66.073(12)(a)(a) Bonds of an electric company shall be authorized by resolution of the board of directors and may be issued under such resolution or under a trust indenture or other security instrument in one or more series and shall bear such date or dates, mature at such time or times, bear interest at such rate or rates, be in such denomination or denominations, be in the form of coupon bonds or registered bonds under
s. 67.09, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, as such resolution, trust indenture or other security instrument may provide, and without limitation by the provisions of any other law limiting amounts, maturities or interest rates.
66.073(12)(b)
(b) The bonds may be sold at public or private sale as the company may provide and at such price or prices as the company shall determine.
66.073(12)(c)
(c) In case any of the officers whose signatures appear on any bonds or coupons shall cease to be such officers before the delivery of such obligations, such signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if the officers had remained in office until such delivery.
66.073(13)
(13) Covenants. The company shall have power in connection with the issuance of its bonds to:
66.073(13)(a)
(a) Covenant as to the use of any or all of its property, real or personal.
66.073(13)(b)
(b) Redeem the bonds, to covenant for their redemption and to provide the terms and conditions thereof.
66.073(13)(c)
(c) Covenant to charge rates, fees and charges sufficient to meet operating and maintenance expenses, renewals and replacements to a project, principal and debt service on bonds, creation and maintenance of any reserves required by a bond resolution, trust indenture or other security instrument and to provide for any margins or coverages over and above debt service on the bonds deemed desirable for the marketability of the bonds.
66.073(13)(d)
(d) Covenant and prescribe as to events of default and terms and conditions upon which any or all of its bonds shall become or may be declared due before maturity, as to the terms and conditions upon which such declaration and its consequences may be waived and as to the consequences of default and the remedies of bondholders.
66.073(13)(e)
(e) Covenant as to the mortgage or pledge of or the grant of a security interest in any real or personal property and all or any part of the revenues from any project or projects or any revenue producing contract or contracts made by the company with any person or public agency to secure the payment of bonds, subject to such agreements with the holders of bonds as may then exist.
66.073(13)(f)
(f) Covenant as to the custody, collection, securing, investment and payment of any revenues, assets, moneys, funds or property with respect to which the company may have any rights or interest.
66.073(13)(g)
(g) Covenant as to the purposes to which the proceeds from the sale of any bonds then or thereafter to be issued may be applied, and the pledge of such proceeds to secure the payment of the bonds.
66.073(13)(h)
(h) Covenant as to limitations on the issuance of any additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds.
66.073(13)(i)
(i) Covenant as to the rank or priority of any bonds with respect to any lien or security.
66.073(13)(j)
(j) Covenant as to the procedure by which the terms of any contract with or for the benefit of the holders of bonds may be amended or abrogated, the amount of bonds, the holders of which must consent thereto, and the manner in which such consent may be given.
66.073(13)(k)
(k) Covenant as to the custody of any of its properties or investments, the safekeeping thereof, the insurance to be carried thereon, and the use and disposition of insurance proceeds.
66.073(13)(L)
(L) Covenant as to the vesting in a trustee or trustees, within or outside the state, of such properties, rights, powers and duties in trust as the company may determine.
66.073(13)(m)
(m) Covenant as to the appointing and providing for the duties and obligations of a paying agent or paying agents or other fiduciaries within or outside the state.
66.073(13)(n)
(n) Make all other covenants and to do any and all such acts and things as may be necessary or convenient or desirable in order to secure its bonds, or in the absolute discretion of the company tend to make the bonds more marketable; notwithstanding that such covenants, acts or things may not be enumerated herein; it being the intention hereof to give the company power to do all things in the issuance of bonds and in the provisions for security thereof which are not inconsistent with the constitution of the state.
66.073(13)(o)
(o) Execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of covenants or duties, which may contain such covenants and provisions, as any purchaser of the bonds of the company may reasonably require.
66.073(14)
(14) Refunding bonds. A company may issue refunding bonds for the purpose of paying any of its bonds at or prior to maturity or upon acceleration or redemption. Refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the company deems to be in the public interest. The 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 the refunding bonds, the expenses of redeeming the 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 the resolution, trust indenture or other security instruments. The issue of refunding bonds, the maturities and other details thereof, the security therefor, the rights of the holders thereof, and the rights, duties and obligations of the company in respect of the same shall be governed by this section relating to the issue of bonds other than refunding bonds insofar as the same may be applicable.
66.073(15)
(15) Bonds eligible for investment. Bonds issued by a company under this section are hereby made securities in which all public officers and agencies of the state and all political subdivisions, all insurance companies, trust companies, banks, savings banks, savings and loan 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 are hereby made securities which may properly and legally be deposited with and received by any officer or agency of the state or any political subdivision for any purpose for which the deposit of bonds or obligation of the state or any political subdivision is now or may hereafter be authorized by law.
66.073(16)
(16) Tax exemption and payments in lieu of taxes. 66.073(16)(a)(a) All bonds of a municipal electric company are declared to be issued on behalf of the state for an essential public and governmental purpose and to be debts of a state municipal corporation.
66.073(16)(b)
(b) The property of a company, including any proportional share of any property owned by a company in conjunction with any other person or public agency, is declared to be public property used for essential public and governmental purposes and such property or proportional share, a company and its income shall be exempt from all taxes of the state or any state public body except that for each project owned or partly owned by it, a company shall make payments-in-lieu-of-taxes to the state equal to the amount which would be paid to the state under
ss. 76.01 to
76.26 for such project or share thereof if it were deemed to be owned by a company under
s. 76.02 (2). The payment shall be determined, administered and distributed by the state in the same manner as the taxes paid by companies under
ss. 76.01 to
76.26.
66.073(17)
(17) Successor. A company shall, if the contract so provides, be the successor to any nonprofit corporation, agency or any other entity theretofore organized by such contracting municipalities to provide the same or a related function, and the company shall be entitled to all rights and privileges and shall assume all obligations and liabilities of the other entity under existing contracts to which the other entity is a party.
66.073(18)
(18) Other statutes. The powers granted under this section do not limit the powers of municipalities to enter into intergovernmental cooperation or contracts or to establish separate legal entities under
s. 66.30 or any other applicable law, or otherwise to carry out their powers under applicable statutory provisions, nor shall such powers limit the powers reserved to municipalities by state law.
66.073(19)
(19) Construction. This section shall be interpreted liberally to effect the purposes set forth in this section.
66.0735
66.0735
Joint local water authorities. 66.0735(1)
(1)
Finding and declaration of necessity. It is declared that the operation of water utility systems by local governmental units of this state and the improvement of the systems through joint action in the production, treatment, storage, transmission, distribution, purchase, sale and exchange of water is in the public interest and a matter of statewide concern; that there is a need in order to ensure the stability and continued viability of the local systems to provide for a means by which local governmental units which operate the systems may act jointly, including development of coordinated water production, treatment, storage, transmission and distribution; and that, the necessity in the public interest for the provisions of this section is declared as a matter of legislative determination.
66.0735(2)
(2) Definitions. As used in this section, unless the context clearly indicates otherwise:
66.0735(2)(a)
(a) "Authority" means a joint local water authority.
66.0735(2)(b)
(b) "Bonds" means any bonds, interim certificates, notes, debentures or other obligations of an authority issued under this section.
66.0735(2)(c)
(c) "Commission" means the public service commission.
66.0735(2)(d)
(d) "Contracting party" means a local governmental unit in this state, or a federally recognized Indian tribe or band located in this state, that contracts to establish or to join an authority under this section.
66.0735(2)(e)
(e) "Local governmental unit" means any city, village, town, county, town sanitary district, water utility district, or a public inland lake protection and rehabilitation district that has town sanitary district powers under
s. 33.22 (3).
66.0735(2)(f)
(f) "Local water authority" means a public corporation created by contract between 2 or more contracting parties.
66.0735(2)(g)
(g) "Project" means any plant, works, system, facilities and real and personal property of any nature, together with all parts and appurtenances, that are used or useful in the production, treatment, storage, transmission, distribution, purchase, sale, or exchange of water. "Project" includes any interest in, or right to the capacity of, the plant, works, system, facilities or property. "Project" also includes the acquisition of water and the acquisition, construction or operation of facilities for producing, treating, storing, transmitting, or distributing water.
66.0735(3)(a)(a)
Creation by contract. Any local governmental unit in this state may contract with one or more local governmental units in this state or federally recognized Indian tribes or bands located in the state to establish a separate governmental entity, to be known as a joint local water authority, to jointly produce, treat, store, transmit, distribute, purchase, sell or exchange water, in whole or in part for the benefit of the contracting parties. The parties to the contract may amend the contract as provided in the contract.
66.0735(3)(am)
(am)
Hearing requirements. At least 30 days before becoming a contracting party by entering into a contract under this subsection, a local governmental unit shall hold a public hearing on the proposed contract. Notice of the hearing shall be published as a class 3 notice under
ch. 985.
66.0735(3)(b)
(b)
Filing requirements. The parties entering into a contract under this subsection shall file a copy of the contract with the secretary of state. Upon receipt, the secretary of state shall record the contract and issue a certificate of incorporation stating the name of the authority and the date and fact of incorporation. The corporate existence of the authority begins upon issuance of the certificate.
66.0735(4)
(4) Contract. A contract establishing an authority under
sub. (3) shall specify all of the following:
66.0735(4)(a)
(a) The name and purpose of the authority and the functions or services to be provided by the authority. The name shall refer to the authority as an agency, authority or district.
66.0735(4)(b)
(b) The establishment and organization of a board of directors, in which all powers of the authority shall be vested. The contract may permit the board of directors to create an executive committee of the board of directors to which the board of directors may delegate any of its powers and duties, as specified by the board.
66.0735(4)(c)
(c) The number of directors, the manner of their appointment, the terms of their office, their compensation, if any, and the procedure for filling vacancies on the board of directors. The contracting parties shall appoint the members of the board of directors. Each contracting party shall be entitled to appoint an equal number of directors to the board of directors and may remove those directors at will.
66.0735(4)(d)
(d) The weight given to each director's vote. Unless specifically provided otherwise, each director's vote shall be given equal weight. If the contract provides for differing weights to be given to each director's vote, the contract shall specify the manner of calculating the weight to be given to each director's vote.
66.0735(4)(e)
(e) The manner of selection of the officers of the authority and their duties.
66.0735(4)(f)
(f) The voting requirements for action by the board of directors. Unless specifically provided otherwise, a majority of the authorized directors constitutes a quorum of the board of directors. Unless specifically provided otherwise, a majority of the voting power present is necessary for any action to be taken by the board of directors.
66.0735(4)(g)
(g) The duties of the board of directors, including the obligation to comply with this section and the laws of this state and with the terms of the contract under this subsection.
66.0735(4)(h)
(h) The manner in which additional local governmental units and Indian tribes or bands located in the state may become parties to the contract by amendment.
66.0735(4)(i)
(i) Provisions for the disposition, division or distribution of any property or assets of the authority on dissolution.
66.0735(4)(j)
(j) The term of the contract and the method, if any, of terminating or rescinding the contract. The term of the contract may be a definite period or it may be until rescinded or terminated. The contract may not be rescinded or terminated so long as the authority has bonds outstanding, unless provision for full payment of such bonds, by escrow or otherwise, has been made pursuant to the terms of the bonds or the resolution, trust indenture or security instrument securing the bonds.
66.0735(4)(k)
(k) The manner in which the contracting parties shall resolve any disputes.
66.0735(5)
(5) Powers. The authority may do all of the following:
66.0735(5)(a)
(a) Plan, develop, acquire, construct, reconstruct, operate, manage, dispose of, participate in, maintain, repair, extend or improve one or more projects within the state, either solely or in conjunction with any other person.
66.0735(5)(c)
(c) Buy or sell interest in, or rights to the capacity of, projects.
66.0735(5)(d)
(d) Produce, treat, store, transmit, distribute, purchase, sell or exchange water in such amounts as the board of directors determines to be necessary and appropriate, subject to the limitations in this paragraph. An authority may not sell water at retail. An authority may not sell any water to a person other than a contracting party, except pursuant to an emergency services contract. An authority may enter into an emergency services contract to sell water at wholesale to a person other than a contracting party in emergency situations, to be specified in the contract.
66.0735(5)(e)
(e) Acquire, own, hold, use, lease as lessor or lessee, sell or otherwise dispose of, mortgage, pledge, or grant a security interest in any real or personal property, commodity or service.
66.0735(5)(f)
(f) Acquire property by condemnation using the procedure under
s. 32.05 or
32.06 for the purposes set forth in this section.
66.0735(5)(g)
(g) Enter upon any state, county or municipal street, road or alley, or any public highway for the purpose of installing, maintaining and operating the authority's facilities. Whenever the work is to be done in a state, county or municipal highway, street, road or alley, the public authority having control thereof shall be duly notified, and the highway, street, road or alley shall be restored to as good a condition as existed before the commencement of the work with all costs incident to the work to be borne by the authority.
66.0735(5)(h)
(h) Install and maintain, without compensation to the state, any part of the authority's facilities over, upon or under any part of the bed of any river or of any land covered by any of the navigable waters of the state, the title to which is held by the state, and over, upon or under canals or through waterways. This paragraph does not relieve the authority of its obligation to obtain any permits or approvals otherwise required by law.
66.0735(5)(i)
(i) Require contracting parties to purchase water from the authority and to connect any contracting party's distribution system with the authority's distribution system.
66.0735(5)(j)
(j) Fix, maintain and revise fees, rates, rents and charges for functions, services, facilities or commodities provided by the authority.
66.0735(5)(k)
(k) Make, and from time to time amend and repeal, bylaws, rules and regulations to carry into effect the powers and purposes of the authority.
66.0735(5)(L)
(L) Join an organization, if the board of directors determines that membership is beneficial to accomplishment of the authority's purposes.
66.0735(5)(p)
(p) Incur debts, liabilities or obligations including the borrowing of money and the issuance of bonds, secured or unsecured, under
sub. (9) (b).
66.0735(5)(q)
(q) Invest any funds held in reserve or sinking funds, or any funds not required for immediate disbursement, including the proceeds from the sale of any bonds, in such obligations, securities and other investments as the authority deems proper in accordance with
s. 66.04 (2).
66.0735(5)(r)
(r) Do and perform any acts and things authorized by this section under, through or by means of an agent or by contracts with any person.
66.0735(5)(s)
(s) Exercise any other powers that the board of directors considers necessary and convenient to effectuate the purposes of the authority.
66.0735(6)
(6) Public character. An authority is a political subdivision and body public and corporate of the state, exercising public powers, separate from the contracting parties. It has the duties, privileges, immunities, rights, liabilities and disabilities of a public body but does not have taxing power.
66.0735(7)(a)(a)
Definition. In this subsection, "purchase of water" includes any right to capacity or interest in any project.
66.0735(7)(b)
(b)
Payments for commodities and services. The contracting parties may agree to pay the authority funds for commodities to be procured or services to be rendered by the authority. The agreement may also provide for payments in the form of contributions to defray the cost of any purpose set forth in the contract under
sub. (4) or the agreement and, subject to repayment by the authority, for advances for any purpose set forth in the contract under
sub. (4) or the agreement.
66.0735(7)(c)
(c)
Purchase agreements. The contracting parties may enter into purchase agreements with the authority for the purchase of water. Purchase agreements may include the following provisions:
66.0735(7)(c)1.
1. A provision requiring the purchaser to make payments in amounts that are sufficient to enable the authority to meet its expenses, interest and principal payments, whether at maturity or upon debt service fund redemption, for its bonds, reasonable reserves for debt service, operation and maintenance and renewals and replacements and the requirements of any rate covenant with respect to debt service coverage contained in any resolution, trust indenture or other security instrument.
66.0735(7)(c)2.
2. A provision requiring the purchaser to pay for water regardless of whether water is delivered to the purchaser or whether any project contemplated by any such agreement is completed, operable or operating, and notwithstanding suspension, interruption, interference, reduction or curtailment of the output of the project.
66.0735(7)(c)3.
3. A provision requiring that, if one or more of the purchasers defaults in the payment of its obligations under a purchase agreement, the remaining purchasers shall accept and pay for, and shall be entitled proportionately to use or otherwise dispose of, the water that was to have been purchased by the defaulting purchaser.
66.0735(7)(c)4.
4. A provision providing for a term for the purchase agreement. The term may be for the life of a project, for an indefinite period or for any other term.
66.0735(7)(c)5.
5. Other terms and conditions that the authority and the purchasers determine.
66.0735(7)(d)
(d)
Status of obligations under a purchase agreement. To the extent that a purchase agreement with an authority provides that the obligations of a contracting party under the purchase agreement are special obligations of the contracting party, payable solely from the revenues and other moneys derived by the contracting party from its water utility, these obligations are not debt of the contracting party and shall be treated as operation and maintenance expenses of a water utility.
66.0735(8)(a)(a) An authority may not issue bonds for the construction of a project until the commission has certified that public convenience and necessity require the project. A project need not be certified as being required by public convenience and necessity if no bonds are issued for the project. The commission may promulgate rules regarding the making of certifications of public convenience and necessity under this subsection.
66.0735(8)(b)
(b) The commission may refuse to certify a project under
par. (a) if it appears that the completion of the project will do any of the following:
