HomeMy WebLinkAboutORD 3234• •
ORDINf~NCE NO. 3234
ORDINANCE Of' THE COUNCIL OF THE CITY OF PALO ALTO
PHOVIDING FOR 1rHE CITY OF PALO A.L'l\) Hl:;ALTH FACILITY
FIN/\!lCING LAW INCLUDING GENERAL PHOVISIONS l\.ND
DEFilHTtOt~S, POHERS AND P ROCEDUI{8S 'l'O ISSUE REVENUE
so~m~; FOl~ 'THE p Ur<POSE OF PROV I DING FINANCING 'fO
P 1\i~TT C 1 Pl\ T X:~G il Ci\L'l'!i I NS'.::' I 'l' UA'TIONS FOR SPECIF I ED
F UR.POSCS, AND CEHTt\IN OTHER SUPP LEM.ENTAL PROVIS IONS
The Council of the City of Palo Alto does ORDAIN as
follow~;;
Section 1. The Health Facility Financing Law is
hen:by <"ldOPt:cd <:1s an uncocli f.ied ordin~~nce of the City of Polo
l\J to as follows:
nHElH~'l'H F'ACILITY FINANCING LAW
ARTICLE l. GEN8Rl\L PROVISIONS AND DEf'INI'l'IONS
Section 101 TITLE. This chapter may be cited as
the City of Palo Alto Health Facility Financing Law.
S<:ction 102 PURPOSE. The Council hereby finds and
declares that it is necessary, essential, a public purpose
and a m11nicipal affair for the City to be authorized to pro
vide financing to health institutions within the City that
provide essential services to residents of the City in order
to aid such heA.l th institutions in cop_.+-:tining cos~:: ::::;=
the:r.eby to enable such health institutions to establish lower
rates and charges than would otherwj.se prevail and to provide
better service at such rates and charges. Unless the City
intervenes t.o provide such financing,·~ such rates and char.g es
may i11crease at an ever accelerated pace because such heal~h
institutions cannot obtain financing at equivalent cost from
p·civate sources.
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~ection 103 DEFINITIONS. Un]GGS the context
oth:r1.dse r.cq~1ir12.s, the term~; defi.ned in tbis chaptr~r sh.:ill
h .::i v e t h c f o J .1 ow i n <? ~' 1 e <.rn i n g s :
(a} "Bonds" ~e~ns nny bonds, notes, c0rtificates,
debPiltur0s or other otlfgations issued by the City pursuant
to this ch;)1:>t·er and ;)a~·able e:·:c:Jusivcly from revenues as in
thL:; ch;;~tcr dofin0d 2nd from any other funds specified in
th i ~; er: 2~1t c r u f!On wl1 i ch such cbl iga ti orit·; rn<1y be made a ch~ rgL~
(11 ~ (~ fr(' 'ii~ ',.; r. 3 (:; h t f' (:-y -~"; ~~ (~ 1)a ~' 0 !:~ 1 (.~ ~
{1=) "Co::>t'1 JY:e.:,111~:; the tot~J. of all costs incurr0d
by or c:; ~:el·,.:1-1f of Ll particip;:.tini; iieciltb instituti<)n as are
0pprG'.:cd t·y tl·c, C:i ty <:·<'. rr:·D~1cin.·0 )··J>:.· :.ind nr..>cessary for c0rrying
out ::;Jl v:c1 rk2 .~,J~d unzlr~rt.:ikina~> nec•::ss<:HY or incident to
acc1ui::.:.ition, con~;truction, n?h.;:ibU:itation or impro.,r(-'mcnt of a
lw.1H·!1 faci1ity or th\: r£:fundin·~J or refjnancing or ob1ig~-·
tions incu::n~d to fin"1nce :~uch acquisition, constrllGtion,
r c h :; L i l i t i o n o r i ;r, prov 0 m 0 n t • 11 Co s t n r.; h a 11 i n c l u d c a l 1 fHl ch
C'o;_:t:·: •,:i;i.c:·J under ;;.ir::ncrally 2ccc~pt12d ;:ic·1,:r..)unting principl0~:;
art> not ).nc1p-::•rly chc~rq0.:Jl;le ,):;:an expcn:::.e of operzition and
m<.1inten~\ncc, ir:c1uding, \1•ithout lim:tation, the cost of all
J<,;1cls, structurE'5, re.:~l or p0rson.:;il property, franchise~~1
dgl1ts and int0re::.:ts 0cquirec1 or used in connection witl1 a
health facility, tns:-cost of d0m0Jishin9 or removing any
stnict\Hes (including the cost of acquiring any lanrs to
which such structures may be moved), the cost cf ensineering,
a r c 11 i tl~ ct u rr.:d , f in an c i J 1 and leg a 1 services , pl n n s , spec j ··
f ications, studies, surveys, estimates, administration
expenses or other expenses necessary or incident to
det.ennining the feasibility of or to acquiring, constructing,
reh~bilitating, improving or financing a health f~cility,
incli..ld.ing all CO'.::ts of issuance of bonds for sucb purposes,
reserves for debt service and for repairs, replacements,
a0~~.itit.Jr1~' and .impruvcmenc.s, ano cap1talized bond interest for
such period ~s the City may determine.
{d)
of Palo Alto.
~council" means tbe Cfty Counc:i.l of the City
(0) "Health facility" means any facility, place or
bu.ilding within t.he City 1icenf.;ed by the State of Californi<:i
a r. ci nw i n t a .1 rw d .: n d o pc r a t e d f o r the d i a g no s i .s , c a r e , p r eve n -
tion and treatment of human illness, ph:}"si.cal or mentalr
includiny convalesccnct~, rehabilitation and care during c.ind
after pr0gn~ncy, or for any one or more of these services,
and whi.ch pr<)vid<?S and wi11 continue providing to residenti:;
o f t: he Ci t. y t' sf'. en t i 0 l he .:i 1 th c .:1 r P. st:~ r v i cc: ::~ des i g n a t c d .:H; cu ch
in an agreement between the City and the participating h~~llh
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instilution providing or op0rating such facility, place or
buiJdin(f,
Health facility include:s 21 port.ion of on~ of the
;;bove typ0s of faciliti0s and includes the following facili
t:ic·s if op(!f<1t€'.d in conjunction with one> of the a.bove types
of facilities: ~ laLoratory1 c1. laur1dry 1 a nurses• or
intern::;' r(:Si~!,:::nce, ,;: hou~;ing facility for patic!ntsr staff or
f'Jn[>lvyt.'C::; .~ind the fzn;l:i.lies of ziny of themr an r.1dmini:-:tr.::i.tion
b<.:ilci.~n~~, <J u:'.:•::21::c:~, r:~i::t'2r\Zince, stor:age, utility or
p,·uk~n,J (;:0 r:i].it:.' ::·n<i ·:1..1-l ~;',·ri.::'~urcs, faci.litie':.;r 0q\..:ipm0nt
.Cinc~ h1r;i;.':.1~L.~.i:: :-=::-'f<:':c:d t.c· (!:J':' of the: f0rc9oing or required
C;:· u;~cf'ul fc,r th•:i op,.::·~~.ion o.:' d !H::all:h L:h:LLity.
Br.: a J t h f ,., :-.: i l i \: y ~: k:l l 11 D t i n cl u c1 f.• 21 n y fa c i 1 it y ,
pL:1c0 o:: i11.1dz.L.n:J i.::.0 ·~d or co bl~ ti:-~ecl pri;:wrily for sectarian
insti:11ctiou ;)r ::tudy ur .:::;a pL:cr:: for (i.(~voti.on11J. activitie::.:>
Cr r C> l i') i ()·~: ~: \·1~l)f sh j_ y; r
([} ''P,1rticipa.tir.~1 lw<11th institut.i.onu 11H'.:c:ns n
pr i v (1 t e non p r o f i t c L' 1 p n r .J t i o n o r d s soc L:: t i on 1 i c (~ n s e d by t: he
J ri h's o f t b c S t 2 tf-' t o p r o 'v' i d r> o i: opt~ r <.1 t c ;::.. h e 21 :: h f 2 c i l i t y <:1 s
dcfJ.th::d in :hi~' ch.:;ptcr ~nd which,. pui:.i;uant to the pr:o•.rL:;i.onE";
oft.hi;.; ch::pt.~r1 undertil.1'cs t:he financin'J of the acqui.sit:Lon,
con.struct:ion, rch.=.ibiJilatioil er improvement of a health
facility or undertD.~~.:.~s. th0 refundir.9 or. refinancing of
ob 1 :i g '' L· i on :: i n c u r r e d lo f i :1 ~ n c C! s u ch z.t c q u i ~' i t i o n r cons \.: r u c -
ti.on, t'<.~h.:lbilitatio:1 or improvii:r'lenr.,.
{g) "Revenuesu means amounts received by the City
ac repayment of principal, interest, and all olher charges
with respect to a loan under this ch~pterr any proceeds
received by the City from martgager hazard or other insurance
on or ·.vith respect to such a loan, all other rents, chargr:!s,
fees, incom('! and receipts derived by the City from the
financin9 of a health facility under this chapter (whether by
loan, lease, installment sale or any other method c.wthorized
by this chnpter), any amounts re<.:eived by thr:> City as invest
ment eond ngs on moneys deposi tcd in any fund or account
securing bonds, and such oth·er moneys i'.lS the Council may, in
its discretiont J.Dwfu.lly designate .J.s revenuE"~s.
AR'I'1CLE 2. FINANCING HEIU,TH Fl\CJLI'fIES
Section 201 LO/\NS f'O!~ HEAL'rH Fl\CILITIES. The City
may rnnke, purchase, or otherwi~;f' contr.:1.ct for the making of a
rno!.'tg<'l.ge or other £wcur(~d or unsecurE.:u loan, upon such terms
and conditions as the City shall deem proper, to any parti
cipating hcRlth institution for the cost of acquiring,
constructing, rehabili.tuting or improving a health facility;
prov·ided, bowc~v~r, that no ·;.;uch loan :;hall exceed the total
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cos t o f s 1J c Ji h 0 ~l l t h fa c i 1 i t y <i. s d c t c rr.1 i n e d by t i1 c
pi:i.rtic:ipating heal th insti.t:;t50n ~·rnd ;ipprovcc! by the City.
Section 2 0 2 RCP 1Ni\NC1 NG t.o;\:< s FOX ESi\LTH
FACILITII~~;. Th(' <.:ity P.~<iy ;:idkl?, puu.:!:.:~~~c, or oth:_·ndse
c:or.tract for the !<10!dng of~ 1:iortt:u:.r1'"° or ol:1cr ~~ccnrod or
i.:msC?curQd loun, upon ~~uch term~: lln<1 cc,nditions ns the City
sh<J.1.1 <h;crn pror;r:-r, to a:-;y Pc,r\-.ici~.1;,t':-.9 h!:'.::ltr·'. in['.titurion to
rcfun(.:j c;r: rcfin~~::c:c· (.)Ut!;>LP:n(:.~,r:~~ C~)}.ic;.:~~:_ic; .. ~: (';-~· ~:i:ic·!) f)(1rtici-~
I')t1t.ing t1c?a.it.h in~-~~ituti.:~;: .\r:i..~t:rr-~~(~ ~:(-i-;·:i:~ .. :·~:~~·.z.> :::~() (>:)c.l-. of
acquirjn0 or C\}t;:~truct.1::.ci ~; '.:::·::.::·.:11 1-~,c-:1.i~\·, -.:::c)'.·iJcr ~3uch
oh1 ig<.1lion:.; h'i..'l.'E' ir:ci:r 1:\.•(! '.-~:: ic r ·.-(' C•:: ::;ft.<:!: t·!:·~ ·:c~~actl:-:c:1t of
t!d:::' ch.:::pt.er, if tht: (~i~~::-fine:' tL.'<t ~ci_:ch r:e·fi::1c:i:~0 or:
rt?financ~ing is int.he i)Ui)l.~c· intcrc~r:~~ E'(n(~ cith~r 011.c~\~iD.tos a
fit}ancic~1 <)r t.Jf·(~rnting harr.;s}-iir~ <)f .~_·uc'L .~~~,~:rti(:.:1)(-~tjr1q h.0.:.:1.th
.ins ti tutic;n f (}f .i ~-, j r·, Ct._--;;~tnt:._~i._ .. ~· )_:-_;:·~ 1.·,,~.~ t·~: {)t-:;:.:: f.~.~:~:~r:c.l11g l;;/ ~~-hi:::
c:i~.'l for sul·.h }.'articJ.r)atinc~ L~~::.l.t:: i:·:k".:titut.~ .. _,,i:, or rr.a.'/ bf::
exper:-:t0c2 to result in loh·cr co~:u·; of :~calth c::>.::t~ than wou)_d
o t:. h c t w i .7> ::? pre v .:i i l n n c1 a ;:; .:iv i n g to t h i rd F ·:' r t i c ." 1 1 n cl u d in q
government, and to nU10rs •.;ho rnust pay for cnr2, or any
combinr.;tion t!;0rc:of.
Section ~'.03 1'.C'OU:S:TIO>~, cm.~r.'.'!'HUC'rIO:J, LFl1DH;G Ai'rn
SELLING 02 HF;J1L'TH Fi\C JT, J TF ::; . Th P City rn::y .::icq·.i i. re /
construct, E?n.la.rgc, remodel, rc;nov~~tc, alter, L::!nO'/E"1
f u r n i s b , e q u i p r o hTI , .1 n c1 L:· a 5 (; a s 1 c: !.: s e ~~ ;:; he a l t h fa c i l i t y
f o r t h c p u r po s 0 of s c: l J i n g o r 1 e ;.; .s i n 9 s u ch h E £; l t: h f 3 c i l i t y to
a participQting health institution, and may designate such
participating health in:::;t.it~~tion a~; its u~Fcnt tu undE"!rt~ke to
construct .. enlarge, remodel, renova to, alter, ii;:prove,
furni f:di, and equip such heal th f 2c i 1 i ty.
The City may f;Cll or lease, upon. such terms and
conditions as the City shall deem proper, to a participuting
liealth institution any health facility owned by the City
under this chapter, inclu~ing a health facil~ty conveyed to
~:.'-' 2::..J ..:. .. ._v.-rneci:::1on with u financing under t~lis (.;iwpter
bu t no t b~ i n g f i. nan c e d o r r c f i n c:. n c e d !w re~ u n d c r •
.Section 204 FEES. 'I'he Cit.y mo.y c!1ar9e partici-
patinq heillth in~.1ti.tution.s uppl:icationt co:nrnU:ment, financing
~rnd other fees, in order to recover .~ll adi11ini.<>trative and
other co::; tf:: ano <:;-:penses incur red in the exc re i se of the
powers (rnc1 duties conferred by thi~; chaptQr.
Sect:lon 20'.:i 1N:HJH1'\NCE. 'T'h0 C.ity may obtain, or aid
in obtaining, f,i:orn any dcp<irt!m~nt or aqenc.:y nf the Unitc:d
S ta t 2 ~• o r· o f t he f) ta t c o f C1 l i to r n i 0:1 o r o f a ny p x i v a t c
company, .Qny in['llr<'!nce or 9u-n·crnL0c~ as to, or of, or for the
puyrnt:>nt or repaynwnt of inU'rE.~~;t or princip2l en· both or uny
p.:nt th~:reof on <:1ny lo.:rn, le~1se or so.le ohiig~tion or any
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instrument QVidcncing or seco1:in0 t~w s,"'!mc, :n:,oe or entered
in to p u n3 u n n t to t Ii ... ~ pr o v i s i. on s o f th i ~; ch:, pt c r ; .ind m .=1 y
accept p.:1ym0nt in !:.;uch maniif·r ;;E;d [nu-,, ci.s pro·,:ided UH~rcin in
the event of def.:iuJ.t by a pzic:t.icip~:it.inr:J heed.th institution,
'1nd may assign any such :i.n;,cr<.1nce or ~;; . .:-1~,·H-:~.(.~(:· .:ls scc1.J'.: i ty
for bonds.
Sectiori ;.uc ni:~i<'i'~ nm cn;,:-;c1:s. Th~ city nc.y fix
rents, p;;~yrnent-;_,, fec~.1 CbZil'tH~:; .Jlid ~,1:'.:CJ:~"~;'(, r:::;e:;: fc~·
financ:Lna l';idcr this chz:ptc·r and;:~::\' ;,c~·~·c L.-1 ;:c'\'~_,-..,_0 ;'r!:.r.i
tizne t<) tj_i-nr: suc~!1 l'(~nts,. ;_~ .. :·.~·~:-..:·~1i-~:.1 1 ·.''-~~:, '-~~~~·:_:·:_:;~-l~~;-;u ~.1::·~--~r.·,__ __ \~"-;t
rates to t'f:i~lect (~~·.tdJ"iC{C::i in ~-:·.·._:(~:·c'.~4, .•• :~-:· .. -... r_--:r. ;-_1~"'·.:~~-.., .. L'~1.'" :7~:»~
due to d.:>faults or crianse~-c in oU;cr: \:.·:~_._;;~;(~: :.·-~~,--~:\.·ci tu ti~i~;
chapter, includin9 City ,:;.dr:'inis'..:.i:t;tJ\·0 , '--~);c:r::, -:,
Cl(.;ed~~ of trust or r::c·rt9a<:_JC·~.:; a·_. !:.cc_~t:r~_l·~: .'.c"-.t: .1c~:~;:: .. ~ un(ic-··r t:.t~:
ch.:1pter and may ·pled9r:; or ("l.'-;:,.;i;:.ir ~i::0 :~.::;::c .:.~:; .',r.:cur it/ ~~Pr
repDy1110nt of bone:::;. Such ch;.'dE.'. nf tru~0 t or :~.01~'.:cJd':::-:'> :;;:::'.· i'f'
as s i g n e d to , a n d h c l d o n b c· h ;:; L': 0· f t 1 : ,, C i. l y !J :: · , a n y b cm k o r:
t>:u.:;t C·.::·mpany dppointed to .::,ct~~:-:; t.1·u.;tcc )y: t!;<"' Ci.ty i;~ <.:rry
res·.)l.ut.icJn or in()c-nture pr(:;\~ i·:1ir1 \~ fr.Jr i~-... ;ui:1ncc C"~: lJ;,:_)n(~:~ ....
S1:cticq1 ~~08 r1f{0.?l~S.S1\)L:l\L· S1~~·<\~~({~J.:·s. !rh1'".\ Cit? r:;{-;).~
er,\ploy such e:·:<~inf::ering, arc 1 1itc~:turzi.l 1 f.1n.:!nci.:;1,
account.ir:ry, lE:~gal or other ~<~rviccs a~; r:'l<lY b;; nc·ces,'',H"J .i.n
the jud(jmcnt of Uic: City for the rurpu:~c~; oi· t:1 .i .':~ chq)t:.:.·r.
$(~Ct ion 209 ADDITIONAL PO\·;:r:.\S.
other powers f.~pccifically guintcd by t!1is
may do all things necessary or c0nveni0nt
purposes of this chapter.
AH.'rICI~E 3. BONDS
I n £H1 fl i t i o Cl t o 2 11
cb;:,pter, the City
to carry out tho
Section 301 ISSUANCE OF BONDS; BONDS NOT DEBT OF
(:J::~.;.1."". \(.t} 7ile City· 1nijy 1 f,:_o;n time t<> time, .is~>Uf~ !:.·Vn(~::; for
any of the purposes specifJ.0d in Sections 201, 202, and 203.
Bonds shall be negotiable instruments for all purposes,
subject only to the provisions of ~:;t'Ch :wncL; [c;r regiEtration.
(b) Every issue of bonds sh~ll b0 n limit2d
obligation of the City payable from illl or ~ny npccificd port
of the revenues <:rnd th•~ money.r. und .::::.;~,c~t:s aut:iorizc~d in this
ch apt G r t o be p l Gd g c c1 or a B s l g n e cl t n s c· c 11 r P p :1 y men t o f
bonds. Such re:verHws, moneys or as:·;r:,t.::; ~>i':n.lt br, tf:f' nol.-:~
f f I , f' ' ' '' l • ' source o repayment o t>uc.1 1:->suc o · oonns. none c: :i.r;s:.1e:a
under the provi.sion.s of this ch<.ipter sh:d.1 not: Li0 decnK1 l1 to
con£.~itute a debt or liability of the: City or ,1 plc:: .. <'k;<~ of the:
f'1it.h and crN1lt o[ t.hr: City hut-. r;h,'dl h0 p;·11';0,hlc~ f)OJ~~ly from
spGc:ifiGd r0vcnuc~~-:, money!:> and .:i::..;seu:.. Tht:-i~>~.:u.:ince of bonds
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shall not directly, indin:.:•.::tly7 or conl:..inqently o!,l)qate the
City to levy or pledge any form of taxation or lo m~kc any
appropriation for their payment.
AJJ. bon<ls shall contain on the fac~ thereof a
statement to thl"' following 0ffect:
Ne i. the r t ll G fa i t h D. n d c r e i:1 i. t n o r t h c t a:" -~ n g i::-o v 0 r 0 f t h c
City if', pJ.edqe<..I to tht~ l:-'<1yrncnt: or tl:c ~·>ri;~c.i.n;~.1. o~ r c:::
prl'.'·mi1.ni1 01~ int\:):c~·>t or, thi~~ l10;1d,
s·ection 302 C:OS·TS ()i< J~)~~LL.~~~·~~~~J-.".. 1;1 {~C~.c·~.::ti~·:ii~<.1 tI:i-;
~mount: of bond::.: to be if,:; sued, t .0 City F1<1y incJtH~'-~ .:<Ll C'-"·';t~:;
of the issuance of such bonds, re~;ervc fur:d~:, &n<1 c:o:)i L1i. i ::,~·ci
bond interest.
Section 303 RF:.SOLL.lTION; i.30?·:D PJ~O\':r~--:J(i'.~:. :l:):·ici:' :i'c'\'
b~~ issued as sc~rial bonds, term bond~, in.:;tallrnent hc)nc"l~~ er
pc.:iss ·through certificates or Ci:1y co::·,binati.on thr,;_·('ot. Bon·~;s
shall be il\Jthorizcd by t"('Solut:ion of the CounciJ . .::r1d sh2ll
bc().r ~rnch c~citE-~ or dates, muture at ~.n1ch ti:r.c· or ti:;ies, b-c,::;:
interest at such f.i.xed or va.r.i.Dbli> ralt1 or ratc·::'.1 i)P p<iy-"tblc
at such time or times_. be in st'ch dcnoi,::1«1tition~~, h(~ in :c,uc.:li
form, either: coupon or regL:;teredf Ci'irr.y such r00i.:c:Lrid:i•)n
pri.vilP.ges, Lie "'xeculcd in suc:i mz.:nncr, be· p.:tyahlt· i:-i la1d:,:J.
mnncy of the United States of /lr11erica at such ~.>J2J·(· or.
p 1 a c G s 1 b (; s u b j e c t t o s u c h t e rm s o f r 2 de r. • p l: :i. on <:: : 1 d r~ av o s u ch
other terms and conditions as such re~:>oluticn or <i.ny
indenture authorized by such resolution to be entcreJ iiito by
the City may provide. Bonds may be sold ~t eith~r a p~blic
or pr ivatc sa.lc~ and for such pr ices as the City shall detc·r··
mine. Pending prep~ration of definitive bonds, the Cjty m~y
issue temporary bond~:, which shall bi:· exchang"'..>d for such
definitive bonas when prepared.
S(~C t ion 3 0 'l BOND PROVIS IONS. .i\nv re sol u ti.or.
authorizing any bonds or any is~ue of bond6, or any ind0nturo
authorized by such resolution to be entered into by the City,
may contain provisions respecting any or the fo1.low.i.ng tc,r·fii~'
and condition~;, which sh.:111 be a p:irt of the contract ·.vit:h
the holders of such bonds:
(a) the terms, conditions <"!n(l form of such bon(i~;
and t}1e intrnest .:ind principzil to he~ p~1id thereon,
(b) limitations on !:.he-use:~ and puq;o~>ef.; to \·!hich
tho proceecl~.> of sale of .such bonds rnr.iy be .::ppl i eel, ~incl t.he
pl0dqe or cisr;ignment. of such proco.cds l:o :;;_:cure th<) p.:1:/r0.en~
of such boncJ;3,
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(c) limitations on the issuance of addition~!
parity bonds, the terms upon which addition.:il p<.uity bonrb
may be i::;;sucd and secured, and th<? refullding of outstanding
bonds,
(cl/ the set:t.ing aside: of re~:;ervcs anci sinkin9
fund;, and the regulution and disposition thereof,
(e) the pledge or as.signmE:-nt of all or any pdrt. of
the revenues and the use and disposition the :ci::of,. Euhj ec :: tc
such a9t(~C'lT10nts wi.\:h the hcl(lers of bon0s ;-::1 rn,1y l°.l1(';·1 i)c
outstanding,
( f ) 1 i mi t ~1 t i on o n th e u s e o f t C-! v e n u es f or
expenditures for opere:ting, udmin.istratior1 or other c:-:r'cn:::-os
of the Cityr
(<J) sp~;cjf\cf.1tion ('f the o.cts or ond.;;s.i<-1~ to .c:ct
which shall constitute a def0ult in thu duties of ~~e Cily to
holders of such bond.s, uri<l providing the r .i9hts c-rnd rei'.h.::di.e.s
of Emch hold~: rs in the; event of de L:rn J. t, incl ud i n~1 ~my
1.imit:.:1tions on the right of action by indivicl~.,21 hor,dhol..::-10,·.'.;1
on behalf
p1edge or
any other
tru.stee,
(h) thE'~ ;:~ppointment of et corporatQ tni,;tec~ to <:;ct
of the Cit:v· and the holders of it.~> bond:.~, tlH~
asrdgnment of loans, deed;~ of trust, r:10rtg;;g1:::·:~ <'11d
contracts ·co such trustee, and the· .::igh1-~ of :.-;ucl:
(:l) the procedure, if: any, by wnich th(~ l:2rms ot
&ny contract with bondholders may be amended or 2brogaled,
the amount of Euch bonds the holders of which must consent
thereto, and the manner in which such consent may be given~
and
(j) any other provisions which the Council may
deem rea£;onable and proper, for the purposes of th.is chapter
anci the security or the bondl'io.lder:s.
Section 305 PLEDGE OF REVENUES, MONEY OR PROPERTY;
LIEN. Any pledge of revenues or other moneys or assets
purBuant to the provisions of this chapter shall be valid und
binding from the time ::.rnch pledge is ma~lc. Revenue~~-;, moneys
and assets so pledged and thereafter rocoived by th0 City
shaJ.l immedintely be f.;ubjcct to tnc lien of such pledge
wit:hout any physical dc~J.ivery ther'2or or furth0r act, and t:hc
lien of "ny such pledge shall O(! valid <'tnd bindin9 as aq.:::iii:;t
all pnrtif)n having cL:dms of any kind i.n tort1 contract, or
othQrwisC? ..:1gn.inst th0 City, irre:-:;rcctiv0 of whothPr .such
par ti.es h"1VC not.ice thereof. N<.:ither the resoJ.uUon nor •"in/
indenture by which u pledge ir:; crcale(i need bo ti led or
recordetl ~xcc:pt in the· r£::cords of the City.
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Section 3 0 6 NO PERSONAL LI )'.\Br LI'I'Y. Neither the
m~mbers of the Council, the officers or employees of the
City, nor any person executing any bonds shall be liable
per:::;onally on the bonds or be subject to any personal
liability or accountability by reason of the issuance thQr'2of.
Section 307 PURCHASE OF BONDS. The City shalJ. have
the powE~r out of any funds e:wailab.1.0 therefor to purchase its
bond.c:;. The City may hold, pledge 1 canceJ, or rc!:sr-~11 frnch
bone!~;, ~rn.bjoct t.o and in accordance will1 <1qrecmc·nt:.; with the
hondhoJdf~rs.
SiC~C ti on 3 0 8 AC'.l' IONS BY J30NDHOLDEHS. Any holder of
b on cl s i s s u E~ d u n de r th<:: pr o v i s i on s o f th i s c hap t <:> r o r any o [
the coup.:)nf.> appr~rtainins; th1;.:rcto, and any t:r:Liste(~ ti.ppointcd
purf:UfJ.nt to any resolution aut.hod.zi!~g th(~ i:::1su<.rnce of bo1'~:s,
excc:~pt to the extent the rightf:> thereof rn2y b~: resi:r.i.cti:..,d by·
such resolution or: any indGnture authorized thereby to be
entered into by the City, may, either at J.aw or in equity, by
suit, action, mandamus, or other proceedin9s, prot~ct or
enforce any F.lnd alJ. riqhts .specified in law or in such
resolution or indent.urer <1.nd m;,;y enforce ,ind i.:C1li1pc].1. Uw
pi'!rfoi:mancc of all dutie~; reqLirc~d by thi.::., ch.:::ipter c!!: by such
.rc::solution or indenture to be pc·rformcd by thr:~ City or by any
offiCl"!r, f~rnployeo, or agent ther:Pof~ includinsi the· fix.ins,
charging, and collecting of rat~s, fcc~s, .intere~>t, <.rnd
charges authorized and required by the provisions cf such
resolution or indenture to be fixed, charged, and collected,
Sect i.on 30 9 RE~'UNDING BONDS. (a.) 'l'he City may
issue bonds for the purpose of refunding any bonds then
outstanding including the payment of any redemption premiums
thereof and any interest accrued or to accrue to the earliest
or any subsequent date o~ dates of redemption, purchase, or
maturity of such bonds.
(b) .LUtj pt.vl;l~t::l::i::i uL uuri<."i~ is~-;ued for the purpo;:;e
of refunding any outstandinq bonds mayr in the discrE~tion of
t he C i t y , b t~ a pp 1 i e: d to t he p u r c h a s e or r f) t i c em c-~ n t a t:
mDturity or redemption of such outstariding bonds, either at
their C-'ar:li.est or nny sub.sequent rec1emr:.,~ion d2~te or dates or
upon th0 purcha!3G or rel:iremcnt at the maturity thereof and
may, ~ending such application, be placed in escrow, to be
applied to such purcb,J.sc or retirement at maturity or redemp
tion on s~1ch date or dates as may be deter.mined by lhc City.
(c) Ponding use for purchase, r.etiri:~m0nt. tit.
m .:i t u r i t y o r r e d c~ mp t i. on o f o u t s t i:l n cli n g b o n d s , a n y p r o c e e elf;
hold in escrow pursuant to ~rnbc1ivision (b) may be inv(~.stt"~<l
and r0JtWc'r;t.cd as provid0d .i.n UH:! re.solution or in(·10nlure.
Any interest or otllc:r increment earned or realized on any
8
such inv(~sl.mcnt. mny be upplied to the payment of. the out
standin<J bonds to be r(•fund~d or to the payrni:.nt of intcr•2st
on the rE·funding bonds. After the t.crms of the escrow have
been fully satisfied am3 C~'-1-rried out, any balanci:• of such
pr o c e e cJ s a n d n n y i n t f? r e s t. o r i n c r em 12 n t e i.l r n e d o 1~ r e 8. l i z c d
from the investment thereof may be returned to the City to be
used by it for any lawful purpose.
( d) l\l l bondr.: is Sth:<l pun:; ua 11 t to this sec ti.on
shC'ill be s:1bj(~Ct .. to th<:.~ provJ.~d.C.n[; of this chuptcr in l:lH~
same manner und to the ::.a.mp extent. <.~s ctl1(-;r bcinds if;suGd
pursuant to this chapter.
Section 310 V!\LIDl'L'Y OF B01m~-;. ·:che validity of the
:.u~.;ivr i?.uti1.1i1 ancl is:.'>uanCE! ot r.ny bor1ds is not dGpendont on
<rnd i:;na..~.l not be aff•:•cr:0ci in any v.i.:1y hy any procc~edini:_p3 takc~n
by the C)ty for the 1r1<Jking of any loan or. tbe entering into
o f a n y a 9 r e em en t , o r by t h c• f <.d. l u r e t o ma k e any lo an o r e n t e r
into any agreement, for which bonds ~re authorized to be
is:rne(1 under this c:hc:ipLer.
Section 401 LIBERAL CONSTRUCTION. This chapter
being necei:;sary for the welfare of th1:-: City and its
.i.nhab.i.tantr;, t.hJs chaptGr shall be Liberally constru~~d to
effect its purposes.
Sect ion 4 0 2 OM I SS IONS NO'I' TO l\Ff'EC'l' V ALJDI'J'Y OF'
BONDS. If the jurisdiction of the Council to order the
proposed act is not affected, any omission of any officer or
t.he City in proceedin~JS under this chllpter or any other
defect in the proceedings she1ll not inv,tlic'.atc; such
proceedings or th~ bonds issued pursuant to this chapter.
Dection 403 FULL AUTHORITY. This chapter is full
c;1u\..iiu1. ii..y ;.uL the issuance vi bonds by the City foi. i..he
purposes specified herein. ·
Sect ior: 4 0 4 ADDI'rIONJ\L l-\UTHORITY. 'l'h is chapl: er
~>hall b0 deemed t:o p1:ovide a complete, addi tion.:i.l; and
alternative method for doing tho things auth6rized th0ruby,
and shall be~ rr~g<uc'l<:~d as supplemental <:ind additional to the?
powers conferred by other laws. The issuance of hands under
the pcovislons of lhis chapler need not comply with the
rc~quiremcnt~ of any other law r.lppl:iczible to the L~;surtnce of
bond8. 'l'he p't.lr}?OS(•:.3 authorized hereby may be• effectur.tted and'
bond~> may be issued for any such purpose!> under this chapt:0r ·
notl-d. tbs UrncH ng t:.kt t any o th0 r 1 aw mny prov id P for: such
purposc-)s or for the~ i~~!rnr-inct~ of bonds f:or like pui:posc:os arid
without regard to the requirements, r0strictionst limita
tion~,, or oth•'?r proviEd.ons cont.ainocl in any other law.
9 \
• • •
Section 405 CHAPTER CON'J'ROLLING. To the extent.
that the provisions of the chapter are inconsistent with the
provisions of any general statute or special act or parts
thereof, the provisions of th€ chapter shall be deemed con
t:rol l .i.ng. 11
Section 2. If any provision of this chapter or the
application thereof to any person!or circumstances is held
invalid, such invalidity shali not affect any other provision
or application of this c~apter which ca11 be given effect
without the ~nvalid provisinn or applic2tion, and to this end
the provisions of this chapter are ~eclared to be severable.
The Council hereby decl~res that it would have adopted and
passed this chapter and each chapter, section, subsection,
sentence, clause, phrase and word hereof~ irrespective of the
fact that any on.e ot· more of t.he other chaptet's P sect ions 1
f:,ubseGtion$, sentences, ·clauses, ph'rases or words he1~eof be
declared inval.id or unconstitutional.
Section 3. The Council finds th~t this is not a
project under the Californja Environmental Quality Act a~d,
therefore, no environrnent~l impact assessment is necessary.
Section 4, The City Clerk shall cause this ordi~
nan~~ to be published once in a newspaper of general ci~cula
t ion.
INTRODUCED: September 15, 1980
PASSED: October 6, 1980
AYES: Brenner, ~yer1y, Fletcher, Henderson, Levy, Sher, Witherspoon
ABSTAIN: Renze'l ABSENT: Fazzino
A~TE~): 'I J) APP>~OVED:
!,/ >At-\ t .. ~'-.:hr;;t.--lvh ... e-0 ___ .. ~·>V-~ ~11 ') 1 .. e:-ar:··/ ........... ~<'--~-"*-~-~~_...:...;....~ Ci y Cle Mayor ~~; \_
APPROVEo"{s TO FORM: ....,....,,.._....._...,_ ... -=-=-~
City anager •
, "
]_,,,. ~/{,? (' I I /~-,...,,,A>'~-~~~(.4'1
A, sist~nt Director of
PlannVng & Community
Environment