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HomeMy WebLinkAbout055 - 06/06/1978 - PROVIDING FOR THE CONSOLIDATION OF STREET, WATER AND SANITARY SEWER DISTRICT NO. 70, CONSOLIDATED ST n ^ ORDINANCE No. 5 5 1970 AN ORDINANCE PROVIDING FOR THE CONSOLIDATION OF STREET, WATER AND SANITARY SEWER DISTRICT No. 70, CONSOLIDATED STREET IMPROVEMENT DISTRICT No. 71, CONSOLIDATED STREET IMPROVEMENT DISTRICT No. 72 AND STREET IMPROVEMENT DISTRICT No. 73 INTO A SINGLE SPECIAL IMPROVEMENT DISTRICT DESIGNATED AS THE 1978 CONSOLIDATED SPECIAL IMPROVEMENT DISTRICT; AUTHORIZING THE ISSUANCE OF SPECIAL ASSESSMENT BONDS OF THE CITY OF FORT COLLINS, COLORADO, FOR SAID DISTRICT; PRESCRIB- ING THE FORM OF THE BONDS ; PROVIDING FOR THE PAYMENT OF SAID BONDS AND THE INTEREST THEREON; AND REPEALING CERTAIN SECTIONS OF ORDINANCE No. 1, 1976, RELATING TO THE ISSUANCE OF BONDS FOR DISTRICT No. 71. WHEREAS, the City Council of the City of Fort Collins has heretofore taken and, adopted proceedings preliminary to and including the creation of the following special improvement districts, according to the Charter of the City and Chapter 16 of the Code of the City of Fort Collins relating to special or local improvements: (a) Street , Water and Sanitary Sewer District No. 70, created by Ordinance No. 74, 19740 finally passed and adopted on January 7, 1975; (b) Consolidated Street Improvement District No. 71, created by Ordinance No. 1, 1976, finally passed and adopted on March 17, 1976; (c) Consolidated Street Improvement District No. 72, created by Ordinance No. 76, 1977, finally passed and adopted on June 21, 1977; (d) Street Improvement District No. 73, created by Ordinance No. 138, 1977, finally passed and adopted on December 20, 1977; and WHEREAS, notice of hearing on the creation of each of the above districts was published and mailed in accordance with the provisions of Chapter 16 of the Code; and WHEREAS, prior to the passage of an ordinance creating each district, the City Council heard and considered all protests and objections relating to the creation of the special improvement district and the construction and installation of improvements therein; and WHEREAS, for the purpose of reducing administrative costs and making it possible to issue and sell special assessment bonds for all of the districts at one time at a more favorable interest rate, the City Council has determined that it is in the best interest of the City and the owners of property in each of the existing districts, that such special improvement districts be consolidated into a single district; and _ 2 _ i t WHEREAS , the construction and installation of local improvements therein will result in general benefits to the City and in special benefits to the assessable property to be included within the consolidated district, consisting of the areas of each of the existing districts; and WHEREAS , the City Council has determined that the portion of the cost of the construction and installation of the local improvements, together with necessary incidental costs, which will be assessed against property owners within the consoli- dated district, shall not exceed the amount of $614,000, and that special assessment bonds of the City for the consolidated district should be issued in this amount, and WHEREAS, in accordance with the City Charter, the City Council has determined that it is in the best interest of the City that special assessment bonds of the City in the principal amount of $614 ,000 should be issued and sold to Boettcher and Company, Denver, Colorado, in accordance with their proposal dated May 161 1978; and WHEREAS, it is necessary to provide for the creation of the consolidated district, the issuance of said bonds and the form and payment thereof; BE IT ORDAINED BY THE COUNCIL OF THE CITY OF FORT COLLINS, COLORADO: Section 1 . Consolidation of Districts. That for the purpose of reducing administrative costs, and to provide for the issuance and sale of bonds for the combined projects described in this ordinance at a more favorable interest rate, Street, Water and Sanitary Sewer District No. 700 Consolidated Street Improve- ment District No. 71, Consolidated Street Improvement District No. 72 , and Street Improvement District No. 73 (the "existing districts" ) are hereby combined into a single district to be designated as the 1978 Consolidated Special Improvement District ( the 111978 District" or "District" ) , in accordance with the Charter and Chapter 16 of the Code of the City. The boundary of the 1978 District shall consist of the area that has been included in each of the existing districts, and which will be specially benefited by the construction and installation of improvements therein. Each of the existing districts shall be considered as subdistricts within the 1978 District, and designated as subdis- tricts 70, 71, 72 and 73. Section 2. Construction of Improvements. The improve- ments authorized to be constructed in accordance with the ordi- nance creating each of the existing districts, including asphalt street pavement, curb, gutter, s_dewalk, street lighting, water lines and mains, sanitary sewer lines, and storm drainage improve- ments, are hereby ratified and approved; and the officers of the 3 - City are authorized to provide for the public advertisement for construction bids in those subdistricts, where the construction contract has not yet been awarded, in accordance with Sections 16-10 to 16-12, of the Code of the City. Section 3 . Bond Details. By virtue of and pursuant to the City Charter and Chapter 16 of the Code, Special Assessment Bonds of the City of Fort Collins, for the 1978 District ( the "bonds" ) shall be issued for the purpose of paying for local improvements constructed in the District. The bonds shall be in the principal amount of $614 ,000 , shall be dated July 1, 1978, and shall consist of 614 bonds in the denomination of $1,000 each, numbered 1 to 614 , inclusive. The bonds shall be payable to bearer, and shall be due and payable on July 1, 1988, sub3ect to call and prior payment at the option of the City on any interest payment date, in direct numerical order, upon payment of par and accrued interest. Notice of prior redemption shall be given by the Director of Finance by: (a) publication of such notice for five (5) days in an official newspaper published in the City of Fort Collins, and (b) forwarding a copy of such notice by first class mail, postage prepaid to any bondholder who has furnished his or her post office address to the City Clerk , within ten (10) days after the publication required in (a) above. The notice shall specify by number the bonds called, and all such bonds shall be paid in numerical order. At the expira- tion of thirty ( 30) days from the first publication of such notice, interest on the bonds so called shall cease. The bonds shall bear interest as evidenced by inter- est coupons designated "A" , payable on January 1 , 1979 , and semiannually thereafter on January 1 and July 1 , each year, as follows: "A" Coupon Amount Bond Numbers Interest Rate $ 44,000 1-44, Incl. 4.50% 60,000 45-104, incl. 4 75% 60,000 105-164, incl. 5.00% 60,000 165-224, incl. 5.15% 60,000 225-284, incl. 5 30% 60,000 285-344 , incl. 5 45% 60,000 345-404, incl. 5.60% 60,000 405-464, incl. 5.70% 75,000 465-539, incl. 5.75% 75,000 540-614, incl. 5.75% In addition to the "A" coupon interest rate set forth above, bonds numbered 15 to 614 , inclusive, bear additional interest evidenced by supplemental interest coupons designated "B", at the rate of 4% per annum, for the period from August 1, 4 1978 , to July 1 , 1979 , or to the payment date of the bonds, whichever is the earlier date. The "B" interest shall be payable on the same interest payment dates as the "A" interest coupons during said period of time. The net effective interest rate of this issue of bonds is 6 .00% per annum. The principal of and interest on said bonds shall be payable at the office of the Director of Finance, in Fort Collins, Colorado Section 4 . Execution of Bonds and Interest Coupons. The bonds shall be signed with the facsimile signature of the Mayor of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director of Finance, with a facsimile of the seal of the City affixed thereto, and the interest coupons attached shall be signed with the facsimile signature of the City Clerk. When issued as afore- said as part of said bonds , the interest coupons shall be the binding obligations of the City according to their import. Should any officer whose manual or facsimile signature appears on said bonds or the coupons attached thereto cease to be such officer before delivery of the bonds to the purchaser, such manual or facsimile signature shall nevertheless be valid and sufficient for all purposes. Section S . Form of Bond and Interest Coupons . The bonds and the interest coupons to be attached thereto shall be in substantially the following form: - 5 - 11 (Form of Bond) UNITED STATES OF AMERICA STATE OF COLORADO COUNTY OF LARIMER CITY OF FORT COLLINS 1978 CONSOLIDATED SPECIAL IMPROVEMENT DISTRICT SPECIAL ASSESSEMENT BOND NO. $1,000 The City of Fort Collins, in the County of Larimer, State of Colorado, for value received, hereby promises to pay to the bearer hereof, out of the special fund or funds hereinafter designated, but not otherwise, the principal sum of ONE THOUSAND DOLLARS in lawful money of the United States of America on the lst day of July, 1988, with interest thereon according to interest coupons designated "A" , at the rate of ( 8) per annum from date until payment, payable on January 1 , 1979 , and semiannually there- after on January 1 and July 1 each year, * [and additional interest evidenced by supplemental interest coupons designated "B", at the rate of 4% per annum, for the period from August 1, 1978 to July 11 1979, or to the payment date of this Bond, whichever is the earlier date, all such interest payable on the same dates as the "A" interest coupons during said period of time J Both principal and interest are payable at the office of the Director of Finance, in Fort Collins, Colorado, upon presentation and surrender of the attached coupons and this Bond as they severally become due or are called for payment. This Bond is subject to call and redemption at the option of the City in direct numerical order of the issue of which it is one, on any interest payment date, upon payment of par and accrued interest to the date of redemption. Notice of such prior redemption shall be published for 5 days in an official newspaper published in the City. This Bond is issued for the purpose of paying the cost of constructing and installing local improvements, together with necessary incidentals, in the 1978 Consolidated Special Improve- ment District, in the City of Fort Collins, Colorado, by virtue of and in full conformity with the Constitution and Laws of the State of Colorado, the Charter of the City, Chapter 16 of the Code of the City of Fort Collins, and an Ordinance of the City duly adopted, approved, published and made a law of the City prior to the issuance hereof. 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 "1978 Consolidated Special I-n- s provement District Bond and Interest Fund" , which Fund shall *to be inserted in bonds numbered 15 to 614, Incl. - 6 - S contain initially any moneys in the construction account remaining after the cost of improvements has been paid in full and there- after to contain the proceeds from special assessments to be levied against the property included within the District and specially benefited by the construction and installation of improvements therein. The assessments to be levied will consti- tute a lien on and against each lot or tract of land in the respective amounts to be apportioned by an ordinance of the City. Bonds of this issue, together with bonds of other local improvement districts of the City, shall be additionally secured by moneys in the special surplus and deficiency fund authorized by the City Charter. Whenever there is a deficiency in the Bond and Interest Fund for the payment of principal and interest, the deficiency shall be paid out of the special surplus and deficiency fund. The ordinance authorizing the issuance of this Bond pro- vides that whenever three-fourths (3/4) of the bonds of this series have been paid and cancelled and for any reason the remain- ing assessments are not paid in time to redeem the remaining bonds and the interest thereon, and there are not sufficient funds in the special surplus and deficiency fund, then the City shall pay the remaining bonds when due and the interest thereon, and levy additional ad valorem taxes necesary therefor, and reimburse itself by collecting the unpaid assessments due the district. This Bond does not constitute a debt of the City of Fort Collins within the meaning of any constitutional, statutory or charter limitation or provision, and shall not be considered or held to be a general obligation of the City. This Bond and the interest thereon are payable solely from the special assessments and other funds and moneys pledged to the payment thereof, as indicated above. The payment of the Bond is not secured by an encumbrance, mortgage or other pledge of the City. No property of the City, subject to the above, shall be liable to be forfeited or to be taken in payment of the bonds of this issue. It is hereby further certified and recited that all requirements of law have been fully complied with by the proper officers of the City in the issuance of this Bond, and that the total amount of this issue does not exceed the cost and expense of said improvements or any limitation prescribed by law. For the payment of this Bond and the interest thereon the City pledges all of its lawful corporate powers. IN TESTIMONEY WHEREOF, the City of Fort Collins has caused this Bond to be signed with the facsimile signature of the Mayor of the City, attested by the manual signature of the City Clerk, countersigned with the facsimile signature of the Director d 7 - of Finance , with a facsimile of the seal of the City affixed hereto, and the interest coupons attached hereto to be signed with the facsimile signature of the City Clerk, as of the 1st day of July, 1978. CITY OF FORT COLLINS, COLORADO (FACSIMILE) By: (Facsimile Signature) ( S E A L ) Mayor ATTEST: COUNTERSIGNED: (Manual Signature) (Facsimile Signature) City Clerk Director of Finance I t I I I I i - 8 (Form of interest Coupon) No. S January On the 1st day of July, 19_, unless the Bond to which this coupon is attached has been called for prior redemption, the City of Fort Collins, in the County of Larimer and State of Colorado, will pay to bearer the amount shown hereon, in lawful money of the United States of America, solely out of the special fund or funds referred to in the Bond to which this coupon is attached , at the office of the Director of Finance, in Fort Collins, Colorado, being interest then due on its Special Assess- ment Bond for the 1978 Consolidated Special Improvement District, dated July 1, 1978, bearing No. (Facsimile Signature) City Clerk r - 9 - w Section 6 . Disposition of Bond Proceeds. The proceeds of said bonds shall be applied only to pay the costs and expenses of constructing and installing improvements in said District and all other costs and expenses incident thereto. In the event that all of the proceeds of said bonds are not required to pay such costs and expenses, any remaining amount shall be paid into the special sinking fund for the purpose of calling in and paying the principal of and interest on said bonds. Neither the purchasers of said bonds nor any subsequent holder of the same shall be responsible for the application of the proceeds of said bonds by the City or any of its officers. All or any portion of the bond proceeds may be tem- porarily invested, or reinvested, pending such use, in securities or obligations which are lawful investments for such municipali- ties in the State of Colorado. It is hereby covenanted and agreed by the City that the temporary investment or reinvestment of the bond proceeds, or any portion thereof, shall be of such nature and extent, and for such period, that the bonds of the City shall not become "arbitrage bonds" within the meaning of Section 103(c) of the Internal Revenue Code, and pertinent regulations, and such proceeds, if so invested or reinvested, shall be sub3ect to the limitations and restrictions of said Section 103(c) , as the same now exists or may later be amended, and shall further be sub3ect to any applicable regulations of the Internal Revenue Service. Section 7 . 1978 Consolidated Special Improvement District Bond and Interest Fund. The bonds and the interest thereon shall be payable solely from a special fund, designated as the 1978 Consolidated Special Improvement District Bond and Interest Fund (the "Bond and Interest Fund" ) , which shall contain initially any moneys in the construction account remaining after the cost of improvements has been paid in full and there- after to contain the proceeds from special assessments to be levied against the property within the District and specially benefited by the construction of improvements therein. When assessments are collected, including interest and any penalites, they shall be placed in the Bond and Interest Fund, and shall be deemed specially appropriated to the payment of the bonds autho- rized herein, and the interest thereon, and shall not be used for any other purpose until the bonds and the interest are fully paid. Whenever there are available funds in the Bond and Interest Fund therefor, it shall be the duty of the Director of E Finance to call in and pay a suitable number of bonds outstanding. Notice of call and redemption shall be given in accordance with Section 16 .29 of the Code of the City of Fort Collins, and as s provided in Section 3 hereof. - 10 - Section S . Additional Security for the Payment of Principal and interest. Bonds of this issue, together with bonds of other local improvement districts of the City, shall be addi- tionally secured by moneys in the special surplus and deficiency fund authorized by the City Charter. whenever there is a defi- ciency in the Bond and Interest Fund for the payment of principal and interest , the deficiency shall be paid out of the special surplus and deficiency fund. whenever three-fourths (3/4) of the bonds of this series have been paid and cancelled and for any reason the remaining assessments are not paid in time to redeem the remaining bonds and the interest thereon, and there are not sufficient funds in the special surplus and deficiency fund, then the City shall pay the remaining bonds when due and the interest thereon, and levy additional ad valorem taxes necessary therefor, and reimburse itself by collecting the unpaid assessments due the district. Section 9. Assessments of Costs. The City Council has, by Ordinance No. 7 , 1977, finally passed and adopted on February 1, 1977, assessed a portion of the cost of constructing and installing improvements within subdistrict 70, against the property included within such subdistrict. Upon completion of the local improvements in subdzstrzcts 71, 72 & 73, and accep- tance thereof by the City Council, the City Engineer shall prepare a statement showing the portion of the cost of improvements to be assessed against the property included within such subdzstrzcts, and shall prepare an assessment roll, in accordance with Chapter 16 of the Code. The City Council covenants that it will cause assessments to be levied against the property included within such subdzstrzcts and specially benefited by the construction and znstzllatzon of such improvements, in accordance with law and the Charter of the City. Section 10. Repeal of Certain Sections of Ordinance No. 1, 1976. That Sections 5, 6 and 7 of Ordinance No. 1, 1976, relating to Consolidated Street Improvement District No. 71, and the issuance of bonds for such district, the provision for the form of said bonds and interest coupons, and the redemption prior to maturity, are hereby repealed. Section 11. Seyerabzlzty. That if any one or more sections or parts of this Ordinance shall be adjudged unenforce- able or invalid, such judgement shall not affect, impair or invalidate the remaining provisions of this Ordinance, it being the intention that the various provisions hereof are severable. Section 12. Repealer. All Ordinances or parts thereof in conflict with this Ordinance are hereby repealed. w Section 13 Ordinance Irrepealable. After said bonds are issued, this Ordinance shall be and remain Irrepealable until said bonds and the interest thereon shall have been fully paid, satisfied and discharged. Section 14. Recording and Authentication. This Ordi- nance , as adopted by the City Council , shall be numbered and recorded, and the adoption and publication shall be authenticated by the signatures of the Mayor and the City Clerk, and by the certificate of the publisher, respectively. Introduced, considered favorably on first reading, and ordered published this 16th day of May, 1978, and to be presented for final passage on the 6th day of June, 1978. ( S E A L ) Mayor ATTEST: 7-'/-,I�'� 2,- Z"t6 City Clecrk Passed and adopted on final reading this 6th day of June, 1978. "4 Mayor ATTEST: City Clerk - 12 -