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ORDINANCE NO. 1059 (1986 SERIES)
AN ORDINANCE OF THE CITY OF SAN LUIS OBISPO ESTABLISHING
THE CITY OF SAN LUIS OBISPO CAPITAL IMPROVEMENT BOARD,
A PUBLIC FACILITIES FINANCING AUTHORITY, AND
PRESCRIBING THE POWERS AND PURPOSES THEREOF
WHEREAS, the City of San Luis Obispo (the "City ") is a municipal corpora-
tion and charter city duly organized and existing under a freeholders' 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 Sections 3, 5 and 7 of
Article XI of the Constitution of the State of California and Section 203 of
the Charter of the City (the "City Charter "); and
WHEREAS, the City is proposing to construct and improve various public
facilities and improvements which will necessitate the use of a public authority
to implement the financing presently contemplated; and
WHEREAS, in order to implement the financing of such facilities and improve-
ments, it is necessary to authorize the establishment of said public authority
as provided herein;
BE IT ORDAINED by the Council of the City of San Luis Obispo as follows:
SECTION 1. CHAPTER 3.42 CAPITAL IMPROVEMENT BOARD
3.42.010 Declaration of Public uses and purposes.
The Council hereby finds and determines that the construction, acquisition,
maintenance and improvement of public facilities and improvements within the
City and the performance of all undertakings incidental or advantageous thereto
are public purposes for which public money may be spent and private property
acquired, and are governmental functions.
3.42.020 Municipal affair.
The Council hereby finds and determines that the activities set forth in
Section 3.42.010 are municipal affairs, necessary and appropriate to a municipal
corporation and the general welfare of its inhabitants, and are not prohibited
by the Constitution of the State of California nor by the City Charter.
3.42.030 Effect of Chapter upon other law.
This Chapter shall not affect any other provision of law relating to the
same or a similar subject but provides an alternative method of procedure govern-
ing the subject to which it relates; and it shall not abridge, modify or other-
wise affect the right of the City to exercise any power given to it by the
Constitution or any other law.
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3.42.040 Definitions.
Unless the context otherwise requires, the definitions set forth in this
Section shall govern the construction of this Chapter.
"Board" means the public body established pursuant to Section 3.42.050 of
this Chapter.
"Bonds" means any revenue bonds issued by the Authority pursuant to the
provisions of Article III of this Chapter.
"City" means the City of San Luis Obispo.
"Chapter" means this Chapter, as originally adopted or as subsequently
amended.
"Project" means the construction, acquisition, maintenance or improvement
of public facilities and improvements authorized by this Chapter.
"Public facilities and improvements" means any physical structure of a
public nature and use which public entities are.traditionally authorized to
construct, acquire, operate, maintain and improve in the furtherance of public
purposes, including interests in real property, equipment, furnishings and
other appurtenances which are incidental thereto.
"State" means the State of California.
3.42.050 Establishment of Board.
A. There is hereby created and established within the City of San Luis
Obispo a public body corporate and politic known as the City of San Luis Obispo
Capital Improvement Board, a public facilities financing authority.
B. The Board shall hold meetings at such times as it shall determine.
The concurring votes of three members of the governing body of the Board shall
be required for the taking of action.
C. The members of the Council shall act ex officio as the governing body
of the Board. At its organizational meeting the Board shall adopt by -laws govern-
ing the conduct of its affairs in any manner deemed advisable by the Board and
not inconsistent with the terms of this Chapter. Such by -laws may be amended
from time to time by the governing body of the Board.
D. At least once annually the Board shall prepare and make available to
interested members of the public a statement of all its financial affairs,
audited by independent certified public accountants.
E. The Council may order the dissolution of the Board if the Board has
no outstanding indebtedness and is not a party to any outstanding material
contracts, and if the unanimous written consent of the members of the Board
is first obtained.
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3.42.060 Powers of the Authoritv.
A. Corporate powers.
The Board may:
(1) Sue and be sued, have a seal, and make and execute contracts and
other instruments necessary or convenient to the exercise of its powers.
(2) Make, and from time to time amend and repeal, bylaws and regula-
tions not inconsistent with this Chapter to carry into effect the powers and
purposes hereof.
(3) Select and appoint or remove such permanent and temporary officers,
agents, counsel and employees, as it requires, and may determine their quali-
fications, duties, and compensation. The powers of the Board under this sub-
division are subject to all limitations and rights applicable to similar employment
by the City, unless by resolution the Council otherwise determines.
B. Acquisition and disposal of property; facilities; insurance.
The Board may:
(a) Purchase, lease, obtain option upon, acquire by gift, grant,
bequest, devise, or otherwise, any real or personal property within the City,
or any interest in, or improvements on, such property.
(b) Sell, lease, exchange, transfer, assign, encumber (by mortgage,
deed of trust, or otherwise) or otherwise dispose of any real or personal
property or any interest in such property.
(c) Insure any of its real or personal property or operations against
risks or hazards.
C. Maintenance and management.
The Board may acquire, construct, rent, lease, maintain, repair, manage
and operate all or any portion of any real and personal property, including
the leasing of the operation of the property, and the leasing for commercial
purposes of surplus space or space which it is not economic to use for public
purposes. Leases may be negotiated without competitive bidding or awarded
after competitive bidding in such manner as may be established by the Board.
D. Construction, acquisition, maintenance and improvement of public
facilities and improvements.
The Board may do any act to construct, acquire, maintain and improve public
facilities and improvements within the City, to devote such facilities and
improvements to uses and activities consistent with the public purposes of this
Chapter and to acquire and construct such facilities and improvements on real
property owned, controlled, or operated by it, or on property leased by it from
the City, as may be necessary or appropriate to such uses and activities.
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E. Receipt and expenditure of funds.
The Board may receive, control, and order the expenditure of any and all
money and funds pertaining to public facilities and improvements or related
properties, including but not limited to:
(a) All revenue derived from operations of the Board.
(b) All money appropriated or made available by the City for such
purpose.
(c) The proceeds of all financial aid or assistance by the State of
the Federal governemnt.
(d) The proceeds of all Bonds issued pursuant to this Chapter.
(e) The proceeds of all bonds or other obligations issued by the
City for public facilities or improvements.
F. Investments.
The Board may invest funds held in reserve or sinking funds, or funds not
required for immediate disbursement, in property or securities in which cities
may legally invest funds subject to their control under the laws of the State.
No such investment shall be made in contravention of any covenant or agreement
with the holders of any Bonds of the Authority issued and outstanding.
G. Borrowing.
The Board may borrow money or accept financial or other assistance from
the City, the State, the Federal government, or any other source for or in aid
of any public facility or improvements within the City, and to such ends may
comply with any conditions attached thereto.
H. Exercise of powers.
The Board may exercise all or any part or combination of the powers granted
by this Chapter.
I. Necessary or convenient'acts.
The Board may do and perform any and all other acts and things necessary,
convenient, desirable, or appropriate to carry out the provisions of this
Chapter.
J. Use of services and facilities of Citv.
In order that there may be no unnecessary duplication of effort or expense,
the Board may provide for the furnishing of services by, and the use of facili-
ties of, any department, office or agency of the City in lieu of, or in conjunc-
tion with, the direct provision by the Board of services and the use of facilities
through employment or purchase or other means. The furnishing of such services
and the use of such facilities of any such department, office or agency shall be
upon such terms and conditions as may be approved by the Board and the Council.
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3.42.070 Revenue Bonds.
A. Power to Borrow and'Issue'Bonds: Nature of Bonds.
The Board shall have the power to borrow money to provide funds for any
project and to issue in its name revenue bonds to evidence the indebtedness
created by such borrowing. The Bonds of each issue shall constitute special
obligations, and evidence a special indebtedness, of the Authority, and shall
be a charge upon and payable solely from such revenues and funds as are speci-
fied therein and in the proceedings for their issuance. Such Bonds shall not
constitute obligations nor evidence any indebtedness of the City.
B. Recitals.
All such Bonds shall recite upon their face, in substance, that they
constitute special obligations, and evidence a special indebtedness, of the
Board, payable, both as principal and interest, and as to any premiums upon
the redemption of any thereof, solely from such revenues and funds as are
specified therein and in the proceedings for their issuance, and shall also
recite upon their face that they are issued under this Chapter.
C. Types of Bonds; sources of payment.
The Board may issue such types of Bonds as it determines, including Bonds
on which the principal and interest are payable:
(1) Exclusively from the income and revenue of the facilities or
improvements financed with the proceeds of the Bonds,.or with such proceeds
and financial assistance from the State or Federal governments or from any
other source in aid of such projects.
(2) Exclusively from the income and revenue of certain designated
facilities or improvements, whether or not such facilities were financed in
whole or in part with the proceeds of the Bonds, and including income or revenue
from any future extension, betterment, or addition to any such facilities
thereafter to be established.
(3) From its revenues generally, including revenue from the leasing
of public facilities and improvements owned or leased to it.
(4) From any contributions or other financial assistance from the
City, the State or Federal governments, or from any other source.
(5) From any combination of these sources.
D. Terms and conditions.
Except as limited by express provision of this Chapter, the Board, by
resolution, or by trust indenture, contract, or other agreement with or for
the benefit of the Bondholders, may determine all the terms and conditions
of each issue, series, or division of Bonds and of their sale and issuance,
and all matters necessary or appropriate in connection with the Bonds.
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E. Contract with Bondholders.
The Board may provide that any resolution, trust agreement or indenture
adopted or entered into in connection with the authorization of any Bonds shall
constitute a contract with the holders of such Bonds, not subject to repeal,
and not subject to any modification other than to the extent and in a manner
provided in any such resolution.
F. Covenants and agreements.
The Board may provide for such covenants and agreement on the part of the
Board as it.deems necessary or advisable for the better security of any Bonds.
G. Provisions for security and marketability.
The Board may provide for such other acts and matters as it may deem to
be necessary, convenient, or desirable to secure the Bonds or to make them
more marketable.
H. Issuance and sale of Bonds.
The Bonds may be issued and sold as the Board determines and directs, at
public or private sale, at or below their par value and at a rate of interest
not to exceed the rate determined by the Authority in the resolution providing
for the issuance thereof. The Bonds shall be payable at the times and in the
amounts determined by the Board in said resolution.
Without limiting the generality of the foregoing, the Bonds may also be
issued directly to the seller of land, improvements or property acquired for
Board purposes, as all or part of the purchase price thereof, on such terms
as may be established by the agreement for acquisition.
3.42.080 Validating proceedings.
An action to determine the validity of any Bonds issued by the Board under
this Chapter or of any contracts entered into by the Board under this Chapter
may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10
of Part 2 of the Code of Civil Procedure.
3.42.090 Liberal Construction.
This Chapter, being necessary for the health, welfare and safety of the
City and its residents, shall be liberally construed to effect its purposes.
Furthermore, the Council hereby declares that this Chapter 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.
3.42.100 Partial Invalidity.
If any Section, paragraph, sentence, clause or phrase of this Chapter
shall for any reason be held illegal or ,unenforceable, such holding shall not
affect the validity of the remaining portions of this Chapter. The Council .
hereby declares that it would have adopted this Chapter and each and every other
Section, paragraph, sentence, clause or phrase hereof and authorized the proceed-
ings authorized to be taken pursuant thereto irrespective of the fact that any
one or more S'.ections, paragraphs, sentences, clauses or phrases of this Chapter
may be held illegal, invalid or unenforceable.
SECTION 2. This Ordinance, together with the ayes and noes, shall be
published once in full, at least three (3) days prior to its final passage in
the Telegram- Tribune, a newspaper published and circulated in said City, and
the same shall go into effect at the expiration of thirty (30) days after its
said final passage.
INTRODUCED AND PASSED TO PRINT by the Council of the City of San Luis
Obispo at a meeting held on the lst. day of April , 1986, on motion of
Councilman.Settle , seconded by Councilwoman Rappa , and on the
following roll call vote:
AYES: Councilmembers Settle, Rappa, Griffin and Mayor Dunin
NOES: Councilwoman Dovey
ABSENT: None
ATTEST:
CITY CLERK P
APPROVED:
MAYOR RON DUNIN
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ORDINANCE NO.
1059
(19 86
Series)
FINALLY
PASSED this 15th
day of April
,
1986, on motion of Councilwoman Rappa , seconded by
Councilman Settle , and on the following roll call
vote:
AYES: Councilmembers Rappa, Settle, Griffin and Mayor Dunin
NOES: Councilwoman Dovey
ABSENT: None
May on Dunin
ATTEST:
ty Clerk PameAa Voges