107.200 Procedure by city where no bids received on offered bonds.
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/ky/chapter-107/107-200A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
If any city of the classes referred to in this chapter shall adopt the third ordinance and shall publicly solicit the submission of bids or proposals for the purchasing of its "improvement assessment bonds" for the project identified, and shall fail to receive a bid upon terms of price and/or interest coupon rate, or rates, conforming to the published notice and acceptable to the governing body, the bonds, or a portion of the bonds, may be awarded to the contractor, or contractors, at a price of not less than the minimum price permitted by the published notice, but only upon the following conditions:
(1)The entire bond issue authorized by the third ordinance may be awarded to the
contractor, or contractors, if it or they shall submit to, and obtain formal approval
by, the governing body of the city, of a written undertaking (approved as to form
and substance by the city's duly designated legal counsel):
(a)Agreeing to accept in full and agreed payment of the amount, or the aggregate
of the amounts, of their respective contracts, bonds as authorized by the third
ordinance equal in principal amount (or as near as may be practicable) to the
amount, or the aggregate of the amounts of their contracts (in which event the
bonds shall be the latest maturing and highest numbered of the bonds
authorized by the third ordinance); and
(b)Agreeing to pay to the city, in cash, the purchase price of the bonds to the
extent that the bonds exceed the aggregate amount of the contracts of the
contractor, or contractors, who are signatories of the written instrument; or
(2)Bonds equal to the amount, or amounts, of the contracts of the contractor, or
contractors, who are signatories of a written instrument agreeing to accept the same
in payment of the bonds, approved as to form and substance by the city's properly
designated legal counsel, may be awarded to a contractor, or contractors, in the
event the city is able to, and does, (within constitutional restrictions) appropriate
from available funds a sum in cash sufficient to defray all costs of the project, as
defined in this chapter, in excess of the amount of the construction contract, or the
aggregate of the several contracts. In that event, the sum so appropriated by the
governing body of the city shall be applied to the payment of the costs;
(3)In the event of procedure as set forth in either subsection
(1)or
(2)of this section,
the bonds awarded to the contractor, or contractors (other than those paid for in cash
as set forth in the foregoing subsection (1)), shall be placed by the city, in escrow,
with a responsible financial institution, with written instructions that the bonds may
be released to the contractor, or contractors, from time to time, but in principal
amount not exceeding seventy-five percent (75%) of the amount certified in writing
by the engineer, or engineers, to the escrow agent, and the city, to have been earned
by and payable to the identified contractor, or contractors, under the terms and
conditions of their respective contracts. Upon final approval and acceptance of the
project by the governing body, the reserved twenty-five percent (25%) of the bonds
may be released and delivered to the contractor, or contractors.