KRS 96.172: Ordinance of city adopting provisions of KRS 96.171 to 96.188 for operation

of combined electric and water plant -- Electric and water plant board --

Appointment -- Qualifications -- Corporate powers -- Prohibition of nepotism -

- Bond of board members -- Oath -- Term -- Removal.

(1) Any municipality now or hereafter owning and operating an electric system and a

water system and operating them as one (1) combined system or plant may elect to

operate such systems as an electric and water plant under the provisions of KRS

96.171 to 96.188 by enacting an ordinance declaring therein the desire and intention

of the municipality to accept and operate its electric and water system or plant under

the provisions of KRS 96.171 to 96.188 and by providing in said o rdinance that the

municipality accepts and agrees to all of the provisions of KRS 96.171 to 96.188.

The ordinance shall further authorize the mayor or chief executive to appoint a

board, subject to the approval of the appointments by the governing body of the

municipality. Upon the passage of such ordinance the mayor or chief executive of

any such municipality shall, with the approval of the governing body of the

municipality, appoint a board of public utilities, consisting of five (5) citizens,

taxpayers, voters, and users of electric energy or water. Said board shall be

appointed and qualified before the municipality shall have any authority to proceed

further under the provisions of KRS 96.171 to 96.188. Said board, when so

appointed and qualified, shall be and hereby is declared to be a body -politic and

corporate, with perpetual succession; and said board may contract and be contracted

with, sue and be sued, in and by its corporate name, and have and use a corporate

seal. The name of the board shall be "E lectric and Water Plant Board of the City of

____________, Kentucky."

(2) No person shall be appointed a member of the board who has, within two (2) years

next before his appointment, held any public office, or who is related within the

third degree to the mayor or any member of the governing body of the municipality.

(3) Neither the board, nor the superintendent appointed by the board as provided in

KRS 96.176, shall appoint to any subordinate office which it may create, nor

employ in any capacity any pers on who is related within the third degree to any

member of the board or to the superintendent or to the mayor of said municipality or

to any member of the governing body of the municipality. No officer or employee of

a municipality shall be eligible for su ch appointment until at least one (1) year after

the expiration of the term of his office or employment.

(4) The members of the board shall be citizens, taxpayers, voters, and users of electric

energy or water, and shall not at the time of their appointmen t be indebted to the

municipality either directly or indirectly or be surety on the official bond of any

officer of said municipality.

(5) If at any time during his term of office a member of the board becomes a candidate

for or is elected or appointed to any public office, he shall automatically vacate his

membership from the board, and another person shall be appointed to his place.

(6) Each member of said board shall execute bond, in an amount required by the

governing body of the municipality by resolut ion or ordinance, conditioned upon

the faithful performance of their official duties. The surety on said bonds shall be a

surety company qualified to do business in Kentucky. The cost of said bonds shall

be charged as an operating expense and paid by the board.

(7) Each member of the board shall qualify by taking the oath required by Section 228

of the Constitution.

(8) The original appointees shall serve two (2) for one (1) year, one (1) for two (2)

years, one (1) for three (3) years and one (1) for four ( 4) years, respectively, from

the date of their appointment, as the said mayor or chief executive officer of the

municipality shall designate. Successors to retiring members so appointed shall be

appointed for a term of four (4) years in the same manner, pr ior to the expiration of

the term of office of the retiring members. Appointments to complete unexpired

terms shall be made in the same manner as original appointments.

(9) Any member of the board may be removed from office upon a vote of a majority of

the members of the governing body of the municipality for inefficiency, neglect of

duty, misfeasance, nonfeasance, or malfeasance in office.