
ENROLLED
H. B. 2877
(By Delegates Staton, Amores,
Trump, Fletcher and Browning)
[Passed April 14, 2001; in effect ninety days from passage.]
AN ACT to amend and reenact sections
one, five, eighteen, and
twenty-one, article sixteen, chapter eight of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended; to amend and reenact sections one-a, one-b, two,
three, five, six, seven, eight, nine, ten, eleven, twelve,
thirteen, fifteen, sixteen, seventeen and eighteen, article
twenty of said chapter; to further amend said article by
adding thereto two new sections, designated sections one-c
and eleven-a; to amend and reenact sections one, two, three,
nine, sixteen, seventeen, eighteen, nineteen, twenty-two,
twenty-two-f, twenty-two-g and twenty-three-a, article
thirteen, chapter sixteen of said code; all relating to
establishment of stormwater systems within municipalities;
municipal public works, stormwater systems and associated stormwater management programs, rates, fees and charges for
stormwater services, termination of water service for
combined systems for nonpayment of stormwater services,
governmental entities subject to established rates, fees and
charges for stormwater services, extraterritorial
jurisdiction of municipalities, combined waterworks,
sewerage and stormwater systems, acquisition thereof,
extraterritorial powers, severance of combined systems,
right of eminent domain, criteria for ordinance for combined
system, bonds, revenue payable for bonds; liens of
bondholders; power of municipalities to fix rates, fees and
charges; "sinking funds," protection and enforcement of
rights of bondholders, grants, loans and advances;
alternative method for acquisition of combined system;
acquisition and operation of stormwater works by sanitary
boards or sanitary district, powers of sanitary board
expanded to include stormwater works; rates, charges and
fees for stormwater services; exception of bonds for
stormwater works from taxation.
Be it enacted by the Legislature of West Virginia:



That sections one, five, eighteen, twenty-one, article
sixteen, chapter eight be amended and reenacted; that sections
one-a, one-b, two, three, five, six, seven, eight, nine, ten, eleven, twelve, thirteen, fifteen, sixteen, seventeen and
eighteen, article twenty of said chapter be amended and
reenacted; that said article be further amended by adding thereto
two new sections, designated sections one-c and eleven-a; and
that sections one, two, three, nine, sixteen, seventeen,
eighteen, nineteen, twenty-two, twenty-two-f, twenty-two-g and
twenty-three-a, article thirteen, chapter sixteen be amended and
reenacted; all to read as follows:








CHAPTER 8. MUNICIPAL CORPORATIONS.
ARTICLE 16. MUNICIPAL PUBLIC WORKS; REVENUE BOND FINANCING.








PART I. DEFINITIONS; AUTHORIZATION OF











MUNICIPAL PUBLIC WORKS.
§8-16-1. Definitions.



As used in this article, the following terms shall have the
following meanings unless the text clearly indicates otherwise.



(a) "Municipal public works" or "works" or "projects" means
the construction, reconstruction, establishment, acquisition,
improvement, renovation, extension, enlargement, increase,
equipment, maintenance, repair (including replacements) and
operation of jails, jail facilities, municipal buildings, police
stations, fire stations, libraries, museums, other public
buildings, incinerator plants, land fill or other garbage
disposal systems, hospitals, piers, docks, terminals, airports, drainage systems, flood control systems, stormwater systems and
associated stormwater management program, flood walls, culverts,
bridges (including approaches, causeways, viaducts, underpasses
and connecting roadways), public markets, cemeteries, motor
vehicle parking facilities (including parking lots, buildings,
ramps, curb-line parking, meters and other facilities considered
necessary, appropriate, useful, convenient or incidental to the
regulation, control and parking of motor vehicles), farms,
dormitories, apartments and other housing facilities for the
students and faculties of institutions of higher education;
facilities providing housing for the elderly, including, but not
limited to, life care facilities, congregate living facilities
and adult residential facilities, stadiums, gymnasiums, sports
arenas, auditoriums, public recreation centers, public recreation
parks, swimming pools, roller skating rinks, ice skating rinks,
tennis courts, golf courses, polo grounds, or the grading,
regrading, paving, repaving, surfacing, resurfacing, curbing,
recurbing, widening or otherwise improving of any street, avenue,
road, alley or way, or the building or renewing of sidewalks,
where works or projects will be made self-supporting, and the
cost thereof, together with the interest thereon, will be
returned within a reasonable period, not exceeding forty years,
by means of tolls, fees, rents, special assessments or charges other than taxation; and the terms shall also mean any works or
project as a whole, and all integral parts thereof, including all
necessary, appropriate, useful, convenient or incidental
appurtenances and equipment in connection with any one or more of
the above.



(b) "Stormwater systems" means a stormwater system in its
entirety or any integral part thereof used to collect and dispose
of stormwater and an associated stormwater management program.
It includes all facilities, structures and natural water courses
used for collecting and conducting stormwater to, through and
from drainage areas to the points of final outlet including, but
not limited to, any and all of the following: Inlets, conduits,
outlets, channels, ponds, drainage easements, water quality
facilities, catch basins, ditches, streams, gulches, flumes,
culverts, siphons, retention or detention basins, dams,
floodwalls, pipes, flood control systems, levies and pumping
stations. The term "stormwater systems" shall not include
highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways.



(c) "Stormwater management program" means those activities
associated with the management, operation, maintenance and
control of stormwater and stormwater systems, and shall include, but not be limited to, public education, stormwater and surface
runoff water quality improvement, mapping, planning, flood
control, inspection, enforcement and any other activities
required by state and federal law. The term "stormwater
management program" shall not include those activities associated
with the management, operation, maintenance and control of
highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways without the express agreement of
the commissioner of highways.







PART III. GENERAL POWERS AND AUTHORITY.
§8-16-5. Powers of board.
The board shall have plenary power and authority to take all
steps and proceedings, and to make and enter into all contracts
or agreements necessary, appropriate, useful, convenient or
incidental to the performance of its duties and the execution of
its powers and authority under this article: Provided, That any
contract or agreement relating to the financing, or the
construction, reconstruction, establishment, acquisition,
improvement, renovation, extension, enlargement, increase,
equipment, operation or maintenance of any such works, and any
trust indenture with respect thereto as hereafter provided for,
shall be approved by the governing body or bodies.
The board may employ engineers, architects, inspectors,
superintendents, managers, collectors, attorneys and such other
employees as in its judgment may be necessary in the execution of
its powers and duties, and may fix their compensation, all of
whom shall do such work as the board may direct. All
compensation and expenses incurred in carrying out the provisions
of this article shall be paid solely from funds provided under
the authority of this article, and the board shall not exercise
or carry out any power or authority herein given it so as to bind
said board or any municipality beyond the extent to which money
shall have been, or may be provided under the authority of this
article.
No contract or agreement with any contractor or contractors
for labor or materials, or both, exceeding in amount the sum of
ten thousand dollars shall be made without advertising for bids,
which bids shall be publicly opened and an award made to the
lowest responsible bidder, with power and authority in the board
to reject any and all bids.
After the construction, reconstruction, establishment,
acquisition, renovation or equipment of any such works, the board
shall maintain, operate, manage and control the same, and may
order and complete any improvements, extensions, enlargements,
increase or repair (including replacements) of and to the works that the board may considered expedient, if funds therefor be
available, or are made available, as provided in this article,
and shall establish rules for the use, maintenance and operation
of the works, and do all things necessary or expedient for the
successful operation thereof, and for stormwater systems and
associated stormwater management programs, those activities which
include, but are not limited to, stormwater and surface runoff
water quality improvement activities necessary to comply with all
federal and state requirements. All public ways or public works
damaged or destroyed by the board in carrying out its authority
under this article shall be restored or repaired by the board and
placed in their original condition, as nearly as practicable, if
requested so to do by proper authority, out of the funds provided
under the authority of this article.






PART VI. IMPOSITION OF RATES, FEES OR CHARGES.
§8-16-18. Rates, fees or charges for services rendered by works.
The governing body shall have plenary power and authority
and it shall be its duty, by ordinance, to establish and maintain
just and equitable rates, fees or charges for the use and
services rendered, or the improvement or protection of property,
not to include highways, road and drainage easements, and/or
stormwater facilities constructed, owned and/or operated by the
West Virginia Division of Highways, provided or afforded, by such works, to be paid by the person using the same, receiving the
services thereof, or owning the property improved or protected
thereby, and may readjust rates, fees or charges from time to
time.
When two or more municipalities take joint action under the
provisions of this article, the rates, fees or charges shall be
established by each participating municipality, with the
concurrence of the other participating municipality or
municipalities as to the amount of the rates, fees or charges,
and such rates, fees or charges may be the same with respect to
each municipality, or they may be different.
Rates, fees or charges heretofore or hereafter established
and maintained for the improvement or protection of property, not
to include highways, road and drainage easements, and/or
stormwater facilities constructed, owned and/or operated by the
West Virginia Division of Highways, provided or afforded by a
municipal flood control system or flood walls, to be paid by the
person owning the property improved or protected thereby, shall
be collectible and enforceable from the time provided in any such
ordinance, any provision of this or any other law to the contrary
notwithstanding, if, at such time, such works, though not yet
fully completed, are nearing completion and the governing body is reasonably assured that the works will be completed and placed in
operation without unreasonable delay.
All rates, fees or charges shall be sufficient in each year
for the payment of the proper and reasonable expenses of repair
(including replacements), maintenance and operation of the works,
and for the payment of the sums herein required to be paid into
the sinking fund.Revenues collected pursuant to the provisions of
this section are considered the revenues of the works. No such
rates, fees or charges shall be established until after a public
hearing at which all the users of the works and owners of the
property served, or to be served thereby, and others interested,
shall have an opportunity to be heard concerning the proposed
rates, fees or charges.
After introduction of the proposed ordinance fixing the
rates, fees or charges and before the same is finally adopted,
notice of such hearing, setting forth the proposed schedule of
such rates, fees or charges, shall be given by publishing the
same as a Class I-0 legal advertisement in compliance with the
provisions of article three, chapter fifty-nine of this code, and
the publication area for the publication shall be such
municipality or each such municipality, as the case may be. Said
notice shall be published at least five days before the date
fixed in such notice for the hearing, which hearing may be adjourned from time to time. No other or further notice to
parties in interest shall be required.
After such hearing the ordinance establishing rates, fees or
charges, either as originally proposed or introduced, or as
modified and amended, shall be adopted and put into effect. A
copy of the schedule of such rates, fees and charges so
established shall be kept on file in the office of the board
having charge of such works, and also in the office of the
governing body or bodies, and shall be open to inspection by all
parties in interest.
The rates, fees or charges so established for any class of
users or property served shall be extended to cover any
additional class of users or property thereafter served which
fall within the same class, without the necessity of any hearing
or notice. Any change or adjustment of rates, fees or charges
may be made in the same manner as such rates, fees or charges
were originally established as provided in this section. The
aggregate of the rates, fees or charges shall always be
sufficient for the expenses of repair (including replacements),
maintenance and operation, and for the sinking fund payments.
If any rate, fee or charge so established shall not be paid
within thirty days after the same is due, the amount thereof,
together with a penalty of ten percent and reasonable attorney's
fees, may be recovered by the board in a civil action in the name of the municipality or municipalities, and in the case of rates,
fees or charges due for services rendered, such rates, fees or
charges, if not paid when due, may, if the governing body so
provide in the ordinance provided for under section seven of this
article, constitute a lien upon the premises served by such
works, which lien may be foreclosed against such lot, parcel of
land or building so served, in accordance with the laws relating
to the foreclosure of liens on real property. Upon failure of
any person receiving any such service to pay for the same when
due, the board may discontinue such service without notice.



PART VIII. RATES, FEES OR CHARGES FOR MUNICIPALITIES.
§8-16-21. Governmental entities to pay established rates, fees
or charges for services rendered to it or them.
(a)
The municipality or municipalities issuing such bonds
shall be subject to the same rates, fees or charges established
as provided in this article, or to rates, fees or charges
established in harmony therewith, for service rendered to the
municipality or municipalities and shall pay such rates, fees or
charges, when due, from corporate funds, and the same shall be
considered to be a part of the revenues of the works as defined
in this article
, and may be applied as provided in this article
,
for the application of such revenue.
(b) The municipality or municipalities and any county, state
and federal government served by the services of the stormwater system shall be subject to the same rates, fees or charges
established as provided in this article for stormwater services,
or to rates, fees or charges established in harmony therewith,
for service rendered to the governmental entity and shall pay
such rates, fees or charges, when due, from corporate funds, and
the same is considered to be a part of the revenues of the works
as defined in this article, and may be applied as provided in
this article, for the application of such revenue. However, no
rates, fees or charges for stormwater services may be assessed
against highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways without the express agreement of
the commissioner of highways
.
ARTICLE 20. COMBINED SYSTEMS.
§8-20-1a. Acquisition and operation of combined systems;
extension beyond corporate limits; definitions.



(a) Any municipality may acquire, construct, establish and
equip and thereafter repair, maintain and operate a combined
waterworks, sewerage and stormwater system either wholly within
or partly within and partly without the corporate limits thereof
under the provisions of this article, and any municipality owning
and operating a waterworks and sewerage system, but not a
stormwater system, may acquire, construct, establish and equip
the stormwater system which it does not then own and operate, and such municipality may provide by ordinance that when such
stormwater system shall have been acquired, constructed,
established and equipped, the same shall thereafter be owned,
repaired, maintained and operated as a combined undertaking under
the provisions of this article, and any municipality already
owning and operating an existing waterworks system, sewerage
system, and stormwater system, may by ordinance combine the same
into a single undertaking under the provisions of this article.
However, no municipality may acquire, construct, establish and
equip or thereafter repair, maintain and operate a combined
waterworks, sewerage and stormwater system which includes
highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways without the express agreement of
the commissioner of highways.
(b) Any municipality which has combined its waterworks, sewerage
system and stormwater systems under the provisions of this
article, or pursuant to the provisions of any other law, may
hereafter construct extensions, additions, betterments and
improvements to any of the systems, any combination thereof, or
all of the waterworks, sewerage and stormwater systems of said
combined waterworks, sewerage and stormwater system, and may
finance the acquisition, construction, establishment and
equipment thereof, or the construction or extensions, additions, betterments and improvements thereof by the issuance of revenue
bonds under the provisions of this article.
(c) Notwithstanding the provisions of any other law or charter to
the contrary, any such municipality may serve and supply the area
included within twenty miles outside its corporate limits with
either the water, sewer or stormwater services, any combination
of such services or all such services, of its combined
waterworks, sewerage and stormwater system; provided that such
water, sewer or stormwater services and facilities shall not be
served or supplied within the corporate limits of any
municipality without the consent of the governing body of such
municipality: Provided, That for stormwater systems, within the
twenty miles beyond the municipality's
corporate limits the only
areas the municipality may serve and supply shall be those areas
from which stormwater affects or drains into the municipality.
(d) 
As used in this article, the following terms shall have the
following meanings unless the text clearly indicates otherwise.
(1) "Stormwater system" means a stormwater system in its entirety
or any integral part thereof used to collect and dispose of
stormwater and an associated stormwater management program. It
includes all facilities, structures and natural water courses
used for collecting and conducting stormwater to, through and
from drainage areas to the points of final outlet, including, but
not limited to, any and all of the following: Inlets, conduits, outlets, channels, ponds, drainage ways, easements, water quality
facilities, catch basins, ditches, streams, gulches, flumes,
culverts, siphons, retention or detention basins, dams,
floodwalls, pipes, flood control systems, levies and pumping
stations. The term "stormwater system" shall not include
highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways.
(2) "Combined waterworks, sewerage and stormwater system" means a
waterworks, sewerage and stormwater system which a municipality
determines by ordinance to operate in combination.
(3) "Combined system" means either a combined waterworks,
sewerage and stormwater system, or a combined waterworks and
sewerage system.
(4) "Stormwater management program" means those activities
associated with the management, operation and maintenance and
control of stormwater and stormwater systems, and shall include
and not be limited to public education, stormwater and surface
runoff water quality improvement, mapping, planning, flood
control, inspection, enforcement and any other activities
required by state and federal law. The term "stormwater
management program" shall not include those activities associated
with the management, operation, maintenance and control of
highways, road and drainage easements, and/or stormwater facilities constructed, owned and/or operated by the West
Virginia Division of Highways without the express agreement of
the commissioner of highways
.
§8-20-1b. Cooperation with other governmental units.
In carrying out any lawful purpose prescribed by this
article, any municipality may, in the exercise of its powers,
duties and responsibilities, cooperate or join with the state of
West Virginia or any political subdivision, agency, board,
commission, office or department thereof, however designated, or
with the United States of America or any agency or department
thereof.
§8-20-1c. Severance of combined system.
Any municipality which has combined its waterworks and
sewerage systems or waterworks, sewerage and stormwater systems,
under the provisions of this article, or pursuant to provisions
of any other law, may hereafter sever said combined system if the
following conditions are met:
(a) An ordinance is enacted by the governing body of the
municipality severing the combined system into separate systems.
(b) If revenue bonds or notes or other obligations with a
lien on or pledge of the revenues of said combined system, or any
part thereof, are outstanding, then the municipality must provide
in said ordinance that the severance of the combined system is
not effective until all such outstanding revenue bonds or notes or other obligations with a lien on or pledge of the revenues of
the system, or any part thereof, are paid and the method for
paying said outstanding revenue bonds or notes or other
obligations. For the purposes of this section, said municipality
may provide for payment of said outstanding revenue bonds or
notes or other obligations by:
(1) Depositing moneys and funds with the West Virginia
municipal bond commission or in escrow with a corporate trustee,
which may be a trust company or bank having powers of a trust
company within or without the state of West Virginia selected by
the issuer to pay interest when due and to pay principal when
due, whether at maturity or earlier redemption;
(2) Depositing securities with the municipal bond commission
or said escrow trustee, the principal of and earnings on which
will provide moneys sufficient to pay interest when due and to
pay principal when due, whether at maturity or earlier
redemption; or
(3) Depositing with the municipal bond commission or said
escrow trustee any combination of the foregoing sufficient to pay
interest when due and to pay principal when due, whether at
maturity or earlier redemption.
(c) If the combined system is under the supervision and
control of a separate committee, board or commission, then the
governing body of the municipality must provide for the dissolution of the committee, board or commission, and the
creation of other committees, boards or commissions as may be
required by law.
§8-20-2. Right of eminent domain; limitations.
For the purpose of acquiring, constructing, establishing or
extending any system within a combined system, or a combined
system, or for the purpose of constructing any additions,
betterments or improvements to any system within a combined
system, or a combined system, or for the purpose of acquiring any
property necessary, appropriate, useful, convenient or incidental
for or to any system within a combined system, or combined
system, under the provisions of this article, the municipality
shall have the right of eminent domain as provided in chapter
fifty-four of this code: Provided, That such right of eminent
domain for the acquisition of a complete privately owned
waterworks system may not be exercised without prior approval of
the public service commission, and in no event shall any
municipality construct, establish or extend beyond the corporate
limits of the municipality a municipal waterworks system or a
combined system under the provisions of this article to supply
service in competition with an existing privately or municipally
owned waterworks system or combined system in the municipality or
within the proposed extension of the system, unless, except in
the case of a stormwater system, a certificate of public convenience and necessity therefor shall have been issued by the
public service commission: Provided, however, that the power of
eminent domain provided in this section shall not extend to
highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways without the express agreement of
the commissioner of highways.
§8-20-3. Ordinance describing project; contents.
The governing body of any municipality availing itself of
the provisions of this article shall adopt an ordinance
describing in a general way the contemplated project. If it is
intended to include in the combined system any existing
waterworks system or any existing sewerage system, or both, or if
applicable, any existing stormwater system, or any of them, or
all of them, the ordinance shall provide that it or they be so
included in the combined system and shall describe in a general
way such existing waterworks or sewerage system or both, or, if
applicable, any existing stormwater system, or any of them, or
all of them, to be included in the combined system. The
ordinance shall state the means provided for refunding any
obligations unpaid and outstanding payable solely from the
revenues of any such waterworks or sewerage system, or both, or
if applicable, any existing stormwater system, or any of them, or all of them. The ordinance shall determine the period of
usefulness of the contemplated project.
If it is intended to acquire, construct, establish and equip
a combined system or any part thereof, or to construct
extensions, additions, betterments and improvements to either the
waterworks system or the sewerage system of the combined system,
or both, or if applicable, any existing stormwater system, or any
of them, or all of them, the ordinance shall describe in a
general way the works or property or system to be acquired,
constructed, established or equipped or the extensions,
additions, betterments and improvements to be constructed.
The ordinance shall fix the amount of revenue bonds proposed
to be issued, the interest rate or rates, and any other details
in connection with the bonds considered advisable. The ordinance
may state that the bonds, or such ones thereof as may be
specified, shall, to the extent and in the manner prescribed, be
subordinated and be junior in standing, with respect to principal
and interest and the security thereof, to such other bonds as are
designated in the ordinance.
§8-20-5. Amount, negotiability and execution of bonds; refund of
outstanding obligations or securities by sale or exchange of
bonds.



For the purpose of defraying the cost of acquisition,
construction, establishment or equipment of any system within a combined system, or a combined system, and for the purpose of
paying the cost of constructing any extensions, additions,
betterments or improvements to any of the systems of said
combined system, or all of them, any such municipality may issue
revenue bonds under the provisions of this article.
All such bonds may be authorized, issued and sold pursuant to
ordinance in installments at different times or an entire issue
or series may be sold at one time. Such bonds shall bear
interest at a rate not to exceed twelve percent per annum,
payable at such times, and shall mature within the period of
usefulness of the project involved, to be determined by the
governing body and in any event within a period of not more than
forty years. The bonds may be in denomination or denominations,
may be in such form, either coupon or registered, may carry
registration and conversion privileges, may be executed in such
manner, may be payable in such medium of payment, at such place
or places, may be subject to terms of redemption, with or without
a premium, may be declared to become due before the maturity date
thereof, may provide for the replacement of mutilated, destroyed,
stolen or lost bonds, may be authenticated in such manner and
upon compliance with such conditions, and may contain other terms
and covenants, as may be provided by ordinance of the governing
body of the municipality. Notwithstanding the form or tenor
thereof, and in the absence of an express recital on the face thereof that the bond is nonnegotiable, all bonds shall at all
times be, and shall be treated as, negotiable instruments for all
purposes. The bonds and the interest thereon, together with all
properties and facilities of the municipality owned or used in
connection with the combined system, and all the moneys, revenues
and other income of such municipality derived from the combined
system shall be exempt from all taxation by this state or any
county, municipality, political subdivision or agency thereof.
Bonds may be sold in such manner as the governing body shall
determine.
If any bonds shall be issued to bear interest at a rate of twelve
percent per annum, the price at which they may be sold shall be
such that the interest cost to the municipality of the proceeds
of the bonds may not exceed thirteen percent per annum computed
to maturity according to the standard table of bond values.
If the governing body of the municipality determines to sell any
revenue bonds of such combined system for refunding purposes, the
proceeds of the bonds shall be deposited at the place of payment
of the bonds, obligations or securities being refunded thereby.
In case any officer whose signature appears on the bonds or
coupons attached thereto shall cease to be such officer before
the delivery of the bonds to the purchaser, such signature shall
nevertheless be valid and sufficient for all purposes, with the
same effect as if he or she had remained in office until the delivery of the bonds. All signatures on the bonds or coupons
and the corporate seal may be mechanically reproduced if
authorized in the ordinance authorizing the issuance of the
bonds. The bonds shall have all the qualities of negotiable
instruments under the laws of this state.
Whenever a waterworks and sewerage system or stormwater system,
if applicable, is included in a combined system under the
provisions of this article and there are unpaid and outstanding
revenue bonds or any other obligations or securities previously
issued which are payable solely from the revenues of the
waterworks or the sewerage system or stormwater system, if
applicable, or any part thereof, such outstanding bonds,
obligations or securities may be refunded by the issuance and
sale or exchange therefor of revenue bonds to be issued under the
provisions of this article.
Whenever any outstanding bonds, obligations or securities
previously issued which are payable solely from the revenues of
any waterworks or sewerage system, or stormwater system, if
applicable, included in a combined system under the provisions of
this article are refunded and the refunding is to be accomplished
by exchange, such outstanding bonds, obligations or securities
shall be surrendered and exchanged for revenue bonds of such
combined system of a total principal amount which shall not be
more and may be less than the principal amount of the bonds, obligations or securities surrendered and exchanged plus the
interest to accrue thereon to the date of surrender and exchange,
and if the refunding is to be accomplished through the sale of
revenue bonds of such combined system the total principal amount
of such revenue bonds which may be sold for refunding purposes
shall not exceed the principal amount of the bonds, obligations
or securities being refunded plus the interest to accrue thereon
to the retirement date or the next succeeding interest payment
date, whichever date may be earlier.
Provision may be made that each bond to be exchanged for
refunding bonds shall be kept intact and shall not be canceled or
destroyed until the refunding bonds, and interest thereon, have
been finally paid and discharged, but each bond shall be stamped
with a legend to the effect that the same has been refunded
pursuant to the provisions of this article.
§8-20-6. Bonds payable solely from revenues; not to constitute
municipal indebtedness.



Bonds issued under the provisions of this article shall be
payable solely from the revenues derived from the combined
system, and the bonds may not in any event constitute an
indebtedness of such municipality within the meaning of any
constitutional or statutory provision or limitation and it shall
be plainly stated on the face of each bond that the same has been
issued under the provisions of this article, and that it does not constitute an indebtedness of the municipality within any
constitutional or statutory provision or limitation. The
ordinance authorizing the issuance of the bonds may contain such
covenants and restrictions upon the issuance of additional
revenue bonds thereafter as may be considered necessary or
advisable for the assurance of payment of the bonds thereby
authorized and as may thereafter be issued.
§8-20-7. Lien of bondholders.
There shall be and there is hereby created and granted a
statutory mortgage lien upon such combined system which shall
exist in favor of the holder of bonds hereby authorized to be
issued, and each of them, and to and in favor of the holder of
the coupons attached to said bonds, and such combined system
shall remain subject to such statutory mortgage lien until
payment in full of the principal of and interest upon said bonds.
However, no lien may attach to any portion of any highways, road
or drainage easements or stormwater facilities constructed, owned
or operated by the West Virginia Division of Highways.
Any municipality in acquiring an existing waterworks system
may provide that payment therefor shall be made by issuing
revenue bonds and delivering the same at such prices as may be
agreed upon within the limitations prescribed in section five
hereof. Any revenue bonds so issued in payment for an existing
waterworks system shall for all purposes be regarded as partaking of the nature of and as being secured by a purchase money
mortgage upon the property so acquired; and the holders thereof
shall have, in addition to any other remedies and rights
prescribed by this article, remedies and rights as may now or
hereafter exist in law in the case of purchase money mortgages.
§8-20-8. Covenants with bondholders.
Any ordinance authorizing the issuance of bonds hereunder,
or any trust indenture with any banking institution or trust
company, within or without the state, for the security of said
bonds, which any municipality is hereby empowered and authorized
to enter into and execute, may contain covenants with the holders
of the bonds as to:
(a) The purpose or purposes to which the proceeds of sale of
bonds or the revenues derived from said combined system may be
applied and the securing, use and disposition thereof, including,
if considered desirable, the appointment of a trustee or
depository for any of the funds;
(b) The pledging of all or any part of the revenues derived
from the ownership, control or operation of such combined system,
including any part thereof heretofore or hereafter acquired,
constructed, established, extended, equipped, added to, bettered
or improved or derived from any other sources, to the payment of
the principal of or interest thereon of bonds issued hereunder and for reserve or other funds as may be considered necessary or
desirable;
(c) The fixing, establishing and collecting of rates, fees
or charges for the use of the services and facilities of the
combined system, including the parts thereof heretofore or
hereafter acquired, constructed, established, extended, equipped,
added to, bettered or improved and the revision of same from time
to time, as will always provide revenues at least sufficient to
provide for all expenses of repair, maintenance and operation of
such combined system, the payment of the principal of and
interest upon all bonds or other obligations payable from the
revenues of such combined system, and all reserve and other funds
required by the terms of the ordinance authorizing the issuance
of bonds;
(d) The transfer from the general funds of the municipality
to the account or accounts of the combined system of an amount
equal to the cost of furnishing the municipality or any of its
departments, boards or agencies with the services and facilities
of such combined system;
(e) Limitations or restrictions upon the issuance of
additional bonds or other obligations payable from the revenues
of such combined system, and the rank or priority, as to lien and
source and security for payment from the revenues of such
combined system, between bonds payable from the revenues;
(f) The manner and terms upon which all bonds and other
obligations issued hereunder may be declared immediately due and
payable upon the happening of a default in the payment of the
principal of or interest thereon, or in the performance of any
covenant or agreement with bondholders, and the manner and terms
upon which defaults may be declared cured and the acceleration of
the maturity of the bonds rescinded and repealed;
(g) Budgets for the annual repair, maintenance and operation
of such combined system and restrictions and limitations upon
expenditures for the purposes, and the manner of adoption,
modification, repeal or amendment thereof, including the approval
of the budgets by consulting engineers designated by holders of
bonds issued hereunder;
(h) The amounts of insurance to be maintained upon the
combined system, or any part thereof, and the use and disposition
of the proceeds of any insurance; and
(i) The keeping of books of account, relating to such
undertaking and the audit and inspection thereof, and the
furnishing to the holders of bonds issued hereunder or their
representatives, reports prepared, certified or approved by
accountants designated or approved by the holders of bonds issued
hereunder.
Any ordinance or trust indenture may also contain other
additional covenants as shall be considered necessary or desirable for the security of the holders of bonds issued under
the provisions of this article, notwithstanding that other
covenants are not expressly enumerated above, it being the
intention hereof to grant to municipalities plenary power and
authority to make any and all covenants or agreements necessary
in order to secure greater marketability for bonds issued
hereunder as fully and to the same extent as covenants or
agreements could be made by a private corporation rendering
similar services and facilities and to grant to municipalities
full and complete power and authority to enter into any
contracts, covenants or agreements with holders of bonds issued
hereunder not inconsistent with the constitution of this state.
§8-20-9. Operating contract.
Any municipality may enter into contracts or agreements with
any persons for: (1) The repair, maintenance and operation and
management of the facilities and properties of the combined
system, or any part thereof; or (2) the collection and
disbursement of the income and revenues thereof, or for both (1)
and (2), for the period of time and under terms and conditions as
shall be agreed upon between the municipality and such persons.
Any municipality shall have plenary power and authority to
provide in the ordinance authorizing the issuance of bonds
hereunder, or in any trust indenture securing the bonds, that the
contracts or agreements shall be valid and binding upon the municipality as long as any of the bonds, or interest thereon, is
outstanding and unpaid.
§8-20-10. Power and authority of municipality to enact
ordinances and make rules and regulations and fix rates,
fees or charges; change in rates, fees or charges; failure
to cure delinquency; delinquent rates, fees or charges as
liens; civil action for recovery thereof; deferral of filing
fees and costs in magistrate court action; limitations with
respect to foreclosure.



(a) The governing body of any municipality availing itself
of the provisions of this article shall have plenary power and
authority to make, enact and enforce all needful rules and
regulations for the repair, maintenance and operation and
management of the combined system of such municipality and for
the use thereof, and shall also have plenary power and authority
to make, enact and enforce all needful rules and regulations and
ordinances for the care and protection of any such system, which
may be conducive to the preservation of the public health,
comfort and convenience and to rendering the water supply of such
municipality pure, the sewerage harmless insofar as it is
reasonably possible so to do, and if applicable properly
collecting and controlling the stormwater as is reasonably
possible so to do: Provided, That no municipality may make, enact
or enforce any rule, regulation or ordinance regulating any highways, road or drainage easements or stormwater facilities
constructed, owned or operated by the West Virginia Division of
Highways except in accordance with chapter twenty-nine-a of this
code.



Any municipality shall have plenary power and authority to
charge the users for the use and service of combined system and
to establish rates, fees or charges for such purpose. Separate
rates, fees or charges may be fixed for the water and sewer
services respectively, and, if applicable, the stormwater
services, or combined rates, fees or charges for the combined
water and sewer services, and, if applicable, the stormwater
services. Such rates, fees or charges, whether separate or
combined, shall be sufficient at all times to pay the cost of
repair, maintenance and operation of the combined system, provide
an adequate reserve fund and adequate depreciation fund and pay
the principal of and interest upon all revenue bonds issued under
this article. Rates, fees or charges shall be established,
revised and maintained by ordinance and become payable as the
governing body may determine by ordinance, and such rates, fees
or charges shall be changed from time to time as needful,
consistent with the provisions of this article.



(b) Whenever any rates, fees or charges for services or
facilities furnished remain unpaid for a period of thirty days
after the same become due and payable, the user of the services and facilities provided shall be delinquent and the user shall be
held liable at law until such time as all rates, fees and charges
are fully paid.



(c) All rates, fees or charges for water service, sewer
service, and, if applicable, stormwater service, whenever
delinquent, as provided by ordinance of the municipality, shall
be liens of equal dignity, rank and priority with the lien on
such premises of state, county, school and municipal taxes for
the amount thereof upon the real property served, and the
municipality shall have plenary power and authority from time to
time to enforce such lien in a civil action to recover the money
due for services rendered plus court fees and costs and a
reasonable attorney's fee: Provided, That an owner of real
property may not be held liable for the delinquent rates, fees or
charges for services or facilities of a tenant, nor shall any
lien attach to real property for the reason of delinquent rates,
fees or charges for services or facilities of a tenant of the
real property, unless the owner has contracted directly with the
municipality to purchase such services or facilities.



(d) Municipalities are hereby granted a deferral of filing
fees or other fees and costs incidental to the bringing and
maintenance of an action in magistrate court for the collection
of the delinquent rates and charges. If the municipality
collects the delinquent account, plus fees and costs, from its customer or other responsible party, the municipality shall pay
to the magistrate court the filing fees or other fees and costs
which were previously deferred.



(e) No municipality may foreclose upon the premises served
by it for delinquent rates, fees or charges for which a lien is
authorized by this section except through the bringing and
maintenance of a civil action for the purpose brought in the
circuit court of the county wherein the municipality lies. In
every such action, the court shall be required to make a finding
based upon the evidence and facts presented that the municipality
had exhausted all other remedies for the collection of debts with
respect to such delinquencies prior to the bringing of the
action. In no event shall foreclosure procedures be instituted
by any municipality or on its behalf unless the delinquency had
been in existence or continued for a period of two years from the
date of the first delinquency for which foreclosure is being
sought.
§8-20-11. Discontinuance of water service for nonpayment of
rates or charges.
Any municipality shall also have plenary power and
authority, and may covenant with the holders of any bonds issued
hereunder, to shut off and discontinue the supplying of the water
service of the combined system for the nonpayment of the rates,
fees or charges for said water service or sewer service, or both, or, if applicable, stormwater service, or any combination
thereof, or all of them.
§8-20-11a. Governmental entities subject to established rates.
The municipality and any county government, state government
and federal government served by the services of the combined
system shall be subject to the same rates, fees or charges
established in this article or to rates, fees or charges
established in harmony therewith, for service rendered to the
governmental entity, and shall pay such rates, fees or charges
when due from corporate funds and the same shall be considered to
be part of the revenue of the combined system as defined in this
article, and be applied as provided in this article, for the
application of such revenues. However, no rates, fees or charges
for combined services or stormwater services may be assessed
against highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways.
§8-20-12. Use of revenues; sinking fund.



All revenues derived from the operation of any combined
system under the provisions of this article shall be set aside as
collected and used only for the purpose of paying the cost of
repairing, maintaining and operating such system, providing an
adequate reserve fund, an adequate depreciation fund, and paying
the principal of and interest upon the revenue bonds issued by the municipality under the provisions of this article. The
ordinance pursuant to which any bonds are issued shall pledge the
revenues derived from the combined system to the purposes
aforesaid and shall definitely fix and determine the amount of
revenues which shall be necessary and set apart in a special fund
for the bond requirements. The amounts so set apart into said
special fund for the bond requirements shall be remitted to the
West Virginia municipal bond commission to be retained and paid
out by said commission consistent with the provisions of this
article and the ordinance pursuant to which the bonds have been
issued: Provided, That payments of principal of and interest on
any bonds owned by the United States of America or any agency or
department thereof may be made by the municipality directly to
the United States of America or said agency or department
thereof.
§8-20-13. System of accounts; audit.
Any municipality operating a combined system under the
provisions of this article shall set up and maintain a proper
system of accounts in accordance with the requirements of the
public service commission, showing the amount of revenues
received from the combined system and the application of the
same. At least once each year the municipality shall cause the
accounts to be properly audited, and a report of the audit shall
be open to the public for inspection at all reasonable times.
§8-20-15. Protection and enforcement of rights of bondholders,
etc.; receivership.



Any holder of any bonds issued under the provisions of this
article or of any coupons representing interest accrued thereon
may by civil action, mandamus or other proper proceeding enforce
the statutory mortgage lien created and granted in section seven
of this article, protect and enforce any and all rights granted
hereunder or under any such ordinance or trust indenture, and may
enforce and compel performance of all duties required by the
provisions of this article or by any ordinance or trust indenture
to be performed by the municipality or by the governing body or
any officer, including the making and collecting of reasonable
and sufficient rates, fees or charges for services rendered by
the combined system.



If there be default in the payment of the principal of or
interest upon any of bonds, or of both principal and interest,
any court having jurisdiction shall appoint a receiver to
administer said combined system on behalf of the municipality,
and the bondholders or trustee, or both, with power to charge and
collect rates, fees or charges sufficient to provide for the
retirement of the bonds and pay the interest thereon, and for the
payment of the repair, maintenance and operation expenses, and
the receiver shall apply the revenues in conformity with the provisions of this article and the ordinance pursuant to which
the bonds have been issued or trust indenture, or both.
§8-20-16. Grants, loans and advances.
Any municipality is hereby empowered and authorized to
accept loans or grants and procure loans or temporary advances
evidenced by notes or other negotiable instruments issued in the
manner, and subject to the privileges and limitations, set forth
with respect to bonds authorized to be issued under the
provisions of this article, for the purpose of paying part or all
of the cost of acquisition, construction, establishment,
extension or equipment of combined systems and the construction
of additions, betterments and improvements thereto, and for the
other purposes herein authorized, from any authorized agency of
the state or from the United States of America or any federal or
public agency or department of the United States or any private
agency, corporation or individual, which loans or temporary
advances, including the interest thereon, may be repaid out of
the proceeds of bonds authorized to be issued under the
provisions of this article, the revenues of the said combined
system or grants to the municipality from any agency of the state
or from the United States of America or any federal or public
agency or department of the United States or any private agency,
corporation or individual or from any combination of such sources
of payment, and to enter into the necessary contracts and agreements to carry out the purposes hereof with any agency of
the state, the United States of America or any federal or public
agency or department of the United States, or with any private
agency, corporation or individual. Any other provisions of this
article notwithstanding, interest on any loans or temporary
advances may be paid from the proceeds thereof until the maturity
of the notes or other negotiable instrument.
In no event shall any loan or temporary advance be a general
obligation of the municipality and the loans or temporary
advances, including the interest thereon, shall be paid solely
from the sources specified in this section.
§8-20-17. Additional and alternative method for constructing,
etc., and financing combined system; cumulative authority.



This article is, without reference to any other statute or
charter provision, full authority for the acquisition,
construction, establishment, extension, equipment, additions,
betterment, improvement, repair, maintenance and operation of or
to the combined system herein provided for and for the issuance
and sale of the bonds by this article authorized, and is an
additional and alternative method therefor and for the financing
thereof, and no petition, referendum or election or other or
further proceeding with respect to any undertaking or to the
issuance or sale of bonds under this article and no publication
of any resolution, ordinance, notice or proceeding relating to any undertaking or to the issuance or sale of such bonds is
required, except as prescribed by this article, any provisions of
other statutes of the state to the contrary notwithstanding:
Provided, That all functions, powers and duties of the bureau of
public health and the division of environmental protection remain
unaffected by this article: Provided, however, that no
municipality may acquire, construct, establish, extend, repair or
equip or thereafter repair, maintain and operate a combined
waterworks, sewerage or stormwater system which includes
highways, road and drainage easements, and/or stormwater
facilities constructed, owned and/or operated by the West
Virginia Division of Highways without the express agreement of
the commissioner of highways.



This article is cumulative authority for any undertaking
herein authorized, and does not repeal any existing laws with
respect thereto.
§8-20-18. Alternative procedure for acquisition, construction,
etc., of combined system.
(a) As an alternative to the procedure provided in this
article, any municipality is hereby empowered and authorized to
acquire, construct, establish, extend, equip, repair, maintain
and operate a combined system or to construct, maintain and
operate additions, betterments and improvements thereto, whether
acquired, constructed, established, extended or equipped under the provisions of this article or not, and to collect the
revenues therefrom for the services rendered thereby, through the
supervision and control of a committee, by whatever name called,
composed of all or of a portion of the governing body, or of a
board or commission appointed by the governing body, as may be
provided by the governing body, and if such alternative is
followed, said committee, board or commission shall have and be
limited to all the powers, authority and duties granted to and
imposed upon a board as provided in article sixteen of this
chapter.
However, no municipality may acquire, construct, establish,
extend, repair or equip or thereafter repair, maintain and
operate a combined waterworks, sewerage or stormwater system,
which includes highways, road and drainage easements, and/or
stormwater facilities constructed, owned and/or operated by the
West Virginia Division of Highways without the express agreement
of the commissioner of highways.
(b) In the event that the waterworks or sewerage system or
both, or if applicable, stormwater services, are in existence
prior to the creation of the combined system, and the waterworks
or sewerage system or both, and if applicable, stormwater
services, are supervised and controlled by a committee, board or
commission, and the alternative provided for in subsection (a) of
this section is to be followed with respect to the supervision and control of the combined system, the governing body may by
ordinance, after the creation of the combined system, provide:
(1) The manner of and procedure for transferring supervision
and control from each separate committee, board or commission to
the committee, board or commission which is supervising and
controlling the combined system; or
(2) The manner of and procedure for combining each separate
committee, board or commission into one committee, board or
commission and transferring thereto supervision and control as
aforesaid.
CHAPTER 16. PUBLIC HEALTH.
ARTICLE 13. SEWAGE WORKS AND STORMWATER WORKS.
§16-13-1. Acquisition, operation, etc., of works; acquisition of
property; issuance of bonds.



(a) Any municipal corporation and/or sanitary district in
the state of West Virginia is hereby authorized and empowered to
own, acquire, construct, equip, operate and maintain within
and/or without the corporate limits of such municipal
corporation:



(1) A sewage collection system and/or a sewage treatment
plant or plants, intercepting sewers, outfall sewers, force
mains, pumping stations, ejector stations, and all other
appurtenances necessary or useful and convenient for the
collection and/or treatment, purification and disposal, in a sanitary manner, of the liquid and solid waste, sewage, night
soil and industrial waste of such municipal corporation and/or
sanitary district, including acquisition of the municipal
sewerage system resulting from the severance of a combined system
pursuant to section one-b, article twenty, chapter eight of this
code; and



(2) A stormwater collection system and control system,
including all lines, pumping stations and all other facilities
and appurtenances necessary or useful and convenient for the
collection and control of stormwater, and an associated
stormwater management program.
(b) Any municipal corporation
and/or sanitary district in the state of West Virginia is hereby
authorized and empowered
to acquire by gift, grant, purchase,
condemnation, or otherwise, all necessary lands, rights-of-way
and property therefor, within and/or without the corporate limits
of such municipal corporation and/or sanitary district, and to
issue revenue bonds to pay the cost of such works and property.



(c) Any municipality may serve and supply the facilities of
such sewerage system and a stormwater system and associated
stormwater management program within the corporate limits of the
municipality and within the area extending twenty miles beyond
the corporate limits of such municipality: Provided, That the
municipality may not serve or supply the facilities of such
sewerage system or stormwater system within the corporate limits of any other municipality without the consent of the governing
body thereof: Provided, That for stormwater systems, within the
twenty miles beyond the municipality's
corporate limits the only
areas the municipality may serve and supply shall be those areas
from which stormwater affects or drains into the municipality.



(d) No obligations shall be incurred by any municipality
and/or sanitary district in construction or acquisition except
such as is payable solely from the funds provided under the
authority of this article.



(e) No municipal corporation or sanitary district may
acquire, construct, establish, extend, repair or equip or
thereafter repair, maintain and operate a combined waterworks,
sewerage or stormwater system, which includes highways, road and
drainage easements, and/or stormwater facilities constructed,
owned and/or operated by the West Virginia Division of Highways
without the express agreement of the commissioner of highways.
§16-13-2. Sanitary board to supervise and control construction,
etc., of works; appointment of board; definitions.
(a) The construction, acquisition, improvement, equipment,
custody, operation and maintenance of any works for the
collection, treatment or disposal of sewage and, in addition, for
the collection and control of stormwater and the collection of
revenues therefrom for the service rendered thereby, shall be
under the supervision and control of a sanitary board appointed by the governing body as set forth in section eighteen of this
article.
(b)
As used in this article, the following terms shall have
the following meanings unless the text clearly indicates
otherwise.
(1) "Board" means the sanitary board as set up in section
eighteen of this article.
(2) "Governing body" means the mayor and council or other
legally constituted governing body of any municipality.
(3) (d) "Municipality" means any municipal corporation,
incorporated city, town, village or sanitary district in the
state of West Virginia.
(4) "Sewage works" means a works for the collection and/or
treatment, purification and disposal of sewage, in its entirety
or any integral part thereof.



(5) "Stormwater system" or "stormwater works" means a
stormwater system in its entirety or any integral part thereof
used to collect and dispose of stormwater and an associated
stormwater management program. It includes all facilities,
structures and natural water courses used for collecting and
conducting stormwater to, through and from drainage areas to the
points of final outlet, including, but not limited to, any and
all of the following: Inlets, conduits, corals, outlets,
channels, ponds, drainage easements, water quality facilities, catch basins, ditches, streams, gulches, flumes, culverts,
syphons, retention or detention basins, dams, floodwalls, levies,
pipes, flood control systems and pumping stations, and associated
stormwater management program. The term "stormwater system" and
"stormwater works" shall not include highways, road and drainage
easements, and/or stormwater facilities constructed, owned and/or
operated by the West Virginia Division of Highways.
(6) "Stormwater management program" means those activities
associated with the management, operation, maintenance and
control of stormwater and stormwater works, including, but not
limited to, public education, stormwater and surface runoff water
quality improvement, mapping, planning, flood control,
inspection, enforcement and any other activities required by
state and federal law: Provided, That, as used in this article,
"stormwater management program" shall not include those
activities associated with the management, operation, maintenance
and control of highways, road and drainage easements, and/or
stormwater facilities constructed, owned and/or operated by the
West Virginia Division of Highways without the express agreement
of the commissioner of highways.
(7) "Works" means sewage works and stormwater works either
separately or collectively.
§16-13-3. Powers of sanitary board; contracts; employees;
compensation thereof; extensions and improvements;
replacement of damaged public works.



The board shall have power to take all steps and proceedings
and to make and enter into all contracts or agreements necessary
or incidental to the performance of its duties and the execution
of its powers under this article: Provided, That any contract
relating to the financing of the acquisition or construction of
any works, or any trust indenture as provided for, shall be
approved by the governing body of the municipality before the
same shall be effective.
The board may employ engineers, architects, inspectors,
superintendents, managers, collectors, attorneys, and other
employees as in its judgment may be necessary in the execution of
its powers and duties, and may fix their compensation, all of
whom shall do the work as the board shall direct. All
compensation and all expenses incurred in carrying out the
provisions of this article shall be paid solely from funds
provided under the authority of this article, and the board shall
not exercise or carry out any authority or power herein given it
so as to bind said board of said municipality beyond the extent
to which money shall have been or may be provided under the
authority of this article.
No contract or agreement with any contractor or contractors for
labor and/or material, exceeding in amount the sum of ten
thousand dollars, shall be made without advertising for bids,
which bids shall be publicly opened and award made to the best
bidder, with power in the board to reject any or all bids.
After the construction, installation, and completion of the
works, or the acquisition thereof, the board shall operate,
manage and control the same and may order and complete any
extensions, betterments and improvements of and to the works that
the board may consider expedient, if funds therefor be available
or are made available as provided in this article, and shall
establish rules and regulations for the use and operation of the
works, and of other sewers, stormwater conduits, and drains
connected therewith so far as they may affect the operation of
such works, and do all things necessary or expedient for the
successful operation thereof, including, but not limited to,
those activities necessary to comply with all federal and state
requirements, including stormwater and surface runoff water
quality improvement activities.
The sanitary board may declare an emergency situation in the
event of collector line breaks or vital treatment plant equipment
failure and shall be exempted from competitive bidding
requirements and enter into direct purchase agreements or
contracts for the expenses. All public ways or public works damaged or destroyed by the board in carrying out its authority
under this article shall be restored or repaired by the board and
placed in their original condition, as nearly as practicable, if
requested so to do by proper authority, out of the funds provided
by this article.
§16-13-9. Contracts and obligations incurred to be paid for
solely by revenue bonds.



Nothing in this article contained shall be so construed as
to authorize or permit any municipality to make any contract or
to incur any obligation of any kind or nature except such as
shall be payable solely from the funds provided under this
article. Funds for the payment of the entire cost of any of the
works referred to in this article, exclusive of any portions of
the cost that may be defrayed out of any grant or contribution,
shall be provided by the issuance of revenue bonds of the
municipality, the principal and interest of which shall be
payable solely from the fund herein provided for the payment,
and the bonds may not, in any respect, be a corporate
indebtedness of the municipality, within the meaning of any
statutory or constitutional limitations thereon. All the details
of the bonds shall be determined by ordinance or ordinances of
the municipality.
§16-13-16. Rates for service; change or readjustment; hearing;
lien and recovery; discontinuance of services.



The governing body shall have power, and it shall be its
duty, by ordinance, to establish and maintain just and equitable
rates, fees or charges for the use of and the service rendered
by:



(a) Sewerage works, to be paid by the owner of each and
every lot, parcel of real estate or building that is connected
with and uses such works by or through any part of the sewerage
system of the municipality, or that in any way uses or is served
by such works; and



(b) Stormwater works, to be paid by the owner of each and
every lot, parcel of real estate, or building that in any way
uses or is served by such stormwater works or whose property is
improved or protected by the stormwater works or any user of such
stormwater works.



The governing body may change and readjust such rates, fees
or charges from time to time. However, no rates, fees or charges
for stormwater services may be assessed against highways, road
and drainage easements, and/or stormwater facilities constructed,
owned and/or operated by the West Virginia Division of Highways.



Such rates, fees or charges shall be sufficient in each year
for the payment of the proper and reasonable expense of
operation, repair, replacements and maintenance of the works and
for the payment of the sums herein required to be paid into the sinking fund. Revenues collected pursuant to this section shall
be considered the revenues of the works.



No such rates, fees or charges shall be established until
after a public hearing, at which all the users of the works and
owners of property served or to be served thereby and others
interested shall have an opportunity to be heard concerning the
proposed rates, fees or charges.



After introduction of the ordinance fixing such rates, fees
or charges, and before the same is finally enacted, notice of
such hearing, setting forth the proposed schedule of such rates,
fees or charges, shall be given by publication as a Class II-O
legal advertisement in compliance with the provisions of article
three, chapter fifty-nine of this code, and the publication area
for such publication shall be the municipality. The first
publication shall be made at least ten days before the date fixed
in such notice for the hearing.



After such hearing, which may be adjourned from time to
time, the ordinance establishing rates, fees or charges, either
as originally introduced or as modified and amended, shall be
passed and put into effect. A copy of the schedule of such rates,
fees and charges so established shall be kept on file in the
office of the board having charge of the operation of such works,
and also in the office of the clerk of the municipality, and
shall be open to inspection by all parties interested. The rates, fees or charges so established for any class of users or
property served shall be extended to cover any additional
premises thereafter served which fall within the same class,
without the necessity of any hearing or notice.



Any change or readjustment of such rates, fees or charges
may be made in the same manner as such rates, fees or charges
were originally established as hereinbefore provided: Provided,
That if such change or readjustment be made substantially pro
rata, as to all classes of service, no hearing or notice shall be
required. The aggregate of the rates, fees or charges shall
always be sufficient for such expense of operation, repair and
maintenance and for such sinking fund payments.



All rates, fees or charges, if not paid when due, shall
constitute a lien upon the premises served by such works. If any
service rate, fees or charge so established is not paid within
thirty days after the same is due, the amount thereof, together
with a penalty of ten percent, and a reasonable attorney's fee,
may be recovered by the board in a civil action in the name of
the municipality, and in connection with such action said lien
may be foreclosed against such lot, parcel of land or building,
in accordance with the laws relating thereto: Provided, however,
That where both water and sewer services are furnished by any
municipality to any premises the schedule of charges may be billed as a single amount or individually itemized and billed for
the aggregate thereof.



Whenever any rates, rentals, fees or charges for services or
facilities furnished shall remain unpaid for a period of thirty
days after the same shall become due and payable, the property
and the owner thereof, as well as the user of the services and
facilities shall be delinquent until such time as all rates, fees
and charges are fully paid.



The board collecting such rates, fees or charges shall be
obligated under reasonable rules and regulations, to shut off and
discontinue both water and sewer services to all delinquent users
of either water facilities, or sewer facilities, or both, and
shall not restore either water facilities or sewer facilities, to
any delinquent user of either until all delinquent rates, fees or
charges for both water facilities, and sewer facilities,
including reasonable interest and penalty charges, have been paid
in full.
§16-13-17. Government units subject to established rates.



The municipality and any county government, state government
and federal government served by the services of the works shall
be subject to the same fees, charges and rates established as
provided in this article, or to fees, charges and rates
established in harmony therewith, for service rendered the
municipality, county, state or federal government and shall pay such rates, fees or charges when due from corporate funds and the
same shall be considered to be a part of the revenues of the
works as herein defined, and be applied as herein provided for
the application of the revenues. However, no rates, fees or
charges for stormwater services may be assessed against highways,
road and drainage easements, and/or stormwater facilities
constructed, owned and/or operated by the West Virginia Division
of Highways.
§16-13-18. Supervision of works by sanitary board; organization
of board; qualifications, terms and compensation of
members.



The governing body shall provide by ordinance the
organization of the board, and that the custody, administration,
operation and maintenance of such works shall be under the
supervision and control of a sanitary board, created as herein
provided.



Such sanitary board shall be composed of either the mayor of
the municipality, or the city manager thereof, if said
municipality shall have a city manager form of government, and
two persons appointed by the governing body: Provided, That, in
the event of an acquisition or merger of an existing works, the
governing body may increase the membership to a maximum of four
members in addition to the mayor or city manager of the
municipality served by the board.



During the construction period, one of the members must be a
registered professional engineer. The engineer member of the
board need not be a resident of said municipality. After the
construction of the plant has been completed, the engineer member
may be succeeded by a person not an engineer. No officer or
employee of the municipality, whether holding a paid or unpaid
office, shall be eligible to appointment on said sanitary board
until at least one year after the expiration of the term of his
or her public office. The appointees shall originally be
appointed for terms of two and three years respectively, and upon
the expiration of each term and each succeeding term, an
appointment of a successor shall be made in like manner for a
term of three years. Vacancies shall be filled for an unexpired
term in the same manner as the original appointment. Each member
shall give such bond, if any, as may be required by ordinance.
The mayor or city manager shall act as chairman of the sanitary
board, which shall elect a vice chairman from its members and
shall designate a secretary and treasurer (but the secretary and
the treasurer may be one and the same), who need not be a member
or members of the sanitary board. The vice chairman, secretary
and treasurer shall hold office as such at the will of the
sanitary board.



The members of the sanitary board shall receive compensation
for their services, either as a salary or as payments for meetings attended, as the governing body may determine, and shall
be entitled to payment for their reasonable expenses incurred in
the performance of their duties. The governing body shall fix
the reasonable compensation of the secretary and treasurer in its
discretion, and shall fix the amounts of bond to be given by the
treasurer. All compensation, together with the expenses in this
section referred to, shall be paid solely from funds provided
under the authority of this article. The sanitary board shall
have power to establish bylaws, rules and regulations for its own
government.
§16-13-19. Contract with other municipalities for service of
works; powers of lessee as to rates; intercepting sewers.



Any municipality operating a sewage collecting system and/or
a sewage disposal plant or plants or stormwater works as defined
in this article, or which as herein provided has ordered the
construction or acquisition of such works (in this section called
the owner), is hereby authorized to contract with one or more
other municipal corporations or political subdivisions within the
state (in this section called the lessee), and such lessees are
hereby authorized to enter into contracts with the owners, for
the service of such works to such lessees and their inhabitants,
but only to the extent of the capacity of the works without
impairing the usefulness thereof to the owners, upon such terms
and conditions as may be fixed by the boards and approved by ordinances of the respective contracting parties: Provided, That
no contract shall be made for a period of more than forty years
or in violation of the provisions of said ordinance authorizing
bonds hereunder or in violation of the provisions of said trust
indenture.



The lessee shall by ordinance have power to establish,
change and adjust rates, fees and charges for the service
rendered therein by the works against the owners of the premises
served, in the manner hereinbefore provided for establishing,
changing and adjusting rates, fees and charges for the service
rendered in the municipality where the works are owned and
operated, and such rates, fees or charges shall be collectible
and shall be a lien as herein provided for rates, fees and
charges made by the owner.



The necessary intercepting sewers and appurtenant works for
connecting the works of the owner with the sewerage system of the
lessee shall be constructed by the owner and/or the lessee upon
such terms and conditions as may be set forth in said contract,
and the cost or that part of the cost thereof which is to be
borne by the owner may be paid as a part of the cost of the works
from the proceeds of bonds issued under this article unless
otherwise provided by said ordinance or trust indenture prior to
the issuance of the bonds. The income received by the owner
under any contract shall, if so provided in said ordinance or trust indenture, be considered to be a part of the revenues of
the works as in this article defined and be applied as herein
provided for the application of the revenues.
§16-13-22. Powers conferred in addition to existing powers;
jurisdiction outside corporate limits.
The authority herein given shall be in addition to and not
in derogation of any power existing in any municipality under any
statutory or charter provisions which it may now have or
hereafter adopt. For all purposes of this article, all municipal
corporations shall have jurisdiction for twenty miles outside the
corporate limits thereof:
Provided, That for stormwater systems,
within the twenty miles beyond the municipality's
corporate
limits the only areas the municipality may serve and supply shall
be those areas from which stormwater affects or drains into the
municipality.
The jurisdiction and authority provided by this section
does not extend to highways, road and drainage easements, and/or
stormwater facilities constructed, owned and/or operated by the
West Virginia Division of Highways.
§16-13-22f. Exemption of bonds from taxation.



Said bonds and the interest thereon, together with all
properties and facilities of said municipality owned or used in
connection with the works, and all the moneys, revenues and other
income of such municipality derived from such works shall be exempt from all taxation by the state of West Virginia or any
county, municipality, political subdivision or agency thereof.
§16-13-22g. Covenants with bondholders.
Any resolution authorizing the issuance of bonds hereunder,
or any trust indenture with any bank or trust company within or
without the state, for the security of the bonds, may contain
covenants with the holders of such bonds as to:
(a) The purpose or purposes to which the proceeds of sale of
such bonds, or the revenues derived from the sewerage system or
stormwater system, may be applied and the securing, use and
disposition thereof, including, if considered desirable, the
appointment of a trustee or depositary for any of such funds;
(b) The pledging of all or any part of the revenues derived
from the ownership, operation or control of such sewerage systems
or stormwater system, including any part thereof heretofore or
hereafter constructed or acquired or derived from any other
sources, to the payment of the principal of or interest thereon
of bonds issued hereunder and for such reserve or other funds as
may be considered necessary or desirable;
(c) The fixing, establishing and collecting of such fees,
rentals or other charges for the use of the services and
facilities of such sewerage system or stormwater system,
including the parts thereof heretofore or hereafter constructed
or acquired and the revision of same from time to time, as will always provide revenues at least sufficient to provide for all
expenses of operation, maintenance and repair of such sewerage
system or stormwater system, the payment of the principal of and
interest on all bonds or other obligations payable from the
revenues of such sewerage system or stormwater system, and all
reserve and other funds required by the terms of the ordinance
authorizing the issuance of such bonds;
(d) The transfer from the general funds of the municipality
to the account or accounts of such sewerage system or stormwater
system of an amount equal to the cost of furnishing the
municipality or any of its departments, boards or agencies with
the services and facilities of such sewerage system or stormwater
system;
(e) Limitations or restrictions upon the issuance of
additional bonds or other obligations payable from the revenue of
such sewerage system or stormwater system, and the rank or
priority, as to lien and source and security for payment from the
revenues of the sewerage system or stormwater system, between
bonds payable from the revenues;
(f) The manner and terms upon which all bonds and other
obligations issued hereunder may be declared immediately due and
payable upon the happening of a default in the payment of the
principal of or interest thereon, or in the performance of any
covenant or agreement with bondholders, and the manner and terms upon which defaults may be declared cured and the acceleration of
the maturity of such bonds rescinded and repealed;
(g) Budgets for the annual operation, maintenance and repair
of such sewerage system or stormwater system and restrictions and
limitations upon expenditures for such purposes, and the manner
of adoption, modification, repeal or amendment thereof, including
the approval of such budgets by consulting engineers designated
by holders of bonds issued hereunder;
(h) The amounts of insurance to be maintained upon such
sewerage system or stormwater system, or any part thereof, and
the use and disposition of the proceeds of any insurance;
(i) The keeping of books of account, relating to such
undertakings and the audit and inspection thereof, and the
furnishing to the holders of bonds issued hereunder or their
representatives, reports prepared, certified, or approved by
accountants designated or approved by the holders of bonds issued
hereunder;
(j) Such other additional covenants as shall be considered
necessary or desirable for the security of the holders of bonds
issued hereunder, notwithstanding that other covenants are not
expressly enumerated hereunder, it being the intention hereof to
grant to the municipalities the power to make any and all
covenants or agreements necessary in order to secure greater
marketability for bonds issued hereunder as fully and to the same extent as such covenants or agreements could be made by a private
corporation rendering similar services and facilities and to
grant such municipalities full and complete power to enter into
any contracts, covenants or agreements with holder of bonds
issued hereunder not inconsistent with the constitution of the
state of West Virginia.
§16-13-23a. Additional powers of municipality upon receipt of
order to cease pollution.
Notwithstanding any other provision contained in this article,
and in addition thereto, the governing body of any municipal
corporation which has received or which hereafter receives an
order issued by the director of the division of environmental
protection or the environmental quality board requiring such
municipal corporation to cease the pollution of any stream or
waters, is hereby authorized and empowered to fix, establish and
maintain, by ordinance, just and equitable rates, fees or charges
for the use of the services and facilities of the existing sewer
system and/or stormwater system of such municipal corporation,
and/or for the use of the services and facilities to be rendered
upon completion of any works and system necessary by virtue of
said order, to be paid by the owner, tenant or occupant of each
and every lot or parcel of real estate or building that is
connected with and uses any part of such sewer system or
stormwater system, or that in any way uses or is served thereby, and may change and readjust such rates, fees or charges from time
to time.
Such rates, fees or charges shall be sufficient for the payment
of all the proper and reasonable costs and expenses of the
acquisition and construction of plants, machinery and works for
the collection and/or treatment, purification and disposal of
sewage or stormwater, and the repair, alteration and extension of
existing sewer facilities or stormwater facilities, as may be
necessary to comply with such order of the director of the
division of environmental protection or the environmental quality
board, and for the operation, maintenance and repair of the
entire works and system.
The governing body shall create, by ordinance, a sinking fund to
accumulate and hold any part or all of the proceeds derived from
rates or charges until completion of the construction, to be
remitted to and administered by the municipal bond commission by
expending and paying the costs and expenses of construction and
operation in the manner as provided by said ordinance.
After the completion of the construction such rates, fees or
charges shall be sufficient in each year for the payment of the
proper and reasonable costs and expenses of operation,
maintenance, repair, replacement and extension from time to time,
of the entire sewer and works or entire stormwater works.
No such rates, fees or charges shall be established until after a
public hearing, at which all the potential users of the works and
owners of property served or to be served thereby and others
shall have had an opportunity to be heard concerning the proposed
rates or charges.
After introduction of the ordinance fixing rates, fees or
charges, and before the same is finally enacted, notice of such
hearing, setting forth the proposed schedule of rates, fees or
charges, shall be given by publication of notice as a Class II-O
legal advertisement in compliance with the provisions of article
three, chapter fifty-nine of this code, and the publication area
for such publication is the municipality. The first publication
shall be made at least ten days before the date fixed therein for
the hearing.
After such hearing, which may be adjourned from time to time, the
ordinance establishing the rates, fees or charges, either as
originally introduced or as modified and amended, may be passed
and put into effect. A copy of the schedule of the rates, fees
and charges so established shall be kept on file in the office of
the sanitary board having charge of the construction and
operation of such works, and also in the office of the clerk of
the municipality, and shall be open to inspection by all parties
interested. The rates, fees or charges so established for any
class of users or property served shall be extended to cover any additional premises thereafter served which fall within the same
class, without the necessity of any hearing or notice.
Any change or readjustment of rates, fees or charges may be made
in the same manner as rates, fees or charges were originally
established as hereinbefore provided: Provided, That if such
change or readjustment be made substantially pro rata, as to all
classes of service, no hearing or notice is required.
If any rate, fees or charge so established is not paid within
thirty days after the same is due, the amount thereof, together
with a penalty of ten percent, and a reasonable attorney's fee,
may be recovered by the sanitary board of such municipal
corporation in a civil action in the name of the municipality.
Any municipal corporation exercising the powers given herein has
authority to construct, acquire, improve, equip, operate, repair
and maintain any plants, machinery, or works necessary to comply
with the order of the director of the division of environmental
protection or the environmental quality board, and the authority
provided herein to establish, maintain and collect rates, fees or
charges is an additional and alternative method of financing such
works and matters, and is independent of any other provision of
this article insofar as the article provides for or requires the
issuance of revenue bonds or the imposition of rates, fees and
charges in connection with the bonds: Provided, however, That
except for the method of financing such works and matters, the construction, acquisition, improvement, equipment, custody,
operation, repair and maintenance of any plants, machinery or
works in compliance with an order of the director of the division
of environmental protection or the environmental quality board,
and the rights, powers, and duties of the municipal corporation
and the respective officers and departments thereof, including
the sanitary board, are governed by the provisions of this
article: Provided, further, That the jurisdiction and authority
provided by this section does not extend to highways, road and
drainage easements, and/or stormwater facilities constructed,
owned and/or operated by the West Virginia Division of Highways
and no rates, fees or charges for stormwater services or costs of
compliance may be assessed against highways, road and drainage
easements, and/or stormwater facilities constructed, owned and/or
operated by the West Virginia Division of Highways.