House File 484 - IntroducedA Bill ForAn Act 1relating to the governing of certain water utilities and
2including effective date provisions.
3BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1   Section 1.  NEW SECTION.  388.12  Water utility board
2discontinuance and dissolution — governing body provisions.
   31.  Notwithstanding the provisions of section 388.2 to
4the contrary, upon the effective date of this Act, the board
5of water works trustees of a water utility in cities in a
6statistical area described in subsection 5, with a population
7greater than thirty-nine thousand as determined by the most
8recent federal decennial census, shall be discontinued,
9dissolved, and shall cease to be the governing body of the
10water utility and the city councils of the cities described
11in this subsection shall thereafter be the governing bodies
12of the water utilities and the city councils of the cities
13shall have all the powers and authorities of the city with
14respect to the acquisition by purchase, condemnation, or
15otherwise lease, sale, or other disposition of the property and
16facilities of the water utility, and the management, control,
17and operation of all facets of the water utility, subject to
18the requirements, terms, covenants, conditions, and provisions
19of any resolutions authorizing the issuance of revenue bonds,
20pledge orders, or other obligations which are payable from the
21revenues of the water utility which are then outstanding. Any
22property not held in the name of the city as required under
23section 388.4, subsection 2, shall be retitled in the name of
24the appropriate city as soon as legally practicable.
   252.  The city managers employed by the city councils that
26set the compensation of the members of a board of a water
27utility under this section shall designate the administrator
28of a department or administrative division of that city to be
29the manager of the water supply system in that city subject
30to the approval of the city council. The administrator
31designated under this subsection shall not be considered a
32civil service employee under section 400.17 and shall serve
33under the control and direction of the city manager of that
34city. The administrator may be terminated at will, subject to
35any contract in place on the effective date of this Act.
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   13.  On and after the effective date of this Act and
2continuing until January 1, 2018, a water utility of any city
3subject to this section is prohibited from expending any moneys
4or staff time to plan, design, or construct any new water
5plant or other water-producing facility other than a facility
6currently under contract for construction or a distribution
7facility that will transport water but not produce water.
   84.  Notwithstanding any provision of this section to the
9contrary, no provision or application of this section shall
10in any manner restrict or otherwise impair a water utility
11from performing its obligations and complying with the terms,
12conditions, covenants, requirements, restrictions of federal
13or state laws, regulations, or rules, bond resolutions,
14obligations, or agreements relating to outstanding indebtedness
15of the water utility, existing chapter 28E agreements and
16contracts, including without limitation contracts related to
17the operations, maintenance, repair, or improvements of the
18water utility.
   195.  For the purposes of this section, “water utility” means
20a city utility that provides water services, that is located in
21a federally designated standard metropolitan statistical area
22that has a population greater than five hundred thousand, as
23shown by the most recent federal decennial census, and that is
24located entirely within the state.
25   Sec. 2.  SEVERABILITY.  If any word, phrase, clause,
26sentence, paragraph, or provision of this Act or the
27application of such to any person or circumstance is declared
28invalid, illegal, or unenforceable, or unconstitutional for any
29reason, the remaining provisions or applications of this Act
30shall not be affected by such declaration and to this end, the
31provisions of this Act are severable.
32   Sec. 3.  EFFECTIVE UPON ENACTMENT.  This Act, being deemed of
33immediate importance, takes effect upon enactment.
34EXPLANATION
35The inclusion of this explanation does not constitute agreement with
-2-1the explanation’s substance by the members of the general assembly.
   2This bill relates to the governing of certain water
3utilities by requiring the discontinuance and dissolution
4of the board of trustees for certain water works upon the
5effective date of the bill. The bill provides that such boards
6of trustees shall cease to be the governing body of the water
7utility and provides that the city councils of certain cities
8described in the bill shall be the governing bodies of such
9water utilities.
   10The bill provides that the city councils of such cities
11shall have all the powers and authorities of the city with
12respect to the acquisition by purchase, condemnation, or
13otherwise lease, sale, or other disposition of the property and
14facilities of the water utility, and the management, control,
15and operation of all facets of the water utility, subject to
16the requirements, terms, covenants, conditions, and provisions
17of any resolutions authorizing the issuance of revenue bonds,
18pledge orders, or other obligations which are payable from the
19revenues of the water utility which are then outstanding. The
20bill also requires the retitling of certain real property.
   21The bill requires that city managers of such cities
22designate a manager of the water supply system for each city,
23subject to the approval of the relevant city council. A water
24utility, under the bill, is prohibited from making certain
25expenditures from the effective date of the bill until January
261, 2018.
   27The bill specifies that no provision or application of the
28bill shall in any manner restrict or otherwise impair a water
29utility from performing its obligations and complying with the
30terms, conditions, covenants, requirements, restrictions of
31federal or state laws, regulations, or rules, bond resolutions,
32obligations or agreements relating to outstanding indebtedness
33of the water utility, existing Code chapter 28E agreements and
34contracts, including without limitation contracts related to
35the operations, maintenance, repair, or improvements of such a
-3-1water utility. The bill also specifies that the provisions of
2the bill are severable.
   3The bill takes effect upon enactment.
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