Assembly Bill No. 507

Assembly Bill No. 507-Committee on Government Affairs

(On Behalf of Elko County)

May 19, 1997
____________

Referred to Committee on Government Affairs

SUMMARY--Clarifies authority of governing body to maintain local improvement projects. (BDR 21-666)

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 projects; clarifying the authority of governing bodies to provide for the maintenance of a project; and providing other matters properly relating thereto.

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

Section 1 Chapter 271 of NRS is hereby amended by adding thereto the provisions set forth as sections 2 and 3 of this act.
Sec. 2. "Maintenance" means activities reasonably necessary to preserve the useful life of a project, including, but not limited to, painting, repairing, grading, oiling, patching, resurfacing, sanding, sweeping, washing and the removal of ice and snow.
Sec. 3. 1. For each fiscal year after a governing body acquires a street project, the governing body shall prepare an estimate of costs for maintenance of the street project.
2. The governing body may levy an assessment against the property which was assessed to acquire the street project to provide the money necessary for maintenance in the amount estimated pursuant to subsection 1. The assessment must be proportional in the same manner as the initial assessment. The proceeds of the assessment must be placed in a special fund and used only to maintain the street project.
Sec. 4. 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 section 2 of this act, govern the construction of this chapter.
Sec. 5. NRS 271.220 is hereby amended to read as follows:
271.220 "Street" means any street, road, avenue, boulevard, alley, highway or other public right of way used for any vehicular traffic, but excluding a sidewalk designed primarily for use by pedestrians.
Sec. 6. NRS 271.270 is hereby amended to read as follows:
271.270 The governing body of any municipality, upon behalf of the municipality and in its name, for the purpose of defraying all the cost of acquiring [or improving, or acquiring and improving,] , improving or maintaining, or any combination thereof, any project herein authorized, or any portion of the cost thereof not to be defrayed with moneys available therefor from the general fund, any special fund, or otherwise, shall have power hereunder:
1. To levy assessments against assessable property within the municipality and to cause the assessments so levied to be collected.
2. To levy from time to time and cause to be collected taxes against all taxable property within the municipality, without limitation as to rate or amount, except for the limitation in section 2 of article 10 of the constitution of the State of Nevada, to pay the principal of and interest on bonds to the extent assessments are insufficient therefor.
3. To pledge the proceeds of any assessments and taxes levied hereunder to the payment of special assessment bonds and to create liens on such proceeds to secure such payments.
4. To issue special assessment bonds as herein provided.
5. To make all contracts, execute all instruments and do all things necessary or convenient in the exercise of the powers granted herein, or in the performance of the municipality's covenants or duties or in order to secure the payment of its bonds, provided no encumbrance, mortgage or other pledge of property , [(] excluding any money , [)] of the municipality is created thereby, and provided no property , [(] excluding money , [)] of the municipality is liable to be forfeited or taken in payment of such bonds.
Sec. 7. NRS 271.275 is hereby amended to read as follows:
271.275 The procedure for acquiring [or improving or acquiring and improving any] , improving or maintaining, or any combination thereof, a project can be initiated in one of the following ways:
1. Provisional order method; or
2. Petition method.
Sec. 8. NRS 271.280 is hereby amended to read as follows:
271.280 1. Whenever the governing body is of the opinion that the interest of the municipality requires any project, the governing body, by resolution, shall direct the engineer to prepare, or may, after he has prepared, ratify:
(a) Preliminary plans or schedules showing:
(1) A typical section of the contemplated improvement.
(2) The type or types of material, approximate thickness and [wideness.] width.
(3) For maintenance projects, the activities and materials to be used in a fiscal year.
(4) A preliminary estimate of the cost of the project, including incidental costs.
(b) An assessment plat showing:
(1) The area to be assessed.
(2) The amount of maximum benefits estimated to be assessed against each tract in the assessment area.
The governing body is not required to employ the services of an appraiser to estimate or to assist the engineer in estimating the benefits to be derived from the project.
2. The resolution or ratification may provide for one or more types of construction [,] or maintenance projects, and the engineer shall separately estimate the cost of each type of construction [.] or maintenance project. The estimate may be made in a lump sum or by unit prices, as the engineer determines is most desirable for the improvement [complete in place.] or maintenance project.
3. The resolution or document ratified must describe the project in general terms.
4. The resolution or document ratified must state:
(a) What part or portion of the expense of the project is of special benefit and therefore is to be paid by assessments.
(b) What part, if any, has been or is proposed to be defrayed with money derived from other than the levy of assessments.
(c) The basis by which the cost will be apportioned and assessments levied.
5. If the assessment is not to be made according to front feet, the resolution or document ratified must:
(a) By apt description designate the improvement district, including the tracts to be assessed.
(b) Describe definitely the location of the project.
(c) State that the assessment is to be made upon all the tracts benefited by the project proportionately to the benefits received.
6. If the assessment is to be upon the abutting property upon a frontage basis, it is sufficient for the resolution or document ratified so to state and to define the location of the project to be made.
7. It is not necessary in any case to describe minutely in the resolution or document ratified each particular tract to be assessed, but simply to designate the property, improvement district or the location, so that the various parts to be assessed can be ascertained and determined to be within or without the proposed improvement district.
8. The engineer shall forthwith prepare and file with the clerk:
(a) The preliminary plans or schedules; and
(b) The assessment plat.
9. Upon the filing of the plans or schedules and plat, they must be examined by the governing body. If the plans or schedules and plat are found to be satisfactory, the governing body shall make a provisional order by resolution to the effect that the project will be acquired [or improved, or both acquired and improved.] , improved or maintained, or any combination thereof.
Sec. 9. NRS 271.285 is hereby amended to read as follows:
271.285 Whenever the owner or owners of lands to be assessed for not less than 90 percent of the entire cost of any project, including all incidental expenses, constituting at least 66 2/3 percent in frontage, in area or other property basis used for the computation of assessments as therein provided, as the case may be, by written petition, initiates the acquisition , improvement or maintenance, or any combination thereof, of any project which the governing body is authorized to initiate, subject to the following limitations:
1. The governing body may incorporate such project in any improvement district or districts.
2. The governing body need not proceed with the acquisition , improvement or maintenance, or any combination thereof, of any such project or any part thereof after holding a hearing thereon, pursuant to NRS 271.310, and all provisions thereof thereunto enabling, if the governing body shall determine that it is not for the public interest that the proposed project, or a part thereof, be then ordered to be made.
3. Any particular kind of project, or any material therefor, or any part thereof, need not be acquired [or located,] , improved, located or maintained, or any combination thereof, as provided in the petition, if the governing body shall determine that such is not for the public interest.
4. The governing body need not take any proceedings or action upon receiving any such petition, if the governing body shall thereupon determine by resolution that the acquisition , improvement or maintenance, or any combination thereof, of the designated project probably is not feasible for a reason or reasons stated in such resolution, and if the resolution requires a cash deposit or a pledge of property in at least an amount or value therein designated and found therein by the governing body probably to be sufficient to defray the expenses and costs incurred by the municipality taken preliminary to and in the attempted acquisition , improvement or maintenance, or any combination thereof, of the project designated in the petition, and if such deposit or pledge is not made with the treasurer within 20 days after one publication in a newspaper of general circulation in the municipality of a notice of the resolution's adoption and of its content in summary form. An additional deposit or pledge may from time to time be similarly so required as a condition precedent to the continuation of action by the municipality. Whenever such deposit or pledge is so made and thereafter the governing body shall determine that such acquisition , improvement or maintenance, or any combination thereof, is not feasible within a reasonable period of time, the governing body may require that all or any portion of the costs theretofore incurred in connection therewith by the municipality after its receipt of the petition shall be defrayed from such deposit or the proceeds of such pledged property in the absence of such defrayment of costs by petitioners or other interested persons within 20 days after the determination by resolution of the amount so to be defrayed and after such published notice thereof.
Sec. 10. NRS 271.295 is hereby amended to read as follows:
271.295 1. More than one project may be combined in one improvement district when the governing body determines such projects may be combined together in an efficient and economical improvement district.
2. If in the combination of projects, they shall be separate and distinct by reason of substantial difference in their character or location, or otherwise, each such project shall be considered as a unit or quasi-improvement district for the purpose of petition, remonstrance and assessment.
3. In case of such combination, the governing body shall designate the project and area constituting each such unit, and in the absence of an arbitrary and unreasonable abuse of discretion, its determination that there is or is not such a combination and its determination of the project and area constituting each such unit shall be final and conclusive.
4. The costs of acquiring , [or] improving or maintaining, or any combination thereof, each such project shall be segregated for the levy of assessments and an equitable share of the incidental costs shall be allocated to each such unit.
Sec. 11. NRS 271.305 is hereby amended to read as follows:
271.305 1. In the provisional order the governing body shall set a time, at least 20 days thereafter, and a place at which the owners of the tracts to be assessed, or any other interested persons, may appear before the governing body and be heard as to the propriety and advisability of acquiring [or improving, or acquiring and improving,] , improving or maintaining, or any combination thereof, the project or projects provisionally ordered. If a mobile home park is located on one or more of the tracts to be assessed, the notice must be given to the owner of the tract and each tenant of that mobile home park.
2. Notice must be given:
(a) By publication.
(b) By mail.
(c) By posting.
3. Proof of publication must be by affidavit of the publisher.
4. Proof of mailing and proof of posting must be by affidavit of the engineer, clerk [,] or any deputy mailing the notice and posting the notice, respectively.
5. Proof of publication, proof of mailing and proof of posting must be maintained in the records of the municipality until all the assessments appertaining to the project have been paid in full, including principal, interest, any penalties [,] and any collection costs.
6. The notice may be prepared by the engineer and ratified by the governing body, and, except as otherwise provided in subsection 7, must state:
(a) The kind of project proposed.
(b) The estimated cost of the project, and the portion, if any, to be paid from sources other than assessments.
(c) The basis for apportioning the assessments, which assessments must be in proportion to the special benefits derived to each of the several tracts comprising the assessable property and on a front foot, area, zone or other equitable basis.
(d) The number of installments and time in which the assessments will be payable.
(e) The maximum rate of interest on unpaid installments of assessments.
(f) The extent of the improvement district to be assessed, by boundaries or other brief description.
(g) The time and place of the hearing where the governing body will consider all objections to the project.
(h) That all written objections to the project must be filed with the clerk of the municipality at least 3 days before the time set for the hearing.
(i) That pursuant to NRS 271.306, if a majority of the property owners to be assessed for a project proposed by a governing body [,] object in writing within the time stated in paragraph (h), the project must not be acquired [or improved] , improved or maintained, or any combination thereof, unless:
(1) The municipality pays one-half or more of the total cost of the project, other than a park project, with money derived from other than the levy or assessments; or
(2) The project constitutes not more than 2,640 feet, including intersections, remaining unimproved or not maintained in any street, including an alley, between improvements or maintenance already [made] completed to either side of the same street or between improvements or maintenance already [made] completed to intersecting streets.
(j) That the description of the tracts to be assessed, the maximum amount of benefits estimated to be conferred on each such tract and all proceedings in the premises are on file and can be examined at the office of the clerk.
(k) Unless there will be no substantial change, that a substantial change in certain existing street elevations or grades will result from the project, without necessarily including any statement in detail of the extent or location of any such change.
(l) That a person should object to the formation of the district using the procedure outlined in the notice if his support for the district is based upon a statement or representation concerning the project that is not contained in the language of the notice.
(m) That if a person objects to the amount of maximum benefits estimated to be assessed or to the legality of the proposed assessments in any respect:
(1) He is entitled to be represented by counsel at the hearing;
(2) Any evidence he desires to present on these issues must be presented at the hearing; and
(3) Evidence on these issues that is not presented at the hearing may not thereafter be presented in an action brought pursuant to NRS 271.315.
7. The notice need not state either or both of the exceptions stated in subsection 2 of NRS 271.306 unless either or both of the exceptions are determined by the governing body or the engineer to be relevant to the proposed improvement district to which the notice appertains.
8. All proceedings may be modified or rescinded wholly or in part by resolution adopted by the governing body, or by a document prepared by the engineer and ratified by the governing body, at any time before the passage of the ordinance adopted pursuant to NRS 271.325, creating the improvement district, and authorizing the project.
9. No substantial change in the improvement district, details, preliminary plans or specifications or estimates may be made after the first publication, posting or mailing of notice to property owners, whichever occurs first, except for the deletion of a portion of a project and property from the proposed program and improvement district or any assessment unit.
10. The engineer may make minor changes in [time,] schedules, plans and materials entering into the work at any time before its completion.
Sec. 12. NRS 271.306 is hereby amended to read as follows:
271.306 1. Regardless of the basis used for apportioning assessments, the amount apportioned to a wedge or V or any other irregularly shaped tract must be in proportion to the special benefits thereby derived.
2. If, within the time specified in the notice, complaints, protests and objections in writing, that is, all written remonstrances, against acquiring , [or] improving or maintaining, or any combination thereof, the project proposed by initiation of the governing body are filed with the clerk, signed by the owners of tracts constituting a majority of the frontage, of the area, of the zone, or of the other basis for the computation of assessments, as the case may be, of the tracts to be assessed in the improvement district or in the assessment unit if the improvement district is divided into assessment units, the project therein must not be acquired , [or] improved or maintained, or any combination thereof, unless:
(a) The municipality pays one-half or more of the total cost of the project, other than a park project, with money derived from other than the levy of assessments; or
(b) The project constitutes not more than 2,640 feet, including intersections, remaining unimproved or not maintained in any street, including an alley, between improvements or maintenance already [made] completed to either side of the same street or between improvements or maintenance already [made] completed to intersecting streets. In this case the governing body may on its own motion cause the intervening [and] unimproved or not maintained part of the street to be improved [.] or maintained. Such improvements or maintenance will not be stayed or defeated or prevented by written complaints, protests and objections thereto, unless the governing body in its sole discretion [,] deems such written complaints, protests and objections proper to cause the improvement or maintenance to be stayed or prevented.
Sec. 13. NRS 271.310 is hereby amended to read as follows:
271.310 1. On the date and at the place fixed for the hearing any and all property owners interested in the project may present their views in respect to the proposed projects to the governing body. The governing body may adjourn the hearing from time to time.
2. After the hearing has been concluded, after all written complaints, protests and objections have been read and considered, and after all persons desiring to be heard in person have been heard, the governing body shall consider the arguments, if any, and any other relevant material put forth, and shall by resolution or ordinance, as the board determines, pass upon the merits of each such complaint, protest or objection.
3. If the governing body determines that it is not for the public interest that the proposed project, or a part of the project, be made, the governing body shall make an order by resolution to that effect, and thereupon the proceedings for the project, or the part of the project determined against by the order, must stop and must not be begun again until the adoption of a new resolution.
4. Any complaint, protest or objection to:
(a) The propriety of acquiring [or improving or acquiring and improving] , improving or maintaining, or any combination thereof, the project;
(b) The estimated cost of the project;
(c) The determination concerning the portion of the cost of the project to be paid by assessments;
(d) The method used to estimate the special benefits to be derived from the project generally or by any tract in the assessment area;
(e) The basis established for apportionment of the assessments; or
(f) The regularity, validity and correctness of any other proceedings or instruments taken, adopted or made before the date of the hearing,
shall be deemed waived unless presented in writing at the time and in the manner provided by NRS 271.305.
Sec. 14. NRS 271.320 is hereby amended to read as follows:
271.320 1. After the hearing, after the governing body has disposed of all complaints, protests and objections, oral and in writing, and after the governing body has determined that either or both exceptions stated in subsection 2 of NRS 271.306 apply, or that there were not filed with the clerk complaints, protests and objections in writing and signed by the owners of tracts constituting a majority of the frontage, of the area, of the zone, or of the other basis for the computation of assessments stated in the notice, of the tracts to be assessed in the improvement district or in the assessment unit, if any, and the governing body has jurisdiction to proceed, the governing body shall determine whether to proceed with the improvement district, and with each assessment unit, if any, except as otherwise provided in this chapter.
2. If the governing body desires to proceed and desires any modification, by motion or resolution it shall direct the engineer to prepare and present to the governing body:
(a) A revised and detailed estimate of the total cost, including, without limiting the generality of the foregoing, the cost of acquiring , [or] improving or maintaining, or any combination thereof, each proposed project and of each of the incidental costs. The revised estimate does not constitute a limitation for any purpose.
(b) Full and detailed plans and specifications for each proposed project designed to permit and encourage competition among the bidders, if any project is to be acquired by construction contract.
(c) A revised map and assessment plat showing respectively the location of each project and the tracts to be assessed therefor, not including any area or project not before the governing body at a provisional order hearing.
3. That resolution, a separate resolution, or the ordinance creating the improvement district may combine or divide the proposed project or projects into suitable construction units for the purpose of letting separate and independent contracts, regardless of the extent of any project constituting an assessment unit and regardless of whether a portion or none of the cost of any project is to be defrayed other than by the levy of special assessments. Costs of unrelated projects must be segregated for assessment purposes as provided in this chapter.
Sec. 15. NRS 271.325 is hereby amended to read as follows:
271.325 1. When an accurate estimate of cost, full and detailed plans and specifications and map are prepared, are presented and are satisfactory to the governing body, it shall, by resolution, make a determination that:
(a) Public convenience and necessity require the creation of the district; and
(b) The creation of the district is economically sound and feasible.
This determination may be made part of the ordinance creating the district adopted pursuant to subsection 2 and is conclusive in the absence of fraud or gross abuse of discretion.
2. The governing body may, by ordinance, create the district and order the proposed project to be acquired [or improved.] , improved or maintained, or any combination thereof. This ordinance may be adopted and amended as if an emergency existed.
3. The ordinance must prescribe:
(a) The extent of the improvement district to be assessed, by boundaries or other brief description, and similarly of each assessment unit therein, if any.
(b) The kind and location of each project proposed, without mentioning minor details.
(c) The amount or proportion of the total cost to be defrayed by assessments, the method of levying assessments, the number of installments and the times in which the costs assessed will be payable.
(d) The character and extent of any construction or maintenance units.
4. The engineer may further revise the cost, plans and specifications and map from time to time for all or any part of any project, and the ordinance may be appropriately amended before letting any construction or maintenance contract therefor and before any work being done other than by independent contract let by the municipality.
5. The ordinance, as amended if amended, must order the work to be done as provided in this chapter.
6. Upon adoption or amendment of the ordinance, the governing body shall cause to be filed in the office of the county recorder a certified copy of a list of the tracts to be assessed and the amount of maximum benefits estimated to be assessed against each tract in the assessment area, as shown on the assessment plat as revised and approved by the governing body pursuant to NRS 271.320. Neither the failure to record the list as provided in this subsection nor any defect or omission in the list regarding any parcel or parcels to be included within the district affects the validity of any assessment, the lien for the payment thereof or the priority of that lien.
Sec. 16. NRS 271.330 is hereby amended to read as follows:
271.330 1. Any construction or maintenance work for any project shall be done in any one or more of the following three ways:
(a) By independent contract.
(b) By use of municipally owned or leased equipment and municipal officers, agents and employees.
(c) By another public body or the Federal Government acquiring , [or] improving or maintaining, or any combination thereof, a project or any interest therein which is herein authorized, which results in general benefits to the municipality and in special benefits to the assessable property being assessed therefor by the municipality within its boundaries.
2. Any project or any interest therein not involving construction or maintenance work appertaining to a capital improvement may be acquired , [or] improved or maintained, or any combination thereof, pursuant to any appropriate contract, or otherwise, including, without limiting the generality of the foregoing, the condemnation or other acquisition of real property. In such case nothing herein in subsection 1 nor in NRS 271.335, 271.340 or 271.345 shall be applicable.
3. Notwithstanding a project herein authorized or any interest therein may not be owned by a municipality nor be directly acquired [or improved,] , improved or maintained, or any combination thereof, nor the costs thereof directly incurred, by a municipality, and notwithstanding the project herein authorized or any interest therein may be located on land, an easement or other interest therein, or other real property owned by the Federal Government or a public body other than the municipality, the municipality shall have the power:
(a) To acquire [or improve, or both acquire and improve,] , improve or maintain, or any combination thereof, or to cooperate in the acquisition [or improvement of, or both the acquisition and improvement of, the project,] , improvement or maintenance, or any combination thereof, of the project or any interest therein, with the Federal Government or any public body , [(] other than the municipality , [),] pursuant to agreement between or among the municipality and such other bodies corporate and politic, so long as the project or the interest therein acquired [or improved, or both acquired and improved,] , improved or maintained, or any combination thereof, results in general benefits to the municipality and in special benefits to the assessable property being assessed therefor by the municipality within its boundaries.
(b) To levy special assessments on such assessable property to defray all or any part of the costs of the project or any interest therein, or to defray all or any part of the municipality's share of such costs if all costs are not being defrayed by the municipality.
(c) To issue bonds and to exercise other powers herein granted and appertaining to such acquisition or improvement, or both.
Sec. 17. NRS 271.335 is hereby amended to read as follows:
271.335 1. No contract for [doing construction work for acquiring or improving] completing work relating to acquiring, improving or maintaining, or any combination thereof, 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 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 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] for bids on 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] awarding 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. 18. NRS 271.337 is hereby amended to read as follows:
271.337 After notice is published by the governing body pursuant to NRS 271.305:
1. In the case of a change in the project as described in subsection 2, the owner of the property that will be assessed for the cost of the additional work may at any time waive in writing:
(a) The requirements of subsection 9 of NRS 271.305 and subsection 4 of NRS 271.325;
(b) The requirements regarding notice and hearing of NRS 271.305, 271.310, 271.380, 271.385 and 271.415 relating to the change; and
(c) The 30-day period for payment provided in NRS 271.405.
Notwithstanding any other requirement set forth in this chapter, the governing body is not required to comply with any provision waived pursuant to this subsection.
2. The governing body may add to an existing contract for construction or maintenance work any [improvement] additional construction or maintenance work which an owner of assessable property requests to be included in a project without further compliance with subsection 3 of NRS 271.335 or the provisions of any law requiring competitive bidding on any public contract, project, work [or improvement,] , improvement or maintenance if the owner who is requesting the addition agrees in writing that his property will be assessed for the cost of the additional work.
Sec. 19. NRS 271.345 is hereby amended to read as follows:
271.345 1. In the case of construction work done by agreement with one or more public bodies or the Federal Government, or both, for any project, or portion thereof, in any improvement district, the municipality may enter into and carry out any contract or establish or comply with the rules and regulations concerning labor and materials and other related matters in connection with any project or portion thereof as the municipality may deem desirable or as may be requested by the Federal Government or any public body other than the municipality which other public body is a party to any such contract with the municipality, that may assist in the financing of any project or any part thereof, regardless of whether the municipality is a party to any construction or maintenance contract or other contract appertaining to incurring costs of the project.
2. Any project or projects, any portion of the costs of which may be defrayed by the municipality by the levy of special assessments hereunder, may be acquired with the cooperation and assistance of, or under a contract or contracts let by, or with labor, or supplies and materials, or all of such furnished by, any one or more such public bodies or the Federal Government, or both.
3. Advantage may be taken of any offer from any source to complete any project or projects on a division of expense or responsibility.
4. The engineer on behalf of and in the name of the municipality is authorized to acquire , [or] improve or maintain, or any combination thereof, any such project or projects in such a manner, when so authorized by the ordinance creating the improvement district or any amendment thereto.
Sec. 20. NRS 271.350 is hereby amended to read as follows:
271.350 After the provisional order hearing and at the time of the passage of the ordinance creating any improvement district and any projects for the improvement district, or any amendment thereof, if any tract or any railway company to be assessed in the improvement district has the whole or any part of the proposed projects, conforming to the general plan, the same may be adopted in whole or in part, or may be changed to conform to the general plan, if deemed practical, and the owner of such real estate shall, when the assessment is made, be credited with the amount which is saved by reason of adapting or adopting such existing improvements [.] or maintenance.
Sec. 21. NRS 271.360 is hereby amended to read as follows:
271.360 1. After the making of any construction or maintenance contract, or after the determination of the net cost to the municipality, but not necessarily after the completion of the project, the governing body, by resolution or by a document prepared by the engineer and ratified by the governing body, shall:
(a) Determine the cost of the project to be paid by the assessable property in the improvement district.
(b) Order the engineer to make out an assessment roll, or ratify his roll already made, containing, among other things:
(1) The name of each last known owner of each tract to be assessed, or if not known, that the name is "unknown."
(2) A description of each tract to be assessed, and the amount of the proposed assessment thereon, apportioned upon the basis for assessments stated in the provisional order for the hearing on the project.
(c) Cause a copy of the resolution or ratified document to be furnished by the clerk to the engineer.
2. In fixing the amount or sum of money that may be required to pay the costs of the project, the governing body need not necessarily be governed by the estimates of the costs of such project provided for herein, but the governing body may fix such other sum, including costs calculated on an annual basis for ongoing maintenance projects, within the limits prescribed, as it may deem necessary to cover the cost of such project.
3. Before ordering the engineer to make out an assessment roll or ratifying his roll already made, the governing body shall consider all applications for hardship determinations and the recommendations made by the social services agency and make a final decision on each application. The governing body shall direct the engineer to postpone the assessments on property for which a hardship determination has been finally approved. A property owner whose hardship determination is approved shall pay interest on the unpaid balance of previous and current assessments at the same rate and terms as are established for other assessments in the manner provided by the governing body. The assessment must remain postponed until the earlier of the following occurrences:
(a) The property is sold or transferred to a person other than one to whom a hardship determination has been granted;
(b) The term of the bonds expires;
(c) The property owner's application for renewal of the hardship determination is disapproved;
(d) The property owner fails to pay the interest on the unpaid balance of assessments in a timely manner; or
(e) The property owner pays all previous and current assessments.
4. A property owner may pay all previous and current assessments at any time before they become due without penalty.
5. The governing body shall not sell bonds on the basis of the assessments for which hardship determinations have been approved. A special fund for the payment of the costs of the project assessed against property for which hardship determinations have been made must be created. The fund must be reimbursed when the balance of unpaid assessments are paid, including all interest paid during the period of postponement. The surplus and deficiency fund established pursuant to NRS 271.428 may be used as the special fund.
6. If by mistake or otherwise any person is improperly designated in the assessment roll as the owner of any tract, or if the same is assessed without the name of the owner, or in the name of a person other than the owner, such assessment shall not for that reason be vitiated but shall, in all respects, be as valid upon and against such tract as though assessed in the name of the owner thereof , [;] and when the assessment roll has been confirmed, such assessment shall become a lien on such tract and be collected as provided by law.
Sec. 22. NRS 271.400 is hereby amended to read as follows:
271.400 1. The cost of [improvements in street] improvement and maintenance for road intersections may be segregated.
2. Such cost, except the share assessable to street or other railway companies, may be assessed upon all frontage of the street improved , [(] excluding an alley , [)] and on intersecting streets within a distance of one-half block in each direction from such intersections, in proportion to the frontage of each lot or tract on the street improved , [(] excluding an alley , [)] or on an intersecting street, or on both within such distance.
3. The cost of the improvement of an alley intersection may be assessed upon the assessable property in the same block extending to the nearest street intersection and half the length of the block along its sides. However where the sides of blocks are of unequal length, the governing body may determine the limit of assessment.
4. In the alternative, the cost of [improving street intersections (] improvement and maintenance for street intersections, including alley intersections , [)] may be treated as one of the costs of any project without separately segregating such intersection cost. In such case the total cost of any project shall be assessed as provided in subsections 1, 2 and 3 of NRS 271.365 upon the basis determined without any separate assessment for intersection costs.
Sec. 23. NRS 271.405 is hereby amended to read as follows:
271.405 1. All assessments made in pursuance of the assessment ordinance are due and payable without demand within 30 days after the effective date of the assessment ordinance.
2. All such assessments may at the election of the owner be paid in installments with interest as hereinafter provided, whenever the governing body so authorizes the payment of assessments [.] in installments.
3. Failure to pay the whole assessment within 30 days is conclusively considered an election on the part of all persons interested, whether under disability or otherwise, to pay in installments the amount of the assessment then unpaid.
4. All persons so electing to pay in installments are conclusively considered as consenting to such projects, and such an election is conclusively considered as a waiver of all rights to question the power or jurisdiction of the municipality to acquire or improve the projects, the quality of the work, the regularity or sufficiency of the proceedings or the validity or correctness of the assessment.
5. The owner of any tract assessed may at any time pay the whole unpaid principal with the interest accrued to the next interest payment date, together with penalties, if any. The governing body may require in the assessment ordinance the payment of a premium for any such prepayment, which must not exceed by more than 3 percent the Index of Twenty Bonds which is in effect at the time the election is made, as a percentage of the installment or installments of principal so prepaid.
6. Subject to the foregoing provisions, all installments, both of principal and interest, are payable at such times as may be determined in and by the assessment ordinance.
7. The clerk shall give notice by publication or by mail of the levy of any assessment, of the fact that it is payable, and of the last day for its payment as herein provided.
Sec. 24. NRS 271.720 is hereby amended to read as follows:
271.720 1. Any agreement made pursuant to NRS 271.710 must:
(a) Include a description of the property in the district;
(b) Be signed by the chairman of the governing body and the owners of all assessable property within the district;
(c) Be accompanied by an acknowledgment of each signature; and
(d) Be recorded in the office of the county recorder.
2. Upon recording pursuant to paragraph (d) of subsection 1, the agreement:
(a) Is binding on all subsequent owners of assessable property in the district;
(b) Is not extinguished by the sale of any property on account of nonpayment of general taxes or any other sale of the property; and
(c) Is prior and superior to all liens, claims, encumbrances and titles other than the liens of assessment and general taxes.
3. As a condition to executing an agreement pursuant to NRS 271.710, the governing body may require that the owners of assessable property make a deposit of cash, a surety bond, a letter of credit or such other security as is deemed appropriate by the governing body, in such an amount as will reimburse the municipality for all its expenses in connection with the district including, without limitation, the cost of:
(a) Designing and preparing plans , [and] specifications or schedules for [the] improvements [;] or maintenance;
(b) Inspecting any work performed and any improvements [installed;] or maintenance completed;
(c) Any engineering, legal, financial or other experts retained by the municipality to advise it with respect to the district;
(d) Any mailings or publications made in connection with the district; and
(e) Any administrative costs, including any carrying cost and an appropriate portion of the salary of any municipal employee or employees who perform services in connection with the district,
and any other costs the municipality may incur in connection with the district.
4. The deposit required pursuant to subsection 3 must be applied to the expenses listed in subsection 3 if bonds are not issued or if the proceeds of the bonds are not sufficient to pay those expenses.