1 APPROVED AS TO FORM AND LEGALITY
DRAFT
________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.
INTRODUCED BY COUNCIL PRESIDENT FORTUNATO BAS,
COUNCILMEMBER KALB, AND COUNCILMEMBER KAPLAN
RESOLUTION ON THE CITY COUNCIL’S OWN MOTION SUBMITTING
TO THE VOTERS AT THE NOVEMBER 5, 2024 GENERAL ELECTION A PROPOSED ORDINANCE TO AUTHORIZE ISSUANCE OF $182
MILLION IN GENERAL OBLIGATION BONDS TO FUND
INFRASTRUCTURE PROJECTS AT CHABOT SPACE AND SCIENCE
CENTER, CHILDREN’S FAIRYLA ND, THE OAKLAND MUSEUM OF
CALIFORNIA, AND PERALTA H ACIENDA HISTORICAL PARK TO
IMPROVE AND BUILD FACILITIES TO ADVANCE, AMONG OTHER
OBJECTIVES, THE EDUCATIONAL, RECREATIONAL, AND
CULTURAL PROGRAMMING FOR ALL CHILDREN, FAMILIES AND
RESIDENTS; AND DIRECTING THE CITY CLERK TO FIX THE DATE
FOR SUBMISSION OF ARGUMENTS AND PROVIDE FOR NOTICE AND
PUBLICATION AND TAKE ANY AND ALL ACTIONS NECESSARY
UNDER LAW TO SUBMIT THIS MEASURE TO THE VOTERS AT THE
NOVEMBER 5, 2024 GENERAL MUNICIPAL ELECTION
WHEREAS, the City of Oakland (the “City”) has identified critically needed investment in its major cultural facilities to enhance educational programmin g; safe, affordable cultural experiences for children and families; and quality of life for all Oaklanders; and
WHEREAS, the Oakland City Council (the “City Council”) recognizes that investment in the City's cultural facilities, including Chabot Space and Science Center, Children’s Fairyland, Peralta Hacienda Historical Park, and the Oakland Museum of California, is necessary to preserve and enhance the quality of life for all Oaklanders; and
WHEREAS, the Oakland Museum of California, located at 1000 Oak Street, Oakland, California, is owned by and in the custodial care of the City of Oakland; and 2 WHEREAS, Children’s Fairyland, located at 699 Bellevue Avenue, Oakland, California, is owned by and in the custodial care of the City of Oakland; and
WHEREAS, Chabot Space and Science Center, located at 10000 Skyline Bou levard, Oakland, California, is owned by and in the custodial care of the City of Oakland; and
WHEREAS, Peralta Hacienda Historical Park, located at 2465 34 th Avenue, Oakland,
California, is owned by and in the custodial care of the City of Oakland; and
WHEREAS, these four institutions have long-standing histories in the City and have broad civic, educational, cultural a nd recreational missions and are committed to serving a diverse audience of local residents and visitors, offering enriching and engaging educational programming to nearly 220,000 Oakland students each year; and
WHEREAS, the four institutions are all challenged by aging infrastructure and the need to improve and enhance the facilities in order to achieve their missions and serve the community; and
WHEREAS, the Oakland Museum of California, Chabot Space and Science Ce nter, Peralta Hacienda Historical Park, and Children’s Fairyland are in need of urgent and necessary capital improvement projects (the “Projects”) totaling $182 million; and
WHEREAS, the City has a vision for ensuring these local institutions can continue to offer valuable exhibits and programming for children of all ages, including interactive hands-on learning opportunities in science, technol ogy, art, history, and culture , multi-media exhibits, and state of the art programming; and
WHEREAS, children and youth need safe and affordable spaces where they c an enjoy quality time, and recreational, cultural, and educational spaces should not only be maintained, but enhanced for all families; and
WHEREAS, the City has determined that these cultural institutions are critical to the civic, cultural, and educational fabric of Oakland; and
WHEREAS, the City Council finds and determines that completion of the Pr ojects is in the public interest and the cost of the Projects will total $182 million; and
WHEREAS, the City Council finds and determines it is in the best interests of the City to submit to the voters a proposed ordinance (the “Ordinance”) to incur bonded indebtedness not to exceed $182 million for the purpose of financing the Projects; and
WHEREAS, the City’s current goal is to keep the ad valorem property tax rate levied by the City to service its voter approved indebtedness during each year bonds authorized by the Ordinance are outstanding at o r below the fiscal year 2022-23 tax rate, as projected by the City as of the date such series of bonds is issued, by issuing new b onds under the Ordinance as older 3 bonds are retired and/or as the tax base grows, though the property tax rate may vary due to other factors; now, therefore be it
RESOLVED: That the Oakland City Council does hereby submit to the voters, a t t h e November 5, 2024 General Municipal Election, the Ordinance, which reads as follows:
The people of the City of Oakland do ordain as follows:
SECTION 1. TITLE AND PURPOSE.
A. TITLE. This Ordinance may be cited as the “2024 Cultural Facility Infrastructure Bond.”
B. PURPOSE. The object and purpose of the authorized indebtedness will be to acquire and improve real property including, but not limited t o the acquisition, improvement, rehabilitation, preservation, construction, and repair of City facilities for access improvements under the Americans with Disabilities A ct (“ADA Accessibility Improvement”), hi storic preservation, safety and security, visitor amenities, educational facilities, environmental sustainability , and exhibits and collections storage.
SECTION 2. California Environmental Quality Act (“CEQA” Findings.
This action is not a project under the California Environmental Quality Act (“CEQA”) because the establishment of a government financing mechanism t hat does not involve any commitment to specific projects to be constructed with bond funds does not meet the definition of a project under CEQA and the CEQA Guidelines. The use of bond proceeds to finance any specific project or portion of any specific project will be subject to a pproval of the applicable decision- making body at that time, upon co mpletion of planning and any f urther required environmental review under CEQA. Even if this action was to be deemed a proj ect, it would be exempt from CEQA in accordance with CEQA Guidelines Section 15061, subdivision (b)(3), because it can be seen with certainty that there is no possibility that the actio n authorized herein may have a significant effect on the environment.
SECTION 3. IMPROVEMENT PROJECT PLAN
A. The acquisition or improvement o f real property approved by thi s measure to be funded by the issuance and sale of not to exceed $182 million in bonds includes but is not limited to the acquisition, improvement, rehabilitation, preservation, construction, and repair of City facilities for ADA Accessibili ty Improvements, historic preservation, safety and security improvements, exhibi t and collection storage improvements, visitor amenities, educational facilities , and environmental 4 sustainability enhancements for the facilities and in the amoun ts stated in this Section 3.A. All dollar amounts in cluded are estimates at the t ime of adoption of this Ordinance and are not commitments or guarantee that specific amounts will be spent on particular projects.
1. Approximately $98 million at the Oakland Museum of California;
2. Approximately $55 million at Chabot Space and Science Center;
3. Approximately $22 million at Children’s Fairyland;
4. Approximately $9 million at Peralta Hacienda Historical Park
B. The final cost of each project will be determined as plans are finalized, construction bids are awarded, and projects are completed. Proceeds of the b onds may be used to pay or reimburse the City for the costs of City staff when t hey are performing work on or necessary and incidental to such projects.
C. The order in which the projects appear in Section 3.A above is not an indication of priority for funding or completion or a guarantee that any such projects will be completed. Projects will be completed as needed according to Ci ty priorities.
Completion of some projects may be subject to additional enviro nmental or other government approvals by state or local officials.
D. Contractors, City departments, and/or the operators of the facilities listed in Section
3.A shall comply with all applicable City laws when awarding co ntracts or performing work funded with the proceeds of Bonds authorized by this measure, including but not limited to compliance with the City of Oakland's Local and Small Local Business Enterprise (L/SLBE) Program Ordinance.
SECTION 4. Tax and Indebtedness.
To provide financing for the purposes and projects identified i n Section 1 of this Ordinance, the City shall be authorized to issue and sell bonds in one or more series in an amount up to $182 million in aggregate principal amount subject to the accountability safeguards specified in Section 5, 6, and 7 of this Ordinance. The maximum rate of interest on the bonds shall be 12% per annum, though the City expects to issue the bonds at market rates prevailing at the time of issuance. Said interest shall be payable semiannually, except that interest for the first year after the date of the bonds may be made payable at the end of said year.
The City's current goal is to keep the ad valorem property tax rate levied by the City to service its voter-approved indebtedness during each year bonds authorized by this Ordinance are outstanding at or below the estimated fiscal year 2022-2023 tax rate, as projected by the City as 5 of the date each series of bonds are issued under this Ordinance, by issuing new bonds under this Ordinance as older indebtedness are retired and/or as the tax b ase grows, though the actual property tax rate levied in each fiscal year may vary based on other factors. The City's current goal shall not be construed as impairing or limiting the obliga tion of the City to levy taxes as necessary to pay principal and interest on the bonds authorized and issued under this Ordinance and applicable law. In accordance with this goal, the City's Debt Management Policy includes a General Obligation Bond Policy to maintain the ad valorem property tax rates levied by the City to service its voter-approved indebtedness at or below the fiscal year 2022-2023 rate with respect to future City general obligation bond issuances.
The City's best estimate of the ad valorem tax rate required to be levied on all taxable property in the City to pay debt service on the total amount of the proposed bonds ($182 Million) is projected to average $[____] per year per $100,000 of assessed property valuation while bonds are outstanding. Such estimation shall not be construed to limi t the power and duty of the City Council to cause to be levied and collected a tax sufficient to pay debt service on the bonds in any fiscal year, which are secured by an unlimited ad valorem t ax on all eligible property in the City.
SECTION 5. Deposit of Bond Proceeds
The net proceeds of the bonds shall be deposited into a special trust account with or established by the Treasury of the City of Oakland and shall be allocated and expended at the direction of the City Council for purposes set forth in Section 1 of this Ordinance.
SECTION 6. Financial Audits and Citizen Oversight
As long as any authorized bond proceeds have not been spent, an annual independent audit shall be performed by an external entity to ensure accoun tability and proper disbursement of the bond proceeds in accordance with the objectives stated herein.
The City Council shall assign to the Affordable Housing & Infra structure Bonds Oversight Committee the responsib ility for citizen oversight of this measure. This Board or Commission shall review relevant financial and operational reports related to the expenditure of bond proceeds and provide reports to the City Council when necessary. In addition, the Board or Commission should evaluate the impacts and outcomes of bond exp enditures on the bond measure's stated goals.
SECTION 7. Debt Service Fund
For the purpose of paying the principal and interest on the bonds, the City shall, annually levy and collect a tax sufficient to pay the annual interest on such bonds as it becomes due and 6 such part of the principal that will become due before the proc eeds of the next general tax levy is available for the payment of such principal. The City shall establish and separately maintain such collected tax rev enues in a debt serv ice fund until the bo nds and the interest thereon are fully paid, or until a sum is set apart to pay all amounts that will be due to cover the principal and interest on the bonds in the Treasury of the City of Oakland or held on behalf of the City.
SECTION 8. Savings Clause.
If any provision, sentence, claus e, section or part of this Ord inance is found to be unconstitutional, illegal or invalid, such unconstitutionality, illegality, or invalidity shall not affect or impair any of the remaining provisions, sentences, cl auses, sections or parts of this ordinance. It is hereby declared that the voters would have ado pted this Ordinance if such unconstitutional, illegal or invalid provision, sentence, claus e section or part thereof not been included herein.
SECTION 9. Effective Date.
This Ordinance shall be effective only if it is approved by two-thirds of the voters voting thereon and shall go into effect ten (10) days after the vote is declared by the City Council.
SECTION 10. Duties of the Director of Finance.
It shall be the duty of the Director of Finance to collect and receive all taxes imposed by this Ordinance. The Director of Finance is charged with the enf orcement of this Ordinance and may adopt rules and regulations relating to such enforcement.
SECTION 12. Term of Tax Imposition.
The ad valorem taxes enacted by this Ordinance shall be imposed and levied until the authorized indebtedness is fully paid. The City shall place delinquencies on subsequent tax bills.
SECTION 13. Compliance.
Under Section 53410 of the California Government Code, the bond s shall be for the specific purposes authorized in this Ordinance and the proceeds of such bonds will be applied only for such specific purposes. The City will comply with the requirements of Sections 53410(c) and 53410(d) of the California Government Code.
SECTION 14. Changes in Law.
All provisions of this Ordinan ce and bond measure shall be subj ect to the applicable laws in effect as of the date of issuance of any bonds issued under the measure. 7 ; and be it
FURTHER RESOLVED: That the City proposes to issu e and sell general obligation b onds of the City of Oakland, in one or more series, in the maximum a mount and for the objects and purposes set forth herein and to c oordinate with the operators of the Chabot Space and Science Center, Children’s Fairyland, Oa kland Museum of California, and Peralta Hacienda Historical Park regarding the management of the Projects; and be it FURTHER RESOLVED: That the bonds are to be general obligations of the City of Oakland payable and secured by taxes levied and collected in the manner prescribed by the laws of the State of California; and that all said bonds are to be equally and ratably secured, without priority, by the taxing power of the City; and be it
FURTHER RESOLVED: That each ballot used at said election shall have printed therein, in addition to any other matter required by law, the following:
AN ORDINANCE AUTHORIZING THE ISSUANCE OF INFRASTRUCTURE BONDS IN AN AMOUNT NOT TO EXCEED $182 MILLION TO IMPROVE SAFETY AND INVEST IN CHILDREN’S FAIRYLAND, CHABOT SPACE AND SCIENCE CENTER, PERALTA HACIENDA HISTORICAL PARK, AND OAKLAND MUSEUM OF CALIFORNIA.
MEASURE ____
Measure ___ [ ]
[FINAL BALLOT QUESTION SUBJECT TO CITY ATTORNEY
APPROVAL]
Yes
No
FURTHER RESOLVED: That the City Council hereby authorizes and directs the City Clerk of the City of Oakland (the "City Clerk") at least 88 days prio r to the November 5, 2024 general municipal election, to file certified copies of this resolution with the Alameda County Board of Supervisors and the Registrar of Voters; and be it
8 FURTHER RESOLVED: That in accordance with the Elections Code and Chapter 3.08 o f the Oakland Municipal Code, the City Clerk shall fix and determ ine a date for submission of arguments for or against said proposed Ordinance, and said date shall be posted in accordance with legal requirements; and be it,
FURTHER RESOLVED : That the City Council does her eby request that the Board of Supervisors of Alameda County include on the ballots and sample ballots recitals and measure language to be voted on by the voters of the qualified electors of the City of Oakland; and be it FURTHER RESOLVED : That the City Clerk is hereby directed to cause the posting, publication, and printing of notices, pursuant to the requireme nts of the Charter of the City of Oakland, Chapter 3.08 of the Oakland Municipal Code, the Govern ment Code and the Elections Code of the State of California; and be it
FURTHER RESOLVED: That the City Administrator, or any written designee of the C ity Administrator is hereby separate ly authorized and directed to e xecute and deliver to County officials any directions, requi sitions, or other writings, and to make any changes to the tax rate statement, to conform to any legal requirements or requirements of the County Registrar, in order to cause the election to be held and conducted in the City; and be it FURTHER RESOLVED: That the City Attorney, in accord with the City Attorney's powers and duties is hereby authorized to insert the final ballot question into this Resolution after adoption by the Council so that the ballo t question constitutes a true a nd impartial synopsis of the final proposed measure; and to make any changes to the texts of the m easure as described herein to conform to any legal requirements or requirements of the County Registrar; and be it
9 FURTHER RESOLVED: That the City Clerk and City Administrator are hereby authori zed and directed to take any and all actions necessary under law to prepare for and conduct the 2024 general municipal election and appropriate all monies necessary for the City Administrator and City Clerk to prepare and conduc t the November 5, 2024, general municipal election, consistent with law.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - FIFE, GALLO, JENKINS, KALB, KAPLAN, RAMACHANDRAN, REID, AND
PRESIDENT FORTUNATO BAS
NOES –
ABSENT –
ABSTENTION –
ATTEST:
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California
3350660v6/ARM