Approved as to Form and Legality
_________________________
City Attorney’s Office
OAKLAND CITY COUNCIL
ORDINANCE NO. ______________ C.M.S.
ORDINANCE AUTHORIZING THE BORROWING OF FUNDS AND THE
ISSUANCE AND SALE OF REMAINING GENERAL OBLIGATION
BONDS (MEASURE DD, MEASURE KK, AND MEASURE U)
WHEREAS, pursuant to an ordinance, which was approved by more than two-thirds of the qualified voters of the City at the November 5, 2002 Statewide General Election (“Measure DD”), the City is authorized to issue general obligation bonds in an amount not to exceed $198,250,000; and
WHEREAS, the proceeds of bonds authorized by Measure DD may be used to improve water quality, provide educational and recreational facilities for children, clean up Lake Merritt, restore Oakland’s creeks, waterfront and Estuary, preserve and acquire open space, renovate parks, provide safe public spaces, and provide matching funds to qualify for state and federal funding for these projects; and
WHEREAS, pursuant to the 2016 Affordable Housing and Infrastructure Ordinance, which was approved by more than two-thirds of the qualified voters of the City at the November 8, 2016 Statewide General Election (“Measure KK”), the City is authorized to issue general obligation bonds in an amount not to exceed $600 million; and WHEREAS, the proceeds of bonds authorized by Measure KK may be used to acquire and make improvements to real property such as improvement and rehabilitation of streets, sidewalks and related infrastructure, renovation and rehabilitation of City facilities including libraries, public safety, recreation and other buildings, and acquisition, improvement, rehabilitation, preservation, construction and repair of affordable housing; and WHEREAS, pursuant to the 2022 Affordable Housing and Infrastructure Bond Ordinance, which was approved by more than two-thirds of the qualified voters of the City at the November 8, 2022 General Municipal Election (“Measure U”), the City is authorized to issue general obligation bonds in an amount not to exceed $850,000,000; and
WHEREAS, the proceeds of bonds authorized by Measure U may be used to acquire and make improvements to real property including, but not limited to, the acquisition, improvement, rehabilitation, preservation, construction, and repair of affordable housing; the improvement and 2 rehabilitation of streets, sidewalks, and related transit infrastructure; the renovation and rehabilitation of City facilities including libraries, public safety facilities, recreation and senior centers, cultural and civic facilities, and other city administrative buildings; the development of technological infrastructure; and the preservation and enhancement of parks and open spaces; and WHEREAS, the City has previously authorized numerous bond issuances under Measure DD, Measure KK, and Measure U, with the remaining amounts available to be issued as set forth in the report accompanying this Ordinance; and WHEREAS, the City intends to issue additional general obligation bonds pursuant to Measure DD, Measure KK, and Measure U, and the City of Oakland Affordable Housing and Infrastructure Bond Law, Oakland Municipal Code, Chapter 4.54 (the “Bond Act”); and WHEREAS, pursuant to Section 219 of the Charter of the City, an ordinance is required to authorize the borrowing of money; and
WHEREAS, the City Council wishes to authorize the issuance of all of the remaining and unissued amounts under Measure DD, KK, and U pursuant to this Ordinance, with the amounts to be issued under each authorization, timing of such issuance, and documents related to such issuance to be further specified and approved under one or more later resolutions of this City Council;
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF OAKLAND DOES ORDAIN AS FOLLOWS:
Section 1. Recitals. All of the above recitals are true and correct, and the City Council so finds and determines.
Section 2. Authorization of Bonds. This City Council hereby authorizes the issuance and sale of one or more series of general obligation bonds (the “Bonds”), which may be taxable or tax-exempt and have one or more series and maturities, pursuant to Measure DD, Measure KK, and Measure U and the Bond Act. The Bonds shall be issued in an aggregate principal amount not to exceed the aggregate amount of authorization remaining under the Measures pursuant to which such series of Bonds is authorized. The aggregate principal amounts of Bonds and the times at which they will be issued under each of Measure DD, Measure KK, and Measure U shall be subsequently set by resolution of the City Council, and shall be finally determined by the City Administrator or the Director of Finance or such other officer of the City designated by the City Administrator or the Director of Finance (each such officer being hereinafter referred to as an “Authorized Representative”).
Section 3. Sale of Bonds; Ancillary Agreements. The terms and provisions of the Bonds, the sale of the Bonds, and the forms of agreements relating to the Bonds, including but not limited to forms of a bond purchase contract, fiscal agent agreement or other related agreements, and official statement of other disclosure document, if determined to be necessary by an Authorized Representative, shall be approved by resolution of the City Council. Staff is hereby directed to return to the City Council with one or more subsequent resolutions that set forth the Measure or Measures pursuant to which such Bonds shall be issued, the forms of the relevant 3 financing documents, delegation parameters, authorized team members, and other transactionspecific details for each bond issuance.
Section 4. Validation. Pursuant to California Government Code Section 53511, this Ordinance is subject to the validation procedures set forth in Chapter 9 (commencing with Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure. Pursuant to California Code of Civil Procedure Section 864, the Bonds authorized by this Ordinance shall be deemed to be in existence upon their authorization, which shall be the date of adoption of this Ordinance. If no action to contest the validity of the Bonds or this Ordinance is commenced within sixty (60) days following the adoption of this Ordinance, the validity of the Bonds and of this Ordinance shall be conclusively presumed, and no court shall have jurisdiction to inquire into the validity thereof.
Section 5. Severability. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of the Ordinance. The City Council hereby declares that it would have passed this Ordinance and each section, subsection, clause or phrase thereof irrespective of the fact that one or more other sections, subsections, clauses or phrases may be declared invalid or unconstitutional.
Section 6. Effective Date. This Ordinance shall be effective immediately upon final adoption if it receives six or more affirmative votes; otherwise, it shall become effective on the seventh day after final adoption.
IN COUNCIL, OAKLAND, CALIFORNIA,
PASSED BY THE FOLLOWING VOTE:
AYES - BROWN, FIFE, GALLO, HOUSTON, RAMACHANDRAN, UNGER, WANG, AND
PRESIDENT JENKINS
NOES –
ABSENT –
ABSTENTION –
ATTEST __________________________________
ASHA REED
City Clerk and Clerk of the Council of the
City of Oakland, California
Date of Attestation:
3486930v4/MJM
NOTICE AND DIGEST
ORDINANCE AUTHORIZING THE BORROWING OF FUNDS AND THE
ISSUANCE AND SALE OF REMAINING GENERAL OBLIGATION
BONDS (MEASURE DD, MEASURE KK, AND MEASURE U)
The Ordinance would authorize the City to issue general obligation bonds (the “Bonds”) in an aggregate principal amount not to exceed the total remaining voter-approved but as-yetunissued bond amounts pursuant to: (i) the ordinance approved by more than two-thirds of the qualified voters of the City at the November 5, 2002, Statewide General Election (“Measure DD”), (ii) the 2016 Infrastructure Bond Ordinance (“Measure KK”), which was approved by more than two-thirds of the qualified voters of the City at the November 8, 2016 Statewide General Election, and (iii) the 2022 Affordable Housing and Infrastructure Bond Ordinance, which was approved by more than two-thirds of the qualified voters of the City at the November 8, 2022, General Municipal Election (“Measure U”). The proceeds of each series of Bonds will be used for purposes permitted by Measure DD, Measure KK, and Measure U, as applicable. Staff is directed to return to the City Council with one or more subsequent resolutions setting forth the Measure or Measures under which the Bonds shall be issued, forms of the relevant financing documents, delegation parameters, authorized team members, and other transaction-specific details for each bond issuance. Pursuant to California Code of Civil Procedure Sections 860 et seq., if no action to contest the validity of the Bonds or this Ordinance is commenced within sixty (60) days following the adoption of this Ordinance, the validity of the Bonds and of this Ordinance shall be conclusively presumed.