48-2029

48-2029. Alternate methods of dissolution of
sanitary district

A. A sanitary district organized under this article, the territory of which is
wholly or partially included within the corporate limits of a city or town, may be
dissolved in the following manner provided the dissolution is approved by a resolution or
ordinance passed by the board of directors of the sanitary district and by the governing
body of the city or town:

1. The board of directors of the sanitary district shall approve the transfer of
all powers, duties and responsibilities of the board of directors, officers and employees
of the sanitary district to such city or town, as trustee, and the dissolution of the
district by ordinance or resolution.

2. The governing body of such incorporated city or town shall approve the
dissolution of the district and the acceptance of the trusteeship of the district by
ordinance or resolution.

3. Within thirty days after the date of the passage of the latter of the ordinances
or resolutions called for in paragraphs 1 and 2 of this subsection, the governing body of
the city or town shall call a special election of the city or town on the question of
whether to accept the trusteeship of the sanitary district. The election shall take
place on such date as the governing body may designate but not more than sixty days after
the ordinance or resolution calling the election is passed, except that no such election
shall be called within twelve months from the date of a previous election called for the
same purpose. Only qualified electors of the city or town shall vote on the question.

4. When, on the basis of the adoption of the ordinances or resolutions under
paragraphs 1 and 2 of this subsection, an election is called upon the question of
acceptance of the trusteeship under paragraph 3 of this subsection, the governing body of
the sanitary district shall also call, at the same time as the election provided for in
paragraph 3 of this subsection is called, a separate election among the qualified
electors of the sanitary district on the question of dissolution of the district. For
the purposes of such election, a qualified elector of the district shall be a person who
is qualified to vote at the election called pursuant to paragraph 3 of this subsection
and who resides on property within the district.

B. If a majority of qualified electors of the city or town voting on the question
approves it, and a majority of the qualified electors of the district voting on the
question approves it, the district shall be dissolved as provided in this section. If
the qualified electors voting in the election conducted pursuant to subsection A,
paragraph 3 of this section fail to accept the trusteeship or if the qualified electors
voting in the election conducted pursuant to subsection A, paragraph 4 of this section
fail to approve dissolution, the sanitary district shall not be dissolved and the
proceedings shall be terminated.

C. If the sanitary district has no bonded indebtedness or when all legal
indebtedness of the district has been discharged or assumed by the city or town, after
otherwise complying with the provisions of this section, the governing body of the city
or town shall as trustees of the district by resolution declare the district dissolved,
and thereupon the district shall be dissolved. A certified copy of the resolution shall,
within three days after its adoption, be filed with the clerk of the governing body of
the city or town in which the district is situated.

D. If the sanitary district has a bonded indebtedness or legal indebtedness
following approval of dissolution, as herein before provided, the sanitary district shall
be administered as provided by this section. Pending dissolution, the administration of
district affairs shall vest in trust in the governing body of the city or town. Members
of the governing body of such city or town shall be trustees of the district for all
purposes of such district and as such have the powers and duties prescribed for the board
of directors of the district organized pursuant to this chapter. Such trustees may,
without limitation, except as provided by law and within this section, operate the
facilities of the district and may issue and sell bonds previously authorized for
improvements prior to dissolution of the district. Indebtedness and obligations of or
issued by or on behalf of the district shall not thereby become indebtedness or
obligations of such city or town, except that such city or town shall be responsible as
trustees to insure that all obligations and debts of the district shall be paid when due
from funds available to the trustees from the district. Until dissolution, nothing shall
be deemed to preclude such a district from otherwise continuing to carry on its
activities and transacting its business, or from entering into contracts and agreements
otherwise authorized or from transferring any property of the district to such city or
town.

E. Members of the board of directors, if the terms of such members have not
expired, shall serve as an advisory board to the trustees created under subsection D of
this section and to the governing body of the city or town following dissolution until
expiration of the terms or earlier vacancy, and thereafter the office shall be deemed
abolished.

F. Upon dissolution of the sanitary district pursuant to this section, all property
of the district shall vest in that city or town.

G. Notwithstanding the provisions of section 9-514, the affirmative vote on
dissolution of a sanitary district by both the district and the affected city or town
under the provisions of this section shall vest in the city or town authority to
construct, purchase, acquire or lease any plant or property for the purpose of sewage or
garbage collection and treatment and shall also be authority for the city or town to
assume the obligations of the sanitary district through the issuance of bonds pursuant to
title 9, chapter 5, article 3 and in amounts not exceeding the outstanding amount of
principal and interest on bonds and other obligations of the sanitary district and the
costs of issuance of the bonds by such city or town.

H. The election held pursuant to this section shall be deemed to be the election
required by section 48-2028.

I. The city or town accepting the assets of the sanitary district shall assume the
operation and maintenance of the entire sanitary sewage collection, treatment and
effluent disposal system external to its boundaries pursuant to title 9, chapter 5.

J. A sanitary district organized under this article which has territory partially
within the corporate limits of two or more cities or towns and the unincorporated area of
a county may be dissolved pursuant to this subsection provided the dissolution is
approved by a resolution or ordinance passed by the board of directors of the sanitary
district and by the governing body of each city or town.

1. The board of directors of the sanitary district shall:

(a) Approve the dissolution of the district by ordinance or resolution.

(b) Apportion the assets of the district according to their geographic location.

2. Each city or town which has a portion of the territory of the district must pass
a resolution approving the dissolution and accepting the assets and responsibilities of
the district.

3. The board of directors shall call a special election of the qualified electors
of the district conducted in the manner prescribed by title 16. The question on the
ballot shall read:

Shall the ___________ sanitary district be dissolved?

Dissolution - yes _______ Dissolution - No _______

4. If a majority of the qualified electors voting at the election vote in favor of
the dissolution of the district, the board of directors shall:

(a) Order the dissolution of the district, specifying the date upon which the
responsibilities and powers of the district and the assets shall vest with the city or
town.

(b) Approve the transfer of all powers, duties and responsibilities of the board of
directors, officers and employees of the sanitary district to each city or town in which
a portion of the district is located.

5. The city or town which has the majority, by value, of the remaining assets
shall, upon dissolution:

(a) Assume the assets which are located within the unincorporated area of the
county within the district.

(b) Assume the operation and maintenance of the entire sanitary sewage collection,
treatment and effluent disposal system external to its boundaries pursuant to title 9,
chapter 5.

(c) Provide sewer service within the unincorporated area including the construction
and installation of new sewers and related facilities.

6. If there is any bonded indebtedness of the district, the board of supervisors of
the county shall provide for the continued collection of taxes or assessments pursuant to
section 48-2028, subsection C.