S-2092

AN ACT Relating to the assumption of water-sewer districts; amending RCW 35.13A.020, 35.13A.030, 35.13A.050, 35.13A.060, 35.13A.070, 35.13A.090, 36.70A.030, 36.70A.215, 36.93.090, and 57.16.010; adding new sections to chapter 35.13A RCW; adding a new section to chapter 36.70A RCW; and repealing RCW 35.13A.0301.

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

NEW SECTION. Sec. 1. A new section is added to chapter 35.13A RCW to read as follows:

(1) Prior to a city legislative body adopting a resolution or ordinance assuming all or part of a district, the city shall prepare a study which discusses financial, operational, and physical aspects of the proposed full or partial assumption. Within thirty days of a city's request, the district shall provide copies of all documents, including but not limited to drafts and interagency memoranda, records, information, and data identified by the city as necessary for preparation of the study. The public disclosure act, including the exemptions from disclosure, does not apply to a city's request under this section.

(2) Following completion, the city shall make the study available for public review by providing copies at public offices and libraries designated by the city and located within or near the proposed assumption area. Prior to adoption of a resolution or ordinance under this chapter assuming all or part of a district, the legislative body of the city shall hold a public hearing to gather public comments on the proposed assumption. Upon conclusion of the public hearing, the city's legislative body may adopt a resolution or ordinance assuming all or part of a district, as provided by this chapter.

(3) The procedures in this chapter shall be the only process applicable to a city or town's assumption of jurisdiction over a water-sewer district. The action of a city council adopting a resolution or ordinance assuming jurisdiction shall be final and conclusive unless a vote is required under RCW 35.13A.050 or pursuant to a referendum petition where the assuming city or town has provided for a referendum under RCW 35.17.230, 35.22.200, 35A.11.080, or 35A.29.170.

Sec. 2. RCW 35.13A.020 and 1998 c 326 s 2 are each amended to read as follows:

(1) Whenever all of the territory of a water‑sewer district is included within the corporate boundaries of a city, the city legislative body may adopt a resolution or ordinance to assume jurisdiction over all of the district.

(2) Upon the effective date of the assumption ordinance or resolution, the district shall be dissolved to the same extent as if pursuant to a superior court order of dissolution under RCW 35.13A.080. Furthermore, upon the effective date of the assumption ordinance or resolution, all real and personal property, franchises, rights, assets, taxes levied but not collected for the district for other than indebtedness, water, sewer, and drainage facilities, and all other facilities and equipment of the district shall become the property of the city subject to all financial, statutory, or contractual obligations of the district for the security or performance of which the property may have been pledged. The city, in addition to its other powers, shall have the power to manage, control, maintain, and operate the property, facilities and equipment and to fix and collect service and other charges from owners and occupants of properties so served by the city, subject, however, to any outstanding indebtedness, bonded or otherwise, of the district payable from taxes, assessments, or revenues of any kind or nature and to any other contractual obligations of the district.

(((3) The city may by resolution or ordinance of its legislative body, assume the obligation of paying such district indebtedness and of levying and of collecting or causing to be collected the district taxes, assessments, and utility rates and charges of any kind or nature to pay and secure the payment of the indebtedness, according to all of the terms, conditions and covenants incident to the indebtedness, and shall assume and perform all other outstanding contractual obligation of the district in accordance with all of their terms, conditions, and covenants. An assumption shall not be deemed to impair the obligation of any indebtedness or other contractual obligation. During the period until the outstanding indebtedness of the district has been discharged, the territory of the district and the owners and occupants of property therein, shall continue to be liable for its and their proportionate share of the indebtedness, including any outstanding assessments levied within any local improvement district or utility local improvement district thereof. The city shall assume the obligation of causing the payment of the district's indebtedness, collecting the district's taxes, assessments, and charges, and observing and performing the other district contractual obligations. The legislative body of the city shall act as the officers of the district for the purpose of certifying the amount of any property tax to be levied and collected therein, and causing service and other charges and assessments to be collected from the property or owners or occupants thereof, enforcing the collection and performing all other acts necessary to ensure performance of the district's contractual obligations in the same manner and by the same means as if the territory of the district had not been included within the boundaries of a city.

When a city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service and other charges have accrued for this purpose but have not been collected by the district prior to the assumption, the same when collected shall belong and be paid to the city and be used by the city so far as necessary for payment of the indebtedness of the district existing and unpaid on the date the city assumes the indebtedness. Any funds received by the city which have been collected for the purpose of paying any bonded or other indebtedness of the district, shall be used for the purpose for which they were collected and for no other purpose. Any outstanding indebtedness shall be paid as provided in the terms, conditions, and covenants of the indebtedness. All funds of the district on deposit with the county treasurer at the time of title transfer shall be used by the city solely for the benefit of the assumed utility and shall not be transferred to or used for the benefit of the city's general fund.))

NEW SECTION. Sec. 3. A new section is added to chapter 35.13A RCW to read as follows:

When a city assumes the full and complete jurisdiction for an entire district, the city shall by resolution or ordinance of its legislative body, assume the obligation of paying any district indebtedness and of levying and collecting or causing to be collected the district taxes, assessments, and utility rates and charges of any kind or nature to pay and secure the payment of the indebtedness, according to all of the terms, conditions, and covenants incident to the indebtedness, and shall assume and perform all other outstanding contractual obligations of the district in accordance with all of their terms, conditions, and covenants, except as provided by the following: A district may not take any action that would establish or have the effect of establishing different contractual obligations, requirements for retiring indebtedness, authority to issue debt in parity with the district's existing outstanding indebtedness, rates of compensation, or terms of employment contracts, if a city assumes jurisdiction of all or a portion of the district. Should any such obligations, requirements, terms or provisions be enacted by a district, they shall not be binding on a city which assumes or attempts to assume the district. Nothing in this section shall be construed to prevent a district from issuing obligations on a parity with its outstanding obligations, to repeat terms and conditions of obligations provided with respect to earlier parity obligations, or to provide covenants that are customary for obligations of similar utilities whether those utilities are operated by cities or special purpose districts, provided such obligations do not establish or have the effect of establishing different contractual obligations, requirements for retiring indebtedness, authority to issue debt, rates of compensation, or terms of contracts or covenants in the event the district is assumed by a city.

When a city assumes only a portion of a district under this chapter, it shall assume the responsibility for the proportionate share of district indebtedness for the area and properties which are assumed. Following the effective date of the assumption, the district may not issue new debt or contractual obligations that would be binding on the property, its owners, and occupants within the area that has been assumed by the city under this provision.

An assumption shall not be deemed to impair the obligation of any indebtedness or other contractual obligation, except as provided in this section. During the period until the outstanding indebtedness of the district has been discharged, the territory of the district, and the owners and occupants of property therein, shall continue to be liable for it and their proportionate share of the indebtedness, including any outstanding assessments levied within any local improvement district or utility local improvement district thereof. The city shall assume the obligation of causing the full or proportionate share of the payment of the district's indebtedness, collecting the district's taxes, assessments, and charges, and observing and performing the other district's contractual obligations. The legislative body of the city shall act as the officers of the district for the purpose of certifying the amount of any property tax to be levied within the assumed area and collected therein, and causing service and other charges and assessments to be collected from the property or owners or occupants thereof, enforcing the collection, and performing all other acts necessary to ensure performance of the district's contractual obligations in the same manner and by the same means as if the territory of the district had not been included within the boundaries of a city.

When a city assumes the obligation of paying the outstanding indebtedness, and if property taxes or assessments have been levied and service and other charges have accrued for this purpose, but have not been collected by the district prior to the assumption, the same when collected shall belong and be paid to the city and be used by the city so far as necessary for payment of the indebtedness of the district existing and unpaid on the date the city assumes the indebtedness. Any funds received by the city which have been collected for the purpose of paying any bond or other indebtedness of the district shall be used for the purpose for which they were collected and for no other purpose. Except as otherwise provided in this section, any outstanding indebtedness shall be paid as provided in the terms, conditions, and covenants of the indebtedness. All funds of the district on deposit with the county treasurer on the effective date of the assumption shall be used by the city solely for the benefit of the assumed utility and shall not be transferred into the city's general fund.

If one or more cities initiates an assumption by taking any actions provided for in this chapter, the district or districts proposed to be assumed may not spend any district funds on a public relations campaign or lobbying effort the purpose of which is to generate individual or public opposition to: (1) Approval of the assumption by a boundary review board or a board of county commissioners; or (2) the outcome of an election under RCW 35.13A.050 or a referendum petition, if available. This section shall not be construed as prohibiting the district or districts from including factual information about the assumption in monthly bills sent to district ratepayers: PROVIDED, That as part of any such factual information the district or districts must, at their own cost, provide the assuming city or cities equal time and space to provide such supplemental factual information deemed appropriate by the city or cities.

Sec. 4. RCW 35.13A.030 and 1971 ex.s. c 95 s 3 are each amended to read as follows:

Whenever a portion of a water-sewer district ((~~or sewer district~~)) equal to at least sixty percent of the area or sixty percent of the assessed valuation of the real property lying within such district, is included within the corporate boundaries of a city, the city may assume by ordinance the full and complete management and control of that portion of the entire district not included within another city((~~, whereupon~~)) or cities or, at the assuming city's discretion, that portion of the entire district included within the assuming city or cities and their urban growth area designated under RCW 36.70A.210. If prior to the effective date of the assumption, the cities in which the district is located have reached an agreement approving of the full and complete assumption of the district by the city initiating the assumption, the provisions of RCW 35.13A.020 and section 3 of this act shall be operative((~~; or~~)). In the alternative, the assuming city may, at its option, proceed directly under the provisions of RCW 35.13A.050.

Sec. 5. RCW 35.13A.050 and 1971 ex.s. c 95 s 5 are each amended to read as follows:

When electing under RCW 35.13A.030 or 35.13A.040 to proceed under this section, the city may assume, by ordinance, jurisdiction of the district's responsibilities, property, facilities and equipment within the corporate limits of the city: PROVIDED, That if on the effective date of such an ordinance the territory of the district included within the city contains any facilities serving or designed to serve any portion of the district outside the corporate limits of the city or if the territory lying within the district and outside the city contains any facilities serving or designed to serve territory included within the city (which facilities are hereafter in this section called the "serving facilities"), the city or district shall for the economically useful life of any such serving facilities make available sufficient capacity therein to serve the sewage or water requirements of such territory, to the extent that such facilities were designed to serve such territory at a rate charged to the municipality being served which is reasonable to all parties.

Alternatives and provisions for serving facilities and rates charged to the municipality being served shall be evaluated in the study required in section 1 of this act. The city and the district shall enter into a contract, consistent with RCW 35.13A.070, for the operation, maintenance, and cost sharing for the serving facilities as well as for the division of assets, liabilities, employees, debt, and other contractual obligations relative to the area being assumed by the city. In the event that no agreement by good faith negotiations, including mediation where appropriate, can be reached between the city and the district within one hundred eighty calendar days from the adoption of the ordinance, the matter shall be resolved by a board of arbitrators, to be convened at the request of either party; such board of arbitrators to consist of a representative from the city or town involved, a representative of the district, and a third representative to be appointed by the other two representatives. If no agreement can be reached with regard to the third representative, the third representative shall be appointed by a judge of the superior court of the county of jurisdiction. The determination by the board of arbitrators shall be binding on all parties. Each party shall pay the costs of their individual representatives on the board of arbitrators and they shall pay one‑half of the cost of the third representative.

In the event a city proceeds under this section, the district may elect upon a favorable vote of a majority of all voters within the district voting upon such propositions to require the city to assume ((responsibility for the operation and maintenance of the district's property, facilities and equipment throughout the entire district and to pay the city a charge for such operation and maintenance which is reasonable under all of the circumstances)) the full and complete management and control of the entire district, whereupon the provisions of RCW 35.13A.020 and section 3 of this act shall be operative. Such a vote may not invalidate an assumption of the portion of the district within the corporate limits by the city under the provisions of this chapter.

A city acquiring property, facilities and equipment under the provisions of this section shall ((acquire such property, facilities and equipment, and fix and collect service and other charges from owners and occupants of properties served by the city, subject, to any contractual obligations of the district which relate to the property, facilities, or equipment so acquired by the city or which are secured by taxes, assessments or revenues from the territory of the district included within the city. In such cases, the property included within the city and the owners and occupants thereof shall continue to be liable for payment of its and their proportionate share of any outstanding district indebtedness. The district and its officers shall continue to levy taxes and assessments on and to collect service and other charges from such property, or owners or occupants thereof, to enforce such collections, and to perform all other acts necessary to insure performance of the district's contractual obligations in the same manner and by the same means as if the territory of the district had not been included within the boundaries of a city)) be subject to the outstanding indebtedness and contractual obligation requirements of section 3 of this act.

Sec. 6. RCW 35.13A.060 and 1971 ex.s. c 95 s 6 are each amended to read as follows:

Whenever more than one city, in whole or in part, is included within a ((~~water district or sewer~~)) water-sewer district, the city which has within its boundaries sixty percent or more of the area of the assessed valuation of the district (in this section referred to as the "principal city") may, with the approval of any other city containing part of such district, assume responsibility for operation and maintenance of the district's property, facilities and equipment within such other city and make and enforce such charges for operation, maintenance and retirement of indebtedness as may be reasonable under all the circumstances.

Whenever more than sixty percent of the area or assessed valuation of any water-sewer district is included within the boundaries of more than one city, the cities may enter into a contract under the provisions of RCW 35.13A.070 to mutually assume by ordinances of each city the full and complete management and control of the entire district, whereupon the provisions of RCW 35.13A.020 and section 3 of this act shall be operative.

Any other city having less than sixty percent in area or assessed valuation of such district, within its boundaries may install facilities and create local improvement districts or otherwise finance the cost of installation of such facilities and if such facilities have been installed in accordance with reasonable standards fixed by the principal city, such other city may connect such facilities to the utility system of such district operated by the principal city upon providing for payment by the owners or occupants of properties served thereby, of such charges established by the principal city as may be reasonable under the circumstances.

NEW SECTION. Sec. 7. A new section is added to chapter 35.13A RCW to read as follows:

(1) In the event a city or cities elect to assume jurisdiction over all or a portion of a district that is only partially included within any city's corporate boundaries, then upon the completion of all reports required by section 1 of this act, the assuming city shall adopt a resolution to submit to a ballot proposition to district voters residing outside of any city boundaries, which, if approved, requires the district outside of any city boundaries to be assumed by the city or cities. The result of the proposition shall not affect an assumption of district territory located within city boundaries. The cost of the election shall be paid for by the assuming city or cities.

(2) A ballot proposition shall not be submitted to voters if all of the territory of the district is located within the corporate boundaries of a city and a city assumes a district under RCW 35.13A.020.

(3) A ballot proposition shall not be required when all of the territory of a district is located within the corporate boundaries of more than one city when the cities have entered into agreements in accordance with RCW 35.13A.070.

(4) Within twenty-four months after the effective date of an assumption by a city over part of the territory of a district, the district customers remaining outside of any city boundaries may deliver a petition for assumption declaring their intent to require the assuming city to assume jurisdiction of all remaining territory of the district, to assume the district indebtedness, and to provide for the dissolution of the district. The petition must be signed by the owners, as defined by RCW 35A.01.040(9) (a) through (d) of not less than sixty percent in value, according to the assessed valuation for general taxation of the property. After the completion of all reports required by section 1 of this act and the city receiving the petition for assumption, the city shall submit a ballot proposition to district voters residing outside of any city corporate boundaries which, if approved, provides for the city assuming jurisdiction over the remaining territory in the district under RCW 35.13A.020, including assumption of all indebtedness, and dissolution of the district. In the event the proposition is approved, the city shall assume jurisdiction over the remaining district territory. All costs of the election shall be paid for by the district.

(5) These ballot propositions shall be submitted to eligible voters at either a general municipal or special election which shall be held within one hundred eighty days of the city's adoption of its election resolution or receipt of the petition for assumption. The request for a special election, if any, the notices of the election, and the conduct of the election shall be in accordance with general election laws. The proposition must be approved by a majority of the voters to be effective.

(6) The requirement for an election set forth in RCW 35.92.070 does not apply to assumption actions commenced under this chapter.

(7) Pursuant to RCW 42.17.130, no public facilities of the city or of the district may be used to support or oppose the proposed assumption following the city's adoption of a resolution to submit a ballot proposition to the district voters residing outside any city proposing to assume the district.

(8) In the event of a vote under subsection (1) of this section resulting in an assumption by the city of the entire district, the rates charged for water-sewer service shall be and remain the same for both the area of what was formerly the district inside the boundaries of the city and the service area of the city that was formerly the area of the district that was outside the boundaries of the city.

(9) In the event that a district is assumed by a city under subsection (4) of this section, the rates for water-sewer service shall be the same as provided in subsection (8) of this section.

(10) In the event that the portion of a district outside the boundaries of the city elects to remain outside the service area of the city's water-sewer service by voting against assumption under subsection (1) of this section and does not petition for assumption and vote to be assumed under subsection (4) of this section, then the rates for water-sewer service may not be equalized as provided by subsection (8) of this section if the district is assumed at a time more than two years after the effective date of the assumption by the city over part of the district.

Sec. 8. RCW 35.13A.070 and 1997 c 426 s 2 are each amended to read as follows:

Notwithstanding any provision of this chapter to the contrary, one or more cities and one or more districts may, through their legislative authorities, authorize a contract with respect to the rights, powers, duties, and obligation of such cities, or districts with regard to the use and ownership of property, the providing of services, the maintenance and operation of facilities, allocation of cost, financing and construction of new facilities, application and use of assets, disposition of liabilities and debts, the performance of contractual obligations, and any other matters arising out of the inclusion, in whole or in part, of the district or districts within any city or cities, or the assumption by the city of jurisdiction of a district under RCW 35.13A.110. The contract may provide for the furnishing of services by any party thereto and the use of city or district facilities or real estate for such purpose, and may also provide for the time during which such district or districts may continue to exercise any rights, privileges, powers, and functions provided by law for such district or districts as if the district or districts or portions thereof were not included within a city or were not subject to an assumption of jurisdiction under RCW 35.13A.110, including but not by way of limitation, the right to promulgate rules and regulations, to levy and collect special assessments, rates, charges, service charges, and connection fees, to adopt and carry out the provisions of a comprehensive plan, and amendments thereto, for a system of improvements, and to issue general obligation bonds or revenue bonds in the manner provided by law. The contract may provide for the transfer to a city of district facilities, property, rights, and powers as provided in RCW 35.13A.030, 35.13A.050, and 35.13A.110, whether or not ((~~sixty percent or~~)) any of the area or assessed valuation of real estate lying within the district or districts is included within such city. The contract may provide that any party thereto may authorize, issue, and sell revenue bonds to provide funds for new water or sewer improvements or to refund any water revenue, sewer revenue, or combined water and sewer revenue bonds outstanding of any city, or district which is a party to such contract if such refunding is deemed necessary, providing such refunding will not increase interest costs. The contract may provide that any party thereto may authorize and issue, in the manner provided by law, general obligation or revenue bonds of like amounts, terms, conditions, and covenants as the outstanding bonds of any other party to the contract, and such new bonds may be substituted or exchanged for such outstanding bonds. However, no such exchange or substitution shall be effected in such a manner as to impair the obligation or security of any such outstanding bonds.

Sec. 9. RCW 35.13A.090 and 1971 ex.s. c 95 s 9 are each amended to read as follows:

Whenever a city ((~~acquires all of the facilities of a water district or sewer district, pursuant to this chapter, such a city~~)) or cities assume jurisdiction over an entire water-sewer district pursuant to RCW 35.13A.020, 35.13A.030, or section 3 of this act, the assuming city or cities shall offer to employ every full time employee of the district who, as of the effective date of the assumption, is engaged in the operation of ((~~such a~~)) the district's facilities ((~~on the date on which such city acquires the district facilities~~)). When a city ((~~acquires any portion of the facilities of such a district, such a city~~)) or cities assume jurisdiction over only a portion of the district, the assuming city or cities shall offer to employ those full time employees of the district ((~~as of the date of the acquisition of the facilities of the district who are not longer needed by the district~~)) who, as of the effective date of the assumption, are engaged in the operation of those facilities over which the city or cities have assumed jurisdiction. This section shall not require an assuming city to extend offers of employment to employees engaged in management functions as opposed to operation of facilities, unless required by the terms of a collective bargaining agreement.

Whenever a city employs a person who was employed immediately prior thereto by the district, arrangements shall be made:

(1) ((~~For the retention of service credits under the pension plan of the district pursuant to RCW 41.04.070 through 41.04.110.~~

~~(2)~~)) For the retention of all sick leave standing to the employee's credit in the plan of such district.

((~~(3)~~)) (2) For a vacation with pay during the first year of employment equivalent to that to which he would have been entitled if he had remained in the employment of the district.

If one or more cities initiates an assumption by taking any actions provided for in this chapter, the district or districts may not enter into any written employment contracts with any person who, on the date the assumption was initiated, was an employee of the district or districts, unless the employee's position was not an "at will" position prior to the initiation of the assumption and a written employment contract for the position was previously in effect. Furthermore, any written employment contracts entered into within sixty days prior to the initiation of the assumption, where the position was not an "at will" position prior to execution of the written employment contract, are voidable upon the effective date of the assumption at the discretion of the assuming city or cities.

NEW SECTION. Sec. 10. A new section is added to chapter 36.70A RCW to read as follows:

The policies required to be addressed pursuant to RCW 36.70A.210(3)(b) shall include policies providing for assumptions of an urban service or urban services by a general local government from a special district government in those cases where that local government is willing and able to assume such services and the area to be served lies wholly or partially within the local government's corporate or urban growth boundaries.

Sec. 11. RCW 36.70A.030 and 1997 c 429 s 3 are each amended to read as follows:

Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.

(1) "Adopt a comprehensive land use plan" means to enact a new comprehensive land use plan or to update an existing comprehensive land use plan.

(2) "Agricultural land" means land primarily devoted to the commercial production of horticultural, viticultural, floricultural, dairy, apiary, vegetable, or animal products or of berries, grain, hay, straw, turf, seed, Christmas trees not subject to the excise tax imposed by RCW 84.33.100 through 84.33.140, finfish in upland hatcheries, or livestock, and that has long-term commercial significance for agricultural production.

(3) "Capital facilities owned by public entities" means capital facilities owned or managed by any agency, local government, or special purpose district and which must be sited consistent with the terms of the comprehensive plan and development regulations of the county, city, or town in which they are, or are proposed to be, located.

(4) "City" means any city or town, including a code city.

((~~(4)~~)) (5) "Comprehensive land use plan," "comprehensive plan," or "plan" means a generalized coordinated land use policy statement of the governing body of a county or city that is adopted pursuant to this chapter.

((~~(5)~~)) (6) "Critical areas" include the following areas and ecosystems: (a) Wetlands; (b) areas with a critical recharging effect on aquifers used for potable water; (c) fish and wildlife habitat conservation areas; (d) frequently flooded areas; and (e) geologically hazardous areas.

((~~(6)~~)) (7) "Department" means the department of community, trade, and economic development.

((~~(7)~~)) (8) "Development regulations" or "regulation" means the controls placed on development or land use activities by a county or city, including, but not limited to, zoning ordinances, critical areas ordinances, shoreline master programs, official controls, planned unit development ordinances, subdivision ordinances, and binding site plan ordinances together with any amendments thereto. A development regulation does not include a decision to approve a project permit application, as defined in RCW 36.70B.020, even though the decision may be expressed in a resolution or ordinance of the legislative body of the county or city.

((~~(8)~~)) (9) "Forest land" means land primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, including Christmas trees subject to the excise tax imposed under RCW 84.33.100 through 84.33.140, and that has long-term commercial significance. In determining whether forest land is primarily devoted to growing trees for long-term commercial timber production on land that can be economically and practically managed for such production, the following factors shall be considered: (a) The proximity of the land to urban, suburban, and rural settlements; (b) surrounding parcel size and the compatibility and intensity of adjacent and nearby land uses; (c) long-term local economic conditions that affect the ability to manage for timber production; and (d) the availability of public facilities and services conducive to conversion of forest land to other uses.

((~~(9)~~)) (10) "Geologically hazardous areas" means areas that because of their susceptibility to erosion, sliding, earthquake, or other geological events, are not suited to the siting of commercial, residential, or industrial development consistent with public health or safety concerns.

((~~(10)~~)) (11) "Long-term commercial significance" includes the growing capacity, productivity, and soil composition of the land for long-term commercial production, in consideration with the land's proximity to population areas, and the possibility of more intense uses of the land.

((~~(11)~~)) (12) "Minerals" include gravel, sand, and valuable metallic substances.

((~~(12)~~)) (13) "Public facilities" include streets, roads, highways, sidewalks, street and road lighting systems, traffic signals, domestic water systems, storm and sanitary sewer systems, parks and recreational facilities, and schools.

((~~(13)~~)) (14) "Public services" include fire protection and suppression, law enforcement, public health, education, recreation, environmental protection, and other governmental services.

((~~(14)~~)) (15) "Rural character" refers to the patterns of land use and development established by a county in the rural element of its comprehensive plan:

(a) In which open space, the natural landscape, and vegetation predominate over the built environment;

(b) That foster traditional rural lifestyles, rural-based economies, and opportunities to both live and work in rural areas;

(d) That are compatible with the use of the land by wildlife and for fish and wildlife habitat;

(e) That reduce the inappropriate conversion of undeveloped land into sprawling, low‑density development;

(f) That generally do not require the extension of urban governmental services; and

(g) That are consistent with the protection of natural surface water flows and ground water and surface water recharge and discharge areas.

((~~(15)~~)) (16) "Rural development" refers to development outside the urban growth area and outside agricultural, forest, and mineral resource lands designated pursuant to RCW 36.70A.170. Rural development can consist of a variety of uses and residential densities, including clustered residential development, at levels that are consistent with the preservation of rural character and the requirements of the rural element. Rural development does not refer to agriculture or forestry activities that may be conducted in rural areas.

((~~(16)~~)) (17) "Rural governmental services" or "rural services" include those public services and public facilities historically and typically delivered at an intensity usually found in rural areas, and may include domestic water systems, fire and police protection services, transportation and public transit services, and other public utilities associated with rural development and normally not associated with urban areas. Rural services do not include storm or sanitary sewers, except as otherwise authorized by RCW 36.70A.110(4).

((~~(17)~~)) (18) "Urban growth" refers to growth that makes intensive use of land for the location of buildings, structures, and impermeable surfaces to such a degree as to be incompatible with the primary use of land for the production of food, other agricultural products, or fiber, or the extraction of mineral resources, rural uses, rural development, and natural resource lands designated pursuant to RCW 36.70A.170. A pattern of more intensive rural development, as provided in RCW 36.70A.070(5)(d), is not urban growth. When allowed to spread over wide areas, urban growth typically requires urban governmental services. "Characterized by urban growth" refers to land having urban growth located on it, or to land located in relationship to an area with urban growth on it as to be appropriate for urban growth.

((~~(18)~~)) (19) "Urban growth areas" means those areas designated by a county pursuant to RCW 36.70A.110.

((~~(19)~~)) (20) "Urban governmental services" or "urban services" include those public services and public facilities at an intensity historically and typically provided in cities, specifically including storm and sanitary sewer systems, domestic water systems, street cleaning services, fire and police protection services, public transit services, and other public utilities associated with urban areas and normally not associated with rural areas.

((~~(20)~~)) (21) "Wetland" or "wetlands" means areas that are inundated or saturated by surface water or ground water at a frequency and duration sufficient to support, and that under normal circumstances do support, a prevalence of vegetation typically adapted for life in saturated soil conditions. Wetlands generally include swamps, marshes, bogs, and similar areas. Wetlands do not include those artificial wetlands intentionally created from nonwetland sites, including, but not limited to, irrigation and drainage ditches, grass-lined swales, canals, detention facilities, wastewater treatment facilities, farm ponds, and landscape amenities, or those wetlands created after July 1, 1990, that were unintentionally created as a result of the construction of a road, street, or highway. Wetlands may include those artificial wetlands intentionally created from nonwetland areas created to mitigate conversion of wetlands.

Sec. 12. RCW 36.70A.215 and 1997 c 429 s 25 are each amended to read as follows:

(1) Subject to the limitations in subsection (7) of this section, a county shall adopt, in consultation with its cities, county-wide planning policies to establish a review and evaluation program. This program shall be in addition to the requirements of RCW 36.70A.110, 36.70A.130, and 36.70A.210. In developing and implementing the review and evaluation program required by this section, the county and its cities shall consider information from other appropriate jurisdictions and sources. The purpose of the review and evaluation program shall be to:

(a) Determine whether a county and its cities are achieving urban densities within urban growth areas by comparing growth and development assumptions, targets, and objectives contained in the county-wide planning policies and the county and city comprehensive plans with actual growth and development that has occurred in the county and its cities; ((~~and~~))

(b) Determine whether special purpose districts and their comprehensive plans are in compliance with and are implementing the terms of comprehensive plans for those counties, cities, and towns included in whole or in part within the corporate boundaries of the districts, and whether the provisions of section 10 of this act have been incorporated within county-wide planning policies; and

(c) Identify reasonable measures, other than adjusting urban growth areas, that will be taken to comply with the requirements of this chapter.

(2) The review and evaluation program shall:

(a) Encompass land uses and activities both within and outside of urban growth areas and provide for annual collection of data on urban and rural land uses, development, critical areas, and capital facilities to the extent necessary to determine the quantity and type of land suitable for development, both for residential and employment-based activities;

(b) Provide for evaluation of the data collected under (a) of this subsection every five years as provided in subsection (3) of this section. The first evaluation shall be completed not later than September 1, 2002. The county and its cities may establish in the county-wide planning policies indicators, benchmarks, and other similar criteria to use in conducting the evaluation;

(c) Provide for methods to resolve disputes among jurisdictions relating to the county-wide planning policies required by this section and procedures to resolve inconsistencies in collection and analysis of data; and

(d) Provide for the amendment of the county-wide policies and county and city comprehensive plans as needed to remedy an inconsistency identified through the evaluation required by this section, or to bring these policies into compliance with the requirements of this chapter.

(3) At a minimum, the evaluation component of the program required by subsection (1) of this section shall:

(a) Determine whether there is sufficient suitable land to accommodate the county-wide population projection established for the county pursuant to RCW 43.62.035 and the subsequent population allocations within the county and between the county and its cities and the requirements of RCW 36.70A.110;

(b) Determine the actual density of housing that has been constructed and the actual amount of land developed for commercial and industrial uses within the urban growth area since the adoption of a comprehensive plan under this chapter or since the last periodic evaluation as required by subsection (1) of this section; and

(c) Based on the actual density of development as determined under (b) of this subsection, review commercial, industrial, and housing needs by type and density range to determine the amount of land needed for commercial, industrial, and housing for the remaining portion of the twenty-year planning period used in the most recently adopted comprehensive plan.

(4) If the evaluation required by subsection (3) of this section demonstrates an inconsistency between what has occurred since the adoption of the county-wide planning policies and the county and city comprehensive plans and development regulations and what was envisioned in those policies and plans and the planning goals and the requirements of this chapter, as the inconsistency relates to the evaluation factors specified in subsection (3) of this section, the county and its cities shall adopt and implement measures that are reasonably likely to increase consistency during the subsequent five-year period. If necessary, a county, in consultation with its cities as required by RCW 36.70A.210, shall adopt amendments to county-wide planning policies to increase consistency. The county and its cities shall annually monitor the measures adopted under this subsection to determine their effect and may revise or rescind them as appropriate.

(5)(a) Not later than July 1, 1998, the department shall prepare a list of methods used by counties and cities in carrying out the types of activities required by this section. The department shall provide this information and appropriate technical assistance to counties and cities required to or choosing to comply with the provisions of this section.

(b) By December 31, 2007, the department shall submit to the appropriate committees of the legislature a report analyzing the effectiveness of the activities described in this section in achieving the goals envisioned by the county-wide planning policies and the comprehensive plans and development regulations of the counties and cities.

(6) From funds appropriated by the legislature for this purpose, the department shall provide grants to counties, cities, and regional planning organizations required under subsection (7) of this section to conduct the review and perform the evaluation required by this section.

(7) The provisions of this section shall apply to counties, and the cities within those counties, that were greater than one hundred fifty thousand in population in 1995 as determined by office of financial management population estimates and that are located west of the crest of the Cascade mountain range. Any other county planning under RCW 36.70A.040 may carry out the review, evaluation, and amendment programs and procedures as provided in this section.

Sec. 13. RCW 36.93.090 and 1996 c 230 s 1608 are each amended to read as follows:

Whenever any of the following described actions are proposed in a county in which a board has been established, the initiators of the action shall file within one hundred eighty days a notice of intention with the board: PROVIDED, That when the initiator is the legislative body of a governmental unit, the notice of intention may be filed immediately following the body's first acceptance or approval of the action. The board may review any such proposed actions pertaining to:

(1) The: (a) Creation, incorporation, or change in the boundary, other than a consolidation, of any city, town, or special purpose district; (b) consolidation of special purpose districts, but not including consolidation of cities and towns; or (c) dissolution or disincorporation of any city, town, or special purpose district, except that a board may not review the dissolution or disincorporation of a special purpose district which was dissolved or disincorporated pursuant to the provisions of chapter 36.96 RCW: PROVIDED, That the change in the boundary of a city or town arising from the annexation of contiguous city or town owned property held for a public purpose shall be exempted from the requirements of this section; or

(2) The assumption by any city or town of all or part of the assets, facilities, or indebtedness of a special purpose district which lies partially within such city or town, except for water-sewer districts; or

(3) The establishment of or change in the boundaries of a mutual water and sewer system or separate sewer system by a water-sewer district pursuant to RCW 57.08.065 ((~~or chapter 57.40 RCW~~)); or

(4) The extension of permanent water or sewer service outside of its existing service area by a city, town, or special purpose district. The service area of a city, town, or special purpose district shall include all of the area within its corporate boundaries plus, (a) for extensions of water service, the area outside of the corporate boundaries which it is designated to serve pursuant to a coordinated water system plan approved in accordance with RCW 70.116.050; and (b) for extensions of sewer service, the area outside of the corporate boundaries which it is designated to serve pursuant to a comprehensive sewerage plan approved in accordance with chapter 36.94 RCW and RCW 90.48.110.

Sec. 14. RCW 57.16.010 and 1997 c 447 s 18 are each amended to read as follows:

Before ordering any improvements or submitting to vote any proposition for incurring any indebtedness, the district commissioners shall adopt a general comprehensive plan for the type or types of facilities the district proposes to provide. A district may prepare a separate general comprehensive plan for each of these services and other services that districts are permitted to provide, or the district may combine any or all of its comprehensive plans into a single general comprehensive plan.

(1) For a general comprehensive plan of a water supply system, the commissioners shall investigate the several portions and sections of the district for the purpose of determining the present and reasonably foreseeable future needs ((~~thereof~~)) and household and employment targets set forth in the comprehensive plans adopted pursuant to chapter 36.70A RCW by each city, town, or county in which the district provides water service; shall examine and investigate, determine, and select a water supply or water supplies for such district suitable and adequate for present and reasonably foreseeable future needs thereof set forth in the comprehensive plans adopted pursuant to chapter 36.70A RCW by each city, town, or county in which the district provides water service; and shall consider and ((~~determine~~)) adopt a general system or plan for acquiring such water supply or water supplies, and the lands, waters, and water rights and easements necessary therefor, and for retaining and storing any such waters, and erecting dams, reservoirs, aqueducts, and pipe lines to convey the same throughout such district. There may be included as part of the system the installation of fire hydrants at suitable places throughout the district. The commissioners shall determine and adopt a general comprehensive plan providing for the present and future water supply or supplies necessary to meet present and future needs determined as set forth herein, for distributing such water throughout such portion of the district as may then reasonably be served by means of subsidiary aqueducts and pipe lines, and a long-term plan for financing the planned projects and the method of distributing the cost and expense thereof, including the creation of local improvement districts ((~~or utility local improvement districts, and shall determine~~)) and provide whether the whole or part of the cost and expenses shall be paid from revenue or general obligation bonds. In addition, the general comprehensive plan shall be consistent with and implement the comprehensive plans adopted under chapter 36.70A RCW by each city and county in which the district provides service, shall identify the household and employment targets contained in each of the land use elements of those jurisdictions' comprehensive plans and discuss how water supplies and services will be provided to each of those targets, shall comply with the requirements of RCW 36.70A.070 (3) (a) through (d) and (4), and shall be updated as needed to comply with the requirements of this section and to maintain consistency with the comprehensive plans of the cities and county in which the district provides service. Furthermore, the district shall maintain a docket and consider and adopt changes to its general comprehensive plan in the manner provided for in RCW 36.70A.470.

(2) For a general comprehensive plan for a sewer system, the commissioners shall investigate all portions and sections of the district and select and adopt a general comprehensive plan for a sewer system for the district suitable and adequate for present and reasonably foreseeable future needs ((~~thereof~~)) and household and employment targets set forth in the comprehensive plans adopted pursuant to chapter 36.70A RCW by each city, town, or county in which the district provides sewer service. The general comprehensive plan shall provide for treatment plants and other methods and services, if any, for the prevention, control, and reduction of water pollution and for the treatment and disposal of sewage and industrial and other liquid wastes now produced or which may reasonably be expected to be produced within the district and shall, for such portions of the district as may then reasonably be served or must reasonably be served in the future in order to provide service to household or employment targets contained in the comprehensive plans adopted pursuant to chapter 36.70A RCW by each city, town, or county in which the district provides sewer service, provide for the acquisition or construction and installation of laterals, trunk sewers, intercepting sewers, syphons, pumping stations or other sewage collection facilities, septic tanks, septic tank systems or drainfields, and systems for the transmission and treatment of wastewater. The general comprehensive plan shall provide a long-term plan for financing the planned projects and the method of distributing the cost and expense of the sewer system and services, including the creation of local improvement districts or utility local improvement districts; and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds. In addition, the general comprehensive plan shall be consistent with and implement the comprehensive plans adopted under chapter 36.70A RCW by each city and county in which the district provides service, shall identify the household and employment targets contained in each of the land use elements of those jurisdictions' comprehensive plans and discuss how sewer service will be provided to each of those targets, shall comply with the requirements of RCW 36.70A.070 (3) (a) through (d) and (4), and shall be updated as needed to comply with the requirements of this section and to maintain consistency with the comprehensive plans of the cities and county in which the district provides service. Furthermore, the district shall maintain a docket and consider and adopt changes to its general comprehensive plan in the manner provided for in RCW 36.70A.470.

(3) For a general comprehensive plan for a drainage system, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan for a drainage system for the district suitable and adequate for present and future needs ((~~thereof~~)) and household and employment targets set forth in the comprehensive plans adopted pursuant to chapter 36.70A RCW by each city, town, or county in which the district maintains a drainage system. The general comprehensive plan shall provide for a system to collect, treat, and dispose of storm water or surface waters, including use of natural systems and the construction or provision of culverts, storm water pipes, ponds, and other systems. The general comprehensive plan shall provide for a long-term plan for financing the planned projects and provide for a method of distributing the cost and expense of the drainage system, including local improvement districts or utility local improvement districts, and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds. In addition, the general comprehensive plan shall be consistent with and implement the comprehensive plans adopted under chapter 36.70A RCW by each city and county in which the district provides service, shall identify the household and employment targets contained in each of the land use elements of those jurisdictions' comprehensive plans and discuss how drainage will be provided for those targets, shall comply with the requirements of RCW 36.70A.070 (3) (a) through (d) and (4), and shall be updated as needed to comply with the requirements of this section and to maintain consistency with the comprehensive plans of the cities and county in which the district provides service. Furthermore, the district shall maintain a docket and consider and adopt changes to its general comprehensive plan in the manner provided for in RCW 36.70A.470.

(4) For a general comprehensive plan for street lighting, the commissioners shall investigate all portions and sections of the district and adopt a general comprehensive plan for street lighting for the district suitable and adequate for present and future needs ((~~thereof~~)) and household and employment targets set forth in the comprehensive plans adopted pursuant to chapter 36.70A RCW by each city, town, or county in which the district maintains a drainage system. The general comprehensive plan shall provide for a system or systems of street lighting, provide for a long-term plan for financing the planned projects, and provide for a method of distributing the cost and expense of the street lighting system, including local improvement districts or utility local improvement districts, and provide whether the whole or some part of the cost and expenses shall be paid from revenue or general obligation bonds. In addition, the general comprehensive plan shall be consistent with and implement the comprehensive plans adopted under chapter 36.70A RCW by each city and county in which the district provides service, shall identify the household and employment targets contained in each of the land use elements of those jurisdictions' comprehensive plans and discuss how street lighting will be provided for those targets, shall comply with the requirements of RCW 36.70A.070 (3) (a) through (d) and (4), and shall be updated as needed to comply with the requirements of this section and to maintain consistency with the comprehensive plans of the cities and county in which the district provides service. Furthermore, the district shall maintain a docket and consider and adopt changes to its general comprehensive plan in the manner provided for in RCW 36.70A.470.

(5) The commissioners may employ such engineering and legal service as in their discretion is necessary in carrying out their duties.

(6) Any general comprehensive plan or plans shall be adopted by resolution and submitted to an engineer designated by the legislative authority of the county in which fifty-one percent or more of the area of the district is located, and to the director of health of the county in which the district or any portion thereof is located, and must be approved in writing by the engineer and director of health, except that a comprehensive plan relating to street lighting shall not be submitted to or approved by the director of health. The general comprehensive plan shall be approved, conditionally approved, or rejected by the director of health and by the designated engineer within sixty days of their respective receipt of the plan. However, this sixty-day time limitation may be extended by the director of health or engineer for up to an additional sixty days if sufficient time is not available to review adequately the general comprehensive plans.

Before becoming effective, the general comprehensive plan shall also be submitted to, and approved by resolution of, the legislative authority of every county within whose boundaries all or a portion of the district lies. The general comprehensive plan shall be approved, conditionally approved, or rejected by each of the county legislative authorities pursuant to the criteria in RCW 57.02.040 for approving the formation, reorganization, annexation, consolidation, or merger of districts. The resolution, ordinance, or motion of the legislative body that rejects the comprehensive plan or a part thereof shall specifically state in what particular the comprehensive plan or part thereof rejected fails to meet these criteria. The general comprehensive plan shall not provide for the extension or location of facilities that are inconsistent with the requirements of RCW 36.70A.110. Nothing in this chapter shall preclude a county from rejecting a proposed plan because it is in conflict with the criteria in RCW 57.02.040. Each general comprehensive plan shall be deemed approved if the county legislative authority fails to reject or conditionally approve the plan within ninety days of the plan's submission to the county legislative authority or within thirty days of a hearing on the plan when the hearing is held within ninety days of submission to the county legislative authority. However, a county legislative authority may extend this ninety-day time limitation by up to an additional ninety days where a finding is made that ninety days is insufficient to review adequately the general comprehensive plan. In addition, the commissioners and the county legislative authority may mutually agree to an extension of the deadlines in this section.

If the district includes portions or all of one or more cities or towns, the general comprehensive plan shall be submitted also to, and approved by resolution of, the legislative authorities of the cities and towns before becoming effective. The general comprehensive plan shall be deemed approved by the city or town legislative authority if the city or town legislative authority fails to reject or conditionally approve the plan within ninety days of the plan's submission to the city or town or within thirty days of a hearing on the plan when the hearing is held within ninety days of submission to the ((~~county~~)) city or town legislative authority. However, a city or town legislative authority may extend this time limitation by up to an additional ninety days where a finding is made that insufficient time exists to adequately review the general comprehensive plan within these time limitations. In addition, the commissioners and the city or town legislative authority may mutually agree to an extension of the deadlines in this section.

Before becoming effective, the general comprehensive plan shall be approved by any state agency whose approval may be required by applicable law. Before becoming effective, any amendment to, alteration of, or addition to, a general comprehensive plan shall also be subject to such approval as if it were a new general comprehensive plan. However, only if the amendment, alteration, or addition affects a particular city or town, shall the amendment, alteration, or addition be subject to approval by such particular city or town governing body.

(7) A water-sewer district that fails to comply with subsections (1) through (4) of this section, or that fails within ninety days to amend its comprehensive plan to correct deficiencies identified by the decision of any city, county, or town rejecting or conditionally approving a comprehensive plan under subsection (6) of this section, shall be ineligible to receive any grant, loan, or assistance administered under chapter 43.330 RCW.

NEW SECTION. Sec. 15. RCW 35.13A.0301 (Assumption of water-sewer district before July 1, 1999--Limitations) and 1998 c 326 s 3 are each repealed.