TITLE 43

IRRIGATION DISTRICTS

CHAPTER 22

RECONSTRUCTION, REHABILITATION, REPLACEMENT AND IMPROVEMENT OF DAMS BY IRRIGATION DISTRICTS — FINANCIAL AND OTHER ARRANGEMENTS

43-2201.  Reconstruction of dams and related appurtenances — Execution of contracts — Assessments — Terms and conditions. Any irrigation district organized and existing under the provisions of title 43, Idaho Code, in addition to any other powers which it might enjoy, for the purpose of preserving, restoring, protecting and maintaining rights of storage, diversion and delivery of water necessary and appurtenant to the purposes for which such district and other like similarly situated districts were organized, is hereby granted the following additional powers:

(A)  To reconstruct, rehabilitate, replace and improve dams and other related structures and works together with all necessary appurtenances related thereto, whether located within or without the boundaries of the district and whether or not legal title thereto is owned by the district, including without limitation as a part thereof the reconstruction and relocation of all roads, bridges and highways made necessary by reason of such reconstruction, rehabilitation, replacement and improvement, the construction of penstocks and other facilities related to hydroelectric production plant and made necessary pursuant to falling water contracts entered into pursuant to the provisions of paragraph (4) of subsection (D) hereof, and related facilities for flood control, public recreation and fish and wildlife mitigation and enhancement purposes made necessary in order to comply with applicable state and federal requirements;

(B)  To enter into all necessary agreements, contracts and other legal arrangements with the United States of America and its agencies and departments, the state of Idaho and its agencies, departments and political subdivisions, and public and private persons, firms, corporations and associations in order to carry out the reconstruction, rehabilitation, replacement and improvement of any such dam and other related structures and works and appurtenances and the financing thereof pursuant to the provisions of this chapter;

(C)  To issue bonds of the district in the manner provided in this chapter for the purpose of paying all or part of the cost of the reconstruction, rehabilitation, replacement and improvement of any such dam and other related structures and works and appurtenances as further described in subsections (A) and (B) above, and for the purpose of paying all expenses preliminary and incidental thereto, including all engineering, fiscal and legal expenses and costs of issuance, printing, advertising, establishment of necessary reserves and payment of interest during construction;

(D)  To provide that any bonds issued and sold pursuant to the provisions of this chapter shall be payable solely out of a special fund into which the district shall be obligated to deposit as from time to time received the following:

(1)  The proceeds of the collection of assessments to be levied by the irrigation district issuing the bonds, pursuant to the provisions of section 43-404, Idaho Code, representing the amount of benefits to accrue to each tract or subdivision in such district based upon the cost allocation to such district pursuant to subsection (E) hereof, from the reconstruction, rehabilitation, replacement and improvement of any such dam and other related structures and works and appurtenances, in the proportion that the right to the storage, diversion and delivery of water appurtenant to each such tract or subdivision bears to the total right to the storage, diversion and delivery of water appurtenant to such dam and other related structures and works and appurtenances, but only when there shall have been held in such irrigation district an election on the right of the district to impose such assessments and which assessments shall have been approved at said election, and which election shall have been called, held and conducted in the manner now or hereafter provided in chapter 4, title 43, Idaho Code, the authority for the calling and holding of said election and the levying of such assessments being hereby given.

(2)  Payments, pursuant to contracts entered into by such district with other irrigation districts, constituting the proceeds of the collection of assessments to be levied by such other districts, pursuant to the provisions of section 43-404, Idaho Code, representing the amount of benefits to accrue to each tract or subdivision in each such district based upon the cost allocation to each such district pursuant to subsection (E) hereof, from the reconstruction, rehabilitation, replacement and improvement of any such dam and other related structures and works and appurtenances, in the proportion that the right to the storage, diversion and delivery of water appurtenant to each such tract or subdivision bears to the total right to the storage, diversion and delivery of water appurtenant to such dam and other related structures and works and appurtenances, but only when there shall have been held in each such irrigation district contracting with the irrigation district issuing such bonds, an election on the right of the district to impose such assessments and to enter into an obligation or contract with the irrigation district issuing the bonds for such purpose, and which assessments and which obligation or contract shall have been approved at said election, and which election shall have been called, held and conducted in the manner now or hereafter provided in chapter 4, title 43, Idaho Code, the authority for the calling and holding of said election and the levying of such assessments and the entering into of such obligation or contract with such irrigation district being hereby given; and

(3)  Payments pursuant to contracts with other public or private persons, firms, corporations and associations representing the portion of the cost of reconstructing, rehabilitating, replacing and improving any such dam and other related structures and works and appurtenances and allocated to each such public or private person, firm, corporation or association pursuant to subsection (E) hereof, in the proportion that the right to the storage, diversion and delivery of water appurtenant to each tract or subdivision represented by the contracting public or private person, firm, corporation or association bears to the total right to the storage, diversion and delivery of water appurtenant to such dam and other related structures and works and appurtenances;

(4)  When so authorized by act of congress, the proceeds from the sale or use of falling water appurtenant to the dam and other related structures and works and appurtenances to be so reconstructed, rehabilitated, replaced and improved with the proceeds of bonds of the district, pursuant to falling water contracts for power generation to be entered into by the irrigation district issuing the bonds with a public or private person, firm, corporation or association, and which falling water contracts may contain such provisions as contemplated in the act of congress providing for the reconstruction, rehabilitation, replacement and improvement of any such dam and other related structures and works and appurtenances, the coordination of the construction of hydroelectric power facilities, the conditions under which the contracting party shall make payments to the district issuing the bonds, the rights and remedies of the parties thereto in the event of the failure of the contracting party to make the required payments thereunder and the securing of all necessary permits and licenses required in connection therewith;

(E)  To make a determination of the proportion of the cost of the reconstruction, rehabilitation, replacement and improvement of any such dam and other related structures and works and appurtenances which will be repaid pursuant to such falling water contracts entered into pursuant to the provisions of paragraph (4) of subsection (D) hereof, and to determine that only the balance of the cost shall be repaid from the proceeds of assessments and contracts pursuant to the provisions of paragraphs (1), (2) and (3) of subsection (D) hereof and to allocate the balance of the cost so determined in the proportion that the various rights to the storage, diversion and delivery of water bear to the total rights to the storage, diversion and delivery of water appurtenant to such dam and other related structures and works and appurtenances, and in the event that any public or private person, firm, corporation or association shall fail to execute a contract or to levy assessments as contemplated in paragraphs (2) and (3) of subsection (D) hereof, to reallocate the balance of the original cost as in this subsection determined, provided, however, that if the result of any such reallocation increases the obligation of any irrigation district under any contract or increases any assessment, any such increase must be approved in the same manner as hereinabove required for the approval of the original contract or assessment, or both; and

(F)  To enter into a trust indenture securing the bonds issued pursuant to the provisions hereof with a bank or trust company doing business either within or without the state of Idaho, and to assign the rights of the district to receive the payments provided for in paragraphs (1), (2), (3) and (4) subsection (D) hereof to such bank or trust company as trustee for and on behalf of the bondholders.

History:

[43-2201, as added by 1974, ch. 1, sec. 1, p. 3.]