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A.(1)  In addition to any other authority set forth therein, the governing authority of the parish of Terrebonne and the governing authority of the parish of Caddo may create consolidated waterworks or consolidated waterworks/sewerage districts, any such district hereinafter referred to as “consolidated district”, within the respective parish consisting of territory within one or more waterworks districts and may include territory not contained within an existing waterworks district.  A district may be created by ordinance of the governing authority of the parish after a hearing as required by the parish charter for the adoption of ordinances.

(2)  As a prerequisite to the creation of any consolidated special service district, the governing authority of the parish shall be furnished with a certified copy of a resolution, adopted by the governing authority of each existing district to be consolidated and by the governing authority of each municipality all or part of whose territory is proposed to be included in the consolidated district, requesting the parish to create a consolidated special service district and describing and defining the boundaries thereof.

(3)(a)  Any consolidated district created pursuant to the provisions of this Section shall be governed by a board of commissioners.  The governing authority of the parish shall appoint the commissioners and determine the number of members of said board.  However, such commission shall consist of not less than twelve and not more than eighteen members.  The initial terms of office of said board shall be determined by lot, which shall be respectively, one, two, three, four, and five years.  Subsequent appointments to the board shall be for a period of five years.  The governing authority of the parish may adopt rules and regulations to implement the provisions of this Paragraph.

(b)  Notwithstanding any other provision of law to the contrary, effective on and after July 1, 1998, the governing authority of Consolidated Waterworks District No. 1 of the parish of Terrebonne shall consist of nine members, one member to be appointed from each of the nine councilmanic districts of the parish by the parish governing authority.  The terms of the board members shall be four years, except that one of the members shall serve initial terms of one year, three shall serve initial terms of two years, two shall serve initial terms of three years, and three shall serve initial terms of four years, all as determined by lot.  No person shall be appointed to serve more than three four-year terms.  The governing authority of the parish may adopt ordinances, rules, and regulations to implement the provisions of this Subparagraph.

(4)  The board of any such district shall have absolute control and authority over the waterworks in the district and shall adopt bylaws, and rules and regulations for the proper conduct and operation of a waterworks system in the district.  The board may employ the necessary labor for directing and installing a waterworks system in the district and may employ the services of an attorney when necessary and fix his fees or his salary.  The board may effect improvement in the water system and for this purpose enter into contracts for the performance of work or the purchase of machinery.  The board itself may supervise work under its contracts, or may delegate the supervision to a licensed engineer who shall be a citizen of Louisiana.  The board may make purchases out of the funds deposited as security with the board by purchasers of water service.  The security deposit is to protect the board from loss by extending water service to such purchasers.  The board may make purchases of additional new water meters or water meters to replace those already in use, however, at least ten percent of the total amount of such funds on deposit with the board at any one time shall be maintained in a cash reserve which shall not be used or encumbered for the purchase of water meters.  The waterworks district may expropriate property for any purpose that it may find necessary in the operation of its waterworks system, and may acquire by donation or purchase any existing waterworks system in the district.  A waterworks district may dig and excavate the roads, streets, sidewalks, and alleys in the district for the purpose of laying pipeline or water mains.  It may acquire any and all machinery necessary for the purpose of affecting the object for which it is formed and shall own all sites which are acquired either by donation, purchase, expropriation, exchange, or otherwise in full ownership.  Waterworks districts may cooperate with other waterworks districts within their respective parishes, or with private individuals, associations, corporations, or municipalities.

(5)  The board of commissioners of Consolidated Waterworks District No. 1 in Terrebonne Parish may establish a plan for awarding incentive pay to its employees and may pay its employees in accordance with such plan.  The plan shall include the criteria for eligibility for incentive pay, the method by which employees shall be reviewed for eligibility, and how such eligibility shall be determined.  The plan shall be reduced to writing and shall be available for inspection by all employees.  Determination of the amount of incentive pay and which employees are to receive incentive pay shall be made in accordance with the plan by the board subject to available funds budgeted for such purpose.  Any incentive pay awarded pursuant to this Paragraph shall be in addition to any other salary the employee receives.

B.  A consolidated waterworks or waterworks/sewerage district so created shall be known and designated as “Consolidated _____ District No. _____ of the parish of ____________, Louisiana,” and as so created shall constitute a political subdivision of the state of Louisiana as defined in Article VI, Section 44(2) of the Constitution of Louisiana and, as such, shall have all of the powers accorded by law to political subdivisions of the state, including the power to cooperate with and engage in cooperative endeavors with other political subdivisions, persons, and entities as provided by Article VI, Section 20 and La. Const. Art. VII, § 14(C) , and shall constitute a district within the meaning of La. Const. Art. VI, § 19 , and as such shall enjoy all rights, powers, and privileges enjoyed by other districts of the same type under the constitution and laws of this state, including the right to issue bonds and levy taxes, and to levy special assessments.

C.  Any consolidated district may avail itself of the authority granted by Part XIII, Chapter 4, Subtitle II, Title 39 for the issuance of revenue bonds, Chapter 14-A of Subtitle III, Title 39 for the issuance of refunding bonds of any security, Part III, Chapter 4, Subtitle II, Title 39 for the issuance of general obligation bonds, La. Rev. Stat. 33:3822 et seq. for the levy of assessments for water improvements and the issuance of sewerage certificates.  It is recognized that all of the above authorities have been modified by the provisions of Chapters 13 and 13-A of Title 39.

D.  Additionally, any consolidated district may avail itself of any other authority afforded waterworks districts which may now exist or may hereafter exist regarding the levy of assessments, the incurring of debt, and the issuance of bonds.

E.(1)  After the creation of any consolidated district, notice of the creation thereof, stating the boundaries of the consolidated district shall be published in the official journal of the parish.  Thirty days after such publication, the creation of the district shall become incontestable, and no court shall have jurisdiction to entertain litigation questioning the legality of the creation of such consolidated district.  If the governing authority desires to call an election in any such consolidated district to authorize the issuance of bonds, the levy of special taxes, or the assumption of indebtedness, it may call such election and publish notice thereof prior to the expiration of the thirty-day period.

(2)  At the expiration of the thirty-day period, existing districts of the same type included in any such consolidated district shall no longer have the right to issue bonds or other obligations, and all books and records and assets thereof may be transferred to the consolidated district and thereafter, the consolidated district may use the revenues and properties of the former district as its own and may pledge such revenues to the payment of bonds of the consolidated district and may mortgage such properties as security for such bonds, unless such actions would be violative of any contractual agreement of the consolidated district.  The governing authority of the consolidated district shall cause taxes to continue to be levied for the payment of the outstanding indebtedness of each underlying district of the same type which has not been assumed by the consolidated district, as hereinafter provided, in all respects as would have been required had such consolidation not been effected.  In addition, if such indebtedness of any underlying district consists of revenue bonds or special assessment certificates payable from service charges or assessments, the governing authority of the consolidated district shall continue to impose and collect such service charges or assessments, as well as any special taxes previously authorized and legally dedicated by covenant with bondholders to the payment of maintenance or operation expenses.

(3)  Any consolidated district created hereunder availing itself of the right to issue bonds or other obligations for the purposes and in the manner set forth above or elsewhere provided in the constitution and laws of this state, may issue its refunding bonds for the purpose of refunding any outstanding revenue bonds or obligations of one or more of its underlying districts or, in its discretion, may authorize and deliver a single issue of revenue bonds for both improvement and refunding purposes.  Refunding bonds so authorized shall be authorized and issued in the manner provided by law and shall be secured in the same manner as the bonds or obligations refunded, or the governing authority, in its discretion, may provide for changes in the source of payment of such bonds or obligations as it considers desirable.  Such refunding bonds may be sold and the proceeds thereof used to pay the bonds refunded or escrowed to be used in paying the bonds or obligations refunded on the date on which they become payable through maturity or call for redemption.

F.  The creation of a consolidated district hereunder shall not affect or impair in any manner contract rights enjoyed by the holders of any outstanding bonds or obligations of the underlying districts, and to the extent required by such contract rights, taxes, service charges, and assessments on the property subject to the payment of principal of and interest on such bonds or obligations shall continue to be levied and collected as provided; however, any consolidated district may assume all or any indebtedness of its underlying districts in the manner and with the effect provided by La. Rev. Stat. 39:661 et seq. for the assumption of indebtedness by parishes.

Acts 1992, No. 239, §1, eff. June 10, 1992; Acts 1993, No. 18, §1; Acts 1997, No. 937, §1; Acts 1999, No. 715, §1.