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Political Subdivisions Interim Committee

MINUTES OF THE

POLITICAL SUBDIVISIONS INTERIM COMMITTEE

Wednesday, November 19, 1997 - 9:00 a.m. - Room 414 State Capitol



Members Present:
    Sen. R. Mont Evans, Senate Chair
    Rep. David Ure, House Chair
    Sen. Leonard M. Blackham
    Rep. Brian R. Allen
    Rep. John B. Arrington
    Rep. DeMar "Bud" Bowman
    Rep. Craig W. Buttars
    Rep. Blake D. Chard
    Rep. Greg J. Curtis
    Rep. Marda Dillree
    Rep. David L. Gladwell
    Rep. James R. Gowans
    Rep. John E. Swallow
    Rep. Richard L. Walsh


Members Excused:
    Sen. George Mantes

Staff Present:
    Mr. Joseph Wade,
        Research Analyst
    Mr. Robert H. Rees,
        Associate General Counsel
    Ms. Joy L. Miller,
        Secretary


     Note:    A list of others present and a copy of materials distributed in the meeting are on file in the Office of Legislative Research and General Counsel.


1.    Call to Order and Committee Business - Chairman Ure called the meeting to order at 9:20 a.m.

2.    Follow up - Jurisdictional Transfer of Roads - In the October meeting, the committee requested that UDOT, the Highway Transfer Task Force, and representatives of local government delineate agreed upon terms to be included in draft legislation that would: 1) transfer roads; and 2) modify the percentage of funds going to the B & C Road Fund from 25% to some higher percentage. After determining the specific terms, draft legislation would be prepared for the November meeting.

    Mr. John Quick, Utah Department of Transportation, briefly reviewed the background of jurisdictional transfers. Mr. Tom Warne, Utah Department of Transportation, indicated it makes sense to consider all roads in the state and make sure the right jurisdiction has responsibility for the road. The theory is simple, however, the application is difficult. He said in no case should a local community receive the jurisdiction for a highway without being given the appropriate resources to deal with it. Nor should the state be asked to give up a highway and give more than the resources that are equivalent to the road. Mr. Warne distributed a summary of proposed state and local highway jurisdiction and funding. The state has no intention of forcing roads on communities. Mr. Warne said UDOT feels they could dedicate a portion of the maintenance

monies appropriated to them by the Legislature each year to set up the fund to help the local communities that receive the roads. The diversion on November 10 to the B & C Road Fund adds a significant complication to the issue. He said he believed it would be premature to move forward with legislation at this time.

    Mr. Dave Spatafore, Utah League of Cities and Towns, explained that municipal and county members met together to develop what was determined to be a fair financial resolution to the issue if the transfer were to occur. He said the counties have endorsed the legislation. The cities have decided to take another month to review it. He recommended that a letter from UDOT be sent to every municipality and county in the state indicating its position.

    Mr. Warne indicated he would be willing to send a letter stating UDOT's position.

     MOTION: Rep. Dillree moved to go to the next item on the agenda. The motion passed unanimously.

3.    Draft Legislation Regarding Optional Forms of County Government - Sen. Evans explained that one bill was initially presented to the committee last month. A decision was made to divide the issue into two pieces of legislation. The committee had also requested input from the Utah Association of Counties. The association met last week and voted to postpone both items for one year and asked that the Legislature continue to study the issue. He recommended the committee not take any action at this time.

4.    Special Districts Subcommittee Report - Mr. Rees discussed proposed legislation "Special District Elections." He stated this is an updated version which changes the election date for special districts from the current municipal election year on the odd-numbered year to the general election year on the even-numbered year.

    Rep. Dillree pointed out that there is some opposition by those who help with the elections who feel the legislation will be complicated. She said the subcommittee felt confident that with new technologies and given the time being placed on the process, election problems at the polling places can be rectified prior to the legislation taking effect.

    Mr. Mark Anderson, Utah Association of Special Districts, indicated at their annual convention the largest area of concern was with the requirement that special district elections take place at the same polling places as regular general elections. If technology does not catch up or if the counties are either unable or unwilling to conduct special district elections along with theirs, it will be necessary for them to have their own separate polling place at the location and their own election judges. The fiscal note would be extremely large if that is the case. It has also been expressed that special service districts may get lost in the shuffle during a general election.

Mr. Anderson also indicated his concern with the changes being proposed to terms of members serving on special district boards. There has been an effort to stagger terms in the past.

     MOTION: Sen. Evans moved to approve the concept of proposed legislation "Special District Elections." He noted that there may have to be some modifications to the bill. The motion passed with Rep. Chard voting in opposition. Rep. Arrington was absent during the vote.
5.    Municipal Withdrawal from Water District - Rep. Allen distributed a summary of the process of withdrawal of city territory from water improvement districts. He also briefly reviewed proposed legislation, "Amendments to County Improvement Districts For Water Services."

     MOTION: Sen. Evans moved to amend the legislation as follows:

    Page 6, Line 12:    After "approved by" insert "a majority vote of" and after "withdrawn" insert "and voting"

The motion passed unanimously.

    Rep. Allen said the legislation provides that if the process is attempted and the voters reject it, it can't be redone for at least five years. Consultants will be required to have the expertise necessary to make the determinations required by law. There is also a provision on how the assets are allocated if the withdrawal is approved. If an asset is deemed not to be divisible, it is allocated to the district. Rep. Allen said the legislation is designed to deal only with areas that fall within municipal boundaries.

    Rep. Gladwell stated in many areas there are certain professionals that have reached a level of expertise and are trusted by both entities. He asked if the option was available for the two entities to mutually decide on an individual.

    Rep. Allen said he would support that option.

    Rep. Gladwell indicated he would work on language to propose as an amendment during the general session.

    Mr. Paul Ashton, White City Water Improvement District, distributed a map of the improvement district. He said they believe the legislation is premature since the committee is in the beginning process of a major recodification of the Special District Act. If there is going to be an election it should involve everyone within the district. Mr. Ashton said they believe that water rights should not be included in asset division. He also indicated that a provision should

be included which allows for a feasibility study similar to the provisions set forth in the municipal code.

    Mr. Mark Wangsgard, attorney, said the problem currently being experienced was created by an amendment in 1951 to the Improvement District Act. The act as originally drafted did not allow an overlap in the cities. The amendment allowed districts to go into cities but did not provide safeguards for a situation where a city wanted and could provide the service. He urged the committee to take immediate action.

    Mr. Merrill Scott, Willow Canyon Area, asked the committee not to pass the bill and requested a viability study be done to determine the economic impact on the district should such a bill be passed into law.

    Mr. Jan Furner, Utah Association of Special Districts, stated the entire district that will be impacted one way or another should have the opportunity to vote on the withdrawal. He suggested another safeguard would be to have a county clerk supervise the election.

     MOTION: Sen. Evans moved to pass the legislation out favorably as amended. The motion passed unanimously. Rep. Dillree was absent during the vote.

    The committee returned to discussion of special districts legislation. Mr. Rees discussed proposed legislation, "Special District Amendments." He explained the legislation repeals all of the community redevelopment agency provisions of the code. The bill also sunsets the creation of future regional service areas.

     MOTION:  Rep. Arrington moved to pass the bill out favorably. The motion passed unanimously.

    Mr. Rees reviewed proposed legislation, "Recodification of Special Districts." Mosquito Abatement has been added as one of the services that can be provided. The Constitutional Revision Commission made some recommendations that would have to be reflected in the legislation. The concept of the bill allows the creation of a special district by a two-step process. He reviewed that process with the committee.

     MOTION: Rep. Gowans moved to amend the bill as follows:

    Page 4, Line 6:     After line 6 insert:
                "(5) A service district may not be created in an area where two or more service districts already exist, regardless of the services provided by the existing districts or the services proposed to be

provided by the proposed service district."

The motion failed with Reps. Gowans and Ure voting in favor.

     MOTION: Sen. Evans moved to pass the bill out favorably. The motion passed with Reps. Allen and Curtis voting in opposition.

6.    Task Force Report - Regulatory Barriers to Affordable Housing - Rep. Bigelow stated the task force reviewed many aspects of regulations and programs in place to assist people to get into affordable housing. They adopted a resolution supporting the Uniform Building Code Commission recommendation that the International Plumbing Code be adopted rather than the Uniform Plumbing Code. The task force also adopted resolutions for supporting: 1) resources for affordable housing; 2) affordable housing through the olympic housing program; and 3) reaching the ultimate goal of $100 million in the Olene Walker Trust Fund. Legislation entitled "Affordable Housing Amendments" will be introduced during the next general session. It proposes to impose an annual review and report requirement on counties, cities, and towns regarding their plan for moderate income housing.

    Sen. Evans referred the committee to proposed legislation "Amendments to Special Districts." The bill requires that a hearing be held prior to a fee being imposed. Newly created special districts are to notify the state auditor. The state auditor is to keep a list of special districts. Sen. Evans stated the bill requires special districts to deliver proof of liability insurance.

    Due to a lack of a quorum in the Senate the remainder of the motions are House motions only.

     HOUSE MOTION: Rep. Dillree moved to draft a letter from the committee chairs to the Legislative Management Committee requesting that the Special Districts Subcommittee be continued next interim. The motion passed unanimously.

     HOUSE MOTION: Rep. Gladwell moved to approve the minutes of October 22, 1997. The motion passed unanimously.

     HOUSE MOTION: Rep. Dillree moved to recommend with proposed legislation, "Amendments to Special Districts."

     HOUSE SUBSTITUTE MOTION: Rep. Swallow moved to amend the bill as follows and to recommend the bill as a committee bill:

    Page 1, Line 30:    After "days" delete "from" and insert "after"
The motion passed unanimously.

7.    Adjourn

     HOUSE MOTION: Rep. Arrington moved to adjourn the meeting. The motion passed unanimously. At 12:10 p.m. Rep. Ure adjourned the meeting.


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