LAS VEGAS SEWAGE DISTRICT ACT OF 1947

[Rev. 6/29/2024 7:36:21 PM--2023]

Chapter 164, Statutes of Nevada 1947

AN ACT providing for the creation and incorporation of the “Las Vegas Sewage District” as a body corporate and politic; defining the same; prescribing the rights, powers, and duties of said district; providing for its government, the alteration of its boundaries, and its dissolution; providing for the acquisition, construction, improvement, maintenance, and operation of a system of sewers and sewage disposal, the financing thereof, and the issuance and payment of bonds; prescribing the rights and remedies of bondholders; conferring the right of eminent domain upon said district; authorizing it to enter into contracts with and to accept grants from the federal government or any agency thereof, and to make and enforce such regulations as are necessary to carry out the purposes of this act; providing for the enforcement and collection of taxes and special assessments, and rates, rentals and other charges for the use of the sewage facilities of the district, and all other matters properly relating thereto.

[Approved: March 27, 1947]

(Leadlines for sections have been supplied by the Legislative Counsel of the State of Nevada)

The People of the State of Nevada, represented in Senate and Assembly, do enact as follows:

Section 1. Act Cited. This act may be cited as “The Las Vegas Sewage District Act of Nineteen Hundred and Forty-Seven.”

(Ch. 164, Stats. 1947 p. 534)

Sec. 2. Definitions. The following terms, whenever used or referred to in this act, shall have the following meanings, except in those instances where the context clearly indicates otherwise:

(a) The terms “District” “district,” “Sewage District” and “sewage district” shall mean a body politic and corporate created pursuant to this act.

(b) The terms “Board of Directors” and “board of directors,” and “board” used in connection therewith, shall mean the governing body of the district.

(c) The term “bonds” shall mean and include the notes, bonds, and other evidence of indebtedness or obligations which the district is authorized to issue pursuant to the provisions of this act.

(d) The term “existing district” shall mean any sewage district created and existing prior to the passage of this act.

(e) The term “construction” shall mean and include acquisition and construction, and the term “to construct” shall mean and include to acquire and to construct in such manner as may be deemed desirable.

(f) The terms “system of sewers and sewage disposal” and “sewage system” shall mean any and all structures, facilities, or undertakings which the district is authorized to construct, improve, maintain, or operate under the provisions of this act, including, but without limiting the generality of the foregoing, sewers, sewage disposal plants, sewage treatment plants and septic tanks, and any and all other materials or construction connected therewith and with the handling or disposal of sewage.

(g) The term “federal agency” shall mean and include the United States of America, the President of the United States of America, and any department of or corporation, agency, or instrumentality heretofore or hereafter created, designated, or established by the United States of America.

(h) The term “improvement” shall mean and include extension, enlargement, and improvement, and the term “to improve” shall mean and include to extend, to enlarge, and to improve in such manner as may be deemed desirable.

(i) The term “project” shall mean any and all structures, facilities, or undertakings which the district is authorized to construct, improve, maintain, or operate under the provisions of this act, including, but without limiting the generality of the foregoing, sewers, sewage disposal plants, sewage treatment plants and septic tanks, and any and all other materials or construction connected therewith and with the handling or disposal of sewage.

(Ch. 164, Stats. 1947 p. 534)

Sec. 3. Las Vegas Sewage District Created. The Las Vegas Sewage District, entitled and known as such, may be created in the manner hereinafter provided, and when so created shall be and constitute a municipal corporation, and may exercise the rights, powers, authority, and privileges granted by this act under such corporate name. The boundaries of said district may embrace the entire corporate limits of the City of Las Vegas, or any portion thereof, may extend beyond said corporate limits into and include the County of Clark, or any portion thereof, and any unincorporated city or town therein, and may include existing districts in said county and unincorporated cities and towns. Any other incorporated city and existing districts therein may be included in said District, providing the governing body of said city consents thereto by ordinance adopted after notice of intent to grant such consent shall have been given by said governing body by publication thereof for at least ten (10) days, preceding the final adoption of such ordinance, in some newspaper of general circulation in said city, or if there be no such newspaper, then by posting such notice of intention at the courthouse in the county wherein said city is located. The Board of Directors of said District, after its creation and incorporation as in this act provided, shall have the power and authority to enter into any contracts with the County of Clark, and any incorporated or unincorporated city and town therein, to extend the services of the district and the use of its facilities to such portions of said county, cities, and towns not embraced within said District.

(Ch. 164, Stats. 1947 p. 535)

Sec. 4. Notice of Intention to Create District. Whenever in the opinion of the Board of Commissioners of the City of Las Vegas, the public interest would be promoted by the creation of a sewage district, the said board shall issue a proclamation declaring its intention to create such a district, describing the territory to be included therein, and stating the date of the meeting of said board at which it will adopt an ordinance providing for the creation thereof. Such proclamation shall be published in full for at least ten (10) days, preceding the adoption of said ordinance, in a newspaper of general circulation published in the City of Las Vegas, and, if the territory to be embraced within the district shall extend beyond the corporate limits of the City of Las Vegas, said proclamation shall also be posted at the courthouse in the county where such territory shall extend.

The proclamation shall be in substantially the following form:

Pursuant to the authority vested in the Board of Commissioners of the City of Las Vegas by “The Las Vegas Sewage District Act of Nineteen Hundred and Forty-seven,” said Board does hereby proclaim its intention to create a sewage district to be entitled and known as “The Las Vegas Sewage District” and to function as a municipal corporation, and that it will adopt an ordinance at a meeting of said Board to be held on the ....... day of ..............., ................, at ....... ......m. of said day, in the city hall, City of Las Vegas, Clark County, Nevada, providing for the creation of said district, which shall embrace the following-described territory, to wit:

(Insert description of territory to be included in proposed district.)

Board of City Commissioners.

[SEAL] By........................................................................

Attest: Mayor.

..............................

City clerk.

At any time prior to the adoption of said ordinance, the Board may, in its discretion, abandon, and discontinue all such proceedings for the creation of said District upon the adoption of a resolution declaring its determination so to do.

(Ch. 164, Stats. 1947 p. 536)

Sec. 5. Creation and Incorporation of District. At a regular meeting, or special meeting called for that purpose either of which shall be on the date specified in the proclamation published, or published and posted, as provided in section 4 of this act, or at any recessed or adjourned meeting thereof, the Board of Commissioners of the City of Las Vegas may adopt an ordinance proposing the creation and maintenance of a sewage district, and setting forth:

(a) That the said district shall be entitled and known as “The Las Vegas Sewage District.”

(b) That such District is created under this act.

(d) That such District is being created by the City of Las Vegas.

(e) That a proclamation was issued pursuant to section 4 of this act, and published, or published and posted, as in said section provided. A copy of said proclamation shall be attached to said ordinance.

(f) The names, addresses, and terms of office of the first members of the Board of Directors of said District.

(g) A description of the territory to be included in the proposed district, which shall in every respect be the same as that set forth in the aforesaid proclamation. If any other incorporated city and existing districts therein are included in said territory, a certified copy of the consenting ordinance provided for in section 3 of this act, setting forth that a notice of intention to grant such consent has been published or posted as in said section provided, shall be attached to said ordinance.

Said ordinance shall be signed by the Mayor and attested by the City Clerk under the corporate seal of the City of Las Vegas, and a certified copy thereof in duplicate shall be filed with the Secretary of State. If the Secretary of State finds that all the requirements of this act have been fully performed, the Secretary of State shall forthwith endorse his or her approval on the certified copies of the ordinance, filing one in the Office of the Secretary of State and attaching the other to a certificate of incorporation which he or she shall issue.

Upon the issuance of such certificate of incorporation by the Secretary of State, the corporate existence of said district shall begin, and it shall be and constitute a municipal corporation entitled and known as “The Las Vegas Sewage District” as hereinbefore provided. Said certificate of incorporation shall be conclusive evidence of the fact that such district has been incorporated in compliance with the provisions of this act.

(Ch. 164, Stats. 1947 p. 537)

Sec. 6. Purposes and Powers of District. The Las Vegas Sewage District created and incorporated under the provisions of this act shall be a body corporate and politic, and shall be and exist for the purpose of furnishing said District and the inhabitants thereof with an adequate system of sewers and means of sewage treatment or disposal by acquiring, holding, constructing, improving, maintaining and operating, owning, leasing, either in the capacity of lessor or lessee, sewer systems, sewage treatment works, waste mains, sewers, tunnels, drains, and every form of sewer and sewage treatment or disposal facility, either within or without the boundaries of the district, to be devoted wholly or partially for public uses or for revenue-producing purposes. Said District is hereby granted and shall have and may exercise all powers necessary and convenient for the carrying out of the aforesaid purposes, including, but without limiting the generality of the foregoing, the following rights and powers:

(a) To have existence for a term of fifty (50) years as a corporation.

(b) To sue and be sued, implead and be impleaded, complain and defend in all courts.

(d) To acquire, purchase, hold, lease as lessee, and use any franchise, property, real, personal or mixed, tangible or intangible, or any interest therein, within or without the boundaries of the District, necessary or desirable for carrying out the purposes of the District, and to sell, lease as lessor, transfer, and dispose of any property or interest therein, at any time acquired by it.

(e) To acquire by purchase, lease, or otherwise, and to construct, improve, maintain, repair, and operate projects within or without the boundaries of the District.

(f) To make bylaws for the management and regulation of its affairs.

(g) To appoint officers, agents, employees, and servants; to prescribe their duties and to fix their compensation.

(h) To fix, alter, charge, and collect rates, rentals, and other charges for the use of the facilities of, or for the services rendered by the District or projects thereof, at reasonable rates, to be determined by it, for the purpose of providing for the payment of the expenses of the District, the construction, improvement, repair, maintenance, and operation of its facilities and properties, the payment of the principal of and interest on its obligations, and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any such obligations, and to make such rates, rentals, and other charges a lien upon the property using such facilities, and provide for a method of enforcing collection of such rates, rentals, and other charges.

(i) To borrow money, make and issue negotiable notes, bonds, and other evidences of indebtedness or obligations of the District, said bonds or other evidence of indebtedness to have a maturity date not longer than twenty-five (25) years from the date of issue, and to secure the payment of such bonds, or any part thereof, by pledge or deed of trust of all or any of its revenues and receipts, and to make such agreements with the purchasers or holders of such bonds or with others in connection with any such bonds, whether issued or to be issued, as the District shall deem advisable, and in general to provide for the security for said bonds and the rights of the holders thereof.

(j) Without limitation of the foregoing, to borrow money and accept grants from, and to enter into contracts, leases or other transactions with any federal agency.

(k) To pledge, hypothecate, or otherwise encumber all or any of the revenues or receipts of the District as security for all or any of its obligations.

(l) To lay sewer and pipe along, under, or upon public highways, roads, streets, and alleys, and to build and erect sewage treatment or disposal plants, either within or without the boundaries of such District, and to compel all property owners within the area served by said sewage system to connect their private drains and sewer systems with such system or sewers of the District.

(m) To acquire by eminent domain proceedings, either the fee or such right, title, interest, or easement in such lands and premises, both within and without the boundaries of the district, as the district may deem necessary for any of the purposes mentioned in this act. The right of eminent domain shall be exercised by the district in the manner provided by law for the exercise of such right by the City of Las Vegas, except insofar as such law may be inconsistent with the provisions of this act.

(n) To make contracts of every name and nature, and to execute all instruments necessary or convenient for the carrying on of its business.

(o) To accept cash gifts, and to receive by gift, devise, or otherwise, such real and personal property and rights-of-way, either within or without the limits of the district, as shall be necessary or proper to carry out the provisions of this act.

(p) To assess, levy, and collect taxes and special assessments for the purpose of providing for the payment of the expenses of the district, the construction, improvement, repair, maintenance, and operation of its facilities and properties, the payment of the principal of and interest on its obligations, and to fulfill the terms and provisions of any agreements made with the purchasers or holders of any such obligations, and to make such taxes and special assessments a lien upon the property using such facilities, and provide for a method of enforcing collection of such taxes and special assessments.

(q) To make and enforce all necessary and proper regulations for the removal of sewage, and to make all other sanitary regulations in connection therewith not in conflict with the constitution or laws of this state, or the laws of the City of Las Vegas or any other incorporated city embraced within the district; any violation of any such regulations is hereby designated to be a misdemeanor punishable by fine or imprisonment, or both; provided, however, that no such fine shall exceed the sum of one hundred dollars ($100), and no such imprisonment shall exceed thirty (30) days.

(r) To do any and all acts and things necessary or convenient to carry out the purposes of the District and the powers granted to it by this act or any other acts; provided, however, that the district shall have no power at any time or in any manner to pledge the credits or taxing power of the State of Nevada, any political subdivisions thereof, or the City of Las Vegas, or any other incorporated city embraced within the district, nor shall any of its obligations be deemed to be obligations of the State of Nevada, or any of its political subdivisions, or of the City of Las Vegas or any other incorporated city embraced within the District, nor shall the State of Nevada, any political subdivision thereof, or the City of Las Vegas, or any other incorporated city embraced within the District, be liable for the payment of principal of or interest on such obligations.

(Ch. 164, Stats. 1947 p. 538)

Sec. 7. Adoption of Scheme and Plan for System of Sewers and Sewage Disposal. It shall be the duty of the Board of Directors of the District, created and incorporated under the provisions of this act, to make a thorough and complete examination and investigation of such District, and then to select a scheme or plan for a system of sewers and sewage disposal which will be suitable and adequate for such District for the present and future needs thereof. In connection with the foregoing, said Board may employ such engineering, legal, and other services as in their discretion is necessary in carrying out the object and purposes of this act; when such comprehensive scheme and plan has been finally determined upon by such Board of Directors, it shall be by them adopted by resolution, and submitted to the Director of Public Works of the City of Las Vegas and to the Board of Health of the City of Las Vegas, and said comprehensive scheme or plan must be approved in writing by such Director of Public Works and the Board of Health before being finally adopted by ordinance of said District, and then shall be finally adopted only after notice of intention to adopt such ordinance shall have been given by the Board of Directors of said District by publication thereof for at least ten (10) days, preceding the adoption of such ordinance, in some newspaper of general circulation in said District, or if there be no such newspaper, then by posting such notice of intention at the courthouse in the county wherein said District is located.

(Ch. 164, Stats. 1947 p. 540)

Sec. 8. Restrictions on Expenditure for Carrying on Scheme and Plan. No expenditure for the carrying on of any part of such comprehensive scheme or plan shall be made by the Board of Directors other than the necessary salaries of engineers, clerical and office expenses of such district, and the cost of engineering, surveying, preparation and collection of data necessary for the making and adoption of the general scheme of improvements in such District, unless and until such general scheme of improvements has been finally adopted by ordinance of said Board of Directors as provided in section 7 of this act.

(Ch. 164, Stats. 1947 p. 541)

Sec. 9. Ordinance to Provide for Financing. After such comprehensive scheme or plan has been finally adopted by ordinance of such Board of Directors as provided in section 7 hereof, the said Board is hereby authorized and instructed to pass an ordinance which shall provide for the financing of such District, and said ordinance shall not be adopted by said Board of Directors unless and until a notice of intention to adopt such ordinance has been given for the time and in the manner provided by section 7 of this act.

(Ch. 164, Stats. 1947 p. 541)

Sec. 10. Method of Financing. The said Board of Directors shall adopt an ordinance relative to the financing of such District, which ordinance shall in itself use the method of financing best suited to the financial condition and welfare of the territory embraced within said District and of the said District. In this connection, such ordinance may use any of the following methods of financing, or any combination thereof:

(a) Current revenue, reserves, state funds or federal funds which may be available and which may by law be used for furthering the purposes of this act.

(b) May issue general obligation bonds which shall be secured by the taxing power of the District.

(c) May issue special assessment bonds, which bonds shall be secured by payment of special assessments on property owners in said District, and in this connection the said Board of Directors shall determine by ordinance the method of making such assessments, and may use the front-foot rule, benefit rule, or any other lawful method of determining such assessments; provided, however, that said special assessments shall in no event exceed twenty percent (20%) of the assessed valuation of any property for any fiscal year. Said ordinance may also make the special assessment a lien against the property assessed, and provide for the method of enforcing collection of such special assessments.

(d) May issue revenue bonds which in the discretion of the Board of Directors shall be secured by rental or service charges imposed upon users of the system of sewers and sewage disposal created under the provisions of this act, and in this connection the Board of Directors may, by ordinance, make the rental or service charge a lien upon the property which uses such system of sewers and sewage disposal, and may provide for a method of enforcement of collection of such rentals or service charges. Said Board of Directors may use any lawful method to determine what rental or service charge shall be imposed, including but not exclusive, of the following:

1. A flat-rate charge.

2. A fixture count.

3. Number of connections.

4. Value of property served.

5. Character of property served.

(e) May borrow funds from the State or Federal Government, when such funds are available, for carrying out the purposes of this act.

(Ch. 164, Stats. 1947 p. 541)

Sec. 11. Terms and Provisions of Bonds.

1. The bonds of the District, hereinabove referred to and authorized to be issued by ordinance, as provided in section 10 of this act, shall be of such series, bear such date or dates, mature at such time or times, not exceeding twenty-five (25) years from their respective dates, bear interest at such rate or rates, which must not exceed by more than 3 percent:

(a) For general obligations, the Index of Twenty Bonds; and

(b) For other obligations, the Index of Revenue Bonds,

Ê which was most recently published before the bids are received or a negotiated offer is accepted, payable at such time, be in such denominations, be in such form, either coupon or fully registered without coupons, carry such registration exchangeability and interchangeability privileges, be payable in such medium of payment and at such place or places, be subject to such terms of redemption and callability, and be entitled to such priorities in the revenues or receipts of such district as the ordinance may provide. The bonds shall be signed by such officers as the district shall determine, and coupon bonds shall have attached thereto interest coupons bearing the facsimile signature of the treasurer of the District, all as may be prescribed in such ordinance. Any such bonds may be issued and delivered, notwithstanding that one or more of the officers signing such bonds, or the treasurer whose facsimile signature shall be upon the coupon or any thereof, shall have ceased to be such officer or officers at the time when such bonds shall actually be delivered.

2. Said bonds may be sold at public or private sale, for such price or prices as the Board of Directors shall determine. The interest cost to maturity of the money received for any issue of said bonds shall not exceed the limit provided in subsection 1. Pending the preparation of the definitive bonds, interim receipts may be issued to the purchaser or purchasers of such bonds, and may contain such terms and conditions as the Board of Directors may determine.

3. The District may enter into any deeds of trust, indentures, or other agreements with any bank or trust company or other person or persons in the United States having power to enter into the same, including any federal agency, as security for such bonds, and may assign and pledge all or any of the revenues or receipts of the District thereunder. Such deed of trust, indenture, or other agreement may contain such provisions as may be customary in such instruments or as the Board of Directors may authorize, including (but without limitation) provisions as to (1) the construction, improvement, operation, maintenance, and repair of any project and the duties of the District with reference thereto, (2) the application of funds and the safeguarding of funds on hand or on deposit, (3) the rights and remedies of said trustee and the holders of the bonds (which may include restrictions upon the individual right of action of such bondholders), and (4) the terms and provisions of the bonds or the ordinance authorizing the issuance of the same.

4. Said bonds shall have all the qualities of negotiable instruments under the law merchant and the negotiable instruments law of the State of Nevada.

(Ch. 164, Stats. 1947 p. 542; A—Ch. 637, Stats. 1981 p. 1427; Ch. 252, Stats. 1983 p. 589)

Sec. 12. Bond Retirement Fund and Operating Fund. The Board of Directors shall have the power to create, and shall create, a special fund, or funds, for the sole purpose of paying the interest and principal of such bonds, and shall obligate and bind the District to set aside and pay a fixed proportion of the gross revenues of the Sewage District into such fund or funds, and in this connection the Board of Directors shall deposit said special fund with the Treasurer of the City of Las Vegas. Said Treasurer is hereby appointed ex officio Treasurer of such District.

The Board of Directors shall have the power to create, and shall create, a general fund for the purpose of paying operation and maintenance costs of such District, and such general fund shall be deposited with the ex officio Treasurer of the District.

(Ch. 164, Stats. 1947 p. 543)

Sec. 13. Remedies of Bondholders. The rights and the remedies, herein conferred upon or granted to the bondholders, shall be in addition to and not in limitation of any rights and remedies lawfully granted to such bondholders by the ordinance providing for the issuance of bonds, or by any deed of trust, indenture, or other agreement under which the same may be issued. In the event that the district shall default in the payment of principal of or interest on any of the bonds after the said principal or interest shall become due, whether at maturity or upon call for redemption, and such default shall continue for a period of ninety (90) days, or in the event that the District shall fail or refuse to comply with the provisions of this act, or shall default in any agreement made with the holders of the bonds, the holders of twenty-five percent (25%) in aggregate principal amount of the bonds then outstanding, by instrument or instruments filed in the Office of the County Recorder of the county wherein the District is located, and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the bondholders for the purposes herein provided. Such trustee and any trustee under any deed of trust, indenture, or other agreement may, and, upon written request of the holders of twenty-five (25%) (or such other percentage as may be specified in any deed of trust, indenture or other agreement aforesaid) in principal amount of the bonds then outstanding, shall, in the event of such default, in his, her or its own name:

(a) By mandamus or other suit, action or proceeding, at law or in equity, enforce all rights of the bondholders, including the rights to require the district to collect rates, rentals, and other charges, adequate to carry out any agreement as to or pledge of the revenues or receipts of the district, and to require the district to carry out any other agreements with or for the benefit of the bondholders, and to perform its duties under this act;

(b) Bring suit upon the bonds;

(c) By action or suit in equity, require the district to account as if it were the trustee of an express trust for the bondholders;

(d) By action or suit in equity, enjoin any acts or things which may be unlawful or in violation of the rights of the bondholders;

(e) By notice in writing to the district, declare all bonds due and payable, and if all defaults shall be made good, then with the consent of the holders of twenty-five (25%) (or such other percentage as may be specified in any deed of trust, indenture, or other agreement aforesaid) of the principal amount of the bonds then outstanding, to annul such declaration and its consequences.

The district court of the county wherein the District is located shall have jurisdiction of any suit, action, or proceedings by the trustee on behalf of the bondholders. Any trustee, whether appointed as aforesaid or acting under a deed of trust, indenture or other agreement, and whether or not all bonds have been declared due and payable, shall be entitled as of right to the appointment of a receiver, who may enter and take possession of the facilities of the District, or any part or parts thereof, the revenues or receipts which are or may be applicable to the payment of the bonds so in default, and operate and maintain the same, and collect and receive all rentals and other revenues thereafter arising therefrom in the same manner as the district or the Board of Directors might do, and shall deposit all such moneys in a separate account, and apply the same in such manner as the court shall direct. In any suit, action, or proceeding by the trustee, the fees, counsel fees, and expenses of the trustee and of the receiver, if any, and all costs and disbursements allowed by the court, shall be a first charge on any revenues and receipts derived from the facilities of the district which are or may be applicable to the payment of the bonds so in default. Said trustee shall, in addition to the foregoing, have and possess all of the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of the bondholders in the enforcement and protection of their rights; provided, however, that nothing in this section or any other section of this act shall authorize any receiver appointed pursuant to this act, for the purpose of operating and maintaining any facilities of the district, to sell, assign, mortgage, or otherwise dispose of, any of the assets of whatever kind and character belonging to the District. It is the intention of this act to limit the powers of such receiver to the operation and maintenance of the facilities of the District as the court shall direct, and no holder of bonds of the district, nor any trustee, shall ever have the right in any suit, action, or proceedings at law, or in equity, to compel a receiver, nor shall any receiver ever be authorized, or any court be empowered, to direct the receiver to sell, assign, mortgage, or otherwise dispose of any assets of whatever kind or character belonging to the District.

(Ch. 164, Stats. 1947 p. 544)

Sec. 14. Governing Body of District. The powers of the District shall be exercised by a governing body called the “Board of Directors” which shall be composed as follows:

If the District shall include no other incorporated city than the City of Las Vegas, the Board of Directors shall consist of six members, each of whom shall be a citizen of such City. The governing body of such City shall appoint the members of the Board of Directors, two of whom shall serve for a year, two for two years, and two for three years, from the January first next succeeding the date of incorporation. Thereafter the said governing body of said City shall, at a meeting held not later than one month prior to January first in each year in which a vacancy occurs, appoint as members of the Board of Directors, two citizens of said city for a term of three years, to succeed the members whose terms expire on the January first next succeeding.

If the district shall include other incorporated cities, membership on the Board of Directors shall be apportioned in such manner as the ordinance creating and incorporating the District shall provide. No member shall be appointed for a term longer than three years.

Members shall hold office until their successors have been appointed and may succeed themselves, and shall receive such salaries as may be determined by the governing body or bodies of the incorporated city or cities in said District, but none of such salaries shall be increased or diminished during the term for which the member receiving the same shall have been appointed. A member may be removed for cause by the governing body of the City appointing such member, after having been provided with a copy of the charges against the member for at least ten (10) days, and after a hearing before such governing body, which hearing may be private. If a vacancy shall occur by reason of the death, disqualification, resignation, or removal of a member, the governing body of the City which appointed such member shall appoint a successor to fill the unexpired term.

A majority of the members shall constitute a quorum of the Board of Directors for the purpose of organizing the District and conducting the business thereof and for all other purposes, and all action may be taken by vote of a majority of the members present, unless in any case the bylaws shall require a larger number. The Board of directors shall have full authority to manage the properties and business of the District and to prescribe, amend, and repeal bylaws, rules, and regulations governing the manner in which the business of the District may be conducted, and the powers granted to it may be exercised and embodied. The Board of Directors shall fix and determine the number of officers, agents, and employees of the District and their respective compensation and duties, and may delegate to one or more of their number, or to one or more of said officers, agents, or employees, such powers and duties as it may deem proper.

(Ch. 164, Stats. 1947 p. 545)

Sec. 15. Moneys of the District. All moneys of the District, from whatever source derived, shall be paid to the Treasurer of the District. Said moneys shall be deposited in the first instance by the treasurer in one or more banks or trust companies, in one or more special accounts, and each of such special accounts, to the extent the same is not insured, shall be continuously secured by a pledge of direct obligations of the United States of America, of the State of Nevada, or of the City of Las Vegas or any other incorporated city included in the District, having an aggregate market value, exclusive of accrued interest, at all times at least equal to the balance on deposit in such account. Such securities shall either be deposited with the Treasurer or be held by a trustee or agent satisfactory to the District. All banks and trust companies are authorized to give such security for such deposits. The moneys in said accounts shall be paid out on the warrant or other order of the Chair of the Board of Directors, or of such other person or persons as the Board of Directors may authorize to execute such warrants or orders. The controller, auditors, or accountant designated by the City of Las Vegas are hereby authorized and empowered from time to time to examine, at the expense of the District, the accounts and books of the District, including its receipts, disbursements, contracts, leases, sinking funds, investments, and any other matters relating to its finances, operation, and affairs.

(Ch. 164, Stats. 1947 p. 547)

Sec. 16. Transfer of Existing Facilities to District. The State, the County, or any city, or town in the county, may, and they are hereby authorized to lease, lend, grant, or convey to the district, upon such terms and conditions as are mutually satisfactory to the District and the corporate authorities of the State, the County, or any such city, or town, any existing tunnels, streets, alleys, highways, parkways, sewers, sewer systems, sewage treatment works, or any part or parts thereof, or any interest in real or personal property, which may be used by the District in the construction, improvement, maintenance, or operation of any project. The State, the County, or any city, or town are also authorized to transfer, assign, and set over to the District any contracts which may have been awarded by said state, county, city, or town for the construction of projects not begun, or, if begun, not completed.

(Ch. 164, Stats. 1947 p. 547)

Sec. 17. Competition in Award of Contracts. All materials purchased and work ordered, the estimated cost of which is in excess of one thousand dollars ($1,000) shall be let by contract. Before awarding any such contract the Board of Directors shall cause to be published in some newspaper of general circulation throughout the District at least once, ten (10) days before the letting of such contract, a notice inviting sealed proposals for such materials and work, plans and specifications of which must at the time of publication of such notice be on file in the Office of the Board of Directors subject to public inspection. Such notice shall state generally the work to be done, and shall call for proposals for doing the same to be sealed and filed with the Board of Directors on or before the day and hour named therein. Each bid shall be accompanied by a certified check payable to the order of the District Treasurer for a sum not less than five percent (5%) of the amount of the bid, and no bid shall be considered unless accompanied by such check. At the time and place named, such bids shall be publicly opened and read, and the Board of Directors shall proceed to canvass the bids and may let such contract to the lowest responsible bidder upon said plans and specifications; provided, however, that no contract shall be let in excess of the cost of said materials or work, or if in the opinion of the Board of Directors all bids are unsatisfactory they may reject all of them and readvertise, and in such case all checks shall be returned to the bidders. If such contract be let, then and in such case all checks shall be returned to the bidders, except that of the successful bidder, which shall be retained until a contract shall be entered into for the purchase of such materials or doing such work, and a bond to perform such work furnished with sureties satisfactory to the Board of Directors in the full amount of the contract price in accordance with the bid.

If said bidder fails to enter into said contract in accordance with said bid and furnish such bond within ten (10) days from the date at which the bidder is notified that he or she is the successful bidder, the said check and the amount thereof shall be forfeited to the District.

Nothing in this section shall be construed to limit the power of the District to construct, repair, or improve any project, or portion thereof, or any addition, betterment, or extension thereto, directly by the officers, agents, and employees of the District or otherwise than by contract, and the provisions of this section shall not apply to any case in which the District has taken over by transfer or assignment any contract authorized to be assigned to it under the provisions of section 16 of this act, nor to any contract in connection with the construction of any project which the District may have had transferred to it by any person or private corporation.

(Ch. 164, Stats. 1947 p. 547)

Sec. 18. Use of Projects. The use of the facilities of the District and the operation of its business shall be subject to the rules and regulations from time to time adopted by the Board of Directors; provided, however, that said Board shall not be authorized to do anything which will impair the security of the holders of the obligations of the District or violate any agreements with them or for their benefit.

(Ch. 164, Stats. 1947 p. 548)

Sec. 19. Limitation of Powers. The State of Nevada does hereby pledge to and agree with any person, firm, or corporation, or federal agency subscribing to or acquiring the bonds to be issued by the District for the construction, extension, improvement, or enlargement of any project or part thereof, that the State will not limit or alter the rights hereby vested in the District until all bonds at any time issued, together with the interest thereon, are fully met and discharged. The State of Nevada does further pledge to and agree with the United States and any other federal agency that in the event that any federal agency shall construct or contribute any funds for the construction, extension, improvement, or enlargement of any project, or any portion thereof, the State will not alter or limit the rights and powers of the District in any manner which would be inconsistent with the continued maintenance and operation of the project or the improvement thereof, or which would be inconsistent with the due performance of any agreements between the District and any such federal agency, and the District shall continue to have and may exercise all powers herein granted, so long as the same shall be necessary or desirable for the carrying out of the purposes of this act and the purposes of the United States in the construction or improvement or enlargement of the project or such portion thereof.

(Ch. 164, Stats. 1947 p. 549)

Sec. 20. Alteration of Boundaries and Dissolution. At any time after its creation and incorporation, the District may be dissolved or the boundaries thereof may be altered by ordinance of the City of Las Vegas with the consent by ordinance of any other incorporated city embraced within said District; provided, that the boundaries of said District shall not be enlarged so as to include the territory of any incorporated city, not theretofore embraced therein, without the consent by ordinance of such incorporated city. All such ordinances shall be adopted only after notice of intention to adopt the same shall have been given by the governing bodies of said cities by publication thereof for at least ten (10) days, preceding the final adoption of said ordinances, in some newspaper of general circulation in said cities, or if there be no such newspaper, then by posting such notice of intention at the courthouse in the county wherein said cities are located, and if there be territory outside the corporate limits of said cities affected by such dissolution or alteration, then such notice shall be published as aforesaid, if there be such newspaper, and posted at the courthouse in the county wherein said territory is located.

Certified copies of said ordinances, in duplicate, duly signed and attested by its proper officers under the corporate seal of said cities shall be filed with the Secretary of State. If the Secretary of State finds that all the requirements of this section have been fully performed, the Secretary of State shall forthwith endorse his or her approval on the certified copies of the ordinances, filing one copy of each in the Office of the Secretary of State and returning the others to the respective governing bodies of said cities, and note the dissolution of the district or the alteration of its boundaries, as the case may be, on the record of incorporation in his or her office.

Upon such endorsement of approval by the Secretary of State, the dissolution of said District or the alteration of its boundaries, as the case may be, shall become effective, and, in the case of dissolution, the District shall thereupon cease to exist and the entire project and all property, both real and personal, tangible and intangible, and wherever situate, of the district, with the right to maintain and operate the same in the manner and with the rights and powers provided herein for the district, shall pass to and vest in the City of Las Vegas and any other incorporated city within said District in such proportion of interest as shall have been agreed upon by them prior to the adoption of said ordinances, and the proper officers of said District shall execute all documents, conveyances, and assignments to further effectuate such transfer where deemed necessary. Upon such dissolution, the rights and remedies, provided in this act, of bondholders and other obligees of the District, and all the limitations and restrictions placed thereon by said act, shall remain the same and unimpaired by such dissolution until such bonds and obligations have been fully paid. Such bonds and obligations shall at no time be deemed to be secured by the credits or taxing power of the State of Nevada, any of its political subdivisions, or the City of Las Vegas or any other incorporated city formerly embraced within the District, nor shall they be deemed to be obligations of the State of Nevada, any of its political subdivisions, or the City of Las Vegas or any other incorporated city formerly embraced within the District, nor shall the State of Nevada, any of its political subdivisions, or the City of Las Vegas or any other incorporated city formerly embraced within the district be liable for the payment thereof.

(Ch. 164, Stats. 1947 p. 549)

Sec. 21. Exemption from Taxation; Exceptions.

1. Except as otherwise provided in subsection 2, the effectuation of the authorized purposes of the District, created under this act, shall and will be in all respects for the benefit of the people of the State of Nevada for the increase of their commerce and prosperity and for the improvement of their health and living conditions, and since such District will be performing essential governmental functions in effectuating such purposes, such District shall not be required to pay any taxes or assessments upon any property acquired or used by it for such purposes, and the bonds issued by such District, their transfer, and the income therefrom (including any profit made on the sale thereof), shall at all times be free from taxation within the State of Nevada.

2. The provisions of subsection 1 that exempt bonds, their transfer and the income therefrom from taxation by the State and any subdivision thereof do not apply to the tax on estates imposed pursuant to the provisions of chapter 375A of NRS or the tax on generation-skipping transfers imposed pursuant to the provisions of chapter 375B of NRS.

(Ch. 164, Stats. 1947 p. 550; A—Ch. 544, Stats. 1991 p. 1714)

Sec. 22. Constitutional Construction. The provisions of this act shall be severable, and if any of the provisions thereof shall be held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of any of the remaining provisions of this act. It is hereby declared as the legislative intent that this act would have been adopted had such invalid or unconstitutional provision not been included therein.

(Ch. 164, Stats. 1947 p. 551)

Sec. 23. Repeal. All acts and parts of acts in conflict with the provisions of this act are hereby repealed.

(Ch. 164, Stats. 1947 p. 551)

Sec. 24. In effect. This act shall become effective immediately upon its passage and approval.

(Ch. 164, Stats. 1947 p. 551)