HomeMy WebLinkAboutCC Special Meeting 7.24.09Agenda Item No: I (a and b)
Meeting Date: July 24, 2009
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Manager
Prepared by: Ken Nordhoff, City Manager
City Manager Approval:
SUBJECT: Consideration of Submitting a Measure to the Voters at the November 3, 2009 General
Municipal Election for the Issuance of General Obligation Bonds in the Amount of Eighty-eight
Million Dollars ($88,000,000) to Finance the Acquisition, Construction and Completion of San
Rafael Public Safety Facilities.
(a) Adoption of a Resolution Determining that the Public Interest and Necessity
Demand the Acquisition, Construction and Completion of Public Safety Facilities
and their Financing through the Issuance of General Obligation Bonds.
(b) First Reading of an Ordinance of the City Council of the City of San Rafael Calling
a General Municipal Election and Ordering the Submission of a Proposition of
Incurring Bonded Debt for the Purpose of the Acquisition, Construction and
Completion of Public Safety Facilities to the Qualified Voters of the City of San
Rafael at the General Municipal Election to be held on November 3, 2009
(Public Hearing scheduled for Regular City Council Meeting of August 3, 2009)
RECOMMENDATION:
Item (a): Staff recommends that the City Council adopt the Resolution.
Item (b): Staff recommends that the City Council conduct first reading of the ordinance
and pass it to print.
BACKGROUND: Two separate Critical Facilities Committees appointed by the City Council have been
working for several years to develop strategies for informing and educating the community about the
current state of City buildings and to develop an implementation plan for addressing the City's needs with
respect to upgrading those facilities. The Committee appointed in November 2007 was tasked to
"develop strategies for informing and educating the community about the current state of our buildings as
well as (to) develop an implementation plan to advance the priorities set by the former Critical Facilities
Strategy Committee (CFSC)."
This current Critical Facilities Committee has determined the City's facilities are functionally obsolete,
seismically unsafe and do not comply with a wide variety of building codes. The Committee has further
concluded that in order to undertake a capital project of the scope required, voter approved funding must
be obtained. With input from the City's consultants Sidewalk Strategies (Tramutola) and Godbe
Research, including data compiled from a poll of residents in June 2009, the Committee is now
recommending that the City Council place a measure on the November 3, 2009 ballot authorizing the City
FOR CITY CLERK ONLY
File No.:
Council Meeting:
Disposition:
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
to issue general obligation bonds to finance the upgrade, renovation and replacement of the City's public
safety buildings. The actual sizing of the general obligation bonds requested in the proposed ordinance is
$88 million dollars, and is based upon a final review this week of San Rafael assessed valuations for
2009-10, and the associated tax rates, as provide an attachment to the ordinance.
The proposed bond measure would not address improvements to the downtown library or community
centers. Poll results and Committee recommendations conclude the financing for these projects would
come at a later date, after the public safety facilities needs are addressed. The Committee will be making
a final report, and their formal recommendations, at the City Council meeting of August 3, 2009.
ANALYSIS: Staff has consulted with bond counsel William Madison at the firm of Jones Hall for advice
on the requirements for placing a general obligation bond on the ballot for the November 3, 2009 election.
To initiate the proceedings, the City Council must adopt a resolution determining that the public interest
and necessity demand the "acquisition, construction, or completion' of public safety facilities, and stating
the Council's intention to issue general obligation bonds of the City to finance the cost thereof, subject to
completion of the proceedings required by applicable law. Mr. Madison, in consultation with staff and the
City's consultants has prepared the attached Resolution which satisfies the legal requirements for the
resolution of public interest and necessity.
Upon adoption of the Resolution, action by the City Council to submit the bond measure to the voters
must occur by adoption of an appropriate ordinance. In order to meet the County Registrar of Voters'
election schedule for the November 3, 2009 election, the ordinance must be adopted by the City Council
at its regular meeting on August 3'd. 2009. To meet that schedule, first reading of the Ordinance must
occur at this Special Meeting.
In order to properly notice a public hearing on the ordinance, the public hearing has been
scheduled for the Council's August 3 meeting so that the public may be heard on the ordinance
prior to Council action to adopt it. After the hearing is held, the Council will still have the ability to
choose not to adopt the Ordinance, if it decides that it does not wish to proceed with the measure on the
November 3 ballot.
FISCAL IMPACT:
The adoption of this Resolution does not have any fiscal impact to the City. If the City Council ratifies the
related Ordinance at your meeting of August 3, the City would be incurring the incremental cost of placing
a public safety bond measure on the November 3`d election.
OPTIONS:
Item (a): The City Council must adopt a resolution of public interest and necessity such as the
one attached if it wishes to proceed to submit the described public safety facilities bond measure to the
voters. Staff recommends that the Council adopt the attached Resolution and not modify the language
since it has been carefully crafted by the City's bond counsel to comply with legal requirements.
Item (b): Staff recommends that the City Council conduct the first reading of the attached
Ordinance and pass it to print. This will preserve the Council's ability to adopt the Ordinance at the
August 3 regular Council meeting and to thereby meet the County's deadline for placing the bond
measure on the ballot for the November 3, 2009 election. Again Staff recommends that the Council not
modify the language of the Ordinance since it has been carefully crafted by the City's bond counsel to
comply with legal requirements.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Pau: 3
ACTION REQUIRED:
Item (a): Adopt Resolution.
Item (b): Make a motion to conduct first reading of the attached Ordinance by title only, to waive
further readings, and pass the Ordinance to print.
(City Clerk to read title of Ordinance.)
ATTACHMENTS:
Resolution
Ordinance
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL DETERMINING THAT THE PUBLIC INTEREST AND
NECESSITY DEMAND THE ACQUISITION, CONSTRUCTION
AND COMPLETION OF PUBLIC SAFETY FACILITIES, AND
THEIR FINANCING THROUGH THE ISSUANCE OF GENERAL
OBLIGATION BONDS
WHEREAS, the City is authorized to issue general obligation bonds to finance municipal
improvements pursuant to the provisions of Article 1, commencing with Section 43600, of
Chapter 4 of Division 4 of Title 4 of the California Government Code (the "Act"); and
WHEREAS, the City intends to issue general obligation bonds under and pursuant to the
Act to finance the costs of acquiring and constructing public safety facilities to replace and
upgrade existing fire and police stations, and related City facilities, and construct an earthquake -
safe dispatch center (the "Improvements"); and
WHEREAS, in order to initiate proceedings under the Act to provide for the financing of
the Improvements, this Council must make certain findings and determinations;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL,
CALIFORNIA, does hereby resolve, declare, determine and order as follows:
Section 1. The public interest and necessity demand, and it is the intention of this Council
to require the acquisition, construction and completion of the Improvements, and to issue general
obligation bonds of the City to finance the cost thereof, subject to completion of the proceedings
required by the Act.
Section 2. This Council hereby finds and determines that the estimated costs of the
Improvements will require an expenditure by the City greater than the amount allowed for it by
the annual tax levy of the City. The principal amount of general obligation bonds of the City to
be issued for the Improvements will pay for the estimated cost for the Improvements.
Section 3. This resolution is adopted, and general obligation bonds of the City are to be
issued, pursuant to the Act.
I, ESTHER BEIRNE, Clerk of the City of San Rafael, hereby certify that the foregoing
Resolution was duly and regularly introduced and adopted at a special meeting of the City
Council of said City held on Friday, the 24th day of July, 2009 by the following vote, to wit:
AYES:
COUNCILMEMBERS:
NOES:
COUNCILMEMBERS:
ABSENT:
COUNCILMEMBERS:
ESTHER BEIRNE, City Clerk
IM11\:\ \1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN
RAFAEL CALLING A GENERAL MUNICIPAL ELECTION AND
ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING
BONDED DEBT FOR THE PURPOSE OF THE ACQUISITION,
CONSTRUCTION AND COMPLETION OF PUBLIC SAFETY
FACILITIES TO THE QUALIFIED VOTERS OF THE CITY OF SAN
RAFAEL AT THE GENERAL MUNICIPAL ELECTION TO BE HELD
ON NOVEMBER 3, 2009
WHEREAS, on July 24, 2009, this City Council adopted, by a two-thirds vote of all the
members of said Council, a Resolution entitled "A Resolution of the City Council of the City of
San Rafael Determining That the Public Interest and Necessity Demand the Acquisition,
Construction and Completion of Public Safety Facilities, and Their Financing Through the
Issuance of General Obligation Bonds" (the "Resolution"); and
WHEREAS, in order to provide for the issuance by the City of its general obligation
bonds to finance the costs of acquiring and constructing public safety facilities and related public
facilities and grounds to replace, relocate, upgrade, renovate, or expand existing fire and police
stations and construct an earthquake -safe dispatch center, it is necessary for this Council to pass
an ordinance ordering the submission of the proposition of incurring bonded indebtedness for
such purpose to the qualified voters of the City at an election; and
WHEREAS, a General Municipal Election for the City is to be held on Tuesday,
November 3, 2009; and
WHEREAS, the City Council desires to submit to the voters at said election the
proposition of incurring bonded indebtedness as hereinafter set forth.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN RAFAEL DOES
ORDAIN AS FOLLOWS:
SECTION 1. SPECIFICATIONS OF PROPOSITION. That the following proposition
shall be submitted to the voters of the City at the General Municipal Election to be held on
November 3, 2009:
This Proposition may be known and referred to as the "SAN RAFAEL PUBLIC
SAFETY FACILITIES BOND MEASURE" or as "Measure ". [designation to be
assigned by County Registrar of Voters]
To protect the safety of San Rafael residents and maintain rapid emergency
response by upgrading/replacing aging police/fire stations and related City facilities to
accommodate modern firefighting/lifesaving emergency medical equipment; provide an
earthquake -safe dispatch center so emergency communications function in a disaster; and
ensure fire stations can withstand earthquakes so fire/paramedic units remain operational,
shall the City of San Rafael issue $88 million in bonds with independent oversight, no
money for administrators and all funds staying local?
Finding; Purposes of Bonds. Firefighters, paramedics, and police officers protect
the safety of San Rafael residents each day by providing rapid response services. Due to
the age and condition of San Rafael's fire stations, police station and emergency dispatch
center, it is unclear if they could withstand a major earthquake and remain operational in
a disaster. Aging facilities that were built 50-100 years ago cannot accommodate lifesaving
emergency medical equipment and technology. To protect the safety of San Rafael
residents and businesses, this bond will provide funding to upgrade, enhance, improve,
expand, renovate, build, equip, replace or acquire public safety buildings and related
community facilities and grounds in the City of San Rafael.
Special Bond Account and Mandatory Annual Audits. A separate account shall be
established into which proceeds of the sale of the Bonds shall be deposited. This account
shall be audited annually and a report shall be made detailing (1) the amount of Bond
proceeds received and expended in such fiscal year and (2) the status of any projects
funded or to be funded from the proceeds of Bonds authorized to be issued by this
measure.
No Money For Administrators. Proceeds from the sale of the Bonds authorized by
this proposition shall be used only for costs incurred in connection with funding of the
improvement of public safety and related community facilities and the cost of the issuance
of the Bonds, and not for any other purpose, including staff and administrator salaries and
other operating expenses.
Independent Citizens' Oversight Committee. The Council shall establish an
independent citizens' oversight committee to ensure Bond proceeds are expended only for
the projects authorized by the ballot measure. The committee shall be established within
90 days after the election.
All funds stay local for the benefit of San Rafael Public Safety Facilities. All bond
proceeds shall be used to improve police, fire and related facilities within the City of San
Rafael for the benefit of the local community. No funds may be taken away by the state
government, federal government, or other agencies.
Section 2. Abbreviation of Proposition. Pursuant to Section 13247 of the Elections Code,
the Council hereby directs the Registrar of Voters to use the following abbreviation of the bond
proposition on the ballot:
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"To protect the safety of San Rafael residents and maintain rapid
emergency response by upgrading/replacing aging police/fire stations and
related City facilities to accommodate modern firefighting/lifesaving
emergency medical equipment; provide an earthquake -safe dispatch center
YES
so emergency communications function in a disaster; and ensure fire
stations can withstand earthquakes so fire/paramedic units remain
operational, shall the City of San Rafael issue $88 million in bonds with
NO
independent oversight, no money for administrators and all funds staying
local?"
Section 3. Voter Pamphlet. The Registrar of Voters of the County is hereby requested to
reprint the full text of the proposition, which is all of that portion of Section 1 hereof appearing
in bold -face type, together with the Tax Rate Information (attached hereto as Exhibit A) required
by law, in the voter information pamphlet to be distributed to voters pursuant to Section 13307 of
the Elections Code. In the event the full text of the proposition is not reprinted in the voter
information pamphlet, the Registrar of Voters is hereby requested to print, immediately below
the impartial analysis of the bond proposition, in no less than 10 -point boldface type, a legend
substantially as follows:
"The above statement is an impartial analysis of Measure
If you desire a copy of the measure, please call the San Rafael
City Clerk at 415-485-3065 and a copy will be mailed at no cost
to you."
SECTION 4. Object and Pumoses of Bond. The object and purpose of incurring the
indebtedness is to finance the costs of acquiring and constructing public safety facilities and
related public facilities and grounds to replace, relocate, upgrade, renovate, or expand existing
fire and police stations and construct an earthquake -safe dispatch center. The foregoing
improvements are referred to herein as the "Improvements".
SECTION 5. Estimated Costs of Improvements. The estimated cost of the portion of the
costs of the Improvements to be paid for from the City's general obligation bonds is Eighty -Eight
Million Dollars ($88,000,000). The estimated cost includes legal and other fees and the cost of
printing the bonds and other costs and expenses incidental to or connected with the authorization,
issuance and sale of bonds. The cost of constructing the Improvements in excess of $88,000,000
will be paid for from other funds of the City.
SECTION 6. Amount of Bonds. The amount of the principal of the indebtedness to be
incurred is not to exceed Eighty -Eight Million Dollars ($88,000,000).
SECTION 7. Maximum Rate of Interest on Bonds. The maximum rate of interest to be
paid on the indebtedness shall be twelve percent (12%) per annum.
SECTION 8. Election Called. This City Council does hereby call a General Municipal
Election on Tuesday, November 3, 2009, and submits to the qualified voters of the City, at said
General Municipal Election, the proposition set forth in Section 1 hereof. The City proposes to
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acquire, construct and complete the Improvements, and to issue and sell General Obligation
Bonds of the City pursuant to Article 1, commencing with Section 43600, of Chapter 4 of
Division 4 of Title 4 of the California Government Code, in one or more series, in the maximum
amount and for the objects and purposes set forth above, if two-thirds of all qualified voters
voting on the proposition set forth above vote in favor thereof. The bonds are to be general
obligations of the City, payable from and secured by taxes levied and collected in the manner
prescribed by laws of the State of California. All of said bonds are to be equally and ratably
secured, without priority, by the taxing power of the City.
SECTION 9. Election Procedures. That in all particulars not recited in this Ordinance,
the election shall be held and conducted as provided by law for holding municipal elections.
That pursuant to the requirements of section 10403 of the Elections Code, the Board of
Supervisors (the "Board of Supervisors") of Marin County (the "County") is hereby requested to
consent and agree to the consolidation of a General Municipal Election with the Election on
Tuesday, November 3, 2009, and said election shall be held in all respects as if there were only
one election and only one form of ballot shall be used.
SECTION 10. Marking Ballots. Each voter to vote for the proposition and for the
incurring of said indebtedness shall fill in the oval to the left of the word "YES" on the ballot
below the proposition heading; and each voter to vote against the proposition and against the
incurring of said indebtedness shall fill in the oval to the left of the word "NO" on the ballot
below the proposition heading.
SECTION 11. Notice of Election. Notice of the time and place of holding the election is
given and the City Clerk is authorized, instructed, and directed to give further or additional notice
of the election, in the time, form, and manner required by law.
SECTION 12. Publication of Ordinance. This Ordinance shall be published once a day
for at least seven days in a newspaper printed, published and circulated at least six days a week in
the City, or once a week for two weeks in a newspaper printed, published and circulated less than
six days a week in the City. The first of said publications shall, in either event, be within fifteen
(15) days after the adoption of this ordinance. The City Clerk is hereby authorized and directed to
make said publications and to transmit, for receipt no later than August 7, 2009, a certified copy
of this Ordinance to the Board of Supervisors, and a copy with the County Clerk of the County
and the Registrar of Voters of the County.
SECTION 13. Instructions to County Elections Department. The Board of Supervisors is
hereby requested to issue instructions to the County Elections Department to take any and all
steps necessary for the holding of the said consolidated elections, to provide the following
election services and to canvass the results of said election:
• Provide Voter Indexes
• Provide Voter Count by Precinct
• Provide Drayage and Rental of Polling Places
• Provide Printing of Sample and Official Ballots
• Provide Printing of Measures and Arguments
• Appoint and Notify Election Officers
■ Mail Sample Ballots and Polling Place Notification
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• Provide Precinct Supplies
• Provide Training of Precinct Workers
■ Provide Processing of Absentee Ballots
• Provide Central Counting
• Provide Canvass of Votes Cast
• Provide such other services as are necessary to conduct the General Municipal
Election
SECTION 14. Accountability Measures. As required by Section 53410 of the
Government Code, a statement in substantially the following form shall be included on the ballot
for the Bonds, and the City Council covenants to comply with the reporting requirements
contained in Section 53411 of the Government Code:
Accountability Measures
As required by Section 53410 of the Government Code, the following
accountability measures are hereby made a part of the City's Bond Measure (the
"Measure"):
a) The specific purpose of the bonds is to acquire and construct public
safety facilities and related public facilities and grounds to replace, relocate,
upgrade, renovate, or expand existing fire and police stations and construct an
earthquake -safe dispatch center;
b) The proceeds from the sale of the City's bonds will be used only for
the purposes specified in the Measure, and not for any other purpose,
including staff and administrator salaries and other operating expenses;
c) The proceeds of the Bonds will be deposited into a public safety
building construction fund to be held by the City;
d) All Bond proceeds shall be used to improve police, fire and related
facilities within the City of San Rafael for the benefit of the local community.
No funds may be taken away by the state government, federal government, or
other agencies.
e) The City Manager or Finance Director of the City shall file an
annual report with the City Council of the City, commencing not later than
one year after the first series of the Bonds have been issued, and annually
thereafter, which report shall contain pertinent information regarding the
amount of funds collected and expended, as well as the status of the projects
listed in the Measure.
f) The City Council shall establish an independent citizens' oversight
committee to ensure Bond proceeds are expended only for the projects
authorized by the Measure. The committee shall be established within 90 days
after the election.
Na
SECTION 15. Election Costs. That the City of San Rafael recognizes that additional
costs will be incurred by the County by reason of this consolidation and agrees to reimburse the
County for any costs.
SECTION 16. Form of Ballots. That the ballots to be used at the election shall be in
form and content as required by law.
SECTION 17. Preparation of Ballots. That the Board of Supervisors is requested and
authorized to have the Marin County Election Department procure and fumish any and all
official ballots, notices, printed matter and all supplies, equipment and paraphernalia that may be
necessary in order to properly and lawfully conduct the election.
SECTION 18. Polls. That the polls for the election shall be open at 7:00 o'clock a.m. of
the day of the election and shall remain open continuously from that time until 8:00 o'clock p.m.
of the same day when the polls shall be closed, except as provided in Section 14401 of the
Elections Code of the State of California.
SECTION 19. Impartial Analysis. The City Council directs the City Clerk to transmit a
copy of the measure to the City Attorney, who shall prepare an impartial analysis of the measure
showing the effect of the measure on the existing law and the operation of the measure. The
impartial analysis shall be filed by the date set by the City Clerk for the filing of primary
arguments.
SECTION 20. Effective Date. This Ordinance shall become effective immediately as an
ordinance relating to an election pursuant to Government Code section 36937(a) upon its
adoption by two-thirds vote of all the members of this City Council.
ATTEST:
ALBERT J. BORO, Mayor
ESTHER BEIRNE, City Clerk
The foregoing ordinance was read and introduced at a special meeting of the City Council
of the City of San Rafael held on the day of , 2009 and ordered passed
to print by the following vote, to wit:
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
M
i
and will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of
the Council to be held on the day of 12009.
ESTHER BEIRNE, City Clerk
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EXHIBIT A
TAX RATE STATEMENT
An election will be held in the City of San Rafael (the "City") on November 3, 2009, to
authorize the sale of not to exceed $88,000,000 in bonds of the City to finance facilities as
described in the ballot measure. If the bonds are approved, the City expects to sell the bonds in
three series (but may issue the bonds in more than or fewer than three series). Principal and
interest on the bonds will be payable from the proceeds of tax levies made upon the taxable
property in the City. The following information is provided incompliance with sections 9400-
9404 of the California Elections Code:
1. The best estimate of the tax rate that would be required to be levied to fund this
bond issue during the first fiscal year after the sale of the bonds, based on estimated assessed
valuations available at the time of filing this statement, is $16 per $100,000 of assessed valuation
in fiscal year 2010-11.
2. The City's best estimate of the average tax rate that would be required to be
levied to fund this bond issue over all of the years the bonds are expected to be outstanding is
$41 per $100,000 of assessed valuation.
3. The best estimate of the highest tax rate that would be required to be levied to
fund this bond issue, based on estimated assessed valuations available at the time of filing this
statement, is $53 per $100,000 of assessed valuation in fiscal year 2015-16, decreasing each year
thereafter.
Voters should note that the estimated tax rates are based on the assessed value of
taxable property on the Marin County official tax rolls, not on the market value of property.
Property owners should consult their own property tax bills to determine their property's
assessed value and any applicable tax exemptions.
Attention of all voters is directed to the fact that the foregoing information is
based on the City's projections and estimates only, which is not binding upon the City. The
actual tax rates and the years in which they will apply may vary from those presently estimated,
due to variations from these estimates in the timing of the sale of the bonds, the amount of bonds
sold and market interest rates at the time of the sale, and actual assessed valuations over the term
of repayment of the bonds.
The date of sale and the amount of bonds sold at any given time will be
determined by the City based on the need for construction funds and other factors. The actual
interest rates at which the bonds will be sold will depend on the bond market at the time of each
bond sale, among other factors. Actual future assessed valuation will depend on the amount and
value of taxable property within the City, as determined by the Marin County Assessor in the
annual assessment and the equalization process.
Dated: August 3, 2009
0
Mayor, City of San Rafael