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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