§ 43.6

It is hereby declared to be the policy of the City to permit the refunding of outstanding revenue bonds whenever such refunding is expected to result in net debt service savings calculated as provided in this Article. This Article is enacted 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 the Charter.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

This Article shall be known as the San Francisco Refunding Revenue Bond Act.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Whenever the public interest and necessity so require, the legislative body, as hereinafter defined, may, acting under this Article, authorize the issuance of refunding bonds in order to refund outstanding revenue bonds. Refunding bonds issued to refund water revenue bonds issued under Section 9.109 of the Charter shall be issued under Section 9.109 of the Charter, as amended by the procedures herein. Refunding bonds shall be issued by the procedures provided for in the Revenue Bond Law of 1941 (Article 6 of Part 1 of Division 2 of Title 5 of the California Government Code, commencing with Section 54300) as it read, including amendments, on June 5, 1984, except as amended herein and, further, except that the provisions of said Revenue Bond Law of 1941 set forth in Sections 54380 through 54388, inclusive, and Sections 54354.5, 54422, 54424, 54515 and 54522, any references to said Sections, and any provisions of said Revenue Bond Law of 1941 that are inconsistent with or conflict with the Charter shall not apply to the issuance and sale of such refunding bonds. Reference is hereby made to three copies of said Revenue Bond Law of 1941 (as in effect on June 5, 1984), filed for convenience in the office of the Clerk of the Board of Supervisors on July 7, 1987 and all of the provisions of said Revenue Bond Law of 1941 (as in effect on June 5, 1984 except as in this Article otherwise expressly provided) are hereby incorporated in this Article by reference and made a part hereof. The legislative body may authorize the issuance of the refunding bonds by means of an indenture, resolution, ordinance, order, agreement or other instrument in writing and, if the legislative body establishes the minimum savings to be generated by the issuance of such refunding bonds, may delegate to appropriate officials or officers of the City or of the legislative body the authority to determine the final terms, amounts, maturities, interest rates and other provisions of said refunding bonds.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Certain provisions of said Revenue Bond Law of 1941 (as in effect on June 5, 1984), as incorporated herein, are revised, as follows:

(a) Section 54402(b) of said Revenue Bond Law of 1941 (as in effect on June 5, 984) is hereby revised to read as follows:

(b) The interest of the bonds, either fixed or variable, at such rate or rates and payable at the times and in the manner specified.

(b) Section 54403 of said Revenue Bond Law of 1941 (as in effect on June 5, 1984) is revised to read as follows:

Any premium payable on the bonds shall be in the amount or amounts specified by the legislative body.

(c) Section 54418 of said Revenue Bond Law of 1941 (as in effect on June 5, 1984) is revised to read as follows:

The legislative body may sell the bonds at a price above or below par in such manner at public or private sale as it determines by resolution is appropriate.

(d) The following three sections are added to Article 1 of the Act, said sections to read as follows:

§ 54317. Legislative body, definition

"Legislative body" means the commission, board or other governing body that adopted the resolution authorizing the issuance of the bonds to be refunded, and any successor to such commission, board or other governing body.

§ 54318. Resolution, definition

"Resolution"means, unless the context otherwise requires, the instrument providing the terms and conditions for the issuance of the revenue bonds, and may be an indenture, resolution, ordinance, order, agreement or other instrument in writing.

§ 54319. Fiscal agent, definition

"Fiscal agent" means any fiscal agent, trustee, paying agent, depository or other fiduciary provided for in the resolution authorizing the issuance of the refunding bonds.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

Prior to the issuance of refunding bonds by the commission, board or other governing body, there shall be presented to the Board of Supervisors and filed with the Clerk of the Board of Supervisors a report of said commission, board or other governing body setting forth the minimum amount of savings to be generated in terms of scheduled principal and interest payments by the issuance of the refunding bonds.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

(a) Acting under the provisions of the Charter or under any other provision of general State law, the Board of Supervisors may provide for the issuance of refunding bonds for the purpose of refunding any outstanding revenue bonds of the City or its commissions. No voter approval shall be required for any such refunding bonds which provide net debt service savings to the City on a present value basis calculated as provided in such provisions of general State law or by other ordinance of the Board of Supervisors or as hereinafter provided in this Section 43.6.6. Subject to the foregoing limitation, the principal amount of the refunding bonds (in aggregate or with respect to any maturity) may be more than, less than or the same as the principal amount of the bonds to be refunded.

(b) Net debt service savings shall be calculated by comparing the present value of the aggregate debt service on the refunding bonds to that of the refunded bonds as of the dated date of the refunding bonds using an assumed rate of interest equal to the yield on the refunding bonds. To the extent required, the present value of any funds contributed to the refunding by the City shall be deducted from the savings calculation. Notwithstanding any provision of general State law to the contrary, this Section 43.6.6 shall provide an alternative means of calculating debt service savings to any procedure contained in general State law. The City is authorized to rely on any other State law procedure related to calculating debt service savings.

(c) This Section 43.6.6 has been adopted pursuant to Section 9.109 of the Charter.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)

The powers conferred by the provisions of this Article are in addition to and supplemental to the powers conferred by the Charter or any other ordinance or by law.

(Added by Ord. 12-00, File No. 992117, App. 2/11/2000)