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019 of 2003 - confirming the modified and equalized assessment rolls and levying an assessment against certain pro • • 0 03-1 w Q 99-7 • ORDINANCE NO. 19 of 2003 AN ORDINANCE CONFIRMING THE MODIFIED AND EQUALIZED ASSESSMENT ROLLS AND LEVYING AN ASSESSMENT AGAINST CERTAIN PROPERTIES IN THE SALT LAKE CITY, UTAH SPECIAL IMPROVEMENT DISTRICT NO. 103009 (THE "DISTRICT"), FOR THE PURPOSE OF PAYING THE COSTS OF CONSTRUCTING IMPROVEMENTS ON CERTAIN STREETS AND PUBLIC RIGHTS- OF-WAY, INCLUDING EARTHWORK, INSTALLATION OF NEW WATER AND SEWER LINES AND STORM DRAINAGE FACILITIES, CONCRETE CURB, GUTTER, SIDEWALKS AND PAVEMENT, STREET LIGHTING, MEDIAN PARK STRIP WITH LANDSCAPING, TRAFFIC SIGNALS AND GRADING FOR CERTAIN MEDIANS AND OPTIONAL DRIVE APPROACHES AND OTHER MISCELLANEOUS WORK WHICH IS NECESSARY TO COMPLETE THE ABOVE IMPROVEMENTS; REAFFIRMING THE ESTABLISHMENT AND PROVIDING FOR THE FUNDING OF A SPECIAL IMPROVEMENT GUARANTY FUND; ESTABLISHING THE EFFECTIVE DATE OF THIS ORDINANCE; AND RELATED MATTERS. BE IT ORDAINED BY THE CITY COUNCIL OF SALT LAKE CITY, SALT LAKE COUNTY, UTAH: Section 1. Determination of Costs. All costs and expenses for the making of the improvements within the District, together with related costs, have been determined. Section 2. Approval of Assessment List; Findings. The City Council (the "Council") of Salt Lake City, Salt Lake County, Utah (the "City") hereby accepts and adopts the Findings and Recommendation of the Board of Equalization and Review. The Council confirms and adopts the equalized and modified assessment roll for the District, a copy of which is attached hereto as Exhibit"B" and incorporated herein by reference (the "Assessment List"). The Council has determined that the Assessment List, as adjusted and equalized, is just and equitable; that each piece of property to be assessed within the District will be benefited in an amount not less than the assessment to be levied against said property; and that no piece of property listed in the assessment list will bear more than its proportionate share of the cost of such improvements. Section 3. Levy of Assessments. The Council hereby levies an assessment upon the real property identified in the Assessment List. The assessments levied upon each parcel of property therein described shall be in the amount set forth in the Assessment List. The assessments hereby levied are for the purpose of paying the costs of constructing improvements on certain streets and public rights of way, including earthwork, installation of new water and sewer lines and storm drainage facilities, UT_DOCS_A#1125990 v1 3 concrete curb, gutter, sidewalks and pavement, street lighting, median park strip with landscaping, traffic signals and grading for certain medians and optional drive approaches and other miscellaneous work which is necessary to complete the above improvements; (collectively the "Improvements") in a proper and workmanlike manner. Said Improvements are more particularly described in the Assessment List. The assessments are hereby levied and assessed upon each of the parcels of real property described in the Assessment List according to the extent that they are specially benefited by the Improvements acquired or constructed within the District. The assessments are levied upon the parcels of land in the District at equal and uniform rates. Section 4. Cost of Improvements; Amount of Total Assessments. The total cost of the Improvements in the District is $7,255,353 including allowable related expenses. Of this total cost, the City's portion is $5,853,781. The City's portion for the District includes that part of the overhead costs for which an assessment cannot be levied, if any, and the cost of making the Improvements for the benefit of property against which an assessment may not be levied, if any. The amount to be assessed against property affected or benefited by the Improvements in the District is $1,401,572. These amounts do not exceed in the aggregate the sum of: (a) the total contract price or prices for the Improvements under contract duly let to the lowest and best responsible bidder therefor and a portion of the costs of engineering, designing and inspection; (b) the reasonable cost of utility services, maintenance, labor, materials or equipment supplied by the City, if any; (c) the property price, if any; (d) connection fees, if any; (e) the interest on any interim warrants issued against the District; and (f) overhead costs not to exceed fifteen percent (15%) of the sum of(a), (b), (c) and (d). Section 5. Method and Rate. The total assessment for the District is levied in accordance with the method set out in the Notice of Intention pertaining to the District. The applicable rate for each property was determined based on costs as set out in the preceding Section. Section 6. Payment of Assessments. (a) The whole or any part of the assessments for the District may be paid without interest within fifteen (15) days after this Ordinance becomes effective. Any part of the assessment not paid within such fifteen- (15) day period shall be payable over a period of ten (10) years from the effective date of this Ordinance in ten (10) substantially equal annual principal and interest installments. Interest on the unpaid balance of the assessment shall accrue at the rate of eight percent (8%) per annum until and unless special assessment bonds (the "Bonds") are issued for the District. After issuance of the Bonds the interest rate on unpaid assessment balances (unless delinquent rates apply) shall be the same rate as the net effective interest rate of the Bonds anticipated to be issued by the City. The first assessment installment payment date shall be on or about November 1, 2003. The remaining annual assessment installment payment dates shall be the anniversary dates of the first assessment installment payment date. UT_DOCS_A#1125990 v1 4 Interest shall accrue from the effective date of this Ordinance. Each assessment installment shall include one year's interest on the unpaid assessment amount. After the above-referenced fifteen- (15) day period, all unpaid installments of an assessment levied against any piece of property may be paid prior to the dates on which they become due, but any such prepayment must include an additional amount equal to the interest which would accrue on the assessment to the next succeeding date on which interest is payable on any special assessment bonds issued in anticipation of the collection of the assessments plus such additional amount as, in the opinion of the City Treasurer, is necessary to assure the availability of money to pay interest on the special assessment bonds as interest becomes due and payable plus any premiums which may be charged and become payable on redeemable bonds which may be called in order to utilize the assessments paid in advance. (b) If prepayment of an assessment, or any part thereof, arises out of a need of the property owner to clear the assessment lien from a portion (the "Release Parcel") of a parcel now being assessed (the "Assessed Parcel"), the assessment lien of the Release Parcel may be released by the Issuer, as follows: (i) The property owner shall submit to the City the legal description and tax identification number of the Release Parcel, together with the total acreage of said parcel. (ii) The property owner shall prepay an assessment applicable to the Release Parcel calculated by the City Engineer as follows: (the total assessment of the Assessed Parcel) x (a fraction, the numerator of which is the total acreage of the Release Parcel and the denominator of which is the total acreage of the Release Parcel, including the Release Parcel) x (125%). (c) The Treasurer or the Attorney for the Issuer must determine that the partial release of lien upon payment of the prepayment amount determined under (ii) above does not diminish the security of the Issuer based upon the amount of the remaining assessment of the Assessed Parcel compared with the value of the Assessed Parcel remaining to secure such assessment. For purposes of this subparagraph (c), security of the Issuer will not be considered diminished if the fair market value of the Assessed Parcel subject to the assessment (after release of the Release Parcel) equals or exceeds three times the sum of the remaining unpaid assessment on such Assessed Parcel plus any other unpaid assessment liens on such Assessed Parcel. In determining the value of the remaining land, the Treasurer is entitled to, but need not rely on, credible evidence or documentation presented by the owner of said property. (d) Any premiums and/or interest and administrative costs, if applicable, must also be paid for any prepayment as provided in subsection (f) herein. UT DOCS A#1125990 v1 5 w x For purposes of determining prepayment amounts provided above, regularly scheduled assessment payments shall not be taken into account. The regularly scheduled assessment payments previously made would not entitle the property owner to release a Release Parcel without such prepayment. (e) In the event all or any portion of the property assessed hereunder is subdivided into smaller parcels as evidenced by a subdivision plat approved by the Issuer and recorded at the County Recorder's office of Salt Lake County, the Issuer may elect, at its discretion, to allocate the assessment balance on the previously undivided property on a proportionate basis based on area. The required annual assessment installment payments for each subdivided parcel shall be allocated proportionately on an area basis so that the aggregate total of all of the annual assessment installments for each of the subdivided parcels will equal the total annual assessment installment for the previously undivided property. When an assessment lien is perfected for each of the subdivided parcels, the total assessment levied against the previously undivided property will be released having been replaced by the aggregate of the assessments allocated to each of the subdivided parcels. A release of the new assessment lien for a given subdivided parcel will be delivered by the Issuer at the time the assessment balance for that subdivided parcel is paid in full. (f) All unpaid installments of an assessment levied against any piece of property may be paid prior to the dates on which they become due, but any such prepayment to release the assessment lien of a Release Parcel must be calculated in accordance with Section 6(b) above. In addition all prepayments must include (i) an additional amount equal to the interest which would accrue on the prepaid assessment to the next succeeding date on which interest is payable on any special assessment bonds ("Assessment Bonds") to be issued pursuant to a bond resolution adopted by the Issuer (the "Bond Resolution"); (ii) such additional amount as, in the opinion of the Treasurer, is necessary to assure the availability of money to pay interest on the Assessment Bonds corresponding to the prepaid assessment as interest becomes due and payable; and (iii) any premiums which may be charged and become payable on the Assessment Bonds corresponding to the prepaid assessment which may be called on a redemption date in order to utilize the assessments paid in advance. The Treasurer shall calculate and deliver written notice of the total prepayment amount to the property owner upon the property owner's written request. Section 7. Default in Payment. If a default occurs in the payment of any installment of principal or interest, when due, the City may accelerate payment of the total unpaid balance of the assessment and declare the whole of the unpaid principal and interest then due to be immediately due and payable. Additional interest shall accrue and be paid on all amounts declared to be delinquent or accelerated and immediately due and payable at the same rate as is applied to delinquent real property taxes for the year in which the assessment installment becomes delinquent (the "Delinquent Rate"). In addition to interest charges at the Delinquent Rate, costs of collection, including attorneys fees and court costs ("Collection Costs"), as determined by the City Treasurer or required UT_DOCS_A#1125990 v1 6 by law shall be charged and paid on all amounts declared to be delinquent or accelerated and immediately due and payable. In lieu of accelerating the total assessment balance when one or more assessment installments become delinquent, the City may elect to bring an action to collect only the delinquent portion of the assessment plus interest at the Delinquent Rate and Collection Costs. Upon any default, the City Treasurer shall give notice, in writing, of the default to the owner of the property in default, as shown by the last available equalized assessment rolls. Notice shall be effective upon deposit of the notice in the U.S. Mail, postage prepaid, and addressed to the owner as shown on the last equalized assessment rolls for the City or on the official ownership records of the City. The notice shall provide for a period of thirty (30) days in which the owner shall pay the installments then due and owing together with accrued interest at the regular rate plus costs as determined by the City Treasurer. If the City elects to use the enforcement remedy involving acceleration, the Notice shall also declare that after the thirty (30) day period the City shall accelerate the then unpaid balance of the principal of the assessment to be immediately due and payable together with Collection Costs and interest on the entire unpaid balance to accrue from the date of delinquency at the Delinquent Rate. Thereafter, the City may commence foreclosure proceedings in the manner provided for actions to foreclose mortgage liens or trust deeds. If the City elects to utilize the trust deed enforcement remedy, the City Attorney shall designate a trust deed trustee for purposes of the enforcement action. If at the sale no person or entity shall bid and pay the City the amount due on the assessment plus interest and costs, the property shall be deemed sold to the City for these amounts. The City shall be permitted to bid at the sale. The remedies provided herein for the collection of assessments and the enforcement of liens shall be deemed and construed to be cumulative and the use of any one method or means of collection or enforcement shall not deprive the City of the use of any other method or means. The amounts of accrued interest and all costs of collection shall be added to the amount of the assessment up to the date of foreclosure sale. Section 8. Remedy of Default. If prior to the final date payment may be legally made under a final sale or foreclosure of property to collect delinquent assessment installments, the property owner pays the full amount of all unpaid installments which are past due and delinquent with interest at the Delinquent Rate, plus all approved or required costs, the assessment of said owner shall be restored so that the owner will have the right to make the payments in installments as if the default had not occurred. Section 9. Lien of Assessment. An assessment or any part or installment of it, any interest accruing and the penalties and costs of collection shall constitute a lien against the property upon which the assessment is levied on the effective date of this Ordinance. Said lien shall be superior to the lien of any trust deed, mortgage, mechanic's or materialman's lien or other encumbrance and shall be equal to and on a parity with the lien for general property taxes. The lien shall continue until the assessment and any interest, penalties and costs on it are paid, notwithstanding any sale of the property for or on account of a delinquent general property tax, special tax or other assessment or the UT_DOCS_A#1125990 v1 7 • * 4 issuance of a tax deed, an assignment of interest by the governing entity or a sheriffs certificate of sale or deed. Section 10. Special Improvement Guaranty Fund. The City does hereby reaffirm the creation of a special improvement guaranty fund (the "Guaranty Fund") and shall annually, so long as any special assessment bonds of the City remain outstanding, transfer to said fund each year such amount as shall equal the amount that a tax levy on all taxable property located within the City at the rate of .0002 will produce, either through a levy of a tax of not to exceed .0002 in any one year or by the issuance of general obligation bonds or by appropriation from other available sources. The Guaranty Fund shall include an allocation of ten percent (10%) of the outstanding Bonds of this District, but the entire available balance in the Guaranty Fund shall be for the purpose of guaranteeing to the extent of such fund the payment of special assessment bonds and interest thereon issued against local improvement districts for the payment of local improvements therein, all in the manner and to the extent provided by the laws of the State of Utah. When the Guaranty Fund has a balance equal to ten percent (10%) of the Outstanding Bonds of this District plus an allocation as required by the assessment ordinance for each of the other City special improvement districts with bonds outstanding, the funding requirement will be deemed to have been met and future funding or transfers will not be required unless the balance drops below the aggregate allocation level. Section 11. Contestability. No assessment shall be declared void or set aside in whole or in part in consequence of any error or irregularity which does not go to the equity or justice of the assessment or proceeding. Any party who has not waived his objections to same as provided by statute may commence a civil action against the City to enjoin the levy or collection of the assessment or to set aside and declare unlawful this Ordinance. Such action must be commenced and summons must be served on the City not later than 30 days after the effective date of this Ordinance. This action shall be the exclusive remedy of any aggrieved party. No court shall entertain any complaint which the party was authorized to make by statute but did not timely make or any complaint that does not go to the equity or justice of the assessment or proceeding. After the expiration of the 30-day period provided in this section: (a) The special assessment bonds issued or to be issued against the District and the assessments levied in the District shall become incontestable as to all persons who have not commenced the action provided for in this section; and (b) No suit to enjoin the issuance or payment of the bonds, the levy, collection or enforcement of the assessment, or in any other manner attacking or questioning the legality of the bonds or assessments may be instituted in this state, and no court shall have authority to inquire into these matters. UT_DOCS_A#1125990 v1 8 Section 12. Notice to Property Owners. The City Treasurer is hereby authorized and directed to give notice of assessment by mail to the property owners in the District. Said notice shall, among other things, state the amount of the assessment and • the terms of payment. A copy of the form of notice of assessment is available for examination upon request at the office of the City Recorder. Section 13. All Necessary Action Approved. The officials of the City are hereby authorized and directed to take all action necessary and appropriate to effectuate the provisions of this Ordinance. Section 14. Repeal of Conflicting Provisions. All ordinances or parts thereof in conflict with this Ordinance are hereby repealed. Section 15. Publication of Ordinance. An emergency is hereby declared, the preservation of peace, health and safety of the City and the inhabitants thereof so requiring. Immediately after its adoption, this Ordinance shall be signed by the Mayor and City Recorder and shall be recorded in the ordinance book kept for that purpose. This Ordinance shall be published once in the Deseret Morning News, a newspaper published and having general circulation in the City, and shall take effect immediately upon its passage and approval and publication as required by law. • UT DOCS A#1125990 v1 9 PASSED AND APPROVED by the City Council of Salt Lake City, Utah this April 22, 2003. /S/ Carlton Christensen Chair ATTEST: /S/ Deputy City Recorder ( SEAL) UT DOCS A#1125990 v1 10 4. ‘ The City Treasurer was thereupon authorized to mail to the property owners in the District the foregoing notice of special assessment as hereinbefore provided. After the transaction of other business not pertinent to the foregoing matter, the meeting was on motion duly made, seconded and carried, adjourned. Chair ATTEST: o Deputy City ecorder +�,c , a''...F'~}}�__4 � A APPROVED AS TO FORM ..t � �+ Salt Lake City Attorneys Office '� I Date zj— 1 v 1 ire 1 ' ky,,Pi''-r �R"�gs:r UT_DOCS_A#1125990 v1 11 t PRESENTATION TO THE MAYOR The foregoing ordinance was presented to the Mayor for his approval or disapproval on April , 2003. I Coutt,1/44, hair MAYOR'S APPROVAL OR DISAPPROVAL The foregoing ordinance is hereby approved April , 2003. Ross C. Anderson Mayor UT_DOCS_A#1125990 v1 12 . i i_ 4 STATE OF UTAH ) . ss. COUNTY OF SALT LAKE ) I, Chris Meeker, the duly appointed and qualified Deputy City Recorder of Salt Lake City, Salt Lake County, Utah, do hereby certify that the above and foregoing is a full, true and correct copy of the record of proceedings had by the City Council of Salt Lake, Salt Lake County, Utah at its meeting held on April 22, 2003 insofar as the same relates to or concerns Salt Lake City, Utah Special Improvement District No. 103009 as the same appears of record in my office. I further certify that the Ordinance levying the special assessments was recorded by me in the official records of Salt Lake City on April 22, 2003. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of Salt Lake City this April 22, 2003. Deputy ity Rec rder ( SEAL) Av' ply UT DOCS A#1125990 v1 13 '� ' a STATE OF UTAH ) AFFIDAVIT OF MAILING : ss. NOTICE OF ASSESSMENT COUNTY OF SALT LAKE ) I, Daniel Mule, the duly appointed, qualified City Treasurer of Salt Lake City, Salt Lake County, Utah, do hereby certify that on afvwL 30, 20o 3 , 2003, I caused to be mailed a Notice of Assessment to each property owner in Salt Lake City, Utah Special Improvement District No. 103009 by United States Mail, postage prepaid, at the last known address of such owner. • IN WITNESS WHEREOF, I have hereunto set my hand and affixed the corporate seal of Salt Lake City, Salt Lake County,Utah `"`tJ ,'J(I ?,v , 2003. i pOf v.J.( a . 7' City Treasurer ( S_AAL)_, . ' fr ir , ,Y l. t°>E<1f UT_DOCS_A#1125990 v1 14 • 4 �♦ S PROOF OF PUBLICATION Attached to this page is the Proof of Publication, indicating by the affidavit of the publisher that the said Ordinance levying the special assessments which was contained in the Ordinance adopted by the City Council on April 22, 2003, was published one time in the Deseret Morning News. UT_DOCS_A#1125990 v1 15 , k., EXHIBIT"A" CERTIFICATE OF COMPLIANCE WITH OPEN MEETING LAW I, Chris Meeker, the undersigned Deputy City Recorder of Salt Lake City, Salt Lake County, Utah (the "City"), do hereby certify, according to the records of the City in my official possession, and upon my own knowledge and belief, that in accordance with the requirements of Section 52-4-6(2), Utah Code Annotated 1953, as amended, I gave not less than twenty-four (24) hours public notice of the agenda, date, time and place of the April 22, 2003, public meeting held by the City as follows: (a) By causing a Notice, in the form attached hereto as Schedule"A", to be posted at the City's offices at 451 South State Street, Salt Lake City, Utah on April , 2003, at least twenty-four (24) hours prior to the convening of the meeting, said Notice having continuously remained so posted and available for public inspection until the completion of the meeting; and (b) By causing a copy of such Notice, in the form attached hereto as Schedule"A", to be delivered to the Deseret Morning News on April , 2003, at least twenty-four(24) hours prior to the convening of the meeting. IN WITNESS WHEREOF, I have hereunto subscribed my official signature this April 22, 2003. CITY..4 ° tyRecorder ( SEs •Vpi). s fir`An !i,*. UT DOCS A#1125990 v1 A-1 . SCHEDULE "A" Notice of Meeting UT DOCS A#1125990 v1 A-2 f - EXHIBIT"B" ASSESSMENT LIST [Available for review at the offices of the City Recorder or City Engineer] UT_DOCS_A#1125990 v1 B-1 Salt Lake City, Utah April 22, 2003 A regular meeting of the City Council of Salt Lake City, Salt Lake County, Utah, was held on Tuesday, April 22, 2003, at the hour of 7:00 p.m. at the offices of the City Council at 451 South State Street, Salt Lake City, Utah, at which meeting there were present and answering to roll call the following members who constituted a quorum: Carlton Christensen Chair Jill Remington Love Vice Chair Nancy Saxton Councilmember Van Blair Turner Councilmember Eric Jergensen Councilmember David L. Buhler Councilmember Dale Lambert Councilmember Also present: Ross C. Anderson Mayor Edwin P. Rutan II City Attorney Chris Meeker Deputy City Recorder Absent: None The City Council has considered the Findings and Recommendation of the Board of Equalization and Review for the special improvement district known as Salt Lake City, Utah Special Improvement District No. 103009 (the "District") and has reviewed minutes of the hearings of that Board and determined to approve the modified and equalized assessment rolls as recommended by the Board of Equalization and Review and levy assessments as set out therein. UT_DOCS_A#1125990 v1 1 • 4 The following assessment ordinance was then introduced in writing, was fully discussed, and pursuant to motion duly made by Councilmember Love and seconded by Councilmember Buhler, adopted by the following vote: YEA: Unanimous NAY: None The ordinance was then signed by the Chair, presented to and approved by the Mayor and recorded by the City Recorder in the official records of Salt Lake City, Utah. The ordinance is as follows: UT_DOCS_A#1125990 v1 2