HomeMy WebLinkAboutORD NO 2737ORDINANCE NO. 2737 NEW SERIES
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
BAKERSFIELD ADDING CHAPTER 3.50 TO TITLE 3
OF THE BAKERSFIELD MUNICIPAL CODE PROVIDING
FOR THE CITY OF BAKERSFIELD ECONOMIC DEVELOP-
MENT REVENUE BOND LAW AUTHORIZING THE ISSUANCE
OF REVENUE BONDS FOR THE PURPOSE OF PROVIDING
FINANCING TO PARTICIPATING PARTIES FOR ECONOMIC
DEVELOPMENT PURPOSES AND INCLUDING DEFINITIONS,
GENERAL PROVISIONS, POWERS, ISSUANCE PROCEDURES
AND CERTAIN OTHER SUPPLEMENTAL PROVISIONS.
WHEREAS, the City of Bakersfield (the "City") is a
municipal corporation and charter city duly organized and existing
under a freeholders' charter, pursuant to which the City has the
~ight 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 12 of the Charter of the City (the "Charter"); and
WHEREAS, the City Council of the City has received
oral and written evidence which, together with the personal
knowledge of the Members of the Council,
the City to provide financial assistance
development within the City; and
WHEREAS, the City Council
pursuant to the powers reserved to
supports the need for
to promote economic
of the City, acting under and
the City under Sections 3, 5
and 7 of Article XI of the Constitution of the State of California
and Section 12 of the Charter, finds that the public interest and
necessity require the adoption of this ordinance to authorize,
and establish the procedure for, the sale and issuance of revenue
bonds by the City for the purpose of providing financing to
participating parties for economic development purposes as specified
herein;
NOW, THEREFORE, BE IT ORDAINED by the Council of the
City of Bakersfield as follows:
SECTION 1.
Chapter 3.50 shall be added to Title 3 of the Bakersfield
Municipal Code, said new chapter to read and be numbered as
follows:
TITLE 3
Chapter 3.50
ECONOMIC DEVELOPMENT REVENUE BOND LAW
Sections:
3.50.010
3.50.020
3.50.030
3.50.040
3.50.050
3.50.060
3 50.070
3 50.080
3 50.090
3 50.100
3 50.110
3 50.120
3 50.130
3 50.140
3 50.150
3 50.160
3 50.170
3 50.180
3 50.190
3 50.200
3 50.210
3.50.220
3.50.230
3.50.240
3.50.250
3.50.260
3.50.270
Title
Purpose
Definitions
No Limitation on Appropriations
Loans for Facilities
Acquisition, Construction, Leasing and Selling
of Facilities
Applications for Approval
Fees
Insurance
Rents and Charges
Security for Loans
Professional Services
Public Works Requirements Inapplicable
Additional Powers
Issuance of Bonds
Bonds Not Debt of City
Bond Terms
Bond Provisions
Pledge of Revenues, Money or Property; Lien
No Personal Liability
Purchase of Bonds by City
Actions by Bondholders
Refunding Bonds
Bond Anticipation Notes
Validity of Bonds
Liberal Construction
()missions Not To Affect Validity of Bonds
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3.50.280
3.50.290
3.50.300
3.50.310
Full Authority
Additional Authority
Chapter Controlling
Severability
GENERAL PROVISIONS AND DEFINITIONS
Section 3.50.010: TITLE. This chapter may be cited as the
City of Bakersfield Economic Development Revenue Bond Law.
Section 3.50.020: PURPOSE. The Council hereby finds and
declares that it is necessary and essential to the well-being
of the City that it provide financial assistance to promote
the economic development of the City. Such economic
development will serve the following public purposes and
municipal affairs of the City: (a) the full and gainful
employment of residents of the City; (b) the full and
efficient utilization and modernization of existing
industrial, commercial, and business facilities; (c) the
development of new industrial, commercial and business
facilities; (d) the growth of the City's tax base through
increased property values and consumer purchasing; (e) the
reduction of the need for and costs of welfare and other
remedial programs; (f) the reduction of urban ills, such as
crime, attributable in part to inadequate economic
opportunities; (g) the stability and diversification of the
City's economy; (h) the lowering of the cost to City
consumers of necessary goods and services; (i) the
environmentally optimum disposition of waste materials of the
City; and (j) the enhancement of the general economic
prosperity, health, safety and welfare of the residents of
the City.
The availability of the financial assistance
authorized by this chapter will serve those purposes and the
general plan of the City by providing private enterprises
with new methods of financing capital outlays in the City and
by ensuring that economic development within the City will
reflect the local communlty's needs and objectives and will
be environmentally optimum with respect to both the physical
and social environment of the City. The City shall promote
such public interests pursuant to this chapter without
adversely affecting areas outside the City and without
conflicting with efforts by the State of California to solve
problems of statewide concern.
Section 3.050.030: DEFINITIONS. Unless the context
otherwise requires, the terms defined in this chapter shall
have the following meanings:
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(a) "Bonds" means the bonds, notes, certificates,
debentures and other obligations authorized to be issued by
the City pursuant to this chapter and payable as provided in
this chapter.
(b) "City" means the City of Bakersfield.
(c) "Cost" means the total of all costs incurred
by or on behalf of a Participating Party to carry out all
works and undertakings and to obtain all rights and powers
necessary or incident to the acquisition, construction,
installation, reconstruction, rehabilitation or improvement
of a Facility. "Cost" may include all costs of issuance of
bonds for such purposes, costs for construction undertaken by
a Participating Party as its own contractor, capitalized bond
interest, reserves for debt service and for repairs,
replacements, additions and improvements to a Facility, and
other working capital incident to the operation of a Facility.
(d) "Council" means the City Council of the City
of Bakersfield.
(e) "Facility" means any of the facilities, places
or buildings within the City which are, or will be,
maintained and operated for industrial, commercial or
business purposes, conform to the general plan of the City
and are approved by the City for the financing authorized by
this chapter, such approval being given only when the City
finds and determines that such financing will substantially
promote one or more of the public purposes listed in Section
3.50.020.
A "Facility" may be an activity which may otherwise
be financed pursuant to the California Industrial Development
Financing Act (Government Code §§ 91500 et seq.) to the
extent said Act permits the financing of such activity under
alternative authority. "Facility" includes, without
limitation, real and personal property, land, buildings,
structures, fixtures, machinery and/or equipment and all such
property related to or required or useful for the operation
of a Facility. Facility does not include any facility, place
or building used or to be used primarily for sectarian
instruction or study or as a place for devotional activities
or religious worship,
(f) "Participating Party" means any individual,
association, corporation, partnership or other entity which
is approved by the City to undertake the financing of the
Costs of a Facility for which this chapter authorizes the
issuance of the Bonds.
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(g) "Revenues" means amounts received by the City
as payments of principal, interest, and all other charges
with respect to a loan authorized by this chapter, as
payments under a lease, sublease or sale agreement with
respect to a Facility, as proceeds received by the City from
mortgage, hazard or other insurance on or with respect to
such a loan (or any property securing such loan), lease,
sublease or sale agreement, all other rents, charges, fees,
income and receipts derived by the City from the financing of
a Facility authorized by this chapter, any amounts received
by the City as investment earnings on moneys deposited in any
fund securing the Bonds, and such other legally available
moneys as the Council may, in its discretion, lawfully
designate as Revenues.
Section 3.50.040: NO LIMITATION ON APPROPRIATIONS.
Revenues, as defined by this chapter, and the expenditure of
such Revenues shall not be taken into account in any manner
in determining the City's compliance with Article XIIIB of
the California Constitution.
FINANCING FACILITIES
Section 3.50.050: LOANS FOR FACILITIES. The City is hereby
authorized to make, purchase, or otherwise contract for the
making of, a mortgage or other secured or unsecured loan,
with the proceeds of Bonds and upon such terms and conditions
as the City shall deem proper, to any Participating Party for
the Costs of a Facility.
Section 3.50.060: ACQUISITION, CONSTRUCTION, LEASING AND
SELLING OF FACILITIES. The City is hereby authorized to
acquire, construct, enlarge, remodel, renovate, alter,
improve, furnish, equip and lease as lessee, with the
proceeds of Bonds, a Facility solely for the purpose of
selling or leasing as lessor such Facility to such
Participating Party, and is further authorized to make any
contracts for such purposes. The City is also authorized to
contract with such Participating Party to undertake on behalf
of the City to construct, enlarge, remodel, renovate, alter,
improve, furnish and equip such Facility.
The City is authorized to sell or lease, upon such
terms and conditions as the City shall deem proper, to a
Participating Party any Facility owned by the City under this
chapter, including a Facility conveyed to the City in
connection with a financing authorized by this chapter but
not being financed hereunder.
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Section 3.50.070: APPLICATIONS FOR APPROVAL. Any person
may apply to the City for approval as a Participating Party
and for approval of a Facility for financing under this
chapter. Applications shall set forth such information as
the City may require in order to enable the City to evaluate
the applicant, the Facility and its prQposed costs..
Section 3.50.080: FEES. The City is hereby authorized to
charge Participating Parties application, commitment,
financing and other fees, in order to recover all
administrative and other costs and expenses incurred in the
exercise of the powers and duties conferred by this chapter.
The Council shall direct the City Clerk to transmit a letter
agreement or contract to a Participating Party which will
obligate such party to pay such fees and expenses as the
Council may charge or incur hereunder.
Section 3.50.090: INSURANCE. The City is hereby authorized
to obtain, or aid in obtaining, from any department or agency
of the United States or of the State of California or any
private company, any insurance or guarantee as to, or of, or
for the payment or repayment of, interest or principal, or
both, rents, fees or other charges, or any part thereof, on
any loan, lease or sale obligation or any instrument
evidencing or securing the same, made or entered into as
authorized by this chapter; and is authorized to accept
payment in such manner and form as provided therein in the
event of default by a Participating Party, and to assign any
such insurance or guarantee as security for Bonds.
Section 3.50.100: RENTS AND CHARGES. The City is hereby
authorized to fix rents, payments, fees, charges and interest
rates for a financing authorized by this chapter and to agree
to revise from time to time such rents, payments, fees,
charges and interest rates to reflect changes in interest
rates on Bonds, losses due to defaults or changes in other
expenses related to this chapter, including City
administrative expenses.
Section 3.50.110: SECURITY FOR LOANS. The City is hereby
authorized to hold deeds of trust or mortgages or security
interests in personal property as security for loans and
other obligations authorized by this chapter and to pledge or
assign. the same as security for repayment of Bonds. Such
deeds of trust, mortgages or security interests, or any other
interest of the City in any Facility, may be assigned to, and
held on behalf of the City by, any bank or trust company
appointed to act as trustee by the City in any resolution or
indenture providing for issuance of Bonds.
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Section 3.50.120: PROFESSIONAL SERVICES. The City is
hereby authorized to contract for such engineering,
architectural, financial, accounting, legal or other services
as may be necessary in the judgment of the City for the
purposes of this chapter.
Section 3.50.130: PUBLIC WORKS REQUIREMENTS INAPPLICABLE.
Except as specifically provided in this chapter, the
acquisition, construction, installation, reconstruction,
rehabilitation or improvement of a Facility financed under
this chapter shall not be subject to any requirements
relating to buildings, works or improvements owned or
operated by the City, and any requirement of public
competitive bidding or other procedural restriction imposed
on the award of contracts for acquisition or construction of
a City building, work or improvement or to the lease,
sublease, sale or other disposition of City property shall
not be applicable to any action taken under this chapter.
Section 3.50.140: ADDITIONAL POWERS. In addition to all
other powers specifically granted by this chapter, the City
is hereby authorized to contract for and do all things
necessary or convenient to carry out the purposes of this
chapter, provided, however, that the City shall not have the
power to operate a Facility financed under this chapter as a
business, except temporarily in the case of a default by a
Participating Party.
BONDS
Section 3.50.150: ISSUANCE OF BONDS. The City is hereby
authorized to issue Bonds in an aggregate principal amount
not to exceed $50 million and to issue such Bonds, from time to
time, in such series and amounts as are determined by the
Council to be necessary or appropriate to provide for the
Costs of Facilities approved by the Council. Bonds shall be
negotiable instruments for all purposes, subject only to the
provisions of such Bonds for registration.
Section 3.50.160: BONDS NOT DEBT OF CITY. All of the Bonds
hereby authorized to be issued shall be limited obligations
of the City payable from all or any specified part of the
revenues and the moneys and assets authorized in this chapter
to be pledged or assigned to secure payment of Bonds. Such
revenues, moneys or assets shall be the sole source of
repayment of such issue of Bonds. Bonds issued as authorized
by this chapter 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 specified revenues,
moneys and assets. The issuance of Bonds shall not directly,
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indirectly, or contingently obligate the City to levy or
pledge any form of taxation or to make any appropriation
their payment.
for
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 Bakersfield is pledged to the payment of the
principal of or premium, if any, or interest on this
bond.
Section 3.50.170: BOND TERMS. Bonds shall be issued as
serial bonds, term bonds, installment bonds or pass-through
certificates or any combination thereof. The Mayor or City
Manager shall determine the terms and timing of the issuance
of particular Bonds in accord with the resolution of the
Council approving the particular Facility to be financed
thereby. Bonds shall bear such date or dates, mature at such
time or times not to exceed thirty-five (35) years, bear
interest at such fixed or variable rate or rates approved by
the Participating Party whose Facility is being financed but
not to exceed the maximum rate permitted by law, be payable
at such time or times, be in such denominations, be in such
form, either coupon or registered, 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, be subject to such terms of redemption and have such
other terms and conditions as such resolution, or any
indenture to be entered into by the City pursuant to such
resolution, shall provide. Bonds shall be sold at either
public or private sale and for such prices as the City shall
determine.
Section 3.50.180: BOND PROVISIONS. Any resolution relating
~o the issuance of any Bonds, or any indenture to be entered
into by the City pursuant to such resolution, may contain
provisions respecting any of the following terms and
conditions, which shall be a part of the contract with the
holders of such Bonds:
(a) the terms, conditions and form of such Bonds
and the interest and principal to be paid thereon,
(b) limitations on the uses and purposes to which
the proceeds of sale of such Bonds may be applied, and the
pledge or assignment of such proceeds to secure the payment
of such Bonds,
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(c) limitations on the issuance of additional
parity Bonds, the terms upon which additional parity Bonds
may be issued and secured, and the refunding of outstanding
Bonds,
(d) the setting aside of reserves, sinking funds
and other funds and the regulation and disposition thereof,
(e) the pledge or assignment of all or any part of
the Revenues and of any other moneys or assets legally
available therefor (including loans, deeds of trust,
mortgages, leases, subleases, sales agreements and other
contracts and security interests) and the use and disposition
of such Revenues, moneys and assets, subject to such
agreements with the holders of Bonds as may then be
outstanding,
(f) limitation on the use of Revenues for
operating, administration or other expenses of the City,
(g) specification of the acts or omissions to act
which shall constitute a default in the duties of the City to
holders of such Bonds, and providing the rights and remedies
of such holders in the event of default, including any
limitations on the right of action by individual bondholders,
(h) the appointment of a corporate trustee to act
on behalf of the City and the holders of its Bonds, the
pledge or assignment of loans, deeds of trust, mortgages,
leases, subleases, sale contracts and any other contracts to
such trustee, and the rights of such trustee,
(i) the procedure, if any, by which the terms of
any contract with bondholders may be amended or abrogated,
the amount of such 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 reasonable and proper for the purposes of this chapter
and the security of the bondholders.
Section 3.50.190: PLEDGE OF REVENUES, MONEY OR PROPERTY;
LIEN. Any pledge of Revenues or other moneys or assets as
authorized by this chapter shall be valid and binding from
the time such pledge is made. Revenues, moneys and assets so
pledged and thereafter received by the City shall immediately
be subject to the lien of such pledge without any physical
delivery thereof or further act, and the lien of any such
pledge shall be valid and binding as against all parties
having claims of any kind in tort, contract, or otherwise
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against the City, irrespective of whether such parties have
notice thereof. Neither the resolution nor any indenture by
which a pledge is created need be filed or recorded except in
the records of the City.
Section 3.50.200: NO PERSONAL LIABILITY. Neither the
members of the Council, the officers or employees of the
City, nor any person executing any Bonds shall be liable
personally on the Bonds or be subject to any personal
liability or accountability by reason of the issuance thereof.
Section 3.50.210: 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
agreements with the bondholders.
Section 3.50.220: ACTIONS BY BONDHOLDERS. Any holder of
Bonds issued under the provisions of this chapter or any of
the coupons appertaining thereto, and any trustee appointed
pursuant to any resolution relating to the issuance of Bonds,
except to the extent the rights thereof may be restricted by
such resolution or any indenture authorized thereby to be
entered into by the City, may, either at law or in equity, by
suit, action, mandamus or other proceedings, protect or
enforce any and all rights specified in law or in such
resolution or indenture, and may enforce and compel the
performance of all duties required by this chapter or by such
resolution or indenture to be performed by the City or by any
officer, employee, or agent thereof, including the fixing,
charging, and collecting of rates, fees, interest, and
charges authorized and required by the provisions of such
resolution or indenture to be fixed, charged, and collected.
Section 3.50.230: REFUNDING BONDS. The City is hereby
authorized to issue Bonds for the purpose of refunding any
Bonds then outstanding.
Section 3.50.240: 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 Council to be necessary or
appropriate for the Costs of Facilities approved by the
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 of sale of the particular Bonds in
anticipation of which they are issued. Such notes shall be
~ssued in the same manner as Bonds. The Mayor or City
Manager shall determine the terms and timing of the issuance
10
of particular bond anticipation notes in accord with the
provisions of Section 3.50.170 and the resolution of the
Council approving the particular Facility to be financed
thereby. Such notes, any resolution relating to the issuance
of such notes and any indenture to be entered into by the
City pursuant to such resolution may cQntain any provisions,
conditions or limitations permitted under Section 3.50.180.
Section 3.50.250: VALIDITY OF BONDS. The validity of the
authorization and issuance of any Bonds is not dependent on
and shall not be affected in any way by any proceedings taken
by the City for the approval of any financing or the entering
into of any agreement, or by the failure to provide financing
or enter into any agreement, for which Bonds are authorized
to be issued under this chapter.
SUPPLEMENTAL PROVISIONS
Section 3.50.260: LIBERAL CONSTRUCTION. This chapter,
being necessary for the welfare of the City and its
inhabitants, shall be liberally construed to effect its
purposes.
Section 3.50.270: OMISSIONS NOT TO AFFECT VALIDITY OF
BONDS. Any omission of any officer or the City in
proceedings under this chapter or any other defect in the
proceedings shall not invalidate such proceedings or the
Bonds issued pursuant to this chapter.
Section 3.50.280: FULL AUTHORITY. This chapter is full
authority for the issuance of Bonds by the City for any of
the purposes specified herein.
Section 3.50.290: ADDITIONAL AUTHORITY. This chapter shall
be deemed to provide a complete, additional, and alternative
method for doing the things authorized thereby, 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~ 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.
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Section 3.50.300: 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 3.50.310: SEVERABILITY. If any provision of this
chapter or the application thereof to any person or
circumstance is held invalid, such invalidity shall not
affect any other provision or application of this chapter
which can be given effect without the invalid provision or
application, and to this end the provisions of this chapter
are declared to be severable. The Council hereby declares
that it would have adopted and passed this chapter and each
section, subsection, sentence, clause, phrase and word
hereof, irrespective of the fact that any one or more of the
other sections, subsections, sentences, clauses, phrases or
words hereof be declared invalid or unconstitutional.
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SECTION 2.
The appropriate officers of the City are hereby authorized
and directed, for and in the name of and on behalf of the City,
to do any and all things and take any and all actions and execute
and deliver any and all certificates, agreements and documents
which they, or any of them, may deem necessary or adw[sable in
order to consummate the lawful issuance and delivery of the Bonds
or bond anticipation notes authorized by this Chapter in accordance
with the provisions of this Chapter and the resolution of the
Council approving the particular Facility to be financed thereby.
SECTION 3.
This ordinance shall be posted
City Charter provisions and shall become
days from and a~ter the date of
in accordance with the
effective thirty (30)
its passage.
.......... o0o .........
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I HEREBY CERTIFY that the foregoing
and adopted by the Council of
meeting thereof held on the
the following vote:
the City of Bakersfield
28thday of April
Ordinance was passed
at a regular
, 1982, by
CIT~ CLERK ~nd Ex'Officio Clerk of
Council of the City of Bakersfield
the
APPR~V~I~D; this 28th day of April ,
MAYOR ~the Cit~ of Bakersfield
1982
APPROVED as to form:
T~Y ATTO~R~Y o~f the C~ty of Bakersfield
mm 14
Aff av of os ing r nau es
STATE OF CALIFORNIA, ~
County of Kern iss'
PHILIP KELMAR, being duly sworn, deposes and says:
That he is the duly appointed, acting and qualified City Clerk of the City of Bakersfield; and
that on ..............~ay 5, 19...8....2..... he posted on the Bulletin Board
at the City Hall, a full, true and correct copy of an ordinance passed by the Council of said City
· April 28, 82
at a meeting thereof duly held on ....................................................................................................19 ............which ordinance
was numbered.......2...'~.?. ............................New Series, and entitled:
An Ordinance of the Council o:£ the City of
Bakersfield adding Chapter 3.50 to Title 3
of the Bakers£ield Municipal Code providing
for the City of Bakersfield Economic Develop-
ment Revenue Bond Law authorizing the issuance
of Revenue Bonds for the purpose of providing
financing to participating parties £or Economic
Development purposes and including definitions,
general provisions, powers, issuance procedures
and certain other supplemental[ provisions.
Subscribed and sworn to before me this
. .5.~c.I~..... day of ............. ~la:Y? ........................... ,19.~.~