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SEC. 49-38.   RIGHTS AS TO CERTAIN FACILITIES OUTSIDE OF THE CITY; RIGHTS UPON ANNEXATION.
   (a)   Agreements as to facilities. The director may negotiate agreements with governmental entities defining ownership and maintenance responsibilities of facilities used or installed for service outside the city.
   (b)   Assumption of service. Where a governmental entity agrees to assume primary service responsibility over an area previously served by the city, because of annexation or other reasons, facilities installed will, upon agreed payment, become the property of the governmental entity, except for:
      (1)   a meter or other appurtenance belonging to and installed by the city to connect service; or
      (2)   a facility designated by agreement to be the property of the city.
   (c)   City’s rights upon annexation. The following rules apply regarding mains, appurtenances and other facilities located within property annexed by the city:
      (1)   Facilities within annexed property immediately become property of the city.
      (2)   The city will assume those benefits and obligations required to be assumed under state law, but otherwise must take the facilities free from all liens or encumbrances.
      (3)   The city may enforce its right to possession of annexed facilities by an action filed in a state court of competent jurisdiction.
   (d)   Private facilities. Private laterals or building water lines connected to facilities affected under this section remain, to the extent they are not located within public property, the property of the person owning the premises within which the laterals or water lines are located. (Ord. 19201)