Revised          HOUSE OF REPRESENTATIVES

                      Olympia, Washington

Bill Analysis      Bill No. HB 1643

Voter approval/city assumption/water-sewer systems   Public Hrg:  2/14/97

Brief Title

Reps. D. Schmidt/Scott/Sommers                        Staff Contact: S. Lundin

Sponsor                                    Comm. on Govt. Admin.

                                           Phone: 786-7127

BACKGROUND:

A city or town that includes all or part of a water district or sewer district within its boundaries may assume control of all or part of the district=s utility operations.

If all the territory of a water district or sewer district is included within the boundaries of a city or town, the city or town legislative body may adopt an ordinance assuming control over all of the district=s utility services, property, assets, and liabilities.

If 60 percent or more of either the area or assessed valuation of a water district or sewer district is included within the boundaries of a city or town, the city or town legislative body may adopt an ordinance assuming control over either: (1) All of the district=s utility services, property, assets, and liabilities located inside the city or town; or (2) all the district=s utility services, property, assets, and liabilities located both inside and outside of the city or town.

If less than 60 percent of the area and assessed valuation of a water district or sewer district is included within the boundaries of a city or town, the city or town legislative body may adopt an ordinance assuming control over all of the district=s utility services, property, assets, and liabilities located inside the city or town.

Whenever a city or town has assumed control over only a portion of a water district=s or sewer district=s services, property, assets, and liabilities, the board of commissioners of the district may submit a ballot proposition to the voters of the entire district that requires the city or town also to assume the responsibility to assume control over the district=s services throughout the remainder of the district outside of the city or town.

                                                     Continued

HB 1643 - Page 2

SUMMARY:

A city or town could assume control over the utility services, property, assets, and liabilities of a water district only if ratified by resolution of the board of commissioners of the water district and a ballot proposition ratifying the assumption is approved by the voters of the water district.  Any resolution of this issue shall include a guaranty that the customers of the city or town who do not live within the city or town limits are treated equally with those who live within the city limits..

FISCAL NOTE:  Not requested.

EFFECTIVE DATE:  Ninety days after adjournment of session in which bill is passed.