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Senate Study Bill 179

Bill Text

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 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 two 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 the city may reserve the right
  1 33 to provide water service in some or all of the areas which the
  1 34 rural water district intends to serve.  If the city reserves
  1 35 the right to provide water service within some or all of the
  2  1 areas which the rural water district intends to serve, the
  2  2 city shall provide service within four years of receipt of the
  2  3 plan to those customers who submit a written request for water
  2  4 service.  This section does not preclude a city from providing
  2  5 water service in an area which is annexed by the city.
  2  6    Sec. 2.  Section 357A.21, Code 1997, is amended by striking
  2  7 the section and inserting in lieu thereof the following:
  2  8    357A.21  ANNEXATION OF LAND BY A CITY – ARBITRATION.
  2  9    1.  A water district organized under chapter 357, 357A,
  2 10 499, or 504A shall be fairly compensated for losses resulting
  2 11 from annexation.  The governing body of a city water utility
  2 12 and the board of directors or trustees of the water district
  2 13 may agree to terms which provide that the facilities owned by
  2 14 the water district and located within the annexed are of the
  2 15 city shall be retained by the water district for the purpose
  2 16 of transporting water to customers outside the city.  However,
  2 17 if such an agreement is not reached, the water district shall
  2 18 submit to the governing body of the city water utility a
  2 19 written itemized inventory of the facilities and the value of
  2 20 the facilities that serve the customers within an annexed area
  2 21 within ninety days of the date of notice of annexation by the
  2 22 governing body of the city water utility.  The governing body
  2 23 of the city water utility may purchase the facilities at the
  2 24 value submitted by the water district or negotiate a purchase
  2 25 price.  If an agreement is not reached within ninety days from
  2 26 the date that the water district gives notice of the value of
  2 27 its facilities, the issue may be submitted to arbitration.
  2 28    2.  If the issue is submitted to arbitration, an arbitrator
  2 29 shall be selected by a committee which includes one member of
  2 30 the governing body of the city water utility or its designee,
  2 31 one member of the water district's board of directors or
  2 32 trustees or its designee, and a disinterested party selected
  2 33 by the other two members of the committee.  A list of
  2 34 qualified arbitrators may be obtained from the American
  2 35 arbitration association or other recognized arbitration
  3  1 organization or association.
  3  2    3.  The arbitrator shall consider all evidence submitted by
  3  3 the parties including the value of a water distribution system
  3  4 to the fire protection provided by a city.  The final report
  3  5 of the arbitrator shall establish a value of the facilities
  3  6 within ninety days after the date that the issue was submitted
  3  7 to arbitration.  If the findings of the arbitrator are
  3  8 rejected by either of the parties, the governing body of the
  3  9 city water utility may serve notice on the water district that
  3 10 prohibits the expansion of water service to additional water
  3 11 customers in the annexed area without specific written
  3 12 permission.  The governing body of the city water utility may
  3 13 provide service to any person requesting water service in the
  3 14 annexed area.  
  3 15                           EXPLANATION
  3 16    This bill provides procedures for giving notice of intent
  3 17 to a city water utility by a rural water district which plans
  3 18 to provide water service within two miles of a city.  The
  3 19 rural water district is to notify the city of the estimated
  3 20 date of starting construction to provide service in the area
  3 21 and the proposed completion date.  The water plan submitted by
  3 22 the rural water district is to identify tracts and customers
  3 23 to be served in the area and the route of the proposed water
  3 24 distribution system.  If the rural water district fails to
  3 25 provide the water service within two years, the district's
  3 26 right to provide service in the area is void.  A new notice of
  3 27 intent has to be submitted to the city.
  3 28    The bill also provides additional procedures to determine
  3 29 fair compensation for rural water district facilities that are
  3 30 lost by annexation.  The rural water district is to provide
  3 31 the city water utility with an itemized inventory of the
  3 32 facilities and its value within 90 days of notice of
  3 33 annexation by the city water utility.  The city water utility
  3 34 may purchase the facilities for the value submitted by the
  3 35 rural water district, negotiate another price, or request
  4  1 arbitration.  The arbitrator is to submit its valuation of the
  4  2 facilities within 90 days.  If any party refuses the
  4  3 arbitration decision, the city may refuse permission for any
  4  4 expansion of water service to be provided by the rural water
  4  5 district in the annexed area.  
  4  6 LSB 2233SC 77
  4  7 tj/jj/8
     

Text: SSB00178                          Text: SSB00180
Text: SSB00100 - SSB00199               Text: SSB Index
Bills and Amendments: General Index     Bill History: General Index

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