{"data":{"id":"us-ky/krs-65.8919","jurisdiction":"us-ky","citation":"KRS 65.8919","heading":"Commission to provide services to member entities and other parties on","body":"wholesale contract basis -- Mandatory contract provisions -- Rates and charges\n-- Contract to manage existing wastewater facility.\n(1) The commission shall provide all services on a wholesale contract basis and shall\nhave no retail customers. The commission shall not be deemed a utility under KRS\n278.010(3), but any contract between a commission and a utility that is regulated by\nthe Public Service Commission regarding provision of services that would result in\nan increase in the rates paid by customers of that utility shall be subject to review\nand approval by the Public Service Commission in accordance with KRS Chapter\n278. Contracts entered into between the commission and its memb er entities or\nother parties shall include covenants for the establishment of rates and charges as\nprovided in subsection (5) of this section.\n(2) In addition to providing services to its member entities by contract, the commission\nmay contract with cities , city -owned utilities, urban -county governments,\nconsolidated local governments, sanitation districts, metropolitan sewer districts,\njoint sewer agencies, water districts, and agencies of local, state, and federal\ngovernment that are not members of the commission. The commission may contract\nto provide services to wastewater entities in neighboring states that are not members\nof the commission under terms mutually agreed upon by the respective parties.\n(3) The commission shall not enter into a service cont ract with any entity that is\nobtaining the same wastewater collection, transportation, or treatment services by\nagreement with another wastewater service provider that has incurred debt\nobligations or any costs attributable to the agreement that are to be retired in whole\nor in part from revenue generated from providing the service to the entity, unless the\nwastewater service provider releases the entity from its wastewater service\nagreement.\n(4) All services provided by the commission to member entities or other parties shall be\nset out in contracts that shall contain, at a minimum, the following elements:\n(a) A comprehensive description of any type of services to be provided;\n(b) A statement of term, with beginning and ending times, dates, and a specific\ndelineation of automatic term extensions of the contract, if any;\n(c) A provision that the commission shall be the exclusive service provider for all\nor a designated geographic portion of a member entity's wastewater collection\nsystem;\n(d) Statements that:\n1. All service shall be metered at each point of service and that the\ncontractee shall be responsible for initial capital costs and construction\nof metering stations subject to the commission's specifications;\n2. The commission shall take ownership and pro vide security for all\nmetering stations for purposes of management;\n3. The commission shall arrange for testing of all meters according to\nmanufacturer's recommended schedule;\n4. Testing and metering station maintenance costs shall be shared equally\nbetween the commission and the contractee;\n5. Metering stations shall be accessible to both parties; and\n6. Meters shall be read at least monthly or more often according to a\nmutually agreed upon schedule;\n(e) A statement setting out allowed minimum volumes, if any, and allowed\nmaximum volumes expressed in gallons per minute for each meter;\n(f) Identification of collected wastewater sources and allowed quality of influent\nto commission facilities at each meter;\n(g) A statement of rates and charges for access to services, for allowed minimum\nvolumes, if any, expressed in dollars per thousand gallons, and for allowed\nmaximum volumes, expressed in dollars per thousand gallons;\n(h) A statement that all rates or charg es are subject to adjustment based on\nperiodic cost-of-service analyses and an associated cost-allocation plan funded\nequitably between the commission and contractees, and a statement that any\nrates and charges adjustment that may occur in the interim betw een the times\nof full cost-of-service analyses with cost-allocation plans, if any, are subject to\nclauses citing time frames, volumes of influent, or other triggering elements\ntied to designated indexing method and proper notice;\n(i) A requirement that eit her party provide immediate notification to the other\nparty regarding changes in volume or the quality of influent, instances of\nmechanical failure, or other critical circumstance affecting operations when\nand as changes are known or can be reasonably anticipated;\n(j) A statement regarding any modifications or restrictions in service by either the\ncommission or the contractee during emergencies;\n(k) A statement delineating any special condition binding one (1) or both parties,\nor citation of a particular ac tion that, if taken by either party or if either party\nallows a third party to take, will constitute a breach of contract or invoke\nspecifically identified penalties;\n(l) A statement requiring both parties to provide current contact information of\nthe resp ective parties' agents for both administrative matters and for\nemergencies; and\n(m) A statement that the commission and the governing body of the contractee\nagree to meet at least annually to review any contract issues, assess service\ndelivery, and plan for future service needs.\n(5) Any contract entered into by the commission to supply designated wastewater\nservices to either a member entity or other party shall provide that charges assessed\nby the commission and payments made by the entity or party shall b e fair, just, and\nreasonable and shall be sufficient to cover all costs associated with the service. The\ncommission's rates and charges may be modified to compensate for increased\noperating costs, pursuant to covenants set forth in contract. Contracts for services\nshall be fully binding on the parties, but shall not be construed to be a debt of the\ncommission member entities within the meaning of any statutory or constitutional\nlimitations.\n(6) If a commission contracts for management of a wastewater facili ty owned by a\nmember entity or other party, the commission shall become a signatory on any\nfederal, state, or local wastewater-related permits issued to and held by that member\nentity or other party.","path":["KRS Chapter 65"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=39883","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:49:23Z","sha256":"f344fca108a1741ae4913b8368bd5278b98c2f8a5738e55df97b2ca599b42449","source_id":"us-ky","stale":false,"prev":"us-ky/krs-65.8917","next":"us-ky/krs-65.8921"},"notice":"GroundRules: Original legal text. Not legal advice."}