17B-2a-1004 - Additional water conservancy district powers -- Limitations on water conservancy districts.
17B-2a-1004. Additional water conservancy district powers -- Limitations on waterconservancy districts.
(1) In addition to the powers conferred on a water conservancy district under Section17B-1-103, a water conservancy district may:
(a) issue bonds as provided in and subject to Chapter 1, Part 11, Local District Bonds, tocarry out the purposes of the district;
(b) acquire or lease any real or personal property or acquire any interest in real orpersonal property, as provided in Subsections 17B-1-103(2)(a) and (b), whether inside or outsidethe district;
(c) acquire or construct works, facilities, or improvements, as provided in Subsection17B-1-103(2)(d), whether inside or outside the district;
(d) acquire water, works, water rights, and sources of water necessary or convenient tothe full exercise of the district's powers, whether the water, works, water rights, or sources ofwater are inside or outside the district, and encumber, sell, lease, transfer an interest in, ordispose of water, works, water rights, and sources of water;
(e) fix rates and terms for the sale, lease, or other disposal of water;
(f) acquire rights to the use of water from works constructed or operated by the district orconstructed or operated pursuant to a contract to which the district is a party, and sell rights to theuse of water from those works;
(g) levy assessments against lands within the district to which water is allotted on thebasis of:
(i) a uniform district-wide value per acre foot of irrigation water; or
(ii) a uniform unit-wide value per acre foot of irrigation water, if the board divides thedistrict into units and fixes a different value per acre foot of water in the respective units;
(h) fix rates for the sale, lease, or other disposal of water, other than irrigation water, atrates that are equitable, though not necessarily equal or uniform, for like classes of service;
(i) adopt and modify plans and specifications for the works for which the district wasorganized;
(j) investigate and promote water conservation and development;
(k) appropriate and otherwise acquire water and water rights inside or outside the state;
(l) develop, store, treat, and transport water;
(m) acquire stock in canal companies, water companies, and water users associations;
(n) acquire, construct, operate, or maintain works for the irrigation of land;
(o) subject to Subsection (2), sell water and water services to individual customers andcharge sufficient rates for the water and water services supplied;
(p) own property for district purposes within the boundaries of a municipality; and
(q) coordinate water resource planning among public entities.
(2) (a) A water conservancy district and another political subdivision of the state maycontract with each other, and a water conservancy district may contract with one or more publicentities and private persons, for:
(i) the joint operation or use of works owned by any party to the contract; or
(ii) the sale, purchase, lease, exchange, or loan of water, water rights, works, or relatedservices.
(b) An agreement under Subsection (2)(a) may provide for the joint use of works ownedby one of the contracting parties if the agreement provides for reasonable compensation.
(c) A statutory requirement that a district supply water to its own residents on a prioritybasis does not apply to a contract under Subsection (2)(a).
(d) An agreement under Subsection (2)(a) may include terms that the parties determine,including:
(i) a term of years specified by the contract;
(ii) a requirement that the purchasing party make specified payments, without regard toactual taking or use;
(iii) a requirement that the purchasing party pay user charges, charges for the availabilityof water or water facilities, or other charges for capital costs, debt service, operating andmaintenance costs, and the maintenance of reasonable reserves, whether or not the related water,water rights, or facilities are acquired, completed, operable, or operating, and notwithstanding thesuspension, interruption, interference, reduction, or curtailment of water or services for anyreason;
(iv) provisions for one or more parties to acquire an undivided ownership interest in, or acontractual right to the capacity, output, or services of, joint water facilities, and establishing:
(A) the methods for financing the costs of acquisition, construction, and operation of thejoint facilities;
(B) the method for allocating the costs of acquisition, construction, and operation of thefacilities among the parties consistent with their respective interests in or rights to the facilities;
(C) a management committee comprised of representatives of the parties, which may beresponsible for the acquisition, construction, and operation of the facilities as the partiesdetermine; and
(D) the remedies upon a default by any party in the performance of its obligations underthe contract, which may include a provision obligating or enabling the other parties to succeed toall or a portion of the ownership interest or contractual rights and obligations of the defaultingparty; and
(v) provisions that a purchasing party make payments from:
(A) general or other funds of the purchasing party;
(B) the proceeds of assessments levied under this part;
(C) the proceeds of impact fees imposed by any party under Title 11, Chapter 36, ImpactFees Act;
(D) revenues from the operation of the water system of a party receiving water orservices under the contract;
(E) proceeds of any revenue-sharing arrangement between the parties, including amountspayable as a percentage of revenues or net revenues of the water system of a party receivingwater or services under the contract; and
(F) any combination of the sources of payment listed in Subsections (2)(d)(v)(A) through(E).
(3) (a) A water conservancy district may enter into a contract with another state or apolitical subdivision of another state for the joint construction, operation, or ownership of a waterfacility.
(b) Water from any source in the state may be appropriated and used for beneficialpurposes within another state only as provided in Title 73, Chapter 3a, Water Exports.
(4) (a) Except as provided in Subsection (4)(b), a water conservancy district may not sellwater to a customer located within a municipality for domestic or culinary use without the
consent of the municipality.
(b) Subsection (4)(a) does not apply if:
(i) the property of a customer to whom a water conservancy district sells water was, atthe time the district began selling water to the customer, within an unincorporated area of acounty; and
(ii) after the district begins selling water to the customer, the property becomes part of amunicipality through municipal incorporation or annexation.
(5) A water conservancy district may not carry or transport water in transmountaindiversion if title to the water was acquired by a municipality by eminent domain.
(6) A water conservancy district may not be required to obtain a franchise for theacquisition, ownership, operation, or maintenance of property.
(7) A water conservancy district may not acquire by eminent domain title to or beneficialuse of vested water rights for transmountain diversion.
Enacted by Chapter 329, 2007 General Session