BILL REQ. #: S-0644.1
State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/19/11. Referred to Committee on Government Operations, Tribal Relations & Elections.
AN ACT Relating to the negotiated sale and conveyance of all or part of water systems owned by a municipal corporation; and amending RCW 54.16.180 and 35.92.070.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1 RCW 54.16.180 and 2008 c 198 s 5 are each amended to read
as follows:
(1) A district may sell and convey, lease, or otherwise dispose of
all or any part of its works, plants, systems, utilities and
properties, after proceedings and approval by the voters of the
district, as provided for the lease or disposition of like properties
and facilities owned by cities and towns. The affirmative vote of
three-fifths of the voters voting at an election on the question of
approval of a proposed sale((,)) shall be necessary to authorize such
a sale.
(2) A district may, without the approval of the voters, sell,
convey, lease, or otherwise dispose of all or any part of the property
owned by it that is located:
(a) Outside its boundaries, to another public utility district,
city, town or other municipal corporation; or
(b) Within or without its boundaries, which has become
unserviceable, inadequate, obsolete, worn out or unfit to be used in
the operations of the system and which is no longer necessary, material
to, and useful in such operations, to any person or public body.
(3) A district may sell, convey, lease or otherwise dispose of
items of equipment or materials to any other district, to any
cooperative, mutual, consumer-owned or investor-owned utility, to any
federal, state, or local government agency, to any contractor employed
by the district or any other district, utility, or agency, or any
customer of the district or of any other district or utility, from the
district's stores without voter approval or resolution of the
district's board, if such items of equipment or materials cannot
practicably be obtained on a timely basis from any other source, and
the amount received by the district in consideration for any such sale,
conveyance, lease, or other disposal of such items of equipment or
materials is not less than the district's cost to purchase such items
or the reasonable market value of equipment or materials.
(4) A district located within a county with a population of from
one hundred twenty-five thousand to less than two hundred ten thousand
may sell and convey to a city of the first class, which owns its own
water system, all or any part of a water system owned by the district
where a portion of it is located within the boundaries of the city,
without approval of the voters, upon such terms and conditions as the
district shall determine.
(5) A district located in a county with a population of from twelve
thousand to less than eighteen thousand and bordered by the Columbia
river may, separately or in connection with the operation of a water
system, or as part of a plan for acquiring or constructing and
operating a water system, or in connection with the creation of another
or subsidiary local utility district, provide for the acquisition or
construction, additions or improvements to, or extensions of, and
operation of, a sewage system within the same service area as in the
judgment of the district commission is necessary or advisable to
eliminate or avoid any existing or potential danger to public health
due to lack of sewerage facilities or inadequacy of existing
facilities.
(6) A district located within a county with a population of from
one hundred twenty-five thousand to less than two hundred ten thousand
bordering on Puget Sound may sell and convey to any city or town with
a population of less than ten thousand all or any part of a water
system owned by the district without approval of the voters upon such
terms and conditions as the district shall determine.
(7) A district located within a county with a population of from
six hundred fifty thousand to less than seven hundred fifty thousand
bordering on Puget Sound may sell and convey to any city or town with
a population of less than sixty-five thousand which owns its own water
system all or any part of a water system owned by the district without
approval of the voters upon such terms and conditions as the district
shall determine.
(8) A district may sell and convey, lease, or otherwise dispose of,
to any person or entity without approval of the voters and upon such
terms and conditions as it determines, all or any part of an electric
generating project owned directly or indirectly by the district,
regardless of whether the project is completed, operable, or operating,
as long as:
(a) The project is or would be powered by an eligible renewable
resource as defined in RCW 19.285.030; and
(b) The district, or the separate legal entity in which the
district has an interest in the case of indirect ownership, has:
(i) The right to lease the project or to purchase all or any part
of the energy from the project during the period in which it does not
have a direct or indirect ownership interest in the project; and
(ii) An option to repurchase the project or part thereof sold,
conveyed, leased, or otherwise disposed of at or below fair market
value upon termination of the lease of the project or termination of
the right to purchase energy from the project.
(((8))) (9) Districts are municipal corporations for the purposes
of this section. A commission shall be held to be the legislative
body, a president and secretary shall have the same powers and perform
the same duties as a mayor and city clerk, and the district resolutions
shall be held to be ordinances within the meaning of statutes governing
the sale, lease, or other disposal of public utilities owned by cities
and towns.
Sec. 2 RCW 35.92.070 and 1987 c 145 s 1 are each amended to read
as follows:
When the governing body of a city or town deems it advisable that
the city or town purchase, acquire, or construct any such public
utility, or make any additions and betterments thereto or extensions
thereof, it shall provide therefor by ordinance, which shall specify
and adopt the system or plan proposed, and declare the estimated cost
thereof, as near as may be, and the ordinance shall be submitted for
ratification or rejection by majority vote of the voters of the city or
town at a general or special election.
(1) No submission shall be necessary:
(a) When the work proposed is an addition to, or betterment of,
extension of, or an increased water supply for existing waterworks, or
an addition, betterment, or extension of an existing system or plant of
any other public utility;
(b) When in the charter of a city a provision has been adopted
authorizing the corporate authorities thereof to provide by ordinance
for acquiring, opening, or operating any of such public utilities;
((or))
(c) When the corporate authority of a first-class city or code city
adopts an ordinance approving the negotiated purchase of such public
utility within that city which is owned by another city or town; or
(d) When in the judgment of the corporate authority, the public
health is being endangered by the discharge of raw or untreated sewage
into any body of water and the danger to the public health may be
abated by the construction and maintenance of a sewage disposal plant.
(2) Notwithstanding subsection (1) of this section, submission to
the voters shall be necessary if:
(a) The project or work may produce electricity for sale in excess
of present or future needs of the water system;
(b) The city or town does not own or operate an electric utility
system;
(c) The work involves an ownership greater than twenty-five percent
in a new water supply project combined with an electric generation
facility; and
(d) The combined facility has an installed capacity in excess of
five megawatts.
(3) Notwithstanding subsection (1) of this section, submission to
the voters shall be necessary to make extensions to a public utility
which would expand the previous service capacity by fifty percent or
more, where such increased service capacity is financed by the issuance
of general obligation bonds.
(4) Thirty days' notice of the election shall be given in the
official newspaper of the city or town, by publication at least once
each week in the paper during such time.
(5) When a proposition has been adopted, or in the cases where no
submission is necessary, the corporate authorities of the city or town
may proceed forthwith to purchase, construct, and acquire the public
utility or make additions, betterments, and extensions thereto and to
make payment therefor.