2014 Kentucky Revised Statutes
CHAPTER 107 - MUNICIPAL IMPROVEMENTS -- ALTERNATE METHODS
107.080 Construction contracts -- Bids -- Performance bond -- Wastewater collection project assessments -- Bonds.
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<![CDATA[107.080 Construction contracts -- Bids -- Performance bond -- Wastewater
collection project assessments -- Bonds.
(1)
(2)
(3)
Proposals for the construction of the project shall be solicited upon the basis of
the submission of sealed competitive bids after advertisement, by publication
pursuant to KRS Chapter 424. Upon or after the acceptance by the governing
body of a bid, or combination of bids, the governing body may determine the
principal amount of bonds to be issued for the proposed project, taking into
account the amount of the accepted bid or bids, and all other costs of the
project, as herein defined. Each contract shall be supported by a performance
bond for the full amount thereof, with good surety to be approved by the
governing body. In the construction of a wastewater collection project by a
metropolitan sewer district, if the provisions of KRS 107.070 are met, proposals
for the construction of the project shall be solicited upon the basis of
submission of sealed, competitive bids after advertisement by publication
pursuant to KRS Chapter 424. The district may authorize assessment levies,
lump-sum payments and issuance of bonds for a project based upon estimates
of construction costs or based upon partial bidding, if a determination is made
that the entire project may not be feasibly bid for construction prior to
authorization and issuance of bonds. Notwithstanding the foregoing, the project
shall be constructed only upon or after the acceptance by the board of a
competitive bid or a combination of competitive bids for construction of the
project. Each contract for construction shall be supported by a performance
bond for the full amount with good corporate surety to be approved by the
board of the district.
After all costs of a wastewater collection project undertaken by a metropolitan
sewer district have been determined in accordance with this section the costs
shall be apportioned among the owners of benefited property by the method of
assessment previously determined in the first ordinance and the second
ordinance. However, in determining the apportionment of individual costs for
purposes of allowing the owners of benefited property the privilege of paying
such assessment levied in full on a lump-sum basis, the district shall exclude
amounts required for the creation of the debt service reserve fund, capitalized
interest cost, and any bond discount which the district may allow in connection
with the sale of bonds to provide funds for the cost of construction not paid
initially by the owners of benefited properties on a lump-sum basis. In
calculating the assessment amount to be paid by a property owner on a
lump-sum basis, the district shall take into account the amount of interest the
lump-sum payment may accrue in the trust account required by subsection (4)
of this section between the time of the owner's payment and the time the
construction of the collector portion of the project is completed and ready for
use by the assessed property and shall reduce the amount of the lump-sum
payment accordingly.
The owners of benefited property in wastewater collection projects undertaken
by a metropolitan sewer district shall be notified in writing of the exact amount
levied by the district against their individual properties. Owners may pay the
amount levied in full within ninety (90) days. Owners shall be notified that if the
costs of construction of the original project exceed assessments financed by
both lump-sum payments and bond proceeds, additional assessments of costs
(4)
will be made and that all owners who paid the initial improvement benefit
assessment on a lump-sum basis must likewise pay any additional assessment
on such basis. The statement shall also advise the owners that if the owners
do not elect to pay the special improvement benefit assessment in full within
the period of ninety (90) days from receipt, the district shall issue bonds
pursuant to KRS Chapters 76 and 107 for the purpose of providing the costs of
construction of the project, including the debt service reserve fund, if paid from
bond proceeds, capitalized interest costs, any bond discount, together with all
other costs, as such term is defined in KRS Chapters 76 and 107. The owners
of benefited property shall also be advised that such bonds and their interest
shall be amortized by annual improvement benefit assessment levied against
all benefited properties, for which lump-sum payments have not been paid, in
accordance with the method of apportionment provided by the first ordinance
and the second ordinance.
At the conclusion of the ninety (90) days permissive lump-sum payment period,
the district board in wastewater collection projects shall determine the
aggregate principal amount of assessments paid in full by owners of benefited
properties and shall deposit these moneys in a trust account to be used solely
to pay the costs of construction of the project. These moneys shall not be
disbursed until bond proceeds are available. The district board shall aggregate
all unpaid improvement benefit assessments for the purposes of determining
the principal amount of bonds to be issued by such district to provide the
remaining costs of the project. The district board also: (a) shall compute the
debt service reserve fund in respect of such bonds, if such fund is to be
capitalized from bond proceeds; (b) shall determine the bond discount and
capitalized interest which shall be applicable to the issue of bonds; and (c)
shall proceed to complete the financing of the costs of construction of the
project through the adoption of the third ordinance as provided in KRS 107.090
and the sale of bonds authorized pursuant thereto. If, by reason of
miscalculation or unforeseen events, the proceeds of the bonds authorized
plus lump-sum payments previously collected should prove to be insufficient to
provide for the completion of the project and full payment of all costs, the
district shall be required to levy pro rata an additional assessment on owners of
all benefited properties. The district shall collect sufficient additional lump-sum
payments and shall issue and sell sufficient additional bonds to make up the
deficiency. Any such additional bonds shall rank on a parity as to security and
source of payment with the bonds originally authorized.
History: Amended 1976 (1st Extra. Sess.) Ky. Acts ch. 13, sec. 15. -- Amended
1966 Ky. Acts ch. 239, sec. 121. -- Created 1956 Ky. Acts ch. 239, sec. 8.
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