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HomeMy WebLinkAboutRes 2021-061 1 1 RESOLUTION NO. 2021-06 A RESOLUTION OF INTENTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT TO INCUR BONDED INDEBTEDNESS WITHIN PROPOSED CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) RECITALS: WHEREAS, the City Council (the "City Council") of the City of Palm Desert, (the "City"), upon receipt of a petition as provided in Government Code Section 53318, has heretofore adopted Resolution No. 2021-05 (the "Resolution of Intention"), stating the City Council's intention to form City of Palm Desert Community Facilities District No. 2021- 1 (University Park) (the "District"), pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act"), to finance certain facilities described therein and summarized as follows (collectively, the "Facilities"): the acquisition, purchase, construction, expansion, improvement, modification, or rehabilitation of certain public facilities necessary to meet the increased demands placed upon the public infrastructure, the City, and the Coachella Valley Water District as a result of the development of the property within the boundaries of the District, including development impact fees therefor, and the prepayment of special taxes levied by City of Palm Desert Community Facilities District No. 2005-1 (University Park) ("CFD 2005-1") and those facilities previously financed by CFD 2005-1 and proposed to be refinanced by such special tax prepayment; and including incidental expenses to be incurred in financing the Facilities and forming and administering the District; all as further provided in the Resolution of Intention and in Exhibit A hereto and incorporated herein by reference; and WHEREAS, the City Council estimates that the amount required to finance the Facilities is $50 million; and WHEREAS, in order to finance the Facilities it is necessary to incur bonded indebtedness on behalf of the District in the amount not to exceed $50 million, the repayment of which is to be secured by special taxes levied in accordance with Section 53340 et seq. of the Act on all non-exempt property within the District; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: Section 1. Bonded Indebtedness. It is necessary to incur bonded indebtedness within the boundaries of the proposed District in an amount not to exceed $50 million to finance the costs of the Facilities, as permitted by the Act. Section 2. Purpose. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities, including, but not limited to, the funding of reserve funds for the bonds, any remarketing, credit enhancement and liquidity facility fees (including such fees for instruments which serve as the basis of a reserve fund in lieu of cash), financing of the costs associated with the issuance of the bonds, and all W.4Staff Reports - Shared 21Staff Reports 3-11-202114 -Cdy Clerk - 03-11-2021413 UPI Refunding104 Reso of Intention to Incur Bonded Indebtedness (Palm Desert Univ Park CFD 2021-1) 3.11.21 Final.DOCX RESOLUTION NO. 2021-06 other costs necessary to finance the Facilities which are permitted to be financed pursuant to the Act. Section 3. Terms. It is the intent of the City Council, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds in the maximum aggregate principal amount of $50 million, bearing interest payable semi-annually or in such other manner as this City Council shall determine, at a maximum interest rate of twelve (12%) percent per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued. The term of the bonds of each series shall be determined pursuant to a resolution of the City Council authorizing the issuance of such series, but such term shall in no event exceed forty (40) years from the date of issuance of such series of bonds or such longer term as is then permitted by law. Section 4. Hearing. A public hearing on the proposed debt issues (the "Hearing") shall be held on April 22, 2021, at 4:00 p.m., or as soon thereafter as practicable, at the chambers of the City Council of the City of Palm Desert, 73-510 Fred Waring Drive, California 92260. Any interested persons, including all persons owning land or registered to vote within the proposed District, may appear and be heard at the Hearing. Section 5. Voting. The proposition to incur bonded indebtedness in the maximum aggregate principal amount of $50 million shall be submitted to the qualified electors of the District at a special election. Ballots shall be distributed to the qualified electors by mail with return postage prepaid or by personal service. Section 6. Published Notice. The City Clerk is hereby directed to publish a notice of the Hearing and the special bond election ("Notice") pursuant to Section 6061 of the California Government Code in a newspaper of general circulation circulated within the proposed District. Such Notice shall be substantially in the form specified in Section 53346 of the Act. The publication of the Notice shall be completed at least seven (7) days before the date herein set for the Hearing. Section 7. Mailed Notice. The City Clerk is hereby directed to send a copy of the Notice of the Hearing by first-class mail, postage prepaid, to each registered voter and to each landowner within the proposed District as shown on the last equalized assessment roll. Mailing of the Notice shall be completed at least fifteen (15) days prior to the date of the Hearing. Section 8. Effective Date. This Resolution shall take effect immediately upon adoption. -2- W \Staff Reports - Shared 2\Staff Reports 3-11-202114 -City Clerk - 03-11-2021\13 UPI Refunding\04 Reso of Intention to Incur Bonded Indebtedness (Palm Desert Univ Park CFD 2021-1) 3 11.21 Final DOCX RESOLUTION NO. 2021-06 1 1 1 PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this 11th day of March, 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE KATHL N KELLY, MAYOR ATTEST: dee, /- L '9X& GRACE L. ROCHA, ACTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA -3- W \Staff Reports - Shared 21Staff Reports 3-11-2021 4 -City Clerk - 03.11-2021\13 UPI Refunding104 Reso of Intention to Incur Bonded Indebtedness (Palm Desert Univ Park CFD 2021-1) 3.11 21 Final DOCX