Irvine Municipal Code Ch. 5 Improvement Bonds

This chapter shall be deemed to provide a complete, additional and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws.

(Code 1976, § II.H-701; Ord. No. 84-12, § 1, 7-10-84)

In any proceedings leading to the issuance of bonds pursuant to the Improvement Bond Act of 1915, being Streets and Highways Code § 8500 et seq. (the "1915 Act" hereinafter), the City Council may provide that interest on such bonds shall be payable on March 2 and September 2 of each year and that principal shall be payable beginning on the September 2 next succeeding 13 months from the date of such bonds, and on each September 2 thereafter until the bonds are paid in full. The first payment of interest may become due not more than 18 months before the maturity of the first series of bonds.

(Code 1976, § II.H-702; Ord. No. 84-12, § 1, 7-10-84)

In any proceedings leading to the issuance of bonds pursuant to the 1915 Act, the City Council may include, as an incidental expense of the proceedings, an amount for interest on the bonds for a period not to exceed 24 months. Upon receipt of the proceeds of the bond sale, the amount so provided for shall be deposited in the redemption fund for such bonds and be used solely for the payment of interest thereon.

(Code 1976, § II.H-703; Ord. No. 84-12, § 1, 7-10-84; Ord. No. 92-12, § 1, 7-28-92)

In any proceedings leading to the issuance of bonds pursuant to the 1915 Act or the Refunding Act of 1984 for 1915 Improvement Act Bonds, being Streets and Highways Code § 9500 et seq. (the "1984 Act" hereinafter), the City Council may provide for premiums payable by property owners upon the prepayment of assessments or reassessments in amounts other than that authorized therein and correspondingly provide that the bonds called in connection therewith be redeemable upon payment of such premium.

(Code 1976, § II.H-704; Ord. No. 84-12, § 1, 7-10-84; Ord. No. 87-11, § 1, 5-26-87)

A. In any proceedings leading to the issuance of bonds pursuant to the 1915 Act, the City Council may authorize the issuance of improvement bonds having variable interest rates and permitting the bondholder, under specified terms, to tender or put such bonds back to the City or other applicable entity for repurchase. In furtherance of the authority conferred by this section, the City Council may adopt a resolution of issuance having, but not limited to, one or more of the following terms and conditions:

1. A form or forms of bonds differing from that prescribed by the 1915 Act;

2. Bonds which bear a variable interest rate from time-to-time as determined by a bond index or some other means prescribed in the resolution;

3. Interest rates in excess of the current maximum interest rate permitted by general law, or the elimination altogether of a maximum interest rate on the bonds;

4. An option by the City or the property owners within the assessment district to convert to a fixed interest rate with respect to certain parcels or lots of real property under specified terms and conditions and for the conversion of bonds secured by such parcels or lots from a variable interest rate to a fixed interest rate;

5. Issues consisting solely of term bonds and which do not have a portion of the assessment principal serially maturing each year;

6. An option permitting the bondholder to tender or put his or her bond back to the City or other applicable entity for repurchase under certain specified terms and conditions;

7. The provision of letters of credit or other appropriate instrument securing the repayment of the bonds or providing for repurchase of tendered bonds, including the means of reimbursement for draws thereunder and the payment of annual commissions therefor, provided that such letter of credit or other appropriate instrument shall not create an obligation of the City in violation of section 18 of article XVI of the Constitution of the State of California;

8. The appointment of trustees, fiscal agents, bond registrars, transfer agents, remarketing agents or other professional services required by or incident to the issuance, payment, remarketing and repurchase of such bonds;

9. Collection of the assessment and interest thereon by a means other than through the property tax collection procedure prescribed by the 1915 Act; and

10. Any other provisions of whatever nature which are ordinarily prescribed in connection with the issuance of such bonds.

B. The foregoing provisions of this section shall be liberally interpreted to permit whatever actions are necessary or advisable to be taken by the City Council and its officers, employees or agents in connection with the issuance of such variable rate demand improvement bonds.

(Code 1976, § II.H-705; Ord. No. 84-25, § 1, 10-23-84; Ord. No. 87-11, § 2, 5-26-87)

Notwithstanding the provisions of Subsection (d) of Section 10010 of the Municipal Improvement Act of 1913 (Streets and Highways Code § 10010(d)), in any proceedings leading to the issuance of bonds pursuant to the 1915 Act, the City Council may authorize the issuance of improvement bonds solely for the purpose of payment in full of all amounts necessary to eliminate any special assessment liens previously imposed upon any assessment parcel included in a subsequent assessment district.

(Code 1976, § II.H-706; Ord. No. 85-24, § 1, 9-10-85)

Notwithstanding the provisions of Streets and Highways Code § 5024(c), in any proceedings leading to the issuance of bonds pursuant to the 1915 Act, the expenses incidental to the construction or acquisition of any authorized improvement may include the cost of acquiring plans and specifications prepared by a registered civil engineer engaged by the owners of the property to be assessed.

(Code 1976, § II.H-707; Ord. No. 85-24, § 1, 9-10-85)

Notwithstanding the provisions of the 1915 Act or the 1984 Act to the contrary, in any proceedings leading to the issuance of bonds pursuant to the 1915 Act or the 1984 Act, the City Council may by resolution limit the City's duty to advance available monies of the City to pay delinquencies in the payment of assessments to the monies funded therefor in the reserve fund or otherwise.

(Code 1976, § II.H-708; Ord. No. 85-24, § 1, 9-10-85; Ord. No. 87-11, § 3, 5-26-87)

Notwithstanding the provisions of Section 8766 of the 1915 Act (Streets and Highways Code § 8766), in any proceedings leading to the issuance of bonds pursuant to the 1915 Act, the City Council may authorize by resolution the partial prepayment of assessments under any conditions and in any manner which it may prescribe.

(Code 1976, § II.H-709; Ord. No. 85-24, § 1, 9-10-85)

Notwithstanding the provisions of Section 8682 of the Improvement Bond Act of 1915 (Streets and Highways Code § 8682), expenses of collection, as described therein, in excess of $8 per lot or parcel may be added to the amount of the annual installments of the assessments to be collected in connection with any improvement bonds issued by the City pursuant to the authority of this chapter and the general laws of the State of California.

(Code 1976, § II.H-710; Ord. No. 87-7, § 1, 4-28-87)

Notwithstanding any provisions of Streets and Highways Code div. 7, pt. 3, ch. 26 (Streets and Highways Code § 5820 et seq.) to the contrary, including Streets and Highways Code § 5830, the City may establish maintenance assessment districts pursuant to said chapter and the Municipal Improvement Act of 1913 (Government Code § 10000 et seq.) and may levy assessments in such districts on the basis of estimated benefits to the properties assessed, rather than on the ad valorem basis provided for therein.

(Code 1976, § II.H-711; Ord. No. 87-7, § 1, 4-28-87)

Notwithstanding any provision of the 1984 Act to the contrary, the City Council may undertake proceedings pursuant to the 1984 Act to levy reassessments and to issue refunding improvement bonds for the purpose of calling and redeeming outstanding refunding bonds previously authorized and issued pursuant to the 1984 Act in the same manner that 1915 Act improvement bonds may be refunded pursuant thereto.

(Code 1976, § II.H-712; Ord. No. 87-11, § 4, 5-26-87)

Notwithstanding any provision of the 1984 Act to the contrary, the City Council may authorize the issuance of refunding improvement bonds pursuant to the 1984 Act having serial maturity dates as provided in Section 8651 of the 1915 Act (Streets and Highways Code § 8651), as amended.

(Code 1976, § II.H-713; Ord. No. 87-11, § 4, 5-26-87)

Notwithstanding the provisions of Subsection (a) of Section 10010 of the Municipal Improvement Act of 1913 (Streets and Highways Code § 10010(a)), in any proceeding leading to the issuance of bonds pursuant to the 1915 Act, the City Council may authorize the issuance of improvement bonds for the purpose of acquiring improvements which were not in existence on the date of adoption by the City Council of the resolution of intention initiating such proceedings, and may authorize the expenditure of monies from such improvement bonds for progress payments for the construction of such improvements prior to their completion, pursuant to any conditions which the City may prescribe.

(Code 1976, § II.H-714; Ord. No. 89-9, § 1, 4-25-89; Ord. No. 95-11, § 1, 9-12-95)

Notwithstanding any provision of the Mello-Roos Community Facilities Act of 1982 (Government Code § 53311 et seq.) to the contrary, in any proceedings leading to the formation of a community facilities district pursuant to said Act, unless otherwise directed by the City Council, the City Clerk shall give notice of the public hearing required by Government Code § 53320 solely by means of published notice pursuant to Government Code § 53322.

(Code 1976, § II.H-715; Ord. No. 89-9, § 1, 4-25-89)

Notwithstanding the provisions of Section 8680 et seq., of the Improvement Bond Act of 1915 (Streets and Highways Code § 8680 et seq.), in any proceedings leading to the issuance of fixed interest rate bonds pursuant to said 1915 Act, the City Council may provide for collection of installments of unpaid assessments by direct billings to the affected property owners, instead of collecting the same on the annual real property tax bills of the County Tax Collector.

(Code 1976, § II.H-716; Ord. No. 93-12, § 1, 9-14-93)

This section shall be deemed to provide a supplemental, additional and alternative method for the use of surplus monies in improvement funds and shall be regarded as supplemental and additional to those powers conferred by the Municipal Improvement Act of 1913 (the "1913 Act") and the Improvement Bond Act of 1915 (the "1915 Act"). Notwithstanding any provision to the contrary contained in either the 1913 or 1915 Acts, the City may utilize surplus bond proceeds contained in the improvement funds of assessment districts formed under said Acts and this Municipal Code in the same manner that prepaid special assessments in said assessment districts are utilized for the call and redemption of improvement bonds representing said prepaid special assessments. The utilization of such surplus monies for the call and redemption of improvement bonds is in addition to any other purposes authorized by such acts for the use of surplus monies in the improvement fund.

(Ord. No. 01-20, § 1, 11-27-01)