Item 5
City Council Meeting
Item # 5
A. Discussion and Potential Actions Related
to Proposed November 2024 Ballot
Measure Authorizing the Issuance of
General Obligation Bond Debt to Fund
Public Infrastructure
B. Discussion and Council Direction on a
Proposed Charter Amendment Regarding
1852 Public Works Procurement [Charter
THE MISSION CIT Section 1310] to Update the City's Public Works Bidding and Contracting Authority,
Allow for Design-Build Projects and
Implement Other Technical Changes
July 9, 2024
1 City of
Santa Clara
The Center of What's Possible
Presenters
Staff:
• Jovan Grogan, City Manager
• Glen Googins, City Attorney
• Jeremy Ray, Deputy Fire Chief
• Craig Mobeck, Director of Public Works
• Cynthia Bojorquez, Assistant City Manager/Director of Parks and Recreation
• Manuel Pineda, Chief Electric Utility Officer
Consultants:
• Ben Tulchin, Tulchin Research
• Jared Boigon, Team Civx
2 POST MEETING MATERIAL
1 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
AGENDA
• Potential Bond Measure and Charter Amendment
• City Unfunded Infrastructure Needs
• Voter Polling Results - Tulchin Research
• Community Feedback and Education - Team Civx
• Potential Bond Funding
• Transparency and Accountability Plan
• Proposed Expenditure Plan
• Charter Amendment
• Next Steps
• Council Questions/Discussion
3 City of
Santa Clara
The Center of What's Possible
Potential Bond Measure - November 2024 Ballot
• Tonight, the City Council will:
• Consider placement of a general
obligation (GO) bond on the
November 2024 ballot
• Provide direction on a Charter
amendment to modernize contracting
practices for Public Works projects
4 2
7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
City General Obligation Bond History
• Last general facilities bond of record was from 1959- passed overwhelmingly
• Training Center bui Dyears ministration Building and Fire • Infrastructure bond effort initiated in 2018
• City initiated infrastructure bond again for the 2020 ballot 5 5
City of
Santa Clara
The Center of What's Possible
UNFUNDED
INFRASTRUCTURE NEEDS
6 6
3 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
City Infrastructure Needs
• Over $600 million in City infrastructure needs identified where the General Fund is the primary funding source
City of
Santa Clara
The Center of What's Possible
Why $600 Million?
City has completed several studies over time, with no funding sources to implement the needed changes
• Parks and Recreation Facility Condition Assessment (Kitchell Report) - $66.5M (2018 dollars)
• Storm Drain Master Plan - $290M (2018 dollars)
• Pedestrian Master Plan - $194M (2020 dollars)
• Creek Trail Master Plan (in progress) - $37M estimate • Bike Master Plan - $40M (2019 dollars)
Without dedicated funding, City cannot act on study findings and escalation increases project costs
8 8
4 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
General Fund Capital Reserve
Fiscal Year Ending Balance
2020/21 $5,335,000
2021/22 $6,720,000
2022/23
00,520,0
2023/24 $23,860,000
2024/25 est. $7,769,000
9 City of
Santa Clara
The Center of What's Possiblo
Infrastructure Needs Growing
• This year alone, there were $275 million in infrastructure requests across City departments with only $24 million in the Capital Reserve for infrastructure purposes.
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7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Unfunded Infrastructure Needs
• Dedicated infrastructure funding sources are needed to:
• Repair aging streets and fix potholes
• Fix underground stomrdrains and pipes to prevent flooding and sinkholes
• Make roadways safer for drivers and pedestrians, and create safe routes and intersections for kids to get to school
• Upgrade 911 communications, police, fire and emergency response facilities
• Repair and upgrade aging parks, playgrounds, community and recreation facilities and libraries
11 11
City of
Santa Clara
The Center of What's Possible
VOTER POLLING
12 6
7/9/2024 Item 5
City of
-AR
Santa Clara
Santa Clara City Infrastructure
Poll of Likely November 2024
General Election Voters
Presented by:
Ben Tulchin, Corey O'Neil, Corey Teter, Kelsey Bullis, Asha Gupta & Caroline Joseph Tulchin Research
May 2024
ENTA CLARION
TULCHIN
RESEARCH
Better Data. Better Strategy.
13 City of
Santa Clara
The Center of What's Possible
Methodology
• Multi-modal citywide survey in Santa Clara, California • Survey(s) conducted among 400 likely November 2024 voters • Benchmark Survey (April 1-4, 2024)
• Refinement Survey (May 18-22, 2024)
• Survey offered in English, Chinese, Spanish and Vietnamese • Margin of error is + 4.88% for full 400 sample for both surveys 14 7
7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
State of Public Infrastructure:
Overwhelming Majority of Voters See a Need for Additional Investment Do you feel that the City of Santa Clara could benefit from additional investment in public infrastructure such as fixing streets, potholes, and underground storm drains and improving 911 emergency and disaster response? 90%
80%
80%
70%
60%
50%
40%
30%
20% 12%
10% 8%
0%
Don't know 15
Yes No
15 City of
Santa Clara
The Center of What's Possible
Support for $598 Million Bond - Refined Language (May 2024) To repair streets and potholes throughout Santa Clara, fix underground stormdrains/pipes to prevent sinkholes; make roads safer for drivers.
Would you vote yes or no on this measure? (IF CHOICE): And is that definitely YES/NO or probably YESINO? (IF UNDECIDED) Which way would you lean? Definitely Yes 25% Without
Lean With
Probably Yes 30%J 55% Lean
61%
Lean Yes 6%
Lean No 3%
Probably No 12% Without With Lean
Lean 29%
Definitely No 26%
Don't Know 10%
0% 20% 40% 60% 16
16 8
7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Messages That Resonate Best with Voters
Here are statements SUPPORTERS have made about a potential revenue measure to fund Santa Clara infrastructure. On a scale from 1 to 10, please indicate how convincing %10 each is as a reason to support the measure, with a TEN meaning it is VERY CONVINCING and a ONE meaning it is NOT AT ALL CONVINCING as a reason to support a Rating measure. You can be anywhere in between.
(ACCOUNTABILITY) This measure includes strict accountability to ensure our tax dollars are spent as intended. These include independent annual financial audits, a Citizens' Oversight 26%
7.12 Committee, require all funds are used locally, and all money spent on specific projects and not on salaries, benefits or pensions.
(FIRE) The Fire Department receives nearly 10,000 9-1-1 calls a year—a 14% increase from a 6.86 20% decade ago. This measure will fund critical upgrades to 9-1-1 emergency, medical, and disaster response so our Fire Department can respond to calls more effectively and save lives. (STREETS) This measure will provide critical funding for fixing potholes and repairing, maintaining, and improving local roads, bridges and streets in every community. It will focus on 6.69 21% fixing streets in the worst condition and make roads and sidewalks safer. (STORM DRAINS) Our city has been hit hard recently by heavy storms that have caused a lot of damage. This measure will fix underground storm drains and pipes to prevent flooding, 6.36 23% erosion and sinkholes.
(SAFETY) This measure will make Santa Clara safer. It will improve our emergency and disaster response rates, make roads and sidewalks safer for drivers, pedestrians, seniors, 6.32 15%
people with disabilities, bicyclists and kids going to school, and fix underground storm drains to prevent flooding and sinkholes.
5.00 5.50 6.00 6.50 7.00 7.50 17
• Means rating on 1-10 scale
17 City of
Santa Clara
The Center of What's Possible
Most Trusted Sources for Ballot Measure Information
Combined
Please indicate how much you trust each of the following when it comes to getting information about local issues Choice
and measures. Would you say you trust each a great deal, a fair amount, only a little, or not at all: (RANDOMIZE Local firefighters 30% 39% 69%
Emergency 26% 39% 65%
dispatchers
Your family/friends 24% 40% 64%
0% Great Deal A Fair Amount 30% 50% 60% 70% 80%
18 9
Item 5
City of
Santa Clara
The Center of What's Possible
COMMUNITY FEEDBACK AND
EDUCATION
19 19
City of
Santa Clara
The Center of What's Possible
Infrastructure Funding Needs Understood
• 80% of voters see the need for infrastructure funding - Two scientific voter polling surveys
• Council sees the need for infrastructure funding - aging infrastructure and deferred maintenance a regular topic of discussion at City Council meetings Santa Clara has not invested in the City's infrastructure to this extent • As infrastructure continues to age, the need for investment will grow 20 20
10 7/9/2024 Item 5
City of
SHA
Santa Clara
The Center of What's Possible
Voter and Community Feedback
Keeping Santa Clara
• Two scientific voter polling surveys
• Community Mailer Survey
Tear off survey to mail back or a QR code for
online survey
• Gathered additional thoughts from over 800
community respondents using a broad approach
Community Priorities Survey Results
(approx. 500 online, over 300 mailed back)
90%
89%
• Sent a second voter mailer reporting back on 86% Follow Us Online Community Mailer Survey and inviting
participation in tonight's meeting 21
21 City of
Santa Clara
The Center of What's Possible
We Asked, You Answered -
Keeping Santa Clara Safe and Well-Maintained
Community Priorities Survey Results
In May, the City of Santa Clara mailed a survey asking community members to share their priorities for a potential bond measure. With over 8oo survey responses tallied. respondents identified the following top community priorities:
Community Mailer Repair streets and fix potholes throughout the City of Santa Clara 90% Feedback Results Fix underground stormdrains and pipes to prevent erosion 89% and sinkholes
Upgrade 911 communications, fire/emergency response facilities, preparedmes to improve ators for responstages and emergency 86% and recreation families and brake laygrounds, community 80% Ensure kids have safe routes and intersections to get to school 80% Make roads safer for drivers, pedestrians and bicyclists 79% 22 22
11 719/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Voter Education
Caende Cry Now: MySticara Circas
City of
Santa Clara
Te Center stars froste
• Potential general obligation ¡WANT TO
SERVICES OUR CITY RECREATION & COMMUNITY
bond webpage with FAQ's
Serch
- Stay Intomed
Sign Up to Receive Cly Nicas
• [email protected] Keeping Santa Clara Safe and Well-Maintained - Cay Nows
Potential Local Bond Measure
Cry Hal News
e-mail set up to receive
Contact us
questions and feedback Accessing Cly Savers
- Curest Cry Froerts & blustes
• Educational Fact Sheets for
distribution at community
recreation and senior centers, • Newsroon Nested in the heart of Slicon Valey, Santa Clara stands as a vibrant city beaming with innovason. With I's excellent qualty of lite, thriving business ecosystem, diverse population, rich history, and sate neighborhoods, Socol Meda Santa Clara Is a highly destrable place to five. Wite the City remains strong, local funding is needed to make libraries, and City Hall essential improvements to intrastructure which are cultical to safely and quality of life.
Repairing Streets, Stormdrains and Ensuring Safety
Santa Clara's aging roads, bridges, underground stormdrain p/pes and sidewake need repairs and • Social media engagement
23 23
City of
Santa Clara
The Center of What's Possible
Best Time for a General Obligation
Infrastructure Bond
Why Consider 2024?
• Potential state initiative lowering threshold to 55%
• Urgency of Need
• Limited bonds on the ballot in Santa Clara
• Still relatively low historic debt interest rates
If not 2024?
• Additional School bonds could go to ballot
• Other potential changes in State law
• Problems worse and more expensive to fix 24
24 12
7/9/2024 Item 5
City of
PED
Santa Clara
The Center of What's Possible
Historical Municipal Bond Rates
AAA Municipal 30 Year Bond Rates*
July 2004 - Present
• Current rates remain 7.00%
very competitive, 6.00%
compared to historical 5.00% on,
averages. 4.00%
• Unfortunately, we 3.00%
missed the opportunity 2.00%
to take advantage of 1.00%
historically low rates 0.00%
between 2019-2021. 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 * This is the Bloomberg Valuation Service (BVAL) standard market scale with non-callable yields up to year 10 and callable yields thereafter. Source: Bloomberg 25 25
City of
Santa Clara
The Center of What's Possible
POTENTIAL BOND MEASURE
26 26
13 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
How Would the Proposed Bond be Funded?
A $598 million bond scenario would:
• Levy an estimated $29 per $100,000 of assessed property value (not market value) annually
• Tax bill for the largest 20 commercial property owners in Santa Clara would increase by an average of $290,000 per year
• Tax bill for a typical homeowner would increase by an average of $195 per year
27 27
City of
Santa Clara
The Center of What's Possible
How Would the Proposed Bond be Funded?
A $298 million bond scenario would:
• Levy an estimated $16 per $100,000 of assessed property value (not market value) annually
• Tax bill for the largest 20 commercial property owners in Santa Clara would increase by an average of $160,000 per year
• Tax bill for a typical homeowner would increase by an average of $110 per year
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7/9/2024 Item 5
City of
-PRA
Santa Clara
The Center of What's Possible
TRANSPARENCY AND
ACCOUNTABILITY
29 29
City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan
The proposed bond measure would include a stringent Transparency and Accountability Plan including the following eleven measures:
1. Council approval of an Expenditure Plan including project category areas and related spending amounts, concurrent with placing a bond on the ballot.
2. Process for making substantive changes to Expenditure Plan would require:
• Staff recommendation;
• Community Oversight Committee review and input; and
• A unanimous approval from the City Council.
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7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan Cont.
3. A Community Oversight Committee will be formed to ensure compliance with bond measure requirements. The Committee will consist of nine members selected by a lottery process made up of:
• Seven residents;
Business Representative
• One small business representative; and Criteria:
• One large business representative. • Accounting, budget, Role of the Committee: finance, and/or auditing
(a) Ensure project implementation is consistent with experience bond requirements and Expenditure Plan; • Limitations to serving if on (b) Review and report on annual audits; and other governing bodies (c) Review and provide recommendations to Council • Will be provided training on proposed amendment to the Expenditure Plan. 31
31 City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan Cont.
4. Bond expenditures subject to independent annual
audit with public auditor presentations to Community
Oversight Committee and Council Audit Committee.
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7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan Cont.
5. Strict prohibition on the use of any bond proceeds for:
• Levi's Stadium improvements;
• Any projects for the sole benefit of Levi's Stadium;
• Any improvements within a 0.5 miles of Levi's Stadium, except improvements in existing residential neighborhoods or business districts designed to be of substantial direct benefit to those areas and not Levi's Stadium; and
• The direct or indirect benefit of any professional sports team. *Additional legally prohibited activities include any labor costs unrelated to infrastructure improvements, for example, public safety expenses for Levi's Stadium. 33 33 City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan Cont.
6. Funds could only be used for public infrastructure
projects in the City of Santa Clara.
7. All bond proceeds are to be deposited into a separate accounts) and tracked on a project-by-project basis to
facilitate project oversight and legal compliance audits. 34฿
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7/9/2024 Item 5
City of
Santa Clara
The centerowhits Possible
Transparency and Accountability Plan Cont.
8. No money could be used for employee salaries or benefits, with the exception of normal and customary personnel
charges for project management and delivery services.
Project administrative costs shall not exceed 5% of the proceeds from sale of the bonds.
9. Annual public presentation on the Expenditure Plan and Project Status Report to the Community Oversight
Committee and City Council presented by the City
Manager, or their designee. 35
35 City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan Cont.
10. For projects requiring mail notice, increase the requirement for mail notifications to all properties surrounding bond funded projects from 500 feet to 1,000 feet.
11. Communications on bond funded projects:
• City webpage conveying status of all bond funded projects; and Public signage surrounding projects funded by bond proceeds. 36 36
18 7/9/2024 Item 5
PAP
santa Clar
The Center of What's Possible
PROPOSED EXPENDITURE
PLAN
37 City of
Santa Clara
The Center of What's Possible
Expenditure Plan Development
• Development of the Expenditure Plan was informed by
voter polling, the supplemental community priorities
survey, and the City's capital unfunded projects list
• Expenditure Plans include potential project budgets for both $598M and $298M bond scenarios
38 19
7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan - $598 Bond Measure
Proposed Dollar
Category Amount Proposed Project Areas
Street Repairs and 125,000,000 - Pavement Maintenance and Rehabilitation Transportation - Safe Routes to School
- Pedestrian, Bicycle, and Driver Safety Improvements
- ADA Improvements
- Sidewalk, Curb and Gutter Improvements
- Median Island Improvements
Fire Stations and Public 175,000,000 - Fire Station Replacements and Renovations Safety - Police Training and Emergency Operations Center/ Disaster Response
- Fire Training Tower Renovation
- Stationary Emergency Generators
Parks and Community 150,000,000 - Playground Rehabilitations Facilities - Park Renovations
- Senior Center/Community Center Renovations
- Aquatic Facilities Renovations
- Library Improvements 39
39 City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan - $598 Bond Measure
Cont. Category Proposed Project Areas
Stormdrain and Flood
Protection
Olher Critical City
Infrastructure
Bond Issuance Cost 3,000,000
Total $598,000,000
40 20
7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Expenditure Plan Category Area
Street Repairs and Transportation
Under the category of Street Repairs and Transportation, assuming a potential $598M bond scenario, the Expenditure Plan would allocate $125M to the following proposed project areas:
• Pavement Maintenance and Rehabilitation
• Safe Routes to School
• Pedestrian, Bicycle, and Driver Safety Improvements
• ADA Improvements
• Sidewalk, Curb and Gutter Improvements
• Median Island Improvements 41
41 City of
-PAD
Santa Clara
The Center of What's Possible
Safe Street Improvements
• Pavement maintenance/rehabilitation
work on existing paved streets
• Maintain Pavement Condition Index
(PCI) of 75
• Slurry seal, overlay, grind and replace
• $8.7M Annual Budget (Measure B, SB1,
Gas Tax)
• $2.2 M Annually Unfunded plus growing
backlog
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7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Safe Street Improvements
• Sidewalk/curb ramp repairs
• Current Budget $700k
• Grind or temp. repair
• Minimum four-year backlog
for permanent repairs
• Estimate $3.9 M unfunded
• Uncontrolled Crosswalks
• Approx. 200 locations
• Estimate $20-$30 M unfunded
43 43
City of
Santa Clara
The Center of What's Possible
Expenditure Plan Category Area
Stormdrain and Flood Protection
Under the category of Stormdrain and Flood Protection,
assuming a potential $598M bond scenario, the Expenditure Plan would allocate $100M to the following proposed project areas:
• Stormdrain System Improvements
• Stormwater Retention Basin Remediation
• Green Stormwater Infrastructure Design/Construction
• Pump Stations Rehabilitations
44 Item 15
7/9/2024
City of
Santa Clara
The Center of What's Possible
Stormdrain System
CITY OF SANTA CLARA, CALIFORNIA
STORM WATER INFRASTRUCTURE MAP
• Conveys storm water from streets, to curb
inlets, to creeks, and out to the bay.
• Approximately 200 miles of pipe
• 22 Pump Stations
• 8,400 manholes, catch basins, and outfalls
45 City of
Santa Clara
The Center of What's Possible
Flood Protection
• Rebuild Deteriorated Stormwater Infrastructure
• Storm Drain Master Plan Recommendations:
• Replace stormwater pumps & generators
• Improve wet well structures & buildings
• Increase pipe sizes to eliminate ponding & flooding
• Unfunded needs $290M (2018 dollars)
• High Priority Projects $60M
• Stormwater Retention Basin Remediation
• Lafayette St. underpass at Subway Pump Station
• Bowers Ave Underpass SDPS Rehabilitation
46 46
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City of
Santa Clara
The Center of What's Possible
Expenditure Plan Category Area
Fire Stations and Public Safety
Under the category of Fire Stations and Public Safety,
assuming a $598M bond scenario, the Expenditure Plan
would allocate $175M to the following proposed project areas:
• Fire Station Replacements and Renovations
• Police Training and Emergency Operations Center/Disaster Response • Fire Training Tower Renovation
• Stationary Emergency Generators
47 47
City of
Santa Clara
The Center of What's Possible
Fire Stations and Public Safety
• Several stations are more than 50 years old and
in need of replacement or renovation
• Many stations need seismic upgrades and other
enhancements to ensure emergency response.
• Some of Santa Clara's older fire stations:
Fire Station 5 - Built in 1962
Fire Station 1 - Built in 1965
• Fire Station 7 - Built in 1972
Fire Station 9 - Built in 1970
48 24
Item 5
City of
Santa Clara
The Center of What's Possible
Fire Stations and Public Safety Examples
• Upgrade 911 communications,
fire/emergency response facilities,
backup emergency generators for
power outages and emergency
preparedness to improve disaster
response
• Police Training and Emergency
Operations Center Facility
49 49
City of
Santa Clara
The Center of What's Possible
Expenditure Plan Category Area
Parks and Community Facilities
• Assuming a $598M bond scenario, the Expenditure Plan would allocate $150M to the following proposed project areas:
• Playground Rehabilitations
• Park Renovations
• Senior Center/Community Center Renovations
• Aquatic Facilities Renovations
• Library Improvements SUN
50 50
25 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Parks and Community Facilities Examples
• Parks Buildings and Infrastructure in
critical/poor condition
• Imminent failure, needed to correct cited safety hazard, prevent intermittent operation; alleviate conditions that are not currently hazardous but could become hazardous if not
remedied.
• Senior Center/Community Center
renovations
• Aquatics Facility Renovations
• Central Park Library Renovations
51 City of
Santa Clara
The Center of What's Possible
Parks and Community Facilities Examples
• Henry Schmidt Park Playground Rehabilitation
• Warburton Park Playground Rehabilitation
• Bowers Park Roof/Building Replacement
• Tennis & Pickleball Courts
52 52
26 Item 5
7/9/2024
City of
Santa Clara
The Center of What's Possible
Expenditure Plan Category Area -
Other Critical Infrastructure
Under the category of Other Critical Infrastructure, assuming a $598M bond scenario, the Expenditure Plan would allocate $45M to the following proposed project areas:
• ADA Transition Plan Implementation (Public Buildings) • Historic Building Renovations
• City Hall Improvements
• Public Parking Lot Improvements
• Energy Efficiency Renovations 53
53 City of
Santa Clara
The Center of What's Possible
ADA Transition Plan (PROW)
Category High* Medium* Low* Total*
1 - Curb Ramps $17,090,000 $55,280,000 $34,120,000 $106,490,000 2 - Pedestrian Routes $99,710,000 $264,880,000 $216,690,000 $581,280,000 3 - Crosswalks $1,810,000 $720,000 0 $2,530,000
4 - Rail Crossings $150,000 0 0 $150,000
5 - Pedestrian Signals $46,860,000 $7,820,000 0 $54,680,000 Total $165,620,000 $328,700,000 $250,810,000 $745,130,000 * In 2024 dollars
54 54
27 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
ADA Transition Plan (Facilities)
Category Estimated cost*
Buildings $6,420,000
Parks $6,950,000
Total $13,370,000
* In 2024 dollars
55 55
City of
Santa Clara
The Center of What's Possible
Implementing Ordinance
56 56
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City of
Santa Clara
The Center of What's Possible
Implementing Ordinance
• Ordinance includes the object and purpose of bonds,
establishes the maximum amount of the bonds, and total
costs of improvements
• Section 13 (a) and (b) provide the State and Local
Transparency and Accountability Requirements
• Technical changes to the ordinance are proposed to
assure alignment of the City's local requirements with the State Accountability Requirements 57
57 City of
Santa Clara
The Center of What's Possible
Changes to Proposed Ordinance to
Assure Consistency with ACA1
• Section 13(a). Update the last paragraph to read as
follows:
If approved by the California voters, the any transparency or accountability provisions of ACA1 not already expressly provided herein are hereby incorporated by reference in this Ordinance. The City Council hereby declares its intent that this Ordinance and the accountability measures contained herein shall comply with ACAI and any and all other statutory or other requirements determined to be required for compliance with ACA1.
To the extent any provision of this Ordinance is determined to be inconsistent with the terms of ACA1, or any other applicable state law, the City is authorized and directed to make any necessary conforming changes. 58 58 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Changes to Proposed Ordinance to
Assure Consistency with ACA1 (cont'd)
• Section 13(b)(iv). Update the first and last sentences to read as follows:
1. The Bond Compliance COC shall consist of 9 members selected by a lottery process and appointed by the City Council.
2. (III) review and provided recommendations to the City Council on any proposed amendment to the Expenditure Plan, and (IV) to inform the public concerning the expenditure of Bond proceeds. 59 59
City of
Santa Clara
The Center of What's Possible
Changes to Proposed Ordinance to
Assure Consistency with ACA1 (cont'd)
• Section 13(b). Update the provision to add the following concluding sentence:
These Local Accountability Requirements are intended to supplement and not replace ACAl or any other applicable state law. To the extent of any duplication or inconsistency, the requirements) requiring the greater degree of
transparency or accountability shall apply.
60 60
30 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
CHARTER AMENDMENT
MODERNIZING CONTRACTING
PROCESS FOR PUBLIC WORKS
PROJECTS
61 61
City of
Santa Clara
The Center of What's Possible
Modernizing Contracting Process for Public
Works Projects
• Proposed Charter amendment to
modernize the contracting process
for Public Works projects,
addressing design-build
procurement and required formal
bidding contract thresholds
STRET DEFT
62 62
31 7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Proposed Charter Amendment -
Design-Build
• This amendment would allow the City to integrate both the design and construction (design-build) services into one contract for Public Works projects
• Streamlines the procurement and construction process saving time and costs • Supports delivering projects on faster schedules and can reduce costs • Would facilitate projects such as substations, power plants, BESS 63 63
City of
Santa Clara
The Center of What's Possible
Proposed Charter Amendment -
Public Works Contract Formal
Bidding Thresholds
• Currently, all public works projects go to the City Council for approval • This Charter amendment would align us with general best practices in many other Cities, increasing the amount requiring formal bidding of Public Works contracts from $1,000 to $250,000
• The $1,000 limit was originally set in 1951 and has not been increased in over 70 years
• Facilitate smaller projects and reduce significant work and accelerate schedules when using City forces to complete work
64 64
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City of
Santa Clara
The Center of What's Possible
Council and City Manager Authority
• Amendment differentiates between major projects (above $500K) and minor projects (at or below $500k)
• City Manager Approval for minor projects will accelerate implementation
• Voter polling showed a willingness to amending City Charter to improve and streamline construction
65 65
City of
Santa Clara
The Center of What's Possible
Proposed Charter Amendment -
Public Works Contract Formal Bidding Thresholds
• Example council approved projects below $500k:
• Annual ADA Curb Ramp FY2019-20 $214,630
• Mission Branch Library Gazebo $195,000
• Street Corporation Yard Electric Gate $217,350
• Street improvements such as enhanced crosswalks
• Small facilities projects to City buildings
66 66
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City of
Santa Clara
The Center of What's Possible
Bidding and Contracting Thresholds Benchmarking
City Manager
Contract Alternate Contracting
City Authority Formal Bidding Informal Bidding Authority Authority Contracts less
General Law Cities CA Public Contract Code Contracts above $200,000 than $200,000 NA NA General Law City, Ordinance Code Contracts less Contracts less Milpitas Chapter 3.20 Contracts above $200,000 than $200,000 than $100,000 NA harter Section 1107, Ordinanc Director of Contracting
ode Chapter 2.200, and Counc Contracts less $60,000 - Authority - Contracts up Mountain View Policy A-10 Contracts above $150,028 than $150,028 $250,000 to $60,000 Contracts less Contracts less Procurement Officer -
Palo Alto Ordinance Code Chapter 2.30 Contracts over $85,000 than $85,000 than $250,000 Contracts up to $85,000 Director of Public Works
Charter Section 1217 and Ordinance Contracts less Contracts up to San Jose Code Chapter 27.04 Contracts above $740,000 than $740,000 NA $1,210,000 harter Section 1309, Ordinanc Contracts less Contracts less Sunnyvale ode Chapter 2.0 Contracts above $250,000 than $250,000 than $250,000 NA 67 67
City of
Santa Clara
The Center of What's Possible
NEXT STEPS AND STAFF
RECOMMENDATION
68 34
7/9/2024 Item 5
City of
Santa Clara
The Center of What's Possible
Next Steps
• Council Questions
• Council Deliberations
General Obligation Bond
• What Amount?
• Amendments to Proposed Transparency & Accountability Plan? Charter Amendments
• Design-Build?
• Public Works Contract Formal Bidding Thresholds?
• Council Action
If a ballot measure(s) is supported tonight, staff to return to Council on July 16 for consideration and potential approval of the Resolution Placing the Measure on the Ballot
69 City of
Santa Clara
The Center of What's Possible
Staff Recommendation
Should the City Council decide to proceed with ballot measures....
1. Adopt the Resolution of Necessity determining necessity to issue bonds.
2. Waive first reading and approve the introduction of an Ordinance ordering the submission of the measure incurring bonded indebtedness for the purpose of the acquisition, construction, and improvement of certain municipal improvement projects to City voters.
3. Provide direction on a potential Charter Amendment to update the Public Works Section to allow for Design-Build Projects.
70 35
7/9/2024 Item 5
Questions and Answers
City of
Santa Clara
71 City Council Meeting
Item #5
A. Discussion and Potential Actions Related
0000000 to Proposed November 2024 Ballot
Measure Authorizing the Issuance of
General Obligation Bond Debt to Fund
Public Infrastructure
B. Discussion and Council Direction on a
Proposed Charter Amendment Regarding
1852 Public Works Procurement [Charter
THE MISSION CIT aaaaaaa Section 1310] to Update the City's Public Works Bidding and Contracting Authority,
Allow for Design-Build Projects and
Implement Other Technical Changes
July 9, 2024 72
72 36
Arguments For the CITY of SANTA CLARA Bond Measures
To be Submitted to the Voters at the Municipal Bond Election October 27, 1959
PROPOSITION A from the Overpass to Bayshore Freeway; El Camino from PROPOSITION G PROPOSITION J Parks and Recreation Facilities Scott Lane to Lawrence Road; Stevens Creek Blvd. from Law- Police Administration Building Water Enterprise rence Road to Winchester Road; and some replacement work. $1,940,000 Total Cost $105,000 Total Cost $1,580,000 Total Cost The City's Police Adminstration Building is nearing Water is vital to the very existence of our City, and its This program has been endorsed by the Parks and Re- PROPOSITION D completion from a structural standpoint. However, additional residents. At the present time, Santa Clara lacks adequate creation Commission as the first overall development Storm Drain Improvements recreational areas in Santa Clara. Proper recreational facilities funds for necessary facilities can be acquired and completed storage facilities, pumping plants, transmission lines, wells $1,350,000 Total Cost for maintaining the police vehicles, inclusion of storage and other facilities. The $1,580,000 bond issue will provide constitute a vital part of a modern City and must be maintain- ed if we are to continue to attract industry and new residents. New and additional storm drains will be installed wher- facilities, a garage, paving of parking areas, landscaping and funds for the installation of these necessary improvements, furniture and equipment for the building which are lacking. without increasing our taxes or water rates.
The Council plans to develop first those parks which ever needed in the City so that all portions of the City will be have already been acquired such as Maywood, Killarney, The proposed bond issue is necessary to supply these facilities. The water revenue bonds will be entirely self-supporting. protected from flood waters. The rapid residential growth Bowers, Homeridge, Westwood Oaks, Mary Gomez and War- of the City has, in effect, created artifical water sheds PROPOSITION H PROPOSITION K burton; and later to purchase land for the development of Corporation Yard Improvements Electric Enterprise which impound waters which previously percolated into the additional parks as the future may require. ground but which now must be carried off by storm drains. $305,000 Total Cost $1,500,000 Total Cost The Council plans to include in the proposed program, The City's present Corporation Yard and facilities were Electric power is a necessity in our modern civilization. to the extent of funds available, the following; an additional PROPOSITION E acquired when the City had a population and equipment for The $1,500,000 clectric revenue bonds will provide funds for swimming pool for the area north of the El Camino and Fire Department Improvements a city of less than 10.000 population. We have grown five- the installation of new power stations, transmission lines and tennis courts throughout the City, as well as recreation build- fold and our present facilities are inadequate and inefficient other facilities to put our electric department on a par with ings to provide indoor facilities which do not exist at present. $1,300,000 Total Cost to take care of our present and future needs. The proposed our City's requirements. The bonds must be enlirely self- New fire stations will be built in areas of the City not bond issue will supply the necessary machinery and site to supporting and there will not be any increase in our electric PROPOSITION B now properly protected, and the present headquarters station eliminate present costly duplications and inefficiency in main- rates. Since this is a revenue bond issuc, no taxes can ever Street and Highway Improvements will be remodeled. In addition, it is the present intention of taining our trucks, autos and other City equipment. be levied to pay for it. $5,700,000 Total Cost the Council to purchase as needed, 10 new fire engines, along All of the foregoing propositions will be financed by with accessory equipment to keep our fire department up to general obligation bonds which the City proposes to issue. The aforesaid revenue bond proposals will not increase Because of the City's phenomenal growth within the While the taxing power of the City will be pledged to pay taxes, for under state law the taxing power of the City cannot the necessary standards for a Class 3 fire insurance rating. last ten years, the City's present street system is outmoded. these bonds and the interest thercon, the City has had surveys be pledged or used to pay the bonds or the interest thercon, Traffic signals, street and highway widening, bridges, new Additional improvements will also be made on the fire alarm made of its future income and as 1 result thereof, it is an- but the revenues to be derived from each enterprise are pled- arteries leading into the City are vitally needed to care for its circuits, fire alarm control equipment, pull boxes and the ticipated that no increase in City taxes will be required to pay ged to pay off the respective bonds and interest thereon issued present and future needs, and the bonds will provide these fire radio circuits. said general obligation bonds, but it is anticipated that the therefor. vital necessities. All of these projects are included in the In approving this bond issue, we can probably obtain City's income from sales taxes, gas tax funds, recreational lot lower fire insurance rates, therby enjoying an additional sav- fees, subdivision fees, subvention fees and the like, will be All of the foregoing arguments were bond issue.
ing for the property owners of the City. sufficient to pay the same without any raise in property taxes. submitted by the Citizen's Committee for PROPOSITION C PROPOSITION I City Bonds.
Street Lighting Facilities PROPOSITION F Sewer Enterprise JOSEPH P. KELLY, Chairman $1,000,000 Total Cost Library Department Improvements $5,120,000 Total Cost 966 Hilmar St., Santa Clara Present street lighting facilities are inadequatc. An in- $800,000 Total Cost The City owns a 20% interest in the San Jose-Santa Clara WILLIAM A. WILSON, Vice-Chairman adequate street lighting system is hazardous to life and limb. Our present Library was designed to serve a population Sewage Treatment Plant. San Jose and Santa Clara are obli- 610 Jackson St.,Santa Clara Proper and adequate street lighting attracts commerce, business of only about 20,000 persons. It now attempts to serve over gated by law to provide adequate treatment of their sewage Poorly lighted streets foster delinquency, 50,000 people and cannot adequately do so. No city can grow in order to discharge the same into San Francisco Bay. The No arguments against any of the fore- and residents.
educationally or culturally without adequate library facilities Water Pollution Board has ordered this secondary treatment going measures were submitted to the crime and oft' times fatal traffic accidents. plant to be completed within three years. Santa Clara's share The proposed program includes, among other projects, which should be readily and easily available to all of our thereof will cost 4 million dollars. This sum must be paid. Office of the City Clerk. street lights on The Alameda from the San Jose City Limits residents. The passage of this proposition is needed to Revenue bonds payable out of sewer revenues will finance said A. S. BELICK to Franklin; Grant from Franklin to Scott Lane; De La Cruz accomplish these purposes. costs without any raise in property taxes. City Clerk
POST MEETING MATERIAL
DELINEATICN OF HÉED POR CAPITAL INPROVELENI BOND ISSUE IN SANTA CLARA The City of Santa Clara, which cane anio existence as a quiet residential comminity of the "typical college Lown" variety, had a destiny to fulfill which was beyond the highest dreams of its founding fathers.
Nothing coald long stay the hend ol progress here which was accelerated by a year round salubrious climate . the accescibility to railroads and major highways, a preferential tax rate, and the availab: lity of a large and intelligent labor pool in the immediate vicinity.
These factors resulted in such an explosive population growth that the City Fathers were confronted with cone startling fipures - over the last ten years:
& of Increase
Population,. 400%
....
Number of occupied dwelling units : 211%
School Enrollment (elementaru) .... 290%
School Enrollment (high school) 270%
....
Number of Electrin veters (residential) 188%
Number of Electric Meters (comercial & industrial) 400% ....
Number of Gas beters (cosidentini . . 250%8
Nunber ol Gas Meters (commercial & induetrial). 128%
•
Faced with on earnest desire to maintein the property tax rates at current levels, the City Council made every effort to supply the expanding needs of this rapidly ezowing community out of current revenue.
Obviously, it was a losing battle.
demanding, additional crossing signals, approved street lighting and a widening program, adequate parks and recreation and other amenities of life to which they rightfully feel they are entitled. Obviously, if Santa Clara fails to meet the need we will lose our position as a desirable place in which to live and work.
Industry ... which is very consciertious of the social and economic facilities afforded by a commity .. will center itself elsewhere. Enlightened industrial leaders are now looking carefully into the social as well as economic values afforded by a comminity. They are alerted to the needs of their employees. Since it is generally agreed that a well balanced community requires a sufficient in. dustrial base to provide an equitable distribution of taxes is clearly apparent that the ned must be met. Now is our time and October 27th is the day.
SANTA CLARA
Today and Tomorrow
The City of Santa Clana
California
A capital improvement program
designed to meet growth demands
without increasing city taxes
THE MISSION CIT
Population Growth
Past Future
Santa Clara
110,000
100,000
00.000
Has Grown 00,000
70,000
60,000
30,000
Today, Santa Clara has a population of just under
40,000
50.000 residents. Ten years ago, Santa Clara had a
30,000
population of just over 10,000 residents. This repre-
20,000
sents a population growth of 40,000 residents, or 400
10,000
per cent in just ten years.
And Is Still Growing!
Santa Clara is still growing. As can be seen on the chart above, all indications point to a population of at least 100,000 in the next ten years, and 125,000 by 1985. This repre- sents a lot of people in a City that is not even properly equipped to handle its present population.
Because of this rapid growth our City has not been able to provide presently needed facili- ties and services. As a matter of fact, the City needs $21,000,000 worth of improvements to cateh up with present day needs and meet those of the immediate future. 1940 1950 1960
The Capital Improvement Program Will Be Paid from These Sources $ 1,300,000
1,200,000
Revenues
1,100,000 Fax
Sales
1,000,000 Revenues
Electric
900,000
800,000
Revenues
Water
700,000
600,000
500,000
Sewer Revenues
400,000
300,000
200,000 Gasoline Tax Revenues
100,000
50,000 Subdividers Contributions
1960 1965 1970 1975 1980 1985 1990
THE REVENUE BONDS
The use of revenue bonds for these three projects is the key to $1,500,000 Electric Revenue Bonds the success of the entire financing program. The surplus reve- Electric power is a necessity in our modern civilization. The nues available from these three projects may be used to pay $1,500,000 electric revenue bonds will provide funds for the a portion of the cost of the improvement projects financed installation of new power transmission lines and other facilities. with general obligation bonds, listed below. The bonds will be entirely self supporting and there will not be any increase in our electric rates. In fact, revenues from the We must vote the revenue bond issues if we are to have these operation of the electric department of the City may be used improvements without taxes. Revenue bonds must be self sup- to help pay the costs of the other improvement projects, both porting. It is illegal to levy a tax to pay any of their costs. immediate and in the future. $5,120,000 Sewer Revenue Bonds
The money from this bond issue will pay Santa Clara's share $1,580,000 Water Revenue Bonds
($4,000,000) of the cost of the new Santa Clara-San Jose sew- Water is vital to the very existence of the City and its residents. age treatment plant and in addition will be used for additional At the present time, Santa Clara lacks adequate storage facili- trunk sewers and a pumping station. ties, pumping plants, transmission lines, wells and other facili- ties... The $1,580,000 revenue hond issue will provide funds Money for the new sewage treatment plant must be available for the installation of these necessary improvements. The water from some source by 1963. Raising the money by this means revenue bonds will be entirely self supporting, without raising is the "painless way." Instead of increased property taxes, our water rates. In fact, the surplus revenues may be used to this method will only cost an additional monthly charge of help pay for the other improvement programs. 90 cents per family, payable on the monthly water bill.
GENERAL OBLIGAT
See Map on Back for Locati
$1,000,000 Street Lighting Bond Issue $1,350,000 Storm Drainage Bond Issue Modern street lighting for many of our main streets will be New storm drains will be installed in areas of the City not now provided with the funds derived from this bond issue. The having them, so that all of the major areas of the City will be free from flood waters at all times. Storm drains proposed in proposed program includes street lights on The Alameda from the project include those to serve the Northside area, the Bel- the San Jose City Limits to Franklin; Washington from the San lomy-De La Cruz area, the Agnew area, and additional trunk Jose City Limits to Franklin; Grant from Franklin to Scott lines where necessury. For a picture of where the storm drains Lane; De La Cruz from the Overpass to Bayshore; El Camino on the reverse side of this page. Money from Scott Lane to Lawrence Station; Stevens Creek Road from will go, see the map Lawrence to Winchester; and some replacement work. Money to pay the costs of this bond issue will come from the subdivi- to pay the costs of this bond issue will come from sales taxes sion fees and sales tax revenues. and surplus revenues from the electric revenue bond issue. $1,940,000 Parks and Recreation Bond Issue
Parks and playgrounds throughout the City are included in this program. The City intends to develop the park sites it already owns first, and to acquire land for future facilities. The City is $305,000 Corporation Yard Bond Issue working with the schools in planning the new facilities, and A corporation yard will permit the City to reduce costs of repair land is being provided by the schools for some of the facilities. and maintenance of City owned equipment by consolidating the A total of 100 acres of playgrounds and playfields will be de- maintenance facilities. The corporation yard will be equipped veloped, along with neighborhood parks, and a new swimming with all of the tools and equipment necessary for the repair of pool. For locations of these projects see the map on the reverse the City streets, sewers, storm drains and other City facilities. side of this page. Money to pay the costs of this bond issue will The costs of this bond issue will be paid from sales taxes. come from recreation fees and sales taxes.
Santa Clara Bond Progr
Committee Chairmen Committee Chairmen
Speakers-CHARLES J. DIRKSEN Newspapers-PAUL SPINDLER Joseph P. Kel Telephone—MRS. MATT TALIA Radio & TV-HERB MICHELSON
Signs & Posters-JAY C. WILLIAMS William A. Wilsor
Publicity—PRESTON ROYER
ION BOND ISSUES
n of Planned Improvements
$5,700,000 Streets, Bridges, Highways $1,300,000 Fire Department Bond Issue and Traffic Signals Bond Issue New fire stations will be built in areas of the City not now prop- erly protected, and the present headquarters station will be Street improvements throughout the City, traffic signals, high- remodeled. In addition, i0 new fire engines will be purchased, ways and the construction of bridges are included in this bond along with other necessary equipment to bring the fire depart- issue. Immediate improvements to be accomplished with the ment up to the necessary standard. Additional work will be money from this bond issue are detailed on the reverse side done on the fire alarm circuits, fire alarm control equipment, of this page. These improvements will complete all of the pull boxes, and the radio fire circuit. Money to pay the costs major street work necessary at this time. Surplus revenues of this bond issue will come from Sales Taxes and Surplus Reve- from other sources will pay for street work required in future nues. The locations of the new fire stations are shown on the The bridges are included in this program because it is map on the reverse side of this page. years.
the least expensive method of financing them. Money to pay the costs of this bond issue will come from gasoline taxes, Sales $800,000 Library Bond Issue taxes and subdivision fees. Construction of a new main library, furnishings, and books for the facility are included in this bond issue. The new main library is proposed at this time because of the need of adequate $105,000 Police Department Bond Issue space to properly administer an effective and economic library system to serve as a headquarters for the proposed buanch Facilities for the proper maintenance of the City's police cars libraries, once they are constructed. The present library is in- will be constructed with the proceeds of this bond issue. Includ- adequate to meet these needs. It is proposed that a bookmobile ed are a garage, parking and storage facilities for the patrol be operated throughout the various areas of the City until the cars. Money to pay the costs of this bond issue will come from branches are constructed. Money to pay the costs of this bond sales taxes and from surplus revenues. issue will come from sales taxes and surplus revenues. m Citizens' Committee
Further Information Committee Chairmen
Chairman Finance-W. J. NICHOLSON
May be Obtained by
Transportation-FRANK SAPENA
Vice-Chairman Telephoning CH 3-7010 Improvement Association-LLOYD EBY *15
Revised 9/23/59
RECOMMENDED BOND PROGRAM
GENERAL OBLIGATION BONDS
Parks & Recreation
Construction Cost $1·899,880
Contingencies 40,920
Bond Issue $2, 940,000
Streets, Highways, Bridges and Traffic Signals
Construction Cost $5,616,500
Contingencies 83,500
Bond Issue $5,700,000
Street Lighting
Construction Cost 987,300
Contingencies 12,700
Bond Issue $1,000,000
Storm Drains
Construction Cost. $1,312,700
Contingencies 37,300
Bond Issue $1,350,000
Fire Department
Construction Cost $1,286,000
Contingencies 14,000
Bond Issue $1,300,000
Library
Construction Cost $ 790,000
Contingencies 10,000
Bond Issue $ 800,000
Corporation Yard
Construction Cost 302,000
Contingencies 3,000
Bond Issue $ 305,000
Police Department
Construction Cost 104,000
Contingencies 1,000
Bond Issue $ 105,000
105,000
Total General Obligation Bond Requirements $12.500,000
RECOMMENDED BOND PROGRAM
REVENUE BONDS
Sanitary Sewers
Construction Cost $5,676,400
Less: Cash from sale of land 1,000,000
Balance of Construction Costs Required $4,676,400
Bond Reserve Fund 400,000
Contingencies 43,600
Bond Issue $5,120,000
Waterworks Facilities
Construction Cost $1,757,600
Legg: Cash on Hand 325,000
Balance of Construction Costs Required $1,432,600
Bond Reserve Fund 125,000
Contingencies 22,400
Bond Issue $1,580,000
Electric Plant Expansion
Construction Cost $1,705,000
Less: Cash on Hand 325,000
Balance of Construction Costs Required $1,380,000
Bond Reserve Fund 100,000
Contingencies 20,000
Bond Issue $1,500,000
Total Revenue Bond Requirements $8,200,000
Bonds. ,954
PROPOSITION F Shall the City of San-
(Library Department ta Clara incur a bond-
Improvements) ed indebtedness in Yes
the principal sum of
$000,000 for the acquisition, construction and
completion of the following municipal improve-
ment, to-wit: Library buildings, including furn-
iture, fixtures, equipment, off-street parking
facilities and paving, landscaping, and all other No
works, properties or structures necessary or
convenient for the libraries for the City of
Santa Clara?
S.C. Becomes 'United City'
As 11 Bond Issues Sweep
The old and the new joined other of the eight issue requiring hands Tuesday in voting a two-thirds margin for triumph a landslide mandate to make Voting Breakdown were running scared.
Santa Clara the big city she's In only one precinct-the 8th at yearning to be. YES NO 1250 Market St.—were any of the
A shocking turnout and a A-Parks & Recreation $1,940,000 6,255 1,139 issues turned down. And even there, stunning margin gave the B-Streets, Highways 5,700,000 6,578 780 only Parks and Library were beat- city's $20.7 million capital C-Street Lighting 1,000,000 6,459 967 en. improvements bond program D-Storm Drains. 1,350,000 6,647 782 * * * unconditional victory. Each E-Fire Department 1,300,000 6,612 817- AS THE DAY wore on, voters of the 11 issues on the ballot F-Library 800,000 6,117 1,326 turned out in greater numbers. An swept into the win column G-Corporation Yard 305,000 6,264 1,162 unofficial count showed only 10 per on totally unexpected mar- H-Police Department 105.000 5,979 1,341 cent had trooped to the polls by 1 gins ranging from 4½-1 on I-Sanitary Sewers 5,120,000 6,675 777 p.m. In the next two hours, another the police issue to 8½-1 on J-Waterworks 1,580,000 6,683 779 10 per cent cast their ballots. The K-Electric Plant 1,500,000 6,501 923 late afternoon and early evening ballot bitz produced another 4,000
IN THE FACE of recent down- Yes column with consistent deter-l VICTORY IN SUCH totality was the-line defeats of bond programs mination, the electorate ensured unexpected. A small turnout was City officials had turnout over 7,000 would bring suc-
in Peninsula cities, the Mission City the city of sufficient funds to meet forecast by most City Hal observ- cess. But they never fully believed returns bordered on fantasy. Never
in Santa Clara history had such a all improvement needs here for theiers. The bond campaign had been this size outpouring would come. great number of voters turned out silent, and Mission From "Old Town" and from the The $20.7 million in bonds will really didn't know what to expect new subdivisions came Tuesdav's for a bond vote. Never had they
carry Santa Cara's capital improve- on election day. electorate to whip a traditional hex approved such a sweeping program.
The 46 percent turnout of 7,647 ment program through the next Success of the anitary sewer, wa- here on city improvement meas was nearly 2,500 greater than the five years, and revenue from these ter and electric programs, all need- turnout for last April's councilman- beefed-up services will yield financ- ing only a majority vote, was ex- ie eleclion here. In cheeking theles for an additional 15 years. pected. But the library and several summed up this way by Council!
Council Promises Tax Cut "We became a united city Tues. day—no longer the old and the new.
The city voted together for the first
A tax cut ... a tight-fisted City LAWMAKERS ALSO ARE QUICK Council. to note they will be tight-fisted with the Briefly, this is what they voter These are the rewards Santa Clara $20.7 million the voters poured into city for:
voters will receive in the coming year coffers. Tuesday. Expansion of the muicipal parl for propelling the city bond issue to a "There'll be no reckless spending system and recreational program landslide victory Tuesday. of this money," agreed Councilmen Widening of present roads. re * * * Maurice Dullea and Robert Simons. naving of existine streets. creatior * * *
of new direct traffic routes.
AS THE YES VOTES STORMED in MOST OF THE LAWMAKERS at the Street lighting xpansion on man™
last night, Santa Clara's leaders were tak- election rally indicated they would move streets.. . Storm drain construc ing a quick look ahead to what the re- quickly on one issue - the $105,000 fion in th north and east section- turns have triggered. voted for completion of the new police of the citv ... New fire stations "There will definitely be a tax re- administration building. Action on get- and fire-fighling equipment... A duction next year," chorused Councilmen ting final work under way is expected to new main librarv... A vard for Austen Warburton and James Viso. The be taken at council session Thursday. citv vehicles and equipment present tax rate of $1.54 is based on The police bond funds are earmarked Furnishings and landscaping for a 14-month year and was due for trim- for furnishings, paving, parking con- rity vehicles and equipment •ming next summer anyway. Thus, the struction and landscaping. The building, Citv narticination in a multi-mi' bond passage could mean an even lower constructed at an initial $330,000 cost, is lion dollar sanitary sewer treat- tax rate than the $1.48 used for the last due to open the first of the year at the ment plant ... Increased storage 12-month fiscal year in 1958-59. latest. snace for water Construction of new electric substations and en-
larvine of the electric department's
central supply station.
Landslide Bond Election Unites S.C.-.
It's Ready To Roll on City Projects
By DICK COX two new 60,000 volt elec. obligation bonds thelafter World War II when Mercury Staff Writer substations, accord- city carry a lower Interest SANTA CLARA-Jubilant ing to Public Works DI. subdividers began bulldoz- than the Council approved ing the first orchards for
city officials here are rector Donald Von Raes. bridge bonds. starting plans for a series feld. One station will be tracts there has been & no.
An Issue of $400,000 ol ticenble division between
of city improvements au. placed at Kifer road and the special bonds were sold thorized by voters Tuesdayi Infayette street and the by the Council Inst week to Town" and "New when they passed twenty other at Bellomy street provide money needed by Town." million dollars in city bonds and Campbell avenue.
the city in a hurry to meet Santa Clara's older
by a 7.1 margin. Its commitments to the
Prioritles on other jobs neighborhoods
Councilmen and others will be recommended to the State of California on the cast the heavier vote. The City Council shortly by the De Li Cruz Overpass. newcomers or the "West. department heads involved. During the election cam- siders" usually voted only • Von Raesfeld predicted paign City Mgr. Loyd Brady one-third to one- and old sections of the city that the $5,700,000 bond Is and other city officials fourth as heavy. The po. sue for streets, highways, promised that the high in. litical snges used to wise. bridges and traffic sienaisiterest special assessment crack that the tract peo- ing congratulatory -tele- Will be high on bone lissue nguis bonds would not be used nie "are still busy plant- The same if the voters ap. ing their lawns but walt
phone calls from numerous
public officials throughout probably sounded the death proved the low interest tll they wake up." knell on further use of bonds. Tuesdny night when the
teal assesseen dece for or the hedy plent wate Santr Clara's citywide spe. Most noticenble feature vote was in the newcomers The first two projects
likcly to go before the bridges and overpasses. The was the united attitude of had voted just ns heavy and City Council for approval new bond issue by being the voters. Just as solidly for the bonds of specifientions will be voter aboroved and generat the days shortly as the older residents.
NewsBank
@tober 30 1959 San bie Ol I Sanfor Catferria | Page
Santa Clarans Display
Municipal Maturity
Santa Clara city rolers did them-
seires proud Wednesday.
By orerwhelming majorities, they
passed 520 million Forth of public 1m.
provement bonds, funds which are
sorely needed to provide Santa Clara
with the lools to bulld her future.
every i propo be proud of cara daes
loday. They were confronted with mu.
nicipal growth problems that now
plague every community in the coun
iy, and they, the people of Santa Clata,
had the foresight and the scal cour.
age lo bond themselvs lo overcome
these problems.
: That the 11 bond Issues passed by
majoritles of seren-to-one in some
caves is indicatire of the cohesireness
of purpose among Santa Clarans The
fact that an estimated 45 per cent of
Chose eligible to role cast ballots is an
Indication of considerable malurity on
the part of Santa Clara's citzens. All
to0 often bond clection tumouts are
distressingly light, and a tiny fraction
or a community's total roters actually
makes the decisions for the majority.
*, Banka Clara has every right to be
proud that her record of majority rule
comes close to achleving the demo-
challe Ideal.
ICTATIONAGICSIYS
San jose Mercury News (online! 30 Oct 19599 https://nfoweb-newsbank-com.slezpt01.silibrarv.org/apps/news/document.v.ev p=AMNEWS&docref-image/243A112615686E3010F0%40EANXN8-181036ASE6758286%402436872:180BF3AD2A2803D54103-130BF3AD2A280305%40- herds New dankand te ascortent providess
News Bank
Santose Mercur Tess Cull hed as in one Mercury Movere 10, 1939 • 0a9 3 November 10, 1959 | SanJose Mercury Nevs (cubished as Sanjore Mercury! | Sanfose, Callemia | Page 3 848
)го-
the Brady Back,
,rk.
roj. Still Amazed
Al Election
the
tor SANTA CLARA - Cis
ard 1gr. Loyd Brady was A
Ive. back at work Monday all-
the er a two-week vacation
1- "still amazed" at the 8.l
victory of the S20 million
rd bond issue Oct. 28.
lon Brady said the almost
I'd unheard of margin of ap-
uld proval caused minor
Ith• sensation ad the Interna•
up>- tonal City Managers
Ing son. convention he al- CC
nic fended in Se Louds, Me.
CON CI
On election ulcht. Mng•
or Josepha • Rebeiro lele.
by phoned clection results to
285 Brady.
no
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July 9, 2024 City Council Meeting
Item No. 5: Updated Attachment 2 - Proposed Ordinance
ORDINANCE NO. _
AN ORDINANCE OF THE CITY OF SANTA CLARA,
CALIFORNIA, ORDERING THE SUBMISSION OF A MEASURE
INCURRING BONDED INDEBTEDNESS TO THE QUALIFIED
VOTERS OF THE CITY OF SANTA CLARA AT THE GENERAL
MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 5, 2024,
FOR THE PURPOSE OF FINANCING THE COST OF THE
ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF
CERTAIN MUNICIPAL IMPROVEMENT PROJECTS
CONSTITUTING PUBLIC INFRASTRUCTURE OF THE CITY,
SUBJECT TO ACCOUNTABILITY MEASURES AND
COMPLIANCE WITH AN ADOPTED EXPENDITURE PLAN
WHEREAS, the City of Santa Clara (the "City") is a municipal corporation and charter city duly organized and existing under the Constitution and laws of the State of California; and WHEREAS, the City desires to undertake certain public infrastructure improvements for the City consisting of streets and transportation improvements, improvements to public safety facilities, improvements to parks and community facilities, storm drain and flood collection improvements, and improvements to other City facilities, as more particularly described below (collectively, the "Improvements"); and
WHEREAS, the City is authorized to call an election for the purpose of incurring bonded indebtedness and to authorize the issuance of bonds to finance the Improvements, which constitute public infrastructure of the City, pursuant to certain provisions of the California Constitution, including Article XIIIA, the California Government Code, including Article 1 of Chapter 4 of Division 4 of Title 4 (commencing with Section 43600) and Article 4.5 of Chapter 3 of Part 1 of Division 2 of Title 5 (commencing with Section 53506) (collectively, the "Bond Law"); and WHEREAS, the City intends to issue its general obligation bonds (the "Bonds") under and pursuant to the Bond Law to finance the cost of the acquisition and construction of the Improvements; and WHEREAS, under existing law, approval of the Bonds requires 2/3rds of the voters in the City voting on the measure to vote in favor of the measure; and WHEREAS, Assembly Constitutional Amendment No. 1 ("ACA1") has qualified for the November 5, 2024 Statewide ballot and would, among other things, change existing law to authorize a city, county, city and county, or special district to levy an ad valorem tax to service bonded indebtedness incurred to fund the construction, reconstruction, rehabilitation, or replacement of public infrastructure if the measure proposing that tax is approved by 55% of the voters of the city, county, city and county, or special district, as applicable, and the measure includes specified accountability requirements; and
WHEREAS, the foregoing constitutional amendments effectuated by ACAl, if approved at the November 5, 2024 Statewide ballot, would apply to any measure authorizing general obligation bonds of a city that is submitted at the same election as the Voter Approval Ballot Measure; and WHEREAS, the measure to approve the Bonds is intended to and will comply with all the provisions of ACA1, including all of its accountability requirements, so that, if ACA1 is approved on November 5, 2024, approval of the Bonds shall require that 55% (not 2/3rds) of the voters in the City voting on the measure vote in favor of the measure; and
WHEREAS, if the ballot measure authorizing issuance of the Bonds is approved by the requisite number of affirmative votes, the City will be authorized to issue the Bonds.
NOW, THEREFORE, BE IT FURTHER ORDAINEDBY THE CITY OF SANTA CLARA AS FOLLOWS:
1. Recitals Correct. The foregoing recitals are true and correct.
2. Purpose and Intent. Pursuant to the authority provided by the California Government Code and California Elections Code, the purpose and intent of this Ordinance is to authorize and direct the submittal to the qualified voters of the City at the general municipal election to be held on November 5, 2024, of a measure authorizing the City to issue general obligation bonds (the "Bonds") for the purpose of financing the Improvements on the terms set forth below.
Findings. The City Council hereby makes the following findings with respect to the proposed Ordinance/Calling Bond Election Page
measure for the Bonds:
(1) On July 9, 2024, the City Council adopted, by a two-thirds vote of all its members, a resolution entitled "A Resolution of the City Council of the City of Santa Clara, California, Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Improvement of Municipal Improvement Projects Constituting Public Infrastructure of the City, and Their Financing Through the Issuance of General Obligation Bonds," pursuant to which the City Council has found and determined that the public interest and necessity demand the issuance of general obligation bonds to finance the Improvements, which are municipal improvement projects constituting public infrastructure of the City. (ii) In order to provide for the issuance by the City of general obligation bonds to provide financing for the Improvements, it is necessary for the City Council to adopt an ordinance ordering the submission of the measure of incurring bonded indebtedness for such purpose to the qualified voters of the City at a municipal election.
(iii) The City Council desires to submit said ballot measure to the qualified voters of the City at the regular election to be held in the City on November 5, 2024, and to consolidate the bond election with other elections held within the City on that date, by a resolution adopted after the adoption of this Ordinance pursuant to California Elections Code Section 10403 (the "Resolution Calling Election").
Call for Election. The City Council hereby orders that there be submitted to the qualified voters of the City, pursuant to the Resolution Calling Election, a measure on incurring bonded indebtedness for the purposes set forth in this Ordinance, at the regular election to be held on November 5, 2024.
Ballot Measure. The City Council hereby submits to the qualified voters of the City, at the regular election to be held on November 5, 2024, a measure on issuing the Bonds. The statement of the measure shall be in substantially the form set forth in the resolution of the City placing the measure on the ballot.
6. Object and Purpose of Bonds. The object and purpose of the Bonds is to finance some or all of Ordinance/Calling Bond Election Page
the costs of the Improvements. The Improvements are more particularly described in that certain Expenditure Plan ("Expenditure Plan") to be attached as Exhibit A to this Ordinance, which shall be approved by the City Council by separate Resolution and presented to the voters as part of the measure for the Bonds.
The authorized Improvements will include all work, facilities and expenditures necessary and incidental to the Improvements described in the Expenditure Plan. Examples of such work, facilities, and expenditures include, but are not limited to: costs of design, engineering, architect and other professional services, inspections, site preparation, utilities, landscaping, construction management and other planning and permitting, legal, accounting and similar costs; a customary construction contingency; demolition and disposal of existing structures; rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction; addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes and other applicable law, including the Americans with Disabilities Act; costs of the bond election; bond issuance costs; project administration during the duration of such projects, including reimbursement of City staff time; and financing and interest costs on the Bonds.
The final costs, locations, designs, layouts and other components of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed. Therefore, the City Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.
7. Estimated Cost of Improvements. The estimated cost of the Improvements is $[598,000,000].
The estimated cost includes legal or other fees, the costs of printing the Bonds, and other costs and expenses incidental to or connected with the authorization, issuance and sale of the Bonds. To the extent the Improvements financed are revenue-producing public works, the cost of the Improvements may also include bond interest estimated to accrue during the construction period and for a period of not to exceed Ordinance/Calling Bond Election Page
12 months after completion of construction.
Principal Amount of Bonds. The aggregate principal of the Bonds shall not exceed $[598,000,000.00].
9. Maximum Interest Rate. The maximum rate of interest to be paid on the Bonds shall be the statutory maximum of 12% per annum. 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 actual interest rates of each series of the Bonds will be determined at the time of each respective Bond sale.
10. Issuance and Sale of Bonds. The City proposes to issue and sell the Bonds pursuant to Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 of the California Government Code, or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, in one or more series, in the maximum amount and for the objects and purposes set forth above if the requisite number of qualified voters voting on the measure vote in favor thereof. The Bonds will be general obligations of the City payable solely from and secured by ad valorem taxes levied and collected in the manner prescribed by the laws of the State of California, and not from the general fund or other funds of the City. The revenue generated from the ad valorem tax levied and collected will be used for the payment of debt service on the Bonds. All of the Bonds shall be equally and ratably secured, without priority, by the taxing power of the City.
11. Manner of Conducting Election. The election on the Bonds held on November 5, 2024 shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvassed, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the Resolution Calling Election and the provisions of California law regulating the election with which it is consolidated.
12. Procedure for Voting on Measure. Ballots for the election shall be provided in the form and in the number provided by law. Voters shall be provided an opportunity to vote for or against the measure Ordinance/Calling Bond Election Page
on the ballot, in accordance with procedures to be adopted by the authorized officers of the County of Santa Clara (the "County" charged with conducting the election.
13. Transparency and Accountability Requirements.
In order to comply with ACAl and Sections 53410 and 53411 of the California Government Code, the City Council hereby adopts the following accountability requirements relating to the Bonds (the "State Accountability Requirements"):
(1) The proceeds from the sale of the Bonds shall be used only for the purposes specified in this Ordinance, and not for any other purpose, including City employee salaries (other than for reimbursement of staff costs incurred in providing normal and customary project management and delivery services for the Improvements ("Project Related Administrative Costs"), and other operating expenses. The administrative cost of the City for the Improvements, including any and all Project Related Administrative Costs, shall not exceed 5% of the proceeds from the sale of the Bonds.
(ii) The proceeds from the sale of the Bonds shall only be spent on projects and programs that serve the jurisdiction of the City.
(ili) This Ordinance shall be the ordinance through which projects will be funded and the City hereby certifies that it has evaluated alternative funding sources. (iv) The City shall conduct an annual, independent performance audit to ensure that the Bond funds are expended pursuant to this Ordinance.
(v) The City shall conduct an annual, independent financial audit of the proceeds from the sale of the Bonds until all of those proceeds have been expended for the public infrastructure authorized by this Ordinance.
(VI) The City shall post the audits required by clauses (iv) and (v) in a manner that is easily accessible to the public.
(vii) The City shall submit the audits required by clauses (iv) and (v) to the California State Ordinance/Calling Bond Election Page
Auditor for review.
(viii) The City shall appoint a citizens' oversight committee (the "Bond Compliance COC") to ensure that Bond proceeds are expended only for the purposes described in the measure approved by the voters. Members appointed to the Bond Compliance COC shall receive educational training about bonds and fiscal oversight.
(ix) Any entity owned or controlled by a member of the City Council shall be prohibited from bidding on any work funded by the measure.
(x) A separate account shall be created and held by the City, into which the proceeds of the Bonds shall be deposited and applied solely for the Improvements. Expenditures shall be tracked on a project by project basis to facilitate project oversight and compliance audits. (xi) The City's Director of Finance shall file a report with the City Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements.
If approved by California voters, the any transparency or accountability provisions of ACA1 not already expressly provided herein are hereby incorporated by reference in this Ordinance. The City Council hereby declares its intent that this Ordinance and the accountability measures contained herein shall comply with ACA1 and any and all other statutory or other requirements determined to be required for compliance with ACA1. To the extent any provision of this Ordinance is determined to be inconsistent with the terms of ACA1, or any other applicable state law, the City is authorized and directed to make any necessary conforming changes.
(b) In addition to the State Accountability Requirements, the City Council hereby adopts the following local accountability and transparency requirements relating to the Bonds and the use of Bond proceeds ("Local Accountability Requirements"):
(i) Expenditure Plan Requirements. Bond proceeds shall only be used on Improvements in strict accordance with the terms of the adopted Expenditure Plan, as it may be amended from Ordinance/Calling Bond Election Page
time to time subject to the requirements of Section 13(b)(ii), below. (II) Required Process for Amending Expenditure Plan. City staff shall review, analyze and make a recommendation on any proposed substantive amendment to the Expenditure Plan ("Amendment"). Prior to City Council consideration, any such proposed Amendment shall first be submitted to the Bond Compliance COC for their review and recommendation. Any proposed Amendment shall require the unanimous approval of the City Council.. (iii) Prohibited Uses. In no event shall Bond proceeds may be used for (I) improvements to Levi's Stadium; (II) any Improvements projects for the sole benefit of Levi's Stadium; (III) Improvements projects within .05 miles of Levi's Stadium, except Improvements in existing residential neighborhoods or business districts designed to be of substantial direct benefit to those areas and not Levi's Stadium; or (IV) the direct or indirect benefit of any professional sports team.
(iv) Additional Terms for the Bond Compliance COC. The Bond Compliance COC shall consist of 9 members selected by a lottery process and appointed by Council. The committee shall include seven residents, one large business representative, and one small business representative (neither of which must be residents, but both must be either an owner or employee of a business headquartered within the City). Additionally, no business representative shall work for, have previously worked for, or be employed by a firm that provides services to any professional sports teams within the City. The role of the Bond Compliance Committee shall be to (I) ensure that project implementation is consistent with all Bond measure requirements, including the terms of the Expenditure Plan; (II) review and report on annual audits, and (III) review and provided recommendations to the City Council on any proposed amendment to the Expenditure Plan, and (IV) to inform the public concerning the expenditure of Bond proceeds. (v) Communications Program. There shall be a Bond measure communications program to enhance accountability and transparency including, at a minimum, the following elements: (I) Ordinance/Calling Bond Election Page
requirement for an annual public presentation on the Expenditure Plan and the status of the implementation of Improvements projects to the Bond Compliance COC and the City Council presented by the City Manager; (II) requirements for an annual presentation of the independent annual audits) required in Section 13(b) above to the COC and the Council Audit Committee; (III) status of all Bond funded projects to be communicated on the City's webpage; and (IV) notice of all proposed Improvements projects to residents within 1,000 feet of such projects), with public signage providing further information at the project site(s).
These Local Accountability Requirements are intended to supplement and not replace ACA1 or any other applicable state law. To the extent of any duplication or inconsistency, the requirements) requiring the greater degree of transparency or accountability shall apply.
14. Identification of Tax. The tax imposed by this measure is an ad valorem tax levied upon taxable property in the City, and will be used to pay the principal and interest on the Bonds.
15. Official Actions. The Mayor, the City Manager, the Director of Finance, the City Clerk, and any of their designees, are hereby authorized to execute any documents and to perform all acts necessary to place the Bond measure on the ballot.
16. Interpretation. The provisions of this Ordinance, being necessary for the health, welfare, and safety of the City and its residents, is to be liberally interpreted to carry out its purposes. No error, irregularity or informality, and no neglect or omission of any officer, in any proceeding taken related to the submission of the measure incurring bonded indebtedness to the qualified voters of the City shall void or invalidate any such proceeding, any Bonds issued by the City or any levy of ad valorem taxes to pay principal of and interest on the Bonds.
17. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions this Ordinance are declared to be severable.
18. Publication of Ordinance. The City Clerk shall cause the proposed ordinance to be posted at least Ordinance/Calling Bond Election Page
three (3) days prior to its adoption in three (3) public places in the City and at least three (3) days prior to the ordinance adoption shall cause a single publication in an official newspaper. In accordance with Section 43611 of the California Government Code, this Ordinance shall also be published once a day for at least seven days in a newspaper published at least six days a week in the City, or once a week for two weeks in a newspaper published less than six days a week in the City. The first of said publications shall, in either event, be within 15 days after the adoption of this Ordinance. No other notice need be given.
19. Adoption; Effective Date. This Ordinance must be adopted by two-thirds of all members of the City Council. When adopted, in accordance with Section 36937(a) of the California Government Code, this Ordinance shall become effective immediately, as an ordinance relating to an election.
I HEREBY CERTIFY THE FOREGOING TO BE A TRUE COPY OF A RESOLUTION PASSED
AND ADOPTED BY THE CITY OF SANTA CLARA, CALIFORNIA, AT A REGULAR MEETING THEREOF HELD ON THE DAY OF , 2024, BY THE FOLLOWING VOTE:
AYES: COUNCILORS:
NOES: COUNCILORS:
ABSENT: COUNCILORS:
ABSTAINED: COUNCILORS:
ATTEST:
NORA PIMENTEL, MMC
ASSISTANT CITY CLERK
CITY OF SANTA CLARA
Attachment: Exhibit A - Expenditure Plan
Ordinance/Calling Bond Election Page
EXHIBIT A
EXPENDITURE PLAN
Ordinance/Calling Bond Election Page