AN ACT Relating to street utilities; and adding a new chapter to Title 82 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1. With the advent of higher costs for the maintenance, operation, and preservation of city streets and the decrease of availability of money derived from the traditional sources to finance such maintenance, operation, and preservation, cites and towns face greater exposure to liability for failing to carry out their duties with respect to their streets, and the general public is exposed to greater risks to their health and safety because of the growing inability of cities and towns to maintain, operate, and preserve streets and roads. Cities and towns should be given the option and opportunity to maintain, operate, and preserve their streets consistent with state law, as a separate enterprise and facility comparable to the utility services now furnished by municipalities.

NEW SECTION. Sec. 2. A city or town may elect by action of its legislative authority to own, maintain, operate, and preserve all or any described portion of its streets as a separate enterprise and facility, known as a street utility, and from time to time add other existing or new streets to that street utility, with full power to own, maintain, operate, and preserve. The legislative authority of the city or town may include as a part of the street utility, street lighting, traffic control devices, sidewalks, curbs, gutters, parking facilities, and drainage facilities. The legislative authority of the city or town is the governing body of the street utility.

NEW SECTION. Sec. 3. A city or town electing to own, maintain, operate, and preserve its streets as a separate street utility may levy periodic charges for the use or availability of the streets in order to meet up to fifty percent of the actual costs for maintenance, operation, and preservation of facilities under the jurisdiction of the street utility, subject to a referendum vote under section 5 of this act. The rates charged for the use must be uniform for the same class of service. In classifying service furnished, the city or town legislative authority may consider the following factors: The difference in cost of service to the various users; the location of the various users within the city or town; the difference in cost of maintenance, operation, and preservation of the various parts of the utility; the different character of the service furnished various users; the size and quality of the street service furnished; the time of its use; and any other matters that present a reasonable basis for distinction. Charges may be made against owners or occupants of real property based on the burden imposed on or benefits received from the streets by each class of such owners or occupants. Charges against owners of property that is exempt from property tax or leasehold tax shall be based solely on the number of employees of the tax exempt body associated with the property. The charges shall not be computed on the basis of an ad valorem charge on the underlying real property and improvements. This section shall not be used as a basis to directly or indirectly charge transportation impact fees or mitigation fees of any kind against new development. A city or town may contract with any other utility or local government to provide for billing and collection of the street utility charges.

Any city or town ordinance or resolution creating a street utility must contain a provision granting to any employer a credit against any street utility charge the full amount of any commuter or employer tax paid for transportation purposes by that employer.

NEW SECTION. Sec. 4. The city or town electing to own, maintain, operate, and preserve its streets and related facilities as a utility under this chapter may finance the operation, maintenance, and preservation through local improvement districts, utility local improvement districts, or with proceeds from general obligation bonds and revenue bonds payable from the charges issued in accordance with chapter 35.41 or 35.92 RCW, or any combination thereof subject to a referendum vote under section 5 of this act. The city or town may use, in addition to the charges authorized by section 3 of this act, funds from general taxation, money received from the federal, state, or other local governments, and other funds made available to it.

NEW SECTION. Sec. 5. A referendum petition to repeal a city or town ordinance imposing a charge authorized under this chapter must be filed with a filing officer, as identified in the ordinance, within seven days of passage of the ordinance. Within ten days, the filing officer shall confer with the petitioner concerning form and style of the petition, issue an identification number for the petition, and write a ballot title for the measure. The ballot title shall be posed as a question so that an affirmative answer to the question and an affirmative vote on the measure results in the charge being imposed and a negative answer to the question and a negative vote on the measure results in the charge not being imposed. The petitioner shall be notified of the identification number and ballot title within this ten-day period.

After this notification, the petitioner has thirty days in which to secure on petition forms the signatures of not less than fifteen percent of the registered voters of the city or town and to file the signed petitions with the filing officer. Each petition form must contain the ballot title and the full text of the measure to be referred. The filing officer shall verify the sufficiency of the signatures on the petitions. If sufficient valid signatures are properly submitted, the filing officer shall submit the referendum measure to the city or town voters at a general or special election held on one of the dates provided in RCW 29.13.010 as determined by the city or town legislative authority, which election shall not take place later than one hundred twenty days after the signed petition has been filed with the filing officer.

The referendum procedure provided in this section is the exclusive method for subjecting any city or town ordinance imposing a charge under this chapter to a referendum vote.

NEW SECTION. Sec. 6. Sections 1 through 5 of this act shall constitute a new chapter in Title 82 RCW.