BILL REQ. #:  H-1648.1 

Read first time 02/06/09.   Referred to Committee on Local Government & Housing.

     AN ACT Relating to the annexation of unincorporated areas served by fire protection districts; amending RCW 35.10.360, 35.10.365, 35.13.130, 35.13.215, and 35.13.225; adding new sections to chapter 35.13 RCW; adding a new section to chapter 35.103 RCW; adding new sections to chapter 35A.14 RCW; and adding a new section to chapter 35A.92 RCW.

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

Sec. 1   RCW 35.10.360 and 1986 c 254 s 4 are each amended to read as follows:
     (1) If any portion of a fire protection district is proposed for annexation to or incorporation into a city, code city, or town, both the fire protection district and the city, code city, or town shall inform the employees of the fire protection district about hires, separations, terminations, and any other changes in employment that are a direct consequence of annexation or incorporations at the earliest reasonable opportunity.
     (2) Upon the annexation of two or more cities or code cities, any employee of the fire department of the former city or cities who (((1))) (a) was at the time of annexation employed exclusively or principally in performing the powers, duties, and functions which are to be performed by the fire department of the annexed city or code city, as the case may be, (((2))) (b) will, as a direct consequence of annexation, be separated from the employ of the former city, code city or town, and (((3))) (c) can perform the duties and meet the minimum requirements of the position to be filled, then such employee may transfer employment to the fire department of the annexing city, as provided in this section and RCW 35.10.365 and 35.10.370.
     (3) For purposes of this section and RCW 35.10.365 and 35.10.370, employee means an individual whose employment has been terminated because of annexation by a city, code city or town.

Sec. 2   RCW 35.10.365 and 1994 c 73 s 1 are each amended to read as follows:
     (1) An eligible employee may transfer into the civil service system of the annexing city, code city, or town by filing a written request with the city, code city, or town civil service commission. Upon receipt of ((such)) the request by the civil service commission, the transfer of employment ((shall)) must be made. ((The employee so transferring will (a) be on probation for the same period as are new employees in the position filled, but if the transferring employee has already completed a probationary period as a firefighter prior to the transfer, then the employee may only be terminated during the probationary period for failure to adequately perform assigned duties, not meeting the minimum qualifications of the position, or behavior that would otherwise be subject to disciplinary action, (b) be eligible for promotion no later than after completion of the probationary period, (c) receive a salary at least equal to that of other new employees in the position filled, and (d) in all other matters, such as retirement, sick leave, and vacation, have, within the city, code city, or town civil service system, all the rights, benefits, and privileges to which he or she would have been entitled as a member of the annexed city, code city, or town fire department from the beginning of his or her employment with the former city or code city fire department: PROVIDED, That for purposes of layoffs by the annexing city or code city, only the time of service accrued with the annexing city or code city shall apply unless an agreement is reached between the collective bargaining representatives of the employees of the annexing and annexed fire agencies and the annexing and annexed fire agencies. A record of the employee's service with the former city or code city fire department shall be transmitted to the applicable civil service commission which shall be credited to such employee as a part of the period of employment in the annexed city, code city, or town fire department. All accrued benefits are transferable provided that the recipient agency provides comparable benefits. All benefits shall then accrue based on the combined seniority of each employee in the recipient agency.
     (2) As many of the transferring employees shall be placed upon the payroll of the annexing city, code city, or town fire department as the department determines are needed to provide services. These)) The needed employees shall be taken in order of seniority and the remaining employees who transfer as provided in this section and RCW 35.10.360 and 35.10.370 shall head the list for employment in the civil service system in order of their seniority, to the end that they shall be the first to be reemployed in the city, code city, or town fire department when appropriate positions become available: PROVIDED, That employees who are not immediately hired by the city, code city, or town shall be placed on a reemployment list for a period not to exceed thirty-six months unless a longer period is authorized by an agreement reached between the collective bargaining representatives of the employees of the annexing and annexed fire agencies and the annexing and annexed fire agencies.
     (2) Upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating fire protection jurisdictions, an employee is entitled to the employee rights, benefits, and privileges to which he or she would have been entitled as an employee of the fire protection district, including rights to:
     (a) Compensation at least equal to the level of compensation at the time of transfer, unless the employee's rank and duties have been reduced as a result of the transfer. If the transferring employee is placed in a position with reduced rank and duties, the employee's compensation may be adjusted, but the adjustment may not result in a decrease of greater than fifty percent of the difference between the employee's compensation before the transfer and the compensation level for the position that the employee is transferred to;
     (b) Retirement, vacation, sick leave, and any other accrued benefit;
     (c) Promotion and service time accrual; and
     (d) The length or terms of probationary periods, including no requirement for an additional probationary period if one had been completed before the transfer date.
     (3) If upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating fire protection jurisdictions, the transferring employee receives the rights, benefits, and privileges established under subsection (2)(a) through (d) of this section, those rights, benefits, and privileges are subject to collective bargaining at the end of the current bargaining period for the jurisdiction to which the employee has transferred.

Sec. 3   RCW 35.13.130 and 1990 c 33 s 566 are each amended to read as follows:
     A petition for annexation of an area contiguous to a city or town may be made in writing addressed to and filed with the legislative body of the municipality to which annexation is desired. Except where all the property sought to be annexed is property of a school district, and the school directors thereof file the petition for annexation as in RCW 28A.335.110 authorized, the petition must be signed by the owners of not less than ((seventy-five)) sixty percent in value according to the assessed valuation for general taxation of the property for which annexation is petitioned: PROVIDED, That in cities and towns with populations greater than one hundred sixty thousand located east of the Cascade mountains, the owner of tax exempt property may sign an annexation petition and have the tax exempt property annexed into the city or town, but the value of the tax exempt property shall not be used in calculating the sufficiency of the required property owner signatures unless only tax exempt property is proposed to be annexed into the city or town. The petition shall set forth a description of the property according to government legal subdivisions or legal plats which is in compliance with RCW 35.02.170, and shall be accompanied by a plat which outlines the boundaries of the property sought to be annexed. If the legislative body has required the assumption of all or of any portion of city or town indebtedness by the area annexed, and/or the adoption of a comprehensive plan for the area to be annexed, these facts, together with a quotation of the minute entry of such requirement or requirements shall be set forth in the petition.

Sec. 4   RCW 35.13.215 and 1986 c 254 s 7 are each amended to read as follows:
     (1) If any portion of a fire protection district is proposed for annexation to or incorporation into a city, code city, or town, both the fire protection district and the city, code city, or town shall inform the employees of the fire protection district about hires, separations, terminations, and any other changes in employment that are a direct consequence of annexation or incorporations at the earliest reasonable opportunity.
     (2) If any portion of a fire protection district is annexed to or incorporated into a city, code city or town, any employee of the fire protection district who (((1))) (a) was at the time of such annexation or incorporation employed exclusively or principally in performing the powers, duties, and functions which are to be performed by the city, code city or town fire department (((2))) (b) will, as a direct consequence of annexation or incorporation, be separated from the employ of the fire protection district, and (((3))) (c) can perform the duties and meet the minimum requirements of the position to be filled, then such employee may transfer employment to the civil service system of the city, code city or town fire department as provided for in this section and RCW 35.13.225 and 35.13.235.
     (3) For purposes of this section and RCW 35.13.225 and 35.13.235, employee means an individual whose employment with a fire protection district has been terminated because the fire protection district was annexed by a city, code city or town for purposes of fire protection.

Sec. 5   RCW 35.13.225 and 1994 c 73 s 3 are each amended to read as follows:
     (1) An eligible employee may transfer into the civil service system of the city, code city, or town fire department by filing a written request with the city, code city, or town civil service commission and by giving written notice ((thereof)) of the request to the board of commissioners of the fire protection district. Upon receipt of ((such)) the request by the civil service commission, the transfer of employment ((shall)) must be made. ((The employee so transferring will (a) be on probation for the same period as are new employees of the city, code city, or town fire department in the position filled, but if the transferring employee has already completed a probationary period as a firefighter prior to the transfer, then the employee may only be terminated during the probationary period for failure to adequately perform assigned duties, not meeting the minimum qualifications of the position, or behavior that would otherwise be subject to disciplinary action, (b) be eligible for promotion no later than after completion of the probationary period, (c) receive a salary at least equal to that of other new employees of the city, code city, or town fire department in the position filled, and (d) in all other matters, such as retirement, sick leave, and vacation, have, within the city, code city, or town civil service system, all the rights, benefits, and privileges to which he or she would have been entitled as a member of the city, code city, or town fire department from the beginning of employment with the fire protection district: PROVIDED, That for purposes of layoffs by the annexing fire agency, only the time of service accrued with the annexing agency shall apply unless an agreement is reached between the collective bargaining representatives of the employees of the annexing and annexed fire agencies and the annexing and annexed fire agencies. The board of commissioners of the fire protection district shall, upon receipt of such notice, transmit to any applicable civil service commission a record of the employee's service with the fire protection district which shall be credited to such employee as a part of the period of employment in the city, code city, or town fire department. All accrued benefits are transferable provided that the recipient agency provides comparable benefits. All benefits shall then accrue based on the combined seniority of each employee in the recipient agency.
     (2) As many of the transferring employees shall be placed upon the payroll of the city, code city, or town fire department as the department determines are needed to provide services. These)) The needed employees shall be taken in order of seniority and the remaining employees who transfer as provided in this section and RCW 35.13.215 and 35.13.235 shall head the list for employment in the civil service system in order of their seniority, to the end that they shall be the first to be reemployed in the city, code city, or town fire department when appropriate positions become available: PROVIDED, That employees who are not immediately hired by the city, code city, or town shall be placed on a reemployment list for a period not to exceed thirty-six months unless a longer period is authorized by an agreement reached between the collective bargaining representatives of the employees of the annexing and annexed fire agencies and the annexing and annexed fire agencies.
     (2) Upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating fire protection jurisdictions, an employee is entitled to the employee rights, benefits, and privileges to which he or she would have been entitled as an employee of the fire protection district, including rights to:
     (a) Compensation at least equal to the level of compensation at the time of transfer, unless the employee's rank and duties have been reduced as a result of the transfer. If the transferring employee is placed in a position with reduced rank and duties, the employee's compensation may be adjusted, but the adjustment may not result in a decrease of greater than fifty percent of the difference between the employee's compensation before the transfer and the compensation level for the position that the employee is transferred to;
     (b) Retirement, vacation, sick leave, and any other accrued benefit;
     (c) Promotion and service time accrual; and
     (d) The length or terms of probationary periods, including no requirement for an additional probationary period if one had been completed before the transfer date.
     (3) If upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating fire protection jurisdictions, the transferring employee receives the rights, benefits, and privileges established under subsection (2)(a) through (d) of this section, those rights, benefits, and privileges are subject to collective bargaining at the end of the current bargaining period for the jurisdiction to which the employee has transferred.

NEW SECTION.  Sec. 6   A new section is added to chapter 35.13 RCW to read as follows:
     Upon the written request of a fire protection district, cities and towns annexing territory under this chapter shall, prior to completing the annexation, issue a report regarding the likely effects that the annexation and any associated asset transfers may have upon the safety of residents within and outside the proposed annexation area. The report must address, but is not limited to, the provisions of fire protection and emergency medical services within and outside of the proposed annexation area. A fire protection district may only request a report under this section when at least five percent of the assessed valuation of the fire protection district will be annexed.

NEW SECTION.  Sec. 7   A new section is added to chapter 35.13 RCW to read as follows:
     (1)(a) An annexation by a city or town that is proposing to annex territory served by one or more fire protection districts may be accomplished by ordinance after entering into an interlocal agreement as provided in chapter 39.34 RCW with the county and the fire protection district or districts that have jurisdiction over the territory proposed for annexation.
     (b) The interlocal agreement must describe the boundaries of the territory proposed for annexation and must be consistent with the boundaries identified in an ordinance describing the boundaries of the territory proposed for annexation and setting a date for a public hearing on the ordinance. If the boundaries of the territory proposed for annexation are agreed to by all parties, the agreement is not subject to review by the boundary review board created under RCW 35.13.176.
     (2)(a) An interlocal agreement providing for a specific annexation that was entered into between an annexing city or town, a county, and a fire protection district before the effective date of this section satisfies the requirements of this section.
     (b) An interlocal agreement providing general annexation terms for all annexations by a city or town that was entered into between an annexing city or town, a county, and a fire protection district before the effective date of this section satisfies the requirements of this section.
     (3) A supplemental interlocal agreement may be negotiated to address issues for a specific annexation if the issues are not sufficiently addressed in a general interlocal agreement.
     (4) An interlocal annexation agreement under this section must include the following:
     (a) A statement of the goals of the agreement. Goals must include, but are not limited to:
     (i) The transfer of revenues and assets between the fire protection districts and the city or town;
     (ii) A consideration and discussion of the impact to the level of service of annexation on the unincorporated area, and an agreement that the impact on the ability of fire protection and emergency medical services within the incorporated area must not be negatively impacted at least through the budget cycle in which the annexation occurs;
     (iii) A discussion with fire protection districts regarding the division of assets and its impact to citizens inside and outside the newly annexed area;
     (iv) Community involvement, including an agreed upon schedule of public meetings in the area or areas proposed for annexation;
     (v) Revenue sharing, if any;
     (vi) Debt distribution;
     (vii) Capital facilities obligations of the city, county, and fire protection districts;
     (viii) An overall schedule or plan on the timing of any annexations covered under this agreement; and
     (ix) A description of which of the annexing cities' development regulations will apply and be enforced in the area.
     (b) The subject areas and policies and procedures the parties agree to undertake in annexations. Subject areas may include, but are not limited to:
     (i) Roads and traffic impact mitigation;
     (ii) Surface and storm water management;
     (iii) Coordination and timing of comprehensive plan and development regulation updates;
     (iv) Outstanding bonds and special or improvement district assessments;
     (v) Annexation procedures;
     (vi) Distribution of debt and revenue sharing for annexation proposals, code enforcement, and inspection services;
     (vii) Financial and administrative services; and
     (viii) Consultation with other service providers, including water-sewer districts, if applicable.
     (c) A term of at least five years, which may be extended by mutual agreement of the city or town, the county, and the fire protection district.
     (5) If the fire protection district, annexing city or town, and county reach an agreement on the enumerated goals, the annexation ordinance may proceed and is not subject to referendum. If only the annexing city or town and county reach an agreement on the enumerated goals, the city or town and county may proceed with annexation under the interlocal agreement, but the annexation ordinance provided for in this section is subject to referendum for forty-five days after its passage. Upon the filing of a timely and sufficient referendum petition with the legislative body of the city or town, signed by qualified electors in a number not less than ten percent of the votes cast in the last general state election in the area to be annexed, the question of annexation must be submitted to the voters of the area in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35.13.080, and the election must be conducted as provided in the general election laws under Title 29A RCW. The annexation must be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation.
     After the expiration of the forty-fifth day from, but excluding, the date of passage of the annexation ordinance, if a timely and sufficient referendum petition has not been filed, the area annexed becomes a part of the city or town upon the date fixed in the ordinance of annexation.
     (6) If any portion of a fire protection district is proposed for annexation to or incorporation into a city or town, both the fire protection district and the city or town shall inform the employees of the fire protection district about hires, separations, terminations, and any other changes in employment that are a direct consequence of annexation or incorporation.
     (7) An eligible employee may transfer into the civil service system of the city or town fire department by filing a written request with the city or town civil service commission and by giving written notice of the request to the board of commissioners of the fire protection district. Upon receipt of the request by the civil service commission, the transfer of employment must be made. Transfers under this section must be made in order of seniority.
     (8) Upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating fire protection jurisdictions, an employee is entitled to the employee rights, benefits, and privileges to which he or she would have been entitled as an employee of the fire protection district, including rights to:
     (a) Compensation at least equal to the level of compensation at the time of transfer;
     (b) Retirement, vacation, sick leave, and any other accrued benefit;
     (c) Promotion and service time accrual; and
     (d) The length or terms of probationary periods, including no requirement for an additional probationary period if one had been completed before the transfer date.

NEW SECTION.  Sec. 8   A new section is added to chapter 35.103 RCW to read as follows:
     Cities and towns conducting annexations of all or part of fire protection districts shall, at least through the budget cycle in which the annexation occurs, maintain existing fire protection and emergency services response times in the newly annexed areas consistent with response times recorded prior to the annexation as defined in the previous annual report for the fire protection district and as reported in RCW 52.33.040. If the city or town is unable to maintain these service levels in the newly annexed area, the transfer of firefighters from the annexed fire protection district as a direct result of the annexation must occur as outlined in section 7(6) through (8) of this act.

NEW SECTION.  Sec. 9   A new section is added to chapter 35A.14 RCW to read as follows:
     (1)(a) An annexation by a code city proposing to annex territory served by one or more fire protection districts may be accomplished by ordinance after entering into an interlocal agreement as provided in chapter 39.34 RCW with the county and the fire protection district or districts that have jurisdiction over the territory proposed for annexation.
     (b) The interlocal agreement must describe the boundaries of the territory proposed for annexation and must be consistent with the boundaries identified in an ordinance describing the boundaries of the territory proposed for annexation and setting a date for a public hearing on the ordinance. If the boundaries of the territory proposed for annexation are agreed to by all parties, the agreement is not subject to review by the boundary review board created under RCW 35A.14.160.
     (2)(a) An interlocal agreement providing for a specific annexation that was entered into between an annexing code city, a county, and a fire protection district before the effective date of this section satisfies the requirements of this section.
     (b) An interlocal agreement providing general annexation terms for all annexations by a code city that was entered into between an annexing code city, a county, and a fire protection district before the effective date of this section satisfies the requirements of this section.
     (3) A supplemental interlocal agreement may be negotiated to address issues for a specific annexation if the issues are not sufficiently addressed in a general interlocal agreement.
     (4) An interlocal annexation agreement under this section must include the following:
     (a) A statement of the goals of the agreement. Goals must include, but are not limited to:
     (i) The transfer of revenues and assets between the fire protection district and the code city;
     (ii) A consideration and discussion of the impact to the level of service of annexation on the unincorporated area, and an agreement that the impact on the ability of fire protection and emergency medical services within the incorporated area must not be negatively impacted at least through the budget cycle in which the annexation occurs;
     (iii) A discussion with fire protection districts regarding the division of assets and its impact to citizens inside and outside the newly annexed area;
     (iv) Community involvement, including an agreed upon schedule of public meetings in the area or areas proposed for annexation;
     (v) Revenue sharing, if any;
     (vi) Debt distribution;
     (vii) Capital facilities obligations of the code city, county, and fire protection districts;
     (viii) An overall schedule or plan on the timing of any annexations covered under this agreement; and
     (ix) A description of which of the annexing code cities' development regulations will apply and be enforced in the area.
     (b) The subject areas and policies and procedures the parties agree to undertake in annexations. Subject areas may include, but are not limited to:
     (i) Roads and traffic impact mitigation;
     (ii) Surface and storm water management;
     (iii) Coordination and timing of comprehensive plan and development regulation updates;
     (iv) Outstanding bonds and special or improvement district assessments;
     (v) Annexation procedures;
     (vi) Distribution of debt and revenue sharing for annexation proposals, code enforcement, and inspection services;
     (vii) Financial and administrative services; and
     (viii) Consultation with other service providers, including water-sewer districts, if applicable.
     (c) A term of at least five years, which may be extended by mutual agreement of the code city, the county, and the fire protection district.
     (5) If the fire protection district, annexing code city, and county reach an agreement on the enumerated goals, the annexation ordinance may proceed and is not subject to referendum. If only the annexing code city and county reach an agreement on the enumerated goals, the code city and county may proceed with annexation under the interlocal agreement, but the annexation ordinance provided for in this section is subject to referendum for forty-five days after its passage. Upon the filing of a timely and sufficient referendum petition with the legislative body of the code city, signed by qualified electors in a number not less than ten percent of the votes cast in the last general state election in the area to be annexed, the question of annexation must be submitted to the voters of the area in a general election if one is to be held within ninety days or at a special election called for that purpose according to RCW 29A.04.330. Notice of the election must be given as provided in RCW 35A.14.070, and the election must be conducted as provided in the general election laws under Title 29A RCW. The annexation must be deemed approved by the voters unless a majority of the votes cast on the proposition are in opposition to the annexation.
     After the expiration of the forty-fifth day from, but excluding, the date of passage of the annexation ordinance, if a timely and sufficient referendum petition has not been filed, the area annexed becomes a part of the code city upon the date fixed in the ordinance of annexation.

NEW SECTION.  Sec. 10   A new section is added to chapter 35A.14 RCW to read as follows:
     (1) If any portion of a fire protection district is proposed for annexation to or incorporation into a code city, both the fire protection district and the code city shall inform the employees of the fire protection district about hires, separations, terminations, and any other changes in employment that are a direct consequence of annexation or incorporation at the earliest reasonable opportunity.
     (2) An eligible employee may transfer into the civil service system of the code city fire department by filing a written request with the code city civil service commission and by giving written notice of the request to the board of commissioners of the fire protection district. Upon receipt of the request by the civil service commission, the transfer of employment must be made. The needed employees shall be taken in order of seniority and the remaining employees who transfer as provided in this section and RCW 35.10.360 and 35.10.370 shall head the list for employment in the civil service system in order of their seniority, to the end that they shall be the first to be reemployed in the code city fire department when appropriate positions become available. Employees who are not immediately hired by the code city shall be placed on a reemployment list for a period not to exceed thirty-six months unless a longer period is authorized by an agreement reached between the collective bargaining representatives of the employees of the annexing and annexed fire agencies and the annexing and annexed fire agencies.
     (3) Upon transfer, unless an agreement for different terms of transfer is reached between the collective bargaining representatives of the transferring employees and the participating fire protection jurisdictions, an employee is entitled to the employee rights, benefits, and privileges to which he or she would have been entitled as an employee of the fire protection district, including rights to:
     (a) Compensation at least equal to the level of compensation at the time of transfer, unless the employee's rank and duties have been reduced as a result of the transfer. If the transferring employee is placed in a position with reduced rank and duties, the employee's compensation may be adjusted, but the adjustment may not result in a decrease of greater than fifty percent of the difference between the employee's compensation before the transfer and the compensation level for the position that the employee is transferred to;
     (b) Retirement, vacation, sick leave, and any other accrued benefit;
     (c) Promotion and service time accrual; and
     (d) The length or terms of probationary periods, including no requirement for an additional probationary period if one had been completed before the transfer date.

NEW SECTION.  Sec. 11   A new section is added to chapter 35A.14 RCW to read as follows:
     Upon the written request of a fire protection district, code cities annexing territory under this chapter shall, prior to completing the annexation, issue a report regarding the likely effects that the annexation and any associated asset transfers may have upon the safety of residents within and outside the proposed annexation area. The report must address, but is not limited to, the provisions of fire protection and emergency medical services within and outside of the proposed annexation area. A fire protection district may only request a report under this section when at least five percent of the assessed valuation of the fire protection district will be annexed.

NEW SECTION.  Sec. 12   A new section is added to chapter 35A.92 RCW to read as follows:
     Code cities conducting annexations of all or part of fire protection districts shall, at least through the budget cycle in which the annexation occurs, maintain existing fire protection and emergency services response times in the newly annexed areas consistent with response times recorded prior to the annexation as defined in the previous annual report for the fire protection district and as reported in RCW 52.33.040. If the code city is unable to maintain these service levels in the newly annexed area, the transfer of firefighters from the annexed fire protection district as a direct result of the annexation must occur as outlined in section 10 of this act.