15-809.   Sale of electric light, waterworks or gassystem; election;application of proceeds.Any city of the third class which owns anelectric light or waterworks plant, electrictransmission line, or water, gas or electric distribution system may sellthe same except that thesale shall not be made until the proposition of whether to sell has beensubmitted to avote of the qualified electors of the city. If a majority of thequalified electors who vote in the electionvote infavor of the sale, thegoverning body may dispose of the plant, transmission line or distributionsystem, according to the proposition voted on at theelection. The proposition submitted to the electors shall contain astatement of the proposed sale price and the name of the purchaser.

      When the governing body decides to put the proposition to a vote, itshall pass an ordinance calling an election to be held within 40days after the passage of the ordinance. The mayor shall cause anotice of the election to be published once a week for twoconsecutive weeks, the first publication tobe not less than 21 days preceding the election. The noticeshall state the purpose of the election, giving the sale price and thename of the purchaser, the date of the election, and the places ofvoting. The proposed purchaser shall bear all the expenses of theelection.

      All sales shall be for cash, and the proceeds of the sale shall beapplied upon the payment of any outstanding bonds or obligationsincurred in the purchase, erection or improvement of the property sold.The excess, if any, shall be paid into thegeneral fund of the city. If the city is unable to purchasetheunmatured bonds issued for the purchase, erection or improvement of theproperty sold, the governing body may invest the moneynecessary to take up such bonds at maturity in investments authorized byK.S.A. 12-1675, and amendments thereto, in the manner prescribedthereinor in any municipal bonds of this state, which shall become due prior tothe due date of the bonds issued for the purchase, erection orimprovement of the property sold, or in government bonds orfederal landbank bonds. The purchase price and proceeding of the saleshall be filed with the state corporation commission.

      History:   L. 1923, ch. 102, § 1;R.S. 1923, § 15-809;L. 1929, ch. 135, § 1;L. 1931, ch. 135, § 1;L. 1939, ch. 141, § 1;L. 1951, ch. 189, § 1;L. 1977, ch. 54, § 20;L. 1981, ch. 173, § 53;L. 2009, ch. 74, § 1; Apr. 23.