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House File 316 - IntroducedA Bill ForAn Act 1providing for the creation of regional water authorities
2and regional water authority boards to assume the powers,
3duties, assets, and liabilities of certain water utilities,
4and including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 388.12 Water utility discontinuance
2— transfers and transition provisions.
31. On or before January 1, 2018, the board of a water
4utility shall be discontinued and its powers and duties, and
5the assets and liabilities of the water utility, shall be
6separately transferred to each city in which the utility’s main
7water production is located that has a population greater than
8thirty-nine thousand, as determined by the most recent federal
9decennial census. The board of the water utility shall by
10resolution provide for the equitable transfer of the assets,
11and equitable transfer and assumption of the liabilities and
12powers and duties, under this subsection to allow for the
13continued provision of water services to customers. Each
14transfer shall be completed upon the agreement, by resolution,
15of each city council for each city receiving a transfer and
16assuming liabilities and powers and duties as provided in this
17section.
182. a. If a city council under subsection 1 cannot agree
19on such transfers and assumptions with the associated water
20utility board, the matters on which they differ shall be
21decided by disinterested arbitrators, one selected by the
22board, one selected by the city council failing to agree to the
23transfers and assumptions, and one selected by the mayor of the
24city who appointed the members of the board.
25b. The decision of the arbitrators shall be made in writing
26and filed with the board, and a party to the proceedings may
27appeal the decision to the district court by serving notice
28on the board within twenty days after the decision is filed.
29The appeal shall be tried in equity and a decree entered
30determining the entire matter.
313. Following the discontinuance of the board, the city
32manager employed by the city council that set the compensation
33of the members of the board shall designate the administrator
34of a department or administrative division of that city to be
35the manager of the water supply system until the establishment
-1-1or designation of a regional water authority pursuant to
2section 389.6, subject to the approval of the city council.
3The administrator designated under this subsection shall not be
4considered a civil service employee under section 400.17 and
5shall serve under the control and direction of the city manager
6of that city. The administrator may be terminated at will,
7subject to any contract in place on the effective date of this
8Act.
94. On and after the effective date of this Act, a water
10utility and any city receiving powers, duties, assets, or
11liabilities under this section shall not, related to the water
12supply system:
13a. Lease, sell, or otherwise dispose of any real property or
14acquire any new real property or debt obligations.
15b. Issue revenue bonds or assume any other form of
16obligations payable from the revenues of the water utility.
17c. Expend moneys for any purpose other than ongoing
18operations or capital expenditures below the amount of one
19hundred thousand dollars, unless an emergency affecting public
20safety requires an emergency capital repair, in which case a
21vote of at least three-fourths of all the members of the city
22council shall be required to approve the emergency expenditure.
235. On and after the effective date of this Act, a water
24utility and any city receiving powers, duties, assets, or
25liabilities under this section are prohibited from expending
26any moneys or staff time to plan, design, or construct any new
27water plant or other water-producing facility.
286. For the purposes of this section, “water utility” means
29a city utility that provides water services, that is located in
30a federally designated standard metropolitan statistical area
31that has a population greater than five hundred thousand, as
32shown by the most recent federal decennial census, and that is
33located entirely within the state.
34 Sec. 2. Section 389.1, Code 2017, is amended to read as
35follows:
-2- 1389.1 Definitions.
2As used in this chapter subchapter, unless the context
3otherwise requires:
41. “Joint water utility” means a water utility established
5by two or more cities which owns or operates or proposes to
6finance the purchase or construction of all or part of a
7water supply system or the capacity or use of a water supply
8system pursuant to this chapter subchapter. A water supply
9system includes all land, easements, rights-of-way, fixtures,
10equipment, accessories, improvements, appurtenances, and other
11property necessary or useful for the operation of the system.
122. “Joint water utility board” means the board of trustees
13established to operate a joint water utility.
143. “Project” means any works or facilities useful or
15necessary for the operation of a joint water utility.
16 Sec. 3. Section 389.3, subsection 1, Code 2017, is amended
17to read as follows:
181. Upon adoption of a proposal to establish a joint water
19utility, the member cities shall establish a joint water
20utility board, consisting of at least five members. The
21mayors of the participating cities shall appoint the members,
22subject to the approval of the city councils, and at least one
23member shall be appointed from each participating city. The
24board shall be responsible for the planning and operation of a
25joint water utility, subject to the provisions of this chapter
26 subchapter.
27 Sec. 4. Section 389.5, Code 2017, is amended to read as
28follows:
29389.5 Construction.
30This chapter subchapter being necessary for the public
31health, public safety, and general welfare, shall be liberally
32construed to effectuate its purposes. This chapter subchapter
33 shall be construed as providing a separate and independent
34method for accomplishing its purposes, and shall take
35precedence over any contrary provision of the law.
-3-1 Sec. 5. NEW SECTION. 389.6 Regional water authority —
2established.
31. On or before January 1, 2020, each receiving city
4shall enter into an agreement under chapter 28E, approved by
5the city council of each city, to establish or designate a
6regional water authority that shall provide water services, as
7previously provided by the discontinued water utilities.
82. a. The agreement under this section shall provide
9for the creation of a regional water authority board. The
10agreement shall provide for staggered six-year terms of the
11board’s members, and provide the board with the authority to
12set the compensation for the board members by resolution.
13b. The agreement shall provide that the members of the
14regional water authority board shall be appointed as the
15negotiated chapter 28E agreement provides, utilizing the
16following criteria for determining the composition and
17proportional representation of each receiving city on the
18board:
19(1) Population of each receiving city.
20(2) Total value of water production facilities located
21within a receiving city, if any.
22(3) Total value of water distribution facilities located
23within a receiving city’s water supply system.
24(4) If the receiving cities cannot agree on the composition
25of and the proportional representation on the regional water
26authority board, the matters on which they differ shall be
27decided by disinterested arbitrators utilizing the criteria
28provided in subparagraphs (1) through (3), one selected by each
29of the receiving cities and an additional arbitrator selected
30by those arbitrators if the number of arbitrators selected by
31receiving cities results in an even number of arbitrators.
32c. The decision of the arbitrators shall be made in writing
33and filed with each receiving city, and a receiving city
34subject to the proceedings may appeal the decision to the
35district court by serving notice on the other receiving cities
-4-1within twenty days after the decision is filed. The appeal
2shall be tried in equity and a decree entered determining the
3entire matter.
4d. Population determinations under this subsection shall be
5as determined by the most recent federal decennial census.
63. The agreement shall provide for the transfer of assets
7and liabilities from each city under subsection 1 to the
8regional water authority.
94. The agreement shall provide the regional water authority
10board with the same powers and duties of a city utility under
11chapter 388, and may provide the regional water authority board
12with additional powers and duties.
135. The agreement shall provide that other cities that are
14not receiving cities may join the regional water authority
15under terms specified in the agreement creating the regional
16water authority, with proportional representation based
17upon the criteria identified in section 389.6, subsection 2,
18paragraph “b”.
196. A regional water authority shall not expend any moneys or
20staff time to plan, design, or construct any new water plant or
21other water-producing facility before July 1, 2018.
227. For the purposes of this section, “receiving city” means
23a city receiving powers and duties and assuming assets and
24liabilities under section 388.12.
25 Sec. 6. CODE EDITOR. The Code editor shall codify sections
26389.1 through 389.5 as subchapter I, and section 389.6 as
27enacted by this Act as subchapter II of chapter 389.
28 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
29immediate importance, takes effect upon enactment.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill provides for the creation of a regional water
34authority and regional water authority board to assume the
35transfer of powers, duties, assets, and liabilities of a water
-5-1utility.
2Under the bill, the boards of certain city water utilities
3are discontinued. The only utilities impacted under the bill
4are those that provide water services and that are located
5in a federally designated standard metropolitan statistical
6area located entirely within the state and have populations
7greater than 500,000. The bill requires that the water
8utility’s powers, duties, assets, and liabilities be separately
9transferred to each city in which the utility’s main water
10production is located that has a population greater than
1139,000.
12The board of the water utility is required, by resolution, to
13provide for the equitable transfer of the assets, and equitable
14transfer and assumption of the liabilities and powers and
15duties, of the utility to allow for the continued provision of
16water services to customers. The transfers are completed upon
17the agreement, by resolution, of each city council receiving
18assets, liabilities, or responsibilities under the bill. The
19bill requires that if a city council cannot agree on such
20distributions and assumptions with the associated board, the
21matters on which they differ must be decided by disinterested
22arbitrators, one selected by the board of the water utility,
23one selected by the city council that fails to agree to the
24transfers and assumptions, and one selected by the mayor of the
25city who appointed the members of the board. The bill provides
26that the decision of the arbitrators shall be made in writing
27and filed with the board, and allows a party to the proceedings
28to appeal the decision to the district court, with the appeal
29tried in equity and a decree entered determining the entire
30matter.
31The bill requires that the city manager employed by the
32city council that set the compensation of the members of the
33discontinued water utility designate the administrator of a
34department or administrative division of that city, meeting
35certain other qualifications, to be the manager of the water
-6-1supply system until the establishment or designation of a
2regional water authority and subject to the approval of the
3city council.
4The bill prohibits a water utility and any city receiving
5powers, duties, assets, or liabilities from the water utility
6from expending any moneys or staff time to plan, design,
7or construct any new water plant or other water-producing
8facility. The bill also prohibits a water utility and certain
9cities from the following activities related to the water
10supply system:
111. Leasing, selling, or otherwise disposing of any
12real property or acquiring any new real property or debt
13obligations.
142. Issuing revenue bonds or assuming any other form of
15obligations payable from the revenues of the water utility.
163. Expending moneys for any purpose other than ongoing
17operations except as otherwise provided in the bill.
18The bill provides a definition for the term “receiving
19city”, which includes a city receiving powers, duties, assets,
20or liabilities from the discontinued water utility. The
21bill requires each receiving city to enter into an agreement
22under Code chapter 28E before January 1, 2020, to establish
23or designate a regional water authority that shall provide
24water services, as previously provided by the discontinued
25water utility. The Code chapter 28E agreement is required to
26provide for the creation of a regional water authority board
27and staggered six-year terms for the board’s members. The bill
28also requires that the Code chapter 28E agreement provide the
29board with the authority to set the compensation for the board
30members.
31The bill requires the agreement to contain provisions for
32the appointment of members of the regional water authority
33board. The agreement must contain provisions for the
34composition of the regional water authority board and for
35the proportional representation of each receiving city, as
-7-1specified in the bill. The bill also establishes arbitration
2and judicial review procedures in the event that receiving
3cities cannot agree on the composition of and proportional
4representation on the regional water authority board.
5The bill requires that the Code chapter 28E agreement
6provide for the transfer of assets and liabilities of the water
7supply system to the regional water authority and provide the
8regional water authority board with the same powers and duties
9of a city utility under Code chapter 388. The bill authorizes
10the agreement to provide the regional water authority board
11with additional powers and duties. The bill also requires
12that the agreement provide a means for other cities to join
13the regional water authority, and requires proportional
14representation of such cities on the regional water authority
15board.
16The bill also prohibits a regional water authority from
17expending any moneys or staff time to plan, design, or
18construct any new water plant or other water-producing facility
19before July 1, 2018.
20All population determinations under the bill are required to
21be based upon the most recent federal decennial census.
22The bill takes effect upon enactment.
-8-aw/rn/rj
2and regional water authority boards to assume the powers,
3duties, assets, and liabilities of certain water utilities,
4and including effective date provisions.
5BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. NEW SECTION. 388.12 Water utility discontinuance
2— transfers and transition provisions.
31. On or before January 1, 2018, the board of a water
4utility shall be discontinued and its powers and duties, and
5the assets and liabilities of the water utility, shall be
6separately transferred to each city in which the utility’s main
7water production is located that has a population greater than
8thirty-nine thousand, as determined by the most recent federal
9decennial census. The board of the water utility shall by
10resolution provide for the equitable transfer of the assets,
11and equitable transfer and assumption of the liabilities and
12powers and duties, under this subsection to allow for the
13continued provision of water services to customers. Each
14transfer shall be completed upon the agreement, by resolution,
15of each city council for each city receiving a transfer and
16assuming liabilities and powers and duties as provided in this
17section.
182. a. If a city council under subsection 1 cannot agree
19on such transfers and assumptions with the associated water
20utility board, the matters on which they differ shall be
21decided by disinterested arbitrators, one selected by the
22board, one selected by the city council failing to agree to the
23transfers and assumptions, and one selected by the mayor of the
24city who appointed the members of the board.
25b. The decision of the arbitrators shall be made in writing
26and filed with the board, and a party to the proceedings may
27appeal the decision to the district court by serving notice
28on the board within twenty days after the decision is filed.
29The appeal shall be tried in equity and a decree entered
30determining the entire matter.
313. Following the discontinuance of the board, the city
32manager employed by the city council that set the compensation
33of the members of the board shall designate the administrator
34of a department or administrative division of that city to be
35the manager of the water supply system until the establishment
-1-1or designation of a regional water authority pursuant to
2section 389.6, subject to the approval of the city council.
3The administrator designated under this subsection shall not be
4considered a civil service employee under section 400.17 and
5shall serve under the control and direction of the city manager
6of that city. The administrator may be terminated at will,
7subject to any contract in place on the effective date of this
8Act.
94. On and after the effective date of this Act, a water
10utility and any city receiving powers, duties, assets, or
11liabilities under this section shall not, related to the water
12supply system:
13a. Lease, sell, or otherwise dispose of any real property or
14acquire any new real property or debt obligations.
15b. Issue revenue bonds or assume any other form of
16obligations payable from the revenues of the water utility.
17c. Expend moneys for any purpose other than ongoing
18operations or capital expenditures below the amount of one
19hundred thousand dollars, unless an emergency affecting public
20safety requires an emergency capital repair, in which case a
21vote of at least three-fourths of all the members of the city
22council shall be required to approve the emergency expenditure.
235. On and after the effective date of this Act, a water
24utility and any city receiving powers, duties, assets, or
25liabilities under this section are prohibited from expending
26any moneys or staff time to plan, design, or construct any new
27water plant or other water-producing facility.
286. For the purposes of this section, “water utility” means
29a city utility that provides water services, that is located in
30a federally designated standard metropolitan statistical area
31that has a population greater than five hundred thousand, as
32shown by the most recent federal decennial census, and that is
33located entirely within the state.
34 Sec. 2. Section 389.1, Code 2017, is amended to read as
35follows:
-2- 1389.1 Definitions.
2As used in this chapter subchapter, unless the context
3otherwise requires:
41. “Joint water utility” means a water utility established
5by two or more cities which owns or operates or proposes to
6finance the purchase or construction of all or part of a
7water supply system or the capacity or use of a water supply
8system pursuant to this chapter subchapter. A water supply
9system includes all land, easements, rights-of-way, fixtures,
10equipment, accessories, improvements, appurtenances, and other
11property necessary or useful for the operation of the system.
122. “Joint water utility board” means the board of trustees
13established to operate a joint water utility.
143. “Project” means any works or facilities useful or
15necessary for the operation of a joint water utility.
16 Sec. 3. Section 389.3, subsection 1, Code 2017, is amended
17to read as follows:
181. Upon adoption of a proposal to establish a joint water
19utility, the member cities shall establish a joint water
20utility board, consisting of at least five members. The
21mayors of the participating cities shall appoint the members,
22subject to the approval of the city councils, and at least one
23member shall be appointed from each participating city. The
24board shall be responsible for the planning and operation of a
25joint water utility, subject to the provisions of this chapter
26 subchapter.
27 Sec. 4. Section 389.5, Code 2017, is amended to read as
28follows:
29389.5 Construction.
30This chapter subchapter being necessary for the public
31health, public safety, and general welfare, shall be liberally
32construed to effectuate its purposes. This chapter subchapter
33 shall be construed as providing a separate and independent
34method for accomplishing its purposes, and shall take
35precedence over any contrary provision of the law.
-3-1 Sec. 5. NEW SECTION. 389.6 Regional water authority —
2established.
31. On or before January 1, 2020, each receiving city
4shall enter into an agreement under chapter 28E, approved by
5the city council of each city, to establish or designate a
6regional water authority that shall provide water services, as
7previously provided by the discontinued water utilities.
82. a. The agreement under this section shall provide
9for the creation of a regional water authority board. The
10agreement shall provide for staggered six-year terms of the
11board’s members, and provide the board with the authority to
12set the compensation for the board members by resolution.
13b. The agreement shall provide that the members of the
14regional water authority board shall be appointed as the
15negotiated chapter 28E agreement provides, utilizing the
16following criteria for determining the composition and
17proportional representation of each receiving city on the
18board:
19(1) Population of each receiving city.
20(2) Total value of water production facilities located
21within a receiving city, if any.
22(3) Total value of water distribution facilities located
23within a receiving city’s water supply system.
24(4) If the receiving cities cannot agree on the composition
25of and the proportional representation on the regional water
26authority board, the matters on which they differ shall be
27decided by disinterested arbitrators utilizing the criteria
28provided in subparagraphs (1) through (3), one selected by each
29of the receiving cities and an additional arbitrator selected
30by those arbitrators if the number of arbitrators selected by
31receiving cities results in an even number of arbitrators.
32c. The decision of the arbitrators shall be made in writing
33and filed with each receiving city, and a receiving city
34subject to the proceedings may appeal the decision to the
35district court by serving notice on the other receiving cities
-4-1within twenty days after the decision is filed. The appeal
2shall be tried in equity and a decree entered determining the
3entire matter.
4d. Population determinations under this subsection shall be
5as determined by the most recent federal decennial census.
63. The agreement shall provide for the transfer of assets
7and liabilities from each city under subsection 1 to the
8regional water authority.
94. The agreement shall provide the regional water authority
10board with the same powers and duties of a city utility under
11chapter 388, and may provide the regional water authority board
12with additional powers and duties.
135. The agreement shall provide that other cities that are
14not receiving cities may join the regional water authority
15under terms specified in the agreement creating the regional
16water authority, with proportional representation based
17upon the criteria identified in section 389.6, subsection 2,
18paragraph “b”.
196. A regional water authority shall not expend any moneys or
20staff time to plan, design, or construct any new water plant or
21other water-producing facility before July 1, 2018.
227. For the purposes of this section, “receiving city” means
23a city receiving powers and duties and assuming assets and
24liabilities under section 388.12.
25 Sec. 6. CODE EDITOR. The Code editor shall codify sections
26389.1 through 389.5 as subchapter I, and section 389.6 as
27enacted by this Act as subchapter II of chapter 389.
28 Sec. 7. EFFECTIVE UPON ENACTMENT. This Act, being deemed of
29immediate importance, takes effect upon enactment.
30EXPLANATION
31The inclusion of this explanation does not constitute agreement with
32the explanation’s substance by the members of the general assembly.
33This bill provides for the creation of a regional water
34authority and regional water authority board to assume the
35transfer of powers, duties, assets, and liabilities of a water
-5-1utility.
2Under the bill, the boards of certain city water utilities
3are discontinued. The only utilities impacted under the bill
4are those that provide water services and that are located
5in a federally designated standard metropolitan statistical
6area located entirely within the state and have populations
7greater than 500,000. The bill requires that the water
8utility’s powers, duties, assets, and liabilities be separately
9transferred to each city in which the utility’s main water
10production is located that has a population greater than
1139,000.
12The board of the water utility is required, by resolution, to
13provide for the equitable transfer of the assets, and equitable
14transfer and assumption of the liabilities and powers and
15duties, of the utility to allow for the continued provision of
16water services to customers. The transfers are completed upon
17the agreement, by resolution, of each city council receiving
18assets, liabilities, or responsibilities under the bill. The
19bill requires that if a city council cannot agree on such
20distributions and assumptions with the associated board, the
21matters on which they differ must be decided by disinterested
22arbitrators, one selected by the board of the water utility,
23one selected by the city council that fails to agree to the
24transfers and assumptions, and one selected by the mayor of the
25city who appointed the members of the board. The bill provides
26that the decision of the arbitrators shall be made in writing
27and filed with the board, and allows a party to the proceedings
28to appeal the decision to the district court, with the appeal
29tried in equity and a decree entered determining the entire
30matter.
31The bill requires that the city manager employed by the
32city council that set the compensation of the members of the
33discontinued water utility designate the administrator of a
34department or administrative division of that city, meeting
35certain other qualifications, to be the manager of the water
-6-1supply system until the establishment or designation of a
2regional water authority and subject to the approval of the
3city council.
4The bill prohibits a water utility and any city receiving
5powers, duties, assets, or liabilities from the water utility
6from expending any moneys or staff time to plan, design,
7or construct any new water plant or other water-producing
8facility. The bill also prohibits a water utility and certain
9cities from the following activities related to the water
10supply system:
111. Leasing, selling, or otherwise disposing of any
12real property or acquiring any new real property or debt
13obligations.
142. Issuing revenue bonds or assuming any other form of
15obligations payable from the revenues of the water utility.
163. Expending moneys for any purpose other than ongoing
17operations except as otherwise provided in the bill.
18The bill provides a definition for the term “receiving
19city”, which includes a city receiving powers, duties, assets,
20or liabilities from the discontinued water utility. The
21bill requires each receiving city to enter into an agreement
22under Code chapter 28E before January 1, 2020, to establish
23or designate a regional water authority that shall provide
24water services, as previously provided by the discontinued
25water utility. The Code chapter 28E agreement is required to
26provide for the creation of a regional water authority board
27and staggered six-year terms for the board’s members. The bill
28also requires that the Code chapter 28E agreement provide the
29board with the authority to set the compensation for the board
30members.
31The bill requires the agreement to contain provisions for
32the appointment of members of the regional water authority
33board. The agreement must contain provisions for the
34composition of the regional water authority board and for
35the proportional representation of each receiving city, as
-7-1specified in the bill. The bill also establishes arbitration
2and judicial review procedures in the event that receiving
3cities cannot agree on the composition of and proportional
4representation on the regional water authority board.
5The bill requires that the Code chapter 28E agreement
6provide for the transfer of assets and liabilities of the water
7supply system to the regional water authority and provide the
8regional water authority board with the same powers and duties
9of a city utility under Code chapter 388. The bill authorizes
10the agreement to provide the regional water authority board
11with additional powers and duties. The bill also requires
12that the agreement provide a means for other cities to join
13the regional water authority, and requires proportional
14representation of such cities on the regional water authority
15board.
16The bill also prohibits a regional water authority from
17expending any moneys or staff time to plan, design, or
18construct any new water plant or other water-producing facility
19before July 1, 2018.
20All population determinations under the bill are required to
21be based upon the most recent federal decennial census.
22The bill takes effect upon enactment.
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