48-1213. Alternative method of dissolution of community park maintenance district

A. A district organized under this article, the territory of which is wholly included within the corporate limits of a city or town, may be dissolved in the following manner:

1. The board of directors shall approve the transfer of all powers, duties and responsibilities of the board, officers and employees of the district to such city or town, as trustee, and the dissolution of the district by ordinance or resolution.

2. The governing body of the city or town shall approve the acceptance of the trusteeship of the district by ordinance or resolution.

3. Within thirty days after the date of the passage of the latter of the ordinances or resolutions called for in paragraphs 1 and 2 of this subsection, the governing body of the city or town shall call a special election of the city or town on the question of whether to accept the trusteeship of the district. The election shall take place on such date as the governing body may designate but not more than sixty days after the ordinance or resolution calling the election is passed, except that no election may be called within twelve months from the date of a previous election called for the same purpose. Only registered voters of the city or town are eligible to vote on the question.

4. When, on the basis of the adoption of the ordinances and resolutions under paragraphs 1 and 2 of this subsection, an election is called upon the question of acceptance of the trusteeship under paragraph 3 of this subsection, the board of directors of the district shall also call, at the same time as the election provided for in paragraph 3 of this subsection is called, a separate election among the registered voters of the district on the question of dissolution of the district.

B. If a majority of registered voters of the city or town voting on the question approves it, and a majority of the registered voters of the district voting on the question approves it, the district shall be dissolved as provided in this section. If the registered voters voting in the election conducted pursuant to subsection A, paragraph 3 of this section fail to accept the trusteeship or if the registered voters voting in the election conducted pursuant to subsection A, paragraph 4 of this section fail to approve dissolution, the district shall not be dissolved and the proceedings shall be terminated.

C. If the district has no legal indebtedness or when all legal indebtedness has been discharged or assumed by the city or town, after otherwise complying with this section, the governing body of the city or town shall as trustees of the district by resolution declare the district dissolved. Within three days after its adoption, a certified copy of the resolution shall be filed with the clerk of the governing body of the city or town in which the district is situated.

D. If the district has legal indebtedness following approval of dissolution as provided in this section, the district shall be administered as provided in this section. Pending dissolution, the administration of district affairs vests in trust in the governing body of the city or town. Members of the governing body of the city or town are trustees of the district for all purposes of the district and as such have the powers and duties prescribed for the board of directors of the district. Such trustees may, except as provided by law, operate the facilities of the district. Indebtedness on behalf of the district does not become indebtedness or obligations of such city or town, except that such city or town is responsible as trustees to insure that all obligations and debts of the district are paid when due from funds available to the trustees from the district. Until dissolution, nothing precludes a district from otherwise continuing to carry on its activities and transacting its business, or from entering into contracts and agreements otherwise authorized or from transferring any property of the district to each city or town.

E. Members of the board of directors, if the terms of such members have not expired, serve as an advisory board to the trustees under subsection D of this section and to the governing body of the city or town following dissolution until expiration of the terms or earlier vacancy, and thereafter the office is abolished.

F. Upon dissolution of a district pursuant to this section, all property of the district vests in the city or town.

G. Notwithstanding section 9-514, the affirmative vote on the dissolution of the district by both the district and the affected city or town under the provisions of this section vests in the city or town authority to construct, purchase, acquire or lease any plant or property for the purpose of community park maintenance and is also authority for the city or town to assume the obligations of a district through the issuance of bonds pursuant to title 9, chapter 5, article 3 and in amounts not exceeding the outstanding value of all obligations of the district.

H. The election held pursuant to this section is deemed to be the election required by section 48-1212.