SENATE BILL REPORT

EHB 1989

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

As Reported by Senate Committee On:

Agriculture, Water & Rural Economic Development, March 17, 2015

Title: An act relating to water storage asset management services.

Brief Description: Concerning water storage asset management services.

Sponsors: Representatives Dent and Takko.

Brief History: Passed House: 3/03/15, 97-0.

Committee Activity: Agriculture, Water & Rural Economic Development: 3/12/15, 3/17/15 [DPA].

SENATE COMMITTEE ON AGRICULTURE, WATER & RURAL ECONOMIC DEVELOPMENT

Majority Report: Do pass as amended.

Signed by Senators Warnick, Chair; Hatfield, Ranking Minority Member; Hobbs and Honeyford.

Staff: Diane Smith (786-7410)

Background: Some municipal water purveyors own and store water in above-ground water tanks. These tanks need design, management, equipment, maintenance, financing, and so forth on an ongoing basis that the municipality is responsible for providing.

Summary of Bill: The bill as referred to committee not considered.

Summary of Bill (Recommended Amendments): Explicit authority is given to any municipality to choose to contract for asset management services for their water storage assets. A water storage asset is defined as the water storage structure and associated distribution systems, such as the water tank, tower, well, meter, or water filter. Water storage asset management services are defined as the financing, designing, improving, operating, maintaining, administering, testing, inspecting, cleaning, or managing of a water storage asset.

If choosing to contract, the municipality must proceed by a public announcement requesting proposal. The municipality establishes the criteria for the best proposal. A fair and reasonable contract may be negotiated with the firm that submits the best proposal.

EFFECT OF CHANGES MADE BY AGRICULTURE, WATER & RURAL ECONOMIC DEVELOPMENT COMMITTEE (Recommended Amendments): Adds emphasis to the optional, voluntary nature of the act. Corrects a parallel reference.

Appropriation: None.

Fiscal Note: Available.

Committee/Commission/Task Force Created: No.

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

Staff Summary of Public Testimony as Heard in Committee: PRO: This bill is brought on the behalf of Quincy. This kind of long-term contract gives stability to the city's budgeting. It will save them tax dollars to have long-term management agreements instead of having to contract out for every single operation the water tanks need. The Municipal Research and Services Center stated that audit findings could be made since there is no explicit statutory authority for municipalities to enter into this type of contract. The intent of the bill is to be permissive only.

Persons Testifying: PRO: Representative Dent, prime sponsor; Michael Shaw, Utility Services; Tim Snead, Scott Cave, city of Quincy.

Persons Signed in to Testify But Not Testifying:  No one.