77-5-709 - Proportionate ownership of undivided interest in projects; liability of municipality; contracts; issuance of bonds.
§ 77-5-709. Proportionate ownership of undivided interest in projects; liability of municipality; contracts; issuance of bonds.
Each municipality shall own an undivided interest in any project in proportion to the amount of the money furnished the value of property or other consideration supplied by it for the planning, development, acquisition or construction thereof, and shall be entitled to a percentage share of the output and capacity therefrom equal to such undivided interest.
Each municipality shall be severally liable for its own acts and not jointly or severally liable for the acts, omissions or obligations of others, and no money or property or other consideration supplied by any municipality shall be credited or otherwise applied to the account of any other municipality or other tenant in common in the project, nor shall the undivided share of any municipality in a project be charged directly or indirectly with any debt or obligation of any other municipality or other tenant in common or be subject to any lien as a result thereof. The acquisition of a project shall include, but shall not be limited to, the purchase or lease of an existing, completed project and the purchase of a project under construction. A municipality participating in the joint planning, financing, construction, reconstruction, acquisition, improvement, enlargement, betterment, ownership, operation or maintenance of any project under this article may furnish money and provide property, both real and personal, services and other considerations derived solely from the proceeds of bonds or from the ownership and operation of its electric system, or both.
Any contracts entered into by municipalities with respect to joint ownership in a project shall contain such terms, conditions and provisions, not inconsistent with the provisions hereof, as the utility commission of the municipalities shall deem to be in the interests of the municipalities and shall be spread upon the minutes of said utility commission. Any such contracts shall be ratified by resolution of the governing authorities of each municipality spread upon its minutes. Any such contracts shall include, but shall not be limited to, the following:
(a) The purpose or purposes of the contract;
(b) The duration of the contract;
(c) The manner of appointing or employing the personnel necessary in connection with the project;
(d) The method of financing the project, including the apportionment of costs and revenues;
(e) Provisions specifying the ownership interests of the parties in real property used or useful in connection with the project, and the procedures for the disposition of such property when the contract expires, is terminated or when the project, for any reason, is abandoned, decommissioned or dismantled;
(f) Provisions relating to alienation and prohibiting partition of a municipality's undivided interest in a project, which provisions shall not be subject to any provision of law restricting covenants against alienation or partition;
(g) Provisions for the construction of a project, which may include the determination that one (1) municipality jointly participating or any person, firm or corporation may construct the project as agent for all the parties;
(h) Provisions for the operation and maintenance of a project, which may include the determination that one (1) municipality jointly participating or any person, firm or corporation may operate and maintain the project as agent for all the parties;
(i) Provisions for the creation of a committee of representatives of the parties jointly participating with such powers of supervision of the construction and operation of the project as the contract, not inconsistent with the provisions of this article, may provide;
(j) Provisions that if one or more of the parties shall default in the performance or discharge of its or their obligations with respect to the project, the other party or one or more of the other parties may assume, pro rata, or otherwise, the obligations of such defaulting party or parties and may succeed to such rights and interests of the defaulting party or parties in the project as may be agreed upon in the contract;
(k) Methods of amending the contract;
(l) Methods for terminating the contract; and
(m) Any other necessary or proper matter.
For the purpose of paying its respective share of the cost of a project or projects, a municipality may issue its bonds as provided in this article, and, notwithstanding the provisions of any other law to the contrary, may pledge to the payment of the principal of, premium, if any, and interest on such bonds, the revenues or any portion thereof derived or to be derived from the ownership and operation of its system or facilities for the generation, transmission or distribution of electric power or energy or its interest in any joint project or projects, or a combination of such revenues. Provided, that all bonds issued under the provisions of this article shall be authorized and issued by the governing authorities of a city, town or other unit of municipal government created under the laws of this state.
Sources: Laws, 1978, ch. 363, § 5, eff from and after passage (approved March 14, 1978).