(a) Two or more rural transit districts may merge into a new rural transit district. The territory of the new district must include all the territory of each merged district.
(b) The merger is made when the governing board of each district by resolution adopts an interlocal agreement that specifies:
(1) the boundaries of each district to be merged and of the new district;
(2) the terms of the merger; and
(3) a schedule for execution of the merger.