6505-S AAS 2/7/96
SSB 6505 - S AMD S5138.1 - 042
By Senator McDonald
ADOPTED 2/7/96
On page 5, after line 22, insert the following:
"NEW SECTION. Sec. 5. A new section is added to chapter 35.13A RCW to read as follows:
Whenever the board of commissioners of a water district or sewer district has determined by resolution that it is in the best interests of the district for a city to assume jurisdiction of the district, whether or not any of the territory or assessed valuation of the district is included within the corporate boundaries of the city, and the city legislative body has determined to assume jurisdiction of the district, the district and the city shall enter into a contract pursuant to RCW 35.13A.070, acceptable to both the district and the city, to carry out such assumption. The contract shall provide for the transfer to the city of all real and personal property, franchises, rights, assets, taxes levied but not collected for the district for other than indebtedness, water and sewer lines, and all other facilities and equipment of the district, which transfers shall be subject to all financial, statutory, or contractual obligations of the district for the security or performance of which such property may have been pledged. Such city in addition to its other powers, shall have the power to manage, control, maintain, and operate such property, facilities, and equipment and to fix and collect service and other charges from owners and occupants of properties so served by the city, subject, however, to any outstanding indebtedness, bonded or otherwise, of the district payable from taxes, assessments, or revenues of any kind or nature and to any other contractual obligations of the district including but not limited to the provisions of the contract entered into by such city and the district pursuant to RCW 35.13A.070.
Pursuant to such contract, the city may assume the obligation of paying such district indebtedness and of levying and of collecting or causing to be collected such district taxes, assessments, and utility rates and charges of any kind or nature to pay and secure the payment of such indebtedness, according to all of the terms, conditions, and covenants incident to such indebtedness, and shall assume and perform all other outstanding contractual obligations of the district in accordance with all of its terms, conditions, and covenants. No such assumption shall be deemed to impair the obligation of any indebtedness or other contractual obligation entered into after the effective date of this act. During the period until the outstanding indebtedness of the district has been discharged, the territory of the district and the owners and occupants of property therein, shall continue to be liable for its and their proportionate share of such indebtedness, including any outstanding assessments levied within any local improvement district or utility local improvement district thereof. The city shall assume the obligation of causing the payment of such indebtedness, collecting such taxes, assessments, and charges, and observing and performing the other district contractual obligations. The legislative body of the city shall act as the officers of the district for the purpose of certifying the amount of any property tax to be levied and collected therein, and causing service and other charges and assessments to be collected from such property or owners or occupants thereof, enforcing such collection, and performing all other acts necessary to ensure performance of the district's contractual obligations.
When a city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service and other charges have accrued for such purpose but have not been collected by the district prior to such assumption, the property taxes or assessments when collected shall belong and be paid to the city and be used by such city so far as necessary for payment of the indebtedness of the district existing and unpaid on the date such city elects to assume the indebtedness. Any funds received by the city that have been collected for the purpose of paying any bonded or other indebtedness of the district, shall be used for the purpose for which they were collected and for no other purpose. Any outstanding indebtedness shall be paid as provided in the bond covenants. All funds of the district on deposit with the county treasurer at the time of title transfer shall be used by the city solely for the benefit of the utility and shall not be transferred to or used for the benefit of the city's general fund.
Sec. 6. RCW 35.13A.070 and 1971 ex.s. c 95 s 7 are each amended to read as follows:
Notwithstanding any
provision of this chapter to the contrary, one or more cities and one or more
water districts or sewer districts may, through their legislative authorities,
authorize a contract with respect to the rights, powers, duties, and
obligation of such cities, or districts with regard to the use and ownership of
property, the providing of services, the maintenance and operation of
facilities, allocation of cost, financing, and construction of new
facilities, application and use of assets, disposition of liabilities and
debts, the performance of contractual obligations, and any other matters
arising out of the inclusion, in whole or in part, of the district or districts
within any city or cities or the assumption by a city of jurisdiction of a
district pursuant to section 5 of this act. The contract may provide for
the furnishing of services by any party thereto and the use of city or district
facilities or real estate for such purpose, and may also provide for the time
during which such district or districts may continue to exercise any rights,
privileges, powers, and functions provided by law for such district or
districts as if the district or districts or portions thereof were not included
within a city or subject to an assumption of jurisdiction pursuant to
section 5 of this act, including but not by way of limitation, the right to
promulgate rules and regulations, to levy and collect special assessments,
rates, charges, service charges, and connection fees, ((and)) to
adopt and carry out the provisions of a comprehensive plan, and amendments
thereto, for a system of improvements, and to issue general obligation
bonds or revenue bonds in the manner provided by law. The contract may provide
for the transfer to a city of district facilities, property, rights, and
powers as provided in RCW 35.13A.030 ((and)), 35.13A.050, and
section 5 of this act, whether or not sixty percent or any of the
area or assessed valuation of real estate lying within the district or
districts is included within such city. The contract may provide that any
party thereto may authorize, issue, and sell revenue bonds to provide
funds for new water or sewer improvements or to refund any water revenue, sewer
revenue, or combined water and sewer revenue bonds outstanding of any
city((,)) or district ((which)) that is a party to such
contract if such refunding is deemed necessary, providing such refunding will
not increase interest costs. The contract may provide that any party thereto
may authorize and issue, in the manner provided by law, general obligation or
revenue bonds of like amounts, terms, conditions, and covenants as the
outstanding bonds of any other party to the contract, and such new bonds may be
substituted or exchanged for such outstanding bonds: PROVIDED, That no such
exchange or substitution shall be effected in such a manner as to impair the
obligation or security of any such outstanding bonds.
Sec. 7. RCW 35.13A.080 and 1971 ex.s. c 95 s 8 are each amended to read as follows:
In any of the cases
provided for in RCW 35.13A.020, 35.13A.030, ((and)) 35.13A.050, and
section 5 of this act, and notwithstanding any other method of dissolution
provided by law, dissolution proceedings may be initiated by either the city or
the district, or both, when the legislative body of the city and the governing
body of the district agree to, and petition for, dissolution of the district.
The petition for
dissolution shall be signed by the chief administrative officer of the city and
the district, upon authorization of the legislative body of the city and the
governing body of the district((,)) respectively, and such
petition shall be presented to the superior court of the county in which the
city is situated.
If the petition is thus authorized by both the city and district, and title to the property, facilities, and equipment of the district has passed to the city pursuant to action taken under this chapter, all indebtedness and local improvement district or utility local improvement district assessments of the district have been discharged or assumed by and transferred to the city, and the petition contains a statement of the distribution of assets and liabilities mutually agreed upon by the city and the district and a copy of the agreement between such city and the district is attached thereto, a hearing shall not be required and the court shall, if the interests of all interested parties have been protected, enter an order dissolving the district.
In any of the cases
provided for in RCW 35.13A.020 ((and)), 35.13A.030, and
section 5 of this act, if the petition for an order of dissolution is
signed on behalf of the city alone or the district alone, or there is no mutual
agreement on the distribution of assets and liabilities, the superior court
shall enter an order fixing a hearing date not less than sixty days from the
day the petition is filed, and the clerk of the court of the county shall give
notice of such hearing by publication in a newspaper of general circulation in
the district once a week for three successive weeks and by posting in three
public places in the district at least twenty-one days before the hearing. The
notice shall set forth the filing of the petition, its purposes, and the date
and place of hearing thereon.
After the hearing the court shall enter its order with respect to the dissolution of the district. If the court finds that such district should be dissolved and the functions performed by the city, the court shall provide for the transfer of assets and liabilities to the city. The court may provide for the dissolution of the district upon such conditions as the court may deem appropriate. A certified copy of the court order dissolving the district shall be filed with the county auditor. If the court does not dissolve the district, it shall state the reasons for declining to do so."
Renumber the remaining sections consecutively and correct any internal references accordingly.
SSB 6505 - S AMD S5138.1 - 042
By Senator McDonald
ADOPTED 2/7/95
On page 1, line 2 of the title, after "35.07.040," insert "35.13A.070, 35.13A.080,"
On page 1, line 3 of the title, after "35.23 RCW;" insert "adding a new section to chapter 35.13A RCW;"
SSB 6505 - S AMD - 041
BySenator Hale
ADOPTED 2/7/96
On page 5, beginning at line 23, strike all of Section 5 and renumber the remaining sections consecutively.
SSB 6505 - S AMD - 041
BySenator Hale
ADOPTED 2/7/96
On page 1, line 2, strike "35.21.710"
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