AN
ACT Relating to local government; amending RCW 35.13A.070 and 35.13A.080;
adding a new section to chapter 35.13A RCW; and adding new sections to chapter
35.51 RCW.
BE IT ENACTED BY THE
LEGISLATURE OF THE STATE OF WASHINGTON:
NEW
SECTION. Sec. 1. A
new section is added to chapter 35.13A RCW to read as follows:
The
board of commissioners of a water-sewer district, with fewer than one hundred
twenty customers on the effective date of this act, may by resolution declare
that it is in the best interests of the district for a city, with a population
greater than one hundred thousand on the effective date of this act, to assume
jurisdiction of the district. None of the territory or assessed valuation of
the district need be included within the corporate boundaries of the city. If
the city legislative body agrees to assume jurisdiction of the district, the
district and the city shall enter into a contract under RCW 35.13A.070,
acceptable to both the district and the city, to carry out the assumption. The
contract must 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. The transfers are subject to all
financial, statutory, or contractual obligations of the district for the
security or performance of which the property may have been pledged. The city
may manage, control, maintain, and operate the property, facilities, and
equipment and fix and collect service and other charges from owners and
occupants of properties so served by the city. However, the actions of the
city are subject 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 contract entered into by the city and the district under RCW 35.13A.070.
Under
the contract, the city may assume the obligation of paying the district
indebtedness and of levying and collecting or causing to be collected the
district taxes, assessments, and utility rates and charges of any kind or
nature to pay and secure the payment of the indebtedness, according to all
terms, conditions, and covenants incident to the indebtedness. The city shall
assume and perform all other outstanding contractual obligations of the
district in accordance with all of their terms, conditions, and covenants. The
assumption does not impair the obligation of any indebtedness or other contractual
obligation entered into after the effective date of this act. Until the
outstanding indebtedness of the district has been discharged, the territory of
the district and the owners and occupants of property in it, continue to be
liable for its and their proportionate share of the indebtedness, including
outstanding assessments levied by a local improvement district or utility local
improvement district within the water-sewer district. The city shall assume
the obligation of paying the indebtedness, collecting the 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 in the district, and causing service and other charges and
assessments to be collected from the property or owners or occupants of it,
enforcing the collection, and performing all other acts necessary to insure
performance of the district's contractual obligations.
When
the city assumes the obligation of paying the outstanding indebtedness, and if
property taxes or assessments have been levied and service or other charges
have accrued for that purpose but have not been collected by the district
before the assumption, the taxes, assessments, and charges collected belong and
must be paid to the city and used by the city so far as necessary for payment
of indebtedness of the district that existed and was unpaid on the date the
city elected to assume the indebtedness. Funds received by the city that have
been collected for the purpose of paying bonded or other indebtedness of the
district must be used for the purpose for which they were collected and for no
other purpose. Outstanding indebtedness must be paid as provided in the bond
covenants. The city shall use funds of the district on deposit with the county
treasurer at the time of title transfer solely for the benefit of the utility,
and shall not transfer them to or use them for the benefit of the city's
general fund.
This
section expires December 31, 1998.
Sec.
2. 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 the
city of jurisdiction of a district under section 1 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 were not subject to an assumption
of jurisdiction under section 1 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 1 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 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)).
However, 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.
3. 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 1 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 1 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.
NEW
SECTION. Sec. 4. A
new section is added to chapter 35.51 RCW to read as follows:
Assessments
for local improvements in a local improvement district created by a
municipality may be pledged and applied when collected to the payment of its
obligations under a loan agreement entered into under chapter 39.69 RCW to pay
costs of improvements in such a local improvement district.
NEW
SECTION. Sec. 5. A
new section is added to chapter 35.51 RCW to read as follows:
The authority granted by section 4 of this act is supplemental and
in addition to the authority granted by Title 35 RCW and to any other authority
granted to cities, towns, or municipal corporations to levy, pledge, and apply
special assessments.
