ORDINANCE NO. 890
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX ORDERING THE SUBMISSION OF A PROPOSITION INCURRING BONDED INDEBTEDNESS TO THE QUALIFIED VOTERS OF THE TOWN OF FAIRFAX AT THE GENERAL ELECTION TO BE HELD ON NOVEMBER 5, 2024, FOR THE PURPOSE OF FINANCING THE COST OF THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF CERTAIN MUNICIPAL IMPROVEMENT PROJECTS
The Town Council (the “Town Council”) of the Town of Fairfax (the “Town”) hereby ordains as follows:
Section 1. Purpose And Intent
Pursuant to the authority provided by California Government Code Sections 43600 et seq. and 53410 et seq., California Elections Code Sections 10000 et seq., 9200 et seq., and 9400 et seq., and certain other provisions of the California Government Code and California Elections Code, the Town Council proposes to order the submission of a proposition authorizing the Town to issue general obligation bonds (the “Bonds”) to the qualified voters of the Town at the general municipal election to be held on November 5, 2024.
Section 2. Findings
The Town Council hereby makes the following findings with respect to the proposed measure for the Bonds:
- The Town’s roads and other existing municipal infrastructure are in need of repair and/or replacement.
- On July 17, 2024, the Town Council adopted, by a two-thirds vote of all its members, a resolution entitled “A Resolution of the Town Council of the Town of Fairfax Determining that the Public Interest and Necessity Demand the Acquisition, Construction and Improvement of Certain Municipal Improvement Projects, and Their Financing Through the Issuance of General Obligation Bonds,” pursuant to which the Town Council has found and determined that the public interest and necessity demand the issuance of general obligation bonds to finance the cost of municipal improvement projects (the “Resolution of Necessity”).
- In order to provide for the issuance by the Town of general obligation bonds to provide financing for the municipal improvement projects, it is necessary for the Town Council to adopt an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the Town at a municipal election.
- The Town Council desires to submit said ballot measure to the qualified voters of the Town at the regular election to be held in the Town on November 5, 2024, and to consolidate the bond election with other elections held within the Town on that date.
- The Town Council hereby certifies that the Town has evaluated alternative funding sources.
Section 3. Call For Election
The Town Council hereby orders that there be submitted to the qualified voters of the Town a proposition on incurring bonded indebtedness for the purposes set forth in this Ordinance and as set forth in the Resolution of Necessity, at the regular election to be held on November 5, 2024. This Ordinance constitutes the order of the Town to call such election.
Section 4. Ballot Proposition
The Town Council hereby submits to the qualified voters of the Town, at the regular election to be held on November 5, 2024, a proposition on issuing the Bonds. The abbreviated statement of the measure to appear on the ballot shall be in substantially the form set forth below:
“To repair roads/infrastructure; fix potholes; repave streets; repair retaining walls/bridges; address flooding of roads/buildings; improve bike/pedestrian circulation, safe routes to schools, disabled access; and qualify for federal matching funds/grants, shall the Town of Fairfax’s measure authorizing $18,000,000 of bonds for up to 30 years for each series, at legal interest rates, levying approximately $30/$100,000 of assessed value, raising on average approximately $1,200,000 annually, requiring audits/citizen oversight, be adopted?”
BONDS—YES BONDS—NO
Section 5. Object And Purpose Of Bonds
The object and purpose of the Bonds is to finance the costs of municipal improvement projects of the Town to improve public safety (the “Improvements”), which Improvements are anticipated to consist generally of the acquisition, construction and/or improvement of roads, bridges, retaining walls, street work, and Town infrastructure.
The authorized Improvements also include all work, facilities, and expenditures necessary and incidental to the project described above. Examples of such work, facilities, and expenditures include, but are not limited to the costs of design, engineering, architect and other professional services, inspections, site preparation, utilities (including improvements to plumbing, sewer and electrical systems to preserve energy and water), landscaping, construction management and other planning and permitting, road lighting, legal, accounting and similar costs, a customary construction contingency, demolition and disposal of existing structures, rental or construction of storage facilities and other space on an interim basis for materials and other equipment and furnishings displaced during construction, interim facilities for municipal functions, including modular facilities, addressing unforeseen conditions revealed by construction or renovation, and other necessary improvements required to comply with existing building codes, environmental improvements to preserve energy and water, access requirements of the Americans with Disabilities Act, costs of the election, bond issuance costs, financing and interest costs on the Bonds, and project administration during the duration of such projects, as permitted by law.
The final costs, locations, designs, layouts and other details of the Improvements will be determined as plans are finalized, construction bids are awarded, and projects are completed. Therefore, the Town Council cannot guarantee that the Bonds will provide sufficient funds to allow completion of all needed Improvements.
The full text of the ballot measure shall be in substantially the form as in Exhibit A, attached hereto and incorporated herein.
Section 6. Estimated Cost of Improvements
The estimated cost of the Improvements is $20,531,616. The estimated cost includes legal or other fees, the costs of printing the Bonds, and other costs and expenses incidental to or connected with the authorization, issuance and sale of the Bonds.
Section 7. Principal Amount of Bonds
The aggregate principal amount of the Bonds shall not exceed $18,000,000.
Section 8. Maximum Interest Rate
The maximum rate of interest to be paid on the Bonds shall be the statutory maximum of 8% per annum. Said interest shall be payable semiannually, except that interest for the first year after the date of the Bonds may be made payable at the end of said year.
Section 9. Issuance And Sale of Bonds
The Town proposes to issue and sell the Bonds pursuant to Article 1, commencing with Section 43600, of Chapter 4 of Division 4 of Title 4 of the California Government Code, or Article 4.5, commencing with Section 53506, of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code, in one or more series, in the maximum amount and for the objects and purposes set forth above if two-thirds (or 55% should Assembly Constitutional Amendment No. 1 or “ACA-1” be approved by the voters at the November 5, 2024 election) of all qualified voters voting on the proposition set forth above vote in favor thereof. The Bonds will be general obligations of the Town payable from and secured by ad valorem taxes levied and collected in the manner prescribed by laws of the State of California. The revenue generated from the ad valorem tax levied and collected will be used for the payment of debt service on the Bonds. All of the Bonds shall be equally and ratably secured, without priority, by the taxing power of the Town.
Section 10. Manner Of Conducting Election
The election on the Bonds held on November 5, 2024 shall be held and conducted, election officers appointed, voting precincts designated, ballots printed, polls opened and closed, ballots counted, and returned, returns canvassed, results declared, and all other proceedings incidental to and connected with the election shall be regulated and done in accordance with the provisions of law regulating the election with which it is consolidated.
Section 11. Procedure For Voting On Proposition
Ballots for the election shall be provided in the form and in the number provided by law. Voters shall be provided an opportunity to vote for or against the proposition on the ballot in accordance with procedures to be adopted by the authorized officers of the County of Marin (the “County”) charged with conducting the election.
Section 12. Accountability Requirements
In accordance with Sections 53410 and 53411 of the California Government Code and the California Constitution, the Town Council hereby adopts the following accountability requirements relating to the Bonds:
- A separate account shall be created and held by the Town, into which the proceeds of the Bonds are deposited and applied solely for the purpose of financing the Improvements.
- The Finance Director of the Town shall file a report with the Town Council at least annually showing the amount of Bond proceeds collected and expended, and the status of the Improvements, as required by Government Code Section 53410.
- Use the bond proceeds only for the purposes authorized under Article XIIIA of the California Constitution and only on projects that serve the jurisdiction of the Town, including the construction, reconstruction, rehabilitation, or replacement of public infrastructure, and not for any other purpose including salaries and other operating expenses.
- Conduct an annual, independent performance audit to ensure that the bond proceeds have been expended only on the projects and uses listed in this Measure.
- Conduct an annual, independent financial audit of the proceeds from the sale of the bonds until all of those proceeds have been expended for projects and uses listed in this Measure.
- The Town shall post the audits listed in (d) and (e), above, in a manner that is easily accessible to the public, and which shall be submitted to the California State Auditor for review.
- Establish and appoint members to an independent citizens’ oversight committee to ensure the bonds are used only for the projects and uses listed in this Measure.
- An entity owned or controlled by a local official that votes on whether to put the Measure on the ballot is prohibited from bidding on any work funded by this Measure.
Section 13. Identification Of Tax
The tax imposed by this measure is an ad valorem tax levied upon taxable real property in the Town, and will be used to pay the principal and interest on the Bonds.
Section 14. Establishment Of Oversight Committee
In the event the ballot proposition is passed by two-thirds (or 55% should ACA-1 be approved by the voters at the November 5, 2024 election) of all qualified voters voting on the proposition, the Town Council shall establish and appoint members to a five-member independent oversight committee, which shall have responsibility for reviewing and reporting on the expenditure of the proceeds of the Bonds, subject to those terms and conditions as set forth by the Town Council.
Section 15. Official Actions
The Mayor, the Town Manager, the Finance Director, the Town Clerk, and any of their designees, are hereby authorized to execute any documents and to perform all acts necessary to place the bond measure on the ballot.
Section 16. Interpretation
The provisions of this Ordinance, being necessary for the health, welfare, and safety of the Town and its residents, is to be liberally interpreted to carry out its purposes. No error, irregularity or informality, and no neglect or omission of any officer, in any proceeding taken related to the submission of the proposition incurring bonded indebtedness to the qualified voters of the Town shall void or invalidate any such proceeding, any Bonds issued by the Town, or any levy of ad valorem taxes to pay principal of and interest on the Bonds.
Section 17. Severability
If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions this Ordinance are declared to be severable.
Section 18. Publication Of Ordinance
This Ordinance shall be published once a day for at least seven days in a newspaper published at least six days a week in the Town, or once a week for two weeks in a newspaper published less than six days a week in the Town. The first of said publications shall, in either event, be within 15 days after the adoption of this Ordinance. If there are no such newspapers, it shall be posted in three public places in the Town for two succeeding weeks. No other notice need be given.
Section 19. Delivery of Documents
The Town Clerk is hereby authorized and directed to send or hand deliver a copy of this Ordinance and all other necessary documents to the County Board of Supervisors and the County Registrar of Voters by no later than August 9, 2024.
Section 20. Effective Date
In accordance with Section 36937(a) of the California Government Code, this Ordinance shall become effective immediately, as an ordinance relating to an election, upon its adoption by two-thirds vote of all the members of this Town Council.
THE FOREGOING ORDINANCE was introduced at a regular meeting of the Town Council of the Town of Fairfax on July 17, 2024, and was adopted at a regular meeting of Town Council of the Town of Fairfax on August 7, 2024, by the following vote:
AYES: Ackerman, Hellman, Cutrano, Blash, Coler
NAYS: None
ABSENT: None
s/BARBARA COLER
Mayor
ATTEST:
s/CHRISTINE FOSTER
Deputy Town Clerk
CERTIFICATION
I, Christine Foster, Deputy Town Clerk of the Town of Fairfax, California, do hereby certify that the foregoing is a full, true and correct copy of Ordinance No. 890 which was regularly introduced and placed upon its first reading at a regular meeting of the Town Council on the 17th day of July 2024. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the Town Council on the 7th day of August 2024, by the following vote:
AYES: Ackerman, Hellman, Cutrano, Blash, Coler
NAYS: None
ABSENT: None
s/CHRISTINE FOSTER
Deputy Town Clerk