18-2439.

Agency; dissolution; withdrawal of municipality; outstanding bonds, how treated; assets, how distributed; municipality; expelled or suspended; participation terminated or suspended; fair and reasonable procedure; notice; liability.

(1) An agency shall be dissolved upon the adoption, by the governing bodies of at least half of the participating municipalities, of an ordinance or resolution setting forth the determination that the need for such municipality to act cooperatively through an agency no longer exists. An agency shall not be dissolved so long as the agency has bonds outstanding, unless provision for full payment of such bonds and interest thereon, by escrow or otherwise, has been made pursuant to the terms of such bonds or the ordinance, resolution, trust indenture, or security instrument securing such bonds. If the governing bodies of one or more, but less than a majority, of the participating municipalities adopt such an ordinance or resolution, such municipalities shall be permitted to withdraw from participation in the agency, but such withdrawal shall not affect the obligations of such municipality pursuant to any contracts or other agreements with such agency. Such withdrawal shall not impair the payment of any outstanding bonds or interest thereon. In the event of the dissolution of an agency, its board shall provide for the disposition, division, or distribution of the agency's assets among the participating municipalities by such means as such board shall determine, in its sole discretion, to be fair and equitable. The board may provide in its bylaws a method by which to terminate a municipality's participation in an agency.

(2)(a) No participating municipality of an agency may be expelled or suspended, and no participation in such agency may be terminated or suspended except pursuant to a procedure that is fair and reasonable and is carried out in good faith.

(b) A procedure is fair and reasonable when either:

(i) The charter or bylaws set forth a procedure that provides:

(A) Not less than fifteen days' prior written notice of the expulsion, suspension, or termination and the reasons therefor; and

(B) An opportunity for the participating municipality to be heard, orally or in writing, not less than five days before the effective date of the expulsion, suspension, or termination by a person or persons authorized to decide that the proposed expulsion, suspension, or termination not take place; or

(ii) A procedure takes into consideration all of the relevant facts and circumstances.

(c) Any written notice given by mail must be given by first-class or certified mail sent to the last-known address of the participating municipality shown on the agency's records.

(d) Any proceeding challenging an expulsion, suspension, or termination, including a proceeding in which defective notice is alleged, must be commenced within one year after the effective date of the expulsion, suspension, or termination.

(e) A participating municipality that has been expelled, suspended, or terminated may be liable to the agency for dues, assessments, fees, or contractual obligations as a result of obligations incurred or commitments made prior to expulsion, suspension, or termination.