2011 Kentucky Revised Statutes CHAPTER 65 GENERAL PROVISIONS APPLICABLE TO COUNTIES, CITIES, AND OTHER LOCAL UNITS 65.8919 Commission to provide services to member entities and other parties on wholesale contract basis -- Mandatory contract provisions -- Rates and charges -- Contract to manage existing wastewater facility.
KY Rev Stat § 65.8919 (1996 through Reg Sess) What's This?
65.8919 Commission to provide services to member entities and other parties on
wholesale contract basis -- Mandatory contract provisions -- Rates and charges
-- Contract to manage existing wastewater facility.
(1)
(2)
(3)
(4)
The commission shall provide all services on a wholesale contract basis and shall
have no retail customers. The commission shall not be deemed a utility under KRS
278.010(3), but any contract between a commission and a utility that is regulated by
the Public Service Commission regarding provision of services that would result in
an increase in the rates paid by customers of that utility shall be subject to review
and approval by the Public Service Commission in accordance with KRS Chapter
278. Contracts entered into between the commission and its member entities or
other parties shall include covenants for the establishment of rates and charges as
provided in subsection (5) of this section.
In addition to providing services to its member entities by contract, the commission
may contract with cities, city-owned utilities, urban-county governments,
consolidated local governments, sanitation districts, metropolitan sewer districts,
joint sewer agencies, water districts, and agencies of local, state, and federal
government that are not members of the commission. The commission may contract
to provide services to wastewater entities in neighboring states that are not members
of the commission under terms mutually agreed upon by the respective parties.
The commission shall not enter into a service contract with any entity that is
obtaining the same wastewater collection, transportation, or treatment services by
agreement with another wastewater service provider that has incurred debt
obligations or any costs attributable to the agreement that are to be retired in whole
or in part from revenue generated from providing the service to the entity, unless the
wastewater service provider releases the entity from its wastewater service
agreement.
All services provided by the commission to member entities or other parties shall be
set out in contracts that shall contain, at a minimum, the following elements:
(a) A comprehensive description of any type of services to be provided;
(b) A statement of term, with beginning and ending times, dates, and a specific
delineation of automatic term extensions of the contract, if any;
(c) A provision that the commission shall be the exclusive service provider for all
or a designated geographic portion of a member entity's wastewater collection
system;
(d) Statements that:
1.
All service shall be metered at each point of service and that the
contractee shall be responsible for initial capital costs and construction
of metering stations subject to the commission's specifications;
2.
The commission shall take ownership and provide security for all
metering stations for purposes of management;
3.
The commission shall arrange for testing of all meters according to
manufacturer's recommended schedule;
4.
(5)
Testing and metering station maintenance costs shall be shared equally
between the commission and the contractee;
5.
Metering stations shall be accessible to both parties; and
6.
Meters shall be read at least monthly or more often according to a
mutually agreed upon schedule;
(e) A statement setting out allowed minimum volumes, if any, and allowed
maximum volumes expressed in gallons per minute for each meter;
(f) Identification of collected wastewater sources and allowed quality of influent
to commission facilities at each meter;
(g) A statement of rates and charges for access to services, for allowed minimum
volumes, if any, expressed in dollars per thousand gallons, and for allowed
maximum volumes, expressed in dollars per thousand gallons;
(h) A statement that all rates or charges are subject to adjustment based on
periodic cost-of-service analyses and an associated cost-allocation plan funded
equitably between the commission and contractees, and a statement that any
rates and charges adjustment that may occur in the interim between the times
of full cost-of-service analyses with cost-allocation plans, if any, are subject to
clauses citing time frames, volumes of influent, or other triggering elements
tied to designated indexing method and proper notice;
(i) A requirement that either party provide immediate notification to the other
party regarding changes in volume or the quality of influent, instances of
mechanical failure, or other critical circumstance affecting operations when
and as changes are known or can be reasonably anticipated;
(j) A statement regarding any modifications or restrictions in service by either the
commission or the contractee during emergencies;
(k) A statement delineating any special condition binding one (1) or both parties,
or citation of a particular action that, if taken by either party or if either party
allows a third party to take, will constitute a breach of contract or invoke
specifically identified penalties;
(l) A statement requiring both parties to provide current contact information of
the respective parties' agents for both administrative matters and for
emergencies; and
(m) A statement that the commission and the governing body of the contractee
agree to meet at least annually to review any contract issues, assess service
delivery, and plan for future service needs.
Any contract entered into by the commission to supply designated wastewater
services to either a member entity or other party shall provide that charges assessed
by the commission and payments made by the entity or party shall be fair, just, and
reasonable and shall be sufficient to cover all costs associated with the service. The
commission's rates and charges may be modified to compensate for increased
operating costs, pursuant to covenants set forth in contract. Contracts for services
shall be fully binding on the parties, but shall not be construed to be a debt of the
(6)
commission member entities within the meaning of any statutory or constitutional
limitations.
If a commission contracts for management of a wastewater facility owned by a
member entity or other party, the commission shall become a signatory on any
federal, state, or local wastewater-related permits issued to and held by that member
entity or other party.
Effective: June 8, 2011
History: Created 2011 Ky. Acts ch. 98, sec. 10, effective June 8, 2011.
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