HomeMy WebLinkAboutORD 3083' . ' .. I.
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Ord i nanc n No. J08s
• ORIGJN.Al
~n Ordinance of the City of Palo Alto Add~ng Chapter 12.28
to ·ritle 12 of the Palo A).tn r1unic5.pnl Cooe, Relating to
Procedures for tha Authorization, Issuance ond SaJ.e of
Utility Systc~s Revenuc.Donds
u.che Counc i 1 of the City of Palo ~\1 to docs ordain a;; to I. lows,
Section 1. C~hnpter 12.28 is added to Ti. t le 12 of the Palo
Alto Municipal Code to re~d as fol.lows:
/ Chapter. 12.28
Utility Systems Revenu~ Bonds
12.~8.010. Definitions. As used in this Chapter:
(a) Bond r,aw means the Revenue Bond Law of 1941, being
Chapter 6, commencing with Section 54300, of Part 1 of Division 2 of
Title 5 of the Government Code of the ·state of California.
(b) Enterprise means any revenue-producing improvement,
building, system, plant, ~orks, facilities or undertaking used for
or useful for any of the purposes set forth in Seoction 54309 of the
bond law, together with (i) the distribution of electric energy for
.lighting, heatin~, and power for public or private uses, and (ii)
the generation, produc~ion, transmissi?n and distribution of gas for
public or private uses; Section 54310 of the bond law shall not
~pply. .
(c) E;lterprise includes,. but is not lim;,ted to, all
parts of the enterprise, all appurtenances to it, and all of the
various components of it set forth in Section 54309.1 of the bond
law.
12~28.020 Definition in Resolution Subject to the limitations
of Section 12 ~ 28.01.0, in any general relzo'lution pro·~.dding for the
issuance of bonds for acquiring, constructing, improving.or
··financing any enterprise 1 the CcJunci 1 may define wenterpr ise"' and
that def ini t.ion applies to the bonds. authorized in ~aid 'resolution.
S~ch definition may include any one or any combination of two or
more or a~l o~ the p~1rposes set forth in Sect: ion 12.20. 010 (b)·.
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1~.28.030. Powers of Council~
(a) Issue Bonds. The co.1..mci 1 mc:y prov id(' for the
issuance of and 'alithor 1 ze, 'issue, sell and deliver revenue bonds of
the City for the purpose of providing fnndB for the f\Cq~.;j~iticr:,
construction, inproving or finuncing of an enterprise, includ.:..~0 any
or all expenses i.ncidental thereto or connected therewith.
(b) Acsulrc Project. and Pl~dqe Revenues. The Council
may acquL:-e, consTruct; improve or f1nance 5~c~ct to improve
any enterprise defined in t!1e resolution providing for the issuance
of bonds pursuant to Section 12. 2i3. 020 ~ nnd may pJc(lq1', !_).lac;' <·r
chaq]e upon, and assign all or any part of t.he gross r-evenues u f
such enterprise for the security of the bonds.
(c) Bond I,aw. The Council has ;,md rnay f.!Xe>r<::i:;e al:t of
the powers set for-th 1n t>e bond laH, Bubject..: to the restr ic-t:ion~>
therein set forth~ except as in this chapter otherwise expressly
provided.
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12.28.040 . Prcceaures .
. (a) Bond taw. Except as otherwise expressly provided in
this chapter, tfie prov1sions of the bond law slwll apply to the
exercise of the powers set forth in Section ·12. 28.030.
(b) General Resolution. The Co~ncil may authorize and
_·provide for the !Ssuance of-the bonds by a general resolution to
take effect upon adoption. Such resolution shall state (i) the
purpose or purposes for which the bonds are proposed to be issued,
(ii) the total principal amount Qf the bonds (iii) that the bones
are to be revenue bonds, payable exclusively from the revenuBs of
the enterprise and from such of the other funds referred to in
Section 54478 of the bond law as shall be specified· in the
. reDolution (iv} that the b6nds are not to be secured by the taxing
power cf the City and (Y) such ether matters authocized by the bond
law as are deemed appropriate by the Council.
(c) Series Resolution. The Council may issuef sell and
deliver any ser i~s of bonCls by-series resolution !which ·may be the
general resolution referred to in Section 12.28.040(b)) to take
effect upon c:aJvf"tion. Such series resolution shall ( i) define and
state the estimated cost of the project for which the series of
bonds are proposed to be issued Ci i) ntate thP. principal amount of
such series of bonds,· {iii) state J:.be maximum rate of intere.st on
such series of bonds, the maximum discount at which such series of
bonds may be sold and the dates on which the interest ·thereon shall
be payable and {iv) state such other matter~ authorized by the bond
law as are deemed appropriate by the Council.
(d) Municipal Bond Insurance. The Council may cause the
payment of principa!, premiums on redemp~ion (if any) and interest
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on any series of bonds to be insured or guarante~d, and may inclune
the premiums on such insurance or quaranty in determining the
principal amount of such series of b6nds.
(e) . Non-apoli.cubility of Certain Portionfl of Bond Law.
Sectl.o,c 54380 to 54387, inciusive, 544o2 tF>) and'""STII1f of E'het50nd
law shull not apply. ·
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Section 2. The Council of the City of Palo Alto hereby finds
that tlie~-e·nacfffient of this Ordinance is not a ~proj·~ct" within the
meaning of that: term as defined in Section 11.04.130 of the Palo
Alto Municipal Code and, therefore, no environmental asscssmont is
necessary.
Section 3. Th.is Ordinance shall become effective upon the
commencement-of' the thirty-first day after t;he day of its passage.
PASSED~ -~ 1978
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AYES: Br~nner, ·Carey, Eyerly, Fletcher, Ht.·ndet·son.j l~it:herspoon
NOES: Sher, C"l ay .
ABS~'AIN: None
· AD SENT: Fazzino
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(__..t-1\,.y,__ / ,-.._'h .•;\.-/'-..(?--{
City Clerk -~ (/1 .
APPROVED AS TO FORM:
APPROVED:
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APPROVED:
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· :· · . t:i.ty Treasur~r ------