§ 1196-C — Organization of authorities

§ 1196-c. Organization of authorities. 1. When an authority has been\nestablished by special act of the legislature for the benefit of a\nsingle sponsoring municipality, upon such establishment the governing\nbody of such municipality shall file within one year after the effective\ndate of such special act, in the office of the secretary of state, a\ncertificate setting forth (a) the date of passage of such special act;\n(b) the name of the authority; (c) the names of the members and their\nterms of office, specifying which member is the chairman; and (d) the\nbounds of the district established by local law in which the authority\nwill deliver water to or transport sewage from the ultimate consumers or\ndischargers thereof, provided, however, that unless otherwise provided\nin such special act no such district may encompass any area contained\nwithin another district established under this title or within any other\nwater authority district created by this chapter. Should such district\ninclude all or any portion of a municipality or municipalities other\nthan the sponsoring municipality, such certificate shall be accompanied\nby a copy of the intermunicipal contract or contracts under which the\nauthority will provide services within such other municipality or\nmunicipalities, together with copies of the local law approving same.\nAny changes in the bounds of such districts or to such contracts shall\nbe similarly filed within thirty days thereof.\n 2. Where an authority has been established by special act of the\nlegislature for the benefit of more than one sponsoring municipality,\nupon such establishment the governing body of each such municipality\nshall file within one year after the effective date of such special act,\nin the office of the secretary of state, a certificate setting forth (a)\nthe date of passage of such special act; (b) the name of the authority;\n(c) the name or names of the member or members appointed by such\ngoverning body and their terms of office; and (d) the bounds of that\nportion of the district established by local law within the applicable\nmunicipality in which the authority will deliver water to or transport\nsewage from the ultimate consumers or dischargers thereof, provided,\nhowever, that unless otherwise provided by such special act no such\nportion may encompass any area contained within another district\nestablished under this title or within any other water district created\nby this chapter. Each such certificate shall be accompanied by a copy of\nthe local law establishing such portion of the district and by a copy of\nthe intermunicipal agreement under which membership on the authority is\napportioned among the sponsoring municipalities and a copy of the local\nlaw approving same.\n 3. An authority shall be deemed to be and shall be in existence upon\nthe satisfactory filing and receipt of the certificate or certificates\nrequired by subdivision one or two hereof. An authority and its\ncorporate existence shall continue until terminated by law; provided,\nhowever, that no such law shall take effect so long as the agency shall\nhave bonds or other obligations outstanding unless adequate provision\nhas been made for the payment or satisfaction thereof. Upon termination\nof the existence of the authority, all of the rights and properties of\nthe authority then remaining shall pass to and vest in the sponsoring\nmunicipality or municipalities, as the case may be.\n 4. An authority shall be a corporate governmental agency constituting\na public benefit corporation. Except as otherwise provided by special\nact of the legislature where there is more than one sponsoring\nmunicipality, an authority shall consist of not less than three nor more\nthan five members. Such members shall be appointed and the chairman\ndesignated by the governing body of the sponsoring municipality,\nprovided that where there is more than one sponsoring municipality, the\napportionment of members between or among the sponsoring municipalities\nand the manner of selection of a chairman shall be determined by\nintermunicipal agreement. Members shall serve at the pleasure of the\nappointing municipality, and each member shall continue to hold office\nuntil his successor is appointed and has qualified. The governing body\nshall file with the secretary of state a certificate of appointment or\nreappointment of any member appointed or reappointed by it. Members\nshall receive no compensation for their services but shall be entitled\nto reimbursement of the necessary expenses, including traveling\nexpenses, incurred in the discharge of their duties.\n 5. No action shall be taken by an authority except pursuant to the\nfavorable vote of a majority of the members then in office.\n 6. Any one or more of the members of an authority may be an official\nor an employee of a sponsoring municipality. In the event that an\nofficial or an employee of such municipality shall be appointed as a\nmember of the agency, acceptance or retention of such appointment shall\nnot be deemed a forfeiture of his municipal office or employment, or\nincompatible therewith or affect his tenure or compensation in any way.\nThe term of office of a member of an authority who is an official or an\nemployee of such municipality when appointed as a member thereof by\nspecial act of the legislature creating the authority shall terminate at\nthe expiration of the term of his municipal office.\n 7. In addition to any powers granted to it by law, the governing body\nof the sponsoring municipality or municipalities, from time to time, may\nappropriate by resolution sums of money to defray project costs or any\nother costs and expenses of the authority. Subject to the rights of\nbondholders, the governing body may determine if the moneys so\nappropriated shall be subject to repayment by the authority to the\nmunicipality or municipalities, and in such event, the manner and time\nor times for such repayment.\n 8. It is hereby determined and declared that an authority and the\ncarrying out of its powers, purposes and duties are in all respects for\nthe benefit of the people of the sponsoring municipality or\nmunicipalities and the state, for the improvement of their health,\nwelfare and prosperity and that the said purposes are public purposes\nand that an authority is and will be performing an essential\ngovernmental function in the exercise of the powers conferred upon it by\nthis title.\n