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SB 383 - Prior to putting a proposed water or wastewater system sale, or the sale of a gas plant, before the voters, this act allows the board of aldermen of a fourth class city to seek an appraisal of the system. The board may also seek and provide additional reasonable analyses to inform voters of such sale, including but not limited to, the impact of such sale on all city funds and revenue, other city services, and annexation. The board may utilize the appraisal process as set forth in the act or utilize the appraisal process set forth in current law for the acquisition of small water utilities. The board shall determine the fair market value of the utility system after obtaining two appraisals of the system's fair market value. One appraiser shall be selected by the board and the second shall be selected by the potential buyer. The board of aldermen may pay for its appraisal, or negotiate with the buyer to pay for the board's appraisal. The buyer shall have no authority to influence or control the selection and direction of the board selected appraiser. The potential buyer shall pay for its appraisal. The determination of a utility's fair market value shall not be dispositive of the utility's system price, which shall be subject to negotiation by the board. The board shall prepare an inventory of the utility's real and personal property, a statement of net position or balance sheet of the utility, and a financial information statement of the utility. The board may consider alternatives to disposing of the utility system by sale, including entering into a finance agreement, purchase agreement, management agreement, or lease agreement with another entity. The board shall make certain information related to the proposed sale of the utility system available on its internet site, if such site exists, at least 60 days prior to submitting a proposal for election. Such information shall also be posted in the building where the board has its monthly meetings. The board shall also post any offers or appraisals of fair market value from prospective purchasers. The board shall make a good faith effort to provide each property owner of the city and each ratepayer of the utility a notice of the proposal, a summary of the proposal, and other information specified in the act. JAMIE ANDREWS
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