§ 409-601. Withdrawal of a municipality

(a) Subject to the provisions of subsection (b) of this section, a member  municipality may vote to withdraw from this chapter in the same manner as it votes to adopt the chapter if one year has elapsed since the District has become a body politic and corporate and if the District has not voted to bond for construction and improvements, all in accordance with 24 V.S.A. § 4863(g). The provisions of 24 V.S.A. § 4863(i) and (j) shall apply so that any vote of withdrawal taken less than one year from the time the District has become a body politic and corporate or any vote of withdrawal taken after the District has voted to bond for construction and improvements shall be null and void. The membership of a withdrawing member shall terminate as of one year following a valid vote to withdraw or as soon after such one-year period as the financial obligations of the withdrawing member have been paid to the District. All of the foregoing notwithstanding, however, in the event that the General Assembly of the State of Vermont shall specifically approve, then a member may vote to withdraw from the District at any time.

(b) The financial obligations of a withdrawing member shall include all ongoing costs and assessments of the District until the withdrawing member has entered into a written agreement satisfactory to counsel for the District obliging the withdrawing municipality as follows:

(1) To continue to pay its share of all debts incurred by the District for the remaining terms of all bonds and contracts in existence at the time when the vote to withdraw was taken.

(2) To pay the costs of redesigning, rebuilding, or otherwise changing any facility of the District which may be occasioned by the reduced volume of solid waste resulting from the withdrawal of the member. Such costs shall be determined by an independent engineering firm hired by the Board and shall bind both the Board and the withdrawing municipality.

(3) To pay its share, based upon its assessment for the year in which it withdraws, of the defense costs and judgment rendered in any legal action brought against the District arising or accruing in any year during which it was a member of the District.

(4) To pay its share, based upon its assessment for the year in which it withdraws, of all unbudgeted costs and expenses of the District arising out of the activities of the District during the withdrawing member's term of membership, regardless of when such costs and expenses may be discovered.

(5) To pay all of these additional costs either in a lump sum or in installments at such times and in such amounts as required by the Board.

(c) Subsections (a) and (b) of this section notwithstanding, in the event there is a recycling or treatment facility or contracts for recycling or treatment in effect, and in the further event that the withdrawal of a member would reduce the amount of solid waste generated to less than the minimum volume required to meet the District's long-term contractual commitments related thereto, then no withdrawal of a member shall be permitted during the term of such commitments.

(d) After a member has voted to withdraw, the Board shall give notice to the remaining members of the vote to withdraw and shall hold a meeting to determine if it is in the best interest of the District to continue to exist. All interested parties shall be given an opportunity to be heard. If the Board determines that it would be in the best interests of the District to cease operations, the Board may prepare and implement a plan for dissolution of the District.