CHAPTER 540

An Act to validate the creation of the Blacksburg-Virginia Polytechnic
Institute Sanitation Authority as a public body politic and corporate
and the appointment of its members, and to prescribe their terms of
office; to provide for the appointment of their successors; to author-
ize the town of Blacksburg and the Board of Visitors of the Virginia
Polytechnic Institute to contract with said authority for sewage
treatment and to authorize said Board of Visitors to fix fees, rents
and charges with respect to sewage treatment under any such con-
tract; and to provide that any such fees, rents and charges be applied
to meet obligations assumed under such contracts.

. [H 554]

Approved March 31, 1962

Be it enacted by the General Assembly of Virginia:
1. § 1. All acts done and proceedings taken by the Council of the Town
of Blacksburg and the Board of Visitors of the Virginia Polytechnic Insti-
tute for the purpose of creating a Sanitation Authority pursuant to the
provisions of the Virginia Water and Sewer Authorities Act (Chapter
22.1, Title 15, §§ 15-764.1 to 15-764.32, Code of Virginia, 1950, as
amended), including the adoption by the Council of the Town of Blacks-
burg and by the Board of Visitors of the Virginia Polytechnic Institute
of a resolution signifying their intention to create such Sanitation Author-
ity, and the acts done and the proceedings taken to hold public hearings
on such resolution, and the issuance by the State Corporation Commission
of the Commonwealth of Virginia of Articles of Incorporation to such
Sanitation Authority on the ninth day of February, nineteen hundred
sixty-two, are hereby legalized and validated, and said Sanitation Author-
ity shall be and it hereby is declared to be validly created and established,
notwithstanding any defects or irregularities in said acts or proceedings.
Said Sanitation Authority shall constitute a sanitation authority for the
purposes of said Virginia Water and Sewer Authorities Act and shall
have all the powers and duties granted or imposed by said act and shall
be known as the Blacksburg-Virginia Polytechnic Institute Sanitation
Authority.

§ 2. The appointments of William A. Parsons, John R. Castleman,
Howard P. Gates, W. Bane Atkinson and Robert C. Heavener to be mem-
bers of said Authority, made by said proceedings, are hereby legalized and
validated. The terms of office of said William A. Parsons, John R. Castle-
man, Howard P. Gates, W. Bane Atkinson and Robert C. Heavener shall
end on the first day of January in the following years, respectively: nine-
teen hundred sixty-six, nineteen hundred sixty-six, nineteen hundred sixty-
six, nineteen hundred sixty-four and nineteen hundred sixty-four. The
successors of William A. Parsons, John R. Castleman and Howard P.
Gates shall each be appointed for a term of four years. The successors of
W. Bane Atkinson and Robert C. Heavener shall be appointed for a term
of two years. The successor of said William A. Parsons shall be appointed
by a resolution adopted by the Board of Visitors of Virginia Polytechnic
Institute, the successor of John R. Castleman shall be appointed by a reso-
lution adopted by the Council of the Town of Blacksburg and the succes-
sors of Howard P. Gates, W. Bane Atkinson and Robert C. Heavener shall
each be appointed by a joint resolution adopted by the Council of the Town
of Blacksburg and the Board of Visitors of Virginia Polytechnic Institute.
Each member shall take the oath prescribed by general law and serve until
the end of his term or until his successor shall have been duly appointed
and qualified.

§ 38. The Town of Blacksburg, acting by its Council, and the Board
of Visitors of Virginia Polytechnic Institute shall have authority to enter
into a contract or contracts with the Authority obligating said Authority
to treat the sewage of the two political subdivisions and providing for
payment therefor in such manner and upon such terms and conditions
as may be prescribed by such contract or contracts. Any such contract
may run for a period which shall not exceed forty years. The Town of
Blacksburg and said Board of Visitors of Virginia Polytechnic Institute
are hereby authorized and empowered to do and perform any and all acts
or things necessary, convenient or desirable to carry out and perform
every such contract and to provide for the payment and discharge of their
respective obligations thereunder.

§ 4. The Board of Visitors of the Virginia Polytechnic Institute,
upon entering into any such contract, is hereby authorized and empowered
to fix such fees, rents and charges in connection with the use and services
rendered directly or indirectly by said Authority as in the opinion of said
Board may be necessary and proper in order to provide receipts and
revenues for the payment of all charges under any such contract. All fees,
rents and charges so collected by Virginia Polytechnic Institute shall be
paid into the State treasury and any such sums of money so paid into the
State treasury shall be set aside and constitute a special fund devoted
solely to the payment of the charges arising out of any such contract
entered into between said Board of Visitors and said Authority.

§ 5. The State of Virginia does pledge to and agree with the holders
of any bonds issued by said Authority and that the State will not limit or
alter the rights hereby vested in the Virginia Polytechnic Institute to
establish and collect such fees, rents and charges as may be convenient
or necessary to produce sufficient revenues to meet the charges for the
sewage treatment and services rendered by said Authority under any such
contract or in any way to impair the remedies and rights of such holders
until the bonds, together with the interest thereon, with interest on any
unpaid installments of interest and all costs and expenses in connection
with any action or proceeding by or on behalf of such holders, are fully
met and discharged.

Kevenue bonds issued under the provisions of this act shall not be
deemed to constitute a debt of the Commonwealth or of any political sub-
division thereof or a pledge of the faith and credit of the Commonwealth
or of any such political subdivision, but all such bonds shall be payable
solely from the funds herein provided therefor from revenues. All such
revenue bonds shall contain on the face thereof a statement to the effect
that the Commonwealth shall not be obligated to pay the same or the
interest thereon except from revenues of the project for which they are
issued and that neither the faith and credit nor the taxing power of the
Commonwealth is pledged to the payment of the principal of or interest
on such bonds.

§ 6. Notwithstanding any other section of this act to the contrary,
the Division of the Budget of the Commonwealth of Virginia shall make
a complete and comprehensive study of the present sewage treatment
plant owned and operated by the Virginia Polytechnic Institute and of the
related facilities, including without limitation, lines, pumping stations and
all other parts, portions and equipment thereof. Such engineering study
shall include consideration of the institutions, agencies and political sub-
divisions being served thereby and, in connection therewith, the area pro-
posed to be served by any extension thereof. The study shall further
include the benefits, if any, to be gained by the Virginia Polytechnic Insti-
tute and the State from the transfer of the sewage treatment plant and
related facilities presently owned by it to any other political subdivision
and the costs to the Virginia Polytechnic Institute and State under the
present arrangement as well as the cost to the Virginia Polytechnic Insti-
tute and State under any proposed transfer to any other political sub-
division. The Division of the Budget shall begin such study forthwith and
shall make its report and recommendations to the Governor as soon as may
be. If the Governor, after consideration of such report, is of opinion that
the Virginia Polytechnic Institute should be authorized to transfer the
sewage treatment plant and related facilities to any other political sub-
division and to enter into a contract for the use of such transferred plant
and related facilities and the rate of charge to be made in connection there-
with, the Governor may authorize the Virginia Polytechnic Institute, under
such terms and conditions as he deems appropriate, to make such transfer
and to enter into such contract; if such authorization is granted then §§ 1
through 5 of this act shall come into full force and effect but until such
authorization is granted by the Governor §§ 1 through 5 shall be of no
force and effect.

. An emergency exists and § 6 of this act is in force from its passage,
and §§ 1 through 5 shall be in force as of such time the Governor grants
the authorization referred to in § 6.