CHAPTER 430

An Act to amend and reenact § 15-764.12, as amended, of the Code of
Virginia, relating to powers of water and sewer authorities.
[S 142]

Approved March 31, 1960

Be it enacted by the General Assembly of Virginia:

1. That § 15-764.12, as amended, of the Code of Virginia, be amended and
reenacted as follows:

§ 15-764.12. Each authority created hereunder shall be deemed to
be an instrumentality exercising public and essential governmental func-
tions to provide for the public health and welfare, and each such authority
is hereby authorized and empowered:

(a) To have existence for a term of fifty years as a corporation;

(b) To adopt by-laws for the regulation of its affairs and the conduct
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, im-
prove, extend, operate and maintain any water system, or sewer system,
or sewage disposal system, or a garbage and refuse collection and dis-
posal system or any combination of such systems within or partly within
and partly without one or more of the political subdivision or subdivisions
by action of whose governing body or governing bodies the authority was
created, 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; and to sell, lease as lessor, transfer or dispose of any property
cr 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 §§ 15-749 and 15-754 of the Code of
Virginia, * except that the authority shall not take by condemnation pro-
ceedings any property belonging to any corporation possessing the power
of eminent domain, unless, after hearing 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 authority shall not take by condemnation pro-
ceedings 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 au-
thority 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 subdivision
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;

(g) To issue revenue bonds of the authority, such bonds to be payable
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 thou-
sand 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 governing body of said city, in the
manner provided by § 15-764.6;

(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, 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
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 instrumentality thereof, and any unit, private corporation, copartner-
ship, association or individual;

(k) To contract with any municipality, county, corporation, individual
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 author-
ity may determine, which are necessary or incidental to the performance
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 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
system, sewer system, sewage disposal system, or garbage and refuse col-
lection 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 enforcment 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
sssued 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 sewage
disposal system and shall furnish to the authority copies of its regular
periodic meter reading and water consumption records and other perti-
nent 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 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 non-
payment of the sewage disposal charge. In the event of such discontin-
uance 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, highway
or private or public lands necessary to be entered upon, used or occupied
in connection with the acquisition, construction or improvement, maint-
enance 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 con-
nection with the acquisition, construction, improvement, operation or
maintenance 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 approval of the State Highway Commissioner. Whenever any rail-
road 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 mainte-
nance of any system of the authority the governmental unit having owner-
ship, 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, removing 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 con-
tracts or other obligations remain in force.

2. An emergency exists and this act is in force from its passage.