CHAPTER 42. SEWERAGE AND NONPOTABLE

WATER TREATMENT FACILITIES

§9581. Operation and maintenance of sewerage facilities or nonpotable water treatment facilities in East Baton Rouge Parish; multiparty agreements; authorities

A.(1) If the governing authority of East Baton Rouge Parish determines the public need for management and operation of a pollution control facility in the form of a sewerage facility or nonpotable water treatment facility, it may:

(a) Enter into any necessary cooperative endeavor, partnership, joint venture, or other contractual relationship with any federal, state, or local government agency, or with any other public or private entity or any combination of the foregoing, for the purpose of maintaining or operating a sewerage facility or nonpotable water treatment facility, which contractual relationship shall be hereinafter referred to in this Section as an "agreement", provided that any contract with a private entity entered into pursuant to this Subparagraph shall be awarded pursuant to the provisions of Chapter 10 of Title 38 of the Louisiana Revised Statutes of 1950.

(b) Contract with a private entity for the delegation of any duties and responsibilities as the parish deems necessary to implement the provisions of this Section.

(c) Sell, lease, lease-leaseback, lease-purchase, transfer into a joint venture or partnership, or otherwise transfer any and all movable and immovable properties which are incidental to the collection, treatment, transmission, distribution, sale, or discharge of water, reclaimed water, bio-solids, and sewage in furtherance of the purpose of this Section, provided that any movable or immovable property subject to this Section shall not be sold, leased, lease-leased-back, lease-purchased, transferred into a joint venture or partnership, or otherwise transferred until construction of such property has been completed.

(2) Notwithstanding any thing contained within this Section to the contrary, the authorities and powers granted pursuant to this Section to the governing body of East Baton Rouge Parish shall not extend to the design of any pollution control facility subject to the provisions of this Section. Any power or authority granted pursuant to this Section shall not be a means of procuring, contracting, engaging, or otherwise obtaining services related to or in connection with or in furtherance of the construction, design, or engineering of any such pollution control facility.

(3) In its determination of the consideration to be given under the terms of a transaction or agreement authorized under this Subsection, the parish shall consider the potential value of the economic impact to its jurisdiction of the provision of a source of treated liquid or solid wastes and treated water as an industrial development inducement, in addition to the value of any movable or immovable properties involved in the transaction.

(4) The authority granted under this Section is expressly made notwithstanding any other provision of law to the contrary including specifically R.S. 41:1211 et seq. and R.S. 33:4712.

(5) The governing authority of East Baton Rouge Parish may determine the following:

(a) The extent the parish shares in any revenues derived from the sale of nonpotable water, bio-solids, or sewage from any facility operated by an entity with whom the political subdivision is associated through agreement or in any other manner.

(b) The level of risk which it may incur in the sale of treated water, bio-solids, or liquid wastes.

(c) The allocation of the depreciation of assets involved in the water facility or sewerage facility.

B. It is the intent of this Section to provide the parish the greatest latitude in the negotiation and consummation of such agreements in order to take advantage of rapidly changing business conditions. The parish may pledge or dedicate its revenues, including but not limited to fees, charges, and the proceeds of any sales and use tax collected on behalf of the parish for the payment of its obligations under any contract or other agreement entered into as authorized by this Section. Any such contract or pledge of revenues shall be authorized by appropriate ordinance or resolution, without the requirement of an election, approval, or ratification by the electorate or any state entity, except as may be required by the parish charter. However, such authorization shall be preceded by a public hearing having been advertised in the parish's official journal at least once and at least thirty days prior to adoption of the resolution or ordinance.

C. Any partnership, joint venture, or other entity which is formed pursuant to this Section shall have in its operation, maintenance, and collection activities for such sewerage facility or water facility as well as in the collection, transmission, and distribution activities incidental thereto, the same ad valorem and sales tax liability exemption as the parish. This exemption is subject to approval, as required, by the parish.

D. All immunity of the state of Louisiana from liability under antitrust law is hereby extended to the parish within the scope of grants of authority provided in this Section, and when so acting, the parish shall be presumed to be acting in furtherance of state policy.

E.(1) Any agreement entered into pursuant to this Section shall be limited in duration to a period not to exceed forty years, including any renewals thereof, and shall be considered a real right. Additionally, any asset of any party to any agreement authorized under this Section shall, upon the termination of the agreement, be transferred without costs other than nominal charges, free and clear of any encumbrance, to the parish. The provisions of this Subsection shall not apply to intellectual property or patents held by any entity participating in any agreement created pursuant to this Section unless expressly provided for in writing as part of the agreement.

(2) Any profits or other funds received by the governing authority of the parish pursuant to any contract or agreement entered into in accordance with the provisions of this Section shall be applied or used as follows:

(a) To the satisfaction of any obligations incurred by the governing body pursuant to the terms and conditions of any contract or agreement entered into pursuant to this Section.

(b) To the operation and maintenance of any sewerage and water system or pollution control facility within the jurisdiction of the governing body.

(c) To the retirement of any debt associated with any such systems or facilities, including but not limited to bonded indebtedness.

(d) Any excess funds remaining after the satisfaction of any and all obligations provided in this Paragraph may be used only for a public purpose specifically approved by a vote of the electorate.

F. For the purposes of this Section "sewerage facility" shall mean all systems, technologies, physical structures, buildings, and appurtenances for the collection, transmission, treatment, discharge, or distribution of nonpotable water, wastewater, treated wastewater, sewage, bio-solids, or reclaimed water.

G. The provisions of this Section shall be in addition to any power or authority granted to the parish by law, including but not limited to R.S. 33:4169(D), (E)(1) and (2), and (F). Furthermore, nothing contained in this Section shall be interpreted or construed to prevent any political subdivision otherwise empowered from exercising any power or authority granted at any time prior to or during either the design or construction phase of any facility described in this Section. Nor shall any thing in this Section be interpreted or construed to prevent a party involved in the design or construction of any such facility from subsequently engaging in the operation or maintenance of the completed facility pursuant to a separate contractual agreement.

Acts 2006, No. 781, §1.