Chico Municipal Code Ch. 3.88 CITY OF CHICO CHARTER CITY BONDS (Self-Insurance Reserve Program)

The city council hereby finds and determines that the issuance of bonds by the city for the purpose of providing a self-insurance reserve fund to pay tort judgments rendered against the city serves the public purposes of the city and constitutes a municipal affair which is a proper subject of legislation by the city as a charter city of the state of California. The city council further hereby finds and determines that the issuance of such bonds by the city is not inconsistent with or limited by the Charter of the city.

(Ord. 1664 §1 (part))

The city council hereby authorizes the issuance of bonds for the purpose of providing a self-insurance reserve fund. Said bonds shall be issued pursuant to and in accordance with an indenture of trust substantially in the form of a copy on file with the city clerk, together with any changes thereafter approved by the city manager.

(Ord. 1664 §l (part))

As set forth in the indenture, the proceeds of sale of the bonds remaining after payment of costs of issuance and deposit into a reserve fund, shall be deposited by the city in a fund the sole purpose of which is to pay tort judgments rendered against the city or to redeem outstanding bonds.

(Ord. 1664 §1 (part))

The bonds may be sold by the city at public or private sale at such price or prices and at such rate or rates of interest not to exceed twelve percent (12%) per annum as the city council may deem advisable at the time of sale thereof. The bonds shall be sold pursuant to resolution of the city council adopted at any time following the effective date of this chapter.

(Ord. 1664 §1 (part))

The city manager, finance director, city clerk and city attorney, or any of them, are authorized and directed to make, execute and deliver any and all certificates, requisitions, agreements and documents required to consummate the issuance, sale and delivery of the bonds.

(Ord. 1664 §1 (part), Ord. 2113 §1)