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HomeMy WebLinkAboutRes 2021-29RESOLUTION NO. 2021-29 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS INTENTION TO ISSUE REFUNDING BONDS FOR THE SECTION 29 ASSESSMENT DISTRICT (NO. 2004-02); DIRECTING THE PREPARATION OF A REPORT PURSUANT TO SECTION 9523 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE; MAKING OTHER DETERMINATIONS RELATING TO THE REFUNDING; AND DIRECTING OTHER MATTERS RELATING THERETO RECITALS: WHEREAS, the City of Palm Desert (the "City") has heretofore formed the Section 29 Assessment District (No. 2004-02) (the "District") and issued its City of Palm Desert, Section 29 Assessment District (No. 2004-02), Limited Obligation Improvement Bonds, Series 2007 (the "Prior Bonds"), of which $19,830,000 in aggregate principal amount remain outstanding; and WHEREAS, in light of currently favorable market conditions, the City has proposed issuing bonds (the "Refunding Bonds") to refund the Prior Bonds pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds (the "1984 Refunding Act"), as set forth in Division 11.5 (commencing with Section 9500) of the California Streets and Highway Code (the "Code"); and WHEREAS, such refunding will be beneficial to the public as the amounts required for principal and interest payments each year for the Refunding Bonds are expected to be lower than those for the Prior Bonds; and WHEREAS, the City Council of the City (the "City Council") desires to initiate proceedings to issue the Refunding Bonds pursuant to the terms and provisions of the 1984 Refunding 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, and each of them, are all true and correct. Section 2. Finding of Public Interest. Pursuant to Section 9520 of the Code, the City Council hereby finds that public interest requires the refunding of the Prior Bonds, subject to the City Council's review of the Reassessment Report described in Section 4 below. Section 3. Declaration of Intention to Issue Refunding Bonds and Levy Reassessments. Pursuant to Section 9520 of the Code, and subject to the terms and conditions set forth in this Resolution, the City Council hereby declares its intention to (a) issue the Refunding Bonds to refund the remaining outstanding Prior Bonds, and (b) levy -1- W\Staff Reports - Shared 21Staff Reports 06-10-202114 - Clerk 06-10-21123 Res Nos. 2021-29, 2021-30, & 2021-31 - Section 29\02 Resolution Declaring Intention to Issue Refunding Bonds (PD Section 29 Ref Bonds 2021) 6 10 21 rev 5.26.21. DOCX RESOLUTION NO. 2021-29 reassessments (the "Reassessments") against parcels in the District as security for the Refunding Bonds. Section 4. Appointment of Reassessment Enaineer: Preparation of Reassessment Report. The appointment of Willdan Financial Services as the "Reassessment Engineer" in connection with the above -described refunding is hereby approved. The Reassessment Engineer shall prepare and file with the office of the City Clerk a report (the "Reassessment Report") on the estimated Reassessments to be levied upon the issuance of the Refunding Bonds. The Reassessment Report shall contain (a) all of the information required by Section 9523 of the Code to be contained therein, and (b) such additional information as necessary and appropriate to enable the City Council to make a determination on whether the refunding, as proposed, will satisfy the conditions set forth in clauses (1) through (3) of Section 9525(a) of the Code. Section 5. Limited Obliaation of the City. The City shall not be obligated to advance available funds from the City Treasury to cure any deficiency which may occur in the bond redemption funds for the Refunding Bonds. This determination shall be clearly stated in the text of the Refunding Bonds. The designated names of the Refunding Bonds shall include the words "limited obligation refunding improvement bonds." Section 6. Establishment of Special Reserve Funds. Pursuant to Part 16 (commencing with Section 8880) of Division 10 of the Code, there shall be created a special reserve fund for the Refunding Bonds (the "Special Reserve Fund"). The amount of money to be deposited in the Special Reserve Fund (which is not to exceed 10)/0 of the total Reassessments) shall be included in the Reassessments. Section 7. Certain Terms of Refundina Bonds. The Refunding Bonds shall be issued and sold in the manner consistent with the 1984 Refunding Act and the conditions set forth below in this Resolution. Notice is hereby given as follows: (a) The Refunding Bonds shall (i) represent and be secured by unpaid Reassessments, (ii) bear interest at a rate of not exceeding 12 percent per annum, or such other maximum interest rate permitted by law, and (iii) be issued in the manner provided by the 1984 Refunding Act. (b) The last installment of the Refunding Bonds shall mature on September 2nd of a year that is no later than 2037 (i.e., the year of the final maturity for the Prior Bonds). (c) The Refunding Bonds may be issued in the form of serial or term bonds, or a combination thereof. (d) Interest on the Refunding Bonds shall be payable on March 2 and September 2 of each year (each an "Interest Payment Date") during which the Refunding Bonds shall remain outstanding. -2- W \Staff Reports - Shared 2\Staff Reports 06.10-2021\4 - Clerk 06-10-21\23 Res Nos. 2021-29, 2021-30, & 2021-31 - Section 29\02 Resolution Declaring Intention to Issue Reflmding Bonds (PD Section 29 Ref Bonds 2021) 6 1021 rev 5.26 21 DOCX RESOLUTION NO. 2021-29 1 1 1 Section 8. Determinations Regarding Annual Principal and Interest. With respect to the Refunding Bonds, respectively, the City Council hereby determines that the principal amount of Refunding Bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal of such Refunding Bonds. Section 9. Provisions for Redemption. With respect to the Refunding Bonds, the City Council hereby determines as follows: (a) Each Refunding Bond, or any portion thereof in a fixed amount or any integral multiple of the fixed amount, shall be subject to optional redemption in advance of its maturity on any Interest Payment Date upon payment to the registered owner of the principal and accrued interest to the date of redemption, together with a redemption premium. The redemption premium shall be in an amount equal to a percentage (which may be zero percent) of the principal of the Refunding Bonds subject to redemption, as determined in accordance with the resolution(s), indenture(s), fiscal agent agreement(s) or other similar instrument(s) pursuant to which the Refunding Bonds are to be issued; provided, however, that the redemption premium for the first 5 years of the term of the Refunding Bonds shall be in an amount not less than 3 percent of the principal. (b) Notwithstanding the foregoing, to the extent that such Refunding Bonds include one or more term bonds, such term bonds shall be subject to mandatory prior redemption, without premium, through annual sinking fund installments conforming to the requirements of Section 8 of this Resolution. Section 10. Collection of Reassessments and Advance Retirement of Refundina Bonds. Pursuant to Section 8760 of the Code, the City Council hereby proposes to proceed in accordance with Part 11.1 (commencing with Section 8760) of the Code with respect to the collection of the Reassessments and the advance retirement, if any, of the Refunding Bonds. Section 11. Person Desianated to Collect Reassessments. The City Council hereby designates the City Treasurer, or an agent designated by the City Treasurer in writing, to collect and receive the Reassessments. Section 12. Oriainal Assessment to Remain in Effect until Refunding Bonds Issuance. API original assessments levied in the District relating to the Prior Bonds shall continue and remain in full force and effect until the Refunding Bonds have been issued by the City pursuant to the provisions of the 1984 Refunding Act and such original assessments have been superseded and supplanted by the Reassessments. Section 13. Determination Reaardina Monies Remaining in Improvement Fund. The City Council hereby determines that, pursuant to Section 10427 of the Code, -3- W \Staff Reports - Shared 21StaIT Reports 06-10-2021\4 - Clerk 06-10-21\23 Res Nos. 2021-29, 2021-30, & 2021-31 - Section 29\02 Resolution Declaring Intent ton to Issue Refunding Bonds (PD Section 29 Ref Bonds 2021) 6.10 21 rev 5.26 21 DOC X RESOLUTION NO. 2021-29 all monies remaining in the improvement fund with respect to the Prior Bonds, which are approximately $669.83 as of April 23, 2021, are hereby determined to be surplus monies, and the entirety of such remaining monies (plus accrued interest, if any) shall be transferred to the general fund of the City in accordance with, and as further specified in, paragraph (a) of Section 10427 of the Code. Section 14. Other Acts. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to effectuate the purposes of this Resolution and any such actions previously taken by such officers are hereby ratified and confirmed. Section 15. 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 10th day of June, 2021, by the following vote, to wit: AYES: HARNIK, JONATHAN, NESTANDE, QUINTANILLA, and KELLY NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: KATHLEEELLY, MIAYO�I M. GLOR(A SAIMHEZ, ACTING CITY CLERK CITY OFIPALM DESERT, CALIFORNIA -4- W\Staff Reports - Shared 2\Staff Reports 06-10-2021\4 - Clerk 06.10-21123 Res Nos 2021-29. 2021-30, & 2021-31 - Section 29\02 Resolution Declaring Intention to Issue Refunding Bonds (PD Section 29 Ref Bonds 2021) 6 10 21 rev 5.26 21 DOCX