7/16/2024 Item 3
City Council
Item #3
• Resolution Adopting an Expenditure Plan for th
roposed Bond Measul
ATTA CLARA CRA
B. Waive Second Reading and Adopt an Ordinance
Ordering the Submission of a Measure Incurring Bond
O Indebtedness to the Qualified Voters of the City of Santa Clara
mant C. Resolution Calling for a Municipal Election and Ordering Consolidation with the Santa Clara County
Presidential General Election on November 5, 2024 for the 1852 Purpose of Submitting to the Voters a Measure to
Approve the Issuance of General Obligation Bonds to
THE MISSION CIT Finance Municipal Improvements Constituting Public Infrastructure in an Amount of $400,000,000; Requesting Consolidation with the Presidential General Election and Election Services from Santa Clara County; Providing the City Attorney to Prepare an Impartial Analysis; Setting Priorities for Ballot Arguments
July 16, 2024
1 City of
Santa Clara
The Center of What's Possible
Agenda
• Introduction and Background
• City Infrastructure Needs
• Proposed Expenditure Plan
• Transparency and Accountability Plan
• Ballot Measure Language, Logistics, and Key Dates
• Staff Recommendation
2 2
POST MEETING MATERIAL
1 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Introduction
• Tonight, the City Council will consider actions to:
- Adopt an Expenditure Plan for the proposed bond measure - Adopt an Ordinance providing for the Issuance of Bonds in accordance with state and local transparency and accountability requirements - Place the $400M general obligation (GO) bond measure on the November 2024 ballot to address City infrastructure needs 3 3
City of
Santa Clara
The Center of What's Possible
Background
• On July 9, the City Council:
- Adopted a legally required Resolution of Necessity for the proposed bond measure
- Took action to introduce an ordinance to place a $400M bond on the November ballot
- Provided direction on Expenditure Plan category areas and projects to be brought back for final approval
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7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
How Would the Proposed Bond be Funded
• The proposed $400M bond Expenditure Plan would levy
an estimated $19 per $100,000 of assessed property
value (not market value) annually
• The tax bill for each of the largest 20 commercial property owners in Santa Clara would increase by an average of
$154,000 per year
• The tax bill for a typical homeowner would increase by an average of $128 per year
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City of
Santa Clara
The Center of What's Possible
CITY INFRASTRUCTURE
NEEDS
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3 7/16/2024 Item 3
City of
Santa Clara
ho wantero whats Possible
City Infrastructure Needs
• 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 - 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)
• Without dedicated funding, the City cannot act on study findings and escalation will increase project costs
7 City of
Santa Clara
The Center of What's Possible
City Infrastructure Needs Continued
• Over $600 million in City infrastructure needs identified where the General Fund is the primary funding source
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7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
City Infrastructure Needs Continued
• This year alone the City had over $275M in infrastructure requests come in from various departments and we only
had $24M to spend.
City of
Santa Clara
The Center of What's Possible
City Council and Community Recognize
Need to Invest in Infrastructure
• Council regularly discuss
the need for investment in
aging infrastructure and
deferred maintenance
• Polling shows 80% of
voters see need for
infrastructure funding
10 10
5 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
PROPOSED EXPENDITURE
PLAN
11 11
City of
Santa Clara
The Conter of What's Possible
Proposed Expenditure Plan
• The updated $400M bond Expenditure Plan includes the
following category areas:
- Streets and Transportation
- Fire Stations and Emergency Response
- Police Facilities
- Parks, Libraries, Senior Center, and Aquatics Facilities - Stormdrain System Improvements
- Historic Buildings and Beautification
• Specific projects and associated cost estimates were identified within these category areas 12
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7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Cont.
Project Areas Total
Streets and Transportation 41,170,000
Street Resurfacing and Rehabilitation 23,000,000
ADA Improvements 10,000,000
Creek Trail Rehabilitation 2,500,000
Bicycle Wayfinding 300,000
Contingency/Escalation/Administration 5,370,000
Fire Stations and Emergency Response 142,235,450
Fire Stations 5 Replacement 27,000,000
Fire Stations 7 Replacement 27,000,000
9,000,000
Fire Station 1 Replacement/Renovations 58,000,000
Fire Training Tower Renovation 783,000
Various Fire Station Infrastructure Upgrades 1,900,000
Contingency/Escalation/Administration 18,552,450
43,987,500
3,000,000
250,000
30,000,000
5,000,000
13 Contingency/Escalation/Administration 5,737,500
13 City of
Santa Clara
Proposed Expenditure Plan Cont.
Project Areas Total
Parks, Library, Senior Center, and Aquatics Facilities 115,258,750 Renovation/Expansion of 3 Public Libraries 9,000,000
Senior Center Expansion/Renovation 9,500,000
Community Aquatic Facility/ISC Renovation/Replacement 45,000,000 Bowers Park Renovations 4,400,000
Earl Carmichael Park Playground Renovations 2,900,000
Warburton Park Playground Renovations 3,000,000
Henry Schmidt Park Playground Renovations 4,325,000
Pickleball Court 1,600,000
Mary Gomez Park Renovations 2,500,000
Aged Parks & Buildings Infrastructure in Critical/Poor 18,000,000 Contingency/Escalation/Administration 15,033,750
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7 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Cont.
Project Areas Total
Stormdrain System Improvements 46,000,000
Stormdrain System Improvements 16,423,000
Storm Water Retention Basin Remediation 9,209,000
Green Stormwater Infrastructure Design & Construction 6,645,000 Lafayette St. Underpass at Subway Pump Station 4,946,000 Bowers Ave Underpass SDPS Rehabilitation 2,030,000
SDPS Motor and Control Replacement 347,000
Stormdrain Pump Station Outfall Reconstruction Program 250,000 150,000
6,000,000
9,200,000
4,000,000
3,000,000
Triton Museum Improvements 1,000,000
Contingency/Escalation/Administration 1,200,000
Bond Issuance Costs 2,000,000
$ 15
GRAND TOTAL 399,851,700
15 City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Project Examples-
Streets and Transportation - $41.1M
Example projects in this category area include:
• Street resurfacing and rehabilitation
• ADA improvements
• Creek trail rehabilitation
16 16
8 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Project Examples-
Fire Stations and Emergency Response - $142.2M
Example projects in the category area include:
• Fire station replacements and renovations
• Fire Training Tower
17 17
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Project Examples-
Police Facilities - $43.9M
Example projects in this category
area include:
• Police Department Drone First
Responder Infrastructure
POLICE
• Emergency Operations Center
Infrastructure
• Real time Crime Center
18 18
9 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Project Examples-
Parks, Libraries, Senior Center, Aquatics - $115.2M
Example projects in this category area include:
• Renovation/expansion of Libraries
• Senior Center expansion/renovation
• Community aquatics facilities
• Parks facilities and buildings infrastructure
19 19
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Project Examples-
Stormdrain System Improvements - $46M
Example projects in this category
area include:
• Stormdrain system improvements
• Storm water retention basin remediation
• Lafayette St. underpass at Subway pump
station
• Bowers Ave Underpass SDPS
rehabilitation
20 20
10 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Proposed Expenditure Plan Project Examples-
Historic Buildings and Beautification - $9.2M
Example projects in this category area include:
• Streets and median beautification
• Renovations to historic buildings
• Triton Museum upgrades
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City of
Santa Clara
The Center of What's Possible
TRANSPARENCY AND
ACCOUNTABILITY PLAN
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11 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan
1. Council approval of an Expenditure Plan including project category areas and related spending amounts concurrent with adoption of the bond Ordinance to be attached to the Ordinance and presented as part of the ballot materials [Ordinance Section 6, Section 13(b)(i) and Exhibit A)]
2. Process for substantive amendments to the Expenditure Plan to require a staff recommendation, input from the Community Oversight Committee and unanimous approval of the City Council [Ordinance Section 13(b)(ii)]
3. Formation of a Community Oversight Committee to ensure compliance with bond requirements and provided input on any proposed Expenditure Plan amendment [Ordinance Section 13(a)(viii) and 13(b)(iv)] 23
23 City of
Santa Clara
Transparency and Accountability Plan
4. Bond expenditures subject to independent annual audits with public presentations of the audits to the Community Oversight Committee and Council Audit Committee [Ordinance Sections 13(a)(v)-(vii) and 13(b)(v)]
5. Strict prohibitions on the use of bond proceeds for (a) Levi's Stadium Improvements; (b) any projects for the sole benefit of Levi's Stadium; (c) any improvements within 5 miles of the Stadium, except for improvements in residential neighborhoods of direct benefit to those areas and not Levis Stadium; and (d) the direct or indirect benefit of any professional sports team [Ordinance Section 13(b)(iii)]
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12 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Transparency and Accountability Plan
6. Funds only to be used for public infrastructure projects serving the City of Santa Clara [Ordinance Section 13(a)(ii)]
7. All bond proceeds are to be deposited into a separate accounts) and tracked on a project-by-project basis [Ordinance Section 13(a)(x)]
8. No bond proceeds are to be used for employee salaries or benefits with the exception of normal and customary personnel charges for project management and delivery services not to exceed 5% of bond proceeds [Ordinance Section 13(a)(i)]
25 City of
Santa Clara
Transparency and Accountability Plan
9. Annual public presentations on the Expenditure Plan and project status to the Community Oversight Committee and the City Council [Ordinance Section 13(b) (v)]
10.For projects requiring mail notice, noticing to all properties within 1,000 feet of the project [Ordinance Section 13(b)(v)]
11. Enhanced communications program on bond-funded projects including on the City's webpage with public signage providing further information at project sites [Ordinance Section 13(b)(v)]
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13 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Ballot Measure Language,
Logistics, and Key Dates
27 27
City of
Santa Clara
The Center of What's Possible
July 9 Proposed Ballot Question
Yes
To improve 911 emergency rapid response; fix potholes, repair and improve streets throughout Santa Clara; fix underground stormdrains/pipes to prevent sinkholes; provide safer roads and routes to school for drivers, pedestrians; and repair/maintain safe public facilities; shall the City of Santa Clara's measure No
authorizing $400,000,000 in bonds, funded by levying an estimated $19/$100,000 of assessed value while bonds are outstanding, generating approximately $21,674,000 annually, with annual audits and citizen oversight of spending, be adopted?
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14 7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Modified Proposed Ballot Question
Based on July 9 City Council direction on the Expenditure Plan and further legal review, staff proposes the following modified ballot language:
To improve 911 emergency response; fix streets to reduce Yes potholes and provide safer roads and routes for drivers, pedestrians, and cyclists; upgrade stormdrains/pipes to prevent flooding/sinkholes; and renovate/replace recreation, library and other community facilities; shall the City of Santa Clara's No measure authorizing $400,000,000 in bonds, funded by levying an estimated $19 per $100,000 of assessed value while bonds are outstanding, generating approximately $21,674,000
annually, with annual audits and citizen oversight of spending, be adopted? 29
29 City of
Santa Clara
Ballot Arguments
• City Charter and California Elections Code authorize, but do not require, the City Council write the argument in support of the ballot measure.
- Council (max of 3) Option to Consider:
• Mayor
- Delegation to Mayor • Councilmember
- No Designation; City Clerk shall select one • Up to 3 residents/stakeholders of the arguments in adherence to Elections
Code Section 9287
*In each case there is a limit of 5 signators 30
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7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Impartial Analysis
• Election Code Section 9280
• City Council may direct the City Attorney to prepare an impartial analysis of the measure showing the effect of the measure on the existing law and the operation of the measure.
• Due to the Registrar of Voters: August 20, 2024
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Key Dates
November 2024 Election
November
Action Required Election Cycle
Council Adopts Resolution to Place Measure on Ballot and Call for Election July 16, 2024 Arguments due to City Clerk's Office July 30, 2024
Rebuttals due to City Clerk's Office August 9, 2024
City Attorney draft an Impartial Analysis August 9, 2024 Deadline to submit resolution to County Registrar of Voters by 5 p.m. August 9, 2024 Deadline to submit Arguments to County Registrar of Voters by 5 p.m. August 13, 2024 Deadline to submit Rebuttals & Impartial Analysis to ROV by 5 p.m. August 20, 2024 City of
Santa Clara
32 16
7/16/2024 Item 3
City of
Santa Clara
The Center of What's Possible
Staff Recommendation
33 City of
Santa Clara
Staff Recommendation
1. Approve a Resolution adopting the expenditure plan for the bond measure.
2. Waive second reading and adopt Ordinance No. 2069 to order the submission of a measure incurring bond 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 costs of the acquisition, construction and improvement of certain municipal improvement projects constituting public infrastructure of the City, subject to the accountability measures and compliance with an adopted expenditure plan. (2/3rds Vote)
Adopt a resolution ordering submission of a ballot measure to the qualified electors of the City; calling for a Special Municipal Election to be held in the City of Santa Clara on Tuesday, November 5, 2024 for the purpose of submitting a measure to approve the issuance of general obligation bonds to finance municipal improvements constituting public infrastructure in an amount of $400,000,000; requesting consolidation with the Presidential General Election and election services from Santa Clara County; authorizing the City Attorney to prepare an impartial analysis; setting priorities for ballot arguments. (Majority Vote) 34 34 17
7/16/2024 Item 3
City Council
Item #3
A. Roslution Adopting an Expenditure Plan for the
C. Resolution Calling for a Municipal Election and
Ordering Consolidation with the Santa Clara County
Presidential General Election on November 5, 2024 for the 1852 Purpose of Submitting to the Voters a Measure to
Approve the Issuance of General Obligation Bonds to
THE MISSION CIN Finance Municipal Improvements Constituting Public Infrastructure in an Amount of $400,000,000; Requesting Consolidation with the Presidential General Election and Election Services from Santa Clara County; Providing the City Attorney to Prepare an Impartial Analysis; Setting Priorities for Ballot Arguments
July 16, 2024
35 18