48-1018. Conversion of county improvement
district to domestic water improvement district or domestic
wastewater improvement district; notice; costs


A. A county improvement district that has acquired, has constructed or owns a water
system that provides domestic water to residents of that district or a county improvement
district that has constructed and owns a wastewater treatment facility that serves the
residents of that district may be converted to a district under this article by either of
the following methods:


1. A board of supervisors, by resolution, may order conversion of a county
improvement district into a domestic water improvement district or a domestic wastewater
improvement district after a public hearing conducted with not less than twenty days'
notice mailed to the owners of real property in the county improvement district as shown
on the most recent property tax assessment roll.


2. The owners of at least fifty per cent of the property that is subject to an
assessment to pay for existing improvements within a county improvement district may
petition the board of supervisors for a finding and an order that the county improvement
district be converted into a domestic water improvement district or a domestic wastewater
improvement district, and after consideration of the petition the board, by resolution,
shall order that conversion.


B. On adoption of an order for conversion as provided in subsection A of this
section, a county improvement district is converted to a domestic water improvement
district or a domestic wastewater improvement district and from that date is subject to
this article. Pursuant to section 48-1012, the board of supervisors shall specify the
number of members to serve on the board of directors of the district and shall appoint
the initial members.


C. All costs, expenses and attorney fees incurred by the county improvement
district and by any petitioners in seeking a conversion of a county improvement district
are a liability of the domestic water improvement district or domestic wastewater
improvement district if conversion is ordered. If conversion is not ordered, all costs,
expenses and attorney fees incurred by the county improvement district and by any
petitioners in seeking a conversion of a county improvement district are a liability of
the county improvement district.


D. All assets and liabilities of the converted county improvement district become
the assets and liabilities of the domestic water improvement district or domestic
wastewater improvement district. The domestic water improvement district or domestic
wastewater improvement district is the successor in interest of the former county
improvement district and succeeds to all rights, privileges and powers of the former
county improvement district with full rights to collect any debt, liability, obligation
or assessment owed to the former county improvement district and to levy assessments,
issue bonds and levy and collect taxes for the payment of the general obligations of the
district. A person shall not be relieved of any debt, liability, obligation or
assessment to a county improvement district by reason of its conversion pursuant to this
section.


E. Nothing in this section shall be construed to affect the authority of a board of
supervisors pursuant to section 48-1016.