Yes service disconnect
sorry, yes feeder on load side of service disconnect. And 60 kw is rediculous considering 400a spit service, 200a panel x2 full of mainly 20a circuits as the entire house is gas. But the oss claims it’s “necessary”. Glad I’m not paying that bill. Not really sure what you mean by “doesn’t have to be service entrance rated”. Just was wondering if there is a code reason we could not do it.
You should look at the actual connected load, check the poco bills, Your connected load is likely 100 amps. A 60 KW is way oversized and will run unloaded, a generator needs to be loaded 60-75%, heat up the unit, oil, etc
A common generator ATS install method is to go straight from the meter to the ATS, so the ATS is called service entrance rated, Its a nicer install when there is a disconnect ahead of the ATS.
With your split service and 2 200 amp panels you will either need a 400 amp TS $$$, or put all the genny loads on one 200 A panel, with one ATS