Ordinance No. 1004
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ORDINANCE NO. 1004
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AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF VERNON AMENDING THE CODE OF THE
CITY OF VERNON BY ADDING ARTICLE XI
ENTITLED "CITY OF VERNON MUNICIPAL
FACILITIES REVENUE BOND LAW" TO CHAPTER 2,
ADMINISTRATION, RELATING TO POWERS AND
PROCEDURES TO ISSUE REVENUE BONDS FOR THE
PURPOSE OF FINANCING MUNICIPAL FACILITIES
OF THE CITY, AND INCLUDING DEFINITIONS,
GENERAL PROVISIONS, POWERS, ISSUANCE
PROCEDURES AND CERTAIN SUPPLEMENTAL
PROVISIONS
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WHEREAS, the City of Vernon (the "City") is a municipal
corporation and charter city duly organized and existing under a
freeholders' charter pursuant to which the City has the right
and power to make and enforce all laws and regulations in
respect of municipal affairs and certain other matters in
accordance with and as more particularly provided in sections 3,
5 and 7 of Article XI of the Constitution of the State of
California and section 2.1 of Article II of the Charter of the
City (the "Charter"); and
WHEREAS, the City Council of the City, acting under and
pursuant to the powers reserved to the City under Sections 3, 5
and 7 of Article XI of the Constitution of the State of
California and section 2.1 of Article II of the Charter, finds
that the public interest and necessity require the adoption of
this ordinance to authorize, and establish the procedures for,
the sale and issuance of revenue bonds by the City for the
purpose of providing financing for the municipal facilities of
the city.
THE CITY COUNCIL OF THE CITY OF VERNON DOES ORDAIN AS
FOLLOWS:
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SECTION 1: The City Council of the City of Vernon
hereby finds and determines that the recitals contained
hereinabove are true and correct.
SECTION 2: Article XI entitled "City of Vernon
Municipal Facilities Revenue Bond Law" is hereby added to
Chapter 2, Administration, of the Vernon Municipal Code to read
as set forth in Exhibit A which is attached hereto and made a
part hereof by reference.
SECTION 3: If any section, subsection, sentence,
clause, or phrase or word of this ordinance is for any reason
held to be void or unconstitutional, such decision shall not
affect the validity of the remaining portions of this ordinance;
it being the intention of the City Council of the City of Vernon
to adopt and pass this ordinance and each section, subsection,
sentence, clause or phrase thereof irrespective of the fact that
one or more of the sections, subsections, clauses, sentences or
phrases thereof may be declared void or unconstitutional.
SECTION 4: There being no newspaper printed, published
or circulated in the City of Vernon, the City Clerk is hereby
directed to certify to the passage of this ordinance and shall
post the same, or cause the same to be posted, within fifteen
(15) days after its passage in accordance with Section 36933 of
the Government Code, in three (3) of the most public places in
the City of Vernon, to wit: the northwest corner of 38th street
and Santa Fe Avenue, the northeast corner of Leonis Boulevard
and Pacific Boulevard, and on the bulletin board in the lobby of
the City Hall of said City, located at 4305 Santa Fe Avenue, all
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1 in the City of Vernon, County of Los Angeles, state of
2 California.
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SECTION 5: This ordinance shall be in full force and
4 effect thirty (30) days from and after its passage of the same.
5 APPROVED AND ADOPTED this 13th day of November, 1991.
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ATTEST:
/f
BRUCE V.
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. ,~~,.LA:!~ ',(,,",,,(f ,
~ LEONIS C. ~ Ma~!
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MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA )
) ss
2 COUNTY OF LOS ANGELES )
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I, BRUCE V. MALKENHORST, City Clerk of the City of
4 Vernon, do hereby certify that the foregoing Ordinance, being
5 Ordinance No. 1004, was duly and regularly introduced at a
6 regular meeting of the City council of the City of Vernon, held
7 on Tuesday, November 5, 1991, and thereafter was finally adopted
8 at an adjourned regular meeting of said City Council held
9 on Wednesday, November 13, 1991, and thereafter was duly signed
10 by the Mayor of the City of Vernon, by the following vote:
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AYES: 5
Councilmen: Malburg, Ybarra, McCormic ,
Davis, Gonzales
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NOES: 0
councilmen:
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ABSENT: 0
councilmen:
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BRUCE V. MALKENHORST, City Clerk
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(SEAL)
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EXHIBIT A
CHAPTER 2
ADMINISTRATION
ARTICLE XI
CITY OF VERNON MUNICIP AL FACILITIES REVENUE BOND LAW
Sec. 2.70. Title.
This Article may be cited as the City of Vernon Municipal Facilities Revenue Bond Law.
Sec. 2.71. Purpose.
The Council hereby finds and declares that it is necessary, essential, a public purpose and a
municipal affair for the City to provide financing for municipal facilities serving residents and
businesses of the City in the interests of the public health, safety and welfare.
Sec. 2.72. Definitions.
Unless the context otherwise requires, the following definitions shall govern the
construction of this Article:
Acquisition and Construction mean, with respect to any Facility or portion thereof, the
acquisition, construction, improvement, furnishing, equipping, remodeling, repair, reconstruction
or rehabilitation thereof.
Article means this Article XI of Chapter 2 of the Vernon City Code, as amended from time
to time in accordance herewith.
Bonds mean any bonds, notes, installment sale agreements, leases or other obligations
issued or entered into by the City pursuant to this Article for the purpose of financing the Costs of
a Facility, which are payable exclusively from Revenues relating to such Facility and other funds
permitted by this Article.
Charter means the charter of the City, as amended from time to time.
City means the City of Vernon, California, a charter city in the State existing under and
exercising powers pursuant to the Charter and the Constitution of the State.
City Council means the City Council of the City.
Costs mean, with reference to a Facility or any portion thereof, any or all of the following
costs incurred for the Acquisition and Construction thereof:
(a) Obligations of the City incurred for labor and materials in connection
with the Acquisition and Construction of such Facility or portion thereof;
(b) The cost of Acquisition and Construction of any property, whether
real or personal and improved or unimproved, including franchise rights and other
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intangible property, and any interests therein, required for the Acquisition and
Construction of such Facility or portion thereof;
(c) The cost of demolishing, removing or relocating any building or
structure, and the cost of making relocation assistance payments required by law;
(d) The cost of contract bonds and of insurance of all kinds that may be
required or necessary during the course of the Acquisition and Construction of such
Facility or portion thereof;
(e) All costs of engineering, legal and consultant services, including the
costs of the City for surveys, estimates, plans and specifications and preliminary
investigation therefor, and for supervising construction, as well as for the
performance of all other duties required by or consequent upon the proper
Acquisition and Construction of such Facility or portion thereof;
(f) All costs incurred in connection with proceedings by the City
necessary to comply with the California Environmental Quality Act of 1970, as
amended;
(g) All amounts required to fund any reserve funds for Bonds and any
interest on Bonds becoming due and payable during a period not exceeding the
period of Acquisition and Construction of such Facility or portion thereof, and for
12 months thereafter,
(h) All costs of issuance of the Bonds;
(i) All costs which the City shall be required to pay, under the terms of
any contract or contracts, for the Acquisition and Construction of such Facility or
portion thereof;
(j) The refinancing of any existing indebtedness relating to such Facility
or portion thereof; and
(k) Any sums required to reimburse the City for advances made for any of
the above items, or for any other costs incurred and for work done which are
properly chargeable to such Facility or portion thereof.
Facility means any land, improvements, facilities, equipment and other property of any
nature whatsoever, which are used in any municipal operation of the City. Such municipal
operations may include, but shall not be limited to, anyone or more of the following: (a) the
system of the City for the generation, production, transmission and distribution of electricity, gas
and other forms of energy for lighting, heating, and power for public or private uses; (b) the
system of the City for the acquisition, storage, treatment and distribution of water for domestic
use, irrigation, sanitation, industrial use, fire protection, recreation or any other public or private
use; (c) the system of the City for the collection, treatment and disposal of sewage, waste or storm
water, including drainage; (d) public parking lots, garages or other automotive or vehicular parking
facilities, including any and all public off-street vehicular parking facilities; (e) hospitals and
facilities appurtenant thereto; (f) public golf courses and facilities and improvements in connection
therewith; and (g) any other facility for which the City is authorized to provide financing through
the issuance of revenue bonds. The precise description of any Facility for which financing is
provided under this Article shall be set forth in the proceedings of the City Council authorizing
such financing.
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Revenues mean, with respect to a Facility, all gross income and revenue received by the
City from the ownership and operation of such Facility, including all fees and charges received by
the City for the services of such Facility and all other income and revenue howsoever derived by
the City from the ownership and operation of such Facility or arising from such Facility, and
including all receipts derived from the investment of such income or revenues, including moneys
deposited in a sinking, redemption or reserve fund or other fund to secure the Bonds or to provide
for the payment of the principal of or interest on the Bonds and such other moneys as the City
Council may in its discretion make available therefor. With respect to any grant anticipation notes
issued under this Article, the term Revenues shall also include the revenues derived from the
proceeds of any federal or State grant with respect to such Facility. The precise description of the
Revenues with respect to any Facility for which fmancing is provided under this Article shall be set
forth in the proceedings of the City Council authorizing such fmancing.
State means the State of California.
Sec. 2.73. General powers.
In connection with the Acquisition and Construction of a Facility by the City, the City is
authorized and empowered:
(a) To issue Bonds for the purpose of financing or otherwise assisting the
payment of the Costs of such Facility and for the purpose of funding or refunding any
issue of Bonds.
(b) To establish the terms and conditions for the financing of any component of
such Facility undertaken pursuant to this Article.
(c) To employ or contract for such legal, consultant, underwriting, economic
feasibility, or other services in connection with the financing of such Facility, or to contract
for Bond insurance or other forms of collateral security, as may be necessary in the
judgment of the City Council for the successful financing of such Facility and the issuance
and sale of Bonds therefor.
(d) In addition to all other powers specifically granted in this Article, to do all
things necessary or convenient, in the judgement of the City Council, to carry out the
purposes of this Article.
Sec. 2.74. Authorization of bonds.
The City may issue its Bonds for the purpose of financing or otherwise assisting the
Acquisition and Construction of all or any portion of a Facility as authorized by this Article. Every
issue of Bonds shall be a special obligation of the City, payable solely from all or any part of the
Revenues with respect to such Facility. It shall not be necessary that the issuance of any Bonds be
subject to authorization by the voters of the City.
Sec. 2.75. Issuance of bonds.
Bonds may be issued as serial Bonds or as term Bonds, as current interest Bonds or capital
appreciation Bonds, or in such other or additional forms as the City Council may deem advisable.
The Bonds shall be authorized by resolution of the City Council and shall bear such date or dates,
mature at such time or times, bear interest at such fixed or variable rate or rates, be payable at such
time or times, be in such denominations, be in such form, carry such registration privileges, be
executed in such manner, be payable in lawful money of the United States of America at such place
or places, and be subject to such terms of redemption as the City Council may provide. The Bonds
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may be sold at either a public or private sale and for such prices as the City Council shall
determine.
Sec. 2.76. Terms of bonds.
Any proceedings of the City authorizing Bonds for a Facility may contain provisions
respecting any of the following terms and conditions, which shall be a part of the contract with the
owners of the Bonds:
(a) The pledge of all or any part of the related Revenues, subject to such
agreements with Bond owners as may then exist.
(b) The creation of any mortgage, lien or other security interest on any part of a
Facility, or on any other funds, rights or assets of the City of any nature whatsoever
relating to such Facility.
(c) The interest and principal to be received and other charges to be charged and
the amounts to be raised each year thereby, and the use and disposition of such Revenues.
(d) The setting aside of reserves or sinking funds and the regulation and
disposition thereof.
(e) Limitations on the purposes to which the proceeds of a sale of any issue of
Bonds, then or thereafter issued, may be applied, and pledging such proceeds to secure the
payment of the Bonds or any issue of Bonds.
(f) Limitations on the issuance of additional Bonds, the terms upon which
additional Bonds may be issued and secured, and the refunding of outstanding Bonds.
(g) The procedure, if any, by which the terms of any contract with Bond owners
may be amended or abrogated, the amount of Bonds the owners of which must consent
thereto, and the manner in which such consent may be given.
(h) Specification of the acts or omissions to act which shall constitute a default in
the duties of the City to the owners of the Bonds, and providing the rights and remedies ,of
such owners in the event of default.
(i) Such other terms and conditions pertaining to the issuance of the Bonds as are
deemed advisable by the City Council.
Sec. 2.77. Issuance under indenture or trust agreement.
In the discretion of the City Council, any Bonds issued under the provisions of this Article
may be secured by a trust agreement or indenture by and between the City and a corporate trustee
or trustees, which may be any trust company or bank having the powers of a trust company within
or without the State. Such trust agreement or the indenture may pledge or assign the Revenues to
be received or proceeds of any contract or contracts pledged, and may conveyor mortgage any
property. Such trust agreement or indenture may contain such provisions for protecting and
enforcing the rights and remedies of the Bond owners as may be reasonable and proper and not in
violation of law, including such provisions as is permitted to be included in any resolution or
resolutions of the City Council authorizing the issuance of Bonds hereunder. Any bank or trust
company doing business under the laws of the State which may act as depository of the proceeds
of Bonds or of Revenues or other moneys may furnish such indemnity bonds or pledge such
securities as may be required by the City. Any such trust agreement or indenture may set forth the
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rights and remedies of the Bond owners and of the trustee or trustees, and may restrict the
individual right of action by Bond owners. In addition to the foregoing, any such trust agreement
or indenture may contain such other provisions as the City Council may deem reasonable and
proper for the security of the Bond owners.
Sec. 2.78. Personal liability.
Neither the members of the City Council nor any person executing the Bonds shall be liable
personally on the Bonds or be subject to any personal liability or accountability by reason of the
issuance thereof.
Sec. 2.79. Refunding bonds.
The City Council may provide for the issuance of Bonds any portion of which is to be used
for the purpose of refunding outstanding Bonds, including the payment of the principal thereof and
interest and redemption premiums, if any, thereon. The proceeds of Bonds issued to refund any
outstanding Bonds may, in the discretion of the City Council, be applied to the retirement of such
outstanding Bonds at maturity, or the redemption (on any redemption date) or purchase of such
outstanding Bonds prior to maturity, upon such terms and subject to such conditions as the City
Council shall deem advisable.
Sec. 2.80. Repayment of bonds.
Revenues, or any portion thereof, as designated in the resolution, trust agreement or
indenture authorizing the issuance of the Bonds, shall be the sole-source of funds pledged by the
City for repayment of Bonds issued hereunder. Bonds issued hereunder shall not be deemed to
constitute a debt or liability of the City or a pledge of the faith and credit of the City but shall be
payable solely from Revenues. All Bonds shall contain on the face thereof a statement to the
following effect:
Neither the faith and credit nor the taxing power of the City of Vernon is
pledged to the payment of the principal of or interest on this Bond.
The issuance of Bonds shall not directly, indirectly or contingently obligate the City
Council to levy or pledge any form of taxation or to make any appropriation for their payment.
Sec. 2.81. Trust funds.
All moneys received pursuant to the provisions of this Article, whether proceeds from the
sale of Bonds or Revenues or other moneys or assets authorized by this Article to be pledged to
secure payment of Bonds, shall, to the extent set forth in the resolution or trust agreement
authorizing the issuance of the Bonds, be deemed to be trust funds to be held and applied solely for
the purposes of this Article. Any bank or trust company in which such moneys are deposited shall
act as trustee of such moneys and shall hold and apply the same for the purposes specified in this
Article, subject to the terms of the resolution, agreement or indenture authorizing the Bonds.
Sec. 2.82. Purchase of bonds by city.
The City shall have the power out of any funds available therefor to purchase its Bonds.
The City may hold, pledge, cancel or resell such Bonds, subject to and in accordance with its
agreement with Bond owners.
Sec. 2.83. Bond anticipation notes.r
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In anticipation of the sale of Bonds authorized by this Article, the City is hereby authorized
to issue bond anticipation notes, and to renew the same from time to time, in such series and
amounts as are determined by the City Council to be necessary or appropriate for the Costs of a
Facility approved by the City Council. Such notes shall be payable from Revenues or other
moneys or assets authorized by this Article to be pledged to secure payment of Bonds, and which
are not otherwise pledged, or from the proceeds or sale of the particular Bonds in anticipation of
which they are issued. Such notes shall be issued in the same manner as other Bonds which are
authorized to be issued hereunder.
Sec. 2.84. Grant anticipation notes.
In anticipation of the receipt of funds derived from any federal or State grants with respect
to a Facility or any portion thereof, the City is hereby authorized to issue grant anticipation notes,
and to renew the same from time to time, in such series and amounts as are determined by the City
Council to be necessary or appropriate for the Costs of a Facility approved by the City Council and
reimbursable from such grants. Such notes shall be payable from the revenues derived from the
proceeds of such grants or other moneys or assets authorized by this Article to be pledged to secure
payment of Bonds, and which are not otherwise pledged, or from the proceeds or sale of the
particular Bonds in anticipation of which they are issued. Such notes shall be issued in the same
manner as other Bonds which are authorized to be issued hereunder.
Sec. 2.85. Liberal construction.
This Article, being necessary for the health, welfare and safety of the City, its residents and
businesses, shall be liberally construed to effect its purposes. Furthermore, the City Council
hereby declares that this Article is an exercise of the power granted to the City by the City Charter
and the Constitution of the State and is an exercise by the City of its powers as to municipal affairs
and its police powers, and this Article shall be liberally construed to uphold its validity under the
laws of the State.
Sec. 2.86.
alternative.
Provisions of this article are complete, additional and
This Article shall be deemed to provide a complete, additional and alternative method for
doing the things authorized hereby, and shall be regarded as supplemental and additional to the
powers conferred by other laws. The issuance of Bonds under the provisions of this Article need
not comply with the requirements of any other law applicable to the issuance of bonds for a
Facility. The purposes authorized hereby may be effectuated and Bonds are authorized to be
issued for any such purposes under this Article notwithstanding that any other law may provide for
such purposes or for the issuance of bonds for like purposes and without regard to the
requirements, restrictions, limitations or other provisions contained in any other law.
Sec. 2.87. Judicial validation proceedings.
An action may be brought pursuant to Chapter 9 (commencing with Section 860 of Title 10
of Part 2 of the Code of Civil Procedure) to determine the validity of Bonds and the legality and
validity of all proceedings previously taken and proposed to be taken for the authorization,
issuance, sale, and delivery of the Bonds and for the payment of the principal thereof and interest
thereon.
Sec. 2.88. Amendment of article.
This Article shall not be amended so as to have a material, adverse affect upon the rights of
the owners of any outstanding Bonds theretofore issued hereunder, without the written consent of
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such Bond Owners; provided, however, that this Article may be amended at any time (a) to make
such provisions for the purpose of curing any ambiguity, or of curing, correcting or supplementing
any defective provision herein contained, as the City may deem necessary or desirable; or (b) if
such amendment does not materially impair or adversely affect the interests of any such Bond
owner in the opinion of the City Council; or (c) if such amendments apply solely to Bonds not
theretofore issued.
Sec. 2.89. Article controlling.
To the extent that the provisions of this Article are inconsistent with the provisions of any
general statute or special act or parts thereof, the provisions of this Article shall be deemed
controlling.
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SUPPORTING
DOCUMENTS
AFFIDAVIT OF POSTING
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS
CITY OF VERNON
I, GLORIA J. OROSCO, CHIEF DEPUTY CITY CLERK of the
City of Vernon, do hereby certify that I did, on the 19th day of
November 1991, have posted three (3) copies of:
Ordinance No. 1004 of the City of Vernon
one in each of the following places, to wit: at the northwest
corner of 38th Street and Santa Fe Avenue; the northeast corner
of Leonis Boulevard and Pacific Boulevard; and on the bulletin
board in the lobby of the City Hall of the City of Vernon,
located at 4305 Santa Fe Avenue, all in said city, there being no
newspaper of general circulation printed and published in the
ci ty ff Vernon.
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'>>Date: November 19, 1991
Clerk
Subscribed and sworn to before me
this \q~day of~0.\)<.L<:nbQ.R.' 1991.
sR~ -i::Chc;Ru~~
Notary Public in and for the County
of Los Angeles, State of California
:pstngafd
... OFFICIAL SEAL
.' ,..... SHARON l,. OUCKWORlH
. Notary fI\eIc.COtlfomlO
. · LOS ANQEW COUN1V
My COlmIIIIlon &pit..
.k.ne 9. 1995