Ordinance 2773CITY OF ALAEDA ORDINANCE NO. 2773
New Series
PROVIDING PROCEDURES FOR THE ISSUANCE AN SALE OF LOCAL
OBLIGATION REVENU BONDS BY THE CITY OF ALEDA , INCLUDING
GENERA PROVISIONS AN DEFINITIONS, POWERS AN PROCEDURES
RELATING TO SUCH BONDS
WHEREAS, the City of Alameda (the "City ), and any and all otherpublic agencies under the control of the City Council of the Citycollectively, the "Local Agencies ), have previously issued, and may
from time to time hereafter issue, their notes, bonds, certificates ofparticipation and other obligations (collectively, the "LocalObligations) under and pursuant to the laws of the State of California; and
WHEREAS, the City is a charter city duly organized and existing
under a charter pursuant to which the Ci ty has the right and power to
make and enforce all laws and regulations in respect to municipal affairs
and certain other matters in accordance with and as more particularly
provided in Sections 3, 5 and 7 of Article XI of the Constitution of the
State of California and Section 1-2 (D) of Article I of the Charter of the
Clty; an
WHEREAS, the City wishes at this time to adopt this Ordinance
pursuant to its powers as a charter city, for the purpose of prescribing
the procedures under which the City is authorized to issue its Revenue
Bonds for the purpose of acquiring one or more issues of Local
Obligations for the purposes set forth herein, which procedures shall be
alternative and in addition to the procedures applicable to the City
under the general laws of the State of California;
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of
Alameda, and upon the affirmative vote of four members of the City
Council that:
Section 1. Short Title.. This Ordinance shall be known and may be
cited as the "City of Alameda Local Obligation Revenue Bond Law
Section 2. Findings and Determinations. The City Council of
Alameda does hereby find , determine and declare that:
(a)the City is a municipal corporation and charter city duly
organized and existing under a charter pursuant to which the City has the
right and power to make and enforce all laws and regulations in respect
to municipal affairs and certain other matters in accordance with and as
more particularly provided in Sections 3, 5 and 7 of Article XI of the
Constitution of the State of California and Section 1-2 (D) of Article I
of the Charter of the City; and
(b) the City Council, acting under and pursuant to the powers
reserved to the City under Sections 3, 5 and 7 of Article XI of the
Constitution of the State of California and Section 1-2 (D) of Article I
of the Charter of the City, hereby fipds and determines that the public
interest and necessity require the establishment by this procedural
ordinance of a procedure for the issuance of refunding improvement bonds
by the City for the purpose of refunding outstanding improvement bonds
of the City (including improvement bonds previously refunded) issued
pursuant to the Act, all as provided herein.
Section 3. Municipal and State Affairs Applicability of Laws.
' This Ordinance is adopted pursua::t ,S(;,tio "l 1-2 (D) of Article - of the
Charter of the City of Alameda. . In proceedings had pursuant to this
Ordinance which are a municipal affair, any general laws referred to in
this Ordinance are deemed a part of this Ordinance. In the event that
any proceeding had pursuant to this Ordinance shall be adjudged a state
affair, it is declared to be the intention that the proceedings were had
pursuant to any applicable general law or laws. This Ordinance provides
' alternative method of refunding bonds issued for certain public
capital facilities pursuant to the Act. The provisions of this Ordinance
shall not affect or limit any other provisions of law authorizing or
providing for the refunding of bonds issued for these purposes.
Section 4. Conflicting provisions; Severability. Any provision in
this Ordinance which conflicts with any general law or act shall prevail
over the other such provision in connection with any proceedings taken
pursuant to this Ordinance. In the event any portion of this Ordinance
shall be declared illegal, unenforceable, or unconstitutional, such
provision shall be deemed severable from the rest of the provisions of
this Ordinance.
Section 5. Defined Terms. The following terms shall have the
following respective meanings when used in this Ordinance. Any terms
used herein and not otherwise defined shall have the meanings given such
terms in the Act.
Bond Purchase Agreement means
executed between the City and a Local
agrees to purcha e Local Obligations
a contractual agreement
Agency whereby the City
of such Local Agency.
City Council means the City Council of the City, as
the legislative body of the City.
Local Agency H means any public agency which is governed
by or which is appointed by the City Council, including butnot limited to the City of Alameda Community Improvement
Commission, the Alameda Public Financing Authority or the
City.
Local Obligations means any bonds (including, but not
1 imi ted to, assessment bonds, redevelopment agency bonds,
government issued mortgage bonds, and industrial developmentbonds), notes (including bond, revenue, tax or grantanticipation notes), commercial paper, floating rate , andvariable maturity securities, and any other evidences of
indebtedness and also includes certificates of participation
or lease-purchase agreements, which are issued by a Local
Agency.
Ordinance means the provisions of this Ordinance, as
amended from time to time.
Pulic Capital Improvements means one or more projects
specified in Section 6546 of the Government Code of the State
of California.
Revenue means all income and receipts of the City from
a Bond Purchase Agreement or from the loan of the proceeds of
any issue of Revenue Bonds to a Local Agency, including any
other sources of income derived by the City from the issuance
of its Revenue Bonds under this Ordinance.
Revenue Bonds means bonds issued by the City pursuantto this Ordinance for any one or more of the following
purposes: (a) for the purpose of acquiring one or more issues
of Local Obligations, (b) for the purpose of financing Public
Capital Improvements of the City, or (c) for the purpose of
making loans to Local Agencies other than the Ci ty to provide
financing for Public Capital Improvements.
Section 6. Effect of Ordinance. This Ordinance does not limit any
other law authorizing, or providing for , the financing of Public Capital
Improvements. Likewise , this Ordinance does not limit any other law
regarding local indebtedness or limit the exercise of any other power
of an authority created pursuant to this Ordinance. This Ordinance shall
be deemed to provide a complete and supplemental method for exercising
the powers authorized by this Ordinance, and shall be deemed as being
supplemental to the powers conferred by other applicable laws. The
issuance of bonds, financing, or refinancing under this Ordinance need
not comply with the requirements of any other state laws applicable to
the issuance of such bonds.
Section 7. Powers of the City. The City Council in the name and
on behalf of the City may issue Revenue Bonds for anyone or more of the
following purposes: (a) for the purpose of acquiring one or more issues
of Local Obligations, (b) for the purpose of financing Public Capital
Improvements of the City, or (c) for the purpose of making loans to Local
Agencies other than the City to provide financing for Public Capital
Improvements. In connection with the issuance of Revenue Bonds under
this Ordinance, the City shall be authorized to:
(a) Make secured or unsecured loans to any Local Agency
other than the City in connection with the financing of Public
Capital Improvements , or in connection with the refinancing of
indebtedness incurred by the ,Local Agency in connection with
Pub 1 ic Capi tal Improvements, in accordance wi th an agreement
between the City and the Local Agency.
(b) Mortgage all or any portion of its interest in
Public Capital Improvements and the property on which any
proj ect is located, whether owned or thereafter acquired,
including the granting of a security interest in any property,
tangible or intangible.
(c) Assign or pledge all or any portion of its
interests in mortgages, deeds of trust, indentures of mortgageor trust, or similar instruments, notes, and security
interests in property, tangible or intangible, of a Local
Agency to which the City has made loans, and the revenues
therefrom, including payment or income from any interest owned
or held by the City, for the benefit of the holders of Revenue
Bonds. The pledge of moneys, revenues, accounts, contract
rights, or rights to payment of any kind made by or to the
City pursuant to the City granted in this part shall be valid
and binding from the time the pledge is made for the benefit
of the pledgees and successors thereto, against all parties
irrespective of whether the parties have notice of the claim.
(d) Lease the Public Capital Improvements being
financed to a Local Agency, upon terms and conditions that theCity deems proper; charge and collect rents therefor;
terminate any lease upon the failure of the lessee to comply
with any of the obligations of the lease; include in any lease
provisions that the lessee shall have options to renew the
lease for a period or periods, and at rents as determined by
the City; purchase or sell by an installment agreement or
otherwise any or all of the Public Capital Improvements; or
upon payment of all the indebtedness incurred by the City forthe financing or refinancing of the Public Capital
Improvements, the Ci ty may convey any or all of the proj ect to
the lessee or lessees.
(e) Apply Revenues, to the extent not required for
payment of principal of and interest and redemption premium
(if any) on Revenue Bonds , to the payment of administrative
costs and expenses incurred by the City in the exercise of its
powers under this Ordinance, or for any other purpose for
which City funds may lawfully be expended.
(f) Notwithstanding any other provision of this
Ordinance, enter into any agreement, .contract , or any other
instrument with respect to any insurance or guarantee; accept
payment in the manner and form as provided therein in the
event of default by a Local Agency; and assign any insurance
or guarantee that acts as security for the Revenue Bonds.
(g)
Enter into any agreement or contract, execute anyinstrument, and perform any act or thing necessary,
convenient, or desirable to carry out any power authorized by
this Ordinance.
(h) Invest any moneys held in reserve or sinking funds,
or any moneys not required for immediate use or disbursement,
in obligations that are authorized by law for the investment
of trust funds.
(i) At the request of affected Localand pledge revenues to Public Capital
repayment of one or more series of Revenue
Agencies, combine
Improvements for
Bonds.
(j)
Set any other terms and conditions on any purchase
or sale pursuant to this section as it deems by resolution tobe necessary, appropriate, and in the public interest, in
furtherance of the purposes of this Ordinance.
Section 8. Bond Purchase Agreements. The City may enter into a
Bond Purchase Agreement with one or more Local Agencies. The Bond
Purchase Agreement shall specify the maximum rate of interest , the cost
of issuance, the amount of required reserve, and the procedure to be used
in case of default. Notwithstanding any other provision of law , Local
Agencies may sell their bonds to the City on a negotiated basis without
compliance with any public sale requirement included in the statutes
under which the Revenue Bonds are issued. Any issue of Bonds by a Local
Agency may be sold at a price which yields in excess of the yield on the
Revenue Bonds.
Section 9. Purpose and Terms of Bonds. The City may, from time to
time , issue Revenue Bonds in such principal amount as the City determines
necessary to provide sufficient funds for its purposes, which may
include, but shall not be limited to, providing funds for Bond Purchase
Agreements, payment of interest on the Revenue Bonds, establishment of
reserves to secure the Revenue Bonds, and other expenditures of the City
incident to issuance of the Revenue Bonds. The City may also issue
Revenue Bonds for the purpose of making loans to Local Agencies, to the
extent those Local Agencies are authorized by law to borrow moneys , and
the loan proceeds shall be used by the Local Agencies to finance or
refinance Public Capital Improvements. Revenue Bonds may be authorized
to finance a single Public Capital Improvement for a single Local Agency;
a series of Public Capital Improvements for a single Local Agency, a
single Public Capital Improvement for two or more Local Agencies, or a
series of Public Capital Improvements for two or more Local Agencies.
At the election of the city, Revenue Bonds may be issued for multiple
purposes, including but not limited to the purchase of Local Obligations
and the financing of Public Capital Improvements of the City.
Every issue of Revenue Bonds shall
Ci ty payable solely from the Revenues and
therefor by the City.
be special obligations of the
other funds and assets pledged
Revenue Bonds shall be authorized by resolution of the City Council,or by a trust agreement, indenture or other agreement of the City
approved by resolution of the City Council, and shall, as provided by
such resolution, trust agreement, indenture or other agreement, bear the
date of issuance; the time of maturity, not exceeding thirty (30) years
from their date of issuance; bear the rate of interest, either fixed or
variable, and , if variable, not in excess of the maximum rate of interest
specified therein; be payable as to principal and interest at the time
or times provided; be in the denominations provided; be in the form
provided; carry the registration privileges provided; be executed in the
manner provided; be payable in lawful money of the United States at the
place or places provided within or without the State of California; and
be subj ect to the terms of redemption provided.
Section 10. Sale of Bonds. Any issue of Revenue Bonds authorized
to be issued by the City under this Ordinance shall be sold by the City
at the time and in the manner set out in the resolution , trust agreement
indenture or other agreement of the City Council authorizing the issuancethereof. Revenue Bonds may be sold at public or private sale , and forprice or prices, and on terms and conditions as the City Council shall
determine proper , after giving due consideration to the recommendations
of any Local Agency to be assisted from the proceeds of the Revenue
Bonds.
Section 11. Provisions of Authorizing Documents. Any resolution,
trust agreement indenture or other agreement of the City Council
authorizing the issuance of Revenue Bonds may contain any provisions for
the security of the Revenue Bonds, f r the administration of funds and
accounts established with respect to the Revenue Bonds, and in any otherrespect as the City shall deem necessary or advisable , and not in
conflict with or inconsistent with the provisions of this Ordinance.
Section 12. Non-Liability of City Council Members. No member of
the City Council shall be personally liable on the Revenue Bonds or be
subj ect to any personal liability or accountability by reason of the
issuance of bonds.
Section 13. Issuance of Refunding Bonds. (a) The City may issue
Revenue Bonds for the purpose of refunding any Revenue Bonds previously
issued by the City under this Ordinance. The proceeds of any Revenue
Bonds issued for the purpose of refunding outstanding Revenue Bonds may
be applied to the purchase or retirement at maturity or redemption ofthose outstanding Revenue Bonds either on their earliest or any
subsequent redemption date or upon the purchase or retirement at the
maturity thereof and may, pending such application, be placed in escrow
to be applied to the purchase or retirement at maturity or redemption of
those outstanding Revenue Bonds on the date as may be determined by the
City.
Section 14. Validity of Revenue Bonds. An action to determine the
validity of a reassessment and of any Revenue Bonds issued under this
Ordinance may be brought pursuant to Chapt€r 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure. For that
purpose, the reassessment shall be deemed to be in existence upon its
confirmation. No action or proceeding to review any of the proceedings,
acts, or determinations made in the proceedings for the issuance of
Revenue Bonds , or to enj oin the issuance of any Revenue Bonds, shall be
maintained by any person , nor shall any person urge, plead or prove, the
invalidity of any Revenue Bond in any action, unless the action is
commenced within 30 days from the date of adoption of the resolution
providing for the issuance of the Revenue Bonds.
Section 15. Limitation on Challenges. The validity of this
Ordinance shall not be contested in any action or proceeding or defense
unless such action or proceeding or defense shall have been brought or
raised within thirty (30) days from the date of the approval of this
Ordinance by the City Council. Unless an action or proceeding is
commenced or such defense raised within said period, this Ordinance shall
be held valid and in every respect legal and incontestable.
Section 16. Effective Date. This ordinance shall be in full force
and effect from and after the expiration of thirty (30) days from the
date of its final passage.
Attest:
, the undersigned, hereby certifY that the foregoing Ordinance was duly and regularly adopted
and passed by the Council of the City of Alameda in regular meeting assembled on the 6th day of
October , 1998 , by the following vote to wit:
AYES:Councilmembers Daysog, DeWitt , Kerr , Lucas and
President Appezzato - 5.
NOES:None.
ABSENT:None.
ABSTENTIONS:None.
IN WITNSS , WHEREOF , I have hereunto set my hand and affixed the offcial seal of said City
this 7th d ay of October , 1998.
Diane Felsch , City Clerk
City of Alameda