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Prior to approval of any annexation of land to the City through a petition method of annexation, water rights associated with the property proposed for annexation shall be transferred to the City, subject to the provisions of Section 12.10.050. Alternatively, the City and the annexation property owners may enter into an agreement, at the election of the City, for the transfer to the City of the water rights associated with the annexing property at such future point in time as the City determines appropriate. The purpose of the future transfer provision is to accommodate potential delays encountered in the process to transfer the water rights to the City, the submission of an application within the scope of Section 12.10.040, or continued use of water rights associated with uses in existence at the time of annexation and anticipated to continue until further development of the annexation area property occurs. As part of the agreement, the City may require (A) the property owners to acquire adequate water rights and transfer the same to the City, and/or (B) the property owners to deposit an amount into the City water fund equal to the payment in lieu of transfer provided in Section 12.10.050, which sum is refundable to the extent of the successful transfer of the water rights. [Ord. 2021-06 § 1, December 2021.]