SENATE BILL REPORT
SB 5268



As Passed Senate, March 2, 2005

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 and Kastama.

Brief History:

Committee Activity: Government Operations & Elections: 1/31/05 [DP, DNP].

Passed Senate: 3/2/05, 48-0.


SENATE COMMITTEE ON GOVERNMENT OPERATIONS & ELECTIONS

Majority Report: Do pass.Signed by Senators Kastama, Chair; Berkey, Vice Chair; Fairley, Haugen, Kline, Pridemore and Roach.

Minority Report: Do not pass.Signed by Senator Mulliken.

Staff: Genevieve Pisarski (786-7488)

Background: Existing law allows a city to assume all or part of a water-sewer district, only if at least part of the district is located within the boundaries of the city. If more than 60 percent of the area or assessed value of the district is within the city, then the city may assume all or part of the district by ordinance. If less than 60 percent of the area and less than 60 percent of the assessed value is within the city, then the city may assume no more than the portion that is within the city, and a vote of the district residents is required for the city to take over the entire district. If, however, none of the district is within the city, there is no provision in existing law for the city to assume either all or part of the district.

Summary of Bill: A water-sewer district with fewer than 250 customers can be taken over by a code city with more than 100,000 people, even if none of the district is within the territory of the city. 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 can use the district's surplus funds only for water services and water facilities in the territory of the former district, unless the contract provides otherwise.

Either the district or the city or both can provide for the dissolution of the district.

Appropriation: None.

Fiscal Note: Not requested.

Committee/Commission/Task Force Created: No.

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

Testimony For: There is no opposition to this proposal. It does not require, but merely allows, assumption of a water-sewer district, when both the district and the city agree to the assumption and the terms. The subject and title are very narrow. The City of Bellevue currently handles operations for King County Water-Sewer District #1; this bill will allow a more efficient and economical arrangement.

Testimony Against: None.

Who Testified: PRO: Sen. Esser, Prime Sponsor; Joe Daniels, Washington Association of Water-Sewer Districts; Bob Mack, City of Bellevue.