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Section
11.28.1 Authorizing Resolution.
11.28.2 Council/Mayor Review of Authorizing Resolution.
11.28.3 Capital Plan or Budget.
11.28.4 Competitive/Private Sales of Revenue Bonds; Selection of Underwriters.
11.28.5 Approval of Financing Documents.
11.28.6 Award of Revenue Bonds.
11.28.7 Programs of Short Term Revenue Bonds.
11.28.8 Investment of Proceeds of Revenue Bonds.
11.28.9 Complete Authority; Prior Authorization.
Whenever the Department of Airports, the Harbor Department or the Department of Water and Power (each a “Department”) shall propose from time to time to exercise the power pursuant to Section 609 (“Section 609") of the Charter of The City of Los Angeles (the “Charter”) to issue bonds, refunding bonds, notes and other evidences of indebtedness or to otherwise incur revenue obligations (collectively defined as “Revenue Bonds” in Section 609), the Board of such Department shall adopt a resolution authorizing the issuance of such Revenue Bonds
(a) which resolution shall, at a minimum, specify:
(i) the purposes for which the proposed Revenue Bonds are to be issued,
(ii) the maximum principal amount of the Revenue Bonds proposed to be issued,
(iii) the maximum term for which any of said Revenue Bonds are to run, and
(iv) the maximum interest rate or cost, to be determined in the manner specified in said resolution, to be incurred through the issuance of such Revenue Bonds; and
SECTION HISTORY
Added by Ord. No. 172,353, Eff. 1-30-99.
Amended by: Ord. No. 173,234, Eff. 6-19-00, Oper. 7-1-00; Ord. No. 173,306, Eff. 6-30-00, Oper. 7-1-00.
Certified copies of such resolution shall be transmitted by the applicable Department to the offices of the Mayor and of the City Clerk, and the City Clerk shall forthwith present the said resolution to the Council. If the Council, by majority vote of its members, and the Mayor shall approve the resolution within the Time Period specified below, said resolution shall forthwith take effect upon such approval. If the Council shall disapprove the resolution within said Time Period, the resolution shall be disapproved. If the Mayor shall disapprove said resolution within said Time Period, the Mayor shall forthwith advise the Council and the Board, in writing, of such disapproval. The Council shall thereupon consider such disapproval in the same manner as upon the reconsideration of an ordinance notwithstanding the veto of the Mayor, and if upon such consideration the Council shall, by the vote of two-thirds of the whole Council, determine that the Mayor’s disapproval should be overruled, such disapproval by the Mayor shall be of no effect, and said resolution of the Board shall forthwith take effect. If neither the Mayor nor the Council shall act on said resolution within the Time Period specified below, the resolution of the Board shall be considered approved for purposes of Section 609 of the Charter and shall take effect upon the expiration of said Time Period. For purposes of this Article 6.5 of the Administrative Code, “Time Period” shall mean the calendar period consisting of the longer of thirty (30) calendar days or five (5) consecutive Council meetings (convened in regular session) following the receipt by the Council from the City Clerk of certified copies of such resolution.
SECTION HISTORY
Added by Ord. No. 172,353, Eff. 1-30-99.
Amended by: Ord. No. 173,234, Eff. 6-19-00, Oper. 7-1-00.
Not later than June 1 of each year, each Department shall provide, for information purposes only, to the Mayor and Commerce, Energy and Natural Resources Committee (the “Committee”) of the Council (or such successor committee as shall be deemed appropriate by the Council) and to the Controller, a capital plan or budget covering at least the next fiscal year describing:
i) the proposed capital expenditures of that Department,
ii) the proposed method(s) of financing such proposed expenditures including a discussion, if relevant, of financing alternatives, and
iii) a description of any proposed debt financings.
This transmittal is intended to provide the Mayor, Committee and Council with background information which may be useful to them in evaluating resolutions, if any, authorizing the issuance of Revenue Bonds for the Department which may be presented to the Council during the next fiscal year. Notwithstanding the foregoing, the Council shall have the authority to take any action pursuant to this Article 6.5 of the Administrative Code whether or not the Committee has previously received a capital plan or budget from such Department for that fiscal year.
SECTION HISTORY
Added by Ord. No. 172,353, Eff. 1-30-99.
Amended by: Ord. No. 173,234, Eff. 6-19-00, Oper. 7-1-00.
(a) Revenue Bonds shall be sold pursuant to a competitive bidding process in such manner as shall be acceptable to the Board of such Department; provided, however, that the Board of a Department may, by resolution or other action, authorize the sale of any of its Revenue Bonds pursuant to private sale if the chief financial officer of the Department determines that a private sale of such Revenue Bonds will be of benefit to, and in the financial interest of, the Department and provides a written report stating such determination and the reasons therefor, and the Department submits the matter to the Council as set forth in this Section 11.28.4(a). The Department shall notify the Director of the Office of Administrative and Research Services (“DOARS”) in writing that the Department intends to issue Revenue Bonds pursuant to private sale and shall transmit certified copies of the Board’s resolution or other action authorizing the sale of Revenue Bonds by private sale together with a copy of the above-mentioned report of the chief financial officer of the Department to the offices of the Mayor, of the DOARS and of the City Clerk. The City Clerk shall forthwith present said resolution or other action and the above-mentioned report to the Council. The DOARS shall timely deliver to the Council the report of the DOARS required by Section 609(d) of the Charter. At any time within the Time Period specified in Section 11.28.2 of the Administrative Code, the Council, by a majority vote of its members, may approve such resolution or other action of the Board, and if so approved, the resolution or other action of the Board shall take effect forthwith. If the Council shall disapprove the resolution or other action of the Board within the applicable Time Period, the resolution or other action shall be disapproved. If the Council does not act on said resolution within the Time Period so specified, the resolution or other action shall be considered approved for purposes of Section 609 of the Charter and shall take effect upon the expiration of said Time Period.
(b) The Board of a Department shall select the underwriting firm(s) for the private sale of Revenue Bonds by resolution or other Board action, and the Council shall be provided an opportunity to disapprove such selection in the manner set forth in this Section 11.28.4(b). The Board may include the selection of underwriting firm(s) in the resolution described in Section 11.28.1 of this Administrative Code, in a separate resolution or action to sell the Bonds pursuant to private sale described in Section 11.28.4(a) of this Administrative Code or in the action described in Section 11.28.5 of this Administrative Code or the Department may, by resolution or other Board action, separately select an underwriting firm or team of underwriting firms for any particular Revenue Bonds or for a fixed period of time, said separate resolution or other Board action being hereby subject to Council oversight pursuant to Section 245 of the Charter. In selecting underwriting firms, each Department shall, at a minimum, comply with the conflict of interest provisions set forth in Section 609(e) of the Charter and related ordinance provisions, including the provision which requires that an underwriting firm seeking selection as an underwriter of Revenue Bonds shall cause one of its officers to file a certification under oath that no disqualifying gifts or contributions described by Section 609 of the Charter were made.
SECTION HISTORY
Added by Ord. No. 172,353, Eff. 1-30-99.
Amended by: Ord. No. 173,234, Eff. 6-19-00, Oper. 7-1-00; Ord. No. 173,306, Eff. 6-30-00, Oper. 7-1-00; Subsec. (b), Ord. No. 182,264, Eff. 10-29-12.
Subject to the other provisions of this Article 6.5 of the Administrative Code and the provisions of Section 609 of the Charter, the Board may issue Revenue Bonds upon such terms and conditions as shall be acceptable to the Board. The Board shall approve the principal financing documents related to the Revenue Bonds including, but not limited to, trust agreements, indentures, offering documents, loan agreements, notices inviting bids, bond purchase agreements, bond insurance documents (including, but not limited to, reimbursement agreements and financial guaranty agreements relating to letters of credit, bond insurance and surety bonds) and interest rate swap agreements (collectively, the “financing documents”) in substantial form containing such terms and provisions as shall be acceptable to the Board. In connection with, or incidental to, the issuance or carrying of Revenue Bonds, a Department may enter into credit enhancement or liquidity agreements with payment, interest rate, security, default, remedy and other terms and conditions as shall be approved by the Board of such Department and any payments under such credit enhancement or liquidity agreement shall be payable from such source of funds as shall be approved by the Board of such Department. The resolution or other action may authorize the officers and staff of the Department to execute and deliver for and on behalf of the Department other documents, instruments and certificates necessary or desirable for the sale and delivery of the Revenue Bonds so long as such documents, instruments and certificates are consistent with the terms and conditions established by the Board. The resolution or other action of the Board approving such financing documents (if the approvals of such financing documents were not included in the resolution described in Section 11.28.1 of this Administrative Code or in a resolution approved pursuant to Section 11.28.4(a) of this Administrative Code) shall be subject to Council oversight pursuant to the provisions of Section 245 of the Charter.
SECTION HISTORY
Added by Ord. No. 172,353, Eff. 1-30-99.
Amended by: Ord. No. 173,234, Eff. 6-19-00, Oper. 7-1-00; Ord. No. 173,306, Eff. 6-30-00, Oper. 7-1-00.
The Department shall award Revenue Bonds sold pursuant to a competitive bidding process to the winning bidder thereof in accordance with the terms and conditions set out in the financing documents described in Section 11.28.5 above. Revenue Bonds sold by private sale shall be awarded by the Department by the execution of the bond purchase agreement with the underwriting firm(s) identified pursuant to Section 11.28.4(b) of this Administrative Code, provided that said bond purchase agreement shall contain such material terms and conditions as shall have previously been approved in a resolution or other Board action described in Section 11.28.1 or 11.28.5 of this Administrative Code. If the Board delegated the award of such Revenue Bonds to its General Manager or the General Manager’s designee pursuant to one or more resolution(s) or action(s) approved under Sections 11.28.2, 11.28.4 or 11.28.5 of this Administrative Code, such award within the parameters previously approved by the Board and the Council shall be final and shall not be subject to further review by the Council whether under Section 245 of the Charter or otherwise.
SECTION HISTORY
Added by Ord. No. 172,353, Eff. 1-30-99.
Amended by: Ord. No. 173,234, Eff. 6-19-00, Oper. 7-1-00; Ord. No. 173,306, Eff. 6-30-00, Oper. 7-1-00.
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