SEC. 49-17-315. Treatment facility contracts between authority and public agencies; terms.
(1) Any public agency may, pursuant to a duly adopted resolution of the governing body of such public agency, enter into contracts with the authority for the authority to (a) acquire, lease, improve, extend, operate or maintain the treatment facilities of the public agency; or (b) acquire or construct treatment facilities to be owned by the authority for the furnishing of services to the public agency; including in each instance such contracts whereby the public agency is obligated to make payments in amounts which shall be sufficient to enable the authority to meet its expenses, interest and principal payments (whether at maturity or upon sinking fund redemption) for its bonds, reserves for debt service, payments into funds for operation and maintenance and renewals and replacements and the requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security agreement relating to its bonds. If ten percent (10%) or fifteen hundred (1500), whichever is greater, of the qualified electors of any affected public agency shall file a written protest against entering into such contract with the authority on or before the date and time specified in such resolution, then an election on the question of entering into such contract shall be called and held as set forth in section 49-17-325; provided, however, that in the event a county is an affected public agency, then the qualified electors of such county shall mean the qualified electors of such county who reside within the unincorporated areas within such county's geographical limits. If no such protest is filed, then such contracts may be issued without an election. Such contracts may also contain such other terms and conditions as the authority and the public agency may determine, including provisions whereby the public agency is obligated to make payments under such contract irrespective of whether or not use or services are rendered or whether or not the treatment facilities contemplated by such contracts are completed, operable or operating, and notwithstanding suspension, interruption, interference, reduction or curtailment of the use or services of such treatment facilities. Such contracts may be for a term covering the life of the treatment facilities or for any other term or for an indefinite period and may be made with or without consideration.
(2) Contracts referred to in this section may provide that the obligation of a public agency to make payments to the authority with respect to certain treatment facilities is several, or is joint and several, with the obligations of other public agencies or other persons contracting with the authority for the use or services of such treatment facilities; and, where the public agency's obligation is joint and several, then in the event any other public agency or other person defaults in his obligation, the public agency may be required to increase its payments to the authority by a proportional amount, taking into consideration the remaining persons who are likewise contracting with the authority and who are not in default.
(3) The obligations of a public agency arising under the terms of any contract referred to in this section, whether or not payable solely from revenues or solely from a pledge of ad valorem taxes as provided in section 49-17-317 or any combination thereof, shall not be construed as being included within the indebtedness limitations of the public agency for purposes of any constitutional or statutory limitation or provision. To the extent provided in such contract and to the extent such obligations of the public agency are payable solely from the revenues and other moneys derived by the public agency from the operation of its treatment facilities or collection facilities or any combination thereof which are the subject of such contract, such obligations may be treated as expenses of operating such facilities.
(4) Contracts referred to in this section may also provide for payments in the form of contributions to defray the cost of any purpose set forth in the contracts and as advances for any treatment facilities subject to repayment by the authority. A public agency may make such contributions or advances from its general fund or surplus fund or from any moneys legally available therefor.
(5) Contracts referred to in this section may, in order to provide effective and prompt cooperation and coordination of any matters among persons contracting with the authority and persons representing the authority regarding treatment facilities, establish a coordinating committee of such persons. Such committee shall consist of one (1) representative selected by the authority, who shall be the coordinating committee's chairman, and such other representatives from among the contracting parties as shall be provided for by the terms of the contract. Such coordinating committee shall have such rights and powers with respect to the subject matter of the contract as shall be provided for therein.
(6) Payments made or to be made to the authority by a public agency or other person pursuant to a contract for the use or services of treatment facilities shall be determined by the method specified in such contract and shall not be subject to approval or review by the public service commission.
SOURCES: Laws, 1980, ch. 521, Sec. 8, eff from and after passage (approved May 23, 1980).