SECTIONS 102500-102513 - California Statutes

PUBLIC UTILITIES CODE

SECTION 102500-102513

102500. The district may exercise its powers under this article
only with respect to territory in cities and counties in which the
voters have authorized the district to operate and levy a tax; the
term "district" as used in this article, shall be limited to such
territory for purposes of the election and the incurring of
indebtedness, and for purposes of Section 102336.

102501. Whenever the board deems it necessary for the district to
incur a bonded indebtedness for the acquisition, construction, or
repair of any or all improvements, works, property or facilities,
authorized by this part or necessary or convenient for the carrying
out of the powers of the district, or for any other purpose
authorized by this part, it shall, by ordinance, adopted by a
two-thirds vote of the board, so declare and call an election to be
held in the district for the purpose of submitting to the qualified
voters thereof the proposition of incurring indebtedness by the
issuance of bonds of the district; provided the total amount of bonds
issued and outstanding pursuant to this article shall not exceed 15
percent of the assessed value of the taxable property of the district
as shown by the last equalized assessment rolls of the counties of
Sacramento, Placer, and Yolo. The ordinance shall state:
(a) The purposes for which the proposed debt is to be incurred,
which may include all costs and estimated costs incidental to or
connected with the accomplishment of those purposes, including,
without limitation, engineering, inspection, legal, fiscal agents,
financial consultant and other fees, bond and other reserve funds,
working capital, bond interest estimated to accrue during the
construction period and for a period not to exceed three years
thereafter, and expenses of all proceedings for the authorization,
issuance, and sale of the bonds.
(b) The estimated cost of accomplishing those purposes.
(c) The amount of the principal of the indebtedness.
(d) The maximum term the bonds proposed to be issued shall run
before maturity, which shall not exceed 50 years from the date
thereof or the date of each series thereof.
(e) The maximum rate of interest to be paid, which shall not
exceed 7 percent per annum.
(f) The proposition to be submitted to the voters, which may
include one or more purposes.
(g) The date of the election.
(h) The manner of holding the election and the procedure for
voting for or against the measure.
(i) The ordinance may also contain any other matters authorized by
this part or any other law.

102502. Notice of the holding of such election shall be given by
publishing, pursuant to Section 6066 of the Government Code, the
ordinance calling the election in at least one newspaper published in
such district. No other notice of such election need be given.
Except as otherwise provided in the ordinance, the election shall be
conducted as other district elections.

102503. If any proposition is defeated by the electors, the board
shall not call another election on a substantially similar
proposition to be held within six months after the prior election. If
a petition requesting submission of such a proposition, signed by 15
percent of the district electors, as shown by the votes cast for all
candidates for governor within the district at the last
gubernatorial election, is filed with the board, it may call an
election before the expiration of six months.

102504. If a majority of the electors voting on the proposition
vote for it, then the board may, by resolution, at such time or times
as it deems proper, issue bonds of the district for the whole or any
part of the amount of the indebtedness so authorized and may from
time to time, by resolution, provide for the issuance of such amounts
as the necessity thereof may appear, until the full amount of such
bonds authorized shall have been issued. The full amount of bonds may
be divided into two or more series and different dates and different
dates of payment fixed for the bonds of each series. A bond need not
mature on an anniversary of its date. The maximum term the bonds of
any series shall run before maturity shall not exceed 50 years from
the date of each series respectively. In such resolution or
resolutions, the board shall prescribe the form of the bonds
(including, without limitation, registered bonds and coupon bonds)
and the form of any coupons to be attached thereto, the registration,
conversion and exchange privileges, if any, pertaining thereto, and
fix the time when the whole or any part of the principal shall become
due and payable.

102505. The bonds shall bear interest at a rate or rates not
exceeding 8 percent per annum, payable semiannually, except that the
first interest payable on the bonds or any series thereof may be for
any period not exceeding one year as determined by the board. In the
resolution or resolutions providing for the issuance of such bonds,
the board may also provide for call and redemption of such bonds
prior to maturity at such times and prices and upon such other terms
as it may specify, provided that no bond shall be subject to call or
redemption prior to maturity unless it contains a recital to that
effect or unless a statement to that effect is printed thereon. The
denomination or denominations of the bonds shall be stated in the
resolution providing for their issuance, but shall not be less than
one thousand dollars ($1,000). The principal of and interest on such
bonds shall be payable in lawful money of the United States at the
office of the treasurer of the district or at such other place or
places at the option of the holders of the bonds. The bonds, or such
series thereof, shall be dated and numbered consecutively and shall
be signed by the chairman of the board and the treasurer,
countersigned by the secretary and the official seal of the district
attached. The interest coupons of such bonds shall be signed by the
treasurer. All such signatures, countersignatures and seal may be
printed, lithographed or mechanically reproduced, except that one of
such signatures or countersignatures on the bonds shall be manually
affixed. If any officer whose signature or countersignature appears
on bonds or coupons ceases to be such officer before the delivery of
the bonds, his signature is as effective as if he had remained in
office.

102506. The bonds may be sold as the board determines by
resolution, but for not less than par. Before selling the bonds, or
any part thereof, the board shall give notice inviting sealed bids in
such manner as it may prescribe. If satisfactory bids are received,
the bonds offered for sale shall be awarded to the highest
responsible bidder. If no bids are received, or if the board
determines that the bids received are not satisfactory as to price or
responsibility of the bidders, the board may reject all bids
received, if any, and either readvertise or sell the bonds at private
sale.

102507. Delivery of any bonds may be made at any place either
inside or outside the state, and the purchase price may be received
in cash or bank credits.

102508. All accrued interest and premiums received on the sale of
bonds shall be placed in the fund to be used for the payment of
principal of and interest on the bonds and the remainder of the
proceeds of the bonds shall be placed in the treasury to the credit
of the proper improvement fund and applied exclusively to the
purposes for which the debt was incurred (which purposes shall be in
conformity with an approved general transit plan or element thereof
then in effect); provided, however, that when such purposes have been
accomplished, any moneys remaining in such improvement fund (a)
shall be transferred to the fund to be used for the payment of
principal of and interest on the bonds, or (b) shall be placed in a
fund to be used for the purchase of outstanding bonds of the district
from time to time in the open market at such prices and in such
manner, either at public or private sale or otherwise, as the board
may determine. Bonds so purchased shall be canceled immediately.

102509. After the expiration of three years after a bond election,
the board may determine, by ordinance adopted by a two-thirds vote of
the board, that any or all of the bonds authorized at the election
remaining unsold shall not be issued or sold. When the ordinance
takes effect, the authorization to issue those bonds shall become
void.

102510. Whenever the board deems that the expenditure of money for
the purposes for which the bonds were authorized by the voters is
impractical or unwise, it may, by ordinance adopted by a two-thirds
vote of the board, so declare and call an election to be held in the
district for the purpose of submitting to the qualified voters
thereof the proposition of incurring indebtedness by the issuance of
those bonds for some other purposes or, in the case where bonds have
been sold, the proposition to use the proceeds for some other
purposes. The procedure, so far as applicable, shall be the same as
when a bond proposition is originally submitted.

102511. The board may provide for the issuance, sale, or exchange
of refunding bonds to redeem or retire any bonds issued by the
district upon the terms, at the times and in the manner which it
determines. Refunding bonds may be issued in a principal amount
sufficient to pay all, or any part, of the principal of such
outstanding bonds, the interest thereon and the premiums, if any, due
upon call and redemption thereof prior to maturity, and all expenses
of such refunding. The provisions of this article for issuance and
sale of bonds apply to the issuance and sale of such refunding bonds;
except that (a) no election need be called or held for the purpose
of authorizing the issuance of refunding bonds, and (b) when
refunding bonds are to be exchanged for outstanding bonds the method
of exchange shall be as determined by the board.

102512. The provisions of Article 4 (commencing with Section
53500), Chapter 3, Part 1, Division 2, Title 5 of the Government Code
are applicable to the district.

102513. Any bonds which shall be issued under the provisions of
this article shall be legal investment for all trust funds; for the
funds of insurance companies, banks--both commercial and savings--and
trust companies; and for state school funds; and whenever any money
or funds may, by any law now or hereafter enacted, be invested in
bonds of cities, cities and counties, counties, school districts, or
other districts within the State of California, such money or funds
may be invested in the bonds issued under this part, and whenever
bonds of cities, cities and counties, counties, school districts, or
other districts within this state may, by any law now or hereafter
enacted, be used as security for the performance of any act or the
deposit of any public moneys, the said bonds issued under this part
may be so used. The provisions of this article shall be in addition
to all other laws relating to legal investments and shall be
controlling as the latest expression of the Legislature with respect
thereto.