2005 Nevada Revised Statutes - Chapter 704A — Facilities Placed Underground
CHAPTER 704A - FACILITIES PLACEDUNDERGROUND
NRS 704A.010 Declarationof legislative findings and purpose.
NRS 704A.020 Definitions.
NRS 704A.030 Clerkdefined.
NRS 704A.040 Convertand conversion defined.
NRS 704A.050 Electricand communication facilities defined.
NRS 704A.052 Engineerdefined.
NRS 704A.060 Governingbody defined.
NRS 704A.070 Lot defined.
NRS 704A.073 Mailednotice and notice by mail defined.
NRS 704A.077 Municipalityand municipal defined.
NRS 704A.080 Newunderground electric and communication service district defined.
NRS 704A.090 Overheadelectric or communication facilities defined.
NRS 704A.100 Ownerdefined.
NRS 704A.110 Publicplace defined.
NRS 704A.120 Publicutility corporation defined.
NRS 704A.125 Publicationand publish defined.
NRS 704A.130 Realproperty defined.
NRS 704A.140 Servicedistrict defined.
NRS 704A.150 Undergroundservice district defined.
NRS 704A.170 Petitionby owners for study of costs to establish service district.
NRS 704A.180 Statementby governing body of basis for apportionment of costs by assessments; study ofcosts by public utility; joint report of results of study; costs of jointreport.
NRS 704A.190 Summaryof estimate of costs to be assessed against each lot furnished to owner; jointsummary.
NRS 704A.200 Petitionfor establishment of service district: Time and place of filing; number ofpetitioners required.
NRS 704A.210 Petitionfor establishment of service district: Manner of giving notice of hearing;payment of costs.
NRS 704A.220 Petitionfor establishment of service district: Contents of notice of hearing.
NRS 704A.230 Objectionsto establishment of service district.
NRS 704A.240 Hearingon petition; findings of governing body; adoption and contents of ordinance;basis for apportioning assessments.
NRS 704A.250 Inclusionof additional territory: Notice and hearing.
NRS 704A.260 Additionto or alteration of boundaries of district.
NRS 704A.270 Rehearings.
NRS 704A.280 Judicialreview; objection to validity of action by governing body.
NRS 704A.290 Timefor commencement of construction or conversion.
NRS 704A.300 Placementof facilities.
NRS 704A.310 Interimwarrants.
NRS 704A.312 Resolutiondetermining total cost of construction or conversion and ordering preparationof assessment roll; validity of assessment; limitations on amount ofassessment.
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NRS
1. The Legislature finds that in many areas of thisstate owners of real property, counties, cities and public utility corporationsdesire to construct new underground electric and communication services and toconvert existing overhead electric and communication facilities to undergroundlocations by establishing underground service districts for the purpose ofeffecting such construction or conversion.
2. The Legislature declares that a public purpose willbe served and that the public welfare will be promoted by providing a procedureto accomplish such construction or conversion and that it is in the publicinterest to provide for such construction or conversion as provided in thischapter.
(Added to NRS by 1971, 1232)
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(Added to NRS by 1971, 1232)
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(Added to NRS by 1971, 1232)
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(Added to NRS by 1971, 1232)
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1. Communication facilities does not includefacilities used or intended to be used for the transmission of intelligence bymicrowave or radio, apparatus cabinets or outdoor public telephones.
2. Electric facilities does not include anyfacilities used or intended to be used for the transmission of electric energyat nominal voltages in excess of 25,000 volts or having a circuit capacity inexcess of 12,000 kilovolt amperes.
(Added to NRS by 1971, 1232)
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(Added to NRS by 1973, 472; A 1975, 878)
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1. The city council, city commission, board of supervisorsor other local legislative or governing body of an incorporated city if all orany part of the service district is located within the limits of suchincorporated city.
2. The board of county commissioners if the servicedistrict is located entirely within the unincorporated area of the county.
(Added to NRS by 1971, 1233)
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(Added to NRS by 1971, 1233)
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1. Mailed notice, notice by mail or any phrase ofsimilar import, except as otherwise qualified, means the giving by themunicipal clerk, engineer, treasurer or other designated person, or any deputythereof, as provided in this chapter or otherwise as determined by thegoverning body, of any designated written or printed notice addressed to thelast known owner or owners of each lot being assessed or other designatedperson at his or their last known address or addresses by deposit, at least 20days prior to the designated hearing or other designated time or event, in theUnited States mails, postage prepaid, as first-class mail.
2. The names and addresses of such property owners,unless otherwise provided, shall be obtained from the records of the countyassessor or from such other source as the official giving such notice deemsreliable.
3. Any list of such names and addresses pertaining toany service district or assessment roll may be revised from time to time, butsuch a list need not be revised more frequently than at 12-month intervals.
4. Any mailing of any notice required in this chaptershall be verified by the affidavit or certificate of the official mailing thenotice, which verification shall be retained in the records of the municipalityat least until all assessments and bonds and any other securities pertainingthereto have been paid in full, or each claim relating thereto is barred by astatute of limitations.
5. Such affidavit or certificate of mailing shall beprima facie evidence of the mailing of such notice in accordance with therequirements of this chapter.
(Added to NRS by 1973, 473)
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1. Municipality means an incorporated city,including, without limitation, Carson City, in which is located wholly or inpart the service district, or means the county in the unincorporated area ofwhich is wholly located the service district, as the case may be.
2. Municipal pertains to a municipality.
(Added to NRS by 1973, 473; A 1981, 965)
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(Added to NRS by 1971, 1233)
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(Added to NRS by 1971, 1233)
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1. The person in whom legal title appears by recordeddeed;
2. The person in possession under claim of title; or
3. The person exercising acts of ownership for himselfor as the personal representative of the owner, including boards of trustees ofschool districts owning property within the service district.
(Added to NRS by 1971, 1233)
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(Added to NRS by 1971, 1233)
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1. Any person or corporation subject to thejurisdiction of the Public Utilities Commission of Nevada which provideselectric or communication service to the public by means of electric orcommunication facilities.
2. An incorporated city or a county which provideselectric or communication service to the public by means of electric orcommunication facilities.
(Added to NRS by 1971, 1233)
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1. Publication, publish or any term of similarimport, except as otherwise qualified, means publication in at least onenewspaper of general circulation in the municipality and the service districtpertaining thereto, for at least once a week for 3 consecutive weeks by 3weekly insertions, the first publication being at least 15 days prior to thedesignated hearing or other designated time or event.
2. The publication need not be made on the same day ofthe week in each of the 3 calendar weeks, but not less than 14 days shallintervene between the first and the last publication.
3. Any publication herein required shall be verifiedby the affidavit of the publisher which affidavit shall be filed with themunicipal clerk.
(Added to NRS by 1973, 473)(Substituted in revisionby NRS 704A.108)
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(Added to NRS by 1971, 1233)
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(Added to NRS by 1971, 1233; A 1997, 2550)
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1. Any lines or facilities used or intended to be usedfor the transmission of electric energy at nominal voltages in excess of300,000 volts or having a circuit capacity in excess of 12,000 kilovoltamperes.
2. Facilities used or intended to be used for thetransmission of intelligence by microwave or radio.
3. Facilities such as transformers, pull boxes,service terminals, pedestal terminals, splice closures, apparatus cabinets andsimilar facilities which normally are above the surface in areas where servicelines are underground in accordance with standard underground practices.
4. On-the-ground facilities attached to overheadfacilities which are used to connect an underground system to overheadfacilities.
(Added to NRS by 1971, 1233; A 1997, 2550)
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1. If not less than 60 percent of the owners ofcontiguous real property within a reasonably compact area of reasonable size,who own not less than 60 percent on a square foot basis of the real propertywithin such area, seek to establish a service district, they shall petitioneach public utility corporation serving such area to make a study of the costsrelated to the establishment of such area as a service district.
2. The petition shall set forth:
(a) The necessity for the proposed service district.
(b) That the public convenience, necessity or welfarewill be promoted by the establishment of the service district and that theproperty to be included therein will be benefited.
(c) The name and address of the owner of each parcel orlot within the proposed service district as reflected on the records of thecounty assessor.
(d) Such other matters as may be reasonably required bythe public utility corporation.
3. Each copy of the petition shall be:
(a) Verified by one of the petitioners.
(b) Accompanied by a plat or sketch indicating theboundaries of the proposed service district and size in square feet of eachparcel or lot within the proposed service district.
(Added to NRS by 1971, 1234)
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1. Within 15 days after the receipt of a petition toestablish a service district, each public utility corporation other than themunicipality shall notify the municipality of the receipt of the petition andshall request the municipality to notify the public utility corporation of thebasis to be used by the municipality in the apportionment of the costs relatedto the installation of the facility underground to be defrayed by specialassessments levied against the specially benefited lots within the proposed servicedistrict if the facilities of the public utility corporation therein are to beplaced underground pursuant to this chapter.
2. Within 30 days of the receipt by the municipalityof each such request, or, if the public utility corporation is themunicipality, the petition, the local governing body shall state, byresolution, the basis for the apportionment of those costs by assessmentsagainst the specially benefited lots, subject to the provisions of subsections5 and 6 of NRS 704A.240, and shallforthwith cause a certified true copy of the resolution pertaining to eachpublic utility corporation requesting the basis of assessments to be furnishedthereto.
3. Within 120 days after receipt of the basis forassessments, or, if the public utility corporation is the municipality, afterthe adoption of the resolution, each public utility corporation serving thearea shall:
(a) Make a study of the cost of providing newunderground electric and communication facilities or conversion of itsfacilities in the area to underground service.
(b) Make available in its office to the petitioners andto all owners of real property within the proposed service district a jointreport of the results of the study of the public utility corporations affected.
4. If a public utility corporation subject to thejurisdiction of the Public Utilities Commission of Nevada determines as aresult of the study that installation of the proposed service is noteconomically or technically feasible, it may, with the concurrence of thePublic Utilities Commission of Nevada, so state in the joint report and proceedno further toward installation of the proposed service. This chapter does notrequire the Public Utilities Commission of Nevada to participate in preparationof the joint report referred to in this section.
5. If a public utility corporation is a city or countyand if it determines as a result of the study that installation of the proposedservice is not economically or technically feasible, it may, with theconcurrence of its governing body, as provided by resolution, so state in thejoint report and proceed no further toward installation of the proposedservice.
6. Except for the facilities of each public utilitycorporation described in subsection 4 or 5, if any, the joint report must:
(a) Contain an estimate of the costs to be assessed toeach lot of real property located within the proposed service district for theconstruction of new facilities or conversion of facilities within publicplaces.
(b) Indicate the estimated cost to be assessed to eachlot of real property for placing underground the facilities of the publicutility corporation located within the boundaries of each lot.
(c) Indicate the estimated cost, if any, to be borne bythe public utility corporation for any facilities to be provided by it andwhich remain its property rather than becoming property of owners of individuallots, as provided by regulations of the Public Utilities Commission of Nevadain the case of a public utility corporation other than a city or county, and,in the case of any public utility corporation, by any other applicable laws,ordinances, rules or regulations.
7. The costs of preparing the joint report must beborne by the public utility corporation or corporations whose electric orcommunication facilities are to be included in the proposed service districtunless the governing body orders the establishment of the service district, inwhich event the costs must be included in the costs of the service district.
(Added to NRS by 1971, 1234; A 1973, 473; 1979, 712;1997, 1918, 2550; 1999,572, 575)
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1. A summary of the estimate of the costs to beassessed against each lot of real property located within the proposed servicedistrict for the new construction or conversion of facilities within publicplaces and the estimated costs to be assessed to each lot of real property forplacing underground the facilities of the public utility corporation locatedwithin the boundaries of each lot shall be mailed by the public utilitycorporation to each owner of real property located within the proposed servicedistrict to the address of such owner as contained in the petition for the coststudy, if such owner and address is included in the petition, or to such ownerat the address thereof as shown in the records of the county assessor.
2. Two or more public utility corporations withfacilities in the proposed service district, except for any public utilitycorporation described in subsection 4 or 5 of
(a) Prepare a joint summary of such costs;
(b) Cause the joint summary so to be mailed to eachowner of real property within the proposed service district; and
(c) Apportion the costs of so preparing and mailing thejoint summary between or among such public utility corporations on an equitablebasis as may be mutually agreeable thereto.
3. Any estimate of cost required or authorized in thischapter shall not constitute a limitation upon such cost nor a limitation uponthe rights and powers of any public utility corporation, the municipality, thegoverning body, or any officers, agents or employees thereof.
(Added to NRS by 1971, 1235; A 1973, 475)
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1. Within 90 days after the joint report referred toin NRS 704A.180 is made available tothe petitioners, not less than 60 percent of the owners of real property withinthe area who own not less than 60 percent of the real property on a square footbasis within the area, excluding public places, may petition the governing bodyfor establishment of a service district in the same area described in theoriginal petition or petitions.
2. The petition shall be filed with the clerk of themunicipality.
(Added to NRS by 1971, 1235; A 1973, 475)
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1. Upon receipt of a petition to establish a servicedistrict, the governing body shall set a date for a hearing on the petition,which date shall not be later than 60 days after the filing of the petitionwith the clerk.
2. The clerk shall:
(a) Cause a notice of the hearing to be posted in notless than three public places within the proposed service district for not lessthan 30 days prior to the date of the hearing.
(b) Cause a notice of the hearing to be published oncenot less than 10 days preceding the date of the hearing in some newspaperhaving a general circulation in the proposed service district.
(c) Mail a notice of the hearing at least 15 dayspreceding the date of the hearing to:
(1) Each owner of a lot of real property withinthe boundaries of the proposed service district as reflected on the records ofthe county assessor.
(2) Each governmental agency having rights inpublic places within the proposed service district.
3. The costs of posting, publication and mailingrequired in this section shall be assessed by the governing body on a pro ratabasis to each public utility corporation whose electric or communicationfacilities are to be included in the proposed service area, and if a servicedistrict is established such costs shall be included in the costs of thedistrict.
(Added to NRS by 1971, 1235; A 1973, 475)
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1. State the time and place where the hearing will beheld.
2. Describe the boundaries of the proposed servicedistrict.
3. State that the joint report of estimated costs foreach lot or parcel included within the proposed service district are availablefor public inspection at the office of the clerk.
(Added to NRS by 1971, 1236)
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1. Any person owning real property within the proposedservice district who wishes to object to the establishment of the proposedservice district or to the costs thereof as contained in the joint reportpertaining to his lot or parcel included within the proposed service districtshall, before the date set for the hearing, file written objections with theclerk.
2. In considering objections, the governing body shallbe governed by the following:
(a) Each paper containing signatures shall haveattached thereto an affidavit of an owner of real property within the proposedservice district stating that each signature was affixed in his presence and isthe signers genuine signature.
(b) An objection shall be counted only for the realproperty described as belonging to the signer. An objection without adescription shall not be counted.
(c) The signature of one cotenant, or if communityproperty, the signature of either spouse, is sufficient for an objection.
(d) An objection signed by a guardian, executor,administrator or trustee is valid without an order of court therefor.
(e) An objection by a person in possession under acontract of purchase is valid.
(f) When several persons have a claim to or an interestin real property, the signature of any of them is sufficient unless questionedby another having a claim or interest, whereupon the wishes of the personlegally entitled to possession of the real property at the date of theobjection controls.
(g) An objection signed by an agent or attorney-in-factshall be disregarded unless the authority of the agent has been recorded withthe county recorder or written or telegraphic authority is attached to theobjection before expiration of the time for filing the objection.
(h) An objection may be withdrawn by filing awithdrawal with the clerk before 5 p.m. of the last day for the filing ofobjections.
(i) The signature of a cotenant, spouse, claimant orperson interested may be questioned, and the authority of an agent orattorney-in-fact may be questioned, at any time before the governing bodyfinally passes upon the sufficiency of the objection, but the authority of anagent or attorney-in-fact may not be revoked as to a signature after theexpiration of the period in which objections may be filed.
(Added to NRS by 1971, 1236)
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1. At the place, date and hour specified for thehearing in the notice or at any subsequent time to which the hearing may beadjourned, the governing body shall give full consideration to all writtenobjections which have been filed and shall hear all owners of real propertywithin the proposed service district desiring to be heard.
2. If the governing body determines after the hearingthat an existing or a new electric facility must be placed underground andthat:
(a) The requirements for the establishment of a servicedistrict have been satisfied;
(b) Objections have not been filed in writing by morethan 40 percent of the owners of real property within the proposed servicedistrict, or by owners of more than 40 percent of the real property on a squarefoot basis in the proposed service district;
(c) Considering all objections, the cost ofconstruction or conversion as contained in the joint report prepared pursuantto NRS 704A.180 is economically andtechnically feasible for the public utility corporations involved and theowners of real property affected; and
(d) The proposed service district is a reasonablycompact area which encompasses areas that will benefit from the installation ofthe facility underground,
thegoverning body shall enact an ordinance establishing the area as a service district.
3. The ordinance must:
(a) State the costs to be assessed to each lot in theservice district, including the appropriate share of all costs referred to in
(b) Direct the public utility corporation owningoverhead electric or communication facilities within the service district toconstruct or convert such facilities to underground facilities and, in the caseof a public utility corporation other than a city or county, to construct orconvert such facilities in accordance with standard underground practices andprocedures approved by the Public Utilities Commission of Nevada.
(c) State the method of levying assessments, the numberof installments, and the times when the costs assessed will be payable.
4. Before enacting an ordinance establishing a servicedistrict, the governing body shall exclude by resolution or ordinance anyterritory described in the petition which the governing body finds will not bebenefited by inclusion in the service district or for which undergroundconstruction or conversion is not economically or technically feasible.
5. The basis for apportioning the assessments:
(a) Must be in proportion to the special benefitsderived to each of the several lots comprising the assessable property withinthe service district; and
(b) Must be on a front foot, area, zone or other equitablebasis as determined by the governing body.
6. Regardless of the basis used for the apportionmentof assessments, in cases of wedge or V or any other irregularly shaped lots, anamount apportioned thereto must be in proportion to the special benefits therebyderived.
7. The assessable property in the service districtsconsists of the lots specially benefited by the construction or conversion ofservice facilities, except:
(a) Any lot owned by the Federal Government in theabsence of consent of Congress to its assessment; and
(b) Any lot owned by the municipality.
(Added to NRS by 1971, 1236; A 1973, 476; 1997, 1919,2551; 1999, 572,
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1. If the governing body determines at the hearingthat territory not included in the petition should be included within theservice district the owners of real property within such territory shall begiven notice by mail as provided in subsection 2 of
2. The provisions of
(Added to NRS by 1971, 1237)
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(Added to NRS by 1971, 1237)
1. The public utility corporation or corporationsinvolved and all owners of real property within the established servicedistrict shall be deemed parties to the proceedings for the purposes ofapplications for rehearings and appeals.
2. After an order is issued by the governing bodyestablishing a service district, any party to the proceedings may apply to thegoverning body for a rehearing. The governing body may grant a rehearing if inits judgment sufficient reason appears therefor.
3. No claim arising from an order of the governingbody shall accrue in any court to any party to the proceedings unless suchparty makes application to the governing body for a rehearing within 10 daysfrom the date of receiving notice of the enactment of the ordinance.
4. The application for a rehearing shall statespecifically the grounds on which it is based and no party to the proceedingsshall, in any court, urge or rely on any ground not stated in the application.
5. If an application for rehearing is timely filedwith the clerk the order shall be suspended until the application is granted ordenied. At its next regular meeting following the filing of an application forrehearing the governing body shall either deny the application or grant arehearing, which shall be held within 15 days from the date of an ordergranting the rehearing.
6. If, after a rehearing and a consideration of allthe facts, including those arising since the enactment of the ordinance, thegoverning body finds that the original ordinance or any part thereof is in anyrespect unjust or unwarranted or should be changed, the governing body mayrepeal or amend the ordinance.
(Added to NRS by 1971, 1237)
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1. Any party to the proceedings aggrieved by anordinance of the governing body establishing the service district, as amended,if amended, and filing a written objection as provided in
2. Any objection to the validity and correctness ofthe proceedings and instruments taken, adopted or made prior to the date of theapplication for rehearing shall be deemed waived in any hearing on assessmentsconducted by the governing body under NRS704A.240 unless the objection is presented in writing at the times and inthe manner specified in this chapter by a written objection under
(Added to NRS by 1971, 1238; A 1973, 477; 1981, 965)
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1. The time for applying for a rehearing has expiredand no application has been filed; or
2. If an application for a rehearing has been filed,the governing body has declined to repeal or amend the ordinance; and
3. Either the time for commencing an action in thedistrict court has expired and no action has been commenced, or if an actionhas been commenced, a final judgment upholding the validity of the ordinancehas been rendered; and
4. Arrangements for financing the construction orconversion have been completed and moneys are available therefor from theissuance of interim warrants, or from the levy and collection of assessmentsand issuance of bonds, or otherwise; and
5. The public utility corporation has been providedwith or acquired necessary easements or licenses satisfactory to it forinstallation and maintenance of underground electric and communicationfacilities.
(Added to NRS by 1971, 1238; A 1973, 477)
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1. The service facilities within the boundaries ofeach lot within an underground service district must be placed underground atthe same time as or after the underground system in private easements andpublic places is placed underground. The public utility corporation involved,directly or through a contractor, shall, in accordance with the rules andregulations of the public utility corporation, but subject to the regulationsof the Public Utilities Commission of Nevada in the case of a public utilitycorporation other than a city or county, and, in the case of any utilitycorporation, subject to any other applicable laws, ordinances, rules orregulations of the municipality or any other public agency under the policepower, convert to underground its facilities on any such lot in the case of:
(a) An electric public utility, up to the serviceentrance.
(b) A communication public utility, to the connectionpoint within the house or structure.
2. All costs or expenses of conversion must beincluded in the costs on which the underground conversion cost for suchproperty is calculated, as provided in this chapter.
(Added to NRS by 1971, 1238; A 1973, 478; 1987, 735;1997, 1920, 2553; 1999,572, 575)
1. For the purpose of paying any contractor orotherwise defraying any costs as they become due from time to time until moneyis available therefor from the levy and collection of assessments and anyissuance of bonds, the governing body may issue interim warrants.
2. Any interim warrants must:
(a) Bear such date or dates;
(b) Mature in such a denomination or denominations atsuch time or times, or at any time upon call;
(c) Bear interest at such a rate or rates, which mustnot exceed by more than 3 percent the Index of Twenty Bonds which was mostrecently published before the bids are received or a negotiated offer is accepted;and
(d) Be payable in such medium of payment at such placeor places within and without the State, including but not limited to the officeof the county treasurer,
as thegoverning body may determine.
3. Any interim warrants may be issued with privilegesfor registration for payment as to principal only, or as to both principal andinterest, may be negotiable or nonnegotiable, may be special obligationspayable from designated special assessments, any bond proceeds, and any othermoney designated to be available for the redemption of the interim warrants,and generally must be issued in such manner, in such form, with such recitals,terms, covenants and conditions, and with such other details, as may beprovided by the governing body by ordinance.
(Added to NRS by 1971, 1239; A 1981, 1422; 1983, 589)
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1. At any time after there occur the conditions statedin subsection 1 or in subsections 2 and 3 of
(a) Determine the total cost of the construction orconversion pertaining to the service district, including, without limitation,interest on any interim warrants relating thereto and all other incidentalcosts, based upon the actual costs known at the time of such determination ofcost and otherwise upon the estimated costs stated in the joint report preparedunder NRS 704A.180, as modified, ifmodified by the occurrence thereafter of factors affecting such costs andpermitting their revision;
(b) Determine the net cost of the construction orconversion to be defrayed by special assessments;
(c) Order the municipal engineer to make out or tocause to be made out an assessment roll containing, among other matters:
(1) The name of each last known owner of eachlot to be assessed, or if not known, a statement that the name is unknown;and
(2) A description of each tract to be assessed,and the amount of the proposed assessment thereon, apportioned upon the basisfor assessments stated in the resolution of the governing body adopted pursuantto subsection 2 of NRS 704A.180, butsubject to the provisions of subsections 5 and 6 of
(d) Cause a copy of the resolution to be furnished bythe municipal clerk to the municipal engineer.
2. If by mistake or otherwise any person is improperlydesignated in the assessment roll as the owner of any lot, or if the same isassessed without the name of the owner or each owner, as the case may be, or inthe name of a person other than the owner, such assessment shall not for thatreason be vitiated but shall, in all respects, be as valid upon and againstsuch lot as though assessed in the name of the owner or each owner thereof, asthe case may be; and when the assessment roll has been confirmed, suchassessment shall become a lien on such lot and be collected as provided by law.
3. No assessment shall exceed the amount of thespecial benefits to the lot assessed nor exceed the amount of the reasonablemarket value of such lot for any one project for the construction or conversionof any one type of service facilities of a public utility corporation, asdetermined by the governing body.
(Added to NRS by 1973, 478)
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