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HomeMy WebLinkAboutResolution - 2008-R0066 - Interlocal Agreement - Lubbock Central Appraisal District - Asset Collection - 02_28_2008Resolution No. 2008-ROO66 February 28, 2008 Item No. 5.6 RESOLUTION BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the Mayor of the City of Lubbock BE and is hereby authorized and directed to execute for and on behalf of the City of Lubbock an Interlocal Agreement with the Lubbock Central Appraisal District to provide the services necessary for the collection of the assessments levied by the City Council against property in the Vintage Township Public Improvement District. Said Agreement is attached hereto and incorporated in this Resolution as if fully set forth herein and shall be included in the minutes of the Council. Passed by the City Council this 28th day of February~ , 2008. DAVID A. MILLER, MAYOR ATTEST: Reb.--ccl Garza, City Secretary APPROeI'ED AS TO CONTENT: Rob Aflisan, Assi-stet City Manager Development Services APPROVED AS TO FORM: Linda L. Chamales, Senior Attorney Office Practice Section. City An / Linda Res -Vintage PID Collection Agreement February 13, 2008 Resolution No. 2008--R0066 INTERLOCAL AGREEMENT FOR THE COLLECTION OF ASSESSMENTS LEVIED ON PROPERTY WITHIN THE VINTAGE TOWNSHIP PUBLIC IMPROVEMENT DISTRICT, CITY OF LUBBOCK, TEXAS STATE OF TEXAS COUNTY OF LUBBOCK § This Agreement is entered into this 28th day of February, 2008, between the City of Lubbock (hereinafter called "City") and the Lubbock Central Appraisal District, (hereinafter called "Appraisal District") for collection of assessments levied within the Vintage Township Public Improvement District of the City of Lubbock (hereinafter called the "Vintage PID") pursuant to the authority granted by and in compliance with the provisions of the Interlocal Cooperation Act, Chapter 791, Texas Government Code, and the provisions of the Public Improvement Assessment Act, Chapter 372, Texas Local Government Code; WHEREAS, the City Council of the City of Lubbock in Resolution No. 2007- R0022 passed January 12, 2007, authorized and created the Vintage Township Public Improvement District (Exhibit A) under Chapter 372 of the 'Texas Local Government Code, and designated the Lubbock City Council as the entity responsible for the management of and provision of services and improvements to the District; and WHEREAS, on .tune 26, 2007, the City Council passed Ordinance No. 2007- 00058, (Exhibit B) as amended on February 14, 2008, pursuant to Ordinance No. 2008- 00005 (Exhibit C), approving the Service and Assessment Plan and Assessment Roll for the Vintage Township Public Improvement District and levying assessments within the Vintage PID in accordance with Chapter 372 of the Texas Local Government Code; and WHEREAS, the City Council of the City of Lubbock desires to contract with the Appraisal District to provide all the services necessary for the collection of assessments levied by the City Council against property in the Vintage PID and to deposit such assessments with the City of Lubbock for the benefit of the Vintage Township Public Improvement District; and WHEREAS, the Appraisal District is able and willing to perform said collection services and is desirous of entering into an agreement with the City for collection of assessments levied within the Vintage Township Public Improvement District; NOW THEREFORE, the parties hereto agree as follows: Vintage PID / LCAD Agreement ARTICLE I RECITALS AND EXHIBITS PART OF AGREEMENT The representations, covenants, and recitations set forth in the foregoing recitals are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Article 1. Exhibits A, B, and C, attached hereto are incorporated into this Agreement as if fully set forth herein. ARTICLE II RESPONSIBILITIES OF THE APPRAISAL DISTRICT The Appraisal District, acting by and through its duly authorized officers, does hereby agree to perform all collection services on behalf of the Vintage Township Public Improvement District of the City of Lubbock, pursuant to Texas Local Government Code Chapter 372 and City of Lubbock Ordinance No. 2008-0005 (Exhibit C), and to forward said funds to the City of Lubbock for deposit into the appropriate funds held under the Indenture of Trust dated 2008, between the City and the Bank of New York Trust Company, N.A. ("Trustee'") pertaining to the issuance by the City of its Vintage Township Public Improvement District Special Assessment Revenue Bonds, Series 2008A and Series 2008B (Lubbock, Texas). The City has entered, or will soon enter into an Administration Agreement with MuniCap, Inc. (the "Administrator'') pertaining to the Vintage PID. The Appraisal District will provide a list of tax parcels in the Vintage PID as of January 1 to the Administrator by June 30 of each year. The Administrator will identify properties within the PID boundary and calculate the assessment due for the Vintage Township Public Improvement District in accordance with the Vintage PID Service and Assessment Plan. The Administrator will provide such calculation to the City and the City will provide such calculations to the Appraisal District. Assessment bills will be sent to affected property owners prior to November 15, 2008, or as soon thereafter as practicable, for the 2008 installment of the assessments and the assessments will be due January 31, 2009. Future years' assessments shall be determined and billed in like manner, pursuant to the then current assessment ordinance. Future years' bills will be sent prior to November 15, or as soon thereafter as practicable and due the following January 31. On or before March 1 of each year, and again prior to May 1, the Appraisal District will calculate the amount of assessments collected and the funds due to the Vintage Township Public Improvement District will be forwarded to the City for deposit as provided in the preceding paragraph. Vintage PID / LCAD Agreement 2 ARTICLE III RESPONSIBILITIES OF THE CITY The City will provide to the Appraisal District a certified copy of the assessment ordinance; the calculations of the annual installments of the assessments due each year as described in Article I and provided to the City by the Administrator; a list of the properties, identified by Iegal description and appraisal district account number, designated for assessment under current and future assessment ordinances; and the name and phone number of a designated city official to be included on the annual assessment bill for the purpose of answering questions concerning the assessment by August 31 of each year that this agreement continues in force. The Vintage PID, acting by and through its Board of Directors, the City Council of the City of Lubbock, does hereby agree to pay to the Appraisal District as compensation for services rendered pursuant to this Agreement, for all parcels within the Vintage PID, an amount equal to the cost per parcel for all other cities and independent school districts as calculated in the AGREEMENT FOR ASSESSMENT AND COLLECTION OF TAXES between the City of Lubbock and the Appraisal District or of 1% of the annual collection budget of the Appraisal District, whichever is greater. The above stated compensation will be deducted by the Appraisal District from the total annual Vintage PID assessments collected prior to the funds being forwarded to the City for deposit with notation of the amount deducted and accompanying documentation. Any start-up or computer or software programming costs associated with these assessments will be reimbursed to the Appraisal District by the Vintage PID in the amount of the actual costs. ARTICLE IV COLLECTION OF DELINQUENT ASSESSMENTS The Appraisal District may contract with any competent attorney to assist in the collection of delinquent assessments on behalf of the City acting for the Vintage PID. The attorney's compensation shall be set in the contract, but the total amount of compensation provided may not exceed the amount authorized in Section 6.03 of the Texas Property Tax Code. Said compensation shall be deducted from the delinquent assessment collected prior to the funds being forwarded to the City for deposit with notation of the amount deducted and accompanying documentation. Vintage PID 1 LCAD Agreement 3 ARTICLE V TERM The term of this Agreement shall be for a period of one year, beginning on the 28th day ofFeb 2008, and may be extended from year to year unless the parties elect to terminate the Agreement according to its terms. ARTICLE VI TERMINATION In the event the Appraisal District or the City desire to terminate this Agreement at the end of the primary term or any extension thereof, the party desiring termination shall give notice in writing at least thirty days prior to the end of the term to the other party. Either party may terminate this Agreement upon breach of the terms contained in the agreement by giving sixty (60) days written notice to the other party. ARTICLE VII NOTICE Whenever notice of any kind is authorized or required to be made by one party or the other under the terms of this Agreement, such notice shall be given by United States registered or certified mail, postage prepaid, return receipt requested and addressed to the other party as set out below, or to such other address as may hereafter be designated: Vintage PID: Appraisal District: City Manager Chief Appraiser City of Lubbock Lubbock Central Appraisal District P.O. Box 2000 P.O. Box 10542 1625 131h Street 1715 260' Street Lubbock, Texas 79457 Lubbock, Texas 79408 Vintage PID / LCAD Agreement 4 ARTICLE VIII AMENDMENTS This Agreement constitutes and expresses the entire agreement between the parties hereto and shall not be amended or modified except by written instruments signed by both parties. APPROVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK this28thday of February, 2008. APPROVED BY THE BOARD OF DIRECTORS OF THE LUBBOCK CENTRAL APPRAISAL DISTRICT this 27th day ofFebruar 2008. CITY OF LUBBOCK, TEXAS 00, David A. Miller, Mayor ATTEST: Re ecca Garza, City Secretary APPROVED AS TO CONTENT: Rob Allison-, ss>I ant C>< anager Development Services APPROVED AS TO FORM: Linda Chamales, Senior Attorney Office Practice Section Lc:Cityatlll.inda/ LCAD Vintage Interloeal-final February 8, 2008 LUBBOCK CENTRAL APPRAISAL -DISTRICT Ler . Mot oya, Chairman, Board of Directors ATTEST: Arlee ckson, SeVetary, Board of Directors Vintage PID i LCAD Agreement 5 Resolution No. 2008-R0066 EXHIBIT "A" Resolution No. 2007-R0022 January 12, 2007 Item No. 6.9 A RESOLUTION OF THE CITY OF LUBBOCK, TEXAS APPROVING AND AUTHORIZING THE CREATION OF THE VINTAGE TOWNSHIP PUBLIC IMPROVEMENT DISTRICT WHEREAS, the City of Lubbock, Texas (the "City") is authorized under the Public Improvement District Assessment Act, Chapter 372, Texas Local Government Code, as amended (the "Act") to create a public improvement district; WHEREAS, Stellar Land Company, Ltd. and Vintage Land Company, Ltd. submitted and filed with the City Secretary of the City that certain Petition for the Creation of a Public Improvement District to Finance Improvements to the Vintage Township Residential Community (the "Petition") requesting the establishment of a public improvement district to be known as the Vintage Township Public Improvement District (the "District"), the boundaries of which are set forth on Exhibit A attached hereto (the real property located within the District shall be referred to as the "Land"); WHEREAS, the City Council of the City (the "City Council") has received the Petition signed by the owners of more than 50% of the appraised value of the taxable real property and more than 50% of the area of all taxable real property within the District, and the Petition complies with the Act and thus the City Council is authorized to consider the creation of the District; WHEREAS, after providing all notices required by the Act, the City Council on the date hereof conducted a public hearing on the advisability of the improvements and services and the creation of the District; and WHEREAS, the City Council adjourned and closed such public hearing. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF LUBBOCK, TEXAS, THAT: Section 1. Advisability of the Improvements Proposed for the District: It is advisable to create the District to provide the public improvements and services described in the Petition and this Resolution. The public improvements will promote the interests of the City and will confer a special benefit on the District. Section 2. Nature of the Improvements: The general nature of the proposed public improvement projects is (i) the acquisition, design, construction, installation and improvement of: (a) parks and greens together with any ancillary structures, features or amenities such as playgrounds, athletic facilities, pavilions, amphitheaters, community facilities, bridges, walkways, lighting, benches, trash receptacles and similar items located therein along with all necessary grading, drainage and similar infrastructure involved in the construction of such parks and greens, (b) landscaping, hardscaping and irrigation, (c) water features such as lakes, ponds and fountains, (d) distinctive lighting and signs, (e) pedestrian malls, passages or pathways including pedestrian bridges, (0 vehicular bridges and low water crossings, (g) community meeting halls or similar buildings, (h) community monuments, towers, and other similar structures, (i) art work, 0) water and sewer infrastructure and facilities, (k) streets, roadways and other LU B200/58000 Resolution Approving Creation of P1D - Lubbock 2007_ thoroughfares, including streetscaping and streetlighting, (1) storrnwater drainage infrastructure and facilities; (ii) payment of costs associated with developing and financing the public improvements listed in subdivision (i) including costs of issuing bonds and funding debt service and capitalized interest reserves for such bonds and costs of establishing, administering and operating the District and (iii) maintenance, operation and other supplemental services permitted by the Act pertaining to the items listed in (a) through (i) of subdivision (i) of this Section. Section 3. Estimated Cost of the Improvements: The estimated cost of the public improvement projects identified in subdivisions (i) and (ii) of Section 2 herein is $50,000,000. The cost of the maintenance, operation and other supplemental services identified in subdivision (iii) of Section 2 will be determined annually by the City; however, it is anticipated that the City will arrange with the local homeowners' association for such maintenance, operation and supplemental services and that such costs will be paid from homeowners' association dues and that collection of assessments for such purposes will be necessary only in the event that the homeowners' association fails to operate and maintain the public improvements in a manner consistent with the City's standards for maintenance and operation of similar public improvements throughout the City. Section 4. Boundaries: The boundaries of the District are set forth in Exhibit A. Section 5. Method of assessment: An assessment methodology will be prepared that will address (i) how the costs of the public improvements financed with the assessments are assessed against the property in the District, (ii) the assessments to be collected each year, (iii) provisions providing for the prepayment of the assessments at the option of the owner of any parcel, (iv) the reallocation of the assessment upon the subdivision of a parcel, and (v) reduction of the assessments for costs savings (pursuant to the annual review of the service plan for the District) and repayment of bonds issued to finance the public improvements. Additionally, a report will be prepared showing the special benefits accruing to property in the District and how the costs of the public improvements are assessed to property on the basis of the special benefits. The result will be that equal shares of the costs will be imposed on property similarly benefited. In assessing the costs of the public improvements, property will be classified based on the use of the public improvements. For example, larger homes may generate more use of the public improvements than smaller homes. Accordingly, there may be a classification of property on the basis of the size or type of homes that may be built on a parcel. Costs may also be assessed on the basis of the value of the property, or upon a combination of size or type of house and value of property. Property may also be classified on the basis of the location of the property within the District, if some sections of the District receive more public improvements or public improvements of greater cost than other sections of the District. The assessment methodology will result in each parcel paying its fair share of the costs of the public improvements provided with the assessments based on the special UJB200/58000 Resolution Approving Creation of Pm - Lubbock 2007_ -2- benefits received by the property from the public improvements and property equally situated paying equal shares of the costs of the public improvements. Section 6. Apportionment of Cost between the City and the District. The City will not be obligated to provide any funds to finance the proposed public improvements. All of the costs of the proposed public improvements will be paid by assessments of the property within the District and from other sources of funds, if any, available to the developer of the Land. Section 7. Management of the District. To the extent allowed by law, the City may contract with either a non-profit, or a for -profit organization, including a Public Facilities Corporation created by the City pursuant to Chapter 303, Texas Local Government Code, as amended, to carry out all or a part of the responsibilities of managing the District, including the day-to-day management and administration of the District. Section 8. Findings. The findings set forth in the preamble of this Resolution are hereby found to be true and correct and are incorporated in the body of this Resolution as if copied in their entirety. Section 9. District Authorized. The Vintage Township Public Improvement District is hereby authorized and created as a Public Improvement District under the Act in accordance with the findings as to the advisability of the public improvements contained in this Resolution. Section 10. Notice of District Creation. The City's staff is directed to give notice of the authorization for the establishment of the District by publishing a copy of this Resolution once in a newspaper of general circulation within the City. Such authorization shall take effect and the District shall be deemed to be established effective upon the publication of such notice. The District shall exist until dissolved or terminated as provided by Iaw. Section 11. Effective Immediately. This Resolution shall take effect immediately from and after its passage and it is accordingly so resolved. LUB200/58000 Resolution Approving Creation of PID - Lubbock 2007_ -3- PASSED AND APPROVED this 12th day of January, 2007. TTEST: City PROVED AS TO CONTENT: City Manager lent Services s200/58000 volution Approving Creation of PID - Lubbock 2007_ DAVID A. MILLER, MAYOR -4- Resolution No. 2007-R0022 EXHIBIT A DESCRIPTION OF THE LAND METES AND BOUNDS DESCRIPTION for a 275.539 acre tract of land located in Section 23, Block E-2, Lubbock County, Texas, being further described as follows: BEGINNING at a point in the North line of Section 23, Block E-2, Lubbock County, Texas, which bears S. 89°57'29" W. an approximate distance of 962.23 feet from the Northeast corner of said Section 23, Block E-2; THENCE S. 00002'31" E. an approximate distance of 260.42 feet to a point; THENCE S. 45000'03" E. an approximate distance of 153.42 feet to a point; THENCE S. 44059'57" W. an approximate distance of 90.00 feet to a point; THENCE S. 45000'03" E. an approximate distance of 785.85 feet to a point; THENCE N. 44059'57" E. an approximate distance of 102.16 feet to a point; THENCE S. 45000'03" E. an approximate distance of 18.52 feet to a point; THENCE N. 89059'57" E. an approximate distance of 160.00 feet to a point; THENCE S. 00000'03" E. an approximate distance of 164.00 feet to a point; THENCE N. 89059'57" E. an approximate distance of 115.99 feet to a point in the East line of said Section 23, Block E-2; THENCE S. 00000'33" W., along the East line of said Section 23, Block E-2, an approximate distance of 1393.30 feet to a point; THENCE N. 89059'27" W. an approximate distance of 219.97 feet to a point; THENCE S. 00000'01" E. an approximate distance of 154.70 feet to a point in the South line of the North Half of said Section 23, Block E-2; THENCE S. 89058'41" W., along the South line of the North Half of said Section 23, Block E-2, an approximate distance of 4746.31 feet to a point; THENCE N. 00002'31" W. an approximate distance of 253.91 feet to a point; THENCE S. 89057'29" W. an approximate distance of 119.63 feet to a point; LUB200/58000 Resolution Approving Creation of PID - Lubbock 2007_ A-1 THENCE N. 00003'33" W. an approximate distance of 1078.00 feet to a point; THENCE S. 89057'29" W. an approximate distance of 210.00 feet to a point in the West line of said Section 23, Block E-2; THENCE N. 00003'33" W., along the West line of said Section 23, Block E-2, an approximate distance of 381.00 feet to a point; THENCE N. 89057'29" E. an approximate distance of 426.03 feet to a point; THENCE S. 00002'31" E. an approximate distance of 90.00 feet to a point; THENCE N. 89°57'29" E. an approximate distance of 187.88 feet to a point; THENCE N. 00002'31" W. an approximate distance of 90.00 feet to a point; THENCE N. 89057'29" E. an approximate distance of 275.00 feet to a point; THENCE N. 00002'31" W. an approximate distance of 300.00 feet to a point; THENCE N. 89057'29" E. an approximate distance of 90.00 feet to a point; THENCE N. 00002'31" W. an approximate distance of 19.00 feet to a point; THENCE N. 89057'29" E. an approximate distance of 184.00 feet to a point; THENCE N. 00°02'31" W. an approximate distance of 135.00 feet to a point; THENCE S. 89057'29" W. an approximate distance of 184.00 feet to a point; THENCE N. 00002'31" W. an approximate distance of 28.00 feet to a point; THENCE S. 89057'29" W. an approximate distance of 90.00 feet to a point; THENCE N. 00°02'31" W. an approximate distance of 445.00 feet to a point in the North line of said Section 23, Block E-2; THENCE N. 89°57'29" E., along the North line of said Section 23, Block E-2, an approximate distance of 3447.55 feet to the Point of Beginning. Bearings relative to HRA Lubbock County Coordinate System, derived from NAD 83, CORS 96, Epoch 2002.0000. Lambert grid at surface. Grid Origin: 33°23'00" N, 101°49'14" W False Northing: 0.00 U.S. Survey Feet False Easting: 80,000 U.S. Survey Feet LUB200/58000 Resolution Approving Creation of pm - Lubbock 2007_ A-2 Parallel 1: 33°45'14.17" N Parallel 2: 33°27'42.83" N Ellipsoid data: (modified GRS 80) Semi -Major Axis: 6379088m Semi -Minor Axis: 6357700.125617m 1/f: 298.2572220955 PREPARED TO ESTABLISH JURISDICTIONAL LIMITS ONLY. DOES NOT REPRESENT AN ACTUAL SURVEY. LUB200/59000 Resolution Approving Creation of AID - Lubbock 2007_ A-3 Resolution No. 2007-ROO22 MINUTES AND CERTIFICATION PERTAINING TO PASSAGE OF A RESOLUTION STATE OF TEXAS § COUNTY OF LUBBOCK § CITY OF LUBBOCK § On the 12th day of January, 2007, the City Council of the City of Lubbock, Texas, convened in a regular meeting at the regular meeting place thereof, the meeting being open to the public and notice of said meeting, giving the date, place and subject thereof, having been posted as prescribed by Chapter 551, Texas Government Code, as amended; and the roll was called of the duly constituted officers and members of the City Council, which officers and members are as follows: David A. Miller, Mayor Jim Gilbreath, Mayor Pro Tern Linda DeLeon Floyd Price Gary O. Boren Phyllis S. Jones Jim Gilbreath Members of the Council and all of said persons were present, except-- , thus constituting a quorum. Whereupon, among other business, a written Resolution bearing the following caption was introduced: A RESOLUTION OF THE CITY OF LUBBOCK, TEXAS APPROVING AND AUTHORIZING THE CREATION OF THE VINTAGE TOWNSHIP PUBLIC IMPROVEMENT DISTRICT The Resolution, a full, true and correct copy of which is attached hereto, was read and reviewed by the City Council. Thereupon, it was duly moved and seconded that the Resolution be passed and adopted. The Presiding Officer put the motion to a vote of the members of the City Council, and the Resolution was passed and adopted by the following vote: AYES: 7 NOES: 0 ABSTENTIONS: 0 LUB200/58000 Dallas Minutes for Resolution Creating PID --- Jan 12 2007 Dallas 1260318v.1 MINUTES APPROVED AND CERTIFIED TO BE TRUE AND CORRECT, and to correctly reflect the duly constituted officers and members of the City Council of said City, and the attached and following copy of said Resolution is hereby certified to be a true and correct copy of an official copy thereof on file among the official records of the City, all on this the 6th day of June , 2007. City ecretary City of Lubbock, Texas [SEAL] LUS200/58000 Dallas Minutes for Resolution Creating PID --- Jan 12 2007 -2- Dallas 1260318v.I Resolution No. 2008-R0066 EXHIBIT "B" First Reading June 14, 2007 Item No. 6.1 ORDINANCE NO. 2007-00058 Second Reading ,Tune 26, 2007 Item No. 4.37 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LUBBOCK ACCEPTING AND APPROVING A SERVICE AND ASSESSMENT PLAN AND ASSESSMENT ROLL FOR VINTAGE TOWNSHIP PUBLIC IMPROVEMENT DISTRICT; MAKING A FINDING OF SPECIAL BENEFIT TO CERTAIN PROPERTY IN THE DISTRICT AND LEVYING ASSESSMENTS ON SUCH PROPERTY AND PROVIDING FOR THE METHOD OF ASSESSMENT AND THE PAYMENT OF THE ASSESSMENT WHEREAS, a petition was submitted and filed with the City Secretary of the City of Lubbock, Texas (the "City"), pursuant to the Public Improvement District Assessment Act, Chapter 372, Texas Local Government Code (the "PID Act"), requesting the creation of a public improvement district on land within the City, to be known as the Vintage Township Public Improvement District (the "District"); and WHEREAS, the petition contained the signatures of the owners of property representing more than 50% of the appraised value of taxable real property liable for assessment within the District, as determined by the then current ad valorem tax rolls of the Lubbock County Appraisal District and the signatures of property owners owning taxable real property that constituted more than 50% of the area of all taxable property that is liable for assessment by the District; and WHEREAS, on January 12, 2007, the City held the public hearing in the manner required by law on the advisability of the improvement projects and services described in the petition as required by Sec. 372.009 of the PID Act and made the findings required by Sec. 372.009(b) of the PID Act and authorized the District in accordance with its finding as to the advisability of the improvement projects and services; and WHEREAS, on February 14, 2007 (the "Effective Date"), the City published notice of its authorization of the District in the Lubbock Avalanche Journal, a newspaper of general circulation in the City; and WHEREAS, no written protests of the District from any owners of record of property within the District were filed with the City Secretary within 20 days after the Effective Date; and WHEREAS, the City Council, pursuant to Section 372.016(b) of the PID Act published notice of a public hearing to consider the proposed Assessment Roll and the Service and Assessment Plan and the levy of assessments on property in the District; and WHEREAS, the City Council, pursuant to Section 372.016(c) of the PID Act mailed notice of the public hearing to consider the proposed Assessment Roll and the Service and Assessment Plan and the levy of assessments on property in the District to the last known address of the owners of the property liable for the assessments; and WHEREAS, the City Council convened the hearing at 10:00 a.m. on the 14th day of June, 2007, at which all persons who appeared, or requested to appear, in person or by their Dallas 1261664v.1 attorney, were given the opportunity to contend for or contest the Service and Assessment Plan, the Assessment Roll, and each proposed assessment, and to offer testimony pertinent to any issue presented on the amount of the assessment, the allocation of costs, the purposes of the assessment, the special benefits of the assessment, and the penalties and interest on annual installments and on delinquent annual installments of the assessment; WHEREAS, the City Council finds and determines that the Assessment Roll and the Service and Assessment Plan should be approved and that the assessments should be levied as provided in the Service and Assessment Plan and Assessment Roll; WHEREAS, the City Council closed the hearing, and, after considering all written and documentary evidence presented at the hearing, including all written comments and statements filed with the City, determined to proceed with the adoption of this Ordinance in conformity with the requirements of the PID Act. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS: Section 1. Terms. Terms not otherwise defined herein are defined in the Service and Assessment Plan attached hereto as Exhibit A (the "Service and Assessment Plan"). Section 2. Findings. The findings and determinations set forth in the preambles are hereby incorporated by reference for all purposes. The City Council hereby finds, determines, and ordains, as follows: (a) The apportionment of the Costs pursuant to the Service and Assessment Plan is fair and reasonable, reflects an accurate presentation of the special benefit each property will receive from the construction of the Improvement Project, and is hereby approved; (b) All of the real property in the District which is being assessed in the amounts shown in the Assessment Roll will be benefited by the services and improvements proposed to be provided through the District in the Service and Assessment Plan, and each parcel of real property will receive special benefits during the term of the Assessments equal to or greater than the total amount assessed; (c) The method of apportionment of the Costs set forth in the Service and Assessment Plan results in imposing equal shares of the Costs on property similarly benefited, and results in a reasonable classification and formula for the apportionment of the Costs; (d) The Service and Assessment Plan should be approved as the service and assessment plan for the District; -2- Dallas 1261664v.1 (e) The Assessment Roll in the form attached as Exhibit D to the Service and Assessment Plan (the "Assessment Roll") should be approved as the assessment roll for the District; (f) The provisions of the Service and Assessment Plan relating to due and delinquency dates for the Assessments, interest on Annual Installments, interest and penalties on delinquent Assessments and delinquent Annual Installments of the Assessments, and procedures in connection with the imposition and collection of Assessments should be approved and will expedite collection of the Assessments in a timely manner in order to provide the services and improvements needed and required for the area within the District; and (g) A written notice of the date, hour, place and subject to this meeting of the City Council was posted at a place convenient to the public for the time required by law preceding this meeting, as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended, and that this meeting has been open to the public as required by law at all times during which this Ordinance and the subject matter hereof has been discussed, considered, and formally acted upon. Section 3. Assessment Plan. The Service and Assessment Plan is hereby accepted and approved as the PID Act Section 372.013 service and assessment plan for the District. Section 4. Assessment Roll. The Assessment Roll is hereby accepted and approved as the PID Act Section 372.016 assessment roll of the District. Section 5. Levy and Payment of Special Assessments for Costs of Improvement Project. (a) The City Council hereby levies an assessment on the tracts of property located within the District, as shown and described on the Service and Assessment Plan and the Assessment Roll, in the respective principal amounts shown on the Assessment Roll. (b) The levy of the Assessments shall be effective on the date of execution of this Ordinance levying assessments and strictly in accordance with the terms of the Service and Assessment Plan. (c) The collection of the Assessments shall be as described in the Service and Assessment Plan. (d) Each Assessment may be paid in a lump sum or may be paid in Annual Installments pursuant to the terms of the Service and Assessment Plan. Dallas 1261664v.1 (e) Each Assessment shall bear interest at the rate specified in the Service and Assessment Plan. (f) Each Annual Installment shall be collected each year in the manner set forth in the Service and Assessment Plan. Section 6. Method of Assessment. The method of apportioning the Costs is as set forth in the Service and Assessment Plan. Section 7. Penalties and Interest on Delinquent Assessments. Delinquent Assessments shall be subject to the penalties, interest, procedures, and foreclosure sales set forth in the Service and Assessment Plan. Section 8. Lien Priority. The City Council intends for the obligations, covenants and burdens on the owners of Assessed Property, including without limitation such owners' obligations related to payment of the Assessments, to constitute a covenant running with the land. The Assessments levied hereby shall be binding upon the owners of Assessed Property, and their respective transferees, legal representatives, heirs, devisees, successors and assigns. Assessments shall have lien priority as specified in the Service and Assessment Plan and the PID Act. Section 9. Applicability of Tax Code. To the extent not inconsistent with this Ordinance, and not inconsistent with the PID Act or the other laws governing public improvement districts, the provisions of the Texas Tax Code shall be applicable to the imposition and collection of Assessments by the City. Section 10. Severability. If any provision, section, subsection, sentence, clause, or phrase of this Ordinance, or the application of same to any person or set of circumstances is for any reason held to be unconstitutional, void, or invalid, the validity of the remaining portions of this Ordinance or the application to other persons or sets of circumstances shall not be affected thereby, it being the intent of the City Council that no portion hereof, or provision or regulation contained herein shall become inoperative or fail by reason of any unconstitutionality, voidness, or invalidity of any other portion hereof, and all provisions of this Ordinance are declared to be severable for that purpose. -4- Dallas 1261664v.I Section 11. Effective Date. This Ordinance shall take effect, and the levy of the Assessments, and the provisions and terms of the Service and Assessment Plan shall be and become effective on upon passage and execution hereof. AND IT IS SO ORDERED. Passed by the City Council on first reading this 14th day of June , 2007, Passed by the City Council on second reading this 26th day of JuIIe , 2007. DAVID MILLER, MAYOR ATTEST: Re ecca Garza, City Secretary APPROVED AS TO CONTENT: Rob Allis Assistant City Manager Development Services -5- APPROVED AS TO FORM- JennAer TaffE, Attofney V' son & Akins, L.L.P. and Counsel Dallas 1261664v.1