Sacramento Municipal Code Art. II Financing Facilities

The city may make, purchase, or otherwise contract for the making of a mortgage or other loan, upon such terms and conditions as the city shall deem proper, to any participating party for the cost of a facility. (Prior code § 80.02.004)

The city may make, purchase or otherwise contract for the making of a mortgage or other secured or unsecured loan, upon such terms and conditions as the city shall deem proper, to any participating party to refund or refinance outstanding obligations of such participating party incurred to finance the cost of a facility, including expenses incident to paying or otherwise discharging the obligations to be refunded or refinanced, whether such obligations were incurred prior to or after the enactment of this chapter, if the city finds that such refunding or refinancing is in the public interest and either alleviates a financial or operating hardship of such participating party, or is in connection with other financing by the city for such participating party. (Prior code § 80.02.005)

The city may acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip, own, and lease as lessee a facility for the purpose of selling or leasing such facility to a participating party, and may contract with such participating party to undertake on behalf of the city to construct, enlarge, remodel, renovate, alter, improve, furnish, and equip such facility.

The city may sell or lease, upon such terms and conditions as the city shall deem proper, to a participating party any facility owned by the city under this chapter, including a facility conveyed to the city in connection with a financing under this chapter but not being financed or refinanced hereunder. (Prior code § 80.02.006)

The city may charge a participating party application, commitment, financing and other fees, in order to recover all administrative, professional services and other costs and expenses incurred in the exercise of the powers and duties conferred by this chapter. (Prior code § 80.02.007)

The city may obtain, or aid in obtaining, from any department or agency of the United States or of the state of California or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest, principal, rents, fees or other charges or any part thereof on any loan, lease or obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this chapter; and may enter into any agreement, contract or any other instrument whatsoever with respect to that insurance or guarantee; and may accept payment in such manner and form as provided therein in the event of default by a participating party and may assign any such insurance or guarantee as security for bonds. (Prior code § 80.02.008)

The city may fix rents, payments, fees, charges and interest rates for financing under this chapter and may agree to revise from time to time such rents, payments, fees, charges and interest rates to reflect changes in interest rates on bonds, losses due to defaults or changes in other expenses related to this chapter, including city administrative expenses. (Prior code § 80.02.009)

The city may hold deeds of trust, mortgages or security interests as security for loans and other obligations under this chapter and may pledge or assign the same as security for repayment of bonds. Such deeds of trust, mortgages or security interests may be assigned to, and held on behalf of the city by any bank or trust company appointed to act as trustee by the city in any resolution or indenture providing for issuance of bonds. (Prior code § 80.02.010)

The city may employ such engineering, architectural, financial, accounting, legal or other services as may be necessary in the judgment of the city for the purposes of this chapter. Without limiting the foregoing, the city may employ bond counsel and other legal counsel, at the expense of the applicant, to review documents and advise the city concerning all proceedings undertaken in connection with financings under this chapter. All financings under this chapter shall be subject to all thenexisting city contracts with investment banking firms and other consultants, to the extent deemed necessary by the city.

All proceedings conducted pursuant to this chapter shall be conducted in accordance with all relevant city policies and practices. To that end, the city treasurer and the city attorney shall be provided with copies of all contracts and other documents generated during the course of the financing, including (without limitation) any offering circular or other disclosure document employed to sell bonds. (Prior code § 80.02.011)

In addition to all other powers specifically granted by this chapter, the city may enter into any and all agreements or contracts, including agreements for liquidity and credit enhancement, execute any and all instruments, and do and perform any and all acts or things necessary convenient or desirable to carry out the purposes of this chapter. (Prior code § 80.02.012)

Any nonprofit public benefit corporation may apply to the city for approval as a participating party and for approval of a facility for financing under this chapter. The application shall set forth such information as the city may require in order to enable the city to evaluate the applicant, the facility and its proposed costs. The application shall detail alternative methods of financing the facility and explain why other sources of tax-exempt debt financing are not available.

The city treasurer may review all applications and make recommendations to the city council regarding the financial feasibility of projects, security features of bond issues (for the benefit of bondholders and the city), timing of sale and issuance of bonds, marketing procedures for bonds, potential effects of issuing bonds (and the timing of such issuance) on other city debt issues and the city's credit rating, and the advisability of the city's undertaking particular financings.

The city manager may, with the approval of the council, implement priorities or guidelines to limit or focus the facilities that the city will approve for financing under this chapter. The council may decline to approve any applicant if the council determines that any potential detriment of financing the project will outweigh any potential benefits. (Prior code § 80.02.013)

Except as specifically provided in this chapter, the acquisition, construction, installation, reconstruction, rehabilitation or improvement of a facility financed under this chapter shall not be subject to any requirements relating to buildings, works or improvements owned or operated by the city, and any requirement of public competitive bidding or other procedural restrictions imposed on the award of contract for acquisition or construction of a city building, work or improvement or to the lease, sublease, sale or other disposition of city property shall not be applicable to any actions taken under this chapter. (Prior code § 80.02.014)