REPORT TO COUNCIL
SUBJECT
Title
Study Session: City Council Roles and Responsibilities In Connection with the Issuance of Measure I General Obligation Infrastructure Bonds
Report
COUNCIL PILLAR
Enhance Community Engagement and Transparency
BACKGROUND
On November 5, 2024, voters in the City of Santa Clara approved ballot Measure I, the Public Facilities and Infrastructure Bond Measure. The approval of Measure I authorizes the issuance of $400 million of General Obligation bonds (GO Bonds) to help address over $600 million in unfunded infrastructure needs throughout the City, including aging fire stations, storm drain systems, and aquatic facilities.
DISCUSSION
It is expected that the $400 million of voter-approved GO Bonds will be issued in multiple bond sales, commonly referred to as “tranches.” The initial bond sale is expected to take place in early calendar year 2026 in order to fund the first phase of proposed projects. The first phase of projects is expected to include several priority projects that already have a specific, identified scope of work and are therefore the most ready to be fully designed, bid, and constructed. The first phase will also include money for conceptual design of more complex projects and funds to study projects that are currently without a defined scope of work.
As part of the bond issuance process, each bond issuance must be approved by City Council resolution. Each resolution will approve the bond sale and approve as to form certain legal documents necessary to implement the sale. This will include the preliminary official statement that discloses information regarding the City, its finances, the proposed projects, and the specific terms for the sale to potential bond investors.
To clarify the City Council’s actions and responsibilities, and facilitate questions regarding City Council’s role in the sale and issuance of the GO Bonds, Jones Hall (the City’s Bond Counsel) has prepared an information overview of such actions and responsibilities (Attachment 1). The Director of Finance has also prepared supplemental information, including information on key bond documents (Attachment 2).
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environment Quality Act (“CEQA”) pursuant to section 15378(a)(4) of Title 14 of the California Code of Regulations in that it is a fiscal activity that does not involve any commitment to any specific project which may result in a potential significant impact on the environment.
FISCAL IMPACT
There is no fiscal impact for oversight of the Measure I Bonds Measure program other than staff time.
COORDINATION
This report has been coordinated with the City Manager’s Office, Finance Department and the City Attorney’s Office.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov or at the public information desk at any City of Santa Clara public library.
RECOMMENDATION
Recommendation
Receive the presentations, ask questions, and discuss Council responsibilities related to the Measure I general obligation bond issuance process.
Staff
Reviewed by: Kenn Lee, Director of Finance
Reviewed by: Glen Googins, City Attorney
Approved by: Jovan D. Grogan, City Manager
ATTACHMENTS
1. Responsibilities of Council Members Regarding Bond Issuance prepared by Jones Hall
2. Supplemental information prepared by Director of Finance