HOUSE BILL REPORT
SHB 1217
As Amended by the Senate
BYHouse Committee on Local Government (originally sponsored by Representatives Cooper, Ferguson, Haugen and Hine)
Revising 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. (13)
Signed by Representatives Haugen, Chair; Cooper, Vice Chair; Ferguson, Ranking Republican Member; Horn, Nealey, Nelson, Nutley, Phillips, Raiter, Rayburn, Todd, Wood and Zellinsky.
House Staff:Steve Lundin (786-7127)
AS PASSED HOUSE MARCH 13, 1989
BACKGROUND:
Sewer districts and water districts are authorized to acquire property necessary for their purposes, and may provide sewer or water facilities.
A sewer district or water district is permitted to annex territory adjoining or in close proximity to the district. A sewer district or water district located in a fifth class or smaller county that is composed entirely of islands may annex any non-adjoining territory.
Two or more sewer districts, or water districts, are permitted to consolidate or merge if they are adjacent or in close proximity to each other.
The board of commissioners of a sewer district, or a water district, may sell district property if the property is determined not to be needed by a unanimous vote of the elected members of the board. A notice of intention to sell such property must be made. However, no notice need be made if sewer district personal property of less than $500 in value is proposed to be sold, or if water district personal property of less than $250 in value is proposed to be sold. Property sold by a sewer district without notice may not be purchased by a commissioner or an employee of the district, nor by relatives of the commissioners or employees.
General laws prohibit any local government official from entering into a sales contract with the local government.
Real property owned by a sewer district, or water district, may not be sold for less than 90 percent of its value established by a written appraisal within six months of sale.
SUMMARY:
Sewer districts and water districts are authorized to construct, acquire, and own buildings and other necessary facilities.
A sewer district, or water district, may annex any territory located in the same county or counties in which the district is located or any other territory that is adjoining or in close proximity to the district.
Any two or more sewer districts, or two or more water districts, may merge or consolidate.
Boundary review board objectives are amended to allow non- contiguous annexations, mergers or consolidations by sewer districts or water districts.
The voting requirement is altered from a unanimous vote of the elected members of a sewer district or water district board of commissioners to a majority vote of the board members, for determinations of whether district property is not needed and therefore may be sold. The maximum value of water district personal property, that may be sold without the provision of a notice of intention to sell, is raised from less than $250 to less than $500.
Language is deleted that prohibited sewer district or water district commissioners or employees from acquiring district property that is sold without the making of a formal notice of intention.
A sewer district or water district is permitted to sell real property for less than 90 percent of its value if the real property is valued at less than $500.
Water districts are permitted to contract to manage other water systems.
EFFECT OF SENATE AMENDMENTS: The striking amendment includes all of the substitute bill, as passed by the House of Representatives.
The authority of sewer districts and water districts to impose connection charges is limited by establishing criteria to calculate such charges, limiting interest charges that may be included on the connection charges over time to take inflation into account, and precluding the cost of facilities that is financed by grant or donation from being included in the calculation of connection charges. Revenues from connection charges are to be considered payments in aid of construction as defined by the Department of Revenue.
The general comprehensive plans of a sewer or water district must include a long-term capital improvement plan if an area is annexed to the district.
Standards are provided for the contract between a sewer or water district and a private party concerning the construction of a sewer or water line by the private party that is connected to the sewer or water system of the district.
Sewer or water districts are authorized to join private persons in financing sewer or water systems that are connected to the district's system, and the district may be reimbursed in the same manner as the private persons are reimbursed over a 15 years after construction of such systems when someone else connects to this sewer or water system extension.
The board of commissioners of a sewer or water district that has 50 or fewer residents may adopt a resolution expanding the electorate of the district from registered voters who reside in the district to include: (1) any person who holds title to real property located in the district; and (2) any domestic corporation of domestic partnership that holds title to real property located in the district. Such persons, and the authorized agents of such corporations and partnerships, are deemed to be eligible to hold office as a sewer or water district commissioner.
Whenever a sewer or water district has so expanded its potential electorate, it shall maintain a list of presumed eligible voters for the district. A copy of this list shall be provided to the county auditor.
Fiscal Note: Not Requested.
House Committee ‑ Testified For: Pat Sizemore, Birch Bay Water and Sewer District; Dan Caldwell, Water District No. 75; Bill Mudge, Washington State Association of Sewer Districts; and Joe Daniels, Washington Association of Water and Wastewater Association.
House Committee - Testified Against: None Presented.
House Committee - Testimony For: These are mainly technical changes. A superior court ruled that a water district cannot own a tool shed. This permits districts to own their buildings and tool sheds. Striking the language concerning purchases by sewer district commissioners or employees, places sewer district officials under the general state law prohibiting local government officials from entering into sales contracts with the local government. Noncontiguous annexations, consolidations and mergers will allow utility service to be provided without increasing the number of special districts. Marginal private water systems can contract with a water district to manage the system.
House Committee - Testimony Against: None Presented.