19-3517.   Procedure for purchase or acquisition ofexisting water supply and distribution system; assumption ofindebtedness.In any water district so created and established as provided for in thisact, the water district board may by resolution, declare it necessaryfor the benefit and interest of the water district to negotiate apurchase or otherwise acquire, control and operate such water supply anddistribution system.

      Upon the passage of such resolution, a certified copy shall be filedwith the county clerk of the county in which a greatest portion of suchwater district is situated with a certificate of service stating that acopy of such resolution has been served on the secretary of thecorporation owning such water supply and distribution system serving thewater district, following which the water district board and the ownerof the water supply [and] distribution system may negotiate a writtenagreement providing and setting forth terms, conditions and arrangementsmutually agreeable to the water district board and the owner of saidwater supply and distribution system pursuant to which the waterdistrict may purchase and acquire the existing water supply anddistribution system: Provided, That such purchase and acquisitionshall not be made until and unless the question of making such purchaseand acquisition shall have been submitted to a vote of the legalelectors residing in the water district at a special election and amajority of those voting on the question shall have declared by theirvotes to be in favor of such purchase and acquisition; and such electionshall be called, noticed, held and canvassed in like manner as provided inK.S.A. 19-3507 and 19-3508 for elections to issue revenue bonds for suchwater district except as herein otherwise provided; and that at any suchelection the question of the issuance of revenue bonds may also besubmitted but such question, if so submitted, shall be submitted and votedon as a separate proposition. A copy of such negotiated agreement shall bepublished as a part of the notice of the special election at which thequestion of the purchase and acquisition of the existing watersupply and distribution system pursuant thereto is to be voted upon. Theproposition shall be stated on the ballot and submitted to the qualifiedelectors in substantially the following form:

Water district No. __________ of ______________ county, shall beauthorized to acquire by purchase, in accordance with the terms of thenegotiated agreement published in connection with the notice of thiselection, the water supply and distribution system of

at an estimated aggregate cost to the water district of ____________dollars.

If the proposition to purchase and acquire said water supply anddistribution system in accordance with the negotiated agreement is notapproved by a majority of the votes cast at the special election whensuch question is submitted to a vote of the electors or, if the waterdistrict board is unable to negotiate an agreement to purchase andacquire the existing water supply and distribution system which isagreeable to said board, a written petition shall be presented by thewater district board to the district court of the county in which thegreatest portion of such water district is located, which shall setforth the action of said water district board relative thereto, and theresolution so adopted by the water district board and shall contain aprayer for the appointment of appraisers if necessary to ascertain anddetermine the value of such water supply and distribution system.Thereupon a time and place shall be fixed by the court for the hearingthereof, notice of which shall be given by the clerk of the court atleast ten (10) days prior thereto, in writing to the person,partnership, company or corporation owning said water supply anddistribution system and to all persons of record having or claimingliens on such property and by causing a notice thereof to be publishedonce a week for three (3) consecutive weeks in a newspaper of generalcirculation in the county in which the water district is located, thelast publication to be not less than three (3) nor more than ten (10)days prior to such hearing.

      At said hearing, the court or the judge thereof, in which saidpetition is filed, shall examine said petition and determine whether thepetitioner has the power of eminent domain, and if found in theaffirmative, such finding shall be entered in the record and the courtor judge thereof shall thereupon make an order granting such petition.The court or judge thereof shall thereupon appoint three (3) appraisers,one (1) of whom shall be a licensed hydraulic engineer. The three (3)appraisers shall take an oath to faithfully, honestly and to the best oftheir skill and ability, appraise and ascertain the fair cash value ofsaid water supply and distribution system and all appurtenancesthereunto belonging or in any way appertaining. The said appraisersshall carefully examine said water supply and distribution system andmay examine experts and persons familiar with the cost of constructionand reproduction of such plant, and may resort to any other means bywhich they may arrive at the value thereof, and at a hearing the timeand place of which shall be fixed by majority vote of the three (3)appraisers, who shall give written notice of such hearing to the waterdistrict board and to the person, partnership, company or corporationowning such water supply and distribution system and the water districtboard and the person, partnership, company or corporation owning suchwater supply and distribution system or either of them may produce suchtestimony before said appraisers as in their judgment seems material,necessary and desirable: Provided, That said appraisers may bymajority vote terminate any such hearing of testimony. Said appraisersshall make their report in writing under oath and file the same with theclerk of the district court. Thereupon at a time and place to be fixedby the court, a hearing shall be had upon said report and the exceptionsthereto. The clerk of the court shall give written notice of saidhearing to the water district board and to the person, partnership,company or corporation owning any such water supply and distributionsystem. All exceptions to the appraisers' report must be in writing andfiled with the clerk of the district court ten (10) days prior to thetime fixed for the hearing of same. Thereupon the court shall confirm,reject or modify said report and its decision shall be a final orderfrom which an appeal may be taken to the supreme court. If the waterdistrict board elects to pay the award of said appraisers as approved bythe district court, it may do so at any time within six (6) months, fromthe date of the final order of the district court on the appraisers'report, if no appeal to the supreme court is taken, or from the date offinal judgment in case an appeal is thereafter determined, by paying theamount of the award to the clerk of the court and thereupon the titleand right of possession of such water supply and distribution system andappurtenances thereto belonging or in any way appertaining shall vestabsolutely in the water district and said water district shall beentitled to immediate possession thereof and all remedies provided bylaw for the security of such title and possession.

      When and if the purchase money is paid into the court for such watersupply and distribution system it shall be paid out only upon the orderof the court. If there are any liens or encumbrances upon such plant,the nature and extent thereof shall be ascertained by the court afterfixing a time for the hearing, of which all parties in interest shallhave sufficient notice. The ascertained liens and encumbrances shallfirst be paid out of the said fund and the balance to the person,partnership, company or corporation owning such plant. If the waterdistrict board shall not within six (6) months comply with all of theterms of the final order of the district court or appeal therefrom,judgment for the cost of such proceedings, including appraisers' fees,which the court shall have power to fix, shall be entered against saidwater district. No condemnation proceedings instituted under theprovisions of this act for the acquisition of an existing water supplyand distribution system shall be maintained unless all of the real andpersonal property of such existing water supply and distribution systemis included therein. If the water district board acquires the propertiesof a privately owned water district and supply system for and in thename of the water district by purchase, pursuant to a negotiatedagreement, or otherwise it may assume in behalf of the district anyoutstanding indebtedness secured by a lien against said properties.

      History:   L. 1951, ch. 240, § 17; L. 1953, ch. 159, § 4; L. 1955, ch. 170, §2; L. 1957, ch. 192, § 11; April 17.