Chapter 3.42
CAPITAL IMPROVEMENT BOARD

Sections:

3.42.010    Declaration of public uses and purposes.

3.42.020    Municipal affair.

3.42.030    Effect of chapter upon other law.

3.42.040    Definitions.

3.42.050    Establishment of board.

3.42.060    Powers of the authority.

3.42.070    Revenue bonds.

3.42.080    Validating proceedings.

3.42.090    Liberal construction.

3.42.100    Partial invalidity.

3.42.010 Declaration of public uses and purposes.

The council finds and determines that the construction, acquisition, maintenance and improvement of public facilities and improvements within the city and the performance of all undertakings incidental or advantageous thereto are public purposes for which public money may be spent and private property acquired, and are governmental functions. (Ord. 1059 § 1 (part), 1986)

3.42.020 Municipal affair.

The council finds and determines that the activities set forth in Section 3.42.010 are municipal affairs, necessary and appropriate to a municipal corporation and the general welfare of its inhabitants, and are not prohibited by the Constitution of the state nor by the City Charter. (Ord. 1059 § 1 (part), 1986)

3.42.030 Effect of chapter upon other law.

This chapter shall not affect any other provision of law relating to the same or a similar subject but provides an alternative method of procedure governing the subject to which it relates; and it shall not abridge, modify or otherwise affect the right of the city to exercise any power given to it by the Constitution or any other law. (Ord. 1059 § 1 (part), 1986)

3.42.040 Definitions.

Unless the context otherwise requires, the definitions set forth in this section shall govern the construction of this chapter.

A. “Board” means the public body established pursuant to Section 3.42.050 of this chapter.

B. “Bonds” means any revenue bonds issued by the authority pursuant to the provisions of this chapter.

C. “City” means the city of San Luis Obispo.

D. “Chapter” means this chapter, as originally adopted or as subsequently amended.

E. “Project” means the construction, acquisition, maintenance or improvement of public facilities and improvements authorized by this chapter.

F. “Public facilities and improvements” means any physical structure of a public nature and use which public entities are traditionally authorized to construct, acquire, operate, maintain and improve in the furtherance of public purposes, including interests in real property, equipment, furnishings and other appurtenances which are incidental thereto.

G. “State” means the state of California. (Ord. 1059 § 1 (part), 1986)

3.42.050 Establishment of board.

A. There is hereby created and established within the city a public body corporate and politic known as the city capital improvement board, a public facilities financing authority.

B. The board shall hold meetings at such times as it shall determine. The concurring votes of three members of the governing body of the board shall be required for the taking of action.

C. The members of the council shall act ex officio as the governing body of the board. At its organizational meeting the board shall adopt bylaws governing the conduct of its affairs in any manner deemed advisable by the board and not inconsistent with the terms of this chapter. Such bylaws may be amended from time to time by the governing body of the board.

D. At least once annually the board shall prepare and make available to interested members of the public a statement of all its financial affairs, audited by independent certified public accountants.

E. The council may order the dissolution of the board if the board has no outstanding indebtedness and is not a party to any outstanding material contracts, and if the unanimous written consent of the members of the board is first obtained. (Ord. 1059 § 1 (part), 1986)

3.42.060 Powers of the authority.

A. Corporate Powers. The board may:

1. Sue and be sued, have a seal and make and execute contracts and other instruments necessary or convenient to the exercise of its powers.

2. Make, and from time to time amend and repeal, bylaws and regulations not inconsistent with this chapter to carry into effect the powers and purposes of this chapter.

3. Select and appoint or remove such permanent and temporary officers, agents, counsel and employees, as it requires, and may determine their qualifications, duties and compensation. The powers of the board under this subsection are subject to all limitations and rights applicable to similar employment by the city, unless by resolution the council otherwise determines.

B. Acquisition and Disposal of Property – Facilities-Insurance. The board may:

1. Purchase, lease, obtain option upon, acquire by gift, grant, bequest, devise or otherwise, any real or personal property within the city, or any interest in, or improvements on, such property.

2. Sell, lease, exchange, transfer, assign, encumber (by mortgage, deed of trust, or otherwise) or otherwise dispose of any real or personal property or any interest in such property.

3. Insure any of its real or personal property or operations against risks or hazards.

C. Maintenance and Management. The board may acquire, construct, rent, lease, maintain, repair, manage and operate all or any portion of any real and personal property, including the leasing of the operation of the property, and the leasing for commercial purposes of surplus space or space which it is not economic to use for public purposes. Leases may be negotiated without competitive bidding or awarded after competitive bidding in such manner as may be established by the board.

D. Construction, Acquisition, Maintenance and Improvement of Public Facilities and Improvements. The board may do any act to construct, acquire, maintain and improve public facilities and improvements within the city, to devote such facilities and improvements to uses and activities consistent with the public purposes of this chapter and to acquire and construct such facilities and improvements on real property owned, controlled or operated by it, or on property leased by it from the city, as may be necessary or appropriate to such uses and activities.

E. Receipt and Expenditures of Funds. The board may receive, control and order the expenditure of any and all money and funds pertaining to public facilities and improvements or related properties, including, but not limited to:

1. All revenue derived from operations of the board;

2. All money appropriated or made available by the city for such purpose;

3. The proceeds of all financial aid or assistance by the state or the federal government;

4. The proceeds of all bonds issued pursuant to this chapter,

5. The proceeds of all bonds or other obligations issued by the city for public facilities or improvements.

F. Investments. The board may invest funds held in reserve or sinking funds, or funds not required for immediate disbursement, in property or securities in which cities may legally invest funds subject to their control under the laws of the state. No such investment shall be made in contravention of any covenant or agreement with the holders of the bonds of the authority issued and outstanding.

G. Borrowing. The board may borrow money or accept financial or other assistance from the city, the state, the federal government, or any other source for or in aid of any public facility or improvements within the city, and to such ends may comply with any conditions attached thereto.

H. Exercise of powers. The board may exercise all or any part or combination of the powers granted by this chapter

I. Necessary or Convenient Acts. The board may do and perform any and all other acts and things necessary, convenient, desirable or appropriate to carry out the provisions of this chapter.

J. Use of Services and Facilities of City. In order that there may be no unnecessary duplication of effort or expense, the board may provide for the furnishing of services by, and the use of facilities of, any department, office or agency of the city in lieu of, or in conjunction with, the direct provision by the board of services and the use of facilities through employment or purchase or other means. The furnishing of such services and the use of such facilities of any such department, office or agency shall be upon such terms and conditions as may be approved by the board and the council. (Ord. 1059 § 1 (part), 1986)

3.42.070 Revenue bonds.

A. Power to Borrow and Issue Bonds – Nature of Bonds. The board shall have the power to borrow money to provide funds for any project and to issue in its name revenue bonds to evidence the indebtedness created by such borrowing. The bonds of each issue shall constitute special obligations, and evidence a special indebtedness, of the authority, and shall be a charge upon and payable solely for such revenues and funds as are specified therein and in the proceedings for their issuance. Such bonds shall not constitute obligations nor evidence any indebtedness of the city.

B. Recitals. All such bonds shall recite upon their face, in substance, that they constitute special obligations, and evidence a special indebtedness, of the board, payable, both as principal and interest, and as to any premiums upon the redemption of any thereof, solely from such revenues and funds as are specified therein and in the proceedings for their issuance, and shall also recite upon their face that they are issued under this chapter.

C. Types of Bonds –Sources of Payment. The board may issue such types of bonds as it determines, including bonds on which the principal and interest are payable:

1. Exclusively from the income and revenue of the facilities or improvements financed with the proceeds of the bonds, or with such proceeds and financial assistance from the state or federal governments or from any other source in aid of such projects.

2. Exclusively from the income and revenue of certain designated facilities or improvements, whether or not such facilities were financed in whole or in part with the proceeds of the bonds, and including income or revenue from any future extension, betterment or addition to any such facilities thereafter to be established.

3. From its revenues generally, including revenue from the leasing of public facilities and improvements owned or leased to it.

4. From any contributions or other financial assistance from the city, the state or federal governments, or from any other source.

5. From any combination of these sources.

D. Terms and Conditions. Except as limited by express provision of this chapter, the board, by resolution, or by trust indenture, contract or other agreement with or for the benefit of the bondholders, may determine all the terms and conditions of each issue, series or division of bonds and of their sale and issuance, and all matters necessary or appropriate in connection with the bonds.

E. Contract with Bondholders. The board may provide that any resolution, trust agreement or indenture adopted or entered into in connection with the authorization of any bonds shall constitute a contract with the holders of such bonds, not subject to repeal, and not subject to any modification other than to the extent and in a manner provided in any such resolution.

F. Covenants and Agreements. The board may provide for such covenants and agreements on the part of the board as it deems necessary or advisable for the better security of any bonds.

G. Provisions for Security and Marketability. The board may provide for such other acts and matters as it may deem to be necessary, convenient or desirable to secure the bonds or to make them more marketable.

H. Issuance and Sale of Bonds.

1. The bonds may be issued and sold as the board determines and directs, at public or private sale, at or below their par value and at a rate of interest not to exceed the rate determined by the authority in the resolution providing for the issuance thereof. The bonds shall be payable at the times and in the amounts determined by the board in such resolution.

2. Without limiting the generality of the foregoing, the bonds may also be issued directly to the seller of land, improvements or property acquired for board purposes, as all or part of the purchase price thereof, on such terms as may be established by the agreement for acquisition. (Ord. 1059 § 1 (part), 1986)

3.42.080 Validating proceedings.

An action to determine the validity of any bonds issued by the board under this chapter or of any contracts entered into by the board under this chapter may be brought pursuant to Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the Code of Civil Procedure. (Ord. 1059 § 1 (part), 1986)

3.42.090 Liberal construction.

This chapter, being necessary for the health, welfare and safety of the city and its residents, shall be liberally construed to effect its purposes. Furthermore, the council declares that this chapter 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 chapter shall be liberally construed to uphold its validity under the laws of the state. (Ord. 1059 § 1 (part), 1986)

3.42.100 Partial invalidity.

If any section, paragraph, sentence, clause or phrase of this chapter shall for any reason be held illegal or unenforceable, such holding shall not affect the validity of the remaining portions of this chapter. The council declares that it would have adopted this chapter and each and every other section, paragraph, sentence, clause or phrase of this chapter and authorized the proceedings authorized to be taken pursuant thereto irrespective of the fact that any one or more sections, paragraphs, sentences, clauses or phrases of this chapter may be held illegal, invalid or unenforceable. (Ord. 1059 § 1 (part), 1986)