KRS 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

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 char ges 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.

(2) Prior to the execution of a service agreement, the governing body of the politic al

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 pl ace 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.