Senate File 456 - Introduced SENATE FILE 456 BY COMMITTEE ON AGRICULTURE (SUCCESSOR TO SSB 1146) (COMPANION TO HF 484 BY COMMITTEE ON AGRICULTURE) A BILL FOR An Act relating to the governing of certain water utilities and 1 including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2070SV (2) 87 aw/rn/rj

S.F. 456 Section 1. NEW SECTION . 388.12 Water utility board 1 discontinuance and dissolution —— governing body provisions. 2 1. Notwithstanding the provisions of section 388.2 to 3 the contrary, upon the effective date of this Act, the board 4 of water works trustees of a water utility in cities in a 5 statistical area described in subsection 5, with a population 6 greater than thirty-nine thousand as determined by the most 7 recent federal decennial census, shall be discontinued, 8 dissolved, and shall cease to be the governing body of the 9 water utility and the city councils of the cities described 10 in this subsection shall thereafter be the governing bodies 11 of the water utilities and the city councils of the cities 12 shall have all the powers and authorities of the city with 13 respect to the acquisition by purchase, condemnation, or 14 otherwise lease, sale, or other disposition of the property and 15 facilities of the water utility, and the management, control, 16 and operation of all facets of the water utility, subject to 17 the requirements, terms, covenants, conditions, and provisions 18 of any resolutions authorizing the issuance of revenue bonds, 19 pledge orders, or other obligations which are payable from the 20 revenues of the water utility which are then outstanding. Any 21 property not held in the name of the city as required under 22 section 388.4, subsection 2, shall be retitled in the name of 23 the appropriate city as soon as legally practicable. 24 2. The city managers employed by the city councils that 25 set the compensation of the members of a board of a water 26 utility under this section shall designate the administrator 27 of a department or administrative division of that city to be 28 the manager of the water supply system in that city subject 29 to the approval of the city council. The administrator 30 designated under this subsection shall not be considered a 31 civil service employee under section 400.17 and shall serve 32 under the control and direction of the city manager of that 33 city. The administrator may be terminated at will, subject to 34 any contract in place on the effective date of this Act. 35 -1- LSB 2070SV (2) 87 aw/rn/rj 1/ 4

S.F. 456 3. On and after the effective date of this Act and 1 continuing until January 1, 2018, a water utility of any city 2 subject to this section is prohibited from expending any moneys 3 or staff time to plan, design, or construct any new water 4 plant or other water-producing facility other than a facility 5 currently under contract for construction or a distribution 6 facility that will transport water but not produce water. 7 4. Notwithstanding any provision of this section to the 8 contrary, no provision or application of this section shall 9 in any manner restrict or otherwise impair a water utility 10 from performing its obligations and complying with the terms, 11 conditions, covenants, requirements, restrictions of federal 12 or state laws, regulations, or rules, bond resolutions, 13 obligations, or agreements relating to outstanding indebtedness 14 of the water utility, existing chapter 28E agreements and 15 contracts, including without limitation contracts related to 16 the operations, maintenance, repair, or improvements of the 17 water utility. 18 5. For the purposes of this section, “water utility” means 19 a city utility that provides water services, that is located in 20 a federally designated standard metropolitan statistical area 21 that has a population greater than five hundred thousand, as 22 shown by the most recent federal decennial census, and that is 23 located entirely within the state. 24 Sec. 2. SEVERABILITY. If any word, phrase, clause, 25 sentence, paragraph, or provision of this Act or the 26 application of such to any person or circumstance is declared 27 invalid, illegal, or unenforceable, or unconstitutional for any 28 reason, the remaining provisions or applications of this Act 29 shall not be affected by such declaration and to this end, the 30 provisions of this Act are severable. 31 Sec. 3. EFFECTIVE UPON ENACTMENT. This Act, being deemed of 32 immediate importance, takes effect upon enactment. 33 EXPLANATION 34 The inclusion of this explanation does not constitute agreement with 35 -2- LSB 2070SV (2) 87 aw/rn/rj 2/ 4

S.F. 456 the explanation’s substance by the members of the general assembly. 1 This bill relates to the governing of certain water 2 utilities by requiring the discontinuance and dissolution 3 of the board of trustees for certain water works upon the 4 effective date of the bill. The bill provides that such boards 5 of trustees shall cease to be the governing body of the water 6 utility and provides that the city councils of certain cities 7 described in the bill shall be the governing bodies of such 8 water utilities. 9 The bill provides that the city councils of such cities 10 shall have all the powers and authorities of the city with 11 respect to the acquisition by purchase, condemnation, or 12 otherwise lease, sale, or other disposition of the property and 13 facilities of the water utility, and the management, control, 14 and operation of all facets of the water utility, subject to 15 the requirements, terms, covenants, conditions, and provisions 16 of any resolutions authorizing the issuance of revenue bonds, 17 pledge orders, or other obligations which are payable from the 18 revenues of the water utility which are then outstanding. The 19 bill also requires the retitling of certain real property. 20 The bill requires that city managers of such cities 21 designate a manager of the water supply system for each city, 22 subject to the approval of the relevant city council. A water 23 utility, under the bill, is prohibited from making certain 24 expenditures from the effective date of the bill until January 25 1, 2018. 26 The bill specifies that no provision or application of the 27 bill shall in any manner restrict or otherwise impair a water 28 utility from performing its obligations and complying with the 29 terms, conditions, covenants, requirements, restrictions of 30 federal or state laws, regulations, or rules, bond resolutions, 31 obligations or agreements relating to outstanding indebtedness 32 of the water utility, existing Code chapter 28E agreements and 33 contracts, including without limitation contracts related to 34 the operations, maintenance, repair, or improvements of such a 35 -3- LSB 2070SV (2) 87 aw/rn/rj 3/ 4

S.F. 456 water utility. The bill also specifies that the provisions of 1 the bill are severable. 2 The bill takes effect upon enactment. 3 -4- LSB 2070SV (2) 87 aw/rn/rj 4/ 4