247.165. Water service to annexed territory, agreement may be developed, procedure.
Water service to annexed territory, agreement may be developed,procedure.
247.165. 1. Whenever all or any part of a territory located within apublic water supply district organized pursuant to sections 247.010 to247.220 is included by annexation within the corporate limits of amunicipality, but is not receiving water service from such district or suchmunicipality at the time of such annexation, the municipality and the boardof directors of the district may, within six months after such annexationbecomes effective, develop an agreement to provide water service to theannexed territory. Such an agreement may also be developed within sixmonths after August 28, 2001, for territory that was annexed betweenJanuary 1, 1996, and August 28, 2001, but was not receiving water servicefrom such district or such municipality on August 28, 2001, except thatsuch territory annexed in a county of the first classification without acharter form of government and with a population of more than sixty-threethousand eight hundred but less than seventy thousand inhabitants must havebeen annexed between January 1, 1999, and August 28, 2001. For thepurposes of this section, "not receiving water service" shall mean that nowater is being sold within the annexed territory by such district ormunicipality. If the municipality and district reach an agreement thatdetaches any territory from such district, the agreement shall be submittedto the circuit court originally incorporating such district, and the courtshall make an order and judgment detaching the territory described in theagreement from the remainder of the district and stating the boundary linesof the district after such detachment. The court shall also make anychanges in subdistrict boundary lines it deems necessary to meet therequirements of sections 247.110 to 247.227. Such subdistrict lines shallnot become effective until the next election after the effective date ofthe agreement. At such time that the court's order and judgment becomesfinal, the clerk of the circuit court shall file certified copies of suchorder and judgment with the secretary of state and with the recorder ofdeeds and the county clerk of the county or counties in which the districtis located. If an agreement is developed between a municipality and awater district pursuant to this subsection, subsections 2 to 8 of thissection shall not apply to such agreement.
2. In any case in which the board of directors of such district andsuch municipality cannot reach such an agreement, an application may bemade by the district or the municipality to the circuit court originallyincorporating such district, requesting that three commissioners developsuch an agreement. Such application shall include the name of onecommissioner appointed by the applying party. The second party shallappoint one commissioner within thirty days of the service of theapplication upon the second party. If the second party fails to appoint acommissioner within such time period, the court shall appoint acommissioner on behalf of the second party. Such two named commissionersmay agree to appoint a third disinterested commissioner within thirty daysafter the appointment of the second commissioner. In any case in whichsuch two commissioners cannot agree on or fail to make the appointment ofthe third disinterested commissioner within thirty days after theappointment of the second commissioner, the court shall appoint the thirddisinterested commissioner.
3. Upon the filing of such application and the appointment of threesuch commissioners, the court shall set a time for one or more hearings andshall order a public notice including the nature of the application, theannexed area affected, the names of the commissioners, and the time andplace of such hearings, 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 for thefirst hearing.
4. The commissioners shall develop an agreement between the districtand the municipality to provide water service to the annexed territory. Indeveloping the agreement, the commissioners shall consider informationpresented to them at hearings and any other information at their disposalincluding, but not limited to:
(1) The estimated future loss of revenue and costs for the waterdistrict related to the agreement;
(2) The amount of indebtedness of the water district within theannexed territory;
(3) Any contractual obligations of the water district within theannexed area; and
(4) The effect of the agreement on the water rates of the district.
Such agreement shall also include a recommendation for the apportionment ofcourt costs, including reasonable compensation for the commissioners,between the municipality and the water district.
5. If the court finds that the agreement provides for necessary waterservice in the annexed territory, then such agreement shall be fullyeffective upon approval by the court. The court shall also review therecommended apportionment of court costs and the reasonable compensationfor the commissioners and affirm or modify such recommendations.
6. The order and judgment of the court shall be subject to appeal asprovided by law.
7. If the court approves a detachment as part of the territorialagreement, it shall make its order and judgment detaching the territorydescribed in the petition from the remainder of the district and statingthe boundary lines of the district after such detachment. The court shallalso make any changes in subdistrict boundary lines it deems necessary tomeet the requirements of sections 247.110 to 247.227. Any subdistrictlines shall not become effective until the next annual regular election.
8. At such time that the court's order and judgment becomes final,the clerk of the circuit court shall file certified copies of such orderand judgment with the secretary of state and with the recorder of deeds andthe county clerk of the county or counties in which the district islocated.
(L. 2001 S.B. 267)