An Act To
Maine Legislature, Session 125, LD 1620
Committee Amendment CA_A_S414 (Senate)

COMMITTEE AMENDMENT" A" to S.P. 530, L.D. 1620, Bill, "An Act To 
Amend the Charter of the Ogunquit Sewer District" 
II 
Amend the bill by striking out all of section 2 and inserting the following: 
'Sec. 2. P&SL 1963, c. 87, §1-A is enacted to read: 
Sec. I-A. Powers. The district has all powers, rights, privileges and immunities of 
similar corporations or necessary for the accomplishment of the district's purposes.' 
Amend the bill by inserting after section 4 the following: 
'Sec. 5. P&SL 1963, c. 87, §6, as amended by P&SL 2001, c. 19, §6, is repealed 
and the following enacted in its place: 
Sec. 6. Limitations on crossing a public utility. If a sewer line of the district 
crosses the property or line of any other public utility, unless consent is given by the other 
public utility as to place, manner and conditions of the crossing within 30 days after 
consent is requested by the district, the Public Utilities Commission shall determine the 
place, manner and conditions of the crossing, and all work on the property of the public 
utility must be done under the supervision and to the satisfaction of the public utility, but 
at the expense of the district. If a sewer line of the district crosses the property or line of 
a railroad corporation, the procedure is the same as for crossing the property of a public 
utility except that the Department of Transportation shall determine the place, manner 
and conditions of the crossing. Nothing in this section may be construed as authorizing 
the district to take by right of eminent domain any of the property or facilities of any 
other public utility used or acquired for future use by the owner of the public utility in the 
performance of a public duty, unless expressly authorized by act of the Legislature.' 
Amend the bill by striking out all of section 6 and inserting the following: 
'Sec. 6. P&SL 1963, c. 87, §8-A is enacted to read: 
Sec. 8-A. Lease of property. The district's lease of its property is governed by 
the Maine Revised Statutes, Title 38, section 1252, subsection 10. 
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Sec. 7. P&SL 1963, c. 87, §9, as amended by P&SL 2001, c. 19, §6, is repealed 
and the following enacted in its place: 
Sec. 9. Conditions for carrying out work. If the district enters, digs up or 
excavates any public way or other land for the purpose of laying or maintaining its 
sewers, drains or pipes, constructing or maintaining manholes or catch basins or their 
appurtenances or for any other purpose, the work must be done expeditiously, and on 
completion of the work the district shall restore the way or land to the condition it was in 
prior to such work or to a condition equally good. If the character of the work is such as 
to endanger travel on any public way, the municipal officers of the municipality in which 
the work is being done may order a temporary closing of the way and of any intersecting 
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way upon request of the district, and the way remains closed to public travel until the 
municipal officers determine it restored to a condition safe for traffic.' 
Amend the bill in section 7 in Sec. 12 in the first line (page 2, line 20 in L.D.) by 
striking out the following: "Every" and inserting the following: 'Notwithstanding the 
Maine Revised Statutes, Title 38, section 1252, subsection 3, every' 
Amend the bill in section 9 by striking out all of the last paragraph (page 3, lines 36 
to 38 in L.D.) and inserting the following: 
'Members of the board of trustees are eligible to serve in any office under the board. 
+He Notwithstanding the Maine Revised Statutes, Title 38, section 1252, subsection 5, the 
trustees receive a salary not to exceed ~ 
$950 per year and the treasurer may be 
allowed further compensation as the trustees determine.' 
Amend the bill by striking out all of sections 10 to 13 and inserting the following: 
'Sec. 10. P&SL 1963, c. 87, §17, as amended by P&SL 2001, c. 19, §8, is 
repealed and the following enacted in its place: 
Sec. 17. Authorized to borrow money and to issue bonds and notes. To 
procure funds for the purposes of this Act and for such other expenses as may be 
necessary for the carrying out of the purposes, the district without a district vote but by 
action of its board of trustees is authorized to raise funds from sources other than 
operational activities by borrowing money in accordance with this section. The district 
may issue its notes and bonds in one series or in separate series from time to time, as long 
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as the aggregate outstanding principal balance at anyone time does not exceed 
$7,000,000, unless a higher debt obligation limit is approved pursuant to the Maine 
Revised Statutes, Title 38, section 1256. 
All bonds, notes or other evidences of indebtedness must have inscribed upon their 
face the words "Ogunquit Sewer District" and must be signed by the treasurer and 
countersigned by the chair of the board of trustees of the district and, if coupon bonds are 
issued, the interest coupons attached must bear the facsimile of the signature of the 
treasurer. Bonds must be issued in accordance with the following provisions. 
1. Authorization of bonds. The district may provide by resolution of its board of 
trustees, without district vote, for the borrowing of money and the issuance from time to 
time of bonds for any of its corporate purposes, including, but not limited to: 
A. Paying and refunding its indebtedness; 
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B. Paying any necessary expenses and liabilities incurred, including organizational 
and other necessary expenses and liabilities, whether incurred by the district or a 
municipality in the district, the district being authorized to reimburse a municipality 
in the district for any such expenses incurred or paid by the municipality; 
C. Paying costs directly or indirectly associated with acquiring properties, paying 
damages, laying sewers, drains and conduits, constructing, maintaining and operating 
sewage and treatment plants or systems and making renewals, additions, extensions 
and improvements to the same, and to cover interest payments during the period of 
construction and for such period thereafter as the trustees may determine; 
D. Providing such reserves for debt service, repairs and replacements or other capital 
or current expenses as may be required by a trust agreement or resolution securing 
bonds; or 
E. Any combination of these purposes. 
Bonds may be issued as general obligations of the district or as special obligations 
payable solely from particular funds. The principal of and premium, if any, and interest 
on all bonds are payable solely from the funds provided for that purpose from revenues. 
For purposes of this Act, "revenues" means and includes the proceeds of bonds, all 
revenues, rates, fees, entrance charges, assessments, rents and other receipts derived by 
the district from the operation of its sewer system and other properties, including, but not 
limited to, investment earnings and the proceeds of insurance, condemnation, sale or 
other disposition of properties. All bonds issued by the district are legal obligations of the 
district and the district is declared to be a quasi-municipal corporation within the meaning 
of the Maine Revised Statutes, Title 30-A, section 5701. Bonds may be issued without 
obtaining the consent of a commission, board, bureau or agency of the State or of a 
municipality encompassed by the district and without any proceedings or conditions other 
than those specifically required by this Act. Bonds issued do not constitute a debt or 
liability of the State or of a municipality encompassed by the district or a pledge of the 
faith and credit of the State or a municipality. The bonds are payable solely from the 
funds provided for that purpose, and a statement to that effect must be recited on the face 
of the bonds. 
2. Notes. The district may also provide by resolution of its board of trustees, without 
district vote, for the issuance from time to time of notes in anticipation of bonds 
authorized and of notes in anticipation of the revenues to be collected or received in any 
year or in anticipation of the receipt of federal or state grants or other aid. The issue of 
these notes is governed by the applicable provisions of this Act relating to the issue of 
bonds, except that notes in anticipation of revenue must mature no later than one year 
from their respective dates, and notes issued in anticipation of federal or state grants or 
other aid and renewals of such notes must mature no later than the expected date of 
receipt of those grants or aid. Notes in anticipation of revenue issued to mature less than 
one year from their dates may be renewed from time to time by the issue of other notes, 
as long as the period from the date of an original note to the maturity of a note issued to 
renew or pay the same or the interest on the note does not exceed one year. 
The district may enter into agreements with the State or the United States, or an agency of 
either, or a municipality, corporation, commission or board authorized to grant or loan 
money to or otherwise assist in the financing of projects of the type that the district is 
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authorized to carry out and to accept grants and borrow money from any such 
government, agency, municipality, corporation, commission or board as may be 
necessary or desirable to accomplish the purposes of the district. 
3. Maturity; interest; form; temporary bonds. The bonds issued under this Act 
must be dated, must mature at such time or times not exceeding 40 years from their date 
or dates and must bear interest at such rate or rates as may be determined by the board of 
trustees, and may be made redeemable before maturity, at the option of the district, at 
such price or prices and under such terms and conditions as may be fixed by the board of 
trustees prior to the issuance of the bonds. The board of trustees shall determine the form 
of the bonds, including any interest coupons to be attached to the bonds, and the manner 
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of execution of the bonds, and shall fix the denomination or denominations of the bonds 
and the place or places of payment of principal and interest, which may be at any bank or 
trust company inside or outside the State. Bonds must be executed in the name of the 
district by the manual or facsimile signature of such officer or officers as may be 
authorized in the resolution to execute the bonds, but at least one signature on each bond 
must be a manual signature. Coupons, if any, attached to the bonds must be executed with 
the facsimile signature of the officer or officers of the district designated in the resolution. 
If an officer whose signature or a facsimile of whose signature appears on any bonds or 
coupons ceases to be an officer before the delivery of the bonds, the signature or its 
facsimile is valid and sufficient for all purposes as if the officer had remained in office 
until the delivery. Notwithstanding any ofthe other provisions of this Act or any recitals 
in any bonds issued under this Act. all such bonds are deemed to be negotiable 
instruments under the laws of this State. The bonds may be issued in coupon or registered 
form, or both, as the board of trustees may determine, and provision may be made for the 
registration of any coupon bonds as to principal alone and as to both principal and interest 
and for the reconversion into coupon bonds of any bonds registered as to both principal 
and interest. The board of trustees may sell the bonds in such manner, either at public or 
private sale, and for such price as the board may determine to be for the best interests of 
the district. The proceeds of the bonds of each issue must be used solely for the purpose 
for which those bonds have been authorized and must be disbursed in such manner and 
under such restrictions, if any, as the board of trustees may provide in the resolution 
authorizing the issuance of the bonds or in the trust agreement securing the bonds. The 
resolution providing for the issuance of bonds and a trust agreement securing the bonds 
may contain such limitations upon the issuance of additional bonds as the board of 
trustees may determine proper, and these additional bonds must be issued under such 
restrictions and limitations as may be prescribed by that resolution or trust agreement. 
Prior to the preparation of definitive bonds, the board of trustees may, under like 
restrictions, issue interim receipts or temporary bonds, with or without coupons, 
exchangeable for definitive bonds when those bonds are executed and are available for 
delivery. The board of trustees may provide for the replacement of any bond that is 
mutilated, destroyed or lost. 
4. Pledges and covenants; trust agreement. In the discretion of the board of 
trustees of the district. an issue of bonds may be secured by a trust agreement by and 
between the district and a corporate trustee, which may be a trust company inside or 
outside the State. 
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The resolution authorizing the issuance of the bonds or the trust agreement may pledge or 
assign, in whole or in part, the revenues and other money held or to be received by the 
district and any accounts and 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 district, and the proceeds of the bonds, but may not conveyor mortgage the sewer 
system or any other properties of the district. The resolution may also contain provisions 
for protecting and enforcing the rights and remedies of the bondholders as may be 
reasonable and proper and not in violation of law, including, but not limited to, 
convenants setting forth the duties of the district and the board of trustees in relation to 
the acquisition, construction, reconstruction, improvement, repair, maintenance, operation 
and insurance of its sewer system or of its other properties; the fixing and revising of 
rates, fees and charges; the application of the proceeds of bonds; the custody, 
safeguarding and application of revenues; and defining defaults and providing for 
remedies in the event of a default, which may include the acceleration of maturities, the 
establishment of reserves and the making and amending of contracts. The resolution or 
trust agreement may set forth the rights and remedies of the bondholders and of the 
trustee, if any, and may restrict the individual right of action by bondholders as is 
customary in trust agreements or trust indentures securing bonds or debentures of 
corporations. In addition, the resolution or trust agreement may contain such other 
provisions as the board of trustees may determine reasonable and proper for the security 
of the bondholders. All expenses incurred in carrying out the resolution or trust 
agreement may be treated as a part of the cost of operation. The pledge by a resolution or 
trust agreement is valid and binding and is deemed continuously perfected for the 
purposes of the Uniform Commercial Code from the time when the pledge is made. All 
revenues, money, rights and proceeds pledged and thereafter received by the district are 
immediately subject to the lien of the pledge without a physical delivery or segregation or 
further action under the Uniform Commercial Code or otherwise, and the lien of the 
pledge is valid and binding against all parties having claims of any kind in tort, contract 
or otherwise against the district irrespective of whether those parties have notice of the 
lien ofthe pledge. 
The resolution authorizing the issuance of bonds under this Act, or a trust agreement 
securing those bonds, may provide that all or a sufficient amount of revenues, after 
providing for the payment of the cost of repair, maintenance and operation and reserves 
as may be provided in the resolution or trust agreement, are set aside at such regular 
intervals as may be provided in the resolution or trust agreement and deposited in the 
credit of a fund for the payment of the interest on and the principal of bonds issued under 
this Act as the payment becomes due, and the redemption price or purchase price of 
bonds retired by call or purchase. The use and disposition of money to the credit of the 
fund are subject to such regulations as may be provided in the resolution authorizing the 
issuance of the bonds or in the trust agreement securing the bonds and, except as may 
otherwise be provided in the resolution or trust agreement, the fund is a fund for the 
benefit of all bonds without distinction or priority of one over another. 
5. Trust funds. Notwithstanding any other law, all money received pursuant to the 
authority of this Act is deemed to be trust funds, to be held and applied solely as provided 
in this Act. The resolution authorizing the issuance of bonds or the trust agreement 
securing the bonds must provide that any officer to whom, or bank, trust company or 
other fiscal agent to which, that money is paid shall act as trustee of that money and shall 
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hold and apply the same for the purposes of this Act, subject to such regulations as may 
be provided in the resolution or trust agreement or as may be required by this Act. 
6. Remedies. A holder of bonds issued under this Act or of any of the coupons 
appertaining to the bonds, and the trustee under a trust agreement, except to the extent the 
rights given may be restricted by the resolution authorizing the issuance of those bonds or 
trust agreement, may, either at law or in equity, by suit, action, mandamus or other 
proceeding, including proceedings for the appointment of a receiver to take possession 
and control of the properties of the district, protect and enforce all rights under the laws 
of the State or granted under this Act or under the resolution or trust agreement, and may 
enforce and compel the performance of all duties required by this Act or by the resolution 
or trust agreement to be performed by the district or by an officer of the district, including 
the fixing, charging and collecting of rates, fees and charges for the use of or for the 
services and facilities furnished by the district. 
7. Refunding bonds. The district by resolution of its board of trustees, without 
district vote, may issue refunding bonds for the purpose of paying its bonds 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 board of trustees determines 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 on the refunding, 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 a trust agreement or 
resolution securing bonds. The issue of refunding bonds, the maturities and other details 
of the refunding bonds, the security for the refunding bonds, the rights of the holders of 
the refunding bonds, and the rights, duties and obligations of the district in respect of the 
same are governed by the applicable provisions of the Maine Revised Statutes, Title 38, 
chapter 11 relating to the issue of bonds other than refunding bonds. 
8. Tax exemption. All bonds, notes or other evidences of indebtedness issued under 
this Act and their transfer and the income from bonds, notes or other evidences of 
indebtedness, including the profit made on the sale of bonds, notes or other evidences of 
indebtedness are at all times free from taxation within the State. 
9. Bonds declared lea:al investments. Bonds and notes issued by the district under 
this Act are made securities in which all public officers and public bodies of the State and 
its political subdivisions, all insurance companies and associations and other persons 
carrying on an insurance business, trust companies, banks, bankers, banking associations, 
savings banks and savings associations, including savings and loan associations, credit 
unions, building and loan associations, investment companies, executors, administrators, 
trustees and other fiduciaries, pension, profit-sharing, retirement funds and other persons 
carrying on a banking business, and all other persons who are now or may hereafter be 
authorized to invest in bonds or other obligations of the State, may properly and legally 
invest funds, including capital in their control or belonging to them. The bonds and notes 
are made securities that may properly and legally be deposited with and received by a 
state, municipal or public officer, or an agency or political subdivision of the State, for 
any purpose for which the deposit of bonds or other obligations of the State is now or 
may hereafter be authorized by law. 
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Sec. 11. P&SL 1963, c. 87, §19, as amended by P&SL 1975, c. 81, §6, is 
repealed and the following enacted in its place: 
Sec. 19. Rates and tolls; application of revenues. All individuals, firms and 
corporations, whether public, private or municipal, shall pay to the treasurer of the district 
rates, tolls, rents, entrance charges and other lawful charges established by the board of 
trustees in accordance with this Act for the services used or available to them. The sewer 
rates may be adjusted for the quality and character of the material discharged into the 
sewer system and may include discounts and late charges, rates for the district's 
connection fees, impact fees and readiness to serve charge against owners or persons in 
possession or against whom the taxes are assessed of all buildings or premises intended 
for human habitation or occupancy, whether occupied or not, that abut on a street or 
location through which the district has constructed a sewer line or that are within 150 feet 
of a sewer line constructed by the district, even if the buildings or premises are not 
actually connected to the sewer line. 
In this Act, the words "other lawful charges" or "other charges" include, but are not 
limited to, interest on delinquent accounts at a rate not to exceed the highest lawful rate 
set by the Treasurer of State for municipal taxes. 
Rates, tolls, rents and entrance charges must be uniform within the district if the cost 
to the district of installation and maintenance of sewers or their appurtenances and the 
cost of service is substantially uniform; but nothing precludes the district from 
establishing a higher rate, toll, rent or entrance charge than the regular rates, tolls, rents 
and entrance charges in sections where, for any reason, the cost to the district of 
construction and maintenance or the cost of service exceeds the average, but the higher 
rates, tolls, rents and entrance charges must be uniform throughout the sections where 
they apply. 
Prior to the adoption of a new rate schedule, the board of trustees shall hold a public 
hearing regarding the proposed rate schedule. The board of trustees shall publish the 
proposed rates and notice of the hearing at least once in a newspaper having a general 
circulation in the district not less than 7 days prior to the hearing. The district shall mail 
to each ratepayer a notice of the public hearing and the proposed new rate at least 14 days 
prior to the hearing. 
Notwithstanding any other provision of law, districts that share, supply or contract 
with another district for services shall establish rates, tolls, rents and entrance charges 
mutually agreeable to the board of each participating district. 
The sewer rates, tolls, rents, entrance charges, assessments and other lawful charges 
established by the board of trustees in accordance with this Act must be fixed and 
adjusted to produce in the aggregate revenue at least sufficient, together with any other 
money available, to: 
1. 
Current operating expenses. 
Pay the current expenses of operating and 
maintaining the sewerage, drainage and treatment system of the district; 
2. Payment of interest and principal. Pay the principal of, premium, if any, and 
interest on all bonds and notes issued by the district under this Act and the Maine Revised 
Statutes, Title 38, chapter 11 as the same become due and payable; 
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3. Sinking fund for retirement of obligations; repairs; replacement; renewals. 
Create and maintain sinking funds and other reserves for retirement of obligations as may 
be required by any trust agreement or resolution securing bonds and notes and provide 
funds for paying the cost of all necessary repairs, replacements and renewals of the 
sewerage, drainage and treatment systems of the district; and 
4. Pavment of obligations. 
Payor provide for all amounts that the district may be 
obligated to payor provide for by law or contract, including a resolution or contract with 
or for the benefit of the holders of its bonds and notes. 
Sec. 12. P&SL 1963, c. 87, §24-A is enacted to read: 
Sec. 24-A. Landlord access to tenant bill payment information. Landlord 
access to payment information related to sewer service is governed by the Maine Revised 
Statutes, Title 38, section 1252, subsection II. 
Sec. 13. P&SL 1963, c. 87, §28-A is enacted to read: 
Sec. 28-A. 
Coordination with municipal planning. 
The district shall 
coordinate municipal planning and sewer extension planning in accordance with the 
Maine Revised Statutes, Title 38, section 1252, subsection 9.' 
Amend the bill by relettering or renumbering any nonconsecutive Part letter or 
section number to read consecutively. 
SUMMARY 
This amendment modifies the charter of the Ogunquit Sewer District to bring it into 
compliance with the Maine Revised Statutes, Title 38, chapter 12 and affords the sewer 
district some powers granted to sanitary districts under the Maine Revised Statutes. The 
amendment: 
1. Adds language that describes the procedure to be taken when a public utility 
crosses the property or line of a railroad corporation; 
2. Clarifies how work done by the district must be carried out; 
3. Sets out the procedures that the district must follow to borrow money and to issue 
bonds and notes; 
4. Sets out the procedures for setting rates and tolls; 
5. Clarifies that landlord access to payment information related to sewer service is 
governed by Title 38, section 1252, subsection 11; 
6. 
Requires the district to coordinate municipal planning and sewer extension 
planning in accordance with Title 38, section 1252, subsection 9; and 
7. Strikes those sections of the bill that deal with increases in the debt obligation 
limit and sinking fund. 
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