Sec. 1 [Created, composition and organization of authority; appointment, terms, compensation, etc., of authority members.]
Sec. 1 [Created, composition and organization of authority; appointment, terms, compensation, etc., of authority members.]
There is hereby created a district to be known as the Kent County water district (hereinafter called the "district"), a political subdivision, whose boundaries shall be co-terminous with the boundaries of Kent County. A board to be known as the Kent County water authority is hereby created. Such board shall be a body corporate and politic constituting a public benefit corporation and shall serve as the governing body of the district for the purposes of this act. Such board shall consist of five members, one member to be appointed by the town councils respectively of East Greenwich, West Warwick and Coventry, and one member by the city council of the City of Warwick, and one additional member shall be appointed by the said council of the above-named town or city having the greatest number of inhabitants as shown by the United States census in effect when such appointment shall be made, who are customers of said water authority. The successor and successors of said original fifth member shall be elected by the other members of said authority in the same manner, meaning that said fifth member shall always be chosen from the town or city having the greatest number of water takers of said authority at the time or times of such successive elections. The members of the board first appointed shall serve for terms of one, two, three, four and five years, respectively, the term of each such member to be determined by the members thereof by lot, and each successor member shall serve for a term of five years. In the event of a vacancy occurring in the board by reason of the death, resignation or otherwise of a member, the governing body of the town or city, which appointed such member, shall appoint a new member for the unexpired term. The chairman of the board shall be selected by the majority vote of the members of the board. The board shall appoint a secretary and a treasurer who may or may not be a member of the board and such other employees as may be necessary in its judgment, and fix their compensation. The powers of such corporation shall be vested in and exercised by a majority of the members of the board hereby created then in office. The members of the board shall serve without compensation but shall be entitled to reimbursement of their actual and necessary expenses incurred in the performance of their official duties. The salaries, compensation, and expenses of all members, officers, employees and agents shall be paid solely out of the funds of the authority.
The term "authority" shall mean the corporation created by section 1 of this act.
The term "bonds" shall mean the bonds, notes or other obligations issued by the authority pursuant to this act.
The term "board" shall mean the members of the authority.
The term "treasurer" shall mean the treasurer of the authority.
The term "property" shall mean any or all of the properties of any water supply and distribution system or part thereof, including plants, works and instrumentalities and all properties used or useful in connection therewith and all parts thereof and all appurtenances thereto, including lands, easements, rights in land and water rights, rights-of-way, contract rights, franchises, approaches, connections, dams, reservoirs, water mains and pipelines, pumping stations and equipment or any other property incidental to and included in such system or part thereof situated within or without the district.
To acquire property by voluntary purchase from the owner or owners thereof; and if the authority deems it advisable, to acquire any of the said properties through the purchase of stock and obligations of a corporation owning the same and the dissolution of such corporation. The owner or owners of any property which the authority is herein authorized to acquire are hereby authorized to sell or otherwise transfer the same to the authority, and in the case of a sale or other transfer of property pursuant to this provision it shall be lawful to dissolve such corporation, any other provision of law to the contrary notwithstanding.
To own and operate, maintain, repair, improve, enlarge and extend, in accordance with the provisions of this act, any property acquired hereunder all of which, together with the acquisition of such property, are hereby declared to be public purposes.
To sell, lease, convey or otherwise dispose of any property or improvements thereto which the authority may hereafter acquire or construct to any city, county or town in which said property shall be situated; provided, however, that any sale, lease, conveyance or other disposition of the said property shall not prejudice the security of any outstanding bonds or reduce the supply of water to any other city, county or town.
To produce, distribute and sell water within or without the territorial limits of the district.
To sue and be sued.
To adopt and alter a corporate seal.
To acquire, hold, use, lease, sell, transfer and dispose of any property, real, personal or mixed, or interest therein for its corporate purposes subject to the limitations set forth in paragraph numbered 3 above.
To make bylaws for the management and regulation of its affairs.
To borrow money for any of its corporate purposes, including the creation and maintenance of working capital, and to issue negotiable bonds, notes or other obligations and to fund or refund the same.
To fix rates and collect charges for the use of the facilities of services rendered by or any commodities furnished by the authority, such as to provide revenues sufficient at all times to pay, as the same shall become due, the principal and interest on the bonds of the authority, together with the maintenance of proper reserves therefor, in addition to paying as the same shall become due the expense of operating and maintaining the properties of the authority, together with proper reserves for depreciation, maintenance and contingencies and all other obligations and indebtedness of the authority. The authority shall charge any city, county or town for the use of any facility of or service rendered by or any commodities furnished to it by the authority at rates applicable to other users taking similar service.
To contract in its own name for any lawful purpose which would effectuate the provisions of this act; to execute all instruments necessary to carry out the purposes of this act; and to do all things necessary or convenient to carry out the powers expressly granted by this act; provided, however, that the full faith, credit and taxing power of the state or of any city, county, town or other political subdivision shall never be pledged, nor shall any bond, note or other evidence of indebtedness of the authority constitute the obligation of the state or of any city, county, town or other political subdivision, but shall be solely the obligation of the authority. It is the intention of the legislature that any property acquired by the authority pursuant to the provisions of this act shall be financed as a self-liquidating enterprise, and that any indebtedness incurred by the authority shall be payable solely from the earnings or revenues derived from all or part of the property acquired by the authority.
To enter into cooperative agreements with cities, counties, towns or water companies within or without the district for the interconnection of facilities or for any other lawful corporate purposes necessary or desirable to effect the purposes of this act.
The authority shall have the power and is hereby authorized from time to time to issue its negotiable bonds for any of its corporate purposes and to secure the payment of the same as may be provided in the resolution or resolutions authorizing such bonds. Except as may be otherwise expressly provided by the authority, every issue of bonds by the authority shall be general obligations payable out of any moneys, earnings or revenues of the authority, subject only to any agreements with the holders of particular bonds pledging any particular moneys, earnings or revenues.
The bonds shall be authorized by resolution of the board, and shall bear such date or dates, mature at such time or times not exceeding 40 years from their date, bear interest at not exceeding 6% per annum, payable semiannually, be in such dominations, be in such form either coupon or registered, carry such registration privileges and such privileges of reconversion from registered to coupon form, be executed in such manner, be payable in such medium of payment, at such place or places and be subject to redemption at such premium and on such terms, as such resolution may provide. Pending the preparation of bonds in definitive form, the board shall have the power to issue temporary bonds or interim receipts in such form as the board may elect. The authority shall have the power and is hereby authorized to refund any bonds authorized by and issued pursuant to this act by the issuance of new bonds; provided, however, that such refunding bonds shall be issued within one year of the maturity or of any redemption date of the bonds to be refunded. Any bonds authorized by and issued pursuant to this act may be sold at public or private sale for such price or prices as the authority shall determine.
Any resolution or resolutions authorizing any bonds or any issue of bonds may contain provisions which shall be a part of the contract with the holders of the bonds thereby authorized, as to:
Pledging all or any part of the moneys, earnings, income and revenues derived from all or any part of the property of the authority to secure the payment of any bonds or of any issue of bonds subject to such agreements with bondholders as may then exist.
The rates to be fixed and the charges to be collected and the amounts to be raised in each year, and the use and disposition of the earnings and other revenues.
The setting aside of reserves and the creation of sinking funds and the regulation and disposition thereof.
Limitations on the right of the authority to restrict and regulate the use of the properties in connection with which such bonds are issued.
Limitations on the purposes to which the proceeds of sale of any issue of bonds may be applied.
Limitations on the issuance of additional bonds, including refunding bonds and the terms upon which additional bonds may be issued and secured.
The procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of bonds the holders of which must consent thereto, and the manner in which such consent may be given.
The creation of special funds into which any earnings or revenues of the authority may be deposited, and the investment of such funds.
The appointment of a fiscal agent and the determination of its [his] powers and duties.
Limitations on the power of the authority to sell or otherwise dispose of its properties.
The preparation of annual budgets by the authority and the employment of consulting engineers and auditors.
The rights and remedies of bondholders in the event of failure on the part of the authority to perform any agreement.
Any other matters, of like or different character which in any way affect the security or protection of the bonds.
It is hereby declared that the authority and the carrying out of its corporate purposes is in all respects for the benefit of the people of the State of Rhode Island and Providence Plantations, for the improvement of their health, welfare and prosperity, and the authority will be performing an essential governmental function in the exercise of the powers conferred by this act, and the State of Rhode Island and Providence Plantations covenants with the holders of the bonds that the authority shall be required to pay no taxes or assessments or sums in lieu of taxes, except as hereinafter provided, to the state or any political subdivision thereof upon any of the property acquired by it or under its jurisdiction, control, possession or supervision or upon its activities in the operation and maintenance of the property or upon any earnings, revenues, moneys or other income derived by the authority, and that the bonds of the authority and the income therefrom shall at all times be exempt from taxation. The authority shall pay annually, having first made provision for the payment of principal and interest on any bonds outstanding and any other charges payable from revenues due in such year as may be provided in the resolution or resolutions authorizing any bonds, in lieu of any property tax, as a charge upon its earnings or revenues, to each city, town or district, a sum equal in amount to any property tax levied on any property by or on behalf of such city, town or district during the year next preceding the acquisition of such property by the authority. The authority shall have no power to levy or collect ad valorem property taxes.
The State of Rhode Island and Providence Plantations does hereby pledge to and agree with the holders of the bonds, notes and other evidences of indebtedness of the authority that the state will not limit or alter rights hereby vested in the authority until the said bonds, notes or other evidences of indebtedness, together with interest thereon, with interest on any unpaid installment of interest and all costs and expenses in connection with any actions or proceedings by or on behalf of the bondholders, are fully met and discharged.
All moneys of the authority, from whatever source derived, shall be paid to the treasurer of the authority. Such moneys on receipt shall be deposited forthwith in a separate bank account or accounts. The moneys in such accounts shall be paid out on check of the treasurer on requisition by the authority or of such other person or persons as the authority may authorize to make such requisitions. All deposits of such money shall be secured by obligations of the United States or of the State of Rhode Island and Providence Plantations of a market value equal at all times to the amount of deposits, and all banks and trust companies are authorized to give such security for such deposits. The authority shall have power, notwithstanding the provisions of this section, to contract with the holders of any of its bonds as to the custody, collection, security, investment and payment of any moneys of the authority, or any moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds, and to carry out any such contract notwithstanding that such contract may be inconsistent with the previous provisions of this section. Moneys held in trust or otherwise for the payment of bonds or in any way to secure bonds and deposits of such moneys may be secured in the same manner as moneys of the authority, and all banks and trust companies are authorized to give such security for such deposits.
The bonds are hereby made securities in which all public officers and bodies of this state and all municipalities and municipal subdivisions, all insurance companies and associations and other persons carrying on an insurance business, all banks, bankers, trust companies, savings banks and savings associations, including savings and loan associations, building and loan associations, investment companies and other persons carrying on a banking business, all administrators, guardians, executors, trustees and other fiduciaries and all other persons whomsoever who are now or may hereafter be authorized to invest in bonds or other obligations of the state, may properly and legally invest funds including capital in their control or belonging to them. The bonds are also hereby made securities which may be deposited with and shall be received by all public officers and bodies of this state and all municipalities and municipal subdivisions for any purpose for which the deposit of bonds or other obligations of this state is now or may hereafter be authorized.
The right to alter, amend or repeal this act is hereby expressly reserved, but no such alteration, amendment or repeal shall operate to impair the obligation of any contract made by the authority under any power conferred by this act.
Chapter 1569 of the Public Laws of 1945 entitled "An act authorizing the creation of one or more authorities by the cities of Cranston and Warwick, and the towns of Scituate, Coventry, East Greenwich, West Greenwich and West Warwick, or any one or more of said municipalities" is hereby repealed.