SUMMARY--Authorizes governing body of municipality to create local improvement district to provide for relocation of certain electric and communication facilities. (BDR 21-200)
FISCAL NOTE: Effect on Local Government: No.
Effect on the State or on Industrial Insurance: No.
EXPLANATION - Matter in italics is new; matter in brackets [ ] is material to be omitted.
AN ACT relating to local improvement districts; authorizing the governing body of a municipality to create a local improvement district to provide for the conversion of electric and communication facilities that are above ground to underground facilities; and providing other matters properly relating thereto.
THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:
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Section 1 Chapter 271 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 to 7, inclusive, of this act.
Sec. 2 "Electric or communication facilities" means any works or improvements used or useful in providing electric or communication service, including, but not limited to, poles, supports, tunnels, manholes, vaults, conduits, pipes, wires, conductors, guys, stubs, platforms, crossarms, braces, transformers, insulators, cutouts, switches, capacitors, meters, communication circuits, appliances, attachments and appurtenances.
Sec. 3 "Overhead electric or communication facilities" means electric or communication facilities located above the surface of the ground, except that the term does not include:
1. Facilities including transformers, pull boxes, service terminals, pedestal terminals, splice closures, apparatus cabinets and other similar facilities that normally are above the surface in areas where service lines are underground in accordance with standard underground practices.
2. On-the-ground facilities that are attached to overhead facilities and used to connect an underground system to the overhead facilities.
Sec. 4 "Public utility corporation" means a person or corporation subject to the jurisdiction of the public service commission of Nevada that provides electric or communication service to the public by means of electric or communication facilities.
Sec. 5 "Underground conversion project" means the removal of existing overhead electric or communication facilities, or both, owned by one or more public utility corporations and the replacement thereof with underground electric or communication facilities, or both, constructed at the same location or at different locations.
Sec. 6 1. A governing body may, pursuant to NRS 271.275 or 271.710, establish a district to finance an underground conversion project. Before the governing body may adopt an ordinance pursuant to NRS 271.325 to establish such a district, each public utility corporation that owns the overhead electric or communication facilities, or both, to be converted to underground facilities must submit its written approval of the project to the governing body. The governing body shall not establish a district to finance an underground conversion project without receiving the written approval of each such public utility corporation pursuant to this subsection.
2. Before initiating the establishment of a district pursuant to this section, the governing body must request in writing and receive from each public utility that owns the overhead electric or communication facilities, or both, to be converted in the proposed improvement district a written estimate of the cost to convert those facilities to underground facilities. The public utility corporation shall provide its estimate of the cost of the conversion to the governing body not later than 120 days after the public utility corporation receives the request from the governing body.
3. If a district already exists for the location for which the underground conversion project is proposed, the governing body may, pursuant to NRS 271.295, combine the underground conversion project with other projects in that district.
4. An underground conversion project must be constructed by one or more of the public utility corporations that own the overhead electric or communication facilities, or both, to be converted, pursuant to a written agreement between the governing body and each public utility corporation that will engage in the construction. Such a project must be constructed in accordance with the standard underground practices and procedures approved by the public service commission of Nevada.
5. The provisions of any law requiring public bidding or otherwise imposing requirements on any public contract, project, works or improvements, including, without limitation, the provisions of chapters 332, 338 and 339 of NRS, do not apply to a contract entered into by a municipality and a public utility corporation pursuant to this section, except that the contract must include a provision stating that the requirements of NRS 338.010 to 338.090, inclusive, apply to any construction work to be performed under the contract.
6. Construction on an underground conversion project approved pursuant to this chapter may not commence until:
(a) An ordinance creating a district is adopted pursuant to NRS 271.325;
(b) The time for filing an appeal pursuant to NRS 271.315 has expired, or if such an appeal has been timely filed, a final, nonappealable judgment upholding the validity of the ordinance has been rendered;
(c) Arrangements for the financing of the construction have been completed through the issuance of bonds or interim warrants; and
(d) The public utility corporation has obtained all applicable permits, easements and licenses necessary to convert the facilities.
Sec. 7 1. The service facilities within the boundaries of each lot within a district to finance an underground conversion project established pursuant to section 6 of this act must be placed underground at the same time as or after the underground system in private easements and public places is placed underground. The public utility corporation involved, directly or through a contractor, shall, in accordance with the rules and regulations of the public utility corporation, but subject to the regulations of the public service commission of Nevada and any other applicable laws, ordinances, rules or regulations of the municipality or any other public agency under the police power, convert to underground its facilities on any such lot:
(a) For electric facilities, up to the service entrance.
(b) For communication facilities, to the connection point within the house or structure.
2. All costs or expenses of conversion must be included in the cost on which the cost of the underground conversion for that property is calculated.
3. As used in this section, "lot" includes any portion, piece or parcel of land, except property which is owned or controlled by any person as a right of way.
Sec. 8 NRS 271.030 is hereby amended to read as follows:
271.030 Except where the context otherwise requires, the definitions in NRS 271.035 to 271.250, inclusive, and sections 2 to 5, inclusive, of this act, govern the construction of this chapter.
Sec. 9 NRS 271.265 is hereby amended to read as follows:
271.265 1. The governing body of a county, city or town, upon behalf of the municipality and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, within or without the municipality, or both , within and without the municipality:
(a) A curb and gutter project;
(b) A drainage project;
(c) An offstreet parking project;
(d) An overpass project;
(e) A park project;
(f) A sanitary sewer project;
(g) A security wall;
(h) A sidewalk project;
(i) A storm sewer project;
(j) A street project;
(k) A transportation project;
(l) An underpass project;
(m) A water project; and
(n) Any combination of such projects.
2. In addition to the power specified in subsection 1, the governing body of a city having a commission form of government as defined in NRS 267.010, upon behalf of the municipality and in its name, without any election, may from time to time acquire, improve, equip, operate and maintain, within or without the municipality, or both , within and without the municipality:
(a) An electrical project;
(b) A telephone project;
(c) A combination of an electrical project and a telephone project;
(d) A combination of an electrical project or a telephone project with any of the projects , [(] or any combination thereof , [)] specified in subsection 1; and
(e) A combination of an electrical project and a telephone project with any of the projects , [(] or any combination thereof , [)] specified in subsection 1.
3. In addition to the power specified in subsections 1 and 2, the governing body of a municipality, on behalf of the municipality and in its name, without an election, may finance an underground conversion project with the approval of each public utility corporation that owns the overhead electric or communication facilities, or both, to be converted.
Sec. 10 NRS 271.315 is hereby amended to read as follows:
271.315 1. Any person filing a written complaint, protest or objection as provided in NRS 271.305 may, within 30 days after the governing body has finally passed on the complaint, protest or objection by resolution or ordinance as provided in subsection 2 of NRS 271.310, commence an action or suit in any court of competent jurisdiction to correct or set aside the determination, but thereafter all actions or suits attacking the validity of the proceedings and the amount of benefits are perpetually barred.
2. Any person who brings an action pursuant to this section must plead with particularity and prove the facts upon which he relies to establish:
(a) That the estimate of the benefits to be derived from the project or the method used to apportion the cost of the project is fraudulent, arbitrary or unsupported by substantial evidence; or
(b) That any provision of NRS 271.265 to 271.310, inclusive, or section 6 of this act, has been violated.
Conclusory allegations of fact or law are insufficient to comply with the requirements of this subsection.
3. In any action brought pursuant to this section, judicial review of the proceedings is confined to the record before the governing body. Evidence that has not been presented to the governing body must not be considered by the court.
Sec. 11 NRS 271.335 is hereby amended to read as follows:
271.335 1. No contract for doing construction work for acquiring or improving the project contemplated may be made or awarded, nor may the governing body incur any expense or liability in relation thereto, except for maps, plats, diagrams, estimates, plans, specifications and notices, until after the hearing upon the provisional order and notice thereof provided for [herein] in NRS 271.305 have been given and had.
2. This section does not prevent the governing body from advertising by publication for proposals for doing the work whenever the governing body sees fit, but the contract may not be made or awarded before the time stated in subsection 1.
3. [In] Except as otherwise provided in section 6 of this act, in the case of construction work done by independent contract for any project, or portion thereof, in any improvement district, the municipality shall request competitive bids, and proceed thereon, pursuant to the provisions of chapter 338 of NRS.
4. The municipality may waive any irregularity in the form of any bid.
5. Any contract may be let on a lump sum or on a unit basis.
6. No contract may be entered into for such work unless the contractor gives an undertaking with a sufficient surety or sureties approved by the governing body and in an amount fixed by it for the faithful performance of the contract and for payment of the contract.
7. Upon default in the performance of any contract, any designated official, as directed by motion of the governing body, may advertise and relet the remainder of the work without further ordinance or resolution and deduct the cost from the original contract price and recover any excess cost by suit on the original bond, or otherwise.
8. All contracts must provide among other things that the person entering into the contract with the municipality will pay for all materials furnished and labor and services rendered for the performance of the contract, and that any person furnishing the materials or rendering the services may maintain an action to recover for them against the obligor in the undertaking as though the person was named therein.
9. A contract or agreement made in violation of the provisions of this section is voidable, and no action may be maintained thereon by any party thereto against the municipality.
10. To the extent the municipality makes any payment thereunder, such a contract or agreement is valid, and any such payment may be included in any cost defrayed by the levy of assessments, unless theretofore the municipality elects to void the contract or agreement in its entirety and to recover any such payment from the party to whom made.
11. The governing body, except as expressly limited in this section, may, in the letting of contracts, impose such conditions upon bidders with regard to bonds and securities, and such guaranties of good and faithful performance and completion of any work and the keeping of the work in repair, and providing for any further matter or thing in connection therewith, as may be considered by the governing body to be advantageous to the municipality and to all interested.
Sec. 12 This act becomes effective upon passage and approval.