CHARTER: IX. RELATED LAWS

TITLE IX. RELATED LAWS

ARTICLE 93. GENERAL REVISION OF ORDINANCES OF THE CITY OF BURLINGTON

401 Revisions effective without publication.

The ordinances contained in any general revision of the ordinances of the City of Burlington shall take effect upon the passage of said ordinances by the city council of said city, without publication in a newspaper.

402—404 [Reserved.].

ARTICLE 94. BENEFIT SYSTEM FOR CITY EMPLOYEES AND APPOINTIVE OFFICERS IN LIEU OF THE PRESENT RETIREMENT AND PENSION PROVISIONS OF SAID CITY CHARTER

405 Authority to establish system.

The city council of the City of Burlington is hereby authorized to establish and create a fund or funds for the purpose of providing, either for city employees or appointive officers of said city, or both, in lieu of all existing provisions of the charter of said city relating to the retirement of city employees and pension funds, one or more of the following:

(1) Retirement benefits on account of age,

(2) Retirement benefits prior to retirement age on account of accident incurred in the line of duty, and

(3) Death benefits.

Said fund or funds shall be available for benefits to such employees and appointive officers of the City of Burlington as the city council may hereafter from time to time designate by ordinance.

406 Authority to appoint boards and officers, appropriate funds, provide rate of contributions and designate sums payable.

The city council of said city is hereby authorized by ordinance to appoint and employ such boards and officers as may be necessary to administer, control and make expenditures from such fund or funds; to appropriate by ordinance or resolution funds from which such benefits and expenses incidental to the administration thereof may be paid; to provide by ordinance the rate of contributions, if any, to such fund or funds to be required of employees and appointive officers to be eligible to benefits therefrom; to designate by ordinance a retirement age for city employees and appointive officers beyond which age such employees may be removed from office and permanently retired; to establish by ordinance conditions and regulations under which such city employees and appointive officers may or shall be removed from office and retired; to designate and establish by ordinance the sums which may be paid to such city employees as benefits and the conditions of payment thereof, and to make, amend or repeal such ordinances as may be convenient or necessary to create, manage and operate a fund or funds for the payment to city employees and appointive officers of retirement, disability and death benefits, or any one or more of them.

407 Direction to budget funds for system.

The city council of said city shall provide in the annual budget, beginning with the annual budget next following the due enactment and publication of an ordinance providing for such retirement benefits, disability benefits and death benefits, or any one or more of them, for city employees and appointive officers, or for either class, and for necessary boards and officers to administer and control such retirement fund or funds and the terms and conditions under which such employees and officers, or either of said classes, may be retired and receive said benefits, an appropriation to any one or more of said funds as may be necessary to meet the required demands thereunder that are not otherwise provided for, and said city council shall annually, assess, beginning with the annual property and poll tax assessments next following the first such appropriation made, a special tax on both the property grand list and the taxable polls to provide the funds required for such appropriation.

408 Existing provisions to remain valid until new provisions adopted.

The existing retirement and pension provisions of the city charter of said city shall remain in force and effect until the powers granted by this article are exercised by the city council by the due enactment of an ordinance for that purpose, and such existing retirement and pension provisions of said charter shall, upon the due enactment of such ordinance, be void and of no force and effect, except as to persons theretofore duly retired and pensioned under said provisions, and as to such persons, said existing charter provisions shall remain in force.

409—414 [Reserved.].

ARTICLE 95. AUTHORITY TO CONSTRUCT OR OTHERWISE ACQUIRE AND MAINTAIN AND OPERATE AN ELECTRIC PLANT AND A GAS PLANT

415 Authority to construct and maintain an electric plant.

(a) The City of Burlington is hereby authorized and empowered to construct and maintain an electric plant for the purpose of lighting the streets, walks, public grounds and public buildings of the city, and may furnish electric lights and electric power to parties residing within or without the corporate limits of said city upon such terms and subject to such regulations as are provided by law or may be lawfully agreed upon between the contracting parties, subject to the jurisdiction of the public service commission.

(b) Said city is also authorized and empowered to purchase, hold, maintain and operate from time to time for said purposes, either as an extension, addition and improvement of the present electric and power plant now owned and operated by said city, and as an addition to the business of the present plant, or as a separate unit, any existing electric or power plant and the lands, buildings, equipment, distribution system, franchises, rights-of-way, business and goodwill of any such plant now owned or operated by a public utility corporation or individual, or any portion of any such property and business, and may from time to time construct such additions and improvements to said present plant and distribution system of the city and acquire additional lands and buildings for that purpose, as, in the judgment of the city council, may be required or justified by the growth and development of the business.

416 Authority to construct, maintain and operate a gas-generating and distribution plant.

(a) The City of Burlington is hereby authorized and empowered to construct, maintain and operate a plant for the generation and distribution of manufactured gas and may furnish such gas within and without the corporate limits of the city to corporations and individuals for domestic and other purposes upon such terms as are provided by law or may be lawfully agreed upon between the contracting parties, subject to the jurisdiction of the public service commission.

(b) For the purpose of acquiring, holding, maintaining and operating such gas plant and distribution system for the distribution and sale of manufactured gas to corporations and individuals within and without the city limits, said city is also authorized and empowered to purchase, hold, maintain and operate any existing gas plant, gas distribution system, rights-of-way and franchises held and used in connection therewith, and the gas business of any corporation or individual owned and operated in connection with such plant, and the goodwill of such business, or any part of such plant, distribution system, franchises, rights-of-way, business and goodwill.

(c) Said city may from time to time enlarge and improve such plant and distribution system as the growth and development of the business, in the judgment of the city council, may require, and for that purpose may from time to time either construct such enlargements and improvements or purchase the same when available.

417 Authority to acquire property for purposes of sections 415 and 416 of this Charter.

For any and all of the purposes set forth in sections 415 and 416 of this Charter, said city may acquire and hold within and without the limits thereof by gift, grant, purchase, or by the right of eminent domain, such lands, water powers and rights-of-way as may be needed for the construction, maintenance and operation of such electric plant and any and all required enlargements and improvements thereof from time to time, including enlargements and improvements of the present electric plant of said city, and also such lands and rights-of-way as may be needed for the construction, maintenance and operation, and for the required enlargement and improvement from time to time of such gas plant and gas distribution system and may use any public street which it may be necessary and desirable to pass through with the poles, wires and conduits of such electric plant, or with the distribution mains and equipment of such gas plant, provided the use of such highway for purposes of public travel is not thereby unnecessarily impaired, and further provided that said city may not exercise the right of eminent domain to acquire any existing property or rights owned and used by any existing public utility company or by any individual for public utility purposes.

418 Authority to sell services, merchandise and equipment incidental to use of electricity or gas.

(a) Said city, when engaged in the business of distributing and selling electricity or gas, is hereby authorized and empowered, as part of such business, to engage in the sale, installation and servicing of such merchandise and equipment as is incidental or auxiliary to the use of electricity or gas or necessary to properly serve the interests of its customers and to promote the sale and use of electricity or gas.

(b) And all acts heretofore done by said city and any of its officers and employees in connection with the sale, installation or servicing of such merchandise and equipment are hereby confirmed and made valid to the same extent as though this article had then been in effect.

419 Operation of gas business.

Whenever said city does acquire any gas plant, gas distribution system, business and goodwill (hereinafter referred to as the gas business) in accordance with the foregoing sections, such gas business shall be operated and maintained as a separate unit with separate accounting insofar as practicable, and shall be controlled, managed, operated and maintained by the light department and the officers thereof as part of that department, and all provisions of the city charter relating to the operation and maintenance of the light department and the duties of the officers thereof and not inconsistent with any section of this article shall apply to such gas business.

420 Procedure for exercising eminent domain right.

In exercising the right of eminent domain to acquire any property or some easement or other limited right in property required by the city for the purposes authorized by this article, said city shall proceed by petition to the Public Service Commission and in the same manner and by the same process as provided in Chapter 242 of the Public Laws for the condemnation of property by public service corporations other than railroads and the Public Service Commission shall have all and the same powers and perform all and the same duties in hearing and determining the matter, rendering judgment and making findings as in the case of such public utility corporations. Any party who feels himself aggrieved by such judgment or findings shall have the same right of appeal with the same incidents thereof as provided by Section 5969 of the Public Laws in the case of condemnation proceedings by a public service corporation. In exercising its right to use public highways, said city shall have the same rights and be subject to the same restrictions as prescribed for towns in Chapter 259 of the Public Laws.

421 Issuance of bonds authorized.

In case of any purchase which the city council may approve and determine to make of any existing electric or gas plant and distribution system and any gas or electric business and the goodwill thereof and any franchises and rights-of-way in connection with such business, said city council may by ordinance or resolution authorize the issuance of bonds for the purpose of providing funds for such purpose, and for the purpose of constructing improvements and additions to the present electric plant and system of said city and for the integration of the existing system with any system so acquired, and for the payment of all expenses incurred in connection with the issuance of such bonds and the acquisition and construction of such properties. Such bonds shall bear interest at not exceeding six per annum and shall be in such form and tenor and executed in such manner and shall be payable at such time or times as the city council shall determine and may be made registerable as to principal only, or as to both principal and interest. Such bonds shall state upon their face that they are payable solely from the revenues of the electric light system and gas plant and distribution system of said city, and said bonds shall not constitute general indebtedness of the city nor be an obligation or liability upon the city to pay the same from any funds of the city other than the revenues of said electric light plant and system and said gas plant and system, and said bonds shall not be within any statutory limitation upon the power of said city to issue bonds. Said bonds shall be sold at such time or times, and in such manner, and at such price or prices as the city council may determine. The ordinance or resolution authorizing the issuance of said bonds may contain covenants of the city to protect and safeguard the security and rights of the holders of said bonds, limiting the amount of additional bonds or obligations payable from said revenues which may be issued thereafter and the terms and conditions upon which said additional bonds or obligations may be issued; for the creation of a special fund into which all or any part of said revenues shall be paid and the terms and conditions on which such special fund is to be collected, held and disposed of; the establishment and maintenance of adequate rates and charges for electric energy and gas, and other services, facilities and commodities sold, furnished or supplied by said electric plant and system and gas plant and system; the operation, maintenance, management, accounting and auditing of the said electric plant and system and gas plant and system; the terms and conditions upon which the properties or any part thereof of said electric plant and system and said gas plant and system may be sold, mortgaged, leased or otherwise disposed of by the city and the use and disposition of the proceeds of any such sale, mortgage or lease; the pledging of all or any part of the revenues derived from the operation of said electric plant and system and gas plant and system to the payment of such bonds and the creation of special funds into which payment shall be made from said revenues for the purpose of providing for the payment of the principal of and interest on such bonds, and ample reserve funds therefor, and funds for working capital to be used in the operation of said electric plant and system and gas plant and system, and for renewals and replacements thereto, and such other covenants as may be deemed necessary to insure a successful and profitable operation of said electric plant and system and said gas plant and system. The provisions of this article and of any such ordinance or resolution authorizing bonds hereunder shall constitute a contract with the holders of such bonds and the provisions thereof shall be enforceable by any owner or holder of such bonds by mandamus or any other appropriate suit, action or proceeding at law or in equity in any court of competent jurisdiction.

422 Rates sufficient to pay for services and bonds to be charged.

(a) Whenever bonds are issued pursuant to this article, said city shall charge and collect adequate rates and charges for electric energy and for gas and all other services, facilities and commodities sold, furnished or supplied by the electric plant and system and gas plants and system sufficient to provide for the proper operation and maintenance of said systems and for the payment of the principal of and interest on all indebtedness payable from said revenues, and all other payments in connection therewith. All such revenues shall be paid into the city treasury in a special fund to be called the "Light Department Fund," and shall be subject to the covenants contained in any ordinance or resolution authorizing the issuance of bonds under this article.

(b) In no case shall funds collected from electric ratepayers be used to cross-subsidize or finance the repayment of any debt instrument used to fund the construction, operation or utilization of any new cable television, fiber optic cable, or other telecommunications network or telecommunications business, and the expenses from such enterprises may not be included in the cost of electric service, except to the extent that the city has utilized such funds directly for its own utility plant or electric services.

423 Bond issuance to be approved by voters.

The city council shall not issue any bonds under the provisions of this article for any of the purposes thereof unless previously authorized so to do by a majority of the legal voters of said city voting on the question at any annual or special city meeting duly warned for the purpose.

424—430 [Reserved].

ARTICLE 96. AUTHORITY TO IMPROVE, EXTEND, BETTER AND ADD TO ITS EXISTING ELECTRIC PLANT AND TO FINANCE THE COST THEREOF THROUGH THE ISSUANCE OF REVENUE BONDS

431 Definitions.

The following terms when used in this article shall have the following meaning:

(1) The term "city" shall mean the City of Burlington.

(2) The term "electric plant" shall mean the complete municipal electric generating, transmission and distribution system now owned by the city, together with any improvements thereto hereafter constructed or acquired, and the complete municipal natural, manufactured or synthetic gas generating, transmission and distribution system now or hereafter owned by the city, together with any improvements thereto hereafter constructed or acquired, and all other facilities, including those authorized by section 604 of Title 30, equipment and appurtenances necessary or appropriate to such system, for the furnishing of electric power and energy or gas for lighting, heating, power or any other purpose for which electric power and energy or gas can be used. Such term may include facilities for the production and distribution of steam and hot or chilled water, timberlands or other fuel sources, facilities for the production, processing, transportation and storage of fuel to be used in the production of utilities furnished by the city, facilities for the processing or disposal of solid waste involving the production of such utilities (with or without other by-products) from solid waste (with or without other fuels), and innovative or experimental facilities for the utilization of conventional or other energy sources for the production of such utilities, including pilot or demonstration facilities.

(3) The term "improvement" shall mean any improvement, extension, betterment, addition, alteration, reconstruction, extraordinary repair, equipping or re-equipping of the electric plant of the city.

(4) The term "electric service" shall mean the furnishing of the electric power and energy or gas for lighting, heating, power or any other purpose for which electric power and energy or gas can be used. Such term may include the furnishing of steam and hot or chilled water, and the processing or disposal of solid waste. Such term may also include ownership, operation and utilization of cable television, fiber optic cable and other telecommunications within the corporate limits of the city; provided that the city shall have no power under Chapter 79 of Title 30 to take by eminent domain telecommunications, cable television or natural gas property; and provided further that before the city may sell telecommunications or cable television services it shall obtain a certificate of public good under Section 231 of Title 30 from the public service board.

(5) The term "acquire" shall mean to purchase, to acquire by eminent domain, to lease, to construct, to reconstruct or to replace.

(6) The term "improve" shall mean to acquire any improvement.

(7) The term "bonds" shall mean any bonds, notes, interim certificates, debentures or other obligations issued by the city pursuant to this article and payable out of the revenues of the electric plant.

(8) The terms "revenues" and "revenues derived from electric service" shall mean all rates, fees, charges or other income received by the city, or accrued to the city, or any board or agency thereof in control of the management and operation of said electric plant, and all parts thereof, and may include, without limiting the generality of the foregoing, investment earnings, rentals, proceeds of insurance, condemnation or other disposition of plant assets and proceeds of borrowing hereunder.

432 Electric plant; improvement of.

The city is hereby authorized and empowered to improve its electric plant for the purpose of lighting the streets, walks, public grounds and buildings of the city, for the furnishing of electric or gas services within or without the corporate limits of the city and for production of electric energy or acquisition, production, transmission or distribution of gas for sale to electric or gas distribution companies, cooperative, municipal and privately owned, within or without the state.

433 Bonds; issuance of.

(a) The city is hereby authorized and empowered to issue negotiable bonds, from time to time, for the purpose of financing the cost of any improvement to the electric plant. Said bonds and the interest thereon shall be payable solely and exclusively from the revenues of the electric plant and shall not constitute general indebtedness of the city nor be an obligation or liability upon the city to pay the same from any funds of the city other than the revenues of the electric plant. No holder or holders of any bonds issued under this article shall ever have the right to compel any exercise of the taxing power of the city to pay said bonds or the interest thereon. Said bonds shall not constitute an indebtedness within the meaning of any debt limitation or restriction and shall not be within any statutory limitation upon the power of the city to issue bonds. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this article and that, it does not constitute an indebtedness of the city but is payable solely from the revenues of its electric plant. Said bonds may be authorized by resolution of the city council adopted by a majority vote of the members thereof present at any meeting of such board. Each such resolution shall take effect immediately from its passage and need not thereafter be laid over or published or posted. The issuance of bonds under the provisions of this article by the city shall not be subject to the authorization or approval thereof by the legal voters of the city or to any other authorization or approval except as provided in section 447 of this Charter.

(b) Said bonds may be issued in one or more series, may bear such date or dates, mature at such time or times not exceeding forty years from their respective dates, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, 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, be declared or become due before the maturity date thereof, as such resolutions authorizing their issuance may provide. Said bonds may be sold at public or private sale for such price or prices as the board of light commissioners shall determine.

(c) In case any officer of the city whose signature appears on any bond or coupon shall cease to be such officer before the delivery of such bond, such signature shall, nevertheless, be valid and sufficient for all purposes, the same as if he had remained in office until such delivery. Any provision of any law to the contrary notwithstanding any bonds issued pursuant to this article shall be deemed to be investment securities under the Uniform Commercial Code. Any bonds issued by the city pursuant to the provisions of this article are declared to be issued for an essential public and governmental purpose and to be public instrumentalities, and, together with interest and income thereon, shall be exempt from taxes. The resolution authorizing the issuance of said bonds may provide that the bonds shall contain a recital that they are issued pursuant to this article, which recital shall be conclusive evidence of their validity and of the regularity of this issuance.

434 Same—Payment of.

In order to secure the payment of any of the bonds, issued pursuant to this article, the interest thereon, or in connection with such bonds, the city shall have power as to such bonds, to the extent not inconsistent with the mandatory provisions of this article:

(1) To pledge all or any part of the revenues derived from electric or gas service.

(2) To provide for the terms, forms, registration, exchange, execution and authentication of such bonds.

(3) To provide for the replacement of lost, destroyed or mutilated bonds.

(4) To covenant as to the use and disposition of the proceeds from the sale of such bonds and as to the use and disposition of revenues, including, without limitation of the generality of the foregoing, the establishment of reserves for debt service or other capital or current expenses from bond proceeds or revenues or both.

(5) To covenant as to the rates and charges of the electric plant, provided that the city shall always collect revenues adequate at all times to provide for the proper operation and maintenance of the electric plant and for the payment of the principal of and interest on all bonds payable from said revenues and all other required payments in connection therewith.

(6) To redeem such bonds, and to covenant for their redemption, and to provide the terms and conditions thereof.

(7) To covenant and prescribe as to what happenings or occurrences shall constitute "events of default" and the terms and conditions upon which any or all of such bonds shall become or may be declared due before maturity and as to the terms and conditions upon which such declaration and its consequences may be waived.

(8) To covenant as to the rights, liabilities, powers and duties arising upon the breach by it of any covenant, conditions or obligations.

(9) To vest in a trustee or trustees the right to receive all or any part of the income and revenue pledged and assigned to, or for the benefit of, the holder or holders of bonds issued hereunder, and to hold, apply and dispose of the same and the right to enforce any covenant made to secure or pay or in relation to the bonds; to execute and deliver a trust agreement or trust agreements which may set forth the powers and duties and the remedies available to such trustee or trustees and limiting the liabilities thereof and describing what occurrences shall constitute "events of default" and prescribing the terms and conditions upon which such trustee or trustees or the holder or holders of bonds of any specified amount or percentage of such bonds may exercise such rights and enforce any and all such covenants and resort to such remedies as may be appropriate.

(10) To make covenants other than, and in addition to, the covenants herein authorized, of like or different character, necessary or advisable to effectuate the purposes of this article.

(11) To execute all instruments necessary or convenient in the exercise of the powers herein granted or in the performance of its covenants or duties.

435 Same—Pledge of revenues.

(a) Any pledge hereunder shall be valid and binding and shall be deemed continuously perfected for the purposes of the Uniform Commercial Code from the time when the pledge is made; unless otherwise provided in the resolution making the pledge, the pledge of revenues shall include 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 city, and the proceeds thereof; the revenues, rights and proceeds so pledged and then held or thereafter acquired by the city 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 as against all parties having claims of any kind in tort, contract or otherwise against the city, irrespective of whether such parties have notice thereof. The resolution by which a pledge is made need not be filed or recorded except in the records of the proceedings of the board of light commissioners and no filing need be made under the Uniform Commercial Code.

(b) A resolution pledging revenues hereunder may provide for priorities among payments to be made from such revenues, whether required by statute, the city charter, such resolution or otherwise. The pledge may include revenues otherwise accruing to particular funds established by statute or the city charter. In the event bonds are issued junior and subordinate to other bonds, revenues remaining from time to time which are permitted by the terms of the senior bonds to be used to pay or secure the junior bonds may be pledged for that purpose by the resolution under which the junior bonds are issued. A pledge of revenues under this article shall constitute a sufficient appropriation thereof for the purposes of any provision for appropriation and such revenues may be applied as required by the pledge without further appropriation.

436 Same—Refunding.

The city may issue refunding bonds for the purpose of paying any of its bonds issued hereunder at maturity or upon acceleration or redemption. The refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the city 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 a resolution under which bonds are issued. 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 city with respect thereto shall be governed by the provisions of this article relating to the issue of bonds other than refunding bonds insofar as the same may be applicable.

437 Same—Anticipation notes.

Unless otherwise provided in the authorizing proceedings, if bonds are authorized under this article, temporary notes may be issued in anticipation thereof. The board of light commissioners may delegate the sale of temporary notes to an officer or officers thereof. The principal of and interest on notes may be renewed or paid from time to time by the issue of other notes. Except as otherwise provided, notes issued under this section shall be governed by the provisions of this article relating to bonds insofar as the same may be applicable.

438 Same—Regulation.

(a) The public service board shall exercise its regulatory powers in such a manner as to permit the city to fulfill all of its obligations, including its obligations to the holders of the bonds issued hereunder.

(b) The public service board shall not be empowered to suspend the effective date of any change in the rates and charges of the city’s electric plant pending final determination as to the justness or reasonableness of such change, but the board may require that the city undertake to refund rates and charges collected in excess of those which are finally determined just and reasonable. Any increase in the rates and charges of the city’s electric plant shall be implemented by means of an identical percentage increase to each class or division of electric plant ratepayers under rate design tariffs previously approved by the public service board until such time as the public service board shall specifically approve an alteration in such rate design and corresponding tariffs.

(c) (1) If the city exercises its authority under subdivision 431(4) or section 449 of this title, the public service board, in considering any application for a certificate of public good, shall ensure that any and all losses from these businesses, and, in the event these businesses are abandoned or curtailed, any and all costs associated with investment in cable television, fiber optic, and telecommunications network and telecommunications business-related facilities, are borne by the investors in such business, and in no event are borne by the city’s taxpayers, the state of Vermont, or are recovered in rates from electric ratepayers.

(2) Any certificate of public good issued shall contain terms or conditions that are consistent with both the statutory requirements of Chapter 13 of Title 30 and the establishment of competitive neutrality between incumbents and new entrants, after the evaluation of factors that include, but are not limited to, the payment of pole attachment rental fees, and the provision of public access channels, equipment, and facilities.

439 Same—Rights of holders.

Any holder or holders of bonds, including a trustee or trustees for holders of such bonds, shall have the right in addition to all other rights:

(1) By mandamus or other suit, action or proceedings in any court of competent jurisdiction to enforce his or their rights against the city, the city council, the board of light commissioners, and any other proper officer, agent or employee of any of them, including, but without limitation, the right to require the city, the city council, the said board, and any proper officer, agent or employee of any of them, to fix and collect rates and charges adequate to carry out any agreement as to, or pledge or revenues, and to require the city, the city council, the said board and any officer, agent or employee of any of them to carry out any other covenants or agreements and to perform its and their duties under this article.

(2) By action or suit in equity to enjoin any acts or things which may be unlawful for a violation of the rights of such holder of bonds.

440 Same—Right of city.

(a) The city shall have power by resolution of its board of light commissioners to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees for such holders, the right in the event of an "event of default" as defined in such resolution or as may be defined in any agreement with the holder or holders of such bonds or the trustee or trustees therefor:

(1) By suit, action or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the electric plant or any part or parts thereof. If such receiver be appointed he may enter and take possession of such electric plant or any part or parts thereof and operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as the city itself might do and shall deposit such moneys in a separate account or accounts and apply the same in accordance with the obligations of the city as the court shall direct.

(2) By suit, action or proceeding in any court of competent jurisdiction to require the city to account as if it were the trustee of an express trust.

(b) Any such resolution shall constitute a contract between the city and the holders of bonds of such issue.

441 Rates; payment by municipal agencies.

The city council or other board or agency of the city operating the electric plant may charge the city and all departments, agencies, instrumentalities, officers or employers thereof for any electric service furnished to them, at the rate applicable to other customers taking service under similar conditions and the revenues so derived from any such service shall be treated as all other revenues of the electric plant. Notwithstanding the foregoing, special contracts for electric services may be entered into with another department, agency, or instrumentality of the city, provided that the public service board first reviews and approves the contract pursuant to the provisions of section 229 of Title 30.

442 Bonds; proceeds.

All moneys received from the issue of bonds (other than refunding bonds) shall be used solely to defray the cost of improving the electric plant of the city. The cost of improving the electric plant shall include all cost of acquisition, or improvement, including all preliminary expenses, the cost of acquiring all property, franchises, easements, and rights necessary or convenient therefor, engineering and legal expenses, expenses for estimates of costs and revenues, expenses for plans, specifications and surveys, other expenses incident or necessary to determining the feasibility or practicability of the enterprise, administrative expense, interest prior to and during the carrying out of any project and for a reasonable period thereafter, such reserves for debt service or other capital or current expenses as may be required by the ordinance or resolution under which the bonds are issued, and such other expenses as may be incurred in the financing herein authorized, the acquisition or improvement of the electric plant, the placing of such plant in operation, including the creation of a cash working fund, and the performance of the things herein required or permitted in connection therewith.

443 Energy conservation facilities.

The city is hereby authorized and empowered to provide or finance energy conservation facilities within the customer service area of its electric plant. The term "energy conservation facilities" includes facilities or improvements to facilities (whether owned by the city or by others) for load management or the conservation of electric or other energy. Such facilities or improvements may be owned or operated by the city as part of its electric plant or may be owned or operated by others, and may be leased or licensed by the city to others or may be financed by loans by the city to others. Such facilities or improvements may be treated as part of the electric plant and financed under this article or other enabling law. Loans to others for the purposes of this section may also be financed under this article in the same manner as improvements to the electric plant and receipts from such loans may be pledged under this article as revenues. A lending program initiated under the authority of this section shall be managed in accordance with the provisions of section 228 of this Charter relating to the electric plant.

444 Construction of article.

The powers conferred by this article shall be in addition and supplemental to the powers conferred by any other law. Bonds may be issued hereunder for the improvement of the electric plant of the city notwithstanding that any other law may provide for the issuance of bonds for like purposes and without regard to the requirements, restrictions or procedural provisions contained in any other law. Any proceedings heretofore taken by the city relating to the subject matters of this article, whether or not commenced under any other law, may, at the option of the city council, be discontinued and new proceedings instituted under this article. It shall not be necessary for the city proceeding under this article to obtain a certificate of convenience or necessity, franchise, license, permit or other authorization or approval from any bureau, board, commission or other instrumentality of the State of Vermont or the city in order to acquire or improve the electric plant or for the issuance of bonds in connection therewith hereunder.

445 Same.

This article is remedial in nature and the powers hereby granted shall be liberally construed to effectuate the purposes hereof, and to this end the city shall have power to do all things necessary or convenient to carry out the purposes hereof in addition to the powers expressly conferred in this article.

446 Same; invalidity.

It is hereby declared that the sections, clauses, sentences and parts of this article are severable, are not matters of mutual essential inducement, and any of them shall be exscinded if this article would otherwise be unconstitutional or ineffective; it is the intention to confer upon the city the whole or any part of the powers in this article provided for, and if any one or more sections, clauses, sentences and parts of this article shall for any reason be questioned in any court, and shall be adjudged unconstitutional or invalid, such judgment shall not affect, impair or invalidate the remaining provisions thereof, but shall be confined in its operation to the specific provision or provisions so held unconstitutional or invalid, and the inapplicability or invalidity of any section, clause, sentence or part of this article in any one or more instances shall not be taken to affect or prejudice in any way its applicability or validity in any other instance.

447 Ratification.

(a) Notwithstanding the foregoing provisions of this article, and except as provided in subsection (b) of this section, no bonds shall be issued under this article unless and until more than fifty percent of the legal voters of the city present and voting thereon at any annual or special city meeting duly warned for that purpose shall have first voted to authorize the project or improvement for which such bonds are to be issued. The warning shall describe in general terms such project or improvement, shall estimate its cost, and shall state the amount of bonds proposed to be issued to finance it.

(b) The city may issue bonds under this article without voter approval (1) to pay the costs of (A) the completion of a project or improvement previously authorized by the voters of the city, provided that such costs of completion do not exceed by more than fifty percent the estimated cost of the city’s share of the project or improvement as set forth in the warning submitting the question to the voters, and (B) repairs, alterations or other improvements necessary to maintain the operational status of any facilities of the electric plant, whether necessitated by casualty, regulatory or licensing requirements, or other cause; or (2) in the case of jointly owned facilities not controlled by the city, to pay the city’s share of the costs of improvements which the lead participants are empowered to make; or (3) for refunding as provided in section 436 of this Charter.

448 Powers exercised through city council.

The powers granted to the city hereunder shall be exercised by its city council, notwithstanding the provisions of section 228 of this Charter. No provisions hereof or of said section 228 of this Charter shall be deemed to permit the exercise of any power in violation of the rights of bond or note holders.

449 Authority for joint venture for telecommunications.

In addition to the authority granted under otherwise applicable law, the city has the power and is authorized to establish a joint venture or any other business relationship with one or more third parties to provide telecommunications or cable television services within or without the corporate limits of the city; provided that before such joint venture or business relationship may sell telecommunications or cable television services, it shall obtain whatever regulatory approvals are necessary, and shall pay all taxes, franchise fees, and similar charges assessed by the city on an incumbent.

450—500 [Reserved.].

ARTICLE 97. ELECTRIC REVENUE BONDS

501 City of Burlington Utility Facilities; taxation of.

Section 3659 of Title 32 shall not apply to land, buildings and other facilities of the City of Burlington used for the generation of electric energy. Such land, buildings and facilities owned by the City of Burlington and situated outside of its territorial limits shall be taxed by the municipality in which it is located either in the manner provided for privately owned property, or pursuant to a contract entered into by the municipalities providing for any mutually agreeable methods and amounts of taxation.

502—505 [Reserved.].

ARTICLE 98. THE BURLINGTON WATERWORKS SYSTEM

506 Definitions.

The following terms when used in this article shall, unless the context otherwise requires, have the following meanings:

(1) "Bonds" means any bonds, notes or other obligations of the city issued pursuant to this article.

(2) "City" means the city of Burlington.

(3) "Improvement" means any improvement, extension, betterment, addition, alteration, reconstruction, extraordinary repair, equipping or reequipping of the waterworks or wastewater system of the city.

(4) "Revenues" means all rates, fees, charges and other receipts derived from the ownership or operation of the city’s waterworks or wastewater system and may include, without limiting the generality of the foregoing, investment earnings and the proceeds of insurance, condemnation, sale or other disposition of system assets and proceeds of borrowing hereunder.

(5) "System" means the waterworks system or the wastewater system.

(6) "Wastewater system" means the complete wastewater treatment and collection system now owned by the city, including all treatment plants and sanitary sewer lines, together with any improvements thereto hereafter constructed or acquired.

(7) "Waterworks system" means the complete water supply, treatment and distribution system now owned by the city, together with any improvements thereto hereafter constructed or acquired.

507 Bonds; issuance of.

The city is hereby authorized and empowered to issue bonds, from time to time, for the purpose of financing the cost of any improvement to the waterworks or wastewater system. The bonds and the interest thereon shall be payable solely and exclusively from the revenues of the waterworks or wastewater system as the case may be and shall not constitute general indebtedness of the city nor be an obligation or liability upon the city to pay the same from any funds of the city other than the revenues of the system. No holder or holders of any bonds issued under this article shall ever have the right to compel any exercise of the taxing power of the city to pay the bonds or the interest thereon. The bonds shall not constitute an indebtedness within the meaning of any debt limitation or restriction and shall not be within any statutory limitation upon the power of the city to issue bonds. It shall be plainly stated on the face of each bond that it does not constitute an indebtedness of the city but is payable solely from the revenues of its waterworks or wastewater system. The bonds may be authorized by resolutions of the board of public works commissioners. Notwithstanding the foregoing sentence, no bonds other than refunding bonds shall be authorized or issued under this article unless and until more than fifty percent of the legal voters of the city present and voting thereon at any annual or special city meeting duly warned for that purpose shall have first voted to authorize the project or improvement for which the bonds are to be issued. The warning shall describe in general terms the project or improvement, shall estimate its costs, and shall state the amount of bonds proposed to be issued to finance it. Except for purposes of refunding pursuant to section 508 of this Charter, the city shall not issue bonds in excess of the amount set forth in the warning as aforesaid unless and until more than fifty percent of the legal voters of the city present and voting at any annual or special meeting duly warned for that purpose shall have first voted to authorize the issuance of additional bonds for any previously authorized project or improvement.

508 Refunding.

The city, upon the approval of the board of public works commissioners and the city council, may issue refunding bonds for the purpose of paying any of its bonds issued hereunder at maturity or upon acceleration or redemption. No affirmative vote of the registered voters shall be necessary to authorize the issuance of refunding bonds. The refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the city 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 the 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 the refunding bonds, as may be required by the resolutions under which bonds are issued. Except as herein specified, 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 city with respect thereto shall be governed by the provisions of the Burlington city charter and the Vermont statutes relating to the issue of bonds other than refunding bonds insofar as the same may be applicable. In the event of any conflict between the city charter and the Vermont statutes in this regard, the city is hereby authorized to act pursuant to the more extensive grant of authority.