70-1405. Creation of joint authority; procedure; resolution; membership; considerations; notice; challenge.

(1) The governing body of two or more public power districts may by resolution determine that it is in the best interests of the respective public power districts and their electric customers to create a joint authority. Such resolution shall be approved by a majority of the members of the governing body of the public power district. Each public power district which will be a member of the joint authority must approve for membership every other district that will be a member of the joint authority.

(2) In determining whether or not the creation of a joint authority for such purpose is in the best interests of the public power districts and their electric customers, the governing body shall take into consideration, but shall not be limited to:

(a) Whether or not a separate entity may be able to finance the costs of a project or projects or provide financing for its members in a more efficient and economical manner;

(b) Whether or not a better financial market acceptance may result if one entity is responsible for issuing all of the bonds required for a project or projects or providing financing for its members in a timely and orderly manner; and

(c) Whether or not savings and other advantages may be obtained by providing a separate entity responsible for the acquisition, purchase, construction, ownership, and operation of a project or projects or for issuing bonds in order to make loans to its member districts.

(3) If the proposed creation of a joint authority is found to be in the best interests of two or more public power districts, the governing body of each public power district shall cause notice of its action to be published once a week for two consecutive weeks in a newspaper of general circulation within the operating area of each public power district. Any elector of the district affected by the action of the governing body of such public power district may, by action de novo, instituted in the district court for the county in which the principal office of such public power district is located, within twenty days following the last publication of the prescribed notice, challenge the action of the public power district on the grounds that creation of a joint authority is not in the best interest of that public power district.

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