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HomeMy WebLinkAboutOrd 1992-2498 ORDINANCE NO. 2498 AN ORDINANCE AMENDING CHAPTER 3.48 OF THE CHULA VISTA MUNICIPAL CODE TO PERMIT THE FINANCING OF REGIONAL UTILITY PROJECTS UPON A FINDING OF CITY BENEFIT WHEREAS, the City of Chula Vista (the "City") is a municipal corporation and charter city duly organized and existing under a charter {the "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 Article XI of the Constitution of the State of California (the "Constitution") and Section 200 of the Charter; WHEREAS, Chapter 3.48 of the Municipal Code of the City (the "Municipal Code"} authorizes the City to issue bonds for the purpose of financing or otherwise assisting the acquisiti on of projects located within the City to promote the health, safety and welfare of the City, to encourage industrial and commercial development within the City and to enhance the financial resources of the City; WHEREAS, the City Council of the City has heard public testimony and reviewed written materials, which together with the personal knowledge of the members of the City Council, evidence the need for the City to provide financial assistance with respect to regional utility transmission and distribution systems in order to promote the aforementioned City interests; WHEREAS, the City Council of the City, acting under and pursuant to the Constitution and the Charter, finds and determines that the public interest and necessity require the adoption of this ordinance to authorize issuance of revenue bonds for the purpose of financing regional utility transmission and distribution systems and that providing such assistance constitutes a municipal affair of the City; NOW THEREFORE, the City Council of the City of Chula Vista does ordain as follows: SECTION 1. That Section 3.48.010 of the Municipal Code be and it is hereby amended in its entirety to read as follows: 3.48.010 Findings and determinations. The city council finds and determines as follows: A. The full employment of residents of the city, and the prevention of unemployment and underemployment of such residents, serves a vital and compelling public interest of the city 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 Ordinance No. 2498 Page 2 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. Basic utilities such as gas, water and electricity are necessities of life, essential to public health, safety and welfare and to industrial and commercial development within the city. City assistance in financing improvements to gas, water and electricity transmission and distribution systems throughout the region will reduce the costs of providing such utility service within the city and thereby reduce the rates to be paid by industrial, commercial and residential utility customers within the city. The city's participation in such financing also assures that the city's future gas, water and electricity requirements will be served as regional growth places heavier demands on such services. D. Encouraging industrial and commercial development and the provision of basic utilities pursuant to this chapter (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, a valid exercise of the police powers of the city, and a public purpose in which the city has a peculiar and unique interest. SECTION 2. That Section 3.48.020 of the Municipal Code be and it is hereby amended in its entirety by amending such section to read as follows: 3.48.020 Definitions. Unless the context otherwise requires, the loll owing definitions shall govern the construction of this chapter: A. "Acquisition" and its variants means acquisition, construction, improvement, furnishing, equipping, remodeling, repair, reconstruction or rehabilitation. Ordinance No. 2498 Page 3 B. "Administrative expenses" means all reasonable and necessary expenses incurred by the city in the administration of the provisions of this chapter 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. C. "Bonds" means any bonds, notes, interim certificates, debentures or other obligations issued by the city pursuant to this chapter, and which are payable exclusively from revenues and other funds permitted by this chapter, 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 the Code then in effect. D. "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. E. "City charter" means the charter of the city, as amended from time to time. F. "City council" means the city council of the city. G. "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 supervising construction, as well as for the performance of all other duties required by or consequent upon the proper Ordinance No. 2498 Page 4 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 twelve months thereafter; 8. All administrative expenses; g. 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. H. "Exempt organization" means an entity exempt from federal income taxation pursuant to Section 501(c) of the Internal Revenue Code of 1954, as amended. I. "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: 1. Paying or otherwise providing for or assisting the payment of any or all of the costs of a project pursuant to this chapter; or 2. Providing funds to be used as working capital or otherwise for general expenditures of exempt organizations pursuant to this chapter. J. "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 chapter. Ordinance No. 2498 Page 5 K. "Project" means real property improved with an industrial or commercial structure, and all property in connection therewith or incidental thereto, including all machinery, equipment and furnishings, the acquisition of which is financed or otherwise assisted pursuant to this chapter; provided, however, that no project to be financed may be located outside the city unless the city council shall find and determine that such project would directly benefit the citizens of the city by substaqtially promoting one or more of the public interests recited in Section 348.010. Project also includes residential real property for rental units as described in and within the meaning of Section 103{b}{4}{a) of the Internal Revenue Code of 1954, as amended, and regulations and rulings promulgated thereunder, including all property in connection therewith and incidental thereto. L. "Ordinance" means 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. M. "Revenue" means, with respect to a project, all amounts received as repayment of principal, interest and all other charges received for, and all other income and revenue {including the proceeds of insurance} derived by, the city in connection with such project, and any receipts derived from the investment of such income or revenue, 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. N. "State" means the state of California. SECTION 3. That the City Clerk is hereby authorized and directed to cause a digest or a copy of this ordinance to be published at least once in the Chula Vista Star News within fifteen days after the adoption of this ordinance pursuant to Section 312 of the Charter. Ordinance No. 2498 Page 6 SECTION 4. This ordinance shall take effect and be in force on the thirtieth day from and after its passage. Presented by Approved as to fo by Lyman Christopher Bruce )4. Boogaard Director of Finance City Attorney Ordinance No. 2498 Page 7 PASSED, APPROVED and ADOPTED by the City Council of the City of Chula Vista, California, this 7th day of April, 1992, by the following vote: AYES: Councilmembers: Grasser Hotton, Moore, Rindone, Nader NOES: Councilmembers: None ABSENT: Councilmembers: Malcolm ABSTAIN: Councilmembers: None Tim Nader, Mayor ATTEST: ' ~'Y ~/~'~ Clerk Beve~r~A.'Authelet, City STATE OF CALIFORNIA ) COUNTY OF SAN DIEGO ) ss. CITY OF CHULA VISTA ) I, Beverly A. Authelet, City Clerk of the City of Chula Vista, California, do hereby certify that the foregoing Ordinance No. 2498 had its first reading on March 24, 1992, and its second reading and adoption at a regular meeting of said City Council held on the 7th day of April, 1992. Executed this 7th day of April, 1992. Authelet, City Clerk