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ORD NO 05-2012 CITY OF VAN BUREN, ARKANSAS ORDINANCE NO. 5 2012 BE IT ENACTED BY THE CITY COUNCIL, FOR THE CITY OF VAN BUREN, ARKANSAS, AN ORDINANCE TO BE ENTITLED: AN ORDINANCE APPROVING THE PURCHASE OF THE ASSETS OF DORA RURAL WATER USERS ASSOCIATION INC.; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. WHEREAS, the Dora Rural Water Users Association Inc. owns and operates a water distribution system principally situated adjacent to the water distribution system and corporate boundary of the City of Van Buren, Arkansas; and WHEREAS, the Dora Rural Water Users Association Inc. and the City of Van Buren presently have an existing water contract and maintenance agreement whereby the City, through its Van Buren Municipal Utilities, sells water to, and provides maintenance for, the water system of the said Association; and WHEREAS, the Dora Rural Water Users Association Inc. desires to sell its assets to the City of Van Buren, and the duly appointed Van Buren Municipal Utilities Commission has expressed its desire, by Resolution dated April 11, 2012, to purchase said assets subject to the approval of the Van Buren City Council. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS, THAT: SECTION 1: The Van Buren Municipal Utilities Commission has negotiated a proposed Agreement with the Dora Rural Water Users Association Inc. to purchase the assets of the Association for the approximate sum of $167,600.00, said sum representing the remaining loan indebtedness to the US Department of Agriculture, Rural Development Administration, said loan being presently secured by the subject assets, and the purchase shall be subject to said indebtedness being satisfied forthwith by the Association upon payment of the aforesaid sum. The Commission is hereby authorized to enter into said Agreement. SECTION 2: The Association has expressed the need for this sale and purchase to occur forthwith due to its present and special circumstances; therefore, an emergency is hereby declared to exist and this Ordinance shall take full force and effect upon its passage. IN WITNESS WHEREOF, the City of Van Buren, Arkansas, by its City Council, did pass, approve, and adopt, by a vote of (Q for and 0 against, th bregoing Ordinance at its regular meeting held on the I6 day of April 2012. Robert D. Freeman an Mayor ATT STED: PPROVED AS TO FORM: di allachts qmor Barbie Curtis Can ice ett e City Clerk /Treasurer City Attorney RESOLUTION A RESOLUTION RECOMMENDING TO THE MAYOR AND CITY COUNCIL OF THE CITY OF VAN BUREN, ARKANSAS, THAT THE COMMISSION BE AUTHORIZED TO ENTER INTO AN AGREEMENT FOR THE PURCHASE OF ASSETS OF DORA RURAL WATER USERS ASSOCIATION INC. WHEREAS, the Dora Rural Water Users Association Inc. owns and operates a water distribution system principally situated adjacent to the water distribution system and corporate boundary of the City of Van Buren, Arkansas; and WHEREAS, the Dora Rural Water Users Association Inc. and the City of Van Buren presently have an existing water contract and maintenance agreement whereby the City, through its Van Buren Municipal Utilities, sells water to, and provides maintenance for, the water system of the said Association; and WHEREAS, the Dora Rural Water Users Association Inc. desires to sell its assets to the City of Van Buren and this Commission, after unanimous consent by its Members, has expressed its desire to purchase said assets subject to the approval of the Van Buren City Council. IT IS HEREBY RECOMMENDED to the Mayor and City Council that this Commission, by and through its Chairman, be authorized to enter into a formal written agreement to complete said purchase for the approximate sum of $167,600.00, said sum representing the remaining loan indebtedness to the US Department of Agriculture, Rural Development Administration, said loan being presently secured by the subject assets, and the purchase shall be subject to said indebtedness being satisfied forthwith by the Association upon payment of the aforesaid sum. PASSED this 11 day of April, 2012. C.E. Dougan, CHAD•• ATTEST: SECRETARY