48-1018. Conversion of county improvement district to domestic water improvement district or domestic wastewater improvement district; notice; costs

A. A county improvement district that has acquired, has constructed or owns a water system that provides domestic water to residents of that district or a county improvement district that has constructed and owns a wastewater treatment facility that serves the residents of that district may be converted to a district under this article by either of the following methods:

1. A board of supervisors, by resolution, may order conversion of a county improvement district into a domestic water improvement district or a domestic wastewater improvement district after a public hearing conducted with not less than twenty days' notice mailed to the owners of real property in the county improvement district as shown on the most recent property tax assessment roll.

2. The owners of at least fifty per cent of the property that is subject to an assessment to pay for existing improvements within a county improvement district may petition the board of supervisors for a finding and an order that the county improvement district be converted into a domestic water improvement district or a domestic wastewater improvement district, and after consideration of the petition the board, by resolution, shall order that conversion.

B. On adoption of an order for conversion as provided in subsection A of this section, a county improvement district is converted to a domestic water improvement district or a domestic wastewater improvement district and from that date is subject to this article. Pursuant to section 48-1012, the board of supervisors shall specify the number of members to serve on the board of directors of the district and shall appoint the initial members.

C. All costs, expenses and attorney fees incurred by the county improvement district and by any petitioners in seeking a conversion of a county improvement district are a liability of the domestic water improvement district or domestic wastewater improvement district if conversion is ordered. If conversion is not ordered, all costs, expenses and attorney fees incurred by the county improvement district and by any petitioners in seeking a conversion of a county improvement district are a liability of the county improvement district.

D. All assets and liabilities of the converted county improvement district become the assets and liabilities of the domestic water improvement district or domestic wastewater improvement district. The domestic water improvement district or domestic wastewater improvement district is the successor in interest of the former county improvement district and succeeds to all rights, privileges and powers of the former county improvement district with full rights to collect any debt, liability, obligation or assessment owed to the former county improvement district and to levy assessments, issue bonds and levy and collect taxes for the payment of the general obligations of the district. A person shall not be relieved of any debt, liability, obligation or assessment to a county improvement district by reason of its conversion pursuant to this section.

E. Nothing in this section shall be construed to affect the authority of a board of supervisors pursuant to section 48-1016.