9-40-38. Sale of waterworks and waste disposal facilities--Conditions.
Subject only to the limitation hereinafter set forth, the governing body of a municipality may by ordinance authorize the sale of land, improvements and capital equipment comprising all or a portion of a system or part of system of waterworks, or sewage and waste disposal described in §9-40-1. Any sale made pursuant to this section is subject to the following conditions:
(1)The sale price shall be not less than the greater of an amount equal to the depreciated value of the facilities sold or an amount sufficient to pay, redeem, or discharge all outstanding indebtedness of the municipality incurred with respect to the facilities sold;
(2)The sale proceeds are subject to §6-13-8; and
(3)At the time of sale the municipality shall enter into a franchise agreement, a utility service contract, or other contract, requiring the purchaser to furnish to the municipality, its residents and users located in the area now served by the facilities sold, utility service, at such rates as are approved by the municipality or another governmental entity having rate regulating authority, if any, and on such further terms and conditions as are determined by the municipality's governing body. The municipality may enter into all other contracts considered necessary or desirable with respect to the facility being sold, including but not limited to, contracts relating to the operation, maintenance, insurance, improvements, replacement, and extension of the facilities sold or similar new facilities to be operated in conjunction therewith by the municipality or the other contracting party.
Source: SL 1985, ch 66, §2; SL 1988, ch 64, §§8, 54; SL 1989, ch 30, §24.
Structure South Dakota Codified Laws
Title 9 - Municipal Government
Chapter 40 - Utility Facilities And Revenue Bonds
Section 9-40-2 - Systems defined as utilities.
Section 9-40-3 - Combining of systems and services into single utility system.
Section 9-40-4 - Utility facilities outside municipal limits.
Section 9-40-4.1 - Water pollution prevention contracts.
Section 9-40-4.2 - Financial aid for sewerage and water facility systems--Federal contracts.
Section 9-40-6 - Revenue bond issue for extension or improvement of utility.
Section 9-40-8 - Provision for additional bond issues of equal standing.
Section 9-40-11 - Ordinance provisions for utility operation and security of bondholders.
Section 9-40-15 - Bonds payable from revenue--Circumstances not requiring election.
Section 9-40-19 - Chapter and resolution or ordinance incorporated in terms of bonds.
Section 9-40-21 - Separate or combined acquisition of utilities--Purchase price.
Section 9-40-22 - Payment of purchase price by issuance of bonds.
Section 9-40-24 - Exchange of bonds for underlying debt--Application of proceeds to debt.
Section 9-40-26 - Statutory lien continued until bonds paid.
Section 9-40-27 - Enforcement by bondholders of statutory mortgage and requirements of chapter.
Section 9-40-28 - Rates to cover bond retirement and operational costs.
Section 9-40-29 - Municipality to pay for services rendered by utility.
Section 9-40-31 - Expenditures from depreciation account--Investment of accumulations.
Section 9-40-32 - Surplus applied to other municipal or public purposes.
Section 9-40-33 - Receivership on default or mismanagement--Powers of receiver.
Section 9-40-35 - Termination of receivership and restoration of municipal control.
Section 9-40-37 - Sale and lease-back arrangements for waterworks and waste disposal facilities.
Section 9-40-38 - Sale of waterworks and waste disposal facilities--Conditions.
Section 9-40-39 - Tax exemption of waterworks and waste disposal facilities.
Section 9-40-40 - Sale and lease-back powers additional--Restrictions.