BILL REQ. #:  H-3545.2 

Read first time 01/16/2004.   Referred to Committee on Local Government.

     AN ACT Relating to annexation; providing authorization for cities that are required to plan under the growth management act to annex areas within their urban growth boundary; establishing a process to facilitate annexations between cities and counties; amending RCW 36.93.105; adding a new section to chapter 35.13 RCW; and adding new sections to chapter 39.34 RCW.

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

Sec. 1   RCW 36.93.105 and 1999 c 153 s 46 are each amended to read as follows:
     The following actions ((shall)) are not ((be)) subject to ((potential)) review by a boundary review board:
     (1) Annexations of territory to a water-sewer district pursuant to RCW 36.94.410 through 36.94.440;
     (2) Revisions of city or town boundaries pursuant to RCW 35.21.790 or 35A.21.210;
     (3) Adjustments to city or town boundaries pursuant to RCW 35.13.340; ((and))
     (4) Adjustments to city and town boundaries pursuant to RCW 35.13.300 through 35.13.330; and
     (5) Annexations under the provisions of chapters 35.13 and 35A.14 RCW.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.13 RCW to read as follows:
     Proceedings for the annexation of territory pursuant to this section and section 3 of this act must be commenced as follows:
     (1) The legislative body of a city may by a majority vote resolve to annex unincorporated territory contiguous to the city that is within the city's urban growth area as designated under RCW 36.70A.110.
     (2) The resolution must describe the boundaries of the area to be annexed, state the approximate number of voters residing therein, and set a date for a public hearing on the resolution. Notice of the hearing must be given by publication of the resolution at least once a week for three weeks before the date of the hearing, in one or more newspapers of general circulation within the code city and one or more newspapers of general circulation within the area to be annexed. The notice must contain a legal description of the area proposed for annexation, specify the time and place of hearing, and invite interested persons to appear and voice approval or disapproval of the annexation. The notice must also be posted in three public places in the territory proposed for annexation.
     (3) For purposes of subsection (1) of this section, territory bounded by a river, lake, or other body of water is contiguous to the city that is also bounded by the same river, lake, or other body of water.
     (4) Following the hearing, the city council or commission must determine by ordinance whether the area will be annexed. Subject to RCW 35.02.170, the council may annex all or any portion of the proposed area, but may not include any property not described in the notice. Upon passage of the ordinance, a certified copy must be filed with the board of county commissioners of the county in which the annexed property is located.
     (5) Annexations initiated under this section are subject to the procedures set forth in chapters 35.13, 35A.14, and 39.34 RCW.

NEW SECTION.  Sec. 3   A new section is added to chapter 39.34 RCW to read as follows:
     Before initiating an annexation under this act, a city must enter into an interlocal agreement with the county that governs annexations by that city within its urban growth boundary. An annexation interlocal agreement entered into before the effective date of this section or a general annexation interlocal agreement entered into between a city and county that is intended to apply to all annexations by a city within its urban growth boundary satisfies the requirements of this section. The interlocal agreement may be, by agreement of the city and county, supplemented to address issues specific to an individual annexation if the issues are not addressed in the general interlocal agreement. The general interlocal annexation agreement must include the following:
     (1) A statement of the goals of the agreement. Goals may include, but are not limited to: Providing for long-term and short-term transition of services and staff; joint provision of services; community involvement; revenue sharing; and debt distribution;
     (2) The subject areas and policies and procedures the parties agree to undertake in annexations. Subject areas may include, but are not limited to: Roads and traffic impact mitigation; surface and storm water management; coordination and timing of comprehensive plan and development regulation updates; parks, trails, recreation, and open space; public utilities; outstanding bonds and special or improvement district assessments; transfer of staff, records, and equipment; annexation procedures; and distribution of debt and revenue sharing for annexation proposals, code enforcement, inspection services, and financial and administrative services.
     (3) A term of at least five years which may be extended by mutual agreement of the city and county.

NEW SECTION.  Sec. 4   A new section is added to chapter 39.34 RCW to read as follows:
     If the city and county do not complete a general interlocal annexation agreement within one hundred twenty days of its initiation:
     (1) The city and county may extend the time in which to reach an agreement; or
     (2) The city or county may invoke mediated negotiation by notice to the other party. Mediation must begin within thirty days. The city and county must select a mediator and make available to the mediator all relevant documents, including their respective proposals for goals and policies and procedures, by subject area. If the parties fail to reach agreement through mediation, either party may invoke binding arbitration by providing notice to the other party. Each party must select one arbitrator and the initial two arbitrators must select a third arbitrator. Arbitration must begin within thirty days.