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:
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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 this chapter subchapter, 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 this chapter subchapter. 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 this chapter
3 26 subchapter.
3 27 Sec. 4. Section 389.5, Code 2017, is amended to read as
3 28 follows:
3 29 389.5 Construction.
3 30 This chapter subchapter being necessary for the public
3 31 health, public safety, and general welfare, shall be liberally
3 32 construed to effectuate its purposes. This chapter subchapter
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.
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