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107.730 Service agreements -- Notice -- Hearing.
(1)
(2)
In connection with a privatization contract, a political subdivision, if authorized
by its governing body, may enter into one (1) or more service agreements with
a private owner or private owner/operator pursuant to which the private owner
or private owner/operator will provide one (1) or more services to or for the
benefit of such political subdivisions. The service agreement shall provide for
the purchase by the political subdivision of all or any part of the capacity,
capability, or output of the facilities used to provide the applicable service, and
the charges or rates for such services, and shall contain such other terms and
conditions as the political subdivision and the private owner or private
owner/operator may agree including, without limitation, a covenant by the
political subdivision to maintain rates sufficient to pay debt service incurred in
connection with the financing of construction of a drinking water, water or
wastewater project. The service agreement, the privatization contract, the
charges and rates for services, and private owner or private owner/operator
shall not be subject to the jurisdiction of the Kentucky Public Service
Commission or any successor regulatory agency unless and only to the extent
that the private owner or private owner/operator sells any part of the services
or output of the facility to a person or entity other than the political subdivision
which is a party to the service agreement.
Prior to the execution of a service agreement, the governing body of the
political subdivision shall cause notice of its intention to adopt an ordinance to
accomplish such service agreement to be published pursuant to KRS Chapter
424. The notice shall set forth a brief summary of the service agreement
provisions, and set a time and place for a public hearing to be conducted by
the executive authority of the local government. The notice shall be published
each week for a period of two (2) weeks, the first publication being not less
than thirty (30) days prior to the adoption of the ordinance approving the
execution of the service agreement. The hearing may be held in conjunction
with any hearing on the question of issuing bonds to finance the cost of the
privatization project, or on the question of adoption of the service agreement,
or any other question. A copy of the proposed service agreement shall be filed
as a public record with the clerk of the political subdivision not less than thirty
(30) days prior to its adoption.
Effective:July 15, 1986
History: Created 1986 Ky. Acts ch. 456, sec. 4, effective July 15, 1986.
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