HomeMy WebLinkAboutRes 2021-11RESOLUTION NO. 2021-11
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT TO DECLARE THE NECESSITY TO INCUR BONDED
INDEBTEDNESS WITHIN CITY OF PALM DESERT COMMUNITY
FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK)
RECITALS:
WHEREAS, in accordance with a request set forth in a petition signed by
University Park Investor, LLC, the owner of certain of the land proposed for inclusion in a
proposed community facilities district, the City Council (the "City Council") of the City of
Palm Desert, California (the "City"), has previously adopted its Resolution No. 2021-05,
entitled "A Resolution of Intention of the City Council of the. City of Palm Desert to
Establish City of Palm Desert Community Facilities District No. 2021-1 (University Park)
and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities
District No. 2021-1 (University Park)" (the "Resolution of Intention to Establish District")
stating its intention to conduct proceedings 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 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 to pay and
defease a pro rata portion of outstanding Series 2006A Special Tax Bonds issued by, and
secured by the special taxes of, existing City of Palm Desert Community Facilities District
No. 2005-1 (University Park) and refinance the facilities previously financed thereby, all
as more specifically described in the "Resolution of Formation"; and
WHEREAS, the City Council has previously adopted its Resolution No.
2021-06, entitled "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)" (the "Resolution of Intention to Incur Bonded
Indebtedness") stating the City Council's intention, acting as the legislative body of the
District, to authorize the issuance and sale of one or more series of bonds for the District
in maximum aggregate principal amount of $50,000,000 to finance the cost of Facilities;
and
WHEREAS, the Resolution of Intention to Establish District and Resolution
of Intention to Incur Bonded Indebtedness set April 22, 2021 as the date of a public
hearing on the establishment of the District, the extent of the District, the furnishing of
Facilities to meet increased demands on infrastructure as a result of development in the
District, the proposed rate and method of apportionment of the special tax within the
District (the "Rate and Method"), and the proposed debt issue; and
WHEREAS, a notice of the public hearing was published and mailed to all
landowners proposed to be included in the District pursuant to the Act; and
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CFD 2021-1 Univ Park) 4.22.21 rev 4.7.21.docx
RESOLUTION NO. 2021-11
WHEREAS, prior to the date of the public hearing there was filed with the
City Council a report containing a description of the facilities necessary to adequately
meet the needs of the District and an estimate of the cost of financing such facilities as
required by Section 53321.5 of the Act (the "Report"); and
WHEREAS, at the public hearing, all persons desiring to be heard on all
matters pertaining to the establishment of the District, the extent of the District, the
furnishing of Facilities to meet increased demands on infrastructure as a• result of
development in the District, the proposed Rate and Method, and the proposed debt issue
were heard and a full and fair hearing was held; and
WHEREAS, at the public hearing, evidence was presented to the City
Council on the matters before it, and the City Council at the conclusion of the hearing is
fully advised as to all matters relating to the formation of the District, the levy of the special
tax, and the incurrence of bonded indebtedness therein; and
WHEREAS, subsequent to the public hearing, the City Council adopted a
Resolution entitled "A Resolution of Formation of the City Council of the City of Palm
Desert to Establish City of Palm Desert Community Facilities District No. 2021-1
(University Park), to Make Findings Under the California Environmental Quality Act With
Respect Thereto, to Establish an Appropriations Limit Therefor, to Authorize the Levy of
a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and
the Levy of a Special Tax to the Qualified Electors Thereof" (the "Resolution of
Formation"); and
WHEREAS, no written protests with respect to the matters material to the
questions set forth in the Resolution of Intention to Incur Bonded Indebtedness have been
filed with the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM
DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS:
Section 1. Recitals. The above recitals are all true and correct.
Section 2. Necessary to Incur Bonded Indebtedness. The City Council
hereby declares that it is.necessary to incur a bonded indebtedness for the District in an
aggregate principal amount not to exceed $50,000,000 as authorized under the terms
and provisions of the Act.
Section 3. Purpose. The bonded indebtedness will be incurred for the
purpose of financing the costs of the Facilities, as provided in the Resolution of Formation
including, but not limited to, the financing of the costs associated with the issuance of the
bonds and all other costs necessary to finance the Facilities which are permitted to be
financed pursuant to the Act.
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Indebtedness (Palm Desert CFD 2021-1 Univ Park) 4.22.21 rev 4.7.21.docx
RESOLUTION NO. 2021-11
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Section 4. Special Tax. The whole of the property within the District,
other than property exempted from the special tax pursuant to the provisions of the Rate
and Method set forth in Exhibit "B" to the Resolution of Formation, shall pay for the bonded
indebtedness through the levy of the special tax. The special tax is to be apportioned in
accordance with such Rate and Method.
Section 5. 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 $50,000,000, bearing interest
payable annually or semi-annually, or in part annually and in part semiannually, at a
maximum interest rate of twelve percent (12%) per annum or such rate not in excess of
the maximum rate permitted by law at the time the bonds are issued; provided the first
interest payment may be for a period of Tess than six months, and the actual rate or rates
and times of payment shall be determined at the time or times of sale. 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 6. Accountability Measures. Pursuant to and in compliance with
the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of
Division 2 of Title 5 of the Government Code, the City Council, hereby establishes the
following accountability measures pertaining to any bonded indebtedness incurred by or
on behalf of the District:
(a) Such bonded indebtedness shall be incurred for the, specific
purposes set forth in Section 3 above.
(b) The proceeds of any such bonded indebtedness shall be applied only
to the specific purposes identified in Section 3 above.
(c) The document or documents establishing the terms and conditions
for the issuance of any such bonded indebtedness shall provide for the creation of an
account or accounts into which the proceeds of such indebtedness shall be deposited.
(d) The City Manager, or his or her designee, acting for and on behalf of
the District, shall annually file a report with the City Council as required by Government
Code Section 53411.
Section 7. Election. The proposition related to the incurring of the
bonded indebtedness and the proposition relating to the levy of the special tax shall be
combined into one ballot proposition, and shall be submitted to the qualified voters of the
District, together with a proposition to establish an appropriations limit for the District. The
election shall be held on May 13, 2021, in the City Council Chamber, 73-510 Fred Waring
Drive, Palm Desert, California 92260. Pursuant to Section 53327 of the Act, the election
shall be conducted by mail ballot in accordance with the California Elections Code and
the voted ballots shall be returned to the City Clerk immediately following adoption of a
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RESOLUTION NO. 2021-11
resolution calling the special election, but in any event no later than 8 p.m. on May 13,
2021. The election shall be closed when the qualified electors have voted, but not later
than 8 p.m. on May 13, 2021.
Section 8. Effective Date. This Resolution shall take effect immediately
upon adoption.
PASSED, APPROVED and ADOPTED by the City Council of the City of
Palm Desert, California, on this 22nd day of April, 2021, by the following vote, to wit:
AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ATTEST:
/fl444 )49
M. GLO IA S FiEZ,/ ING CITY CLERK
CITY 0( ALM DESET, ALIFORNIA
(cuts.J.pq eae-La
KATHLEE ELLY,IIAY
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