12-527.   Annexation of lands located in water districts; title tofacilities; compensation; bonded debt.(a) Whenever a city annexes land located within a rural water districtorganized pursuant to the provisions of K.S.A. 82a-612 et seq., andamendments thereto, the city shall negotiate with the district to acquiretitle to all facilities owned by the water district and used for thetransportation or utilization of water distribution to the water districtbenefit units within the area annexed by the city. Title shall vest in orbecome the property of the city upon payment by the city to the waterdistrict of the reasonable value of such property, as agreed upon by thegoverning body of the city and the board of directors of the district. Ifthe district is unable to reach agreement with the city on the reasonablevalue for such facilities, then the reasonable value shall be determined inthe following manner:

      (1)   The district and the city shall each select one qualifiedappraiser and the two appraisers so selected shall then select a thirdappraiser for the purpose of conducting appraisals so as to determinereasonable value of the property, facilities and improvements of thedistrict annexed by the city.

      (2)   The agreement or decision of at least two of the three appraisersshall be the fair market value presented to the city for payment and thedistrict for acceptance.

      (3)   If either the district or the city is dissatisfied with thedecision of the appraisers, then the district or the city may institute anaction in the district court to challenge the reasonableness of the valuedetermined by the appraisers.

      (b)   The compensation required by this section shall be paid to thedistrict whether or not thecity actually utilizes the facilities of the district for the delivery ofwater to property within the city and shall be paid at a time not laterthan 120 days following the date upon which the fair market value of thefacilities are certified to the city and to the district, or at such laterdate as may be mutually agreed upon by the city and the water district oras may be determined by the district court. The city, as part of itsservice extension plan required under the provisions of K.S.A. 12-520b and12-521c, and amendments thereto, shall notify each affected rural waterdistrict of its future plans for the delivery of water in areas proposedfor annexation currently being served by the district.

      (c)   The governing body of the city and board of directors of thedistrict may provide, on such terms as may be agreed upon, that watertransmission facilities owned by the district and located within the citymay be retained by the district for the purpose of transporting water tobenefit units outside the city.

      (d)   Except for nonpayment of bills, the district shall not diminishservice to benefit units who were supplied water by the district at thetime of annexation during the period of negotiations conducted pursuant to this section.

      (e)   Nothing in this section shall be construed as limiting in anymanner the authority of a city to select water service suppliers to areaswithin the city limits, or to limit in any manner the authority of a cityto adopt and enforce regulations for the operation of a water servicesupplier, including but not limited to standards of water quality,classification of water customers, capacity of water system, water systemconnections to sanitary sewer systems, rates and billing practices andother 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.