HomeMy WebLinkAbout024 - 03/16/1993 - AMENDING CITY CODE PERTAINING TO SPECIAL IMPROVEMENT DISTRICTS ORDINANCE NO. 24, 1993
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING CHAPTER 22 OF THE CODE OF THE CITY OF
FORT COLLINS PERTAINING TO SPECIAL IMPROVEMENT DISTRICTS
WHEREAS, the City is empowered by both state and local laws to construct
local improvements through the creation of special improvement districts and to
assess the costs of such improvements upon the property especially benefitted
thereby; and
WHEREAS, the levy and collection of assessments for local improvements is
a matter of purely local concern; and
WHEREAS, the City Council wishes to amend certain sections of the City Code
pertaining to the creation and administration of special improvement districts,
the assessment of the cost of improvements constructed in such districts, and the
enforcement of the City' s lien for such assessments; and
WHEREAS, the overall purpose of such changes is to minimize the financial
risk to the City and its taxpayers from the creation of special improvement
districts and to increase City control of the special assessment process; and
WHEREAS, these proposed revisions have been reviewed by the Council Finance
Committee and recommended to the Council for adoption.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS
as follows:
Section 1 . That Section 22-32 of the Code of the City is hereby amended
to read as follows:
Sec. 22-32. City authorized to make and finance improvements.
The city shall have the power to form special improvement
districts and to contract for or make local improvements as
hereinafter mentioned which improvements shall confer special
benefits on the real property within districts and general benefits
to the city at large and to assess the cost wholly or in part upon
the property especially benefitted. In consideration of general
benefits conferred on the city at large, the City Council may levy
taxes and disburse monies for the purpose of paying for such
benefits and for the purpose of paying bonds and interest issued for
special or local improvement districts created hereunder as by
Charter made and provided. All public improvements shall be
constructed in accordance with the Charter and the Code and the
specifications prescribed by the City Council and shall be
authorized by ordinance. All special improvement districts created
under the authority of this Article, and all related proceedings,
administrative acts and claims for relief pertaining thereto, shall
be governed by the provisions of Section 31-25-501 , et seq. , C.R.S. ,
except to the extent that said statutory provisions are in conflict
with the provisions of this Article. In the event of any such
conflict, the provisions of this Article shall apply.
Section 2. That Section 22-37, Reimbursement for District Improvements,
of the Code of the City is hereby repealed in its entirety.
Section 3. That Section 22-38 of the Code of the City of Fort Collins
hereby amended to read as follows:
Sec. 22-38. Changes restricted.
(a) All proceedings pertaining to the District may be modified
or rescinded wholly or in part by the City Council at any time,
subject to the provisions of this Section. If such modification or
rescission occurs prior to the first publication or mailing of
notice to property owners and prior to the commencement of
improvements, the City Council shall act by resolution. If
modification or rescission occurs subsequent to either such event,
the City Council shall act by ordinance and the following shall
apply:
(1) The notice and hearing procedure described in § 22.61(b)
of this Chapter shall be repeated, and all changes in
the information referred to therein shall be described
with particularity.
(2) Modification or rescission shall be permitted only upon
the written consent of all property owners within or
proposed to be included within the District. Additional
written consents may be required, in the discretion of
the Director of Engineering or City Attorney, from any
lienholders or other persons whose interests may be
adversely affected by the proposed modification or
rescission.
(3) No proceedings pertaining to the District shall be
modified or rescinded subsequent to the issuance of
bonds for the District if, in the judgment of the city,
to do so would impair the rights of the city or the
bondholders.
(4) Changes in District boundaries shall be permitted only
under the following circumstances:
a. The change will result in the inclusion of
additional properties within the District. No
change resulting in the exclusion of existing
District properties will be permitted.
b. Additional properties to be included within the
District will be specially benefitted in amounts
at least equal to the amounts of the assessments
to be levied upon such properties, and the total
cost of the improvements will be apportioned
among the properties in the District in fair
approximation to the special benefits conferred.
2
C. The change will not result in any increase in the
amount of any individual property assessment or
the amount of any annual installment payment to
be made by any property owner within the
District.
(5) Except as provided in paragraph (3) of this Section,
approval or rejection of any proposed modification or
rescission shall be discretionary with the City Council
and shall be determined according to the public
interest.
(6) In the event that any modification or rescission
approved by the City Council is invalidated by order of
court, the original proceedings as first adopted by the
City Council shall be automatically reinstated and shall
be deemed to have been continuously in full force and
effect as though no modification or rescission thereof
had occurred.
(b) The limitations contained in subparagraph (a) of this
Section shall not apply to the following kinds of changes and the
same shall not be construed as constituting a modifications or
rescissions of any district proceeding:
(1) minor changes approved by the Director of Engineering in
time, plans and materials pertaining to the improvements
to be constructed within the district, provided that any
such changes are completed prior to the date that the
district improvements are accepted by resolution of the
City Council as provided in § 22-85;
(2) changes approved by the City Council , by ordinance,
which modify the remedies or modes of procedure
available to the city to collect any assessments levied
under § 22-89 or to enforce the lien established by the
levy of such assessments under § 22-92; or
(3) amending acts or proceedings intended to remedy any
delays, errors, defects or irregularities as provided in
§ 22-92(a) .
Section 4. That Section 22-41 of the Code of the City is hereby amended
to read as follows:
Sec. 22-41. Contents of specifications and contract.
In public improvements, the specifications and contracts for the
construction of improvements authorized under this Article shall
provide for the posting of a good and sufficient surety bond to
guarantee that such construction shall be performed in accordance
with the city's specifications shall remain in good order and repair
3
for a period of time to be fixed by the City Council and that the
bidders shall make all necessary repairs during such period without
further compensation. The contract shall provide that it is subject
to the provisions of the Charter, this Article and the ordinance
authorizing the improvement.
Section 5. That Section 22-45 of the Code of the City is hereby amended
to read as follows:
Sec. 22-45. Time limit for commencing actions for relief.
All actions, legal or equitable, for relief against any
proceeding or legislative act provided for under this Article or any
administrative act or omission taken under the authority of this
Article, whether based upon irregularities, jurisdictional defects
or other grounds, shall be commenced within thirty (30) days after
the wrongful act complained of or be perpetually barred.
Additionally, no action shall be brought on the grounds that the
assessment levied exceeds the benefits received by the property
assessed unless the objections on which such action is based have
been presented to the City Council in writing prior to or at the
hearing on the assessing ordinance for the district provided for
under § 22-89.
Section 6. That Sections 22-62(c) , (d) and (f) of the Code of the City are
hereby amended, with subsequent subparagraphs relettered accordingly, to read as
follows:
Sec. 22-62. Public hearing; objections and remonstrances.
(c) After the hearing upon the proposed district, the City
Council shall determine whether the creation of the district is in
the best interests of the city. In making such determination as to
any district initiated by petition, the City Council shall consider,
without limitation, the city-wide benefits of the proposed
improvements; the financial ability of the petitioning property
owners to pay the assessments which would be levied in connection
with the district; the petitioners' history of payment or nonpayment
of any previous assessments; the additional security to be pledged
by the petitioners for the payment of assessments, if any, such as
bonds or letters of credit; the appraised value of the property in
the district, in relation to the estimated value of the proposed
improvements to be constructed in the district, as determined by an
appraiser selected by the city; and the proposed development plan,
if any, for the property in the district. If the City Council
determines that the creation of the proposed district is in the
public interest, then the City Council shall so find, by ordinance,
and a majority vote of the members of the City Council shall be
sufficient to override any objection to the formation of the
proposed district on the part of property owners in the district.
If the City Council determines that it is not in the public interest
that the proposed district be created, then the City Council shall
4
pass a motion to that effect, and the proceedings for the formation
of the district shall cease.
(f) If the City Council finds and determines that circumstances
warrant such action, it may except particular properties in the
district from assessments or lower the amount of assessment against
any particular property and charge the city at large with the amount
excepted or reduced from assessment. It may also condition its
approval of the creation of any district upon the pledge of
additional security against default in the payment of assessments by
the petitioners in the district.
Section 7. That Section 22-85(a) (1) of the Code of the City is hereby
amended to read as follows:
Sec. 22-85. Statement of cost; preparation of assessment roll .
(a) (1) Actual construction costs, including costs of construction
management; . . . .
Section 8. That Section 22-88 of the Code of the City is hereby amended
to read as follows:
Sec. 22-88. Advertisement and notice of proposed assessment.
Upon the filing of the statement and assessment roll provided for
in § 22-85, the City Council shall order the City Clerk to notify
all interested persons that such improvements have been completed
and accepted. Said notice shall be by publication once each week
for two (2) successive weeks in an official newspaper published in
the city. Additionally, the City Clerk shall , within ten (10) days
after the first publication, notify all owners of property to be
assessed, which notice shall be sent by certified mail , return
receipt requested, to the names and addresses appearing in the
real property assessment rolls for general taxes of the county. The
notices referred to herein shall specify the following:
(1) The total cost of the district to be assessed;
(2) The portion, if any, to be paid by the city;
(3) That the assessment roll showing the share apportioned
to each lot or tract of land in the district is on file
in the City Clerk's office and can be seen and examined
at any time during business hours;
(4) That any complaints or objections which may be made in
writing by such owner or owners to the City Council and
filed in the office of the City Clerk within thirty (30)
days from the publication of such notice will be heard
and determined by the City Council before the passage of
any ordinance assessing the cost of the district.
5
(5) The date when and the place where such complaints or
objections will be heard. Such dates shall be not less
than thirty (30) days or more than forty-five (45) days
after the first publication.
Section 9. That Section 22-89(b) of the Code of the City is hereby amended
to read as follows:
Sec. 22-89. Assessing ordinance; hearing and preparation.
(b) The assessing ordinance shall assess the costs of the
district as described in § 22-85(a) against the property to be
assessed in the district in the proportion finally determined. All
real property referenced in the assessing ordinance shall be
described according to the parcel and schedule numbers assigned to
such property in the records of the county Assessor' s office. The
passage of the assessing ordinance, together with the findings of
the City Council , shall be prima facie evidence of the fact that the
property assessed is benefitted in the amount of the assessment and
that such assessments have been lawfully levied.
Section 10. That Section 22-90(a) of the Code of the City is hereby
amended to read as follows:
Sec. 22-90. Limit on assessments; city to pay certain costs.
(a) No property in the district shall be assessed for any
improvements in an amount exceeding one-half (1/2) of such
property's actual value not including the proposed district
improvements. For this purpose, the value of any property shall be
conclusively presumed to be equivalent to such property's actual
valuation as computed from the records of the county Assessor in
accordance with state statutes for the year preceding the assessing
ordinance. The foregoing limitation on assessments shall not apply
to any property when all of the owners of such property expressly
waive the limitation in writing and the City Council has determined
that adequate collateral security exists to ensure the full payment
of all assessments in the district so that a proposed waiver should
be accepted by the city.
Section 11 . That Sections 22-95 (a) and (b) of the Code of the City are
hereby amended to read as follows:
Sec. 22-95. Payment of assessments in installments.
(a) In the case of such election to pay in installments, the
assessments and interest shall be payable in not less than two (2)
nor more than twenty (20) installments. The first installment shall
be payable within no less than thirty (30) days nor more than one
(1) year from the date of passage of the assessing ordinance. The
last such payment shall be within no more than twenty (20) years
from the date of passage of said ordinance. Interest on the
6
assessments shall be payable on the unpaid balance from thirty (30)
days after the date of final publication of the assessing ordinance
until the assessments are paid in full . The amount of each
installment, the number of installments, the payment dates, the rate
of interest payable, and all other particulars pertaining to payment
by installment, including any collection fee to be collected by the
municipal or county Treasurer, shall be established by the City
Council in the ordinance making such assessments. The rate of
interest on the assessments shall equal the highest interest rate
payable on the bonds issued to pay the cost of the improvements.
(b) The owner of any property charged with an assessment payable
in installments may at any time, if not then in default on the
payment of any sum due on account, prepay the entire remaining
principal balance together with interest accruing to the next
installment due date. Upon the sale of any property encumbered by
an assessment lien established under the provisions of this Chapter,
the seller of such property shall prepay the entire remaining
principal balance and accrued interest on the assessment.
Section 12. That Section 22-97 of the Code of the City is hereby amended
by the addition of a new subparagraph (b) , with the old subparagraph (b) and the
remaining subparagraphs relettered accordingly, which new subparagraph (b) shall
read as follows:
Sec. 22-97. Receiving of payments; sale of property for default.
(b) In addition to the right to advertise and sell property in
the manner described in subparagraph (a) above, and in addition to
any other foreclosure remedies specifically applicable to special
assessment liens under the general laws of the state, the City
Council may elect, in the event of any default in the payment of an
installment of principal or interest after it becomes due and
payable, to authorize the enforcement of the city' s lien against any
assessed property according to the procedures established for the
foreclosure of a mortgage, trust deed or other lien under Title 38,
Article 38 of the Colorado Revised Statutes. In the event the city
elects to foreclose a special assessment lien in the manner herein
specified, such proceeding shall be conducted in the same manner and
under all the same conditions and penalties and with the same
effects as are prescribed by the general laws of the state for such
foreclosure proceedings.
Section 13. That the second paragraph of Section 22-97(e) of the Code of
the City is hereby amended to read as follows:
Sec. 22-97. Receiving of payments; sale of property for default.
(e) . . . Any number of certificates may be foreclosed in the
same proceedings. In such proceeding, the city, as plaintiff, shall
be entitled to all relief provided by law and actions for an
adjudication of rights with respect to real property, including the
7
right to obtain title to such property after the expiration of such
period of redemption as is set forth in Part 3 of Article 38 of
Title 38, C.R.S.
Introduced, considered favorably on first reading, and ordered published
this 2nd day of March, A.D. 1993, and to be presented for final passage on the
16th day of March, A.D. 1993.
ayor
ATTEST:
e
City Clerk
Passed and adopted on final reading this 16th day of March, A.D. 1993.
Mayor -V iucli.
Mayor
ATTEST:
City Clerk
8