(a) Two or more municipalities may merge or consolidate to form a single general law or home rule municipality, except a third class borough may not be formed through merger or consolidation.
(b) Two methods may be used to initiate merger or consolidation of municipalities:
(1) petition to the Local Boundary Commission under regulations adopted by the commission; or
(2) the local option method specified in AS 29.06.100 - 29.06.160.