Text: HF02425 Text: HF02427 Text: HF02400 - HF02499 Text: HF Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 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 thecitygoverning 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 isonlyrequired 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 15 357A.21 ANNEXATION OF LAND BY A CITY – ARBITRATION. 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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