WEST VIRGINIA CODE
WVC 8-
CHAPTER 8. MUNICIPAL CORPORATIONS.
WVC -19-
ARTICLE 19. MUNICIPAL AND COUNTY WATERWORKS AND ELECTRIC POWER
SYSTEMS.
WVC 8-19-1
PART I. MUNICIPAL AND COUNTY WATERWORKS AND ELECTRIC POWER
SYSTEMS AUTHORIZED; DEFINITION.
§8-19-1. Acquisition and operation of municipal and county
waterworks and electric power systems; construction
of improvements to municipal and county electric
power systems; extension beyond corporate limits;
definitions.
(a) Subject to and in accordance with the provisions of this
article, any municipality or county commission may acquire,
construct, establish, extend, equip, repair, maintain and operate,
or lease to others for operation, a waterworks system or an
electric power system or construct, maintain and operate additions,
betterments and improvements to an existing waterworks system or an
existing electric power system, notwithstanding any provision or
limitation to the contrary in any other law or charter:
Provided,
That such municipality or county commission shall not serve or
supply water facilities or electric power facilities or services
within the corporate limits of any other municipality or county
commission without the consent of the governing body of such other
municipality or county commission.
(b) Any municipality or county commission which intends to
file an application with the federal energy regulatory commission
for a license to acquire, construct, establish, extend, maintain
and operate, or lease to others for operation, an electric power
system, shall give written notice by certified mail, return receipt
requested, and shall give public notice by Class I legal advertisement in compliance with the provisions of article three,
chapter fifty-nine of this code and the publication area shall be
the municipality or county in which the system is to be located to
the governing body of the municipality or the county commission in
which such system is or shall be located or, if such system is or
shall be located outside of a municipality or county, to the county
commission of the county in which such system is or shall be
located, at least sixty days prior to the filing of such
application: Provided, That the provisions of this subsection
shall not apply to any municipality or county commission which, on
the date of the passage of this act, has obtained a license from
the federal energy regulatory commission to acquire, construct,
establish, extend, maintain and operate, or lease to others for
operation, an electric power system. If the municipality or county
commission receiving such notice does not respond to the notice
within sixty days of receipt of such notice, then such other
municipality or the county commission shall be deemed to have
consented to the application for the proposed electric power
system. If such other municipality or the county commission
notifies the municipality or county commission that it objects to
the proposed electric power system, such other municipality or the
county commission shall hold a public hearing on the proposed
system within sixty days of receipt of such notice from the
municipality or county commission.
(c) As used in this article:
(1) "Waterworks system" means a waterworks system in its
entirety or any integral part thereof, including mains, hydrants,
meters, valves, standpipes, storage tanks, pump tanks, pumping
stations, intakes, wells, impounding reservoirs, pumps, machinery,
purification plants, softening apparatus and all other facilities
necessary, appropriate, useful, convenient or incidental in
connection with or to a water supply system.
(2) "Electric power system" means a system or facility which
produces electric power in its entirety or provides for the
distribution of electric power for local consumption and use or for
distribution and resale or any combination thereof, or any integral
part thereof, including, but not limited to, power lines and wires,
power poles, guy wires, insulators, transformers, generators,
cables, power line towers, voltage regulators, meters, power
substations, machinery and all other facilities necessary,
appropriate, useful or convenient or incidental in connection with
or to an electric power supply system.
WVC 8 - 19 - 2
PART II. LIMITATIONS ON SALE OR LEASE OF
CERTAIN MUNICIPAL WATERWORKS.
§8-19-2. Contracts for purchase of electric power or energy by a
municipality; definitions; requirements; payments;
rates and charges.
(a) For the purposes of this section:
(1) "Contract" means an agreement entered into by a
municipality with any other party for the purchase of electric
output, capacity or energy from a project as defined herein.
(2) "Any other party" means any other legal entity, including,
but not limited to, another municipality, political subdivision,
public authority, agency or instrumentality of any state or the
United States, a partnership, a limited partnership, a limited
liability company, a corporation, an electric cooperative or an
investor-owned utility existing under the laws of any state; and
(3) "Project" or "projects" means systems or facilities owned
by another party and used for the generation, transmission,
transformation or supply of electric power, or any interest in
them, whether an undivided interest as a tenant in common or
otherwise, or any right to the output, capacity or services
thereof.
(b) In addition to the general authority to purchase
electricity on a wholesale basis for resale to its customers, any
municipality that owns and operates an electric power system under
the provisions of this article may enter into a contract with any other party for the purchase of electricity from one or more
projects located in the United States that provide that the
contracting municipality is obligated to make payments required by
the contract whether or not a project is completed, operable or
operating and notwithstanding the suspension, interruption,
interference, reduction or curtailment of the output of a project
or the power and energy contracted for and that the payments shall
not be subject to any reduction, whether by offset or otherwise,
and shall not be conditioned upon performance or nonperformance by
any other party. The contract may provide that, in the event of a
default by the municipality or any other party to the contract in
the performance of each entities' obligations under the contract,
any nondefaulting municipality or any other party to the contract
shall on a pro rata basis succeed to the rights and interests of,
and assume the obligations of, the defaulting party.
(c) Notwithstanding any other provisions of law, ordinance or
charter provision to the contrary, a contract under subsection (b)
of this section may extend for more than fifty years or fifty years
from the date a project is estimated to be placed into normal
continuous operation and the execution and effectiveness of the
contract is not subject to any authorizations or approvals by the
state or any agency, commission, instrumentality or political
subdivision thereof except as otherwise specifically required by
law.
(d) A contract under subsection (b) of this section may provide that payments by the municipality are made solely from and
may be secured by a pledge of and lien upon revenues derived by the
municipality from ownership and operation and that payments shall
constitute an operating expense of the electric power system. No
obligation under the contract shall constitute a legal or equitable
pledge, charge, lien or encumbrance upon any property of the
municipality or upon any of its income, receipts or revenues,
except the revenues of the municipality's electric power system.
Neither the faith and credit nor the taxing power of the
municipality shall be pledged for the payment of any obligation
under the contract.
(e) A municipality contracting under the provisions of
subsection (b) of this section is obligated to fix, charge and
collect rents, rates, fees and charges for electric power and
energy and other services it sells, furnishes or supplies through
its electric power system in an amount sufficient to provide
revenues adequate to meet its obligations under the contract and to
pay any and all other amounts payable from or constituting a charge
and lien upon the revenues, including the amounts necessary to pay
the principal and interest on any municipal bonds issued related to
its electric power system: Provided, That any change in the rates
and charges of the municipality to the customers of the electric
power system under the provisions of this section are subject to
the provisions and requirements of section four-b, article two,
chapter twenty-four of this code and the obligations of the municipality under the contract are costs of providing electric
service within the meaning of that section.
WVC 8-19-3
PART III. RIGHT OF EMINENT DOMAIN.
§8-19-3. Right of eminent domain; limitations.
For the purpose of acquiring, constructing, establishing or
extending any waterworks system or electric power system, or for
the purpose of constructing any additions, betterments or
improvements to any waterworks or electric power system, or for the
purpose of acquiring any property necessary, appropriate, useful,
convenient or incidental for or to any waterworks or electric power
system, under the provisions of this article, the municipality or
county commission 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 privately owned
waterworks system, or electric power system, or any part thereof,
shall not be exercised without prior approval of the public service
commission, and in no event shall any municipality or county
commission construct, establish or extend beyond the corporate
limits of said municipality or county line a municipal or county
waterworks or electric power system under the provisions of this
article to supply service in competition with an existing privately
or municipally or county owned waterworks or electric power system
in such municipality or county or within the proposed extension of
such system, unless a certificate of public convenience and
necessity therefor shall have been issued by the public service
commission:
Provided, however, That a municipality or county
commission may not exercise such right of eminent domain over a privately owned electric power system or any part thereof for the
purpose of acquiring, constructing, establishing or extending an
electric power system.
Subject to the provisions of this article and notwithstanding
the provisions of section nineteen, article twelve of this chapter
to the contrary, a municipality or county commission may acquire,
construct, establish, extend, equip, repair, maintain and operate,
or lease to others for operation, electric generators or electric
generating systems or electric transmission systems more than one
mile beyond the corporate limits of such municipality or county
line and said electric generation systems shall not be under the
jurisdiction of the public service commission.
WVC 8-19-4
PART IV. REVENUE BOND FINANCING.
§8-19-4. Estimate of cost; ordinance or order for issuance of
revenue bonds; interest on bonds; rates for services;
exemption from taxation.
Whenever a municipality or county commission shall, under the
provisions of this article, determine to acquire, by purchase or
otherwise, construct, establish, extend or equip a waterworks
system or an electric power system, or to construct any additions,
betterments or improvements to any waterworks or electric power
system, it shall cause an estimate to be made of the cost thereof,
and may, by ordinance or order, provide for the issuance of revenue
bonds under the provisions of this article, which ordinance or
order shall set forth a brief description of the contemplated
undertaking, the estimated cost thereof, the amount, rate or rates
of interest, the time and place of payment, and other details in
connection with the issuance of the bonds. Such bonds shall be in
such form and shall be negotiated and sold in such manner and upon
such terms as the governing body of such municipality or county
commission may by ordinance or order specify. All such bonds and
the interest thereon shall be exempt from all taxation by this
state, or any county, municipality or county commission, political
subdivision or agency thereof. Notwithstanding any other provision
of this code to the contrary, the real and personal property which
a municipality or county has acquired and constructed according to
the provisions of this article, and any leasehold interest therein held by other persons, shall be deemed public property and shall be
exempt from taxation by the state, or any county, municipality or
other levying body, so long as the same is owned by such
municipality or county:
Provided, That with respect to electric
power systems, this exemption for real and personal property shall
be applicable only for such real and personal property (1)
physically situate within the municipal or county boundaries of the
municipality or county which acquired or constructed such electric
power system and there was in place prior to the effective date of
the amendments to this section made in the year one thousand nine
hundred ninety-two an agreement between the municipality and the
county commission for payments in lieu of tax, or (2) acquired or
constructed with the written agreement of the county school board,
county commission and any municipal authority within whose
jurisdiction the electric power system is or is to be physically
situate. Notwithstanding anything contained in this statute to the
contrary, this exemption shall be applicable to any leasehold or
similar interest held by persons other than a municipality or
county only if acquired or constructed with the written agreement
of the county school board, county commission and any municipal
authority within whose jurisdiction the electric power system is or
is to be physically situate:
Provided, however, That payments made
to any county commission, county school board or municipality in
lieu of tax pursuant to such an agreement shall be distributed as
if the payments resulted from ad valorem property taxation. Such bonds shall bear interest at a rate per annum set by the
municipality or county commission, payable at such times, and shall
be payable as to principal at such times, not exceeding fifty years
from their date, and at such place or places, within or without the
state, as shall be prescribed in the ordinance or order providing
for their issuance. Unless the governing body of the municipality
or county commission shall otherwise determine, such ordinance or
order shall also declare that a statutory mortgage lien shall exist
upon the property so to be acquired, constructed, established,
extended or equipped, fix minimum rates or charges for water or
electricity to be collected prior to the payment of all of said
bonds and shall pledge the revenues derived from the waterworks or
electric power system for the purpose of paying such bonds and
interest thereon, which pledge shall definitely fix and determine
the amount of revenues which shall be necessary to be set apart and
applied to the payment of the principal of and interest upon the
bonds and the proportion of the balance of such revenues, which are
to be set aside as a proper and adequate depreciation account, and
the remainder shall be set aside for the reasonable and proper
maintenance and operation thereof. The rates or charges to be
charged for the services from such waterworks or electric power
system shall be sufficient at all times to provide for the payment
of interest upon all bonds and to create a sinking fund to pay the
principal thereof as and when the same become due, and reasonable
reserves therefor, and to provide for the repair, maintenance and operation of the waterworks or electric power system, and to
provide an adequate depreciation fund, and to make any other
payments which shall be required or provided for in the ordinance
or order authorizing the issuance of said bonds.
WVC 8-19-5
§8-19-5. Publication of abstract of ordinance or order and notice;
hearing.
After the ordinance or order for any project under this
article has been adopted, an abstract of the ordinance or order,
determined by the governing body to contain sufficient information
as to give notice of the contents of such ordinance or order,
together with the following described notice, shall be published as
a Class II 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 or county. The
notice to be published with said abstract of the ordinance or order
shall state that said ordinance or order has been adopted, that the
municipality or county commission contemplates the issuance of the
bonds described in the ordinance or order, that any person
interested may appear before the governing body, upon a certain
date, which shall be not less than ten days subsequent to the date
of the first publication of such abstract and notice and which
shall not be prior to the date of the last publication by such
abstract and notice, and present protests, and that a certified
copy of the ordinance or order is on file with the governing body
for review by interested parties during the office hours of the
governing body. At such hearing all protests and suggestions shall
be heard and the governing body shall take such action as it
considers proper in the premises:
Provided, That if at such
hearing written protest is filed by thirty percent or more of the freeholders of the municipality or county, then the governing body
of said municipality or county shall not take further action unless
four fifths of the qualified members of said governing body assent
thereto.
WVC 8-19-6
§8-19-6. Amount, negotiability and execution of bonds.
Bonds herein provided for shall be issued in such amounts as
may be necessary to provide sufficient funds to pay all costs of
acquisition, construction, establishment, extension or equipment,
including engineering, legal and other expenses, together with
interest to a date six months subsequent to the estimated date of
completion. Bonds issued under the provisions of this article are
hereby declared to be negotiable instruments, and the same shall be
executed by the proper legally constituted authorities of the
municipality or county commission, and be sealed with the corporate
seal of the municipality or certified by the county commission, and
in case any of the officers whose signatures appear on the bonds or
coupons shall cease to be such officers before delivery of such
bonds, such signatures shall nevertheless be valid and sufficient
for all purposes the same as if they had remained in office until
such delivery. All signatures on the bonds or coupons and the
corporate seal may be mechanically reproduced if authorized in the
ordinance or order authorizing the issuance of the bonds.
WVC 8-19-7
§8-19-7. Bonds payable solely from revenues; not to constitute
municipal or county indebtedness.
Bonds issued under the provisions of this article shall be
payable solely from the revenues derived from such waterworks or
electric power system, and such bonds shall not in any event
constitute an indebtedness of such municipality or county 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 such
municipality or county within constitutional or statutory provision
or limitation. Subject to the provisions of subsection (b),
section twelve of this article, the ordinance or order 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.
WVC 8-19-8
§8-19-8. Lien of bondholders; deeds of trust; security agreements;
priority of liens.
Unless the governing body shall otherwise determine in the
ordinance or order authorizing the issuance of bonds under this
article, there shall be and there is hereby created and granted a
statutory mortgage lien upon the waterworks or electric power
system so acquired, constructed, established, equipped, extended or
improved from the proceeds of bonds hereby authorized to be issued,
which shall exist in favor of the holder of said bonds and each of
them, and to and in favor of the holder of the coupons attached to
said bonds, and such waterworks or electric power system shall
remain subject to such statutory mortgage lien until payment in
full of the principal of and interest upon said bonds.
Any municipality or county commission in acquiring an existing
waterworks system or in improving an existing waterworks or
electric power system may provide that financing therefor may be
made by issuing revenue bonds and delivering the same at such
prices as may be agreed upon within the limitations prescribed in
section six of this article. Any revenue bonds so issued to
provide financing for such existing waterworks or electric power
system or for any improvements to an existing waterworks or
electric power system may be secured by a mortgage or deed of trust
upon and security interest in the property so acquired or improved
or any other interest of the municipality or county commission in
property related thereto as determined by the municipality or county commission in the ordinance or order authorizing the
issuance of such revenue bonds; and in such event the holders
thereof shall have, in addition to any other remedies and rights
prescribed by this article, such remedies and rights as may now or
hereafter exist in law in the case of mortgages or deeds of trust
on real property and security interests in personal property. Such
mortgage or deed of trust, upon its recordation, shall have
priority over all other liens or encumbrances, however created or
arising, on the property covered by such mortgage or deed of trust,
to the same extent and for the same amount as if the municipality
or county were obligated to pay the full amount secured by such
mortgage or deed of trust immediately upon the recordation of such
mortgage or deed of trust and remained so obligated until the
obligations secured are fully discharged.
WVC 8-19-9
§8-19-9. Covenants with bondholders.
Any ordinance or order 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 such municipality or county commission is hereby
empowered and authorized to enter into and execute, 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 said waterworks or electric
power system may be applied and the securing, use and disposition
thereof, including, if deemed desirable, the appointment of a
trustee or depository for any of such funds;
(b) The pledging of all or any part of the revenues derived
from the ownership, control or operation of such waterworks or
electric power system, including any part thereof heretofore or
hereafter acquired, constructed, established, extended or equipped
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 rates or
charges for the use of the services and facilities of the
waterworks or electric power system, including the parts thereof
heretofore or hereafter acquired, constructed, established,
extended or equipped 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 waterworks or
electric power system, the payment of the principal of and interest upon all bonds or other obligations payable from the revenues of
such waterworks or electric power system, and all reserve and other
funds required by the terms of the ordinance or order authorizing
the issuance of such bonds;
(d) The transfer from the general funds of the municipality or
county commission to the account or accounts of the waterworks or
electric power system of an amount equal to the cost of furnishing
the municipality or county commission or any of its departments,
boards or agencies or the county commission with the services and
facilities of such waterworks or electric power system;
(e) Subject to the provisions of subsection (b), section
twelve of this article, limitations or restrictions upon the
issuance of additional bonds or other obligations payable from the
revenues of such waterworks or electric power system, and the rank
or priority, as to lien and source and security for payment from
the revenues of such waterworks or electric power system, between
bonds payable from such 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 such defaults may be declared cured and the acceleration
of the maturity of such bonds rescinded and repealed;
(g) Budgets for the annual repair, maintenance and operation
of such waterworks or electric power 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
waterworks or electric power 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
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.
Any such ordinance, order or trust indenture may also contain
such other additional covenants as shall be considered necessary or
desirable for the security of the holders of bonds issued
hereunder, notwithstanding that such other covenants are not
expressly enumerated above, it being the intention hereof to grant
to municipalities or county commissions 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 such covenants or agreements could be
made by a private corporation rendering similar services and
facilities and to grant to municipalities and counties 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.
WVC 8-19-10
§8-19-10. Operating contract.
Any such municipality or county commission may enter into
contracts or agreements with any persons for (1) the repair,
maintenance and operation and management of the facilities and
properties of said waterworks or electric power system, or any part
thereof, or (2) the collection and disbursement of the income and
revenues therefor, or for both (1) and (2), for such period of time
and under such terms and conditions as shall be agreed upon between
such municipality or county commission and such persons. Any such
municipality or county commission shall have plenary power and
authority to provide in the ordinance or order authorizing the
issuance of bonds hereunder, or in any trust indenture securing
such bonds, that such contracts or agreements shall be valid and
binding upon the municipality and county commission as long as any
of said bonds, or interest thereon, is outstanding and unpaid.
WVC 8-19-11
§8-19-11. Rates or charges for water and electric power must be
sufficient to pay bonds, etc.; disposition of
surplus.
Rates or charges for water or electric power fixed precedent
to the issuance of bonds shall not be reduced until all of said
bonds shall have been fully paid, and may, whenever necessary, be
increased in amounts sufficient to provide for the payment of the
principal of and interest upon such bonds, and to provide proper
funds for the depreciation account and repair, maintenance and
operation charges. If any surplus shall be accumulated in the
repair, maintenance and operation fund which shall be in excess of
the cost of repairing, maintaining and operating the waterworks or
electric power system during the remainder of the fiscal year then
current, and the cost of repairing, maintaining and operating the
said waterworks or electric power system during the fiscal year
then next ensuing, then any such excess may be transferred to
either the depreciation account or to the bond and interest
redemption account, and if any surplus shall be accumulated in the
depreciation account over and above that which the municipality or
county commission shall find may be necessary for the probable
replacements which may be needed during the then present fiscal
year, and the next ensuing fiscal year, such excess may be
transferred to the bond and interest redemption account, and, if
any surplus shall exist in the bond and interest redemption
account, the same shall be applied insofar as possible in the purchase or retirement of outstanding revenue bonds payable from
such account.
WVC 8-19-12
§8-19-12. Service charges; sinking fund; amount of bonds;
additional bonds; surplus.
(a) Every municipality or county commission issuing bonds
under the provisions of this article shall thereafter, so long as
any of such bonds remain outstanding, repair, maintain and operate
its waterworks or electric power system as hereinafter provided and
shall charge, collect and account for revenues therefrom as will be
sufficient to pay all repair, maintenance and operation costs,
provide a depreciation fund, retire the bonds and pay the interest
requirements of the bonds as the same become due. The ordinance or
order pursuant to which any such bonds are issued shall pledge the
revenues derived from the waterworks or electric power 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 as and when 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 or order pursuant to
which such bonds have been issued:
Provided, That payment 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 or county commission directly to the United States of
America or said agency or department thereof. The bonds hereby
authorized shall be issued in such amounts as may be determined necessary to provide funds for the purpose for which they are
authorized, and in determining the amount of bonds to be issued it
shall be proper to include interest on the bonds for a period not
beyond six months from the estimated date of completion.
(b) If the proceeds of the bonds, because of error or
otherwise, shall be less than the cost of the property or
undertaking for which authorized, additional bonds may be issued to
provide the amount of such deficit and such additional bonds shall
be considered to be of the same issue and shall be entitled to
payment from the same fund without preference or priority over the
bonds first authorized and issued.
(c) If the proceeds of the bonds shall exceed the cost of the
property or undertaking, the surplus shall be converted into the
fund thereon.
WVC 8 - 19 - 12 A
§8-19-12a. Deposit required for new customers; lien for delinquent
service rates and charges; failure to cure
delinquency; payment from deposit; reconnecting
deposit; return of deposit; liens; civil actions;
deferral of filing fees and costs in magistrate court
action; limitations with respect to foreclosure.
(a)(1) Whenever any rates and charges for water services or
facilities furnished remain unpaid for a period of twenty days
after the same become due and payable, the property and the owner
thereof, as well as the user of the services and facilities
provided, shall be delinquent and the owner, user and property
shall be held liable at law until such time as all such rates and
charges are fully paid. When a payment has become delinquent, the
municipality may utilize any funds held as a security deposit to
satisfy the delinquent payment. All new applicants for service
shall indicate to the municipality or governing body whether they
are an owner or tenant with respect to the service location.
(2) The municipality or governing body, but only one of them,
may collect from all new applicants for service a deposit of $50 or
two twelfths of the average annual usage of the applicant's
specific customer class, whichever is greater, to secure the
payment of water service rates, fees and charges in the event they
become delinquent as provided in this section. In any case where
a deposit is forfeited to pay service rates, fees and charges which
were delinquent and the user's service is disconnected or terminated, no reconnection or reinstatement of service may be made
by the municipality or governing body until another deposit equal
to $50 or a sum equal to two twelfths of the average usage for the
applicant's specific customer class, whichever is greater, is
remitted to the municipality or governing body. After twelve
months of prompt payment history, the municipality or governing
body shall return the deposit to the customer or credit the
customer's account with interest at a rate as the Public Service
Commission may prescribe: Provided, That where the customer is a
tenant, the municipality or governing body is not required to
return the deposit until the time the tenant discontinues service
with the municipality or governing body. Whenever any rates, fees,
rentals or charges for services or facilities furnished remain
unpaid for a period of twenty days after the same become due and
payable, the user of the services and facilities provided is
delinquent and the user is liable at law until all rates, fees and
charges are fully paid. The municipality or governing body may,
under reasonable rules promulgated by the Public Service
Commission, shut off and discontinue water services to a delinquent
user of water facilities ten days after the water services become
delinquent regardless of whether the municipality or governing body
utilizes the security deposit to satisfy any delinquent payments:
Provided further, That nothing contained within the rules of the
Public Service Commission shall be deemed to require any agents or
employees of the municipality or governing body to accept payment at the customer's premises in lieu of discontinuing service for a
delinquent bill.
(b) All rates or charges for water service whenever delinquent
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 such
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 or charges for services or
facilities of a tenant, nor shall any lien attach to real property
for the reason of delinquent rates or charges for services or
facilities of a tenant of such real property, unless the owner has
contracted directly with the municipality to purchase such services
or facilities.
(c) 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.
(d) No municipality may foreclose upon the premises served by it for delinquent rates or charges for which a lien is authorized
by this section except through the bringing and maintenance of a
civil action for such 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 such action. In no event
shall foreclosure procedures be instituted by any municipality or
on its behalf unless such delinquency had been in existence or
continued for a period of two years from the date of the first such
delinquency for which foreclosure is being sought.
WVC 8-19-13
§8-19-13. Discontinuance of water or electric power service for
nonpayment of rates or charges.
Any such municipality or county commission 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 or electric power service of said waterworks
or electric power system for the nonpayment of the rates or charges
for said water or electric power service.
WVC 8-19-14
§8-19-14. Bonds for additions, betterments and improvements.
Whenever any municipality or county commission shall now or
hereafter own and operate a waterworks or electric power system,
whether acquired, constructed, established, extended or equipped
under the provisions of this article or not, and shall desire to
construct additions, betterments or improvements thereto, it may
issue revenue bonds under the provisions of this article to pay for
the same, and the procedure therefor, including the fixing of rates
or charges and the computation of the amount thereof, and the power
and authority in connection therewith, shall be the same as in this
article provided for the issuance of bonds for the acquisition,
construction, establishment, extension or equipment of a waterworks
system or electric power system in a municipality or county which
has not heretofore owned and operated a waterworks or electric
power system:
Provided, That nothing in this article shall be
construed as authorizing any municipality or county commission to
impair or commit a breach of the obligation of any valid lien or
contract created or entered into by it, the intention being to
authorize the pledging, setting aside and segregation of such
revenues for the construction of such additions, betterments or
improvements only where and to the extent consistent with
outstanding obligations of such municipality or county commission,
and in accordance with the provisions of this article.
WVC 8-19-15
§8-19-15. System of accounts; audit.
Any municipality or county commission operating a waterworks
or electric power 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 such waterworks or electric power
system and the application of the same. At least once each year
such municipality or county commission shall cause such accounts to
be properly audited, and a report of such audit shall be open to
the public for inspection at all reasonable times.
WVC 8-19-16
§8-19-16. 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 eight of
this article, protect and enforce any and all rights granted
hereunder or under any such ordinance, order or trust indenture,
and may enforce and compel performance of all duties required by
the provisions of this article or by any such ordinance, order or
trust indenture to be performed by the municipality or county
commission, or by the governing body or any officer, including the
making and collecting of reasonable and sufficient rates or charges
for services rendered by the waterworks or electric power system.
If there be default in the payment of the principal of or interest
upon any of such bonds, or of both principal and interest, any
court having jurisdiction shall appoint a receiver to administer
said waterworks or electric power system on behalf of the
municipality or county commission, and the bondholders or trustee,
or both, with power to charge and collect rates 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 such receiver shall apply the revenues
in conformity with the provisions of this article and the ordinance
or order pursuant to which such bonds have been issued or any trust indenture, or both.
WVC 8-19-17
PART V. GRANTS, LOANS, ADVANCES AND AGREEMENTS;
CUMULATIVE AUTHORITY.
§8-19-17. Grants, loans, advances and agreements.
As an alternative to, or in conjunction with, the issuance of
revenue bonds authorized by this article, any municipality or
county commission 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, or otherwise enter into agreement, including, but not
limited to, agreements of indemnity, assurance or guarantee with
respect to, and for the purpose of financing part or all of, the
cost of acquisition, construction, establishment, extension or
equipment of waterworks or electric power systems and the
construction of additions, betterments and improvements to existing
waterworks systems or to existing electric power systems, and for
the other purposes herein authorized, from or with 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, or the municipality's or
county's financial obligations contained in such other agreements,
which need not bear interest, may be repaid out of the proceeds of
bonds authorized to be issued under the provisions of this article, the revenues of or proceeds from the said waterworks system or
electric power system or grants to the municipality or county
commission 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 may be secured
in the manner provided in sections eight, nine and sixteen of this
article to secure bonds issued under the provisions of this
article, but shall not otherwise be subject to the requirements of
sections eleven and twelve of this article, 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.
In no event shall any such loan or temporary advance or
agreement be a general obligation of the municipality or county and
such loans or temporary advances or agreements, including the
interest thereon, shall be paid solely from the sources specified
in this section.
WVC 8-19-18
§8-19-18. Additional and alternative method for constructing or
improving and for financing waterworks or electric
power system; cumulative authority.
This article shall, without reference to any other statute or
charter provision, be deemed full authority for the acquisition,
construction, establishment, extension, equipment, additions,
betterment, improvement, repair, maintenance and operation of or to
a waterworks or electric power system or for the construction of
any additions, betterments, improvements, repairs, maintenance or
operation of or to an existing electric power system as herein
provided and for the issuance and sale of the bonds or the
alternative methods of financing by this article authorized, and
shall be construed as 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 such
undertaking or to the issuance or sale of bonds or the alternative
methods of financing under the provisions of this article and no
publication of any resolution, ordinance, order, notice or
proceeding relating to any such undertaking or to the issuance or
sale of such bonds or the alternative methods of financing shall be
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 state
division of health shall remain unaffected by this article.
This article shall be construed as cumulative authority for any undertaking herein authorized, and shall not be construed to
repeal any existing laws with respect thereto.
WVC 8-19-19
PART VI. OPERATION BY BOARD; CONSTRUCTION.
§8-19-19. Alternative procedure for acquisition, construction or
improvement of waterworks or electric power system.
As an alternative to the procedures hereinabove provided, any
municipality or county commission is hereby empowered and
authorized to acquire, construct, establish, extend, equip, repair,
maintain and operate a waterworks or an electric power system or to
construct, maintain and operate additions, betterments and
improvements to an existing waterworks system or an existing
electric power system, 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 a portion of the governing
body, or of a board or commission appointed by such 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.
WVC 8-19-20
§8-19-20. Article to be liberally construed.
This article is necessary for the public health, safety and
welfare and shall be liberally construed to effectuate its
purposes.
WVC 8 - 19 - 21
§8-19-21. Specifications for water mains and water service pipes.
Considering the importance of public fire protection, any
state or local government, public service district, public or
private utility which installs or constructs water mains, shall
ensure that all new mains specifically intended to provide fire
protection are not less than six inches in diameter. Effective the
first day of July, two thousand seven, when any state or local
government, public service district, public or private utility
installs or constructs water mains along a platted roadway or a
public highway, using a six inch or greater line, that is
specifically designed to provide fire protection, the state or
local government, public service district, public or private
utility shall install fire hydrants at intervals of not more than
two thousand feet, unless there are no dwellings or businesses
located one thousand feet from such proposed hydrant:
Provided,
That the Legislature shall study the effect, cost and feasibility
of the internal hydrant valve and report the findings of that study
to the regular session of the Legislature in the year two thousand
and eight. A permit or other written approval shall be obtained
from the Department of Health and Human Resources for each hydrant
or group of hydrants installed in compliance with section nine,
article one, chapter sixteen of the West Virginia Code as amended:
Provided, however, That all newly constructed water distribution
systems transferred to a public or private utility shall have mains
at least six inches in diameter where fire flows are required by the public or private utility:
Provided further, That the utility
providing service has sufficient hydraulic capacity as determined
by the Department of Health and Human Resources.
WVC 8 - 19 - 22
§8-19-22. Identification requirement for fire hydrants that are
inoperable or unavailable for use in emergency
situations.
(a) The owner or operator of a fire hydrant or any device
having the appearance of a fire hydrant that is located in a place
that an entity responsible for providing fire suppression services
in a fire emergency would expect a fire hydrant to typically be
located, shall mark the fire hydrant or device, as set out in
subsection (b) of this section, if the owner or operator has actual
knowledge that the fire hydrant or device is inoperable or is
unavailable for use by an entity providing fire suppression
services in a fire emergency.
(b) To mark the fire hydrant or device, the owner or operator
of the fire hydrant or device shall:
(1) Paint the fire hydrant or device black if the fire hydrant
or device is inoperable or unavailable for use; or
(2) Place a black tarp over the fire hydrant or device if the
device is temporarily inoperable or temporarily unavailable for use
in a fire emergency, for a period not to exceed fourteen days.
(c) For the purposes of this section, the word "inoperable"
means a fire hydrant that does not produce water flow when
activated.
Note: WV Code updated with legislation passed through the 2012 1st Special Session