KRS 96.545: Operation and management of system -- Artificial gas commission.

(1) Any city acquiring any such artificial gas system under the provisions of KRS

96.541 to 96.546 may by ordinance provide for the operation of the system under

the direction of an official of the city as designated by the legislative body, or may

delegate th e authority to operate the system to a commission created for the

operation of some other public works in the city, including a waterworks or electric

plant, or may provide for the appointment of a commission of seven (7) members to

operate, manage and con trol the system, which commission shall be known as the

".... Artificial Gas Commission." The commission shall provide rules, regulations

and bylaws for the artificial gas system and shall, out of the revenue of the system,

pay necessary operating expenses , repairs and additions thereto, and provide a

sufficient reserve fund to insure that the system is kept in repair and in safe and

sanitary condition and to provide against any emergency that may arise. The

commission shall from time to time pay to the city the surplus revenue derived from

the operation of the system as provided in KRS 96.541 to 96.546.

(2) In order that the commission may be nonpartisan and nonpolitical, no person shall

be appointed a member thereof who has, within the last two (2) years b efore his

appointment, held any city, county, state or federal office, or who is related within

the third degree to the mayor or any member of the legislative body of the city. The

commission shall not appoint, to any subordinate office created by it, any person

who is related to any member of the city legislative body or to the mayor or chief

executive of the city, or to any member of the commission. No officer or employee

of the city, whether holding a paid or unpaid office, shall be eligible to be a member

of the commission. The members of the commission shall be citizens, taxpayers and

legal voters of the city and shall not at the time of their appointment be indebted to

the city or be surety on the official bond of any officer of the city. No member of the

commission shall be interested in any contract for the furnishing of supplies or

services of any kind to the system, or to the city. If at any time during his term of

office any member of the commission becomes a candidate for or is elected or

appointed to any public office, he shall automatically vacate his office on the

commission and another person shall be appointed.

(3) Each commissioner shall execute bond with a surety company in the penal sum of

one thousand dollars ($1,000), conditioned upon the faithful performance of his

official duties. The bonds shall be approved by the legislative body of the city and

the premiums shall be paid by the city. An action may be maintained upon any

commissioner's bond by any person injured by a violation of the c ovenants therein

contained.

(4) The members of the commission shall serve without compensation.

(5) The first artificial gas commission appointed in each city under this section shall be

appointed for terms as follows: Two (2) members for a term of one (1) year, two (2)

for a term of two (2) years, and three (3) for a term of three (3) years. Upon the

expiration of the first terms, successors shall be appointed for a term of three (3)

years.