Chapter 3.32 — UTILITY REVENUE BONDS

The ordinance codified in this chapter shall be known and cited as the "Whittier Utility Revenue Bond Ordinance."

(Ord. 2408 § 1.1, 1987)

The ordinance codified in this chapter is adopted pursuant to the provisions of Sections 412 through 415 of the Charter.

(Ord. 2408 § 6.2, 1987)

This chapter applies to any bonds which are, by their terms, stated to have been issued pursuant to the Whittier utility revenue bond ordinance and which are issued and delivered after the effective date of the ordinance codified in this chapter, despite the fact that city council action in ordering their issuance may have been taken prior to such effective date.

(Ord. 2408 § 6.1, 1987)

In the event of conflict or inconsistency between this chapter and the bond law, this chapter is controlling.

(Ord. 2408 § 1.2, 1987)

Subject to the limitations of Section 3.32.110 of this chapter, in any general resolution or master indenture providing for the issuance of or securing bonds for acquiring, constructing, improving or financing any enterprise under Sections

such resolution or indenture. Such definition may include any one of the purposes set forth in Section 3.32.110B of this chapter, and may include all or any portion of the proceedings of refunding bonds.

(Ord. 2408 § 1.3, 1987)

The city council may, at any time prior to the issuance of any series of bonds under this chapter, adopt a supplemental procedural resolution or resolutions for the purpose of granting statutory liens on gross or net revenues to secure the repayment of obligations incurred in connection with any one or more series of bonds or for any other lawful purpose. Any such supplemental resolution or resolutions shall be deemed to be an amendment to and part of this chapter.

(Ord. 2408 § 5.1, 1987)

The city council may cause payment of principal, premiums on redemption (if any) and interest on any bonds issued under this chapter to be insured or guaranteed, and may include the premiums on such insurance or guaranty in determining the principal amount and pay such premiums from the proceeds of the bonds.

(Ord. 2408 § 5.2, 1987)

The city council may authorize other arrangements for the enhancement of the credit standing or liquidity of any bonds issued under this chapter, including without limitation letters of credit, surety bonds, guarantees and similar arrangements, and may include the cost of such arrangements in determining the principal amount and pay such cost from the proceeds of the bonds.

(Ord. 2408 § 5.3, 1987)

Any bonds issued under this chapter may be issued on the basis that the interest thereon will be subject to federal income taxation, in which event the provisions of Chapter 11, commencing with Section 5900 of Division 6 of Title 1 of the Government Code of the state, shall apply.

(Ord. 2408 § 5.4, 1987)

The city council has and may exercise all of the powers granted to a state or local government under Chapter 11 of Division 6 of Title 1 of the Government Code of the state, cited in Section 15, in connection with bonds issued under this chapter whether the interest on the bonds is exempt from federal taxation or not.

(Ord. 2408 § 5.5, 1987)

As used in Sections 3.32.110 through 3.32.160 of this chapter:

A.

"Bond law" means the Revenue Bond Law of 1941, being Chapter 6, commencing with Section 54300, of Part 1 of Division 2 of Title 5 of the Government Code of the state.

B.

"Enterprise" means any revenue-producing improvement, building, system, plant, works, facilities or undertaking used for or useful for any of the following purposes:

a.

The obtaining, conserving, treating and supplying of water for domestic use, irrigation, sanitation, industrial use, fire protection, recreation or any other public or private uses;

b.

The collection, treatment or disposal of sewage, waste or stormwater, including drainage;

c.

The collection, treatment or disposal of solid waste including, but not limited to landfill.

The term "enterprise" includes, but is not limited to, all parts of the enterprise, all appurtenances to it, and all of the various components of it set forth in Section 54309.1 of the bond law.

C.

"Obligations" means all obligations payable by the city to any bank or other financial institution under any credit enhancement or liquidity arrangements made by the city pursuant to Section 3.32.080.

(Ord. 2408 § 2.1, 1987)

A.

Issue Bonds. The city council may provide for the issuance of and authorize, issue, sell and deliver revenue bonds of the city for the purpose of providing funds for the acquisition, construction, improving or financing of an enterprise, including any or all expenses incidental thereto or connected therewith.

B.

Acquire Project and Pledge Revenues. The city council may acquire, construct, improve or finance any project to improve any enterprise defined in the resolution or indenture providing for the issuance of bonds pursuant to Section

such enterprise for the security of the bonds.

C.

Bond Law. The city council has and may exercise all of the powers set forth in the bond law, subject to the restrictions therein set forth, except as otherwise expressly provided in this section and Sections 3.32.110 and 3.32.130 through

Except as otherwise expressly provided in this chapter, the provisions of the bond law shall apply to the exercise of the powers set forth in Section 3.32.120 of this chapter.

(Ord. 2408 § 2.3(a), 1987)

The city council may authorize and provide for the issuance of the bonds by a general resolution or master indenture to take effect upon adoption or delivery, as the case may be. Such resolution or indenture shall state:

A.

The purpose or purposes for which the bonds are proposed to be issued;

B.

The limits, if any, on total principal amount of the bonds;

C.

That the bonds are to be revenue bonds, payable exclusively from the net revenues of the enterprise and from such of the other funds referred to in Section 54478 of the bond law as shall be specified in the resolution of indenture;

D.

That the bonds are not to be secured by the taxing power of the city; and

E.

Such other matters authorized by the bond law as are deemed appropriate by the city council.

(Ord. 2408 § 2.3(b), 1987)

The city council may issue, sell and deliver any series of bonds by series resolution or supplement to indenture (which may be the general resolution or master indenture, respectively, referred to in Section 3.32.140 of this chapter to take effect upon adoption or delivery, as the case may be. Such series resolution or supplement to indenture shall:

A.

Define and state the estimated cost of the project or projects for which the series of bonds are proposed to be issued;

B.

State the principal amount of such series of bonds;

C.

State the maximum rate of interest on such series of bonds, if any, the maximum discount at which such series of bonds may be sold, if any, and the dates on which the interest thereon shall be payable; and

D.

State such other matters authorized by the bond law as are deemed appropriate by the city council.

(Ord. 2408 § 2.3(c), 1987)

Sections 54380 through 54387, inclusive, 54402(b), 54403 and 54418 of the bond law shall not apply.

(Ord. 2869 § 13, 2006: Ord. 2408 § 2.3(d), 1987)

As used in Sections 3.32.180 through 3.32.220 of this chapter:

A.

"Bond law" means the Revenue Bond Law of 1941, being Chapter 6, commencing with Section 54300 of Part 1 of Division 2 of Title 5 of the Government Code of the state, and in particular Article 11, commencing with Section 54660 thereof, and Article 10, commencing with Section 53570 and Article 11, commencing with Section 53580 of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code of the state.

B.

Enterprise. "Enterprise" has the meaning assigned to such term in Section 3.32.110 of this chapter.

C.

"Obligations" means all obligations payable by the city to any bank or other financial institution under any credit enhancement or liquidity arrangements made by the city pursuant to Section 3.32.080 of this chapter.

(Ord. 2408 § 3.1, 1987)

A.

Issue Refunding Bonds.

The city council may provide for the issuance of and authorize, issue, sell at public or private sale and deliver refunding revenue bonds of the city for the purpose of redeeming or retiring bonds issued by it, including any or all expenses incidental thereto or connected therewith.

Any outstanding bonds or other obligations of the city issued to finance any portion of the enterprise defined in the resolution or indenture providing for the issuance of the refunding bonds may be refunded under this section and Sections 3.32.170 and 3.32.190 through 3.32.220 of this chapter, without regard to whether the authority for their issuance was state law, chartered city procedure ordinance or otherwise, and regardless of whether the security therefor was the unlimited taxing power of the city, revenues of an enterprise, special assessments a combination of revenues of special assessments or otherwise.

B.

Redeem Bonds and Pledge Proceeds of Sale of Refunding Bonds and Revenues. The city council may redeem or retire the bonds or other obligations either at or prior to their maturity, as set forth in the resolution or indenture providing for the issuance of the refunding bonds, and may pledge, place a charge upon and assign all or any part of the proceeds of sale of such refunding bonds for the security of the bonds or other obligations to be refunded. Such proceeds may be invested in such manner as may be provided in such resolution or indenture. The city council may pledge, place a charge upon, and assign all or any part of the gross or net revenues of the enterprise defined in the resolution or indenture providing for the issuance of refunding bonds for the security of the refunding bonds.

C.

Bond Law. The city council has and may exercise all of the powers set forth in the bond law, subject to the restrictions therein set forth, except as otherwise expressly provided by this section and in Sections 3.32.170 and 3.32.190 through

Except as otherwise expressly provided in this chapter, the provisions of the bond law shall apply to the exercise of the powers set forth in Section 3.32.180 of this chapter.

(Ord. 2408 § 3.3(a), 1987)

The city council may authorize and provide for the issuance of the refunding bonds by a resolution or indenture to take effect upon adoption or delivery, as the case may be. Such resolution or indenture shall state:

A.

The purpose or purposes for which the refunding bonds are proposed to be issued;

B.

The limits, if any, on the total principal amount of the refunding bonds, subject to the provisions of Section 3.32.210 of this chapter;

C.

That the bonds are to be refunding revenue bonds, payable exclusively from the gross or net revenues of the enterprise and from such of the other funds referred to in Section 54478 of the bond law as shall be specified in the resolution or indenture;

D.

The maximum rate of interest on the refunding bonds, if any, the maximum discount at which such refunding bonds may be sold, if any, and the date on which the interest thereon shall be payable;

E.

That the bonds are not to be secured by the taxing power of the city; and

F.

Such other matters authorized by the bond law as are deemed appropriate by the city council.

(Ord. 2408 § 3.3(b), 1987)

The resolution or indenture authorizing and providing for the issuance of the refunding bonds shall state that the refunding bonds shall be issued in a principal amount sufficient to provide funds for the payment of all of the following:

A.

All bonds to be funded or refunded by the refunding bonds;

B.

All expenses incident to the calling, retiring or paying of the outstanding bonds and the issuance of the refunding bonds, including the difference in amount between the par value of the refunding bonds and any amount less than that for which the refunding bonds may be sold;

C.

Interest upon the refunding bonds from the date of sale to the date of payment of the bonds to be funded or refunded out of the proceeds of the sale or the date upon which the bonds to be funded or refunded will be paid pursuant to the call or agreement with the holders of such bonds; and

D.

Any premium necessary in the calling or retiring of the outstanding bonds and the interest accruing on them to the date of the call or retirement.

(Ord. 2408 § 3.3(c), 1987)

Sections 54380 through 54387, inclusive, 54402(b), 54403 and 54418 and the last sentence of Section 54661 of the California Government Code shall not apply.

(Ord. 2869 § 14, 2006: Ord. 2408 § 3.3(d), 1987)

The city council may provide for the issuance of bonds for the combined purposes of financing an enterprise or a project or projects to improve an enterprise and to refund any outstanding bonds, in which event the provisions of Sections 3.32.110 through 3.32.220 of this chapter shall apply.

(Ord. 2408 § 4.1, 1987)

Whenever terms defined in Sections 3.32.110 through 3.32.220 of this chapter are used elsewhere in this chapter, they are used with the meaning assigned to them in any section, as appropriate to the context in which they are used.

(Ord. 2408 § 4.2, 1987)