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HomeMy WebLinkAboutOrdinance 2911 N.C.S. 10/20/2025 Ordinance No. 2911 N.C.S. Page 1 EFFECTIVE DATE OF ORDINANCE November 19, 2025 ORDINANCE NO. 2911 N.C.S. Introduced by: John Shribbs Seconded by: Karen Nau AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA, STATE OF CALIFORNIA, AMENDING THE PETALUMA MUNICIPAL CODE BY ADDING A NEW CHAPTER 4.41 TO TITLE 4, “REVENUE AND FINANCE,” TO ESTABLISH THE CITY OF PETALUMA SALES TAX BOND LAW WHEREAS, the City of Petaluma (the “City”) is a municipal corporation and charter city duly organized and existing under a charter pursuant to which the City has the right and power to make and enforce all laws and regulations with respect to municipal affairs and certain other matters in accordance with, and as more particularly provided in, Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and the Charter of the City (the “Charter”), including Section 81 of the Charter; and WHEREAS, on March 5, 2024, the voters of Sonoma County approved Measure H, the “Improved and Enhanced Local Fire Protection, Paramedic Services and Disaster Response Transactions and Use Tax Ordinance” (the “Measure H Ordinance”), which added Article VIII to Chapter 12 of the Sonoma County Code; and WHEREAS, effective October 1, 2024, the Measure H Ordinance enacted a retail transactions and use tax throughout Sonoma County at the rate of one half cent per dollar ($0.005 or five cents per ten dollars) to be used solely for the purposes set forth therein, including but not limited to, improving and enhancing local fire protection, emergency paramedic services and disaster response; and WHEREAS, Section 12-63 of the Measure H Ordinance provides that local public agencies within Sonoma County that are allocated a percentage of Measure H revenues, including the City, may issue bonds secured by such revenues, for the purposes set forth in section 12-66 of the Measure H Ordinance; and WHEREAS, the City Council of the City, pursuant to Sections 3, 5 and 7 of Article XI of the Constitution of the State of California and the Charter, finds that the public interest and necessity require the establishment by this ordinance of a procedure to authorize the issuance of bonds by the City secured by the revenues received by the City pursuant to the Measure H Ordinance; and WHEREAS, this ordinance does not constitute a “project” under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b)(5), because it pertains to organizational and administrative activities of the government; namely, establishment of a procedure to authorize the issuance of bonds by the City secured by the revenues received by the City pursuant to the Measure H Ordinance, and this ordinance will not result in direct or indirect physical changes to the environment; and WHEREAS, even if this ordinance were considered a “project” under CEQA, it would qualify for exemption under the “Commonsense Exemption” set forth in CEQA Guidelines Section 15061(b)(3), because it can be determined with certainty that this ordinance has no potential to cause a significant environmental impact; Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Ordinance No. 2911 N.C.S. Page 2 WHEREAS, on October 6, 2025, after reviewing all public and written comments including the staff report and presentation voted to introduce Ordinance No. 2025-2911 N.C.S. by a vote of 7-0; NOW, THEREFORE, BE IT ORDAINED, by the Council of the City of Petaluma, as follows: Section 1. Findings. a. Recitals Made Findings. The above recitals are hereby declared to be true and correct and are hereby incorporated into this ordinance as findings of the City Council. b. CEQA Findings. This ordinance does not constitute a “project” under CEQA pursuant to CEQA Guidelines Section 15378(b)(5), because it pertains to organizational and administrative activities of the government; namely, establishment of a procedure to authorize the issuance of bonds by the City secured by the revenues received by the City pursuant to the Measure H Ordinance, and this ordinance will not result in direct or indirect physical changes to the environment. Even if this ordinance were considered a “project” under CEQA, it would qualify for exemption under the “Commonsense Exemption” set forth in CEQA Guidelines Section 15061(b)(3), because it can be determined with certainty that this ordinance has no potential to cause a significant environmental impact; Section 2. Amendment to Add a New Chapter 4.41 to the Petaluma Municipal Code. Title 4, “Revenue and Finance,” of the Petaluma Municipal Code is hereby amended to add a new Chapter 4.41 entitled “The City of Petaluma Sales Tax Bond Law,” to read as follows: TITLE 4 REVENUE AND FINANCE CHAPTER 4.41 THE CITY OF PETALUMA SALES TAX BOND LAW Sec. 4.41.010. Title. This Chapter may be cited as the City of Petaluma Sales Tax Bond Law. Sec. 4.41.020. Purpose. The City Council hereby finds and declares that it is necessary, essential, a public purpose and a municipal affair for the City to use the Measure H Revenues to provide financing for Public Capital Improvements, in the interests of the public health, safety and welfare. Sec. 4.41.030. Definitions. Unless the context otherwise requires, the following definitions shall govern the construction of this Chapter: Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Ordinance No. 2911 N.C.S. Page 3 “Acquisition and Construction” means, with respect to any Public Capital Improvement, the acquisition, construction, improvement, furnishing, equipping, remodeling, repair, reconstruction or rehabilitation thereof. “Bonds” mean any bonds, notes, installment sale agreements, leases or other obligations issued or entered into by the City pursuant to this Chapter for the purpose of financing the Costs of a Public Capital Improvement, which are payable in whole or in part from Measure H Revenues. “Chapter” means this Chapter 4.41 of Title 4 of the Petaluma Municipal Code, as amended from time to time. “Charter” means the charter of the City, as amended from time to time. “City” means the City of Petaluma, California, a charter city in the State existing under and exercising powers pursuant to the Charter and the Constitution of the State. “City Council” means the City Council of the City. “Costs” mean, with reference to a Public Capital Improvement, any or all of the following costs incurred for the Acquisition and Construction thereof: (a) Obligations of the City incurred for labor and materials in connection with the Acquisition and Construction of the Public Capital Improvement; (b) The cost of Acquisition and Construction of any property, whether real or personal and improved or unimproved, including franchise rights and other intangible property, and any interests therein, required for the Acquisition and Construction of the Public Capital Improvement; (c) The cost of demolishing, removing or relocating any building or structure, and the cost of making relocation assistance payments required by law; (d) The cost of contract bonds and of insurance of all kinds that may be required or necessary during the course of the Acquisition and Construction of the Public Capital Improvement; (e) All costs of engineering, legal and consultant services, including the costs of the City for surveys, estimates, plans and specifications and preliminary investigation therefor, and for supervising construction, as well as for the performance of all other duties required by or consequent upon the proper Acquisition and Construction of the Public Capital Improvement; (f) All costs incurred in connection with proceedings by the City necessary to comply with the California Environmental Quality Act of 1970, as amended; (g) All amounts required to fund any reserve funds for Bonds and any interest on Bonds becoming due and payable during a period not exceeding the period of Acquisition and Construction of the Public Capital Improvement, and for 12 months thereafter; (h) All costs of issuing the Bonds; Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Ordinance No. 2911 N.C.S. Page 4 (i) All costs which the City shall be required to pay, under the terms of any contract or contracts, for the Acquisition and Construction of the Public Capital Improvement; (j) The refinancing of any existing indebtedness relating to the Public Capital Improvement; and (k) Any sums required to reimburse the City for advances made for any of the above items, or for any other costs incurred and for work done which are properly chargeable to the Public Capital Improvement. “Measure H Ordinance” means the “Improved and Enhanced Local Fire Protection, Paramedic Services and Disaster Response Transactions and Use Tax Ordinance,” which added Article VIII to Chapter 12 of the Sonoma County Code, as may be amended from time to time. “Measure H Revenues” means the retail transactions (sales) and use tax revenues received by the City in accordance with the Measure H Ordinance. “Public Capital Improvement” means any land, improvements, facilities, equipment and other property of any nature whatsoever, which constitutes property for which the City is authorized to expend Measure H Revenues. The precise description of any Public Capital Improvement for which financing is provided under this Chapter shall be set forth in the proceedings of the City Council authorizing such financing. “State” means the State of California. Sec. 4.41.040. General Powers. In connection with the Acquisition and Construction of a Public Capital Improvement by the City, the City is authorized and empowered: (a) To issue Bonds to finance Public Capital Improvement(s) and to refund any outstanding issue of Bonds. (b) To establish the terms and conditions of any Bonds issued pursuant to this Chapter. (c) To employ or contract for such legal, financial, underwriting, economic feasibility, or other services in connection with the financing of the Public Capital Improvement, or to contract for bond insurance or other forms of collateral security, as may be necessary or desirable for the successful financing of the Public Capital Improvement and the issuance of Bonds therefor. (d) In addition to all other powers specifically granted in this Chapter, to do all things necessary or convenient to carry out the purposes of this Chapter. Sec. 4.41.050. Authorization of Bonds. The City may issue Bonds to finance the Acquisition and Construction of all or any portion of a Public Capital Improvement, as authorized by this Chapter. Such Bonds shall be limited obligations of the City, payable solely from the Measure H Revenues pledged therefor. Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Ordinance No. 2911 N.C.S. Page 5 Sec. 4.41.060. Form of Bonds. Each issuance of Bonds shall be authorized by resolution of the City Council. Bonds may be issued as serial or term Bonds, as current interest or capital appreciation Bonds, or in such other forms as the may be deemed advisable, shall mature at such time or times, bear interest at such fixed or variable rate or rates, be payable at such time or times, be in such denominations, be in such form, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, and be subject to such terms of redemption as the City Council may provide. The Bonds may be sold at either a public or private sale and at such prices as the City Council shall determine. Sec. 4.41.070. Terms of Bonds. Any proceedings of the City authorizing the issuance of Bonds may contain provisions respecting any of the following terms and conditions, which shall be a part of the contract with the owners of the Bonds: (a) The pledge of all or any part of the Measure H Revenues. (b) The interest rate and principal amounts to be paid on the Bonds. (c) The setting aside of reserves or sinking funds and the regulation and disposition thereof. (d) Limitations on the purposes to which the proceeds of a sale of any issue of Bonds may be applied. (e) Provisions regarding the issuance of additional Bonds, the terms upon which additional Bonds may be issued and secured, and the refunding of outstanding Bonds. (f) The procedures, if any, by which the terms of any contract with Bond owners may be amended or abrogated, the amount of Bonds the owners of which must consent thereto, and the manner in which such consent may be given. (g) Specification of the acts or omissions to act which shall constitute a default in the duties of the City to the owners of the Bonds, and providing the rights and remedies of such owners in the event of default. (h) Covenants for the protection of the security of the Bonds and the owners of the Bonds, including covenants restricting the authority of the City to issue additional obligations on a parity with the Bonds. (i) Such other terms and conditions pertaining to the issuance of the Bonds as are deemed advisable by the City Council. Sec. 4.41.080. No Personal Liability. Neither the members of the City Council nor any person executing the Bonds shall be liable personally on the Bonds or be subject to any personal liability or accountability by reason of the issuance thereof. Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Ordinance No. 2911 N.C.S. Page 6 Sec. 4.41.090. Refunding Bonds. The City Council may provide for the issuance of Bonds to refund outstanding Bonds, including the payment of the principal thereof and interest and redemption premiums, if any, thereon. The proceeds of Bonds issued to refund any outstanding Bonds may be applied to the retirement of such outstanding Bonds at maturity, or the redemption (on any redemption date) or purchase of such outstanding Bonds prior to maturity, upon such terms and subject to such conditions as the City Council shall deem advisable. Sec. 4.41.100. Liberal Construction. This Chapter, being necessary for the health, welfare and safety of the City, its residents and businesses, shall be liberally construed to effect its purposes. Furthermore, the City Council hereby declares that this Chapter is an exercise of the power granted to the City by the Charter and the Constitution of the State and is an exercise by the City of its powers as to municipal affairs and its police powers, and this Chapter shall be liberally construed to uphold its validity under the laws of the State. Sec. 4.41.110. Provisions of this Chapter are Complete, Additional and Alternative. This Chapter shall be deemed to provide a complete, additional and alternative method for issuing Bonds secured by Measure H Revenues to finance Public Capital Improvements, and shall be regarded as supplemental and additional to the powers conferred by other laws. The purposes authorized hereby may be effectuated and Bonds authorized to be issued for any such purposes under this Chapter notwithstanding any other law which may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, restrictions, limitations or other provisions contained in any other law. Sec. 4.41.120. Chapter Controlling. To the extent that the provisions of this Chapter are inconsistent with the provisions of any general statute or special act or parts thereof, the provisions of this Chapter shall be deemed controlling to the full extent to which the City is competent to make such provisions by virtue of its municipal affairs powers as a charter city of the State. Section 3. Severability. If any section, subsection, sentence, clause, phrase, or word of this ordinance is for any reason held to be unconstitutional, unlawful, or otherwise invalid by a court of competent jurisdiction or preempted by State legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful other otherwise invalid. Section 4. Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and any other applicable law. Section 5. Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958 Ordinance No. 2911 N.C.S. Page 7 INTRODUCED and ordered published and posted this 6th day of October, 2025. ADOPTED this 20th day of October, 2025 by the following vote: Ayes: McDonnell, Barnacle, Cader Thompson, DeCarli, Nau, Quint, Shribbs Noes: None Abstain: None Absent: None Kevin McDonnell, Mayor ATTEST: APPROVED AS TO FORM: Caitlin Corley, City Clerk Eric Danly, City Attorney Docusign Envelope ID: D7B64B4B-D680-41CF-8862-6F67E09FF958