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To: Public Works Committee
From: Dennis Dowdy, Public Works Director
CC: Mayor
City Clerk
Councilmembers
Dennis Selle, City Engineer /Assistant Director
Ingrid Gaub, Assistant City Engineer
Date: May 17, 2013
Interoffice Memorandum
Engineering Division
Re: Agenda Modification for the May 20, 2013 Meeting
This modification transmits the following agenda item(s):
IV. DISCUSSION ITEMS
H. Watershed Investment Districts* (Robertson)
*Attachment
.AUBUR MORE THAN YOU IMAGINED
Background Paper
LOCALLY -BASED GOVERNANCE STRUCTURES & FUNDING
For Watershed Plan Implementation
SCA Public Issues Committee Subcommittee on Watershed Investment
December 4, 2012
In 1993, the cities and the county recognized that solutions to declining fish populations, flooding, and
degrading water quality often lie outside the boundaries of individual jurisdictions, and began dialogue
about the interest and need for an integrated, ecosystems approach to managing natural resources and
restoring our watersheds .
A regional project was initiated in 1994 called the Regional Needs Assessment to seek solutions to
problems that transcend jurisdictional boundaries in the Sammamish, Snoqualmie, Lake
Washington /Cedar, Central Puget Sound, and Green /Duwamish watersheds. The project developed
trust among the local governments which led to breakthroughs in regional cooperation, namely an
agreement that major river flooding, protection and restoration of salmon habitat, and non -point
pollution clean -up and monitoring were best addressed cooperatively within these 5 watersheds.
By 1997, the cities and county forged interlocal agreements that established Watershed Forums of
local government elected officials within each of the 5 watersheds. The ILA's provided the governance,
policy, and decision making construct for addressing regional needs, setting priorities, and using shared
funding across jurisdictional boundaries. Watershed Forums began addressing regional needs and
setting priorities in 1998.
In 1999, Chinook salmon were listed as Threatened under the Endangered Species Act, prompting the
Forums to develop salmon recovery strategies and goals for Water Resource Inventory Areas (WRIA) 7,
8, 9, and 10. The Sammamish and Lake Washington /Cedar Forums merged into a single WRIA 8 Forum,
and the Central Sound and Green /Duwamish Forums merged into the WRIA 9 Forum. By 2005, WRIA
recovery plans were completed for putting the listed salmon populations on the road to recovery.
No sustainable, dedicated funding mechanism for implementing the watershed plans has emerged, and
unpredictable and intermittent competitive grants remain the primary source of funding to implement
WRIA recovery plans from 2006 to present.
The WRIA 9 Watershed Forum began intensively evaluating 25 funding mechanisms in 2009. By late
2010, after considerable dialogue among multiple watersheds, a cross -WRIA project was initiated to
explore the concept of "watershed investment districts" or a watershed -based governance and funding
structure.
A cross -WRIA Leadership Group of city elected officials and staff from WRIA's 7, 8, 9, and 10 developed a
draft discussion "watershed investment district" bill in July 2011. The draft bill has been reviewed by
the King County Prosecuting Attorney's Office.
Following is a listing of the groups and entities that have been given on or more presentations about the
watershed investment district draft bill over the past 1 -112 years since the bill was drafted:
Snoqualmie Watershed Forum
WRIA 8 Salmon Recovery Council
Puget Sound Salmon Recovery Council
Pierce County Executive staff
Snohomish County Executive staff
Washington Environmental Council
The Nature Conservancy
Salmon Recovery Funding Board
Salmon Recovery Lead Entity Advisory Group
King County Executive staff
WRIA 9 Watershed Ecosystem Forum
WRIA 9 Management Committee
Earth Economics
Parametrix
King County Water and Land Resources Division Green River Coordinating Group
King County Water and Land Resources Surface Water Management Division
Puget Sound Partnership (PSP) Management Team
PSP Ecosystem Coordination Board (ECB)
PSP Leadership Council
P SP ECB Funding Subcommittee
PSP Puget Sound Salmon Recovery Council (PSSRC)
PSP PSSRC Funding Subcommittee
WRIA 10/12 Citizens' Advisory Committee
WRIA 7 Snohomish Forum
House of Representatives Environment Committee
South Central Action Area Caucus Group /Lead Implementing Organization
Suburban Cities Association Public Issues Committee
City of Bellingham City Councilmember
American Planning Association, Washington Chapter
In late 2012, collaboration continues with the Puget Sound Partnership Ecosystem Coordination Board
to develop an integrated funding strategy for Puget Sound that includes Federal, State, and Local
sources of funding for implementing the salmon recovery plans.
WATERSHED INVESTMENT DISTRICT DRAFT LEGISLATION
SECTION -BY- SECTION SUMMARY
July 20, 2011
Sec. 101 Intent
States the legislature's rationale for allowing creation of watershed investment
districts and allows creation of districts. Provides that investments in watershed
health can be made most efficiently and effectively by having the governing body
of the new special purpose district consists of elected officials from local
governments within the boundaries of the district.
Sec. 201 Definitions
Provides that a watershed investment district may include all or a portion of a
single WRIA, and all or portions of contiguous WRIAs.
Sec. 301 Creation of a District
Describes the process for a county or counties to create a district. A district's
boundaries must be generally contiguous with the boundaries of participating
water resource inventory areas. Gives districts taxing authority. Cities containing
a majority of the population within a WRIA may petition a county legislative
authority requesting a hearing on the formation of a district and requires that
county to consider the petition within the form of a proposed ordinance
establishing a district within three months of receiving such a petition.
Sec. 302 Governance
Provides that a district will be governed by a board made up of elected officials of
counties and cities that are wholly or partly within the district. Board members
will include the elected county executive or, if the executive declines, one elected
county legislative member appointed by the legislative body from each
participating county and the mayor or, if the mayor declines, one elected
legislative member appointed by the legislative body from each participating city.
Districts with more than 15 participating local governments may choose through
execution of an interlocal agreement to create a representational board equal to
or less than 15 members. Specifies membership in such a case. Provides for
rotating seats for non - permanent members of the board. Provides that each
board may appoint an advisory committee of stakeholders or include
stakeholders as non - voting members on the board itself.
Sec. 303 Watershed Activities, Programs and Projects
Authorizes a district to use funds for activities and programs to restore and
conserve lands and waters and to reduce water pollution within its boundaries.
Also allows a district to use funds for its operations and to enter into contracts
with public and private entities to carry out activities and programs.
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Sec. 304 Watershed Funding Plan
Requires a district to prepare a watershed funding plan within three years of the
district's creation. Requires a district board to consider allocating up to 10
percent of the funding to activities and programs identified by individual
participating cities and counties. Provides that this allocation be divided among
participating cities and counties in proportion to revenues generated within their
boundaries. Provides that a funding plan address how it will contribute to the
objectives of related efforts aimed at watershed health in the WRIA or WRIAs.
Sec. 305 Watershed Funding Proposition
Within seven years of a district's creation, requires the district to present a
watershed funding proposition to voters within the district for approval. Requires
each county participating in the district to submit a proposition to voters that
describes proposed watershed activities, programs and projects and a
description of the specific nature and amounts to be charged under a proposed
funding mechanism.
Sec. 306 Revenue Sources
Authorizes a district board to fix or impose a fee, tax, surcharge or assessment
as approved by a majority of voters within the district and lists a menu of options,
including general property tax; utility fee; sales and use tax; real estate excise
tax; per parcel assessment; and pollution discharge tax.
Sec. 307 Voter Approval of Watershed Funding Plan
Describes the process for proposing a watershed funding proposition to voters
within a district. If voters fail to approve its first funding proposition, allows a
district to submit another funding propositions to voters. If voters reject two
consecutive funding propositions, the district will be dissolved by ordinance of the
participating county or counties that formed it. Provides that the dissolution of a
district will not preclude re- establishment of a district with the same boundaries in
the future.
Sec. 308 Continued Funding
Describes the process for a district to seek continued funding for activities,
programs and projects. A district may present a new funding proposition to
voters. It must be based on an updated funding plan. If approved by voters, the
funding proposition would be effective for seven to 10 years.
Sec 309 Start -Up Funding for a District
Authorizes the district and participating counties and cities to enter into interlocal
agreements under which the counties and cities can provide start -up funding to
the district for its administrative costs. Provides that the district must repay these
funds. Authorizes districts to receive grants for start -up purposes from federal,
state, tribal and private sources.
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Sec. 310 Purposes and Powers of a District
Describes the purposes and powers of a district. Among these, a district may
maintain an office; receive funds and in -kind services from federal, state, tribal
and private sources; sue and be sued; engage consultants and advisers; contract
for services with other governmental entities; hire employees; acquire and hold
real or personal property; make grants; and enter into interlocal agreements.
Sec. 311 Defense and Indemnity
Provides for defense and indemnification of directors, employees and agents of a
district.
Sec. 312 Treasurer
Allows the treasurer or comparable officer of a participating county or city to
serve as the ex officio treasurer of a district.
Sec. 401 -407 Authorization to Utilize Specific Types of Taxes, Fees or
Assessments
These sections amend current state statutes or add language to authorize
districts to propose specific assessments, taxes or fees to support
implementation of the district's programs and activities as proposed to voters in a
watershed funding plan.
Sec. 501 Application of Funding
Provides that —to the maximum extent possible— watershed activities, programs
and projects that are funded in whole or in part by a district, must be carried out
by an activity, program or project sponsor. Allows a district itself to carry out
programs and activities if it finds that the district is specially qualified to do so.
Otherwise, a district may designate a public or private entity to function as a
activity, program or project sponsor, based on criteria developed by the district.
Sec. 502 Oversight and Evaluation
Provides that districts monitor and evaluate performance of project sponsors, and
for allowing audits of contract requirements.
Sec. 503 Dissolution of a District
Describes the process for dissolving a district and distributing assets.
Sec. 601 -607 Miscellaneous
Adds watershed investment districts to statutes on special purpose districts.
Addresses: applicability of public laws to districts; legal challenges to the
formation of a district; and severability.
WID- DraftLegislation- Section -by- Section- Summary7 -20 -11 3
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AN ACT Relating to authorizing the creation of watershed
investment districts to provide, subject to voter approval,
funding to conserve and restore aquatic habitat in watersheds
and reduce water pollution; amending RCW 82.14.050, 82.46.070,
84.52.043, 29A.36.071, 29A.36.090, and 36.96.010; reenacting and
amending RCW 82.46.035; adding a new section to chapter 82.14
RCW; and adding a new chapter to Title 90 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
PART I
NEW SECTION. Sec. 101. INTENT. (1) The legislature finds
that existing efforts and resources are inadequate to preserve
and restore the health of lands and waters of Washington State
including freshwater and marine water bodies.
(2) The legislature further finds that providing
supplemental funding through one or more regional taxes or fees
to increase investments in healthy lands and waters will benefit
human health, economic vitality, and the ecological health of
the lakes, streams, rivers, and marine waters of the state.
These investments also will contribute to recovery of species
listed as threatened and endangered under the federal Endangered
Species Act.
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(3) The legislature finds that investments in watershed
health can be made most efficiently and effectively by having
the governing body of the new special purpose district consist
of elected officials from local governments within the
boundaries of the special purpose district
(4) The purpose of this act is to authorize the creation of
watershed investment districts and authorize supplemental,
locally - generated watershed funding, subject to voter approval.
Watershed investment districts are to direct funding for
conservation and restoration of lands and waters and water
pollution control efforts within an area to be defined by the
cities and counties that is at a watershed scale at a minimum.
(5) It is the intent of the legislature that revenues
raised by watershed investment districts pursuant to this act
are not intended to, and shall not be used to, replace existing
local or state revenues used for conservation and restoration of
land and water.
PART II
DEFINITIONS
NEW SECTION. Sec. 201. DEFINITIONS. The definitions in this
section apply throughout this chapter unless the context clearly
requires otherwise.
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(1) "District" means a watershed investment district formed
in accordance with section 301 of this act.
(2) "Board" means the board of directors, the governing
body of a watershed investment district.
(3) "Interlocal agreement" means an agreement entered into
under chapter 39.34 RCW that addresses governance and other
issues related to the functioning and operations of the
watershed investment district.
(4) "Participating county" means a county that is within
the boundaries of a watershed investment district.
(5) "Participating city" means a city, town, or village
that is within the boundaries of a watershed investment
district.
(6) "Pollution" means contamination, or other alteration of
the physical, chemical, or biological properties, of any waters
of the state, including change in temperature, taste, color,
turbidity, or odor of the waters, or discharge of any liquid,
gaseous, solid, radioactive, or other substance into any waters
of the state as will or is likely to create a nuisance or render
the waters harmful, detrimental, or injurious to the public
health, safety, or welfare, or to domestic, commercial,
industrial, agricultural, recreational, or other legitimate
beneficial uses, or to livestock, wild animals, birds, fish, or
other aquatic life.
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(7) "Population" means the population of a county, city, or
a district estimated by the state office of financial
management.
(8) "Activity, program or project sponsor" means a public
agency, tribe, or non - profit organization with lead
responsibility for undertaking a watershed investment activity,
program or project funded in whole or in part by a watershed
investment district.
(9) "Watershed" means a water resource inventory area
(WRIA) as established in chapter 173 -500 WAC. However, for the
purpose of this RCW, a watershed investment district may include
all or a portion of a single WRIA, and all or portions of
contiguous WRIAs.
(10) "Watershed funding plan" means the plan a district is
required to develop and approve under section 304 of this act.
(11) "Watershed investment project" means a project that
has been identified in a watershed funding plan for possible
funding and implementation.
PART III
WATERSHED INVESTMENT DISTRICTS
NEW SECTION. Sec. 301. CREATION OF A DISTRICT. (1) A
district shall be established by ordinance of each of the
counties within which any portion of the proposed district is
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located. In forming the district, each county must adopt
substantially the same ordinance including the same terms with
regard to the proposed district's boundaries and terms of
governance as described in section 302 of this chapter.
(2) Cities containing a majority of the population within a
WRIA may petition a county legislative authority requesting a
hearing on the formation of a district. Upon such receipt of
such petition, the county legislative authority shall consider
the petition in the form of a proposed ordinance establishing
such district within three months of receiving such petition.
The county legislative authority shall establish such district
if it determines that the public interest will be served by such
formation.
(3) The boundaries of a watershed investment district shall
generally be coextensive with the boundaries of the involved
water resource inventory areas. The boundaries must be drawn to
include whole, and not portions of, voting precincts and, to the
extent possible, whole taxing districts.
(4) A watershed investment district is a municipal
corporation, an independent taxing "authority" within the
meaning of Article VII, section 1 of the state Constitution, a
political subdivision, and a "taxing district" within the
meaning of Article VII, section 2 of the state Constitution and
possesses all the usual corporate powers as well as all other
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powers that may now or hereafter be specifically conferred by
statute.
NEW SECTION Sec. 302. GOVERNANCE. (1) A district shall be
governed by a board composed of elected officials from the
participating county or counties and participating city or
cities within the boundaries of the district.
(2) Board members shall include: (i) the elected county
executive or, if the executive declines, one elected county
legislative member appointed by the legislative body from each
participating county and (ii) the mayor or, if the mayor
declines, one elected legislative member appointed by the
legislative body from each participating city. Districts with
more than 15 participating cities and counties may choose
through execution of an interlocal agreement to create a
representational board equal to or less than fifteen members,
consisting of (i) the elected county executive or, if the
executive declines, one elected county legislative member
appointed by the legislative body from each participating
county, (ii) the mayor or, if the mayor declines, one elected
legislative member appointed by the legislative body from each
of the two largest participating cities within the district, and
the remaining twelve or lesser number of members shall consist
of either the mayor or an elected legislative member appointed
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by the legislative body from each participating city who shall
serve for a specified term and on a rotational basis with the
other appointed officials, so as to provide all participating
cities equal opportunity for membership on the board, as
provided for in an interlocal agreement. Nonaction on the
appointment of members to the board by a participating county or
city that results in a vacancy on the board of more than six
months, shall constitute a forfeiture of board membership by
that county or city for a period of three years.
(3) A majority of the board constitutes a quorum. All
legislative acts of the district must be authorized by
resolution approved by a majority of the board voting on the
matter.
(4) The board shall appoint an advisory committee or may
include non - voting members on the board to provide advice to the
board. Membership on the advisory committee or non - voting
members on a district board may include representatives of
federal agencies, tribes, state agencies, special purpose
districts, businesses, the agricultural community, the forestry
community, the fishing community, private property owners,
nonprofit corporations, and any other groups or classes of
people that the board determines have an interest in the health
of the land and water of a watershed.
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(5) If a board creates an advisory committee, the board
shall establish protocols for the formation, membership, scope
of work, and conduct of the committee.
NEW SECTION. Sec. 303. WATERSHED ACTIVITIES, PROGRAMS AND
PROJECTS. A district is authorized to undertake watershed
activities, programs and projects to restore and conserve lands
and waters and to reduce water pollution within its boundaries
and to enter into funding contracts with public and private
entities for the entities to undertake the watershed activities,
programs and projects as set forth in its watershed funding
plan. A district is authorized to use district funds for
activities, programs, projects, project maintenance, and
operation of the district, subject to the approved watershed
funding plan as described in section 304.
NEW SECTION. Sec. 304. WATERSHED FUNDING PLAN. (1) Within
three years of the creation of a district under Section 301 of
this Act, the district shall prepare a watershed funding plan.
The plan must include, but not be limited to:
(a) A general description of watershed activities, programs
and projects to be funded in whole or in part with regional
funds and their anticipated priority;
(b) The estimated costs;
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(c) The estimated development periods for the watershed
activities, programs and projects;
(d) The sources of funding, including a description of the
fees and the rates and taxable activities associated with taxes
proposed to be imposed relating to the activities, programs and
projects;
(e) Procedures to monitor progress in implementing the plan
and outcomes; and
(f) Procedures for changes to the watershed funding plan
as future circumstances may dictate.
(2) The board of a district must consider allocating up to
ten percent of the funding generated by a watershed funding plan
to activities, programs and projects identified by individual
participating cities and counties. The activities, programs and
projects must be consistent with the intent of this legislation.
The funds shall be divided among the participating cities and
counties proportional to the revenues generated from their
geographic areas. The board shall determine the timing and
manner of distribution of these funds.
(3) The funding plan shall state how the proposed
investments in watershed health will contribute to the
objectives of related efforts aimed at watershed health in the
watershed investment district.
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NEW SECTION. Sec. 305. WATERSHED FUNDING PROPOSITION.
Within seven years of the creation of a district under Section
301 of this Act and after a district has completed its watershed
funding plan under Section 304 of this Act, the district shall
prepare a watershed funding proposition for submission to the
voters within the district. This proposition shall contain a
general description of the proposed watershed activities,
programs and projects to be funded in whole or in part with the
proposed watershed investment district funding mechanism, and a
description of the specific nature and amounts to be charged
under the proposed funding mechanism. Each participating county
in the watershed investment district shall submit the
proposition as provided by the district to the voters residing
within the district in that county at the next special or
general election, as requested by the district.
NEW SECTION. Sec. 306. REVENUE SOURCES. As part of a
watershed funding plan that has been developed in accordance
with section 304 of this Act, the board of a district may fix
and impose a fee, tax, surcharge, or assessment as approved by a
majority of eligible voters within the district set forth in
section 305 of this act, and may include:
(i) general property tax;
(ii) utility fee;
(iii) sales and use tax;
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(iv) real estate excise tax;
(v) per parcel assessment; and
(vi) pollution discharge tax
NEW SECTION. Sec. 307. VOTER APPROVAL. (1) Fees, taxes,
surcharges, or assessments authorized by section 306 of this
act, section 402 of this act, RCW 82.14.050, RCW 82.46.035,
82.46.070, and 82.52.043 and proposed in a watershed funding
plan may only be imposed upon the approval of the funding
proposition authorized in Section 305 of this Act by a majority
of those voting within the district at an election held for that
purpose. Each county within the district shall call for an
election in accordance with RCW 29A.04.321(2). The election on
any district's funding proposition must be conducted by each
participating county in accordance with the election laws of the
state.
(2) In the event that the first funding proposition
presented to the voters is not approved, the district may submit
another proposition to the voters. In the event that voters
reject two consecutive funding propositions presented by a
district, the district shall be dissolved by ordinance by the
participating county or counties that formed the district
pursuant to Section 503 of this Act.
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(3) The dissolution of a watershed investment district
shall not preclude the re- establishment of a district using the
same or similar boundaries at a future date.
NEW SECTION Sec. 308. CONTINUED FUNDING. (1) Not more than
two years prior to the end of the period during which the first
funding proposition is in effect, the district may prepare a new
funding plan and present a new funding proposition to the voters
of the district. Second and subsequent funding propositions
approved by voters of the district, and the funding plans they
are based upon, shall be in effect for at least seven and no
more than ten years.
(2) Voter approval of second and subsequent funding
propositions shall be in accordance with Section 307 of this
Act.
NEW SECTION. Sec. 309. START -UP FUNDING. A district and the
participating counties and cities may enter into an interlocal
agreement under which the participating counties and cities may
advance to the district start -up funding for its administrative
costs. Repayment of such funds may be provided for in the
interlocal agreement. A district is eligible to receive grant
funding for start -up purposes from federal, state, tribal, and
private sources.
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NEW SECTION. Sec. 310. POWERS AND PURPOSES. In addition to
providing funding for watershed activities, programs and
projects specifically authorized under this chapter, a district
may:
(1) Maintain an office or offices;
(2) Receive funding from federal, state, tribal, and
private sources;
(3) Apply for and accept grants, loans, advances, and
contributions from any source of money, property, labor, or
other things of value, to be held, used, and applied as the
district deems necessary, useful, or convenient to accomplish
its purposes;
(4) Sue and be sued in its own name, and plead and be
impleaded;
(5) Engage consultants and other contractors, agents,
attorneys, and advisers, contract with state, federal, and local
governmental entities for services, and hire employees, agents,
and other personnel as the district deems necessary, useful, or
convenient to accomplish its purposes;
(6) Establish procurement policies by resolution;
(7) Make and execute all manner of contracts, agreements,
and documents with public and private parties as the district
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deems necessary, useful, or convenient to accomplish its
purposes;
(8) Acquire and hold real or personal property, or any
interest therein, in the name of the district, and sell, assign,
lease, encumber, mortgage, or otherwise dispose of the property
in a manner as the district deems necessary, useful, or
convenient to accomplish its purposes. Any county or city
legislative authority may transfer property, with or without
consideration, to a district created under this chapter;
(9) Open and maintain accounts in qualified public
depositaries and otherwise provide for the investment of any
funds not required for immediate disbursement, and provide for
the selection of investments;
(10) Appear on its own behalf before boards, commissions,
departments, or agencies of federal, state, or local government;
(11) Procure insurance in amounts and from insurers as the
district deems desirable including, but not limited to,
insurance against any loss or damage to its property or other
assets, public liability insurance for injuries to persons or
property, and liability insurance with limits a district board
deems reasonable for the purpose of protecting and holding
personally harmless directors, officers, and employees of the
district against liability arising from their acts or omissions
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while performing or in good faith purporting to perform their
official duties;
(12) Make expenditures as are appropriate for paying the
administrative costs and expenses of the district in carrying
out the provisions of this chapter;
(13) Establish reserves and special funds, and controls on
deposits to and disbursements from them, as the district deems
necessary, useful, or convenient to accomplish its purposes;
(14) Prepare, publish, and distribute such studies,
reports, bulletins, and other material as the district deems
necessary, useful, or convenient to accomplish its purposes;
(15) Conduct meetings at which members participating
through the use of any means of communication by which all
members participating can hear each other during the meeting are
deemed to be present in person at the meeting for all purposes;
(16) Adopt rules and policies concerning its exercise of
the powers authorized by this chapter;
(17) Provide grant funds to activity and program sponsors
that are located within the boundaries of the district, so long
as the use of the grant funds is within the purposes authorized
under this chapter;
(18) Enter into interlocal agreements with one or more of
its participating cities or counties to provide the services or
exercise the powers above in accordance with chapter 39.34; and
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(19) Exercise any other power the district deems necessary,
useful, or convenient to accomplish its purposes and exercise
the powers expressly granted in this chapter.
(20) Convey real property and improvements to
participating counties and cities, and to non - profits without
regard to consideration, provided, however, that any watershed
investment projects conveyed by the district shall continue to
be operated, maintained, and repaired by the receiving entity.
NEW SECTION. Sec. 311. DEFENSE AND INDEMNITY. Whenever an
action, claim, or proceeding is instituted against a person who
is or was a director, officer, or employee of a district arising
out of the performance of duties for or employment with the
district, the district may grant a request by the person that
the attorney of the district's choosing be authorized to defend
the claim, suit, or proceeding, and the costs of defense,
attorneys' fees, and obligation for payments arising from the
action may be paid from the district's funds. Costs of defense,
judgment, or settlement against the person shall not be paid in
a case where the court has found that the person was not acting
in good faith within the scope of employment with or duties for
the district. No director or officer of a district shall be
personally liable for acts done or omitted in good faith while
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For WID Leadership Group Meeting
July 20, 2011
performing duties as a director or officer on behalf of the
district.
NEW SECTION. Sec. 312. TREASURER. At the request of the
district, the treasurer or comparable officer of a participating
county or city may serve as the ex officio treasurer of the
district.
PART IV
PUBLIC FUNDING AND FINANCING FOR RESTORATION AND CONSERVATION
NEW SECTION. Sec. 401. A new section is added to chapter
82.14 RCW to read as follows: Upon voter approval under section
305 of this act, the board of a watershed investment district
may impose a sales and use tax. This tax is in addition to any
other taxes authorized by the law and must be collected from
those persons who are taxable by the state under chapters 82.08
and 82.12 RCW upon the occurrence of any taxable event within
the district. The rate of the tax shall not exceed O.OX percent
of the selling price in the case of a sales tax, or value of an
article in the case of a use tax. Chapter 82.32 RCW applies to
any sales and use tax under this section. Any sales and use tax
authorized under this section must provide for an exemption for
sales of lodging to the extent required by RCW 82.14.410.
DRAFT 7/14/11 Page 17
NEW SECTION. Sec. 402. Upon voter approval under section 307 of
this act, for the purpose of funding watershed investment
projects identified in a watershed funding plan as defined under
section 304 of this act, the watershed investment district as
defined under section 301 of this act may levy an amount not to
exceed ten cents per thousand dollars of assessed valuation
against the assessed valuation of all taxable property within
the district for one to seven years as set forth in the ballot
proposition, as described in section 305 of this Act. The
limitations in RCW 84.52.043 do not apply to the tax levy
authorized in this subsection. No tax may be imposed under this
section unless approved by a majority of the voters of the
district voting on a proposition. A district proposition may be
submitted as part of a single ballot proposition under section
305 of this act.
Sec. 403. RCW 82.14.050 and 2005 c 336 s 20 are each
amended to read as follows: The counties, cities, and
transportation authorities under RCW 82.14.045, public
facilities districts under chapters 36.100 and 35.57 RCW, public
transportation benefit areas under chapters 36.57A and 82.14.440
RCW, watershed investment districts under chapter 90. RCW (the
new chapter created in section 607 of this act), regional
transportation investment districts, and transportation benefit
DRAFT 7/14/11 Page 18
districts under chapter 36.73 RCW shall contract, prior to the
effective date of a resolution or ordinance imposing a sales and
use tax, the administration and collection to the state
department of revenue, which shall deduct a percentage amount,
as provided by contract, not to exceed two percent of the taxes
collected for administration and collection expenses incurred by
the department. The remainder of any portion of any tax
authorized by this chapter that is collected by the department
of revenue shall be deposited by the state department of revenue
in the local sales and use tax account hereby created in the
state treasury. Moneys in the local sales and use tax account
may be spent only for distribution to counties, cities,
transportation authorities, public facilities districts, public
transportation benefit areas, watershed investment distric ts, „mmmmm�
regional transportation investment districts, and transportation
benefit districts imposing a sales and use tax. All
administrative provisions in chapters 82.03, 82.08, 82.12, and
82.32 RCW, as they now exist or may hereafter be amended, shall,
insofar as they are applicable to state sales and use taxes, be
applicable to taxes imposed pursuant to this chapter. Counties,
cities, transportation authorities, public facilities districts,
watershed investment districts, and regional transportation
investment districts may not conduct independent sales or use
tax audits of sellers registered under the streamlined sales tax
DRAFT 7/14/11 Page 19
agreement. Except as provided in RCW 43.08.190, all earnings of
investments of balances in the local sales and use tax account
shall be credited to the local sales and use tax account and
distributed to the counties, cities, transportation authorities,
public facilities districts, public transportation benefit
areas, watershed investment districts, regional transportation
investment districts, and transportation benefit districts
monthly.
Sec. 404. RCW 82.46.035 and 1992 c 221 s and 1991 sp. s. c
32 s 33 are each reenacted and amended to read as follows:
(1) The legislative authority of any county or city shall
identify in the adopted budget the capital projects funded in
whole or in part from the proceeds of the tax authorized in this
section, and shall indicate that such tax is intended to be in
addition to other funds that may be reasonably available for
such capital projects. The board of any watershed investment
district as defined under RCW 90. [in section 201 of this
Act] shall identify in its watershed funding plan as defined
under RCW 90. [section 304 of this Act] the watershed
rolects funded in whole or in part from the proceeds of the tax
authorized in this section, and shall indicate that the tax is
intended to be in addition to other funds that may be reasonably
available for the capital projects.
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(2) The legislative authority of any county or any city
that plans under RCW 36.70A.040(1) may impose an additional
excise tax on each sale of real property in the unincorporated
areas of the county for the county tax and in the corporate
limits of the city for the city tax at a rate not exceeding one-
quarter of one percent of the selling price. The board of any
watershed investment district as defined in RCW 90. [section
201 of this Act] with a watershed funding plan as defined under
RCW 90. [section 304 of this Act] may impose an additional
excise tax on each sale of real property in the unincorporated
areas of the water investment district at a rate not exceedi
one half of one percent of the selling price. Any county
choosing to plan under RCW 36.70A.040(2), any city within such a
county, and any watershed investment district
may only adopt an
ordinance or resolution imposing the excise tax authorized by
this section if the ordinance or resolution is first authorized
by a proposition approved by a majority of the voters of the
taxing district voting on the proposition at a general election
held within the taxing district or at a special election within
the taxing district called by the taxing district for the
purpose of submitting such proposition to the voters. The
osition of the watershed investment district may be
submitted as part of a single ballot proposition under RCW
90. [section 305 of this Act].
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(3) Revenues generated from the tax imposed under
subsection (2) of this section shall be used by such counties
and cities solely for financing capital projects specified in a
capital facilities plan element of a comprehensive plan or by
the district solely for financing watershed projects specified
in a watershed fundinq plan as defined under RCW 90. [section
304 of this Act]. However, revenues (a) pledged by such counties
and cities to debt retirement prior to March 1, 1992, may
continue to be used for that purpose until the original debt for
which the revenues were pledged is retired, or (b) committed
prior to March 1, 1992, by such counties or cities to a project
may continue to be used for that purpose until the project is
completed.
(4) Revenues generated by the tax imposed by this section
shall be deposited in a separate account.
(5) As used in this section, "city" means any city or town
and "capital project" means: (a) Watershed projects identified
in a watershed fundinq plan as defined under RCW 90. [section
304 of this Act]; (b) those public works projects of a local
government for planning, acquisition, construction,
reconstruction, repair, replacement, rehabilitation, or
improvement of streets, roads, highways, sidewalks, street and
road lighting systems, traffic signals, bridges, domestic water
systems, storm and sanitary sewer systems; and (c) planning,
DRAFT 7/14/11 Page 22
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construction, reconstruction, repair, rehabilitation, or
improvement of parks.
(6) When the governor files a notice of noncompliance under
RCW 36.70A.340 with the secretary of state and the appropriate
county, district, or city, the county, district, or city's
authority to impose the additional excise tax under this section
shall be temporarily rescinded until the governor files a
subsequent notice rescinding the notice of noncompliance.
Sec. 405. RCW 82.46.070 and 1990 1st ex.s. c 5 s 3 are each
amended to read as follows:
(1) Subject to subsection (2) of this section, the
legislative authority of any county may impose an additional
excise tax on each sale of real property in the county at a rate
not to exceed one percent of the selling price and the board of
any district as defined under RCW m90. [section 201 of this mmm ��...._........
Act] that has approved a watershed funding plan as defined under
RCW 90. [section 304 of this Act] may impose an additional
excise tax on each sale of real property in the district at a
rate not to exceed one -half of one percent of the sellinq price.
The proceeds of the tax shall be used exclusively for the
acquisition and maintenance of conservation areas in the case of
the county tax and shall be used exclusively for projects
identified in the watershed fundinq plan in the case of the
DRAFT 7/14/11 Page 23
JqI13/ 20., 201
district tax. The taxes imposed under this subsection shall be
imposed in the same manner and on the same occurrences, and are
subject to the same conditions, as the taxes under chapter 82.45
RCW, except:
(a) The tax shall be the obligation of the purchaser; and
(b) The county tax does not apply to the acquisition of
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
conservation areas by the county. The county and the district
may enforce the obligation through an action of debt against the
purchaser or may foreclose the lien on the property in the same
manner prescribed for the foreclosure of mortgages. The tax
shall take effect thirty days after the election at which the
taxes are authorized.
(2) No tax may be imposed under subsection (1) of this
section unless approved by a majority of the voters of the
county or district voting thereon for a specified period and
maximum rate after:
(a) The adoption of a resolution by the county legislative
authority of the county proposing this action or, in the case of
the district tax, the adoption of a resolution by the board of
the district; or
(b) The filing of a petition proposing this action with the
county auditor, which petition is signed by county voters at
least equal in number to ten percent of the total number of
voters in the county who voted at the last preceding general
DRAFT 7/14/11 Page 24
election. The ballot proposition proposing the county tax shall
be submitted to the voters of the county at the next general
election occurring at least sixty days after a petition is
filed, or at any special election prior to this general election
that has been called for such purpose by the county legislative
authority. The ballot proposition proposing the district tax
must be submitted to the voters of the district at a general or
special election. The district proposition may be submitted as
art of a sinqle proposition under RCW 90. [section 305 of
this Act] .
(3) A plan for the expenditure of the county excise tax
proceeds shall be prepared by the county legislative authority
at least sixty days before the election if the proposal is
initiated by resolution of the county legislative authority, or
within six months after the tax has been authorized by the
voters if the proposal is initiated by petition. Prior to the
adoption of this plan, the elected officials of cities located
within the county shall be consulted and a public hearing shall
be held to obtain public input. The proceeds of this excise tax
must be expended in conformance with this plan.
(4) As used in this section, "conservation area" has the
meaning given under RCW 36.32.570.
DRAFT 7/14/11 Page 25
20, 2011
Sec. 406. RCW 84.52.043 and 2005 c 122 s 3 are each amended
to read as follows: Within and subject to the limitations
imposed by RCW 84.52.050 as amended, the regular ad valorem tax
levies upon real and personal property by the taxing districts
hereafter named shall be as follows:
(1) Levies of the senior taxing districts shall be as
follows:
(a) The levy by the state shall not exceed three dollars
and sixty cents per thousand dollars of assessed value adjusted
to the state equalized value in accordance with the indicated
ratio fixed by the state department of revenue to be used
exclusively for the support of the common schools;
(b) the levy by any county shall not exceed one dollar and
eighty cents per thousand dollars of assessed value; (c) the
levy by any road district shall not exceed two dollars and
twenty -five cents per thousand dollars of assessed value; and
(d) the levy by any city or town shall not exceed three dollars
and thirty -seven and one -half cents per thousand dollars of
assessed value. However any county is hereby authorized to
increase its levy from one dollar and eighty cents to a rate not
to exceed two dollars and forty -seven and one -half cents per
thousand dollars of assessed value for general county purposes
if the total levies for both the county and any road district
within the county do not exceed four dollars and five cents per
DRAFT 7/14/11 Page 26
I ^'ol ID l mh "]" Sh p °Ju. ql) cc[h'l
.fifly 20,2011
thousand dollars of assessed value, and no other taxing district
has its levy reduced as a result of the increased county levy.
(2) The aggregate levies of junior taxing districts and
senior taxing districts, other than the state, shall not exceed
five dollars and ninety cents per thousand dollars of assessed
valuation. The term "junior taxing districts" includes all
taxing districts other than the state, counties, road districts,
cities, towns, port districts, and public utility districts. The
limitations provided in this subsection shall not apply to: (a)
Levies at the rates provided by existing law by or for any port
or public utility district; (b) excess property tax levies
authorized in Article VII, section 2 of the state Constitution;
(c) levies for acquiring conservation futures as authorized
under RCW 84.34.230; (d) levies for emergency medical care or
emergency medical services imposed under RCW 84.52.069; (e)
levies to finance affordable housing for very low - income housing
imposed under RCW 84.52.105; (f) the portions of levies by
metropolitan park districts that are protected under RCW
84.52.120; (g) levies imposed by ferry districts under RCW
36.54.130; (h) levies for criminal justice purposes under RCW
84.52.135; (i) the portions of levies by fire protection
districts that are protected under RCW 84.52.125; (j) levies by
counties for transit - related purposes under RCW 84.52.140; (k)
the protected portion of the levies imposed under RCW 86.15.160
DRAFT 7/14/11 Page 27
flood control zone districts in a county with a population of
seven hundred seventy -five thousand or more that are
coextensive with a county; and (1) levies imposed by a watershed
investment district under RCW 84.34.230(3) to fund watershed
investment district activities, proqrams and projects identified
in a watershed funding plan as defined under RCW 90. [section
304 of this Act].
Sec. 407. RCW 29A.36.071 and 2006 c 311 s 9 are each
amended to read as follows:
(1) Except as provided to the contrary in RCW 82.14.036,
82.46.021, or 82.80.090, the ballot title of any referendum
filed on an enactment or portion of an enactment of a local
government and any other question submitted to the voters of a
local government consists of three elements: (a) An
identification of the enacting legislative body and a statement
of the subject matter; (b) a concise description of the measure;
and (c) a question. The ballot title must conform with the
requirements and be displayed substantially as provided under
RCW 29A.72.050, except that the concise description must not
exceed seventy -five words; however, a concise description
submitted on behalf of a proposed or existing regional
transportation investment district or watershed investment
district as defined in RCW 90.
[section 301 of this Act] may
DRAFT 7/14/11 Page 28
J�id 2(),,,!M � 1.
exceed seventy -five words. If the local governmental unit is a
city, watershed investment district, or a town, the concise
statement shall be prepared by the city attorney, watershed
investment district's attorney, or town attorney, as applicable.
If the local governmental unit is a county, the concise
statement shall be prepared by the prosecuting attorney of the
county. If the unit is a unit of local government other than a
city, town, watershed investment district, or county, the
concise statement shall be prepared by the prosecuting attorney
of the county within which the majority area of the unit is
located.
(2) A referendum measure on the enactment of a unit of
local government shall be advertised in the manner provided for
nominees for elective office.
(3) Subsection (1) of this section does not apply if
another provision of law specifies the ballot title for a
specific type of ballot question or proposition.
Sec. 408. RCW 29A.36.090 and 2003 c 111 s 909 are each
amended to read as follows: If any persons are dissatisfied with
the ballot title for a local ballot measure that was formulated
by the city, town, or watershed investment district's attorney
or prosecuting attorney preparing the same, they may at any time
within ten days from the time of the filing of the ballot title,
DRAFT 7/14/11 Page 29
For WID ( uro iug� l � ���pig
not including Saturdays, Sundays, and legal holidays, appeal to
the superior court of the county where the question is to appear
on the ballot, by petition setting forth the measure, the ballot
title objected to, their objections to it, and praying for
amendment of it. The time of the filing of the ballot title, as
used in this section in determining the time for appeal, is the
time the ballot title is first filed with the county auditor. A
copy of the petition on appeal together with a notice that an
appeal has been taken shall be served upon the county auditor of
the countv in which the filing is made and the official
preparing y. Upon the filing of
the ballot title in that count
the petition on appeal, the court shall immediately, or at the
time to which a hearing may be adjourned by consent of the
appellants, examine the proposed measure, the ballot title
filed, and the objections to it and may hear arguments on it,
and shall as soon as possible render its decision and certify to
and file with the county auditor a ballot title that it
determines will meet the requirements of this chapter. The
decision of the superior court is final, and the ballot title or
statement so certified will be the established ballot title. The
appeal must be heard without cost to either party.
PART V
IMPLEMENTATION OF ACTIVITIES, PROGRAMS AND PROJECTS
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l ly1
NEW SECTION. Sec. 501. APPLICATION OF FUNDING. (1) To the
maximum extent practicable, watershed activities, programs and
projects funded in whole or in part by a district must be
undertaken by an activity, program or project sponsor. A
district may itself function as an activity, program or project
sponsor and undertake the watershed activity, program or project
if it determines that it is specially qualified to do so;
otherwise, the district may designate a public or private entity
to function as an activity, program or project sponsor, based on
criteria developed by the district.
(2) Upon completion, the owner of the activity, program or
project shall be the sponsor, unless the district in its
discretion determines that another public agency or non - profit
organization should be the owner.
(3) District funding decisions are not major actions
significantly affecting the quality of the environment subject
to review under RCW 43.21C.030(2)(c). Watershed activities,
programs, and projects funded by a district otherwise remain
subject to the other provisions of chapter 43.21C RCW.
NEW SECTION. Sec. 502. OVERSIGHT AND EVALUATION. (1) A
district shall monitor and evaluate the performance of activity,
program or project sponsors with which it has contracted to
undertake watershed activities, programs and projects. District
DRAFT 7/14/11 Page 31
funding contracts must allow for audits of activity, program, or
project sponsor performance and compliance with district
contract requirements.
New Section. Sec.503. Dissolution of District. A district
may be dissolved by the adoption of ordinances of all of the
participating counties which formed the district. Prior to the
effective date of its dissolution, the district's board shall
convey all real property interests and associated watershed
investment projects to the jurisdictions within which such
interests and projects are located, or if such jurisdiction is
unwilling to receive the interests or projects or the district
determines that another public agency or non - profit organization
should more appropriately own the interest or project, the
district may convey to such entity, provided, however, that such
real property interests and projects are to continue to be used,
operated, maintained and repaired consistent with the purposes
for which they were acquired by the district, and the receiving
entity shall agree to continue to use, operate, maintain and
repair such projects. Upon the pending dissolution of a
district, the board may distribute the personal property of the
district to the entities receiving the real property interests
and projects of the district, upon terms that the board
determines to be equitable and fair
DRAFT 7/14/11 Page 32
1,m, WId 16T) 0,((, iap 1 \,4( A uhai�
20,, 2011
PART VI
MISCELLANEOUS
Sec. 601. RCW 36.96.010 and 1999 c 153 s 50 are each
amended to read as follows: As used in this chapter, unless the
context requires otherwise: (1) "Special purpose district" means
every municipal and quasi - municipal corporation other than
counties, cities, and towns. Such special purpose districts
shall include, but are not limited to, water -sewer districts,
fire protection districts, port districts, public utility
districts, county park and recreation service areas, flood
control zone districts, diking districts, drainage improvement
districts, watershed investment districts, and solid waste
collection districts, but shall not include industrial
development districts created by port districts, and shall not
include local improvement districts, utility local improvement
districts, and road improvement districts;
(2) "Governing authority" means the commission, council, or
other body which directs the affairs of a special purpose
district;
(3) "Inactive" means that a special purpose district, other
than a public utility district, is characterized by either of
the following criteria: (a) Has not carried out any of the
special purposes or functions for which it was formed within the
DRAFT 7/14/11 Page 33
rl� t,d"Y 20, 2011
preceding consecutive five -year period; or (b) No election has
been held for the purpose of electing a member of the governing
body within the preceding consecutive seven -year period or, in
those instances where members of the governing body are
appointed and not elected, where no member of the governing body
has been appointed within the preceding seven -year period. A
public utility district is inactive when it is characterized by
both criteria (a) and (b) of this subsection.
NEW SECTION. Sec. 602. APPLICABILITY OF PUBLIC LAWS. A
watershed investment district, its officers, and the board of
directors, created under this act, are subject to the general
laws regulating local governments and local governmental
officials including, but not limited to, the requirement to be
audited by the state auditor and various accounting requirements
under chapter 43.09 RCW, the open public record requirements
under chapter 42.17 RCW, the prohibition on using its facilities
for campaign purposes under RCW 42.17.130, the open public
meetings law under chapter 42.30 RCW, the code of ethics for
municipal officers under chapter 42.23 RCW, and the local
government whistleblower law under chapter 42.41 RCW.
DRAFT 7/14/11 Page 34
1 �m� V VIL �m ova
NEW SECTION. Sec. 603. LEGAL CHALLENGES. Any legal
challenges as to the formation of a district must be filed
within thirty calendar days of the establishment of a district.
NEW SECTION. Sec. 604. Part headings and captions used in
this act are not any part of the law.
NEW SECTION. Sec. 605. SEVERABILITY. If any provision of
this act or its application to any person or circumstance is
held invalid, the remainder of the act or the application of the
provision to other persons or circumstances is not affected.
NEW SECTION. Sec. 606. LIBERAL CONSTRUCTION. The provisions
of this act shall be liberally construed to affect the policies
and purposes of this act.
NEW SECTION. Sec. 607. Sections 101 through 402, 501
through 503, and 602 through 606 of this act constitute a new
chapter in Title 90 RCW.
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