Bill Text: IA HF316 | 2017-2018 | 87th General Assembly | Introduced
Bill Title: A bill for an act providing for the creation of regional water authorities and regional water authority boards to assume the powers, duties, assets, and liabilities of certain water utilities, and including effective date provisions. (See HF 484.)
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-02-28 - Committee report, recommending amendment and passage. H.J. 482. [HF316 Detail]
Download: Iowa-2017-HF316-Introduced.html
House File 316 - Introduced HOUSE FILE BY KLEIN A BILL FOR 1 An Act providing for the creation of regional water authorities 2 and regional water authority boards to assume the powers, 3 duties, assets, and liabilities of certain water utilities, 4 and including effective date provisions. 5 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: TLSB 2070YH (5) 87 aw/rn/rj PAG LIN 1 1 Section 1. NEW SECTION. 388.12 Water utility discontinuance 1 2 == transfers and transition provisions. 1 3 1. On or before January 1, 2018, the board of a water 1 4 utility shall be discontinued and its powers and duties, and 1 5 the assets and liabilities of the water utility, shall be 1 6 separately transferred to each city in which the utility's main 1 7 water production is located that has a population greater than 1 8 thirty=nine thousand, as determined by the most recent federal 1 9 decennial census. The board of the water utility shall by 1 10 resolution provide for the equitable transfer of the assets, 1 11 and equitable transfer and assumption of the liabilities and 1 12 powers and duties, under this subsection to allow for the 1 13 continued provision of water services to customers. Each 1 14 transfer shall be completed upon the agreement, by resolution, 1 15 of each city council for each city receiving a transfer and 1 16 assuming liabilities and powers and duties as provided in this 1 17 section. 1 18 2. a. If a city council under subsection 1 cannot agree 1 19 on such transfers and assumptions with the associated water 1 20 utility board, the matters on which they differ shall be 1 21 decided by disinterested arbitrators, one selected by the 1 22 board, one selected by the city council failing to agree to the 1 23 transfers and assumptions, and one selected by the mayor of the 1 24 city who appointed the members of the board. 1 25 b. The decision of the arbitrators shall be made in writing 1 26 and filed with the board, and a party to the proceedings may 1 27 appeal the decision to the district court by serving notice 1 28 on the board within twenty days after the decision is filed. 1 29 The appeal shall be tried in equity and a decree entered 1 30 determining the entire matter. 1 31 3. Following the discontinuance of the board, the city 1 32 manager employed by the city council that set the compensation 1 33 of the members of the board shall designate the administrator 1 34 of a department or administrative division of that city to be 1 35 the manager of the water supply system until the establishment 2 1 or designation of a regional water authority pursuant to 2 2 section 389.6, subject to the approval of the city council. 2 3 The administrator designated under this subsection shall not be 2 4 considered a civil service employee under section 400.17 and 2 5 shall serve under the control and direction of the city manager 2 6 of that city. The administrator may be terminated at will, 2 7 subject to any contract in place on the effective date of this 2 8 Act. 2 9 4. On and after the effective date of this Act, a water 2 10 utility and any city receiving powers, duties, assets, or 2 11 liabilities under this section shall not, related to the water 2 12 supply system: 2 13 a. Lease, sell, or otherwise dispose of any real property or 2 14 acquire any new real property or debt obligations. 2 15 b. Issue revenue bonds or assume any other form of 2 16 obligations payable from the revenues of the water utility. 2 17 c. Expend moneys for any purpose other than ongoing 2 18 operations or capital expenditures below the amount of one 2 19 hundred thousand dollars, unless an emergency affecting public 2 20 safety requires an emergency capital repair, in which case a 2 21 vote of at least three=fourths of all the members of the city 2 22 council shall be required to approve the emergency expenditure. 2 23 5. On and after the effective date of this Act, a water 2 24 utility and any city receiving powers, duties, assets, or 2 25 liabilities under this section are prohibited from expending 2 26 any moneys or staff time to plan, design, or construct any new 2 27 water plant or other water=producing facility. 2 28 6. For the purposes of this section, "water utility" means 2 29 a city utility that provides water services, that is located in 2 30 a federally designated standard metropolitan statistical area 2 31 that has a population greater than five hundred thousand, as 2 32 shown by the most recent federal decennial census, and that is 2 33 located entirely within the state. 2 34 Sec. 2. Section 389.1, Code 2017, is amended to read as 2 35 follows: 3 1 389.1 Definitions. 3 2 As used in thischaptersubchapter, unless the context 3 3 otherwise requires: 3 4 1. "Joint water utility" means a water utility established 3 5 by two or more cities which owns or operates or proposes to 3 6 finance the purchase or construction of all or part of a 3 7 water supply system or the capacity or use of a water supply 3 8 system pursuant to thischaptersubchapter. A water supply 3 9 system includes all land, easements, rights=of=way, fixtures, 3 10 equipment, accessories, improvements, appurtenances, and other 3 11 property necessary or useful for the operation of the system. 3 12 2. "Joint water utility board" means the board of trustees 3 13 established to operate a joint water utility. 3 14 3. "Project" means any works or facilities useful or 3 15 necessary for the operation of a joint water utility. 3 16 Sec. 3. Section 389.3, subsection 1, Code 2017, is amended 3 17 to read as follows: 3 18 1. Upon adoption of a proposal to establish a joint water 3 19 utility, the member cities shall establish a joint water 3 20 utility board, consisting of at least five members. The 3 21 mayors of the participating cities shall appoint the members, 3 22 subject to the approval of the city councils, and at least one 3 23 member shall be appointed from each participating city. The 3 24 board shall be responsible for the planning and operation of a 3 25 joint water utility, subject to the provisions of thischapter 3 26subchapter. 3 27 Sec. 4. Section 389.5, Code 2017, is amended to read as 3 28 follows: 3 29 389.5 Construction. 3 30 Thischaptersubchapter being necessary for the public 3 31 health, public safety, and general welfare, shall be liberally 3 32 construed to effectuate its purposes. Thischaptersubchapter 3 33 shall be construed as providing a separate and independent 3 34 method for accomplishing its purposes, and shall take 3 35 precedence over any contrary provision of the law. 4 1 Sec. 5. NEW SECTION. 389.6 Regional water authority == 4 2 established. 4 3 1. On or before January 1, 2020, each receiving city 4 4 shall enter into an agreement under chapter 28E, approved by 4 5 the city council of each city, to establish or designate a 4 6 regional water authority that shall provide water services, as 4 7 previously provided by the discontinued water utilities. 4 8 2. a. The agreement under this section shall provide 4 9 for the creation of a regional water authority board. The 4 10 agreement shall provide for staggered six=year terms of the 4 11 board's members, and provide the board with the authority to 4 12 set the compensation for the board members by resolution. 4 13 b. The agreement shall provide that the members of the 4 14 regional water authority board shall be appointed as the 4 15 negotiated chapter 28E agreement provides, utilizing the 4 16 following criteria for determining the composition and 4 17 proportional representation of each receiving city on the 4 18 board: 4 19 (1) Population of each receiving city. 4 20 (2) Total value of water production facilities located 4 21 within a receiving city, if any. 4 22 (3) Total value of water distribution facilities located 4 23 within a receiving city's water supply system. 4 24 (4) If the receiving cities cannot agree on the composition 4 25 of and the proportional representation on the regional water 4 26 authority board, the matters on which they differ shall be 4 27 decided by disinterested arbitrators utilizing the criteria 4 28 provided in subparagraphs (1) through (3), one selected by each 4 29 of the receiving cities and an additional arbitrator selected 4 30 by those arbitrators if the number of arbitrators selected by 4 31 receiving cities results in an even number of arbitrators. 4 32 c. The decision of the arbitrators shall be made in writing 4 33 and filed with each receiving city, and a receiving city 4 34 subject to the proceedings may appeal the decision to the 4 35 district court by serving notice on the other receiving cities 5 1 within twenty days after the decision is filed. The appeal 5 2 shall be tried in equity and a decree entered determining the 5 3 entire matter. 5 4 d. Population determinations under this subsection shall be 5 5 as determined by the most recent federal decennial census. 5 6 3. The agreement shall provide for the transfer of assets 5 7 and liabilities from each city under subsection 1 to the 5 8 regional water authority. 5 9 4. The agreement shall provide the regional water authority 5 10 board with the same powers and duties of a city utility under 5 11 chapter 388, and may provide the regional water authority board 5 12 with additional powers and duties. 5 13 5. The agreement shall provide that other cities that are 5 14 not receiving cities may join the regional water authority 5 15 under terms specified in the agreement creating the regional 5 16 water authority, with proportional representation based 5 17 upon the criteria identified in section 389.6, subsection 2, 5 18 paragraph "b". 5 19 6. A regional water authority shall not expend any moneys or 5 20 staff time to plan, design, or construct any new water plant or 5 21 other water=producing facility before July 1, 2018. 5 22 7. For the purposes of this section, "receiving city" means 5 23 a city receiving powers and duties and assuming assets and 5 24 liabilities under section 388.12. 5 25 Sec. 6. CODE EDITOR. The Code editor shall codify sections 5 26 389.1 through 389.5 as subchapter I, and section 389.6 as 5 27 enacted by this Act as subchapter II of chapter 389. 5 28 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 5 29 immediate importance, takes effect upon enactment. 5 30 EXPLANATION 5 31 The inclusion of this explanation does not constitute agreement with 5 32 the explanation's substance by the members of the general assembly. 5 33 This bill provides for the creation of a regional water 5 34 authority and regional water authority board to assume the 5 35 transfer of powers, duties, assets, and liabilities of a water 6 1 utility. 6 2 Under the bill, the boards of certain city water utilities 6 3 are discontinued. The only utilities impacted under the bill 6 4 are those that provide water services and that are located 6 5 in a federally designated standard metropolitan statistical 6 6 area located entirely within the state and have populations 6 7 greater than 500,000. The bill requires that the water 6 8 utility's powers, duties, assets, and liabilities be separately 6 9 transferred to each city in which the utility's main water 6 10 production is located that has a population greater than 6 11 39,000. 6 12 The board of the water utility is required, by resolution, to 6 13 provide for the equitable transfer of the assets, and equitable 6 14 transfer and assumption of the liabilities and powers and 6 15 duties, of the utility to allow for the continued provision of 6 16 water services to customers. The transfers are completed upon 6 17 the agreement, by resolution, of each city council receiving 6 18 assets, liabilities, or responsibilities under the bill. The 6 19 bill requires that if a city council cannot agree on such 6 20 distributions and assumptions with the associated board, the 6 21 matters on which they differ must be decided by disinterested 6 22 arbitrators, one selected by the board of the water utility, 6 23 one selected by the city council that fails to agree to the 6 24 transfers and assumptions, and one selected by the mayor of the 6 25 city who appointed the members of the board. The bill provides 6 26 that the decision of the arbitrators shall be made in writing 6 27 and filed with the board, and allows a party to the proceedings 6 28 to appeal the decision to the district court, with the appeal 6 29 tried in equity and a decree entered determining the entire 6 30 matter. 6 31 The bill requires that the city manager employed by the 6 32 city council that set the compensation of the members of the 6 33 discontinued water utility designate the administrator of a 6 34 department or administrative division of that city, meeting 6 35 certain other qualifications, to be the manager of the water 7 1 supply system until the establishment or designation of a 7 2 regional water authority and subject to the approval of the 7 3 city council. 7 4 The bill prohibits a water utility and any city receiving 7 5 powers, duties, assets, or liabilities from the water utility 7 6 from expending any moneys or staff time to plan, design, 7 7 or construct any new water plant or other water=producing 7 8 facility. The bill also prohibits a water utility and certain 7 9 cities from the following activities related to the water 7 10 supply system: 7 11 1. Leasing, selling, or otherwise disposing of any 7 12 real property or acquiring any new real property or debt 7 13 obligations. 7 14 2. Issuing revenue bonds or assuming any other form of 7 15 obligations payable from the revenues of the water utility. 7 16 3. Expending moneys for any purpose other than ongoing 7 17 operations except as otherwise provided in the bill. 7 18 The bill provides a definition for the term "receiving 7 19 city", which includes a city receiving powers, duties, assets, 7 20 or liabilities from the discontinued water utility. The 7 21 bill requires each receiving city to enter into an agreement 7 22 under Code chapter 28E before January 1, 2020, to establish 7 23 or designate a regional water authority that shall provide 7 24 water services, as previously provided by the discontinued 7 25 water utility. The Code chapter 28E agreement is required to 7 26 provide for the creation of a regional water authority board 7 27 and staggered six=year terms for the board's members. The bill 7 28 also requires that the Code chapter 28E agreement provide the 7 29 board with the authority to set the compensation for the board 7 30 members. 7 31 The bill requires the agreement to contain provisions for 7 32 the appointment of members of the regional water authority 7 33 board. The agreement must contain provisions for the 7 34 composition of the regional water authority board and for 7 35 the proportional representation of each receiving city, as 8 1 specified in the bill. The bill also establishes arbitration 8 2 and judicial review procedures in the event that receiving 8 3 cities cannot agree on the composition of and proportional 8 4 representation on the regional water authority board. 8 5 The bill requires that the Code chapter 28E agreement 8 6 provide for the transfer of assets and liabilities of the water 8 7 supply system to the regional water authority and provide the 8 8 regional water authority board with the same powers and duties 8 9 of a city utility under Code chapter 388. The bill authorizes 8 10 the agreement to provide the regional water authority board 8 11 with additional powers and duties. The bill also requires 8 12 that the agreement provide a means for other cities to join 8 13 the regional water authority, and requires proportional 8 14 representation of such cities on the regional water authority 8 15 board. 8 16 The bill also prohibits a regional water authority from 8 17 expending any moneys or staff time to plan, design, or 8 18 construct any new water plant or other water=producing facility 8 19 before July 1, 2018. 8 20 All population determinations under the bill are required to 8 21 be based upon the most recent federal decennial census. 8 22 The bill takes effect upon enactment. LSB 2070YH (5) 87 aw/rn/rj
