CHAPTER 556

An Act to amend and reenact § 15.1-1250, as amended, of the Code of
Virginia, relating to powers of water and sewer authorities. s
[S 513]

Approved April 4, 1968

Be it enacted by the General Assembly of Virginia:

1. That § 15.1-1250, as amended, of the Code of Virginia be amended
and reenacted as follows:

§ 15.1-1250. Powers of authority.—Each authority created here-
under shall be deemed to be an instrumentality exercising public and
essential governmental functions to provide for the public health and wel-
fare, and each such authority is hereby authorized and empowered:

(a) To have existence 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 an authority shall not be
extended beyond a date exceeding fifty years from the date of the adop-
tion 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) To sue and be sued;

(f) To acquire, purchase, lease as lessee, construct, reconstruct,
improve, 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 [after February twenty-
seventh, nineteen hundred and sixty-two], 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, or 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 [after Feb-
ruary twenty-seventh, nineteen hundred and sixty-two], join such author-
ity ; 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 property belonging to any
corporation possessing the power of eminent domain, unless, after hear-
ing all parties in interest, the State Corporation Commission 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 author-
ity shall not take by condemnation proceedings less than the whole of the
property owned by any corporation possessing the power of eminent do-
main, 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 pro-
vided further, that no property or any interest or estate therein owned by
any county, city, town or other political subdivision of the State shall be
acquired by the exercise of the power of eminent domain without the con-
sent of the governing body of such county, city, town or political subdivi-
sion; 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;

(g) 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; provided, that
no authority operating in any city having a population in excess of fifty
thousand but not in excess of seventy-five thousand shall hereafter under-
take 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 governing body of said
city, in the manner provided by § 15.1-1244; and provided further that
no city affected by the population group specified in this subsection shall
continue to be affected tf it attains a population in excess of seventy-five
thousand as shown by the last preceding United States census;

(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;
(h1) To borrow at such rates of interest not to exceed six per centum
per annum as the authority may determine from individuals, partnerships,
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;

(i) 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 pro-
viding 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 instrumen-
tality thereof, and any unit, private corporation, copartnership, associa-
tion 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 chap-
ter, 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 authority
under this chapter, or the services therefrom or the facilities thereof, or
(2) the use by the authority of the services or facilities of any water sys-
tem, sewer system, sewage disposal system, or garbage and refuse collec-
tion and disposal system owned or operated by an owner other than the
authority. Any such contract shall be subject to such provisions, limita-
tions 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 provide for the
collecting of fees, rates or charges for the services and facilities 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
of 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 com-
pany, which is a public utility supplying 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 sew-
age disposal system and shall furnish to the authority copies of its regular
periodic meter reading and water consumption 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 bill-
ing and collecting agent of the authority, either or both may petition
the State Corporation Commission for a determination of the terms and
conditions under which the water company shall act as the billing and
collecting agent of the authority. In the event that such water company
acts as the billing and collecting 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 nonpay-
ment 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) Toenter upon, use, occupy, and dig up any street, road, highway
or private or public lands necessary to be entered upon, used or occupied
in connection with the acquisition, construction or improvement, mainte-
nance or operation of a water system, sewer system, sewage disposal
system, or garbage and refuse collection and disposal system, subject,
however, to such reasonable local police regulation as may be established
by the governing body of any unit having jurisdiction in the particular
respect. The governing body of any unit, notwithstanding any contrary
provision of law, is hereby authorized and empowered to transfer juris-
diction 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 connec-
tion with the acquisition, construction, improvement, operation or main-
tenance of a water system, sewer system, sewage disposal system or
garbage and refuse collection and disposal system by the authority in-
cluding public roads and other property already devoted to public use. The
Commonwealth 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
construction, 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 ap-
proval 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 jurisdiction 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, re-
moving and replacing of such railroad tracks, pipes, poles, wires, conduits
or other structures or facilities by the owner thereof at the expense of
the authority, and subject to the provisions of § 25-233 of the Code of
Virginia; and

(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 ot
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 to
pile such amendment are hereby validated, ratified, approved and con-

rmed.