Title
Proposing an amendment to Section 8-200(3) of the Philadelphia Home Rule Charter, relating to approval of contracts imposing debt payment obligations on the City in connection with the construction, rehabilitation or siting of any structure, and providing for the submission of the amendment to the electors of Philadelphia.
Body
WHEREAS, Under Section 6 of the First Class City Home Rule Act (53 P.S. §13106), an amendment to the Philadelphia Home Rule Charter may be proposed by a resolution of the Council of the City of Philadelphia adopted with the concurrence of two-thirds of its elected members; now therefore
RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA, That the following amendment to the Philadelphia Home Rule Charter is hereby proposed and shall be submitted to the electors of the City on an election date designated by ordinance:
ARTICLE VII
PROVISIONS OF GENERAL APPLICATION
CHAPTER 2
CONTRACTS, PROCUREMENT, PROPERTY AND RECORDS
* * *
(3) Contracts may be made for the leasing of real estate and for personal property to be supplied or services to be rendered over a period of more than one year only when permitted by ordinance. Otherwise no contract shall be binding upon the City unless there is an appropriation available for its payment. Except for contracts entered into between the City and any authority, whenever [When] the term of a contract exceeds four years, there shall be inserted a clause reserving to the City the right to terminate it at the option of the City at any time after the expiration of four years without liability to the other party for damages or loss of profits which would have been realized had the contract not been terminated. [The limitations of this paragraph shall not apply to any contract entered into between the City and any authority.]
(4) No lease, contract or agreement of any kind with an authority requiring the City to make principal or interest payments, or guarantee such payments, to meet the obligations of any party on debt incurred to finance the construction, maintenance or rehabilitation of any structure, or the acquisition or preparation of the site therefor, shall be valid unless, by ordinance, it is approved by the Council and placed on the ballot for approval by the voters of Philadelphia. The preceding sentence shall apply whether the City's payment obligation flows directly to bondholders or other lenders, or flows to them indirectly through leasing and subleasing mechanisms with an authority or any other entity, or through any other procedure.
(5) The referendum question required by subsection (4) shall be framed by ordinance, and shall, in the written opinion of the City Controller, fairly and clearly set forth in no more than 150 words:
(a) the true financial cost to the City, both over the life of the obligation, and on an annual basis, without deduction for benefits that are not contractually guaranteed;
(b) the intended use of the structure to be financed;
(c) the financial contribution, if any, of other entities, both private and public, to the funding of the project.
(6) If approved by the voters, the lease, contract or agreement may be executed by the City, and shall be binding upon the City during its entire term; provided, however, that said lease, contract or agreement may not be modified or amended in any way that increases the financial obligations of the City without approval by ordinance, unless, in the written opinion of the Controller and the President of City Council, such amendment will impose no significant increase on the financial obligations of the City during the remaining term of said lease, contract or agreement.
* * *
____________________________
Explanation:
[Brackets] indicates matter deleted.
Italics indicate new matter added.
End