SR-203-000-01 (3)
.
STAFF REPORT
ee-c
Santa Monica, caliJ1~i-1 0 1989
J J S - 0-:-;,:..-_ - 0 \
2t?3 -POo-O/
CA:RMM:linda33jhpw
city Council Meeting 5-30-89
TO:
Mayor and City council
FROM:
city Staff
SUBJECT:
Ordinance Amending Santa Monica Municipal Code
section 2651 Pertaining to Powers and Procedures
for Issuance of Revenue Bonds
This Staff Report transmits the accompanying ordinance for
introduction and first reading amending Santa Monica Municipal
Code section 2651 concerning powers and procedures for the
issuance of Revenue Bonds by the city.
BACKGROUND
On December 20, 1965, Chapter 6.5, entitled "Revenue
Bonds J" was added to the Santa Monica Municipal Code by city
Council adoption of Ordinance Number 705 (CCS). Such enactment
allows the city Council, by resolution, when the public interest
and necessity requires, to issue revenue bonds for the purposes
of "obtaining, conserving, treating, and supplying of water for
domestic use, irrigation, sanitation, industrial use, fire
protection, recreation, or any other public or private uses, or
for providing of public airports and facilities appurtenant
thereto."
Existing section 2651 of the Santa Monica Municipal Code
provides that the procedure for issuance of revenue bonds shall
be that which is set forth in the Revenue Bond
- 1 -
~e:c
MAY.3 0 19B9
. .
e
.
"Act") (commencing with Government Code section 54300), with the
specific exception that those provisions of the Act which require
an election to be held in order to authorize issuance of the
revenue bonds shall not apply.
Pursuant to City Council direction, revisions have been
made to the ordinance so as to limit the exemption from
competitive bidding requirements to those sales or issuances of
revenue bonds involving either a joint powers authority or a
financing undertaken with other federal, state or local entities
or agencies. SuCh revision is reflected in the accompanying
ordinance.
The proposed ordinance would amend Section 2651 by further
revising procedures for issuance of revenue bonds by excepting
those particular revenue bonds described in subsection (3) from
the requirements of Government Code Section 54388, pertaining to
invitation of bids for sale of revenue bonds. Those revenue
bonds sold or issued by a joint powers authority or sold or
issued in connection with a financing to be undertaken with other
federal, state or local agencies would be exempted.
Since the demand for revenue bonds is always dependent upon
the market conditions at the time of a proposed sale, it is in
the City's best interests to possess flexibility in the selection
of the best purchaser for a particular sale of these types of
revenue bonds.
The amendment of Santa Monica Municipal Code section 2651,
as set forth in the attached ordinance, would provide the city
with the ability to choose between a private placement sale or
invitation for bids, whichever the City, in its discretion,
- 2 -
.
.
determines to be most advantageous, for revenue bonds which fall
within the category described above.
Such choice already exists as to issuance and sale of other
types of municipal bonds. This amendment to Section 2651 would
provide the same option for the sale of revenue bonds.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Robert M. Myers, City Attorney
Linda A. Moxon, Deputy city Attorney
stanley Scholl, Director of General Services
- 3 -
.
.
CA:RMM:linda29b/hpw
city Council Meeting 5-30-89
Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING SANTA MONICA
MUNICIPAL CODE SECTION 2651 TO SPECIFY THE POWERS
AND PROCEDURES FOR THE ISSUANCE OF
REVENUE BONDS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1.
Santa Monica Municipal Code Section 2651 is
amended to read as follows:
SECTION
2651.
Procedures
for
Issuance of Revenue Bonds. The procedure
for the issuance of revenue bonds shall
be the procedure set forth in the Revenue
Bond Law of 1941
(commencing with
Government Code Section 54300) and by
this reference the provisions of said Law
are
incorporated
herein,
with
the
following exceptions:
(1) No election to authorize the
issuance of said bonds shall be held and
the restrictions of Government Code
Section 54388 shall not apply, and to
- 1 -
.
.
those ends, Sections 54380 through 54388
of said Government Code are not
incorporated herein and shall not be
applicable to the issuance of said
revenue bonds.
(2) The resolution authorizing the
issuance of said revenue bonds may
provide that such bonds shall be payable
from the revenues of the Enterprise (as
specifically defined in such resolution),
which may include combined revenues from
electric and water services, from
interest earnings on unspent bond
proceeds and from such other funds as may
be legally available for such purpose.
(3) Before selling the revenue
bonds, or any part thereof, the city
Council shall give notice inviting sealed
bids pursuant to Government Code Section
54388 unless such revenue bonds are to be
sold to and/or issued by a joint powers
authority created in accordance with
California law, or sold and/or issued in
connection with a financing to be
undertaken with other federal, state, or
local entities or aqencies, in which case
the City Council may negotiate the
private sale of the revenue bonds.
- 2 -
.
.
-
(4) The interest rate limitation
and the limit on discount contained in
Section 54402(b) and 54418, respectively,
of the Government Code shall not be
applicable.
SECTION 2. Any provision of the Santa Monica Municipal
Code or appendices thereto inconsistent with the provisions of
this Ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 3. If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
jurisdiction, such decision shall not affect the validity of the
remaining portions of this Ordinance. The city Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
- 3 -
~
.
.
"
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance. The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become
effective after 30 days from its adoption.
APPROVED AS TO FORM:
~ \f'Io-.
ROBERT M. MYERS
City Attorney
~
- 4 -
.
.
8-G
~V 2 3 1989
Cal~fornia
II ~-_..........
CA:RMM:linda33/hpw
city Council Meeting 5-23-89
Santa Monica,
STAFF REPORT
?0~-6CO-C
~t) 3.- OOG>- 0/
TO:
Mayor and city council
FROM:
city staff
SUBJECT:
Introduction and First Reading of Ordinance
Amending Santa Monica Municipal Code Section
2651 Pertaining to Powers and Procedures for
Issuance of Revenue Bonds
This Staff Report transmits the accompanying ordinance for
introduction and first reading amending Santa Monica Municipal
Code Section 2651 concerning powers and procedures for the
issuance of Revenue Bonds by the city.
BACKGROUND
On December 20, 1965, Chapter 6.5, entitled "Revenue
Bonds," was added to the Santa Monica Municipal Code by City
Council adoption of Ordinance Number 705 (CCS). Such enactment
allows the city Council, by resolution, when the public interest
and necessity requires, to issue revenue bonds for the purposes
of "obtaining, conserving, treating, and supplying of water for
domestic use, irrigation, sanitation, industrial use, fire
protection, recreation, or any other public or private uses, or
for providing of pUblic airports and facilities appurtenant
thereto. II
Existing Section 2651 of the Santa Monica Municipal Code
provides that the procedure for issuance of revenue bonds shall
- 1 -
B-c
~~ 2 3 1983
.
.
be that which is set forth in the Revenue Bond Law of 1941 (the
"Act") (commencing with Government Code Section 54300), with the
specific exception that those provisions of the Act which require
an election to be held in order to authorize issuance of the
revenue bonds shall not apply.
The proposed ordinance would amend section 2651 by further
revising procedures for issuance of revenue bonds by excepting
any such bonds from the requirements of Government Code Section
54388, pertaining to invitation of bids for sale of revenue
bonds.
since the demand for revenue bonds is always dependent upon
the market conditions at the time of a proposed sale, it is in
the City'S best interests to possess flexibility in the selection
of the best purchaser for a particular sale of such bonds.
The amendment of Santa Monica Municipal Code Section 2651,
as set forth in the attached ordinance, would provide the City
with the necessary flexibility to choose between a private
placement sale or invitation for bids, whichever the City, in its
discretion, determines to be most advantageous.
Such choice already exists as to issuance and sale of other
types of municipal bonds. This amendment to Section 2651 would
provide the same option for the sale of revenue bonds.
RECOMMENDATION
It is respectfully recommended that the accompanying
ordinance be introduced for first reading.
PREPARED BY: Robert M. Myers, City Attorney
Linda A. Moxon, Deputy City Attorney
Stanley Scholl, Director of General services
- 2 -
.
.
CA:RMM:linda29/hpw
city council Meeting 5-23-89
Santa Monica, California
ORDINANCE NUMBER
(City Council Series)
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF SANTA MONICA AMENDING SANTA MONICA
MUNICIPAL CODE SECTION 2651 TO SPECIFY THE POWERS
AND PROCEDURES FOR THE ISSUANCE OF
REVENUE BONDS
THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS
FOLLOWS:
SECTION 1.
Santa Monica Municipal Code Section 2651 is
amended to read as follows:
SECTION
2651.
Title.
The
procedure for the issuance of revenue
bonds shall be the procedure set forth in
the Revenue Bond Law of 1941 (commencing
with Government Code Section 54300) and
by this reference the provisions of said
Law are incorporated herein, with the
following exceptions:
(1) No election to authorize the
issuance of said bonds shall be held and
the restrictions of Government Code
Section 54388 shall not apply, and to
those ends, sections 54380 through 54388
- 1 -
.
.
of
said
Government
Code are
and shall not
issuance of
not
be
said
incorporated herein
appl icable to the
revenue bonds.
(2) The resolution authorizing the
issuance of said revenue bonds may
provide that such bonds shall be payable
from the revenues of the Enterprise (as
specifically defined in such resolution),
which may include comb1ned revenues from
electric and water services, from
interest earnings on unspent bond
proceeds and from such other funds as may
be legally available for such purpose.
(3) Before selling the revenue
bonds, or any part thereof, the city
council may e1ther negotiate the private
sale of the revenue bonds wi th a
responsible purchaser or purchasers, who
may be purchasing for their own account
or for purposes of resale, or give notice
inviting sealed bids pursuant to
Government Code Section 5438B.
(4) The interest rate limitation
and the limit on discount contained in
Section 54402(b) and 54418, respectively,
of the Government Code shall not be
applicable.
- 2 -
.
.
SECTION 2.
Any provision of the Santa Monica Municipal
~
Code or appendices thereto inconsistent with the provisions of
this ordinance, to the extent of such inconsistencies and no
further, are hereby repealed or modified to that extent necessary
to effect the provisions of this Ordinance.
SECTION 3.
If any section, subsection, sentence, clause,
or phrase of this Ordinance is for any reason held to be invalid
or unconstitutional by a decision of any court of any competent
Jurisdiction, such decision shall not affect the validity of the
remalning portions of this Ordinance.
The City Council hereby
declares that it would have passed this Ordinance, and each and
every section, subsection, sentence, clause, or phrase not
declared invalid or unconstitutional without regard to whether
any portion of the Ordinance would be subsequently declared
invalid or unconstitutional.
SECTION 4. The Mayor shall sign and the City Clerk shall
attest to the passage of this Ordinance.
The City Clerk shall
cause the same to be published once in the official newspaper
within 15 days after its adoption. This Ordinance shall become
effective after 30 days from its adoption.
APPROVED AS TO FORM:
~w-..~
ROBERT M. MYERS
City Attorney
- 3 -