HOUSE BILL REPORT

HB 1511

BYRepresentatives Bumgarner, Haugen, Beck, Ferguson and Braddock

Amending provisions for water and sewer districts.

House Committe on Local Government

Majority Report:  The substitute bill be substituted therefor and the substitute bill do pass.  (14)

      Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Beck, Bumgarner, Butterfield, Dorn, Ferguson, Hine, Jones, Nealey, Nelson, Nutley, Rayburn and Zellinsky.

House Staff:Steve Lundin (786-7127)

AS REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 4, 1988

BACKGROUND:

Sewer districts and water districts are authorized expressly to provide systems of sanitary sewers and systems of storm sewers, including sewage treatment facilities, and to provide water work facilities for the provision of water.  Sewer districts and water district are authorized expressly to acquire and own any property, facilities, or services necessary or desirable to carry out its purposes.  No express authority is granted to sewer districts or water districts to provide offices or storage or equipment buildings necessary for their operations.

Express statutory language provides that the rule of strict construction shall not apply to sewer district and water district laws and that such laws are to be construed liberally to carry out the purposes and objects for which the laws are intended.

A sewer district or water district is authorized to sell property it owns if the board finds unanimously that the property is not needed by the district.  Unnecessary real property cannot be sold for less than ninety percent of its appraised value, which appraised value is established by a written appraisal of three disinterested real estate brokers not more than six months prior to its sale.

Sewer districts are allowed to merge with water districts.  When such a merger occurs between two districts, the three members of each of the old boards of commissioners become a six member board of the resulting district.  The number of commissioners is reduced over time to three.

The procedure to incorporate a sewer district or water district involves several steps, including:  (1) the filing of a petition requesting formation of the district, that has been signed by a requisite number of resident voters; (2) review and approval by the boundary review board, if one exists if the county, or otherwise by the county legislative authority concerning compliance with the appropriate comprehensive plans; (3) approval by the county legislative authority concerning the necessity for the district; and (4) voters approving a ballot proposition authorizing the district.

SUMMARY:

SUBSTITUTE BILL:  Sewer districts and water districts are authorized to construct, acquire, and own buildings and other necessary district facilities.

Sewer districts are authorized to sell unnecessary real property below ninety percent of its appraised value if a purchaser cannot be found to buy the property for at least ninety percent of its appraised value after 180 days of offering the property for sale. Such a sale below ninety percent of the property's appraised value must be made at a public auction that has been publicized by publication of a notice for three consecutive weeks in a newspaper of general circulation in the district.

A person who serves on the boards of commissioners of a water district and a sewer district, that are merged together, holds only one position on the board of commissioners of the resulting district and may receive compensation and benefits for only a single commissioner.

The county legislative authority can combine the two hearings required on a proposed incorporation of a sewer district or water district in counties without a boundary review board.  The existence of a water district or sewer district is validated in counties without a boundary review board, if only one of the two required hearings on the proposal were held by the county legislative authority.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  (1) The districts were allowed to acquire and own buildings and other necessary facilities.  (2) The provisions were added concerning a merger of a water district and sewer district.  (3) The provisions were added concerning two hearings on proposed incorporations of water districts or sewer districts.

Fiscal Note:      Not Requested.

Effective Date:The bill contains an emergency clause and takes effect immediately.

House Committee ‑ Testified For:    William Mudge, Washington State Association of Sewer Districts; Joe Daniels, Washington State Association of Water/Wastewater districts; Pat Sizemore, Birch Bay Water District; John Fisher, Olympic View Water and Sewer District; and Marilyn Showalter, representing Foster, Pepper and Shefelman.

House Committee - Testified Against:      None Presented.

House Committee - Testimony For:    A court held that a water district does not possess the authority to have an equipment shed.  It is difficult to sell surplus property at the ninety percent appraised value.  A person tried to vote twice and receive double compensation who was a commissioner of both a water district and a sewer district that were merged.  A water district was created in a county without a boundary review board with only one hearing by the county legislative authority and needs to issue bonds.

House Committee - Testimony Against:      None Presented.