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7 LONG TITLE
8 General Description:
9 This bill amends provisions regarding the financing of a water project.
10 Highlighted Provisions:
11 This bill:
12 . defines terms;
13 . allows the Board of Water Resources to:
14 . accept a bond from private sponsors in lieu of taking title to a project;
15 . give a preference to a project that is for the benefit of the state or a political
16 subdivision; and
17 . consider market conditions and other factors when establishing an interest rate;
19 . makes technical changes.
20 Monies Appropriated in this Bill:
22 Other Special Clauses:
24 Utah Code Sections Affected:
26 73-10-26, as last amended by Laws of Utah 2007, Chapter 179
27 73-10-27, as last amended by Laws of Utah 2005, Chapter 25
28 73-10-28, as enacted by Laws of Utah 1978, Chapter 22
30 Be it enacted by the Legislature of the state of Utah:
31 Section 1. Section 73-10-26 is amended to read:
32 73-10-26. Construction of a project by board -- Ownership and operation --
33 Transfer of a water right -- Purchase of a bond from an Indian tribe.
34 (1) As used in this section:
35 (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
36 (b) "Bond" means:
37 (i) a written obligation to repay borrowed money, whether denominated a bond, note,
38 warrant, certificate of indebtedness, or otherwise; and
39 (ii) a lease agreement, installment purchase agreement, or other agreement that
40 includes an obligation to pay money.
41 (c) "Division" means the Division of Water Resources created in Section 73-10-18 .
42 (d) "Project" means a facility, works, or other real or personal property that:
43 (i) conserves or develops the water or hydroelectric power resources of the state; or
44 (ii) controls flooding.
48 a project.
49 (b) An electric public utility or a municipality of the state may construct an electrical
51 (c) If the state constructs the electrical [
52 power and energy derived from the hydroelectric generating [
60 (b) If funds controlled by the board [
61 control project, the planning [
62 review of the board.
63 (c) If the flood control project is authorized for construction, the plans, specifications,
64 and construction supervision shall be undertaken as prescribed by the board.
66 construction or financing of [
68 government, a political subdivision of the state, an Indian tribe, or a private corporation.
70 (5) (a) (i) Except as provided by Subsections (5)(a)(ii) and (b), title to a project,
71 including a water right, constructed or acquired with monies from the Water Resources
78 (ii) The board may take a bond legally issued by the project sponsor in lieu of or in
79 addition to taking title to the project and water [
80 (b) If an Indian tribe sponsors a project, the board [
82 by the tribe, to the extent that federal law allows the tribe to issue [
83 taking title to the project and water [
84 (i) waives the defense of sovereign immunity regarding the bond issue in [
85 action arising out of the issuance or default under the bond; and
86 (ii) agrees in writing that it will not challenge state court jurisdiction over any litigation
87 resulting from default on its [
88 (c) Before entering into [
90 (i) require that the tribe obtain the written approval of the Secretary of the United
91 States Department of the Interior or the secretary's designee to all aspects of the agreement[
93 (ii) obtain a legal opinion from a recognized bond counsel certifying:
94 (A) that the tribe has legal authority to:
95 (I) enter into the agreement; or
96 (II) issue the [
97 (B) that the pledge of [
98 security for the payments under the agreement[
99 legally enforceable pledge; and
100 (C) that the agreement[
101 court of general jurisdiction in the state; and
102 (iii) determine whether it has sufficient legal recourse against the tribe and against
106 (i) the [
107 the board; and
108 (ii) in the opinion of the board the ownership and operation of the [
109 the board is in the best interest of the state.
110 (b) In the ownership and operation of [
112 73-10-19 .
113 (c) (i) The board may enter into [
114 government, a political subdivision of the state, an Indian tribe, or a private corporation for
115 operation, maintenance, and administration of the project.
116 (ii) The board may pay the contracting agency a reasonable sum for operation,
117 maintenance, and administration of the project.
119 (i) enter into [
120 conveyed to a cooperating [
121 have been paid to the state in accordance with the terms of the construction [
123 (ii) make the water and power available [
124 in [
125 (A) that is conserved by [
126 (B) to which the state [
127 (iii) enter into [
129 citizens; and
130 (iv) assess a reasonable fee against [
132 (b) [
133 of the principal, interest, and maintenance of the project shall [
134 the Water Resources Conservation and Development Fund as established by Section 73-10-24 .
136 right used for [
137 (a) the water [
138 sponsor is conveyed to the project sponsor upon payment to the state of charges assessed
139 against the project in accordance with the terms of the construction [
141 (b) the board transfers [
142 being [
143 agency of the federal government, or a nonprofit water company.
145 that is best able to use the water [
146 Section 2. Section 73-10-27 is amended to read:
147 73-10-27. Project priorities -- Considerations -- Determinations of feasibility --
148 Bids and contracts -- Definitions -- Retainage.
149 (1) As used in this section:
150 (a) "Board" means the Board of Water Resources created in Section 73-10-1.5 .
151 (b) "Estimated cost" means the cost of the labor, material, and equipment necessary for
152 construction of the contemplated project.
153 (c) "Lowest responsible bidder" means a licensed contractor:
154 (i) who:
155 (A) submits the lowest bid; and
156 (B) furnishes a payment bond and a performance bond under Sections 14-1-18 and
157 63-56-504 ; and
158 (ii) whose bid:
159 (A) is in compliance with the invitation for a bid; and
160 (B) meets the plans and specifications.
162 financed with funds made available under Section 73-10-24 , the board shall give preference to
164 (a) [
166 (b) [
167 (c) [
168 (d) will yield revenue to the state within a reasonable time or will return a reasonable
169 rate of interest, based on financial feasibility; and
170 (e) [
173 benefit-to-cost ratio for each project, using a uniform standard of procedure for all projects.
174 (b) In considering whether a project should be built, the benefit-to-cost ratio for each
175 project shall be weighted based on the relative cost of the project.
176 (c) A project, when considered in total with all other projects constructed under this
177 chapter and still the subject of a repayment contract, may not cause the accumulative
178 benefit-to-cost ratio of the projects to be less than one to one.
180 (4) A project may not be built if the project is not:
181 (a) in the public interest, as determined by the board [
183 (b) adequately designed based on sound engineering and geologic considerations.
185 (5) In preparing a project [
188 (a) based on a competitive bid, award a contract for:
189 (i) a flood control project:
190 (A) involving a city or county; and
191 (B) costing in excess of $35,000[
192 (ii) the construction of a storage reservoir in excess of 100 acre-feet; or [
193 (iii) the construction of a hydroelectric generating facility[
195 (b) publish an advertisement for a competitive bid:
196 (i) at least once a week for three consecutive weeks in a newspaper with general
197 circulation in the state[
198 publication appearing at least five days before the schedule bid opening; and
199 (ii) indicating that the board:
200 (A) will award the contract to the lowest responsible bidder [
201 (B) reserves [
204 (c) readvertise the project in the manner specified in Subsection [
208 the project; and
210 upon in preparing [
211 the competitive bidding requirements of this section.
218 (6) If no satisfactory bid is received by the board upon the readvertisement of the
219 project in accordance with Subsection (5), the board may proceed to construct the project in
220 accordance with the plan and specifications used to calculate the estimated cost of the project.
223 and released as provided in Section 13-8-5 .
224 Section 3. Section 73-10-28 is amended to read:
225 73-10-28. Charges for use -- Interest.
228 (1) As used in this section, "board" means the Board of Water Resources created in
229 Section 73-10-1.5 .
230 (2) The board shall establish:
231 (a) a charge for the use of water, power, or a facility based on:
232 (i) a contractual agreement approved by the board [
233 a project owned by the state [
234 (ii) the ability of an individual project to return the investment to the state[
238 (b) an interest rate for the money the board lends to finance a project based on:
239 (i) market conditions;
240 (ii) the repayment ability of the project[
241 (iii) other factors considered relevant by the board.
Legislative Review Note
as of 1-23-08 5:36 PM