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Ordinance 92-2782 ORDINANCE NO. 92-2782 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA, RELATING TO THE IMPOSITION AND LEVYING OF SPECIAL ASSESSMENTS TO FINANCE THE ACQUISITION AND CONSTRUCTION OF LOCAL IMPROVEMENTS WITHIN THE CITY; PROVIDING FOR THE POWERS OF THE CITY COMMISSION; ESTABLISHING A METHOD FOR THE LEVY AND PAYMENT OF SPECIAL ASSESSMENTS; PROVIDING FOR AN ALTERNATIVE METHOD OF COLLECTION; PROVIDING FOR THE ISSUANCE OF BONDS; PROVIDING REMEDIES FOR BONDHOLDERS; PROVIDING FOR THE ISSUANCE OF REFUNDING BONDS; PROVIDING SAVING PROVISIONS; PROVIDING THIS ORDINANCE AS AN ALTERNATIVE METHOD; AND PROVIDING FOR SEVERABILITY AND AN EFFECTIVE DATE. WHEREAS, pursuant to Chapter 166, Florida Statutes, as amended, the City of Miami Beach (the "City") is authorized to provide for the acquisition and construction of local improvements, to finance the same through the imposition and levying of special assessments and to issue bonds secured in whole or in part by the levy of such special assessments; and WHEREAS, the City has determined and declared that it is necessary and conducive for the protection of the public health, safety, welfare and convenience of the citizens of the City to establish a procedure for the imposition and levying of special assessments to finance the acquisition and construction of local improvements within the City and to authorize the issuance of bonds secured in whole or in part by such special assessments: NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF MIAMI BEACH, FLORIDA: SECTION 1. Definitions. As used in Sections 1 through 11 of this Ordinance, the following words and terms shall have the following meanings, unless some other meaning is plainly intended: "Approving Resolution" shall mean the resolution described in subsection (D) of Section 3 hereof which shall approve the plans, specifications, estimated Costs and Tentative Assessment Roll and shall confirm or deny the Initial Resolution. "Assessment Roll" shall mean the assessment roll as approved by the Final Resolution. "Bonds" shall mean the bonds issued by the City pursuant to resolution of the City, payable from the Pledged Revenues. L1I(' "City" shall mean the City of Miami Beach, Florida. "City Attorney" shall mean the City Attorney of the City, or his or her designee. "City Manager" shall mean the City Manager of the City, or his or her designee. "Clerk" shall mean the City Clerk, or his or her designee. "Commission" shall mean the City Commission of the City of Miami Beach, Florida. "Cost" or "Costs" shall mean, as applied to the acquisition and construction of any Projects authorized by the Commission, (A) the cost of physical construction, reconstruction or comple- tion, (B) the costs of acquisition or purchase, (C) the cost of all labor, materials, machinery and equipment, (D) the cost of all lands and interest therein, property rights, easements and fran- chises of any nature whatsoever, (E) the cost of any indemnity and surety bonds and premiums for insurance during construction, (F) interest prior to and during construction and for such period of time after completion of the acquisition or construction of such Projects as the Commission deems appropriate, (G) amounts necessary to pay redemption premiums for early retirement of Bonds, (H) the creation of reserve funds, (I) costs and expenses related to the issuance of Bonds or other indebtedness related to Project, all financing charges and any expenses related to any liquidity faci- lity or credit facility, including interest on Bonds held by the issuer of such liquidity facility or credit facility, (J) cost of preliminary plans and specifications, construction plans and specifications, surveys, preparation of estimates of costs and assessment rolls, (K) cost of engineering, testing, permitting, financial, legal and other consultant services, (L) costs related to the imposition and collection of special assessments, including any advertising, postage and any service charges of the Dade County Tax Collector or Dade County Property Appraiser and amounts necessary to off-set discounts received for early payment of special assessments pursuant to applicable law, and (M) all other costs and expenses properly attributable to such acquisition and -2- construction, and such other expenses as may be necessary or inci- dental to financings authorized by this Ordinance and including reimbursement of the City or any other person, firm or corporation for any moneys advanced for any costs incurred by the City or such person, firm or corporation in connection with any of the foregoing items of cost. "Dade County" shall mean Metropolitan Dade County, Florida. "Dade County Clerk" shall mean the Clerk of the Circuit Court of Dade County, Florida, Ex-officio Clerk of the Board of County Commissioners of Dade County, Florida. "Director of Public Works" shall mean the Director of Public Works of the City or any engineer or firm of engineers retained by the City, or such other officer or officers as the Commission may designate in the Initial Resolution, which shall perform the responsibilities of the Director of Public Works as provided herein. "Final Resolution" shall mean the resolution described in sub- section (J) of Section 3 hereof which shall approve the Assessment Roll. "Finance Director" shall mean the Finance Director of the City, or his or her designee. "Initial Resolution" shall mean the resolution described in subsection (A) of Section 3 hereof which shall be the initial pro- ceeding for levying and imposing special assessments. "Pledged Revenues" shall mean (A) the proceeds of the Bonds, including investment earnings; (B) special assessments levied and collected under the authority of this Ordinance; and (C) any other non-ad valorem revenues pledged by the City under the proceedings authorizing the Bonds. "Preliminary Assessment Roll" shall mean the preliminary assessment roll prepared by, or at the direction of, the Director of Public Works as described in subsection (H) of Section 3 hereof. "Projects" shall mean any local improvements authorized by law to be financed by the imposition and levying of special assessments which the City shall determine to construct or acquire and which -3- the City shall finance, in whole or in part, from the proceeds of special assessments levied pursuant to the provisions of this Ordinance, including, but not limited to: (A) the construction, reconstruction, repair, paving, repaving, hard surfacing, rehard surfacing, widening, guttering, and draining of streets, boulevards, and alleys; grading, regrading leveling, laying, relaying, paving, repaving, hard surfacing, and rehard surfacing of sidewalks; construction or reconstruction of permanent pedestrian canopies over public sidewalks; and in connection with any of the foregoing, providing related lighting, landscaping, street furniture, signage and other amenities as determined by the Commission; (B) the construction, reconstruction, repair, renovation, excavation, grading, stabilization, and upgrading of greenbelts, swales, culverts, sanitary sewers, storm sewers, outfalls, canals, primary, secondary, and tertiary drains, water bodies, marshlands, and natural areas, all or part of a comprehensive stormwater management system, including the necessary appurtenances and structures thereto and including, but not limited to, dams, weirs and pumps; (C) the construction or reconstruction of water mains, water laterals, and other water distribution facilities, including the necessary appurtenances thereto; (D) the construction or reconstruction of parks and other public recreational facilities and improvements, including appurtenances thereto; (E) the construction and reconstruction of sea walls; (F) the drainage and reclamation of wet, low, or overflowed lands; (G) the construction of offstreet parking facilities, parking garages, or similar facilities; (H) the construction of mass transportation systems; and (I) the construction of improvements to permit the passage and navigation of watercraft. -4- However, offstreet parking facilities, parking garages, or other similar facilities and mass transportation systems must be approved by vote of a majority of the affected property owners. "State" shall mean the State of Florida. "Tax Rolls" shall mean the real property assessment tax roll maintained by the Dade County Property Appraiser for the purpose of the levy and collection of ad valorem taxes. "Tentative Assessment Roll" shall mean the tentative assess- ment roll prepared by, or at the direction of, the Director of Public Works as described in subsection (B) of Section 3 hereof. SECTION 2 . Powers. For the purpose of providing the services and facilities described in this Ordinance, the Commission shall have the following authority and powers: (A) To acquire, improve and construct the Projects. (B) To levy and collect special assessments against property deemed to be benefited by the Projects or any portion thereof in the manner provided in this Ordinance. (C) To authorize and issue Bonds to finance the Cost of the Projects payable from Pledged Revenues in the manner provided in this Ordinance. (D) To acquire in the name of the City, either by purchase or the exercise of the right of eminent domain by the City, such lands and rights and interests and to acquire such personal prop- erty as may be deemed necessary in connection with the acquisition and construction of the Projects. (E) To make and enter into all contracts and agreements necessary or incidental to the performance of its duties and the execution of its powers under this Ordinance, and to employ such consulting engineers, attorneys, accountants, construction and financial experts, superintendents, managers and other employees, contractors and agents as may, in the judgment of the Commission, be deemed necessary or convenient and to fix their compensation or to make available such existing employees, contractors or agents as the Commission may authorize in its sole judgment. -5- (F) To exercise any and all of the powers of the City not enumerated above necessary or incident for the purpose of providing the services, improvements and benefits described in this Ordinance. SECTION 3. Levy and Payment of Special Assessments. The Commission may provide for the Cost of a Project by the levying in the area in which the Project is located special assessments upon benefited property within such area at the rate of assessment based on the special benefit accruing to such property from such Project. Such special assessments shall be assessed in conformity with the following special assessment procedure: (A) The initial proceeding shall be the passage by the Com- mission of the Initial Resolution ordering the acquisition, con- struction or reconstruction of assessable improvements constituting an individual Project, indicating, in general, the location and description of such improvements, which shall be sufficient to en- able the Director of Public Works to prepare, or cause to be prepared, the plans and specifications of such improvements as described in subsection (B) of this Section 3 . The Initial Resolution shall also state the portion, if any, of the Project to be paid by the City, the estimated Costs of the Project and the method of assessment, which may be by frontage, acreage, square footage, parcel or any other combination thereof or any other method deemed equitable by the Commission. The Initial Resolution may provide for alternative descriptions of the improvements and method of assessment. The improvements need not be continuous and may be in more than one locality or street. The Initial Reso- lution ordering any such improvement may give any short and con- venient designation to each improvement ordered thereby and the property against which assessments are to be made for the cost of such improvements may be designated as a district distinguishable from other districts. The Initial Resolution shall be promptly recorded by the Clerk in the Official Records Book in the office of the Dade County Clerk. -6- (B) (i) As soon as possible after the passage of the Initial Resolution, the Director of Public Works shall prepare, or cause to be prepared, in triplicate, plans, specifications and Cost estimates for the improvements constituting the Project. If the Initial Resolution shall provide alternative descriptions of the improvements or method of assessment, such plans, specifications and Cost estimates shall include an estimate of the Cost of the improvement of each such alternative. (ii) The Director of Public Works shall also prepare, or cause to be prepared, in triplicate, the Tentative Assessment Roll, which Roll shall contain (a) a description of the lots and parcels of real property which will benefit from such assessable improvements and the estimated amount of benefits to each such lot or parcel of property, provided such lots and parcels shall include the property of the City and any school district, special district, municipality or political subdivision; (b) the name of the owner of record of each lot and parcel as shown on the Tax Rolls or such other source or sources as the Director of Public Works or Clerk deems reliable; (c) the total estimated Cost of the improvements to each benefited lot or parcel and (d) the method or alternative methods of assessment utilized in determining the Cost of the improvements to be assessed to property owners, including any for- mulas for dealing with irregular lots and any assumptions of depth of the improvements. The Tentative Assessment Roll shall not be held to limit or restrict the duties of the Director of Public Works in the preparation of the Preliminary Assessment Roll under the provision of subsection (H) of this Section 3 . One of the triplicates of such plans, specifications, Cost estimates and the Tentative Assessment Roll shall be filed with the City Manager, one shall be filed with the Clerk and the other triplicate shall be retained by the Director of Public Works in his files, all of which shall remain open to public inspection. (C) The Clerk upon the filing with him of such plans, specifications, Cost estimates and the Tentative Assessment Roll shall publish once in a newspaper of general circulation, published -7- in Dade County, and circulating in the City, a notice stating that at a meeting of the Commission on a certain day and hour, not earlier than 15 calendar days from such publication (including Saturdays, Sundays and legal holidays) , which meeting shall be a regular, adjourned or special meeting, the Commission will hear objections of all interested persons to the adoption of the Approving Resolution which shall approve the aforementioned plans, specifications, Cost estimates and Tentative Assessment Roll. Such notice shall state (i) in brief and general terms a description of the applicable Project with the location thereof (location may be established by reference to boundaries or a map) , (ii) the procedure for objecting provided in subsections (D) and (E) of this Section 3 , and (iii) that plans, specifications, Cost estimates and the Tentative Assessment Roll, which shall include the method or alternative methods of assessment, are on file with the Clerk and all interested persons may ascertain the amount to be assessed against a lot or parcel of property at the office of the Clerk. In addition to the published notice described above, the Clerk shall cause to be mailed a copy of the notice by first class mail to each property owner proposed to be assessed. Notice shall be mailed, at least 15 calendar days prior to the hearing, to each property owner at such address as is shown on the Tax Rolls or such other source or sources as the Director of Public Works or Clerk deems reliable. Notice shall be deemed mailed upon delivery thereof to the possession of the U.S. Postal Service. The failure of the Clerk to mail such notice shall not constitute a valid objection to holding the hearing as provided in this Section 3 or to any other action taken under the authority of this Section 3 . The Clerk may provide proof of such notice by affidavit. (D) At the time named in such notice, or to which an adjourn- ment may be taken by the Commission, the Commission shall receive any objections of interested persons and may then or thereafter adopt the Approving Resolution which shall (i) approve the afore- mentioned plans, specifications, Cost estimates and Tentative Assessment Roll, including the method of assessment, with such -8- amendments as it deems just and right, and (ii) repeal or confirm the Initial Resolution with such amendments, if any, as may be desired by the Commission. Special assessments shall be levied against all property in the applicable area specially benefited by the Project. In the event the Commission established alternative descriptions or methods of assessment in the Initial Resolution, the Commission shall provide in the Approving Resolution the description of improvements and method of assessment which shall be utilized. (E) All objections to the Approving Resolution shall be made either in writing, filed with the Clerk at or before the time or adjourned time of such hearing, or orally at the time of the hearing. Special assessments shall be established upon adoption of the Approving Resolution. The adoption of the Approving Resolution shall be the final adjudication of the issues presented (including, but not limited to, the method of assessment, the Ten- tative Assessment Roll, the plans and specifications, the estimated Cost of the Project, the interest rate the special assessments shall bear, and the terms of prepayments of the special assess- ments) unless proper steps shall be initiated in a court of compe- tent jurisdiction to secure relief within 20 days from the date of Commission action on the Approving Resolution. The Approving Resolution and a notice of the special assessments intended to be levied and imposed shall be promptly recorded by the Clerk in the Official Records Book in the office of the Dade County Clerk. Such notice shall provide the locations of the property which are to be assessed and direct interested parties to the Tentative Assessment Roll or Assessment Roll, upon approval thereof. The Tentative Assessment Roll, as approved by the Approving Resolution, shall be delivered to, and be kept by, the Clerk. (F) Whenever any Approving Resolution shall have been adopted, as hereinabove provided, or at any time thereafter, the Commission may issue Bonds, the interest, premium and principal of which are payable from the Pledged Revenues. Said Bonds shall mature not later than two years after the last installment in which -9- % said special assessments may be paid, as provided in Section 5 hereof, and shall bear interest at a rate not exceeding the maximum rate provided by law. (G) If, subsequent to the adoption of the Approving Resolu- tion, the Costs of an assessable improvement increase over the estimate of such Costs provided in the Tentative Assessment Roll, the Commission shall not assess the property on which such assess- able improvement has been constructed any Costs in excess of a twenty percent increase over the estimate provided therefor in the Tentative Assessment Roll. Costs in excess of such twenty percent increase shall be borne by the City and Costs not in excess of such twenty percent increase may be assessed against property in accordance with subsection (J) of this Section 3 . Nothing in this subsection (G) shall be construed as preventing the City from reassessing the Costs of assessable improvements pursuant to the provisions of this Ordinance. (H) Upon completion of the Project, the Commission shall certify completion of the acquisition and construction of the Project; provided such certification may not occur until such time as the Costs of the Project have been identified and approved by the Commission. Within such period of time after the certification of the completion of the acquisition or construction of the Project as may be directed by the City Manager (but in no event more than six months after such certification of the Project) , the Director of Public Works shall prepare, or cause to be prepared, the Preliminary Assessment Roll and file the same with the City Manager and the Clerk, which Roll shall contain the following: (i) A description of lots and parcels of real property within the assessed area which will benefit from such assessable improvements and the amount of such benefit from such assessable improvements and the amount of such benefits to each such lot or parcel of property. Such lots and parcels shall include the property of the City and any school district, special district, municipality or other political subdivision. There shall also be given the name of the owner of record of each lot or parcel -10- as shown on the Tax Rolls or such other source or sources as the Director of Public Works or Clerk deems reliable. (ii) The total Cost of the improvement to each bene- fited lot or parcel, which Cost shall be no greater than the Cost of such improvement as provided in the Tentative Assessment Roll, plus any additional Cost described in subsection (G) of this Section 3 . (iii) The method of assessment utilized in determining the Cost of improvements to be assessed to property owners, including any formulas for dealing with irregular lots and any assumptions of depth of the improvements. (I) The Preliminary Assessment Roll shall be advisory only and shall be subject to the action of the Commission as hereinafter provided. Subsequent to the filing with the City Manager and the Clerk of the Preliminary Assessment Roll, the Clerk shall publish at least once in a newspaper of general circulation, published in Dade County, and circulating in the City, a notice stating that at a meeting of the Commission to be held on a certain day and hour, not earlier than 15 calendar days from publication (including Saturdays, Sundays and legal holidays) , which meeting may be a regular, adjourned or special meeting, all interested persons may appear and file written objections to the approval of the Pre- liminary Assessment Roll . Such notice shall describe in general terms the assessable improvements, the location thereof (location may be established by reference to boundaries or a map) , and the procedure for objecting, and advise all persons interested that the description of each property to be assessed, along with the amount of the special assessment lien to be levied against the benefited property, may be ascertained at the office of the Clerk. In addi- tion to the published notice described above, the Clerk shall cause to be mailed at least 15 calendar days prior to the hearing a copy of the notice by first class mail to each property owner proposed to be assessed. Notice shall be mailed to each property owner at such address as is shown on the Tax Rolls or such other source or sources as the Director of Public Works or Clerk deems reliable. -11- The failure of the Clerk to mail such notice shall not constitute a valid objection to the approval of the Preliminary Assessment Roll. Notice shall be deemed mailed upon delivery thereof to the possession of the U.S. Postal Service. All objections shall be made either in writing, filed with the Clerk at or before the time or adjourned time of the hearing, or orally at the time of the hearing. The Clerk may provide proof of such notice by affidavit. (J) At the time and place stated in such notice, the Commission shall meet and receive the objections of all interested persons as stated in such notice. The Commission may adjourn the hearing from time to time. After the completion thereof the Commission shall adopt the Final Resolution which shall either annul or sustain or modify in whole or part the preliminary assessment as indicated on the Preliminary Assessment Roll, either by approving the preliminary assessment and the levy of a special assessment lien against the benefited property, against any or all lots or parcels described therein or by cancelling, increasing (provided such increase does not exceed the Cost provided in the Tentative Assessment Roll, plus any additional Cost described in subsection (G) of this Section 3) or reducing the same, according to the special benefits which the Commission shall decide each lot or parcel has received or will receive on account of such improve- ments. If any property which may be chargeable under this Section 3 shall have been omitted from the Preliminary Assessment Roll or if the preliminary assessment shall not have been made against it, the Commission may, upon compliance with the procedures set forth in this Section 3 , provide for the assessment of such omitted prop- erty. The Commission shall not confirm and levy any special assessment lien in excess of the special benefits to the property assessed, and the special assessment so confirmed and the special assessment lien to be levied by the adoption of the Final Resolu- tion shall be in proportion to the special benefits. Upon adoption of the Final Resolution, the Preliminary Assessment Roll shall become the Assessment Roll. The Final Resolution shall be the final adjudication of the issues presented including the levy and -12- lien of the special assessments, and shall provide for the rate of interest which the special assessments shall bear. Forthwith after adoption of the Final Resolution, the Assessment Roll shall be delivered to, and be kept by, the Clerk and the Final Resolution shall be promptly recorded by the Clerk in the Official Records Book in the office of the Dade County Clerk. The special assessments so made shall be final and conclusive as to each lot or parcel assessed and the adoption of the Final Resolution shall be the final adjudication of the issues presented unless proper steps be initiated within 20 days in a court of competent jurisdiction to secure relief; provided, however, issues adjudicated in the Approving Resolution may not be disputed except as provided in subsection (E) of this Section 3 . If the special assessment against any property shall be sustained or reduced or abated by the court, the Clerk shall note that fact on the Assess- ment Roll opposite the description of the property affected thereby. The amount of the special assessment against any lot or parcel which may be reduced or abated by the court, unless the special assessment upon the entire assessed area be reduced or abated, may by resolution of the Commission be made chargeable against the applicable assessed area at large, or, at the discre- tion of the Commission a new Assessment Roll may be prepared and approved in the manner hereinabove provided for the preparation and the approval of the original Assessment Roll. (K) (i) Except as otherwise provided by resolution of the Commission, no prepayments shall be accepted prior to adoption of the Final Resolution. Thereafter, any prepayments shall be made only upon payment of applicable interest, including interest included as a Cost of the related improvement, at the office of the Finance Director. The Commission, by resolution, may determine the time during which prepayments may be made and the amount of interest and premium payable at the time of a prepayment. If not prepaid, all special assessments shall be payable in equal principal installments, with interest on the balance at the rate set by the Final Resolution, or, if Bonds are issued pursuant to -13- this Ordinance, and except as otherwise provided in Section 5 hereof, at a rate not to exceed two percent above the true interest cost at which such Bonds are sold (provided such true interest cost may include any ongoing expenses related to the Bonds or collection of the assessments) , subject to the provisions of subsection (M) of this Section 3 , from the date the Final Resolution is adopted or such other date as the Commission may by resolution provide, payable in each of the succeeding number of years which the Commission shall determine by resolution, not exceeding 20 years; provided, however, that the Commission may provide by resolution that any special assessment may be paid at any time before due, together with any applicable prepayment premium and interest accrued thereon to the date of payment or such later date as shall be determined by the Commission by resolution, if such prepayment shall be permitted by the proceedings authorizing any Bonds or other obligations for the payment of which such special assessments have been pledged. (ii) All special assessments and installments thereof shall constitute a lien upon the property so assessed from the date the Assessment Roll is approved, by the adoption of the Final Resolution, of the same nature and to the same extent as the lien for general county and municipal taxes falling due in the same year or years in which such assessments or installments thereof fall due. Such lien shall be superior in dignity to all other liens, titles and claims, until paid. Any special assessment or installment not paid when due shall be collectible with such interest and with reasonable costs and expenses incurred by the City and its agents, including reasonable attorneys ' fees, in the collection of such delinquent assessments or as a result of such delinquent assessments (including interest costs paid for draws on a credit facility) , by the City or its agents as described in subsection (K) (iii) of this Section 3 . (iii) The City shall have the right to appoint an agent, in addition to the City Attorney, to foreclose and collect all delinquent assessments in the manner provided by law. If the -14- owner of any lot or parcel of land assessed pursuant to this Ordi- nance shall be delinquent in the payment of any special assessment for a period of 30 days, the City or its agent may declare the entire unpaid balance of such special assessment to be in default and cause such delinquent property to be foreclosed in the same method now or hereafter provided by law for the foreclosure of mortgages on real estate, or otherwise as provided by law. All costs, fees and expenses, including reasonable attorney fees, related to any foreclosure action as described in subsection (K) (ii) of this Section 3 shall be borne by the delinquent prop- erty owner. (iv) If prior to any sale of the property under decree of foreclosure in such proceedings, payment is made of the install- ment or installments which are shown to be due under the provisions of the Final Resolution, and by this subsection (K) , and all costs, fees and expenses of the City and its agent, as a result of such delinquent assessment, including reasonable attorneys ' fees and costs for draws on a credit facility, such payment, at the option of the City, shall have the effect of restoring the remaining installments to their original maturities as provided by the reso- lution passed pursuant to this subsection (K) and the proceedings shall be dismissed. (v) It shall be the duty of the City and its agent, if any, to enforce the prompt collection of special assessments by the means herein provided, and such duty may be enforced at the suit of any holder of Bonds issued under this Ordinance in a court of competent jurisdiction by mandamus or other appropriate pro- ceedings or action. (vi) The City may join in one action the collection of special assessments against any or all property assessed in accordance with the provisions hereof. All delinquent property owners whose property is foreclosed shall pay fees, costs and expenses incurred by the City and its agents, including reasonable attorneys ' fees, in collection of such delinquent assessments and any other costs incurred by the City as a result ,of such delinquent -15- assessments (including costs paid for draws on a credit facility) , and the same shall be collectible as a part of or in addition to, the costs of the action. (vii) At the sale pursuant to decree in any such action, the City may be the purchaser to the same extent as an individual person or corporation. Property so acquired by the City may be sold or otherwise disposed of, the proceeds of such disposi- tion to be placed in such fund as provided by any ordinance or resolution authorizing the issuance of the Bonds. (L) If special assessments made under the provisions of this Ordinance to defray the Costs of the Project shall be deemed by the Commission to be inadequate to meet the obligation owed to Bond- holders and to pay fees required for credit enhancement on the Bonds, if any, the Commission may, subject to the limitations of subsection (K) (i) of this Section 3, adjust the payment period of and the rate of interest on installment payments of the assessment so that payments of special assessments shall be sufficient to satisfy the contractual obligation owed to Bondholders and the provider of the credit enhancement. However, such adjustment shall not have the effect of increasing the amount of special assessment of any property in proportion to the amount of benefits conferred on that property. Further, the Commission, in adjusting the interest rates and the period of payment of special assessments, shall follow the provisions of this Section 3 providing for notice and hearing to interested persons and providing for passage of resolutions establishing special assessments. (M) If any special assessment made under the provisions of this Ordinance to defray the Costs of any Project shall be either in whole or in part annulled, vacated or set aside by the judgment of any court, or if the Commission shall be satisfied that any such special assessment is so irregular or defective that the same cannot be enforced or collected, or if the Commission shall have omitted to include any property on the Assessment Roll which properly should have been so included, or if the Commission shall have omitted to make such assessment when it might have done so, -16- the Commission shall take all necessary steps to cause a new special assessment to be made against any property benefited by any Project, following as nearly as may be practicable the provisions of this Ordinance and in case such new special assessment shall be annulled, the Commission may obtain and make other special assessments until a valid special assessment shall be made. (N) The Commission may pay out of any special fund that may be provided for that purpose such portion of the Costs of any Project as it may deem proper. (0) Any informality or irregularity in the proceedings in connection with the levy of any special assessment under the provisions of this Ordinance shall not affect the validity of the same after the confirmation thereof, and any special assessment as finally approved and confirmed shall be competent and sufficient evidence that such special assessment was duly levied, that the special assessment was duly made and adopted, and that all other proceedings adequate to such special assessment were duly had, taken and performed as required by this cs dinance; and no variance from the directions hereunder shall be hid material unless it be clearly shown that the party objecting was materially injured thereby. Notwithstanding the provisions of this subsection (0) , any party objecting to a special assessment imposed pursuant to this Ordinance must file an objection with a court of competent jurisdiction within the time periods prescribed herein. (P) The Commission may, by resolution, provide a procedure by which the lien of a special assessment on property may be appor- tioned between subdivided parcels of such property. The Commission may establish a different procedure of apportioning a special assessment lien for each assessed area. The Commission shall not establish a procedure which has a material adverse effect on the security for Bonds issued to finance the Project related to such special assessments. SECTION 4. Optional Method of Collection. As an alternative method to collection by the Clerk as provided in subsection (J) of Section 3 of this Ordinance, the -17- Commission may, at such time as it deems appropriate, authorize the collection of the special assessments in the manner provided for the collection of ad valorem taxes. Such alternative method shall be authorized by resolution of the Commission and the City shall comply with all applicable provisions of law relating to such alternative method, including Sections 197. 363 and 197 . 3632 , Florida Statutes, as amended, and any successor provision thereto. In the event such alternative method is used by the City, the provisions hereof shall be superseded to the degree of any conflict with applicable law. SECTION 5. Issuance of Bonds. The Commission shall have the power and it is hereby authorized to provide by resolution, at one time or from time to time in series, for the issuance of Bonds of the City for the purpose of paying all or part of the Cost of the Projects. The principal of and interest on each series of Bonds shall be payable from the Pledged Revenues. At the option of the Commission, the City may covenant to budget and appropriate from non-ad valorem revenue sources identified by the City by resolution or from general non-ad valorem revenues of the City an amount necessary to make up any deficiency in the payment of the Bonds. In anticipation of the sale of Bonds, the City may authorize the issuance of bond anticipation notes and may renew the same from time to time. Such notes may be paid from the moneys derived by the City from the proceeds of sale of the Bonds in anticipation of which they were issued or from Pledged Revenues. The notes shall be issued in the same manner as the Bonds. Bonds and notes shall be, and shall be deemed to be, for all purposes, negotiable instru- ments subject only to the provisions of the Bonds and notes for registration. The Bonds shall be dated, shall bear interest at such rate or rates, shall mature at such times as may be determined by resolution of the Commission, and may be made redeemable before maturity, at the option of the City, at such price or prices and under such terms and conditions as may be fixed by the Commission. -18- The Bonds may, at the option of the Commission, bear interest at a variable rate. The Commission shall determine by resolution the form of the Bonds, the manner of executing such Bonds, and shall fix the denomination or denominations of such Bonds, the place or places of payment of the principal and interest, which may be at any bank or trust company within or without the State of Florida, and such other terms and provisions of the Bonds as it deems appropriate. The Bonds may be sold at public or private sale for such price or prices as the Commission shall determine by resolution. The Bonds may be delivered to any contractor for payment for his work in constructing a Project. Prior to the preparation of definitive Bonds of any series, the Commission may, under like restrictions, issue interim receipts, interim certificates, or temporary Bonds, exchangeable for definitive Bonds when such Bonds have been executed and are available for delivery. The Commission may also provide for the replacement of any Bonds which shall become mutilated, or be destroyed or lost. Bonds may be issued without any other proceedings or the happening of any other conditions or things than those proceedings, conditions or things which are specifically required by this Ordinance. The City may issue Bonds for Projects in different areas pur- suant to a single resolution, provided such resolution identifies each Project to be financed. The City may, at its option, issue Bonds bearing a variable rate of interest, whereupon the interest rate and installment pay- ments applicable to special assessments shall be subject to adjust- ment as provided by resolution of the Commission. In such event, the city may impose on such annual installment payments such rate of interest as shall not exceed the maximum amount permitted by subsection (K) (i) of Section 3 hereof as shall be determined on the 15th day prior to the date the bill for such annual installment is mailed by the City. If amounts of interest collected by the City exceed, in the aggregate, the amount of interest that would have been collected if interest was imposed at the maximum rate -19- permitted to be charged on special assessments as provided in subsection (K) (i) of Section 3 hereof, the excess amounts shall be credited to the next installment or be returned to the property owners who paid such amounts, as provided by ordinance or resolu- tion of the Commission. If the amounts of interest collected by the City are less, in the aggregate, than the amount of interest that would have been collected if interest was imposed at the maxi- mum rate permitted to be charged on special assessments as provided in subsection (K) (i) of Section 3 , such deficiency may be imposed as a surcharge on the next installment. SECTION 6. Taxing Power Not Pledged. Bonds issued under the provisions of this Ordinance shall not be deemed to constitute a pledge of the faith and credit of the City, but such Bonds shall be payable from the Pledged Revenues in the manner provided herein and by the resolution authorizing the Bonds. The issuance of Bonds under the provisions of this Ordi- nance shall not directly or indirectly obligate the City to levy or to pledge any form of ad valorem taxation whatever therefor. No holder of any such Bonds shall ever have ;:he right to compel any exercise of the ad valorem taxing power on the part of the City to pay any such Bonds or the interest thereon against any property of the City, nor shall such Bonds constitute a charge, lien or encum- brance, legal or equitable, upon any property of the City, except the Pledged Revenues. SECTION 7 . Trust Funds. The Pledged Revenues received pursuant to the authority of this Ordinance shall be deemed to be trust funds, to be held and applied solely as provided in this Ordinance and in the resolution authorizing the Bonds. SECTION 8. Remedies of Bondholders. Any holder of Bonds, except to the extent the rights herein given may be restricted by the resolution authorizing issuance of the Bonds, may, whether at law or in equity, by suit, action, mandamus or other proceedings, protect and enforce any and all rights under the laws of the State or granted hereunder or under -20- such resolution, and may enforce and compel the performance of all duties required by this part, or by such resolution, to be performed by the City. SECTION 9. Alternative Method. This Ordinance shall be deemed to provide an additional and alternative method for the doing of the things authorized hereby and shall be regarded as supplemental and additional to powers conferred by the Charter of the City or by other laws, and shall not be regarded as in derogation of any powers now existing or which may hereafter come into existence. This Ordinance, being necessary for the welfare of the inhabitants of the City, shall be liberally construed to effect the purposes hereof. SECTION 10. No Referendum Required. No referendum or election in the City shall be required for the exercise of any of the provisions of this Ordinance, unless such referendum or election is required by the Constitution of the State. SECTION 11. Refunding Bonds. The City may, by resolution of the Commission, authorize the issuance of Bonds to refund any bonds issued pursuant to the authorization of this Ordinance. Such refunding Bonds may be issued in an amount sufficient to provide for the payment of the principal of, redemption premium, if any, and interest on the outstanding Bonds to be refunded. In the event the principal amount of the refunding Bonds shall be greater than the outstanding principal amount of the Bonds to be refunded, the Commission may increase the assessments which secure such refunding Bonds up to an amount not to exceed the difference between the respective principal amounts of the refunding Bonds and the outstanding refunded Bonds; provided notice to the affected property owners is given in accordance with the notice provisions of Section 3 hereof and a public hearing is held by the Commission. SECTION 12. Saving Provisions. The provisions of this Ordinance shall apply for all special assessments hereinafter levied and imposed by the City for the -21- purpose of financing local improvements, unless otherwise provided by the Commission in a resolution adopted with respect to a local improvement project to be financed by special assessments. This Ordinance shall not be effective as to any special assessments heretofore levied and imposed by the City or as to any local improvements to be financed by special assessments which have been completed but as to which special assessments have not been finally levied and imposed by the City. SECTION 13. Severability. In the event that any portion or section of this Ordinance is determined to be invalid, illegal or unconstitutional by a court of competent jurisdiction, such decision shall in no manner affect the remaining portions or sections of this Ordinance which shall remain in full force and effect. SECTION 14. Effective Date. This Ordinance shall take effect ten (10) days after its adoption. PASSED AND ADOPTED THIS 17thDAY O June , 1° 32 . Mayor ATTEST: FORM APPROVED - LEGAL DEPT. IA„LLL/ At, 44c, 1h... City Clerk ' /� / B�s-u�-•G 1st reading 6/3/92 as amended Date 2nd reading 6/17/92 O5/]9/9]\JNI\III*CItJl.t$W -22- CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 OFFICE OF THE CITY MANAGER TELEPHONE: (305) 673-7010 FAX: (305) 673-7782 COMMISSION MEMORANDUM NO. 373_ 9z, TO: Mayor Seymour Gelber and DATE: June 3 , 1992 Members of the City Commission FROM: Roger M. Canto City Manager SUBJECT: HOME RULE SPECIAL ASSESSMENT ORDINANCE ADMINISTRATION AND CITY ATTORNEY RECOMMENDATION: The Administration and the City Attorney recommend, based upon the recommendation of bond counsel, that the City Commission pass the attached Home Rule Special Assessment Ordinance. BACKGROUND: Under Florida law there are three methods of implementing special assessment areas in a municipality: 1) Home Rule Ordinance pursuant to Chapter 166 of the Florida Statutes. 2) Chapter 170 of the Florida Statutes. 3) Pursuant to local charter. By way of information, the proposed North Shore Special Assessment Project was delayed for a long period as a result of a ruling in the Boca Raton case which left bond counsel in Florida uncertain as to the legality of using Chapter 166 as a means of levying special assessments. In February 1992 the Florida Supreme Court held in City of Boca Raton v. State of Florida that the use of Home Rule Powers under Chapter 166 of the Florida Statutes for special assessments was a valid and proper use of municipal power. The City had a legislative priority at the last legislative session to add to Chapter 170 lighting and landscaping and other elements as authorized projects, because Chapter 170 did not include these elements at that time, and lighting and landscaping elements are an important portion of any reconstruction project. While these changes were implemented at the last legislature, there continue to be limitations on the use of Chapter 170 which make a Home Rule Ordinance more preferable. 3 AGENDA ITEM R- — DATE L! ,-9 2, ANALYSIS: The attached Ordinance, which was prepared by the City's bond counsel, Greenberg Traurig et al, provides the most flexible means of levying a special assessment and is the means most widely used by other municipalities in the State of Florida. Moreover, bond counsel has recommended the adoption of this Home Rule Ordinance as a preferable means over Chapter 170 and the Charter. Once the Ordinance is adopted, it can be used to levy special assessments in the North Shore project and any other special assessment project to be created in the future. CONCLUSION: The City Commission should pass the attached Ordinance to provide flexibility in the City's powers for levying special assessments. PNB:lm C:\memos\homerut.cit 4 2 t • 0 . u • CU 0 ate) . �' N +. , Co t4 . +� v a) 0 J (N 0 0 N at 0 a-) • ".� a -H -r-1 0 -H a.lC) Z �•� -H -H cj V O -7..} <ll ^J' 4i C -H \>,\ � A - CCI) 3 M) x -E-1 CO Cu o - Cl) u) i ▪ a) 0 0 cci -rJ 1/41 -H C Cl) 1-+ +0-1 -H 0 • C..) ) � CDa" 04 €) f + U LA A