(A) Request for rural water system within three miles of municipality. If a rural water system is requested after July 1, 1989 to provide water service to any person who resides within three miles of a municipality owning and operating a water supply system, the rural water system shall promptly notify such municipality of such request in writing. Within 60 days from the receipt of such notice, the municipality may elect to provide water service to such person. If the municipality does not so elect, the rural water system may provide such service.
(Prior Code, § 50.47)
(B) Municipality to provide service after previously declining.
(1) If a rural water system provides service to a person whom a municipality has declined to serve, pursuant to division (A) above, and the municipality thereafter elects to provide water service to such person, the municipality shall first purchase the facilities of the rural water system which were required and used to provide service to such person.
(2) The purchase price shall be the present day reproduction cost, new, of the facilities being acquired, less depreciation computed on a 30-year straight-line basis, plus an amount equal to the cost on a nonbetterment basis of constructing any necessary facilities to reintegrate the system of the rural water system after detaching the portion to be sold; plus as compensation for service rights, an annual amount, payable each year for a period of five years, equal to the sum of 5% of the gross revenues received from the sale of water service to such person during the five-year period.
(3) Gross revenues received shall be determined by applying the rate in effect by the purchased rural water system at the time of purchase.
(Prior Code, § 50.48)
(C) Providing services; purchase of facilities. If a municipality elects to provide water service to any person who is being served by a rural water system and who resides within the boundaries of a municipality or within three miles of the municipality as the boundaries exist on July 1, 1989, the municipality shall purchase the facilities of the rural water system which were required and used to provide service to such person. The purchase price shall be as set forth in division (B) above.
(Prior Code, § 50.49)
(D) Service to persons within extended areas. If the three-mile area referred to in division (C) above is extended as a result of annexation, consolidation, or incorporation after July 1, 1989, and the municipality elects to provide service to any person receiving service from a rural water system residing within the newly extended three-mile area, the municipality shall purchase the facilities of the rural water system which were required and used to provide service to such person. The purchase price shall be determined pursuant to division (B) above. The provisions of division (A) above are applicable to all persons seeking water service in the newly extended area from and after the effective date of such extension.
(Prior Code, § 50.50)
(E) Election to provide service to those outside three-mile area. If a municipality elects to provide water service to any person being served by a rural water system and located more than three miles from the municipal boundaries, the municipality shall purchase the facilities of the rural water system which were required and used to provide service to such person. The purchase price shall be determined pursuant to division (B) above.
(Prior Code, § 50.51)
Statutory reference:
Related provisions, see SDCL §§ 9-47-22, 9-47-23, 9-47-24, 9-47-25, and 9-47-26