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089 of 1982 - Issuance of $353,000 Special Assessment Bonds to Utah Curb and Gutter Extension NO. 38-622 Q 82-3 Councilmember Mabey then introduced and moved the adoption of the following resolution: RESOLUTION NO. 89 A RESOLUTION AUTHORIZING THE ISSUANCE AND PROVIDING FOR THE SALE OF $353 ,000 SPECIAL ASSESSMENT BONDS OF SALT LAKE CITY, UTAH CURB & GUTTER EXTENSION NO. 38-622 , PRESCRIBING THE FORM OF BOND AND INTEREST COUPONS, MATURITY AND DENOMINATION OF SAID BONDS ; PROVIDING FOR THE CONTINUANCE OF A GUARANTY FUND LEVY AS PROVIDED BY STATUTE; AND PROVIDING WHEN THIS RESOLUTION SHALL BE IN EFFECT. WHEREAS , the City Council of Salt Lake City, Utah, has heretofore adopted proceedings for the construction of improvements in Salt Lake City, Utah, Curb & Gutter Extension No. 38-622 , and the Ordinance of said Municipality confirming the assessment roll for such improvements having been duly adopted and approved on the 15th day of June, 1982 ; and WHEREAS , notice of assessments to property owners in said District has been published in accordance with the requirements of the laws of the State of Utah and the ordinances of said Municipality, and notice of assessment has been mailed by the City Treasurer to all the owners of property assessed in said District; and WHEREAS , the total cost of the project was $712 , 171 . 75 of which the Salt Lake City Redevelopment Agency' s portion was $358 , 973 . 75 , leaving an amount to be paid through the issuance of bonds or from funds provided by the Municipality of $353 ,198 .00 . -7- NOW, THEREFORE, Be It Resolved by the City Council of Salt Lake City, Utah: Section 1 . All the proceedings heretofore taken and adopted for the creation of Salt Lake City, Utah Curb & Gutter Extension No. 38-622 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 said 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 special assessments , there shall be issued $353 ,000 Special Assessment Bonds of Salt Lake City, Utah Curb & Gutter Extension No. 38-622. Said Bonds are to be dated as of the lst day of November, 1982 , will be issued in denominations of $1 ,000 and $5 , 000 , are not registrable as to principal and interest , will mature serially in numerical order on November 1 as follows : -8- Maturity Amount Bond Number 1,000 5,000 1983 $35,000 1- 7 1984 35,000 8-14 1985 35,000 15-21 1986 35,000 22-28 1987 35,000 29-35 1988 35,000 36-42 1989 35.000 43-49 1990 36,000 50 51-57 1991 36.000 58 59-65 1992 36,000 66 67-73 The Bonds maturing after November 1, 1989 are callable for redemption at the option of the City Council on November 1, 1989 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 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 so called for redemption prior to maturity. Both principal and interest shall be payable at Zions First National Bank, One South Main, Salt Lake City, Utah 84111. Section 3. Said Bonds and the coupons thereto attached shall be in substantially the following form: -9- STATE OF UTAH COUNTY OF SALT LAKE SALT LAKE CITY CURB & GUTTER EXTENSION NO. 38-622 SPECIAL ASSESSMENT BOND • No . $ For value received Salt Lake City , Salt Lake County, Utah, (the Issuer) , a municipal corporation duly organized and existing under the laws of Utah, hereby promises to pay to bearer hereof, out of special funds available for such purpose , as hereinafter set forth, the principal sum of DOLLARS ($ ) ON THE 1ST DAY OF NOYEMBER, 19 TOGETHER WITH INTEREST THEREON UNTIL MATURITY AT THE RATE OF PERCENT ( %) PER ANN'UM according to the coupons hereto attached, payable annually on the 1st day of November in each year, both principal and interest being payable in lawful money of the United States of America at Zions First National Bank, One South Main, Salt Lake City, Utah, upon presentation and surrender of this Bond and of the annexed coupons as they severally become due . This Bond is one of a series of seventy-three (73 ) Special Assessment Bonds (in denominations of $1 ,000 and $5 ,000) numbered consecutively from 1 to 73 both inclusive, issued by the Issuer, all of which are of like date and aggregate the total amount of $353 ,000. Payment of this Bond and the interest thereon shall be made from, and as security for such payment there is pledged, a special fund designated as the Bond and Interest Fund of Salt Lake City, Utah Curb & Gutter Extension No. 38- 622 , containing the receipts derived by said Issuer from the special tax and assessment levied upon the property included in Salt Lake City, Utah Curb and Gutter Extension No . 38-622 (the District11 ) by an ordinance which became effective on June 15 , 1982 , together with the interest on the assessments and additional funds transferred by the Issuer to the Bond and Interest Fund to make up the difference between the interest rate on the assessments and the net effective interest rate of the Bonds , for the purpose of defraying part of the cost of the construction of curb and gutter and driveways , the removal of all nonconforming structures , and -10- other miscellaneous work necessary to complete the improvements in a workmanlike manner in said 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 said 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 said 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 Bond and Interest Fund and said Special Improvement Guaranty Fund. Said Issuer shall not be held liable for the payment of this Bond, except to the extent of the Funds created and received by said special assessments and to the extent of its Special Improvement Guaranty Fund; but said Issuer shall be held responsible for the lawful levy of all special 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 monies of said fund. The Issuer hereby discloses that the interest rate being charged on unpaid assessments is less than the net effective interest rate of the Bond. To the extent that collections of assessments plus accrued interest on assessments fall short of amounts due on maturity of any of the Bonds plus accrued interest on the Bond, that difference will be made up and paid from the Bond and Interest Fund or any other source of funds lawfully available to the Issuer for such payments . Said special assessment made and levied to defray said cost , with accruing interest thereon, and the cost of collection of the assessment constitute a lien upon and against the property upon which such assessment was made and levied from and after June 15 , 1982 , the date upon which the ordinance levying such assessment 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 said assessment and interest thereon are paid, notwithstanding any sale of the property for or on account of a general property tax, special 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 lay:, and -11- that the total issue of special improvement bonds of said Issuer for said District , including this Bond, does not exceed the amount authorized by law nor the special assessment levied to cover the cost of said improvements in said District , and that all of said special assessment has been lawfully levied. This Bond is subject to the conditions , and every holder hereof by accepting the same agrees with the Issuer and every subsequent holder hereof, that (a) the delivery of this Bond to any transferee shall vest title in this Bond and in the interest coupons attached hereto in such transferee to the same extent for all purposes as would the delivery under like circumstances of any negotiable instrument payable to bearer; (b) the Issuer and any agent of the Issuer may treat the bearer of this Bond as the absolute owner hereof for all purposes , and shall not be affected by any notice to the contrary; (c) the principal of and the interest on this Bond shall be paid, and this Bond and each of the coupons appertaining thereto are transferable , free from and without regard to any equities between the Issuer and the original or any intermediate holders hereof , or any setoffs or cross-claims ; and (d) the surrender to the Issuer or any agent of the Issuer of this Bond and each of the coupons shall be a good discharge to the obligor for the same . IN WITNESS WHEREOF. the Issuer has caused this Bond to be signed by the facsimile signature of its Mayor and countersigned by the manual signature of its City Recorder, with the imprinted or facsimile seal of the Issuer affixed hereto , and the annexed coupons to bear the facsimile signature of the City Treasurer and this Bond to be dated as of the 1st day of November, 1982 . (facsimile signature) Mayor Countersigned: (manual signature ) City Recorder ( S E A L ) -12- (Form of Coupon) Coupon No. $ On the 1st day of November, 19 unless the hereinafter mentioned Bond has been duly called for redemption and provision for the payment thereof duly made , Salt Lake City Salt Lake County, Utah will pay the bearer hereof Dollars in lawful money of the United States of America , out of a special fund designated the Bond and Interest Fund of Salt Lake City, Utah Curb & Gutter Extension No. 38-622 , and Special Improvement Guaranty Fund at Zions First National Bank, One South Main, Salt Lake City , Utah, being one year' s interest on its Special Assessment Bonds , dated November 1 , 1982 . (Facsimile Signature) City Recorder Bond No. -13- Section 4 . Said Bonds shall be signed by the facsimile signature of the Mayor and countersigned by the manual signature of the City Recorder, with the imprinted or facsimile seal of the Municipality affixed, and the annexed coupons shall bear the fascimile signature of the City Recorder. The City Council does hereby ratify , approve and confirm the execution of said Bonds by the said officers and the City Treasurer is hereby authorized to issue and deliver the Bonds to the purchasers thereof, their agents or assigns , on receipt of the purchase price therefor. Section 5 . The sale of the Bonds to the Bache Group of Salt Lake City at the price of par and accrued interest to the date of delivery plus a premium of $1 ,200 in accordance with the terms of the sealed bid submitted by said purchaser on this date at the advertised public sale of said Bonds is hereby in all respects ratified and confirmed. Said 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 . The City Treasurer shall be and is hereby 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 which becomes due and payable immediately -14- because of the failure to pay any installment whether of principal or interest , when due , and 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 said Municipality heretofore or to be hereafter adopted. All monies constituting the payment of principal and interest shall be placed in a special fund to be designated "Bond and Interest Fund of Salt Lake City, Utah Curb & Gutter Extension No . 38-622 , 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. Section 7 . The Municipality agrees with the holder of the Bonds herein authorized that it will , until the payment of said 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 in the Municipality will produce until the Special Improvement Guaranty Fund is equal to not less than forty percent (40%) of the amount of all outstanding special improvement bonds of all special improvement districts issued prior to March 30, 1981, and twenty-five percent (25'/) of the amount of all outstanding special improvement bonds of all special improvement -15- districts of the Municipality issued on or after March 30 , 1981 , and thereafter, the Municipality 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 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 8 . Should there be insufficient money in the Bond and Interest 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 said Guaranty Fund to the extent that there is sufficient money in said Guaranty Fund for this purpose , and these Bonds are payable -16- exclusively from the special assessments levied for said purpose and the Special Improvement Guaranty Fund. The Issuer hereby discloses that the interest rate being charged on unpaid assessments is less than the net effective interest rate of the Bond. To the extent that collections of assessments plus accrued interest on assessments fall short of amounts due on maturity of any of the Bonds plus accrued interest on the Bond, the difference will be made up and paid from the Bond and Interest Fund or any other source of funds lawfully available to the Issuer for such payments . Section 9 . The assessments and interest thereon shall continue to constitute and are hereby declared to' be a lien in the several amounts assessed against every lot or tract of land in said Salt Lake City , Utah Curb & Gutter Extension No . 38-622 from and after June 15 , 1982 , the date on which the ordinance levying the special 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 thereon are paid, notwithstanding any sale of the property for or on account of a general property tax, special tax, other assessment , or the issuance of an auditor' s deed. Section 10. Said funds hereinabove referred to shall be kept separate and apart from each other and from any -17- other funds of the Municipality and shall , from time to time as they are accumulated, be deposited in such bank or banks as are designated as depositories of public monies for funds of said Municipality under the Depository Laws of the State of Utah for the deposit of public funds . Section 11 . Default in the payment of any installment of principal or interest of the assessments 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 Municipality covenants and agrees that it will proceed with due diligence to place in operation the procedure necessary to provide for a tax sale of all delinquent property or to initiate court action to enforce other legal remedies in accordance with the ordinances of said Municipality and the laws of the State of Utah and that the proceeds from the sale of any property or the collection of any delinquent amounts will be placed in the Bond and Interest Fund hereinabove referred to. Section 12 . This resolution shall be . effective immediately upon its passage . -18- ADOPTED AND APPROVED this 28th day of September, 1982 . Chairperson ATTEST- ity ecorder ( S E A L ) -19- Thereupon, Councilmember DePaulis 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 Palmer A. DePaulis Grant Mabey Ione M. Davis Those voting NAY: None It appearing that more than a majority of the Council had voted in favor of the motion, the Chairperson thereupon declared the motion carried and the resolution adopted. Chairperson ATTEST: y Recorder ( S E A L ) -20- Other business not pertinent to the foregoing appears in the minutes of the meeting. Upon motion duly made and carried, the meeting was adjourned. Chairperson ATTEST: Qlfy ecorder ( S E A L ) -21- 1' 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 meeting held on the 28th day of September, 1982 , insofar as the same relates to or concerns Salt Lake City, Utah Curb & Gutter Extension No. 38-622 and the adoption of Resolution Nos . 88 and 89 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 Curb & Gutter Extension No. 38-622 . IN WITNESS WHEREOF, I have hereunto subscribed my official signature and affixed the official seal of said City this 28th day of September, 1982. (pity e or er ( S E A L ) -22- STATE OF UTAH ) CERTIFICATE OF COMPLIANCE ss . WITH OPEN MEETING LAW COUNTY OF SALT LAKE ) I , Kathryn Marshall , the duly qualified and acting City Recorder of Salt Lake City, Salt Lake County, Utah, do hereby certify that on the 24th day of September, 1982 , pursuant to Utah Code Annotated Section 52-4-6 (1953) , as amended , there was posted (at least 24 hours prior to the meeting time) at the Council ' s regular meeting place written notice of the regular meeting of the City Council held on September 28 , 1982 at Glendale Intermediate School . I further certify that there was delivered to the local news media, at least 24 hours prior to said meeting, a copy of said Notice of Regular Meeting. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of said Municipality this�io day of September, 1982 . C�jyRecord6f ( S E A L ) -23-