House
File
316
-
Introduced
HOUSE
FILE
316
BY
KLEIN
A
BILL
FOR
An
Act
providing
for
the
creation
of
regional
water
authorities
1
and
regional
water
authority
boards
to
assume
the
powers,
2
duties,
assets,
and
liabilities
of
certain
water
utilities,
3
and
including
effective
date
provisions.
4
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
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Section
1.
NEW
SECTION
.
388.12
Water
utility
discontinuance
1
——
transfers
and
transition
provisions.
2
1.
On
or
before
January
1,
2018,
the
board
of
a
water
3
utility
shall
be
discontinued
and
its
powers
and
duties,
and
4
the
assets
and
liabilities
of
the
water
utility,
shall
be
5
separately
transferred
to
each
city
in
which
the
utility’s
main
6
water
production
is
located
that
has
a
population
greater
than
7
thirty-nine
thousand,
as
determined
by
the
most
recent
federal
8
decennial
census.
The
board
of
the
water
utility
shall
by
9
resolution
provide
for
the
equitable
transfer
of
the
assets,
10
and
equitable
transfer
and
assumption
of
the
liabilities
and
11
powers
and
duties,
under
this
subsection
to
allow
for
the
12
continued
provision
of
water
services
to
customers.
Each
13
transfer
shall
be
completed
upon
the
agreement,
by
resolution,
14
of
each
city
council
for
each
city
receiving
a
transfer
and
15
assuming
liabilities
and
powers
and
duties
as
provided
in
this
16
section.
17
2.
a.
If
a
city
council
under
subsection
1
cannot
agree
18
on
such
transfers
and
assumptions
with
the
associated
water
19
utility
board,
the
matters
on
which
they
differ
shall
be
20
decided
by
disinterested
arbitrators,
one
selected
by
the
21
board,
one
selected
by
the
city
council
failing
to
agree
to
the
22
transfers
and
assumptions,
and
one
selected
by
the
mayor
of
the
23
city
who
appointed
the
members
of
the
board.
24
b.
The
decision
of
the
arbitrators
shall
be
made
in
writing
25
and
filed
with
the
board,
and
a
party
to
the
proceedings
may
26
appeal
the
decision
to
the
district
court
by
serving
notice
27
on
the
board
within
twenty
days
after
the
decision
is
filed.
28
The
appeal
shall
be
tried
in
equity
and
a
decree
entered
29
determining
the
entire
matter.
30
3.
Following
the
discontinuance
of
the
board,
the
city
31
manager
employed
by
the
city
council
that
set
the
compensation
32
of
the
members
of
the
board
shall
designate
the
administrator
33
of
a
department
or
administrative
division
of
that
city
to
be
34
the
manager
of
the
water
supply
system
until
the
establishment
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or
designation
of
a
regional
water
authority
pursuant
to
1
section
389.6,
subject
to
the
approval
of
the
city
council.
2
The
administrator
designated
under
this
subsection
shall
not
be
3
considered
a
civil
service
employee
under
section
400.17
and
4
shall
serve
under
the
control
and
direction
of
the
city
manager
5
of
that
city.
The
administrator
may
be
terminated
at
will,
6
subject
to
any
contract
in
place
on
the
effective
date
of
this
7
Act.
8
4.
On
and
after
the
effective
date
of
this
Act,
a
water
9
utility
and
any
city
receiving
powers,
duties,
assets,
or
10
liabilities
under
this
section
shall
not,
related
to
the
water
11
supply
system:
12
a.
Lease,
sell,
or
otherwise
dispose
of
any
real
property
or
13
acquire
any
new
real
property
or
debt
obligations.
14
b.
Issue
revenue
bonds
or
assume
any
other
form
of
15
obligations
payable
from
the
revenues
of
the
water
utility.
16
c.
Expend
moneys
for
any
purpose
other
than
ongoing
17
operations
or
capital
expenditures
below
the
amount
of
one
18
hundred
thousand
dollars,
unless
an
emergency
affecting
public
19
safety
requires
an
emergency
capital
repair,
in
which
case
a
20
vote
of
at
least
three-fourths
of
all
the
members
of
the
city
21
council
shall
be
required
to
approve
the
emergency
expenditure.
22
5.
On
and
after
the
effective
date
of
this
Act,
a
water
23
utility
and
any
city
receiving
powers,
duties,
assets,
or
24
liabilities
under
this
section
are
prohibited
from
expending
25
any
moneys
or
staff
time
to
plan,
design,
or
construct
any
new
26
water
plant
or
other
water-producing
facility.
27
6.
For
the
purposes
of
this
section,
“water
utility”
means
28
a
city
utility
that
provides
water
services,
that
is
located
in
29
a
federally
designated
standard
metropolitan
statistical
area
30
that
has
a
population
greater
than
five
hundred
thousand,
as
31
shown
by
the
most
recent
federal
decennial
census,
and
that
is
32
located
entirely
within
the
state.
33
Sec.
2.
Section
389.1,
Code
2017,
is
amended
to
read
as
34
follows:
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389.1
Definitions.
1
As
used
in
this
chapter
subchapter
,
unless
the
context
2
otherwise
requires:
3
1.
“Joint
water
utility”
means
a
water
utility
established
4
by
two
or
more
cities
which
owns
or
operates
or
proposes
to
5
finance
the
purchase
or
construction
of
all
or
part
of
a
6
water
supply
system
or
the
capacity
or
use
of
a
water
supply
7
system
pursuant
to
this
chapter
subchapter
.
A
water
supply
8
system
includes
all
land,
easements,
rights-of-way,
fixtures,
9
equipment,
accessories,
improvements,
appurtenances,
and
other
10
property
necessary
or
useful
for
the
operation
of
the
system.
11
2.
“Joint
water
utility
board”
means
the
board
of
trustees
12
established
to
operate
a
joint
water
utility.
13
3.
“Project”
means
any
works
or
facilities
useful
or
14
necessary
for
the
operation
of
a
joint
water
utility.
15
Sec.
3.
Section
389.3,
subsection
1,
Code
2017,
is
amended
16
to
read
as
follows:
17
1.
Upon
adoption
of
a
proposal
to
establish
a
joint
water
18
utility,
the
member
cities
shall
establish
a
joint
water
19
utility
board,
consisting
of
at
least
five
members.
The
20
mayors
of
the
participating
cities
shall
appoint
the
members,
21
subject
to
the
approval
of
the
city
councils,
and
at
least
one
22
member
shall
be
appointed
from
each
participating
city.
The
23
board
shall
be
responsible
for
the
planning
and
operation
of
a
24
joint
water
utility,
subject
to
the
provisions
of
this
chapter
25
subchapter
.
26
Sec.
4.
Section
389.5,
Code
2017,
is
amended
to
read
as
27
follows:
28
389.5
Construction.
29
This
chapter
subchapter
being
necessary
for
the
public
30
health,
public
safety,
and
general
welfare,
shall
be
liberally
31
construed
to
effectuate
its
purposes.
This
chapter
subchapter
32
shall
be
construed
as
providing
a
separate
and
independent
33
method
for
accomplishing
its
purposes,
and
shall
take
34
precedence
over
any
contrary
provision
of
the
law.
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Sec.
5.
NEW
SECTION
.
389.6
Regional
water
authority
——
1
established.
2
1.
On
or
before
January
1,
2020,
each
receiving
city
3
shall
enter
into
an
agreement
under
chapter
28E,
approved
by
4
the
city
council
of
each
city,
to
establish
or
designate
a
5
regional
water
authority
that
shall
provide
water
services,
as
6
previously
provided
by
the
discontinued
water
utilities.
7
2.
a.
The
agreement
under
this
section
shall
provide
8
for
the
creation
of
a
regional
water
authority
board.
The
9
agreement
shall
provide
for
staggered
six-year
terms
of
the
10
board’s
members,
and
provide
the
board
with
the
authority
to
11
set
the
compensation
for
the
board
members
by
resolution.
12
b.
The
agreement
shall
provide
that
the
members
of
the
13
regional
water
authority
board
shall
be
appointed
as
the
14
negotiated
chapter
28E
agreement
provides,
utilizing
the
15
following
criteria
for
determining
the
composition
and
16
proportional
representation
of
each
receiving
city
on
the
17
board:
18
(1)
Population
of
each
receiving
city.
19
(2)
Total
value
of
water
production
facilities
located
20
within
a
receiving
city,
if
any.
21
(3)
Total
value
of
water
distribution
facilities
located
22
within
a
receiving
city’s
water
supply
system.
23
(4)
If
the
receiving
cities
cannot
agree
on
the
composition
24
of
and
the
proportional
representation
on
the
regional
water
25
authority
board,
the
matters
on
which
they
differ
shall
be
26
decided
by
disinterested
arbitrators
utilizing
the
criteria
27
provided
in
subparagraphs
(1)
through
(3),
one
selected
by
each
28
of
the
receiving
cities
and
an
additional
arbitrator
selected
29
by
those
arbitrators
if
the
number
of
arbitrators
selected
by
30
receiving
cities
results
in
an
even
number
of
arbitrators.
31
c.
The
decision
of
the
arbitrators
shall
be
made
in
writing
32
and
filed
with
each
receiving
city,
and
a
receiving
city
33
subject
to
the
proceedings
may
appeal
the
decision
to
the
34
district
court
by
serving
notice
on
the
other
receiving
cities
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within
twenty
days
after
the
decision
is
filed.
The
appeal
1
shall
be
tried
in
equity
and
a
decree
entered
determining
the
2
entire
matter.
3
d.
Population
determinations
under
this
subsection
shall
be
4
as
determined
by
the
most
recent
federal
decennial
census.
5
3.
The
agreement
shall
provide
for
the
transfer
of
assets
6
and
liabilities
from
each
city
under
subsection
1
to
the
7
regional
water
authority.
8
4.
The
agreement
shall
provide
the
regional
water
authority
9
board
with
the
same
powers
and
duties
of
a
city
utility
under
10
chapter
388,
and
may
provide
the
regional
water
authority
board
11
with
additional
powers
and
duties.
12
5.
The
agreement
shall
provide
that
other
cities
that
are
13
not
receiving
cities
may
join
the
regional
water
authority
14
under
terms
specified
in
the
agreement
creating
the
regional
15
water
authority,
with
proportional
representation
based
16
upon
the
criteria
identified
in
section
389.6,
subsection
2,
17
paragraph
“b”
.
18
6.
A
regional
water
authority
shall
not
expend
any
moneys
or
19
staff
time
to
plan,
design,
or
construct
any
new
water
plant
or
20
other
water-producing
facility
before
July
1,
2018.
21
7.
For
the
purposes
of
this
section,
“receiving
city”
means
22
a
city
receiving
powers
and
duties
and
assuming
assets
and
23
liabilities
under
section
388.12.
24
Sec.
6.
CODE
EDITOR.
The
Code
editor
shall
codify
sections
25
389.1
through
389.5
as
subchapter
I,
and
section
389.6
as
26
enacted
by
this
Act
as
subchapter
II
of
chapter
389.
27
Sec.
7.
EFFECTIVE
UPON
ENACTMENT.
This
Act,
being
deemed
of
28
immediate
importance,
takes
effect
upon
enactment.
29
EXPLANATION
30
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
31
the
explanation’s
substance
by
the
members
of
the
general
assembly.
32
This
bill
provides
for
the
creation
of
a
regional
water
33
authority
and
regional
water
authority
board
to
assume
the
34
transfer
of
powers,
duties,
assets,
and
liabilities
of
a
water
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utility.
1
Under
the
bill,
the
boards
of
certain
city
water
utilities
2
are
discontinued.
The
only
utilities
impacted
under
the
bill
3
are
those
that
provide
water
services
and
that
are
located
4
in
a
federally
designated
standard
metropolitan
statistical
5
area
located
entirely
within
the
state
and
have
populations
6
greater
than
500,000.
The
bill
requires
that
the
water
7
utility’s
powers,
duties,
assets,
and
liabilities
be
separately
8
transferred
to
each
city
in
which
the
utility’s
main
water
9
production
is
located
that
has
a
population
greater
than
10
39,000.
11
The
board
of
the
water
utility
is
required,
by
resolution,
to
12
provide
for
the
equitable
transfer
of
the
assets,
and
equitable
13
transfer
and
assumption
of
the
liabilities
and
powers
and
14
duties,
of
the
utility
to
allow
for
the
continued
provision
of
15
water
services
to
customers.
The
transfers
are
completed
upon
16
the
agreement,
by
resolution,
of
each
city
council
receiving
17
assets,
liabilities,
or
responsibilities
under
the
bill.
The
18
bill
requires
that
if
a
city
council
cannot
agree
on
such
19
distributions
and
assumptions
with
the
associated
board,
the
20
matters
on
which
they
differ
must
be
decided
by
disinterested
21
arbitrators,
one
selected
by
the
board
of
the
water
utility,
22
one
selected
by
the
city
council
that
fails
to
agree
to
the
23
transfers
and
assumptions,
and
one
selected
by
the
mayor
of
the
24
city
who
appointed
the
members
of
the
board.
The
bill
provides
25
that
the
decision
of
the
arbitrators
shall
be
made
in
writing
26
and
filed
with
the
board,
and
allows
a
party
to
the
proceedings
27
to
appeal
the
decision
to
the
district
court,
with
the
appeal
28
tried
in
equity
and
a
decree
entered
determining
the
entire
29
matter.
30
The
bill
requires
that
the
city
manager
employed
by
the
31
city
council
that
set
the
compensation
of
the
members
of
the
32
discontinued
water
utility
designate
the
administrator
of
a
33
department
or
administrative
division
of
that
city,
meeting
34
certain
other
qualifications,
to
be
the
manager
of
the
water
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supply
system
until
the
establishment
or
designation
of
a
1
regional
water
authority
and
subject
to
the
approval
of
the
2
city
council.
3
The
bill
prohibits
a
water
utility
and
any
city
receiving
4
powers,
duties,
assets,
or
liabilities
from
the
water
utility
5
from
expending
any
moneys
or
staff
time
to
plan,
design,
6
or
construct
any
new
water
plant
or
other
water-producing
7
facility.
The
bill
also
prohibits
a
water
utility
and
certain
8
cities
from
the
following
activities
related
to
the
water
9
supply
system:
10
1.
Leasing,
selling,
or
otherwise
disposing
of
any
11
real
property
or
acquiring
any
new
real
property
or
debt
12
obligations.
13
2.
Issuing
revenue
bonds
or
assuming
any
other
form
of
14
obligations
payable
from
the
revenues
of
the
water
utility.
15
3.
Expending
moneys
for
any
purpose
other
than
ongoing
16
operations
except
as
otherwise
provided
in
the
bill.
17
The
bill
provides
a
definition
for
the
term
“receiving
18
city”,
which
includes
a
city
receiving
powers,
duties,
assets,
19
or
liabilities
from
the
discontinued
water
utility.
The
20
bill
requires
each
receiving
city
to
enter
into
an
agreement
21
under
Code
chapter
28E
before
January
1,
2020,
to
establish
22
or
designate
a
regional
water
authority
that
shall
provide
23
water
services,
as
previously
provided
by
the
discontinued
24
water
utility.
The
Code
chapter
28E
agreement
is
required
to
25
provide
for
the
creation
of
a
regional
water
authority
board
26
and
staggered
six-year
terms
for
the
board’s
members.
The
bill
27
also
requires
that
the
Code
chapter
28E
agreement
provide
the
28
board
with
the
authority
to
set
the
compensation
for
the
board
29
members.
30
The
bill
requires
the
agreement
to
contain
provisions
for
31
the
appointment
of
members
of
the
regional
water
authority
32
board.
The
agreement
must
contain
provisions
for
the
33
composition
of
the
regional
water
authority
board
and
for
34
the
proportional
representation
of
each
receiving
city,
as
35
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specified
in
the
bill.
The
bill
also
establishes
arbitration
1
and
judicial
review
procedures
in
the
event
that
receiving
2
cities
cannot
agree
on
the
composition
of
and
proportional
3
representation
on
the
regional
water
authority
board.
4
The
bill
requires
that
the
Code
chapter
28E
agreement
5
provide
for
the
transfer
of
assets
and
liabilities
of
the
water
6
supply
system
to
the
regional
water
authority
and
provide
the
7
regional
water
authority
board
with
the
same
powers
and
duties
8
of
a
city
utility
under
Code
chapter
388.
The
bill
authorizes
9
the
agreement
to
provide
the
regional
water
authority
board
10
with
additional
powers
and
duties.
The
bill
also
requires
11
that
the
agreement
provide
a
means
for
other
cities
to
join
12
the
regional
water
authority,
and
requires
proportional
13
representation
of
such
cities
on
the
regional
water
authority
14
board.
15
The
bill
also
prohibits
a
regional
water
authority
from
16
expending
any
moneys
or
staff
time
to
plan,
design,
or
17
construct
any
new
water
plant
or
other
water-producing
facility
18
before
July
1,
2018.
19
All
population
determinations
under
the
bill
are
required
to
20
be
based
upon
the
most
recent
federal
decennial
census.
21
The
bill
takes
effect
upon
enactment.
22
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