74.361 Merger of water districts -- Hearing -- Orders. - Kentucky Statutes

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74.361 Merger of water districts -- Hearing -- Orders. (1) The General Assembly of the Commonwealth of Kentucky determines as a legislative finding of fact that reduction of the number of operating water districts in
the Commonwealth will be in the public interest, in that mergers of such districts
will tend to eliminate wasteful duplication of costs and efforts, result in a sounder
and more businesslike degree of management, and ultimately result in greater
economies, less cost, and a higher degree of service to the general public; and that
the public policy favors the merger of water districts wherever feasible. (2) The Public Service Commission of Kentucky is authorized and empowered to initiate, carry out, and complete such investigations, inquiries, and studies as may
be reasonably necessary to determine the advisability as to the merger of water
districts. Prior to ordering a hearing with reference to the merger of any water
district into one (1) or more additional water districts, the Public Service
Commission shall cause to be prepared in writing a feasibility report and study
regarding the proposed merger, containing such studies, investigations, facts,
historical data, and projections as in the circumstances may be required in order to
enable the commission to formulate a proper decision regarding such merger. (3) Based upon the written report and study required to be made incident to any water district merger, the Public Service Commission may propose by order that a merger
of water districts be accomplished, and, upon the issuance of such order, shall give
actual notice to all water districts proposed to be merged. Said order shall provide
for a formal public hearing to be held before the Public Service Commission on the
subject of such proposed merger. Actual notice of such merger hearing shall also be
furnished to the county judges/executive of each county containing a water district
proposed to be merged, and each water commissioner of a water district proposed to
be merged, and notice of such public hearing shall be afforded to the public served
by the respective water districts sought to be merged, by newspaper notice in
accordance with the provisions of KRS Chapter 424. (4) A formal hearing before the Public Service Commission shall be held with reference to such merger proposal, and, upon such occasion, all water districts
which are sought to be merged into a single entity shall be afforded the right to
appear, to present evidence, to examine all exhibits and testimony, to cross-examine
all witnesses, and to submit such memoranda, written evidence, and briefs as may
be desired. Such public hearing may be adjourned from time to time by the Public
Service Commission, and notice of such adjournments may, but need not, be
afforded as with reference to the initial public hearing. At the conclusion of such
proceedings, the Public Service Commission shall enter its order, either merging the
water districts which are the subject of the merger proceedings into a single water
district, or abandoning the merger proposal. (5) Outstanding obligations of any water district merged in accordance with the provisions of this section which are secured by the right to levy an assessment as
provided by KRS 74.130 to 74.230, inclusive, or secured by a pledge of the income
and revenues of the systems operated by any such merged water district, shall
continue to be retired from such moneys and funds as shall be collected from the users of facilities operated by such merged water districts in the original water
district area in accordance with the terms and provisions of the enabling laws and
the authorizing resolutions or indentures under which the outstanding obligations
were issued, until all such obligations have been retired. (6) In any order ordering the merger of water districts, the Public Service Commission shall make such additional orders as may be required in connection with the
schedule of rates, rentals and charges for services rendered to be levied by the water
district which remains in existence following such merger, having due regard to
contractual commitments made and entered into by the constituent merged water
districts in connection with the issuance of obligations by such districts. (7) Upon the effective date of any merger of water districts, the water commissioners of the merged water districts shall continue to serve as water commissioners of the
resulting district, regardless of their normal term expiration, until one (1) year after
approval of the merger by the Public Service Commission. Thereafter, the board
shall be composed as set forth in KRS 74.363. The appropriate county
judge/executive or county judges/executive shall appoint and reappoint water
commissioners to manage the business and affairs of the resultant water district, in
the manner provided by KRS 74.363. (8) Any order of merger entered by the Public Service Commission in accordance with this section shall be subject to all of the provisions of KRS Chapter 278, with
reference to petitions for rehearing, and appeal. (9) Using the authority of this section the Public Service Commission can also cause mergers of water associations into water associations or mergers of water
associations into water districts. (10) Nothing contained herein shall be construed to prohibit or limit in any respect the acquisition by water utilities subject to the jurisdiction of the commission or by
municipally owned water utilities of the assets of water districts or water
associations or the merger of water districts or water associations and water utilities
subject to the jurisdiction of the commission or municipally owned water utilities. Effective: July 15, 2008
History: Amended 2008 Ky. Acts ch. 6, sec. 10, effective July 15, 2008. -- Amended 1978 Ky. Acts ch. 384, sec. 189, effective June 17, 1978. -- Created 1972 Ky. Acts
ch. 310, sec. 4.