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SR-203-001 (5) \y ,.. (~'- e e "ztJ3-o0/ ~- D SEP 1 7 1985 AP:HED:mh City Council Meeting 9/17/85 Santa Monica, California TO: Mayor and City CouncIl FROM: Clty Staff SUBJECT: OrdInance for Introductlon and First Readlng Enabling the City to Issue Industrial Development Bonds Introductlon Thl s report request s that the Cl ty Counci 1 1 nt roduce an ordInance provIding the authority for the City to issue industrial development bonds. Back~round Industrlal development bonds (IDB's) are obligations issued by a publlC agency to finance a private industrial, manufacturlng or commercial activlty that is deemed to be of public benef1t. Such bonds are issued by a governmental ent1ty with the backing for the bonds limited to the credit of the prIvate company or faC1lIty user, the revenue from the facllity, or the value of the faclllty. Shoul d a def aul t of the pri va te company occur, the bond holder has no recourse against the governmental issuer. In other words. the bonds are not backed by the full f ai th and cred1t of the Clty, unlike a general obllgation bond. Such bonds are an attractive mechanIsm for encouragIng industrIal development within a Clty because the Interest earned by the bond holder IS deemed to be tax exempt. ThIS results in lower interest rates than sim1lar taxable oblIgations in the prlvate market. ThIS means that a City can offer this flnancing i-D - 1 - SEP 1 7 \965 . .. ~_~oJ'.., . e e techn1que to prlvate ent1ties Wh1Ch m1ght not otherwise be f1nanc1ally Monlcat thus st1MulatIng able to secure the financ1ng to locate In Santa encouraging private investment 1n the C1ty and employment. Crlteria for industrIal development bonds are defined in the Internal Revenue Code. State law provides for two mechanisms for the issuance of lndustrial development bonds. The first avenue was granted by the Callfornia Industr1al Development FinancIng Act~ which created an Industrial Development Author1ty ln each CIty and county In the State. These authorities may be activated by ordinance of the appropriate local legislat1ve body. IndustrIal Development Bonds may be issued in a second manner deriving from Santa Monlca I s powers as a charter C1ty. Thls approach 15 recommended for its flexIbility. The City 1S empowered to adopt an ordinance for the fostering of economic development w1thin Santa Monlca as a mun1cipal affair. At the direction of staff. Morrison and Foerster as bond counsel for the Airport development project. has to issue bonds developed secured by an ordinance revenues of a authorlzing the City pr1vate activity or project. The ordinance def1nes these actlvlt1es to 1nclude the acquisit1on, construction or expans10n of industr1al. manufactur1ng or commercial facilitlesy by prlvate partles. The ordInance also would empower the Clty to lssue revenue bonds backed solely by nonprof1t corporatlons desirlng to construct facilities of publlC benefit. - 2 - '. . .. ..,. e e The ordinance flnds that such actions would promote the public health, safety and welfare of the Clty and defines the process for identIficatIon of projects and Issuance of bonds. Staff IS requesting that the City Council adopt such an ordinance 1n order to empower the CIty to engage in lndustr1al development financlng. Two projects current.ly before the City could benefit from such tax-exempt financing. The first such project is the development. of new fIxed base operator facilities on the north SIde of the Municipal Airport. On June 1, 1985, the City issued a Request for Proposals for three fixed base operator leases on 23 acres north of the runway as part of the implementation of the Cl ty' s agreement wi t.h the FAA. Proposal s were due on September 1, 1985. Wh i I est a f f i s still evaluating the proposals received, CIty staff believes that the use of the City's industrial development financing powers would enable the financing of facilities whIch might not otherwise be financially feasible. Fixed base operatlons are el1g1ble act1vlt1es under both State and Federal law The City is required to lease land for such faCilities under Its agreement with the FAA. The second project WhlCh might be assisted by revenue bond financing is the construction of new fac1lities by the Santa MonIca branch of YMCA at its present location on 6th Street. The new facll1ty planned by the YMCA will Include a parking structure, which w1l1 signlficantly alllevate the parking - 3 - # -j. e e problems that currently eXIst In the area. If the CouncIl elects in the future to Issue revenue bonds for thIS purpose, the proceeds in part would be used by the YMCA toward the purchase of addItional land for the faCIlity and parkIng structure. The bonds would be completely repaid by the YMCA WIthout any oblIgatIon of the City. As a nonprofit corporation, the YMCA is eligible for this type of tax-exempt revenue bond financing. This ordinance does not commit the City to issue IndustrIal development bonds for these projects, nor does It give fInal approval for the projects. There are a variety of re lated and sequential actions which will need to take place prior to the Issuance of any bonds. Bud2etarv/FIscal ImDact - - - Re I a tad act 10ns on th1 S project may have budgetary If I sca 1 Impact; however there is no fiscal or budgetary impact from this actIon. Recommendation Cl ty staf f respectfully recommends that the Ci ty Counci 1 Introduce an ordinance providing the City with the author1ty to issue lndustrial development and prIvate actIVIty bonds. Prepared by: Robert Myers, City Attorney Hank Dittmar, Airport Director Peggy Curran, ActIng Director C/ED - 4 - J e e CA:RMM:lmo053 Clty CouncIl Meetlng 9-17-65 Santa Monlca, CalIfornia ORDINANCE NUMBER (City CouncIl SerIes) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SPECIFYING THE POWERS AND PROCEDURES FOR THE ISSUANCE OF REVENUE BONDS FOR THE PURPOSE OF FINANCING FACILITIES TN THE CITY OF SANTA MONICA BY PARTICIPATING PARTIES AND INCLUDING DEFINITIONS, GENERAL PROVISIONS, POWERS, ISSUANCE PROCEDURES, AND CERTAIN SUPPLEMENTAL PROVISIONS THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES ORDAIN AS FOLLOWS: SECTION 1. FIndings and DetermInatIons. The City CouncIl of the CIty of Santa Monica hereby declares: (a) The acqUISItIon and constructIon of certaIn faCIlItIes In the CIty by prIvate persons as speCIfied hereIn serves the publIC Interest of the CIty and promotes the publIC health, safety, and welfare of the CIty by making such faCllltles avaIlable to the reSIdents of the Clty Without cost to the City or to any other publIC agency. (b) PermittIng the CIty to aSSIst In the fInanCing of the acqUISitIon and construction or expanSion and modernIzatIon of such faCIlities serv~s the publIC Interest of the City by enablIng the City to induce manufacturIng, IndustrIal, and comm~rclal enterprIses to locate In the CIty, thereby promoting commerce and industry 1n the CIty; and 1 1. e e i'-;'S'Jr 'i,"j t r I a"" ,- f> [' t .'l 1 n t "l,- 1 1 1 t 1 f'~ '" a, ~ ~Vrtl1.::&c'1 ~ Il) t"nt=a rHlr~11 (' -=11 ~ ~ .'l., .. I=-j ( (1 L: -:: (' 'f."':- . ~ 1'-.. ~ i d --I l I ~ 1 t . <J 1"" ~-~.... ;:... I.' 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(j (-J a ~ r ~ t f . r +-"- r:. cl ~- I' t- i . . ~ ~ AFPP()VFn ;.S ~" i .. J F'()~ i'-' . ~~.-(;;;-F' ~~ r'--~R. .~-~ - t-' F (j to" \ "j ~ 1.1 T r -.. r.1 ty A.tt" -,rn,"y .:l .I" ..... OA1NALS c1!Y CLERK e ~ 1<) ~-~ SEP 1 7 1985 Af-': Hf- [): mh C I t Y [n II t"l ell Mp!"! tin 9 9 - 17- R? S~nte MnnlcA} le],fnrnlR SIIPPI FMFNTAI STAFF REPlIRT 111 ~ M."l;"Qr '3nrl rl t)-I rOllnr 11 Fl-<'flM: llt)J St."lff SIlR1FI T: Drrllni'\nrp fnr Intrnrlllr:tlcn And First Rpi'!rllnlJ Fn,=,hllnC! thp Clt>J to IS"'II'" Innustrli"ll Uevf'!lnpmpnt Hands 1h,;. attarh",rl Orc1lnAnr'" fnr Int rnrllJct Inn <"Ind FIrst RpFlnlna Fn?Jb lIng the CI t Y to l!5""Je I ndllS t r li'll Ile~)f' I opm[l>n t Rnnd<=, shnulrl tip Slrh5t I tute-cI fnr th~ Ordln'3nce- whIch WE!<=' lnr::lllr1F'd In the AIJp.nrla rElrkFd fnr Itpffi 8-0. ThiS revIsed vprSJnn of thp Orr:lln~nrp ront~ln<=, mInor tp~t cnrrprtlons ~nd rl.,,<r}fJr<'ltlnn<=, IAlhlr-h arE' hl'Jh],.,htpr-J tor )'nllr r-nnvel"1lpnr-e. ~LL, ~~~) 3~ ~) /2 <.:J 11 Af5D 1D \?,-J) SEP 1 7 19B5 ,f e e -NbfJ:> /?) 8-)) CA:RHM: JmoOl)3 CIty Counc1] MeetIng 9-17-85 Santa Monlca, CallfornIa ORD T NANCE NUMB r~R (Clty CounCIl Series) AN ORD1NANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA SPECIFYING THR POWERS AND PROCEDURES FOR THE ISSUANCE OF REVF:NUF. BONDS FOR THE PURPOSE OF FINANCING FACILITIES IN THE CITY OF SANTA MONICA BY PARTICIPATING PARTIES AND INCLUDING DEFINITIONS, GENEHAL PROVISIONS, POWFRS, ISSUANCE PROCEDURES, AND CERTAIN SlJPPJ.l"HF:.N'PAL PROVISIONS THE CITY COLrNCrr. OF THF' C1TY OF SANTA MONICA DOES ORDAIN AS FOI, LOWS ~ SF.C'l'ION 1 . Flndlngs and Dptermlnatlons. The City Councll of tnp CIty of Santa MonIca hereby dpclares: tal ThE' acquls1tlon and constructIon of certaIn facIJ]tlP~ In thE' CIty by prIvate pprsons as specIfIPd hereIn ~prves thE' publIC Interest of the CIty and promotE's the publlC health, satpty, and welfare of the CIty by mAKIng such faclIltlE'S avaIlabl~ to the reSIdents of the CIty WIthout cost to thE' CIty or to any other publlC agency_ (b) PermIttIng the CIty to aSSIst In the fInanCIng of thE> acqUISItIon and constructIon or expanSIon and modernIzatIon of such facI11tIes servps the publIC lnterest of the CIty by enablIng thE' CIty to lnduce manufacturIng, IndustrIal, and commerCIAl enterprIses to locate In the CIty, thprehy promotIng commerce and Industry In thE' CIty; and ] ,f e e ensurIng that cprtaln faCIlItIes arp avaIlable to the publIC and are acquIred and constructed or expanded, e~largpd or modernIzed In a manner consIstent WIth such publIC AVBllahlllly and wlth the publIC concerns of the CIty. (cl EncouragIng the acqUISItIon and constructIon or expanSlon and modprnlzatlon of faCllltles for manufarturlng, Indu~trlal) and commprclal enterprIses or pUblIc faCIlItIes by prlvate persons pursuant to thlS OrdInance constItutes a munlClpal affaIr of thp CIty of Santa MonIca, an exprCIse of the pOllCP powers of the CIty of Santa MonIca, and a puhllC purpoc;e In whlCh the Clty of Santa MonIca hac; a unIque Interest. SRe." T ON 2 . lle f 1 n 1 t IOn s . Unlec;s the context othprWIse rpquIres, thE' follOWIng words or phrasps used In thIS ordInancp shall have the followlng mpanIngs: (a J AcauIc;ltIon . (and Itc; varIants). AcqUISItIon, constructIon, Improvement, furnIShIng, eqUIppIng, rpmodpllng, rppalr, rpronstructIon) or rE'hahllltatlon. (b J Admlnlc;tratIve ExpensE's. All reasonablE' and npce~sary PxpE'nsE's Incurrpd by thp CIty In the adm1nIstratIon of the provIslons of thIS OrdInance WIth respprt to a partIcular ProJect and the flnancIng thereof, IncludIng) WIthout }lmltatlon) compen~atlon to CIty agents, employees and staff, fpps and expensE's of paYlng agpnts, tru~tE'ec;, bond counsf"l, rind fInanCIng consultants) and costs of prIntIng ano advertIslng. 2 e e (c) Bonds. ~ny bonds, notes, InterIm certIfIcates, dpbenture~, or other oblIgatIons Issued by the CIty pursuant to thlS OrdInance, WhICh are payahle exclusively from Revenues and other funds permItted by thIS OrdInance. (d) Cl tiT.. The Clty of Santa MonIca, callfornHl., a munIClpal corporatIon eXIstIng pursuant to thp CIty Chartpr State. under and exerCIsIng power~ and the ConstItutIon of thp f e) CIty Charter. The charter of the CIty, as ampndpn from tIme to tIme. (fl CIty CouncIl. ThE" City CouncIl of the CIty. (g) Costs WIth reference to a ProJect, any or all of thp followlng co~ts Incurred for the acquIsltIon thereof: (1) OblIgatIons of the ParticIpating Party Incurred for labor and materials In connectIon wlth the Bcqlll!'lltlon of the ProJPct. (2) Thp cost of acqUIsItIon of any propprty, whethpr rpal or pprsonrt], Improvpd or unlmprovpd, ] nclurhng franchIse rIghts and other IntangIble propprty and any Intpre~ts thpreIn, rpquIrpd for the acqUisitIon of thp ProJPct. (3) Thp cost of demolIShIng, remOVIng, or relocatlng any bUlldlng or structurp, nod the cost of mnklng relocat10n a~sIstance payments, If any, as requIred by law (4) The cost of contract bonds and of InSUrrtnc~ of all klnd~ that mrty be regulred or necessary durlng the coursp of the acqUIsItIon of the ProJPct. 3 e e (5) ~ll costs of engInperIng, leg~l, and consultant sprvIces, Includlng thp costs of the Par~lCIpatIng Party for survpys] estimates, plans and ~perlflcatlons, and prel)mlnary 1nvestIgatIon thprefor, and for supervising con~tructlon, as wp.ll as for the performance of all other dutlP~ rpqulrpd by or conspqupnt upon the proppr acquls1tIon of the ProJect.. ( 6 ) A)l costs 1ncurred 1n ronnpctlon with procpedlngs by the WIth thp CalIfornia amended. PartIcIpatIng Party necessary to comply EnvIronmpntal Quality Act of 1970} as (7 ) AJl amounts requlred to fund any rpservp funds for Bonds and any Interpst on Bonds becomIng due and payable durIng a pprIod not excepdIng the pprIod of acqulsltlon of thp ProJect and 12 months therpafter. (8) All admlnl~tratlvP expen~es. [9) All ro~ts WhICh the PartICIpatIng Party 5halJ bp rpgulred to pay, undpr th@ terms of any contract or contracts} for the acqUISItIon of the ProJect. (10) Thp refInanCIng of any eXIstIng Indebtedness ~erUred by an Interest In any rea] property comprISIng any portIon of th~ ProJect} so long as and to the extent that such reflnanclng does not cause Interest on the Bonds to bpcomp taxable undpr Spctlon 103 of the Internal RE'venue Code of 1954, as amenrl~d. (11) Any Partlclpatlng Party sums reqUIred to rPlmbursp thE' any of the ahovP for advancps made for 4 .' e e Itpms or for any other costs Incurred and tor work done WhICh are properly chargeable to the ProJPct, provaded that reImbllrspment of such advancps does not cause the Interest on the Bonds to become sUbJect to federal Income taxatIon, (h) FInanre (and Its varIant~J The lendIng of monIe~ or any other thIng of value to PartIcIpatIng PartIes, or thp E"ntprlno -' Into ot lE"ase~ or Instal1mpnt sale agrepments wIth PartIcIpatIng PartIPs, or thp makIng of loans to fInancIal InstItutIons WhICh In turn make loans to PartIcIpatIng PartlPs, for the purpose of paYIng or otherWIse prOVIdIng for or aSsIstIng the paympnt of any or all of thp Costs of a ProJect pur~uant to thIS OrdInance. ( 1 ) PartlC'lpatlng Party. Any pprson, corporatIon, piHtnershIp, fIrm] or othpr entIty or group of entltles rpqulrlng fInanrlng for the acqUIsItIon of a ProJect pursuant to thls OrdInance, ( J ) ProJPct. Real Propprty located wIthIn the cIty and l~-.t \ or be improved wIth manufacturIng, IndustrIal, or lmprovpd commprrl.'ll farIlltJP.Sj faCllltlPS for rpcreatIon} parkIng, hpalth, educatIon, or other use~ approved by the CIty CounCIl pursuant herpto and WhICh are open to the publIC; and other faCIlltlPS dpterm,npd by thp CIty CounCIl to serve thp publIC Intprpst and promote the publiC health, safety, and welfarp WIthIn the CIty. ( k ) OrdInanCE"_ ThIS OrdInance, as amended from tIme to tIme In accordance WIth Spetlon 1q hereof. 5 ~ . e (I) Rpvenues. WIth respect to the fInanCIng of a ProJect, all amounts receIvpd a~ repayment of prIncIpal, Interest, and all other charges receIvpd for, and all other Incomp and revenue (IncludIng the proceed~ of In~urance) derlved hy the CIty In connectIon WIth such PrOject or thp fInanCIng thereof, and any receIpts derIved from the Invpstmpnt of such Income or Revpnues} IncludIng monIes dpposlted In a SInkIng} redemptIon, or reserve fund, or other fund to spcure the Bonds or to provlde for the payment of the prInCIpal of or Interest on the Bonds and such other monIes as the CIty CounCIl may In Its dIscretIon make avaIlable therptor. (m) State Thp State of Callfornl8. SFCTTON 1 Powers. The CIty IS authorIzed and empowered: ra) To detprmInp the locatIon and character of any Project to he fInanced under the prOVISIons of thIS OrdInance. (hI Tn Issue Bonds for the purpose of fInanCIng or otherwI~e aS~lstIng In the acqUISItIon of Projects by PartICIpatIng PartIes under thIS OrdInance} and tor the purpoGe of refundlng any Bonds preVIously Issued hereunder. (el To flX f~es, charges} and Intere~t rate~ for the flnanclng of any ProJect, and to reVIse such fees} charges, and Interest ratps from [Imp to tIme, and to collect Interest and prlnclpal together wlth on any such loan f~es made to a PartIclpatlng Party and charges Incurred In such 6 ~ e e fInancIng] and to contract wlth any aSSOCIatIon] corporatIon] or publIC thereto (d) To hold d~eds of trust a~ securIty for fInancIng any ProJect and to pledge the same as securIty for repayment person, partn~rshlp] agency wIth respect of Bonds Issued therefor. ( e ) To establIsh the terms and condItIons of thp fInanCIng OrdInance. of any PrOject undertaken pursuant to thIS (f) To requIre that th~ full amount owed on any loan for the fInanCIng of a ProJPct pursuant to thIS OrdInance shall be dup and payable upon sale or other transfer ot ownershlp ot such ProJPct. (gl To acquJre, by deed, purchase, leasP] contract, gJft, deVIce] or otherWISP, any real or personal property, structures, fIghts, fIghts-of-way, franchIses] easement~J mortgages, and other Interpgts In property located WIthIn the State necessary or conv~nlent for th~ fInanCIng or acqUISItIon of a ProJect) upon such terms and condItIons as It deems advIRahleJ and to lease, sell, or dIspose of the same 1n such manner as may he necessary or desIrahle to carry out thp ohJects and purpose~ ot thIS OrdInnnce. Ih) To employ or contract tor such engIneerIng, archltectural, accountIng, COllectIon, econom1C feaSIbIlIty, the serVICIng of loans or othpr serVJces In connectIon WIth madp to PnrtlcIpntlng Partl~5 a~ mny bp necessary In the )udgmpnt of the CJty CounCIl tor the succes~ful fInanCIng of a 7 ~ c e e ." ProJe~t. The CIty may pay the reasonable costs of consultIng engIneers, archltects, accountants, constructIon experts, and economIC feaSIbII]ty experts, If, ]n the Judgment of the CIty Councl], such serVIces are necessary to the succe~sful fInancIng of a ProJ@ct and If the CIty 15 not able to provIde such serVIces The CIty may employ; contract for, and fIX the comppn~atIon of f]nanclng consultants, bond counsel, and such other adVIsers as may bp necessary 1n Its Judgmpnt to provIde for the I~suance and sale of Bonds. (1) In addItIon to all other powers specIfIcally grantpd In thIS OrdInance, to do all thIngs necessary or convenlpnt to carry out the purpo~e~ of thl~ Ordlnancp SECTION 4. ApP]lcatlons tor Flnanclng. PartICIpatIng PartIPs may apply tor flnan~lng pursuant to thIS OrdInance by contactIng the City Manager or such other offIcers or employpps of the CIty as shall be desIgnated by the CIty CounCIl from tlmp to tIme Each applIcant shall supply to thp ~atlsfact'on 01 the CIty Manager or such other offl~er or employee all InformatIon reqUIred to evaluate the flnanrlal rel1ablllty and stabIlIty of the Partlclpatlng Party and thp fea~lhlllty of th~ proposed ProJect, IncludIng an estImate of the maXImum amount of fInanCIng to be reqUIred, a de5CrJptlon or Itpmlzatlon of the Costs at thp propo~ed ProJ~~t} and a wrltten agrepmpnt to pay all propospd Pro)Pct ~nmlnlstrat]ve Expenses tor thp B ~ e e SECTION 5. Acceptance of ApplIcAtlons. Upon receIpt of An appllcation contalnJng all requlrpd Informatlon, egreempntj and undertakings, the City CouncIl shall at such tlm~ as It depms convenIent reView such applicatlon and any staff recommendatlon~ with re~pect thereto. If tne Clty Councll chooses to approve any appllcatlon for financing under thIS OrdInance, It shall adopt a resolutlon authorIzIng the Jssuance of Bonns and/or accppting and approving ~uch appllcatlon and thp partIcIpatIon of the City In the fInancing of such ProJect] sUbJect to the prOVisIons of thIS OrdInance and the concluSIon of all such financlng to the proceedIngs undertaken to consummate satisfactIon of the CIty. The prOVISlon~ of thIS S~ctlon 5 ~hall not apply to any flnancIng approved hy resolutIon of the CIty CouncIlor the Redevelopment Agency of the CIty of Santa Montca adopted prior to the date of Adoption of thIS OrdInanre. S~CTION 6_ AuthorIzation ot Bonds The CIty may Issue Its Bondq for the purposp of flnanclng or otherWIse aSSIstIng In the acqulsltlon of ProJects authorl~ed by thIS OrdInance Every IS~UP of Bonds shall be a sppclal oblIgatIon of the City, payablp solely from all or any part of the Revenups at ProJert~ SF.CTJON 7. Issuance of Bond~. The Bonds may bp Issued a~ serIal Bonds or as term Bonds, or thp CIty CounCl]] In Its Olscretlon, may Issue Bonds of both typps. The Bonds shall bp 9 . . e e ~ authorIzed by resolutIon of the CIty CouncIl and shall bear such d~te or d~tes, mature at such tIme or tijmes, bear Interest at such fIxed or varIable rate or rates, be payable at such tImp or tImes, bp In such denomInatIons, be In such form} rarry such regIstratIon prIVIleges, be executed In ~ucM manner, AmerIca} be payable In lawful money of the Unlted States of at such places or placps, and be SUbJect to such tprm~ ot redemptIon as the reqOlutlon or resolutlon~ of the CIty Counrll may prOVIde. The Bonds may be sold at eIther a publIC or prlv~te s~lp and for such prIce. as the CIty CouncIl shall determIne. PendIng prpparatlon of the deflnItlve Bonds, thp CIty may ISSUP InterIm receIpts, certIfIcate~, or temporary Ronds, WhIch shall be exchangpd tor such defInItIve Bondq. SECTION 8. Term~ of Bond~. Any resoJutlon or resolutIons authorIzIng any Bonds or any l~sue at Bonds may rontaln prOVIsIons respectIng any of the followIng terms and condItIons) WhICh shall be a part ot the contract WIth the holders of the Bonds: ( a ) The pledge of all or any part of the Revenues, suhJect to such agreements WIth Bondholders as may then eXlst. (b) Thp Interest and prInCIpal to be receIved and other charges to be charged and the amounts to be raIsed each year thpreby, and the USe and dlSpO~ltlon of the Revenues. Ic) The settIng aSIde of reserves or SInkIng funds and the rpgulatlon and dlSposltlon thereof. 10 .. ' . e (d) LImItatIons on the purpose~ to WhICh thp procepds of a sale of any Issue of Bonds, then or thereafter Issued, may be applIed, and pledgIng such proceeds to secure thp payment of the Bonds or any Issue of Bonds. fe) LImItatIons on the Issuance of addItIonal Bonds, the tprms upon WhICh addItIonal Bonds may be Issued and secured, and the refundIng of outstandIng Bonds. (t) The procedure, If any, by ~hlCh the terms of any contract WIth Bondholdprs may bp amended or abrogated, the amount of Bonds the holders of WhICh mu~t consent thereto, and the manner In WhIch such consent may be gIven. (9) SpecIfIc~tIon of the acts or omISSIons to art WhICh shall constItute a detault 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, assets owned by a PartIcIpatIng sprurIng paympnt of the Bonds. (1) Such other tprms and Improvements, or other Party for the purpose of Issuance of the Bonds as condltlDn~ pprtaInlng to thp depmed advlsahle by the CIty are Coune1l SECTION 9. Trust Agreement. In the dlscretlon of the CIty CounCIl, any Bonds 1s~ued under the provLs1ons of thIS OrdInance may be spcurpd hy a trust agrpempnt or lndenturp by and bptween the CIty and a corporate trustee or trustees, WhlCh may be any trust company or hank haVIng the powprs of a 11 . ' , e e trust company wIthIn or wIthout the State. Sur.h trust agreement or the Indenture may pledge or aSSIgn thp Revenues to be recelved or proceeds of any contract or contr~cts pledged, and m~y convey Of mortgage any property. Such trust agreement or Indenture may contaIn surh prOVISIons for protectIng and enforCIng the rIghts and remedIes of the Bondholders as may be reasonable and proper and not I~ VIolatIon of law, IncludIng such prOVISIons as are permItted to be Included In any resolutIon or resolutIons of the CIty CounCIl authorIZIng the Issuance of Bonds hereunder. Any such trust aoref'rnent -' or Indenture may set forth the rIghts and remedlP<; of the Bondholders and of the trustee or trustees, and mAY restrIct the Ind]VIdual rUJht of actIon by T""'flCO~ any surh trBst Bondholdprs. Tn addItIon to the foregOIng, Agreement or Indenture may rontaln such other prOVISIons ae; thf' CIty CounCIl may deem rea<;onab}e and proper for the securIty of the Bondholders. SECTION 10. Personal LIabIlIty. NeIther the members of the CIty CounCIl nor any person executIng the Bond~ shall be lIable personally on the Bonds or be SUbJect to any personal IIablllty or accountabilIty by rea~on of the issuancp thereof. SEe'J'] ON 1 1 Refundlng Ronds. The CIty CounCIl may provlde for the issuance of Bonds any portIon of WhICh ]s to bp uspd for the purpose of fPfundlng outstandIng Bonds, Inr.ludlng the payment of the prlncIpal thereof and Interest 12 e e and redemptIon premIums, 1 t any, thereon. The proceeds of Bonds Issued to refund any outstandIng Bonds may, 1n the dIscretIon of the CIty CouncIl, be applIed to the retIrement ot such outstandIng Bonds at maturIty, or the redemptIon (on any redpmptIon date) or purchase of such outstandIng Bond5 prIor to maturIty, upon such terms and sUbJect to such condItIons as the CIty r.ouncIl shall dpern advIsable. SFCTION 12. Repayment of Bonds. Rpvpnue~ shall be the sole sourep ot funds pledged by thp C1ty for repayment of Banns Issupd hpreunder. Bonds Issued hereunder shall not bp depmpd to constItute pl?nge of the fa1th payable ~ole]y from Pro Jec t . A] 1 Bonds a deht or lIabIlIty of and credIt of the CIty the CIty or a but shall be Revenues arISIng from the partIcular shall contaIn on the face thereof a statement to the follOWIng effect: NEITHER TAXING MONlr.A THE FAITH AND POWER OF' 'I'HF: IS PLEDGED TO CREDIT NOR THE CITY OF SANTA THE PAYMFNT OF THF PRINCTPAL OF OR ANY INTEREST ON THIS BOND. The l~suance of Bond~ shall nat dlre>ctly, IndIrectly, or contIngently oblIgate the CIty CounCIl to levy or pledge any form of tRxatlon or to make any approprIatIon for thplr p.=lympnt. 13 .i e e SECTION 13. AuthorIty to ASSIst Prolects. The CIty may provIde fInancIng to any PartIcIpatIng Party for, or. otherWIse aSSIst the acquIsItIon of, duly approved ProJPcts pursuant to thIS OrdInance. At the dIscretIon of thp CIty CouncIl, thp fInanCIal assIstancp provldpd hpreunder may take any form d~pmed advls~ble for the succpssful fInanCIng of the ProJPct; Includlno WIthout ... lImItatIon a loan} lease, or Installment si'\lp. SECTION 14. FInanCIng Agreements. The CIty may enter Into agrepmpnt~ WIth any Partl~lpatlng Party WIth respect to the fInanCIng of a ProJect, WhICh agrppmpnts may prOVIde that the archltectural and engInpprlng dpqlgn ot thp ProJect shall be subJPct to such standards, rpv]Pw~, and approvals as may bp e~tahlIshpd by the CIty anrl that the acqUISItIon of the ProJPct ~hall be ~ubJect to such supervIs10n as the CIty dpem~ npcessary. Thp terms and condItIons of such agreements may be as mutually agrppd upon) hut shall not bp InconSlstpnt WIth the prOVISIons of thIS OrdInance. Any such agreement may prOVIde the mpans or methods hy WhICh any mortgage taken by tnp CIty sh~ll be dlschargpd} and It may contaIn a covenant by the P~rtIcIpatlng Party to complpte the ProJect whether or not Bond procped~ are suffICIent therefor) and such other terms and conchtlons as the CIty may reqUIre. The CIty 15 1'"'1P6 ~fV~ and collect Interest and authorlZf!d to flx, reVISP, chargp, prInCIpal, and all other rates} fepq) rents, Installment purcha~~ paympnts, and chargp~ WIth rpsppct to the fInanCIng 14 ~ e e of a ProJect Such rates} fees} rents} Installment purchase payments, rharges} and lnterest shall be fIxed and adJusted so that the aggregate thereof wl11 provlde funds sufflclent wlth other revenues and mon1es Wh1Ch It 15 ant1clpated WIll be ava11ablp- therefor} la) Pay the If any} to do all of the follow~ng: prlnclpal of and 1nter~st on outstandlng Bond~ l~~u~d to flnance such ProJect} as the same shall becomp nue and pnyahle. (hl Create and ma1ntaln reserves requlred or provlded for In any resolutIon authorlzlng such Bonds. A sufflc1ent amnunt ot the Rpvenups derlVf>d from thp ProJect may b~ set a~lde at ~uch regular Intervals as may be provldpd by the re~o]ut]on or trust 1ndpnturp 1n a slnklng or othpr sIm1lar fund, WhlCh shall be pledged to} and charged wlth} the payment ot the prlnclpal of and Intprest on such Bonds as the same <;hi'lll bpcome dlle} and the rpdpmptlon pr1re or the purchase pr1ce ot provldpd. Bonde; Such ret1red by call or purchase as thprPln and blndlng from th~ pledge shall be va]ld tlmp thp pledge 15 made. The rates} fees} lnterest} and other rhargp~, rpvenues} or monlPS so p]edgpd and thereafter rpceIvpd by the Clty ~hal1 Immpd18tely be SUbJect to the 11en of such pledge wIthout any physIcal dpl1very thereof or further art, and the llPn of any such pledge shall be valld and bIndlng as agaInst all partles haVIng claIms of any Klnn 1n tort} contr~ct} or otherWIse agi'lln~t the Clty, IrrespertIve of whether such partles have notlre thereof. Ne1ther the resolutIon} the trust 1ndenture nor any agreement by WhlCh a 15 .;0 l ~ . J . e pledge 1 C; creat~d need be flIed or recorded except ~n the records of the CIty. The use and dISposItIon of monIes to the credIt of such SInkIng or other slmIlar fund shall bp sUbJPct to the provlslons of the resolutIon or trust agreement authorIzlng the issuance of such Bonds. Ic) Pay Admlnlstratlve Expense~ to the extpnt not paId from Bond proceed~. SRCTION 15. Trust FUl"\dc;. All monIes r~ceIved pursuant to thp proV1S1ons of thIS OrdInancp, whether procppd~ from thE" sale ot Ronds or Revpl"\uPs, shall be deemed to be trust funds to be hpld and applIed solely for the purpoc;es of thlS OrOlnan('P. Any bank or trust company In WhIch such monIes are dpposlted shall act ae; trustep of such monIes and shall hold and apply the same for the purposes spec-Ifled In thIS OrdlnanC'P, SUbJect to the terms of the ree;olutlon or trust agreempnt authorIzIng the Bonds SECTION 16. LIheral ConstructIon. ThIS OrdInance, bplng necec;c;ary for the health, welfarp, and s~fety of thp CIty and Its resldpnts, shall be lIberally construed to effect Its purpoc;es. Furthprmore, thp CIty CounCIl hpreby declares that thlS Ord1nance 15 an exerCIse of the power granted to the CIty by the CIty Chart~r and the ConstItutIon of thp State and IS an pxerrlse by the CIty of Its powers as to munICIpal affaIre; and Its polIce powers, and thIS OrdInance shall be H.. .;; ..... -~ e e lIberally construed to uphold Its valIdIty under the laws of the State. SECTION 17. Supplemental and ~ddltlonal powers. Thl'3 Ordlnancp sh~ll bp deemed to provIde a comple~e} addItIonal, and alternatIve method for dOIng the thIngs authorIzed hereby, and shall be regarded as supplemental and addItIonal to the powers conferred hy other laws. SI<XTION 18" ActIon~ to DetermIne ValIdIty 01 Bonds and ProceedIng">. 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 lpga]lty and valIdIty of all proceedlng'3 preVIously taken and proposed to be taken tor the authorIzatIon, Issuance, sale, and dp]lvpry of the Bonds and for the pAyment of the prInCIpal thereof and Interest thereon. SFCTION 19. Amendment ot OrdInance. ThIS OrdInance shall not be ampnded so as to have a matprIal adverse effect upon the nghts of the holdprs of any outstandIng Hond~ theretofore Issued hereundpr, or the r1ghts of PartIc1patIng Partles WIth respect to whom Projects have theretofore heen fInanced hereunder, WIthout the wrltten consent of such Bondholders and PartIc1patIng Partles; prOVIded, however, that th15 Ordlnance may be ampnded at any tIme (al to makp such prOVISIons for the purpoge of curIng any ambIgUIty, or of 17 , ..... , '" .1 . e 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 atfect the Interests of any SUCh Bondholder or PartIclpatlng Party; or (c) If such amenctmpnt applles solely to Bonde; not therptotore I~~upd hereunder or PartICIpatIng PartIes Wlth respect to whom ProJects have not theretofore been flnanced hereunder. SECTION 20. Referendum Pertod. ThIS OrdInance IS sUbJprt to thp provl~lons for referendum prescrIbed by Sertlon 54/42 ot the Governmpnt Code of thp State of CalIfornla and c;E"ctIons 40~O and 4061 of thp ElectIons Code of the State of Callfornla, as Incorporated In SpctIon 1404 of the Clty Chartpr, and SUbJect to the foregOIng thIS OrdInance shall take pffp~t and be In force thIrty (30) day~ from the date of Its adoptIon. SECTION 21 Rppeal of Inconc;]stencles. Any prOVISIon of thp Santa MonIca MunICIpal Code or appendIces thereto InconSIstent wlth the prOVISIons of thIS Ordlnancp, to the extent of such Incon~Istencles and no further, arp hpreby repealed or moo]f]ed to that pxtp-nt necE"ssary to effect the provI5lon~ of thIS OrdInance. SF.CT10N 22. PartIal InvalIdIty. If any sectIon, paragraph, Rentence, clallsP} or phrase of thIS Ordlnanr.e shall 18 """'. . .,.. Jo e e for any reason be held Illegal or unenforceable, such holdIng shall not affert the valIdIty of the remaInIng pbrtIons of thIS OrdInanCE'. The Clty CouncIl hereby declares that It would have adopted thl~ OrdInance and each and every othpr sectIon} paragraph, sentenre, clause, or phrase not declared InvalId or unconstItutIonal wIthout regard to whether any portIon of thIS OrdInance would be subsequently declared InvalId or unconstItutIonal. SECT10N ')3. ~he Mayor shall SIgn and the Clty Clerk ~hrtll attest to thp passage of thIS OrdInance. Thp CIty Clerk ShAll cause the same to be pUblIShpd once In the offICIal npwspapE'r WIthIn 15 day~ after Jts adoptln. ThIS OrdInance shall bE'come effectIve 30 days from ItS adoptIon. APPROVED AS TO FORM: ROBERT M. MYERS CIty Attorney 1Cl ~