Underground Utility Facilities Improvement District

District No. I-6002 information

In response to a request from a majority of real property owners within the proposed boundaries of the City of Scottsdale, Arizona, Underground Utility Facilities Improvement District No. I-6002 (District), the City of Scottsdale took the required steps, on the District's behalf, regarding the formation and assessment of the District, including conducting an election.

More than a majority of ballots voted in the all-mail ballot election approved the District's formation and levy of an assessment. Accordingly on March 21, 2017, the City Council declared the District formed and ordered APS to underground the power lines in the District. The City and APS entered into the Development Agreement and Financing Contract on March 30, 2017, which allowed APS to begin construction and provided for reimbursement through property assessments. After a public hearing on April 25, 2017, Council approved a maximum levy to be assessed on property owners within the District.

APS completed the undergrounding work in the District by February 20, 2018. On March 20, 2018, the City Council approved a recapitulated assessment based on final construction and administrative costs, which was approximately $1,151,279 less than the originally-approved maximum levy. On March 30, 2018, the City also acknowledged and approved a Financing Agreement between APS and Compass Bank to reduce the interest rate on the assessments to be paid by District property owners.

Pursuant to the Development Agreement and Financing Contract between the City and APS, beginning in April 2018, property owners will be billed for semi-annual interest payments (due on May 15 and November 15) and an annual principal payment (due on November 15) for a period of 15 years or until the applicable assessment has been paid in full.

Additional Information:

• District Boundary Legal Description
• District Boundary Map
• Aggregate Assessment Amount Estimate
• December 2, 2016 Council Meeting – Resolution No. 10649, Resolution of Intention to Form the District
• January 17, 2017 Council Meeting – Public Hearing & Resolution No. 10696, Ordering the Election
• March 21, 2017 City Council Meeting
• April 25, 2017 City Council Meeting
• APS Plans
• Notice of Completion of the Work
• March 20, 2018 City Council Meeting Report
• Recapitulated Assessment
• Development Agreement and Financing Contract between the City and APS (Contract No.2017-049-COS, including updated Exhibit D)
• Financing Agreement between APS and Compass Bank