APPROVED AS TO FORM AND LEGALITY
DRAFT
________________________
CITY ATTORNEY’S OFFICE
OAKLAND CITY COUNCIL
RESOLUTION NO. ______________ C.M.S.
INTRODUCED BY COUNCILMEMBER REBECCA KAPLAN AND COUNCIL
PRESIDENT BAS
RESOLUTION 1) AMENDING RESOLUTION NO. 90326 C.M.S., WHICH ADOPTED THE MIDCYCLE BUDGET AND THE FISCAL YEAR 2023-
2025 CAPITAL IMPROVEMENT PROGRAM (CIP), TO
ALLOCATE FUNDING FROM PROPOSED 2025 MEASURE KK AND
MEASURE U BOND ISSUANCES TO NEW AND EXISTING CITY
INFRASTRUCTURE PROJECTS AND AFFORDABLE HOUSING
PROJECTS AND MAKE OTHER RELATED AMENDMENTS TO FUND
2218 (TRANSPORTATION); 2) AUTHORIZING THE CITY
ADMINISTRATOR TO CREATE NEW FUNDS FOR THE 2025 BOND
FUNDING AS NECESSARY; AND 3) DIRECTING THE CITY
ADMINISTRATOR TO SCHEDULE A REPORT TO THE CITY COUNCIL
REGARDING THE TIMING FOR IMPLEMENTING A 2025 BOND
ISSUANCE
WHEREAS, on November 8, 2016, the City of Oakland voters approved Measure KK, authorizing $600 million in general obligation bonds to fund various City infrastructure and affordable housing projects; and
WHEREAS, on November 8, 2022, Oakland voters passed Measure U, the 2022 Affordable Housing Infrastructure Bond (“Measure U”), an $850 million general obligation bond to invest in vital infrastructure projects to improve public safety, protect and provide affordable housing, and preserve the quality of life in all neighborhoods throughout Oakland; and
WHEREAS, on June 4, 2024, pursuant to Resolution No. 90266 C.M.S., the Oakland City Council adopted the Oakland Safety Facilities Plan, identifying sites for acquisition, development and/or improvements, authorizing the City Administrator to enter into negotiations for specified improvements to existing safety facilities and acquisition and development of new safety facilities; and
WHEREAS, on June 28, 2024, pursuant to Resolution No. 90326 C.M.S., the Oakland City Council adopted the Fiscal Year 2024-2025 Midcycle Budget and Capital Improvement Program (“CIP”); and
2 WHEREAS, the City of Oakland’s CIP guides the City’s long-term, strategic decisions regarding the construction, repair, and replacement of the City’s assets, including libraries, public safety facilities, sewers, recreation centers, parks, and transportation and street improvements; and
WHEREAS, the City develops a new CIP Budget every two years for inclusion in the overall City Budget, and the assets identified for repair, replacement, or purchase in a budget cycle become CIP Projects; and
WHEREAS, the most recent CIP Budget was adopted with the FY 24-25 Midcycle Budget; and
WHEREAS, pursuant to Resolution No. 90326 C.M.S., the Oakland City Council adopted a budget that assumed the receipt of one-time revenues of $63 million from the City’s sale of its fifty percent undivided ownership interest in the Coliseum Complex located at 7000 Coliseum Way (the “Coliseum Site”); and
WHEREAS, Resolution No. 90326 C.M.S. included a continency budget (the “Contingency Budget”) that would automatically take affect if the one-time revenues from the sale of the Coliseum Site were not received within a specified timeframe and in September the contingency budget was activated, thus postponing a majority of CIP projects; and
WHEREAS, this proposed amendment to the adopted FY 2024-25 midcycle Contingency Budget and CIP, are attached hereto as Exhibit A; and
WHEREAS, the proposed amendments align the CIP Budget with the Public Safety Facilities Plan approved by the Oakland City Council, which specifies the improvement or development of certain public safety infrastructure projects, and updates funding allocation to advance a new 911 communication dispatch center at the West Oakland BART Development (Mandela Station), a public safety multi-departmental training facility, and an Oakland Police Department wellness center, as previously identified in the adopted Public Safety Facilities Plan; and
WHEREAS, in addition to identifying these new and modified safety facilities, the proposed amendment provides clarity about plans for the bond-funded Capital Improvement Program more broadly, including previously-identified projects; and
WHEREAS, the proposed amendments also reallocate Measure BB transportation funds in Fund 2218 to various capital transportation projects, and thus reducing the pressure on bond funds; and
WHEREAS, it is the intention of the City Council to issue bonds in 2025, in furtherance of the adopted CIP; and
WHEREAS, the amendment will update the most recently published CIP Budget Book to include additional projects, reconfirm prior projects, make some modifications to existing projects,
3 remove projects which have since been cancelled, and increase the amount for affordable housing; and
WHEREAS, the proposed amendment allocates future bond funding in a new bond Fund to be determined, depending on the timing of the bond issuance, and the subsequent tax analysis of the proposed projects; and
WHEREAS, a review and tax analysis is performed for all projects proposed for bond funding prior to the bond issuance, and the proposed projects that are the subject of these amendments will require a tax analysis and approval by bond counsel prior to final authorization for bond funding; and
WHEREAS, as required by both Measure KK and Measure U, prior to the issuance of the bonds, the City Council must identify specific projects to be funded and disclose certain findings about the projects, and this analysis and approval will be the subject of a separate resolution scheduled to City Council closer to the proposed bond issuance; now, therefore, be it
RESOLVED: That the City Council hereby amends Resolution No. 90326 C.M.S., which adopted the fiscal year 2024-2025 Midcycle Budget and CIP, to: 1) allocate bond funding from future proposed Measure KK and Measure U bond issuances, in a new bond fund to be determined, to new and existing City infrastructure projects to align with the Safety Facilities Plan, to other City-wide infrastructure projects, and to affordable housing projects, and 2) reallocate funding in Fund 2218 to transportation projects, as described in Exhibit A attached to this resolution; and be it
FURTHER RESOLVED: That the City Council authorizes the City Administrator to update the CIP Budget adopted with the FY 24-25 Midcycle Budget, and to include the updated CIP Budget in the upcoming FY 2025-2026 Proposed Budget, to include the new and revised and reconfirmed projects identified in Exhibit A, and assign them to a bond for a proposed 2025 issuance, subject to future City Council authorization; and be it
FURTHER RESOLVED: That the City Council authorizes the City Administrator to create new fund numbers for any 2025 bond funding, as necessary; and be it
FURTHER RESOLVED: to adopt the attached amendments to Fund 2218 (transportation) funds; and be it
4 FURTHER RESOLVED: That the City Administrator shall report back to the City Council not later than February 2025, regarding the planned timing and next steps for implementing the 2025 bond issuance.
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