AN ORDINANCE REGARDING FINANCING OBLIGATIONS OF THE
BOLTON LAKES REGIONAL WATER POLLUTION CONTROL AUTHORITY AND THE PAYMENT AND GUARANTEE OBLIGATIONS OF ITS CONSTITUENT MUNICIPALITIES OF BOLTON AND VERNON
I. DEFINITIONS
For the purposes of this ordinance, the following terms shall have the meanings set forth in this section:
“BLRWPCA” means the Bolton Lakes Regional Water Pollution Control Authority, as established by the Enacting Ordinance, or any successor thereto.
“Bolton” means the Town of Bolton, Connecticut.
“Bonds” means any bonds, notes, temporary notes or other obligations issued, renewed or refinanced by the BLRWPCA pursuant to the provisions of CGS §§ 22a-500 to 22a-519, inclusive, including but not limited to Interim Funding Obligations, Project Loan Obligations, and obligations incurred in connection with any United States Department of Agriculture loan program.
“CGS” means the Connecticut General Statutes, as the same may be amended from time to time.
“DEP” means the Connecticut Department of Environmental Protection.
“Enacting Ordinance” means the Ordinance Creating The Bolton Lakes Regional Water Pollution Control Authority, which Ordinance was adopted by Bolton on April 1, 2003 and by Vernon on April 5, 2003.
“Financing Ordinance” shall mean this Ordinance Regarding Financing Obligations Of The Bolton Lakes Regional Water Pollution Control Authority And The Payment And Guarantee Obligations Of Its Constituent Municipalities Of Bolton And Vernon.
“Interim Funding Obligation” has the same meaning as set forth in CGS § 22a-475 (17).
“Jurisdictional Area” means the area over and within which the BLRWPCA has regulatory jurisdiction pursuant to the Enacting Ordinance.
"2003 Study Construction Phase" means all of the sewer construction activities that are planned to occur in the Lakes District and the Southwestern District in accordance with the report entitled “Bolton Lakes Wastewater Management Study, Towns of Vernon & Bolton, Connecticut, January 22, 2003, Revised May 2003", by Fuss & O'Neill, Inc., as that report may be amended prior to the beginning of such construction.
"2003 Study Construction Phase Bonds" means Bonds issued to finance design, construction and other costs (including temporary interest and other financing costs) related to the 2003 Study Construction Phase of the Regional Sewerage System. The 2003 Study Construction Phase Bonds may be issued and renewed from time-to-time, in one or more series, through public or private sale and under one or more programs.
“Project Loan Obligation” has the same meaning as set forth in CGS § 22a-475 (28).
“Regional Sewerage System” and “System” mean the sewerage system to be constructed, maintained and operated by the BLRWPCA pursuant to the Enacting Ordinance.
“Towns” means Bolton and Vernon.
“Vernon” means the Town of Vernon, Connecticut.
Capitalized terms used herein not otherwise defined shall have the same meaning ascribed to them by the Enacting Ordinance, unless the context otherwise demands.
II. STATEMENT OF PURPOSE
The Enacting Ordinance was adopted by Bolton and Vernon to address regional concerns for safe wastewater disposal and groundwater protection. The Enacting Ordinance contemplates the construction of a Regional Sewerage System and provides terms for the proportional allocation of costs to Bolton and Vernon. It also contemplates that, after the Regional Sewerage System is constructed and becomes operational, benefit assessments and connection and use charges will be implemented by the BLRWPCA in accordance with CGS §§ 22a-506, 7-249, 7-255 and other applicable state laws. Such assessments and charges will be designed to recover, to the extent lawfully possible, the costs of construction and operation of the System and to reimburse any general funds of the Towns used in such construction and operation. It is anticipated that the BLRWPCA, in addition to pledging its full faith and credit, shall pledge its revenue derived from the maintenance and operation of its wastewater system to secure the punctual payment of all principal and interest on any 2003 Study Construction Phase Bonds issued by the BLRWPCA in connection with the 2003 Study Construction Phase of the Regional Sewerage System.
Before the Regional Sewerage System becomes operational, the BLRWPCA will lack the legal authority to levy such assessments and charges and, therefore, must rely on other revenue sources to fund the planning, design, construction and preliminary operation of the System and the administrative operations of the BLRWPCA. Such sources may include grants, loans, advances of Town funds and proceeds of the issuance of the Bonds. It is contemplated that costs of the BLRWPCA, to the extent not funded from other sources, will be apportioned between the Towns.
It is anticipated that in order for the BLRWPCA to finance the design, construction and other costs of the 2003 Study Construction Phase of the Regional Sewerage System through the issuance of the 2003 Study Construction Phase Bonds, the payment of principal and interest on the 2003 Study Construction Phase Bonds will need to be guaranteed by the Towns, such guarantee to constitute a pledge of the Towns’ full faith and credit, as authorized by CGS § 22a-509(b). It will be to the ultimate benefit of the Towns that the BLRWPCA be enabled to secure such financing and, therefore, it is essential that the Towns agree to provide such financial security for the obligations to be incurred by the BLRWPCA.
This Financing Ordinance is intended to further the goals and objectives of the Enacting Ordinance by providing additional mechanisms and procedures in connection with funding the design and construction of the Regional Sewerage System, for aid and cooperation in the planning, undertaking, construction and operation of the Regional Sewerage System and for the administrative and operational costs of the BLRWPCA.
III. FINANCING AND BONDING OBLIGATIONS
A. Section I of the Enacting Ordinance, “DEFINITIONS” is amended by:
(1) Changing the defined term “Initial Phase” to “2003 Study Construction Phase”.
(2) Adding the following definitions:
a. “‘Benefited Properties’ are those properties that have the legal right to make a connection to and use the Regional Sewerage System, regardless of whether such connection has actually been made for such properties.”
b. “‘Wastewater Flow Percentage’ shall mean the percentage of the total, average daily wastewater flow to the Regional Sewerage System that would originate from a particular Town if all Benefited Properties within that Town were connected to the System. For the purposes of this calculation, each residential dwelling unit shall be presumed to supply an average of 250 gallons of wastewater per day to the System, regardless of actual flows. Average daily flows from other uses shall be estimated by the users; provided, that the Directors appointed to the BLRWPCA by either Town may require such user to install a flow meter to verify the flows.”
B. Section VIII of the Enacting Ordinance, “CAPITAL IMPROVEMENTS” is amended by:
(1) Amending the title of the Section to read: “ASSIGNMENT OF CAPITAL AND NON-CAPITAL COSTS TO TOWNS”.
(2) Amending the title and text of sub-Section A thereof to read as follows:
“A. Proportional Assignment of Capital Costs. The aggregate cost of all capital improvements, to the extent not defrayed from other sources, shall be proportionally assigned to the Towns in accordance with the proportion of benefit that each Town receives from such capital improvements. For purposes of the 2003 Study Construction Phase of the Regional Sewerage System, the proportion of cost to be borne by each Town shall be determined by each Town’s respective Wastewater Flow Percentage. The Wastewater Flow Percentages, in turn, will be estimated on the basis of the properties and uses that will be connected to, or would be benefited by, the Regional Sewerage System upon completion of the 2003 Study Construction Phase of the Regional Sewerage System as set out in the report entitled “Bolton Lakes Wastewater Management Study, Towns of Vernon & Bolton, Connecticut, January 22, 2003, Revised May 2003", by Fuss & O'Neill, Inc., as that report may be amended prior to the beginning of such construction and approved by a majority of the Directors of the BLRWPCA appointed by each Town.
(3) Amending the title and text of sub-Section B thereof to read as follows:
“B. Method of Determination of Proportional Assignment of Capital Costs. The BLRWPCA shall have the power to determine the Benefited Properties and Wastewater Flow Percentages available to each Town from any capital improvements that are made after completion of the 2003 Study Construction Phase. However, no such determination may be made except upon the approval of a majority of the Directors appointed by each Town. If the BLRWPCA cannot make such a determination, it shall hire or appoint a qualified engineering professional or firm to determine the proper proportions, and such determination will be binding upon the BLRWPCA.”
(4) Adding sub-Section C thereto, to read as follows:
“C. Proportional Assignment of Non-Capital Expenses. The non-capital costs of the operation and administration of the BLRWPCA, including without limitation debt service payments with respect to borrowings by the BLRWPCA, to the extent not defrayed from other sources: (1) prior to the initial proportional assignment of capital costs pursuant to sub-Sections A and B above, shall be allocated 71% to Bolton and 29% to Vernon; and (2) following the initial proportional assignment of capital costs pursuant to sub-Sections A and B above, shall be allocated between the Towns on the basis of the proportional assignments of capital costs pursuant to sub-Sections A and B above for all then existing capital improvements of the BLRWPCA.”
C. (1) Approval of the Entrance into Agreements by Towns in Connection With the 2003 Study Construction Phase Bonds. In accordance with the provisions of CGS § 22a-509(b), Bolton and Vernon are hereby each authorized to enter into one or more agreements with the BLRWPCA, for such periods and containing such terms and conditions as the authorized officials of each Town, as set out in this Section C, shall determine to be necessary or convenient to aid and cooperate in the financing by the BLRWPCA of the 2003 Study Construction Phase through the issuance of the 2003 Study Construction Phase Bonds, including, but not limited to, the guarantee by such Town of the punctual payment of its proportionate share of the principal and interest on the 2003 Study Construction Phase Bonds and the pledge of the full faith and credit of such Town to the payment thereof, as further described below.
(2) Obligation to Guarantee 2003 Study Construction Phase Bonds. The adoption of this Financing Ordinance by both Towns shall constitute the specific concurrence of each Town to enter into one or more agreements to guarantee the punctual payment of its proportionate share, as determined in accordance with sub-Section (2)(a) below, of all principal and interest on any 2003 Study Construction Phase Bonds issued by the BLRWPCA in connection with the 2003 Study Construction Phase of the Regional Sewerage System and such Town’s pledge of its full faith and credit to the payment thereof in accordance with the following terms and conditions:
(a) Guarantee Obligation to be Proportional. The proportion of guarantee obligations of each Town shall be the same as the proportion assigned to each Town for the cost of capital improvements for the 2003 Study Construction Phase of the Regional Sewerage System pursuant to Section VIII.A of the Enacting Ordinance, as amended hereby.
(b) Nature of Guarantee and Pledge. Each Town shall pledge to and agree with the owners of the 2003 Study Construction Phase Bonds, and may pledge to and agree with those persons who may enter into contracts with the BLRWPCA, pursuant to the provisions of sections CGS §§ 22a-500 to 22a-519, inclusive, that it will not limit or alter the rights vested in the bondowners, the BLRWPCA or, if applicable, any contracting party pursuant to such guarantee agreement until the 2003 Study Construction Phase Bonds, together with the interest thereon are fully met and discharged and, if applicable, such contracts are fully performed on the part of the BLRWPCA, provided that such limitation or alteration may occur if and when adequate provision shall be made by law for the protection of the owners of the 2003 Study Construction Phase Bonds or, if applicable, those entering into such contracts with the BLRWPCA. The BLRWPCA may include this pledge and undertaking of the Towns in the 2003 Study Construction Phase Bonds or such contracts. To the extent provided in such agreement or agreements, the obligations of each Town thereunder shall be obligatory upon the Town and the inhabitants and property thereof.
(c) Annual Appropriations. In each year that 2003 Study Construction Phase Bonds are outstanding, each Town shall appropriate an amount of money which shall be sufficient to meet the Town’s guarantee obligations in connection with such 2003 Study Construction Phase Bonds, and shall have available on or before the date or dates on which any payment shall be due on the 2003 Study Construction Phase Bonds, an amount of money which, together with other revenues available for such purpose, shall be sufficient to meet the Town’s guarantee obligations in connection with such 2003 Study Construction Phase Bonds.
(3) Authorized Officials. The First Selectman and the Treasurer or Deputy Treasurer of Bolton, and the Mayor, Town Administrator and Finance Director, or any two of them, of Vernon, are hereby authorized to enter into any agreements and to execute any documents on behalf of such official’s respective Town which are necessary or desirable to carry out the provisions of this Section C, including without limitation the guarantee agreements with respect to the 2003 Study Construction Phase Bonds contemplated by and approved in this Section C; and such officials are each individually authorized to take all other action which is necessary or desirable to carry out the provisions of this Financing Ordinance.
D. Approval of the Entrance into Agreements by Towns in Connection With Certain Other Matters. In accordance with the provisions of CGS § 22a-509(b), Bolton and Vernon are hereby each authorized to enter into one or more agreements with the BLRWPCA, for such periods and containing such terms and conditions as, with respect to Bolton, its Board of Selectmen, and with respect to Vernon, its Town Council, shall determine to be necessary or convenient to aid and cooperate in the planning, undertaking, construction or operation of the System.
IV. SEVERABILITY
If any section, paragraph, subdivision, clause, or provision of this Ordinance is adjudged invalid, such adjudication shall apply only to the section, paragraph, subdivision, clause, or provision so adjudged, and the remainder of this Ordinance shall be deemed valid and effective.
V. EFFECTIVE DATE
This Financing Ordinance shall take effect on the later to occur of the following: (1) approval of this ordinance by the Board of Selectmen of Bolton and by the eligible voters of Bolton acting at referendum; or (2) approval of this ordinance by the Town Council of Vernon and by the eligible voters of Vernon acting at referendum.
Public Hearing date:
Adoption Dates:
Publication Date:
Effective Date: