§ 4.40.020. Financing facilities.

A.

The city is authorized to make, purchase, or otherwise contract for the making of, a mortgage or other secured or unsecured loan, with the proceeds of bonds and upon such terms and conditions as the city shall deem proper, to any participating party for the costs of a facility.

B.

The city is authorized to acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip and lease as lessee, with the proceeds of bonds, a facility solely for the purpose of selling or leasing as lessor such facility to such participating party, and is further authorized to make any contracts for such purposes. The city is also authorized to contract with such participating party to undertake on behalf of the city to construct, enlarge, remodel, renovate, alter, improve, furnish and equip such facility.

The city is authorized to sell or lease upon such terms and conditions as the city shall deem proper, to a participating party any facility owned by the city under this Chapter, including a facility conveyed to the city in connection with a financing authorized by this Chapter but not being financed hereunder.

C.

Any person may apply to the city for approval as a participating party and for approval of a facility for financing under this Chapter. Applications shall set forth such information as the city may require in order to enable the city to evaluate the applicant, the facility and its proposed costs.

D.

The city is authorized to charge participating parties application, commitment, financing and other fees, in order to recover all administrative and other costs and expenses incurred in the exercise of the powers and duties conferred by this Chapter. The Council shall direct the City Clerk to transmit a letter agreement or contract to a participating party which will obligate such party to pay such fees and expenses as the Council may charge or incur hereunder.

E.

The city is authorized to obtain, or aid in obtaining, from any department or agency of the United States or of the state of California or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or principal, or both, rents, fees or other charges, or any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into as authorized by this Chapter; and is authorized to accept payment in such manner and form as provided therein in the event of default by a participating party, and to assign any such insurance or guarantee as security for bonds.

F.

The city is authorized to fix rents, payments, fees, charges and interest rates for a financing authorized by this Chapter and to agree to revise from time to time such rents, payments, fees, charges and interest rates to reflect changes in interest rates on bonds, losses due to defaults or changes in other expenses related to this Chapter, including city administrative expenses.

G.

The city is authorized to hold deeds of trust or mortgages or security interests in personal property as security for loans and other obligations authorized by this Chapter and to pledge or assign the same as security for repayment of bonds. Such deeds of trust, mortgages or security interests, or any other interest of the city in any facility, may be assigned to, and held on behalf of the city by, any bank or trust company appointed to act as trustee by the city in any resolution or indenture providing for issuance of the bonds.

H.

The city is authorized to contract for such engineering, architectural, financial, accounting, legal or other services as may be necessary in the judgment of the city for the purposes of this Chapter.

I.

The city requires that contractors and subcontractors engaged in the construction of facilities financed under this part shall provide equal opportunity for employment, without discrimination as to race, marital status, sex, color; religion, national origin or ancestry. The city also requires that participating parties engaged in the acquisition, construction, installation, reconstruction, rehabilitation or improvement of facilities financed under this part shall submit and receive approval from the city of an affirmative action program prior to the issuance of bonds for such facility.

J.

Except as specifically provided in this Chapter, the acquisition, construction, installation, reconstruction, rehabilitation or improvement of a facility financed under this Chapter shall not be subject to any requirements relating to buildings, works or improvements owned or operated by the city, and any requirement of public competitive bidding or other procedural restriction imposed on the award of contracts for acquisition or construction of a city building, work or improvement or to the lease, sublease, sale or other disposition of city property shall not be applicable to any action taken under this Chapter.

K.

In addition to all other powers specifically granted by this Chapter, the city is authorized to contract for and do all things necessary or convenient to carry out the purposes of this Chapter, provided, however, that the city shall not have the power to operate a facility financed under this Chapter as a business, except temporarily in the case of a default by a participating party.

(Ord. 11950 3 (part), 1996: prior code 14-2.01—14-2.11)