Chapter 16.20
PUBLIC AUTHORITIES
Sections:
Article I. General Provisions and Definitions
16.20.010 Public uses and purposes.
16.20.020 Legislative finding and declaration.
16.20.030 Purpose.
16.20.040 Municipal affair.
16.20.050 Effect of chapter upon other law.
16.20.060 Exercise of powers by the City.
16.20.070 Application of planning, zoning, etc., laws and ordinances.
16.20.080 Partial invalidity.
16.20.090 Effect of definitions.
16.20.100 Authority.
16.20.110 Obligee of authority – Obligee.
16.20.120 State public body.
16.20.130 Project.
16.20.140 Open space land.
Article II. Sports and Open Space Authority
16.20.150 Establishment.
16.20.160 Resolution of need for authority to function.
16.20.170 Determination of need.
16.20.180 Evidence of establishment and authorization.
16.20.190 City exercising powers of authority – Resolution.
16.20.200 Resolutions – Adoption – Contents.
16.20.210 Meetings – Vote necessary to act.
16.20.220 City Council as authority.
16.20.230 Council as authority – Meeting expenses.
16.20.240 Appropriation for administrative expenses.
16.20.250 Reports.
16.20.260 Financial statements – Publication.
16.20.270 Failure to function – Suspension of authority.
16.20.280 Restoration of authority – Members.
16.20.290 Winding up affairs.
16.20.300 Transfer to City.
16.20.310 Order for dissolution.
Article III. Powers
16.20.320 Corporate powers.
16.20.330 Acquisition and disposal of property – Facilities – Insurance.
16.20.340 Maintenance and management.
16.20.350 Lease of surplus space.
16.20.360 Establishment and operation of open space.
16.20.370 Receipt and expenditure of funds.
16.20.380 Investments.
16.20.390 Borrowing.
16.20.400 Exercise of powers.
16.20.410 Necessary or convenient acts.
16.20.420 Use of services and facilities of City.
16.20.430 Managing agency agreements.
16.20.440 Grants and loans for public purposes.
Article IV. Revenue Bonds
16.20.450 Bonds.
16.20.460 Power to borrow and issue bonds – Nature of bonds.
16.20.470 Recitals.
16.20.480 Types of bonds – Sources of payment.
16.20.490 Additional sources of payment.
16.20.500 Terms and conditions.
16.20.510 Provision for principal – Maturities – Interest – Denominations, etc.
16.20.520 Resolution as contract with bondholders.
16.20.530 Resolutions and contracts –Incorporation into bonds by reference – Rights of subsequent holders.
16.20.540 Covenants and agreements.
16.20.550 Covenants – Punctual payment.
16.20.560 Covenants – Operation of facilities.
16.20.570 Covenants – Repairs, renewals and replacements.
16.20.580 Covenants, discharge of claims, charges, and liens.
16.20.590 Covenants – Limitation on right to encumber, sell or lease.
16.20.600 Covenants – Revenues charged with payments of bonds.
16.20.610 Covenants – Reserve, sinking, and other special funds – Use of money in funds.
16.20.620 Covenants – Proceeds of bonds.
16.20.630 Covenants – Additional indebtedness.
16.20.640 Covenants – Insurance.
16.20.650 Acceleration of maturity – Terms and conditions.
16.20.660 Breach of covenant, condition, or obligation – Effect.
16.20.670 Amendment, modification, or waiver of conditions – Bondholders' meetings.
16.20.680 Amendment, modification, or waiver of conditions – Bonds held by interested parties.
16.20.690 Provisions for security and marketability.
16.20.700 Trustee – Designation – Authority.
16.20.710 Trustee – Handling of funds.
16.20.720 Trustee – Duties and powers.
16.20.730 Series, divisions, maturities, interest rates – Issuance of other bonds.
16.20.740 Variance in bonds of same issue.
16.20.750 Call and redemption.
16.20.760 Place of payment – Coin or currency.
16.20.770 Signatures.
16.20.780 Signatures – Continuing validity.
16.20.790 Serial or sinking fund type maximum maturity – Calculation of maturity.
16.20.800 Issuance and sale of bonds.
16.20.810 Determination of amount.
16.20.820 Interest – Payment from proceeds of sale of bonds.
16.20.830 Interest and principal as charge upon revenues.
16.20.840 Temporary bonds, certificates, etc.
16.20.850 Refunding bonds.
16.20.860 Refunding bonds – Amount issuable.
16.20.870 Negotiability.
16.20.880 Validating proceedings.
Article V. Rates, Fees and Charges
16.20.890 Covenants – Duty to perform.
Article VI. Rights of Obligees
16.20.900 Enforcement of rights.
Article I. General Provisions and Definitions
16.20.010 Public uses and purposes.
The planning, maintaining, improving, protecting, limiting the future use of or otherwise conserving open spaces and areas within the city and the performance of all undertakings incidental or advantageous thereto are public uses and purposes for which public money may be spent and private property acquired, and are governmental functions. (Ord. 1296 § 1, 10-8-74. Formerly § 16-200).
16.20.020 Legislative finding and declaration.
The Council finds and declares as follows:
(a) That the preservation of open space land, as defined in this chapter, is necessary for the assurance of the continued availability of land for the enjoyment of scenic beauty, for recreation and for the use of natural resources.
(b) That discouraging premature and unnecessary conversion of open space land to urban uses is a matter of public interest and will be of benefit to City residents because it will discourage noncontiguous development patterns which unnecessarily increase the costs of City services to City residents.
(c) That the anticipated increase in the population of the City demands that the City at the earliest possible date make definite plans for the preservation of valuable open space land and take positive action to carry out such plans by the adoption and strict administration of laws, ordinances, rules and regulations as authorized by this chapter or by other appropriate methods.
(d) That in order to assure that the interests of all its people are met in the orderly growth and development of the City and the preservation and conservation of its resources, it is necessary to provide for the development by the City of coordinated plans for the conservation and preservation of open space lands.
(e) That for these reasons this chapter is necessary for the promotion of the general welfare and for the protection of the public interest in open space land. (Ord. 1296 § 1, 10-8-74. Formerly § 16-201).
16.20.030 Purpose.
It is the purpose of the Council in enacting this chapter to recognize that open space land is a limited and valuable resource which must be conserved wherever possible and to establish procedures for the creation of an authority which will prepare and carry out open space plans which, along with State and regional open space plans, will accomplish the objectives of a comprehensive open space program, as contemplated by Article 10.5, (commencing with Section 65560) of Chapter 3 of Title 7 of the Government Code of the State of California. This article is adopted in furtherance of the objectives of said Article 10.5. (Ord. 1296 § 1, 10-8-74. Formerly § 16-202).
16.20.040 Municipal affair.
The activities set forth in SCCC 16.20.010 are a municipal affair, necessary and appropriate to a municipal corporation and the general welfare of its inhabitants, and not prohibited by the Constitution of the State of California nor by the City Charter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-203).
16.20.050 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 governing the subject to which it relates, and it shall not abridge, modify or otherwise affect the right of the City to exercise any power given to it by the Constitution or any other law. (Ord. 1296 § 1, 10-8-74. Formerly § 16-204).
16.20.060 Exercise of powers by the City.
The City may exercise any or all of the powers granted to the authority by this chapter alone, or in combination with powers granted by any other law relative to sports and open space facilities. (Ord. 1296 § 1, 10-8-74. Formerly § 16-205).
16.20.070 Application of planning, zoning, etc., laws and ordinances.
Sports and open space facilities of the authority are subject to the planning, zoning, sanitary, and building laws, ordinances, and regulations applicable to the locality in which they are situated. In the planning and location of any such facility, the authority is subject to the relationship of the facility to any officially adopted master plan or sections of such master plan for the development of the area in which the authority functions to the same extent as if it were a private entity. (Ord. 1296 § 1, 10-8-74. Formerly § 16-206).
16.20.080 Partial invalidity.
If any provision of this chapter, or its application to any person or circumstance, is held invalid, the remainder of the chapter, or the application of such provision to other persons or circumstances, shall not be affected thereby. (Ord. 1296 § 1, 10-8-74. Formerly § 16-207).
16.20.090 Effect of definitions.
Unless the context otherwise requires, the definitions set forth in this part govern the construction of this chapter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-208).
16.20.100 Authority.
"Authority" means the public corporation created by Article II of this chapter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-209).
16.20.110 Obligee of authority – Obligee.
"Obligee of the authority" or "obligee" means any of the following:
(a) Any bondholder or trustee for any bondholders.
(b) Any lessor demising to the authority property used in connection with a sports or open space facility or any assignee of all or part of such lessor's interest.
(c) The State or the United States, or any agency of either, when a party to any contract with the authority by which aid or a loan is given or made to the authority. (Ord. 1296 § 1, 10-8-74. Formerly § 16-210).
16.20.120 State public body.
"State public body" means the State, or any city, city and county, county, district, authority, or any other subdivision or public body of the State. (Ord. 1296 § 1, 10-8-74. Formerly § 16-211).
16.20.130 Project.
"Project" means any acquisition, improvement, construction, or undertaking of any kind authorized by this chapter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-212).
16.20.140 Open space land.
"Open space land" is any parcel or area of land or water which is essentially unimproved and devoted to an open space use as defined in this section, and which is designated on a local (including redevelopment), regional, or State plan as any of the following:
(a) Open space for the preservation of natural resources including, but not limited to, areas required for the preservation of plant and animal life, including habitat for fish and wildlife species; areas required for ecologic and other scientific study purposes; rivers, streams, bays and estuaries; and coastal beaches, lakeshores, banks of rivers and streams, and watershed lands.
(b) Open space used for the managed production of resources including, but not limited to, forest lands, rangeland, agricultural lands and areas of economic importance for the production of food or fiber; areas required for recharge of groundwater basins; bays, estuaries, marshes, rivers and streams which are important for the management of commercial fisheries; and areas containing major mineral deposits, including those in short supply.
(c) Open space for outdoor recreation including, but not limited to, areas of outstanding scenic, historic and cultural value; areas particularly suited for park and recreation purposes, including recreational or theme parks and related facilities, outdoor sports activities such as golf, and access to lakeshores, beaches, and rivers and streams; and areas which serve as links between major recreation and open space reservations, including utility easements, banks of rivers and streams, trails, and scenic highway corridors.
(d) Open space for public health and safety including, but not limited to, areas which require special management or regulation because of hazardous or special conditions such as earthquake fault zones, unstable soil areas, floodplains, watersheds, areas presenting high fire risks, areas required for the protection of water quality and water reservoirs and areas required for the protection and enhancement of air quality. (Ord. 1296 § 1, 10-8-74; Ord. 1501 § 1, 7-3-84. Formerly § 16-213).
Article II. Sports and Open Space Authority
16.20.150 Establishment.
There is in the City a public body corporate and politic known as the Sports and Open Space Authority of the City. (Ord. 1296 § 1, 10-8-74. Formerly § 16-220).
16.20.160 Resolution of need for authority to function.
The authority shall not transact any business or exercise any powers unless and until the City Council by resolution declares that there is need for the authority to function in the City. (Ord. 1296 § 1, 10-8-74. Formerly § 16-221).
16.20.170 Determination of need.
The determination that there is need for an authority to function may be made by the City Council on its own motion, or upon the filing of a petition signed by one hundred (100) residents of the City, asserting that there is need for an authority to function in the City and requesting that the City Council so declare. (Ord. 1296 § 1, 10-8-74. Formerly § 16-222).
16.20.180 Evidence of establishment and authorization.
In any suit, action, or proceeding by or against or in any manner relating to the authority, the authority shall be conclusively deemed to have become established and authorized to transact business and exercise its powers upon proof of the adoption of the resolution by the City Council declaring the need for the authority to function. (Ord. 1296 § 1, 10-8-74. Formerly § 16-223).
16.20.190 City exercising powers of authority – Resolution.
A City shall not transact any business or exercise any powers pursuant to SCCC 16.20.060 unless and until the City Council declares by resolution that there is need for the City to exercise the powers of a Sports and Open Space Authority. (Ord. 1296 § 1, 10-8-74. Formerly § 16-224).
16.20.200 Resolutions – Adoption – Contents.
Either or both resolutions provided for in this part may be adopted by the City Council. If both resolutions are adopted, they shall clearly specify the areas within the city within which, or the projects over which, the authority and the City, respectively, are to have jurisdiction and control. The division of jurisdiction and control shall be as specified, but may be changed from time to time to such extent as is consistent with obligations to bondholders by action of both the City Council and the authority. (Ord. 1296 § 1, 10-8-74. Formerly § 16-225).
16.20.210 Meetings – Vote necessary to act.
The authority shall hold meetings at such times as it shall determine. The concurring votes of four members of the authority shall be required for the taking of any action. (Ord. 1296 § 1, 10-8-74; Ord. 1578 § 1, 11-10-87. Formerly § 16-226).
16.20.220 City Council as authority.
The City Council shall be the Sports and Open Space Authority. The City Council may, at the time of the adoption of a resolution pursuant to SCCC 16.20.160, declare itself to be the authority, and all the rights, powers, duties, privileges, and immunities vested by this chapter in the authority shall be vested in the City Council as the Sports and Open Space Authority. (Ord. 1296 § 1, 10-8-74. Formerly § 16-227).
16.20.230 Council as authority – Meeting expenses.
If the City Council has declared itself to be the authority pursuant to SCCC 16.20.220, each member of the authority shall receive a meeting expense fee for each meeting of the authority attended by the member in the amount per meeting established for attendance of meetings by members of the redevelopment agency of the City pursuant to the Community Redevelopment Law. (Ord. 1578 § 1, 11-10-87. Formerly § 16-227.1).
16.20.240 Appropriation for administrative expenses.
At the time the authority becomes authorized to transact business and exercise its powers, and from time to time thereafter, the City Council, subject to its fiscal law, may make an estimate of the amount of money required for administrative purposes of the authority, and appropriate such amounts to the authority as it deems necessary, subject to such conditions as it prescribes. (Ord. 1296 § 1, 10-8-74. Formerly § 16-228).
16.20.250 Reports.
Annually, the authority shall prepare a detailed report of all its transactions, including a statement of all revenues and expenditures. (Ord. 1296 § 1, 10-8-74. Formerly § 16-229).
16.20.260 Financial statements – Publication.
At least once annually the authority shall publish a statement of all its financial affairs, audited by independent certified public accountants. The statement shall be published in a newspaper of general circulation, published in the City, or if none is so published then in such newspaper of general circulation as the authority may deem most likely to give notice to the residents of the City. (Ord. 1296 § 1, 10-8-74. Formerly § 16-230).
16.20.270 Failure to function – Suspension of authority.
If within four years after the adoption of a resolution declaring the need for an authority to function in a City, the authority has not acquired or entered into possession of land for a sports or open space facility, issued bonds, or entered into any contract for the acquisition, construction, or operation of such a facility, the City Council by resolution may declare that there is no need for the authority to function in the City. Upon the adoption of such resolution, the offices of the members of the authority become vacant and the capacity of the authority to transact business or exercise any power is suspended until the City Council again adopts a resolution declaring the need for the authority to function. (Ord. 1296 § 1, 10-8-74. Formerly § 16-231).
16.20.280 Restoration of authority – Members.
Upon the termination of any such suspension by the adoption of such resolution declaring the need for the authority to function, proceedings for the organization and activation of the authority shall be had and taken as if such resolution were the original resolution declaring need for a Sports and Open Space Authority to function provided for by SCCC 16.20.160. (Ord. 1296 § 1, 10-8-74. Formerly § 16-232).
16.20.290 Winding up affairs.
After adoption of a resolution declaring there is no need for an authority to function, and while it is in effect, the City Council may wind up the affairs of the authority and has title to all property of the authority for such purpose and for the benefit of the City. (Ord. 1296 § 1, 10-8-74. Formerly § 16-233).
16.20.300 Transfer to City.
At any time after the activation of the authority, the City Council by a two-thirds vote may adopt a resolution transferring the property of the authority to the City, and the City may, through such department, board, officer, or agency, as it determines, exercise its powers in regard to such property by virtue of the Constitution, its Charter, this chapter or any general law. No such transfer shall be made in contravention of any covenant or agreement made with the holders of bonds of the authority issued and outstanding. (Ord. 1296 § 1, 10-8-74. Formerly § 16-234).
16.20.310 Order for dissolution.
The City Council may order the dissolution of the authority if the authority has no outstanding bonded indebtedness, and if the unanimous written consent of the members of the authority is first obtained. (Ord. 1301 § 1, 11-19-74. Formerly § 16-235).
Article III. Powers
16.20.320 Corporate powers.
The authority may:
(a) Sue and be sued, have a seal, and make and execute contracts and other instruments necessary or convenient to the exercise of its powers.
(b) Make, and from time to time amend and repeal, bylaws and regulations not inconsistent with this chapter to carry into effect the powers and purposes hereof.
(c) Select and appoint or remove such permanent and temporary officers, agents, counsel, and employees, as it requires, and may determine their qualifications, duties, and compensation. The powers of the authority under this article are subject to all limitations and rights applicable to similar employment by the City, unless by resolution the City Council otherwise determines. (Ord. 1296 § 1, 10-8-74. Formerly § 16-250).
16.20.330 Acquisition and disposal of property – Facilities – Insurance.
The authority 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. (Ord. 1296 § 1, 10-8-74. Formerly § 16-251).
16.20.340 Maintenance and management.
The authority 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 open space purposes; provided, that such leasing, in any transaction financed on a tax exempt basis, shall be restricted to less than a major portion of the property acquired or constructed on such basis, as now or hereafter defined by Federal law or applicable regulation. Leases may be negotiated without competitive bidding or awarded after competitive bidding in such manner as may be established by the authority. (Ord. 1296 § 1, 10-8-74; Ord. 1301 § 2, 11-19-74. Formerly § 16-252).
16.20.350 Lease of surplus space.
Neither the authority nor the City shall manage or operate surplus space devoted to commercial purposes, but shall lease such space to private operators. (Ord. 1296 § 1, 10-8-74. Formerly § 16-253).
16.20.360 Establishment and operation of open space.
The authority may do any act to acquire and maintain open space within the city, to devote such open space to uses and activities consistent with the purposes of this chapter and to acquire and construct such improvements on open space owned, controlled, or operated by it as may be necessary or appropriate to such uses and activities. (Ord. 1296 § 1, 10-8-74. Formerly § 16-254).
16.20.370 Receipt and expenditure of funds.
The authority may receive, control, and order the expenditure of any and all money and funds pertaining to sports or open space facilities or related properties, including but not limited to:
(a) All revenue derived from operations of the authority.
(b) All money appropriated or made available by the City.
(c) The proceeds of all financial aid or assistance by the City, the State, or the Federal government.
(d) The proceeds of assessments levied by the City.
(e) The proceeds of all bonds issued pursuant to this chapter.
(f) The proceeds of all general obligation, revenue, or other bonds issued by the City for sports or open space facilities. (Ord. 1296 § 1, 10-8-74. Formerly § 16-255).
16.20.380 Investments.
The authority 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. 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. (Ord. 1296 § 1, 10-8-74. Formerly § 16-256).
16.20.390 Borrowing.
The authority 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 sports or open space facility within its area of operation, and to such ends may comply with any conditions attached thereto. (Ord. 1296 § 1, 10-8-74. Formerly § 16-257).
16.20.400 Exercise of powers.
The authority may exercise all or any part or combination of the powers granted by this chapter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-258).
16.20.410 Necessary or convenient acts.
The authority may do and perform any and all other acts and things necessary, convenient, desirable, or appropriate to carry out the provisions of this chapter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-259).
16.20.420 Use of services and facilities of City.
In order that there may be no unnecessary duplication of effort or expense, the authority may provide for the furnishing of services by, and the use of facilities of, any department, office or agency of the City in lieu of, or in conjunction with, the direct provision by the authority 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 authority and the City Council, and subject to reimbursement of the appropriate funds of the City for the reasonable value thereof. The City Council may, from time to time, by resolution, provide for the making by the authority to the City, annually, of a payment, the amount of which shall be determined in a manner provided by such City Council, but which shall not exceed the amount the authority would be required to pay to the City in ad valorem taxes if it were a private entity owning the same property. (Ord. 1296 § 1, 10-8-74. Formerly § 16-260).
16.20.430 Managing agency agreements.
Whenever the authority determines that the management and operation of any facility authorized hereunder is so complex and specialized as to require that it be accomplished by specially qualified persons, it may make and enter into managing agency agreements with competent persons, firms or corporations specially trained and experienced to render such services, subject to retention of such controls over rates and use of the facility as are necessary or desirable to assure its operation as a public municipal sports or open space facility. (Ord. 1296 § 1, 10-8-74. Formerly § 16-261).
16.20.440 Grants and loans for public purposes.
The authority may make grants or loans of money or property to the redevelopment agency, housing authority, parking authority or any other agency or authority of the City, or to the City itself, to facilitate the accomplishment of any public purpose, subject to such terms and conditions as may be established by the authority. Such public purposes may be carried out and accomplished by the entity to which such grant or loan was made without limitation or restriction by reason of the existence of such grant or loan, other than such as may be established by such terms and conditions. (Ord. 1466 § 1, 2-15-83. Formerly § 16-262).
Article IV. Revenue Bonds
16.20.450 Bonds.
As used in this chapter, "bonds" means revenue bonds issued pursuant to this article. (Ord. 1296 § 1, 10-8-74. Formerly § 16-275).
16.20.460 Power to borrow and issue bonds – Nature of bonds.
The authority shall have power to borrow money to provide funds for any project, including without limitation funds for the purpose of making grants or loans pursuant to SCCC 16.20.440, 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, which shall be a charge upon, and 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 not constitute obligations nor evidence any indebtedness of the City. (Ord. 1466 § 1, 2-15-83. Formerly § 16-276).
16.20.470 Recitals.
All such bonds shall recite upon their face, in substance, that the bonds of each issue shall constitute special obligations, and evidence a special indebtedness, of the authority, which shall be a charge upon, and 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 not constitute obligations, nor evidence any indebtedness, of the City and shall also recite upon their face that they are issued under this chapter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-277).
16.20.480 Types of bonds – Sources of payment.
An authority may issue such types of bonds as it determines, including bonds on which the principal and interest are payable:
(a) Exclusively from the income and revenue of the facilities 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.
(b) Exclusively from the income and revenue of certain designated facilities, 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.
(c) From its revenues generally.
(d) From any contributions or other financial assistance from the City, the State or Federal governments, or from any other source.
(e) From any combination of these sources. (Ord. 1296 § 1, 10-8-74. Formerly § 16-278).
16.20.490 Additional sources of payment.
Nothing in this chapter nor in the specification, in the proceedings for the issuance of any bonds, of the sources of payment thereof, shall preclude any of the following:
(a) The payment of interest on or principal of any such bonds out of sums received as premiums or accrued interest on the sale thereof.
(b) The payment of principal of or interest on, or premiums on the redemption of, any such bonds out of the proceeds of the sale of refunding bonds issued for that purpose.
(c) The payment of any interest on any such bonds accruing during, and for not to exceed two years after, the period of the construction of a project on account of which they were issued, or for any other reasonably limited period, out of the proceeds of the sale of such bonds.
(d) The payment of any principal of, interest on, or premiums on the redemption of, any such bonds by the purchasers thereof, or by any entity other than the authority issuing the same in any case where such purchasers or entity may have guaranteed such payment.
(e) The application to the payment of any principal of, interest on, or premiums on the redemption of, any such bonds of any funds which the authority may lawfully so apply. (Ord. 1296 § 1, 10-8-74. Formerly § 16-279).
16.20.500 Terms and conditions.
Except as limited by express provision of this chapter, the authority, by resolution, or by 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. (Ord. 1296 § 1, 10-8-74. Formerly § 16-280).
16.20.510 Provision for principal – Maturities – Interest – Denominations, etc.
The authority may provide for the aggregate principal amount, date or dates, maturities, interest rate or rates, interest payment dates, denominations and form of such bonds, and may provide for the issuance thereof as serial bonds or sinking fund bonds, as payable to bearer or to named payees, or as registered bonds, and for the issuance thereof with or without coupons, and for the subsequent registration of bonds, and for all other terms and conditions upon which they shall be executed, issued, secured, sold, paid, redeemed, funded, and refunded. (Ord. 1296 § 1, 10-8-74. Formerly § 16-281).
16.20.520 Resolution as contract with bondholders.
The authority may provide that any resolution or resolutions adopted 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. (Ord. 1296 § 1, 10-8-74. Formerly § 16-282).
16.20.530 Resolutions and contracts –Incorporation into bonds by reference – Rights of subsequent holders.
Reference on the face of the bonds to any such resolution by the date of its adoption, or to any such contract or other agreement by the date of its execution, or the apparent date on the face thereof, is sufficient to incorporate all of the provisions of the contract or agreement into the body of the bonds and their appurtenant coupons. Each taker and subsequent holder of the bonds or coupons, whether the coupons are attached to or detached from the bonds, has recourse to all of the provisions of the indenture and is bound thereby. (Ord. 1296 § 1, 10-8-74. Formerly § 16-283).
16.20.540 Covenants and agreements.
The authority may provide for such covenants and agreements on the part of the authority as it deems necessary or advisable for the better security of any bonds. (Ord. 1296 § 1, 10-8-74. Formerly § 16-284).
16.20.550 Covenants – Punctual payment.
The authority may provide for the making of a covenant requiring the authority to pay punctually the principal and interest on any bonds on the date or dates, at the place or places, and in the manner mentioned in the bonds and coupons in accordance with their terms. (Ord. 1296 § 1, 10-8-74. Formerly § 16-285).
16.20.560 Covenants – Operation of facilities.
The authority may provide for the making of a covenant requiring the authority to continuously operate in an efficient and economical manner any or all facilities and properties any revenues of which are charged with the payment of any bonds in connection with which such covenant is made. (Ord. 1296 § 1, 10-8-74. Formerly § 16-286).
16.20.570 Covenants – Repairs, renewals and replacements.
The authority may provide for the making of a covenant requiring the authority to make all repairs, renewals and replacements necessary to the operation of any or all facilities and properties any revenues of which are charged with the payment of any bonds in connection with which such covenant is made, and to keep any and all such facilities and property at all times in good repair. (Ord. 1296 § 1, 10-8-74. Formerly § 16-287).
16.20.580 Covenants, discharge of claims, charges, and liens.
The authority may provide for the making of a covenant requiring the authority to pay and discharge from the funds available for that purpose all lawful claims for labor, materials and supplies, or other charges which if unpaid may become a lien or charge upon all or any part of the revenue, any facilities or properties, revenues charged with the payment of any bonds in connection with which the covenant is made, or physical properties of the project which may impair the security of the bonds. (Ord. 1296 § 1, 10-8-74. Formerly § 16-288).
16.20.590 Covenants – Limitation on right to encumber, sell or lease.
The authority may provide for the making of a covenant which limits, restricts, or prohibits the power of the authority to mortgage or otherwise encumber, sell, lease, or dispose of any or all facilities and properties, any revenues of which are charged with the payment of any bonds in connection with which the covenant is made, or to enter into any lease or agreement which might impair or impede the operation of such facilities or properties, or any part thereof, or might otherwise impair or impede the rights of bondholders with respect to such revenues. (Ord. 1296 § 1, 10-8-74. Formerly § 16-289).
16.20.600 Covenants – Revenues charged with payments of bonds.
The authority may provide for the making of a covenant requiring the authority to fix, prescribe and collect, with respect to any or all properties, any revenues of which are charged with the payment of any bonds in connection with which such covenant is made, fees, tolls, rentals or other charges in connection with the services and facilities furnished from any such properties operated by it, and to fix and collect rentals or other charges for any such properties leased by it to others for operation, sufficient, with such other funds as may have been made available for and charged with such payment, to pay the principal of and interest on such bonds as they become due and payable, together with all expenses of operation, maintenance and repair of such facilities and properties, and with such additional sums as may be required for any sinking fund, reserve fund or other special fund provided for the further security of such bonds or as a depreciation charge or other charge in connection with such facilities and properties, and all other charges payable out of any revenues charged with the payment of the bonds.
The authority may also provide for the making of a covenant requiring the fixing and prescribing by it and the collection by any lessee or operator of any or all facilities and properties, any revenues of which are charged with the payment of any bonds in connection with which such covenant is made, of all fees, tolls, rentals, or other charges in connection with the services and facilities furnished by such lessee or operator, sufficient to assure the payment by such lessee or operator to such authority of the rentals or other charges payable by such lessee or operator to such authority. (Ord. 1296 § 1, 10-8-74. Formerly § 16-290).
16.20.610 Covenants – Reserve, sinking, and other special funds – Use of money in funds.
The authority may provide for the making of a covenant requiring the authority to provide for the establishment and maintenance of reserve funds, sinking funds, or other special funds in the City treasury or special trust accounts in a bank or trust company to insure payment, when due or payable, whether at maturity or upon redemption, of the principal of and interest on any bonds, including premiums, if any due, upon the redemption of any thereof, or to insure the application of the proceeds of such bonds to the purposes for which the same were issued, or for any other appropriate purpose. Any money placed in any such reserve, sinking, or other special fund or trust account shall constitute a trust fund and shall be applied only to the purposes for which it was created. (Ord. 1296 § 1, 10-8-74. Formerly § 16-291).
16.20.620 Covenants – Proceeds of bonds.
The authority may provide for the making of a covenant requiring it to apply the proceeds of the bonds in connection with which such covenant is made, or any part thereof, to the acquisition or construction of a specified facility, or other specified purpose. (Ord. 1296 § 1, 10-8-74. Formerly § 16-292).
16.20.630 Covenants – Additional indebtedness.
The authority may provide for the making of a covenant restricting the incurring of additional indebtedness payable in whole or in part out of revenues or funds which are charged with the payment of any bonds in connection with which such covenant is made. (Ord. 1296 § 1, 10-8-74. Formerly § 16-293).
16.20.640 Covenants – Insurance.
The authority may provide for the making of a covenant requiring it to carry insurance on any facilities or properties any revenues of which are charged with the payment of any bonds in connection with which such covenant is made, or any operations incident thereto, specifying or limiting the kind, amount and character of such insurance, and providing for the use and disposition of the proceeds of any such insurance thereafter collected. (Ord. 1296 § 1, 10-8-74. Formerly § 16-294).
16.20.650 Acceleration of maturity – Terms and conditions.
The authority may provide for the terms and conditions upon which any bonds may become or be declared due and payable prior to maturity, upon the happening of any specified event of default, and the terms and conditions upon which such declaration and its consequences may be waived. (Ord. 1296 § 1, 10-8-74. Formerly § 16-295).
16.20.660 Breach of covenant, condition, or obligation – Effect.
The authority may provide for the rights, limitations, powers, and duties arising upon breach by the authority of any of the covenants, conditions, or obligations contained in any resolution, contract, or agreement. (Ord. 1296 § 1, 10-8-74. Formerly § 16-296).
16.20.670 Amendment, modification, or waiver of conditions – Bondholders' meetings.
The authority may provide for a procedure by which certain specified terms and conditions of any resolution, contract, or agreement may be subsequently amended or modified, or any provision thereof waived, with the consent of the authority and the vote or written assent of the holders of a specified principal amount of the bonds issued and outstanding. Such provision may authorize meetings of bondholders and specify the manner in which the consent of the bondholders may be given. Such provision shall specifically state the effect of such amendment, modification, or waiver upon the rights of the holders of all of the bonds and interest coupons appertaining to the bonds, whether attached to or detached from the bonds. (Ord. 1296 § 1, 10-8-74. Formerly § 16-297).
16.20.680 Amendment, modification, or waiver of conditions – Bonds held by interested parties.
The provisions for such procedure may include an agreement that bonds held by the authority, the City, or by any other person or entity who or which the authority may determine to be so interested in the matter as to make it proper, shall not be counted as outstanding bonds, and that the holders thereof shall not be entitled to vote or assent with respect to such amendment, modification or waiver, but shall nevertheless be subject thereto. (Ord. 1296 § 1, 10-8-74. Formerly § 16-298).
16.20.690 Provisions for security and marketability.
The authority 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. (Ord. 1296 § 1, 10-8-74. Formerly § 16-299).
16.20.700 Trustee – Designation – Authority.
The authority may designate a bank or trust company as a trustee for the holders of bonds issued pursuant to this chapter and may authorize the trustee to act on behalf of the bondholders, and to exercise and prosecute on their behalf the rights and remedies available to them. (Ord. 1296 § 1, 10-8-74. Formerly § 16-300).
16.20.710 Trustee – Handling of funds.
The authority may fix and determine the conditions upon which any trustee shall receive, hold, or disburse any or all funds coming into its hands pursuant to any resolution, contract, or agreement. (Ord. 1296 § 1, 10-8-74. Formerly § 16-301).
16.20.720 Trustee – Duties and powers.
The authority may prescribe the duties and powers of any trustee respecting the payment of principal and interest on bonds, the redemption of bonds, the registration and discharge from registration of bonds, and the management of any sinking or other fund provided as security for bonds, and with respect to any other appropriate matter. (Ord. 1296 § 1, 10-8-74. Formerly § 16-302).
16.20.730 Series, divisions, maturities, interest rates – Issuance of other bonds.
The authority may provide for the issuance of bonds in series, and for the division of any issue into two or more divisions, and may fix different maturities or dates of such bonds, different rates of interest, or prescribe different terms and conditions for the bonds of the several series or divisions. After having authorized or issued bonds the authority may from time to time thereafter authorize and issue other bonds, subject to any covenants it may have made restricting the future issuance of bonds. (Ord. 1296 § 1, 10-8-74. Formerly § 16-303).
16.20.740 Variance in bonds of same issue.
All bonds of the same authorized issue need not be of the same kind or character, have the same security, or bear the same interest rate, but the terms of the bonds shall in each case be prescribed by the authority. (Ord. 1296 § 1, 10-8-74. Formerly § 16-304).
16.20.750 Call and redemption.
Bonds may be callable upon such terms, conditions, and notice as the authority determines, and upon the payment of the premium, if any, fixed by the authority in the proceedings for their issuance. No bond shall be subject to call or redemption prior to its fixed maturity date unless the right to exercise such call is expressly stated on its face. (Ord. 1296 § 1, 10-8-74. Formerly § 16-305).
16.20.760 Place of payment – Coin or currency.
The authority may provide for the payment of the principal and interest of bonds at any place within the State, or for the payment or collection of such principal without the State, and in any specified coin or currency of the United States. (Ord. 1296 § 1, 10-8-74. Formerly § 16-306).
16.20.770 Signatures.
Signatures on the bonds and interest coupons may be printed, lithographed, or engraved facsimile, except that on the bonds, but not on the interest coupons, the countersignature of the Clerk or other officer of the authority designated by it shall be manually affixed. (Ord. 1296 § 1, 10-8-74. Formerly § 16-307).
16.20.780 Signatures – Continuing validity.
If any officer or representative whose signature or countersignature appears upon the bonds or coupons ceases to be an officer or representative before the delivery of the bonds or coupons, his/her signature or countersignature is nevertheless valid and of the same force and effect as if he had continued to hold his/her office or position until the delivery of the bonds and coupons. (Ord. 1296 § 1, 10-8-74. Formerly § 16-308).
16.20.790 Serial or sinking fund type maximum maturity – Calculation of maturity.
Bonds issued under this chapter may be serial or sinking fund bonds. A bond by its terms shall not mature more than forty (40) years from its own date. If any authorized issue is divided into two or more series or divisions, the maximum maturity date shall be calculated from the date on the face of each bond separately, irrespective of the fact that different dates may be prescribed for the bonds of each separate series or division of any authorized issue. (Ord. 1296 § 1, 10-8-74. Formerly § 16-309).
16.20.800 Issuance and sale of bonds.
The bonds may be issued and sold as the authority 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 authority 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 authority purposes, as all or part of the purchase price thereof, on such terms as may be established by the agreement for acquisition. (Ord. 1296 § 1, 10-8-74. Formerly § 16-310).
16.20.810 Determination of amount.
In determining the amount of bonds to be issued, the authority may include all of the following:
(a) All costs and expenses and estimated costs and expenses incidental to or connected with the acquisition, construction, improving, or financing of the facility, including the cost of any environmental impact report or statement or other studies, filings or reports required by law.
(b) All engineering, inspection, legal, and fiscal agent's fees, costs of the issuance of the bonds, bond reserve funds and working capital, and bond interest estimated to accrue during the construction period and for a period of not to exceed twenty-four (24) months after completion of construction. (Ord. 1296 § 1, 10-18-74. Formerly § 16-311).
16.20.820 Interest – Payment from proceeds of sale of bonds.
The authority may provide that interest on bonds issued for the acquisition, construction or completion of any project may be paid out of the proceeds of the sale of the bonds during the actual construction of the project and for a period of not to exceed two years after completion of actual construction, or for any other reasonably limited period. (Ord. 1296 § 1, 10-8-74. Formerly § 16-312).
16.20.830 Interest and principal as charge upon revenues.
In the proceedings for the issuance of bonds, the authority may provide that the principal of and interest on the bonds constitute such charge upon the revenues of any project acquired, constructed or completed from the proceeds of the bonds, or upon other available and specified revenues or funds as may be provided for in such proceedings. (Ord. 1296 § 1, 10-8-74. Formerly § 16-313).
16.20.840 Temporary bonds, certificates, etc.
Pending the actual issuance or delivery of bonds, the authority may issue temporary or interim bonds, certificates, or receipts of any denominations, with or without coupons, to be exchanged for definitive bonds when ready for delivery. (Ord. 1296 § 1, 10-8-74. Formerly § 16-314).
16.20.850 Refunding bonds.
The authority may provide for the issuance, sale or exchange of refunding bonds to redeem or retire any revenue bonds issued by it. All provisions of this chapter are applicable to the issuance, sale or exchange. (Ord. 1296 § 1, 10-8-74. Formerly § 16-315).
16.20.860 Refunding bonds – Amount issuable.
Refunding bonds may be issued in a principal amount sufficient to provide funds for the payment of the bonds to be refunded and all expenses incident to the calling, retiring, or paying of the outstanding bonds and the issuance of the refunding bonds. These expenses include:
(a) The difference in amount between the par value of the refunding bonds and any amount less than par for which the refunding bonds are sold.
(b) The amount of interest upon the refunding bonds from the date of their sale to the date of payment of the bonds to be refunded or to the date upon which the bonds to be refunded will be paid pursuant to their call or pursuant to any agreement with the holders of such bonds.
(c) Any premiums required to be paid to call or retire the outstanding bonds.
(d) The interest accruing on the outstanding bonds to the date of their call or retirement. (Ord. 1296 § 1, 10-8-74. Formerly § 16-316).
16.20.870 Negotiability.
Bonds issued pursuant to this chapter are negotiable instruments, unless registered in the manner provided in the bond resolution. (Ord. 1296 § 1, 10-8-74. Formerly § 16-317).
16.20.880 Validating proceedings.
An action to determine the validity of bonds may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. (Ord. 1296 § 1, 10-8-74. Formerly § 16-318).
Article V. Rates, Fees and Charges
16.20.890 Covenants – Duty to perform.
The authority shall have power, and it shall be its duty, fully and faithfully to keep and perform any covenant it may make pursuant to SCCC 16.20.600 with or for the benefit of the holders of any bonds with respect to the fixing and maintaining of fees, tolls, rentals or other charges, and each and every other covenant it may make, or obligation it may assume, pursuant to any provision of this chapter, and it shall be the duty of each and every officer, representative and employee of the authority to do and perform each and every act necessary or appropriate for such keeping and performance by such authority of every such covenant and obligation. (Ord. 1296 § 1, 10-8-74. Formerly § 16-325).
Article VI. Rights of Obligees
16.20.900 Enforcement of rights.
In addition to all other rights conferred on an obligee and subject only to any contractual restrictions binding upon him, an obligee may:
(a) By mandamus, suit, action, or proceeding at law or in equity, compel the authority and its members, officers, agents or employees to perform every term, provision, and covenant contained in any contract of the authority with or for the benefit of the obligee, to carry out all covenants and agreements of the authority, and to fulfill all duties imposed upon the authority by this chapter.
(b) By suit, action, or proceeding in equity, enjoin any acts or things which are unlawful and in violation of any of the rights of the obligee.
The members, officers, agents and employees of the authority are not personally liable for damages caused by the performance or nonperformance of their duties under this chapter or any contract or indenture made pursuant thereto. (Ord. 1296 § 1, 10-8-74; Ord. 1301 § 3, 11-19-74. Formerly § 16-350).