Bill Summary for H 392 (2015-2016)

Summary date: 

Jun 23 2016

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

Senate committee substitute makes the following changes to the 3rd edition. 

Amends proposed Chapter VIA of the Fayetteville City Charter, concerning the Public Works Commission (Commission), providing that the Commission will have four members, with a new appointment being made in September 2016 (previously, membership of Commission was going to increase to five on October 1, 2016, with a new appointment being made in September of 2015). 

Clarifies that no member of the Commission can serve for more than two consecutive terms (previously, allowed the city council to increase consecutive terms allowed by a two-thirds vote). Amends provisions concerning the powers and duties of the Commission, clarifying that the Commission is a public authority as defined in GS 159-7(b)(10), or as provided in other State statutes, except as provided for in the Charter or any Financing Documents (previously, provided the Commission was a separate and independent public authority and required the provisions of the Charter to be liberally construed to accomplish that intent and purpose). Adds additional powers and duties for the Commission, providing that the Commission is authorized to sue and be sued in its own name, as well as authorized to plead and be impleaded. Adds additional provisions concerning financial authority providing that the Commission does not have authority, without prior approval of the City Council, to expend funds or offer any kind of financial incentives for purposes not directly related to the Commission's powers and duties. 

Makes clarifying changes to provisions concerning property providing that title to all real property, fixtures, and appurtenances under the management of the Commission is in the name of the City with all title to personal property utilized by the Commission in discharge of its duties to be in the name of the Commission (previously only referred to plants, property, and equipment and not real property or personal property). 

Amends provisions concerning remittances, first providing that the included processes and procedures for remittances are effective beginning July 1, 2016 (was, July 1, 2015). Then amends percentage amounts, requiring each month a remittance to the City of Fayetteville equal to 1/12 of an annual amount equal to 2.45% of the Total Net Position of the Electric Fund as reported and specified for each immediately preceding fiscal year ending June 30 (previously, 5% of the gross retail sales, less any taxes, of all utility services, except water and sewer services, provided to residential, commercial, and industrial customers of the Commission).

Adds language requiring the Commission's auditor to also report to the Commission in addition to the City Council.

Amends and expands provisions on Commission contracts, now requiring a majority vote of the City Council to approve contracts that expend funds in the amounts as specified (previously, contracts could be approved by at least three members of the Commission). Allows the Commission to approve contracts below the threshold amounts under GS 143-129 by approval of three members of the Commission. Also specifies that the Commission can enter into contracts not requiring City Council approval in the name of the Public Works Commission of the City of Fayetteville. However, contracts needing City Council approval or any contract involving the acquisition, titling, or conveyance of any interest in real property managed by the Commission must be entered into in the name of the City of Fayetteville. 

Deletes provisions from previous edition that specified that the current members of the City's Public Works Commission could continue to serve until their successors are appointed. 

Specifies that if any differences arise between Section 6A.16 of the Charter and the written agreement between the City of Fayetteville and the Commission, then Section 6A.16 of the Charter controls.

Makes conforming and technical changes.

Amends the effective date, now providing that the act is effective July 1, 2016 (was, July 1, 2015).

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