Chapter 560

2004 -- S 3203

Enacted 07/09/04

A N A C T

CREATING THE SHANNOCK WATER DISTRICT

Introduced By: Senator Kevin A. Breene

Date Introduced: June 16, 2004

It is enacted by the General Assembly as follows:

SECTION 1. Creation. -- (a) There is created a body corporate and public and a political

subdivision of the state, a special water district to be known as the Shannock water district

established for the purpose of providing adequate water supply to the residents of said district and

to others who may contract with the district for water supply. The district shall consist of the land

described in tax assessor's plats for the towns of Richmond and Charlestown as of June 10, 2003,

as follows:

That certain land in the town of Richmond delineated as Richmond tax assessor's plat

10D lots 23, 41, 40, 38, 25-2, 37, 25-3, 35-2, 25-4, 35-3, 35-4, 35-5, 35-6, 25, 35-7, 36, 35-8, 26,

33, 27, 31, 29, 35-9, 35-10 and 35-11 as constituted on July 1, 2004 and that certain land in the

town of Charlestown delineated as Charlestown tax assessor's plat 28, lots 160 and 161 as

constituted on July 1, 2004, and any other portions of such municipalities as may request, by

resolution of the municipality's town council, that such portions be served by the district and

which are accepted by the board of the district as part of the district. The area described in this

section shall be known as the Shannock water district.

(b) The district is hereby constituted an independent public instrumentality and the

exercise by the district of the powers conferred by this chapter shall be deemed and held to be the

performance of an essential public function.

unless and until the Rhode Island Water Resources Board has adopted a resolution declaring that

there is a need for such special water district to function.

SECTION 2. Electors. – The owners of real property located within the district who are

at least eighteen (18) years old and are rate payers within the service area are qualified electors of

the district for purposes of this act and are eligible to vote in all elections of officers of the district

and at all meetings of the district; provided that if more than one (1) person has an ownership

interest in real property or more than one (1) person shares a water service connection and would

be a qualified elector for purposes of this act, that only one (1) such person sharing an ownership

interest or sharing a connection shall be entitled to vote at any meeting of the district, such that

there shall be not more than one (1) elector for each water service connection entitled to vote at

any meeting of the district.

SECTION 3. Regular and special meetings – Voting. – (a) The first meeting of the

district may be called and run by any qualified elector. The first meeting shall be held on such

date as shall be determined by the elector who called the meeting, taking into account the notice

requirement of Section 3(b) hereof. The district shall hold a regular meeting on the first Monday

in May in every year, or at such intervals and on such dates as a majority of electors present at a

regular meeting shall determine, provided, however, that a regular meeting shall be held not less

than once every four (4) years.

(b) Special meetings of the district shall be called by the clerk upon order of the board or

upon written application of at least five (5) electors; and whenever the subject of ordering a tax is

to be acted on at any special meeting, the tax shall be mentioned in the notice. It is the duty of the

clerk to fix a suitable place for the holding of all meetings, and to give notice of each meeting,

both regular and special, by posting a notice in at least two (2) public places within the district at

the Richmond Town Hall and Charlestown Town Hall at least ten (10) days before the meeting;

and the notice shall contain a statement of the time and place when and where a meeting will be

held for the purpose of correcting and canvassing the voting list to be used at the regular or

special meeting, and it is the duty of the assessor of taxes of the district to canvass and correct the

voting list in the same manner as near as may be, as provided by law for boards of canvassers.

any meeting of the district unless at least five (5) electors are present at the meeting. On demand

of at least one-fifth (1/5) of the qualified electors of the district present at any meeting for a ballot

on any question pending at the meeting, the ballot shall be allowed; and all votes except on

motion to adjourn, or on amendment to any pending proposition, shall be required by the

moderator to be so taken, that the votes affirmative and negative may be by him or her counted,

and the results entered by the clerk on the minutes of the meeting.

SECTION 4. Officers constituting board – Powers – Bylaws – Elections. – (a) The

electors of the district shall elect officers at each regular meeting held on the first Monday in May

or at such intervals and on such dates as a majority of the electors present at a regular meeting

shall determine, provided that regular elections shall be held not less than once every four (4)

years. Such officers shall consist of a moderator, clerk, one (1) assessor, one (1) collector of

taxes, and one (1) additional member, whose duties and powers are within the district, as like

officers proper for a district. These enumerated officers shall constitute the board, and the duties

of the board are prescribed in this chapter. At the first meeting of the district, the moderator and

one (1) additional member shall be elected for a term ending the first Monday in May, 2007, two

(2) members shall be elected for a term ending the first Monday in May, 2006 and one (1)

member shall be elected for a term ending the first Monday in May, 2005. Thereafter, members

of the board shall be elected for a term of office of three (3) years, or such other term as a

majority of electors present at a regular meeting shall determine in order to conform with any

changes to the frequency of elective meetings approved by the electors in conformity with this

paragraph (a). Any vacancy that may occur in any of the aforenamed offices between regular

meetings shall be filled by some person to be chosen by the other members of the board to hold

the office until the next regular meeting. The electors of the district may, at any meeting, adopt

and ordain bylaws, and, from time to time, rescind or amend the bylaws, as they deem necessary

and proper for the purposes of this chapter and not repugnant to it and not inconsistent with any

other law; and provided that the electors may appoint committees they deem necessary, and may

fix the compensation of all agents, employees, and committees of the district.

(b) For a person to become a candidate at any election under this section, that person

must be a qualified elector of the district.

the district. The ballots shall contain no designation of party or political principle and there shall

be no primaries or other preliminary election. All elections shall be at large.

(d) No vacancy in the membership of the board shall impair the right of a quorum to

exercise the powers of the district. Three members of the board shall constitute a quorum and the

affirmative vote of three members shall be necessary for any action taken by vote of the board.

Any such action shall take effect immediately unless otherwise provided and need not be

published or posted.

SECTION 5. Officers and employees of board. -- (a) The chairperson of the board shall

be selected by the majority vote of the members of the board.

(b) The board may from time to time hire, transfer or otherwise appoint or employ a

treasurer, legal counsel, financial advisors and such other experts, engineers, agents, accountants,

clerks, and other consultants and employees as it deems necessary and determine their duties.

SECTION 6. Compensation of board members. – Other than as approved by the electors

at any meting, the members of the board shall receive no compensation, but each member may be

reimbursed for all reasonable and necessary expenses incurred in the discharge of official duties

as approved by the electors of the district.

SECTION 7. Powers. -- The board shall have all the rights and powers necessary or

convenient to carry out and effectuate this chapter, including, but without limiting the generality

of the foregoing, the rights and powers:

(a) to adopt bylaws for the regulation of its affairs and the conduct of its business, to

promulgate rules, regulations and procedures in connection with the performance of its functions

and duties and to fix, enforce and collect penalties for the violation thereof;

(b) to adopt an official seal and alter the same at pleasure;

(d) to apply for, receive, accept, administer, expend and comply with the conditions,

obligations and requirements respecting any grant, gift, loan, including without limitation any

grant, gift or loan from agencies of local, state and federal governments, donation or

appropriation of any property or money in aid of the purposes of the district and to accept

contributions of money, property, labor or other things of value;

(e) to acquire by purchase, lease, lease-purchase, sale and leaseback, gift or devise, or to

obtain options for the acquisition of any water or water rights and any other property, real or

personal, tangible or intangible, or any interest therein, in the exercise of its powers and the

performance of its duties;

(f) to sell, lease, mortgage, exchange, transfer to otherwise dispose of, or to grant options

for any such purposes with respect to, any water, water rights, and any other property, real or

personal, tangible or intangible, or any interest therein;

(g) to enter onto any land to make surveys, borings, soundings and examinations thereon,

provided that said district shall make reimbursements for any injury or actual damage resulting to

such lands and premises caused by any act of its authorized agents or employees and shall so far

as possible restore the land to the same condition as prior to the making of such surveys, borings,

soundings and examinations; and with the consent of the municipality, to acquire by eminent

domain any interest in real property within the district in the name of the district in accordance

with the provisions of this chapter;

(h) to purchase water in bulk or by volume, and to sell water to, any person, private or

public corporation or public instrumentality or municipality, the state and the federal government;

(i) to construct, improve, extend, enlarge, maintain and repair the water works system;

(j) to pledge or assign any money, fees, charges, or other revenues of the district and any

proceeds derived by the district from the sale of property, insurance or condemnation awards;

(k) to borrow money and incur indebtedness and issue its bonds and notes as hereinafter

provided;

(l) to make contracts of every name and nature and to execute and deliver all instruments

necessary or convenient for carrying out any of its purposes;

(m) to establish public hydrants in public places as it may see fit and prescribe for what

purposes the public hydrants are used, all of which it may change in its discretion;

(n) to enter into contracts and agreements with municipalities in all matters necessary,

convenient or desirable for carrying out the purposes of this chapter including, without limiting

the generality of the foregoing, collection of revenue, data processing, elections and other matters

of management, administration, construction and operation;

(o) to sue and be sued and to prosecute and defend actions relating to is properties and

affairs; provided that only property of the district other than revenues pledged to the payment of

bonds and notes shall be subject to attachment or levied upon execution or otherwise;

(p) to lend money for its purposes, invest and reinvest its funds and at its option to take

and hold real and personal property as security for the funds so loaned or invested;

(q) to do all things necessary, convenient or desirable for carrying out the purposes of this

chapter or the powers expressly granted or necessarily implied in this chapter, including entering

into agreements with other cities, towns or other districts to provide for the joint operation of

water supply activities;

(r) consistent with the constitution and laws of the state, the board shall have such other

powers, including all powers pertaining to the water works system not inconsistent herewith, as

may be necessary for or incident to carrying out the foregoing powers and the accomplishment of

the purposes of this chapter; provided, however, that nothing in this chapter shall impose any duty

on the board to maintain groundwater levels within or without the boundaries of the district.

SECTION 8. Additional powers and limitations. -- In addition to the powers of the board

otherwise provided herein, the board shall have the following powers and shall be subject to the

following limitations:

(a) The board is authorized and empowered to fix, revise, charge, collect and abate fees,

rates, rents, assessments, delinquency charges and other charges for water, and other services,

facilities and commodities furnished or supplied by it including penalties for violations of such

regulations as the board may from time to time promulgate under this chapter. Fees, rates, rents,

assessments, delinquency charges and other charges of general application shall be adopted and

revised by the board in accordance with procedures to be established by the board for assuring

that interested persons are afforded notice and an opportunity to present data, views and

arguments. Such fees, rates, rents, assessments and other charges may be based on the quantity of

water used or the number and kind of water connections made, or the number and kind of

plumbing fixtures installed on the estate, or upon the number or average number of persons

residing or working in or otherwise connected with the estate, or upon any other factor affecting

the use of or the value or cost of the water and water facilities furnished, or upon any combination

of these factors. The board shall hold at least one public hearing on its schedule of fees, rates and

charges or any revision thereof prior to adoption, notice of which shall be published in a

newspaper of substantial circulation in the district at least one month in advance of the hearing.

No later than the date of such publication the board shall make available to the public the

proposed schedule of fees, rates and charges. Fees, rates, rents, assessments, abatements and other

charges established by the board shall not be subject to supervision or regulation by any

department, division, district, board, bureau, or agency of the state or any of its political

subdivisions, including, without limitation, the public utilities commission and the division of

public utilities pursuant to chapters 1-5 of title 39 of the general laws.

(b) The fees, rates, rents, assessments and other charges established by the board in

accordance with paragraph (a) shall be so fixed and adjusted in respect to the aggregate thereof so

as to provide revenues, which, when added to taxes, if any, collected pursuant to Section 12

hereof, are at least sufficient: (i) to pay the current expenses of the district; (ii) to pay the

principal of, premium, if any, and interest on bonds, notes, or other evidences of indebtedness

issued by the board under this chapter as the same become due and payable; (iii) to create and

maintain such reasonable reserves as may be reasonably required by any trust agreement or

resolution securing bonds and notes; (iv) to provide funds for paying the cost of all necessary

repairs, replacements and renewals of the water works system; and (v) to pay or provide for any

amounts which the district may be obligated to pay or provide for by law or contract including

any resolution or contract with or for the benefit of the holders of its bonds and notes.

assessments and other charges, the board is hereby granted all the powers and privileges with

respect to such collection and enforcement held by a town of liens for unpaid taxes.

In addition to the other enforcement powers and remedies provided in this chapter, if any

fees, rates, rents, assessments or other charges billed by the board against any premises which are

connected with the water works system remain unpaid for a period of more than sixty (60) days

from the due date thereof, and following such period notice and demand have been posted on

such premises and have been given to the owner of said premises, by registered or certified mail

addressed to said premises and to the address of said owner as shown on the records of the

assessor of the municipality where the premises is located and to occupants of said premises by

mail, to pay the same within fifteen (15) days from the date of mailing of said notice, and such

fees, rates, rents, assessments or other charges remain unpaid, the board shall have the power and

is hereby authorized to shut off the supply of water to said premises until said fees, rates, rents,

assessments or other charges and penalties are paid, together with interest thereon at the

applicable rate and the standard charge of the district for restoring water service to said premises.

(d) Not later than one hundred eighty (180) days following the end of the district's fiscal

year, the board shall make an annual report of its activities for the preceding fiscal year to the

qualified electors, including its budget and operation plans. Each report shall set forth a complete

operating and financial statement covering its operations during the year. The board shall cause

the books, records and accounts of the district to be reviewed or audited by a certified public

accountant. The board shall forward copies of the district's annual report to the towns of

Richmond and Charlestown, the Rhode Island Water Resources Board Corporation and the state's

department of health.

SECTION 9. Exclusive authority for water distribution -- Contracts. -- (a) The board is

authorized to obtain and maintain for the district a supply of water for the extinguishing of fire

and for distribution to the inhabitants of the district, for domestic use and for other purposes, and

may obtain that water by the establishment of its own works, or by contracting for it as provided

in subsection (c), or in any other manner that the board may deem necessary and proper, and is

not inconsistent with law. The district may also furnish water to inhabitants outside of the

boundaries of the district. If the district undertakes to distribute the water so obtained, it shall

have the exclusive right to it, and may maintain an action against any person for using the water

without the consent of the district, and may regulate the distribution and use of the water within

and without the district. Nothing is this section, or any other section of this chapter, shall be

construed as giving to the district an exclusive franchise to furnish water outside of the

boundaries of the district.

(b) Without limiting the generality of the previous provisions as to fees, rates, rents,

assessments and charges, any contract for the sale of water to inhabitants outside of the

boundaries of the district may be recorded in the same manner as a deed of land, and, upon the

recording, the obligations of the owner of the real property involved are a lien on the property and

the lien is enforceable in the same manner as taxes assessed on real estate are by law collected.

the state, any other municipal or quasi-municipal corporation, or with the owners of any privately

owned water system for the purchase or sale of water or for the use of water facilities, and the

state, the other municipal or quasi-municipal corporations, and the owners of privately owned

water systems are authorized to enter into contracts with the district. Notwithstanding Section 39-

1-2(20) of the general laws, neither the district nor its governing body shall be deemed to be a

public utility, and the district and its governing body shall not be subject to chapters 1 -- 5 of title

39 of the general laws.

SECTION 10. Condemnation power. -- (a) If for any of the purposes of this act, the board

shall find it necessary to acquire any real property within the district and within the towns of

Charlestown and Richmond, whether for immediate or future use, the district may find and

determine that such property, whether a fee simple absolute or a lesser interest, is required for the

acquisition, construction or operation of a water supply facility, and upon such determination, the

said property shall be deemed to be required for such public use until otherwise determined by the

board; and with the exceptions hereinafter specifically noted, the said determination shall not be

affected by the fact that such property has theretofore been taken for, or is then devoted to, a

public use; but the public use in the hands or under the control of the district shall be deemed

superior to the public use in the hands of any other person, association or corporation; provided

further, however, that no real property or interest, estate or right therein belonging to the state

shall be acquired without consent of the state; and no real property or interest, estate or right

therein belonging to any municipality shall be acquired without the consent of such municipality.

(b) The board may proceed to acquire and is hereby authorized to and may proceed to

acquire such property within the district and within the towns of Charlestown and Richmond,

whether a fee simple absolute or a lesser interest, by the exercise of the right of eminent domain

in the manner prescribed in this act.

proceedings to remove a cloud on title or such other proceedings as it may, in its discretion, deem

proper and necessary, or from acquiring any such property by negotiation or purchase.

(d) The necessity for the acquisition of property under this act shall be conclusively

presumed upon the adoption of a vote by the board and a vote of the town council of the town in

which such property is located determining that the acquisition of such property or any interest

therein described in such vote is necessary for the acquisition, construction or operation of a

water supply facility. Within six (6) months after the passage of the vote of the town council, the

board shall cause to be filed in the appropriate land evidence records a copy of the two votes

together with a statement signed by the chairperson of the district that such property is taken

pursuant to this act, and also a description of such real property indicating the nature and extent of

the estate or interest therein taken as aforesaid and a plat thereof, which copies of the votes and

statement of the chairperson shall be certified by the clerk of the district and the description and

plat shall be certified by the town clerk for the town within which the real property lies.

(e) Forthwith thereafter the board shall cause to be filed in the superior court in and for

the county within which the real property lies a statement of the sum of money estimated to be

just compensation for the property taken, and shall deposit in said superior court to the use of the

persons entitled thereto the sum set forth in such statement. The board shall satisfy the court that

the amount so deposited with the court is sufficient to satisfy the just claims of all persons having

an estate or interest in such real property. Whenever the board satisfies the court that the claims of

all persons interested in the real property taken have been satisfied, the unexpended balance shall

be ordered repaid forthwith to the district.

(f) Upon the filing of the copy of the votes, statement, description and plat in the land

evidence records and upon the making of the deposit in accordance with the order of the superior

court, title to said real property in fee simple absolute or such lesser estate or interest therein

specified in said resolution shall vest in the district, and said real property shall be deemed to be

condemned and taken for the use of the district and the right to just compensation for the same

shall vest in the persons entitled thereto, and the district thereupon may take possession of said

real property. No sum so paid into the court shall be charged with clerks’ fees of any nature.

(g) After the filing of the copy of the votes, statement, description and plat, notice of the

taking of such land or other real property shall be served upon the owners or persons having any

estate or interest in such real property by the sheriff or his/her deputies of the county in which the

real estate is situated by leaving a true and attested copy of the votes, statement, description and

plat with each of such persons personally, or at the last and usual place of abode in this state with

some person living there, and in case of any such persons are absent from this state and have no

last and usual place of abode therein occupied by any person, such copy shall be left with the

person or persons, if any, in charge of, or having possession of such real property taken of such

absent persons, and another copy thereof shall be mailed to the address of such person, if the

same is known to the officer serving such notice.

(h) After the filing of such votes, description and plat, the board shall cause a copy of the

votes and description to be published in some newspaper having general circulation in the town in

which the real property lies at least once a week for three (3) successive weeks.

(i) If any party shall agree with the board upon the price to be paid for the value of the

real property so taken and of appurtenant damage to any remainder or for the value of his/her

estate, right or interest therein, the court, upon application of the parties in interest, may order that

the sum agreed upon be paid forthwith from the money deposited, as the just compensation to be

awarded in said proceedings; provided, however, that no payment shall be made to any official or

employee of the district for any property or interest therein acquired from such official or

employee unless the amount of such payment is determined by the court to constitute just

compensation to be awarded in said proceedings.

(j) Any owner of, or person entitled to any estate or right in, or interested in any part of

the real property so taken, who cannot agree with the board upon the price to be paid for his/her

estate, right or interest in such real property so taken and the appurtenant damage to the

remainder, may, within three (3) months after personal notice of said taking, or if he/she has no

personal notice, may within one (1) year from the time the sum of money estimated to be just

compensation is deposited in the superior court to the use of the persons entitled thereto, apply by

petition to the superior court for the county in which said real property is situated, setting forth

the taking of his/her land or his/her estate or interest therein and paying for an assessment or

damages by the court or by a jury. Upon the filing of such petition the court shall cause twenty

(20) days’ notice of the pendency thereof to be given to the district by serving the chairperson of

the district with a certified copy thereof.

(k) After the service of such notice the court may proceed to the trial thereof. Such trial

shall be conducted as other civil actions at law are tried. Such trial shall determine all questions of

fact relating to the value of such real property, and any estate or interest therein, and the amount

thereof and the appurtenant damage to any remainder and the amount thereof, and such trial and

decision or verdict of the court or jury shall be subject to all rights to except to rulings, to move

for new trial, and to appeal, as are provided by law. Upon the entry of judgment in such

proceedings execution shall be issued against the money so deposited in court and in default

thereof against any other property of the district.

(l) In case two (2) or more petitioners make claim to the same real property, or to any

estate or interest therein, or to different estates or interests in the same real property, said court

shall, upon motion, consolidate their several petitions for trial at the same time, and may frame all

necessary issues for the trial thereof.

(m) If any real property or any estate or interest therein, in which any infant or other

person not capable in law to act in his/her own behalf is interested, is taken under the provisions

of this act, said superior court, upon the filing therein of a petition by or in behalf of such infant

or person or by the board may appoint a guardian ad litem for such infant or other person.

Guardians may, with the advice and consent of said superior court, and upon such terms as said

superior court may prescribe, release to the district all claims for damages for the land of such

infant or other person or for any such estate or interest therein. Any lawfully appointed, qualified

and acting guardian or other fiduciary of the estate of any such infant or other person, with the

approval of the court of probate within this state having jurisdiction to authorize the sale of lands

and properties within this state of such infant or other person, may before the filing of any such

petition, agree with such infant or other person for any taking of his/her real property or of his/her

interest or estate therein, and may upon receiving such amount, release to the district all claims

for damages for such infant or other person for such taking.

(n) In case any owner of or any person having an estate or interest in such real property

shall fail to file his/her petition as above provided, the superior court for the county in which the

real property is situated, in its discretion, may permit the filing of such petition within one (1)

year subsequent to the year following the time of the deposit in the superior court of the sum of

money estimated to be just compensation for the property taken; provided, such person shall have

had no actual knowledge of the taking of such land in season to file such petition; and provided,

no other person or persons claiming to own such real property or estate or interest therein shall

have been paid the value thereof; and provided, no judgment has been rendered against the

district for the payment of such value to any other person or persons claiming to own such real

estate.

(o) If any real property or any estate or interest therein is unclaimed or held by a person

or persons whose whereabouts are unknown, after making inquiry satisfactory to the superior

court for the county in which the real property lies, the board, after the expiration of two (2) years

from the first publication of the copy of the votes, statement and description, may petition such

court that the value of the estate or interest or such unknown person or persons be determined.

After such notice by publication to such person or persons as the court in its discretion may order,

and after hearing on said petition, the court shall fix the value of said estate or interest and shall

order said sum to be deposited in the registry of such court in a special account to accumulate for

the benefit of the person or persons, if any, entitled thereto. The receipt of the clerk of the

superior court therefor shall constitute a discharge of the district from all liability in connection

with such taking. When the person entitled to the money deposited shall have satisfied the

superior court of his/her right to receive the same, the court shall cause it to be paid over to

him/her, with all accumulations thereon.

(p) The superior court shall have power to make such orders with respect to

encumbrances, liens, taxes and other charges on the land, if any, as shall be just and equitable.

(q) Whenever in the opinion of the board a substantial saving in the cost of acquiring title

can be effected by conveying other real property, title to which is in the district, to the person or

persons from whom the estate or interest in real property is being purchased or taken, or by the

construction or improvement by the district of any work or facility upon the remaining real

property of the person or persons from whom the estate or interest in real property is being

purchased or taken, the board shall be and hereby is authorized to convey such other real property

to the person or persons from whom the estate or interest in real property is being purchased or

taken and to construct or improve any work or facility upon the remaining land of such person or

persons.

(r) At any time during the pendency of any proceedings for the assessment of damages

for property or interests therein taken or to be taken by eminent domain by the district, the board

or any owner may apply to the court for an order directing an owner or the board, as the case may

be, to show cause why further proceedings should not be expedited, and the court may upon such

application make an order requiring that the hearings proceed and that any other steps be taken

with all possible expedition.

SECTION 11. Construction and maintenance of pipes, aqueducts and other structures –

Tax exemption. -- The board may within and without the district drive, lay, make, construct, and

maintain pipes, aqueducts, conduits, machinery, or other equipment or appliances, or authorize

the construction and maintenance to be done, and regulate their use; and may carry any works to

be constructed, or authorized to be constructed by it, over or under any highway, turnpike,

railroad, or street, in any manner so as not to permanently obstruct or impede travel; and may

enter upon and dig up any highway, turnpike, road or street for the purpose of laying down pipes

or building aqueducts, upon or beneath the surface or for the purpose of repairing the pipes or

aqueducts, and, if in the course of the making, constructing, or repairing, any pipe, conduit, or

other structure lawfully located in a highway, turnpike, road, or street is damaged, or if the

location of the pipe, conduit, or other structure is changed, the district shall reimburse the owner

of the pipe, conduit, or other structure for the damage, or for the expense of the change of

location. The board shall restore the highway, turnpike, road, or street so dug up, to as good a

condition as before the work was done.

Prior to commencing construction in any municipality, the board shall obtain consent of

the municipality for such construction.

SECTION 12. Taxes – Assessments – Penalty for nonpayment. – The qualified electors

of the district, at any of the meetings of the district, have power to order taxes, and provide for

assessing and collecting the taxes on the ratable real estate and tangible personal property of the

district, as they deem necessary for the purpose of: a) obtaining and maintaining a supply of water

and distributing the water for the extinguishing of fire; b) for power, domestic, and other uses; c)

for establishing and maintaining and constructing water works and driving wells, and operating

the water works and wells; d) for acquiring and leasing real estate and other property and property

rights necessary for a water supply, and laying and maintaining pipes, conduits, aqueducts and

other structures connected with them, and purchasing implements, machinery, and other

appliances; e) for the payment of the current expenses of the district; f) for the payment of

officers, employees, and other agents as the district and the board are authorized to elect, appoint,

or otherwise choose under this act; and g) for the payment of any indebtedness that has been or

may be incurred by the district. The taxes so ordered shall be assessed by the assessor of the

district on the taxable inhabitants and the property in the district according to the last valuation

made by the assessors of the town or towns wherein the property to be assessed lies, next

previous to the assessment, adding, however, any taxable property which may have been omitted

by the town assessors or afterwards acquired, using the assessed valuation made by the assessor

of the town where such property lies. In all cases where the town assessors have included

property within and without the district in one valuation, the assessor of the district shall make an

equitable valuation of that portion of the property lying within the district; and in the assessing

and collecting of the taxes, proceedings shall be had by the officers of the district, as near as may

be, as are required to be held by the corresponding officers of towns in assessing and collecting

town taxes. All taxes assessed against any person in the district shall constitute a lien upon his or

her real estate therein for a period of three (3) years after the assessment, and, if the real estate be

not alienated, then until the taxes are collected, as provided in chapter 9-1, et seq., of title 44 of

the general laws. The collector of taxes for the district shall, for the purpose of collecting taxes

assessed by the district, have the same powers and authority as are now by law conferred on

collectors of taxes for towns in this state. The qualified electors of the district may provide for a

deduction, from the tax assessed against any person if paid by an appointed time, or for a penalty,

by way of percentage on the tax if not paid at the appointed time, not exceeding twelve percent

(12%) per annum, as they deem necessary to insure punctual payment.

SECTION 13. Issuance of bonds and notes. -- For the purpose of raising money to carry

out the provisions of this chapter, the board is authorized and empowered to issue bonds and

notes in anticipation of bonds. Such bonds and notes may be issued hereunder as general

obligations of the district or as special obligations payable solely from particular funds. Without

limiting the generality of the foregoing, such bonds and notes may be issued to pay or refund

notes issued in anticipation of the issuance of bonds, to pay the cost of any acquisition, extension,

enlargement, or improvement of the water works system, to pay expenses of issuance of the

bonds and the notes, to provide such reserves for debt service, repairs, and replacements or other

costs or current expenses as may be required by a trust agreement or resolution securing bonds or

notes of the district, or for any combination of the foregoing purposes. The bonds of each issue

shall be dated, bear interest at a rate or rates, and mature at a time or times not exceeding forty

(40) years from their dates of issue, as may be determined by the officers of the district, and may

be made redeemable before maturity at a price or prices and under terms and conditions that may

be fixed by the officers of the district prior to the issue of the bonds. The officers of the district

shall determine the form of the bonds and notes, including interest coupons, if any, to be attached

to them, and the manner of their execution, and shall fix the denomination or denominations of

the bonds and notes and the place or places of payment of the principal and interest, which may

be at any bank or trust company within or without the state. The bonds shall bear the seal of the

district or a facsimile of the seal. In case any officer whose signature or a facsimile of whose

signature shall appear on any notes, bonds or coupons shall cease to be such officer before the

delivery thereof, such signature or such facsimile shall nevertheless be valid and sufficient for all

purposes as if he/she had remained in office until after such delivery. The board may also

provide for authentication of bonds or notes by a trustee or fiscal agent. Bonds may be issued in

bearer or in registered form, or both, and, if notes, may be made payable to bearer or to order, as

the district may determine, and provision may be made for the registration of any coupon bonds

as to principal alone and also as to both principal and interest, for the reconversion into coupon

bonds of bonds registered as to both principal and interest and for the interchange of bonds

registered as to both principal and interest and for the interchange of registered and coupon

bonds. The issue of notes shall be governed by the provisions of this chapter relating to the issue

of bonds in anticipation of bonds as the same may be applicable. Notes issued in anticipation of

the issuance of bonds including any renewals, shall mature no later than five (5) years from the

date of the original issue of such notes. The board may by resolution delegate to any member of

the board or any combination of them the power to determine any of the matters set forth in this

section including the power to award such bonds or notes to a purchaser or purchasers at public

sale. The board may sell bonds and notes of the district in such manner, either at public or private

sale, for such price, at such rate or rates of interest, or at such discount in lieu of interest, as it

may determine will best effect the purposes of this chapter.

The board may issue interim receipts or temporary bonds, with or without coupons,

exchangeable for definitive bonds when such bonds shall have been executed and are available

for delivery. The board may also provide for the replacement of any bonds which shall have

become mutilated or shall have been destroyed or lost.

SECTION 14. Issuance of notes in anticipation of revenue or receipt of grants or other

aid. -- The board may also provide by resolution for the issuance from time to time of temporary

notes in anticipation of the revenues to be collected or received by the district in any year, or in

anticipation of the receipt of federal, state or local grants or other aid. Notes issued in

anticipation of revenues, including any renewals thereof, shall mature no later than one (1) year

from their respective dates, and that notes issued in anticipation of federal, state or local grants or

other aid including any renewals thereof, shall mature no later than three (3) years from their

respective dates. The issue of such notes shall be governed by the provisions of this chapter

relating to the issue of bonds or other notes as the same may be applicable.

SECTION 15. Payment of bonds and notes. -- The principal of, premium, if any, and

interest on all bonds and notes issued under the provisions of this chapter, unless otherwise

provided herein, shall be general obligations of the district or shall be payable solely from the

funds provided therefor from revenues as herein provided.

In the discretion of the board, any bonds and notes issued hereunder may be secured by a

resolution of the board or by a trust agreement between the district and a corporate trustee, which

may be any trust company or bank having the powers of a trust company within or without the

state, and such trust agreement shall be in such form and executed in such manner as may be

determined by the board. Such trust agreement or resolution may pledge or assign, in whole or in

part, the revenues and other moneys held or to be received by the district, including the revenues

from any facilities already existing when the pledge or assignment is made, and any contract or

other rights to receive the same, whether then existing or thereafter coming into existence and

whether then held or thereafter acquired by the district, and the proceeds thereof. Such trust

agreement or resolution may contain such provisions for protecting and enforcing the rights,

security and remedies of the bondholders or noteholders as may, in the discretion of the board, be

reasonable and proper and not in violation of law, including, without limiting the generality of the

foregoing, provisions defining defaults and providing for remedies in the event thereof which

may include the acceleration of maturities and covenants setting forth the duties of, and

limitations on, the district in relation to the acquisition, construction, improvement, enlargement,

alteration, equipping, furnishing, maintenance, use, operation, repair, insurance, and disposition

of the water works system, or other property of the district, the custody, safeguarding, investment

and application of moneys, the issue of additional or refunding bonds and notes, the fixing,

revision and collection of fees, rates, rents, assessments, or other charges, the use of any surplus

bond and note proceeds, the establishment of reserves, and the making and amending of

contracts.

In the discretion of the board any bonds or notes issued under authority of this chapter,

may be issued in the form of lines of credit, loans, or other banking arrangements and under such

terms and conditions, not inconsistent with this chapter, and under such agreements with the

purchasers or makers thereof, as the board may determine to be in the best interest of the district.

In addition to other security provided herein or otherwise by law, bonds or notes issued under any

provision of this chapter may be secured, in whole or in part, by insurance or letters or lines of

credit or other credit facilities, and the board may pledge or assign any of the revenues of the

district as security for the reimbursement by the district to the issuers of such insurance, letters or

lines of credit or other credit facilities of any payments made under the insurance or letters or

lines of credit or other credit facilities.

It shall be lawful for any bank or trust company to act as a depository or trustee of the

proceeds of bonds, notes, revenues, or other moneys under any such trust agreement or resolution

and to furnish such indemnification or to pledge such securities and issue such letters of credit as

may be required by the district. Any pledge of revenues or other property made by the board

under this chapter shall be valid and binding and shall be deemed continuously perfected from the

time when the pledge is made; the revenues, moneys, rights and proceeds so pledged and then

held or thereafter acquired or received by the district shall immediately be subject to the lien of

such pledge without any physical delivery or segregation thereof or further act; and the lien of

any such pledge shall be valid and binding against all parties having claims of any kind in tort,

contract or otherwise against the district, irrespective of whether such parties have notice thereof.

Neither the resolution, any trust agreement nor any other agreement by which a pledge is created

need be filed or recorded except in the records of the district.

Any holder of a bond or note issued by the district under the provisions of this chapter or

of any of the coupons appertaining thereto and any trustee under a trust agreement or resolution

securing the same, except to the extent the rights herein given may be restricted by such trust

agreement or resolution securing the same, may bring suit upon the bonds or notes or coupons

and may, either at law or in equity, by suit, action, mandamus or other proceedings for legal or

equitable relief, including proceeding for the appointment of a receiver to take possession and

control of the business and properties of the district, too operate and maintain the same, to make

any necessary repairs, renewals and replacements in respect thereof and to fix, revise and collect

fees and charges, protect and enforce any and all rights under such trust agreement, resolution or

other agreement, and may enforce and compel the performance of all duties required by this act

or by such trust agreement or resolution to be performed by the board or by any officer of the

district.

SECTION 16. Refunding bonds and notes. -- The board may issue refunding bonds and

notes for the purpose of paying any of its bonds or notes at maturity or upon acceleration or

redemption. Refunding bonds and notes may be issued at such time prior to the maturity or

redemption of the refunded bonds or notes as the board deems to be in the public interest.

Refunding bonds and notes may be issued in sufficient amounts to pay or provide the principal of

the bonds or notes being refunded, together with any redemption premium thereon, any interest

accrued or to accrue to the date of payment of such bonds or notes, the expenses of issue of

refunding bonds or notes, the expenses of redeeming bonds or notes being refunded and such

reserves for debt service or other capital or current expenses from the proceeds of such refunding

bonds or notes as may be required by a trust agreement or resolution securing bonds or notes.

The issue of refunding bonds or notes, the maturities and other details thereof, the security

therefor, the rights of the holders thereof, and the rights, duties and obligations of the district in

respect of the same shall be governed by the provisions of this chapter relating to the issue of

bonds or notes other than refunding bonds or notes insofar as the same may be applicable.

SECTION 17. Defeasance of bonds or notes. -- The board may at any time deposit with a

trustee, a sum sufficient, with amounts then on deposit, including the debt service reserve fund, to

purchase direct or guaranteed obligations of the United States of America which are adequate to

pay the entire principal amount of the bonds or notes of a series, together with the interest to

maturity, or to an applicable redemption date specified by the board to the trustee and any

applicable redemption premium; or the board may deposit direct or guaranteed obligations of the

United States of America in lieu of money for their purchase. The obligations are deemed

adequate if the principal and interest payable on them are sufficient to pay the previously

mentioned sums when due. Upon any deposit of money and a request by the board, the trustee

shall purchase direct or guaranteed obligations of the United States of America. When adequate

direct or guaranteed obligations of the United States of America are held by the trustee pursuant

to this section, the bond resolution or indenture shall cease to be in effect with respect to such

series of bonds or notes. The obligations and their proceeds shall be held in trust for the benefit

of the bondholders or noteholders, and the trustee shall, on behalf of the district, call bonds or

notes for redemption on the applicable redemption date. Any compensation or expenses of the

trustee in carrying out this section shall be paid by the district, and any surplus funds held by the

trustee under this section shall be remitted by the trustee to the district.

SECTION 18. Credit of state and municipality not pledged. -- Bonds, notes and other

evidences of indebtedness issued or entered into under the provisions of this chapter shall not be

deemed to be a debt or a pledge of the faith and credit of the state or of any city or town, but shall

be payable solely from the revenues, general or special, of the district. All bonds, notes and other

evidences of indebtedness, shall contain on the face thereof a statement to the effect that neither

the state nor any city or town shall be obligated to pay the same and that neither the faith and

credit nor the taxing power of the state or of any city or town is pledged to the payment of the

principal of or interest on such bonds or notes. Each bond or note shall also recite whether it is a

general obligation or a special obligation of the district payable solely from particular funds

pledged to its payment.

SECTION 19. Moneys received deemed to be trust funds. -- All moneys received

pursuant to the provisions of this chapter, whether as proceeds from the issue of bonds or notes or

as revenues or otherwise, shall be deemed to be trust funds to be held and applied solely as

provided in this chapter.

SECTION 20. Bonds eligible for investment. -- Bonds and notes issued under the

provisions of this chapter are hereby made securities in which all public officers and public

bodies of the state and its political subdivisions, all insurance companies, trust companies in their

commercial departments, savings banks, co-operative banks, banking associations, investment

companies, executors, administrators, trustees and other fiduciaries may properly and legally

invest funds, including capital in their control or belonging to them. Such bonds and notes are

hereby made securities which may properly and legally be deposited with and received by any

state or municipal officer or any agency or political subdivision, of the state for any purpose for

which the deposit of bonds or obligations of the state is now or may hereafter be authorized by

law.

SECTION 21. Bonds and notes issued without consent of other entities. -- Bonds and

notes may be issued under this chapter without obtaining the consent of any department, division,

commission, board, bureau or agency of the state or the town, including the public utilities

commission and the division of public utilities pursuant to chapters 1 through 5 of title 39 of the

general laws, and without any other proceedings or the happening of any other conditions or

things than those proceedings, conditions or things which are specifically required therefor by this

chapter, and the validity of and security for any bonds and notes issued under this act shall not be

affected by the existence or nonexistence of any such consent or other proceedings, conditions or

things.

SECTION 22. Tax exemption. – The district and all its revenues, income and real and

personal property shall be exempt from taxation and from betterments and special assessments

and the district shall not be required to pay any tax, excise or assessment to or for the state or any

of its political subdivisions; provided, however, that the board is authorized to enter into

agreements to make annual payments in lieu of taxes with respect to property of the district, if

any, located outside the district. Bonds and notes issued under this act and their transfer and the

income therefrom, including any profit made on the sale or exchange thereof, shall at all times be

exempt from taxation by the state and all political subdivisions of the state. The district shall not

be required to pay any transfer tax of any kind on account of instruments recorded by it or on its

behalf.

SECTION 23. Malicious damage – Civil and criminal penalties. -- If any person

maliciously or wantonly destroys or damages any hydrant, pipe, aqueduct, conduit, machinery,

equipment, appliance, or other property of the district used for the purposes provided for in this

chapter, that person, whether principal or accessory, forfeits to the district, to be recovered by an

action of trespass on the case, treble the amount of damages which appear to have been sustained,

and shall also be liable to indictment, and, upon conviction, shall be fined not more than one

hundred dollars ($100) or imprisoned not more than one year, or shall suffer both fine and

imprisonment.

SECTION 24. Records – Reports -- Inspection. -- The district shall at all times keep full

and accurate accounts of its receipts, expenditures, disbursements, assets and liabilities, which

shall be open to inspection by any officer or duly appointed agent of the state.

SECTION 25. Termination or dissolution of district. -- Upon termination or dissolution

of the district, the title to all funds and other properties owned by it which remain after payment

of all bonds and notes and other obligations of the district shall vest in the towns of Richmond

and Charlestown, with such allocation as may be agreed by the towns.

SECTION 26. Inconsistent laws or ordinances inoperative. -- Except as otherwise

provided herein, any provisions of any special law and part of any special law and all ordinances

and parts of ordinances pertaining to the water works system which are inconsistent with the

provisions of this chapter shall be inoperative and cease to be effective.

SECTION 27. Provisions of act controlling. -- The provisions of this chapter shall be

deemed to provide an exclusive, additional, alternative and complete method for the doing of the

things authorized hereby and shall be deemed and construed to be supplemental and additional to,

and not in derogation of, powers conferred upon the district by law; provided, however, that

insofar as the provisions of this chapter are inconsistent with the provisions of any general or

special law, administrative order or regulation, or law of any municipality, the provisions of this

chapter shall be controlling.

SECTION 28. Pledge not to alter rights of district. -- The state does hereby pledge to and

agree with the holders of the bonds, notes, and other evidences of indebtedness of the district that

the state will not limit or alter rights hereby vested in the district until the bonds, notes, or other

evidences of indebtedness, together with interest thereon, with interest on any unpaid installment

of interest and all costs and expenses in connection with any actions or proceedings by or on

behalf of the bondholders and noteholders, are fully met and discharged.

SECTION 29. Construction of act. -- This chapter, being necessary for the welfare of the

district and its inhabitants, shall be liberally construed to effect the purposes hereof.

SECTION 30. Severability. -- This chapter shall be construed in all respects to meet all

constitutional requirements. In carrying out the purposes and provisions of this chapter, all steps

shall be taken which are necessary to meet constitutional or other legal requirements whether or

not these steps are expressly required by statute. If, after the application of the provisions of this

section, any of the provisions of this chapter, or its application to any circumstances, shall be held

unconstitutional by any court of competent jurisdiction, that decision shall not affect or impair the

validity of the application of those provisions to other circumstances or the validity of any of the

other provisions of this chapter.

SECTION 31. Open meetings law. – The district shall be subject to chapter 46 of title 42

of the general laws entitled "Open Meetings."

SECTION 32. The first meeting shall be called by any five (5) qualified electors of the

district for purposes of this Section 32 and shall be held at such time and place as is specified in

the notice of the call of the meeting, provided that said date shall occur not later than twelve

months from the date of the passage of this act. A vote by ballot shall be taken at said first

meeting upon the proposition, "Shall the Shannock water district be established according to the

act of incorporation passed by the general assembly of the state?" If a majority of the persons so

voting shall vote in the affirmative then said Shannock water district shall be established

according to the provisions of this act, but if a majority of the persons so voting shall vote in the

negative, then this act shall become null and void. Said first meeting shall be organized by the

election of a moderator, a clerk, and a committee of three (3) persons, qualified electors in the

district for purposes of this Section 32, who shall act at the meeting as a board of canvassers.

Said board of canvassers shall be provided by the tax assessor of the towns of Richmond and

Charlestown with lists of the persons who are property owners within the district and shall be

provided by the Shannock Cooperative Water Association, Inc. with a list of the persons who are

ratepayers within the service area and such persons shall be the qualified electors of the district

for the purposes of this Section 32, provided, that if more than one (1) person has an ownership

interest in real property or more than one (1) person shares a water service connection, for

purposes of this Section, that only one (1) such person sharing an ownership interest or sharing a

connection shall be entitled to vote, such that there shall be not more than one (1) elector for each

water service connection entitled to vote. The name of any person whose right to vote at said

meeting is challenged shall be referred by the moderator to the committee who shall forthwith

determine the question as to whether said person is qualified to vote and take part in the

proceedings of the meeting and shall so report forthwith to said moderator. At said meeting said

district after acceptance of the act may proceed to adopt bylaws and effect a permanent

organization or it may adjourn to a date determined by vote.

SECTION 33. Sections 32 and 33 of this act shall take effect upon the passage of the act.

The reminder of this act shall take effect upon the approval of a majority of those voting on the

question as prescribed by the foregoing section.

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LC03671

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