Bill Summary for H 392 (2015-2016)

Summary date: 

Apr 16 2015

Bill Information:

View NCGA Bill Details2015-2016 Session
House Bill 392 (Local) Filed Monday, March 30, 2015
Intro. by Szoka, Floyd, Glazier, Lucas.

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Bill summary

House committee substitute makes the following changes to the 1st edition.

Amends proposed Chapter VIA, Public Works Commission (Commission), of the City of Fayetteville Charter, adding additional language concerning the membership of the Commission, providing that if a member is determined to no longer be a resident of the City, that member's seat immediately becomes vacant, with a successor to be appointed as specified. Makes a technical correction. Makes conforming changes to the provisions concerning the reasons that a member can be removed from office by a two-thirds vote for neglect of duties. Also provides that a member can be removed for neglecting to perform duties required by any existing or future Bond Order or other financing instrument providing for debt of the City payable from revenues of the utility system managed by the Commission.

Amends the power and duties provisions, replacing language that the Commission is a unit of government with language that clarifies that it is public authority within the meaning of GS 159-7(b)(10). Adds additional clarifying language that provides that the Commission is subject to any direction and control as provided for in any Financing Documents. Makes clarifying changes. Provides that the Commission has authority to make contracts that can include agreements for the bulk sale or purchase of power, water, or capacity. 

Makes multiple clarifying changes to various provisions, providing that the Commission's budget does not have to be approved by the City Council. Requires compliance with provisions in any financial documents in regards to authority over property and concerning cash reserves. Provides for the Commission to remit to the City 1/12 of an annual amount equal to 5.20% of the gross retail metered sales, less any taxes, of services as specified (previously required monthly remittances of 5% of gross retail sales).

Adds language concerning the issuance of revenue bonds, providing that the City Council must approve by majority vote the incurring of debt or other financing of the utilities that involves pledging or securing of revenues or other assets. Makes clarifying and conforming changes. 

Provides that the Commission can financially support local initiatives which can enhance or support the provision or growth of utility services if approved by at least three Commission members. 

Amends provisions concerning special assessments providing that the City Council can, by a 2/3 vote, impose a special assessment for purposes related to providing utility services against benefitted property with a requirement that the terms and amount be agreed upon by the City Council and the Commission (previously, stated the City had the sole authority to make special assessments). 

Adds that this Charter does not purport to include all of the acts necessary to carry on all the duties and privileges as specified, so it is to be supplemented by general law, with the Charter controlling in instances of conflict. Also states that nothing contained in these provisions is meant to contravene any provision of any financing documents and sets out provisions to ensure compliance with such financing documents. 

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