CHAPTER 50: UTILITY COMMISSION
Section
   50.01   Establishment and responsibilities
   50.02   Members
   50.03   Compensation
   50.04   Term of office; removal
   50.05   Meetings; quorum
   50.06   Powers and duties
   50.07   Utilities System Director
   50.08   Regulations enacted by the Commission
   50.09   Effect on outstanding bonds
   50.10   Guidelines, policy, and budget
§ 50.01 ESTABLISHMENT AND RESPONSIBILITIES.
   (A)   There is established the Utility Commission of the city, which shall consist of five total members including two members shall be residents of the city who have resided therein for not less than one year preceding the date of their appointment and, an additional two members who may be residents and/or customers of the Utility Commission. The members shall be appointed by the Mayor with the approval of the City Council. An additional member of the Utility Commission shall be appointed from the membership of the City Council and shall constitute the fifth member of the Utility Commission.
   (B)   The Utility Commission shall be responsible for providing a system of water and sewer to the citizens of the city. Although water systems other than those of this Commission serve some of the citizens of the city, it is the responsibility of the Commission to provide a system of potable water to the citizens and businesses of the city and it is the intent of the Commission to provide such services to any areas of the city that do not have water as possible as determined by the Commission. The City Council states that it is the mission of the Commission to provide the city with water and sewer; establish and regulate public cisterns, hydrants and reservoirs, with and beyond the limits of the city, for the extinguishment of fires and the convenience of the inhabitants; prevent the unnecessary waste of water; and to change, relocate and establish water and sewer service within and beyond the city limits.
(Ord. 2-83, passed 2-21-1983; Ord. 22-2006, passed 10-1-2006; Ord. 1-2024, passed 2-5-2024)
§ 50.02 MEMBERS.
   (A)   Except as set forth in § 50.01, no person shall be appointed a member of the Utility Commission who has, within the past two years before his or her appointment, held any public office, or who is a close relative of the Mayor or any member of the City Council. CLOSE RELATIVE as used in this Chapter 50 shall be defined as a person who by consanguinity or affinity, including half, foster, step and adoptive kin, is either a spouse, child, grandchild, parent, grandparent, brother, sister, aunt, uncle, nephew or niece of the principal.
   (B)   Pursuant to KRS 96.320, members of the Utility Commission shall be citizens, taxpayers, regular voters of the city, and/or customers of the Utility Commission and shall not at the time of their appointment be indebted to the municipality either directly or indirectly or be surety on the official bond of any official of the city.
   (C)   If at any time during his or her term of office a member of the Utility Commission is elected to or appointed to any public office, he or she shall automatically vacate his or her membership from the Utility Commission and another person shall be appointed by the Mayor with the approval of the City Council to take his or her place. Notwithstanding this provision, a City Council member who is appointed by the Mayor to serve on the Utility Commission, as an ex-officio member, may serve in both capacities.
   (D)   The Utility Commission shall pay the cost of securing bonds for Utility Commission members from a surety company qualified to do business in the state and the members shall execute bond in an amount required by resolution of the Utility Commission and conditioned upon the faithful performance of their official duties.
   (E)   Each member of the Utility Commission shall qualify by taking the oath provided for by § 228 of the Kentucky Constitution.
(Ord. 2-83, passed 2-21-1983; Ord. 4-2000, passed 6-5-2000; Ord. 21-2004, passed 12-20-2004; Ord. 22-2006, passed 10-1-2006; Ord. 3-2014, passed 2-3-2014; Ord. 5-2014, passed 6-2-2014; Ord. 1-2024, passed 2-5-2024)
§ 50.03 COMPENSATION.
   The Utility Commission shall determine the compensation to be paid to its members, not exceeding an annual salary of $3,600 per Commissioner per annum, except that each Commissioner who completes during a calendar year a minimum of six instructional hours (year one) of water or sewer utility management training approved by the Public Service Commission, Division of Water, or equivalent municipal utility training, may receive an annual salary of not more than $4,800 for year one. Each Commissioner who completes during the following calendar year an additional six instructional hours (consecutive year two) of water or sewer utility management training approved by the Public Service Commission, Division of Water, or equivalent municipal utility training, may receive an annual salary of not more than $6,000 for year two. Each Commissioner who continues to complete during the following calendar year and consecutive years beyond an additional six instructional hours (year three and beyond) of water or sewer utility management training approved by the Public Service Commission, Division of Water, or equivalent municipal utility training, may continue to receive an annual salary of not more than $6,000. The Chairperson shall receive an additional $60 per month as an expense reimbursement. These amounts shall constitute a cost of operation and maintenance of the waterworks system, sewer system and other utilities. The city shall not be liable for the payment of any salary or compensation of any of the members of the Utility Commission, or for the payment of the salary or compensation or expenses of any person employed by the Utility Commission, and such salaries, compensation and expenses, and any and all liabilities of whatever kind or character, incurred by the Utility Commission, or any officer or employee thereof, shall be paid solely and only out of the revenue obtained from the Utility Commission from the various utilities owned by the city pursuant to the law, and the liabilities shall be so limited.
(Ord. 2-83, passed 2-21-1983; Ord. 4-2000, passed 6-5-2000; Ord. 21-2004, passed 12-20-2004; Ord. 16-2017, passed 12-4-2017)
§ 50.04 TERM OF OFFICE; REMOVAL.
   (A)   The original appointees shall serve for one, two and three years respectively, from the date of the appointments as the Mayor shall designate. Successors to retiring members so appointed shall be appointed for a term of four years in the same manner prior to the expiration of the term of office of the retiring member. The Council person member of the Utility Commission shall serve for such time as the Mayor may fix, but not beyond such appointee’s term of office in the City Council. Appointments to complete unexpired terms of office shall be made in the same manner as original appointments.
   (B)   Any member of the Utility Commission may be removed from office upon a vote of the City Council for inefficiency, neglect of duty, misfeasance, nonfeasance or malfeasance in office.
(Ord. 2-83, passed 2-21-1983)
§ 50.05 MEETINGS; QUORUM.
   A majority of the Utility Commission shall constitute a quorum and the Utility Commission shall act by vote of the majority present at any meeting attended by the quorum. Vacancies in the Utility Commission shall not affect its power or authority so long as a quorum remains. Within ten days after appointment and qualification of members, the Utility Commission shall hold a meeting to elect a Chairperson and such other officers as it may choose to elect. The Utility Commission shall hold public meetings on the second Monday of each month at such place as the Utility Commission may designate. Changes in time and place of meeting shall be made known to the public as far in advance as practicable. Any meeting may be called by the Chairperson or by two members of the Utility Commission; but, if such meeting is called, written notice shall be sent to all members of the Utility Commission by the Chairperson. Except as otherwise specifically provided, the Utility Commission shall establish its own bylaws and rules of procedure.
(Ord. 2-83, passed 2-21-1983; Ord. 13-83, passed 10-3-1983)
§ 50.06 POWERS AND DUTIES.
   (A)   The Utility Commission shall have charge of the general supervision and control of the operation and maintenance of the waterworks system, sewer system and all other utilities for the city for the use of which service fees or rentals will be charged. However, it is understood that the Utility Commission is governed by a commission with policy-making authority that is separate from the governing bodies of the city and county in which it operates but has been determined to be a special purpose government entity by the Kentucky Department of Local Government subject to the provisions of KRS Chapter 65A.
   (B)   Consistent with the requirements of any applicable state law, and within the limits of the funds available therefor, all powers of the city to improve, operate, expand and maintain the systems and utilities and all powers necessary and convenient thereto, shall be exercised on behalf of the City Council by the Utility Commission. Subject to the provision of applicable bonds or contracts, the Utility Commission shall determine programs and make all plans and determinations as to improvements and financial practices, and may establish those rules and regulations as it deems necessary or appropriate to govern the furnishing of water and other service.
   (C)   A copy of the schedule of the current rates and charges and all rules and regulations adopted by the Utility Commission relating to water and sewer service and of other utilities shall be kept on file at the main office of the Utility Commission.
   (D)   The Utility Commission shall keep a complete and accurate record of all meetings and actions taken, and of all receipts and disbursements, and shall make reports thereof to the City Council at least once a month. The report shall be in writing and shall be filed in open meeting of the City Council, and a copy shall be filed with the City Clerk, as a public record.
   (E)   The LaGrange Utilities Report must continue to remain as a line item on the agenda for regularly scheduled City Council meetings, and representation from LaGrange Utilities must attend in person at these meetings.
   (F)   The Utility Commission shall employ an attorney and designate payments to be paid to the attorney and for its attending meetings and for representing the Commission and Director in any legal work of any nature on the Commission's behalf as may be required from time to time, such payment to be made from the Commission's operating budget.
(Ord. 2-83, passed 2-21-1983; Ord. 21-2004, passed 12-20-2004; Ord. 16-2017, passed 12-4-2017; Ord. 1-2024, passed 2-5-2024)
§ 50.07 UTILITIES SYSTEM DIRECTOR.
   (A)   The Utility Commission shall employ a Utilities System Director (hereinafter called "Director"), who shall be qualified by training and experience for the general superintendence over the acquisition, improvement and operation of the system. His or her salary shall be fixed by the Utility Commission. The Director's employment may be terminated by the Utilities Commission. He or she shall be required to execute a bond, in a sum to be determined and approved by the Utility Commission, conditioned upon the faithful performance of his or her official duties. The cost of the bond may be charged as an expense of the operation of this system.
   (B)   The Director shall have charge of all actual construction, the immediate management and operation of the various utilities systems, and the enforcement and execution of all rules, regulations, programs, plans and decisions made or adopted by the Utility Commission.
   (C)   The Director shall appoint all employees and fix their duties and compensation, subject to and with the approval of the Utility Commission and subject to the pay plan and compensation guidelines adopted by the Utility Commission. The title of all property purchased or acquired shall be taken in the corporate name of the Utility Commission.
   (D)   The Director shall let all contracts subject to the approval of the Utility Commission, but may, without this approval, obligate the various utilities systems on all purchase up to an amount to be fixed by the Utility Commission. All contracts shall be in the corporate name of the Utility Commission and shall be signed by the Director. The Director shall make and keep or cause to be made and kept full and proper books and records, subject to the supervision and direction of the Utility Commission and the provisions of applicable contracts.
(Ord. 2-83, passed 2-21-1983; Ord. 4-2000, passed 6-5-2000; Ord. 21-2004, passed 12-20-2004; Ord. 10-2011, passed 9-6-2011; Ord. 5-2014, passed 6-2-2014; Ord. 1-2024, passed 2-5-2024)
§ 50.08 REGULATIONS ENACTED BY THE COMMISSION.
   All ordinances, resolutions, orders, rules and regulations, or parts thereof, enacted by the City Council as to matters provided for in Chapters 50 through 52 shall continue in full force and effect until the Utility Commission has been properly and legally organized and has enacted a resolution, order, rule, or regulation as to the same.
(Ord. 2-83, passed 2-21-1983; Ord. 21-2004, passed 12-20-2004; Ord. 1-2024, passed 2-5-2024)
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