requires two-thirds majority vote (§§ 3, 11)                                                                                                          

                                                                                                  

 

Assembly Bill No. 363–Assemblymen Grady
and Collins

 

March 17, 2003

____________

 

Joint Sponsor: Senator Amodei

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Provides for creation of Silver Springs Water and Sewer District. (BDR S‑864)

 

FISCAL NOTE:  Effect on Local Government: Yes.

                           Effect on the State: No.

 

~

 

EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to special districts; providing in skeleton form for the creation of the Silver Springs Water and Sewer District in Lyon County, Nevada; providing for the storage, conservation, distribution and sale of water within the District; authorizing the District to purchase, acquire and construct the facilities necessary to provide water and sewer service to customers within the District; authorizing the issuance of general obligation and revenue bonds; providing the power to tax; providing a penalty; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. There is hereby created a political subdivision of

1-2  this state to be known as the “Silver Springs Water and Sewer

1-3  District.” The jurisdiction and service area of the District includes

1-4  certain real property located in Lyon County, Nevada.

1-5  Sec. 2.  As used in sections 1 to 15, inclusive, of this act,

1-6  unless the context otherwise requires:

1-7  1.  “Board” means the Governing Board of the District.

2-1  2.  “District” means the Silver Springs Water and Sewer

2-2  District.

2-3  3.  “Service area” means the service area of the District

2-4  described in section 1 of this act.

2-5  Sec. 3.  The District has the following powers:

2-6  1.  To have perpetual succession.

2-7  2.  To sue and be sued in the name of the District in all courts or

2-8  tribunals of competent jurisdiction.

2-9  3.  To adopt a seal and alter it at the pleasure of the District.

2-10      4.  To enter into contracts, and employ and fix the

2-11  compensation of staff and professional advisers.

2-12      5.  To incur indebtedness pursuant to chapter 271 of NRS, issue

2-13  bonds pursuant to chapter 350 of NRS and provide for medium-term

2-14  obligations pursuant to chapter 350 of NRS to pay, in whole or in

2-15  part, the costs of acquiring, constructing and operating any lands,

2-16  easements, water rights, water, waterworks or projects, conduits,

2-17  pipelines, wells, reservoirs, structures, machinery and other property

2-18  or equipment useful or necessary to store, convey, supply or

2-19  otherwise deal with water, or to provide sewer service, and

2-20  otherwise to carry out the powers set forth in this section. For the

2-21  purposes of NRS 350.572, sections 1 to 15, inclusive, of this act do

2-22  not expressly or impliedly require an election before the issuance of

2-23  a security or indebtedness pursuant to NRS 350.500 to 350.572,

2-24  inclusive, if the obligation is payable solely from pledged revenues,

2-25  but an election must be held before incurring a general obligation.

2-26      6.  To acquire, by purchase, grant, gift, devise, lease,

2-27  construction, contract or otherwise, lands, rights-of-way, easements,

2-28  privileges, water and water rights, and property of every kind,

2-29  whether real or personal, to construct, maintain and operate, within

2-30  or without the District, all works and improvements necessary or

2-31  proper to carry out any of the objects or purposes of sections 1 to 15,

2-32  inclusive, of this act, and to complete, extend, add to, repair or

2-33  otherwise improve any works, improvements or property acquired

2-34  by it as authorized by sections 1 to 15, inclusive, of this act.

2-35      7.  To sell, lease, encumber, hypothecate or otherwise dispose

2-36  of property, whether real or personal, including water and water

2-37  rights, as is necessary or convenient to the full exercise of the

2-38  powers of the District.

2-39      8.  To adopt ordinances, rules, regulations and bylaws

2-40  necessary to exercise the powers and conduct the affairs of the

2-41  Board and District.

2-42      9.  Except as otherwise provided in this subsection, to exercise

2-43  the power of eminent domain in the manner prescribed by law,

2-44  within or without the service area of the District, to take any

2-45  property, including, without limitation, the property specified in

3-1  subsections 6 and 15, necessary or convenient for the exercise of the

3-2  powers of the District or for the provision of adequate water or

3-3  sewer service to the service area. The District shall not exercise the

3-4  power of eminent domain to acquire the water rights or waterworks

3-5  facilities of any nonprofit purveyor delivering water for domestic

3-6  use whose service area is adjacent to the District without first

3-7  obtaining the consent of the purveyor.

3-8  10.  To enter upon any land, to make surveys and locate any

3-9  necessary improvements, including, without limitation, lines for

3-10  channels, conduits, canals, pipelines, sewers, roadways and other

3-11  rights-of-way, to acquire property necessary or convenient for the

3-12  construction, use, supply, maintenance, repair and improvement of

3-13  such improvements, including works constructed and being

3-14  constructed by private owners, lands for reservoirs for the storage of

3-15  necessary water, and all necessary appurtenances, and, where

3-16  necessary and for the purposes and uses set forth in this section, to

3-17  acquire and hold the stock of corporations, domestic or foreign,

3-18  owning water or water rights, canals, waterworks, franchises,

3-19  concessions or other rights.

3-20      11.  To enter into and do any acts necessary or proper for the

3-21  performance of any agreement with the United States, or any state,

3-22  county or district of any kind, public or private corporation,

3-23  association, firm or natural person, or any number of them, for the

3-24  joint acquisition, construction, leasing, ownership, disposition, use,

3-25  management, maintenance, repair or operation of any rights, works

3-26  or other property of a kind which may be lawfully acquired or

3-27  owned by the District.

3-28      12.  To acquire the right to store water in any reservoirs, or to

3-29  carry water through any canal, ditch or conduit not owned or

3-30  controlled by the District, and to grant to any owner or lessee the

3-31  right to the use of any water or right to store such water in any

3-32  reservoir of the District, or to carry such water through any tunnel,

3-33  canal, ditch or conduit of the District.

3-34      13.  To enter into and do any acts necessary or proper for the

3-35  performance of any agreement with any district of any kind, public

3-36  or private corporation, association, firm or natural person, or any

3-37  number of them, for the transfer or delivery to any district,

3-38  corporation, association, firm or natural person of any water right or

3-39  water pumped, stored, appropriated or otherwise acquired or secured

3-40  for the use of the District, or for the purpose of exchanging the

3-41  water or water right for any other water, water right or water supply

3-42  to be delivered to the District by the other party to the agreement.

3-43      14.  To cooperate and act in conjunction with the State of

3-44  Nevada or any of its engineers, officers, boards, commissions,

3-45  departments or agencies, with the government of the United States

4-1  or any of its engineers, officers, boards, commissions, departments

4-2  or agencies, or with any public or private corporation, to construct

4-3  any work for the development, importation or distribution of water

4-4  of the District, for the protection of life or property therein, or for

4-5  the conservation of its water for beneficial use within the District, or

4-6  to carry out any other works, acts or purposes provided for in

4-7  sections 1 to 15, inclusive, of this act, and to adopt and carry out any

4-8  definite plan or system of work for any of the purposes described in

4-9  sections 1 to 15, inclusive, of this act.

4-10      15.  To store water in surface or underground reservoirs within

4-11  or without the District for the common benefit of the District, to

4-12  conserve and reclaim water for present and future use within the

4-13  District, to appropriate and acquire water and water rights and

4-14  import water into the District for any useful purpose to the District,

4-15  and to commence, maintain, intervene in and compromise in the

4-16  name of the District, or otherwise, and assume the costs and

4-17  expenses of any action or proceeding involving or affecting:

4-18      (a) The ownership or use of water or water rights within or

4-19  without the District used or useful for any purpose of the District or

4-20  of common benefit to any land situated therein;

4-21      (b) The wasteful use of water within the District;

4-22      (c) The interference with or diminution of water or water rights

4-23  within the District;

4-24      (d) The contamination or pollution of the surface or subsurface

4-25  water used in the District or any other act that otherwise renders

4-26  such water unfit for beneficial use; and

4-27      (e) The interference with this water that may endanger or

4-28  damage the residents, lands or use of water in the District.

4-29      16.  To sell and distribute water under the control of the

4-30  District, without preference, to any natural person, firm, corporation,

4-31  association, district, agency or inhabitant, public or private, for use

4-32  within the service area, to fix, establish and adjust rates, classes of

4-33  rates, terms and conditions for the sale and use of such water, and to

4-34  sell water for use outside the service area upon a finding by the

4-35  Board that there is a surplus of water above that amount required to

4-36  serve customers within the service area.

4-37      17.  To cause taxes to be levied and collected for the purposes

4-38  prescribed in sections 1 to 15, inclusive, of this act, including the

4-39  payment of any obligation of the District during its organizational

4-40  state and thereafter, and necessary engineering costs, and to assist in

4-41  the operational expenses of the District, until such taxes are no

4-42  longer required.

4-43      18.  To supplement the surface and ground-water resources of

4-44  the District by the importation and use of water from other sources

4-45  for industrial, irrigation, municipal and domestic uses.

5-1  19.  To restrict the use of the water of the District during any

5-2  emergency caused by drought or other threatened or existing water

5-3  shortage, and to prohibit the waste of the water of the District at any

5-4  time through the adoption of ordinances, rules or regulations and the

5-5  imposition of fines for violations of those ordinances, rules and

5-6  regulations.

5-7  20.  To annex area into the District in the manner prescribed for

5-8  cities in chapter 268 of NRS.

5-9  21.  To supply water under contract or agreement, or in any

5-10  other manner, to the United States or any department or agency

5-11  thereof, the State of Nevada, Lyon County, Nevada, and any city,

5-12  town, corporation, association, partnership or natural person situated

5-13  in Lyon County, Nevada, for an appropriate charge, consideration or

5-14  exchange made therefor, when such supply is available or can be

5-15  developed as an incident of or in connection with the primary

5-16  functions and operations of the District.

5-17      22.  To create assessment districts to extend mains, improve

5-18  distribution systems and acquire private water companies and

5-19  mutual water distribution systems.

5-20      23.  To lay sewer and pipe along, under, or upon public

5-21  highways, roads, streets, and alleys, and to build and erect sewage

5-22  treatment or disposal plants, either within or without the boundaries

5-23  of the District, and to compel all property owners within the area

5-24  served by the sewage system to connect their private drains and

5-25  sewer systems with the system or sewers of the District.

5-26      24.  To make and enforce all necessary and proper regulations

5-27  for the removal of sewage, and to make all other sanitary regulations

5-28  in connection therewith not in conflict with the Constitution or laws

5-29  of this state, or the ordinances of Lyon County or any incorporated

5-30  city embraced within the District. A person who violates any such

5-31  regulation is guilty of a misdemeanor and shall be punished by a

5-32  fine of not more than $100, or by imprisonment in the county jail for

5-33  not more than 30 days, or by both fine and imprisonment.

5-34      25.  To accept from the Government of the United States or any

5-35  of its agencies financial assistance or participation in the form of

5-36  grants-in-aid or any other form in connection with any of the

5-37  functions of the District.

5-38      26.  To assume the obligations of the Silver Springs Mutual

5-39  Water Company in providing water service to users in the service

5-40  area of the District.

5-41      27.  To assume the obligations of the Silver Springs General

5-42  Improvement District in providing sewer service to users in the

5-43  service area of the District.

6-1  28.  To do all acts and things reasonably implied from and

6-2  necessary for the full exercise of all powers of the District granted

6-3  by sections 1 to 15, inclusive, of this act.

6-4  Sec. 4.  1.  All powers, duties and privileges of the Silver

6-5  Springs Water and Sewer District must be exercised and performed

6-6  by the Governing Board of the District.

6-7  2.  The first Board consists of the members of the Board of

6-8  Trustees of the Silver Springs General Improvement District sitting

6-9  upon October 1, 2003. The members of the first Board shall convene

6-10  not later than October 31, 2003, to commence and continue

6-11  operation of the District until the appointment and election of their

6-12  successors in conjunction with the Lyon County general election in

6-13  2004.

6-14      Sec. 5.  1.  Except as otherwise provided in section 4 of this

6-15  act, the Governing Board of the District:

6-16      (a) Consists of five members elected from the service area of the

6-17  District; and

6-18      (b) Must be elected at a general district election held in

6-19  conjunction with the general election of Lyon County in 2004 and

6-20  with subsequent general elections of Lyon County.

6-21      2.  Except for members of the first Board, two members of the

6-22  Board, who must be chosen by lot, serve terms of 4 years and the

6-23  remaining members serve terms of 2 years.

6-24      Sec. 6.  The Board may establish and adjust various election

6-25  areas within the District. Such election areas must be established to

6-26  ensure, as nearly as practicable, equal representation upon the Board

6-27  for all residents of the District.

6-28      Sec. 7.  1.  Except as otherwise provided in this section and

6-29  sections 4 and 5 of this act, each member of the Board must:

6-30      (a) Reside in the District for at least 6 months before his

6-31  appointment or the election at which the member is elected;

6-32      (b) Be a qualified elector of the District;

6-33      (c) If he is elected to office, be elected by a plurality of the

6-34  qualified electors of the District; and

6-35      (d) Take office upon qualification therefor as provided in

6-36  subsection 3, or on the first Monday in January next following the

6-37  member’s election or appointment, whichever is later, and leave

6-38  office upon the first Monday in January next following the election

6-39  or appointment of the member’s successor in office.

6-40      2.  If the Board establishes various election areas within the

6-41  District, each member who is elected to the Board must:

6-42      (a) Reside in the election area represented for at least 6 months

6-43  before the election at which the member is elected;

6-44      (b) Be a qualified elector of the election area represented;

7-1  (c) Be elected by a plurality of the qualified electors of the

7-2  election area represented; and

7-3  (d) Take office in the manner prescribed in paragraph (d) of

7-4  subsection 1.

7-5  3.  Before taking office, each member of the Board must qualify

7-6  by filing with the Clerk of Lyon County:

7-7  (a) An oath of office taken and subscribed in the manner

7-8  prescribed by the Clerk; and

7-9  (b) A corporate surety bond, at the expense of the District, in an

7-10  amount determined by the Clerk, but not more than $10,000, which

7-11  bond must guarantee the faithful performance of the duties of the

7-12  member.

7-13      4.  A vacancy in the office of a member of the Board must be

7-14  filled by appointment of the remaining members of the Board. The

7-15  person so appointed must be a resident and elector of the District, or

7-16  if the Board has established various election areas, the election area

7-17  represented, and, before taking office, qualify in the manner

7-18  prescribed in subsection 3. The person shall serve the remainder of

7-19  the term of the member whose absence required his appointment. If

7-20  the Board fails, neglects or refuses to fill a vacancy within 30 days

7-21  after a vacancy occurs, the Board of County Commissioners of Lyon

7-22  County shall fill the vacancy.

7-23      Sec. 8.  1.  Unless otherwise required for purposes of an

7-24  election to incur an indebtedness, the Registrar of Voters of Lyon

7-25  County shall conduct, supervise and, by ordinance, regulate all

7-26  District elections in accordance, as nearly as practicable, with the

7-27  general election laws of this state, including, but not limited to, laws

7-28  relating to the time of opening and closing of polls, the manner of

7-29  conducting the election, the canvassing, announcement and

7-30  certification of results and the preparation and disposition of ballots.

7-31      2.  At least 90 days before the election, the Registrar of Voters

7-32  of Lyon County shall publish notice of the election. Each candidate

7-33  for election to the Board must file a declaration of candidacy with

7-34  the Registrar of Voters at least 60 days before the election. Timely

7-35  filing of the declaration is a prerequisite to election.

7-36      3.  If the Board establishes various election areas within the

7-37  District and there are two or more seats upon the Board to be filled

7-38  at the same election, each of which represents the same election

7-39  area, the two candidates therefor receiving the highest number of

7-40  votes, respectively, are elected.

7-41      4.  If a member of the Board is unopposed in seeking reelection,

7-42  the Board may declare that member elected without a formal

7-43  election, but that member may not participate in the declaration.

8-1  5.  If no person files candidacy for election to a particular seat

8-2  upon the Board, the seat must be filled in the manner provided in

8-3  subsection 4 of section 7 of this act for filling a vacancy.

8-4  Sec. 9.  1.  The Board shall:

8-5  (a) Choose one of its members to be the Chairman of the Board

8-6  and President of the District, and prescribe the term of that office

8-7  and the powers and duties thereof.

8-8  (b) Fix the time and place at which its regular meetings will be

8-9  held and provide for the calling and conducting of special meetings.

8-10      (c) Fix the location of the principal place of business of the

8-11  District.

8-12      (d) Elect a Secretary-Treasurer of the Board and the District,

8-13  who may or may not be a member of the Board.

8-14      (e) Appoint a General Manager, who must not be a member of

8-15  the Board.

8-16      (f) Delegate and redelegate to officers of the District the power

8-17  to employ necessary executives, clerical workers, engineering

8-18  assistants and laborers, and retain legal, accounting or engineering

8-19  services, subject to such conditions and restrictions as may be

8-20  imposed by the Board.

8-21      (g) Prescribe the powers, duties, compensation and benefits of

8-22  all officers and employees of the District, and require all bonds

8-23  necessary to protect the money and property of the District.

8-24      (h) Take all actions and do all things reasonably and lawfully

8-25  necessary to conduct the business of the District and achieve the

8-26  purposes of sections 1 to 15, inclusive, of this act.

8-27      2.  A simple majority of the members of the Board constitutes a

8-28  quorum. The vote of a simple majority of the quorum is required to

8-29  take action.

8-30      3.  Members of the Board are entitled to receive a salary of not

8-31  more than $80 per day and reasonable per diem and travel expenses,

8-32  as set by the Board, for their attendance at meetings and the

8-33  conducting of other business of the District.

8-34      Sec. 10.  1.  All assets of the Silver Springs Mutual Water

8-35  Company, including, without limitation, any lands, buildings,

8-36  easements, water rights, water, waterworks, conduits, pipelines,

8-37  reservoirs, wells, structures, facilities, intangibles, cash on hand,

8-38  bank deposits, office furniture, supplies and equipment and all other

8-39  real or personal property of whatever nature belonging to the

8-40  Company, become the property of the Silver Springs Water and

8-41  Sewer District on October 1, 2003. The officers of the Silver

8-42  Springs Mutual Water Company, after its dissolution, have limited

8-43  authority to wind up the affairs of the Company and execute papers

8-44  and documents necessary to accomplish the transfer of assets to the

8-45  Silver Springs Water and Sewer District.

9-1  2.  All liabilities of the Silver Springs Mutual Water Company,

9-2  including, without limitation, any bonds, debentures, notes,

9-3  mortgages, deeds of trust, accounts, things in action and all other

9-4  liabilities of whatever nature of the Company, become the liabilities

9-5  of the Silver Springs Water and Sewer District on October 1, 2003.

9-6  The transfer of liabilities pursuant to this subsection does not in any

9-7  way jeopardize, enhance or otherwise alter any security taken by

9-8  any obligee with respect to any liability transferred.

9-9  Sec. 11.  1.  The Board may levy and collect general ad

9-10  valorem taxes on all taxable property within the District, but only

9-11  for the payment of principal and interest on its general obligations.

9-12  Such a levy and collection must be made in conjunction with Lyon

9-13  County in the manner prescribed in this section.

9-14      2.  The Board shall determine the amount of money necessary

9-15  to be raised by taxation for a particular year in addition to other

9-16  sources of revenue of the District. The Board then shall fix a rate of

9-17  levy which, when applied to the assessed valuation of all taxable

9-18  property within the District, will produce an amount, when

9-19  combined with other revenues of the District, sufficient to pay,

9-20  when due, all principal of and interest on general obligations of the

9-21  District and any defaults or deficiencies relating thereto.

9-22      3.  In accordance with and in the same manner required by the

9-23  law applicable to incorporated cities, the Board shall certify to the

9-24  Board of County Commissioners of Lyon County the rate of levy

9-25  fixed pursuant to subsection 2. The Board shall instruct the County

9-26  to levy a tax upon all taxable property in the District in accordance

9-27  with that rate at the time and in the manner required by law for

9-28  levying of taxes for county purposes.

9-29      4.  The proper officer or authority of Lyon County, upon behalf

9-30  of the District, shall levy and collect the District tax specified in

9-31  subsection 3. The tax must be collected in the same manner,

9-32  including interest and penalties, as other taxes collected by the

9-33  County. When collected, the tax must be paid to the District in

9-34  monthly installments for deposit in the appropriate depository of the

9-35  District.

9-36      5.  If the taxes levied are not paid, the property subject to the

9-37  tax lien must be sold and the proceeds of the sale paid to the District

9-38  in accordance with the law applicable to tax sales and redemptions.

9-39      Sec. 12.  The District is exempt from regulation by the Public

9-40  Utilities Commission of Nevada.

9-41      Sec. 13.  1.  All assets of the Silver Springs General

9-42  Improvement District, including, without limitation, any lands,

9-43  buildings, easements, conduits, pipelines, structures, facilities,

9-44  intangibles, cash on hand, bank deposits, office furniture, supplies

9-45  and equipment and all other real or personal property of whatever

10-1  nature belonging to the Silver Springs General Improvement

10-2  District, become the property of the Silver Springs Water and Sewer

10-3  District on October 1, 2003. The Board of Trustees of the Silver

10-4  Springs General Improvement District, after its dissolution, has

10-5  limited authority to wind up the affairs of the Silver Springs General

10-6  Improvement District and execute papers and documents necessary

10-7  to accomplish the transfer of assets to the Silver Springs Water and

10-8  Sewer District.

10-9      2.  All liabilities of the Silver Springs General Improvement

10-10  District, including, without limitation, any bonds, debentures, notes,

10-11  mortgages, deeds of trust, accounts, things in action and all other

10-12  liabilities of whatever nature of the Silver Springs General

10-13  Improvement District, become the liabilities of the Silver Springs

10-14  Water and Sewer District on October 1, 2003. The transfer of

10-15  liabilities pursuant to this subsection does not in any way jeopardize,

10-16  enhance or otherwise alter any security taken by any obligee with

10-17  respect to any liability transferred.

10-18     Sec. 14.  For the purposes of NRS 349.983, the Silver Springs

10-19  Water and Sewer District shall be deemed to have been in operation

10-20  and publicly owned on January 1, 1995.

10-21     Sec. 15.  If any provision of sections 1 to 14, inclusive, of this

10-22  act or the application thereof to any person, thing or circumstance is

10-23  held invalid, that invalidity does not affect the provisions or

10-24  application of sections 1 to 14, inclusive, of this act that can be

10-25  given effect without the invalid provision or application, and to this

10-26  end the provisions of sections 1 to 14, inclusive, of this act are

10-27  declared to be severable.

 

10-28  H