SENATE BILL REPORT

ESHB 1511

BYHouse Committee on Local Government (originally sponsored by Representatives Bumgarner, Haugen, Beck, Ferguson and Braddock)

Amending provisions for water and sewer districts.

House Committe on Local Government

Senate Committee on Governmental Operations

Senate Hearing Date(s):February 26, 1988

Majority Report:  Do pass as amended.

      Signed by Senators McCaslin, Chairman; Zimmerman, Vice Chairman; DeJarnatt, Garrett, Halsan, Metcalf.

Senate Staff:Sam Thompson (786-7754); Eugene Green (786-7410)

                  February 26, 1988

AS REPORTED BY COMMITTEE ON GOVERNMENTAL OPERATIONS, FEBRUARY 26, 1988

BACKGROUND:

Sewer districts and water districts are authorized to provide systems of sanitary sewers and storm sewers, sewage treatment facilities, and facilities to furnish water.  These districts are authorized also to acquire and own property, facilities, or services necessary or desirable to carry out their purposes.  However, no express authority is granted to sewer districts or water districts to provide offices, storage buildings or equipment buildings that are necessary for their operations.

A sewer district or water district is authorized to sell its property if the district board of commissioners determines that the property is not needed.  Property cannot be sold for less than 90 percent of its appraised value.  The appraised value is established by three real estate brokers. 

Sewer districts and water districts are allowed to merge.  When 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: the filing of a petition, signed by a requisite number of resident voters requesting formation of the district; review and approval by the boundary review board, if one exists in the county, otherwise by the county legislative authority; final approval by the county legislative authority; and voter approval of a ballot proposition authorizing the district.

The county treasurer acts as the treasurer of sewer districts and water districts located within the county.  Districts with 2,500 or more customers may appoint their own treasurer, if authorized by the county treasurer.  An appointed treasurer possesses the powers of the county treasurer and county auditor for the district concerning the creation of funds, issuance of warrants, and investment of district moneys.

SUMMARY:

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 90 percent of its appraised value if a purchaser cannot be found to buy the property for at least 90 percent of its appraised value 180 days after the property is offered for sale. A sale below 90 percent of value must be made at a public auction that has been publicized 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 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.

The appointed treasurer of a sewer district or water district with over 2,500 customers possesses all powers of the county treasurer for the district, and those powers of the county auditor for the district that relate to financial matters.

SUMMARY OF PROPOSED SENATE AMENDMENT:

Language authorizing sewer and water districts to construct, acquire, and own buildings and other necessary district facilities is stricken.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested

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

Senate Committee - Testified: Joe Daniels, Washington State Association of Water and Wastewater Districts (for); Bill Mudge, Washington State Association of Sewer Districts (for)