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SB-293 Infrastructure financing districts: Oakland Waterfront Revitalization and Environmental Justice Infrastructure Financing District.(2019-2020)

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Date Published: 04/29/2019 02:00 PM
SB293:v97#DOCUMENT

Amended  IN  Senate  April 29, 2019
Amended  IN  Senate  March 27, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 293


Introduced by Senator Skinner

February 14, 2019


An act to add Section 53395.82 to the Government Code, relating to infrastructure financing districts.


LEGISLATIVE COUNSEL'S DIGEST


SB 293, as amended, Skinner. Infrastructure financing districts: Oakland Waterfront Revitalization and Environmental Justice Infrastructure Financing District.
Existing law authorizes a legislative body of a city or county to designate one or more infrastructure financing districts, adopt an infrastructure financing plan, and issue bonds, for which only the district is liable, to finance specified public capital facilities of communitywide significance. Existing law specifies procedures for the preparation and adoption of an infrastructure financing plan and the issuance of bonds by a district, including requiring that the issuance of bonds be approved by 2/3 of the voters residing within the boundaries of the district voting on the proposition. Existing law authorizes the inclusion of a provision for the division of taxes in an infrastructure financing plan. Existing law establishes certain alternative procedures for the formation and financing activities of a waterfront district, as defined, in the City and County of San Francisco.
This bill would establish alternative procedures for the formation of an Oakland Waterfront Revitalization and Environmental Justice Infrastructure Financing District under these provisions. The bill would require the City Council of the City of Oakland to initiate proceedings for the formation of the district by adoption of a resolution of intention to establish the district that, among other things, provides for a district board, composed of specified members, to serve as the district’s governing body and directs the preparation of an infrastructure financing plan. The bill would require the infrastructure financing plan to include a provision for the division of taxes, but would prohibit the division of taxes with respect to nonconsenting affected taxing agencies and specified local educational agencies. The bill would require the city council district board to hold a 3 noticed public hearing hearings on the infrastructure financing plan and authorize it to establish the district by adopting an ordinance. to conduct a protest proceeding, as provided. The bill would authorize the establishment of the district if fewer than 25% of the combined number of landowners and residents in the area file a protest to the infrastructure financing plan, or if between 25% and 50% of those landowners file such a protest and the infrastructure financing plan is submitted to the voters and approved. The bill would require the district board to provide an annual report to each landowner, resident, and affected taxing entity that participates in the plan, as provided. The bill would also authorize the city council district board to approve and issue bonds for the district by adopting a resolution that contains specified information.
This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Oakland.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: NO   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 The Legislature finds and declares the following:
(a) The City of Oakland (hereafter referred to as the city) desires to retain the Oakland Athletics professional baseball franchise in the city while maximizing the economic benefit of the sports team and its facilities to the city.
(b) The city has identified a viable site for the development of a state of the art sports facility for the Oakland Athletics: Howard Terminal, which is controlled by the Port of Oakland (hereafter referred to as the port).
(c) Howard Terminal was previously used as a shipping container terminal. However, the port’s prior container shipping tenant terminal operator vacated the site in 2014 and the facilities are property is currently used for ancillary services, including truck parking and chassis storage. A public report prepared by the port’s economic consultant concluded that Howard Terminal is likely to be obsolete as a container terminal due to its relatively small size, limited expansion potential, and limited berth length and water depth.
(d) Howard Terminal is located adjacent to West Oakland, a neighborhood bounded by freeways and located in close proximity to the eighth largest container port in the United States. Due to these adjacencies, West Oakland has been highly impacted by poor air quality and quality, elevated asthma rates. West Oakland has also suffered from a lack of recreational and commercial resources rates, and higher than average unemployment. Its waterfront-adjacent location also makes it West Oakland particularly susceptible to flooding due to climate change and sea level rise.
(e) Given the limited potential for future maritime terminal use at Howard Terminal, redevelopment Redevelopment of the Howard Terminal property as a site for the Oakland Athletics’ privately financed ballpark, together with complementary commercial and residential uses, new public access to world-class waterfront parks and open spaces, remediation of existing soil and groundwater contaminants, and implementation of a community benefits package that provides jobs and economic development opportunities to the surrounding residents and neighborhoods, including West Oakland, would provide significant public benefits for the city, adjacent communities, and the region. Further, the incremental tax revenues generated by the proposed redevelopment of Howard Terminal will provide an additional source of funds for much needed infrastructure investment in the community, which would not be available but for the implementation of the proposed project.
(f) The city wishes to establish an infrastructure financing district to finance certain public facilities required for the successful redevelopment of the Howard Terminal waterfront and the revitalization of its West Oakland environs. It is therefore the intent of the Legislature to provide the city with additional latitude, within the framework of the laws governing infrastructure financing districts, to create and operate an infrastructure financing district in a manner that optimizes its financing options to facilitate the construction of much needed public facilities meeting the stated goals of statewide significance. In order to adapt the provisions of Chapter 2.8 (commencing with Section 53395) of Part 1 of Division 2 of Title 5 of the Government Code, relating to infrastructure financing districts, to these unique circumstances, a special act is necessary.

SEC. 2.

 Section 53395.82 is added to the Government Code, to read:

53395.82.
 (a) This section applies only to the City of Oakland and the proposed Oakland Waterfront Revitalization and Environmental Justice Infrastructure Financing District described in this section.
(b) In addition to the findings and declarations in Section 53395, the Legislature further finds and declares that consolidating in a single agency the ability to capture property tax increment revenues to finance qualified public facilities in the City of Oakland will further the enjoyment of the waterfront by the people of this state.
(c) For purposes of this section:
(1) “Affected taxing entity” means any governmental taxing agency, except Oakland and its local educational agencies, that levied or had levied on its behalf a property tax on all or a portion of the land located in the proposed district in the fiscal year prior to the designation of the district, all or a portion of which the district proposes to collect in the future under its infrastructure financing plan.
(2) “Base year” means the fiscal year in which the assessed value of taxable property in the district was last equalized prior to the effective date of the ordinance adopted to create the district, or a subsequent fiscal year specified in the infrastructure financing plan for the district.
(3) “City council” means the City Council of the City of Oakland, which shall be the legislative body for any district formed under this section. Oakland.
(4) “County auditor-controller” means the auditor-controller for the County of Alameda.
(5) “Debt” means loans, advances, or other forms of indebtedness and financial obligations, including, but not limited to, commercial paper, variable rate demand notes, all moneys payable in relation to the debt, and all debt service coverage requirements in any debt instrument, in addition to the obligations specified in the definition of “debt” in Section 53395.1.
(6) “District” or “Oakland revitalization district” means the Oakland Waterfront Revitalization and Environmental Justice Infrastructure Financing District created pursuant to this section, including any project area within the district.
(7) “District board” means the governing body for the district created pursuant to this section.

(7)

(8) “Local educational agencies” means, collectively, the Oakland Unified School District, the Peralta Community College District, and the Alameda County Office of Education.

(8)

(9) “Oakland” means the City of Oakland.

(9)

(10) “Project” means the construction at Howard Terminal of a privately financed ballpark that will be home to the Oakland Athletics baseball franchise, together with complementary commercial, residential, and public open-space development and amenities, new public access to the waterfront, and onsite and offsite infrastructure improvements.

(10)

(11) “Project area” means a defined area designated for development within a waterfront district formed under this chapter in accordance with subdivision (e).

(11)

(12) “Public facilities” means facilities authorized to be financed in whole or in part by a district formed under this chapter in accordance with subdivision (e). Public facilities may be publicly owned or privately owned if they are available to or serve the general public, but shall not include the stadium for the Oakland Athletics baseball franchise.
(d) (1) The Oakland revitalization district may finance the purchase, construction, expansion, improvement, seismic retrofit, or rehabilitation of any real or other tangible property with an estimated useful life of 15 years or longer, as described in Sections 53395.5 and 53396.5. this chapter. The facilities need not be physically located within the boundaries of the district. Subdivision (b) of Section 53395.3 shall not apply to the district, but the district shall only finance public facilities of communitywide significance.
(2) The district shall not finance routine maintenance, repair work, or the costs of ongoing operation or providing services of any kind.
(e) Notwithstanding Sections 53395.10 to 53395.25, inclusive, the city council district board may adopt or amend one or more infrastructure financing plans for the Oakland revitalization district according to the procedures in this section. The district may be divided into project areas, each of which may be subject to distinct limitations established under this section. The city council district board may, at any time, add territory to the district or amend the infrastructure financing plan for the district in accordance with the same procedures for the formation of the district and adoption of the infrastructure financing plan pursuant to this section.
(1) The city council shall initiate proceedings for the establishment of a district by adopting a resolution of intention to establish the proposed district that does all of the following:
(A) States an infrastructure financing district is proposed to be established and describes the boundaries of the proposed district. The boundaries may be described by reference to a map on file in the office of the clerk of the city council.
(B) States the type of public facilities proposed to be financed by the district.
(C) States that incremental property tax revenue from Oakland and some or all affected taxing entities within the district, but none of the local educational agencies, may be used to finance these public facilities.
(D) Provides for a district board consisting of each member of the city council. Upon approval of the infrastructure financing plan by an affected entity agency pursuant to paragraph (5), the district board shall include a representative of that affected taxing entity.

(D)

(E) Directs the preparation of district board to prepare a proposed infrastructure financing plan.
(2) The city council shall direct the city clerk to mail a copy of the resolution of intention to any affected taxing entities.
(3) The proposed infrastructure financing plan shall be consistent with the general plan of Oakland, as amended from time to time, and shall include all of the following:
(A) A map and legal description of the proposed district, which may include all or a portion of the district designated by the board in its resolution of intention.
(B) A description of the public facilities required to serve the development proposed in the district, including those to be provided by the private sector, those to be provided by governmental entities without assistance under this chapter, those public facilities to be financed with assistance from the proposed district, and those to be provided jointly. The description shall include the proposed location, timing, and projected costs of the public facilities. The description may consist of a reference to the capital plan for the territory in the district that is approved by the city council, district board, as amended from time to time.
(C) A financing section that shall contain all of the following:
(i) A provision that specifies the maximum portion of the incremental tax revenue of Oakland and of any affected taxing entity proposed to be committed to the district, and affirms that the plan will not allocate any portion of the incremental tax revenue of the local educational agencies to the district.
(ii) Limitations on the use of levied taxes allocated to and collected by the district that provide that incremental tax revenues allocated to a district must be used within the district for purposes authorized under this section.
(iii) A projection of the amount of incremental tax revenues expected to be received by the district, assuming a district receives incremental tax revenues for a period no later than 45 years after Oakland projects that the district will have received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter. In the event that the city council district board divides the district into multiple project areas, the projection of the amount of incremental tax revenues expected to be received by the district shall be calculated separately for each project area.
(iv) Projected sources of financing for the public facilities to be assisted by the district, including debt to be repaid with incremental tax revenues, projected revenues from future leases, sales, or other transfers of any interest in land within the district, and any other legally available sources of funds. The projection of sources of financing may refer to the capital plan for the territory in the district that is approved by the city council, district board, as amended.
(v) A limitation on the aggregate number of dollars of levied taxes that may be divided and allocated to the district. Taxes shall not be divided or be allocated to the district beyond this limitation, except by amendment of the infrastructure financing plan pursuant to the procedures in this subdivision. If the city council district board divides the district into multiple project areas, the project areas may share this limit and the limit may be divided among the project areas or a separate limit may be established for a project area.
(vi) A date on which the infrastructure financing plan will cease to be in effect and all tax allocations to the district will end and a date on which the district’s authority to repay indebtedness with incremental tax revenues received under this chapter will end, not to exceed 45 years from the date the district has actually received one hundred thousand dollars ($100,000) in incremental tax revenues under this chapter. After the time limits established under this subparagraph, a district shall not receive incremental tax revenues under this chapter. If the city council district board divides the district into multiple project areas, the city council district board may establish a separate time limit applicable to each project area that is shorter than the time limit on the infrastructure financing plan pursuant to this clause.
(vii) An analysis of the costs to Oakland for providing facilities and services to the district while the district is being developed and after the district is developed, and of the taxes, fees, charges, and other revenues expected to be received by Oakland as a result of expected development in the district.
(viii) An analysis of the projected fiscal impact of the district and the associated development upon any affected taxing entity. If no affected taxing entities exist within the district because the plan does not provide for collection by the district of any portion of property tax revenues allocated to any taxing entity other than Oakland, the district has no obligation to any other taxing entity under this subdivision.
(ix) A statement that the district will maintain accounting procedures in accordance, and otherwise comply, with Section 6306 of the Public Resources Code for the term of the plan.
(D) A provision that meets the requirements of Section 53396 providing for the division of taxes, if any, levied upon taxable property within the district and the allocation of a portion of the incremental tax revenue of Oakland and other designated affected taxing entities to the district.
(4) The proposed infrastructure financing plan shall be mailed to each affected taxing entity for review, together with, to the extent available, any report required by the California Environmental Quality Act (Division 13 (commencing with Section 21000) of the Public Resources Code) that pertains to the proposed public facilities and any proposed development project for which the public facilities are needed, and shall be made available for public inspection. The report also shall be sent to the Oakland Planning Department and the city council.
(5) The city council shall not enact a resolution proposing formation of a district and providing for the division of taxes of any affected taxing entities for use in the district as set forth in the proposed infrastructure financing plan unless the governing body of each affected taxing entity adopts a resolution approving the plan, and that resolution has been filed with the city council at or before the time of the hearing. A resolution approving the plan adopted by the governing body of an affected taxing entity shall be deemed the affected taxing entity’s agreement to participate in the plan for the purposes of this section.
(6) If the governing body of an affected taxing entity has not approved the infrastructure financing plan before the city council considers the plan, the city council may amend the infrastructure financing plan to remove the allocation of the tax revenues of the nonconsenting affected taxing entity.

(7)The city council shall hold a public hearing regarding the infrastructure financing plan that shall be scheduled on a date no earlier than 60 days after the plan has been sent to each affected taxing entity, or in the absence of any affected taxing entities, no earlier than 30 days after the plan has been lodged with the clerk of the city council. The city council shall publish notice of the public hearing not less than once a week for four successive weeks in a newspaper designated by the city council for the publication of official notices in Oakland, or if the city council no longer designates a newspaper for the publication of official notices, a newspaper of general circulation serving primarily Oakland residents. The notice shall state all of the following:

(A)That the district will be established to finance public facilities.

(B)Briefly describe the public facilities and the proposed financial arrangements, including the proposed commitment of incremental tax revenue.

(C)Describe the boundaries of the proposed district.

(D)The day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the previous proceedings, may appear before the board and object to the adoption of the proposed infrastructure financing plan by the board.

(8)At the hour set in the required notices, the city council shall proceed to hear and pass upon all written and oral objections. The hearing may be continued from time to time. The city council shall consider any recommendations of affected taxing entities, and all evidence and testimony for and against the adoption of the infrastructure financing plan.

(9)No election will be required to form the district, and at the conclusion of the hearing, the city council may adopt an ordinance adopting the infrastructure financing plan, as drafted or as modified by the city council, or it may abandon the proceedings.

(10)Any public or private owner of land that is not within the district may petition the city council for inclusion of the land in the district, and the city council may grant that petition without an election.

(7) (A) The district board shall consider adoption of the infrastructure financing plan at three public hearings that shall take place at least 30 days apart. Notice of each public hearing shall be given in accordance with paragraph (15).
(B) At the first public hearing, the district board shall hear all written and oral comments, but take no action.
(C) At the second public hearing, the district board shall consider any additional written and oral comments and take action to modify or reject the infrastructure financing plan. If the infrastructure financing plan is not rejected at the second public hearing, then the district board shall conduct a protest proceeding at the third public hearing to consider whether the landowners and residents within the infrastructure financing plan area wish to present oral or written protests against the adoption of the infrastructure financing plan.
(8) The draft infrastructure financing plan shall be made available to the public and to each landowner within the area at a meeting held at least 30 days prior to the notice given for the first public hearing. The purposes of the meeting shall be to allow the staff of the district board to present the draft infrastructure financing plan, answer questions about the infrastructure financing plan, and consider comments about the infrastructure financing plan.
(9) (A) Notice of the meeting required by paragraph (8) and the public hearings required by paragraph (7) shall be given in accordance with paragraph (15). The notice shall do the following, as applicable:
(i) Describe specifically the boundaries of the proposed area.
(ii) Describe the purpose of the infrastructure financing plan.
(iii) State the day, hour, and place when and where any and all persons having any comments on the proposed infrastructure financing plan may appear to provide written or oral comments to the infrastructure financing district.
(iv) Notice of the second public hearing shall include a summary of the changes made to the infrastructure financing plan as a result of the oral and written testimony received at or before the public hearing and shall identify a location accessible to the public where the infrastructure financing plan proposed to be presented at the second public hearing can be reviewed.
(v) Notice of the third public hearing to consider any written or oral protests shall contain a copy of the infrastructure financing plan, and shall inform each landowner and resident of their right to submit an oral or written protest before the close of the public hearing. The protest may state that the landowner or resident objects to the district board taking action to implement the infrastructure financing plan.
(B) At the third public hearing, the district board shall consider all written and oral protests received prior to the close of the public hearing along with the recommendations, if any, of affected taxing entities, and shall terminate the proceedings or adopt the infrastructure financing plan subject to confirmation by the voters at an election called for that purpose. The district board shall terminate the proceedings if there is a majority protest. A majority protest exists if protests have been filed representing over 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age. An election shall be called if between 25 percent and 50 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest.
(10) An election required pursuant to subparagraph (B) of paragraph (9) shall be held within 90 days of the public hearing and may be held by mail-in ballot. The district board shall adopt, at a duly noticed public hearing, procedures for this election.
(11) If a majority of the landowners and residents vote against the infrastructure financing plan, then the district board shall not take any further action to implement the proposed infrastructure financing plan. The district board shall not propose a new or revised infrastructure financing plan to the affected landowners and residents for at least one year following the date of an election in which the infrastructure financing plan was rejected.
(12) At the hour set in the notices required by paragraph (7), the district board shall consider all written and oral comments.
(13) If less than 25 percent of the combined number of landowners and residents in the area who are at least 18 years of age file a protest, the district board may adopt the infrastructure financing plan at the conclusion of the third public hearing by ordinance. The ordinance adopting the infrastructure financing plan shall be subject to referendum as prescribed by law.
(14) The district board shall consider and adopt an amendment or amendments to an infrastructure financing plan in accordance with the provisions of this section.
(15) The district board shall post notice of each meeting or public hearing required by this section in an easily identifiable and accessible location on the district’s internet website and shall mail a written notice of the meeting or public hearing to each resident and each taxing entity at least 10 days prior to the meeting or public hearing.
(A) Notice of the first public hearing shall also be published not less than once a week for four successive weeks prior to the first public hearing in a newspaper of general circulation published in the County of Alameda. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, including the proposed commitment of incremental tax revenue, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the district board and object to the adoption of the proposed plan by the district board.
(B) Notice of the second public hearing shall also be published not less than 10 days prior to the second public hearing in a newspaper of general circulation in the County of Alameda. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the district board and object to the adoption of the proposed plan by the district board.
(C) Notice of the third public hearing shall also be published not less than 10 days prior to the third public hearing in a newspaper of general circulation in the County of Alameda. The notice shall state that the district will be used to finance public facilities or development, briefly describe the public facilities or development, briefly describe the proposed financial arrangements, describe the boundaries of the proposed district, and state the day, hour, and place when and where any persons having any objections to the proposed infrastructure financing plan, or the regularity of any of the prior proceedings, may appear before the district board and object to the adoption of the proposed plan by the district board.
(16) (A) The district board shall review the infrastructure financing plan at least annually and make any amendments that are necessary and appropriate and shall require the preparation of an annual independent financial audit paid for from revenues of the infrastructure financing district.
(B) The district board shall adopt an annual report on or before June 30 of each year after holding a public hearing. Written copies of the draft report shall be made available to the public 30 days prior to the public hearing. The district board shall cause the draft report to be posted in an easily identifiable and accessible location on the district’s internet website and shall mail a written notice of the availability of the draft report on the internet website to each landowner and each resident within the area covered by the infrastructure financing plan and to each affected taxing entity that has adopted a resolution pursuant to paragraph (5). The notice shall be mailed by first-class mail, but may be addressed to “occupant.”
(C) The annual report shall contain all of the following:
(i) A description of the projects undertaken in the fiscal year, including any rehabilitation of structures, and a comparison of the progress expected to be made on those projects compared to the actual progress.
(ii) A chart comparing the actual revenues and expenses, including administrative costs, of the district board to the budgeted revenues and expenses.
(iii) The amount of tax increment revenues received.
(iv) An assessment of the status regarding completion of the district’s projects.
(D) The amount of revenues expended to assist private businesses.
(E) If the district board fails to provide the annual report required by subparagraph (B), the district board shall not spend any funds received pursuant to a resolution adopted pursuant to this section until the district board has provided the report.

(11)

(17) The ordinance creating a district and adopting or amending an infrastructure financing plan shall establish the base year for the district. The city council district board may amend an infrastructure financing plan by ordinance for any purpose, including, but not limited to, the following:
(A) Dividing an established district into one or more project areas.
(B) Reducing the district area.
(C) Expanding the district to include the petitioning landowner’s land in the district in accordance with the city council’s established procedures. area.

(12)

(18) Oakland may enter into an agreement for the construction of discrete portions or phases of public facilities within the district. The agreement may include any provisions that Oakland determines are necessary or convenient, but shall do all of the following:
(A) Identify the specific public facilities or discrete portions or phases of public facilities to be constructed and purchased. Oakland may agree to purchase discrete portions or phases of public facilities if the portions or phases are capable of serviceable use as determined by Oakland.
(B) Identify procedures to ensure that the public facilities are constructed pursuant to plans, standards, specifications, and other requirements as determined by Oakland.
(C) Specify a price or a method to determine a price for each public facility or discrete portion or phase of a public facility.
(D) Specify procedures for final inspection and approval of public facilities or discrete portions or phases of public facilities, for approval of payment and for acceptance and conveyance.
(f) Notwithstanding Sections 53397.1 to 53397.11, inclusive, the city council district board may approve and issue bonds for the Oakland revitalization district according to the procedures in this section.
(1) The city council district board may, by resolution adopted at the time of the formation of the district, authorize the issuance of bonds in one or more series by determining the aggregate principal amount of bonds that may be issued in the district. The city council district board may undertake the proceedings and actions described in this subdivision with respect to the district as a whole, or separately with respect to one or more project areas. If the city council district board undertakes the proceedings for the district as a whole, it may thereafter, by resolution, allocate the principal amount of the authorized bond issuance to one or more project areas within the district. The city council district board may increase the principal amount of bonds that may be issued for the district or a project area within the district by undertaking the proceedings in this subdivision with respect to that increased amount. The bonds may be sold at a negotiated sale subject to the notice requirements of paragraph (5).
(2) At any time after formation of the district, the legislative body may, by a majority vote of its members, issue tax-exempt or taxable bonds in one or more series. Bonds shall be issued following adoption of a resolution containing all of the following information:
(A) A description of the facilities to be financed with the proceeds of the proposed bond issue.
(B) The estimated cost of the facilities, the estimated cost of preparing and issuing the bonds, and the principal amount of the proposed bond issuance.
(C) The maximum interest rate and discount on the proposed bond issuance.
(D) A determination of the amount of tax revenue available or estimated to be available, for the payment of the principal of, and interest on, the bonds.
(E) A finding that the amount necessary to pay the principal of, and interest on, the proposed bond issuance will be less than, or equal to, the amount determined pursuant to subparagraph (D).
(F) The issuance of the bonds in one or more series.
(G) The date the bonds will bear.
(H) The date of maturity of the bonds.
(I) The denomination of the bonds.
(J) The form of the bonds.
(K) The manner of execution of the bonds.
(L) The medium of payment in which the bonds are payable.
(M) The place or manner of payment and any requirements for registration of the bonds.
(N) The terms of call or redemption, with or without premium.
(3) The city council district board may, by majority vote, vote of the members of the district board, provide for refunding of bonds issued pursuant to this subdivision. However, refunding bonds shall not be issued if the total net interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds exceeds the total net interest cost to maturity on the bonds to be refunded. The city council district board shall not extend the time to maturity of the bonds being refunded.
(4) The city council district board or any person executing the bonds shall not be personally liable on the bonds by reason of their issuance. The bonds and other obligations of a district issued pursuant to this chapter are not a debt of the city or of any of its political subdivisions, other than the district, and none of those entities, other than the district, shall be liable on the bonds and the bonds or obligations shall be payable exclusively from funds or properties of the district. The bonds shall contain a statement to this effect on their face. The bonds do not constitute an indebtedness within the meaning of any constitutional or statutory debt limitation.
(5) Bonds may be sold at a negotiated sale. At least five days before the sale, the city council district board shall publish notice of the sale, pursuant to Section 6061, in a newspaper of general circulation and in a financial newspaper published in the City of Oakland and in the City of Los Angeles. The bonds may be sold at not less than par to the federal government at private sale without any public advertisement.
(6) If any member of the city council district board whose signature appears on bonds ceases to be a member of the city council district board before delivery of the bonds, that member’s signature is as effective with respect to those bonds as if the member had remained in office at the time of delivery of those bonds.
(7) Bonds issued pursuant to this subdivision are fully negotiable.

SEC. 3.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances, described in Section 1 of this act, in the City of Oakland.