HomeMy WebLinkAbout93-29 - Adding Chapter 3.27 to Title 3 of the Newport Beach Municipal Code Establishing a Procedure for the Issuance of Revenue BondsORDINANCE NO. 93 -29
AN ORDINANCE OF THE CITY OF NEWPORT BEACH
ADDING CHAPTER 3.27 TO TITLE 3 OF THE NEWPORT
BEACH MUNICIPAL CODE ESTABLISHING A
PROCEDURE FOR THE ISSUANCE OF REVENUE BONDS.
• THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH DOES ORDAIN AS
FOLLOWS:
SECTION 1. Chapter 3.27 is added to Title 3 of the NBMC to read as follows:
"Chapter 3.27
Municipal Facilities Revenue Bond Code.
Section 3.27.010. �J'r . @. This chapter shall be known and may be cited as the
`City of Newport Beach Municipal Facilities Revenue Bond Code,' and shall be
• referred to as the `Code'.
Section 3.27.020. Purpose. The Council hereby finds and declares that it is
necessary, essential, a public purpose and a municipal affair for the City to provide
financing for municipal facilities serving residents and businesses of the City in the
interests of the public health, safety and welfare.
Section 3.27.030. Derrnitions. Unless the context otherwise requires, the
following definitions shall govern the construction of this Chapter:
"Acquisition and Construction" mean, with respect to any Enterprise or portion
• thereof, the acquisition, construction, improvement, furnishing, equipping,
remodeling, repair, reconstruction or rehabilitation thereof.
"Bonds" mean any bonds, notes, installment sale agreements, leases or other
obligationc,issued or entered into by the City pursuant to this Chapter for the purpose
of financing the Costs of an Enterprise, which are payable exclusively from Revenues
relating to such Enterprise and other funds permitted by this Chapter.
"Chapter" means this Chapter 3.27 of the Newport Beach City Code, as amended
• from time to time in accordance herewith.
"Charter" means the charter of the City, as amended from time to time.
"City" means the City of Newport Beach, California, a chartered city in the State
existing under and exercising powers pursuant to the Charter and the Constitution of
the State.
"City Council" means the City Council of the City.
"Costs" mean, with reference to an Enterprise or any portion thereof, any or all of
. the following costs incurred for the Acquisition and Construction thereof:
(a) Obligations- of the City incurred for labor and material in connection
with the Acquisition and Construction of such Enterprise or portion thereof;
(b) The cost of Acquisition and Construction of any property, whether
real or personal and improved or unimproved, including franchise rights and other
intangible property, and any interests therein, required for the Acquisition and
Construction of such Enterprise or portion thereof;
(c) The cost of demolishing, removing or relocating any building or
• structure, and the cost of making relocation assistance payments required by law;
(d) The cost of contract bonds and of insurance of all kinds that may be
required or necessary during the course of the Acquisition and Construction of such
Enterprise or portion thereof;
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(e) All costs of engineering, legal and consultant services, including the
costs of the City for surveys, estimates, plans and specifications and preliminary
investigation therefor, and for supervising construction, as well as for the
performance of all other duties required by or consequent upon the proper
0 Acquisition and Construction of such Enterprise or portion thereof;
(f) All costs incurred in connection with proceedings by the City
necessary to comply with the California Environmental Quality Act of 1970, as
amended;
(g) All amounts required to fund any reserve funds for Bonds and any
interest on Bonds becoming due and payable during a period not exceeding the period
of Acquisition and Construction of such Enterprise or portion thereof, and for 12
months thereafter;
(h) All costs of issuance of the Bonds;
•
(i) All costs which the City shall be required to pay, under the terms of
any contract or contracts, for the Acquisition and Construction of such Enterprise or
portion thereof;
0) The refinancing of any existing indebtedness relating to such
Enterprise or portion thereof; and
(k) Any sums required to reimburse the City for advances made for any
of the above items, or for any other costs incurred and for work done which are
properly chargeable to such Enterprise or portion thereof.
•
"Enterprise" means any land, improvements, facilities, equipment and other property
of any nature whatsoever, which are used for any of the following municipal
operations of the City: (a) the system of the City for the generation, production,
transmission and distribution of electricity, gas and other forms of energy for
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lighting, heating, and power for public uses; (b) the system of the City for the
acquisition, storage, treatment and distribution of water for domestic use, irrigation,
sanitation, industrial use, fire protection, recreation or any other public use; (c) the
system of the City for the collection, treatment and disposal of sewage, waste or
storm water, including drainage; (d) public parking lots, garages or other automotive
• or vehicular parking facilities, including any and all public off - street vehicular
parking facilities; (e) public marinas; (f) mobile home parks; and (g) public golf
courses and facilities and improvements. The precise description of any Enterprise
for which financing is provided under this Chapter shall be set forth in the
proceedings of the City Council authorizing such financing.
"Revenues" mean, with respect to an Enterprise, all gross income and revenue
received by the City from the ownership and operation of such Enterprise, including
all fees and charges received by the City for the services of such Enterprise and all
other income and revenue howsoever derived by the City from the ownership and
operation of such Enterprise or arising from such Enterprise, and including all
• receipts derived from the investment of such income or revenues, including moneys
deposited in a sinking, redemption or reserve fund or other fund to secure the Bonds
or to provide for the payment of the principal of or interest on the Bonds and such
other moneys as the City Council may in its discretion make available therefor. With
respect to any grant anticipation notes issued under this Chapter, the term Revenues
shall also include the revenues derived from the proceeds of any federal or State
grant with respect to such Enterprise. The precise description of the Revenues with
respect to any Enterprise for which financing is provided under this Chapter shall be
set forth in the proceedings of the City Council authorizing such financing.
"State" means the State of California.
Section 3.27.040. General powers. In connection with the Acquisition and
Construction of an Enterprise by the City, the City is authorized and empowered:
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(a) To issue Bonds for the purpose of financing or otherwise assisting the
payment of the Costs of such Enterprise and for the purpose of funding or refunding
any issue of Bonds.
(b) To establish the terms and conditions for the financing of any
component of such Enterprise undertaken pursuant to this Chapter.
(c) To employ or contract for such legal, consultant, underwriting,
economic feasibility, or other services in connection with the financing of such
Enterprise, or to contract for Bond insurance or other forms of collateral security,
as may be necessary in the judgment of the City Council for the successful financing
of such Enterprise and the issuance and sale of Bonds therefor.
(d) In addition to all other powers specifically granted in this Chapter, to
do all things necessary or convenient, in the judgement of the City Council, to carry
out the purposes of this Chapter.
Section 3.27.050. Authorization of Bonds. The City may issue its Bonds for
the purpose of financing or otherwise assisting the Acquisition and Construction of
all or any portion of an Enterprise as authorized by this Chapter. Every issue of
Bonds shall be a special obligation of the City, payable solely from all or any part
of the Revenues with respect to such Enterprise. It shall not be necessary that the
issuance of any Bonds be subject to authorization by the voters of the City.
Section 3.27.060. Issuance of Bonds. Bonds may be issued as serial Bonds or
as term Bonds, as current interest Bonds or capital appreciation Bonds, or in such
other or additional forms as the City Council may deem advisable. The Bonds shall
be authorized by resolution of the City Council and shall bear such date or dates,
mature at such time or times, bear interest at such fixed or variable rate or rates, be
payable at such time or times, be in such denominations, be in such form, carry such
registration privileges, be executed in such manner, be payable in lawful money of
the United'States of America at such place or places, and be subject to such terms
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of redemption as the City Council may provide. The Bonds may be sold at either a
public or private sale and for such prices as the City Council shall determine.
Section 3.27.070. Terms of Bonds. Any proceedings of the City authorizing
• Bonds for an Enterprise may contain provisions respecting any of the following terms
and conditions, which shall be a part of the contract with the owners of the Bonds:
(a) The pledge of all or any part of the related Revenues, subject to such
agreements with Bond owners as may then exist.
(b) The creation of any mortgage, lien or other security interest on any
part of an Enterprise, or on any other funds, rights or assets of the City of any nature
whatsoever relating to such Enterprise.
(c) The interest and principal to be received and other charges to be
• charged and the amounts to be raised each year thereby, and the use and disposition
of such Revenues.
(d) The setting aside of reserves or sinking funds and the regulation and
disposition thereof.
(e) Limitations on the purposes to which the proceeds of a sale of any
issue of Bonds, then or thereafter issued, may be applied, and pledging such proceeds
to secure the payment of the Bonds or any issue of Bonds.
(f) Limitations on the issuance of additional Bonds, the terms upon which
additional Bonds may be issued and secured, and the refunding of outstanding Bonds.
•
(g) The procedure, if any, by which the terms of any contract with Bond
owners may be amended or abrogated, the amount of Bonds the owners of which
must consent thereto, and the manner in which such consent may be given.
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(h) Specification of the acts or omissions to act which shall constitute a
default in the duties of the City to the owners of the Bonds, and providing the rights
and remedies of such owners in the event of default.
• (i) Such other terms and conditions pertaining to the issuance of the
Bonds as are deemed advisable by the City Council.
Section 3.27.080. Issuance under indenture or trust agreement. In the
discretion of the City Council, any Bonds issued under the provisions of this Chapter
may be secured by a trust agreement or indenture by and between the City and a
corporate trustee or trustees, which may be any trust company or bank having the
powers of a trust company within or without the State. Such trust agreement or the
indenture may pledge or assign the Revenues to be received or proceeds of any
contract or contracts pledged, and may convey or mortgage any property. Such trust
agreement or indenture may contain such provisions for protecting and enforcing the
• rights and remedies of the Bond owners as may be reasonable and proper and not in
violation of law, including such provisions as is permitted to be included in any
resolution or resolutions of the City Council authorizing the issuance of Bonds
hereunder. Any bank or trust company doing business under the laws of the State
which may act as depository of the proceeds of Bonds or the Revenues or other
moneys may furnish such indemnity bonds or pledge such securities as may be
required by the City. Any such trust agreement or indenture may set forth the rights
and remedies of the Bond owners and of the trustee or trustees, and may restrict the
individual right of action by Bond owners. In addition to the foregoing, any such
trust agreement or indenture may contain such other provisions as the City Council
may deem reasonable and proper for the security of the Bond owners.
• Section 3.27.090. Personal liability. Neither the members of the City Council
nor any person executing the Bonds shall be liable personally on the Bonds or be
subject to any personal liability or accountability by reason of the issuance thereof.
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Section 3.27.100. Refunding Bonds. The City Council may provide for the
issuance of Bonds any portion of which is to be used for the purpose of refunding
outstanding Bonds, including the payment of the principal thereof and interest and
redemption premiums, if any, thereon. The proceeds of Bonds issued to refund any
outstanding Bonds may, in the discretion of the City Council, be applied to the
retirement of such outstanding Bonds at maturity, or the redemption (on any
redemption date) or purchase of such outstanding Bonds prior to maturity, upon such
terms and subject to such conditions as the City Council shall deem advisable.
Section 3.27.110. Repayment of Bonds. Revenues, or any portion thereof, as
designated in the resolution, trust agreement or indenture authorizing the issuance of
the Bonds, shall be the sole source of funds pledged by the City for repayment of
Bonds issued hereunder. Bonds issued hereunder shall not be deemed to constitute
a debt or liability of the City or a pledge of the faith and credit of the City but shall
be payable solely from Revenues.
All Bonds shall contain on the face thereof a statement to the following effect:
Neither the faith and credit nor the taxing power of the City of Newport Beach
pledged to the payment of the principal of or interest on this Bond.
The issuance of Bonds shall not directly, indirectly or contingently obligate the City
Council to levy or pledge any form of taxation or to make any appropriation for their
payment.
Section 3.27.120. Trust funds. All moneys received pursuant to the provisions
of this Chapter, whether proceeds from the sale of Bonds or Revenues or other
moneys or assets authorized by this Chapter to be pledged to secure payment of
Bonds, shall, to the extent set forth in the resolution or trust agreement authorizing
the issuance of the Bonds, be deemed to be trust funds to be held and applied solely
for the purposes of this Chapter. Any bank or trust company in which such moneys
are deposited shall act as trustee of such moneys and shall hold and apply the same
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for the purposes specified in this Chapter, subject to the terms of the resolution,
agreement or indenture authorizing the Bonds.
Section 3.27.130. Purchase of Bonds by City. The City shall have the power
• out of any funds available therefor to purchase its Bonds. The City may hold,
pledge, cancel or resell such Bonds, subject to and in accordance with its agreement
with Bond owners.
Section 3.27.140. Bond anticipation notes. In anticipation of the sale of Bonds
authorized by this Chapter, the City is hereby authorized to issue bond anticipation
notes, and to renew the same from time to time, in such series and amounts as are
determined by the City Council to be necessary or appropriate for the Costs of an
Enterprise approved by the City Council. Such notes shall be payable from Revenues
or other moneys or assets authorized by this Chapter to be pledged to secure payment
of Bonds, and which are not otherwise pledged, or from the proceeds or sale of the
• particular Bonds in anticipation of which they are issued. Such notes shall be issued
in the same manner as other Bonds which are authorized to be issued hereunder.
Section 3.27.150. Grant anticipation notes. In anticipation of the receipt of
funds derived from any federal or State grants with respect to an Enterprise or any
portion thereof, the City is hereby authorized to issue grant anticipation notes, and
to renew the same from time to time, in such series and amounts as are determined
by the City Council to be necessary or appropriate for the Costs of an Enterprise
approved by the City Council and reimbursable from such grants. Such notes shall
be payable from the revenues derived form the proceeds of such grants or other
moneys or assets authorized by this Chapter to be pledged to secure payment of
Bonds, and which are not otherwise pledged, or from the proceeds or sale of the
• particular Bonds in anticipation of which they are issued. Such notes shall be issued
in the same manner as other Bonds which are authorized to be issued hereunder.
Section 3.27.160. Liberal construction. This Chapter, being necessary for the
health, welfare and safety of the City, its residents and businesses, shall be liberally
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construed to effect its purposes. Furthermore, the City Council hereby declares that
this Chapter is an exercise of the power granted to the City by the City Charter and
the Constitution of the State and is an exercise by the City of its powers as to
municipal affairs and its police powers, and this Chapter shall be liberally constructed
to uphold its validity under the laws of the State.
Section 3.27.170. Provisions of this Chanter are complete additional and
alternative. This Chapter shall be deemed to provide a complete, additional and
alternative method for doing the things authorized hereby, and shall be regarded as
supplemental and additional to the powers conferred by other laws. The issuance of
Bonds under the provisions of this Chapter need not comply with the requirements
of any other law applicable to the issuance of bonds for an Enterprise. The purposes
authorized hereby may be effectuated and Bonds are authorized to be issued for any
such purposes under this Chapter notwithstanding that any other law may provide for
such purposes or for the issuance of bonds for like purposes and without regard to
the requirements, restrictions, limitations or other provisions contained in any other
law.
Section 3.27.180. Judicial validation proceedings. An action may be brought
pursuant to Chapter 9 (commencing with Section 860 of Title 10 of Part 2 of the
Code of Civil Procedure) to determine the validity of Bonds and the legality and
validity of all proceedings previously taken and proposed to be taken for the
authorization, issuance, sale, and delivery of the Bonds and for the payment of the
principal thereof and interest thereon.
Section 3.27.190. Amendment of Chanter. This Chapter shall not be amended
so as to have a material, adverse affect upon the rights of the owners of any
outstanding Bonds theretofore issued hereunder, without the written consent of such
Bond Owners; provided, however, that this Chapter may be amended at any time (a)
to make such provisions for the purpose of curing any ambiguity, or of curing,
correcting or supplementing any defective provisions herein contained, as the City
may deem necessary or desirable; or (b) if such amendment does not materially
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impair or adversely affect the interests of any such Bond owner in the opinion of the
City Council; or (c) if such amendments apply solely to Bonds not theretofore issued.
Section 3.27.200. Chapter controlling. To the extent that the provisions of this
Chapter are inconsistent with the provisions of any general statute or special act or
parts thereof, the provisions of this Chapter shall be deemed controlling.
SECTION 2. SEVERABILITY. If any provisions or clause of this ordinance or the
application thereof to any person or circumstances is held to be unconstitutional or to be otherwise
invalid by any court of competent jurisdiction, such invalidity shall not affect other provisions,
clauses, or applications thereof which can be implemented without the invalid provision, clause or
application, and to this end the provisions and clauses of this ordinance are deemed to be severable.
SECTION 3. EFFECTIVE DATE. The provisions of this ordinance shall take effect and
be in full force and effect thirty (30) days from and after the date of its adoption.
FIRST READ at a regular meeting of the Council of the City of Newport Beach held the 13 day of
December , 1993, and finally passed and adopted at a regular meeting of the City Council held
the 10th day of January , 1994, by the following vote:
AYES: HEDGES, SANSONE, WATT, TURNER, COX, DERRY
NOES: HART
ABSENT: NONE
• ATTEST:
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