2006 Utah Code - 17A-2-712 — Additional powers of board.

     17A-2-712.   Additional powers of board.
     (1) Irrigation districts may acquire, purchase, construct, improve, enlarge, and operate water facilities, electric facilities, or any combination thereof.
     (2) Irrigation districts may enter into contracts for the sale of all or a portion of the electric power generated at a hydroelectric power plant, whether or not the electric power to be sold is surplus to the needs of the district, and may enter into contracts for the sale of water, for the periods of time and under the terms and conditions the board considers necessary in order to accomplish the purposes of the district. Any sale of electric power or water may be for the period and upon the terms and conditions as may be provided in contracts authorized by the board and entered into by the district and any purchaser of the electric power or water having a system for distributing the electric power or water. Any revenues received by the district pursuant to power or water sale contracts may be used and pledged for the payment of the principal of and interest and any premium on bonds or notes of the district issued to pay all or part of the cost of acquiring, constructing, improving, or enlarging facilities, or for any other lawful purpose of the district.
     (3) The boards of trustees of any two or more irrigation districts may, by appropriate resolutions, enter into agreements with one another, pursuant to Title 11, Chapter 13, Interlocal Cooperation Act, by which the districts may jointly or cooperatively exercise any of the powers conferred by this part.
     (4) The board may issue bonds of the district, in the manner provided in this section:
     (a) to pay for all or part of the costs of the acquisition, construction, improvement, or enlargement of any facilities and to pay expenses preliminary and incidental thereto;
     (b) to pay interest on the bonds during acquisition, construction, improvement, or enlargement of any facilities; and
     (c) to provide for necessary reserves and to pay costs of issuance and sale of the bonds, including, without limitation, printing, registration, and transfer costs, legal, financial advisor's, and rating agency fees, insurance premiums, and underwriter's discount.
     (5) The board may provide that any bonds issued and sold under this section shall be payable solely out of a special fund into which the district issuing the bonds shall be obligated to deposit, as from time to time received, all or a designated portion of the revenues or other income of the district. Any pledge of revenues creates a lien which:
     (a) is perfected and enforceable upon the effective date of the security agreement pursuant to which the bonds are issued;
     (b) has priority as against all parties having claims of any kind in tort, contract, or otherwise against the district; and
     (c) has priority based on the time of the creation of the pledge unless otherwise provided in the security agreement.
     (6) Bonds of the district may be issued and sold in compliance with Title 11, Chapter 14, Local Government Bonding Act, and Title 11, Chapter 27, Utah Refunding Bond Act, as applicable, and may be in the form and denominations and have the provisions and details as are permitted thereby. The bonds and any evidences of participation interests in the bonds may be issued, executed, authenticated, registered, transferred, exchanged, and otherwise made to comply with Title 15, Chapter 7, Registered Public Obligations Act, or any other statute relating to the registration of bonds enacted to meet the requirements of Section 149(a) of the Internal Revenue Code of 1986, or any similar or successor federal law, and applicable regulations.

Bonds may be issued under the authority of this section at one time or from time to time. If more than one issue or series of bonds is delivered under the authority of this section, the bonds of the respective issue or series shall have the priorities of payment as provided in the proceedings authorizing the bonds.
     (7) Any resolution, indenture, agreement, or other document authorizing bonds may contain covenants with the future holders of the bonds as to:
     (a) the management and operation of the facilities of the irrigation district, including the facilities acquired, constructed, improved, enlarged, or operated pursuant to this section;
     (b) the imposition and collection of use charges;
     (c) the disposition of the revenues;
     (d) the issuance of future bonds and the creation of future liens and encumbrances against these facilities and the revenues thereof;
     (e) the carrying of insurance on these facilities and the disposition of the proceeds of insurance;
     (f) the sale, disposal, or alienation of these facilities; and
     (g) other pertinent matters deemed necessary or proper by the board to assure the merchantability of the bonds. These covenants and agreements may not be inconsistent with this section.
     (8) The district may undertake in the resolution, indenture, agreement, or other document authorizing bonds to make the revenues of the facilities sufficient to pay the expense of their operation and maintenance, and may undertake to make the revenues or net revenues of the facilities sufficient to produce in each year an amount in excess of actual requirements for principal of and interest on the bonds in that year as the board may consider necessary to assure the highest marketability of the bonds.
     (9) Any resolution, indenture, agreement, or other document authorizing bonds may provide that the bonds will recite that they are issued under authority of this part. The recital will conclusively import full compliance with all of the provisions of this part, and all bonds issued containing the recital will be incontestable for any cause whatsoever after their delivery for value.
     (10) When a district has issued bonds and pledged for the payment thereof any revenues of the district, the district shall establish and collect use charges in that amount and at those rates which will be fully sufficient at all times to pay the expenses of operating and maintaining these facilities, to provide a special fund sufficient to assure the prompt payment of principal of and interest on the bonds as principal and interest fall due, and to provide funds for reserves and contingencies and for a depreciation fund for repairs, extensions, and improvements to these facilities as considered necessary to assure adequate and efficient service, all as may be required by the bond resolution. No board or commission other than the board of trustees of the district has authority over or is required to approve the making or fixing of use charges or the acquisition of property by the district or the issuance of its bonds.
     (11) (a) If an irrigation district board determines that the interests of the district require the issuance of bonds or the making of a contract with the United States, the board will, except as provided in Subsection (13), adopt a resolution directing that an election be held to determine whether bonds may be issued or a contract with the United States may be entered into for the purposes specified in the resolution.
     (b) The following are subject to the conditions provided in Title 11, Chapter 14, Local Government Bonding Act:

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     (i) adoption of the resolution calling the election;
     (ii) giving notice of the election;
     (iii) conduct of the election;
     (iv) determination of voters' qualifications; and
     (v) canvassing of election results.
     (12) In designating the voting places for purposes of the election, the board may treat the entire district as a single precinct or divide the district into precincts.
     (13) No election is required under this section prior to the issuance of bonds or the making of a contract with the United States except as otherwise required by the constitution or Subsection (14).
     (14) Notwithstanding anything to the contrary in this section or Title 11, Chapter 14, Local Government Bonding Act, no irrigation district may issue bonds, other than bonds issued to refund outstanding bonds, or enter into a contract with the United States unless:
     (a) the issuance of the bonds or the making of the contract has been approved at an election called and held as provided in this section; or
     (b) the board of trustees:
     (i) provides notice of a public hearing on whether to issue the bonds or enter into the contract by:
     (A) publishing notice in a newspaper published in or of general circulation in the district at least seven days prior to the public hearing which sets forth:
     (I) the maximum principal amount and the purpose of the proposed bond issue or contract;
     (II) the date, time, and place of the public hearing;
     (III) when and where written comments regarding the bonds or the contract may be filed; and
     (IV) whether the district reasonably expects that paying amounts due on the bonds or under the contract will result in a substantial increase in use charges; and
     (B) if the district reasonably expects that paying amounts due on the bonds or under the contract will increase use charges by more than $15 per connection per year, mailing notice to every household containing a qualified voter who is eligible to vote on the bonds or the contract, at least seven days but not more than 30 days before the public hearing, on a minimum three-inch by five-inch postcard or a voter information pamphlet prepared by the governing body that includes the information required by Subsection (14)(b)(i)(A);
     (ii) holds a public hearing on the date and at the time and place specified in the notice of public hearing, provided that the hearing may be adjourned from time to time to a fixed future time and place;
     (iii) considers at the public hearing all comments that have been filed or stated at the hearing relating to the bonds or the contract;
     (iv) after considering all comments received, adopts a resolution during or after the meeting at which the public hearing is held, declaring the intention of the board of trustees to issue bonds or enter into the contract; and
     (v) directs that notice of the district's intention to issue bonds or enter into the contract be published once in a newspaper of general circulation in the district stating:
     (A) the maximum principal amount and purpose of the proposed bond issue or contract;
     (B) when and where petitions may be filed requesting the calling of an election to

determine whether the bonds or the contract should be authorized; and
     (C) when and where a form of petition requesting the calling of an election may be obtained from the district.
     (15) If, within 30 days after publication of the notice of intention, a petition is filed with the secretary, signed by not less than 5% of the qualified electors of the district, requesting that an election be called to authorize the contract or the bonds, then the board shall call and hold an election as provided in this section before the bonds are issued or the contract is entered into.
     (16) If no petition is filed, or if the number of signatures filed within the 30-day period is less than the required number, the board of trustees may proceed to issue the bonds or enter into the contract.

Amended by Chapter 105, 2005 General Session