Los Angeles Municipal Code Art. 6.2 Procedures for Issuance and Sale of Bonds Payable from Assessments

LEVIED PURSUANT TO REFERENDUM ORDINANCE K

Section 11.27.30 Power of City Council. 11.27.30.1 Definitions. 11.27.30.2 Resolution of Intention to Issue Bonds. 11.27.30.3 Inclusion of Certain Costs and Estimated Costs in Proposed Bond Issuance. 11.27.30.4 Notice of Hearing; Publication. 11.27.30.5 Hearing; Interested Persons. 11.27.30.6 Written Protests; Grounds; Withdrawal. 11.27.30.7 Changes in Proposed Bond Issuance. 11.27.30.8 Majority Protest; Abandonment. 11.27.30.9 Resolution Authorizing Form, Execution and Issuance of Bonds. 11.27.30.10 Bonds Are Special Obligations of the City. 11.27.30.11 Action to Foreclose Liens; Cumulative Remedy; Covenant to Diligently Pursue Foreclosure Action. 11.27.30.12 Signatures on Bonds; Place Bonds Are Payable. 11.27.30.13 Assessments for Outstanding Bonds. 11.27.30.14 Sale of Bonds; Public or Private Sale. 11.27.30.15 Refunding Bonds. 11.27.30.16 Bond Anticipation Notes. 11.27.30.17 Estimates of Costs; Contents. 11.27.30.18 Assessment; Reference to Fiscal Year; Contents. 11.27.30.19 Application of Chapter 3 of Landscaping and Lighting Act of 1972. 11.27.30.20 No Reduction or Termination. 11.27.30.21 Other Forms of Financing. 11.27.30.22 Effect of Provisions of Article on Validity of Sale of Bonds. 11.27.30.23 Severability.

The Council of The City of Los Angeles, exercising the powers reserved to The City of Los Angeles under the Constitution of the State of California, and its powers under the provisions of the Charter of The City of Los Angeles, may determine that bonds, notes or other evidences of indebtedness payable from assessments levied under and pursuant to Referendum Ordinance K for City-wide Parks, Recreation and Community Facilities Assessment adopted by the voters of The City of Los Angeles on November 5, 1996 shall be issued as provided in this article.

SECTION HISTORY

Article and Section Added by Ord. No. 172,856, Eff. 11-8-99.

Unless the context otherwise requires, the terms defined in this section shall for all purposes of this article and of any certificate, opinion or other document herein mentioned, have the meanings herein specified.

“Assessment Ordinance” means Referendum Ordinance K for City-wide Parks, Recreation and Community Facilities Assessment adopted by the voters of the City on November 5, 1996, as originally adopted or as the same may be amended from time to time.

“Assessments” means the portion of the annual assessments levied within the District pursuant to the Assessment Ordinance and described in Clause (a) of Section 12 of the Assessment Ordinance.

“Bonds” means bonds, notes or other evidences of indebtedness issued by the City and payable from Assessments.

“City” means The City of Los Angeles.

“City Clerk” means the City Clerk of the City.

“City Council” means the Council of the City.

“District” means City of Los Angeles Landscaping and Lighting District 96-1, formed pursuant to the Assessment Ordinance.

“Indenture” means any indenture of trust, trust agreement, fiscal agent agreement or resolution or any other similar instrument,

regardless of title, pursuant to which Bonds are issued and which establishes the terms and conditions for the payment of such Bonds, as modified, amended and/or supplemented from time to time in accordance with its terms.

“Landscaping and Lighting Act of 1972" means the Landscaping and Lighting Act of 1972, constituting Sections 22500 et seq. of the California Streets and Highways Code.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

Whenever the City Council determines to issue Bonds to finance the estimated costs of the acquisition, construction and installation of any of the improvements described in Section 5 of the Assessment Ordinance, it shall adopt a resolution of intention to issue Bonds. The resolution of intention shall do all of the following:

(a) Declare the intention of the City Council to issue the Bonds.

(b) Describe the purposes for which the Bonds are proposed to be issued.

(c) Set forth the amount of the Bonds proposed to be issued.

(d) Fix the time and place for a hearing by the City Council on the proposed Bond issuance.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

The amount of the Bonds proposed to be issued may include all costs and estimated costs incidental to, or connected with, the accomplishment of the purposes for which the Bonds are proposed to be issued, including, but not limited to

(a) the estimated costs of the acquisition, construction and installation of any of the improvements described in Section 5 of the
Assessment Ordinance,

(b) the reimbursement of any such costs previously advanced,

(c) architectural, engineering, inspection, legal, fiscal, and financial consultant fees,

(d) bond and other reserve funds,

(e) discount fees,

(f) capitalized interest on the Bonds for a period not to exceed three years, and

(g) all costs of issuance of the Bonds, including, but not limited to, fees for bond counsel, fees for financial advisors, costs of
obtaining credit ratings, bond insurance premiums, fees for letters of credit and other credit enhancement costs and printing costs.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

The City Clerk shall publish a notice of the hearing on the proposed Bond issuance pursuant to Section 6061 of the California Government Code. Publication of such notice shall be completed at least 10 days prior to the date of the hearing.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

At the time and place fixed for the hearing on the proposed Bond issuance, or at any time and place to which the hearing is continued, the City Council shall proceed with the hearing. At the hearing, all interested persons shall be afforded the opportunity to hear and be heard. The City Council shall consider oral statements and all written protests made or filed by any interested person. The City Council may continue the hearing from time to time.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

Any interested person may, prior to the conclusion of the hearing, file a written protest with the City Clerk or, having previously filed a protest, may file a written withdrawal of that protest. A written protest shall state all grounds of objection. Any protest by a property owner shall contain a description sufficient to identify the property owned by such property owner.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

During the course of or upon the conclusion of the hearing, the City Council may order changes in any of the purposes for which the Bonds are proposed to be issued and in the amount of the Bonds proposed to be issued.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

If there is a majority protest against the issuance of the Bonds proposed to be issued, the City Council shall take no further action with respect to the issuance of Bonds for a period of one year from the date of such protest. A majority protest exists if, upon the conclusion of the hearing, written protests filed and not withdrawn represent property owners owning more than 50% of the area of assessable lands within the District.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

If, at the conclusion of the hearing, a majority protest has not been filed, the City Council may, by resolution, at the time or times it deems proper, authorize the execution and delivery of an Indenture providing for the following:

(a) The form of the Bonds.

(b) The execution of the Bonds.

(c) The issuance of any part of the Bonds that were the subject of such hearing.

(d) The appointment of one or more banks or trust companies within or without the state having the necessary trust powers as

trustee, fiscal agent, paying agent, or registrar for the Bonds.

(e) The execution of such Indenture pursuant to which the Bonds are issued.

(f) The pledge of the Assessments, and, at the discretion of the City Council, any other legally available assets, to secure the

payment of the principal or redemption price of, or interest on the Bonds, or any reimbursement or similar agreement with any

provider of credit enhancement for the Bonds.

(g) The investment of any Bond proceeds and Assessment proceeds, by the trustee or fiscal agent in any securities or obligations described in such Indenture pursuant to which the Bonds are issued.

(h) The date or dates to be borne by the Bonds and the time or times of maturity of the Bonds and the place or places and time or times that the Bonds shall be payable; provided, however, that no Bond shall mature later than the fiscal year following the last fiscal year in which the Assessments are levied.

(i) The interest, at a fixed rate, to be borne by the Bonds; provided, however, that no such rate shall exceed the maximum rate

permitted by any applicable provision of law limiting the maximum interest rate on bonds.

(j) The denominations, form, and registration privileges of the Bonds.

(k) The date or dates on which any of the Bonds are subject to redemption prior to their maturity dates. Bonds may be subject to redemption on any date prior to their fixed maturity from the sources and in the amounts, manner, and prices prescribed by the City Council.

(l) Any other terms and conditions determined to be necessary by the City Council.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

All Bonds issued under the authority of this article shall be special obligations of the City, payable solely from the Assessments and any other assets pledged to secure the payment thereof under the authority of this article. The Bonds shall not constitute a debt of the City within the meaning of any constitutional or statutory debt limit or restriction, and shall not constitute obligations for which the City is obligated to levy or pledge any form of taxation or for which the City shall levy or pledge any form of taxation. Neither the faith and credit nor the taxing power of the City shall be pledged to the payment of the Bonds.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

(a) As a cumulative remedy, Assessments and related charges and penalties to pay the principal of or interest on the Bonds, which are not paid when due, may be collected by an action brought in superior court, in accordance with the provisions of Part 14 (commencing with Section 8830) of Division 10 of the California Streets and Highways Code.

(b) The City Council may, by an Indenture pursuant to which the Bonds are issued covenant for the benefit of the owners of the Bonds to commence and diligently pursue any foreclosure action regarding delinquent Assessments for the payment of the principal of or interest on any Bonds that are issued and, at any time may assign the causes of action arising from the foreclosure to a trustee to do so on behalf of the owners of the Bonds. Such Indenture may specify a deadline for commencement of the foreclosure action and any other terms and conditions the City Council determines reasonable regarding the foreclosure action.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

The Bonds shall be signed by the Mayor or such other officer of the City as the City Council authorizes by resolution. The Bonds shall be countersigned by the City Clerk or a Deputy City Clerk. All signatures and countersignatures may be printed, lithographed or otherwise mechanically reproduced except that one signature must be signed manually. If any officer whose signature appears on the Bonds ceases to be an officer before the delivery of the Bonds, the officer’s signature shall be effective as if the officer had remained in office. All Bonds shall be payable at the office of the Treasurer of the City or at the office of any agent designated by the City.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

When the City Council provides for the levying of Assessments pursuant to the Assessment Ordinance, it shall also provide for the levying of that amount of Assessments which is required for the payment of the principal of and interest on any outstanding Bonds, including any necessary replenishment or expenditure of bond reserve funds or accumulation of funds for future Bond payments. All of the collections for payment of the principal of and interest on Bonds shall be paid into the bond fund and reserve or other fund established for the Bonds and shall be used solely for the payment of the principal of and interest on the outstanding Bonds.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

Bonds may be sold at public or private sale, in such manner and place or places, and at such price or prices, above or below par, as the City Council shall determine.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

The City Council may issue new Bonds to refund any or all of the Bonds outstanding and, so long as the debt service on the refunding Bonds in each bond year is no greater than the debt service on the refunded Bonds in such bond year, such refunding Bonds may be issued without repeating the procedures required for the approval of the refunded Bonds contained in Sections 11.27.30.3 through 11.27.30.9 of this article.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

(a) The City Council may borrow money in anticipation of the sale of Bonds which have been authorized pursuant hereto, but which have not been sold and delivered, issue negotiable bond anticipation notes therefor, and renew the notes from time to time.

(b) The principal of and interest on the notes may be paid from any money available for their payment. Any portion of the principal or interest which is due and payable shall be paid from the proceeds of the next sale of Bonds in anticipation of which the notes were issued or from other funds legally available therefor.

(c) The proceeds of notes issued pursuant to this section may be used for any purpose for which the Bonds in anticipation of which the notes were issued may be used.

(d) The notes shall not be issued in any amount in excess of the aggregate amount of Bonds which the City Council had authorized to be issued, less the amount of any Bonds of such authorized issue which have been previously sold and less the amount of other bond anticipation notes issued previously and outstanding at that time.

(e) The City Council may, in an Indenture pursuant to which the notes are issued, provide that the note shall be subject to call and redemption prior to maturity, at the option of the City, at such price or prices as may be fixed in such Indenture. Such Indenture shall fix the method of giving notice of redemption to the holders of notes to be redeemed and the price or prices at which the note shall be subject to redemption.

(f) The notes shall be issued and sold in the same manner as the Bonds.

(g) The Indenture pursuant to which the Bonds are issued may contain any provisions, conditions, or limitations which an Indenture executed and delivered by the City pursuant to which Bonds are issued may contain.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

In addition to the estimates of the items otherwise specified in Section 22569 of the Landscaping and Lighting Act of 1972, the estimate of the costs of the improvements for the fiscal year required by said section shall contain an estimate of an amount sufficient to pay the principal of and interest on any Bonds payable from Assessments to be collected during such fiscal year.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

In addition to the other amounts specified in Subsection (a) of Section 22572 of the Landscaping and Lighting Act of 1972, the net amount to be assessed upon assessable lands within the District shall include an amount sufficient to pay the principal of and interest on any Bonds payable from Assessments to be collected during such fiscal year.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

As provided in Section 22620 of the Landscaping and Lighting Act of 1972, Chapter 3 of the Landscaping and Lighting Act of 1972 shall not apply to annual Assessments levied to pay the principal of and interest on previously issued Bonds.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

Assessments levied to pay the principal of and interest on any Bonds shall not be reduced or terminated if doing so would interfere with the timely retirement of the Bonds.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

This article shall not preclude the City from financing the costs of acquiring and constructing the park, recreation and community facilities and improvements described in the Assessment Ordinance by any other legally available means.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

The provisions of this article are directory only and any failure to comply with the provisions thereof or any departure therefrom shall not affect the validity of any bonds issued thereunder or the indebtedness or obligation of the City created thereby.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.

If any portion of this article is declared illegal, invalid or unenforceable, then such portion or provision shall be deemed to be severable from this article. Such illegality, invalidity or unenforceability shall not affect the remainder of this article.

SECTION HISTORY

Added by Ord. No. 172,856, Eff. 11-8-99.