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When any contractor, subdivider or any person other than the City, commences the construction of any public improvement, public liability for the condition and maintenance of public improvement shall be that of the contractor, subdivider or other person undertaking construction until the public improvement, upon completion, has been inspected by the City Engineer for compliance with City specifications, and accepted by the City. Nothing shall be construed to limit the liability of the City, its employees or agents, for its or their own acts in regard to any improvement between commencement of contracts and acceptance by the City. (Ord. 4020; 1968 Code §12-95; Ord. 91-36; Ord. 01-42)
PART 2 LOCAL IMPROVEMENT DISTRICT FUNDING
SECTION:
3.5.201: Issuance Of Bonds
3.5.202: Form Of Bond And Payment From Assessments
3.5.203: Bonds Not Debt Of City
3.5.204: Bonds Not Invalid Due To Defect
3.5.205: Bond Maturities
3.5.206: Bonds Negotiable
3.5.207: Bonds, Registration; Change Of City Officers
3.5.208: Use Of Bond Proceeds
3.5.209: Call Bonds; Procedure
3.5.210: Excess Funds
3.5.211: City May Pay Preliminary Expenses; Repayment From Bond Proceeds
3.5.212: Loans
A. Public improvement bonds of the City may be issued to pay for local improvements ordered by City Council under the provisions of this chapter.
B. These bonds may be sold in any manner approved by the City Council. Bonds and bond proceeds may be used for defraying the costs for services, labor, supplies and materials acquired by the City in constructing the improvements and administering the local improvement district.
C. Bonds may be delivered to the contractor or contractors in payment for all or part of the amounts due to the contractor or contractors. Bonds shall be accepted for the bond's principal amount. The Council may require in the advertising for bids or RFPs and in the contract documents that the contractor must accept bonds in payment of all or part of the contract price. (Ord. 2771; 1968 Code §12-62; Ord. 82-34; Ord. 01-42)
A. Local improvement bonds shall be in a form and dated as may be prescribed by the City Council. The bonds shall be issued in the name of the City and shall bear the name of the local improvement district. The bonds shall be payable to the bearer at a designated time. The term of the bonds shall be a sufficient period of years to cover the time of construction and the bond payment schedules, however, the term of the bond shall be subject to early calls. The bonds shall be in convenient denominations as determined by the Chief Financial Officer. The bonds shall be issued by the Chief Financial Officer based upon the cost estimates of the City Engineer as approved by the Council. The Chief Financial Officer shall maintain a record of the bonds and cost estimate. The bonds shall be manually signed by the Chief Financial Officer and shall bear the engraved, printed, stamped or otherwise reproduced facsimile of the Mayor's signature, which shall be attested by the City Clerk. Each bond shall have the seal of the City affixed. Each bond issued under this chapter shall recite in substance that the bond and the interest are payable solely from the special assessments and/or other monies pledged to its payment.
B. Except as provided, the bond's principal and interest shall only be payable out of monies collected from the assessments for the improvements in the district. The assessments on a local improvement district shall be applied to the payment of the bonds issued for that local improvement district until the payment of the bonds is completed. The payment of the bonds shall be additionally secured by a pledge of funds from the special surplus and deficiency fund. If for any reason assessments are not paid in time to make the bond payments when due and there is not sufficient money in the special surplus and deficiency fund, then the City may pay the bonds when due and reimburse itself by collecting the unpaid assessments. (Ord. 2771; 1968 Code §12-63; Ord. 01-42; Ord. 11-19)
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