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First Substitute H.B. 6
Representative David Ure proposes the following substitute bill:
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UTILITY IMPROVEMENT DISTRICTS
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REVISIONS
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2006 GENERAL SESSION
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STATE OF UTAH
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Chief Sponsor: David Ure
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Senate Sponsor:
Beverly Ann Evans
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LONG TITLE
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General Description:
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This bill modifies provisions related to improvement districts for the conversion of
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overhead utilities to underground.
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Highlighted Provisions:
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This bill:
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. modifies provisions related to how an assessment on property for the underground
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conversion of overhead utilities is to be calculated;
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. modifies the requirements for notice of a proposed improvement district and
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assessment;
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. modifies provisions relating to the underground conversion of overhead utilities to
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include:
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. a requirement that the governing body provide notice to property owners that
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underground service is available and of the requirement to convert the owner's
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existing electric and communications facilities to underground;
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. the consequence of an owner's failure to convert overhead facilities to
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underground; and
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. the assessment of costs and expenses of the conversion against the property;
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. modifies a provision relating to notice of the levy of an assessment for converting
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overhead utility facilities to underground;
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. modifies the type of easement that is created upon the failure to convert overhead
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utility facilities with the required time;
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. provides that a construction easement terminates once the conversion of overhead
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utility facilities to underground is completed; and
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. makes technical changes.
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Monies Appropriated in this Bill:
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None
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Other Special Clauses:
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None
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Utah Code Sections Affected:
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AMENDS:
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54-8-5, as enacted by Chapter 157, Laws of Utah 1969
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54-8-6, as enacted by Chapter 157, Laws of Utah 1969
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54-8-9, as enacted by Chapter 157, Laws of Utah 1969
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54-8-11, as enacted by Chapter 157, Laws of Utah 1969
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54-8-19, as enacted by Chapter 157, Laws of Utah 1969
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54-8-26, as enacted by Chapter 157, Laws of Utah 1969
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Be it enacted by the Legislature of the state of Utah:
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Section 1.
Section
54-8-5
is amended to read:
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54-8-5. Apportionment of costs -- Assessment against benefitted property --
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Public lands not subject to assessment.
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[Whenever any improvement authorized to be made by any governing body by the
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terms of this chapter is ordered, the governing body shall provide for the apportionment of the
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cost and expenses thereof as in their judgment may be fair and equitable in consideration of the
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benefits accruing to the abutting, adjoining, contiguous and adjacent lots and lands and to the
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lots and lands otherwise benefitted and included within the improvement district formed. Each
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lot and parcel of the land shall be separately assessed for the cost and expenses thereof in
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proportion to the number of square feet of such lands and lots abutting, adjoining, contiguous
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and adjacent thereto or included in the improvement district, and in proportion to the benefits
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derived to such property by said improvements.]
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(1) If an improvement district is created as provided in this chapter, the governing body
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of the county or municipality that created the improvement district may levy an assessment on
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property within the district.
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(2) (a) If an assessment is levied under this section, it shall be levied on all blocks, lots,
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parts of blocks, and lots, tracts, or parcels of property bounding, abutting upon, or adjacent to
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the improvements or affected or specially benefitted by the improvements to the extent of the
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benefits to the property because of the improvements.
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(b) The benefits to the property may be indirect and need not actually increase the fair
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market value of the property.
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(3) A governing body may levy an assessment under this section to the full depth of the
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property or to the depth determined by the governing body.
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(4) Assessments under this section shall be equal and uniform according to the benefits
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received.
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(5) (a) Assessments may be according to area, frontage, assessed value, taxable value,
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lot, number of connections, or any combination of these methods, as the governing body
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considers fair and equitable.
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(b) Different improvements in an improvement district may be assessed according to
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different methods.
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(c) The governing body shall make an allowance for corner lots so that they are not
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assessed at full rate on both sides adjacent to the street.
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(6) The entire cost of the improvement may be assessed against the benefitted property
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as [herein] provided in this section or, if money for paying part of such cost is available from
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any other source, the money so available may be so applied and the remaining cost so assessed
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against the benefitted property.
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(7) The cost and expenses to be assessed as [herein] provided [for] in this section shall
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include the contract price of the improvement, engineering and clerical services, advertising,
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cost of inspection, cost of collecting assessments, and interest upon bonds if issued, and for
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legal services for preparing proceedings and advising in regard thereto.
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(8) Fee lands and property of public entities such as the federal government, the state
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[of Utah], or any county, city, or town [shall] may not be considered as lands or property
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benefitted by any improvement district, and, unless such public entity within the boundaries of
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an improvement district consents in writing, filed before the governing body adopts the
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resolution provided for in Section
54-8-8
, the lands and property of such public entity shall not
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be subject to assessment for the payment of any of the cost or expense of such improvement.
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Section 2.
Section
54-8-6
is amended to read:
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54-8-6. Creation of improvement district -- Petition by property owners --
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Resolution of governing body -- Utilities to submit reports.
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[Any] (1) (a) A governing body may, upon a petition signed by two-thirds of the
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owners of the real property and the owners of not less than two-thirds in value of the real
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property, as shown by the last assessment rolls, of any proposed district requesting the creation
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of an improvement district as provided for in this chapter, pass a resolution at any regular or
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special meeting declaring that it finds that the improvement district proposed is in the public
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interest. [It must be determined]
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(b) In order to pass a resolution under Subsection (1)(a), the governing body shall
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determine that the formation of the local improvement district for the purposes set out in this
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chapter will promote the public convenience, necessity, and welfare. [The resolution must]
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(2) Each resolution adopted under Subsection (1) shall:
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(a) state that the costs and expenses will be levied and assessed upon the property
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benefitted [and further];
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(b) request that each public utility corporation serving such area by overhead electric or
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communication facilities shall, within 120 days after the receipt of the resolution, make a study
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of the cost of conversion of its facilities in such area to underground service[. The report of
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said study shall be provided to the governing body and made available in its office to all
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owners of land within the proposed improvement district. The resolution of the governing body
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shall]; and
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(c) require that the public utilities be provided with the name and address of the owner
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of each parcel or lot within the proposed improvement district, if known, and, if not known, the
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description of the property and [such] other matters [as may be] required by the public utility
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corporations in order to perform the work involved in the cost study. [The resolution shall
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further state the size and square feet of each lot or parcel within the proposed conversion
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service area.]
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(3) Each public service corporation serving [such] the improvement district area by
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overhead electric or communication facilities shall[,]:
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(a) within 120 days after receipt of the resolution, make a study of the costs of
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conversion of its facilities in [such] the district to underground service[,]; and [shall together]
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(b) provide the governing body and make available to its office a [joint] report,
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prepared jointly with each other public service corporation serving the improvement district
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area by overhead electric or communication facilities, as to the results of the study.
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(4) The governing body shall make each report under Subsection (3) available in its
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office to each owner of land within the improvement district.
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Section 3.
Section
54-8-9
is amended to read:
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54-8-9. Public hearing -- Notice -- Contents.
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[Following] (1) After the passage of the resolution in Section
54-8-8
, the governing
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body shall cause notice of a public hearing on the proposed improvement to be given [in the
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manner] as provided in Section
54-8-10
. [Such]
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(2) The notice required under Subsection (1) shall:
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[(1)] (a) describe the boundaries or area of the district with sufficient particularity to
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permit each owner of real property [therein] in the proposed district to ascertain that [his] the
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owner's property lies in the district;
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[(2)] (b) describe in a general way the proposed improvement, specifying the streets or
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property along which it will be made and the nature of the benefits to the property within the
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district;
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[(3)] (c) state the estimated cost as determined from the costs and feasibility report and
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including the contract price of the improvement and the cost of engineering and clerical
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service, advertising, inspection, collection of assessments, interests upon bonds, if issued, and
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for legal services for preparing proceedings and advising in regard [thereto] to them;
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[(4)] (d) state that it is proposed to assess the real property in the district to pay all or a
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designated portion of the cost of the improvement according to the [square footage of and the
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benefits to be derived by each tract, block, lot and parcel of land within the district] method
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determined by the governing body under Section
54-8-5
;
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[(5)] (e) state the date, time, and place [at which] that the governing body will conduct
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a public hearing upon the proposed improvement and on the question of benefits to be derived
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by the real property in the district;
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[(6)] (f) state that all interested persons will be heard and that any property owner will
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be heard on the question of whether his property will be benefitted by the proposed
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improvement[.]; and
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(g) designate the date, time, and place of a public hearing at which the governing body
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will consider objections to the creation of the proposed district and the making of the proposed
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improvements.
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Section 4.
Section
54-8-11
is amended to read:
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54-8-11. Protests -- Hearings -- Representatives of utilities to be present --
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Changes in proposal -- Adoption or abandonment of project.
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(1) (a) On the date and at the time and place specified in the [aforesaid] notice under
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Section
54-8-9
, the governing body shall in open and public session hear all objections to the
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creation of the proposed district, the making of the proposed improvements, and the benefits
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accruing to any tract, block, lot, or parcel of land [therein] in the proposed district.
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(b) Representatives of the public utilities concerned shall be present at [all such
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hearings. Such hearings] each hearing under Subsection (1)(a).
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(c) A hearing under Subsection (1)(a) may be adjourned from time to time to a fixed
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future time and place.
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(d) If at any time during [the hearings] a hearing under Subsection (1)(a), it [shall
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appear] appears to the governing body that changes in the proposed improvements or the
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proposed district should be made, which, after consultation with the public utilities concerned,
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appear to affect either the cost or feasibility of the improvements, the hearing shall be
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adjourned to a fixed future time and place and a new costs and feasibility report prepared on
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the basis of the contemplated changes.
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(2) After the hearing has been concluded and after all persons desiring to be heard have
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been heard, the governing body:
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(a) shall consider the arguments put forth [and];
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(b) may make [such] changes in the area to be included in the district as it [may
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consider] considers desirable or necessary[. However, no such changes shall be made unless], if
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a costs and feasibility report has been prepared on the basis of [such] those changes[. After
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such consideration and determination, the board]; and
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(c) shall adopt a resolution either abandoning the district and project or determining to
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proceed with the district and project, either as described in the notice or with changes made as
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[above] authorized in this section.
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Section 5.
Section
54-8-19
is amended to read:
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54-8-19. Assessments -- Right to levy against property -- Due date -- Notice --
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Payment in annual installments.
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(1) The governing body may levy the assessments under the assessment list in whole or
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in part at any time after the adoption of the assessment resolution, but if not levied as a whole,
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any partial levies shall be made on the basis of completed improvements and the property
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benefited [thereby] by the improvements.
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(2) The amount of the assessment will become due and collectible immediately upon
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the levying of the assessment and, if it is not paid within [thirty] 30 days from the date of
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[such] the levy, it shall, at the expiration of [such thirty] the 30 days, commence to bear interest
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at a rate fixed by the governing body but not to exceed 7% per annum.
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(3) (a) Notice shall be given in the same manner as provided in Section
54-8-16
[and
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shall];
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(b) The notice under Subsection (3)(a) shall:
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(i) specify the date and amount of the levy affecting each tract, block, lot, or parcel, the
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date when interest will commence, the amount of such interest, and the period of years over
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which installment payments may be made[. If];
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(ii) identify the easement that may be acquired by Subsection
54-8-26
(2); and
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(iii) be recorded in the office of the recorder of the county in which the tract, block, lot,
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or parcel is located.
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(4) (a) If the assessment is not paid within the [thirty] 30 days allowed, [it will be
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presumed that] each owner [exercises] shall be presumed to exercise the right and option to pay
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the amount due in equal annual installments bearing interest at the rate specified in the notice
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and extending over the period of years, not exceeding [twenty] 20 specified in the notice.
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(b) The first installment shall become due one year from the date when interest
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commenced, and one installment shall become due on the same day of the same month
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annually thereafter.
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(c) Any assessment may be prepaid on any annual installment date without interest
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penalty provided the total balance of the assessment, including accrued interest, costs and
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penalties, be paid.
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Section 6.
Section
54-8-26
is amended to read:
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54-8-26. Notice that service from underground facilities is available --
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Consequences of failure to convert overhead facilities.
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[The public utility performing the conversion shall, at the expense of the owner, convert
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to underground all electric and communication service facilities located upon any lot or parcel
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of land within the improvement district and not within the easement for distribution. This shall
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include the digging and the back filling of a trench upon such lot or parcel unless the owner
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shall execute a written objection thereto and file the same with the clerk of the governing body
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not later than the date set for hearing objections to the improvement district as provided by law.
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Failure to file such written objection shall be taken]
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(1) (a) If service from the underground utility is available to all or part of an
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improvement district area, the governing body of the county or municipality that created the
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district shall mail a notice to each owner of real property served from existing overhead
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facilities stating that:
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(i) service from the underground facilities is available; and
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(ii) each owner shall perform the necessary construction to convert the owner's existing
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overhead electric and communications to underground from the utility-provided service point
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to the service point on the owner's property.
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(b) Each owner that converts overhead facilities to underground facilities shall comply
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with all applicable state and local laws, ordinances, rules, and regulations, and with all tariffs
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of the applicable utility.
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(2) (a) Failure to convert the overhead facilities to underground facilities within 60
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days after the date of mailing the notice shall be considered as a consent to and grant of a
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construction easement to the [utility] county or municipality and [shall be construed] as express
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authority to the [public utility corporations] county or municipality and [their respective] its
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officers, agents, and employees to enter upon [such] the lot or parcel for [such] the purpose[,
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and through failure to object, any right of protest or objection in respect of the doing of such
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work and the inclusion of the costs thereof in said assessment shall be waived. If an owner does
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file such written objection, he shall then be responsible for providing a trench which is in
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accordance with applicable rules, regulations or tariffs from the owner's service entrance to a
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point designated by the public utility and for back filling the trench following installation of the
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underground service by the public utility involved] of making the conversion.
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[The costs of any work done by the public utility corporation shall be included in the
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assessment to be levied upon such lot or parcel unless the owner shall file a written objection
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thereto with the clerk of the governing body not later than the date set for hearing objections to
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the improvement district as provided by law. Should such an objection be filed, the owner
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involved shall be billed by the public utility involved for such work as it accomplishes upon the
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owner's property.]
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(b) A construction easement under Subsection (2)(a) terminates upon completion of the
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conversion of overhead facilities to underground.
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(3) If the county or municipality converts the overhead facilities to underground
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facilities, all costs and expenses of the conversion, including the engineering, legal, advertising,
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and incidental expenses, shall be assessed against the property benefitted and become a lien
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upon the property.
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(4) The owner shall, at [his] the owner's expense, make all necessary changes in the
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service entrance equipment to accept underground service.
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