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All actions, legal or equitable, for relief against any proceedings had under this chapter whether based upon irregularities or jurisdictional defects, shall be commenced within thirty (30) days after the wrongful act complained of or else be perpetually barred. (Ord. 2771; 1968 Code §12-91; Ord. 01-42)
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)
Bonds issued pursuant to this chapter shall not be a debt of the City, and the City shall not be liable on the bonds, nor shall the City thereby pledge its full faith and credit for payment of the bonds, nor shall the bonds be payable out of any funds other than the special assessments and other monies pledged to the payment of the bonds. No property of the City shall be liable to be forfeited or taken in payment of the bonds. (Ord. 2771; 1968 Code §12-64; Ord. 01-42)
Bonds issued by the City shall not be invalid for any irregularity or defect in the proceedings for their issuance, sale or delivery and shall be incontestable in the hands of bona fide purchasers or holders for value. (Ord. 2771; 1968 Code §12-75; Ord. 01-42)
Local improvement bonds shall have an issue date. The bonds shall also have a date of maturity which does not exceed the estimated life of the bonded improvements, but in any event the date of maturity shall not exceed twenty (20) years from the issue date of the bond. The bonds shall bear interest payable annually, or at a lesser interval or intervals, as may be prescribed by the bond ordinance. The bonds shall be payable in United States dollars at those places designated by the bond ordinance. At the option of the City Council the bonds may be in one or more series, and may be made subject to prior redemptions in advance of maturity with or without the payment of a premium or premiums. No premium shall exceed five percent (5%) of the principal amount of each bond redeemed.
The bonds may be issued with privileges for registration for payment as to principal or interest, or both, and generally shall be issued in a manner and form, with recitals, terms, covenants, conditions and other details, as may be determined by the Council in the ordinance or ordinances authorizing the bonds, except as otherwise provided. (Ord. 2771; 1968 Code §12-66; Ord. 82-34; Ord. 01-42)
Except for payment provisions specifically provided, local improvement bonds and any interest coupons attached to the bonds shall be fully negotiable within the meaning of and for all the purposes of the Colorado Uniform Commercial Code-Investment Securities. (Ord. 2771; 1968 Code §12-66; Ord. 01-42)
Except for bonds which are registrable for payment of interest, interest coupons shall be payable to bearer. The interest coupons shall be attached to the bonds and shall bear the original or facsimile signatures of the officers signing the bonds. The bonds and coupons bearing the signatures of the officers in office at the time of signing shall be valid and binding on the City, notwithstanding that before delivery and payment, any or all of the persons whose signatures appear shall have ceased to fill their respective offices. (Ord. 2771; 1968 Code §12-67; Ord. 01-42)
All monies received from the issuance of any authorized bonds shall be used solely for the purpose or purposes for which issued, including, without limitation, if authorized, the payment of preliminary expenses incurred in connection with the purpose, the payment of interest on the bonds for a period not to exceed three (3) years from the date of the bonds, and all other incidental expenses. However, any unexpended balance of bond proceeds remaining after the completion of the acquisition or improvements for which the bonds were issued shall be paid immediately into the fund created for the payment of the bond principal and shall be used in that manner. The validity of the bonds shall not be dependent on or affected by the validity or regularity of any proceedings relating to the acquisition or improvements for which the bonds are issued. The purchaser or purchasers of the bonds shall in no manner be responsible for the application of the proceeds of the bonds by the City or any of the City's officers, agents and employees. (Ord. 2771; 1968 Code §12-68; Ord. 01-42)
Whenever it is considered advisable by the City, and the Chief Financial Officer has funds in the Chief Financial Officer's hands to the credit of any local improvement district exceeding the amount of interest on the unpaid principal accruing on the next principal payment date and, if maturing serially, the principal accruing on the next principal payment date, then the Chief Financial Officer shall, by publication at least once not less than fifteen (15) days prior to the redemption date in a newspaper of general circulation in the City, call in a suitable number of bonds of the local improvement district for payment for the principal amount of those bonds and accrued interest to the redemption date. The notice shall specify the bonds being called by number, and the called bonds shall be paid in the order designated in the authorizing ordinance. After the designated redemption date interest on the called bonds shall stop accruing. Nothing shall be construed as preventing the City from providing that bonds shall be redeemed only on interest payment dates. The holder of any bonds may at any time furnish the holder's post office address to the Chief Financial Officer, and in which case a copy of the advertisement shall be mailed by the Chief Financial Officer to the holder of the bonds called, at the address provided, within three (3) days of the date of notice publication. (Ord. 2771; 1968 Code §12-69; Ord. 01-42; Ord. 11-19)
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