process by the mayors and the adoption of certain
18 ordinances and resolutions affirming the course of consolidation or merger, and setting a date for
19 the submission of a plan of consolidation and the effective date of the consolidation or merger.
20 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
21 THE CITY OF LITTLE ROCK, ARKANSAS, THAT:
22 Section 1. The Board of Directors affirms the goal of consolidating the water utilities of
23 the Cities of North Little Rock and Little Rock in the interests of assuring high quality water
24 service at reasonable rates with the advantages that come from spreading costs over a larger
25 number of ratepayers; of securing the benefits of eliminating unnecessary duplication in overhead
26 expenses; and of strengthening the ability to work together and to secure the next source of
27 water. The plan of consolidation shall be as outlined in the report Wafer for Our Fahire:
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Overcoming Regional Paralysis, September 2000, prepared by the Water Study Task Force of
2 the University of Arkansas at Little Rock, except that (1) that the new board of water
3 commissioners shall consist of 7 members, 3 of whom must be citizens of North Little Rock and 4
4 of whom must be citizens of Little Rock, (2) the new board of water commissioners shall select
5 one of its 7 members to serve as chairman for a term of one year without further confirmation,
6 and (3) the citizenship of the chairman shall alternate annually between the two cities.
7 Section 2. The effective date for the consolidation should be July 1, 2001.
8 Section 3. The Mayor is hereby authorized and directed to initiate the process for
9 developing a plan of consolidation by selecting, together with the mayor of the City of North
10 Little Rock, by October 20, 2000, a mutually agreed upon person or entity to lead and facilitate
I 1 the process.
12 Section 4. The plan for merger shall be revenue neutral in its effect on City finances.
13 Section S. The Mayor is hereby directed to cause a progress report to be made monthly to
14 update the Board of Directors and the public.
15 Section 6. The Mayor is hereby directed to submit the plan for consolidating the two
16 water utilities to the Board of Directors by January 1, 2001.
17 Section 7. The Board of Commissioners, Little Rock Municipal Water Works, is hereby
18 directed, in concert with the North Little Rock Water Commission, immediately to employ a firm,
19 mutually agreed upon by both commissions and with costs borne 50/50, to conduct a rate study,
20 using cost -of- service methodology, aimed at Ievelizing water rates throughout the two cities over
21 a reasonable period of time not to exceed 10 years, and, as part of the study to establish a
22 reasonable basis for achieving levelized water rates, to employ an appropriate engineering firm,
23 mutually agreed upon by both commissions and with costs borne 50/50, to assess the conditions
24 of the current distribution systems of the two cities to determine any improvements needed to
25 meet accepted standards, with the city in which the costs of improvements are higher paying rates
26 sufficiently higher to cover the net difference in the two improvement agendas during the period
27 for levelizing rates.
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Section 8. The University of Arkansas at Little Rock and its Water Study Task Force
under the leadership of Dr. Joel Anderson are hereby thanked and commended for their effort to
assist the metropolitan community in resolving persistent and divisive issues with information and
recommendations that should provide a basis for a continuation of excellent water service,
improved relations between the Cities of North Little Rock and Little Rock, and effective steps
toward regional cooperation for a new source of water for our future.
Section 9. This resolution shall be in full force and effect upon its passage and approval.
8 PASSED: OCTOBER 10 , 2000.
9 ATTEST:
10 7414i, " •
11 Nan y D. Wdod, City Clerk
12 APPROVED AS TO LEGAL FORM:
13 4-0—w---> µJ- .
14 Thomas M. Carpenter, City Attori c
APPROVED:
Jim tt ley, Mayor,
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