CHAPTER 355

An Act to amend and reenact §§ 15.1-1248, 15.1-1249, 15.1-1250 as amended
and 15.1-1251 of the Code of Virginia, relating to the participation of
political subdivision in existing authorities and to membership and
certain powers under the Virginia Water and Sewer Authorities Act.

[S 440]
Approved April 2, 1968

- _ Beit enacted by the General Assembly of Virginia:
1. That §§ 15.1-1248, 15.1-1249, 15.1-1250 as amended and 15.1-1251 of
the Code of Virginia, be amended and reenacted as follows:
§ 15.1-1248. Joinder of new subdivision; withdrawal from author-
ity.—Any political subdivision may become a member of any existing
authority, and any political subdivision which is a member of an existing
authority may withdraw therefrom, but no political subdivision shall be
permitted to withdraw from any authority after any obligation has been
incurred by the authority.

The governing body of any political subdivision wishing to withdraw
from * an existing authority shall signify its desire by resolution or
ordinance. The governing body of any political subdivision wishing to
become a member of an existing authority and the governing bodies of the
political subdivisions then members of the authority shall by concurrent
resolutions or ordinances signify the desire for the joinder of such
political subdivision and specify the number and term of office of members
of the expanded authority which are to be appointed by each of the
participating political subdivisions, together with the name, address and
term of office of initial appointments to membership, which ‘appointments
shall become effective upon the date of 1ssuance of the certificate by the
State Corporation Commission hereinafter provided and, thereupon, the
terms of office of the members of the existing authority shall terminate.
If the authority shall by resolution express its consent to such withdrawal
or joining, the governing * body of the withdrawing * political
subdivision or the governing body of the joining political subdivision and
the governing bodies of the political subdivisions then members of the
authority shall cause a notice of * such resolution or ordinance to be
published at least one time in a newspaper of general circulation in such
political subdivision. Such notice shall contain a brief statement of the
substance of the resolution or ordinance, making reference to this chapter,
and shall state that on a day certain, not less than ten days after
publication of the notice, an application to withdraw from or to become
a member of the authority as the case may be, will be filed with the State
Corporation Commission.

On or before the day specified in the notice the governing body or
governing bodies shall file such application with the State Corporation
Commission, together with proof of publication of the notice hereby
required. In the case of a political subdivision seeking to become a member
of the authority, the application shall set forth all of the information
required in the case of original incorporation in so far as it applies to the *
expanded authority and shall be accompanied by certified copies of the
resolutions and ordinances hereinbefore described. The application in all
cases shall be executed by the proper officers of the withdrawing or in-
coming political subdivision under its official seal, and shall be joined
in by the proper officers of the governing body of the authority, and in the
case of a political subdivision seeking to become a member of the
authority also by the proper officers of each of the political subdivisions
that are then members of the authority, pursuant to resolutions by the
governing bodies of such political subdivisions.

If the State Corporation Commission finds that the application con-
forms to law it shall, forthwith, but not prior to the day specified in the
notice endorse approval thereon, and when all proper fees and charges
have been paid, shall file the same and issue a certificate of withdrawal,
or a certificate of joinder, as the case may be, to which shall be attached
a copy of the approved application. The withdrawal or joining shall become
effective upon the issuing of such certificate.

§ 15.1-1249. Members of authority.—The powers of each authority
hereunder shall be exercised by five members, or not less than one member
from each participating political subdivision, selected in the manner and
for the terms provided by the ordinance or resolution or concurrent ordi-
nances or resolutions creating the authority, which shall name the first
members and their respective terms of office. No member shall be ap-
pointed for a term of more than four years. When one or more additional
political subdivisions join an existing authority, each of such joining polit-
ical subdivisions shall have not less than one member on the board. *
Members shall hold office until their successors have been appointed and
may succeed themselves. The members of the authority shall elect one
of their number chairman of the authority, and shall elect a secretary
and treasurer who need not be members of the authority. The offices of
secretary and treasurer may be combined. A majority of members of the
authority shall constitute a quorum and the vote of a majority of members
shall be necessary for any action taken by the authority. No vacancy in
the membership of the authority shall impair the right of a quorum to
exercise all the rights and perform all the duties of the authority. * If a
vacancy shall occur by reason of the death, disqualification or resignation
of a member, the governing body of the political subdivision which shall
have appointed such member shall appoint a successor to fill his unexpired
term. Whenever a political subdivision shall withdraw its membership
from an authority, the term of any member or members appointed to the
board of the authority from such political subdivision shall immediately
terminate. Members shall receive such compensation as shall be fixed
from time to time by resolution or resolutions of the governing body
or bodies then members of the authority, and shall be reimbursed for any
actual expenses necessarily incurred in the performance of their duties.

§ 15.1-1250. Each authority created hereunder shall be deemed to be
an instrumentality exercising public and essential governmental functions
to provide for the public health and welfare, and each such authority is
hereby authorized and empowered:

(a) To have existance for a term of fifty years as a corporation, and
for such further period or periods as may from time to time be provided
by appropriate resolutions of the political subdivisions then members of
the authority, provided, however, that the term of the authority shall not
be extended at any one time more than fifty years beyond the date of the
adoption of such resolutions;

(b) To adopt by-laws for the regulation of its affairs and the con-
duct of its business ;

(c) To adopt an official seal and alter the same at pleasure;

(d) To maintain an office at such place or places as it may designate;

(e) Tosueand be sued;

(f) To acquire, purchase, lease as lessee, construct, reconstruct, im-
prove, extend, operate and maintain any water system, or sewer system,
or sewage disposal system, or a garbage and refuse collection and disposal
system or any combination of such systems within, without, or partly
within and partly without one or more of the political subdivision or sub-
divisions by action of whose governing body or governing bodies the
authority was created, or who may hereafter join such authority, and to
acquire by gift, purchase or the exercise of the right of eminent domain
lands or rights in land or water rights in connection therewith, within,
without, partly within and partly without one or more of the political
subdivision or subdivisions by action of whose governing body or govern-
ing bodies the authority was created, or who may hereafter join such
authority; and to sell, lease as lessor, transfer or dispose of all or any
part of any property, real, personal or mixed, or interest therein at any
time acquired by it; provided, that the authority shall have the same
power of eminent domain and shall follow the same procedure therefor
as provided in §§ 15.1-335 and 15.1-340 of the Code of Virginia, except
that the authority shall not take by condemnation proceedings any prop-
erty belonging to any corporation possessing the power of eminent domain,
unless, after hearing all parties in interest, the State Corporation Com-
mission shall certify that a public necessity or that an essential public
convenience shall so require, and shall give its permission thereto; and
except that the authority shall not take by condemnation proceedings
less than the whole of the property owned by any corporation possessing
the power of eminent domain, unless the property taken is not essential
to the purpose of the corporation; or unless the authority, as a part of the
properties taken, takes the whole of the property owned by the corporation
located within the county, city or town which created the authority or
which is a member thereof; and provided, that the authority shall not
have the power to condemn any property owned or operated by any
corporation which is subject to regulation by the Interstate Commerce
Commission; and provided further, that no property or any interest or
estate therein owned by any county, city, town or other political sub-
division of the State shall be acquired by the exercise of the power of
eminent domain without the consent of the governing body of such county,
city, town or political subdivision; except as otherwise herein provided,
each authority is hereby vested with the same authority to exercise the
power of eminent domain as is vested in the State Highway Commissioner
of Virginia;

(zg) To issue revenue bonds of the authority, such bonds to be pay-
able solely from revenues to pay all or a part of the cost of a water
system, sewer system, or sewage disposal system, or a garbage and refuse
collection and disposal system, or any combination of such systems; pro-
vided, that no authority operating in any city having a population in ex-
cess of fifty thousand but not in excess of seventy-five thousand shall
hereafter undertake any project not heretofore specified by the enabling
ordinance of said city or issue bonds therefor, unless such undertaking
is approved by a majority of the qualified voters in the city affected voting
in a referendum thereon; such referendum shall be called by the govern-
ing body of said city, in the manner provided by § 15.1-1244;

(h) To combine any water system, sewer system, sewage disposal
system, or garbage and refuse collection and disposal system as a single
system for the purpose of operation and financing;

(h-1) To borrow at such rates of interest not to exceed six per centum
per annum as the authority may determine from individuals, partner-
ships, or private or municipal corporations, to issue its notes, bonds or
other obligations, and secure any of its obligations by mortgage or pledge
of all or any of its property and income. Any county, city or town which
has formed or joined an authority may lend money to such authority;

(1) To fix, charge and collect rates, fees and charges for the use of
or for the services furnished by any system operated by the authority.
Such rates, fees, rents and charges may be charged to and collected from
any person contracting for the same, or from the owner or lessee or tenant,
or some or all of them, who uses or occupies any real estate which is
served by any such system; and in the case of a sewer system or sewage
disposal system such real estate from or on which originates, sewage or
industrial wastes, or either, which have entered the sewer or sewage
disposal system; and the owner or lessee or tenant of any such real estate
shall pay such rates, fees, rents and charges to the authority, or its agent,
at the time when and place where the same may be due and payable;

(j) To enter into contracts with the federal government, the Com-
monwealth of Virginia, or any agency or instrumentality thereof, or with
any unit, private corporation, copartnership, association, or individual
providing for or relating to the furnishing of services and facilities of
any water system, sewer system, sewage disposal system, or garbage and
refuse collection and disposal system of the authority or in connection with
the services and facilities rendered by any such system owned or controlled
by the federal government or this Commonwealth, any agency or instru-
mentality thereof, and any unit, private corporation, copartnership, as-
sociation or individual;

(k) To contract with any municipality, county, corporation, indi-
vidual or any public authority or unit of this or any adjoining state, on
such terms as the said authority shall deem proper, for the construction
and operation of any project which is partly in this Commonwealth and
partly in such adjoining state;

1) To make and enter into all contracts or agreements, as the au-
thority may determine, which are necessary or incidental to the perform-
ance of its duties and to the execution of the powers granted by this
chapter, including contracts with any federal agency or with any unit,
on such terms and conditions as the authority may approve, relating to
(1) the use by such agency or by such unit or the inhabitants thereof of
any water system, sewer system, sewage disposal system, or garbage and
refuse collection and disposal system acquired or constructed by the au-
thority under this chapter, or the services therefrom or the facilities there-
of, or (2) the use by the authority of the services or facilities of any
water system, sewer system, sewage disposal system, or garbage and refuse
collection and disposal system owned or operated by an owner other
than the authority. Any such contract shall be subject to such provisions,
limitations or conditions as may be contained in the resolution of the
authority authorizing revenue bonds of the authority or the provisions
of any trust agreement securing such bonds. Any such contract may pro-
vide for the collecting of fees, rates or charges for the services and facili-
ties rendered to a unit or to the inhabitants thereof, by such unit or by
its agents or by the agents of the authority, and for the enforcement of
delinquent charges for such services and facilities. The provisions of any
such contract and or any ordinance or resolution of the governing body of
a unit enacted pursuant thereto shall be irrepealable so long as any of
the revenue bonds issued under the authority of this chapter shall be
outstanding and unpaid, and the provisions of any such contract, and of
any ordinance or resolution enacted pursuant thereto shall be and be
deemed to be for the benefit of such bondholders. The aggregate of any
fees, rates or charges which shall be required to be collected pursuant to
any such contract or any ordinance or resolution enacted thereunder shall
be sufficient to pay all obligations which may be assumed by the other
contracting party. Each water company, which is a public utility supply-
ing water to the owners, lessees or tenants of real estate which is or will
be served by any sewer or sewage disposal system of an authority is
authorized to act as the billing and collecting agent of the authority for
any rates, fees, rents or charges imposed by the authority for the service
rendered by such sewer or sewage disposal system and shall furnish to
the authority copies of its regular periodic meter reading and water con-
sumption records and other pertinent data as may be required for the
authority to act as its own billing and collecting agent. The authority
shall pay to such water company the reasonable additional cost of clerical
services and other expenses incurred by the water company in rendering
such services to the authority. Upon the inability of an authority and
such water company to agree upon the terms and conditions under which
the water company shall act as the billing and collecting agent of the
authority, either or both may petition the State Corporation Commis-
sion for a determination of the terms and conditions under which the
water company shall act as the billing and collecting agent of the author-
ity. In the event that such water company acts as the billing and collect-
ing agent of an authority it shall set forth separately on its bills the
rates, fees, rents or charges imposed by the authority, but both the water
and sewage disposal charges shall be payable to and collected by the
water company, and payment of either shall be refused unless both shall
be paid. The authority shall pay to the water company the cost of shutting
off any water service on account of nonpayment of the sewage disposal
charge. In the event of such discontinuance of water service the same
shall not be reestablished until such time as the sewage disposal charge
shall have been paid;

(m) To enter upon, use, occupy, and dig up any street, road, high-
way or private or public lands necessary to be entered upon, used or
occupied in connection with the acquisition, construction or improvement,
maintenance or operation of a water system, sewer system, sewage dis-
posal system, or garbage and refuse collection and disposal system, sub-
ject, however, to such reasonable local police regulation as may be estab-
lished by the governing body of any unit having jurisdiction in the par-
ticular respect. The governing body of any unit, notwithstanding any
contrary provision of law, is hereby authorized and empowered to transfer
jurisdiction over, to lease, lend, grant or convey, to the authority upon the
request of the authority, upon such terms and conditions as the governing
body of such unit may agree with the authority as reasonable and fair, such
real or personal property as may be necessary or desirable in connection
with the acquisition, construction, improvement, operation or mainte-
nance of a water system, sewer system, sewage disposal system or garbage
and refuse collection and disposal system by the authority including public
roads and other property already devoted to public use. The Common-
wealth of Virginia hereby consents to the use of all lands above or under
water and owned or controlled by it which are necessary for the construc-
tion, improvement, operation or maintenance of any such system; except
that the use of any portion between the right-of-way limits of any primary
or secondary highway in this State shall be subject to the approval of
the State Highway Commissioner. Whenever any railroad tracks, pipes,
poles, wires, conduits or other structures or facilities which are located in,
along, across, over or under any public road, street, highway, alley or other
public right of way shall become an obstruction to, interfere with or be
endangered by the construction, operation or maintenance of any system
of the authority the governmental unit having ownership, control or juris-
diction over such public road, street, highway, alley or other public right
of way may, as the exercise of an essential governmental] function, order
the safeguarding, maintaining, relocating, rebuilding, removing and re-
placing of such railroad tracks, pipes, poles, wires, conduits or other
structures or facilities by the owner thereof at the expense of the au-
thority, and subject to the provisions of § 25-233 of the Code of Virginia;
an

(n) In the event of any annexation by a municipality not a member
of the authority of lands, areas, or territory served by the authority, to
continue to do business, exercise its jurisdiction over its properties and
facilities in and upon or over such lands, areas or territory as long as
any bonds or indebtedness remain outstanding or unpaid, or any contracts
or other obligations remain in force.

(o) The articles of incorporation of any authority created under the
provisions of this chapter may be amended with respect to the name or
powers of such authority or in any other manner not inconsistent with
this chapter by following the procedure prescribed by law for the creation
of an authority. All amendments heretofore adopted in accordance with
the provisions of this section and all proceedings heretofore taken pursuant
ys any such amendment are hereby validated, ratified, approved and con-

rmed.

§ 15.1-1251. (a) * * * No governing body which shall have
created a then existing authority or which shall have joined with any
other governing body or governing bodies in the creation of or which shall
have joined an authority under the provisions of this chapter and which
shall then be a member of the authority so created or joined shall there-
after create * or join with any other governing body or governing
bodies in the creation of or join an authority under the provisions of this
chapter if the authority then to be created or joined would duplicate the
services then being performed in the whole or any part of the areas then
being served by such authority theretofore created or joined by said
governing body.