BILL REQ. #:  H-4281.1 

Read first time 01/20/10.   Referred to Committee on Local Government & Housing.

     AN ACT Relating to the administration of irrigation districts; amending RCW 87.03.001, 87.03.140, 87.03.436, and 87.03.443; and adding new sections to chapter 87.03 RCW.

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

Sec. 1   RCW 87.03.001 and 1989 c 84 s 66 are each amended to read as follows:
     The formation of an irrigation district may be subject to potential review by a boundary review board under chapter 36.93 RCW. The alteration of the boundaries of an irrigation district, including but not limited to a consolidation, addition of lands, exclusion of lands, or merger, may be subject to potential review by a boundary review board under chapter 36.93 RCW, except that additions or exclusions of land to an irrigation district, when those lands are within the boundary of a federal reclamation project, are not subject to review by a boundary review board under chapter 36.93 RCW.

Sec. 2   RCW 87.03.140 and 1921 c 129 s 6 are each amended to read as follows:
     The board, and its agents and employees, shall have the right to enter upon any land to make surveys, and may locate the necessary irrigation or drainage works, power plants, power sites or power lines and the line for any canal or canals, and the necessary branches of laterals for the same, on any lands which may be deemed best for such location. Said board shall also have the power to acquire, either by purchase or condemnation, or other legal means, all lands, waters, water rights, and other property necessary for the construction, use, supply, maintenance, repair and improvements of said canal or canals and irrigation and drainage works, including canals and works constructed or being constructed by private owners, or any other person, lands for reservoirs for the storage of needful waters and all necessary appurtenances. The board may also construct the necessary dams, reservoirs and works for the collection of water for the said district, and may enter into contracts for a water supply to be delivered to the canals and works of the district, and do any and every lawful act necessary to be done in order to carry out the purposes of this act; and in carrying out the aforesaid purposes the bonds of the district may be used by the board, at not less than ninety percent of their par value in payment. The board may enter into any obligation or contract with the United States or with the state of Washington for the supervision of the construction, for the construction, reconstruction, betterment, extension, sale or purchase, or operation and maintenance of the necessary works for the delivery and distribution of water therefrom under the provisions of the state reclamation act, or under the provisions of the federal reclamation act, and all amendments or extensions thereof, and the rules and regulations established thereunder, or it may contract with the United States for a water supply or for reclamation purposes in general under any act of congress which, for the purposes of this act, shall be deemed to include any act of congress for reclamation purposes heretofore or hereafter enacted providing for and permitting such contract, or for the collection of money due or to become due to the United States, or for the assumption of the control and management of the works; and in case contract has been or may hereafter be made with the United States, as herein provided, bonds of the district may be deposited with the United States as payment or as security for future payment at not less than ninety percent of their par value, the interest on said bonds to be provided for by assessment and levy as in the case of other bonds of the district, and regularly paid to the United States to be applied as provided in such contract, and if bonds of the district are not so deposited, it shall be the duty of the board of directors to include as part of any levy or assessment provided in RCW 87.03.260 an amount sufficient to meet each year all payments accruing under the terms of any such contract. The board may accept on behalf of the district appointment of the district as fiscal agent of the United States or the state of Washington or other authorization of the district by the United States or the state of Washington to make collections of money for or on behalf of the United States or the state of Washington in connection with any federal or other reclamation project, whereupon the district, and the county treasurer for the district, shall be authorized to so act and to assume the duties and liability incident to such action, and the said board shall have full power to do any and all things required by the federal statutes now or hereafter enacted in connection therewith, and all things required by the rules and regulations now or that may hereafter be established by any department of the federal government in regard thereto.
     The use of all water required for the irrigation of the lands within any district, together with rights-of-way for canals, laterals, ditches, sites for reservoirs, power plants, sites, and lines, and all other property required in fully carrying out the purposes of the organization of the district is hereby declared to be a public use; and in condemnation proceedings to acquire any property or property rights for the use of the district, the board of directors shall proceed in the name of the district, in the same manner provided in this state for private corporations in cases of appropriation of lands, real estate and other property ((by private corporations)), subject to the provisions of this chapter: PROVIDED, That the irrigation district, at its option, pursuant to resolution to that end duly passed by its board of directors may unite in a single action proceedings for the acquisition and condemnation of different tracts of land needed by it for rights-of-way for canals, laterals, power plants, sites, and lines and other irrigation works which are held by separate owners. And the court may, on the motion of any party, consolidate into a single action separate suits for the condemnation of rights-of-way for such irrigation works whenever from motives of economy or the expediting of business it appears desirable so to do: PROVIDED FURTHER, That there shall be a separate finding of the court or jury as to each tract held in separate ownership.
     In any condemnation proceeding brought under the provisions of this act to acquire canals, laterals and ditches and rights-of-way therefor, sites, reservoirs, power plants and pumping plants and sites therefor, power canals, transmission lines, electrical equipment and any other property, and if the owner or owners thereof or their predecessors shall have issued contracts or deeds agreeing to deliver to the holders of said contracts or deeds water for irrigation purposes, or authorizing the holders thereof to take or receive water for irrigation purposes from any portion of said property or works, and if the delivery of said water or the right to take or receive the same shall in any manner constitute a charge upon, or a right in the property and works sought to be acquired, or any portion thereof, the district shall be authorized to institute and maintain said condemnation proceedings for the purpose of acquiring said property and works, and the interest of the owners therein subject to the rights of the holders of such contracts or deeds, and the court or jury making the award shall determine and award to such owner or owners the value of the interest to be so appropriated in said condemnation proceedings.

NEW SECTION.  Sec. 3   A new section is added to chapter 87.03 RCW to read as follows:
     In case an irrigation district requires immediate possession and use of the property sought to be condemned, and an order of necessity has been granted, and no review has been taken therefrom, the irrigation district may stipulate with respondents in accordance with the provisions of this chapter for an order of immediate possession and use, and file with the court clerk where the action is pending, a certificate of the irrigation district's requirement of immediate possession and use of the land, which shall state the amount of money offered to the respondents and shall further state that such offer constitutes a continuing tender of the amount.
     The irrigation district shall then issue and deliver a warrant payable to the order of the court clerk where the action is pending in a sum sufficient to pay the amount offered, which shall then be paid into the court's registry.
     The court, without further notice to respondents, shall thereafter enter an order granting the irrigation district immediate possession and use of the property described in the order of necessity, which order shall bind the irrigation district to pay the full amount of any final judgment of compensation and damages that may be awarded for the taking and appropriation of the lands, real estate, premises, or other property described in the petition required by RCW 8.20.010, and for the injury, if any, by reason of the taking to the remainder of the lands, real estate, premises, or other property from which the property described in the petition is to be taken. This amount must be offset against any and all such compensation or benefits, if any, accruing to the remainder by reason of the appropriation and use by the irrigation district of the lands, real estate, premises, or other property described in the petition. The moneys paid into court may at any time after entry of the order of immediate possession and use, be withdrawn by respondents, by order of the court, as their interests shall appear.

NEW SECTION.  Sec. 4   A new section is added to chapter 87.03 RCW to read as follows:
     The amount paid into court under the provisions of section 3 of this act constitute just compensation paid for the taking of the property. Respondents may, in the same action, request a trial for the purpose of assessing the amount of compensation to be made and the amount of damages arising from the taking. At the trial, the date of valuation of the property shall be the date of entry of the order granting the irrigation district immediate possession and use of the property.
     If, pursuant to such trial, an amount in excess of the tender is awarded, the court shall order the excess paid to respondents with interest thereon from the time of the entry of the order of immediate possession and use, and shall charge the costs of the action to the irrigation district. If, pursuant to the trial, respondents are awarded an amount equal to the tender, the costs of the action shall be charged to the irrigation district. If the verdict or decision awards an amount less than the tender, each party shall bear its own costs, and if respondents have accepted the tender and withdrawn the amount paid into court, the irrigation district is entitled to a judgment for the difference; otherwise, the excess on deposit shall be returned to the irrigation district.

NEW SECTION.  Sec. 5   A new section is added to chapter 87.03 RCW to read as follows:
     If any respondent elects to demand a trial for the purpose of assessing just compensation and damages arising from a taking under the provisions of section 3 of this act, the respondent shall so move within sixty days from the date of entry of the order of immediate possession and use, and the issues shall be brought to trial within one year from the date of the order unless good and sufficient proof is offered and it appears therefrom to the court that the hearing could not have been held within the year. In the event that a demand is not timely made or having been timely made, is not brought to trial within the limiting period, the court, upon application of the irrigation district, shall enter a decree of appropriation for the amount paid into court under the provisions of section 3 of this act, as the total sum to which respondents are entitled, and such decree shall be final and nonappealable.

Sec. 6   RCW 87.03.436 and 1990 c 39 s 2 are each amended to read as follows:
     All contract projects, the estimated cost of which is less than ((one)) three hundred thousand dollars, may be awarded to a contractor on the small works roster. The small works roster shall be comprised of all responsible contractors who have requested to be on the list. The board of directors shall authorize by resolution a procedure for securing telephone and/or written quotations from the contractors on the small works roster to assure establishment of a competitive price and for awarding contracts to the lowest responsible bidder. Such procedure shall require that a good-faith effort be made to request quotations from all responsible contractors on the small works roster. Immediately after an award is made, the bid quotations obtained shall be recorded, open to public inspection, and available by telephone inquiry. The small works roster shall be revised once a year.

Sec. 7   RCW 87.03.443 and 2004 c 215 s 3 are each amended to read as follows:
     There may be created ((for)) by each irrigation district or separate legal authority created pursuant to RCW 87.03.018 a fund to be known as the upgrading and improvement fund. The board of directors shall determine what portion of the annual revenue of the irrigation district or separate legal authority will be placed into its upgrading and improvement fund, including all or any part of the funds received by a district or separate legal authority from the sale, delivery, and distribution of electrical energy. Moneys from the upgrading and improvement fund may ((only)) be used to modernize, improve, or upgrade ((the)) irrigation and hydroelectric power facilities ((of the irrigation district)) or to respond to an emergency affecting such facilities. The funds may also be used for licensing hydroelectric power facilities and for payment of capital improvements.