SENATE BILL REPORT

SB 6661

As Reported By Senate Committee On:

Land Use & Planning, February 2, 2004

Title: An act relating to assumption by a code city with a population greater than one hundred thousand of a water-sewer district with fewer than two hundred fifty customers.

Brief Description: Allowing assumptions of water-sewer districts by code cities.

Sponsors: Senators Esser, T. Sheldon and Mulliken.

Brief History:

Committee Activity: Land Use & Planning: 2/2/04 [DP].

SENATE COMMITTEE ON LAND USE & PLANNING

Majority Report: Do pass.

      Signed by Senators Mulliken, Chair; Kline, Morton, Murray and T. Sheldon.

Staff: Andrea McNamara (786-7483)

Background: Current assumption law for water-sewer districts provides, among other things, procedures for initiating and completing an assumption, assigning the respective rights, powers, duties, and obligations of the parties by contract, and dissolution of the district.

Under current law, a city may assume all or part of a water-sewer district that lies at least partly within the city's boundaries. If more than 60 percent of the district's area or assessed value lies within the city's boundaries, the city may assume up to the entire district by ordinance. If less than 60 percent of the district's area and less than 60 percent of its value lies within the city boundaries, the city may assume at most the portion of the district that lies within that city's boundaries, and the district residents must vote to approve whether the city is permitted to operate and maintain the entire district.

No provisions currently exist that would allow a city to assume all or part of a water-sewer district when none of the district lies within the city.

Summary of Bill: The assumption of a water-sewer district with fewer than 250 customers by a code city with more than 100,000 people is authorized under specified circumstances until December 31, 2006, even when none of the district is within the territory of the city.

Existing provisions governing the assumption of water-sewer districts, the contracts that may be executed regarding respective rights, power, duties, and obligations, and the dissolution of the district apply to these assumptions.

The contract and assumption must be approved both by a resolution of the district's board of commissioners and by an ordinance of the city council.

If the water-sewer district has no debts or monetary obligations on the date of the assumption, the city must use any of the district's surplus funds only for water services delivered to and water facilities constructed in the former territory of the district, unless the contract provides otherwise.

Appropriation: None.

Fiscal Note: Not requested.

Effective Date: Ninety days after adjournment of session in which bill is passed.

Testimony For: This is a narrowly tailored approach to help out a voluntary assumption situation with a willing buyer (City of Bellevue) and a willing seller (Yarrow Point, King County Water District No. 1) that is not covered by existing law.

Testimony Against: None.

Testified: Sen. Luke Esser, prime sponsor.