City streets -- Class C roads -- Construction and maintenance

(1) City streets comprise: (a) highways, roads, circulator alleys, and streets within the corporate limits of the municipalities that are not designated as class A state roads or as class B roads; and (b) those highways, roads, and streets located within a national forest and constructed or maintained by the municipality under agreement with the appropriate federal agency. (2) City streets are class C roads. (3) Except for city streets within counties of the first and second class, as classified under Section 17-60-104, the state and city have joint undivided interest in the title to all rights-of-way for all city streets. (4) The municipal governing body exercises sole jurisdiction and control of the city streets within the municipality. (5) The department shall cooperate with the municipal legislative body in the construction and maintenance of the class C roads within each municipality. (6) The municipal legislative body shall expend or cause to be expended upon the class C roads the funds allocated to each municipality from the Transportation Fund under rules made by the department. (7) Any town or city in the third, fourth, or fifth class may: (a) contract with the county or the department for the construction and maintenance of class C roads within its corporate limits; or (b) transfer, with the consent of the county, its: (i) class C roads to the class B road system; and (ii) funds allocated from the Transportation Fund to the municipality to the county legislative body for use upon the transferred class C roads. (8) A municipal legislative body of any city of the third, fourth, or fifth class may use any portion of the class C road funds allocated to the municipality for the construction of sidewalks, curbs, and gutters on class A state roads within the municipal limits by cooperative agreement with the department.