Petaluma Municipal Code Ch. 4.41 The City of Petaluma Sales Tax Bond Law

This chapter may be cited as the city of Petaluma sales tax bond law. (Ord. 2911 NCS § 2, 2025.)

The city council hereby Lnds and declares that it is necessary, essential, a public purpose and a municipal aPair for

the city to use the Measure H revenues to provide Lnancing for public capital improvements, in the interests of the

public health, safety and welfare. (Ord. 2911 NCS § 2, 2025.)

Unless the context otherwise requires, the following deLnitions shall govern the construction of this chapter:

"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 Lnancing 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:

1. Obligations of the city incurred for labor and materials in connection with the acquisition and

construction of the public capital improvement;

2. 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;

3. The cost of demolishing, removing or relocating any building or structure, and the cost of making

relocation assistance payments required by law;

4. 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;

5. All costs of engineering, legal and consultant services, including the costs of the city for surveys,

estimates, plans and speciLcations 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;

6. All costs incurred in connection with proceedings by the city necessary to comply with the California

Environmental Quality Act of 1970, as amended;

7. 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 twelve months thereafter;

8. All costs of issuing the bonds;

9. 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;

10. The reLnancing of any existing indebtedness relating to the public capital improvement; and

11. 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 Lnancing is provided under this chapter shall

be set forth in the proceedings of the city council authorizing such Lnancing.

"State" means the state of California.

(Ord. 2911 NCS § 2, 2025.)

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 Lnance 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, Lnancial, underwriting, economic feasibility, or other services in

connection with the Lnancing 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 Lnancing of the public capital

improvement and the issuance of bonds therefor.

D. In addition to all other powers speciLcally granted in this chapter, to do all things necessary or convenient to

carry out the purposes of this chapter.

(Ord. 2911 NCS § 2, 2025.)

The city may issue bonds to Lnance 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. (Ord. 2911 NCS § 2, 2025.)

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 may be deemed advisable, shall

mature at such time or times, bear interest at such Lxed 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. (Ord. 2911 NCS § 2, 2025.)

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. SpeciLcation 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.

(Ord. 2911 NCS § 2, 2025.)

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. (Ord. 2911 NCS

§ 2, 2025.)

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. (Ord. 2911 NCS § 2, 2025.)

This chapter, being necessary for the health, welfare and safety of the city, its residents and businesses, shall be

liberally construed to ePect 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 aPairs and its police powers, and this chapter shall be liberally construed to

uphold its validity under the laws of the state. (Ord. 2911 NCS § 2, 2025.)

alternative.

This chapter shall be deemed to provide a complete, additional and alternative method for issuing bonds secured

by Measure H revenues to Lnance public capital improvements, and shall be regarded as supplemental and

additional to the powers conferred by other laws. The purposes authorized hereby may be ePectuated 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. (Ord. 2911 NCS § 2, 2025.)

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 aPairs powers as a charter city of the state.

(Ord. 2911 NCS § 2, 2025.)