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The Council, exercising the powers reserved to the City under the Constitution of the State of California, and its power under the provisions of the Charter of the City, may determine that bonds, notes, certificates or other evidence of indebtedness (hereinafter referred to as “bonds”) shall be issued as provided in this article to pay or provide for the payment of “Judgment Obligations", as hereinafter defined. “Judgment Obligations” means one or more of the following:
(a) all or any portion of an outstanding indebtedness in the form of a judgment entered by a court (hereinafter referred to as a “judgment”), including but not limited to: a judgment entered by a court after trial or otherwise; a consent judgment approved or entered by a court; and a judgment entered by a court pursuant to the terms of a settlement agreement entered into by the City and one or more third parties for the purpose of resolving claims the third party or parties filed against the City in a court, whether in each case it is evidenced by such judgment or stipulation or by a warrant issued to the judgment creditor; and
(b) all or any portion of an obligation or indebtedness of the City (whether in the form of a contractual obligation or evidence of indebtedness, including, but not limited to, bonds or any interfund borrowing made by the City), provided that the proceeds of such obligation, indebtedness (or portion thereof) were used to pay a judgment owed by the City or a warrant issued to evidence a judgment; and
(c) all or any portion of the principal of any bond issued to pay an obligation or indebtedness described in (a) or (b) above previously issued or incurred by the City; provided that the proceeds of such bond (or portion thereof) were used to pay a judgment owed by the City or a warrant issued to evidence a judgment.
Bonds may be issued: (i) to pay Judgment Obligations; (ii) to reimburse the City for any advance made to pay any Judgment Obligations if prior to that advance the City determines that the advance is being made in anticipation of the issuance of such bonds; (iii) to pay the costs of issuance of such bonds; and (iv) to pay any bond issued to pay Judgment Obligations at the maturity thereof, or to refund any such bond.
Bonds may be issued to pay a Judgment Obligation consisting of a judgment entered by a court pursuant to the terms of a settlement agreement only if the Council finds, based on facts presented by the City Attorney and recommendations by the City Administrative Officer and the Chief Legislative Analyst, that the settlement is in the best interests of the City, and if the Council shall also have determined, based on information presented by the City Administrative Officer, that there are no other sources of available money to pay the settlement amount on a timely basis pursuant to the terms of the settlement. In the case of any interfund borrowing or advance in anticipation of the issuance of bonds, the Council shall find on or about the time of approval of (i) a settlement or, if applicable, a judgment, or (ii) the expenditure for payment of such settlement or judgment, that the City intends to make an interfund borrowing or advance to pay the settlement or judgment on an interim basis, which loan or advance will be refunded or reimbursed with the proceeds of a bond issuance; provided that such finding shall be made prior to such interfund borrowing or advance. Any advance or interfund borrowing made to pay any settlement or judgment which may be refinanced with a bond shall constitute an indebtedness owed to the fund from which such advance or interfund borrowing was made. Any settlement or judgment conforming to the requirements of this paragraph and approved by Council prior to the effective date of the ordinance adding this paragraph to the Los Angeles Administrative Code or the ordinance amending this paragraph, as applicable, may be paid from the proceeds of bonds.
In addition to the authorizations provided hereinabove, the Council may determine that bonds shall be issued in reliance upon the authority of the general laws of the State, including, without limitation, Article 10 and Article 11 (commencing with Section 53570 and Section 53580, respectively) of Chapter 3 of Division 2 of Title 5 of the California Government Code.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Amended by: Ord. No. 171,915, Eff. 3-16-98; Last Para., Ord. No. 180,618, Eff. 5-12-09; Subsecs.(a), (b), and Two Paras. Preceding Last Para., Ord. No. 180,882, Eff. 10-26-09; In Entirety, Ord. No. 184,667, Eff. 1-16-17.
Whenever the Council deems it necessary for the City to issue bonds to pay or provide for the payment of a Judgment Obligation, it shall by resolution:
(a) State that it deems it necessary to incur the indebtedness and authorize the issuance of bonds.
(b) Specify the maximum amount of the debt to be incurred and the maximum amount of bonds to be issued.
(c) State the maximum term of the bonds to be issued, which term shall not exceed 15 years.
(d) Specify the maximum rate of interest which the bonds shall bear.
(e) Prescribe the form of the bonds.
(f) Fix a time and place for payment of the principal of and interest on the bonds.
(g) Prescribe such other terms relating to the bonds as the City deems necessary or proper.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Amended by: Ord. No. 171,915, Eff. 3-16-98; Subsec. (c), Ord. No. 180,882, Eff. 10-26-09.
The Council may provide for the redemption of bonds issued under this article before maturity at prices it determines. A bond shall not be subject to call or redemption prior to maturity unless it contains a recital to that effect. Notice of redemption shall be published at such time and in such manner as the Council may provide in the documents governing the issuance of the bonds.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
The City may sell the bonds at such times and in such manner as the Council deems to be in the public interest. In lieu of selling bonds by competitive or private sale, bonds may be sold by negotiated sale, provided the City makes the findings required by Los Angeles Administrative Code Section 11.5.1(b)(1)(III).
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Amended by: Ord. No. 180,882, Eff. 10-26-09.
The bonds shall be signed by the Mayor, or such other officer as the Council authorizes by resolution adopted by a majority vote of all its members, and by the Treasurer. They 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 such officer before the delivery of the bonds, the officer’s signature shall be as effective as if the officer had remained in office.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Bonds issued under this article shall be unconditional obligations of the City, payable as to principal, premium (if any) and interest from all taxes, income, revenue, cash receipts and other legally available moneys of the City. From and after the date of issuance of any bonds under this article, there shall be appropriated from the General Fund of the City in each fiscal year a sum sufficient to pay the principal of, premium (if any) and interest on the bonds due and payable (whether by maturity, mandatory sinking fund redemption, tender for purchase or otherwise) in such fiscal year, together with an amount sufficient to pay liquidity or other credit enhancement costs relating to the bonds of such fiscal year (collectively, the “Annual Debt Service”). In each fiscal year, appropriate officials of the City shall perform each and every act necessary to ensure the budgeting, appropriation and payment of debt service on the bonds.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Amended by: Last Sentence, Ord. No. 180,882, Eff. 10-26-09.
Whenever any bonds issued under this article are sold and the proceeds are deposited into the City Treasury, the City Attorney shall have control over the expenditure of the bond proceeds, unless otherwise provided by the Council, and shall cause the bond proceeds to be expended to pay Judgment Obligations unless such amounts are used to reimburse the City for advances described in clause (ii) of Section 11.27, as hereinabove provided. The bond proceeds shall be expended in the same manner as provided in the Charter for the payment of other funds from the City Treasury, in accordance with applicable federal and state laws.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Amended by: Ord. No. 171,915, Eff. 3-16-98; Ord. No. 180,882, Eff. 10-26-09.
Bonds issued under this article shall be subject to the provisions of Division 11, Chapter 1, Article 8, Section 11.33 of this Code.
SECTION HISTORY
Added by Ord. No. 167,351, Eff. 11-23-91.
Except for the provisions of Section 11.27.9 of this article, 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. 167,351, Eff. 11-23-91.
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