247.160. Mains and equipment conveyed to city, when--conditions.
Mains and equipment conveyed to city, when--conditions.
247.160. 1. Whenever all or any part of the territory of any publicwater supply district organized under sections 247.010 to 247.220 is or hasbeen included by annexation within the corporate limits of a municipality,the board of directors of any such district shall have the power tocontract with such municipality for operating the waterworks system withinsuch annexed area, or the board of directors may, subject to the provisionsof this section and section 247.170, lease, contract to sell, sell orconvey any or all of its water mains, plant or equipment located withinsuch annexed area to such municipality and such contract shall also providefor the detachment and exclusion from such public water supply district ofthat part thereof located within the corporate limits of such city;provided, that in case of sale or conveyance, all bonds of the district,whether general obligation bonds constituting a lien on the propertylocated within the district, or special obligation or revenue bondsconstituting a lien on the income and revenues arising from the operationof the water system:
(1) Are paid in full, or
(2) A sum sufficient to pay all of such bonds together with interestaccrued or to accrue thereon, together with other items of expense providedin such bonds, is deposited with the fiscal agent named in the bonds forthe purpose of full payment, or
(3) Such city has entered into a firm commitment to pay in lump sumor installments not less than that proportion of the sum of all existingliquidated obligations and of all unpaid revenue bonds, with interestthereon to date, of such public water supply district, as the assessedvaluation of the real and tangible personal property within the areaannexed bears to the assessed valuation of all the real and tangiblepersonal property within the entire area of such district, according to theofficial county assessment of such property as to December thirty-first ofthe calendar year next preceding, or
(4) Consent in writing is obtained from the holders of all suchbonds.
2. In any such case in which the board of directors by agreementleases, contracts to sell, sells or conveys the property of the districtwithin the annexed area to such a municipality, an application shall bemade by one of the contracting parties to the circuit court originallyincorporating such district, which application shall set forth adescription of the annexed area, that part thereof sought to be detachedand excluded, a copy of the agreement entered into by the parties, thefacts concerning bondholders and their rights, and requesting an order ofthe court approving or disapproving such contract.
3. Upon the filing of such application, the court shall set a timefor the hearing thereof and shall order a public notice setting forth thenature of the application, the annexed area affected and sought to bedetached and excluded, a description of the property within the annexedarea leased, contracted to be sold, sold or conveyed, and the time andplace of such hearing, to be published for three weeks consecutively, in anewspaper published in the county in which the application is pending, thelast publication to be not more than seven days before the date set forhearing.
4. If the court finds that the agreement protects the bondholders'rights and provides for the rendering of necessary water service in theterritory embracing the district, then such agreement shall be fullyeffective upon approval by the court. Such decree shall also thereuponvest in said city the absolute title, free and clear of all liens orencumbrances of every kind and character, to all tangible real and personalproperty of such public water supply district located within the part ofsuch district situated within the corporate limits of such city, with fullpower in such city to use and dispose of such tangible real and personalproperty as it deems best in the public interest. In the event thatterritory is detached and excluded from the district, the court shallinclude in its decree a description of the district after such detachment.If a detachment of territory is made, the court shall also make any changesin subdistrict boundary lines the court deems necessary to meet therequirements of sections 247.010 to 247.227. No subdistrict changes shallbecome effective until the next annual election of the board of directors.
5. In the event that territory is detached and excluded from thedistrict, a certified copy of the court's order shall be filed by thecircuit clerk in the office of the recorder of deeds, in the office of thecounty clerk in each county in which any of the territory of the districtbefore the detachment is located, and in the office of the secretary ofstate. Costs of the proceeding shall be borne by the petitioner orpetitioners.
(L. 1949 p. 255 § 12637.1, A.L. 2008 S.B. 956)