1999 Legislation
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HOUSE BILL NO. 292 – Local improvement dist, procedures

HOUSE BILL NO. 292

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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

Bill Text


H0292


                                                                        
 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fifth Legislature                 First Regular Session - 1999
                                                                        

                             IN 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 general    regulations
51          rules  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.    ENLARGED    MODIFIED  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 create   an  enlarged      a  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,  in
13    accordance 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 sixty  per cent   percent  
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 the  abutting, adjoining and  adjacent  lots  and  lands
 5    along  or upon which such improvements are to be made and upon  lots 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,  or  in 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 be  an enlarged  
14    a modified  district within the meaning of this  act,  if  the  same  is
15    true,  and  the boundaries of such  enlarged   modified 
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 sixty  
48    per  cent      percent    (60%) of the resident owners or the
49    owners of two - thirds (2/3) of the  abutting, adjoining, con-
50    tiguous and adjacent  lots 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    the  proposal   proposed  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    .   and     If  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 five  per cent   
 6    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 / Fiscal Impact


                       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