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Ordinance 2008-10 ORDINANCE NO. 2008-10 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF GILROY ORDERING THE SUBMISSION OF A PROPOSITION OF INCURRING BONDED DEBT TO THE QUALIFIED VOTERS OF THE CITY OF GILROY AT THE GENERAL MUNICIPAL ELECTION TO BE HELD ON NOVEMBER 4, 2008, FOR THE PURPOSE OF THE ACQUISITION, CONSTRUCTION AND IMPROVEMENT OF GILROY PUBLIC LIBRARY FACILITIES WHEREAS, the existing City library building does not meet current earthquake safety standards, and the City desires to ensure that the City has a library that meets current earthquake safety standards and to provide services for local families and children to use for years to come; and WHEREAS, the current City library building was built in 1975, when the City's population was 15,000, and the current population is more than 50,000 and is expected to grow to nearly 70,000 by the year 2020 - and there is a significant community demand for local library services; and WHEREAS, a library that meets current earthquake safety standards can be centrally located near public transit, City Hall, the Senior Center and able to serve students at sixteen different public schools; and WHEREAS, it will only get more expensive to build a library that meets current earthquake safety standards, as construction costs continue to rise, and the City does not have the funds available to build a library that meets current earthquake safety standards; and WHEREAS, on August 4, 2008, the City Council adopted, by a two-thirds vote of all its members, a resolution entitled "Resolution of the City Council of the City of Gilroy Determining That the Public Interest and Necessity Demand the Acquisition and Development of Certain Municipal Improvements and Their Financing Through the Issuance of General Obligation Bonds (Gilroy Community Library)" (the "Resolution of Necessity"); WHEREAS, in order to provide for the issuance by the City of its general obligation bonds to finance the improvements described in the Resolution of Necessity, it is necessary for the City Council to pass an ordinance ordering the submission of the proposition of incurring bonded indebtedness for such purpose to the qualified voters of the City at a special municipal election; and WHEREAS, the City Council desires to submit said ballot measure to the qualified voters of the City at the regular election to be held in the City on November 4,2008, and to consolidate the bond election with other elections held within the City on that date; -1- \JH\766570.7 072908-D4706083 ORDINANCE NO. 2008-10 THE CITY COUNCIL OF THE CITY OF GILROY DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Call for Election. The City Council hereby orders that there be submitted to the qualified voters of the City a proposition on incurring a bonded debt (the "Bonds") for the purpose set forth in this Resolution, at the regular election to be held on November 4, 2008. Section 2. Ballot Proposition. The City Council hereby submits to the qualified voters of the City, at the regular election to be held on November 4, 2008, a proposition on issuing the Bonds in substantially the following form: GILROY LIBRARY EARTHQUAKE SAFETY MEASURE. "To replace the overcrowded, outdated Gilroy Library building, with a larger Library that meets current earthquake safety standards, located near public transit, City Hall and the Senior Center; provide services for a growing population; accommodate double the number of library books and materials; shall the City of Gilroy issue 37 million dollars in general obligation bonds at legal interest rates, subject to independent audit and citizens oversight with no money for administrators' salaries?" Section 3. Object and Purpose of Bonds. The object and specific single purpose of issuing the Bonds is the acquisition, construction and improvement of facilities to be used as a public library (the "Gilroy Community Library Facilities"), and the proceeds of the Bonds may only be applied to that purpose. Section 4. Estimated Cost of Gilroy Community Library. The estimated cost of the Gilroy Community Library Facilities is $37 Million Dollars. The estimated cost includes legal or other fees, and other costs and expenses, which are incidental to or connected with the authorization, issuance and sale of the Bonds. Section 5. Principal Amount of Bonds. The amount of the principal of the Bonds shall not exceed $37 Million Dollars. Section 6. Maximum Interest Rate. The maximum rate of interest to be paid on the Bonds shall be 12% per annum. Section 7. Issuance and Sale of Bonds. The City proposes to acquire, construct and develop the Gilroy Community Library Facilities and 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 of all qualified voters voting on the proposition set forth above vote in favor thereof. The Bonds will be general obligations of the City payable from and secured by taxes levied and collected in the manner prescribed by laws of the State of California. All of the Bonds are to be equally and ratably secured, without priority, by the taxing power of the City. \JH\766570.7 072908-04706083 -2- Section 8. Consolidation; Manner of Conducting Election. The City has previously called a special municipal election by Resolution No. 2008-29, dated June 16,2008, for a ballot measure proposing a City Charter amendment. A bond election now is hereby called for November 4, 2008, and is hereby ordered consolidated with any other election to be held within the City on said date. The election 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 as specified herein. The Board of Supervisors of Santa Clara County and the Santa Clara County Clerk, Elections Division, are hereby requested to order the consolidation of the municipal election hereby called with any other election to be held within the City on said date. The City Council hereby adopts the provisions of subdivision (a) of Section 9285 of the California Elections Code. Section 9. 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 charged with conducting the election. Section 10. Accountability Requirements. In accordance with Sections 53410 and 53411 of the California Government Code, the City Council hereby adopts the following accountability requirements relating to the Bonds: (a) A separate account shall be created and held by the City, into which the proceeds of the Bonds are deposited. (b) The chief fiscal officer of the City shall file a report with the City Council no later than January 1,2009, and at least once a year thereafter, showing the amount of Bond proceeds collected and expended, and the status of the project to be financed from the proceeds ofthe Bonds. Section 11. Publication of Ordinance. This Ordinance shall be published once a day for at least 7 days in a newspaper published at least 6 days a week in the City, or once a week for 2 weeks in a newspaper published less than 6 days a week in the City. The first of said publications shall, in either event, be within 15 days after the adoption of this Ordinance. Section 12. Effective Date. The City is a municipal corporation in the County of Santa Clara, organized and existing under and by virtue of the laws of the State of California, and operating under a Charter adopted pursuant to the provisions of the Constitution of the State of California. Pursuant to City Charter Sections 601 and 608, this Ordinance shall become effective immediately upon its adoption. This Ordinance shall take effect upon its adoption by two-thirds of all members of the City Council of the City. \JH\766570.7 072908-D4706083 -3- The foregoing ordinance was introduced and adopted at a regular meeting of the City Council held on August 4, 2008, by the following vote: AYES: ARELLANO, BRACCO, DILLON, GARTMAN, TUCKER, WOODWARD and PINHEIRO NOES: NONE ABSENT: NONE ~. ~Pinheiro, Mayor City of Gilroy ATTE~: I . I I J ' \JH\766570.7 07290B-D4706083 -4- I, SHA WNA FREELS, City Clerk of the City of Gilroy, do hereby certify that the attached Ordinance No. 2008-10 is an original ordinance, or true and correct copy of a city ordinance, duly adopted by the Council of the City of Gilroy at a regular meeting of said Council held on the 4th day of August, 2008, at which meeting a quorum was present. IN WITNESS WHEREOF, I have hereunto set my hand and affixed the Official Seal of the City of Gilroy this 5th day of August, 2008. S awna Freels, CMC City Clerk of the City of Gilroy (Seal)