Be it enacted by the Senate and House of Representatives
in General Court assembled, and by the authority of the same,
SECTION 1. Those inhabitants of the town of Chelmsford within the territory bounded and described as follows: Beginning: At a point on the border of the Town of Chelmsford and the Town of Billerica located at Route 3, and thence running:
Northwesterly along Route 3 to 495; thence
Westerly from 495 to River Meadow Brook; thence
Southwesterly over various courses along River Meadow Brook, to Turnpike Road; thence
Southeasterly along Turnpike Road to Mill Road; thence
Easterly along Mill Road, approximately one thousand five hundred feet (1,500'); thence
Southeasterly to the Billerica Town Line; thence
Northeasterly along said Town line to the point of beginning.
Said area is more particularly described on a plan entitled "Proposed Chelmsford Industrial Sewer District, Scale 1" = 1,000', May, 1985," prepared by Weston and Sampson Eng., Inc. Said described area shall constitute a sewer district and is hereby made a body corporate entitled the Chelmsford Center Industrial Sewer District hereinafter referred to as the district.
SECTION 2. The purpose of the district shall be to lay out, construct, maintain, improve and operate a system or systems of sanitary sewers within or without the district which services a part or whole of the territory within the district, contracting with the town of Chelmsford for such purposes, and for assessing and raising revenues as provided herein to pay for such services.
SECTION 3. The powers conferred by this act shall be exercised by a board of district sewer commissioners, to be hereinafter called the "board", consisting of seven members. One member shall be a member of the board of selectmen, one member shall be a member of the sewer commission, and the remaining five members shall be appointed by the board of selectmen of the town of Chelmsford, said members being operators of businesses or landowners located within the district. In the event any member should by a change of circumstances either by disposal of property, change of business interest, or removal from the board of selectmen or sewer commission as the case may be, fail to continue to meet the underlying criteria of his appointment, then said member shall notify the board of sewer commissioners and his term shall terminate thirty days after the date of the occurrence of said change in circumstances. The board of selectmen shall immediately upon notice appoint a new member to complete the unexpired term and said appointment to become effective on the thirty-first day after the occurrence of the change. Said board shall not be subject to the supervision of the sewer commission of the town or of any other department, commission, board, bureau or agency of the town except to the extent and in the manner provided in this act. Members shall serve three-year terms, except that two members of the initial board shall serve one-year terms, two members shall serve two-year terms, and three members shall serve three-year terms, the term of each initial board member to be designated by the selectmen on appointment subject to the requirements of this section. Any member of the board may be eligible for reappointment. Four members of the board shall constitute a quorum and the affirmative vote of four members shall be necessary for any action taken by vote of the board; provided, however, that an affirmative vote of five members shall be necessary to exercise any of the powers enumerated in clause (i) of section four. No vacancy in the membership of the board shall impair the right of a quorum to exercise the powers of the board. Any action by the board shall take effect immediately unless otherwise provided and need not be published or posted.
SECTION 4. The board, acting for and on behalf of the district, shall have all the rights and powers necessary or convenient to carry out and effectuate this act, including, but without limiting the generality of the foregoing, the following rights and powers:
(a) to adopt by-laws 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; provided, however, that any by-laws with respect to the removal of members of the board shall be consistent with the by-laws of the town of Chelmsford;
(b) to adopt an official seal and alter the same at pleasure;
(c) to maintain an office at such place or places as it may determine;
(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 or 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 lease-back, gift or devise, or to obtain options for the acquisition of, any property, real or personal, tangible or intangible, or any interest therein, in the exercise of its powers and the performance of its duties; provided, however, that the board may not acquire property by eminent domain, except as provided for in clause (g);
(f) to sell, lease, mortgage, exchange, transfer or otherwise dispose of, or to grant options for any such purposes with respect to, any property, real or personal, tangible or intangible, or any interest therein;
(g) to construct, improve, extend, enlarge, maintain and repair the sewer works system for the benefit of the district; to construct such sewers under or over any bridge, railroad, railway, boulevard or other public way, or within the location of any railroad, and to enter upon and dig up any private land, public way or railroad location, for the purpose of laying such drains and sewers and of maintaining and repairing the same; provided, however, that they shall not enter upon or construct any drain or sewer within the location of any railroad corporation except at such time and in such manner as they may agree upon with such corporation, or, in case of failure to agree, as may be approved by the department of public utilities; and to make and maintain, in any way therein where main drains and common sewers are constructed, such connecting drains, sub-drains and sewers within the limits of such way as may be necessary to connect any estate which abuts upon such way. With respect to any work under this clause, the district shall be deemed to be a public agency for purposes of sections forty-four A to forty-four H, inclusive, of chapter one hundred and forty-nine of the General Laws and a commission of the town of Chelmsford for purposes of sections thirty-eight A? to thirty-eight M, inclusive, of chapter seven of the General Laws and a public agency of the town for purposes of sections thirty-nine A to forty M, inclusive, of said chapter seven.
(h) to pledge or assign any money, fees, charges, or other revenues of the district and any proceeds derived by the district;
(i) to borrow money and incur indebtedness and issue bonds or notes as hereinafter provided;
(j) to enter into contracts and agreements with the town of Chelmsford in all matters necessary, convenient or desirable for carrying out the purposes of this act including, without limiting the generality of the foregoing, construction, including sewers outside the district but benefitting the district, improvements, maintenance, collection of revenue, data processing, and other matters of management, administration and operation; to make other contracts of every name and nature; and to execute and deliver all instruments necessary or convenient for carrying out any of its purposes provided that all contracts made pursuant to clause (g) shall be approved by the board of selectmen of the town of Chelmsford;
(k) to exercise the powers and privileges of, and to be subject to limitations upon, towns and cities provided by the provisions of sections thirty-eight to forty-two I, inclusive, of chapter forty of the General Laws and sections one to twenty-four, inclusive, and twenty-seven to twenty-nine, inclusive, of chapter eighty-three of the General Laws, insofar as such provisions may be applicable and are consistent with the provisions of this act; provided, however, that any requirement in said sections or chapters for a vote by the board of selectmen or other governing body of a town or for a vote by the voters of a town shall be satisfied by a vote or resolution duly adopted by the board in accordance herewith; and, provided further, that the powers of the board to make rules and regulations and establish penalties regarding the use of sewers shall not be limited by section ten of said chapter eighty-three;
(l) to sue and be sued and to prosecute and defend actions relating to its properties and affairs; provided, however, that property of the district other than revenues pledged to the payment of notes or bonds shall not be subject to attachment nor levied upon by execution or otherwise;
(m) to do all things necessary, convenient or desirable for carrying out the purposes of this act or the powers expressly granted or necessarily implied in this act; and
(n) consistent with the constitution and laws of the commonwealth, the board shall have such other powers, including all powers pertaining to the sewer works system within its boundaries held by the town of Chelmsford not inconsistent herewith, as may be necessary for or incident to carrying out the foregoing powers and the accomplishment of the purposes of this act.
SECTION 5. The board is authorized and empowered to fix, revise, charge, collect and abate reasonable fees, rates, rents and assessments, and other charges for sewer and other services, improvements, maintenance, facilities, and commodities furnished or supplied to real property in the district. In providing for the payment of the cost of said system or systems or the improvements thereof, or for the use of said system or systems, the board may avail itself of the provisions of the General Laws relative to the assessment, apportionment, division, reassessment, abatement and collection of sewer charges, including betterments, or the establishment of liens therefor and interest thereon. In order to provide for the collection and enforcement of its fees, rates, rents, assessments and other charges, the board is hereby granted all the powers and privileges with respect thereto held by the town of Chelmsford on the effective date of this act or as otherwise provided in this act, to be exercised concurrently with the town.
The fees, rates, rents, assessments and other charges of the board of general application shall be adopted and revised by the board at least annually 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. 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 delivered to the board of selectmen and be published in a newspaper of substantial circulation in the town 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 and deliver to the board of selectmen the proposed schedule of fees, rates and charges.
The fees, rates, rents, assessments, abatements and other charges established by the board shall not be subject to supervision or regulation by any department, division, commission, board, bureau, or agency of the commonwealth or any of its political subdivisions, including, without limitation, the town, nor shall the district be subject to the provisions of section twenty A of chapter fifty-nine of the General Laws. Notwithstanding the foregoing, except to the extent of betterments assessed by the board, the board shall have no power of taxation. The board's operating budget shall be limited to the sum of five thousand dollars for current administrative expenses approved by the board in the year nineteen hundred and eighty-five. Each year thereafter said sum may be increased two and one-half per cent per year.
The fees, rates, rents, assessments and other charges established by the board in accordance with this section shall be so fixed and adjusted in respect of the aggregate thereof so as to provide revenues at least sufficient (i) to pay the current expenses of the board, (ii) to pay the principal of, premium, if any, and interest on bonds or other evidences of indebtedness issued by the board under this act 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, (iv) to provide funds for paying the cost of all necessary maintenance, repairs, replacements and renewals of the sewer works system and (v) to pay or provide for any amounts which the board 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.
SECTION 6. The board is hereby authorized and empowered to provide by resolution for the issuance, at one time or from time to time of notes of the district in the aggregate principal amount of two million dollars outstanding at any one time, excluding notes refunded by other notes issued under this paragraph, for the purpose of providing funds for paying the cost of constructing or acquiring such improvements, extensions, enlargements, alterations, reconstruction or remodeling for the sewer works system as may be authorized by such resolution, including the funding of interest on any notes of the district issued pursuant to section seven hereof in anticipation of federal, state or local grants for such work.
Except as otherwise provided herein, notes issued by the district in accordance with this section shall be issued in anticipation of bonds to be issued by the district pursuant to section seven of this act and shall be authorized, issued and sold in the same manner as, and shall otherwise be subject to section eight and other provisions of this act relating to such bonds. Such notes shall mature at such time or times as provided by resolution of the board and may be renewed from time to time; provided, however, that all such notes and renewals thereof shall mature on or prior to twenty years after their date of issuance.
The proceeds of the notes authorized by this section shall be used solely for paying or providing for the cost of extensions, improvements or enlargements of the sewer works system including repayment of interest on notes of the district as provided in the second paragraph and shall be disbursed in such manner and under such restrictions as may be provided in the resolution of the board.
SECTION 7. In addition to the notes issued under the provisions of section six, the board may provide by resolution for the issuance from time to time of bonds of the district for any of its corporate purposes. Bonds 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 may be issued to pay or refund notes issued by the board pursuant to section six, to pay the cost of maintenance, extension, enlargement, or improvement of the sewer works system, to provide such reserves for debt service, repairs and replacements or other costs as may be required by a trust agreement or resolution securing bonds of the district, or for any combination of the foregoing purposes. 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 board in any year, or in anticipation of the receipt of federal, commonwealth or local grants or other aid. The issuance of such notes shall be governed by the provisions of this act relating to the issuance of bonds other than such temporary notes as the same may be applicable; provided, however, that notes issued in anticipation of revenues shall mature no later than one year from their respective dates and notes issued in anticipation of federal, commonwealth or local grants or other aid and renewals thereof shall mature no later than the expected date of receipt of such grants or aid. Notes in anticipation of revenues issued to mature less than one year from their dates may be renewed by the board from time to time by the issue of other temporary notes hereunder; provided, however, that the period from the date of an original note to the maturity of any note issued to renew or pay the same or the interest thereon shall not exceed one year.
SECTION 8. The principal of, premium, if any, and interest on all bonds or notes issued under the provisions of this act, unless otherwise provided herein, shall be payable solely from the funds provided therefor from revenues as herein provided. Bonds or notes of each issue shall be dated, shall bear interest at such rate or rates, including rates variable from time to time as determined by such index, bankers loan rate or other method determined by the board and shall mature at such time or times, as may be determined by the board, and may be made redeemable before maturity at the option of the board at such price or prices and under such terms and conditions as may be fixed by the board prior to the issue of bonds or notes. The board shall determine the form of bonds or notes, including interest coupons, if any, to be attached thereto, and the manner of execution of bonds or notes and shall fix the denomination or denominations of bonds or notes and the place or places of payment of principal and interest, which may be at any bank or trust company within or without the commonwealth. In case any officer whose signature or a facsimile of whose signature shall appear on any bonds or notes 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 had remained in office until after such delivery. The board may also provide for authentication of bonds by a trustee or fiscal agent. Bonds or notes may be issued in bearer form, if not in conflict with federal law, or in registered form, or both, and, if notes, may be made payable to bearer or to order, as the board 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 or 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 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 its bonds or notes 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 act.
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.
In the discretion of the board, any bonds issued hereunder may be secured by a resolution of the board or by a trust agreement between the board and a corporate trustee, which may be any trust company or bank having the powers of a trust company within or without the commonwealth, 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 board, including the revenues from any improvements 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 board, 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 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 board in relation to the acquisition, construction, improvement, enlargement, alteration, equipping, furnishing, maintenance, use, operation, repair, insurance and disposition of property of the district, the custody, safeguarding, investment and application of moneys, the issue of additional or refunding bonds, the fixing, revision and collection of fees, rates, rents, assessments or other charges, the use of any surplus bond proceeds, the establishment of reserves, and the making and amending of contracts.
In addition to other security provided herein or otherwise by law, bonds or notes issued by the district under any provision of this act, including section six hereof, may be secured, in whole or in part, by letters of credit issued to the district by any bank, trust company or other financial institution, within or without the commonwealth, and the board may pledge or assign any of its revenues as security for the reimbursement by the district to the issuers of such letters of credit of any payments made under the letters of credit.
It shall be lawful for any bank or trust company to act as depository or trustee of the proceeds of bonds, revenues or other moneys under any such trust agreement or resolution and to furnish such indemnification or pledge such securities and issue such letters of credit as may be required by the board. Any such trust agreement or resolution may set forth the rights and remedies of bondholders and of the trustee and may restrict the individual right of action by bondholders. In addition to the foregoing, any such trust agreement or resolution may contain such other provisions as the board may deem reasonable and proper for the security of bondholders. Any pledge of revenues or other property made by the board under this section shall be valid and binding and shall be deemed continuously perfected for the purposes of chapter one hundred and six of the General Laws 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 board 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 board, 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 board, and no filing need be made under the provisions of said chapter one hundred and six.
Any holder of a bond or note issued by the district under the provisions of this act or 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, may bring suit upon the bonds, notes, or coupons and may, either at law or in equity, by suit, action, mandamus, or other proceedings for legal or equitable relief, including proceedings for the appointment of a receiver to take possession and control of the business properties of the board, to 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 the laws of the commonwealth or granted hereunder or 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 thereof.
SECTION 9. The board may issue refunding bonds for the purpose of paying any of its bonds at maturity or upon acceleration or redemption. Refunding bonds may be issued at such time or times prior to the maturity or redemption of the refunded bonds as the board deems to be in the public interest. Refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of such bonds, the expenses of issue of refunding bonds, the expenses of redeeming bonds being refunded and such reserves for debt service or other capital or current expenses from the proceeds of such refunding bonds as may be required by a trust agreement or resolution securing bonds. The issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders thereof, and the right, duties and obligations of the board in respect of the same shall be governed by the provisions of this act relating to the issue of bonds other than refunding bonds insofar as the same may be applicable.
SECTION 10. Bonds, notes, and other evidences of indebtedness issued or entered into under the provisions of this act shall not be deemed to be a debt or a pledge of the faith and credit of the commonwealth or the town of Chelmsford, but shall be payable solely from the revenues 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 commonwealth nor the town of Chelmsford shall be obligated to pay the same and that neither the faith and credit nor the taxing power of the commonwealth or of the town of Chelmsford is pledged to the payment of the principal of or interest on such bonds or notes. Each bond shall also recite whether it is a general obligation of the district or a special obligation thereof payable solely from particular funds pledged to its payment. Each bond or note shall bear on its face the words, Chelmsford Center Industrial Sewer district Loan, Act of 1985. The outstanding debt of the district shall not exceed in the aggregate, two million dollars. Each authorized issue shall constitute a separate loan and such loans shall be payable in not more than twenty years from their dates. Any indebtedness issued under this act with the exception of renewal notes issued pursuant to section six or refunding bonds issued pursuant to section nine shall be issued within two years of the effective date of this act. Indebtedness incurred under this act shall be limited to the issuance of bonds or notes as herein provided, and any other provision of the General Laws permitting the district to incur additional debt shall not be applicable.
SECTION 11. All moneys received pursuant to the provisions of this act, whether as proceeds from the issue of bonds or as revenue or otherwise, shall be deemed to be trust funds to be held and applied solely as provided in this act.
SECTION 12. Bonds or notes issued under the provisions of this act are hereby made securities in which all public officers and public bodies of the commonwealth and its political subdivisions, all insurance companies, commercial departments of trust companies, 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 or 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 commonwealth for any purpose for which the deposit of bonds or obligations of the commonwealth is now or may hereafter be authorized by law.
SECTION 13. Notwithstanding any of the provisions of this act or any recitals in any bonds issued under this act, all such bonds shall be deemed to be investment securities under the provisions of chapter one hundred and six of the General Laws.
SECTION 14. Bonds or notes may be issued under this act without obtaining the consent of the emergency finance board established under the provisions of chapter forty-nine of the acts of nineteen hundred and thirty-three or of any department, division, commission, board, bureau or agency of the commonwealth or the town, 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 act, and the validity of and security for any bonds or notes issued by the district shall not be affected by the existence or nonexistence of any such consent or other proceedings, conditions or things.
SECTION 15. 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 commonwealth or any of its political subdivisions. Bonds or notes issued by the district and their transfer and the income therefrom, including any profit made on the sale thereof, shall at all times be exempt from taxation within the commonwealth.
SECTION 16. The board 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 commonwealth or the town. The district shall operate on a fiscal year commencing July first unless otherwise provided by the board. Before the issuance of any bonds under the provisions of this act any member or officer of the board charged with responsibility for the issuance thereof, shall each execute a surety bond in the sum of one hundred thousand dollars payable to the district, or in lieu thereof the board shall obtain a blanket position bond covering any member or officer of the board charged with responsibility for the issuance of any bonds in the sum of one hundred thousand dollars, such surety bonds to be conditioned upon the faithful performance of the duties of their offices, to be executed by a surety company authorized to transact business in the commonwealth as surety and approved by the board.
SECTION 17. Upon termination or dissolution of the district, the title to all funds and other properties owned by it which remain after payment or the making of provision for payment of all bonds and other obligations of the board shall vest in the town. If upon any such termination or dissolution any bonds or notes of the board shall be outstanding, such bonds or notes, shall continue to be payable solely from the revenues and other property pledged therefor and shall not be or become a debt or obligation of the town except to the extent of such pledge.
No law affecting the powers, rights, duties, or obligations of the board shall be effective unless it shall apply to sewer districts generally or shall have been approved under the provisions of Article 2 of the Amendments to the Constitution of the Commonwealth.
SECTION 18. The provisions of this act 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 board by law; provided, however, that insofar as the provisions of this act are inconsistent with the provisions of any general or special law, administrative order or regulation, or the by-laws of the town of Chelmsford, the provisions of this act shall be controlling. Without limiting the generality of the foregoing, no provision of the by-laws of the town of Chelmsford requiring the ratification by the voters of certain bond issues shall apply to the issuance of bonds of the district pursuant to this act, nor shall the provisions of chapter forty-four of the General Laws be applicable to the manner of voting or the limitations as to amount and time of payment of debts incurred by the district.
SECTION 19. The district shall be dissolved by vote of the board one year from the date all debt issued by the district has been retired and all liabilities of the district have been satisfied fully. No further action of the town of Chelmsford or the commonwealth shall be required to dissolve the district.
SECTION 20. This act, being necessary for the welfare of the town and its inhabitants, shall be liberally construed to effect the purposes hereof.
SECTION 21. This act shall take effect upon its passage.