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HomeMy WebLinkAbout24 Res Nos. 2021-22, 2021-23 and Ord No. 1365 - Election & Levy STAFF REPORT CITY OF PALM DESERT FINANCE DEPARTMENT MEETING DATE: May 13, 2021 PREPARED BY: Veronica Tapia, Senior Management Analyst REQUEST: Adopt Resolution Nos. 2021-22 and 2021-23, 1) A Resolution Calling A Special Election Within City of Palm Desert Community Facilities District No. 2021-1 (University Park), and 2) A Resolution Declaring the Results of a Special Election in City of Palm Desert Community Facilities District No. 2021-1 (University Park) and Directing the Recording of a Notice of Special Tax Lien; and 3) Conduct the First Reading of Ordinance No. 1365, an Ordinance of the City Council of the City of Palm Desert acting in its capacity as the legislative body of City of Palm Desert Community Facilities District No. 2021-1 (University Park) authorizing the levy of a special tax within that district. ________________________________________________________________ Recommendation That the City Council 1) Waive further reading and adopt Resolution No. 2021-22, a resolution of the City Council of the City of Palm Desert calling a special election within City of Palm Desert Community Facilities District No. 2021-1 (University Park); and A. That the City Clerk, who has received from the sole qualified landowner elector within CFD 2021-1 a Consent and Waiver waiving the timelines under the California Elections Code (among other things) and consenting to a special election to be held on any date on or after the close of the April 22, 2021 public hearing, conduct an election in connection with CFD 2021-1. A qualified elector within the district receives one vote per acre or portion thereof that it owns within CFD 2021-1. B. That if more than a 2/3 vote in favor of the ballot propositions is received, following the results of the election, Council makes a finding and declaration of the results of the special election by approving the following resolution: 2) Waive further reading and adopt Resolution No. 2021-23, a resolution of the City Council of the City of Palm Desert declaring the results of a special election in City May 13, 2021 - Staff Report Adopt Resolution No. 2021-22 Calling a Special Election for CFD 2021-1 Adopt Resolution No. 2021-23 Declaring Results of Special Election & Directing Lien Recordation Introduce Ordinance No. 1365 CFD 2021-1 Authorizing Levy of Special Tax Page 2 of 4 W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\01 Staff Report - Adopt Resolution Calling Special Election_Declaring Results and Levy Tax UPI 5.13.21.docx of Palm Desert Community Facilities District No. 2021-1 (University Park) and directing the recording of a notice of special tax lien; and 3) That City Council introduce and conduct its first reading of Ordinance No. 1365 authorizing the levy of the special tax within City of Palm Desert Community Facilities District No. 2021-1 (University Park). Strategic Plan Approval of the attached resolutions supports the Land Use, Housing and Open Space Priority 2 by taking the next steps for a funding mechanism to assist in financing further development of University Park. Executive Summary University Park Investor, LLC (“UPI”) has requested that the City form a new Mello-Roos Community Facilities District (CFD) to be known as City of Palm Desert Community Facilities District No. 2021-1 - University Park (“CFD 2021-1”) and implement a coordinated plan of refunding consisting of the issuance of CFD 2021-1 Bonds and the refunding of the existing City of Palm Desert 2005-1 - University Park (“CFD 2005-1”) Bonds for special tax savings to all the property owners in the CFD. UPI has also requested that the City include authorization for the CFD 2021-1 bonds to finance additional facilities required as conditions of its development. The election, including approval of the two election-related resolutions, and approval of the Ordinance are all necessary steps to complete the authorization of the CFD 2021-1 special tax and special tax bonds and to facilitate the public financing needs of the development. Background CFD 2005-1 issued two series of debt in 2006 and 2007 with a combined par amount of $67.915 million. The repayment of that debt is a burden that is carried by the property owners within the boundaries of CFD 2005-1. At the time of issuance, it was anticipated that the properties would be developed with a mix of residential, commercial, office, and open space. Due to timing, market conditions and subsequent market downturn, the property within CFD 2005-1 has been slow to develop following formation of CFD 2005-1, with significantly more property currently remaining undeveloped in CFD 2005-1 than having completed development. UPI presently owns 165.661 acres within CFD 2005-1 and is now actively engaged in the development process, while also determining the best way to fund the necessary public improvements. May 13, 2021 - Staff Report Adopt Resolution No. 2021-22 Calling a Special Election for CFD 2021-1 Adopt Resolution No. 2021-23 Declaring Results of Special Election & Directing Lien Recordation Introduce Ordinance No. 1365 CFD 2021-1 Authorizing Levy of Special Tax Page 3 of 4 W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\01 Staff Report - Adopt Resolution Calling Special Election_Declaring Results and Levy Tax UPI 5.13.21.docx By a Petition submitted to the City in February 2021, UPI formally initiated the process under the Mello-Roos Act, as amended, commencing with Section 53311 of the California Government Code, to form CFD 2021-1 encompassing UPI’s property within University Park and for CFD 2021-1 to issue bonds to finance public facilities costs related to the development of UPI’s property. On March 11, 2021, the City Council approved two Resolutions of Intention: (i) a Resolution of Intention to establish CFD 2021-1 and authorize the levy of a special tax therein, and (ii) a Resolution of Intention to incur bonded debt within CFD 2021-1. On April 22, 2021, a public hearing was held to take testimony from the public for or against the establishment of the District, the extent of the District, the specified types of public facilities to serve the District, the proposed rate and method of apportionment of the special tax, and the incurrence of bonded indebtedness. Following the close of the public hearing with no majority protest, the City Council approved two resolutions: a Resolution to Establish CFD 2021-1 and authorize the levy of a special tax therein (subject to approval by the qualified electors of CFD 2021-1), and a Resolution declaring the necessity to incur bonded debt within CFD 2021-1. In accordance with California law, these resolutions determined to submit propositions to authorize the special tax levy and the bonded debt of CFD 2021-1 to the qualified electors within CFD 2021-1 for an election to be called and held on May 13, 2021. Approval of the attached Resolutions would call the Special Election to be held on May 13, 2021 and declare the results of the Special Election. Upon certification by the Acting City Clerk and a determination that at least two-thirds of the votes cast are in favor of the propositions submitted, the City Clerk must record a notice of special tax lien within 15 days of the landowner election, and the City Council, acting in its capacity as legislative body of CFD 2021-1, is authorized to levy the special tax on the land within CFD 2021-1 by adoption of the attached Ordinance and take steps to issue one or more series of bonds in an amount not to exceed $50,000,000. Approval of the resolutions will meet the requirements of the Mello-Roos Act and continue the process for formation of the district and the issuance of bonds. The next step in this process includes the Second Reading of the Special Tax Levy Ordinance on May 27th, and the approval of financing documents in June. May 13, 2021 - Staff Report Adopt Resolution No. 2021-22 Calling a Special Election for CFD 2021-1 Adopt Resolution No. 2021-23 Declaring Results of Special Election & Directing Lien Recordation Introduce Ordinance No. 1365 CFD 2021-1 Authorizing Levy of Special Tax Page 4 of 4 Fiscal Analvsis The costs of formation of CFD 2021-1 and issuance of the Refunding Bonds will be included and are eligible to be paid from proceeds of the Refunding Bonds, if and when issued. If the Refunding Bonds are not issued, any non-contingent costs will be paid by the developer pursuant to its deposit and reimbursement agreement with the City. The savings generated by the refunding will benefit the property owners within CFD 2021- 1 and provide capacity for CFD 2021-1 to finance the required public improvements for the development. LEGAL REVIEW 1�i'L�9 William L Strausz Bond Counsel DEPT. REVIEW �a.,,Gf'?'�9. "l'�'Iooxr. Janet M Moore Director of Finance FINANCIAL REVIEW �aauv�?'�%. ?'yloau ASSISTANT CITY MANAGER ✓lr�dy %'trestine L Todd Hileman, City Manager L. TOdd I-ti.I,CvKGiw ATTACHMENTS: Resolution No. 2021-22 Resolution No. 2021-23 Ordinance No. 1365 Janet M. Moore Director of Finance CITY COUNCILACTION APPROVED � DF.Nii�T� CEiVED �1THEF kcl 2es N[� .; �i1�9.1 � J,a.9.�o,�.1 3.3 a�xl (�ni l� l�5 k�s5ed Fr 3.� Rc��-. MEET G DA'�E ��`�' l'�— �Gz� I AYES:��n�k , "T(X1QNlfun .hl�-tr�rvf�' (j�(tYtnlll�, 4-Kel I��_ NOES: ��-`�� ABSEN'lti ���- ABSTAIN• �E- VERIFIED BY• 1���� Ori�ival on File wit6 City Cicrk's Office Andy Firestine Assistant City Manager W:\StaR Repotls � Sha�eO 2\StaR Repohs 05-03-2021\4 -G�y Qe�k - 05-032021@4 - 2- Resolulions Slafl Repotl on Election and Levy\01 $IaX Repotl - Atlop� Resolulian CalLng Speaal Election_Declaring Resulls antl Levy Tax UPI 5 1321.tlocx � - 1 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\02 Resolution Calling Special Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX RESOLUTION NO. 2021-22 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT CALLING A SPECIAL ELECTION WITHIN CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) RECITALS: WHEREAS, on April 22, 2021, this 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 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”), ordering the formation of the City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”), establishing an appropriations limit for the District and authorizing levy of a special tax (the “Special Tax”) on property within the District, subject to approval of the qualified electors of the District at a special election referred to below, pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the “Act”); and WHEREAS, on April 22, 2021, this City Council also adopted a resolution entitled “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)” (the “Resolution of Necessity to Incur Bonded Indebtedness”), determining the necessity to incur bonded indebtedness in the maximum aggregate principal amount of $50,000,000; and WHEREAS, pursuant to the provisions of said resolutions, the propositions of the levy of said Special Tax, the establishment of the appropriations limit and the incurring of the bonded indebtedness will be submitted to the qualified electors of the District as required by the Act. 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. Ballot Propositions. Pursuant to Sections 53325.7, 53326, 53351, and 53353.5 of the Act, the proposition relating 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 together with the proposition for the establishment of the appropriations limit, shall be submitted to the qualified electors of the District as required by the Act. RESOLUTION NO. 2021-22 - 2 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\02 Resolution Calling Special Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX If (a) the combined proposition for the levy of the Special Tax and the incurring of the bonded indebtedness and (b) the proposition for the establishment of the appropriations limit each receive the approval of more than two-thirds of the votes cast on the proposition, one or more series of bonds may be authorized, issued and sold for the purposes set forth herein, the Special Tax may be levied, and the appropriations limit may be established as provided for in the Resolution of Formation. The ballot propositions shall be in the form attached hereto as Exhibit “A” and by this reference incorporated herein, and said form of ballot is hereby approved. Section 3. Electors Determined. The City Council finds, based on information provided by the Registrar of Voters of the County of Riverside, that fewer than 12 registered voters have been registered to vote within the territory of the District for each of the 90 days preceding the close of the public hearing heretofore conducted and concluded by the City Council for the purposes of these proceedings. Accordingly, and pursuant to Section 53326 of the Act, the City Council finds that for purposes of these proceedings the qualified electors are the landowners within the District. Each landowner shall have one vote for each acre or portion thereof that he or she owns within the District, as provided in Section 53326 of the Act. The City Council finds that there is one (1) qualified elector in the District. Section 4. Election. This City Council hereby calls a special election to consider the propositions described in Section 2 above, which election shall be held on May 13, 2021 in the City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California 92260, immediately following adoption of this Resolution. The City Clerk is hereby designated as the official to conduct said election. It is hereby acknowledged that the City Clerk has on file a copy of this Resolution and a map of the boundaries of the District. The voted ballots shall be returned to the City Clerk immediately following adoption of this Resolution, but in any event no later than 8 p.m. on May 13, 2021, and when the sole qualified elector has voted, but not later than 8 p.m. on May 13, 2021, the election shall be closed. Section 5. Mail Ballot. Pursuant to Section 53327 of the Act, the election shall be conducted by mail ballot in accordance with the California Elections Code. This City Council hereby finds that paragraphs (a), (b), (c)(1), and (c)(3) of Section 4000 of the California Elections Code are applicable to this special election. Section 6. Ballot. This City Council acknowledges that the City Clerk has caused to be delivered to the sole qualified elector of the District a ballot in the form set forth in Exhibit “A” hereto. The ballot was accompanied by all supplies and written instructions necessary to the use and return of the ballot. The envelope to be used to return the ballot was enclosed with the ballot, had the return postage prepaid, and contained the following: (a) the name and address of the landowner, (b) a declaration, under penalty of perjury, RESOLUTION NO. 2021-22 - 3 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\02 Resolution Calling Special Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX stating that the voter is owner of record or authorized representative of the owner of record entitled to vote and is the person whose name appears on the envelope, (c) the printed name, signature and address of the voter, (d) the date of signing and place of execution of the declaration pursuant to clause (b) above, and (e) a notice that the envelope contains an official ballot and is to be opened only by the canvassing board. Analysis and arguments with respect to the ballot measures have been waived by the sole qualified elector, by unanimous written consent waiving all applicable time limits and requirements pertaining to the conduct of said special election, as permitted by Section 53327 of the Act. The City Council hereby concurs in said waiver. Section 7. Return of Ballots. The City Clerk shall accept the ballot of the sole qualified elector in the City Council Chambers upon and prior to the adoption of this Resolution, whether said ballot be personally delivered or received by mail. The City Clerk shall have available a ballot which may be marked at said location on the election day by said qualified elector. Section 8. Waiver of Time Limits for Election. This City Council hereby further finds that the provision of Section 53326 of the Act requiring a minimum of 90 days following the adoption of the resolution calling the election to elapse before said special election is for the protection of the qualified electors of the District. The unanimous written consent of the sole qualified elector of the District waiving all applicable time limits and requirements pertaining to the conduct of said special election has been received. Accordingly, this City Council finds and determines that said qualified elector have been fully apprised of and have agreed to the shortened time for the election and have thereby been fully protected in these proceedings. This City Council also finds and determines that the City Clerk has concurred in the shortened time for the election. Section 9. Publication. The City Clerk is hereby directed to cause to be published in a newspaper of general circulation circulating within the area of the District a copy of the Resolution of Necessity to Incur Bonded Indebtedness as required by Section 53352 of the Act. Section 10. Effective Date. This Resolution shall take effect immediately upon adoption. RESOLUTION NO. 2021-22 - 4 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\02 Resolution Calling Special Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this 13th day of May, 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Kathleen Kelly, Mayor ATTEST: ________________________________ M. Gloria Sanchez, Acting City Clerk City of Palm Desert, California W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\02 Resolution Calling Special Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX A-1 EXHIBIT “A” OFFICIAL BALLOT SPECIAL ELECTION City of Palm Desert Community Facilities District No. 2021-1 (University Park) This ballot is for a special landowner election. You must return this ballot in the enclosed postage paid envelope to the office of the City Clerk of the City of Palm Desert no later than 8 p.m. on May 13, 2021, either by mail or in person. The City Clerk’s office is located at 73-510 Fred Waring Drive, Palm Desert, California, 92260. This ballot represents votes. To vote, mark a cross (X) in the voting square after the word “YES” or after the word “NO”. All marks otherwise made are forbidden. All distinguishing marks are forbidden and make the ballot void. If you wrongly mark, tear, or deface this ballot, return it to the City Clerk of the City of Palm Desert and obtain another. PROPOSITION A: Shall the City of Palm Desert, on behalf of City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”), subject to the accountability measures provided in the resolutions 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 “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)” (the “Resolution of Necessity”), incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal amount of $50,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds, to finance the facilities and incidental expenses described in the Resolution of Formation and the Resolution of Necessity; and shall a special tax with a rate and method of apportionment as provided in the Resolution of Formation and the Resolution of Necessity be levied annually on lands within the District to pay for the facilities, incidental expenses, and other purposes described in the Resolution of Formation and the Resolution of Necessity, including the payment of principal and interest on bonds issued to finance the facilities, incidental expenses, and the costs of the City of Palm Desert in administering the District? Yes No PROPOSITION B: Shall City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) establish an Article XIIIB appropriations limit for the District at an amount equal to all the proceeds of the special tax collected annually within the District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population? Yes No [This page has intentionally been left blank.] -1- W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\03 Resolution Declaring Results of Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX RESOLUTION NO. 2021-23 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING THE RESULTS OF A SPECIAL ELECTION IN CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021- 1 (UNIVERSITY PARK) AND DIRECTING THE RECORDING OF A NOTICE OF SPECIAL TAX LIEN RECITALS: WHEREAS, in proceedings heretofore conducted by the City Council of the City of Palm Desert (the ”City Council”) pursuant to the Mello-Roos Community Facilities Act of 1982, as amended, Chapter 2.5 of Part 1 of Division 2 of Title 5, commencing with Section 53311, of the California Government Code (the “Act”), the City Council adopted on May 13, 2021 a resolution entitled “A Resolution of the City Council of the City of Palm Desert Calling a Special Election Within City of Palm Desert Community Facilities District No. 2021-1 (University Park)” (the “Resolution Calling Election”), calling for a special election (the “Special Election”) of the qualified electors within Community Facilities District No. 2021-1 (University Park) (the “District”); and WHEREAS, pursuant to the terms of said resolution, which are by this reference incorporated herein, the Special Election was held on May 13, 2021, and the City Clerk has on file a Certificate of the City Clerk as to the Results of the Canvass of the Election Returns (the “Certificate”), a copy of which is attached hereto as Exhibit “A” and by this reference incorporated herein; and WHEREAS, this City Council has reviewed said Certificate and hereby approves it. 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. Ballot Propositions. The issues presented at the Special Election were Propositions A and B, as set forth in Exhibit “B” attached hereto and by this reference incorporated herein. Section 3. Election Results. The results of the Special Election are as set forth in the Certificate on file with the City Clerk and attached hereto as Exhibit “A”. Pursuant to the Certificate, Propositions A and B presented at the Special Election were approved by more than two-thirds of the votes cast by the qualified electors of the District. Section 4. Ballot Propositions Authorized. This City Council, acting in its capacity as legislative body of the District, is hereby authorized to levy on the land within the District the special tax described in Proposition A for the purposes described therein, to take the necessary steps to levy the special tax authorized by Proposition A, and to issue one or more series of bonds in an amount not to exceed $50,000,000 as specified RESOLUTION NO. 2021-23 -2- W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\03 Resolution Declaring Results of Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX in Proposition A. The appropriations limit as specified in Proposition B is hereby established. Section 5. Finding of Validity. It is hereby found that all prior proceeding and actions taken by this City Council with respect to the District were valid and in conformity with the Act. Section 6. Notice of Special Tax Lien. The City Clerk is hereby directed to record in the office of the County Recorder of the County of Riverside within fifteen (15) days of the date hereof a notice of special tax lien with respect to the District in substantially the form required by California Streets and Highways Code Section 3114.5. Section 7. 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 13th day of May, 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Kathleen Kelly, Mayor ATTEST: ________________________________ M. Gloria Sanchez, Acting City Clerk City of Palm Desert, California A-1 W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\03 Resolution Declaring Results of Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX EXHIBIT "A" CERTIFICATE OF THE CITY CLERK AS TO THE RESULTS OF THE CANVASS OF THE ELECTION RETURNS CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021-1 (UNIVERSITY PARK) I, M. Gloria Sanchez, Acting City Clerk of the City of Palm Desert, hereby certify that I canvassed the returns of the Special Election in the City of Palm Desert Community Facilities District No. 2021-1 (University Park) and that the election was held in the Chambers of the City Council at 73-510 Fred Waring Drive, Palm Desert, California, 92260 on May 13, 2021. I further certify that the total number of ballots cast in said election and the total number of votes cast for and against Propositions A and B are full, true and correct: Qualified Eligible Voters Votes Cast Yes No Proposition A Proposition B IN WITNESS WHEREOF, I HAVE HEREUNTO SET MY HAND this 13th day of May, 2021. By:_____________________________ M. Gloria Sanchez Acting City Clerk City of Palm Desert B-1 W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\03 Resolution Declaring Results of Election (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX EXHIBIT "B" PROPOSITION A: Shall the City of Palm Desert, on behalf of City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”), subject to the accountability measures provided in the resolutions 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 “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)” (the “Resolution of Necessity”), incur an indebtedness and issue one or more series of bonds in the maximum aggregate principal amount of $50,000,000, with interest at a rate or rates not to exceed the maximum interest rate permitted by law at the time of sale of such bonds, to finance the facilities and incidental expenses described in the Resolution of Formation and the Resolution of Necessity; and shall a special tax with a rate and method of apportionment as provided in the Resolution of Formation and the Resolution of Necessity be levied annually on lands within the District to pay for the facilities, incidental expenses, and other purposes described in the Resolution of Formation and the Resolution of Necessity, including the payment of principal and interest on bonds issued to finance the facilities, incidental expenses, and the costs of the City of Palm Desert in administering the District? PROPOSITION B: Shall City of Palm Desert Community Facilities District No. 2021-1 (University Park) (the “District”) establish an Article XIIIB appropriations limit for the District at an amount equal to all the proceeds of the special tax collected annually within the District and as defined by Article XIIIB of the California Constitution, as adjusted for changes in the cost of living and changes in population? - 1 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\04 Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX ORDINANCE NO. 1365 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2021- 1 (UNIVERSITY PARK) AUTHORIZING THE LEVY OF A SPECIAL TAX WITHIN THE DISTRICT 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 (collectively, the “Facilities”); 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 ORDINANCE NO. 1365 - 2 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\04 Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX 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 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, subsequent to the public hearing, the City Council also adopted a resolution entitled “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)” which determined the necessity to incur bonded indebtedness in the maximum principal amount of $50,000,000; and WHEREAS, on May 13, 2021, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Palm Desert Calling a Special Election within City of Palm Desert Community Facilities District No. 2021-1 (University Park)” (the “Resolution Calling a Special Election”) which called a special election of the qualified electors of the District; and WHEREAS, pursuant to the terms of the Resolution Calling a Special Election, an election was held within the District at which the sole qualified elector of the District approved the establishment of an appropriations limit for the District, the incurrence of bonded indebtedness, and the levy of a special tax within the District; and WHEREAS, on May 13, 2021, the City Council adopted a resolution entitled “A Resolution of the City Council of the City of Palm Desert Declaring the Results of a Special Election in City of Palm Desert Community Facilities District No. 2021-1 ORDINANCE NO. 1365 - 3 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\04 Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX (University Park) and Directing the Recording of a Notice of Special Tax Lien,” which certified the results of the on May 13, 2021 election conducted by the City Clerk, which results showed that more than two-thirds of the votes cast in the District were in favor of the proposition to establish an appropriations limit for the District, incur bonded indebtedness and levy the special tax. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Recitals. The above recitals are all true and correct. Section 2. Authorization of Levy of Special Tax. By passage of this Ordinance, the City Council authorizes the levy of a special tax within the District at the maximum rates and in accordance with the Rate and Method set forth in Exhibit “B” to the Resolution of Formation which is on file in the office of the City Clerk and incorporated herein by reference. Section 3. Annual Rate Determination. The City Council is hereby further authorized to determine on or before August 10 of each year, or such other date as is established by law or by the County Auditor-Controller of the County of Riverside, the specific special tax to be levied on each parcel of land in the District, except that the special tax rate to be levied shall not exceed the maximum rates set forth in the Rate and Method, but the special tax may be levied at a lower rate. Section 4. Exemption of Government Property. Properties or entities of the state, federal, or other local governments shall be exempt from the above-referenced and approved special tax only to the extent set forth in the Rate and Method, and otherwise shall be subject to tax consistent with the provisions of Section 53317.3 and 53317.5 of the Act. Section 5. Use of Collections. All of the collections of the special tax shall be used only as provided for in the Act and in the Resolution of Formation. The special tax shall be levied only so long as needed for its purpose as described in the Resolution of Formation. Section 6. Collection. The special tax shall be collected in the same manner as ordinary ad valorem taxes and shall be subject to the same penalties and the same procedure, sale and lien in any case of delinquency as applicable for ad valorem property taxes; provided, however, that the special tax may be collected by direct billing by the City of the property owners in the District or in such other manner as may be provided by the City Council. In addition, the provisions of Section 53356.1 of the Act shall apply to any delinquent special tax payments. Section 7. Authorization. The specific authorization for adoption of this Ordinance is the provisions of Section 53340 of the Act. Section 8. Severablility. If for any reason any portion of this Ordinance is found to be invalid, or if the special tax is found inapplicable to any particular parcel ORDINANCE NO. 1365 - 4 - W:\Staff Reports - Shared 2\Staff Reports 05-13-2021\4 -City Clerk - 05-13-2021\24 - 2 - Resolutions Staff Report on Election and Levy\04 Ordinance Authorizing Levy of Special Tax (Palm Desert CFD 2021-1 Univ Park) 5.13.21.DOCX within the District, by a Court of competent jurisdiction, that balance of this Ordinance, and the application of the special tax to the remaining parcels within the District shall not be affected. Section 9. Certification. The City Clerk shall certify to the passage of this Ordinance and cause it to be published or posted in accordance with law. PASSED, APPROVED and ADOPTED by the City Council of the City of Palm Desert, California, on this [27th] day of May, 2021, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ________________________________ Kathleen Kelly, Mayor ATTEST: ________________________________ M. Gloria Sanchez, Acting City Clerk City of Palm Desert, California