COMMITTEE SUBSTITUTE
FOR
H. B. 3068
(By Delegates Staton, R. Thompson and Perdue)
(Originating in the Committee on Political Subdivisions)
[February 26, 2003]
A BILL to amend and reenact section twenty-five, article
thirteen-a, chapter sixteen of the code of West Virginia, one
thousand nine hundred thirty-one, as amended, relating to
contracts for the provision of engineering, design or
feasibility studies by public service districts.
Be it enacted by the Legislature of West Virginia:
That section twenty-five, article thirteen-a, chapter sixteen
of the code of West Virginia, one thousand nine hundred thirty-one,
as amended, be amended and reenacted to read as follows:
ARTICLE 13A. PUBLIC SERVICE DISTRICTS FOR WATER SEWERAGE AND GAS
SERVICES.
§16-13A-25. Borrowing and bond issuance; procedure.
(a) Notwithstanding any other provisions of this article to
the contrary, a public service district shall may not borrow money,
enter into contracts for the provision of engineering, design or feasibility studies, issue or contract to issue revenue bonds or
exercise any of the powers conferred by the provisions of section
thirteen, twenty or twenty-four of this article, without the prior
consent and approval of the public service commission.
(b) The public service commission may waive the provision of
prior consent and approval for entering into contracts for
engineering, design or feasibility studies pursuant to this section
for good cause shown which is evidenced by the public service
district filing a request for waiver of this section stated in a
letter directed to the commission with a brief description of the
project, evidence of compliance a verified statement by the board
members that the public service district has complied with chapter
five-g of this code, and further explanation of ability to evaluate
their own engineering contract, including, but not limited to: (1)
Experience with the same engineering firm in the past two years
requiring engineering services; or (2) completion of a construction
project within the past two years requiring engineering services.
The district shall also forward an executed copy of the engineering
contract to the commission after receiving approval of the waiver.
(c) An engineering contract that meets one or more of the
following criteria is exempt from the waiver or approval
requirements:
(1) A contract with a public service district that is a Class
A utility on the first day of April, two thousand three, or subsequently becomes a Class A utility as defined by commission
rule;
(2) A contract with a public service district that does not
require borrowing and that can be paid out of existing rates;
(3) A contract where the payment of engineering fees are
contingent upon the receipt of funding, and commission approval of
the funding, to construct the project which is the subject of the
contract; or
(4) A contract that does not exceed fifteen thousand dollars.
(d) Requests for approval or waivers of engineering contracts
shall be deemed granted thirty days after the filing date unless
the staff of the public service commission or a party files an
objection to the request. If an objection is filed, the public
service commission shall issue its decision within one hundred
twenty days of the filing date. In the event objection is received
to a request for a waiver, the application shall be considered a
request for waiver as well as a request for approval in the event
a waiver is not appropriate.
(e) Unless the properties to be constructed or acquired
represent ordinary extensions or repairs of existing systems in the
usual course of business, a public service district must first
obtain a certificate of public convenience and necessity from the
public service commission in accordance with the provisions of
chapter twenty-four of this code, when a public service district is seeking to acquire or construct public service property.
Thirty days prior to making formal application for the
certificate, the public service district shall prefile with the
public service commission its plans and supporting information for
the project in a manner prescribed by public service commission
rules and regulations. and shall publish a Class II legal
advertisement in a newspaper or newspapers of general circulation
in each city, incorporated town or municipal corporation if
available in the public service district, which legal advertisement
shall state:
(a)The amount of money to be borrowed, or the amount of
revenue bonds to be issued: Provided, That if the amount is in
estimate, the notice may be stated in terms of an amount "not to
exceed" a specific amount;
(b)The interest rate and terms of the loan or bonds:
Provided, That if the interest rate is an estimate, the notice may
be stated in terms of a rate "not to exceed" a specific rate;
(c)The public service properties to be acquired or
constructed, and the cost of the public service properties;
(d)The anticipated rates which will be charged by the public
service district: Provided, That if the rates are an estimate, the
notice may be stated in terms of rates "not to exceed" a specific
rate; and
(e)The date that the formal application for a certificate of public convenience and necessity is to be filed with the public
service commission. The public service commission may grant its
consent and approval for the certificate, or any other request for
approval under this section, subject to such terms and conditions
as may be necessary for the protection of the public interest,
pursuant to the provisions of chapter twenty-four of this code, or
may withhold such consent and approval for the protection of the
public interest.
In the event of disapproval, the reasons for the disapproval
shall be assigned in writing by the commission.