12-527. Annexation of lands located in water districts; title to facilities; compensation; bonded debt.
12-527
12-527. Annexation of lands located in water districts; title to
facilities; compensation; bonded debt.
(a) Whenever a city annexes land located within a rural water district
organized pursuant to the provisions of K.S.A. 82a-612 et seq., and
amendments thereto, the city shall negotiate with the district to acquire
title to all facilities owned by the water district and used for the
transportation or utilization of water distribution to the water district
benefit units within the area annexed by the city. Title shall vest in or
become the property of the city upon payment by the city to the water
district of the reasonable value of such property, as agreed upon by the
governing body of the city and the board of directors of the district. If
the district is unable to reach agreement with the city on the reasonable
value for such facilities, then the reasonable value shall be determined in
the following manner:
(1) The district and the city shall each select one qualified
appraiser and the two appraisers so selected shall then select a third
appraiser for the purpose of conducting appraisals so as to determine
reasonable value of the property, facilities and improvements of the
district annexed by the city.
(2) The agreement or decision of at least two of the three appraisers
shall be the fair market value presented to the city for payment and the
district for acceptance.
(3) If either the district or the city is dissatisfied with the
decision of the appraisers, then the district or the city may institute an
action in the district court to challenge the reasonableness of the value
determined by the appraisers.
(b) The compensation required by this section shall be paid to the
district whether or not the
city actually utilizes the facilities of the district for the delivery of
water to property within the city and shall be paid at a time not later
than 120 days following the date upon which the fair market value of the
facilities are certified to the city and to the district, or at such later
date as may be mutually agreed upon by the city and the water district or
as may be determined by the district court. The city, as part of its
service extension plan required under the provisions of K.S.A. 12-520b and
12-521c, and amendments thereto, shall notify each affected rural water
district of its future plans for the delivery of water in areas proposed
for annexation currently being served by the district.
(c) The governing body of the city and board of directors of the
district may provide, on such terms as may be agreed upon, that water
transmission facilities owned by the district and located within the city
may be retained by the district for the purpose of transporting water to
benefit units outside the city.
(d) Except for nonpayment of bills, the district shall not diminish
service to benefit units who were supplied water by the district at the
time of annexation during the period of negotiations conducted pursuant to this section.
(e) Nothing in this section shall be construed as limiting in any
manner the authority of a city to select water service suppliers to areas
within the city limits, or to limit in any manner the authority of a city
to adopt and enforce regulations for the operation of a water service
supplier, including but not limited to standards of water quality,
classification of water customers, capacity of water system, water system
connections to sanitary sewer systems, rates and billing practices and
other regulations for protection of the public health, safety and welfare.
History: L. 1968, ch. 80, § 1; L. 1986, ch. 71, § 1; L. 1987, ch. 67, § 1; May 21.