12-5504.   Same; proposals; public hearing, feasibility analysis; protest petition.(a) Any municipality considering the privatization of apublic service as provided by this act shall prepare a request forproposals which shall describe the public service and related facilitiesunder consideration for performance by contract. A notice of such requestfor proposals shall be published once in the municipality's officialnewspaper at least 30 days prior to any action thereon. Any person whoexpresses in writing an interest in submitting a proposal shall be providedsuch performance specifications, terms and conditions and other informationas deemed advisable by the municipality to facilitate the submission of acomprehensive proposal.

      (b)   Upon receiving one or more proposals to provide a capital intensivepublic service, the municipality may negotiate the detailed provisions of aproposed service agreement with any private contractor or contractors whomthe municipality determines would provide the proposed service in anefficient and effective manner. Following such negotiations, and thedevelopment of a proposed service agreement, a public hearing shall be heldnot sooner than 10 days following publication of a notice thereon, givingthe date, time and place and specifying the general purpose of the publichearing. At the time of the hearing, a feasibility analysis prepared bythe municipality shall be made available, which includes a comparativeanalysis of the costs of the service if provided directly by themunicipality or by a private contractor.In addition, afeasibility analysis shall be obtained from the Kansas department of healthand environment as to any proposed service agreement affecting solid wasteor water.

      (c)   No agreement shall be entered into under the provisions of this actunless the governing body of the municipality shall find,by resolution,following the public hearing,that the proposed service agreement is in the public interest andwould provide the public service in an efficient and effective manner, at acost that would not exceed the cost if themunicipality had directly provided such service, and specifying its intentto enter into the agreement, the nature andpurpose of the agreement and the estimated annual service fee to be paidfrom public funds to the contractor under the agreement.

      (d)   If the estimated annual payment under the agreement exceeds3% of the total amount budgeted by the municipality for expenditure duringthe current year, excluding debt service, suchresolution shall bepublished once each week for two consecutive weeks in a newspaper ofgeneral circulation within the municipality. If within 30 days of the lastpublication, a petition signed by at least 5% of the qualified electors isfiled with the county election officer of the county in which suchmunicipality is located requesting an election on the proposal no serviceagreement shall be entered into unless the proposal is submitted to andapproved by a majority of the qualified electors of the municipality at anelection thereon. Such election shall be called and held in the mannerprovided by K.S.A. 10-120, and amendments thereto.

      History:   L. 1990, ch. 64, § 4; July 1.