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107.730 Service agreements -- Notice -- Hearing.

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