§ 407-602. Withdrawal of member municipality

A member municipality may withdraw from the District upon the terms and conditions specified below:

(1) Withdrawal prior to the District incurring bonded indebtedness or entering long-term contracts.

(A) The Board of Supervisors shall not enter into any long-term contract, or call a special meeting on incurring long-term debt for a minimum of 12 months from the date of establishment of the District, and until the District shall have prepared and adopted a solid waste management plan in accordance with No. 78 of the Acts of 1987 and the State solid waste management plan.

(B) No member municipality may withdraw from the District for a period of one year from the date of establishment of the District.

(C) After the expiration of one year from the date of the establishment of the District or prior to the District incurring bonded indebtedness or entering into a long-term contract, a member municipality may vote to withdraw in the same manner as the vote for adoption of the agreement by such member municipality. If a majority of the voters of a member municipality present and voting at a meeting duly warned for such purpose shall vote to withdraw from the District, the vote shall be certified by the clerk of that municipality and presented to the Board of Supervisors. Thereafter, the Board shall give notice to the remaining member municipalities of the vote to withdraw and shall hold a meeting to determine if it is in the best interests of the District to continue to exist. Representatives of the member municipalities shall be given an opportunity to be heard at such meeting together with any other interested persons. After such a meeting, the Board of Supervisors may declare the District dissolved immediately or as soon thereafter as the financial obligations of the District and of each member municipality on account thereof have been satisfied, or it may declare that the District shall continue to exist despite the withdrawal of such member municipality. The membership of the withdrawing municipality shall terminate as soon after such vote to withdraw as the financial obligations of said withdrawing municipality have been paid to the District.

(2) Withdrawal after 12 months from the date of establishment of the District. After the expiration of 12 months from the date of establishment of the District or after the District has incurred bonded indebtedness or entered into a long-term contract, a member municipality may vote to withdraw in the same manner as the vote for adoption of the agreement by such member municipality. It shall be a condition that the withdrawing municipality shall enter into a written agreement with the District whereby such withdrawing municipality shall be obligated to continue to pay its share of the debt incurred by the District for the remaining bonding or contract term. In addition, the withdrawing municipality shall obligate itself to pay the cost of redesigning and rebuilding any facility of the District occasioned because of the reduced volume of solid waste. The cost shall be determined by an independent engineering firm hired by the Board of Supervisors. These additional costs shall be paid either in a lump sum or in installments at such times and in such amounts as required by the Board of Supervisors. In addition, if the District shall have entered into long, term contractual commitments, no withdrawal of a town or city shall be permitted during the period of such commitment if such withdrawal would adversely affect the obligations of the District thereunder or its ability or rights to procure the means for payment, continuation, and discharge thereof.