Chapter 17.18 General Obligation Improvement Warrants

(Amended by Ordinance Nos. 140586, 141599, 146747 and 157298, effective May 2, 1985.) Notwithstanding other provisions of this Code, the Council hereby authorizes the financing of local improvements by the issuance of general obligation improvement warrants in accordance with the procedures provided by State law except as otherwise provided herein. General obligation improvement warrants may be issued when authorized by ordinance in an amount equal to the indebtedness to be incurred by the City in constructing the local improvement including all costs of land acquisition, advertising, engineering and superintendence fees, and any special preliminary services or studies that may be assessed on benefited property, and an amount equal to the amount to be paid by the City to the contractor for the construction of a local improvement, not exceeding the bid price of each contract plus 15 percent for approved change orders. If the local improvement has not yet been bid and a successful bidder accepted, the engineer’s estimate for construction cost may be used.

(Amended by Ordinance Nos. 140586, 141599, 146747 and 173295, April 28, 1999.)

A. From time to time, the Council may, upon recommendation of the City Treasurer and Responsible Official, call for bids on the interest rate for general obligation improvement warrants on the estimated amount of proposed assessments for local improvement districts authorized or to be authorized. Bids shall meet the conditions and requirements provided for in the authorizing ordinance.

B. Upon return of bids the Council may award to the highest and best qualified bidder offering the most advantageous interest rate, the full amount of general obligation improvement warrants to be issued for local improvements specified in the ordinance requesting bids. Provided further, the Council may reject any and all bids.

C. The ordinance authorizing the call for bids shall also authorize the issuance of the general obligation improvement warrants to the successful bidder as determined by the Council, subject to the provisions of this Chapter. Thereafter, the City Treasurer is authorized to deliver to the successful bidder from time to time as the Treasurer deems necessary general obligation improvement warrants in an amount equal to the indebtedness to be incurred by the City in constructing the local improvement including all costs of land acquisition, advertising, engineering and superintendence fees, and any special preliminary services or studies that may be assessed on benefited property, and an amount equal to the amount to be paid by the City to the contractor for the construction of a local improvement, not exceeding the bid price of each contract plus 15 percent for approved change orders. If the local improvement has not yet been bid and a successful bidder accepted, the engineer’s estimate for construction cost may be used.

D. General obligation improvement warrants shall be issued in denominations as stated in the ordinance authorizing call for bids; shall be numbered consecutively; shall be dated the first day of the month in which they are delivered to the successful bidder and shall mature within the time provided by State law. The successful bidder shall pay accrued interest from the date of the warrants to the time of delivery.

E. The City Treasurer shall deposit all proceeds from the issuance of said General Obligation Improvement Warrants in the Improvement Warrant Sinking Fund established in Section 5.04.210 of this Code.

(Amended by Ordinance No. 146747, effective Dec. 4, 1978.) The proceeds from each series of general obligation improvement warrants issued for a local improvement district construction contract shall be retained in the Improvement Warrant Sinking Fund until payment shall be authorized.

Upon completion of any local improvement contract and the spreading of assessments upon the property benefited thereby, all proceeds from the collection of unbonded assessments, the sale of improvement bonds, and the foreclosure of improvement liens for unbonded assessments realized from the local improvement with respect to which such general obligation improvement warrants are issued, shall be transferred from the Local Improvement District Assessment Fund created for the particular improvement and placed in the Improvement Warrant Sinking Fund in an account to be applied to the call and payment of such warrants as rapidly as funds are available as provided by statute.

In the event the owner of any property benefited by the construction of a local improvement which has been financed by the issuance of general obligation improvement warrants shall fail to either pay any assessment upon such property or apply for bonding of such assessment as provided for in Section 17.12.140 of this Code within 60 days of the time the assessment is due and payable, the Treasurer shall immediately cause such property to be sold as provided in Charter Section 9-804 and deposit the proceeds of the sale in the Local Improvement District Assessment Fund created for that particular improvement to be transferred to the appropriate account within the Improvement Warrant Sinking Fund.

The Council shall provide in its budget for the fiscal year in which general obligation improvement warrants will mature such amount for the payment thereof as shall be estimated or determined to be owing thereon and unpaid at the maturity thereof after application of collections made prior to such maturity as provided in this Chapter. Such monies shall be placed in the Improvement Warrant Sinking Fund to repay outstanding warrants as needed.