40-350

40-350. Lien for cost of conversion; procedure to perfect lien; recording notice of lien; default; limitation of action to foreclose lien; disconnection of service upon default

A. Upon completion of the conversion of the overhead electric and communication facilities, the public service corporation or public agency shall determine the total conversion costs as provided in section 40-347 and shall prepare and file a verified statement of such costs with the corporation commission, the board of supervisors or the city or town council, as the case may be. In the event the verified statement of the underground conversion costs for the removal of the overhead electric and communication facilities from public places is less than the estimate of such costs, the underground conversion costs to be paid by each owner shall be reduced proportionately, or in the event the actual cost of converting to underground the facilities from the public place to the point of delivery is less than the estimated cost for such conversion, then the underground conversion costs to be paid by the owner of such lot for such conversion shall be reduced. Upon completion of the conversion and the filing of the verified statement of costs, the corporation commission, the board of supervisors or the city or town council, as the case may be, shall mail to each owner a statement of the underground conversion costs setting forth the revisions, if any, which such statement shall specify the date payments are to commence. In the event the statements or the verified statement of costs contain any revisions, any owner desiring to object to such revisions shall file a written objection with the corporation commission, the board of supervisors or the city or town council, as the case may be, within twenty days following receipt of such notice. In the event any objections are filed, the corporation commission, the board of supervisors or the city or town council, as the case may be, shall fix a time for a hearing thereon not later than twenty days from the date of the filing of such objections. Notice of the time and place of such hearing shall be given by the corporation commission, the board of supervisors or city or town council to the owner filing the written objections and to the public service corporation or public agency whose overhead facilities were converted. It shall be a condition of maintaining any objection or appeal from an order of the corporation commission, board of supervisors or city or town council that the person objecting continue to make payments in the manner prescribed by the order of the corporation commission, board of supervisors or city or town council, which such payments may be made under protest and subject to refund if the verified statement, computation or allocation is determined to be improper.

B. The underground conversion cost to be paid by each owner to each public service corporation or public agency concerned shall be a lien separately on each privately owned parcel of real property within the underground conversion service area in favor of such public service corporation or public agency and shall be effective as of the date of filing of the notice of proposed lien as provided in section 40-343 upon its perfection as provided in subsection C of this section. Such lien shall only apply to each parcel of property to the extent determined by the apportionment provided for in section 40-347 plus any amount included pursuant to section 40-348. Upon payment of such entire sum, any lien herein created shall be released.

C. The lien shall be perfected by recording a notice of lien in the office of the county recorder of the county in which the underground conversion service area is located within ninety days after completion of the removal of the overhead system in public places, whether or not the connections to serve the individual lots have been completed, as provided in section 40-349. The notice of lien shall contain the following:

1. The legal description of each lot or parcel upon which a lien is claimed.

2. The public service corporation or public agency claiming the lien.

3. That portion of the underground conversion costs allocated to each lot or parcel.

4. A certified copy of the order of the corporation commission, the board of supervisors or the city or town council authorizing the establishment of the underground conversion service area.

5. The periodic installments to be made on account of the repayment of the underground conversion costs allocated to each lot or parcel.

6. The date of completion of removal of the overhead facilities in private easements and public places.

7. The date of filing the notice of proposed lien.

D. In the event of a default in the payment of a periodic installment of the underground conversion cost, the unpaid balance of such underground conversion cost may, at the election of the public service corporation or public agency involved, immediately become due and payable, and the public service corporation or public agency involved may, not later than one year after the final installment would have become due and payable, institute an action in superior court to foreclose its lien against such parcel or lot. A lien granted under the provisions of this section shall continue until the entire underground conversion cost apportioned to each such parcel or lot has been paid, notwithstanding the provisions of section 33-998, except that action to enforce the lien shall be commenced not later than one year after the final installment would have become due and payable. The election to accelerate the periodic payment of installments shall become effective thirty days after mailing written notice thereof to the owner of such parcel or lot as reflected on the records of the county assessor and by recording a copy thereof in the office of the county recorder of the county where such parcel or lot is located.

E. Any lien created under this article shall be inferior to any lien of any governmental entity including, but not limited to, any municipal corporation which has arisen or may arise by reason of any ad valorem tax assessment or any improvement or assessment district assessment, or bond assessment as provided by law but shall be superior to all other demands, encumbrances, title or liens whensoever created.

F. In the event of a default in the payment of the equal periodic installment, the public service corporation or public agency involved may, after thirty days' written notice of such default, discontinue service to such meter or account until such time as the delinquent amount has been paid.