No preview available
HomeMy WebLinkAboutORDINANCE 5883113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 5883 File Number: 2016-0290 ENERGY IMPROVEMENT DISTRICT NO. 1 MEMBERSHIP AGREEMENT: AN ORDINANCE TO AUTHORIZE MAYOR JORDAN TO SIGN A MEMBERSHIP AGREEMENT ALLOWING THE CITY OF SPRINGDALE TO BECOME A MEMBER OF ENERGY IMPROVEMENT DISTRICT NO. 1, AND TO AMEND § 33.381 BOARD OF DIRECTORS, MEMBERSHIP, TERMS OF OFFICE OF ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 TO PROVIDE FOR THE CITY OF SPRINGDALE'S REPRESENTATION ON THE BOARD OF DIRECTORS. WHEREAS, on October 15, 2013, pursuant to the authority granted by Arkansas Code Annotated § 8-15- 101 et seq. (the "Property Assessed Clean Energy Act"), the City of Fayetteville created Energy Improvement District No. 1; and WHEREAS, on December 16, 2015, pursuant to the requirements of Arkansas Code Annotated § 8-15-106, the Springdale City Council passed Ordinance No. 5001 authorizing the City of Springdale to join the District; and WHEREAS, the approval of the Fayetteville City Council is required in order for the City of Springdale to join the District and the Fayetteville City Code must be updated to provide for Springdale's representation on the Board of Directors. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a Membership Agreement allowing the City of Springdale to become a member of Energy Improvement District No. 1. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 33.381 Board of Directors, Membership, Terms of Office of ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT Page 1 Printed on 6122116 Ordinance: 5883 File Number 2016-0290 NO. 1 to the Code of Fayetteville, and enacts a replacement § 33.381 as follows: 33.381 Board of Directors, Membership, Terms of Office (A) Until December 31, 2016, Energy Improvement District No. 1 shall be governed by a Board of Directors consisting of nine (9) members. All seven (7) City of Fayetteville appointees shall remain on the Board of Directors. The City of Springdale shall appoint two members. One City of Springdale member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. The remaining City of Springdale member shall be a qualified elector of the District chosen by the Springdale City Council. The terms of these members shall expire on December 31, 2016. (B) After December 31, 2016, membership shall be allocated as follows: (i) One (1) member shall be the Mayor of Fayetteville or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. (ii) One (1) member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. (iii) Four (4) of the remaining members shall be qualified electors of the District chosen by the Fayetteville City Council, each to serve a term of two (2) years. (iv) Three (3) of the remaining members shall be qualified electors of the District chosen by the Springdale City Council, each to serve a term of two (2) years. (C) In making its Board appointments, the City Council shall give due consideration to candidates with connections to or relations with local utility companies, lending or bonding institutions and the advanced energy industry. City Council appointed members shall be subject to the term limit provisions of Section 33.329(B). (D) Should additional governmental entities enter into an agreement with the City of Fayetteville for participation in and addition to Energy Improvement District No. 1, the composition and terms of members of the Board of Directors shall be as agreed between the City of Fayetteville, the City of Springdale and other participating and agreeing governmental entities. PASSED and APPROVED on 6/21/2016 Page 2 Printed on 6122116 Ordinance: 5883 File Number: 2016-0290 Attest: Sondra E. Smith, City Clerk Treasurer U• • F, yF'�FVILLF� � ���'r►0ittttt�� Page 3 Printed on 6122116 r r City of Fayetteville, Arkansas 113 West Mountain Street = Fayetteville, AR 72701 (479) 575-8323 I €j .,� Text File File Number: 2016-0290 Agenda Date: 6/21/2016 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: C. 2 ENERGY IMPROVEMENT DISTRICT NO. I MEMBERSHIP AGREEMENT: AN ORDINANCE TO AUTHORIZE MAYOR JORDAN TO SIGN A MEMBERSHIP AGREEMENT ALLOWING THE CITY OF SPRINGDALE TO BECOME A MEMBER OF ENERGY IMPROVEMENT DISTRICT NO. 1, AND TO AMEND § 33.381 BOARD OF DIRECTORS, MEMBERSHIP, TERMS OF OFFICE OF ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 TO PROVIDE FOR THE CITY OF SPRINGDALE'S REPRESENTATION ON THE BOARD OF DIRECTORS WHEREAS, on October 15, 2013, pursuant to the authority granted by Arkansas Code Annotated § 8-15-101 et seq. (the "Property Assessed Clean Energy Act"), the City of Fayetteville created Energy Improvement District No. ] ; and WHEREAS, on December 16, 2015, pursuant to the requirements of Arkansas Code Annotated § 8-15-106, the Springdale City Council passed Ordinance No. 5001 authorizing the City of Springdale to join the District; and WHEREAS, the approval of the Fayetteville City Council is required in order for the City of Springdale to join the District and the Fayetteville City Code must be updated to provide for Springdale's representation on the Board of Directors. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a Membership Agreement allowing the City of Springdale to become a member of Energy Improvement District No. 1. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 33.381 Board of Directors, Membership, Terms of Office of ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 to the Code of Fayetteville, and enacts a replacement § 33.381 as follows: 33.381 Board of Directors, Membership, Terms of Office (A) Until December 31, 2016, Energy Improvement District No. 1 shall be governed by a Board of Directors consisting of nine (9) members. All seven (7) City of Fayetteville appointees shall remain on the Board of Directors. The City of Springdale shall appoint two members. One City of Springdale City of Fayetteville, Arkansas Page 1 Printed on 612212016 File Number. 2016-0290 member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. The remaining City of Springdale member shall be a qualified elector of the District chosen by the Springdale City Council. The terms of these members shall expire on December 31, 2016. (B) After December 31, 2016, membership shall be allocated as follows: (i) One (1) member shall be the Mayor of Fayetteville or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. (ii) One (1) member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. (iii) Four (4) of the remaining members shall be qualified electors of the District chosen by the Fayetteville City Council, each to serve a term of two (2) years. (iv) Three (3) of the remaining members shall be qualified electors of the District chosen by the Springdale City Council, each to serve a term of two (2) years. (C) In making its Board appointments, the City Council shall give due consideration to candidates with connections to or relations with local utility companies, lending or bonding institutions and the advanced energy industry. City Council appointed members shall be subject to the term limit provisions of Section 33.329(B). (D) Should additional governmental entities enter into an agreement with the City of Fayetteville for participation in and addition to Energy Improvement District No. 1, the composition and terms of members of the Board of Directors shall be as agreed between the City of Fayetteville, the City of Springdale and other participating and agreeing governmental entities. City of Fayetteville, Arkansas Page 2 Printed on 6/22/2016 Peter Nierengarten Submitted By City of Fayetteville Staff Review Form 2016-0290 Legistar File ID 6/21/2016 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item 6/3/2016 Sustainability & Resilience / Chief of Staff Submitted Date Division / Department Action Recommendation: Staff recommends entering into a membership agreement with the City of Springdale, Arkansas for inclusion in Energy Improvement District No. 1. Budget Impact: Account Number Fund Project Number Budgeted Item? NA Does item have a cost? NA Budget Adjustment Attached? NA Previous Ordinance or Resolution # 5624 Original Contract Number: Comments: Project Title Current Budget $ Funds Obligated S Current Balance Item Cost Budget Adjustment Remaining Budget Approval Date: V20140710 CITY OF A7ay� e ARKANSAS MEETING OF JUNE 21, 2016 TO: Mayor and City Council THRU: Don Marr, Chief of Staff CITY COUNCIL AGENDA MEMO FROM: Peter Nierengarten, Sustainability and Parking Director DATE: June 3, 2016 SUBJECT: Property Accessed Clean Energy (PACE) Improvement District Membership Agreement with the City of Springdale RECOMMENDATION: Staff recommends entering into a membership agreement with the City of Springdale, Arkansas for inclusion in Energy Improvement District No. 1. BACKGROUND: Property Assessed Clean Energy (PACE) is a creative financing mechanism that allows property owners to borrow money for weatherization, energy efficiency, renewable energy or water conservation improvements to their property. The security of tying the repayment of loans to property tax assessments combined with low default rates allow PACE to offer very low and extremely attractive interest rates for these improvement loans. PACE is a completely voluntary program that enables private investment for the purpose of energy savings. PACE enabling legislation was passed by the Arkansas Legislature in the 2013 session and signed by the Governor in April 2013. That legislation allows Cities, Counties or the State to create Energy Improvement Districts within the State of Arkansas. The Arkansas Legislature noted that Energy Improvement Districts would benefit Arkansas by: • Creating jobs and stimulating the economy • Generating significant economic development • Protecting citizens from the rising cost of electricity and non-renewable fuels • Providing citizens with options for financing improvements that are otherwise not available • Providing a positive cash flow on energy improvements • Increasing the value of real property • Improving the state's air quality and conserving natural resources • Promoting energy independence and security for the nation and state On October 15, 2013, the Fayetteville City Council of passed Ordinance No. 5624, which created Energy Improvement District No. 1. pursuant to Ark. Code Ann. § 8-15-101 to manage PACE for the City of Fayetteville. In December 2014, the Energy Improvement District successful launched the Arkansas_ Advanced_Eguity Energy (A2E2) program to administer PACE for Fayetteville. In August 2015, the A2E2 and the Energy Improvement District Mailing Address: 113 W. Mountain Street www.fayetteville-ar.gov Fayetteville, AR 72701 executed Arkansas' first PACE project, which included weatherization and energy efficiency improvement on a Fayetteville Office Building. DISCUSSION: Expansion of Energy Improvement District No. 1 to include Springdale will approximately double the population and incorporated area that will have access to PACE financing for property improvements. District expansion creates a much larger pool of eligible PACE properties, which ultimately makes the District stronger. On December 16, 2015, the City Council of the City of Springdale passed Ordinance No. 5001, authorizing Springdale to participate in Property Assessed Clean Energy Improvement District No. 1. Since that time, the Fayetteville City Administration and the City Attorney's Office have been negotiating an agreement for the City of Springdale to join the Energy Improvement District. In the proposed Membership Agreement, the number of board positions on the Energy Improvement District will be expanded from 7 to 9 and at the end of 2016 the board will consist of 5 Fayetteville members and 4 Springdale members. The Chair and Vice -Chair positions will rotate annually between a Fayetteville and a Springdale member. Expansion of Energy Improvement District No. 1 to include the City of Springdale, was discussed at the February 8'h Energy Improvement District Board meeting and received unanimous support. BUDGET/STAFF IMPACT: Energy Improvement District No. 1 is legally and financially independent of the City of Fayetteville and the City of Springdale and there is no budget impact associated with continued support for an expansion of Energy Improvement District No. 1. Staff from Fayetteville and Springdale will jointly provide support to the Energy Improvement District board members. Attachments: Energy Improvement District No. 1 Membership Agreement 7 ENERGY IMPROVEMENT DISTRICT NO. 1 Membership Agreement Purpose: On October 15, 2013, the City Council of the City of Fayetteville passed Ordinance No. 5624, which created a "Property Assessed Energy Improvement District" pursuant to Ark. Code Ann. § 8-15-101. On December 16, 2015, the City Council of the City of Springdale passed Ordinance No. 5 00 1, authorizing Springdale to participate in Property Assessed Energy Improvement District No. 1. This is the Membership Agreement between the City of Fayetteville and the City of Springdale. Board of Directors, Membership, Terms of Office (A) Energy Improvement District No. 1 shall be governed by a Board of Directors (hereinafter 'Board") consisting of nine (9) members. (B) Upon execution of this agreement and until December 31, 2016, the City of Springdale shall be allocated two members to join the existing seven -member Board a. One member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. b. One member shall be a qualified elector of the District chosen by the Springdale City Council. c. The terms of these members shall expire December 31, 2016. (C) After December 31, 2016, membership shall be allocated as follows: a. One member shall be the Mayor of Fayetteville or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. b. One member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. c. Four of the remaining members shall be qualified electors of the District chosen by the Fayetteville City Council, each to serve a term of two (2) years. d. Three of the remaining members shall be qualified electors of the District chosen by the Springdale City Council, each to serve a term of two (2) years. (D) Should additional governmental entities enter into an agreement with the City of Fayetteville for participation in and addition to Energy Improvement District No. 1, the composition and terms of members of the Board of Directors shall be as agreed between the City of Fayetteville, the City of Springdale and other participating and agreeing governmental entities. (E) Any vacancy shall be filled in accordance with the respective Member's appointment procedures. Board of Directors — Officers (A) The Board shall have a Chair and Vice Chair. a. Officers shall be elected by majority vote of the board members present at the first meeting of each year. b. Terms for officers shall be one year. c. Beginning in 2017, the Chair shall be a City of Fayetteville member in odd years and a City of Springdale member in even years. d. Beginning in 2017, the Vice -Chair shall be a City of Springdale member in odd years and a City of Fayetteville member in even years. e. The Board of Directors shall have such powers, duties and responsibilities as set forth in Ark. Code Ann. § 8-15-101, et seq. Staff Liaison (A) Each participating governmental entity in the District shall have a Staff Liaison to organize meetings and agendas and help parties from their respective jurisdictions apply for PACE loans. a. The Sustainability & Resilience Department Director for the City of Fayetteville shall serve as the staff liaison for the City of Fayetteville. b. The Director of Engineering or his/her designee shall serve as the staff liaison for the City of Springdale Meetings (A) The Board shall meet at least one time per quarter. (B) Meeting times and locations shall be set by the Board's bylaws. Legal and Financial Independence In the operation of its business, Energy Improvement District No. I is legally and financially independent of the City of Fayetteville and City of Springdale. No debt entered into by the District shall ever be construed as an obligation of the City of Fayetteville or of any other governmei���i���� entity which may participate in the District. YR�` APPROVED: ATTEST: — • s �; FAYEITEVILI. F .�= CITY OF YETTE LLE *9 By By: ON IONELD AN, Mayor SONDRA E. SMITH, City Clerk/Treasu Wit CITY F RWGI) By: By; lj0_1JG SVIOCITA, Mayor DENISE PEARCE, City Clerk Ernest B. Cate City Attorney ecate@springdalear.gov 'T'ayCor Sa.mpCes Senior Deputy City Attormy tsamples@sprihgdalear.gov Sarah Sparkman Deputy City Attorney ssparkman@spdngdalear.gov David D. PhiCCps Deputy City Attorney dphillips@springdalear.gov Lynda BeCvedresi Case Coordinator/ victim Advocate lbelvedresi@sp6ngdalear.gov Steve q-CeCms 7nvesti ator shelms@springdalear.gov Cindy TCor-64 Adinfnfstratfiv fe�aC rtssfsrant�Parnrn�oac chorlick@springdalear.gov Jacque Roth Dolt Coordihnatorl Discovery Clerk jroth@sp(ingdalear.gov Office Of T'he City Attorney 2oi Spring Street SpringdaCe, Arkansas 72764 Phone (479) 756-5900 Tax (479) 750-4732 www.springdaCeargov July 11, 2016 Mr. Blake E. Pennington Fayetteville Assistant City Attorney 113 W. Mountain St., Suite 302 Fayetteville, AR 72701-6083 'IEDEIVED JUL 14 2016 CITY ATTORNEY'S OFFICE RE: Membership Agreement — Energy Improvement District No. 1 Dear Blake: Enclosed is the Energy Improvement District No. 1 Membership Agreement which has been signed by both Mayor Sprouse and Denise Pearce, City Clerk. SS:ch Enclosure Sincerely, Sar, Sparkman Deputy City Attorney NORTHWEST ARKANSAS Demo= Gazette RECEIVED JUN 3 0 2016 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE AFFIDAVIT OF PUBLICATION I, Cathy Wiles, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Democrat- Gazette, printed and published in Washington and Benton County, Arkansas, and of bona fide circulation, that from my own personal knowledge and reference to the files of said publication, the advertisement of: CITY OF FAYETTEVILLE Ord No, 5883 Was inserted in the Regular Edition on: June 30, 2016 Publication Charges $235.30 OaR.��1 1 Cathy Wiles Subscribed and sworn to before me This 3D day off, 2016. Asv Lbtl I)a L Notary Public My Commission Expires:7/Z 12-5- F- -0"�J Notary HLEY DAVIS Washington County - Comm# 12694247 on Expires Jul 2, 2025 **NOTE** Please do not pay from Affidavit Invoice will be sent. Ordinance: 5883 File Number: 2016-0290 ENERGY IMPROVEMENT DISTRICT NO. I MEMBERSHIP AGREEMENT: AN ORDINANCE TO AUTHORIZE MAYOR JORDAN TO SIGN A MEMBERSHIP AGREEMENT ALLOWING THE CITY OF SPRINGDALE TO BECOME A MEMBER OF ENERGYIMPROVEMENT DISTRICT NO. 1, AND TO AMEND § 33.381 BOARD OF DIRECTORS, MEMBERSHIP, TERMS OF OFFICE OF ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 TO PROVIDE FOR THE CITY OF SPRINGDALE'S REPRESENTATION ON THE BOARD OF DIRECTORS. WHEREAS, on October 15, 2013, pursuant to the authority granted by Arkansas Code Annotated § 8-15- 101 et seq. (the "Property Assessed Clean Energy Act"), the City of Fayetteville created Energy Improvement District No. 1; and WHEREAS, on December 16, 2015, pursuant to the requirements of Arkansas Code Annotated § 8- 15-106, the Springdale City Council passed Ordinance No. 5001 authorizing the City of Springdale to join the District, and WHEREAS, the approval of the Fayetteville City Council is required in order for the City of Springdale to join the District and the Fayetteville City Code must be updated to provide for Springdale's representation on the Board of Directors. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a Membership Agreement allowing the City of Springdale to become a member of Energy Improvement District No. 1. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 33.381 Board of Directors, Membership, Terms of Office of ARTICLE XXVI ENERGYIMPROVEMENT DISTRICT NO. 1 to the Code of Fayetteville, and enacts a replacement § 33.381 as follows: 33.381 Board of Directors, Membership, Terms of Office (A) Until December 31, 2016, Energy Improvement District No. 1 shall be governed by a Board of Directors consisting of nine (9) members. All seven (7) City of Fayetteville appointees shall remain on the Board of Directors. The City of Springdale shall appoint two members. One City of Springdale member shall be the Mayor of Springdale or the Mayors designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. The remaining City of Springdale member shall be a qualified elector of the District chosen by the Springdale City Council. The terms of these members shall expire on December 31, 2016. (B) After December 31, 2016, membership shall be allocated as follows: (i) One (1) member shall be the Mayor of Fayetteville or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. (ii) One (1) member shall be the Mayor of Springdale or the Mayor's designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. (iii) Four (4) of the remaining members shall be qualified electors of the District chosen by the Fayetteville City Council, each to serve a term of two (2) years. (iv) Three (3) of the remaining members shall be qualified electors of the District chosen by the Springdale City Council, each to serve a term of two (2) years. (C) In making its Board appointments, the City Council shall give due consideration to candidates with connections to or relations with local utility companies, lending or bonding institutions and the advanced energy industry. City Council appointed members shall be subject to the term limit provisions of Section 33.329(B). (D) Should additional governmental entities enter into an agreement with the City of Fayetteville for participation in and addition to Energy Improvement District No. 1, the composition and terms of members of the Board of Directors shall be as agreed between the City of Fayetteville, the City of Springdale and other participating and agreeing governmental entities. PASSED and APPROVED on 6/21 /2016 Approved: Lioneld Jordan, Mayor Attest: Sondra E. Smith, City Clerk Treasurer 73753930 June 30, 2016 NORTHWEST ARww Demo= *Gazette P.O. EOX 1607, FAYETTEVILLE, AR 72702. 479.442.1700 • FAX 479-695-11I8 • WWW.NWADG.CON AFFIDAVIT OF PUBLICATION RECEIVED JUN 3 0 2016 CITY OF FAYETTEVILLE CITY CLERK'S OFFICE I, Cathy Wiles, do solemnly swear that I am the Legal Clerk of the Northwest Arkansas Democrat- Gazette, printed and published in Washington and Benton County, Arkansas, and of bona fide circulation, that from my own personal knowledge and reference to the files of said publication, the advertisement of: CITY OF FAYETTEVILLE Ord No, 5883 Was inserted in the Regular Edition on: June 30, 2016 Publication Charges $235.30 &' 04 Cathy Wiles Subscribed and sworn to before me This 3j day of a^L, 2016. A� W ,, "'N 3 Notary Public My Commission Expires:7/Z /Z,T ASHLEY 0AVIS Arkansas - Washington County Notary Public - Comm# 12694247 My Commission Expires Jul 2, 2025 **NOTE** Please do not pay from Affidavit Invoice will be sent. Ordinance: 5883 File Number: 2016-0290 ENERGYIMPROVEMENT DISTRICT NO. 1 MEMBERSHIP AN ORDINANCE TO AUTHORIZE MAYOR JORDAN TO SIGN A MEMBERSHIP AGREEMENT ALLOWING THE CITY OF SPRINGDALE TO BECOME A MEMBER OF ENERGYIMPROVEMENT DISTRICT NO. 1, AND TO AMEND § 33.381 BOARD OF DIRECTORS, MEMBERSHIP, TERMS OF OFFICE OF ARTICLE XXVI ENERGY IMPROVEMENT DISTRICT NO. 1 TO PROVIDE FOR THE CITY OF SPRINGDALE'S REPRESENTATION ON THE BOARD OF DIRECTORS. WHEREAS, on October 15, 2013, pursuant to the authority granted by Arkansas Code Annotated § 8-15- 101 et seq. (the "Property Assessed Clean Energy Act"), the City of Fayetteville created Energy Improvement District No. I; and WHEREAS, on December 16, 2015, pursuant to the requirements of Arkansas Code Annotated § 8- 15-106. the Springdale City Council passed Ordinance No. 5001 authorizing the City of Springdale tojoin the District; and WHEREAS, the approval of the Fayetteville City Council is required in order for the City of Springdale tojoin the District and the Fayetteville City Code must be updated to provide for Springdale's representation on the Board of Directors. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes Mayor Jordan to sign a Membership Agreement allowing the City of Springdale m become a member of Energy Improvement District No. 1. Section 2: That the City Council of the City of Fayetteville, Arkansas hereby repeals § 33.381 Board of Directors, Membership, Terms of Office of ARTICLE XX V I ENERGYIMPROVEMENT DISTRICT NO. I to the Code of Fayetteville, and enacts a replacement § 33.381 as follows 33.381 Board of Directors, Membership, Terms orORce (A) Until December 31, 2016, Energy Improvement District No. I shall be governed by a Board of Directors consisting of nine (9) members. All seven (7) City of Fayetteville appointees shall remain on the Board of Directors. The City of Springdale shall appoint two members. One City of Springdale member shall be the Mayor of Springdale or the Mayors designee. Should the Mayor designate a member, said member shall serve at the pleasure of the Mayor. The remaining City of Springdale member shall be a qualified elector ofthe District chosen by the Springdale City Council. The terms ofthem members shall expire on December 31, 2016. (B) Alter December 31, 2016, membership shall be allocated as follows: (i) One (1) member shall be the Mayor of Fayetteville or the Mayor's designee. Should the Mayor designate a member, said member shall sent at the pleasure of the Mayor. (ii) One (1) member shall be the Mayor of Springdale or the Maya's designee. Should the Mayor designate a member, said member shall serve at the pleasure (in) Four (4) of the remaining members shall be qualified electors of the District chosen by the Fayetteville City Council, each to serve a tern oftwo (2) years. (iv) Three (3) of the remaining members shall be qualified electors of the District chosen by the Springdale City Council, each to serve a tern of (C) In making its Board appointments, the City Council shall give due consideration to candidates with connections to or relations with local utility companies, lending or bonding institutions and the advanced energy industry. City Council appointed members shall be subject to the tern limit provisions of Section 33.329(B). (D) Should additional governmental entities enter into an agreement with the City of Fayetteville for participation in and addition to Energy Improvement District No. I, the composition and terms ofinembers of the Board of Directors shall be as agreed between the city of Fayetteville, the City of Springdale and other participating and agreeing governmental entities. PASSED and APPROVED an 6/212016 Approved: Lioneld Jordan, Mayor Attest: Sondra E. Smith, City Clerk Treasurer 73753930 June 30, 2016