CO Code § 32-1-1006 (2021)
2021 Colorado Code|Title 32 - Special Districts|Article 1 - Special District Provisions|Part 10 - General Powers|§ 32-1-1006. Sanitation, Water and Sanitation, or Water Districts - Additional Powers - Special Provisions

  In addition to the powers specified in section 32-1-1001, the board of any sanitation, water and sanitation, or water district has the following powers for and on behalf of such district:     To compel the owner of premises located within the boundaries of any such district, whenever necessary for the protection of public health, to connect such owner's premises, in accordance with the state plumbing code, to the sewer, water and sewer, or water lines, as applicable, of such district within twenty days after written notice is sent by registered mail, if such sewer or water line is within four hundred feet of such premises. If such connection is not begun within twenty days, the board may thereafter connect the premises to the sewer, water and sewer, or water system, as applicable, of such district and shall have a perpetual lien on and against the premises for the cost of making the connection, and any such lien may be foreclosed in the same manner as provided by the laws of this state for the foreclosure of mechanics' liens. (a) (I) To compel the owner of premises located within the boundaries of any such district, whenever necessary for the protection of public health, to connect such owner's premises, in accordance with the state plumbing code, to the sewer, water and sewer, or water lines, as applicable, of such district within twenty days after written notice is sent by registered mail, if such sewer or water line is within four hundred feet of such premises. If such connection is not begun within twenty days, the board may thereafter connect the premises to the sewer, water and sewer, or water system, as applicable, of such district and shall have a perpetual lien on and against the premises for the cost of making the connection, and any such lien may be foreclosed in the same manner as provided by the laws of this state for the foreclosure of mechanics' liens.    Nothing in subparagraph (I) of this paragraph (a) authorizes the board of any sanitation, water and sanitation, or water district to compel any connection with the sewer, water and sewer, or water lines, as applicable, of such district, by any owner of premises located outside of such district who utilizes private or nongovernmental persons, services, systems, or facilities including an on-site wastewater treatment system, for the provision of sewer, water and sewer, or water lines to such premises.         To divide such district into areas according to the water or sanitation services furnished or to be furnished therein. The board has the power to fix different rates, fees, tolls, or charges and different rates of levy for tax purposes against all of the taxable property within the several areas of such district according to the services and facilities furnished or to be furnished therein within a reasonable time. In addition, if the board finds it infeasible, impracticable, or undesirable for the good of the entire district to extend water or sewer lines and facilities to any part of such district, the board may designate by resolution such area not to be served with water or sanitation service, but such area designated not to be served shall be at least ten acres in extent. (b) (I) To divide such district into areas according to the water or sanitation services furnished or to be furnished therein. The board has the power to fix different rates, fees, tolls, or charges and different rates of levy for tax purposes against all of the taxable property within the several areas of such district according to the services and facilities furnished or to be furnished therein within a reasonable time. In addition, if the board finds it infeasible, impracticable, or undesirable for the good of the entire district to extend water or sewer lines and facilities to any part of such district, the board may designate by resolution such area not to be served with water or sanitation service, but such area designated not to be served shall be at least ten acres in extent.    If the board divides a special district into areas according to the facilities and services furnished or to be furnished, to determine the amount of money necessary to be raised by taxation within each such area, taking into consideration other sources of revenue within the area, and to fix a levy which, when levied upon every dollar of the valuation for assessment of taxable property within such area of the special district, will supply funds for the payments of the costs of acquiring, operating, and maintaining the services or facilities furnished in such area and will pay promptly, when due, the principal or interest on bonds or other obligations issued and its pro rata share of the general operating expenses of the district.         To establish, construct, operate, and maintain works and facilities across or along any public street or highway, and in, upon, or over any vacant public lands, which public lands are the property of the state of Colorado, and across any stream of water or watercourse. The board of county commissioners of any county in which any public streets or highways are situated which are to be cut into or excavated in the construction or maintenance of any such facilities has authority to adopt by resolution such rules as it deems necessary in regard to any such excavations and may require the payment of reasonable fees by such district as may be fixed by the board of county commissioners to insure proper restoration of such streets or highways. (c) (I) To establish, construct, operate, and maintain works and facilities across or along any public street or highway, and in, upon, or over any vacant public lands, which public lands are the property of the state of Colorado, and across any stream of water or watercourse. The board of county commissioners of any county in which any public streets or highways are situated which are to be cut into or excavated in the construction or maintenance of any such facilities has authority to adopt by resolution such rules as it deems necessary in regard to any such excavations and may require the payment of reasonable fees by such district as may be fixed by the board of county commissioners to insure proper restoration of such streets or highways.    When such fee is paid, it is the responsibility of the board of county commissioners to promptly restore such street or highway to its former state. If the fee is not fixed and paid, such district shall promptly restore any such street or highway to its former state of usefulness as nearly as may be and shall not use the same in such manner as to completely or unnecessarily impair the usefulness thereof.    This grant of authority is not and shall not be construed as a limitation upon the existing powers of any municipality to regulate works and facilities in public streets or highways.       To assess reasonable penalties for delinquency in the payment of rates, fees, tolls, or charges or for any violations of the rules and regulations of the special district together with interest on delinquencies from any date due at not more than one percent per month or fraction thereof, and to shut off or discontinue water or sanitation service for such delinquencies and delinquencies in the payment of taxes or for any violation of the rules and regulations of the special district, and to provide for the connection with and the disconnection from the facilities of such district;    To acquire water rights and construct and operate lines and facilities within and without the district;    To have and exercise the power of eminent domain and dominant eminent domain and, in the manner provided by article 1 of title 38, C.R.S., to take any property necessary to the exercise of the powers granted, both within and without the special district, except for the acquisition of water rights;    To fix and from time to time to increase or decrease tap fees. The board may pledge such revenue for the payment of any indebtedness of the special district.      To assess availability of service or facilities charges subject to the following provisions: (h) (I) To assess availability of service or facilities charges subject to the following provisions:   No fee, rate, toll, or charge for connection to or use of services or facilities of such district shall be considered an availability of service or facilities charge.    Any availability of service or facilities charges shall be made only when a notice, stating that such availability of service or facilities charges are being considered and stating the date, time, and place of the meeting at which they are to be considered, has been mailed by first-class United States mail, postage prepaid, to each taxpaying elector of such district at his last-known address, as disclosed by the tax records of the county or counties within which such district is located.    Availability of service or facilities charges shall be assessed solely for the purpose of paying principal of and interest on any outstanding indebtedness or bonds of such district and shall not be used to pay any operation or maintenance expenses of, nor capital improvements within or for, such district.    Availability of service or facilities charges shall be assessed only where water, sewer, or both water and sewer lines are installed and ready for connection within one hundred feet of any property line of the residential lot or residential lot equivalent to be assessed, but to one or both of which line or lines the particular lot or lot equivalent to be assessed is not connected.    Availability of service or facilities charges shall be a percentage, not to exceed fifty percent, of the fees, rates, tolls, or charges for use of services or facilities of such district, said percentage to be determined by the board. If the fees, rates, tolls, or charges for the use of services or facilities vary dependent upon quantities of usage, the availability of service or facilities charges shall be a percentage, not to exceed fifty percent, of the average usage derived by dividing the total usage quantity for such district for the last preceding fiscal year by the total number of users in such district, said percentage to be determined by the board. In addition the aggregate amount of revenue budgeted and expected to be derived from availability of service or facilities charges shall not exceed the total amount of principal of and interest on the outstanding indebtedness or bonds of such district for such service currently budgeted for and to mature or accrue during the annual period within which such availability of service or facilities charges are payable, less the amount budgeted and expected to be produced during such period by the mill levy allocable to such service then being budgeted for and levied and assessed by such district.       Notwithstanding the provisions of this paragraph (h), any metropolitan district providing water or sanitation or water and sanitation services which, prior to July 1, 1981, has imposed an availability of service charge pursuant to section 31-35-402 (1)(f), C.R.S., and has pledged such availability of service charges to the payment of outstanding bonds may continue such charge until such bonds are retired. (1.5)   No water and sanitation district or water district shall furnish water service or water supply to any property located outside of the district's boundaries if such property is within the legal boundaries of another special district that has been organized with the power to furnish water facilities or water services, unless:   In compliance with the provisions of this title and with the consent of the special district within whose boundaries such property is located, such property is included within the boundaries of the district seeking to provide water service or water supply; or    After April 15, 1996, in lieu of inclusion pursuant to subparagraph (I) of this paragraph (a), the special district within whose boundaries such property is located gives consent to the provision of such water service or water supply.       In the absence of such inclusion or consent, no water and sanitation district or water district shall have any right or power, however derived, to provide water service or water supply to any property outside of that district's boundaries and within the boundaries of another special district that has been organized with the power to furnish water facilities or water services.    As used in this subsection (1.5), “water facilities” has the same meaning as in section 31-35-401 (7), C.R.S.               A special district organized for water or sanitation or for water and sanitation purposes, upon the filing of a resolution of the board with the court and after an election held pursuant to paragraph (b) of this subsection (2), may become a water and sanitation or metropolitan district, respectively, possessing all the rights, powers, and authority of such a district if there is not then pending a petition for the organization of a water and sanitation or metropolitan district, partially or wholly within the water or sanitation or water and sanitation district, and if a metropolitan district does not already exist wholly or partly within the boundaries of the sanitation or water or water and sanitation district.      After a hearing on the resolution, the court shall direct that the question of conversion of the special district be submitted to the eligible electors of the special district and shall appoint the secretary as the designated election official responsible for the calling and conducting of the election according to article 13.5 of title 1. (b) (I) After a hearing on the resolution, the court shall direct that the question of conversion of the special district be submitted to the eligible electors of the special district and shall appoint the secretary as the designated election official responsible for the calling and conducting of the election according to article 13.5 of title 1.    If a majority of the votes cast at the election are in favor of conversion and the court determines the election was held in accordance with article 13.5 of title 1, the court shall enter an order including any conditions so prescribed and converting the special district.          Taxpaying electors of any area of five acres or more within or without a special district furnishing sanitation or water services or facilities or sanitation and water services or facilities or any area regardless of size immediately contiguous to such district may agree among themselves for the construction of water or sanitation facilities or water and sanitation facilities within such area, and the board of such district has the authority to enter into a contract with such taxpaying electors to allow any portion of revenue derived from water or sanitation charges and fees from such area or from special charges assessed against users of such sanitation or water facilities to be applied on the payment of the cost of the construction of such water or sanitation facilities. Such payment shall be made without interest and upon such terms as the parties may agree upon, but payment shall not extend over fifteen years. Such contracts shall not be included within the dollar limitation of debts provided by this article and shall not require approval of the electors of the special district.    Any dispute involving a special district furnishing sanitation or water services or facilities or sanitation and water services or facilities and any customer of such district in which physical damage to the property of the customer in the amount of ten thousand dollars or less is alleged to have been caused by the actions of such special district may be submitted with the consent of the district and the customer to alternative dispute resolution procedures pursuant to the “Dispute Resolution Act”, part 3 of article 22 of title 13, C.R.S., if such procedures are available in the judicial district where a complaint in such dispute would be filed. Notwithstanding any other provision of law to the contrary, once a party to such dispute has properly submitted the dispute to alternative dispute resolution procedures pursuant to this section, neither party shall remove the dispute from the alternative dispute resolution forum without the consent of the other party.    The governing body of each special district providing water or sanitation services which implements an industrial wastewater pretreatment program pursuant to the federal act, as defined in section 25-8-103 (8), C.R.S., may seek such relief and impose such penalties as are required by such federal act and its implementing regulations for such programs.    The board of a sanitation district or water and sanitation district may provide collection and transportation of solid waste, including residential waste services as defined in section 30-15-401 (7.5)(d), for and on behalf of the district, including but not limited to the financing thereof, by either contracting with a third-party service provider pursuant to this section or providing such waste services pursuant to section 30-15-401 (7.5) and (7.7). The board may impose fees, rates, penalties, or charges for such service pursuant to section 32-1-1001 (1)(j)(I), and the board may require that the district residents use or pay user charges for residential waste services. If the board contracts with a third-party service provider, the board shall publish a notice for bids or a request for proposals no less than thirty days prior to awarding the contract. If the board decides to proceed with its own proposal to directly provide residential waste services rather than enter into a contract with a third-party service provider, the board shall request proposals to provide such services within a designated area of the district by publishing notice and awarding a contract in accordance with the procedures specified in section 30-15-401 (7.5)(c) and (7.7). The board shall not award a contract that exceeds three years in duration. The board may not provide collection and transportation of solid waste services within the boundaries of any municipality, city and county, or county that is providing solid waste services without the consent of the municipality, city and county, or county.    The board of any sanitation district or water and sanitation district may provide solid waste disposal facilities, including but not limited to the financing thereof, for and on behalf of such district. Any service or facility pursuant to this subsection (7) shall be subject to part 1 of article 20 of title 30, C.R.S.      A water district or a water and sanitation district may provide park and recreation improvements and services in connection with a water reservoir owned by the district and adjacent land if such improvements and services are not already being provided by another entity with respect to the reservoir and adjacent land.    Once the board of a water district or a water and sanitation district adopts a resolution to provide improvements and services pursuant to this subsection (8), no other entity may provide park and recreation improvements and services with respect to the reservoir and adjacent land without the consent of the board.    The district may exercise any powers that a park and recreation district has in connection with the provision of park and recreation improvements and services, including imposing rates, fees, and charges in connection with the improvements and services. The district may use any district revenues to provide the improvements and services. The provision of improvements and services pursuant to this subsection (8) is not a material modification of the service plan of the district.        History. Source: L. 81: Entire article R&RE, p. 1599, § 1, effective July 1. L. 83: (1)(h)(I)(B) amended, p. 1279, § 1, effective May 25; (2) amended, p. 1280, § 1, effective May 26. L. 89: (4) added, p. 1315, § 1, effective March 15. L. 90: (5) added, p. 1346, § 8, effective July 1. L. 92: (2)(b) amended, p. 888, § 128, effective January 1, 1993. L. 94: (1)(a) amended, p. 593, § 1, effective April 7. L. 96: (1.5) added, p. 309, § 6, effective April 15. L. 98: (6) and (7) added, p. 1070, § 3, effective June 1. L. 2005: (8) added, p. 151, § 1, effective April 5. L. 2012: (1)(a)(II) amended,(HB 12-1126), ch. 137, p. 499, § 8, effective August 8. L. 2016: (2)(b) amended,(SB 16-189), ch. 210, p. 789, § 95, effective June 6. L. 2020: (6) amended,(HB 20-1074), ch. 48, p. 165, § 1, effective September 14. L. 2021: (2)(b) amended,(SB 21-160), ch. 133, p. 543, § 17, effective September 7.    Editor's note:   The provisions of this section are similar to provisions of several former sections as they existed prior to 1981. For a detailed comparison, see the comparative tables located in the back of the index.   Cross references:   For foreclosure of mechanics' liens, as provided in subsection (1)(a), see article 22 of title 38.   ANNOTATION   Annotator's note. The following annotations include cases decided under former provision similar to this section.   This section contains no procedure for “reorganization”, and in the absence of any legislatively created procedure for such, the court will not superimpose a judicially crafted “reorganization” procedure. Upper Bear Creek v. Bd. of County Comm'rs, 715 P.2d 799 (Colo. 1986).   Annexation by a city of a portion of territory owned by a quasi-municipal water district corporation does not deprive the district of its assets in the annexed territory, and does not prevent the district from continuing its service in the annexed territory. Valley Water Dist. v. City of Littleton, 32 Colo. App. 286, 512 P.2d 644 (1973).   Police power to protect citizens prevails over proprietary powers of district. As between the proprietary powers given to a district organized under former § 32-4-101 and the police power to protect its citizens and streets given to a city by § 31-15-702 , the police power prevails. People v. Haase, 198 Colo. 47 , 596 P.2d 392 (1979).   Street cut permit may be required by municipality. A municipality acting reasonably has the right to require a water and sanitation district, or those acting in its behalf, to obtain a permit to effect a street cut to repair the district's water lines located below the surface of the street. People v. Haase, 198 Colo. 47 , 596 P.2d 392 (1979).   Contract between a water district to sell and deliver water to a city outside the district's boundaries in perpetuity was not null and void since the state grants the right to appropriators to the use of water in perpetuity. Cherokee Water Dist. v. Colo. Springs, 184 Colo. 161 , 519 P.2d 339 (1974).   No authority to abrogate price portion of contract. Where a water district's contract involves a sale and delivery of water outside the boundaries of the district, the district does not have authority to abrogate the price portion of the contract. Cherokee Water Dist. v. Colo. Springs, 184 Colo. 161 , 519 P.2d 339 (1974).   District acted within its statutory authority in classifying property for purposes of assessing standby fees in accordance to the type and extent of services to be furnished to the particular parcels of property. Valley Hous. and Development Corp. v. Ridges Metro. Dist., 753 P.2d 801 (Colo. App. 1988).   Tap fees are installation “charges” for making sewer services available to the real estate, and those “charges” constitute a perpetual lien against the property served. North Wash. Water & San. Dist. v. Majestic Sav. & Loan Ass'n, 42 Colo. App. 158, 594 P.2d 599 (1979).   District's lien given priority. When an improvement effected by the water and sanitation district advances the interest of the public health, safety and welfare and the public policy of this state, the district's lien must be given priority over the private lien of a private lender. Wasson v. Hogenson, 196 Colo. 183 , 583 P.2d 914 (1978).   Priority over existing security interest not violative of due process. The creation of a perpetual lien for water and sewer tap fees and the priority given it does not violate the due process rights of those persons holding a security interest perfected before imposition of the lien. North Wash. Water & San. Dist. v. Majestic Sav. & Loan Ass'n, 42 Colo. App. 158, 594 P.2d 599 (1979).   Lien statement not necessary. A lien statement is necessary in order to perfect a mechanic's lien; however, where the charges are “in the nature of taxes”, the lien is already perfected and a statement is not required. North Wash. Water & San. Dist. v. Majestic Sav. & Loan Ass'n, 42 Colo. App. 158, 594 P.2d 599 (1979); Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).   District empowered to levy taxes without according proportional benefit. The district's board of directors has the power to levy general ad valorem taxes upon property within the district without according a benefit in proportion to the tax burden imposed. Millis v. Bd. of County Comm'rs, 626 P.2d 652 (Colo. 1981).   Taxation of property according to its value constitutional. The fact that property may be taxed according to its value regardless of whether the owners choose to participate in the proposed water system does not have any constitutional significance. Millis v. Bd. of County Comm'rs, 626 P.2d 652 (Colo. 1981).   Authorization of imposition of disparate tax levies upon real property in the same district in this statute does not violate the uniform taxation provision of § 3 of art. X of the state constitution.Senior Corp. v. Bd. of Assessment Appeals, 702 P.2d 732 (Colo. 1985) (decided under constitutional provision in effect prior to 1982 amendment).   Availability charges may be assessed against lots which have no road or sewer line access, provided that water line is installed and ready for connection within 100 feet of the properties, where owner of lots failed to overcome statutory presumption that benefit received by installation of lines equaled or exceeded assessment for sewer line. Crested Butte South Metro. Dist. v. Dyke, 768 P.2d 1248 (Colo. App. 1988).   District has the authority under this section to compel owners of certain premises to connect to the district's water and sewer lines whenever necessary for the protection of public health. Unless a governing body acts arbitrarily or capriciously, the determination that an ordinance is necessary for preservation of health and safety is binding upon a reviewing court. Risen v. Cucharas San. & Water Dist., 32 P.3d 596 (Colo. App. 2001).   Board may collect a tap fee, penalties, attorney fees, and interest in addition to the costs of making a forced connection. Risen v. Cucharas San. & Water Dist., 32 P.3d 596 (Colo. App. 2001).   A metropolitan district which imposed availability of service charges prior to July 1, 1981, to repay water and sewer bonds may continue to impose such charges to retire the outstanding indebtedness notwithstanding the requirement that such charges not exceed fifty percent of the charges for the use of the services of the district. Durango W. Metro. D. 1 v. HKS J. Venture, 793 P.2d 661 (Colo. App. 1990).   The term “dominant eminent domain”, under § 32-9-103 (6) , means that the power of eminent domain is superior to that of other specific governmental subdivisions of the state, but not the state itself. Absent a contrary definition in the special district provisions, the court assumed that the general assembly intended that the term in subsection (1)(f) has a similar meaning, and, therefore, town and water and sanitation district were not authorized to condemn state-owned property to determine feasibility of recreation and water storage project. Town of Parker v. Colo. Div. of Parks, 860 P.2d 584 (Colo. App. 1993).   A special district's lease purchase agreement cannot be considered indebtedness within the meaning of subsection (1)(h)(I)(C) when the lease specifies that it does not constitute a debt or indebtedness, and, therefore, it may not be used to assess and calculate availability of service or facility charges. Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).   This section and § 32-1-1603 should be read together because both are part of the act that sets forth a comprehensive regulatory scheme for special districts. By using the words “mill levy allocable to such service”, subsection (1)(h)(I)(E) refers to the process described in § 32-1-1603 that requires that mill levies be certified to the board of county commissioners separately for the funding requirement of general obligation debt and for other budgetary requirements of the special district. Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).   Pursuant to subsection (1)(h)(I)(E), the indebtedness to be budgeted by a special district is the indebtedness due to accrue during the next year. Although the budget itself may later change, the calculation of availability of service or facility charges is to be based on the indebtedness then currently budgeted. Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).   The repeated time references in the statute are construed to mean that once the mill levy has been certified and allocated to debt service and a budget is in place for the indebtedness or bonds that will mature during the next year, the availability of service or facility charges budgeted at that time and expected to be derived shall not exceed the amount of that indebtedness or bonds, less the amount of the mill levy that has been allocated to debt service as certified pursuant to § 32-1-1603 . Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).   This section indicates a legislative intent to limit the availability of service or facility charges to a precise annual statutory calculation, not to expand the charges beyond those encompassed by the plain language of the statute, and to provide only for such portions of a district's principal and interest payments on outstanding indebtedness or bonds that are not otherwise covered in the certified mill levy. Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).   The possibility that a district's budget may be amended during any given fiscal year pursuant to § 29-1-109 is immaterial to the assessment and calculation of a district's total availability of service or facility charge for the year at issue. Nothing in the language of this section suggests that the calculation may be revised when the budget changes or when other financial changes take place in the district. In addition, the total yearly calculation may not be recalculated based on an amended budget that is adopted later. Skyland Metro. Dist. v. Mtn. W. Enter., LLC, 184 P.3d 106 (Colo. App. 2007).