HOUSE BILL REPORT

HB 1217

BYRepresentatives 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 REPORTED BY COMMITTEE ON LOCAL GOVERNMENT FEBRUARY 2, 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:

SUBSTITUTE BILL:  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.

SUBSTITUTE BILL COMPARED TO ORIGINAL:  (1) Language was deleted permitting water and sewer districts to provide insurance for their commissioners.  (2) The changes were added concerning consolidations and mergers.  (3)  The maximum value of water district property that can be sold without a formal notice of intention was raised to $500.  (4) Language was stricken concerning the purchase of district property by sewer district commissioners and employees.  (5) Changes were added to the boundary review board statutes concerning noncontiguous annexations, mergers, or consolidations.  (6) Water districts were permitted to contract with other entities to manage their water systems.

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.