§ 401-51. Withdrawal of member municipality

A member municipality may withdraw from the District upon the terms and conditions specified in this section:

(1) Withdrawal during a period of 12 months from the establishment of the District.

(A) The Board of Supervisors shall not enter into any long-term contract (meaning for a term of more than 12 months) or call a special meeting on incurring long-term debt for a period of 12 months from the date the District becomes a body politic and corporate.

(B) A vote of withdrawal taken after the District has become a body politic and corporate but less than 12 months after that date shall be null and void.

(C) After the expiration of 12 months from the date the District becomes a body politic and corporate, a member municipality may vote to withdraw in the manner set forth in this section. If a majority of the voters of a member municipality present and voting at a meeting duly warned for such purpose shall vote to withdraw from the District, the vote shall be certified by the clerk of that municipality and presented to the Board of Supervisors. Thereafter, the Board shall give notice to the remaining member municipalities of the vote to withdraw, and shall hold a meeting to determine if it is in the best interests of the District to continue to exist. Representatives of the member municipalities shall be given an opportunity to be heard at such meeting, together with any other interested persons. After such a meeting, the Board of Supervisors may declare the District dissolved immediately or as soon thereafter as the financial obligations of the District and of each member municipality have been satisfied, or it may declare the District shall continue to exist despite the withdrawal of such member municipality. The membership of the withdrawing municipality shall terminate as soon after such vote to withdraw as the financial obligations of said withdrawing municipality have been paid to the District.

(2) Withdrawal after District bond vote or entry into long-term contract.

(A) Notwithstanding subdivision (1)(C) of this section, if a member municipality votes to withdraw after the District has voted to bond itself for construction and improvements or to enter a long-term contract, as defined in section 36 of this chapter, the Board of Supervisors shall hold a meeting to determine if it is in the best interests of the District to continue to exist only after the municipality proposing to withdraw has submitted a plan to the Board of Supervisors which shall at a minimum provide:

(i) that the withdrawing municipality shall continue to be jointly and severally liable with the other member municipalities of the District for all such bonded indebtedness and any long-term contract, as well as any temporary loans in anticipation of the sale of such bonds or receipt of grants-in-aid under 24 V.S.A. § 1773.

(ii) that the withdrawing municipality shall, at least 10 days before any payment is due from the District on such bonded indebtedness, or on any such long-term contract or temporary loan, pay to the District a percentage of such District payment determined on the basis of relative quantities of solid waste disposed of by each member municipality (including the withdrawing municipality) in the calendar year immediately prior to the vote of withdrawal if in the judgment of the Board, those quantities can be adequately determined, or, on the basis of population determined as published by the Department of Health, most immediately prior to the vote of withdrawal, should the Board conclude that such relative waste quantities cannot be adequately determined.

(iii) that the withdrawing municipality shall pay a share of each assessment levied under subsection 33(c) of this chapter and due under section 34 of this chapter. Such share of each assessment shall be based upon the same percentage utilized in subdivision (ii) of this subdivision (A), and shall be due and payable on the dates specified by the Board in section 34.

(iv) that the withdrawing municipality shall comply with all the provisions of the plan and pay all reasonable attorney's fees and other costs incurred by the District as a result of any default in making a payment when due, and that the full faith and credit of such municipality shall be pledged to making all payments where due.

(B) The plan shall be executed by a majority of the legislative body of the withdrawing municipality, or a person duly authorized by the legislative body, and shall be accompanied by the certification of the clerk of such municipality that at the meeting when the vote of withdrawal occurred, the voters of such municipality also voted to authorize the legislative body to execute and file a plan pursuant to this subdivision (2) with the Board of Supervisors, and further certifying that the time for petitioning to rescind such vote has passed, and no petition to rescind has been filed. Execution of the plan as set forth in this section shall constitute the municipality's agreement to comply with all the terms and conditions of the plan following withdrawal.

(C) Following the filing of such plan, and the meeting required by this section, the Board shall, unless it declares the District dissolved as provided in this section, permit such municipality to withdraw upon condition that it comply with all the terms of the plan.