204.602. Proceedings for reorganization, requirements. - Missouri Statutes

Proceedings for reorganization, requirements.

204.602. 1. Proceedings for the new formation of a reorganizedcommon sewer district under sections 204.600 to 204.640 shall besubstantially as follows: a petition in duplicate describing the proposedboundaries of the reorganized district sought to be formed, accompanied bya plat of the proposed district, shall first be filed with each countycommission having jurisdiction in the geographic area the proposed districtis situated. Such petition shall be ruled on by each county commissionhaving jurisdiction within thirty days from the date of hearing thepetition. If the petition for the reorganized district is rejected by anycounty commission having jurisdiction, no further action on the proposeddistrict shall take place before the county commission which rejected thepetition or the circuit court of that county in the county which rejectedthe petition. If approved by each county commission having jurisdiction, apetition in duplicate describing the proposed boundaries of the reorganizeddistrict sought to be formed, accompanied by a plat of the proposeddistrict, shall be filed with the clerk of the circuit court of the countywherein the proposed district is situated or with the clerk of the circuitcourt of the county having the largest acreage proposed to be included inthe proposed district, in the event that the proposed district embraceslands in more than one county. Such petition, in addition to such boundarydescription, shall set forth an estimate of the number of customers of theproposed district, the necessity for the formation of the district, theprobable cost of acquiring or constructing sanitary sewer improvements withthe district, if appropriate, an approximation of the assessed valuation oftaxable property within the district, whether the board of trustees shallbe elected or appointed by the county commission, and such otherinformation as may be useful to the court in determining whether or not thepetition should be granted and a decree of incorporation entered. Suchpetition shall be accompanied by a cash deposit of fifty dollars as anadvancement of the costs of the proceeding. The petition shall be signedby not less than fifty voters or property owners within the proposeddistrict and shall request the incorporation of the territory thereindescribed into a reorganized common sewer district. The petition shall beverified by at least one of the signers.

2. Upon filing, the petition shall be presented to the circuit court,and such court shall fix a date for a hearing on such petition, as providedin this section. The clerk of the court shall give notice of the petitionfiling in some newspaper of general circulation in the county in which theproceedings are pending. If the district extends into any other county,such notice also shall be published in some newspaper of generalcirculation in such other county. The notice shall contain a descriptionof the proposed boundary lines of the district and the general purposes ofthe petition. The notice shall set forth the date fixed for the hearing onthe petition, which shall not be less than fifteen nor more than twenty-onedays after the date of the last publication of the notice, and shall be onsome regular judicial day of the court that the petition is pending. Suchnotice shall be signed by the clerk of the circuit court and shall bepublished in three successive issues of a weekly newspaper or in a dailypaper once a week for three consecutive weeks.

3. The court, for good cause shown, may continue the case or thehearing from time to time until final disposition.

4. Exceptions to the formation of a district, or to the boundariesoutlined in the petition for incorporation, may be made by any voter orproperty owner within the proposed districts, provided that such exceptionsare filed not less than five days prior to the date set for the hearing onthe petition. Such exceptions shall specify the grounds upon which theexceptions are being made. If any such exceptions are filed, the courtshall take them into consideration in passing upon the petition and alsoshall consider the evidence in support of the petition and in support ofthe exceptions made. Should the court find that the petition should begranted but that changes should be made in the boundary lines, it shallmake such changes in the boundary lines as set forth in the petition as thecourt may deem proper and enter its decree of incorporation, with suchboundaries as changed. No public sewer district shall be formed under thischapter, chapter 249, RSMo, section 247.035, RSMo, or any sewer districtcreated and organized under constitutional authority, the boundaries ofwhich shall encroach upon the corporate boundaries of any sewer districtthen existing or upon the certificated boundaries then existing of anysewer corporation providing service under a certificate of convenience andnecessity granted by the public service commission. Nor shall any publicsewer district extend wastewater collection and treatment services withinthe boundaries of another district without a written cooperative agreementbetween such districts or within the certificated boundaries then existingof any sewer corporation providing service under a certificate ofconvenience and necessity granted by the public service commission withouta written cooperative agreement between the public sewer district and thecertificated sewer corporation.

5. Should the court find that it would not be in the public interestto form such a district, the petition shall be dismissed at the cost of thepetitioners. If the court should find in favor of the formation of suchdistrict, the court shall enter its decree of incorporation, setting forththe boundaries of the proposed district as determined by the court underthe hearing. The decree shall further contain an appointment of fivevoters from the district to constitute the first board of trustees of thedistrict. The court shall designate such trustees to staggered terms fromone to five years such that one director is appointed or elected each year.The trustees appointed by the court shall serve for the terms designatedand until their successors have been appointed or elected as provided insection 204.610. The decree shall further designate the name of thedistrict by which it shall officially be known.

6. The decree of incorporation shall not become final and conclusiveuntil it is submitted to the voters residing within the boundariesdescribed in such decree and until it is assented to by a majority of thevoters as provided in subsection 9 of this section or by two-thirds of thevoters of the district voting on the proposition. The decree shall providefor the submission of the question and shall fix the date of submission.The returns shall be certified by the election authority to the circuitcourt having jurisdiction in the case, and the court shall enter its ordercanvassing the returns and declaring the result of such election.

7. If a majority of the voters of the district voting on suchproposition approve of the proposition, then the court shall, in such orderdeclaring the result of the election, enter a further order declaring thedecree of incorporation to be final and conclusive. In the event, however,that the court should find that the question had not been assented to bythe majority required in this section, the court shall enter a furtherorder declaring such decree of incorporation to be void. No appeal shallbe permitted from any such decree of incorporation nor from any of theaforesaid orders. In the event that the court declares the decree ofincorporation to be final, the clerk of the circuit court shall filecertified copies of such decree of incorporation and of such final orderwith the secretary of state of the state of Missouri, with the recorder ofdeeds of the county or counties in which the district is situated, and withthe clerk of the county commission of the county or counties in which thedistrict is situated.

8. The costs incurred in the formation of the district shall be taxedto the district, if the district is incorporated; otherwise the costs shallbe paid by the petitioners.

9. If petitioners seeking formation of a reorganized common sewerdistrict specify in their petition that the district to be organized shallbe organized without authority to issue general obligation bonds, then thedecree relating to the formation of the district shall recite that thedistrict shall not have authority to issue general obligation bonds. Thevote required for such a decree of incorporation to become final andconclusive shall be a simple majority of the voters of the district.

10. Once a reorganized sewer district is established, the boundariesof the reorganized sewer district may be extended or enlarged from time totime upon the filing, with the clerk of the circuit court havingjurisdiction, of a petition by either:

(1) The board of trustees of the reorganized sewer district and fiveor more voters or landowners within the territory proposed to be added tothe district; or

(2) The board of trustees and a majority of the landowners within theterritory that is proposed to be added to the reorganized sewer district.

If the petition is filed by a majority of the voters or landowners withinthe territory proposed to be added to the reorganized sewer district, thepublication of notice shall not be required, provided notice is posted inthree public places within such territory at least seven days before thedate of the hearing, and provided that there is sworn testimony by at leastfive landowners in such territory, or a majority of the landowners if thetotal landowners in the area are fewer than ten. Otherwise the proceduresfor notice substantially shall follow the procedures in subsection 2 ofthis section for formation. Territory proposed to be added to thereorganized sewer district may be either contiguous or reasonably close tothe boundaries of the existing district, provided that it shall not includeany territory within the corporate boundaries of any sewer district thenexisting or within the certificated boundaries then existing of any sewercorporation providing service under a certificate of convenience andnecessity granted by the public service commission. Upon the entry of afinal judgment declaring the court's decree of territory proposed to beadded to the reorganized sewer district to be final and conclusive, thecourt shall modify or rearrange the boundary lines of the reorganized sewerdistrict as may be necessary or advisable. The costs incurred in theenlargement or extension of the district shall be taxed to the district, ifthe district is enlarged or extended. Otherwise, such costs shall be paidby the petitioners. However, no costs shall be taxed to the trustees ofthe district.

11. Should any landowner who owns real estate that is not within thecertificated boundaries of any sewer corporation providing service under acertificate of convenience and necessity granted by the public servicecommission or within another sewer district organized under this chapter orchapters 247 or 249, RSMo, or under the Missouri Constitution, but that iscontiguous or reasonably close to the existing boundaries of thereorganized sewer district, desire to have such real estate incorporated inthe district, the landowner shall first petition the board of trustees forits approval. If such approval is granted, the secretary of the boardshall endorse a certificate of the board's approval of the petition. Thepetition so endorsed shall be filed with the clerk of the circuit court inwhich the reorganized sewer district is incorporated. It then shall be theduty of the court to amend the boundaries of such district by a decreeincorporating the real estate. A certified copy of this amended decreeincluding the real estate in the district then shall be filed in the officeof the recorder, in the office of the county clerk of the county in whichthe real estate is located, and in the office of the secretary of state.The costs of this proceeding shall be borne by the petitioning propertyowner.

12. The board of trustees of any reorganized common sewer districtmay petition the circuit court of the county containing the majority of theacreage in the district for an amended decree of incorporation to allowthat district to engage in the construction, maintenance, and operation ofwater supply and distribution facilities that serve ten or more separateproperties located wholly within the district, are not served by anotherpolitical subdivision, or are not located within the certificated area of awater corporation as defined in chapter 386, RSMo, or within a public watersupply district as defined in chapter 247, RSMo, and the operation andmaintenance of all such existing water supply facilities. The petitionshall be filed by the board of trustees, and all proceedings shall be insubstantially the same manner as in action for initial formation of areorganized common sewer district, except that no vote of the residents ofthe district shall be required. All applicable provisions of this chaptershall apply to the construction, operation, and maintenance of water supplyfacilities in the same manner as they apply to like functions relating tosewer treatment facilities.

(L. 2007 S.B. 22)