§ 5607.  PURPOSES AND POWERS.
 (A)  SCOPE OF PROJECTS PERMITTED.--EVERY AUTHORITY
INCORPORATED UNDER THIS CHAPTER SHALL BE A BODY CORPORATE AND
                16  POLITIC AND SHALL BE FOR THE PURPOSES OF: FINANCING WORKING
                17  CAPITAL; ACQUIRING, HOLDING, CONSTRUCTING, IMPROVING,
                18  MAINTAINING AND OPERATING, OWNING OR LEASING, EITHER IN THE
                19  CAPACITY OF LESSOR OR LESSEE, PROJECTS OF THE FOLLOWING KIND AND
                20  CHARACTER; AND PROVIDING FINANCING FOR INSURANCE RESERVES:
                21         (1)  EQUIPMENT TO BE LEASED BY AN AUTHORITY TO THE
                22     MUNICIPALITY OR MUNICIPALITIES THAT ORGANIZED IT OR TO ANY
                23     MUNICIPALITY OR SCHOOL DISTRICT LOCATED WHOLLY OR PARTIALLY
                24     WITHIN THE BOUNDARIES OF THE MUNICIPALITY OR MUNICIPALITIES
                25     THAT ORGANIZED IT.
                26         (2)  BUILDINGS TO BE DEVOTED WHOLLY OR PARTIALLY FOR
                27     PUBLIC USES, INCLUDING PUBLIC SCHOOL BUILDINGS, AND
                28     FACILITIES FOR THE CONDUCT OF JUDICIAL PROCEEDINGS AND FOR
                29     REVENUE-PRODUCING PURPOSES.
                30         (3)  TRANSPORTATION, MARKETING, SHOPPING, TERMINALS,
                20010S0780B1186                 - 58 -
 
 

                 1     BRIDGES, TUNNELS, FLOOD CONTROL PROJECTS, HIGHWAYS, PARKWAYS,
                 2     TRAFFIC DISTRIBUTION CENTERS, PARKING SPACES, AIRPORTS AND
                 3     ALL FACILITIES NECESSARY OR INCIDENT THERETO.
                 4         (4)  PARKS, RECREATION GROUNDS AND FACILITIES.
                 5         (5)  SEWERS, SEWER SYSTEMS OR PARTS THEREOF.
                 6         (6)  SEWAGE TREATMENT WORKS, INCLUDING WORKS FOR TREATING
                 7     AND DISPOSING OF INDUSTRIAL WASTE.
                 8         (7)  FACILITIES AND EQUIPMENT FOR THE COLLECTION, REMOVAL
                 9     OR DISPOSAL OF ASHES, GARBAGE, RUBBISH AND OTHER REFUSE
                10     MATERIALS BY INCINERATION, LANDFILL OR OTHER METHODS.
                11         (8)  STEAM HEATING PLANTS AND DISTRIBUTION SYSTEMS.
                12         (9)  INCINERATOR PLANTS.
                13         (10)  WATERWORKS, WATER SUPPLY WORKS, WATER DISTRIBUTION
                14     SYSTEMS.
                15         (11)  FACILITIES TO PRODUCE STEAM WHICH IS USED BY THE
                16     AUTHORITY OR IS SOLD ON A CONTRACT BASIS FOR INDUSTRIAL OR
                17     SIMILAR USE OR ON A SALE-FOR-RESALE BASIS TO ONE OR MORE
                18     ENTITIES AUTHORIZED TO SELL STEAM TO THE PUBLIC, PROVIDED
                19     THAT SUCH FACILITIES HAVE BEEN APPROVED BY RESOLUTION OR
                20     ORDINANCE ADOPTED BY THE GOVERNING BODY OF THE MUNICIPALITY
                21     OR MUNICIPALITIES ORGANIZING SUCH AUTHORITY AND THAT THE
                22     APPROVAL DOES NOT OBLIGATE THE TAXING POWER OF THE
                23     MUNICIPALITY IN ANY WAY.
                24         (12)  FACILITIES FOR GENERATING SURPLUS ELECTRIC POWER
                25     WHICH ARE RELATED TO INCINERATOR PLANTS, DAMS, WATER SUPPLY
                26     WORKS, WATER DISTRIBUTION SYSTEMS OR SEWAGE TREATMENT PLANTS
                27     PURSUANT, WHERE APPLICABLE, TO SECTION 3 OF THE FEDERAL POWER
                28     ACT (41 STAT. 1063, 16 U.S.C. § 796) AND SECTION 210 OF THE
                29     PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978 (PUBLIC LAW
                30     95-617, 16 U.S.C. § 824A-3) OR TITLE IV OF THE PUBLIC UTILITY
                20010S0780B1186                 - 59 -
 
 

                 1     REGULATORY POLICIES ACT OF 1978 (PUBLIC LAW 95-617, 16 U.S.C.
                 2     §§ 2701 TO 2708), IF:
                 3             (I)  ELECTRIC POWER GENERATED FROM THE FACILITIES IS
                 4         SOLD OR DISTRIBUTED ONLY ON A SALE-FOR-RESALE BASIS TO
                 5         ONE OR MORE ENTITIES AUTHORIZED TO SELL ELECTRIC POWER TO
                 6         THE PUBLIC;
                 7             (II)  THE FACILITIES HAVE BEEN APPROVED BY RESOLUTION
                 8         OR ORDINANCE ADOPTED BY THE GOVERNING BODY OF THE
                 9         MUNICIPALITY OR MUNICIPALITIES ORGANIZING THE AUTHORITY
                10         AND THE APPROVAL DOES NOT OBLIGATE THE TAXING POWER OF
                11         THE MUNICIPALITY IN ANY WAY; AND
                12             (III)  THE INCINERATOR PLANTS, DAMS, WATER SUPPLY
                13         WORKS, WATER DISTRIBUTION SYSTEMS OR SEWAGE TREATMENT
                14         PLANTS ARE OR WILL BE LOCATED WITHIN OR CONTIGUOUS WITH A
                15         COUNTY IN WHICH AT LEAST ONE OF THE MUNICIPALITIES
                16         ORGANIZING THE AUTHORITY IS LOCATED, EXCEPT THAT THIS
                17         SUBPARAGRAPH SHALL NOT APPLY TO INCINERATOR PLANTS, DAMS,
                18         WATER SUPPLY WORKS, WATER DISTRIBUTION SYSTEMS OR SEWAGE
                19         TREATMENT PLANTS LOCATED IN ANY COUNTY WHICH HAVE BEEN OR
                20         WILL BE CONSTRUCTED BY OR ACQUIRED BY THE AUTHORITY TO
                21         PERFORM FUNCTIONS, THE PRIMARY PURPOSES OF WHICH ARE
                22         OTHER THAN THAT OF GENERATION OF ELECTRIC POWER, FOR
                23         WHICH THE AUTHORITY HAS BEEN ORGANIZED.
                24         (13)  SWIMMING POOLS, PLAYGROUNDS, LAKES AND LOW-HEAD
                25     DAMS.
                26         (14)  HOSPITALS AND HEALTH CENTERS.
                27         (15)  BUILDINGS AND FACILITIES FOR PRIVATE, NONPROFIT,
                28     NONSECTARIAN SECONDARY SCHOOLS, COLLEGES AND UNIVERSITIES,
                29     STATE-RELATED UNIVERSITIES AND COMMUNITY COLLEGES, WHICH ARE
                30     DETERMINED BY THE AUTHORITY TO BE ELIGIBLE EDUCATIONAL
                20010S0780B1186                 - 60 -
 
 

                 1     INSTITUTIONS, PROVIDED THAT SUCH BUILDINGS AND FACILITIES
                 2     SHALL HAVE BEEN APPROVED BY RESOLUTION OR ORDINANCE ADOPTED
                 3     BY THE GOVERNING BODY OF THE MUNICIPALITY OR MUNICIPALITIES
                 4     ORGANIZING THE AUTHORITY AND THAT THE APPROVAL DOES NOT
                 5     OBLIGATE THE TAXING POWER OF THE GOVERNING BODY IN ANY WAY.
                 6         (16)  MOTOR BUSES FOR PUBLIC USE, WHEN SUCH MOTOR BUSES
                 7     ARE TO BE USED WITHIN ANY MUNICIPALITY, AND SUBWAYS.
                 8         (17)  INDUSTRIAL DEVELOPMENT PROJECTS, INCLUDING, BUT NOT
                 9     LIMITED TO, PROJECTS TO RETAIN OR DEVELOP EXISTING INDUSTRIES
                10     AND THE DEVELOPMENT OF NEW INDUSTRIES, THE DEVELOPMENT AND
                11     ADMINISTRATION OF BUSINESS IMPROVEMENTS AND ADMINISTRATIVE
                12     SERVICES RELATED THERETO.
                13     (B)  LIMITATIONS.--THIS SECTION IS SUBJECT TO THE FOLLOWING
                14  LIMITATIONS:
                15         (1)  AN AUTHORITY CREATED BY A SCHOOL DISTRICT OR SCHOOL
                16     DISTRICTS SHALL HAVE THE POWER ONLY TO ACQUIRE, HOLD,
                17     CONSTRUCT, IMPROVE, MAINTAIN, OPERATE AND LEASE PUBLIC SCHOOL
                18     BUILDINGS AND OTHER SCHOOL PROJECTS ACQUIRED, CONSTRUCTED OR
                19     IMPROVED FOR PUBLIC SCHOOL PURPOSES.
                20         (2)  THE PURPOSE AND INTENT OF THIS CHAPTER BEING TO
                21     BENEFIT THE PEOPLE OF THE COMMONWEALTH BY, AMONG OTHER
                22     THINGS, INCREASING THEIR COMMERCE, HEALTH, SAFETY AND
                23     PROSPERITY, AND NOT TO UNNECESSARILY BURDEN OR INTERFERE WITH
                24     EXISTING BUSINESS BY THE ESTABLISHMENT OF COMPETITIVE
                25     ENTERPRISES; NONE OF THE POWERS GRANTED BY THIS CHAPTER SHALL
                26     BE EXERCISED IN THE CONSTRUCTION, FINANCING, IMPROVEMENT,
                27     MAINTENANCE, EXTENSION OR OPERATION OF ANY PROJECT OR
                28     PROJECTS OR PROVIDING FINANCING FOR INSURANCE RESERVES WHICH
                29     IN WHOLE OR IN PART SHALL DUPLICATE OR COMPETE WITH EXISTING
                30     ENTERPRISES SERVING SUBSTANTIALLY THE SAME PURPOSES. THIS
                20010S0780B1186                 - 61 -
 
 

                 1     LIMITATION SHALL NOT APPLY TO THE EXERCISE OF THE POWERS
                 2     GRANTED UNDER THIS SECTION:
                 3             (I)  FOR FACILITIES AND EQUIPMENT FOR THE COLLECTION,
                 4         REMOVAL OR DISPOSAL OF ASHES, GARBAGE, RUBBISH AND OTHER
                 5         REFUSE MATERIALS BY INCINERATION, LANDFILL OR OTHER
                 6         METHODS, IF EACH MUNICIPALITY ORGANIZING OR INTENDING TO
                 7         USE THE FACILITIES OF AN AUTHORITY HAVING SUCH POWERS
                 8         SHALL DECLARE BY RESOLUTION OR ORDINANCE THAT IT IS
                 9         DESIRABLE FOR THE HEALTH AND SAFETY OF THE PEOPLE OF SUCH
                10         MUNICIPALITY THAT IT USE THE FACILITIES OF THE AUTHORITY
                11         AND STATE IF ANY CONTRACT BETWEEN SUCH MUNICIPALITY AND
                12         ANY OTHER PERSON, FIRM OR CORPORATION FOR THE COLLECTION,
                13         REMOVAL OR DISPOSAL OF ASHES, GARBAGE, RUBBISH AND OTHER
                14         REFUSE MATERIAL HAS BY ITS TERMS EXPIRED OR IS TERMINABLE
                15         AT THE OPTION OF THE MUNICIPALITY OR WILL EXPIRE WITHIN
                16         SIX MONTHS FROM THE DATE SUCH ORDINANCE BECOMES
                17         EFFECTIVE;
                18             (II)  FOR INDUSTRIAL DEVELOPMENT PROJECTS IF THE
                19         AUTHORITY DOES NOT DEVELOP INDUSTRIAL PROJECTS WHICH WILL
                20         COMPETE WITH EXISTING INDUSTRIES;
                21             (III)  FOR AUTHORITIES CREATED FOR THE PURPOSE OF
                22         PROVIDING BUSINESS IMPROVEMENTS AND ADMINISTRATIVE
                23         SERVICES IF EACH MUNICIPALITY ORGANIZING AN AUTHORITY FOR
                24         SUCH A PROJECT SHALL DECLARE BY RESOLUTION OR ORDINANCE
                25         THAT IT IS DESIRABLE FOR THE ENTIRE LOCAL GOVERNMENT UNIT
                26         TO IMPROVE THE BUSINESS DISTRICT;
                27             (IV)  TO HOSPITAL PROJECTS OR HEALTH CENTERS TO BE
                28         LEASED TO OR FINANCED WITH LOANS TO PUBLIC HOSPITALS,
                29         NONPROFIT CORPORATION HEALTH CENTERS OR NONPROFIT
                30         HOSPITAL CORPORATIONS SERVING THE PUBLIC OR TO SCHOOL
                20010S0780B1186                 - 62 -
 
 

                 1         BUILDING PROJECTS AND FACILITIES TO BE LEASED TO OR
                 2         FINANCED WITH LOANS TO PRIVATE, NONPROFIT, NONSECTARIAN
                 3         SECONDARY SCHOOLS, COLLEGES AND UNIVERSITIES, STATE-
                 4         RELATED UNIVERSITIES AND COMMUNITY COLLEGES, OR TO
                 5         FACILITIES, AS LIMITED UNDER THE PROVISIONS OF THIS
                 6         SECTION, TO PRODUCE STEAM OR TO GENERATE ELECTRIC POWER,
                 7         IF EACH MUNICIPALITY ORGANIZING AN AUTHORITY FOR SUCH A
                 8         PROJECT SHALL DECLARE BY RESOLUTION OR ORDINANCE THAT IT
                 9         IS DESIRABLE FOR THE HEALTH, SAFETY AND WELFARE OF THE
                10         PEOPLE IN THE AREA SERVED BY SUCH FACILITIES TO HAVE SUCH
                11         FACILITIES PROVIDED BY OR FINANCED THROUGH AN AUTHORITY;
                12             (V)  TO PROVIDE FINANCING FOR INSURANCE RESERVES IF
                13         EACH MUNICIPALITY OR AUTHORITY INTENDING TO USE ANY
                14         PROCEEDS THEREOF SHALL DECLARE BY RESOLUTION OR ORDINANCE
                15         THAT IT IS DESIRABLE FOR THE HEALTH, SAFETY AND WELFARE
                16         OF THE PEOPLE IN SUCH LOCAL GOVERNMENT UNIT OR SERVED BY
                17         SUCH AUTHORITY; OR
                18             (VI)  TO PROJECTS FOR FINANCING WORKING CAPITAL.
                19         (3)  IT IS THE INTENT OF THIS CHAPTER IN SPECIFYING AND
                20     DEFINING THE AUTHORIZED PURPOSES AND PROJECTS OF AN AUTHORITY
                21     TO PERMIT THE AUTHORITY TO BENEFIT THE PEOPLE OF THIS
                22     COMMONWEALTH BY, AMONG OTHER THINGS, INCREASING THEIR
                23     COMMERCE, HEALTH, SAFETY AND PROSPERITY WHILE NOT
                24     UNNECESSARILY BURDENING OR INTERFERING WITH ANY MUNICIPALITY
                25     WHICH HAS NOT INCORPORATED OR JOINED THAT AUTHORITY.
                26     THEREFORE, NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS
                27     CHAPTER, AN AUTHORITY SHALL NOT HAVE AS ITS PURPOSE AND SHALL
                28     NOT UNDERTAKE AS A PROJECT SOLELY FOR REVENUE-PRODUCING
                29     PURPOSES THE ACQUIRING OF BUILDINGS, FACILITIES OR TRACTS OF
                30     LAND WHICH, IN THE CASE OF AN AUTHORITY INCORPORATED OR
                20010S0780B1186                 - 63 -
 
 

                 1     JOINED BY A COUNTY OR COUNTIES, ARE LOCATED EITHER WITHIN OR
                 2     OUTSIDE THE BOUNDARIES OF THE COUNTY OR COUNTIES AND, IN THE
                 3     CASE OF ALL OTHER AUTHORITIES, ARE LOCATED OUTSIDE THE
                 4     BOUNDARIES OF THE MUNICIPALITY OR MUNICIPALITIES THAT
                 5     INCORPORATED OR JOINED THE AUTHORITY, UNLESS EITHER:
                 6             (I)  THE GOVERNING BODY OF EACH MUNICIPALITY IN WHICH
                 7         THE PROJECT WILL BE UNDERTAKEN HAS BY RESOLUTION
                 8         EVIDENCED ITS APPROVAL; OR
                 9             (II)  IN CASES WHERE THE PROPERTY ACQUIRED IS NOT
                10         SUBJECT TO TAX ABATEMENT, THE AUTHORITY COVENANTS AND
                11         AGREES WITH EACH MUNICIPALITY IN WHICH THE AUTHORITY WILL
                12         ACQUIRE REAL PROPERTY AS PART OF THE PROJECT EITHER TO
                13         MAKE ANNUAL PAYMENTS IN LIEU OF REAL ESTATE TAXES AND
                14         SPECIAL ASSESSMENTS FOR AMOUNTS AND TIME PERIODS
                15         SPECIFIED IN THE AGREEMENT OR TO PAY ANNUALLY THE AMOUNT
                16         OF REAL ESTATE TAXES AND SPECIAL ASSESSMENTS WHICH WOULD
                17         BE PAYABLE IF THE REAL PROPERTY SO ACQUIRED WERE FULLY
                18         TAXABLE AND SUBJECT TO SPECIAL ASSESSMENTS.
                19     (C)  EFFECT OF SPECIFICITY.--THE MUNICIPALITY OR
                20  MUNICIPALITIES ORGANIZING SUCH AN AUTHORITY MAY, IN THE
                21  RESOLUTION OR ORDINANCE SIGNIFYING THEIR INTENTION SO TO DO, OR
                22  FROM TIME TO TIME BY SUBSEQUENT RESOLUTION OR ORDINANCE, SPECIFY
                23  THE PROJECT OR PROJECTS TO BE UNDERTAKEN BY THE AUTHORITY, AND
                24  NO OTHER PROJECTS SHALL BE UNDERTAKEN BY THE AUTHORITY THAN
                25  THOSE SO SPECIFIED. IF THE MUNICIPAL AUTHORITIES ORGANIZING AN
                26  AUTHORITY FAIL TO SPECIFY THE PROJECT OR PROJECTS TO BE
                27  UNDERTAKEN, THEN THE AUTHORITY SHALL BE DEEMED TO HAVE ALL THE
                28  POWERS GRANTED BY THIS CHAPTER.
                29     (D)  POWERS.--EVERY AUTHORITY MAY EXERCISE ALL POWERS
                30  NECESSARY OR CONVENIENT FOR THE CARRYING OUT OF THE PURPOSES SET
                20010S0780B1186                 - 64 -
 
 

                 1  FORTH IN THIS SECTION, INCLUDING, BUT WITHOUT LIMITING THE
                 2  GENERALITY OF THE FOREGOING, THE FOLLOWING RIGHTS AND POWERS:
                 3         (1)  TO HAVE EXISTENCE FOR A TERM OF 50 YEARS AND FOR
                 4     SUCH FURTHER PERIOD OR PERIODS AS MAY BE PROVIDED IN ARTICLES
                 5     OF AMENDMENT APPROVED UNDER SECTION 5605(E) (RELATING TO
                 6     AMENDMENT OF ARTICLES).
                 7         (2)  TO SUE AND BE SUED, IMPLEAD AND BE IMPLEADED,
                 8     COMPLAIN AND DEFEND IN ALL COURTS.
                 9         (3)  TO ADOPT, USE AND ALTER AT WILL, A CORPORATE SEAL.
                10         (4)  TO ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE AND USE
                11     ANY FRANCHISE, PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR
                12     INTANGIBLE, OR ANY INTEREST THEREIN NECESSARY OR DESIRABLE
                13     FOR CARRYING OUT THE PURPOSES OF THE AUTHORITY, AND TO SELL,
                14     LEASE AS LESSOR, TRANSFER AND DISPOSE OF ANY PROPERTY OR
                15     INTEREST THEREIN AT ANY TIME ACQUIRED BY IT.
                16         (5)  TO ACQUIRE BY PURCHASE, LEASE OR OTHERWISE AND TO
                17     CONSTRUCT, IMPROVE, MAINTAIN, REPAIR AND OPERATE PROJECTS.
                18         (6)  TO FINANCE PROJECTS BY MAKING LOANS, WHICH MAY BE
                19     EVIDENCED BY AND SECURED AS MAY BE PROVIDED IN LOAN
                20     AGREEMENTS, MORTGAGES, SECURITY AGREEMENTS OR ANY OTHER
                21     CONTRACTS, INSTRUMENTS OR AGREEMENTS, WHICH CONTRACTS,
                22     INSTRUMENTS OR AGREEMENTS MAY CONTAIN SUCH PROVISIONS AS THE
                23     AUTHORITY SHALL DEEM NECESSARY OR DESIRABLE FOR THE SECURITY
                24     OR PROTECTION OF THE AUTHORITY OR ITS BONDHOLDERS.
                25         (7)  TO MAKE BYLAWS FOR THE MANAGEMENT AND REGULATION OF
                26     ITS AFFAIRS.
                27         (8)  TO APPOINT OFFICERS, AGENTS, EMPLOYEES AND SERVANTS,
                28     TO PRESCRIBE THEIR DUTIES AND TO FIX THEIR COMPENSATION.
                29         (9)  TO FIX, ALTER, CHARGE AND COLLECT RATES AND OTHER
                30     CHARGES IN THE AREA SERVED BY ITS FACILITIES AT REASONABLE
                20010S0780B1186                 - 65 -
 
 

                 1     AND UNIFORM RATES TO BE DETERMINED EXCLUSIVELY BY IT, FOR THE
                 2     PURPOSE OF PROVIDING FOR THE PAYMENT OF THE EXPENSES OF THE
                 3     AUTHORITY, THE CONSTRUCTION, IMPROVEMENT, REPAIR, MAINTENANCE
                 4     AND OPERATION OF ITS FACILITIES AND PROPERTIES, AND, IN THE
                 5     CASE OF AN AUTHORITY CREATED FOR THE PURPOSE OF MAKING
                 6     BUSINESS IMPROVEMENTS OR PROVIDING ADMINISTRATIVE SERVICES, A
                 7     CHARGE FOR SUCH SERVICES WHICH IS TO BE BASED ON ACTUAL
                 8     BENEFITS AND WHICH MAY BE MEASURED ON, AMONG OTHER THINGS,
                 9     GROSS SALES OR GROSS OR NET PROFITS, THE PAYMENT OF THE
                10     PRINCIPAL OF AND INTEREST ON ITS OBLIGATIONS, AND TO FULFILL
                11     THE TERMS AND PROVISIONS OF ANY AGREEMENTS MADE WITH THE
                12     PURCHASERS OR HOLDERS OF ANY SUCH OBLIGATIONS, OR WITH A
                13     MUNICIPALITY SERVED OR TO BE SERVED BY THE AUTHORITY AND TO
                14     DETERMINE BY ITSELF EXCLUSIVELY THE SERVICES AND IMPROVEMENTS
                15     REQUIRED TO PROVIDE ADEQUATE, SAFE AND REASONABLE SERVICE,
                16     INCLUDING EXTENSIONS THEREOF, IN THE AREAS SERVED. IF THE
                17     SERVICE AREA INCLUDES MORE THAN ONE MUNICIPALITY, THE
                18     REVENUES FROM ANY PROJECT SHALL NOT BE EXPENDED DIRECTLY OR
                19     INDIRECTLY ON ANY OTHER PROJECT UNLESS SUCH EXPENDITURES ARE
                20     MADE FOR THE BENEFIT OF THE ENTIRE SERVICE AREA. ANY PERSON
                21     QUESTIONING THE REASONABLENESS OR UNIFORMITY OF A RATE FIXED
                22     BY AN AUTHORITY OR THE ADEQUACY, SAFETY AND REASONABLENESS OF
                23     THE AUTHORITY'S SERVICES, INCLUDING EXTENSIONS THEREOF, MAY
                24     BRING SUIT AGAINST THE AUTHORITY IN THE COURT OF COMMON PLEAS
                25     OF THE COUNTY WHERE THE PROJECT IS LOCATED OR, IF THE PROJECT
                26     IS LOCATED IN MORE THAN ONE COUNTY, IN THE COURT OF COMMON
                27     PLEAS OF THE COUNTY WHERE THE PRINCIPAL OFFICE OF THE PROJECT
                28     IS LOCATED. THE COURT OF COMMON PLEAS SHALL HAVE EXCLUSIVE
                29     JURISDICTION TO DETERMINE QUESTIONS INVOLVING RATES OR
                30     SERVICE. EXCEPT IN MUNICIPAL CORPORATIONS HAVING A POPULATION
                20010S0780B1186                 - 66 -
 
 

                 1     DENSITY OF 300 PERSONS OR MORE PER SQUARE MILE, ALL OWNERS OF
                 2     REAL PROPERTY IN EIGHTH CLASS COUNTIES MAY DECLINE IN WRITING
                 3     THE SERVICES OF A SOLID WASTE AUTHORITY.
                 4         (10)  IN THE CASE OF AN AUTHORITY WHICH HAS AGREED TO
                 5     PROVIDE WATER SERVICE THROUGH A SEPARATE METER AND SEPARATE
                 6     SERVICE LINE TO A RESIDENTIAL DWELLING UNIT IN WHICH THE
                 7     OWNER DOES NOT RESIDE, TO ENFORCE THE OWNER'S DUTY TO PAY A
                 8     TENANT'S BILL FOR SERVICE RENDERED TO THE TENANT BY THE
                 9     AUTHORITY ONLY IF THE AUTHORITY NOTIFIES THE OWNER AND THE
                10     TENANT WITHIN 30 DAYS AFTER THE BILL FIRST BECOMES OVERDUE.
                11     NOTIFICATION SHALL BE PROVIDED BY FIRST CLASS MAIL TO THE
                12     ADDRESS OF THE OWNER PROVIDED TO THE AUTHORITY BY THE OWNER
                13     AND TO THE BILLING ADDRESS OF THE TENANT, RESPECTIVELY.
                14     NOTHING IN THIS PARAGRAPH SHALL BE CONSTRUED TO REQUIRE AN
                15     AUTHORITY TO TERMINATE SERVICE TO A TENANT, AND THE OWNER
                16     SHALL NOT BE LIABLE FOR ANY SERVICE WHICH THE AUTHORITY
                17     PROVIDES TO THE TENANT 90 OR MORE DAYS AFTER THE TENANT'S
                18     BILL FIRST BECOMES DUE UNLESS THE AUTHORITY HAS BEEN
                19     PREVENTED BY COURT ORDER FROM TERMINATING SERVICE TO THAT
                20     TENANT.
                21         (11)  IN THE CASE OF AN AUTHORITY WHICH HAS AGREED TO
                22     PROVIDE SEWER SERVICE TO A RESIDENTIAL DWELLING UNIT IN WHICH
                23     THE OWNER DOES NOT RESIDE, TO ENFORCE THE OWNER'S DUTY TO PAY
                24     A TENANT'S BILL FOR SERVICE RENDERED BY THE AUTHORITY TO THE
                25     TENANT. THE AUTHORITY SHALL NOTIFY THE OWNER AND THE TENANT
                26     WITHIN 30 DAYS AFTER THE TENANT'S BILL FOR THAT SERVICE FIRST
                27     BECOMES OVERDUE. NOTIFICATION SHALL BE PROVIDED BY FIRST
                28     CLASS MAIL TO THE ADDRESS OF THE OWNER PROVIDED TO THE
                29     AUTHORITY BY THE OWNER AND TO THE BILLING ADDRESS OF THE
                30     TENANT, RESPECTIVELY. NOTHING IN THIS PARAGRAPH SHALL BE
                20010S0780B1186                 - 67 -
 
 

                 1     CONSTRUED TO RELIEVE THE OWNER OF LIABILITY FOR SUCH SERVICE
                 2     UNLESS THE AUTHORITY FAILS TO PROVIDE THE NOTICE REQUIRED IN
                 3     THIS PARAGRAPH.
                 4         (12)  TO BORROW MONEY, MAKE AND ISSUE NEGOTIABLE NOTES,
                 5     BONDS, REFUNDING BONDS AND OTHER EVIDENCES OF INDEBTEDNESS OR
                 6     OBLIGATIONS, HEREINAFTER CALLED BONDS, OF THE AUTHORITY.
                 7     BONDS SHALL HAVE A MATURITY DATE NOT LONGER THAN 40 YEARS
                 8     FROM THE DATE OF ISSUE, EXCEPT THAT NO REFUNDING BONDS SHALL
                 9     HAVE A MATURITY DATE LATER THAN THE LIFE OF THE AUTHORITY;
                10     ALSO, TO SECURE THE PAYMENT OF THE BONDS OR ANY PART THEREOF
                11     BY PLEDGE OR DEED OF TRUST OF ALL OR ANY OF ITS REVENUES AND
                12     RECEIPTS; TO MAKE AGREEMENTS WITH THE PURCHASERS OR HOLDERS
                13     OF THE BONDS, OR WITH OTHERS IN CONNECTION WITH ANY BONDS,
                14     WHETHER ISSUED OR TO BE ISSUED, AS THE AUTHORITY SHALL DEEM
                15     ADVISABLE; AND IN GENERAL TO PROVIDE FOR THE SECURITY FOR THE
                16     BONDS AND THE RIGHTS OF THE BONDHOLDERS. IN RESPECT TO ANY
                17     PROJECT CONSTRUCTED AND OPERATED UNDER AGREEMENT WITH ANY
                18     AUTHORITY OR ANY PUBLIC AUTHORITY OF ANY ADJOINING STATE, TO
                19     BORROW MONEY AND ISSUE NOTES, BONDS AND OTHER EVIDENCES OF
                20     INDEBTEDNESS AND OBLIGATIONS JOINTLY WITH THAT AUTHORITY.
                21     NOTWITHSTANDING ANY OF THE FOREGOING, NO AUTHORITY SHALL
                22     BORROW MONEY ON OBLIGATIONS TO BE PAID PRIMARILY OUT OF LEASE
                23     RENTALS OR OTHER CURRENT REVENUES OTHER THAN CHARGES MADE TO
                24     THE PUBLIC FOR THE USE OF THE CAPITAL PROJECTS FINANCED IF
                25     THE NET DEBT OF THE LESSEE MUNICIPALITY OR MUNICIPALITIES
                26     SHALL EXCEED ANY LIMIT PROVIDED BY ANY LAW OF THE
                27     COMMONWEALTH.
                28         (13)  TO MAKE CONTRACTS OF EVERY NAME AND NATURE AND TO
                29     EXECUTE ALL INSTRUMENTS NECESSARY OR CONVENIENT FOR THE
                30     CARRYING ON OF ITS BUSINESS.
                20010S0780B1186                 - 68 -
 
 

                 1         (14)  WITHOUT LIMITATION OF THE FOREGOING, TO BORROW
                 2     MONEY AND ACCEPT GRANTS FROM AND TO ENTER INTO CONTRACTS,
                 3     LEASES OR OTHER TRANSACTIONS WITH ANY FEDERAL AGENCY, THE
                 4     COMMONWEALTH OR A MUNICIPALITY, SCHOOL DISTRICT, CORPORATION
                 5     OR AUTHORITY.
                 6         (15)  TO HAVE THE POWER OF EMINENT DOMAIN.
                 7         (16)  TO PLEDGE, HYPOTHECATE OR OTHERWISE ENCUMBER ALL OR
                 8     ANY OF THE REVENUES OR RECEIPTS OF THE AUTHORITY AS SECURITY
                 9     FOR ALL OR ANY OF THE OBLIGATIONS OF THE AUTHORITY.
                10         (17)  TO DO ALL ACTS AND THINGS NECESSARY OR CONVENIENT
                11     FOR THE PROMOTION OF ITS BUSINESS AND THE GENERAL WELFARE OF
                12     THE AUTHORITY TO CARRY OUT THE POWERS GRANTED TO IT BY THIS
                13     CHAPTER OR OTHER LAW.
                14         (18)  TO CONTRACT WITH ANY MUNICIPALITY, CORPORATION OR A
                15     PUBLIC AUTHORITY OF THIS AND AN ADJOINING STATE, ON TERMS AS
                16     THE AUTHORITY SHALL DEEM PROPER, FOR THE CONSTRUCTION AND
                17     OPERATION OF ANY PROJECT WHICH IS PARTLY IN THIS COMMONWEALTH
                18     AND PARTLY IN THE ADJOINING STATE.
                19         (19)  TO ENTER INTO CONTRACTS TO SUPPLY WATER AND OTHER
                20     SERVICES TO AND FOR MUNICIPALITIES THAT ARE NOT MEMBERS OF
                21     THE AUTHORITY, OR TO AND FOR THE COMMONWEALTH,
                22     MUNICIPALITIES, SCHOOL DISTRICTS, PERSONS OR AUTHORITIES, AND
                23     FIX THE AMOUNT TO BE PAID THEREFOR.
                24         (20)  (I)  TO MAKE CONTRACTS OF INSURANCE WITH AN
                25         INSURANCE COMPANY, ASSOCIATION OR EXCHANGE AUTHORIZED TO
                26         TRANSACT BUSINESS IN THIS COMMONWEALTH, INSURING ITS
                27         EMPLOYEES AND APPOINTED OFFICERS AND OFFICIALS UNDER A
                28         POLICY OR POLICIES OF INSURANCE COVERING LIFE, ACCIDENTAL
                29         DEATH AND DISMEMBERMENT AND DISABILITY INCOME. STATUTORY
                30         REQUIREMENTS FOR SUCH INSURANCE, INCLUDING, BUT NOT
                20010S0780B1186                 - 69 -
 
 

                  1         LIMITED TO, REQUISITE NUMBER OF ELIGIBLE EMPLOYEES,
                  2         APPOINTED OFFICERS AND OFFICIALS, AS PROVIDED FOR IN
                  3         SECTION 621.2 OF THE ACT OF MAY 17, 1921 (P.L.682,
                  4         NO.284), KNOWN AS THE INSURANCE COMPANY LAW OF 1921, AND
                  5         SECTIONS 1, 2, 6, 7 AND 9 OF THE ACT OF MAY 11, 1949
                  6         (P.L.1210, NO.367), KNOWN AS THE GROUP LIFE INSURANCE
                  7         POLICY LAW, SHALL BE MET.
                  8             (II)  TO MAKE CONTRACTS WITH AN INSURANCE COMPANY,
                  9         ASSOCIATION OR EXCHANGE OR ANY HOSPITAL PLAN CORPORATION
                 10         OR PROFESSIONAL HEALTH SERVICE CORPORATION AUTHORIZED TO
                 11         TRANSACT BUSINESS IN THIS COMMONWEALTH, INSURING OR
                 12         COVERING ITS EMPLOYEES AND THEIR DEPENDENTS, BUT NOT ITS
                 13         APPOINTED OFFICERS AND OFFICIALS NOR THEIR DEPENDENTS,
                 14         FOR HOSPITAL AND MEDICAL BENEFITS; AND TO CONTRACT FOR
                 15         ITS EMPLOYEES, BUT NOT ITS APPOINTED OFFICERS AND
                 16         OFFICIALS, WITH AN INSURANCE COMPANY, ASSOCIATION OR
                 17         EXCHANGE AUTHORIZED TO TRANSACT BUSINESS IN THIS
                 18         COMMONWEALTH GRANTING ANNUITIES OR TO ESTABLISH,
                 19         MAINTAIN, OPERATE AND ADMINISTER ITS OWN PENSION PLAN
                 20         COVERING ITS EMPLOYEES, BUT NOT ITS APPOINTED OFFICERS
                 21         AND OFFICIALS.
                 22             (III)  FOR THE PURPOSES SET FORTH UNDER THIS
                 23         PARAGRAPH, TO AGREE TO PAY PART OR ALL OF THE COST OF
                 24         THIS INSURANCE, INCLUDING THE PREMIUMS OR CHARGES FOR
                 25         CARRYING THESE CONTRACTS, AND TO APPROPRIATE OUT OF ITS
                 26         TREASURY ANY MONEY NECESSARY TO PAY SUCH COSTS, PREMIUMS
                 27         OR CHARGES. THE PROPER OFFICERS OF THE AUTHORITY WHO ARE
                 28         AUTHORIZED TO ENTER INTO SUCH CONTRACTS ARE AUTHORIZED,
                 29         ENABLED AND PERMITTED TO DEDUCT FROM THE OFFICERS' OR
                 30         EMPLOYEES' PAY, SALARY OR COMPENSATION THAT PART OF THE
                 20010S0780B1186                 - 70 -
 
 

                 1         PREMIUM OR COST WHICH IS PAYABLE BY THE OFFICER OR
                 2         EMPLOYEE AND AS MAY BE SO AUTHORIZED BY THE OFFICER OR
                 3         EMPLOYEE IN WRITING.
                 4         (21)  TO CHARGE THE COST OF CONSTRUCTION OF ANY SEWER OR
                 5     WATER MAIN CONSTRUCTED BY THE AUTHORITY AGAINST THE
                 6     PROPERTIES BENEFITED, IMPROVED OR ACCOMMODATED THEREBY TO THE
                 7     EXTENT OF SUCH BENEFITS. THESE BENEFITS SHALL BE ASSESSED IN
                 8     THE MANNER PROVIDED UNDER THIS CHAPTER FOR THE EXERCISE OF
                 9     THE RIGHT OF EMINENT DOMAIN.
                10         (22)  TO CHARGE THE COST OF CONSTRUCTION OF A SEWER OR
                11     WATER MAIN CONSTRUCTED BY THE AUTHORITY AGAINST THE
                12     PROPERTIES BENEFITED, IMPROVED OR ACCOMMODATED BY THE
                13     CONSTRUCTION ACCORDING TO THE FOOT FRONT RULE. CHARGES SHALL
                14     BE BASED UPON THE FOOT FRONTAGE OF THE PROPERTIES BENEFITED
                15     AND SHALL BE A LIEN AGAINST PROPERTIES. CHARGES MAY BE
                16     ASSESSED AND COLLECTED AND LIENS MAY BE ENFORCED IN THE
                17     MANNER PROVIDED BY LAW FOR THE ASSESSMENT AND COLLECTION OF
                18     CHARGES AND THE ENFORCEMENT OF LIENS OF THE MUNICIPALITY IN
                19     WHICH SUCH AUTHORITY IS LOCATED. NO CHARGE SHALL BE ASSESSED
                20     UNLESS PRIOR TO THE CONSTRUCTION OF A SEWER OR WATER MAIN THE
                21     AUTHORITY SUBMITTED THE PLAN OF CONSTRUCTION AND ESTIMATED
                22     COST TO THE MUNICIPALITY IN WHICH THE PROJECT IS TO BE
                23     UNDERTAKEN, AND THE MUNICIPALITY APPROVED IT. THE PROPERTIES
                24     BENEFITED, IMPROVED OR ACCOMMODATED BY THE CONSTRUCTION MAY
                25     NOT BE CHARGED AN AGGREGATE AMOUNT IN EXCESS OF THE APPROVED
                26     ESTIMATED COST.
                27         (23)  TO REQUIRE THE POSTING OF FINANCIAL SECURITY TO
                28     INSURE THE COMPLETION, IN ACCORDANCE WITH THE APPROVED PLAT
                29     AND WITH THE RULES AND REGULATIONS OF THE AUTHORITY, OF ANY
                30     WATER MAINS OR SANITARY SEWER LINES, OR BOTH, AND RELATED
                20010S0780B1186                 - 71 -
 
 

                 1     APPARATUS AND FACILITIES, REQUIRED TO BE INSTALLED BY OR ON
                 2     BEHALF OF A DEVELOPER UNDER AN APPROVED LAND DEVELOPMENT OR
                 3     SUBDIVISION PLAT AS THESE TERMS ARE DEFINED UNDER THE ACT OF
                 4     JULY 31, 1968 (P.L.805, NO.247), KNOWN AS THE PENNSYLVANIA
                 5     MUNICIPALITIES PLANNING CODE. IF FINANCIAL SECURITY IS
                 6     REQUIRED BY THE AUTHORITY, AND WITHOUT LIMITATION AS TO OTHER
                 7     TYPES OF FINANCIAL SECURITY WHICH THE AUTHORITY MAY APPROVE,
                 8     WHICH APPROVAL SHALL NOT BE UNREASONABLY WITHHELD, FEDERALLY
                 9     CHARTERED OR COMMONWEALTH-CHARTERED LENDING INSTITUTION
                10     IRREVOCABLE LETTERS OF CREDIT AND RESTRICTIVE OR ESCROW
                11     ACCOUNTS IN THESE LENDING INSTITUTIONS SHALL BE DEEMED
                12     ACCEPTABLE FINANCIAL SECURITY. FINANCIAL SECURITY SHALL BE
                13     POSTED WITH A BONDING COMPANY OR FEDERALLY CHARTERED OR
                14     COMMONWEALTH-CHARTERED LENDING INSTITUTION CHOSEN BY THE
                15     PARTY POSTING THE FINANCIAL SECURITY, IF THE BONDING COMPANY
                16     OR LENDING INSTITUTION IS AUTHORIZED TO CONDUCT BUSINESS
                17     WITHIN THIS COMMONWEALTH. THE BOND OR OTHER SECURITY SHALL
                18     PROVIDE FOR AND SECURE TO THE AUTHORITY THE COMPLETION OF
                19     REQUIRED IMPROVEMENTS WITHIN ONE YEAR FROM THE DATE OF
                20     POSTING OF THE SECURITY. THE AMOUNT OF FINANCIAL SECURITY
                21     SHALL BE EQUAL TO 110% OF THE COST OF THE REQUIRED
                22     IMPROVEMENTS FOR WHICH FINANCIAL SECURITY IS TO BE POSTED.
                23     THE COST OF REQUIRED IMPROVEMENTS SHALL BE ESTABLISHED BY
                24     SUBMITTING TO THE AUTHORITY A BONA FIDE BID FROM A CONTRACTOR
                25     CHOSEN BY THE PARTY POSTING THE FINANCIAL SECURITY. IN THE
                26     ABSENCE OF A BONA FIDE BID, THE COST SHALL BE ESTABLISHED BY
                27     AN ESTIMATE PREPARED BY THE AUTHORITY'S ENGINEER. IF THE
                28     PARTY POSTING THE FINANCIAL SECURITY REQUIRES MORE THAN ONE
                29     YEAR FROM THE DATE OF POSTING THE FINANCIAL SECURITY TO
                30     COMPLETE THE REQUIRED IMPROVEMENTS, THE AMOUNT OF FINANCIAL
                20010S0780B1186                 - 72 -
 
 

                 1     SECURITY MAY BE INCREASED BY AN ADDITIONAL 10% FOR EACH ONE-
                 2     YEAR PERIOD BEYOND THE FIRST ANNIVERSARY DATE FROM THE
                 3     INITIAL POSTING DATE OR TO 110% OF THE COST OF COMPLETING THE
                 4     REQUIRED IMPROVEMENTS AS REESTABLISHED ON OR ABOUT THE
                 5     EXPIRATION OF THE PRECEDING ONE-YEAR PERIOD BY USING THE
                 6     ABOVE BIDDING PROCEDURE. AS THE WORK OF INSTALLING THE
                 7     REQUIRED IMPROVEMENTS PROCEEDS, THE PARTY POSTING THE
                 8     FINANCIAL SECURITY MAY REQUEST THE AUTHORITY TO RELEASE OR
                 9     AUTHORIZE THE RELEASE OF, FROM TIME TO TIME, PORTIONS OF THE
                10     FINANCIAL SECURITY NECESSARY TO PAY THE CONTRACTOR PERFORMING
                11     THE WORK. RELEASE REQUESTS SHALL BE IN WRITING ADDRESSED TO
                12     THE AUTHORITY, AND THE AUTHORITY SHALL HAVE 45 DAYS AFTER
                13     RECEIVING A REQUEST TO ASCERTAIN FROM THE AUTHORITY ENGINEER,
                14     CERTIFIED IN WRITING, THAT THE PORTION OF THE WORK HAS BEEN
                15     COMPLETED IN ACCORDANCE WITH THE APPROVED PLAT. UPON
                16     RECEIVING WRITTEN CERTIFICATION, THE AUTHORITY SHALL
                17     AUTHORIZE RELEASE BY THE BONDING COMPANY OR LENDING
                18     INSTITUTION AN AMOUNT ESTIMATED BY THE AUTHORITY ENGINEER TO
                19     FAIRLY REPRESENT THE VALUE OF THE IMPROVEMENTS COMPLETED. IF
                20     THE AUTHORITY FAILS TO ACT WITHIN THE 45-DAY PERIOD, IT SHALL
                21     BE DEEMED TO HAVE APPROVED THE REQUESTED RELEASE OF FUNDS.
                22     THE AUTHORITY MAY, PRIOR TO FINAL RELEASE AT THE TIME OF
                23     COMPLETION AND CERTIFICATION BY ITS ENGINEER, REQUIRE
                24     RETENTION OF 10% OF THE ESTIMATED COST OF IMPROVEMENTS. IF
                25     THE AUTHORITY ACCEPTS DEDICATION OF ALL OR SOME OF THE
                26     REQUIRED IMPROVEMENTS FOLLOWING COMPLETION, IT MAY REQUIRE
                27     THE POSTING OF FINANCIAL SECURITY TO SECURE STRUCTURAL
                28     INTEGRITY OF THE IMPROVEMENTS, AS WELL AS THE FUNCTIONING OF
                29     THE IMPROVEMENTS IN ACCORDANCE WITH THE DESIGN AND
                30     SPECIFICATIONS AS DEPICTED ON THE FINAL PLAT. THIS FINANCIAL
                20010S0780B1186                 - 73 -
 
 

                 1     SECURITY MAY EXPIRE 18 MONTHS FROM THE DATE OF ACCEPTANCE OF
                 2     DEDICATION AND SHALL BE OF THE SAME TYPE AS SET FORTH IN THIS
                 3     PARAGRAPH WITH REGARD TO THAT WHICH IS REQUIRED FOR
                 4     INSTALLATION OF THE IMPROVEMENTS, EXCEPT THAT IT SHALL NOT
                 5     EXCEED 15% OF THE ACTUAL COST OF INSTALLATION OF THE
                 6     IMPROVEMENTS. ANY INCONSISTENT ORDINANCE, RESOLUTION OR
                 7     STATUTE INCONSISTENT IS NULL AND VOID.
                 8         (24)  TO CHARGE ENUMERATED FEES TO PROPERTY OWNERS WHO
                 9     DESIRE TO OR ARE REQUIRED TO CONNECT TO THE AUTHORITY'S SEWER
                10     OR WATER SYSTEM. FEES SHALL BE BASED UPON THE DULY ADOPTED
                11     FEE SCHEDULE WHICH IS IN EFFECT AT THE TIME OF PAYMENT AND
                12     SHALL BE PAYABLE AT THE TIME OF APPLICATION FOR CONNECTION OR
                13     AT A TIME TO WHICH THE PROPERTY OWNER AND THE AUTHORITY
                14     AGREE. IN THE CASE OF PROJECTS TO SERVE EXISTING DEVELOPMENT,
                15     FEES SHALL BE PAYABLE AT A TIME TO BE DETERMINED BY THE
                16     AUTHORITY. AN AUTHORITY MAY REQUIRE THAT NO CAPACITY BE
                17     GUARANTEED FOR A PROPERTY OWNER UNTIL THE TAPPING FEES HAVE
                18     BEEN PAID OR SECURED BY OTHER FINANCIAL SECURITY. THE FEES
                19     SHALL BE IN ADDITION TO ANY CHARGES ASSESSED AGAINST THE
                20     PROPERTY IN THE CONSTRUCTION OF A SEWER OR WATER MAIN BY THE
                21     AUTHORITY UNDER PARAGRAPHS (21) AND (22) AS WELL AS ANY OTHER
                22     USER CHARGES IMPOSED BY THE AUTHORITY UNDER PARAGRAPH (9) BUT
                23     SHALL NOT INCLUDE COSTS INCLUDED IN THE CALCULATION OF SUCH
                24     FEES.
                25             (I)  THE FEES MAY INCLUDE ANY OF THE FOLLOWING FEE
                26         COMPONENTS, IF THEY ARE SEPARATELY SET FORTH IN A
                27         RESOLUTION ADOPTED BY THE AUTHORITY TO ESTABLISH THESE
                28         FEES:
                29                 (A)  CONNECTION FEE. IT MAY NOT EXCEED AN AMOUNT
                30             BASED UPON THE ACTUAL COST OF THE CONNECTION OF THE
                20010S0780B1186                 - 74 -
 
 

                 1             PROPERTY EXTENDING FROM THE AUTHORITY'S MAIN TO THE
                 2             PROPERTY LINE OR CURB STOP OF THE PROPERTY CONNECTED.
                 3             THE AUTHORITY MAY ALSO BASE THE CONNECTION FEE UPON
                 4             AN AVERAGE COST FOR PREVIOUSLY INSTALLED CONNECTIONS
                 5             OF SIMILAR TYPE AND SIZE. IN LIEU OF PAYMENT OF THE
                 6             FEES, AN AUTHORITY MAY REQUIRE THE CONSTRUCTION AND
                 7             DEDICATION OF THOSE FACILITIES BY THE PROPERTY OWNER
                 8             WHO REQUESTED THE CONNECTION.
                 9                 (B)  CUSTOMER FACILITIES FEE. IT MAY NOT EXCEED
                10             AN AMOUNT BASED UPON THE ACTUAL COST OF FACILITIES
                11             SERVING THE CONNECTED PROPERTY FROM THE PROPERTY LINE
                12             OR CURB STOP TO THE PROPOSED DWELLING OR BUILDING TO
                13             BE SERVED. THE FEE SHALL BE CHARGEABLE ONLY IF THE
                14             AUTHORITY INSTALLS THE CUSTOMER FACILITIES. IN LIEU
                15             OF PAYMENT OF THE CUSTOMER FACILITIES FEE, AN
                16             AUTHORITY MAY REQUIRE THE CONSTRUCTION OF THOSE
                17             FACILITIES BY THE PROPERTY OWNER WHO REQUESTS
                18             CUSTOMER FACILITIES. IN THE CASE OF WATER SERVICE,
                19             THE FEE MAY INCLUDE THE COST OF A WATER METER
                20             INSTALLATION IF THE AUTHORITY PROVIDES OR INSTALLS
                21             THE WATER METER. IF THE PROPERTY CONNECTED OR TO BE
                22             CONNECTED WITH THE SEWER SYSTEM OF THE AUTHORITY IS
                23             NOT EQUIPPED WITH A WATER METER, THE AUTHORITY MAY
                24             INSTALL A METER AT ITS OWN COST AND EXPENSE. IF THE
                25             PROPERTY IS SUPPLIED WITH WATER FROM THE FACILITIES
                26             OF A PUBLIC WATER SUPPLY AGENCY, THE AUTHORITY SHALL
                27             NOT INSTALL A METER WITHOUT THE CONSENT AND APPROVAL
                28             OF THE PUBLIC WATER SUPPLY AGENCY.
                29                 (C)  TAPPING FEE. IT MAY NOT EXCEED AN AMOUNT
                30             BASED UPON SOME OR ALL OF THE FOLLOWING FEE
                20010S0780B1186                 - 75 -
 
 

                 1             COMPONENTS, IF THEY ARE SEPARATELY SET FORTH IN THE
                 2             RESOLUTION ADOPTED BY THE AUTHORITY TO ESTABLISH
                 3             THESE FEES. IN LIEU OF PAYMENT OF THIS FEE, AN
                 4             AUTHORITY MAY REQUIRE THE CONSTRUCTION AND DEDICATION
                 5             OF ONLY SUCH CAPACITY, DISTRIBUTION-COLLECTION OR
                 6             SPECIAL PURPOSE FACILITIES NECESSARY TO SUPPLY
                 7             SERVICE TO THE PROPERTY OWNER OR OWNERS.
                 8                     (I)  CAPACITY PART. THE FEE MAY NOT EXCEED AN
                 9                 AMOUNT THAT IS BASED UPON THE COST OF CAPACITY-
                10                 RELATED FACILITIES, INCLUDING, BUT NOT LIMITED
                11                 TO, SOURCE OF SUPPLY, TREATMENT, PUMPING,
                12                 TRANSMISSION, TRUNK, INTERCEPTOR AND OUTFALL
                13                 MAINS, STORAGE, SLUDGE TREATMENT OR DISPOSAL,
                14                 INTERCONNECTION OR OTHER GENERAL SYSTEM
                15                 FACILITIES. FACILITIES MAY INCLUDE THOSE THAT
                16                 PROVIDE EXISTING SERVICE OR WILL PROVIDE FUTURE
                17                 SERVICE. THE COST OF EXISTING FACILITIES,
                18                 EXCLUDING FACILITIES CONTRIBUTED TO THE AUTHORITY
                19                 BY ANY PERSON, GOVERNMENT OR AGENCY, SHALL BE
                20                 BASED UPON THEIR REPLACEMENT COST OR UPON
                21                 HISTORICAL COST TRENDED TO CURRENT COST USING
                22                 PUBLISHED COST INDEXES, OR UPON THE HISTORICAL
                23                 COST PLUS INTEREST AND OTHER FINANCING FEES PAID
                24                 ON BONDS FINANCING SUCH FACILITIES. IN THE CASE
                25                 OF EXISTING FACILITIES, OUTSTANDING DEBT RELATED
                26                 TO THE FACILITIES SHALL BE SUBTRACTED FROM THE
                27                 COST, BUT DEBT MAY NOT BE SUBTRACTED WHICH IS
                28                 ATTRIBUTABLE TO FACILITIES EXCLUSIVELY SERVING
                29                 NEW CUSTOMERS. UNDER ALL COST APPROACHES, THE
                30                 COST OF CAPACITY-RELATED FACILITIES SHALL BE
                20010S0780B1186                 - 76 -
 
 

                 1                 REDUCED BY THE AMOUNT OF GRANTS OR CAPITAL
                 2                 CONTRIBUTIONS WHICH HAVE FINANCED THEM. THE
                 3                 CAPACITY PART OF THE TAPPING FEE PER UNIT OF
                 4                 CAPACITY REQUIRED BY THE NEW CUSTOMER MAY NOT
                 5                 EXCEED THE COST OF THE FACILITIES DIVIDED BY THE
                 6                 DESIGN CAPACITY. AN AUTHORITY MAY ALLOCATE ITS
                 7                 CAPACITY-RELATED FACILITIES TO DIFFERENT SECTIONS
                 8                 OR DISTRICTS OF ITS SYSTEM AND MAY IMPOSE
                 9                 ADDITIONAL CAPACITY-RELATED TAPPING FEES ON
                10                 SPECIFIC GROUPS OF EXISTING CUSTOMERS SUCH AS
                11                 COMMERCIAL AND INDUSTRIAL CUSTOMERS, IN
                12                 CONJUNCTION WITH ADDITIONAL CAPACITY REQUIREMENTS
                13                 OF THOSE CUSTOMERS. IN THE CASE OF FACILITIES TO
                14                 BE CONSTRUCTED OR ACQUIRED, THE COST SHALL NOT
                15                 EXCEED THEIR REASONABLE ESTIMATED COST SET FORTH
                16                 IN A DULY ADOPTED ANNUAL BUDGET OR A FIVE-YEAR
                17                 CAPITAL IMPROVEMENT PLAN, AND THE AUTHORITY IN
                18                 FURTHERANCE OF THE FACILITIES MUST TAKE ANY
                19                 ACTION AS FOLLOWS:
                20                         (A)  OBTAIN FINANCING FOR THE FACILITIES;
                21                         (B)  ENTER INTO A CONTRACT OBLIGATING THE
                22                     AUTHORITY TO CONSTRUCT OR PAY FOR THE COST OF
                23                     CONSTRUCTION OF THE FACILITIES OR ITS PORTION
                24                     THEREOF IN THE EVENT THAT MULTIPLE PARTIES
                25                     ARE CONSTRUCTING THE FACILITIES;
                26                         (C)  OBTAIN A PERMIT FOR THE FACILITIES;
                27                         (D)  SPEND SUBSTANTIAL SUMS OR RESOURCES
                28                     IN FURTHERANCE OF THE FACILITIES;
                29                         (E)  ENTER INTO A CONTRACT OBLIGATING THE
                30                     AUTHORITY TO PURCHASE OR ACQUIRE FACILITIES
                20010S0780B1186                 - 77 -
 
 

                 1                     OWNED BY ANOTHER;
                 2                         (F)  PREPARE AN ENGINEERING FEASIBILITY
                 3                     STUDY SPECIFICALLY RELATED TO THE FACILITIES,
                 4                     WHICH STUDY RECOMMENDS THE CONSTRUCTION OF
                 5                     THE FACILITIES WITHIN A FIVE-YEAR PERIOD; OR
                 6                         (G)  ENTER INTO A CONTRACT FOR THE DESIGN
                 7                     OF THE FACILITIES.
                 8                     (II)  DISTRIBUTION OR COLLECTION PART. THE
                 9                 FEE MAY NOT EXCEED AN AMOUNT BASED UPON THE COST
                10                 OF DISTRIBUTION OR COLLECTION FACILITIES REQUIRED
                11                 TO PROVIDE SERVICE, SUCH AS MAINS, HYDRANTS AND
                12                 PUMPING STATIONS. FACILITIES MAY INCLUDE THOSE
                13                 THAT PROVIDE EXISTING SERVICE OR THOSE THAT WILL
                14                 PROVIDE FUTURE SERVICE. THE COST OF EXISTING
                15                 FACILITIES, EXCLUDING FACILITIES CONTRIBUTED TO
                16                 THE AUTHORITY BY ANY PERSON, GOVERNMENT OR
                17                 AGENCY, SHALL BE BASED UPON THEIR REPLACEMENT
                18                 COST OR UPON HISTORICAL COST TRENDED TO CURRENT
                19                 COST USING PUBLISHED COST INDEXES OR UPON THE
                20                 HISTORICAL COST PLUS INTEREST AND OTHER FINANCING
                21                 FEES PAID ON BONDS FINANCING SUCH FACILITIES. IN
                22                 THE CASE OF EXISTING FACILITIES, OUTSTANDING DEBT
                23                 RELATED TO THE FACILITIES SHALL BE SUBTRACTED
                24                 FROM THE COST, BUT DEBT MAY NOT BE SUBTRACTED
                25                 WHICH IS ATTRIBUTABLE TO FACILITIES EXCLUSIVELY
                26                 SERVING NEW CUSTOMERS. IN THE CASE OF FACILITIES
                27                 TO BE CONSTRUCTED OR ACQUIRED, THE COST SHALL NOT
                28                 EXCEED THEIR REASONABLE ESTIMATED COST. UNDER ALL
                29                 COST APPROACHES, THE COST OF DISTRIBUTION OR
                30                 COLLECTION FACILITIES SHALL BE REDUCED BY THE
                20010S0780B1186                 - 78 -
 
 

                 1                 AMOUNT OF GRANTS OR CAPITAL CONTRIBUTIONS WHICH
                 2                 HAVE FINANCED THEM. THE DISTRIBUTION OR
                 3                 COLLECTION PART OF THE TAPPING FEE PER UNIT OF
                 4                 CAPACITY REQUIRED BY THE NEW CUSTOMER MAY NOT
                 5                 EXCEED THE COST OF THE FACILITIES DIVIDED BY THE
                 6                 DESIGN CAPACITY. AN AUTHORITY MAY ALLOCATE ITS
                 7                 DISTRIBUTION-RELATED OR COLLECTION-RELATED
                 8                 FACILITIES TO DIFFERENT SECTIONS OR DISTRICTS O