HomeMy WebLinkAboutAgenda Bill 04/16/2001 (18) 1_
CITY OF PET4LUMA, CALIFORNIA .
AGENDA BILL•
• Agenda Title: Meeting Date:
Ordinance of the City-of Petaluma Amending{Ordinance No 1026 Apri -I 6, 2001
N,C.S. and Ordinance 1843 N,C-S: (Section 4.08:020 of the
Municipal Code) to Permit the Refunding ofRevenue Obligations
Department: `
Director: • Contact Persont• Phone Number:- • •
Finance. William J. Thomas William-J.'Thomas, . `778-4352 .
Cost°of,ProposaL None Account Number.: N/A . -
Amount.Budgeted: N/A Name.of Fund: N/A
Attachments to.Agenda Packebitem '
Proposed Ordinance - - •
• Copy of Section 4.08.020 of the Municipal Code; _
Summary Statement: The City i currently,pursuing the refunding of the City of Petaluma's 1990 Zone
IV Water'System Improvement Certificates of Participation:(GOP s) As'part of that process the City 1. ;• '
entered into an agreement with Jones Hall to provide.bond counsel services for this refunding., • The ! .
. attorney from Jones Hall (Bill Madison) has recommended thatthe City amend Section 4.08.020 of the
Municipal'Code that relates to bond-'financing. Specifically, the amendment will•perniit the refunding of.
revenue obligations.• .
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- t .Council"Prioritv:'Tills AGESDA ITEM IS..CONSIDERED TO BE PART OF, OR NECESSARY TO, ONE OR
> MORE OF THE,:1.999=2000. PRIORITIES ESTABLISHED•.BY THE CITY'COUNCIIiON'JANUARY 30, 1999
AND MaxcH'18 e2000 .
Priority(s): Increase revenues rand/or:decrease•current expenditures- .
Recommended City Council.Action/SUggested'Motion :• Adopt the Resolution
' Adopt the Ordinance'Oh its first reading:
Reviewed by Finance Director: Reviewed.bv'City Attorney: A 1 awed by City Manager:-
/9 �1 J Rate- Date: ®, Date j - •.
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Today's Da e: Revisions#;and-Date'Revised" . ii"Code:
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ApIIl3 00;1 • ,#, 'S:/agenda/water refunding Ordinance =
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' • CITY OF'•PETALUMA,CALIFORNIA
- APRIL 1'6,2001
0 . . . . .•, .. ,,. .. .. , ..:....„..AGENDA REPORT,
FOR
ORDINANCE THE CITY:OF PETALUMA-AMENDING ORDIANCE NO. 1026 •
• N; S. AND ORDIN'ANCE.NO 1843 1Y:C:S:;(SECTION:408.020'0F THE,MUNICIPAL_ '
- `CODE)TO'PERMITTHE REFUNDING OF-:REVENUE.OBLIGATIONS '
1. .EXECUTIVE SUMMARY:.The City is currently pursuing the^refunding-Ofthe City of •
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Petaluma's 1'990 Zone IV Water-System Improvement'Certifcates-of Participation (COP's): As
'part_of that process the City entered into,an agreement with Jones Hall to provide bond counsel
services for this refunding. The attorney from Jones Hall (Bill'Madison)`hasrecommended that
the,City amend,Section 4.08,020.of the Municipal Code that relatesto'bond financing:
Specifically,-the aniendment will permit the refunding of revenue.obligations. -
. '2. :- BACKGROUND _A's part of,our'ongoing relationship with our financial-advisors; ' -
` - Kelling, Norcross'and;Nobriga;they provide periodic,analysis?'of the City s;existing bond-issues. . -
to determine if opportunities exist for refinancing. Based on current market conditions; they
_ deterinined'that,a water issue;(Zone;IV WaterSystem Improvements COP'S) would have a
present value savings;'of$401,203°if refinanced at this time;•At the March`19, 2001'Council -
meeting,Council`;approved entering into an agreement with thefinancial advisors`as well as bond •
counselPones Hall) to facilitateithisref finding. - . -
The attorney from Jones Hall,Bill.Madison, who is the bondscounsel:for the City, recommends
that the Cityainend Section 4,08.02(1,6f the Municipal Code to permit the:refunding of revenue '
obligations:-Tire;proposed Ordinance,would accomplish'this:recommeridation. .Currently: -
Section 4:08:020 provides that revenue'bonds caii be issued for the:following purposes: ,,
>• The obtaining, conserving treating, and supplying of water (subsection,A), or .
➢ The collection;treatmenPor.disposahofgarbaggetlefu sermatter`(subsection B), .
' or .
> The collection,.treatment or,disposal of sewage, Wasste,or storm water (subsection
The proposed.section would provide thatiam:additional reason'that revenue.bonds:could be;issued
. would be to refund:existing,borids4thatwere applied to the acquisition;or construction of;,projects
A.
that satisfied,the purposes asset forth in;Section''4.08.020, subsections.A,.B andCsof'the •
• Municipal Code: . . ..
1. ALTERNATIVES: . ,
➢ Do not;:adopt,O
a Ordinance to provide specific;authorization to issue revenue bonds that
refund existing bonds ,
> Adopt the'Ordinance -
4. FINANCIAL IMPACTS: None ' .
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• 5. ' CONCLUSION: Currently,thereis`notspecific-language:in-Section 4:08.020 of the
Municipal Code=tharperniits-the issuance of revenue:bonds for-the'"specific purpose'of refiinding c.
existing revenue bonds issued in accordance with-that Section.' The proposed change wouift
facilitate�tlii s'purpose. - ' - -
6. OUTCOMES'`OR PERFORMANCE:MEt1SURENIENTS'TIIAT WILL
• INDENTIFY?SUCCESS OR COMPLETION:-iSuccessfulcompletion'of theirefunding "
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of the existing Water'Revenue,Bonds. .
' 7. ' RECOMMENDATION:: Adopt on first reading the,proposed Ordinance
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s-/agenda/water-refunding'ordinance amendment _ -
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ORDINANCE NO. N.C.S.
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Introduced ' • Seconded
• By Councilmember '
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. AN ORDINANCE OF THE iCITY OF PETALUMA AMENDING. THE PETALUMA' .
• - LAW; RELATING TO,THE.REFINANCING OF.REYENUE BONDS' .
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- BE IT ORDAINED BY THE COUNCIL OF THE:CITY OF PETALUMA AS-FOLLOWS: -
Section 1. Findings and Determinations_. . The",City Council of the City of Petaluma
• hereby ifinds and determines.., • ' •- • .! . >ti•
• A. The..City has, by Ordinance;No.-.1026 N.C.S. and Ordinance' 1:843 N C:S., :added , _. "
Chapter 4.08, entitled-`Bond,Issue-ProceduresRto the:Petaluma Municipal Code (the
- '`Revenue Bond Law"). • - ,p.
B. The Revenue Bond Law 'authorizes` the City ;of Petaluma, as an exercise. of its .y
- municipal affairs powers as ,a charter city, to issue revenue bonds for specified
enterprise 41 Act"),.with ts,to n mod f cationisation of the,Revenue'Bond.L"aw of 1941 (the
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C. Neither the Revenue Bond'Law-nor the '41 Act explicitly-authorize the issuance of '
revenue refunding bonds:
D. The City.entered°into a,-Lease Agreement in.November 1990,,in the principal amount q'
of $6,600,000 (the "1990 Lease") for- the purpose of financing Zone IV Water
- • 1 System Improvements, and.-caused ..to be executed and 'delivered Certificates of
Participation ("1990^OOP's"),representing the;right'to receive Lease Payments from '
the City under the,1990`Lease: -
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E. The 1990 Lease is;an obligation payable from the general fund of the City; and may' . .
- not be refunded under existing State •law provisions permitting the issuance of .
refunding revenue'bonds:
F: . The City has determined that interest savings.,will be;realized-if the 1990 COP's are
. refunded. -
. G. The City wishes at this time to amend its Revenue Bond Law- explicitly authorize"
the issuance;of revenue refunding bonds.
Section 2. ,Amendment:of Revenue Bond Law ,In.order to authorize the refinancing of-. , ' •
the City sreveue bonds, as an.:exercise ofi is municipal-affairs powers:as a.c arter city'.;the City
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Counci does herebyiamendthe
Revenue r Bond'L;aw as follows: - •
Section 4"08'020 of-:Chapter 4.08 :`shall be amended to add paragraph,D, thereto,•which _
- ' - •shall"read asifollows• -
. D: 'The refunding of bonds or other,obliga ions of the City, so long as (z) the proceeds of .
• such,bonds'were,applied`to.+the acquisitionlor construction ofprojects satisfyzng�thepuzposes'set-
.- " forth in paragraph A,.B or C above and;(u) such,bondsorobligations were'.payable'from.,.or- .
were zn fact paid from,revenues.generated by anvof the.enterprzses specfed in paragz aphs 4 B .
or Gabove ` ,, 4■Ti '
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Secton 3: 'Effective Date This Ordinance shall.:take,:effect 30:days after•-its final
:passage: -
,' Section 4. Advertisement. The city, is hereby.directed'.to post or publish the,
Ordinance for•theperiod and in the manner required.by the..City Charter-`
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Section 5.. Severabilty'Clause. If�-any section; subsection, sentence, 'clause or-phase of ,
this ordinance is for•any reasonnheld to be invalid„such decision shall,notsaffect the validity of '`
the remaining ortions',of this ordinan ce The Council hereby declares,tl at it would have ""' -
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-r .. adopted the:fordmance;, and-each section-subsection,..:sentence;.,clause: or phase .thereof -'
irrespective;of the fact thattany°one or more sections ,subsections; sentences;>clausesor phrases:
beideclared�ginvalid:. .
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4`04.100 PETALUMA MUNICIPAL CODE . •
0 ,4.04 100` • Cooperative purchasing enforcement.of, the rights. and -powers ,'s.:
P P i;• programs: belonging+"to the city and,such.procedure shall
Purchases of supplies an equipment - control and be-;followed in the issuance and • •
made,under a cooperative purchasing program - sale.of revenue;and-improvement bonds°as in •r • - -
with the.state, county or other`public;agencies this;chapter`so-provided. The procedures!of _• _ ap
are exempt from the requirements of'this this cha ter;are alternatiVe1ct the procedures of '
• , chapter. Cooperative purchases,Iotned will general, state' law:, • When issued' under the;' -, -f:
have: been competitively awarded; and authority of this .chapter,.the bonds shall!so'
documentation as to the •ad`vantage of the recite. (Ord. 1843 NCS §'1 (part), 1991: Ord:-
- - cooperative purchaseLwill beiretained: (Ord. -1026 NCSfi§1, 1971:) . , -
1938'NCS §2, 1993.) . : . .
4.08-.020 . Issuance° . of revenue ,
4.04:110 Inspection. and testing ' `bonds. , -
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- ; The;`purchasing officer shall' inspect ' Whenever the public interest"and necessity'
supplies,and-equipment delivered to+determine, so�require, the;council of the city may, acting;
- their;conformance with the>specifications'set :under this chapter;by,resolution.or resolutions • " '
forth in,the order or contract.,^Thepurchasing , .issue revenue bonds for thee following pur-
•officer",shall;•have authority•to':require chemical poses: - -
- . - ''and physical-tests.of samples'submitted'withT- A: : The-otitaining, conserving, treating• and' • : 41_
bids and samples of deliveries which are . • suppiyingof water for domestic:use, im-
necessary to determine their quality and, gations„sanitations, industrial use, fire .
conformanc a with specifications (Ord. 1938 protection, recreation,orany other public
NCS §1, 1993 Ord. 586 NCS §1 prior code B or private use;, •
) collection, treatment "or disposal of
• garbage or refuse matter,
- -. C The collection, treatment or disposal :of' '
' - ' • CHAPTER 4:08 • ' sewage,- water, including
.:drainage• The P rocedure for the issuance • •
,BOND .ISSUE: PROCEDURES, of such revenue.bonds;shall:be the proce-
. . .-dure•set'forth in the Revenue Bond Law f
4_.08 x010 Short title -r Enactment ., of 1941 (eorriinencing';with Section 54300
• Purposes. - _..- - -• of the California Government Code), nd = •
This chapter sshall,'be .known, as' the - - by this.-reference, 'with the:'exception ; ' . ..
"Petaluma Bond;•Law ” and-is:enacted,-by the hereinafter stated, the.provisions:of said
council of thescity`under andpursuant-to the ;law are incorporated;;in this chapter, •
• powers.'granted'and•reserved,to the city under provided, :however, that- no election to
Sections 3 and. 5 of Article XI of the authorize theissue of such revenue bonds
• Constitution of the State :of',California and +shall:be required orheld,and-to that end .
' Section 81 of the Charter of the,city, and is .Sections 54380; ',through 54387 of the
,.enacted' for the', purpose of;establishing a Government;Code`are not incorporated",in
• procedure'for the issuance and sale)of'revenue = this'chapter and'shall,not be applicableto.
and improvement bonds of the',city,for-certain . ,the'issuance;of such revenue bondsa,
purposes. This chapter,shall constitute a - (Ord. 18'43 'NCS°•§1 (part), 1991: Ord . -
special procedure; for the carrying, out and 1026 NCS §2, 1971'.)
` (406, Rev. Ord:^Stipp. 12/93