HomeMy WebLinkAboutRes 2021-31RESOLUTION NO. 2021-31
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA, AUTHORIZING THE ISSUANCE AND SALE BY
THE CITY OF ITS SECTION 29 ASSESSMENT DISTRICT (NO. 2004-02)
LIMITED OBLIGATION REFUNDING IMPROVEMENT BONDS, SERIES
2021; APPROVING AS TO FORM AND AUTHORIZING THE EXECUTION
AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION
THEREWITH; AND APPROVING CERTAIN 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, the City Council of the City (the "City Council") has adopted a
resolution entitled, "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 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" (the "Resolution of Intention"),
on June 10, 2021 declaring its intention to issue bonds to refund the Prior Bonds and to
levy reassessments within the Assessment District to secure such refunding bonds, under
and 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 Highways Code; and
WHEREAS, the City Council, by a resolution entitled, "A Resolution of the
City Council of the City of Palm Desert, California, Approving a Reassessment Report
Prepared in Connection with the Issuance of Refunding Bonds for the Section 29
Assessment District (No. 2004-02); Confirming Reassessments for Such Refunding
Bonds; Making Other Findings in Connection Therewith; Ordering Refunding and
Reassessments; and Directing and Approving Other Matters Relating Thereto," adopted
on June 10, 2021, has approved a reassessment report (the "Reassessment Report")
prepared by Willdan Financial Services in connection with the proposed refunding and
reassessments pursuant to Section 9523 of the 1984 Refunding Act, made the findings
required by Section 9525 of the 1984 Refunding Act, and confirmed and adopted the
reassessments and reassessment diagrams presented with the Reassessment Report;
and
WHEREAS, the aforementioned reassessment diagram with respect to the
District and a notice of reassessment shall be duly recorded in the manner provided by
law, and the reassessments and interest thereon shall be collected on the assessment
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RESOLUTION NO. 2021-31
roll for the County of Riverside in the same manner and subject to the same remedies on
default and to the payment of interest and penalties on the enforcement thereof as the
original assessments in the District; and
WHEREAS, the City Council at this time desires to adopt this Resolution to
authorize the issuance of the refunding bonds, which shall be designated "City of Palm
Desert, Section 29 Assessment District (No. 2004-02), Limited Obligation Refunding
Improvement Bonds, Series 2020" (the "Bonds") and approve the execution and delivery
of certain documents in connection with such issuance; and
WHEREAS, to effect the refunding of the Prior Bonds, the City proposes to
enter into an Escrow Agreement with U.S. Bank National Association, in its capacity as
the fiscal agent for the Prior Bonds, substantially in the form presented to the City Council
and on file with the City Clerk; and
WHEREAS, on January 10, 2019, the City Council approved an updated
local debt policy (the "Local Debt Policy") in furtherance of Section 8855(i) of the California
Government Code, as amended by SB 1029, enacted as Chapter 307, Statutes of 2016;
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 true and
correct.
Section 2. Local Debt Policy. The City Council hereby determines that
(a) the Local Debt Policy is consistent with the requirements of Government Code Section
8855(i), and (b) the proposed Bonds to be issued in accordance with the parameters set
forth in this Resolution are consistent with the Local Debt Policy.
Section 3. Authorization to Issue Bonds. Subject to the parameters set
forth in Section 8 below, the City Council approves and authorizes the issuance and sale
of the Bonds for the purpose of refunding the Prior Bonds, including but not limited to
financing of the costs of issuing refunding bonds (as defined in Section 9600(a) of the
1984 Refunding Act) and the Special Reserve Fund (as defined in the Resolution of
Intention).
Section 4. Fiscal Aaent Agreement. The Fiscal Agent Agreement (the
"Fiscal Agent Agreement"), proposed to be entered into by and between the City and the
Fiscal Agent (defined in Section 5 below), in the form presented at this meeting and on
file with the City Clerk of the City (the "City Clerk"), is hereby approved. Subject to Section
8 below, each of the Mayor, the Mayor Pro Tem (in the Mayor's absence), the City
Manager, the Assistant City Manager (in the City Manager's absence), and any deputy of
such officers (each, an "Authorized Officer"), acting singly, is hereby authorized and
directed, for and in the name and on behalf of the City, to execute and deliver the Fiscal
Agent Agreement in substantially said form, with such additions or changes as the
Authorized Officer executing the same may approve (such approval to be conclusively
evidenced by such Authorized Officer's execution and delivery thereof).
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RESOLUTION NO. 2021-31
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Section 5. Appointment of Fiscal Agent. The appointment of U.S. Bank
National Association, as fiscal agent (the "Fiscal Agent") under the Fiscal Agent
Agreement is hereby approved.
Section 6. Escrow Aareement. The Escrow Agreement (the "Escrow
Agreement"), proposed to be entered into by and between the City and U.S. Bank
National Association, as fiscal agent and escrow agent for the Prior Bonds, in the form
presented at this meeting and on file with the City Clerk, is hereby approved. Each of the
Authorized Officers, acting singly, is hereby authorized and directed, for and in the name
and on behalf of the City, to execute and deliver the Escrow Agreement in substantially
said form, with such additions or changes as the Authorized Officer executing the same
may approve (such approval to be conclusively evidenced by such Authorized Officer's
execution and delivery thereof).
Section 7. Bond Purchase Aareement. The Bond Purchase Agreement
(the "Purchase Agreement") proposed to be entered into by and between the City and the
Stifel, Nicolaus & Company, Incorporated (the "Underwriter"), in the form presented at
this meeting and on file with the City Clerk, is hereby approved. Subject to Section 8
below, each of the Authorized Officers, acting singly, is hereby authorized and directed,
for and in the name and on behalf of the City, to execute and deliver the Purchase
Agreement in substantially said form, with such additions or changes as the Authorized
Officer executing the same may approve (such approval to be conclusively evidenced by
such Authorized Officer's execution and delivery thereof).
Section 8. Terms of Sale of Bonds. Each of the Authorized Officers,
acting singly, is hereby authorized and directed to act on behalf of the City to establish
and determine (i) the aggregate initial principal amount of the Bonds, which amount shall
be less than the outstanding aggregate principal amount of the Prior Bonds on the date
of issuance of the Bonds; (ii) the purchase price of the Bonds and the interest rates
thereon, provided that the true interest cost on the Bonds shall not exceed 4.26 percent;
(iii) the final maturity of the Bonds, which shall not be on a date that is later than the
scheduled final maturity date of the Prior Bonds; and (iv) the Underwriter's compensation
(discount) with respect to the Bonds, which shall not exceed 1.1 percent of the principal
amount thereof.
Section 9. Preliminary Official Statement. The Preliminary Official
Statement relating to the Bonds (the "Preliminary Official Statement"), in the form
presented at this meeting and on file with the City Clerk, is hereby approved. Solely for
purposes of this Section 9 and Section 10 below, the term "Authorized Officers" shall
include the City Treasurer. Each of the Authorized Officers, acting singly, is hereby
authorized and directed, for and in the name and on behalf of the City, to cause the
Preliminary Official Statement in substantially said form, with such additions or changes
therein as such Authorized Officer may approve, to be deemed final for the purposes of
Rule 15c2-12 of the Securities and Exchange Act of 1934. The distribution by the
Underwriter of copies of the Preliminary Official Statement to potential purchasers of the
Bonds is hereby approved.
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RESOLUTION NO. 2021-31
Section 10. Official Statement. Each of the Authorized Officers (within the
meaning set forth in Section 9 above), acting singly, is hereby authorized and directed,
for and in the name and on behalf of the City, to cause the Preliminary Official Statement
to be brought into the form of a final Official Statement (the "Official Statement"), and to
execute the same for and in the name and on behalf of the City, with such additions or
changes therein as such Authorized Officer may approve (such approval to be
conclusively evidenced by such Authorized Officer's execution and delivery thereof). The
distribution and use of the Official Statement by the Underwriter in connection with the
sale of the Bonds are hereby approved.
Section 11. Continuina Disclosure Agreement. The Continuing
Disclosure Agreement (the Continuing Disclosure Agreement") relating to the Bonds,
proposed to be entered into by and between the City and Willdan Financial Services, as
Dissemination Agent, in the form appended to the Preliminary Official Statement and on
file with the City Clerk, is hereby approved. Each of the Authorized Officers, acting singly,
is hereby authorized and directed, for and in the name and on behalf of the City, to
execute and deliver the Continuing Disclosure Agreement in substantially said form, with
such additions or changes therein as the Authorized Officer executing the same may
approve (such approval to be conclusively evidenced by such Authorized Officer's
execution and delivery thereof).
Section 12. Appointment of Financina Team. The City hereby confirms
the appointments of Del Rio Advisors, LLC, to act as municipal advisor in connection with
the issuance of the Bonds; Richards, Watson & Gershon, A Professional Corporation, to
act as bond counsel; Best Best & Krieger LLP to act as disclosure counsel; Willdan
Financial Services, to act as Reassessment Engineer in connection with the issuance of
the Bonds; Stephen G. White, MAI, to act as appraiser in connection with the issuance of
the Bonds; Empire Economics, Inc. to act as Absorption Consultant in connection with
the issuance of the Bonds; and Stifel, Nicolaus & Company, Incorporated, to act as
underwriter of the Bonds (the "Underwriter").
Section 13. Other Acts. The officers of the City are hereby authorized and
directed, jointly and severally, to do any and all things and to execute and deliver any and
all documents which they may deem necessary or advisable in order to consummate the
issuance, sale and delivery of the Bonds, or otherwise effectuate the purposes of this
Resolution, the Fiscal Agent Agreement, the Escrow Agreement, the Purchase
Agreement, the Official Statement, and the Continuing Disclosure Agreement, and any
such actions previously taken by such officers are hereby ratified and confirmed.
Section 14. Effective Date. This Resolution shall take effect immediately
upon adoption.
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RESOLUTION NO. 2021-31
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:
/IY�ri �l�Ct'
(aLMea
KATHLEE KELLY, MAY
M. GLORIA SA 'N HEZ, AtT1 G'CITY CLERK
CITY OF PALM DESERT CA
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