H.B. 23 Enrolled

COUNTY IMPROVEMENT DISTRICT
CONSTRUCTION CONTRACTS
1998 GENERAL SESSION
STATE OF UTAH
Sponsor: Raymond W. Short
AN ACT RELATING TO SPECIAL DISTRICTS; MODIFYING THE PROVISION
REGARDING A COUNTY IMPROVEMENT DISTRICT'S AUTHORITY TO CONSTRUCT
IMPROVEMENTS; RESTATING THE REQUIREMENT THAT COUNTY IMPROVEMENT
DISTRICTS COMPLY WITH PROVISIONS OF THE PROCUREMENT CODE; AND
MAKING TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
17A-2-328, as renumbered and amended by Chapter 186, Laws of Utah 1990
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 17A-2-328 is amended to read:
17A-2-328. Powers of municipalities -- Collection -- System for collection, retention,
and disposition of storm and flood waters -- Power of district to make contracts -- Retainage
escrow.
(1) (a) [When any municipal corporation shall contract with any] If an improvement
district [operating] under [Chapter 2, Part 3 for the supplying of] this part contracts with a
municipality to supply sewage treatment or disposal service, [or both, by such district to such
municipal corporation, such municipal corporation shall have authority to make therefor such] the
municipality's legislative body may:
(i) impose an appropriate service charge to each party connected with [its] the
municipality's sewer system for the services provided by the improvement district, as [it shall
deem] the municipality's legislative body considers reasonable and proper[. The municipal
corporation shall also have the power to]; and
(ii) require industrial and commercial establishments to pre-treat certain wastes and
sewage when [these] the wastes and sewage would otherwise impose an unreasonable burden upon

the collection system or the treatment facility of the improvement district.
(b) If [such municipal corporation] the municipality operates a waterworks system, the
charge [aforesaid] under Subsection (1)(a)(i) may be combined with the charge made for water
furnished by the water system and may be collected and the collection thereof secured in the same
manner as that specified in Section 10-8-38.
[Any] (2) (a) An improvement district acquiring a system for the collection, retention, and
disposition of storm and flood waters [shall have the power to] may contract with [any one or more
municipal corporations] a municipality or other political [subdivisions] subdivision or [persons,
firms or corporations, and each such municipal corporation or other political subdivision or person,
firm or corporation shall have the power to contract with such improvement district] a person, firm,
or corporation for the collection [by the district or municipal corporation or other political
subdivision, person, firm or corporation,] of storm and flood waters [from such other] by any of the
contracting [party or] parties [and to pay for such service, and any].
(b) Some or all of the parties to [any such] a contract under Subsection (2)(a) may agree to
joint acquisition, ownership, construction, operation, or maintenance[, any or all,] of all or part of
[any such] the system for the collection of storm and flood waters.
(c) (i) In exercising the power to acquire and operate [such] a system for the collection of
storm and flood waters, [a] an improvement district may [construct] contract for the construction of
storm sewers, drainage channels, dams, dikes, levees, reservoirs, and other pertinent improvements.
(ii) As a local public procurement unit as defined in Subsection 63-56-5(14), each
improvement district contracting as provided in Subsection (2)(c)(i) shall comply with the provisions
applicable to local public procurement units under Title 63, Chapter 56, Utah Procurement Code.
(3) (a) If any payment on a contract with a private person, firm, or corporation to construct
storm sewers, drainage canals, dams, dikes, levees, reservoirs, and other pertinent improvements is
retained or withheld, it shall be placed in an interest bearing account and the interest shall accrue for
the benefit of the contractor and subcontractors to be paid after the project is completed and accepted
by the board of trustees. [It is the responsibility of the]
(b) The contractor [to ensure that] shall distribute any interest accrued on the retainage [is

- 2 -

distributed by the contractor] to subcontractors on a pro rata basis.

- 3 -