HomeMy WebLinkAboutAgenda Statement 1983/08/16 Item 23 COUNCIL AGENDA STATEMENT
Item 23
Meeting Date 8/16/83
ITEM TITLE: Ordinance 0' '' Setting Tax Rate for the Fiscal Year
1983-84 First Reading and Adoption
SUBMITTED BY: Director of Finance (4/5ths Vote: Yes No x )
REVIEWED BY: City Manager'
Since the passage of Proposition 13, the City Council is required annually to
set the necessary tax rate for voter approved debt service.
RECOMMENDATION: Adopt ordinance.
BOARDS/COMMISSIONS RECOMMENDATION: Not applicable.
DISCUSSION:
Proposition 13 does not affect voter approved debt service and consequently
the City Council is required to set the necessary tax rate on or before
September 1st each year. The 1982-83 tax rate was $.00634 per hundred dollars
of full value. For 1983-84, the necessary rate is .00583 per hundred dollars
of full value.
FISCAL IMPACT: The 1983-84 tax rate will generate $108,941 in property
taxes. This is the amount necessary for debt service on the Police Facility
Bonds.
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GENERAL
COMMUNITY AUG 1983
HOSPITAL
Community Development Dept.
A NONPROFIT HOSPITAL/ 435 "H" STREET/ P.O. BOX 1537/ CHULA VISTA, CALIFORNIA 92012-1537 / (619) 691-7000
August 15, 1983
Mr. Paul Desrochers
Director of Community Development
CITY OF CHULA VISTA
276 Fourth Avenue
Chula Vista, CA 92.010
Dear Mr. Desrochers :
After consultation with Miller & Schroeder Securities , Inc. ,
and with the assistance of Jones , Hall , Hill & White (the
City of Chula Vista's bond counsel , also serving as bond
counsel for Bay General Community Hospital ) , we are
requesting a short amendment to the existing Redevelopment
Authority of the City of Chula Vista.
This amendment will add to the definition of "Projects" to
allow qualified 501 (c)(3) organizations within the City
of Chula Vista to issue, with City approval , tax exempt
revenue bonds for the purpose of providing short-term working
capital funds under the strict requirements of the Internal
Revenue Service.
While these changes could effect all 501 (c) (3) organizations,
only those corporations with significant guaranteed revenues ,
such as hospitals and other subsidiary taxing districts ,
would actually qualify to issue these bonds .
Any proposal to issue bonds would have to come to the City as
a separate item, following the passage of this ordinance
amendment.
The State Constitution requires any bonds issued under this
authority cannot create any liability to the City of Chula
Vista and must rely solely on the revenue source for repayment.
In summary, any qualified 501 (c)(3) organization such as Bay
General Community Hospital would benefit by a significant
reduction in the cost of borrowing, thus enabling it to
continue providing cost-effective medical and other community
health activities and programs for the benefit of the citizens
of Chula Vista .
Very- r. y +urs,
5 Apo/
°: RT LARSEN
President E X H t B f T J
cc : John Goss
WHO WE ARE . . . OUR PURPOSES . . .
The San Diego Employers Health Cost Coalition (the The Coalition's specific purposes include the following:
" oalition) is an organization of private and public
;mployers concerned about the rapidly increasing • To encourage and promote employers' efforts to
cost of health care and committed to helping con- improve cost effectiveness in health care services
tain such costs. Employers in San Diego are major
purchasers of health care for their employees and and programs without negatively affecting the
quality or the accessibility of those services.
have a legitimate interest in assuring that quality
health care is available at an affordable cost. The • To provide information on and analyses of health
Coalition provides the San Diego business community- policy and health economics to employers, health
as well as public employers-with a mechanism for care providers and the general public.
exerting a moderating influence upon rising health • To provide information on and analyses of the
care costs. Throughout the United States, business impact of health policy on the individual, the
realizes that it is an important participant in the general public, employers and government to
health care system and must work with physicians, local, state and federal governmental agencies.
hospitals, insurers, labor unions and others to assure •affordable health care. There are now over 50 To foster the teaching of health policy and health health care coalitions in the nation addressing the economics through seminars, conferences and
health cost problem, of which the San Diego Coali- research on health issues.
tion is among the oldest and most active. Although
formed to contain health care costs for its members'
workforces, the Coalition also addresses issues which WHAT WE DO . . .
impact upon health care costs for the general
public. The Coalition is a community force which can To accomplish our purposes, the Coalition is active
benefit all San Diego residents. in the following areas:
WHY WE EXIST . . . • The dissemination and exchange of information
among employers concerning health care issues.
The Coalition exists because there is a crisis in health • The education of employees and the general
care that must be addressed, The crisis is that of public regarding health care issues, including cost
-Qscalating costs which threaten to make quality issues, in order to make them informed consumers
ealth care unaffordable. Health care cost increases of health care services.
nave been outpacing both the inflation rate and the
increase in the Consumer Price Index. The alarming • Employer participation in health planning.
statistics for 1981 illustrate the problem: • Research and implementation of alternative
1. Nearly $287 billion was spent on health care in the health care delivery systems and financing
United States, about 10% of the Gross National methods as well as other initiatives to foster com-
Product. The health care industry is now among petition within the health care industry,
the three largest industries in America. Unless the • Monitoring of Health Maintenance Organizations
cost issue is resolved, health expenditures will con- (HMO's).
sume a disproportionate share of America's • Monitoring of health care utilization.
resources.
2. Total hospital operating costs rose 18.9% in San • Institutional cost containment initiatives, including
Diego County, 17.9% in California and 17.5% on a improved health benefits management and plan
nationwide basis. design.
3. The average hospital patient bill in San Diego The Coalition seeks the cooperation of physicians,
increased 21.5%. hospitals, third-party payors, labor and others in its
4. The average San Diego hospital stay cost over activities to achieve affordable health care.
$3,500 or over $500 per day. Costs per stay
have been increasing despite declines in length A NON-PROFIT
of stay.
5. Hospital costs in California are estimated at $12 CORPORATION . . .
billion, an amount which is one-half the total 1981
California state budget! The Coalition is organized as a California Non-Profit
Escalating health care costs affect all segments of Public Benefit Corporation and consists of a Board of
the general public and present important questions Directors comprised of one representative from
f public policy to be addressed. From a business each member employer. The Board meets monthly.
arspective, health care costs are among the Directors and officers are elected at the corpora-
fastest rising operating expenses for many bon's annual meeting.
employers, diverting important resources from
business growth which would result in the creation of EXHIBIT 2
new jobs,
OUR MEMBERSHIP ROSTER . . . INSURING OVER
200,000 SAN DIEGANS . . .. . .
Aerojet-General Corporation Hewlett-Packard Company San Diego State University
Atlas Hotels, Inc. E.F.Hutton Life Insurance Company San Diego Trust & Savings Bank
Buck Knives Hydrocurve Continuous Curve San Dieguito Union High School
California First Bank Contact Lens, Inc. District
Campbell Industries Kyocera International, Inc. Science Applications, Inc.
Central Federal Savings & Linkabit Corporation Scientific Atlanta, Inc.
Loan Association Loral-Conic Sea World, Inc.
Chula Vista City School District Maxwell Laboratories, Inc. The Signal Companies, Inc.
City of Chula Vista National Steel & Shipbuilding Solar Turbines, Inc.
City of El Cajon Company Sweetwater Union High School
City of San Diego Pacific Southwest Airlines District
Copley Press, Inc. Ralston Purina Company- Teledyne Ryan Aeronautical
County of San Diego Van Camp Seafood Division Topaz, Inc.
Cubic Corporation Rohr Industries, Inc. TRW LSI Products Division
GA Technologies, Inc. San Diego City Schools Union Tribune Publishing Company
General Dynamics/Convair San Diego Community College University of California, San Diego
Division District University of San Diego
General Dynamics/Electronics San Diego County Department of Walker Scott Company
Division Education Zoological Society of San Diego
Great American Federal Savings San Diego Gas & Electric . . . AND GROWING . .
& Loan Association Company
THE HEALTH COST PROBLEM IN SAN DIEGO . . .
• San Diegans do not go to the hospital nearly as • A total of almost $1.1 billion will be scent on
often as people in other sections of the U.S. nor hospital care in San Diego in 1982. '1 at amounts
do they remain as long but hospitalization costs to over $1500 per household.
them more. • In the first quarter of 1982, the average San Diego
• A typical San Diego hospital day is 22% more patient stay cost the hospital $3,194 and the
expensive and a hospital stay 12% more expen- patient/third party payor was billed an average
sive than the national average. of $4,137 per stay.
• In 1981, hospital operating costs in San Diego • San Diego has fewer hospital beds per capita
increased 18.9%, a larger increase than the 17.5% than the U.S. but the occupancy rate is consider-
national average. ably lower, a factor contributing to higher hospital
• The average patient bill in San Diego (gross costs per patient. The U.S. occupancy rate was
revenue per discharge) increased even faster 75.9% in 1980 compared with 65.4% in San Diego.
than operating costs, at a rate of 21.5%. Source: The California Health Facilities Commission
• Health cost increases have outpaced both the
increase in the Consumer Price Index and the
rate of inflation.
The San Diego Employers Health Cost Coalition
OFFICERS 1982-1983 PAST CHAIRPERSONS
Chairman of the Board: Secretary: Stephen Rosinski
Robert M. Colasanto Vicki Talley Rohr Industries, Inc.
Pacific Southwest Airlines San Diego Gas & Electric
Company Ronald Bippert
Vice Chairman: San Diego City Schools
Paul R. Allgire Chief Financial Officer:
Rohr Industries, Inc. Richard W. Rauch Curtis J. Kelly
The Signal Companies, Inc. San Diego Community
College District
091SF JHHW:CFA:dfd 08/08/83
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ORDINANCE NO.
ORDINANCE OF THE CITY OF CHULA VISTA AMENDING
ORDINANCE NO. 1970 RELATING TO THE FINANCING
OF INDUSTRIAL AND COMMERCIAL DEVELOPMENT
WHEREAS, the City Council of the City of Chula Vista (the "City") has
heretofore adopted its Ordinance No. 1970, entitled "Ordinance of the City of Chula
Vista Relating to the Financing of Industrial and Commercial Development Within
Said City in the Interests of the Public Health, Safety and Welfare" , which
Ordinance authorizes among other things the issuance of revenue bonds of the City
for the purpose of financing capital improvements of private persons within the
City; and
WHEREAS, it is desirable at this time to amend said Ordinance to provide for
the issuance of revenue bonds thereunder for the purpose of financing working
capital requirements of organizations which are exempt from income taxation under
Section 501(c) of the Internal Revenue Code of 1954, as amended; and
WHEREAS, such amendment will promote the public interests of the City
specified in said Ordinance and, in particular, will promote the health, safety and
welfare of the inhabitants of the City by encouraging charitable, educational and
other tax-exempt organizations to locate and conduct b siness in the City;
THE COUNCIL OF THE CITY OF CHULA VIS IN AS FOLLOWS:
Section 1 . Findings and Determinati s. Council hereby finds and
determines that the recitals herein are true and correct, and that the amendment of
Ordinance No. 1970 as provided herein will serve the public interests of the City.
Section 2. Amendment of Ordinance. Ordinance No. 1970, adopted by the City
Council on February 9, 1982, shall be and is hereby amended in its entirety to read
as set forth in Exhibit A attached hereto and by this reference incorporated
herein.
Section 3. Effective Date. This ordinance shall take effect and be in full
force on the thirty-fist day from and after its adoption.
\\A
PASSED AND ADOPTED this day of August, 1983, by the following vote:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
Mayor of the City of Chula Vista
ATTEST
City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO ) ss.
CITY OF CHULA VISTA )
I, , City Clerk of the City of Chula Vista,
California, DO HEREBY CERTIFY that the above is a full , true and correct copy of
Ordinance No. , and that the same has not ben amended or repealed.
Dated:
City Clerk
2
EXHIBIT A
ORDINANCE NO. 1970
ORDINANCE OF THE CITY OF CHULA VISTA RELATING TO
THE FINANCING OF INDUSTRIAL AND COMMERCIAL
DEVELOPMENT WITHIN SAID CITY IN THE
INTERESTS OF THE PUBLIC HEALTH, SAFETY
AND WELFARE
THE COUNCIL OF THE CITY OF CHULA VISTA DOES ORDAIN AS FOLLOWS:
Section 1. Findings and Determinations. The City Council of the City of
Chula Vista hereby finds and determines as follows:
A. The full employment of residents of the City of Chula Vista, and
the prevention of unemployment and underemployment of such residents, serves a
vital and compelling public interest of the City of Chula Vista and promotes the
public health, safety and welfare of the City by reducing the incidence of crime,
improving the mental and physical health and well-being of the City' s residents,
- alleviating the financial drain upon limited public and private resources for
welfare programs and unemployment assistance, and enhancing the financial
resources of the City.
B. The encouragement of industrial and commercial development within
the City serves a vital and compelling public interest of the City and promotes the
public health, safety and welfare of the City by increasing the employment of
residents of the City, increasing the tax and revenue base and thereby enhancing
the financial resources of the City, and preventing physical deterioration and
abandonment of industrial and commercial areas within the City. In addition, the
City' s participation in the financing of such development serves the public
interest by ensuring that such development will reflect the needs and objectives of
the community more so than if such development were undertaken without City
participation.
C. Encouraging industrial and commercial development pursuant to this
Ordinance (1) will promote the health, safety and welfare of the City, including
those public interests enumerated above, and will improve the social , moral ,
economic and physical condition of the community thereby, and (2) constitutes a
municipal affair of the City of Chula Vista, a valid exercise of the police powers
of the City of Chula Vista, and a public purpose in which the City of Chula Vista
has a peculiar and unique interest.
EXHIBIT A
1
AA
Section 2. Definitions. Unless the context otherwise requires, the
following definitions shall govern the construction of this Ordinance:
"Acquisition" and its variants means acquisition, construction,
improvement, furnishing, equipping, remodeling, repair, reconstruction or
rehabilitation.
"Administrative Expenses" means all reasonable and necessary expenses_
incurred by the City in the administration of the provisions of this Ordinance with
respect to a particular Project and the financing thereof, including without
limitation compensation to City agents, employees and staff, fees and expenses of
paying agents, trustees, bond counsel and financing consultants, and costs of
printing and advertising.
"Bonds" means any bonds, notes, interim certificates, debentures or other
obligations issued by the City pursuant to this Ordinance, which are payable
exclusively from Revenues and other funds permitted by this Ordinance, and which
are "industrial development bonds" within the meaning of Section 103(b) of the
Internal Revenue Code of 1954, as amended, or any similar provision of said Code
then in effect.
"City" means the City of Chula Vista, California, a chartered city in the
State existing under and exercising powers pursuant to the City Charter and the
constitution of the State.
"City Charter" means the charter of the City, as amended from time to time.
"City Council" means the City Council of the City.
"Costs" means, with reference to a Project, any or all of the following
costs incurred for the acquisition thereof:
1. obligations of the Participating Party incurred for labor and
materials in connection with the acquisition of the Project;
2. the cost of acquisition 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 of the Project;
3. the cost of demolishing, removing or relocating any building or
structure, and the cost of making relocation assistance payments
required by law;
4. the cost of contract bonds and of insurance of all kinds that may be
required or necessary during the course of the acquisition of the
Project;
5. all costs of engineering, legal and consultant services, including
the costs of the Participating Party for surveys, estimates, plans and-
specifications and preliminary investigation therefor, and for
EXHIBIT A
2
supervising construction, as well as for the performance of all other
duties required by or consequent upon the proper acquisition of the
Project;
6. all costs incurred in connection with proceedings by the
Participating Party necessary to comply with the California
Environmental Quality Act of 1970, as amended;
7. 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 of the Project and 12 months
thereafter;
8. all Administrative Expenses;
9. all costs which the Participating Party shall be required to pay,
under the terms of any contract or contracts, for the acquisition of
the Project;
10. the refinancing of any existing indebtedness secured by an
interest in any real property comprising any portion of the Project, so
long as and to the extent that such refinancing does not cause interest
on the Bonds to become taxable under Section 103 of the Internal
Revenue Code of 1954, as amended; and
11. any sums required to reimburse the Participating Party for
advances made for any of the above items or for any other costs
incurred and for work done which are properly chargeable to the
Project.
"Exempt Organization" means an entity exempt from federal income taxation
pursuant to Section 501(c) of the Internal Revenue Code of 1954 as amended.
"Finance" and its variants means the lending of moneys or any other thing of
value, or the purchase of loans or the entering into of leases or installment sale
agreements, for the purpose of (i) paying or otherwise providing for or assisting
the payment of any or all of the Costs of a Project pursuant to this Ordinance, or
(ii ) providing funds to be used as working capital or otherwise for generaT__
u penditures of Exempt Organizations pursuant to this Ordinance.
"Participating Party" means any person, corporation, partnership, firm or
other entity or group of entities requiring financing for the acquisition of a
Project pursuant to this Ordinance.
"Project" means real property located within the City and improved with an
industrial or commercial structure, and all property in connection therewith or
incidental thereto, including machinery, equipment and furnishings, the
acquisition of which is financed or otherwise assisted pursuant to this Ordinance.
"Ordinance" means this Ordinance No. 1970, passed and adopted by the City-
Council of the City on February 9. 1982, pursuant to the City Charter, as amended
from time to time.
EXHIBIT A
3
"Revenues" means, with respect to a Project, all amounts received as
repayment of principal , interest and all other charges received for, and all othe `
income and revenue (including the proceeds of insurance) derived by, the City i.
connection with such Project, and any 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.
"State" means the State of California.
Section 3. Powers. The City is authorized and empowered:
A. To determine the location and character of any Project to be financed
under the provisions of this Ordinance, and to finance such Projects.
B. To issue Bonds (i) for the purpose of financing or otherwise assisting
the acquisition of Projects authorized by this Ordinance (ii)1or for the purpose of .
providing funds to be used as working capital or otherwise to finance general
expenditures of Exempt Organizations, or (iii ) for the purpose of Fusing or
refunding Bonds.
C. To fix fees, charges and interest rates for financing any Project, and
to revise such fees, charges and interest rates from time to time, and to collect
interest and principal on any loan made to a Participating Party together with such
fees and charges incurred in such financing, and to contract with any person,
partnership, association, corporation or public agency with respect thereto.
D. To hold deeds of trust as security for financing any Project and t
pledge the same as security for repayment of Bonds issued therefor.
E. To establish the terms and conditions for the financing of any Project
undertaken pursuant to this Ordinance.
F. To require that the full amount owed on any loan for the financing of a
Project pursuant to this Ordinance shall be due and payable upon sale or other
transfer of ownership of such Project.
G. To acquire, by deed, purchase, lease, contract, gift, devise, or
otherwise, any real or personal property, structures, rights, rights-of-way,
franchises, easements, mortgages and other interests in property located within the
State necessary or convenient for the financing or acquisition of a Project, upon
such terms and conditions as it deems advisable, and to lease,
sell or dispose of the same in such manner as may be necessary or desirable to carry
out the objects and purposes of this Ordinance. Notwithstanding the foregoing,
nothing in this Ordinance is intended or shall be construed in any way to authorize
any exercise of the power of eminent domain with respect to any Project.
H. To employ or contract for such engineering, architectural , accounting,
collection, economic feasibility, or other services in connection with the-
servicing of loans made to Participating Parties, as may be necessary in the
EXHIBIT A
4
judgment of the City Council for the successful financing of a Project. The City
smay pay the reasonable costs of consulting engineers, architects, accountants,
construction experts, and economic feasibility experts, if, in the judgment of the
City Council , such services are necessary to the successful financing of a Project
and if the City is not able to provide such services. The City may employ, contract
for, and fix the compensation of financing consultants, bond counsel , and other
advisers as may be necessary in its judgment to provide for the issuance and sale of
Bonds.
I . In addition to all other powers specifically granted in this Ordinance,
to do all things necessary or convenient to carry out the purposes of this
Ordinance.
Section 4. Non-operation. The City shall not have the power to operate any
Project as a business. The City shall take no more action with respect to any
Project than is necessary to promote the public interests of the City recited in
Section 1 of this Ordinance.
Section 5. Applications for Financing. Participating Parties may apply
for financing pursuant to this Ordinance by contacting the Community Development
Director or other officer or employee of the City designated by the Community
Development Director. Each applicant shall supply to the satisfaction of the
Community Development Director or such officer or employee all information required
to evaluate the financial reliability and stability of the Participating Party and
the feasibility of the proposed Project, including an estimate of the maximum
amount of financing to be required, a description or itemization of the Costs of
the proposed Project, and a written agreement to pay all Administrative Expenses
for the proposed Project. The provisions of this Section 5 shall not apply to any
financing approved by resolution of the City Council adopted prior to the date of
adoption of this Ordinance.
Section 6. Acceptance of Applications. Upon receipt of an application
containing all required information, agreements and undertakings, the City Council
shall at such time as it deems convenient review such application and any staff
recommendations with respect thereto. If the City Council chooses to approve any
application for financing under this Ordinance, it shall adopt a resolution
authorizing the issuance of Bonds and/or accepting and approving such application
and the participation of the City in the financing of such Project, subject to the
provisions of this Ordinance and the conclusion of all proceedings undertaken to
consummate such financing to the satisfaction of the City. The provisions of this
Section 6 shall not apply to any financing approved by resolution of the City
Council adopted prior to the date of adoption of this Ordinance.
Section 7. Authorization of Bonds. The City may issue its Bonds for the
purpose of financing or otherwise assisting the acquisition of Projects authorized
by this Ordinance. Every issue of Bonds shall be a special obligation of the City,
payable solely from all or any part of the Revenues of Projects.
Section 8. Issuance of Bonds. The Bonds may be issued as serial Bonds or
as term Bonds, or the City Council , in its discretion, may issue Bonds of both'
types. The Bonds shall be authorized by resolution of the City Council and shall
EXHIBIT A
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 suc
denominations, be in such form, either coupon or registered, carry sucr,
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
of redemption as the resolution or resolutions of 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. Pending preparation of the definitive Bonds, the_
City may issue interim receipts, certificates, or temporary Bonds, which shall be
exchanged for such definitive Bonds.
Section 9. Terms of Bonds. Any resolution or resolutions authorizing any
Bonds or any issue of Bonds may contain provisions respecting any of the following
terms and conditions, which shall be a part of the contract with the holders of the
Bonds:
A. The pledge of all or any part of the Revenues, subject to such agreements
with Bondholders as may then exist.
B. 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 the Revenues.
C. The setting aside of reserves or sinking funds and the regulation and
disposition thereof.
D. 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 t ,
secure the payment of the Bonds or any issue of Bonds.
E. Limitations on the issuance of additional Bonds, the terms upon which
additional Bonds may be issued and secured, and the refunding of outstanding Bonds.
F. The procedure, if any, by which the terms of any contract with
Bondholders may be amended or abrogated, the amount of Bonds the holders of which
must consent thereto, and the manner in which such consent may be given.
G. Specification of the acts or omissions to act which shall constitute a
default in the duties of the City to holders of its obligations, and providing the
rights and remedies of such holders in the event of default.
H. The mortgaging of land, improvements, or other assets owned by a
Participating Party for the purpose of securing the Bondholders.
I . Such other terms and conditions pertaining to the issuance of the Bonds
as are deemed advisable by the City Council .
Section 10. Trust Agreement. In the discretion of the City Council , any
Bonds issued under the provisions of this Ordinance 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
EXHIBIT A
6
..a ammowemalloa,
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
Bondholders as may be reasonable and proper and not in violation of law, including
such provisions as may be included in any resolution or resolutions of the City
Council authorizing the issuance of Bonds pursuant to Section 3.03. Any bank or
trust company doing business under the laws of the State which may act as
depositary of the proceeds of Bonds or of 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
Bondholders and of the trustee or trustees, and may restrict the individual right
of action by Bondholders. 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 Bondholders.
Section 11. 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.
Section 12. 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 13. Repayment of Bonds. Revenues 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
Chula Vista is 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 14. Authority to Assist Projects. The City may provide financing
to any Participating Party for, or otherwise assist the acquisition of, duly
approved Projects pursuant to this Ordinance. At the discretion of the City
Council the financial assistance provided hereunder may take any form deemed
advisable for the successful financing of the Project, including without limitation
in the form of a loan, lease or installment sale.
�o
�� EXHIBIT A
L'�J
Section 15. Financing Agreements. The City may enter into agreements with
any Participating Party with respect to the financing of a Project, whir
agreements may provide that the architectural and engineering design of the Projec.
shall be subject to such standards as may be established by the City and that the
acquisition of the Project shall be subject to such supervision as the City deems
necessary. The terms and conditions of such agreements may be as mutually agreed
upon, but shall not be inconsistent with the provisions of this Ordinance. Any
such agreement may provide the means or methods by which any mortgage taken by the-
City shall be discharged, and it may contain a covenant by the Participating Party
to complete the Project whether or not Bond proceeds are sufficient therefore, and
such other terms and conditions as the City may require. The City is authorized to
fix, revise, charge, and collect interest and principal and all other rates, fees,
rents, installment purchase payments and charges with respect to the financing of a
Project. Such rates, fees, rents, installment purchase payments, charges, and
interest shall be fixed and adjusted so that the aggregate thereof will provide
funds sufficient with other revenues and moneys which it is anticipated will be
available therefor, if any, to do all of the following:
A. Pay the principal of and interest on outstanding Bonds issued to finance
such Project, as the same shall become due and payable.
B. Create and maintain reserves required or provided for in any resolution
authorizing such Bonds. A sufficient amount of the Revenues derived from the
Project may be set aside at such regular intervals as may be provided by the
resolution or trust agreement in a sinking or other similar fund, which shall be
pledged to, and charged with, the payment of the principal of and interest on such
Bonds as the same shall become due, and the redemption price or the purchase price
of Bonds retired by call or purchase as therein provided. Such pledge shall f
valid and binding from the time the pledge is made. The rates, fees, interest, are
other charges, revenues, or moneys 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 against the City, irrespective of whether such parties have notice
thereof. Neither the resolution, the trust agreement nor any agreement by which a
pledge is created need be filed or recorded except in the records of the City. The
use and disposition of moneys to the credit of such sinking or other similar fund
shall be subject to the provisions of the resolution or trust agreement authorizing
the issuance of such Bonds.
C. Pay Administrative Expenses to the extent not paid from Bond proceeds.
Section 16. Trust Funds. All moneys received pursuant to the provisions of
this Ordinance, whether proceeds from the sale of Bonds or Revenues, shall be
deemed to be trust funds to be held and applied solely for the purposes of this
Ordinance. 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 for the purposes
specified in this Ordinance, subject to the terms of the resolution or trust
agreement authorizing the Bonds.
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Section 17. Liberal Construction. This Ordinance, being necessary for the
health, welfare and safety of the City and its residents, shall be liberally
construed to effect its purposes. Furthermore, the City Council hereby declares
that this Ordinance 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 Ordinance shall be
liberally construed to uphold its validity under the laws of the State.
Section 18. Supplemental and Additional Powers. This Ordinance 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 Ordinance need not comply with the requirements of any other law applicable to
the issuance of bonds.
Section 19. Actions to Determine Validity of Bonds and 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 20. Amendment of Ordinance. This Ordinance shall not be amended so
as to have a material , adverse affect upon the rights of the holders of any
outstanding Bonds theretofore issued hereunder, or the rights of Participating
Parties with respect to whom Projects have theretofore been financed hereunder,
without the written consent of such Bondholders and Participating Parties;
provided, however, that this Ordinance 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 provision herein contained, as the City may deem
necessary or desirable; or (b) if such amendment does not materially impair or
adversely affect the interests of any such Bondholder or Participating Party in the
opinion of the City Council ; or (c) if such amendments apply solely to Bonds not
theretofore issued hereunder or Participating Parties with respect to whom Projects
have not theretofore been financed hereunder.
Section 21. Partial Invalidity. If any Section, paragraph, sentence,
clause or phrase of this Ordinance shall for any reason be held illegal or
unenforceable, such holding shall not affect the validity of the remaining portions
of this Ordinance. The City Council hereby declares that it would have adopted
this Ordinance and each and every other Section, paragraph, sentence, clause or
phrase hereof and authorized the proceedings authorized to be taken pursuant
thereto irrespective of the fact that any one or more Sections, paragraphs,
sentences, clauses, or phrases of this Ordinance may be held illegal , invalid or
unenforceable.
Section 22. Publication and Effective Date of Ordinance. This Ordinance
shall be published in the manner provided in Section 312 of the City Charter and
shall take effect from and after the 31st day following the date of its passage and
adoption.
EXHIBIT A
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