Gilroy Municipal Code Div. 2 Procedure

The city is authorized to issue revenue bonds in the accomplishment of the public purposes and municipal affairs as provided in section 8A.2. The exercise pursuant to this article of the powers conferred by this article, including the power to issue revenue bonds, shall be deemed to be in the performance of an essential governmental function of the city; provided, however, that exercise of the powers conferred by this article in the achievement of such purposes shall be subject to the provisions of, and exclusively as provided in, this division.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) The sole purpose of the city acting pursuant to this article is to undertake projects through the issuance of revenue bonds in accomplishment of the purposes provided in section 8A.2, and to carry out and complete such projects and perform and exercise derivative obligations and powers. All powers vested in the city pursuant to this article shall be exercisable as the council shall provide, solely in the accomplishment of such purposes.

(b) The jurisdiction of the city to undertake projects shall be coincident as to territory with the territory within which the city may, to the full extent permitted by the constitution and laws of the state, finance facilities by the issuance of its revenue bonds.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) The city may appoint such employees and agents, including, without limitation, financial advisors or consultants, accountants, architects, engineers, or other experts or advisors, as it requires, and determine their qualifications, duties, terms of employment or engagement, and compensation.

(b) The city may contract for such legal counsel as in its judgment is necessary or advisable to enable it to carry out its purposes, including such bond counsel as it deems advisable in connection with any proceedings.

(c) No attorney or firm of attorneys employed as counsel by a company may serve at the same time as legal counsel, including bond counsel, and no person or firm employed as financial advisor by a company may at the same time serve as financial advisor, to the city in connection with any project or proposed project for such company.

(Ord. No. 82-10, § 1, 4-5-1982)

The city may use discretion in the undertaking of projects, including the establishment of reasonable priorities among the types and locations of projects and reasonable criteria regarding companies, applications in accord with which priorities and criteria may be accepted.

(Ord. No. 82-10, § 1, 4-5-1982)

Companies may apply for financing pursuant to this article by filing with the city an application therefor which includes all of the following:

(a) Such financial, legal, and other information as is required by the city;

(b) An estimate of the amount of bonds proposed to be issued, of the sources of amounts otherwise required for the project, and an itemization of the estimated cost and any other expenses;

(c) Sufficient other information as is necessary to the determinations required to be made by subdivision (c) of section 8A.15. An application may be amended, supplemented or clarified from time to time.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) Applications for projects or companies not in accordance with the reasonable priorities and criteria which the city may establish need not be accepted and further processed by the city.

(b) Acceptance of any application in no way obligates the council to adopt a resolution of intention or undertake the project proposed.

(c) Upon acceptance of any application, the council shall determine whether it is likely that the undertaking of the project by the city will be a substantial factor in the accrual of one or more of the public benefits from the use of the facilities as proposed in the application, whether the activities or uses may be classified within the category of industrial, commercial or other business activities or uses, and whether the project is otherwise in accord with the purposes and requirements of this article.

(d) Upon affirmative determinations under subdivision (c), the council may express the present intention of the city to issue bonds in connection with the project and shall evidence the same by the adoption of a resolution of intention to undertake the project. The resolution of intention shall briefly describe the facilities, state the estimated principal amount of the bond issue (which estimate shall not limit the amount of bonds which may be issued), and identify the company that is the applicant, and may include such other provisions as the council shall prescribe.

(e) A notice of the filing of an application, naming the company that is the applicant, briefly describing the facilities, stating the estimated principal amount of the bond issue and referring to the application for further particulars, shall be published by the city clerk once in a newspaper of general circulation in the city. Any amendment, supplement or clarification of an application which changes the company that is the applicant, the description of the facilities, or the estimated principal amount of the bond issue, as previously noticed, shall be noticed in the same manner.

(f) A resolution of intention may be revoked, amended, supplemented or clarified by the council, at any time prior to entry into the project agreements. The project agreements, indenture, bonds and other proceedings shall be consistent with the resolution of intention, and shall supersede it except to the extent otherwise expressed.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) Among the requirements of this article, that the council shall determine that the project is in accord with, is the requirement of subsection (b).

(b) It is required that the project complies with the following criteria, in the determination of the council by review of the information submitted by the company:

(1) Public benefits, determined in accordance with the policy stated in section 8A.2, from the use of the facilities likely will substantially exceed any public detriment from issuance of bonds in the estimated principal amount proposed in the application.

(2) Neither the completion of the project nor the operation of the facilities will have the proximate effect of relocation of any substantial operations of the company from one area of the state to another or in the abandonment of any substantial operations of the company within other areas of the state, or, if such completion or operation will have either of such effects, then such completion or operation is reasonably necessary to prevent the relocation of any substantial operations of the company from an area within the state to an area outside the state.

(c) Determinations as provided in section 8A.15, included within which are the determination referred to in this section, shall be final and conclusive.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) At any time following adoption of the resolution of intention, the council may approve, conditionally or unconditionally, the project.

(b) A project shall be deemed to have been preliminarily undertaken by the city when the application has been accepted, the affirmative determinations under subdivision (c) of section 8A.15 have been made, the resolution of intention has been adopted, the approval of the council has been obtained, and a period of thirty (30) days from the date of publication of the notice referred to in subdivision (e) of section 8A.15 has expired.

(c) Upon the preliminary undertaking of a project by the city, the company shall comply with all conditions imposed by the council in its approval of the project pursuant to subsection (a).

(Ord. No. 82-10, § 1, 4-5-1982)

The issuance of bonds shall be authorized by resolution of the council adopted at any time following the determinations provided for in section 8A.15. The resolution may, as the council deems advisable and in accordance with the provisions of this division, provided for, or authorize the execution of a loan agreement, the repayment obligation of which is evidenced by the bonds, providing for, or authorize the execution of an indenture providing for:

(a) The fixing and collection of revenues;

(b) The creation and maintenance of special funds, including reserve and sinking funds;

(c) Limitations on expenditures of bond proceeds;

(d) The procedure, if any, by which any contract represented by bonds may be amended or abrogated;

(e) The acts and omissions which shall constitute, and the rights and remedies available, in an event of default. In such an event of default, the obligations of the city may be enforced, as appropriate, by mandamus, by the appointment of a receiver, by foreclosure or sale, by injunction, by specific performance, by equitable relief, or by any one or more of such remedies or any other remedy; and

(f) Any additional matters authorized to be included in an indenture or which relate to the security, protection, or return of bondholders.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) The bonds may bear interest on such amount or amounts, payable at such time or times, evidenced in such manner and at such rate or rates as shall be established by or pursuant to method approved by the council.

(b) Bonds may be sold at public or private sale, at such prices as the council directs.

(Ord. No. 82-10, § 1, 4-5-1982)

All general or special laws or parts thereof inconsistent with this article shall be inapplicable to the exercise of any of the powers conferred under the provisions of this article. Without limiting the generality of the foregoing, no other provision of law shall limit the amounts and other consideration that may be received pursuant to project agreements and the other proceedings or shall restrict the amounts received that may be expended, or shall in any way affect other amounts that may be received or expended by the city.

(Ord. No. 82-10, § 1, 4-5-1982)

(a) The authorizations of this article shall be regarded as supplemental and additional to powers conferred by other laws.

(b) In the exercise of any of the powers conferred, including powers relating to the offer, issuance and sale of bonds, under the provisions of this article, the city need not comply with the provisions of any law applicable to the exercise of similar powers except as referred to in this division.

(Ord. No. 82-10, § 1, 4-5-1982)

This article, being necessary for the welfare of the city and its inhabitants, shall be liberally construed to effect its purposes.

(Ord. No. 82-10, § 1, 4-5-1982)

The aggregate amount of bonds that may be issued pursuant to this article shall not exceed twenty-five million dollars ($25,000,000).

(Ord. No. 82-10, § 1, 4-5-1982)

The following provisions of the Act as they now exist or as hereafter amended shall apply: Government Code Sections 91527 and 91528; Section 91533 except subdivision (b); Section 91534; Section 91535 except subdivisions (b) (6) and (7); and Sections 91536, 91541, 91542 and 91548.

(Ord. No. 82-10, § 1, 4-5-1982)

§ 8A.25. through § 8A.35. (Reserved)