HF 484 (LSB 2070HV (2) 87)

HOUSE FILE 484

BY  COMMITTEE ON AGRICULTURE

(SUCCESSOR TO HF 316)

A BILL FOR

An Act relating to the governing of certain water utilities and including effective date provisions.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  NEW SECTION.  388.12  Water utility board discontinuance and dissolution —— governing body provisions.
   1.  Notwithstanding the provisions of section 388.2 to the contrary, upon the effective date of this Act, the board of water works trustees of a water utility in cities in a statistical area described in subsection 5, with a population greater than thirty-nine thousand as determined by the most recent federal decennial census, shall be discontinued, dissolved, and shall cease to be the governing body of the water utility and the city councils of the cities described in this subsection shall thereafter be the governing bodies of the water utilities and the city councils of the cities shall have all the powers and authorities of the city with respect to the acquisition by purchase, condemnation, or otherwise lease, sale, or other disposition of the property and facilities of the water utility, and the management, control, and operation of all facets of the water utility, subject to the requirements, terms, covenants, conditions, and provisions of any resolutions authorizing the issuance of revenue bonds, pledge orders, or other obligations which are payable from the revenues of the water utility which are then outstanding. Any property not held in the name of the city as required under section 388.4, subsection 2, shall be retitled in the name of the appropriate city as soon as legally practicable.
   2.  The city managers employed by the city councils that set the compensation of the members of a board of a water utility under this section shall designate the administrator of a department or administrative division of that city to be the manager of the water supply system in that city subject to the approval of the city council. The administrator designated under this subsection shall not be considered a civil service employee under section 400.17 and shall serve under the control and direction of the city manager of that city. The administrator may be terminated at will, subject to any contract in place on the effective date of this Act.
   3.  On and after the effective date of this Act and continuing until January 1, 2018, a water utility of any city subject to this section is prohibited from expending any moneys or staff time to plan, design, or construct any new water plant or other water-producing facility other than a facility currently under contract for construction or a distribution facility that will transport water but not produce water.
   4.  Notwithstanding any provision of this section to the contrary, no provision or application of this section shall in any manner restrict or otherwise impair a water utility from performing its obligations and complying with the terms, conditions, covenants, requirements, restrictions of federal or state laws, regulations, or rules, bond resolutions, obligations, or agreements relating to outstanding indebtedness of the water utility, existing chapter 28E agreements and contracts, including without limitation contracts related to the operations, maintenance, repair, or improvements of the water utility.
   5.  For the purposes of this section, “water utility” means a city utility that provides water services, that is located in a federally designated standard metropolitan statistical area that has a population greater than five hundred thousand, as shown by the most recent federal decennial census, and that is located entirely within the state.
    Sec. 2.  SEVERABILITY.  If any word, phrase, clause, sentence, paragraph, or provision of this Act or the application of such to any person or circumstance is declared invalid, illegal, or unenforceable, or unconstitutional for any reason, the remaining provisions or applications of this Act shall not be affected by such declaration and to this end, the provisions of this Act are severable.
    Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of immediate importance, takes effect upon enactment.
EXPLANATION
The inclusion of this explanation does not constitute agreement with

the explanation’s substance by the members of the general assembly.
   This bill relates to the governing of certain water utilities by requiring the discontinuance and dissolution of the board of trustees for certain water works upon the effective date of the bill. The bill provides that such boards of trustees shall cease to be the governing body of the water utility and provides that the city councils of certain cities described in the bill shall be the governing bodies of such water utilities.
   The bill provides that the city councils of such cities shall have all the powers and authorities of the city with respect to the acquisition by purchase, condemnation, or otherwise lease, sale, or other disposition of the property and facilities of the water utility, and the management, control, and operation of all facets of the water utility, subject to the requirements, terms, covenants, conditions, and provisions of any resolutions authorizing the issuance of revenue bonds, pledge orders, or other obligations which are payable from the revenues of the water utility which are then outstanding. The bill also requires the retitling of certain real property.
   The bill requires that city managers of such cities designate a manager of the water supply system for each city, subject to the approval of the relevant city council. A water utility, under the bill, is prohibited from making certain expenditures from the effective date of the bill until January 1, 2018.
   The bill specifies that no provision or application of the bill shall in any manner restrict or otherwise impair a water utility from performing its obligations and complying with the terms, conditions, covenants, requirements, restrictions of federal or state laws, regulations, or rules, bond resolutions, obligations or agreements relating to outstanding indebtedness of the water utility, existing Code chapter 28E agreements and contracts, including without limitation contracts related to the operations, maintenance, repair, or improvements of such a water utility. The bill also specifies that the provisions of the bill are severable.
   The bill takes effect upon enactment.