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House File 2426

Partial Bill History

Bill Text

  1  1    Section 1.  Section 357A.2, unnumbered paragraph 5, Code
  1  2 1997, is amended to read as follows:
  1  3    A rural water district incorporated under this chapter or
  1  4 chapter 504A may give notice of intent to provide water
  1  5 service to a new area within two miles of a city by submitting
  1  6 a water plan to the city governing body of the water utility
  1  7 of the city indicating the estimated start date and completion
  1  8 date of the proposed construction.  The plan is only required
  1  9 to indicate the area within two miles of the city which the
  1 10 rural water district intends to serve by identifying
  1 11 individual tracts, by describing the boundaries of the area,
  1 12 or by identifying the sections or parts of the sections
  1 13 occupied by potential customers in the area to be served.  The
  1 14 plan shall indicate the route of the proposed water
  1 15 distribution system.  If the city fails to respond to the
  1 16 rural water district's plan within ninety days of receipt of
  1 17 the plan, the rural water district may provide service in the
  1 18 area designated in the plan.  If the rural water district
  1 19 fails to provide water service in the area designated in the
  1 20 plan or any part of the area designated in the plan, within
  1 21 three years of the notice of intent to provide water service,
  1 22 then the rural water district's right to serve is void and a
  1 23 new notice of intent may be submitted.  The city may inform
  1 24 the rural water district within ninety days of receipt of the
  1 25 plan that the city requires additional time or information to
  1 26 study the question of providing water service outside the
  1 27 limits of the city.  If additional time or information is
  1 28 required, the city shall respond to the rural water district's
  1 29 plan within one hundred eighty days of receipt of the plan.
  1 30 In responding to the plan, the city may waive its right to
  1 31 provide water service within the areas designated for service
  1 32 by the rural water district, or.  If the city has a state-
  1 33 permitted community water system or demonstrates that the city
  1 34 is in the process of establishing a state-permitted community
  1 35 water system, the city may reserve the right to provide water
  2  1 service in some or all of the areas which the rural water
  2  2 district intends to serve.  If the city reserves the right to
  2  3 provide water service within some or all of the areas which
  2  4 the rural water district intends to serve, the city shall
  2  5 provide service within four years of receipt of the plan to
  2  6 property owners who request water service.  If the rural water
  2  7 district is allowed to serve part or all of the area within
  2  8 two miles of the city limits and fails to do so within three
  2  9 years then a new notice of intent to provide water service is
  2 10 required.  This section does not preclude a city from
  2 11 providing water service in an area which is annexed by the
  2 12 city.
  2 13    Sec. 2.  Section 357A.21, Code 1997, is amended by striking
  2 14 the section and inserting in lieu thereof the following:
  2 16    1.  A water district organized under chapter 357, 357A,
  2 17 499, or 504A shall be fairly compensated for losses resulting
  2 18 from annexation.  The governing body of a city water utility
  2 19 and the board of directors or trustees of the water district
  2 20 may agree to terms which provide that the facilities owned by
  2 21 the water district and located within the annexed area of the
  2 22 city shall be retained by the water district for the purpose
  2 23 of transporting water to customers outside the city.  When
  2 24 property is annexed that includes the infrastructure of a
  2 25 rural water district, the annexing city may request that the
  2 26 rural water district determine the value of the infrastructure
  2 27 dedicated to providing water service to the customers in the
  2 28 annexed area and the amount of the value shall be communicated
  2 29 to the city within ninety days.  The annexing city shall have
  2 30 ninety days to agree to pay the value to the rural water
  2 31 district.  If the annexing city does not agree to purchase the
  2 32 infrastructure at the stated value, the rural water district
  2 33 shall continue to serve the customers.  After four years, the
  2 34 annexing city may again request the value and proceed to
  2 35 purchase the infrastructure.  The annexing city and the rural
  3  1 water district may enter into any agreement for the purchase,
  3  2 sale, or continuation of service, however, if an agreement is
  3  3 not reached within ninety days from the date that the water
  3  4 district gives notice of the value of its facilities, the
  3  5 issue may be submitted to arbitration.
  3  6    2.  If the issue is submitted to arbitration, an arbitrator
  3  7 shall be selected by a committee which includes one member of
  3  8 the governing body of the city water utility or its designee,
  3  9 one member of the water district's board of directors or
  3 10 trustees or its designee, and a disinterested party selected
  3 11 by the other two members of the committee.  A list of
  3 12 qualified arbitrators may be obtained from the American
  3 13 arbitration association or other recognized arbitration
  3 14 organization or association.
  3 15    3.  The arbitrator shall consider all evidence submitted by
  3 16 the parties including the value of a water distribution system
  3 17 to the fire protection provided by a city.  The final report
  3 18 of the arbitrator shall establish a value of the facilities
  3 19 within ninety days after the date that the issue was submitted
  3 20 to arbitration.  If the findings of the arbitrator are
  3 21 rejected by either of the parties, the governing body of the
  3 22 city water utility may serve notice on the water district that
  3 23 prohibits the expansion of water service to additional water
  3 24 customers in the annexed area without specific written
  3 25 permission.  The governing body of the city water utility may
  3 26 provide service to any person requesting water service in the
  3 27 annexed area.  
  3 28                           EXPLANATION
  3 29    This bill provides procedures for giving notice of intent
  3 30 to a city water utility by a rural water district which plans
  3 31 to provide water service within two miles of a city.  The
  3 32 rural water district is to notify the city of the estimated
  3 33 date of starting construction to provide service in the area
  3 34 and the proposed completion date.  The water plan submitted by
  3 35 the rural water district is to identify tracts and customers
  4  1 to be served in the area and the route of the proposed water
  4  2 distribution system.  If the rural water district fails to
  4  3 provide the water service within three years, the district's
  4  4 right to provide service in the area is void.  A new notice of
  4  5 intent has to be submitted to the city.
  4  6    The bill also provides procedures to determine fair
  4  7 compensation for rural water district facilities that are lost
  4  8 by annexation.  The rural water district is to provide the
  4  9 city water utility with the amount of its value within 90 days
  4 10 of notice of annexation by the city water utility.  The city
  4 11 has an additional 90 days to agree to the value asked by the
  4 12 district.  If the purchase is not agreed to within the 90
  4 13 days, the district shall continue to serve the customers for
  4 14 four more years.  After four years, the city may request the
  4 15 infrastructure value again.  The city water utility may
  4 16 purchase the facilities for the value submitted by the rural
  4 17 water district, negotiate another price, or request
  4 18 arbitration.  The arbitrator is to submit its valuation of the
  4 19 facilities within 90 days.  If any party refuses the
  4 20 arbitration decision, the city may refuse permission for any
  4 21 expansion of water service to be provided by the rural water
  4 22 district in the annexed area.  
  4 23 LSB 2233HH 77
  4 24 tj/jl/8.2

Text: HF02425                           Text: HF02427
Text: HF02400 - HF02499                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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