{"data":{"id":"us-ky/krs-107.080","jurisdiction":"us-ky","citation":"KRS 107.080","heading":"Construction contracts -- Bids -- Performance bond -- Wastewater","body":"collection project assessments -- Bonds.\n(1) Proposals for the construction of the project shall be solicited upon the basis of the\nsubmission of sealed competitive bids after advertisem ent, by publication pursuant\nto KRS Chapter 424. Upon or after the acceptance by the governing body of a bid,\nor combination of bids, the governing body may determine the principal amount of\nbonds to be issued for the proposed project, taking into account the amount of the\naccepted bid or bids, and all other costs of the project, as herein defined. Each\ncontract shall be supported by a performance bond for the full amount thereof, with\ngood surety to be approved by the governing body. In the construction of  a\nwastewater collection project by a metropolitan sewer district, if the provisions of\nKRS 107.070 are met, proposals for the construction of the project shall be solicited\nupon the basis of submission of sealed, competitive bids after advertisement by\npublication pursuant to KRS Chapter 424. The district may authorize assessment\nlevies, lump -sum payments and issuance of bonds for a project based upon\nestimates of construction costs or based upon partial bidding, if a determination is\nmade that the entire project may not be feasibly bid for construction prior to\nauthorization and issuance of bonds. Notwithstanding the foregoing, the project\nshall be constructed only upon or after the acceptance by the board of a competitive\nbid or a combination of competiti ve bids for construction of the project. Each\ncontract for construction shall be supported by a performance bond for the full\namount with good corporate surety to be approved by the board of the district.\n(2) After all costs of a wastewater collection proj ect undertaken by a metropolitan\nsewer district have been determined in accordance with this section the costs shall\nbe apportioned among the owners of benefited property by the method of\nassessment previously determined in the first ordinance and the seco nd ordinance.\nHowever, in determining the apportionment of individual costs for purposes of\nallowing the owners of benefited property the privilege of paying such assessment\nlevied in full on a lump -sum basis, the district shall exclude amounts required fo r\nthe creation of the debt service reserve fund, capitalized interest cost, and any bond\ndiscount which the district may allow in connection with the sale of bonds to\nprovide funds for the cost of construction not paid initially by the owners of\nbenefited properties on a lump -sum basis. In calculating the assessment amount to\nbe paid by a property owner on a lump-sum basis, the district shall take into account\nthe amount of interest the lump -sum payment may accrue in the trust account\nrequired by subsection (4) of this section between the time of the owner's payment\nand the time the construction of the collector portion of the project is completed and\nready for use by the assessed property and shall reduce the amount of the lump -sum\npayment accordingly.\n(3) The owners of benefited property in wastewater collection projects undertaken by a\nmetropolitan sewer district shall be notified in writing of the exact amount levied by\nthe district against their individual properties. Owners may pay the amount levied in\nfull within ninety (90) days. Owners shall be notified that if the costs of\nconstruction of the original project exceed assessments financed by both lump -sum\npayments and bond proceeds, additional assessments of costs will be made and that\nall owners who p aid the initial improvement benefit assessment on a lump -sum\nbasis must likewise pay any additional assessment on such basis. The statement\nshall also advise the owners that if the owners do not elect to pay the special\nimprovement benefit assessment in fu ll within the period of ninety (90) days from\nreceipt, the district shall issue bonds pursuant to KRS Chapters 76 and 107 for the\npurpose of providing the costs of construction of the project, including the debt\nservice reserve fund, if paid from bond proc eeds, capitalized interest costs, any\nbond discount, together with all other costs, as such term is defined in KRS\nChapters 76 and 107. The owners of benefited property shall also be advised that\nsuch bonds and their interest shall be amortized by annual i mprovement benefit\nassessment levied against all benefited properties, for which lump -sum payments\nhave not been paid, in accordance with the method of apportionment provided by\nthe first ordinance and the second ordinance.\n(4) At the conclusion of the nin ety (90) days permissive lump-sum payment period, the\ndistrict board in wastewater collection projects shall determine the aggregate\nprincipal amount of assessments paid in full by owners of benefited properties and\nshall deposit these moneys in a trust ac count to be used solely to pay the costs of\nconstruction of the project. These moneys shall not be disbursed until bond\nproceeds are available. The district board shall aggregate all unpaid improvement\nbenefit assessments for the purposes of determining th e principal amount of bonds\nto be issued by such district to provide the remaining costs of the project. The\ndistrict board also: (a) shall compute the debt service reserve fund in respect of such\nbonds, if such fund is to be capitalized from bond proceeds ; (b) shall determine the\nbond discount and capitalized interest which shall be applicable to the issue of\nbonds; and (c) shall proceed to complete the financing of the costs of construction\nof the project through the adoption of the third ordinance as pro vided in KRS\n107.090 and the sale of bonds authorized pursuant thereto. If, by reason of\nmiscalculation or unforeseen events, the proceeds of the bonds authorized plus\nlump-sum payments previously collected should prove to be insufficient to provide\nfor the completion of the project and full payment of all costs, the district shall be\nrequired to levy pro rata an additional assessment on owners of all benefited\nproperties. The district shall collect sufficient additional lump -sum payments and\nshall issue and sell sufficient additional bonds to make up the deficiency. Any such\nadditional bonds shall rank on a parity as to security and source of payment with the\nbonds originally authorized.","path":["KRS Chapter 107"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=27160","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:50:09Z","sha256":"777dc32717f0505f5b511634112de5b87c2208c300fdf2214d044cd92d569888","source_id":"us-ky","stale":false,"prev":"us-ky/krs-107.070","next":"us-ky/krs-107.085"},"notice":"GroundRules: Original legal text. Not legal advice."}