BILL REQ. #:  H-0356.1 

Read first time 02/05/2007.   Referred to Committee on Local Government.

     AN ACT Relating to annexation; providing authorization for cities that are required to plan under the growth management act to annex areas within their urban growth boundary; establishing a process to facilitate annexations between cities and counties; amending RCW 35.02.170; adding new sections to chapter 35.13 RCW; and adding new sections to chapter 35A.14 RCW.

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

NEW SECTION.  Sec. 1   A new section is added to chapter 35.13 RCW to read as follows:
     Proceedings for the annexation of territory pursuant to the method established by this section and section 2 of this act, which is alternative to other methods provided in this chapter, must be commenced as follows:
     (1) The legislative body of a city or town planning under RCW 36.70A.040 may by a majority vote resolve to annex unincorporated territory contiguous to the city or town. No city or town may annex territory in accordance with the provisions of this section that is beyond the urban growth area designated under RCW 36.70A.110 the annexing city or town is within.
     (2) The resolution must describe the boundaries of the territory proposed for annexation and set a date for a public hearing on the resolution.
     (3) Separate public hearings shall be held by the legislative body of the city or town proposing annexation and the legislative body of the county that has jurisdiction over the territory proposed for annexation. Notice of each hearing must be given by the appropriate legislative body by publication of the resolution at least once a week for three weeks before the date of the hearing, in one or more newspapers of general circulation within the city or town and one or more newspapers of general circulation within the territory to be annexed. The notice must contain a legal description of the territory proposed for annexation, specify the time and place of hearing, and invite interested persons to appear and voice approval or disapproval of the annexation. The notice must also be posted in three public places in the territory proposed for annexation.
     (4) For purposes of subsection (1) of this section, territory bounded by a river, lake, or other body of water is contiguous to the city or town that is also bounded by the same river, lake, or other body of water.
     (5) Following the hearings, the legislative body of the city or town must determine by ordinance whether the territory proposed for annexation will be annexed. Subject to RCW 35.02.170, the council may annex the territory proposed for annexation identified in an interlocal agreement as provided by section 2 of this act, but may not include any property not described in the notice. Upon passage of the ordinance, the annexed territory shall become part of the city or town upon the date fixed in the ordinance. The annexing city or town must file a certified copy of the ordinance with the board of county commissioners of the county in which the annexed territory is located.
     (6) Annexations pursuant to this section and section 2 of this act are not subject to review by a boundary review board established under chapter 36.93 RCW.

NEW SECTION.  Sec. 2   A new section is added to chapter 35.13 RCW to read as follows:
     (1)(a) Before initiating an annexation as provided by section 1 of this act, a city or town proposing to annex territory must enter into an interlocal agreement as provided in chapter 39.34 RCW with the county that has jurisdiction over the territory proposed for annexation.
     (b) The interlocal agreement must describe the boundaries of the territory proposed for annexation and must be consistent with the boundaries identified in the resolution required by section 1 of this act.
     (2)(a) An interlocal agreement providing for a specific annexation that was entered into between an annexing city or town and a county before the effective date of this section satisfies the requirements of this section.
     (b) An interlocal agreement providing general annexation terms for all annexations by a city or town that was entered into between an annexing city or town and a county before the effective date of this section satisfies the requirements of this section.
     (3) A supplemental interlocal agreement may be negotiated to address issues for a specific annexation if the issues are not sufficiently addressed in a general interlocal agreement.
     (4) A general interlocal annexation agreement must include the following:
     (a) A statement of the goals of the agreement. Goals may include, but are not limited to:
     (i) Providing for long-term and short-term transition of services and staff;
     (ii) Community involvement;
     (iii) Revenue sharing; and
     (iv) Debt distribution.
     (b) The subject areas and policies and procedures the parties agree to undertake in annexations. Subject areas may include, but are not limited to:
     (i) Roads and traffic impact mitigation;
     (ii) Surface and storm water management;
     (iii) Coordination and timing of comprehensive plan and development regulation updates;
     (iv) Parks, trails, recreation, and open space;
     (v) Public utilities;
     (vi) Outstanding bonds and special or improvement district assessments;
     (vii) Transfer of staff, records, and equipment;
     (viii) Annexation procedures;
     (ix) Distribution of debt and revenue sharing for annexation proposals, code enforcement, inspection services;
     (x) Financial and administrative services; and
     (xi) Consultation with other service providers, including water-sewer districts and fire protection districts, if applicable.
     (c) A term of at least five years which may be extended by mutual agreement of the city or town and the county.

NEW SECTION.  Sec. 3   A new section is added to chapter 35A.14 RCW to read as follows:
     Proceedings for the annexation of territory pursuant to the method established by this section and section 4 of this act, which is alternative to other methods provided in this chapter, must be commenced as follows:
     (1) The legislative body of a code city planning under RCW 36.70A.040 may by a majority vote resolve to annex unincorporated territory contiguous to the city. No city may annex territory in accordance with the provisions of this section that is beyond the urban growth area designated under RCW 36.70A.110 the annexing city is within.
     (2) The resolution must describe the boundaries of the territory proposed for annexation and set a date for a public hearing on the resolution.
     (3) Separate public hearings shall be held by the legislative body of the city proposing annexation and the legislative body of the county that has jurisdiction over the territory proposed for annexation. Notice of each hearing must be given by the appropriate legislative body by publication of the resolution at least once a week for three weeks before the date of the hearing, in one or more newspapers of general circulation within the city and one or more newspapers of general circulation within the territory to be annexed. The notice must contain a legal description of the territory proposed for annexation, specify the time and place of hearing, and invite interested persons to appear and voice approval or disapproval of the annexation. The notice must also be posted in three public places in the territory proposed for annexation.
     (4) For purposes of subsection (1) of this section, territory bounded by a river, lake, or other body of water is contiguous to the city that is also bounded by the same river, lake, or other body of water.
     (5) Following the hearings, the legislative body of the city must determine by ordinance whether the territory proposed for annexation will be annexed. Subject to RCW 35A.14.410, the council may annex the territory proposed for annexation identified in an interlocal agreement as provided by section 4 of this act, but may not include any property not described in the notice. Upon passage of the ordinance, the annexed territory shall become part of the city upon the date fixed in the ordinance. The annexing city must file a certified copy of the ordinance with the board of county commissioners of the county in which the annexed territory is located.
     (6) Annexations pursuant to this section and section 4 of this act are not subject to review by a boundary review board established under chapter 36.93 RCW.

NEW SECTION.  Sec. 4   A new section is added to chapter 35A.14 RCW to read as follows:
     (1)(a) Before initiating an annexation as provided by section 3 of this act, a code city proposing to annex territory must enter into an interlocal agreement as provided in chapter 39.34 RCW with the county that has jurisdiction over the territory proposed for annexation.
     (b) The interlocal agreement must describe the boundaries of the territory proposed for annexation and must be consistent with the boundaries identified in the resolution required by section 3 of this act.
     (2)(a) An interlocal agreement providing for a specific annexation that was entered into between an annexing city and a county before the effective date of this section satisfies the requirements of this section.
     (b) An interlocal agreement providing general annexation terms for all annexations by a city that was entered into between an annexing city and a county before the effective date of this section satisfies the requirements of this section.
     (3) A supplemental interlocal agreement may be negotiated to address issues for a specific annexation if the issues are not sufficiently addressed in a general interlocal agreement.
     (4) A general interlocal annexation agreement must include the following:
     (a) A statement of the goals of the agreement. Goals may include, but are not limited to:
     (i) Providing for long-term and short-term transition of services and staff;
     (ii) Community involvement;
     (iii) Revenue sharing; and
     (iv) Debt distribution.
     (b) The subject areas and policies and procedures the parties agree to undertake in annexations. Subject areas may include, but are not limited to:
     (i) Roads and traffic impact mitigation;
     (ii) Surface and storm water management;
     (iii) Coordination and timing of comprehensive plan and development regulation updates;
     (iv) Parks, trails, recreation, and open space;
     (v) Public utilities;
     (vi) Outstanding bonds and special or improvement district assessments;
     (vii) Transfer of staff, records, and equipment;
     (viii) Annexation procedures;
     (ix) Distribution of debt and revenue sharing for annexation proposals, code enforcement, inspection services;
     (x) Financial and administrative services; and
     (xi) Consultation with other service providers, including water-sewer districts and fire protection districts, if applicable.
     (c) A term of at least five years which may be extended by mutual agreement of the city and the county.

Sec. 5   RCW 35.02.170 and 1989 c 84 s 7 are each amended to read as follows:
     The right of way line of any public street, road or highway, or any segment thereof, may be used to define a part of a corporate boundary in an incorporation or annexation proceeding. The boundaries of a newly incorporated city or town shall not include a portion of the right of way of any public street, road or highway except where the boundary runs from one edge of the right of way to the other edge of the right of way.