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H0292.....................................................by WAYS AND MEANS LOCAL IMPROVEMENT DISTRICTS - Amends and adds to existing law to revise certain procedures and requirements relating to improvements under a local improvement district. 02/22 House intro - 1st rdg - to printing 02/23 Rpt prt - to Loc Gov 03/03 Rpt out - rec d/p - to 2nd rdg 03/04 2nd rdg - to 3rd rdg 03/08 3rd rdg - PASSED - 58-4-8 AYES -- Alltus, Barraclough(Barraclough), Barrett, Bell, Boe, Bruneel, Callister, Campbell, Chase, Clark, Crow, Cuddy, Deal, Denney, Ellsworth, Field(13), Gagner, Geddes, Gould, Hadley, Hammond, Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd, Kellogg, Kempton, Kendell, Kunz, Lake, Limbaugh, Linford, Loertscher, Mader, Marley, Meyer, Montgomery, Mortensen, Moyle, Pischner, Pomeroy, Reynolds, Ridinger, Ringo, Robison, Smith, Stevenson, Stone, Taylor, Tilman, Trail, Watson, Wheeler, Williams, Zimmermann NAYS -- Sali, Schaefer, Smylie, Stoicheff Absent and excused -- Bieter, Black, Field(20), McKague, Sellman, Tippets, Wood, Mr Speaker Floor Sponsor - Gagner Title apvd - to Senate 03/09 Senate intro - 1st rdg - to Transp 03/17 Rpt out - rec d/p - to 2nd rdg 03/18 2nd rdg - to 3rd rdg Rules susp - PASSED - 33-1-1 AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron, Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes, Hawkins, Ingram, Ipsen, Keough, King, Lee, McLaughlin, Noh, Richardson, Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne, Twiggs, Wheeler NAYS--Whitworth Absent and excused--Parry Floor Sponsor - Sandy Title apvd - to House 03/19 To enrol - rpt enrol - Sp signed - Pres signed 03/23 To Governor 03/24 Governor signed Session Law Chapter 291 Effective: 07/01/99
H0292|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 292 BY WAYS AND MEANS COMMITTEE 1 AN ACT 2 RELATING TO LOCAL IMPROVEMENT DISTRICTS; AMENDING SECTION 40-1310, IDAHO CODE, 3 TO PROVIDE THAT COMMISSIONERS OF HIGHWAY DISTRICTS MAY ACQUIRE OR PURCHASE 4 HIGHWAYS FOR THEIR HIGHWAY SYSTEMS; AMENDING SECTION 50-1703, IDAHO CODE, 5 TO CLARIFY THAT THE GOVERNING BODY OF ANY MUNICIPALITY SHALL HAVE CON- 6 STRUCTION AUTHORITY OVER ANY LOCAL, COLLECTOR, ARTERIAL OR OTHER STREET 7 AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 50-1705, IDAHO CODE, 8 TO PROVIDE FOR MODIFYING A LOCAL IMPROVEMENT DISTRICT; AMENDING SECTION 9 50-1706, IDAHO CODE, TO PROVIDE THAT A PETITION MAY BE INITIATED BY TWO- 10 THIRDS OF THE OWNERS OF PROPERTY SUBJECT TO ASSESSMENT AND TO MAKE A TECH- 11 NICAL CORRECTION; AMENDING CHAPTER 17, TITLE 50, IDAHO CODE, BY THE ADDI- 12 TION OF A NEW SECTION 50-1706A, IDAHO CODE, TO PROVIDE AUTHORITY TO IMPOSE 13 A FEE TO RETAIN OUTSIDE ADVISORS UPON APPROVAL OF THE PETITIONERS FOR A 14 LOCAL IMPROVEMENT DISTRICT; AMENDING SECTION 50-1707, IDAHO CODE, TO 15 REVISE THE CONTENT OF A STATEMENT REQUIRED IN A RESOLUTION OF INTENT TO 16 CREATE A LOCAL IMPROVEMENT DISTRICT REGARDING COSTS AND EXPENSES OF THE 17 IMPROVEMENTS; AMENDING SECTION 50-1709, IDAHO CODE, TO CLARIFY THAT TWO- 18 THIRDS OF THE OWNERS OF LOTS AND LANDS SUBJECT TO ASSESSMENT ARE REQUIRED 19 FOR FILING A PROTEST AND TO MAKE TECHNICAL CORRECTIONS; AMENDING SECTION 20 50-1710, IDAHO CODE, TO PROVIDE THAT THE APPRAISAL METHODOLOGY MAY INCLUDE 21 IMPROVEMENTS TO BE BUILT, TO PROVIDE THAT THE COUNCIL MAY PURCHASE, 22 ACQUIRE OR CONSTRUCT IMPROVEMENTS AND TO MAKE A TECHNICAL CORRECTION; 23 AMENDING CHAPTER 17, TITLE 50, IDAHO CODE, BY THE ADDITION OF A NEW SEC- 24 TION 50-1772, IDAHO CODE, TO PROVIDE COMMERCIALLY REASONABLE CREDIT ASSUR- 25 ANCES; AND AMENDING SECTION 67-8209, IDAHO CODE, TO PROVIDE THAT DEVELOP- 26 MENT IMPACT FEE CREDIT SHALL BE GIVEN FOR IMPROVEMENTS BUILT AND PAID FOR 27 PURSUANT TO A LOCAL IMPROVEMENT DISTRICT. 28 Be It Enacted by the Legislature of the State of Idaho: 29 SECTION 1. That Section 40-1310, Idaho Code, be, and the same is hereby 30 amended to read as follows: 31 40-1310. POWERS AND DUTIES OF HIGHWAY DISTRICT COMMISSIONERS. (1) The 32 commissioners of a highway district have, except as provided in section 33 40-1323, Idaho Code, exclusive general supervision and jurisdiction over all 34 highways within their highway system, with full power to construct, maintain, 35 repair , acquire, purchase and improve all highways within their 36 highway system, whether directly or by their own agents and employees or by 37 contract. Except as otherwise provided in this chapter in respect to the high- 38 ways within their highway system, a highway district shall have all of the 39 powers and duties that would by law be vested in the commissioners of the 40 county and in the district directors of highways if the highway district had 41 not been organized. Where any highway within the limits of the highway dis- 42 trict has been designated as a state highway, then the board shall have exclu- 43 sive supervision, jurisdiction and control over the designation, location, 2 1 maintenance, repair and reconstruction of it. The highway district shall have 2 power to manage and conduct the business and affairs of the district; estab- 3 lish and post speed and other regulatory signs; make and execute all necessary 4 contracts; have an office and employ and appoint agents, attorneys, officers 5 and employees as may be required, and prescribe their duties and fix their 6 compensation. Highway district commissioners and their agents and employees 7 have the right to enter upon any lands to make a survey, and may locate the 8 necessary works on the line of any highways on any land which may be deemed 9 best for the location. 10 (2) The highway district shall also have the right to acquire either by 11 purchase, or other legal means, all lands and other property necessary for the 12 construction, use, maintenance, repair and improvement of highways in their 13 system. The highway district may change the width or location, or straighten 14 lines of any highway in their system, and if in the constructing, laying out, 15 widening, changing, or straightening of any highways, it shall become neces- 16 sary to take private property, the district director of highways, with the 17 consent and on order of the highway district commissioners, shall cause a sur- 18 vey of the proposed highway to be made, together with an accurate description 19 of the lands required. He shall endeavor to agree with each owner of property, 20 resident of the county in which the district is situated, for the purchase of 21 a right-of-way over the lands included within the description. If the director 22 is able to agree with the owner of the lands, the highway district commission- 23 ers may purchase the land and pay for it out of the funds of the highway dis- 24 trict, and the lands purchased shall then be conveyed to the highway district 25 for the use and purpose of highways. 26 (3) Whenever the director of highways shall be unable to agree with any 27 person for the purchase of land, or that person shall be unknown or a nonresi- 28 dent of the county in which the highway district is situated, or a minor, or 29 an insane or incompetent person, the director shall have the right, subject to 30 the order of the highway district commissioners, to begin action in the name 31 of the highway district in the district court of the county in which the dis- 32 trict is situated, to condemn the land necessary for the right-of-way for the 33 highway, under the provisions of chapter 7, title 7, Idaho Code. An order of 34 the highway district commissioners entered upon its minutes that the land 35 sought to be condemned is necessary for a public highway and public use shall 36 be prima facie evidence of the fact. 37 (4) The highway district has the power to contract for and pay out any 38 special rewards and bounties as may appear expedient or useful in securing 39 proper highway construction and maintenance, and to accept, on behalf of the 40 district, aid or contributions in the construction or maintenance of any high- 41 way; to construct or repair, with the consent of the corporate authorities of 42 any city within the district, any highway within a city, upon the division of 43 the cost as may be agreed upon; or to join with the state or any body politic 44 or political subdivision, or with any person in the construction or repair of 45 any highway and to contract for an equitable division of the cost; and all 46 counties, cities, highway districts and other bodies politic and political 47 subdivisions are authorized to contract with any highway district acting 48 through its highway district commissioners in exercise of the powers granted. 49 (5) The highway district has the power to receive highway petitions and 50 lay out, alter, create and abandon and vacate public highways and public 51 rights-of-way within their respective districts under the provisions of sec- 52 tions 40-202, 40-203 and 40-203A, Idaho Code. Provided however, when a public 53 highway, public street and/or public right-of-way is part of a platted subdi- 54 vision which lies within an established county/city impact area or within one 55 (1) mile of a city if a county/city impact area has not been established, con- 3 1 sent of the city council of the affected city, when the city has a functioning 2 street department with jurisdiction over the city streets, shall be necessary 3 prior to the granting of acceptance or vacation of said public street or pub- 4 lic right-of-way by the highway district board of commissioners. 5 (6) The highway district is empowered to take conveyance or other assur- 6 ances, in the name of the highway district, for all property acquired by it 7 under the provisions of this chapter for the purposes of this title. The high- 8 way district may institute and maintain any and all actions and proceedings, 9 suits at law and in equity, necessary or proper in order to carry out the pro- 10 visions of this chapter, or to enforce, maintain, protect or preserve any and 11 all rights, privileges and immunities provided in this chapter. In all courts, 12 actions, suits or proceedings, the highway district may sue, appear and 13 defend, in person or by attorneys, and in the name of the highway district. 14 (7) The highway district is empowered to hold, use, acquire, sell, man- 15 age, occupy and possess property. The highway district may create highway 16 divisions, which must be carefully and distinctly defined and described. 17 Highway divisions may be altered, changed, created or modified by the highway 18 district commissioners, as the need requires. 19 (8) The highway district board of commissioners shall have the exclusive 20 general supervisory authority over all public highways, public streets and 21 public rights-of-way under their jurisdiction, with full power to establish 22 design standards, establish use standards, establish regulations in accordance 23 with the provisions of title 49, Idaho Code, and control access to said public 24 highways, public streets and public rights-of-way. 25 (9) By July 1, 2000, and every five (5) years thereafter, the highway 26 district board of commissioners shall have published in map form and made 27 readily available the location of all public rights-of-way under its jurisdic- 28 tion. Any highway district board of commissioners may be granted an extension 29 of time with the approval of the legislature by adoption of a concurrent reso- 30 lution. 31 SECTION 2. That Section 50-1703, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 50-1703. POWERS CONFERRED. (a) The governing body of any municipality 34 shall have power to make or cause to be made any one (1) or more 35 or combination of the following improvements: 36 (1) To establish grades and lay out, establish, open, extend and widen 37 any local, collector, arterial or other street, sidewalk, 38 alley or off-street parking facility; 39 (2) To purchase, acquire, construct, improve, repair, light, 40 grade, pave, repave, surface, resurface, curb, gutter, sewer, drain, land- 41 scape and beautify any street, sidewalk or alley; 42 (3) To purchase, construct, reconstruct, extend, maintain or repair 43 bridges, sidewalks, crosswalks, driveways, culverts, sanitary sewers, 44 storm sewers, ditches, drains, conduits, flood barriers and channels for 45 sanitary and drainage purposes, or either or both thereof, with inlets or 46 outlets, manholes, catch basins, flush tanks, treatment systems and all 47 other sewer and drainage appurtenances necessary for the com- 48 fort, convenience, health and well-being of the inhabitants of the munici- 49 pality; provided, that any improvements for sanitary sewer facilities 50 shall be constructed so as to conform with the generalregulations51rules of the Idaho department of health and welfare; 52 (4) To construct, reconstruct, extend, maintain, or repair lines, facili- 53 ties and equipment (other than generating equipment) for street lighting 4 1 purposes or for the expansion or improvement of a previously established 2 municipally-owned electrical distribution system, to a district within the 3 boundaries of the municipality; 4 (5) To plant, or cause to be planted, set out, cultivate and maintain 5 lawns, shade trees or other landscaping; 6 (6) To cover, fence, safeguard or enclose reservoirs, canals, ditches and 7 watercourses and to construct, reconstruct, extend, line or reline, main- 8 tain and repair waterworks, reservoirs, canals, ditches, pipes, mains, 9 hydrants, and other water facilities for the purpose of supplying water 10 for domestic, irrigation and fire protection purposes, or any of them; 11 regulating, controlling or distributing the same and regulating and con- 12 trolling water and watercourses leading into the municipality; 13 (7) To acquire, construct, reconstruct, extend, maintain or repair park- 14 ing lots or other facilities for the parking of vehicles on or off 15 streets; 16 (8) To acquire, construct, reconstruct, extend, maintain or repair parks 17 and other recreational facilities; 18 (9) To remove any nonconforming existing facility or structure in the 19 areas to be improved; 20 (10) To construct, reconstruct, extend, maintain or repair optional 21 improvements; 22 (11) To acquire by purchase, gift, condemnation, or otherwise any real or 23 personal property within the limits of the municipality as in the judgment 24 of the council may be necessary or convenient in order to make any of such 25 improvements or otherwise to carry out the purposes of this chapter 26 ; 27 (12) To make any other improvements now or hereafter authorized by any 28 other law, the cost of which in whole or in part can properly be deter- 29 mined to be of particular benefit to a particular area within the munici- 30 pality; 31 (13) To construct and install all such structures, equipment and other 32 items and to do all such other work and to incur any such costs and 33 expenses as may be necessary or appropriate to complete any of such 34 improvements in a proper manner; 35 (14) To purchase, build, construct, reconstruct or otherwise improve park- 36 ing facilities and all other appurtenances necessary to provide adequate 37 off-street parking, and to that end may acquire real or personal property 38 by purchase, gift, condemnation or otherwise, and may own, possess and 39 maintain such real or personal property within the limits of the munici- 40 pality as in the judgment of the council may be necessary and convenient 41 for such purposes; and 42 (15) To acquire, purchase, build, construct or reconstruct 43 irrigation systems, install underground tiling and cover open irrigation 44 ditches. 45 (b) For the purpose of making and paying for all or a part of the cost of 46 any of such improvements (including optional improvements), the governing body 47 of a municipality may create local improvement districts within the municipal- 48 ity, levy assessments on the property within such a district which is bene- 49 fited by the making of the improvements and issue interim or registered war- 50 rants and local improvement bonds as provided in this chapter. 51 SECTION 3. That Section 50-1705, Idaho Code, be, and the same is hereby 52 amended to read as follows: 53 50-1705.ENLARGEDMODIFIED DISTRICT. Whenever 5 1 any local improvement shall be of such nature and character that the special 2 benefits resulting therefrom extend beyond the boundaries of the property 3 abutting the improvement or whenever the special benefits do not accrue 4 to some or all properties abutting the improvements, but to other properties 5 , the council may createan enlargeda modified 6 local improvement district, which shall include as near as may be 7 determined all the property especially benefited by such improvements. 8 Provided however, that by unanimous agreement of the property owners to 9 be assessed, properties may be included or excluded from the local improvement 10 district regardless of whether they are specially benefited by the improve- 11 ments. When such district is created, all property therein shall be 12 assessed for a portion of the cost and expenses of such improvements,in13accordance with the special benefits to such property,to be determined 14 and fixed by the council when the district is created. 15 SECTION 4. That Section 50-1706, Idaho Code, be, and the same is hereby 16 amended to read as follows: 17 50-1706. INITIATION OF ORGANIZATION OF DISTRICT. The organization of any 18 local improvement district herein provided for may be initiated upon a peti- 19 tion signed by not less than sixtyper centpercent 20 (60%) of the resident owners or two-thirds (2/3) of the owners of 21 property subject to assessment within such proposed improvement district, or 22 by resolution of the council adopted by an affirmative vote of a majority of 23 the members of the full council at a regular or special meeting thereof. The 24 terms of a petition shall include a description of the boundaries of a pro- 25 posed district, the improvements to be made and the property to be assessed. 26 SECTION 5. That Chapter 17, Title 50, Idaho Code, be, and the same is 27 hereby amended by the addition thereto of a NEW SECTION , to be 28 known and designated as Section 50-1706A, Idaho Code, and to read as follows: 29 50-1706A. FEES. In the case of any local improvement district initiated 30 by petition, the petitioners may authorize the council to charge the petition- 31 ers a reasonable fee for the council to retain outside advisors to assist the 32 council in assessing the proposed local improvement district. The council may 33 not charge the petitioners any fee for review of a proposed local improvement 34 district unless the petitioners authorize the fee. 35 SECTION 6. That Section 50-1707, Idaho Code, be, and the same is hereby 36 amended to read as follows: 37 50-1707. RESOLUTION OF INTENTION TO CREATE DISTRICT. Upon the filing of a 38 petition or upon initiation of a district by council action, the council shall 39 at a regular or special meeting adopt a resolution giving notice of its inten- 40 tion to create the district, to make the improvements and to levy assessments 41 to pay all or a part thereof. The notice shall contain: 42 (a) A description of the boundaries of the district to be created and the 43 property to be assessed, sufficient to inform the owners thereof that their 44 property is to be assessed. 45 (b) A general description of the improvements contemplated together with 46 an estimate of the total cost and expenses of the same and a statement of the 47 percentage or other calculation of the total cost and expenses of the improve- 48 ments which will be paid from a levy of assessments on property benefited and 49 the percentage or calculation of the total costs and expenses which will be 6 1 paid from the general funds of the municipality or from such other source 2 specified in the notice. 3 (c) A statement that the costs and expenses of the improvements will be 4 assessed against theabutting, adjoining and adjacent lots and lands5along or upon which such improvements are to be made and uponlots and 6 lands specially benefited by such improvements , except as 7 provided in section 50-1705, Idaho Code, and included in the district 8 to be created according to a front foot method, or a square foot method, or a 9 combination thereof,orin proportion to the benefits derived to 10 such property by said improvements, or by another method agreed to by 11 all property owners to be assessed, and the council shall state the 12 method so determined in said notice. 13 (d) A statement that the district is to bean enlarged14 a modified district within the meaning of this act, if the same is 15 true, and the boundaries of suchenlargedmodified 16 district shall be given. 17 (e) A statement of the time within which and the place at which protests 18 shall be filed and of the time and place at which the council will conduct a 19 public hearing to consider such protests. 20 SECTION 7. That Section 50-1709, Idaho Code, be, and the same is hereby 21 amended to read as follows: 22 50-1709. PROTESTS AND HEARING. Any owner of property to be assessed in 23 the proposed local improvement district described in the notice of intention 24 shall have the right, in advance of the hearing, to file in writing a protest 25 to the creation of the district or making any other objections in relation 26 thereto. At the date, time and place specified in the notice of intention the 27 council shall in open and public session consider all protests which have been 28 filed in writing in advance of the hearing, and the hearing may be adjourned 29 from time to time to a fixed future time and place for the same until all such 30 protests have been heard. The decision of the council as to all protests shall 31 be conclusive and final, and if it should so determine, the council may delete 32 any improvements or any property which had originally been contemplated in the 33 said notice. If owners of more than two - thirds (2/3) of the prop- 34 erty to be assessed protest any of the proposed improvements which affect 35 their property, the council shall not proceed further with the work so pro- 36 tested unless a majority of the members of the full council shall vote to pro- 37 ceed with such work. The vote on the hereinafter mentioned ordinance creating 38 the improvement district shall constitute the vote as to whether or not the 39 council will proceed. Any property owner who fails to file a protest within 40 the time specified, or having filed one withdraws said protest, shall be 41 deemed to have waived any objection to the creation of the district, the mak- 42 ing of the improvements, and the inclusion of his property in the district. 43 Such waiver shall not preclude his right to object to the amount of the 44 assessment at the later hearing provided for such purpose. 45 In cases where the creation of a local improvement district has been pro- 46 posed by the governing board of an entity other than a city council or board 47 of county commissioners, and where written protests are filed and sixty48per centpercent (60%) of the resident owners or the 49 owners of two - thirds (2/3) of theabutting, adjoining, con-50tiguous and adjacentlots and lands subject to assessment 51 within such proposed improvement district have signed such protest, the gov- 52 erning board of the governmental entity proposing the local improvement dis- 53 trict shall not be allowed to proceed with the creation of the district for a 7 1 period of one hundred eighty (180) days. During this one hundred eighty (180) 2 day period, the city council shall act as a review board for as much of the 3 proposed district as is situated within the boundaries of the city, and the 4 board of county commissioners shall act as a review board for that portion of 5 theproposalproposed local improvement district as 6 is situated within the unincorporated portion of the county. As a review 7 board, the city council or board of county commissioners shall review the 8 record of the proposal, including conformance with procedural provisions of 9 law. The city council or board of county commissioners shall also evaluate the 10 necessity or desirability of the proposed district, and shall take into con- 11 sideration the creation of the proposed local improvement district as it 12 relates to the following: 13 (a) the health, safety and welfare of the residents of the proposed dis- 14 trict, or of persons having the necessity to travel through the district; and 15 (b) the financial impact of the creation and implementation of the objec- 16 tives of the proposed district upon the property owners within the proposed 17 district, especially in light of projects recently undertaken or contemplated 18 for the near future within the district. 19 After its evaluation, the city council shall approve, modify or reject the 20 proposal for the creation of a local improvement district for as much of the 21 proposed district as is situated within the boundaries of the city, and the 22 board of county commissioners shall approve, modify or reject the proposal for 23 the creation of a local improvement district for as much of the proposed dis- 24 trict as is situated within the unincorporated portion of the county. 25 SECTION 8. That Section 50-1710, Idaho Code, be, and the same is hereby 26 amended to read as follows: 27 50-1710. ORDINANCE CREATING IMPROVEMENT DISTRICT AND PROCEDURE FOR CON- 28 STRUCTION BIDS. If, after the hearing on the creation of the district, the 29 council finds (a) that the district will be for the best interest of the prop- 30 erty affected and the municipality, (b) that there is reasonable probability 31 that the obligations of such district will be paid, and (c) the value of the 32 property within the proposed district , including the proposed improve- 33 ments, is sufficient, it shall then enact an ordinance providing for 34 such improvements and creating a local improvement district to be called 35 "Local Improvement District No. ...... for ............, Idaho," which shall 36 include all of the property within said district in accordance with the find- 37 ings of the council, and said ordinance shall set forth the boundaries of the 38 district, provide the improvements which shall be made, and state that the 39 total cost and expenses thereof shall be assessed according to the percentage 40 or calculation hereinbefore mentioned on all benefited property in the dis- 41 trict by using the method of assessment contemplated in the notice of inten- 42 tion subject to any variation therefrom as a result of the council's determin- 43 ing that the benefits to be derived by certain lots or parcels of property 44 warrant such variations. The council may either purchase, acquire or 45 construct the improvements. The council shall appoint an engineer 46 .andIf the council elects to construct the 47 improvements, the engineer shall have prepared the necessary plans and 48 specifications for the construction work ordered. 49 Except as hereinafter otherwise provided, the council shall authorize the 50 advertisement for bids therefor by giving notice calling for sealed bids for 51 the construction of the work. Notice of advertisement for bids shall be pub- 52 lished in the official newspaper of the municipality in three (3) consecutive 53 weekly issues, which notice shall (a) contain a general description of the 8 1 kind and amount of work to be done, (b) state that the plans and specifica- 2 tions for said work are on file in the office of the engineer or clerk for 3 inspection and (c) state the date, hour and place of the bid opening. 4 Each bidder shall accompany his bid with bidder's security as provided in 5 section 50-341, Idaho Code, in the amount of fiveper cent6 percent (5%) of his bid. In case the contract for any such work is 7 offered to such bidder and he fails or refuses to enter into the contract, 8 then such security shall be forfeited to the municipality and placed in the 9 local improvement fund of such district. These provisions also shall appear in 10 said notice. 11 Award shall be made to the lowest responsible bidder fulfilling the 12 requirements. 13 Any acquisition, purchase or construction contract made by a 14 municipality for any improvements authorized by this code shall be made by the 15 council in the name of the municipality upon such terms of payment as shall be 16 fixed by the council. The contract shall be authorized by resolution 17 empowering the authorized officer of the municipality to execute the contract. 18 The resolution need not set out the contract in full but it shall be suffi- 19 cient if the resolution refers to a copy of the contract on file in the office 20 of the clerk where it is available for public inspection. 21 Any provision in this local improvement district code notwithstanding, if 22 any municipality shall elect to exercise the powers herein granted jointly 23 with any other public agency or agencies as authorized by the provisions of 24 section 67-2328, Idaho Code, the improvements as contemplated within the local 25 improvement district may be constructed jointly and as part of a larger proj- 26 ect with such other agency or agencies upon the letting of a single contract 27 after compliance with the required bidding procedure for any Idaho public 28 agency jointly participating in the work. 29 SECTION 9. That Chapter 17, Title 50, Idaho Code, be, and the same is 30 hereby amended by the addition thereto of a NEW SECTION , to be 31 known and designated as Section 50-1772, Idaho Code, and to read as follows: 32 50-1772. COMMERCIALLY REASONABLE CREDIT ASSURANCES. If requested by the 33 petitioners for a local improvement district, and in addition to or in lieu of 34 a reserve or guarantee requirement, the council or other governing body of a 35 governmental entity may impose such commercially reasonable credit assurances 36 as it may deem necessary as a condition of approving a local improvement dis- 37 trict. If commercially reasonable, such assurances may include guarantees, 38 letters of credit or bonds in amounts up to the total amount of indebtedness. 39 SECTION 10. That Section 67-8209, Idaho Code, be, and the same is hereby 40 amended to read as follows: 41 67-8209. CREDITS. (1) In the calculation of development impact fees for a 42 particular project, credit or reimbursement shall be given for the present 43 value of any construction of system improvements or contribution or dedication 44 of land or money required by a governmental entity from a developer for system 45 improvements of the category for which the development impact fee is being 46 collected , including such system improvements paid for pursuant to a 47 local improvement district . Credit or reimbursement shall not be given 48 for project improvements. 49 (2) If a developer is required to construct, fund or contribute system 50 improvements in excess of the development project's proportionate share of 51 system improvement costs, including such system improvements paid for 9 1 pursuant to a local improvement district, the developer shall receive a 2 credit on future impact fees or be reimbursed at the developer's choice for 3 such excess construction, funding or contribution from development impact fees 4 paid by future development which impacts the system improvements constructed, 5 funded or contributed by the developer(s) or fee payer. 6 (3) If credit or reimbursement is due to the developer pursuant to this 7 section, the governmental entity shall enter into a written agreement with the 8 fee payer, negotiated in good faith, prior to the construction, funding or 9 contribution. The agreement shall provide for the amount of credit or the 10 amount, time and form of reimbursement.
STATEMENT OF PURPOSE RS09042C2 This legislation clarifies that a highway district may acquire highways within their system without constructing them. It also amends the Local Improvement District section of the code to allow local improvement districts to work on collector or arterial streets even though they may not be directly adjacent to the property within the Local Improvement District. It clarifies the relationship to improvements made pursuant to a LID and the calculation of impact fees for new developments. FISCAL NOTE There will be no impact to the general fund. There may be a positive impact to government entities due to the value of the improvements made and the ability to negotiate fees to pay for the services of outside advisors to review the Local Improvement District petitions. CONTACT: Rep. Lee Gagner 208-332-1000 David Mabe 208-388-1235 STATEMENT OF PURPOSE/ FISCAL NOTE Bill No. H 292