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107.080 Construction contracts -- Bids -- Performance bond -- Wastewater collection project assessments -- Bonds.

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