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110 of 1985 - Special Assessment Bonds Special Assessment District eso�u��o� 1!o aF IRIS" �Q4a- 3s� Salt Lake City, Utah September 10, 1985 A regular meeting of the City Council of Salt Lake City, Salt Lake County, Utah, was held on Tuesday, the loth day of September, 1985, at the hour of 6:00 o'clock p.m. at the regular meeting place of said City Council, at which meeting there were present and answering roll call the following members who constituted a quorum: Sydney Reed Fonnesbeck Chairperson Grant Mabey Vice Chairperson Edward Parker Councilmember Ronald J. Whitehead Councilmember Tom Godfrey Councilmember Earl F. Hardwick Councilmember Roselyn Kirk Councilmember Also present: Palmer DePaulis Mayor Albert E. Haines Chief Administrative Officer Roger Cutler City Attorney Kathryn Marshall City Recorder Absent: None After the meeting had been duly called to order, and the minutes of the preceding meeting approved, the Chairperson stated that the meeting was called for the purpose, among other things, of authorizing the issuance of $104,000 Special Assessment Bonds Series 1985 (the "Bonds") of Salt Lake City, Utah Special Improvement District, Curb and Gutter No. 38-686 (the "District"). Councilmember Mabey then introduced and moved the adoption of the following resolution: RESOLUTION NO. 110 A RESOLUTION ISSUING $104,000 SPECIAL ASSESSMENT BONDS, SERIES 1985 (THE "BONDS") OF SALT LAKE CITY, UTAH, SPECIAL IMPROVEMENT DISTRICT, CURB AND GUTTER NO. 38-686, PRESCRIBING THE FORM OF BOND AND INTEREST RATES, MATURITY AND DENOMINATION OF SAID BONDS; PROVIDING FOR THE CONTINUANCE OF A GUARANTY FUND AS PROVIDED BY STATUTE; AND PROVIDING WHEN THIS RESOLUTION SHALL BE IN EFFECT. WHEREAS, the City Council of Salt Lake City, Utah (the "Issuer"), has heretofore adopted proceedings for the construction of improvements in Salt Lake City, Utah, Special Improvement District, Curb and Gutter No. 38-686 (the "District"), and has adopted and approved the Ordinance of the District confirming the assessment roll for such improvements on the 4th day of June, 1985; and WHEREAS, notice of assessments to property owners in the District has been published in accordance with the requirements of the laws of the State of Utah and the -2- ordinances of the Issuer, and notice of assessment has been mailed by the City Treasurer to all the owners of property assessed in the District; and WHEREAS, the total cost of the improvements was $934,125.99 of which the Issuer's portion was $791,221.74 that during the fifteen-day period following the effective date of the Ordinance levying the assessment, some property owners in the District have paid their assessments in full. These cash payments, together with adjustments and uncollectables, total $38,904.25 leaving an amount to be paid through the issuance of bonds or from funds provided by the Issuer of $104,000; WHEREAS, Prudential Bache Securities, Inc. of Salt Lake City, Utah, has submitted its bid to purchase the Bonds upon the terms and conditions as herein set forth; and WHEREAS, the City Council on September 10, 1985, by Resolution No. 111, awarded the sale of the Bonds to Prudential Bache Securities, Inc. of Salt Lake City, Utah, having determined that it is in the best interest of the Issuer to accept said offer as the lowest bid of a responsible bidder. NOW, THEREFORE, Be It Resolved by the City Council of Salt Lake City, Utah: -3- Section 1. All the proceedings heretofore taken and adopted for the creation of the District and for the construction of improvements therein and the assessment of a part of the cost of constructing such improvements on and against the private properties in the District shall be and the same are hereby ratified, approved and confirmed. No assessment will exceed the benefit to be derived from the improvements by the piece of property assessed,and no parcel of property will bear more than its proportionate share of the cost of the improvements to be made. Section 2. For the purpose of payment of the cost and expense of such improvements against the funds created and to be collected from such regular assessments, there shall be issued $104,000 Special Assessment Bonds of the District. The Bonds will be dated October 1, 1985, will be issued in denominations of $1,000 and $5,000 or any integral multiple thereof, will be in form of fully registered bonds, will mature serially on October 1 of the years and in the amounts shown below, and will bear interest from October 1, 1985 payable annually on October 1 as follows: -4- Interest Maturity Amount Rate 1986 $10,000 10.75 1987 10,000 10.75 1988 10,000 10.75 1989 10,000 10.75 1990 10,000 9.875 1991 10,000 8.75 1992 11,000 8.75 1993 11,000 9.00 1994 11,000 9.25 1995 11,000 9.25 The Bonds of each issue maturing after October 1, 1992 are callable for redemption at the option of the City Council on October 1, 1992 or on any interest payment date thereafter prior to maturity, in whole or in part, in inverse numerical order upon not less than thirty (30) days prior to notice, at a price equal to the principal amount thereof, plus accrued interest to the date of redemption and a premium of two percent (2%) of the principal amount of each Bond so called for redemption prior to maturity. Both principal and interest shall be payable at Zions First National Bank, One South Main Street, Salt Lake City, Utah. Section 3. The Bonds shall be in substantially the following form: -5- (FORM OF BOND) UNITED STATES OF AMERICA STATE OF UTAH COUNTY OF SALT LAKE SALT LAKE CITY, UTAH SPECIAL IMPROVEMENT DISTRICT CURB AND GUTTER NO. 38-686 SPECIAL ASSESSMENT BONDS SERIES 1985 No. R- $ Interest Rate Maturity Date Original Issue Date October 1, 1985 REGISTERED OWNER: PRINCIPAL SUM: DOLLARS Salt Lake City, Salt Lake County, Utah (the "Issuer"), a political subdivision and body politic duly organized and existing under the Constitution and laws of the State of Utah, for value received, hereby acknowledges itself to be indebted and promises to pay to the Registered Owner named above or registered assigns, out of the special fund hereinbelow designated and not otherwise the Principal Sum specified above on the Maturity Date specified above with interest thereon until paid at the Interest Rate specified above, payable October 1, 1986, and annual thereafter on the first day of October of each succeeding year, until said principal sum is paid, except as the provisions hereinafter set forth with respect to redemption of this Bond prior to -6- maturity may become applicable hereto. Principal shall be payable upon surrender of this Bond at the principal offices of Zions First National Bank, One South Main Street, Salt Lake City, Utah 84111 (the "Paying Agent"), or its successors. interest on this Bond shall be payable by check or draft mailed to the Registered Owner hereof at his address as it appears on the registration books of the Paying Agent, who shall also act as the Registrar for the Issuer, or at such other address as is furnished to the Paying Agent in writing by such Registered Owner. Interest herein shall be deemed to be paid by the Paying Agent when mailed. Both principal and interest shall be payable in lawful money of the United States of America. Interest on this Bond shall accrue at the rate shown above from the October 1, 1985 date hereof and shall be payable annually on October 1 of each year until and including the Maturity Date shown above. This Bond is one of a series of twenty-four (24) Special Assessment Bonds (in denominations of $1,000 and $5,000) numbered consecutively from R-1 to R-24, both inclusive, issued by the Issuer, all of which are of like date and aggregate the total amount of $104,000. The Bonds of each issue maturing after October 1, 1992 are callable for redemption at the option of the City Council on October 1, 1992 or on any interest payment date thereafter -7- prior to maturity, in whole or in part, in inverse numerical order upon not less than thirty (30) days prior to notice, at a price equal to the principal amount thereof, plus accrued interest to the date of redemption and a premium of two percent (2%) of the principal amount of each Bond so called for redemption prior to maturity. The Bonds are issued as fully registered Bonds. Subject to the limitations and upon payment of the charges provided in the resolution adopted by the Issuer on September 10, 1985 (the "Resolution"), registered Bonds may be exchanged for a like aggregate principal amount of registered Bonds of other authorized denominations of the same series and the same maturity. This Bond is transferable by the Registered Owner hereof in person or by his attorney duly authorized in writing at the office of the Registrar in Salt Lake City, Utah, but only in the manner, subject to the limitations and upon payment of the charges provided in the Resolution and upon surrender and cancellation of this Bond. Upon such transfer a new registered Bond or Bonds of the same series and the same maturity and of authorized denomination or denominations for the same aggregate principal amount will be issued to the transferee in exchange therefor. -8- The Issuer and the Paying Agent may deem and treat the Registered Owner hereof as the absolute owner hereof (whether or not this Bond shall be overdue) for the purpose of receiving payment of or on account of principal hereof, premium, if any, and interest due hereon and for all other purposes and neither Issuer nor Paying Agent shall be affected by any notice to the contrary. Payment of this Bond and the interest thereon shall be made from, and as security for such payment there is pledged the Special Assessment Fund of Salt Lake City, Utah Special Improvement District, Curb and Gutter No. 38-686 (the "District"), containing the receipts derived by the Issuer from the regular assessments levied upon the property included in the District by the Assessment Ordinance adopted by the Issuer which ordinance became effective on June 4, 1985, for the purpose of paying the costs of constructing improvements on certain streets within Salt Lake City, Utah, consisting of the paving of streets with bituminous surface course place on compacted gravel base; constructing a drainage system, constructing curb and gutter and sidewalk where it does not exist; removing trees where they are obstructing new improvements, removing all existing non- conforming improvements, constructing drive approaches from the new curb and gutter to the street edge of sidewalk and to complete the improvements in a workmanlike manner in the -9- District under, by virtue of and in full conformity with the Constitution and laws of the State of Utah and certain ordinances and resolutions of the Issuer duly passed and made law thereof prior to the issuance hereof. It is hereby certified that a Special Improvement Guaranty Fund has been created by ordinance as authorized by Utah statutes, and the Issuer agrees that at all times during the life of this Bond and until payment thereof in full, said fund shall be at all times maintained as therein required. This Bond is not a general obligation of the Issuer but is payable exclusively out of said Special Assessment Fund and said Special Improvement Guaranty Fund. The Issuer shall not be held liable for the payment of this Bond, except to the extent of the Funds created and received by said regular assessments and to the extent of its Special Improvement Guaranty Fund; but the Issuer shall be held responsible for the lawful levy of all regular assessments, for the creation and maintenance of the Special Improvement Guaranty Fund as provided by law, and for faithful accounting, collection, settlement, and payment of the assessments and for the moneys of said fund. The special assessments made and levied to defray said cost, with accruing interest thereon, and the cost of collection of the assessments constitute a lien upon and against the property upon which such assessments were made -10- and levied from and after June 4, 1985, the date upon which the ordinance levying such assessments became effective, which lien is superior to the lien of any trust deed, mortgage, mechanic's or materialman's lien, or other encumbrance. Said lien is equal to and on a parity with the lien for general property taxes and shall continue until the assessments and interest thereon are paid, notwithstanding any sale of the property for or on account of a general property tax, regular tax, other assessment, or the issuance of an auditor's deed. It is hereby further certified, recited and declared that all acts, conditions and things essential to the validity of the Bond exist, have happened, and have been done in due time, form and manner as required by law, and that the total issue of regular assessment bonds of the Issuer for the District, including this Bond, does not exceed the amount authorized by law nor the regular assessment levied to cover the cost of the improvements in the District, and that all of the regular assessment has been lawfully levied. This Bond shall not be valid or become obligatory for any purpose nor be entitled to any security or benefit under the Resolution until the Registrar's Certificate of Authentication on this Bond shall have been manually signed by the Registrar. -11- IN WITNESS WHEREOF, the Issuer has caused this Bond to be signed by the facsimile signature of its Mayor and countersigned by the facsimile signature of its City Recorder, with the imprinted or facsimile seal of the Issuer affixed hereto. (facsimile signature) Mayor Countersigned: (facsimile signature) City Recorder ( S E A L ) -12- (FORM OF REGISTRAR'S CERTIFICATE OF AUTHENTICATION) REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the bonds described in the within- mentioned Resolution. ZIONS FIRST NATIONAL BANK, as Registrar By Authorized Officer (Form for Transfer) FOR VALUE RECEIVED, , the undersigned, hereby sells, assigns and transfers unto (Tax Identification or Social Security No. ) the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. DATED: NOTICE: The signature to this assignment must correspond with the name as it appears on the face of the Bond in every particular, without alteration or enlargement or any change whatever. Signature guaranteed: NOTICE: Signature(s) must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. -13- Section 4. The Bonds shall be signed by the facsimile signature of the Mayor and countersigned by the facsimile or manual signature of the City Recorder, with the imprinted or facsimile seal of the Issuer affixed. The City Council does hereby ratify, approve and confirm the execution of the Bonds by the said officers and the City Treasurer is hereby authorized to issue and deliver the Bonds to the purchaser thereof, its agents or assigns, on receipt of the purchase price therefor. Section 5. The sale of the Bonds to Prudential Bache Securities, Inc. of Salt Lake City, Utah, at the price of $104,000 in accordance with the terms of the bid submitted by the purchaser on September 10, 1985 is hereby in all respects ratified and confirmed. The Bonds shall be delivered to the purchaser as soon as they may be legally issued, upon receipt by the City Treasurer of the agreed purchase price therefor. Section 6. Zions First National Bank, One South Main Street, Salt Lake City, Utah 84111, is hereby designated and has consented to act as the Paying Agent and Registrar for and in respect to the Bonds. The Issuer hereby covenants and agrees to cause the necessary arrangements to be made through the Paying Agent and to be thereafter continued for the designation of any additional or successor Paying Agent and -14- for the making available of funds hereunder for the payment of such of the Bonds as shall be presented when due at the principal office of said additional successor Paying Agents. Section 7. The Issuer shall cause books for the registration and for the transfer of the Bonds to be kept by the Paying Agent as Registrar. Upon surrender for transfer of any Bond at the office of the Registrar, duly endorsed by the Registered Owner or his attorney duly authorized in writing, the Issuer shall execute and deliver in the name of the transferee or transferees a new fully registered Bond or Bonds for a like aggregate principal amount. Fully registered Bonds may be exchanged at the principal office of the Registrar for a like aggregate principal amount of fully registered Bonds of other authorized denominations of the same series and the same maturity. The Issuer shall execute and the Registrar shall deliver Bonds which the bondholder making the exchange is entitled to receive, bearing numbers not contemporaneously then outstanding. The execution by the Issuer of any Bond of any denomination shall constitute full and due authorization of such denomination, and the Registrar shall thereby be authorized to deliver such Bond. The Registrar shall not be required to transfer or exchange any Bond during the period of fifteen (15) days next preceding any interest payment date of such Bond. -15- The person in whose name a Bond shall be registered shall be deemed and regarded as the absolute owner thereof for all purposes, and paying for or on account of either principal or interest on any such Bond shall be made only to or upon the written order of the Registered Owner thereof or his legal representative, but such registration may be changed as hereinabove provided. All such payments shall be valid and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. In each case, the Registrar shall require the payment by the bondholder requesting exchange or transfer, of any tax or other governmental charge required to be paid with respect to such exchange or transfer. Any notice mailed as provided in this Section shall be conclusively presumed to have been duly given, whether or not the Registered Owner receives the notice. Section 8. The City Treasurer shall be and hereby is authorized and empowered, and it shall be her duty to receive and collect all assessments levied to pay the cost of said improvements, the installments thereon, the interest thereon, and the penalties accrued, including without limiting the generality of the foregoing, the whole of the unpaid principal, interest and penalties accrued which become due and payable immediately because of the failure to pay any installment whether of principal or interest, when due, and -16- to pay and disburse such payments to the person or persons lawfully entitled to receive the same in accordance with the laws of the State of Utah and all the ordinances and resolutions of the Issuer heretofore or to be hereafter adopted. All moneys constituting the payment of principal and interest shall be placed in a regular fund to be designated "Special Assessment Fund of Salt Lake City, Utah Special Improvement District, Curb and Gutter No. 38-686 ("Special Assessment Fund"), and shall be used for the purpose of paying the principal of and the interest on Special Assessment Bonds of the District and for no other purpose whatsoever, and as security for such payment, said fund is hereby pledged. Moneys deposited in the Special Assessment Fund may be invested in the same type of investments as moneys in the Guaranty Fund may be invested, all as provided in Section 9 herein; provided, however, that any moneys remaining in the Special Improvement Fund for more than twelve (12) months ay be so invested only upon the City Treasurer obtaining an opinion of nationally recognized municipal bond counsel to the effect that such investment will not adversely affect the exclusion from federal income taxes of interest on and of the -17- Special Assessment Bonds, all in accordance with Section 103(c) of the Internal Revenue Code and the regulations promulgated thereunder. Section 9. The provisions of Section 6 of the Assessment Ordinance adopted and approved by the Issuer, on the 4th day of June, 1985, in reference to a Special Improvement Guaranty Fund is hereby readopted and the Issuer agrees with the holder of the Bonds herein authorized that it will, until the payment of the Bonds in full and the interest thereon has been paid, provide amounts to be transferred to the Special Improvement Guaranty Fund equal each year to such amount as a tax levy of one mill on all property within the Issuer will produce until the Special Improvement Guaranty Fund is equal to not less than forty percent (40%) of the amount of all outstanding regular improvements bonds of all regular improvement districts of the Issuer issued prior to March 31, 1981, and twenty-five percent (25%) of the amount of all outstanding regular improvement bonds of all regular improvement districts of the Issuer issued on or after March 30, 1981, and thereafter, the Issuer will transfer to such fund such amounts at least yearly as may be required to maintain or replenish such Funds to such percentage. The Special Improvement Guaranty Fund shall be maintained -18- separate and apart from other municipal funds and shall be used and applied only as provided by the laws of the State of Utah. The funds on deposit in the guaranty fund shall be invested either in ( i ) demand deposits and time certificates of deposit of federally insured depositories of the State of Utah, , ( ii ) bonds or other evidence of indebtedness of the United States of America or any of its agencies or instrumentalities when these obligations are guaranteed as to principal and interest by the United States of America, or ( iii ) repurchase agreements with any federally insured bank or savings and loan association in the State of Utah, acting as principal or agent, for securities of the United States of America or other evidences of indebtedness of like quality. Section 10 . Should there be insufficient money in the Special Assessment Fund to pay all of the interest falling due at one time and the principal amount thereof due, the said interest and principal shall be paid from the Guaranty Fund to the extent that there is sufficient money in the Guaranty Fund for this purpose, and the Bonds are payable exclusively from the regular assessments levied for said purpose and the Special Improvement Guaranty Fund. Section 11 . The assessments, any interest accruing on the assessments and the penalties and costs of collection of the assessment shall continue to constitute and are hereby -19- declared to be a lien against the properties upon which the assessment is levied within the District from and after June 4, 1985, the date on which the ordinance levying the regular assessments became effective, which 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. Such lien shall continue until the assessment and any interest, penalties and costs thereon are paid, notwithstanding any sale of the property for or on account of a general property tax, regular tax, other assessment, or the issuance of an auditor ' s deed. Section 12 . The Funds hereinabove referred to shall be kept separate and apart from each other and from any other funds of the Issuer and shall, from time to time as they are accumulated, be deposited in such bank or banks as are designated as depositories of public moneys for funds of the Issuer under the depository laws of the State of Utah for the deposit of public funds . Section 13. Default in the payment of any installment of principal or interest of said assessment when due shall cause the whole of the unpaid principal or interest to become due and payable immediately and the whole amount of the unpaid principal shall thereafter draw interest at the rate of 18% per annum until paid. The Issuer covenants and agrees -20- that it will proceed with due diligence to place in operation the procedure necessary to provide for a tax sale of all delinquent property in accordance with the ordinances of the Issuer or in the manner provided by Chapter 10, Title 59 , Utah Code Annotated, for the sale of property for delinquent general property taxes as provided in Section 10-16-24, Utah Code Annotated. The Issuer may also provide for the summary sale of any property assessed after a delinquency shall have occurred in the payment of any assessment or part or installment of it. The sale shall be in the manner provided for actions to foreclose mortgage liens or trust deeds, except that if at the sale no person or entity shall bid and pay the Issuer the amount due on the assessment plus interest and costs, the property shall be deemed sold to the Issuer for these amounts . The Issuer shall be permitted to bid at the sale. The proceeds from the sale of any property sold will be placed in the Special Assessment Fund hereinabove referred to. The remedies provided in this section 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 Issuer of the use of any other method or means. -21- Section 14 . This resolution shall be effective immediately upon its passage. ADOPTED AND APPROVED this loth day of September , 1985. Chairperson ATTEST: -tV Recor er ( S E A L ) -22- Thereupon Councilmember Whitehead seconded the adoption of the foregoing resolution and the same upon being put to a vote was unanimously carried by the affirmative vote of all Councilmembers present, the vote being as follows : Those voting AYE: Sydney Reed Fonnesbeck Grant Mabey Edward W. Parker Ronald J. Whitehead Tom Godfrey Earl F. Hardwick Roselyn Kirk Those voting NAY: None It appearing that more than a majority of the City Council had voted in favor of the motion, the Chairperson thereupon declared the motion carried and the resolution adopted. Chairperson ATTES ,l fc City Recorder ( S E A L -23- Other business not pertinent to the foregoing appears in the minutes of the meeting. Upon motion duly made and carried, the meeting was adjourned. _ � C���JL1�N��P d`►]1/�s Chairperson ATTES )City 'Recorder ( S E A L -24- STATE OF UTAH ) ss. COUNTY OF SALT LAKE ) I, Kathryn Marshall, the duly appointed, qualified and acting City Recorder of Salt Lake City, Utah, do hereby certify that the above and foregoing is a full, true and correct copy of the record of proceedings of the City Council of Salt Lake City, Utah, at its regular meeting held on the loth day of September, 1985, insofar as the same relates to or concerns Salt Lake City, Utah, Special Improvement District, Curb and Gutter No. 38-686 and the adoption of Resolution No. 110 as the same appear of record in my office. I further certify that there is on file in my office a permanent record of the foregoing resolutions for Special Improvement District, Curb and Gutter No. 38-686 . IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said Municipality this loth day of September , 1985. City Recorder ( S E A L ) -25- STATE OF UTAH ) CERTIFICATE OF COMPLIANCE ss. WITH OPEN MEETING LAW COUNTY OF SALT LAKE ) I , Kathryn Marshall, the duly qualified City Recorder of Salt Lake City, Salt Lake County, Utah, do hereby certify: (a) That in accordance with the requirements of Section 52-4-6( 1) , Utah Code Annotated, 1953, as amended, public notice of the 1985 Annual Meeting Schedule of the City Council of Salt Lake City ( the "Council" ) was given, specifying the date, time and place of the regular meeting of the Council scheduled to be held during the year 1985, by causing a Notice of Annual Meeting Schedule for the Council to be posted on January 4, 1985, at the principal office of the Council at City Hall, Salt Lake City, Utah; said Notice of Annual Meeting Schedule having continuously remained so posted and available for public inspection during regular office hours at City Hall until the date hereof; and causing a copy of the Notice of Annual Meeting Schedule to be provided on January 4 , 1985, to at least one newspaper of general circulation within the geographic jurisdiction of the Municipality or to a local media correspondent; (b) That in accordance with the requirements of Section 52-4-6 ( 2) , Utah Code Annotated (1953) , as amended, public notice of the regular meeting of the -26- Council on September 10, 1985, was given, specifying the date, time and place of the September 10, 1985 Council meeting and by causing the Notice of Regular Meeting to be posted at the principal office of the Council at City Hall in Salt Lake City, Utah, on the 6th day of September, 1985, a date not less than 24 hours prior to the date and time of the September 10 , 1985 regular meeting; said Notice of Special Meeting having continuously remained so posted and available for public inspection during regular office hours at City Hall until the date of the September 10, 1985 regular Council meeting; and causing a copy of the Notice of Regular Meeting to be provided on September 6, 1985 to at least one newspaper of general circulation within the geographic jurisdiction of the Municipality or to a local media correspondence. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of Salt Lake City, this loth day of September, 1985 . City Recorder ( S E .A L -27- t EXHIBIT "A" Notice of Meeting -28-