BP BHEAD INT H [atlas:bill]

AN ACT Relating to voter approval of city assumption of a water or sewer district; amending RCW 35.13A.020, 35.13A.030, and 35.13A.040; and adding a new section to chapter 35.13A RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 35.13A.020 and 1971 ex.s. c 95 s 2 are each amended to read as follows:

Whenever all of the territory of a water district or sewer district is included within the corporate boundaries of a city, ((~~and~~)) the city legislative body has elected by resolution or ordinance to assume jurisdiction thereof, and the commissioners have approved the acquisition in compliance with section 4 of this act, 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 shall become the property of such city 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.

Such city may by resolution of its legislative body, 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 obligation 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 August 9, 1971. 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 insure performance of the district's contractual obligations in the same manner and by the same means as if the territory of the district had not been included within the boundaries of a city.

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 election, the same 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 which 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. 2. RCW 35.13A.030 and 1971 ex.s. c 95 s 3 are each amended to read as follows:

Whenever a portion of a water district or sewer district equal to at least sixty percent of the area or sixty percent of the assessed valuation of the real property lying within such district, is included within the corporate boundaries of a city, the city may assume by ordinance the full and complete management and control of that portion of the entire district not included within another city, whereupon the provisions of RCW 35.13A.020 shall be operative; or the city may proceed directly under the provisions of RCW 35.13A.050. The city's assumption of management and control shall not occur unless the district commissioners shall so approve by resolution in compliance with section 4 of this act.

Sec. 3. RCW 35.13A.040 and 1971 ex.s. c 95 s 4 are each amended to read as follows:

Whenever the portion of a water or sewer district included within the corporate boundaries of a city is less than sixty percent of the area of the district and less than sixty percent of the assessed valuation of the real property within the district, the city may elect to proceed under the provisions of RCW 35.13A.050. The city's assumption of jurisdiction shall not occur unless the district commissioners shall so approve by resolution in compliance with section 4 of this act.

NEW SECTION. Sec. 4. A new section is added to chapter 35.13A RCW to read as follows:

No city may assume management, control, or jurisdiction of a water district's responsibilities, property, facilities, or equipment until the district commissioners determine by resolution that such assumption is in the public interest and conducive to the public health, welfare, and convenience and such resolution is ratified by the voters of the district. Any resolution under this section shall include the city's management plan that includes, but is not limited to, a provision guaranteeing that customers of the city water system who do not live within the city limits are treated equally with those who live within the city limits. If the district commissioners approve such a resolution, the commissioners shall submit the resolution to the voters of the water district at any general election or a special election to be called for such purpose. If a majority of the voters voting at such an election are in favor of the resolution, the commissioners shall so notify the city, and the city may proceed under RCW 35.13A.050.