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Home My WebLink AboutAssessment District 94-3In M PALM SPRINGS (619) 325-7264 RANCHO MIRAGE (619) 568-2611 BEST, BEST & KRIEGER A -TWR*I WACLLO Q PRCI *SS AL CO 00RAT1 Z LAWYERS 400 MISSION SOUARE 3750 UNIVERSITY AVENUE POST OFFICE BOX 1026 RIVERSIDE, CALIFORNIA 92502-1028 TELEPHONE (909) 680-1450 TELECOPIER (009) 666-3063 August 14, 1995 Paul Gibson Treasurer City of Paul Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Re: Assessment District No. 94-3 (Merano) Dear Paul: RECEIVED AUG 16 1995 ONTARIO COMMUNITY DEVELOPMEyyLLD� PAjiT�BT-8584 CITY OF PALM pt. 19 SAN DIEGO (619) 595-1333 Enclosed are assessor's parcel maps with the assessor's new parcel numbers for Tracts 27882-1 and 27882-2 located within the boundaries of Assessment District No. 94-3 (Merano). You will recall that an Amended Notice of Assessment was recorded on May 9, 1995 against original parcel No. 620-189-003 owned by The Avondale Corporation because the new parcel numbers had not been assigned by the Assessor's office. Although we now have the new numbers, the County Assessor's office has advised KWC Engineers, Inc. that these new numbers may not be reflected on the 1995-96 tax roll. We would recommend that the City have these assessments hand billed through Muni Financial Services, Inc. Please call if you have any questions. bjs/ Enclosures cc: Ray Diaz Robert L. Mayer Ken Crawford Yo rs sincerely, an o n E. Brown of Best, Best & Krieger BJS278859 �• . r hl J kAt' 6A5 ?R:'- iKr_ D - R SCr SS.`J n : h 1 PURPOSES ONLY h0! _�T" [_ A5:S I FOR THE ACCUR..-CYO E ;A'.TA SK0WN. ASSESSOP'3 PARCELS WAY N''G ;.'vPL Y; 'hI LOCAL L01-SPLIT OR :LUrLDf SITE 0P,;01ukiN"c S. FM POR.SW ;v CITY OF f 381 -s, a�exr-e r: 78 =3 ( 7S ci 72 I , J I 5 I- I �rp • is ``•,'t•� ` to I 2f ?5 2t L3 ,3.52.1F C Jlscc_es I 70 r E3 75 to :a Of. co .`.�1+ . 4, I J I !1 J Il L.0 2 1.1.7 ;i Ca 71 tW 7 35 M 23, ::s a a- — 47 — 3@ — :�� TR- c2.73 �— i `i as ASSESSOR'S VAF FK.52^ n 54 - E� ro ri S] 32 •. 1 H.12 I!- (7RIYATt STREET) —,:--� w'! j 99.71 �.. I t r' 37 Q511O !CG C25 = �u ! of 2i �7 is 4:> 42 1 a" 61 -, ar 3 f = R �•�'•• ti .:3 f1.71 �. 4� �r5.7! L.41.al� f= :K. 7! a ` -? /•2/! � of fit. LOT Z: I I 1 r ! , I t , • I 1 � , 39 ' 01 -fir, c a .L U 0 'Z 3 5 T.H.,R.H PALM DESERT I 66 eTZ + iS ' 71 E :2 T IE I :fa Mal I 1{ I { 71 P-T' 2-2 [ � I ; I� 1 � I� 1 � I� f G v � � �e � `i� 109 �'gb :5 I 22 rc FJ — I �d ,�' c•ar ti �1 J re I ra �s �e :e I �s B G� I GZ I 1- SS tR 'L �� $ j3 g 14 !a 15 'a i5 Im 1`1 ��_ �� °+ !Ql!_Sf r I - z * iR. d !Pi-L r I Laltl-It `i �f I +r i7 1 I i? t! I72. PT E i �.. s if U CC r i8 it 99-12f L �I409 Q Y to (2 3'I �• i Z Gil wr ( w - I+ i C — 2: j_ I— V 6� L� � I as Ge C?AiYAT'e • r� rw LOT .0 ti`dt• fc i Sa 5s 4, M �• `�' i E7 ( i 6 ' I ►3 1 �� ., ,. 3� 3t IK s �j g - 48 i5 27 lzi me s;_tl i Z 5 c �i. t7ffP-i i-2P-tt ` cs.2a 6a it - n J a TA, t7Pfs- j � 3 9 i 9 0 IN .107 : e y,' , 7 f0` x IjjI �+' . 94 ZA 43 I ti.t1 t �' 9E.11 ='[1. T! �'•%l7.9f •iL. le �a61.11 vTf` 1 ' V !1 •u. `' �r -`"��G,�L„� a• 7 i i'� [Z i v A i f r r � r � r i.l1 r r r r r r r I r I I r I 1 ,�♦ r r r r 1 r r r I I 1 �♦ . M6 253/8-12 TRACT MAP X10. 27882-1 M9 233/17J-17 7RA�T I{AP n0• 21882-? Aufl 1-395 MEN ! TH15 WAP WAS ;EFAREG :OS SEESSUIENT P-ilrPOS" ONLY. NO LIASILIr 'S ASSUVE% f • -FOR Tl:E ACCURACY OF T NE tT;tiiA. SHOWN. AS5iE5SOR'S PARCELS WAY NOT COMPLY WIT:. LOCAL LDT—SPLIT 09 RUILDING SITE ORDINANCES. r f 75 4 t �LE � 7s POR.SW 5 T15 CITY OF PALM r-------------; 13 8 t I i 1 1 1 1 ------------------------------------------------------------------ U -UUN l 02 ',SSE3S0R'S UA P 8K.620 SG.3S Riverside Co'iaty, CaIiA. ii7 NQ4-27-22G 149.71 622 03 b 2 0T 3-9 1.5 .,R.6E 1 ' �' � l 4 620-I ALM DESERT t , I I LI i.y- -i__-.-- ti R•}St Y L•Q6_�r a «t � u L.8►•?i,.-2�.5s-�. �_ "' -------- LOT --A----------- --------------- ------- ^-•-- ---------- r MS 253/8-12 TRACT MAP NO. 27882-1 MB 253/13-17 TRACT MAP h0. 27882-2 Aug 1995 CM en PALM SPRINGS (619) 325-7264 RANCHO MIRAGE (619) 568-2611 BEST, BEST & KRIEGER w •wwrw[w�wr nc�uowo •wO��aww� cow.owwrw»,s LAWYERS 400 MISSION SQUARE 3750 UNIVERSITY AVENUE POST OFFICE BOX 1028 RIVERSIDE, CALIFORNIA 92502-1028 TELEPHONE (009) 686-1450 TELECOPIER (900) 686-3083 May 17, 1995 CERTIFIED MAIL RETURN RECEIPT REQUESTED California Debt Advisory Commission 915 Capitol Mall Room 400 Sacramento, California 92409-0001 Re: City of Palm Desert Assessment District No. 94-3 (Merano) Ladies and Gentlemen: ``y 2 `' 1995 ONTARIO �sfAki-WM DEVEiAPMENT DEPfli ff 969-6584 CITY DT PALM DESERT SAN DIEGO (610) 505-1333 Enclosed is a completed 'Report of Final Sale" which we are filing on behalf of the City of Palm Desert as bond counsel in this transaction. We would appreciate it if you would acknowledge receipt by stamping the enclosed copy and returning it to our office in the stamped envelope we have provided. JEB:bjs Enclosures cc: Ray Diaz Ken Williams Sinceldy,-,. H --` ohn E. Brown of Best, Best & Krieger BJS267202 ,e REPORT OF FINAL SALE California Debt Advisory Commission 915 Capitol Mall, Room 400, Sacramento, CA 95814 P.O. Box 942809, Sacramento, CA 94209-0001 Tel.: (916) 653-3269 FAX: (916) 654-7440 (Facsimile transmissions must be followed by hard copies.) Completion of this form is requested to provide information which was not available when the "Report of Proposed Debt Issuance" was filed with the CDAC or to verify information which was reported as "proposed." Additionally, please send a copy of the official statement (or offering circular) with this form to the CDAC. NAME OF ISSUER: CITY OF PALM DESERT (if pool bond, list participants) ISSUE NAME: ASSESSMENT DISTRICT NO. 94-3 (Merano) OFFICIAL STATEMENT/OFFERING MEMORANDUM: ® Enclosed ❑ None prepared For Office Use Only CDAC ii: 95-0298 SALE DATE: May 2, 1995 PRINCIPAL AMOUNT SOLD S 1,500,000 IS THE INTEREST ON THE DEBT EXEMPT FROM TAXATION? Under State law: ❑ NO (taxable) ® YES (tax-exempt) Under Federal law: ❑ NO (taxable) ® YES (tax-exempt) If the issue is federally tax-exempt, is interest a specific preference item for the purpose of alternative minimum tax? ❑ Yes, preference item ® No, not a preference item IS ANY PORTION OF THE DEBT FOR REFUNDING? ® No ❑ Yes, amount of this issue (including costs) which is for refunding of existing debt $ If the issue is a negotiated refunding, indicate the reason(s) why the bonds were issued at a private or negotiated versus a competitive sale. ❑ (1) Timing of the sale provided more flexibility than a public sale ❑ (2) More cost savings were expected to be realized than a public sale ❑ (3) More flexibility in debt structure was available than a public sale ❑ (4) Issuer able to work with participants familiar with issue/r than with a ❑ (5) All of the above public sale ❑ (6) Other (please specify) INTEREST TYPE: [Z NIC ❑ TIC ❑ Variable (Please specify) INTEREST COST: 6.784320 % MATURITY SCHEDULE ❑ Attached E] Included in Official Statement/Offering Memorandum MATURITY STRUCTURE: ® Serial (S) ❑ Term (T) ❑ Serial and term bonds or two or more term (C) FINAL MATURITY DATE: INDICATE CREDIT RATING: (For example, ® Not Rated ❑ Rated Standard & Poor's: Moody's: "AAA" or "Aaa') WAS THE ISSUE INSURED OR GUARANTEED? ® No ❑ Bond Insurance (I) ❑ better of Credit (L) GUARANTOR: ISSUANCE COSTS: Total issuance costs: ❑ Discount ❑ Premium Original Issue Discount: (OID) S Fitch: Other. ❑ State Intercept Program (T) ❑ Other (0) Section 53583(c)(2)(B) of the Cafifon a Govern nt Code -gtwrs that arty local agency w&V fefunding bonds at privaw sale or on a negotiated bads shaU send a musen smonm; within two weeks otter the bonds an sold to the CDAC aplaining the reasons why the loco( agency dnermused to yell the bonds at pm+ate sale or on a negotiated bans inowd of at public sale 1 /95 CM IM PALM SPRINGS (619) 325-7264 RANCHO MIRAGE (819) 568-2611 BEST, BEST & KRIEGER A -TM[- WClUON10 PROFCS* N CORPORATION• LAWYERS 400 MISSION SQUARE 3750 UNIVERSITY AVENUE POST OFFICE BOX 1028 RIVERSIDE. CALIFORNIA 92502-1028 TELEPHONE (900) 686-1450 TELECOPIER (000) 686-3083 July 7, 1995 VIA UPS NEXT DAY AIR Paul S. Gibson City Treasurer City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Re: City of Palm Desert Assessment District No. 94-3 (Merano) Dear Paul: RECEIVED JUL 10 1995 ONTARIO COMMUNTrY DEVELOPMENT OEPAjj,"f 9) 089-8584 C!TY OF PALM DESERT SAN DIEGO (619) 595-1333 Enclosed is a Written Request for Disbursements for Costs of Issuance requesting payment to KWC Engineers, Inc. for engineering services in connection with the above -referenced assessment district. Also enclosed is a copy of their engineering services contract dated October 21, 1994 along with an invoice in the amount of $26,600. If this meets with your approval, please date and sign the Written Request for Disbursements and forward same to the Bank of America for payment directly to KWC Engineers, Inc. Please call if you have any questions. JEB:bjs Enclosures / cc: Ray Diaz Ken Crawford Y u sincerely, ohn E. Brown of Best, Best & Krieger BJS272920 LWI en $1,500,000 LIMITED OBLIGATION IMPROVEMENT BONDS CITY OF PALM DESERT ASSESSMENT DISTRICT 94-3 (MERANO) WRITTEN REQUEST FOR DISBURSEMENTS FOR COSTS OF ISSUANCE TO: Bank of America National Trust and Savings Association, as fiscal agent Pursuant to Section 3.05 of the Fiscal Agent Agreement dated as of May 11, 1995, between the City of Palm Desert and Bank of America National Trust and Savings Association, as Fiscal Agent, with respect to the above -captioned bonds (the "Fiscal Agent Agreement"), you are hereby instructed to pay: (a) The person(s) or corporation(s) designated on the attached Exhibit "A" as Payee(s), and (b) The sum set forth on an invoice to be submitted simultaneously with, or subsequent to, this requisition, provided that such sum does not exceed the amount set forth opposite such designation in the attached Exhibit "A" in payment or reimbursement of a portion of the Costs of Issuance (as defined in the Fiscal Agent Agreement), being a cost relating to the formation of Assessment District No. 94-3 (Merano) of the City of Palm Desert or of issuing the above -captioned Bonds, all as described in the attached Exhibit "A." The amount shown in Exhibit "A" constitutes an appropriate Cost of Issuance to be paid from proceeds of the above -captioned Bonds, all pursuant to Section 3.05 of the Fiscal Agent Agreement. DATED: , 1995. CITY OF PALM DESERT FOR AND ON BEHALF OF ASSESSMENT DISTRICT NO. 94-3 (MERANO) Paul S. Gibson, City Treasurer BJ5271537 m Cm PAYEE KWC Engineers, Inc. EXHIBIT "A" FOR Engineering services AMOUNT' $26,600.00 BJS271537 _2 M En J.N. 94.475.1.01 October 21, 1994 CONTRACT Page 2 CITY OF PALM DESERT c/o BEST, BEST AND KRIEGER MERANO PROJECT - PALM DESERT, CALIFORNIA ASSESSMENT DISTRICT ENGINEERING SERVICES SCOPE OF WORK AND FEES 94.475.0 - Incidental Expenses Blueprinting, Maps, Report Reproduction, Special Delivery and Messenger Service .01 Assessment District Engineering ................. (T&M) $ 1,600 Estimated Fees - Incidental Expenses: $ 1,600 94.475.1 - Assessment District Engineering Services .01 Assessment District Engineering Services ........... (LS) $ 25,000 * Estimate construction quantities included within the Assessment District * Preparation of cost estimates to identify offsite facility improvements * Attendance at all required staff and City Council meetings * Ongoing coordination throughout formation of Assessment District with Bond Counsel, Financial Advisor, City of Palm Desert staff, owner, and appraiser * Preparation of preliminary and final engineer's report * Prepare Assessment District maps and diagrams * Coordinate recording of assessment diagrams with City of Palm Desert and Bond Counsel Estimated Fee - Assessment District Engineering Services: $ 25,000 TOTAL ESTIMATED FEES: $26,600 J. jWPjPROPOSALj94j944751. KF5 i C.M de Crinis & Co., Inc. `.t!► Publk FMa®a Advises RECEIVED MAR 14 1995 COMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT MEMORANDUM TO: Ramon Diaz, City of Palm Desert John E. Brown, Esq., Best, Best & Kreiger Ken W. Crawford, KWC Engineers Larry Bevington, KWC Engineers Robert L. Mayer, Robert L. Mayer Trust Steve Sanberg, S.H. Sanberg & Associates Jim MacKensie, Mackensie & Associates FROM: Curt de Crinis Dana Rosenthal DATE: March 13, 1995 RE: City of Palm Desert Assessment District No. 94-3 (Merano) Enclosed please find a preliminary draft of the Official Statement for the above referenced transaction. Please take the time to review this document, especially those sections to which you have knowledge. Please fax any comments to me by March 21, 1995. If you have any questions, please do not hesitate to call. 8439 Sunset Boulevard Suite 104 Loa Angeles California 90069 TEL 213.956.9700 FAX 213.956.9717 New Issue — Not Rated In the opinion ofBest, Best & Krieger, A Professional Corporation, Riverside, California, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is exempt from gross income for purposes of income taxation by the United States of America and is not an item of tax preference for purposes of the alternative minimum tax imposed by the United States on individuals and corporations, subject to certain qual f cations more particularly described under the heading "TAX F. MIPTION" herein, and exempt from personal income taxation by the State of California. STATE OF CALIFORNIA Dated: COUNTY OF RIVERSIDE $1,5W,000* CITY OF PALM DESERT 1915 ACT PffROVEMENT BONDS ASSESSMENT DISTRICT NO.94-3 (MERANO) SERIES NO.1995 (Riverside County, California) Due: September 2, as shown below The Bads are issued pursuant to provisions of the Improvement Bond Ad of 1915 (Division 10 of the California Streets and Highways Code) arrd are secured by assessments levied in proceedings conducted by the City of Patin Desert for Asseaanart District No. 94-3 (Merano� City of Palm Desert, Riverside County, Stale of California. Ali of the anprovemeds to be acquired or constructed with the proceeds of the Bads shall be acquired or constructed pursuant to the Municipal Improvement Act of 1913 (Division 12 ofth California Sheets and highways Code). The Bonds we issued only as fully registered bonds in denominations of $5,000 ea* or any integral multiple tharvK except for one Bad in an odd amount due in 1996. Principal of and premium, if any, on the Bads are payable at the principal corporate bust office of Bade of Amnia, NT&SA, Los Angeles, California, Fiscal Agent. Interest on the Bonds is payable by check mailed from the principal corporate trust office of the Final Agent to the registered owners thereof semi- annually on March 2 and September 2 of each year oornmencing September 2, 1995. Any Bad or any portion thereof in the amount of $5,000 or any integral multiple thereof may be redeemed and paid in advance of maturity on any March 2 or September 2 by giving at least 30 days' notice and by paying principal and accrued interest, together with a redemption premium as described herein. Under the provisions of the Improvement Bad Act of 1915, semi-annual assessment installments of principal and interest sufficient to mat annual debt service on the Bads will be included on the regular Riverside County tax bill sent to owners of property against which there are unpaid assessments. These serni-amual assessment installments are to be paid into the Redemption Fund to be held by the District Treasures and transferred to the Bond Fund, held by the Fiscal Agent, in time to be used to pay debt service on the Bads as it becomes due. To provide funds for payment of the Bonds and the interest thereon as a result of any delinquent assesurnet inshallme ts, the Fiscal Agent will establish a Reserve Fund and deposit therein bond proceeds in the original amount of S , ten parent (100/6) of the proceeds of the Bonds. Additionally, the City has oovenanted that it will determine or cause to be determined, no later than February 15 and June 15 of each year, whether or not any delinquent assessments exist and, if such delirngttancies exist, the City will file an action in Superior Court no later than April 1 (with respect to the February 15 determination) or August 1(with respect to the Jame 15 determination) to foreclose the lien of any Assessments or installment thereof not paid when due. Unpaid aeesarents comae Axed liens on the lots and prrceM assessed within the District and do not constitute a personal Indebtedness of the respective ownen of such lob and parcels. Accordingly, in the event of delinquency, proceedings may he held only against the real property securing the delinquent assessment. Than, the value of property within the District is a critical factor in deterssinhng the investment quality of the Bonds. See "APPENDIX A — APPRAISAL SUMMARY" regarding the value of the land within the Assessment District and the assumptions underlying that app-l-L No funds of the District other than the Reserve Fund will be available for the payment of delinquent assessment installments. The District has determined am declared pursuant to section 9769 of the California Streets and Highways Code that the District will not obligate itself to advance available funds from the treasury of the District to are any deficiency which may occur in the Redemption Fund. The Bonds are not general obligations of the District, of the County of Riverside, of the State of California or arty other political subdivision of the State, and neither the District, the County, nor the State or my political subdivision of the State has pledged its full faith and credit for the payment thereof. The information set fourth is this Official Statement, iacl dbig information under the heading "iIONDOWNERS' RISKS", should be read in its stlr+ety. MATURITY SCHEDULE Due Interest Due interest SmtemW 2 Amount Rate Price September 2i3 Lifte price 1995 S % 1000/0 2002 S % 1000/0 1996 100 2003 100 1997 100 2004 100 1998 100 2005 100 1999 100 2006 100 2000 100 2007 100 2001 100 2008 100 $ _% Term Bond due September 2, 20_, Priced at 100% The Bonds are offered when, as and if issued and delivered to the Undewrita subject to the approval Best, Best & Krieger, A Professional Corporation, Riverside, California, Boma Counsel, and mUin other conditions. It is expeclod that the Bonds in definitive form will be available for delivery in Califorrnia on or about 11995. Dated 11995 'preliminary, subject to change CM lm CITY OF PALM DESERT CITY COUNCIL Buford A. Crites, Mayor Walter H. Snyder, Mayor Pro-Tem Jean M. Benson Richard S. Kelly CITY STAFF Bruce Altman, City Manager Ramon Diaz, Director of Community Development & Planning Sheila R. Gilligan, City Clerk BOND COUNSEL Best, Best & Krieger A Professional Corporation Riverside, California DISTRICT COUNSEL Esq. . California FINANCIAL ADVISOR C.M. de Crinis & Co., Inc. Los Angeles, California ASSESSMENT ENGINEER KWC Engineers, Inc. Corona, California APPRAISER MacKenzie and Associates Palm Desert, California FISCAL AGENT, PAYING AGENT, TRANSFER AGENT & REGISTRAR Bank of America, NT&SA Los Angeles, California cm cm TO WHOM IT MAY CONCERN: The purpose of this Official Statement is to supply information to prospective purchasers of $1,500,000* principal amount of City of Palm Desert, 1915 Act Improvement Bonds, District No. 94-3 (Merano), Series No. 1995 (the "Bonds") proposed to be issued by the City of Palm Desert (the "City") pursuant to the Improvement Bond Act of 1915 (the "Bond Law"). The information set forth herein has been obtained from the City and certain other sources which are believed to be accurate and reliable but is not guaranteed as to accuracy or completeness, and is not to be construed as a representation of such by the City or the Underwriter. Statements contained in this Official Statement which involve estimates, forecasts, or other matters of opinion, whether or not expressly so described herein, are intended solely as such and are not to be construed as representations of fact. Further, the information and expressions of opinion contained herein are subject to completion or amendment without notice. No dealer, broker, salesman or other person has been authorized by the City or the Underwriter to give any information or to make any representations other than those contained in this Official Statement and, if given or made, such other information or representations must not be relied upon as having been authorized by the City or the Underwriter. This Official Statement does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Bonds by any person in any jurisdiction in which it is unlawful for such person to make such offer, solicitation or sale. The delivery of this Official Statement shall not, under any circumstances, curate any implication that there has been no change in the affairs of the City, the property owners, the Improvement Project (as defined herein) or the Assessment District (as defined herein) since the date hereof. The summaries and references to the Bond Law, the Bond Resolution and to other statutes and documents referred to herein do not purport to be comprehensive or definitive, and are qualified in their entireties by reference to each such statute and document. This Official Statement does not constitute a contract between any bondowner and the City or the Underwriter. This Official Statement is in a form deemed final as of its date by the City for the purpose of Rule 15c2-12 under the Securities Exchange Act of 1934, as amended, except for certain information permitted to be omitted under said Rule 15c2-12. IN CONNECTION WITH THIS OFFERING OF THE BONDS, THE UNDERWRITER MAY OVERALLOT OR EFFECT TRANSACTIONS WHICH STABILIZE OR MAINTAIN THE MARKET PRICE OF THE BONDS AT A LEVEL ABOVE THAT WHICH MIGHT OTHERWISE PREVAIL IN THE OPEN MARKET. SUCH STABILIZING, IF COMMENCED, MAY BE DISCONTINUED AT ANYTIME. THE UNDERWRITER MAY OFFER AND SELL THE BONDS TO CERTAIN DEALERS AND BANKS ACTING AS AGENT AT PRICES LOWER THAN THE PUBLIC OFFERING PRICES STATED ON THE COVER PAGE HEREOF AND SAID PUBLIC OFFERING PRICES MAY BE CHANGED ANYTIME BY THE UNDERWRITER TABLE OF CONTENTS SUMMARYSTATEMENT................................................................................................................................... i Purpose.............................................................................................................................................. i Securityfor the Bonds.............................................................................................................................. i Formof Bonds........................................................................................................................................ ii Redemption............................................................................................................................................. ii TheDistrict. ............................................................................................................................................ ii Bondowners' Risks................................................................................................................................... ii REGIONALMAP............................................................................................................................................... iu INTRODUCTION................................................................................................................................................ 1 THEBONDS........................................................................................................................................................ 1 Authorityfor Issuance ............................................................................................................................. 1 Descriptionof the Bonds......................................................................................................................... 2 Optional Redemption and Prepayment of Bonds...................................................................................... 3 Mandatory Sinking Fund Redemption..................................................................................................... 3 Purposeof the Bonds............................................................................................................................... 3 Disposition of Surplus from the Improvement Fund................................................................................ 3 Securityfor the Bonds............................................................................................................................. 4 Transferand Exchange........................................................................................................................... 4 Mutilated, Lost or Stolen Bonds.............................................................................................................. 5 Limited Obligation of the District Upon Delinquency.............................................................................. 5 ReserveFund.......................................................................................................................................... 5 Covenant to Commence Superior Court Foreclosure ................................................................................ 6 LimitedCity Liability .............................................................................................................................. 7 TaxCovenant......................................................................................................................................... 7 Estimated Sources and Uses of Bond Funds............................................................................................ 8 THEASSESSMENT DISTRICT.......................................................................................................................... 9 General................................................................................................................................................. 9 Description of the Assessment District.................................................................................................... 9 TheDevelopment Plan ........................................................................................................................... 10 Property Ownership in the Assessment District...................................................................................... 11 Availability of Public Utilities................................................................................................................ 12 PropertyTax Status................................................................................................................................ 12 LandValues........................................................................................................................................... 12 Description of the Improvement Project................................................................................................. 13 Method of Assessment Spread................................................................................................................ 14 BONDOWNERTRISK....................................................................................................................................... 18 General................................................................................................................................................18 Concentration of Property Owners......................................................................................................... 19 Failureto Develop Property .................................................................................................................... 19 AdditionalDebt..................................................................................................................................... 19 Bankruptcy............................................................................................................................................ 19 BallotInitiatives.................................................................................................................................... 20 Availability of District Funds................................................................................................................. 20 Articles )UH A and B of the State Constitution...................................................................................... 20 Cm Cm BallotInitiatives.................................................................................................................................... 20 Availability of District Funds................................................................................................................. 20 Articles XIII A and B of the State Constitution...................................................................................... 20 AppraisedValue.................................................................................................................................... 21 LEGALOPINION............................................................................................................................................... 21 TAXEXEMPTION............................................................................................................................................. 21 NOLITIGATION................................................................................................................................................ 22 NORATING....................................................................................................................................................... 22 UNDERWRITING.............................................................................................................................................. 22 FINANCIALADVISOR...................................................................................................................................... 22 ADDITIONALINFORMATION......................................................................................................................... 23 APPENDIX A — APPRAISAL SUMMARY.......................................................................................................A-1 APPENDIX B — CITY OF PALM DESERT GENERAL AND ECONOMIC DATA .......................................... B-1 APPENDIX C — PER CAPITA WAGES AND SALARIES................................................................................ C-1 TABLE 1 — ANNUAL DEBT SERVICE.............................................................................................................. 8 TABLE 2 — VALUE -TO -LIEN RATIO............................................................................................................... 10 TABLE 3 — IMPROVEMENT COST ESTIMATE.............................................................................................. 16 w ti.✓ SUMMARY STATEMENT THIS SUMMARY STATEMENT IS SUBJECT IN ALL RESPECTS TO THE MORE COMPLETE INFORMATION IN THIS OFFICIAL STATEMENT, INCLUDING THE COVER PAGE AND APPENDICES HERETO, AND THE OFFERING OF THE BONDS TO POTENTIAL INVESTORS IS MADE ONLY BY MEANS OF THE ENTIRE OFFICIAL STATEMENT. Purpose Proceeds from the City of Palm Desert (the "City") 1915 Act Improvement Bonds, District No. 94-3 (Merano), Series No. 1995 will be used to finance street improvements along with certain water and sewer improvements (the "Improvement Project") within the Assessment District No. 94-3 (Merano), (the "Assessment District") as more fully described in the section herein entitled "TIE ASSESSMENT DISTRICT — Description of the Improvement Project". The formula used by the Assessment Engineer to apportion the assessments is described in the section entitled "THE ASSESSMENT DISTRICT — Method of Assessment Spread". Security for the Bonds The Bonds are issued upon and secured by the unpaid assessments, together with penalties and interest thereon, and said unpaid assessments together with penalties and interest thereon constitute a trust fund for the redemption and payment of the principal of the Bonds and the interest thereon. All the Bonds are secured by the monies in the Redemption Fund and the Bond Fund created pursuant to the assessment proceedings and by the unpaid assessments levied to provide for payment of the acquisition and construction of said improvements, and, including principal and interest, are payable exclusively out of the Bond Fund. The unpaid assessments represent a fixed lien on the assessed parcels of land. They do not, however, constitute a personal indebtedness of the respective owners of said parcels. Under the provisions of the Improvement Bond Act of 1915, semi-annual assessment installments of principal and interest sufficient to meet annual debt service on the Bonds are to be included on the regular City of Palm Desert tax bills sent to the owners of property against which there are unpaid assessments. These semi-annual assessment installments are to be paid into the Redemption Fund which will be held by the City Treasurer and transferred to the Bond Fund, held by the Fiscal Agent, in time to be used to pay principal of and interest on the Bonds as the same shall become due. The assessment installments billed against each property each year represent a pro rata share of the total principal of and interest on the Bonds coming due that year, based on the percentage which the unpaid assessment against that property bears to the total of the unpaid assessments levied to repay the Bonds. A reserve fund in the amount of $ , ten percent (100K) of the proceeds of the Bonds issued, will be established from Bond proceeds. The Reserve Fund will be a source of available funds to advance to the Redemption Fund in the event of delinquencies in the payment of assessment installments. Additionally, the City has covenanted that not later than 1 in any year, it will file an action in the Superior Court to foreclose the lien of each delinquent assessment if the sum of incurred assessment delinquencies for the preceding fiscal year exceeds 5% of the assessment installments posted to the tax roll for that fiscal year, and if the amount of the Reserve Fund is less than the Reserve Requirement, as defined herein. If a delinquency occurs in the payment of any assessment installment, the City has a duty to transfer into the Redemption Fund the amount of the delinquency out of the Reserve Fund. This duty of the City continues during NWO, the period of delinquency, until reinstatement of the delinquent property from the proceeds of the sale on foreclosure of such property having a delinquent assessment installment or redemption following such foreclosure. There is no assurance that funds will be available in the Reserve Fund for this purpose and if, during the period of delinquency, there are insufficient monies in the Reserve Fund, no funds of the City other than the Reserve Fund will be available for the payment of delinquent assessment installments. The City has determined and declared pursuant to Section 8769 of the California Streets and Highways Code that the City will not obligate itself to advance available funds from the treasury of the City to cure any deficiency which may occur in the Redemption Fund. The Bonds are not general obligations of the City, the County of Riverside, the State of California or of any political subdivision of the State, and neither the City, the County, nor the State or any political subdivision of the State has pledged its full faith and credit for the payment thereof. For a more complete description of the above, see the sections under the heading "THE BONDS — Security for the Bonds", "— Reserve Fund" and "— Covenant to Commence Superior Court Foreclosure" herein. Form of Bonds The Bonds are issued only as fully registered Bonds in denominations of $5,000 each or any integral multiple thereof, except for one Bond in an odd amount maturing in 19_ Redemption Any Bond or any portion thereof in the amount of $5,000 or any integral multiple thereof may be redeemed and paid in advance of maturity on any March 2 or September 2 by giving at least 30 days' notice and by paying principal and accrued interest together with a redemption premium equal to 3% of the principal. The District The City of Palm Desert is located in Riverside County (the "County"), approximately 117 miles east of Los Angeles and 118 miles northeast of San Diego. The City was incorporated in 1973 and is a general law city operating under council/manager form of government. The population of the City is estimated to be as Of _, 199_. See "APPENDIX C-CITY AND COUNTY GENERAL AND ECONOMIC DATA." The assessable property in the District includes all property in the MERANO Project . For more information on the Assessment District, the property owner in the Assessment District and the Appraisal, see the section herein entitled "THE ASSESSMENT DISTRICT." Bondowners' Risks For a discussion of certain of the investment qualities of the Bonds, refer to the section herein entitled "BONDOWNERS' RISKS". ii cm cm REGIONAL MAP iii 1• 14•+' OFFICIAL. STATEMENT S1,500,000* CITY OF PALM DESERT 1915 ACT IMPROVEMENT BONDS ASSESSMENT DISTRICT NO.94-3 (MERANO) SERIES NO. 1995 INTRODUCTION This Official Statement (which includes the cover page, the summary statement, the table of contents and the Appendices attached hereto) is ftmshed by the City of Palm Desert (the "City"), to provide information concerning the $1,500,000* principal amount of the City of Palm Desert, 1915 Act Improvement Bonds, District No. 94-3 (Merano), Series No. 1995 (the "Bonds") to be issued by the City. The Official Statement makes reference to the Resolution of Intention, the Bond Resolution, the Engineer's Report, the Appraisal and certain other documents. Such references do not purport to be complete, comprehensive or definitive and are qualified in their entirety by reference to each such document. THE BONDS Authority for Issuance The improvement proceedings for the District No. 94-3 (Merano), (the "Assessment District") are being conducted pursuant to the Municipal Improvement Act of 1913 (the "1913 Act") and Resolution of Intention No. 91-47, adopted by the City Council of the City of Palm Desert (the "City Council") on February _, 1995. The Bonds, which represent the unpaid assessments levied against parcels of property in the Assessment District, are issued pursuant to the provisions of the Improvement Bond Act of 1915 (the "Bond Law") and a resolution adopted by the City Council on 19_ (the "Bond Resolution"). The proceedings conducted by the City for the Assessment District are proceedings in which all costs are either estimated or ascertained prior to the construction or acquisition of the improvements, rights -of -way or property involved. Under such proceedings, the assessments are levied, cash collections are made, then Bonds are sold to represent unpaid assessments. The monies obtained from cash collections, cash contributions from the City and Bond proceeds are used by the City in payment for the acquisition or construction of improvements, for the acquisition of property or rights -of -way and for incidental expenses and expenses of issuing the Bonds. Proceedings can be initiated by either a petition or by the City Council without a petition. The proceedings for the Assessment District were initiated by a petition filed with the City Council and signed by the owner of the land within the Assessment District. After the proceedings were initiated, the Assessment Engineer prepared a written report (the "Engineer's Report") which contains, among other things, the list of Improvement Project costs (as described herein) and the amount of the assessment to be levied against each assessed parcel of property in the Assessment District. The assessments were levied against each parcel on the basis of the special benefit to be derived from the Improvement Project. (See "THE ASSESSMENT DISTRICT - Method of Assessment Spread" herein.) The Engineer's Report was filed and confirmed by the City Council in preliminary form on February _, 19_. On 19_. The Engineer's Report was presented to the City Council and a public hearing was held at which the property owner in the Assessment District had the right to protest the levy of the proposed assessments in writing prior to or at the commencement of the hearing and to be heard at the hearing. Upon conclusion of the hearing, the City Council adopted its resolution confirming the assessments and ordering the acquisition and construction of the Improvement Project. The assessments confirmed by the City were based on the Improvement Project costs listed in the Engineer's Report. The amount of the aggregate assessment is S After confirmation, the assessments became alien against the assessed parcels of property in the Assessment District. The 30-day cash payment period was waved due to ownership of all of the parcels in the Assessment District by one party. However, prior to the issuance of the Bonds, one assessment totaling $ was prepaid in full by the owner of the property leaving total unpaid assessments of $ Description of the Bonds The $1,500,000* principal amount of Bonds are dated ___, 1995. The Bonds are serial and term bonds, and they mature in various amounts on each September 2 commencing September 2, 19 and ending September 2, 20 . Interest is payable commencing September 2, 1995 and semi-annually thereafter on March 2 and September 2 each year until maturity. The Bonds are issued only as fully registered Bonds in denominations of $5,000 each or any integral multiple thereof, except for one Bond in an odd amount due in 19_ Principal of and premium, if any, on the Bonds, and interest at maturity or upon the prior redemption thereof, will be payable at the principal corporate trust office of Bank of America, NT&SA, Los Angeles, California, fiscal agent, paying agent, transfer agent & registrar, (the "Fiscal Agent"). Interest shall be paid by check of the Fiscal Agent mailed from its principal corporate trust office to the registered owners (as shown on the registration books kept by the Fiscal Agent) at their respective addresses as shown on the registration books or at such other address as may have been filed with the Fiscal Agent for that purpose as of the date 15 days prior to each March 2 or September 2, as applicable. The Bonds mature in the amounts and on the dates as shown in the following maturity schedule. Due Amount Due Amount September 2 Maturing September 2 Maturing 1995 $ 2002 1996 2003 1997 2004 1998 2005 1999 2006 2000 2007 2001 2008 $ % Term Bonds due September 2, 20_, Priced at 10010 2 Optional Redemption and Prepayment of Bonds Any Bond or any portion thereof in the amount of $5,000 or any integral multiple thereof may be redeemed and paid in advance of maturity upon the second day of March or September in any year by giving at least 30 days' notice by registered or certified mail or by personal service to the registered owner thereof at such owner's address as it appears on the registration books of the Fiscal Agent and by paying principal and accrued interest together with a premium equal to 3% of the principal. The City Treasurer shall select Bonds such that the ratio of outstanding Bonds to issued Bonds is approximately the same in each annual series insofar as possible and by lot within each annual series in accordance with the Bond Law. No interest will accrue on a Bond beyond the March 2 or September 2 on which said Bond is called for redemption. Subdivision of the parcels in the Assessment District, a transfer of property ownership and other similar circumstances could result in prepayment of all or a portion of the assessments. Such prepayment would result in redemption of all or a portion of the Bonds prior to their stated maturities. The Bonds are also subject to refunding pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds. Mandatory Sinking Fund Redemption The Bonds maturing September 2, 20 are subject to mandatory sinking fund redemption in part and by lot on each September 2 specified below, at a redemption price equal to the principal amount thereof to be redeemed, together with accrued interest to the date fixed for redemption, without premium, as follows: Redemption Principal Date Amount (September 2) Redeemed (maturity) Purpose of the Bonds S Proceeds from the sale of the Bonds will be used to finance the acquisition and construction of the Improvement Project as described in the section herein entitled "THE ASSESSMENT DISTRICT - Description of the Improvement Project". Disposition of Surplus from the Improvement Fund The amount of any surplus remaining in the Improvement Fund after completion of the acquisition and construction of the Improvement Project and payment of all claims shall be applied as provided in Section 10427 of the 1913 Act. LMN Security for the Bonds The Bonds are issued upon and secured by the unpaid assessments levied against the property in the Assessment District together with interest thereon, and said unpaid assessments, together with interest thereon, constitute a trust fund for the redemption and payment of the principal of the Bonds and the interest and premium, if any, thereon. All the Bonds are secured by the monies in the Redemption Fund, the Bond Fund and the Reserve Fund, as defined in the Bond Resolution, created pursuant to the assessment proceedings and by the unpaid assessments levied to provide for payment of the acquisition and construction of the Improvement Project. Principal of, premium if any, and interest on the Bonds are payable exclusively out of the Bond Fund. The assessments and each installment thereof and any interest and penalties thereon constitute a lien against the various parcels of land on which they are levied until the same are paid. Such lien is subordinate to all fixed special assessment liens previously imposed upon the same property, but has priority over all existing and future private liens and over all fixed special assessment liens which may therefore be created against the property. Such lien is co -equal to and independent of the lien for general property taxes and any community facilities district special taxes. In a certificate to be signed and delivered concurrently with the issuance of the Bonds, the City reports that there are no prior special assessment liens against the parcels of property in the Assessment District and the land within the Assessment District does not presently lie within the boundaries of any community facilities district. THE BONDS ARE NOT SECURED BY THE" GENERAL TAXING POWER OF THE DISTRICT, CITY OF PALM DESERT, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF, AND NEITHER THE CITY, NOR THE COUNTY, NOR THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF HAS PLEDGED ITS FULL FAITH AND CREDIT FOR THE PAYMENT OF THE BONDS. ALTHOUGH THE UNPAID ASSESSMENTS CONSTITUTE A FIXED LIEN ON THE PARCELS OF PROPERTY ASSESSED, THEY DO NOT CONSTITUTE A PERSONAL INDEBTEDNESS OF THE RESPECTIVE OWNERS OF SAID PARCELS. FURTHERMORE, THERE CAN BE NO ASSURANCE AS TO THE ABILITY OR THE WILLINGNESS OF SUCH OWNERS TO PAY THE ASSESSMENT INSTALLMENTS. The unpaid assessments will be collected in semi-annual installments, together with interest on the declining balance, on the City of Palm Desert tax roll on which general taxes on real property are collected, and are payable and become delinquent at the same time and in the same proportionate amounts and bear the same proportionate penalties and interest after delinquency as do said general taxes, and the property upon which the assessment was levied is subject to the same provisions for sale and redemption as are properties for nonpayment of general taxes. These semi-annual installments are to be paid into the Redemption Fund which will be held by the City Treasurer and transferred to the Bond Fund, held by the Fiscal Agent, in time to be used to pay the principal of and interest on the Bonds as they become due. The assessment installments billed against each parcel of property in the Assessment District are based on the percentage which the unpaid assessment against the property bears to the total of unpaid assessments in the Assessment District. Transfer and Exchange Transfer of ownership of a Bond shall be made by exchanging the same for a new filly registered Bond of the same maturity in the same aggregate principal amount. All of such exchanges shall be made in such manner and upon such reasonable terms as may from time to time be determined and prescribed by the City; provided, however, that no such exchange is required to be made by the Fiscal Agent during the fifteen days preceding any Interest 4 Payment Date. Such registration and transfer shall take place at the principal corporate trust office of the Fiscal Agent. The Fiscal Agent may make a charge for every exchange or transfer and shall require the Bondholder to pay for any tax or governmental charge required to be paid with respect to such exchange or transfer. Mutilated, Lost or Stolen Bonds If any Bond is mutilated, lost, stolen or destroyed, the City may execute and the Fiscal Agent may authenticate and deliver a new Bond or Bonds in replacement thereof in the same aggregate principal amount and of the same maturity. Mutilated Bonds must be surrendered to the Fiscal Agent. In the rase of a lost, stolen or destroyed Bond, the City and the Fiscal Agent may require satisfactory evidence of the loss, theft or destruction of the Bond and indemnification prior to authenticating and delivering a new Bond. The City and Fiscal Agent may charge the owners of mutilated, lost, stolen or destroyed bonds for their reasonable fees and expenses in connection with the replacing of such Bonds. Limited Obligation of the District Upon Delinquency In the event of a delinquency in the payment of any installment of an assessment, the City will transfer from the Reserve Fund to the Redemption Fund, the amount of such delinquent installment necessary to pay the principal of and interest on the Bonds when due. In the event a Superior Court foreclosure action is instituted pursuant to the City 's covenant to enforce collection of a delinquent assessment installment (or installments), and the City purchases the property in the absence of any other purchaser, the Reserve fund will be used, to the extent of available funds, to make advances to the Redemption Fund for payment of the delinquent amount of the assessment on the property and future assessment installments, including interest thereon, until such property is resold by the City. There is no assurance, however, that the balance in the Reserve Fund will always be sufficient to pay for delinquent assessment installments should they occur. Reserve Fund Pursuant to Part 16 of Division 10 of the California Streets and Highways Code, as amended, a special reserve fund (the "Reserve Fund") for the Bonds will be created to be designated the District No. 94-3 (Merano), and specified as the special "Reserve Fund". The Reserve Fund shall initially be funded in an amount equal to ten percent (10%) of the proceeds of the Bonds and shall by held by the Fiscal Agent. That amount less any amounts transferred to the redemption fund pursuant to Section 8884 of the Street and Highways Code, shall constitute the "Reserve Requirement" for the Bonds. Monies in the Reserve Fund shall be applied as follows: (a) Amounts in the Reserve Fund shall be transferred to the Redemption Fund for the Bonds if, as a result of the delinquencies in the payment of assessments, there are insufficient monies in the Redemption Fund to pay principal of and interest on the Bonds. Amounts so transferred shall be reimbursable to the Reserve Fund from proceeds of redemption or sale of the parcel for which payment of delinquent assessment installments were made from the Reserve Fund. (b) If any assessment is prepaid before the final maturity of the Bonds, the amount of principal which the assessee is required to prepay will be reduced by an amount which is in the same ratio to the original amount of the Reserve Fund as the original amount of the prepaid assessment bears to the total amount of unpaid assessments originally securing the Bonds. The reduction in the amount of principal prepaid will be balanced by a transfer from the Reserve Fund to the Redemption Fund in the same amount. (c) The amount maintained in the Reserve Fund will never exceed the Reserve Requirement. Proceeds of investment of the Reserve Fund will be deposited in the Investment Earnings Fund. (d) Whenever the amount in the Reserve Fund equals or exceeds the amount required to retire all remaining outstanding Bonds, whether by advance retirement or otherwise, the remaining installments of principal and interest not yet due from assessed property owners shall be canceled without payment and the amount of the Reserve Fund shall be transferred to the Redemption Fund. In the event that the balance in the Reserve Fund at the time of liquidation exceeds the amount required to retire all outstanding Bonds in the issue, the excess will be apportioned to each parcel upon which the individual assessment remained unpaid at the time the balance in the Reserve Fund was sufficient to retire all outstanding Bonds. The payments shall be made in cash to the respective owners of the parcels of property in the Assessment District except that, if the excess is not greater than one thousand dollars ($1,000), the excess may be transferred to the General Fund of the City. Covenant to Commence Superior Court Foreclosure The 1915 Act provides that in the event any assessment or installment thereof or any interest thereon is not paid when due, the City may order the institution of a court action to foreclose the lien of the unpaid assessment. In such an action, the real property subject to the unpaid assessment may be sold at judicial foreclosure sale. This foreclosure sale procedure is not mandatory. However, in the Bond Resolution, the City has covenanted with the Bond owners that not later than October 1 in any year, it will file an action in the Superior Court to foreclose the lien of each delinquent assessment if the sum of uncured assessment delinquencies for the preceding fiscal year exceeds 5% of the assessment installments posted to the tax roll for that fiscal year, and if the amount of the Reserve Fund is less than the Reserve Requirement. In the event such Superior Court foreclosure or foreclosures are necessary, there may be a delay in payments to Bondowners pending prosecution of the foreclosure proceedings and receipt by the City of the proceeds of the foreclosure sale; it is also possible that no bid for the purchase of the applicable property would be received at the foreclosure sale. See also the section herein entitled "BONDOWNERS' RISKS". Amendments to the Improvement Bond Act of 1915 (the "Bond Law") enacted in 1988 and effective January 1, 1989 provide that under certain circumstances property may be sold upon foreclosure at a lesser Minimum Price or without a Minimum Price. "Minimum Price" as used in the Bond Law is the amount equal to the delinquent installments of principal or interest of the assessment or reassessment, together with all interest penalties, costs, fees, charges and other amounts more fully detailed in the Bond Law. The court may authorize a sale at less than the Minimum Price if it will not result in an ultimate loss to the Bondowners or, under certain circumstances, if owners of 75% or more of the outstanding bonds consent to such sale. Prior to July 1, 1983, the right of redemption from foreclosure sales was limited to a period of one year from the date of sale. Under legislation effective July 1, 1983, the statutory right of redemption from such foreclosure sales has been repealed. However, a period of 150 days must elapse after a court adjudges and decrees a lien against the lot or parcel of land covered by an assessment before the sale of such parcel can be given. Furthermore, if the purchaser at the We is the judgment creditor, i.e. the City, an action may be commenced by the delinquent property owner within six (6) months after the date of sale to set aside such sale. The constitutionality of the aforementioned legislation which repeals the one year redemption period has not been tested and there can be no assurance that, if tested, such legislation will be upheld. If any landowner files bankruptcy, there could be a delay in payment of assessment installments, as such bankruptcy filing could delay the foreclosure proceedings. In addition, amounts received upon foreclosure sales may not be sufficient to fully repay delinquent assessment installments. It is also possible that no bid would be received at the foreclosure sale. (See "BONDHOLDERS' RISK"). Limited City Liability If a delinquency occurs in the payment of any assessment installment, the City has a duty only to transfer into the Redemption Fund the amount of the delinquency out of the Reserve Fund. This duty of the City is continuing during the period of delinquency, until reinstatement, redemption or sale of the delinquent property. There is no assurance that funds will be available for this purpose and if, during the period of delinquency, there are additional delinquencies after exhaustion of funds in the Reserve Fund, the City is not obligated to transfer into the Redemption Fund the amount of such delinquencies out of any other available monies of the City. Not withstanding, the City may, at its sole option and its sole discretion elect to advance available surplus funds of the City to pay for any delinquent installments pending sale, reinstatement, or redemption of any delinquent property. THE CITY'S LEGAL RESPONSIBILITIES WITH RESPECT TO SUCH DELINQUENT INSTALL- MENTS ARE LIMITED TO ADVANCING THE AMOUNT THEREOF SOLELY FROM ANY AVAILABLE MONIES IN THE RESERVE FUND AND TO UNDERTAKING JUDICIAL FORECLOSURE PROCEEDINGS TO RECOVER SUCH DELINQUENCIES. Tax Covenant The City covenants in the Bond Resolution that it will not make any use of the proceeds of the Bonds or any other funds of the City or of the improvements acquired and constructed with the proceeds of the Bonds or any part thereof which would cause the Bonds to be "arbitrage bonds" subject to federal income taxation by reason of Section 148 of the Internal Revenue Code of 1986, as amended (the "Code"), "private activity bonds" subject to federal income taxation by reason of Section 141(a) of the Code, or obligations subject to federal income taxation because they are "federally guaranteed" as provided in Section 149(b) of the Code; and to that end the City, with respect to the proceeds of the Bonds and such other funds, has covenanted to comply with all requirements of such sections of the Code and all regulations of the United States Department of Treasury issued thereunder to the extent that such requirements are, at the time, applicable and in effect. 7 Estimated Sources and Uses of Bond Funds Sources of Funds: Principal Amount of Bonds $ Less: Underwriter's Discount Total Sources of Funds $ Uses of Funds: Deposit to Improvement Fund $ Deposit to Reserve Fund Deposit to Redemption Fund Cost of Issuance Total Uses of Funds t Excluding oosis of iwuu . 2 Rwa b Capitalized Interest. TABLE 1 ANNUAL DEBT SERVICE S Year Ending September 2 PrinciRLd Interest Total 1995 19% 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 TOTAL M i General THE ASSESSMENT DISTRICT Palm Desert, California is located in the central portion of the Coachella Valley region. The City is bounded by Indian Wells California to the East, Rancho Mirage to the West, the Santa Rosa Mountains to the South and Interstate 10 to the North. Palm Desert is set at approximately 250 feet above sea level and is the point of termination for State Highway 74, the most direct access highway to the San Diego area. Access to Palm Desert is considered good via State Highway I I I and Monterey Avenue, a direct route to the Interstate 10 Freeway. Historically, Palm Desert has had a reputation as one of the more affluent areas of the subject region. Several good to excellent quality resort/residential developments have been, or are currently under construction in Palm Desert. Some of these include Bighorn Country Club, Ironwood Country Club, Palm Valley Country Club, and Indian Ridge Country Club. In addition to good quality residential developments, Palm Desert has attracted the highest quality retail development in the subject region. El Paseo in Palm Desert is generally considered to have replaced Palm Canyon Drive in Palm Springs as the high end shopping corridor in the subject region. The Palm Desert Town Center, a regional mall located in Palm Desert is the largest (in both size and sales volume) among the 4 regional malls in the subject region. Description of the Assessment District The Assessment District consists of a 37.42 gross acre, corner parcel located in the City of Palm Desert, CA. Tentative Tract Map Number 27882, filed in October 1993, divided the corner parcel into 126 single family home lots and one 8.64 remainder parcel. The parcel is located in the North East comer of Monterey Avenue and Country Club Drive. The 126 single family lots are proposed to be developed as a project known as "Merano". On April _, 1995 a final subdivision map was recorded and public improvement performance bond posted to complete improvements on the 126 lots. Merano is slated to be a 126 home private gated community consisting of several home models ranging in value from approximately $120,000 to $170,000. The development status of the 8.64 acre remaining parcel is currently undecided, however, the City of Palm Desert has indicated the 8.64 acres could under current zoning be developed with 156 apartment units. The 37.42 acre property, as proposed, is a legally conforming use under the provisions of the existing P.K-7 zoning ordinance. All of the surrounding uses have similar or complementary zoning, giving the immediate area of the subject of a homogeneous appearance. The provisions of the P.R.-7 zoning ordinance are comparatively general in nature, an allow for a wide variety of medium density residential developments. The P.R-7, Planned Residential zoning of the subject is considered to be appropriate and does not have a negative impact on the potential sale price or marketability of the 126 lot portion of the subject property. The 8.64 acre remainder parcel is located on the NEC of Country Club Drive and Monterey Avenue, Palm Desert, CA. Both Country Club Drive and Monterey Avenue are major arteriels in the region. Proposals to change the zoning of this parcel to commercial uses was denied twice over the past three years due to the objections of surrounding residential homeowners. According to the City of Palm Desert, the 8.64 acre remainder parcel of the property could, however, be approved for a 156 unit apartment project based on current zoning. The 37.42 acre site was purchased in 1987 by The Robert Mayer Trust for a purchase price of S . On _, 1994 Title was tranferred to The Avandale Corporation ("the property owner") a special purpose development corporation wholly owned by the Robert Mayer Trust. An appraisal of the property by McKensie & Associates dated March 5, 1995 was completed. The appraised the value of the 37.42 acres subject to assessment is 9 $5,790,000 which is 3.86 times the amount of outstanding assessments. According to the County of Riverside, there are no other prior or outstanding assessment liens and there are no prior or current years property tax delinquencies. TABLE 2 VALUE -TO -LIEN RATIO Parcel No. (3) Appraised Value Assessment Value -to -Lien Ratio 620-180-003 (126 Lots) (1) $4,755,000 $1,232,188 3.86: 1 620-190-003 (8.64 Remaining Parcel) (2) $1,035,000 $267,812 3.86 : 1 TOTAL $5,790,000 $1,500,000 3.86: 1 (1) Represents 126 single family lots recorded on 1995. All lots have identical assessments of $9,779.27 and identical appraised values of $379738. (2) Represents 8.64 acre parcel recorded on � 1995. (3) Although subdivided new individual parcel numbers have not yet been assigned by the County Sourm: Appra" preW-ed by MacKenzie and Associates. The Development Plan THE FOLLOWING SPECIFIC INFORMATION HAS BEEN PROVIDED BY THE OWNER OF THE PARCELS AND BY THE APPRAISER, AND HAS NOT BEEN INDEPENDENTLY VERIFIED. NO ASSURANCE CAN BE GIVEN THAT THE PROPERTY OWNER'S DEVELOPMENT PLAN OR DEVELOPMENT SCHEDULE WILL BE COMPLETED AS DESCRIBED IN THIS SECTION. THIS INFORMATION IS INCLUDED BECAUSE IT MAY BE RELEVANT TO AN INFORMED EVALUATION OF THE PROJECT AND THE SECURITY FOR THE BONDS. The property owner, Avandale Corporation has entered into a [joint venture] agreement with [S.H. Sanberg & Associates] ("the Developer") to develop a 126 home residential sub -division. The sub -division will be gated and have private streets. As of April 1, 1995, four model homes have been completed and deposits in future home sales are expected. Single family home construction is expected to begin by May 1, 1995. S.H. Sanberg & Associates is the builder and expects to build homes as deposits on homes are received. Construction loan committments from the project have been received from and Steven Sanberg has been a builder for over twenty years, with experience in commercial properties, single family residences and multi family dwellings. Projects include office buildings in Santa Ana and Tustin and homes in Yorba Linda, Fullerton, Anaheim Hills, Granada Hills, Mission Viejo, Laguna Beach, Chino, and most recently, two projects in Fontana and one project in Desert Hot Springs. Prior experience of the developer includes 47 homes - Upland; 48 homes - Laguna Nigel; 37 homes - Mission Viejo; 85 homes - Canoga Park; 42 homes - Simi Valley; 14 homes - Laguna Beach; 36 homes - Chino; 68 apartments - Fontana; 118 apartments - Fontana; 274 apartments - Loma Linda; 20 homes - Fontana; 24 homes - Fontana and _ homes - Desert Hot Springs. The project is priced competitively and home marketability will be directed toward senior citizens and first time home buyers. The developer expects to build six homes per month beginning in May 1995 and should complete the project by January of 1997. The homes are expected to be sold in the $120,000 to $170,00 price range. Home 10 *Arr sq. footage is expected to range from _ to — The developer intends and has posted performance bonds with the City to complete all the public improvements necessary to construct 126 single family homes including the widening of both Country Club Drive and Monterey Avenue. The proceeds from the Bonds will be used to acquire certain sewer and water and street improvements once completed under the terms of the Acquisition Agreement. The balance or the public improvements , including interior streets, curbs and gutters, are to be financed privately. Property Ownership in the Assessment District THE FOLLOWING SPECIFIC INFORMATION REGARDING OWNERSHIP OF ASSESSED PARCELS IN THE ASSESSMENT DISTRICT HAS BEEN PROVIDED BY THE OWNER OF THE PARCELS AND HAS NOT BEEN INDEPENDENTLY VERIFIED. THIS INFORMATION IS INCLUDED BECAUSE IT MAY BE RELEVANT TO AN INFORMED EVALUATION OF THE PROJECT AND THE SECURITY FOR THE BONDS. HOWEVER, NO ASSURANCE CAN BE GIVEN THAT OWNERSHIP OF ONE OR MORE OF SUCH PARCELS WILL NOT BE CHANGED OR THAT THE PROJECTS PLANNED BY SUCH OWNERS WILL OCCUR, AS IS DESCRIBED BELOW. THIS INFORMATION SHOULD NOT BE CONSTRUED TO SUGGEST THAT THE BONDS OR THE ASSESSMENTS SECURING THE BONDS ARE PERSONAL OBLIGATIONS OF THE PROPERTY OWNER OR THE DEVELOPER The 37.42 acre parcel was originally purchased by the Robert Mayer Trust in 1987. In 1994 title to the 37.42 acre site to transferred to The Avandale Corporation a California Corporation, expressly formed to develop the project. The Avandale Corporation is wholly owned by the Robert Mayer Trust. Other than the 37.42 acre property site the property owner has no other significant assets or liabilities, with the exception of a note due in the amount of $1,515,000 which is secured by a Trust Deed and recorded in favor of McAllister, a private individual, on September 3, 1992. The terms of the note require it be paid in full on August 31, 1995. The property owner expects to [refinance] the note from The Robert Mayer trust is the sole shareholder of the property owner. The trust has been active in real estate development since 1982. Robert Mayer, the executor of the trust, has been in the real estate development business since 1955 and has been directly involved in the development of over 25,000 apartment and single family homes. Projects developed by Robert Mayer include: , etc. 7 [MORE TO COME] In 1994, the property owner entered in a [joint venture] agreement with S.H. Sanberg and Associates to serve as project manager and builder on the 126 home sub -division. Sanberg has extensive experience including single family homes and condominiums. 11 n i Availability of Public Utilities The providers of public utilities within the Assessment District are expected to be as follows: Electricity: Natural Gas: Telephone Service: Water: Sewage Collection: Sewage Treatment: Cable TV: Property Tax Status Southern California Edison Southern California Gas Company General Telephone Coachella Valley Water District Coachella Valley Water District Coachella Valley Water District Colony Cablevision Warner Cable Desert Hot Springs Cablevision Palmer Cablevision As of March 1, 1995, none of the parcels subject to assessment in the Assessment District have delinquent taxes. Land Values A SUMMARY OF THE APPRAISAL, WHICH SETS FORTH THE FINAL VALUATION CONCLUSIONS OF THE APPRAISER, IS CONTAINED IN APPENDIX A ATTACHED HERETO. APPENDIX A SHOULD BE READ IN ITS ENTIRETY FOR AN EXPLANATION OF THE APPRAISER'S METHODOLOGY AND THE ASSUMPTIONS UNDERLYING AND THE CONDITIONS LIMITING THE VALUATION CONCLUSIONS. NO REPRESENTATIONS ARE BEING MADE REGARDING THE ACCURACY OR COMPLETENESS OF THE APPRAISAL. PROSPECTIVE BOND PURCHASERS ARE CAUTIONED NOT TO RELY SOLELY ON THE VALUATIONS INDICATED IN THE APPRAISAL IN DETERMINING WHETHER OR NOT THE BONDS DESCRIBED HEREIN ARE A SUITABLE INVESTMENT. PROSPECTIVE PURCHASERS OF THE BONDS SHOULD NOT ASSUME THAT THE PROPERTY WITHIN THE ASSESSMENT DISTRICT COULD BE SOLD FOR THE VALUES INDICATED IN THE APPRAISAL AT A FORECLOSURE SALE FOR DELINQUENT ASSESSMENT. A letter from the Appraiser dated March 5, 1995, summarizes the Appraiser's opinion with respect to the market value, on March 1, 1995, of the land in the Assessment District, assuming completion of the construction of the Improvement Project and assuming the completion of all other public improvements required. The construction of public improvements, primarily the private streets and utility undergrounding, not financed as part of the improvement project have been guaranteed by a development completion board as part of the final subdivision approval process. The Appraiser's letter indicates that the aggregate market value of the parcels within the Assessment District, assuming completion of the improvement project, is $5,790,000. The Appraiser's letter is contained in APPENDIX A to this Official Statement. The total amount of assessments levied against these parcels is $1,300,001; using the total valuation of $5,790,000 the overall value -to -lien ratio in the District is 3.86 to 1 (see "Appraisal Summary"). The 126 single family lots as recorded and subdivided on April _, 1995 have an appraised value of $37,738 per lot. The assessments per lot total $9,779.27 resulting in individual value -to -lien ratios of 3.96:1. The 8.64 acre remainder parcel is appraised at 1,035,000. The assessments against this parcel is $267,813 resulting in a value -to -lien ratio of 3.86:1. 12 M C A copy of the confirmed Assessment Engineer's Report and the Appraisal for the District No. 94-3 (Merano) is available for inspection at the office of the City. Description of the Improvement Project The improvements to be constructed within the Assessment District with the proceeds of the Bonds (the "Improvement Project") are set forth below. A copy of the Engineer's Report is available for inspection at the office of the District. The acquired improvements included within the Assessment District No. 94-3 are associated with the "Merano" development located at the Northeast corner of Country Club Drive and Monterey Avenue within the incorporated city limits of the City of Palm Desert. The improvements consist of a combination of infrastructure facilities pertinent to the development of the subject property. The project received tentative tract map approval from the City Council and is commonly referred to as Tract No. 27882. Briefly, the construction items include the widening of Monterey Avenue and Country Club Drive along with providing public facilities including sewer, water, storm drainage, utilities and minor grading to each of the blocks within the Merano Development. The extent of the facilities included in the assessment district are Shawn on the Map of Improvements. The cost for design and construction for those improvements which are eligible to be assessed have been included in the Assessment District. The following is a general listing of the improvements included in Assessment District No. 94-3 (see cost estimate for details as to each street area): Tract No. 27882-1 - 64 Lots 1) Country Club Drive roadway improvements including public utilities 2) Monterey Avenue roadway improvements including public utilities 3) Via Scena - roadway, sewer, water & storm drainage improvements 4) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage facilities. Tract No. 27882-2 - 64 Lots 1) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage facilities. Tract No. 27882 (Unrecorded Lot - Future Development) 1) Partial Country Club Drive roadway improvements 2) Partial Monterey Avenue roadway improvements Sauce:Distrid No. 943 (Meiawl Bngirbeer's Report, prepared by KWC FA9dWWin& Inc., revised 1991, as am ded � 1995. 13 M Method of Assessment Spread The Streets and Highways Code requires that assessments levied, pursuant to the Municipal Improvement Act of 1913, be based on the benefit properties receive from the works of improvement. However, the law does not specify the method or formula that should be used to apportion the assessments in special assessment district proceedings. In accordance with the statutes, it is necessary to identify the benefit that the works of improvement will render to each of the properties within the assessment district. It is also necessary to identify that the properties receive a special and direct benefit as distinguished from benefit to the general public. The assessment engineer is appointed for the purpose of analyzing the facts, estimating the costs and determining the method or formula for the assessment obligation to the benefited properties. For these proceedings, the City has retained the firm of'K.W.C. Engineers, Inc. as the Assessment Engineer. The Assessment Engineer will make his recommendation at the public hearing for the formation of the assessment district. The final authority and action will rest with the City Council after hearing all testimony and evidence presented at the public hearing. Upon the close of the public hearing, the City Council must make the final action in determining whether or not the assessment spread has been made in direct proportion to the benefits received. The works of improvement within the Assessment District consist of various infrastructure facilities, including but not limited to street widening, roadway improvements, sewer, water and storm drain facilities, utilities and minor grading, as depicted on Exhibit "D" of the engineer's report. These improvements are necessary for the orderly development of the subject property and the improvements are of direct and special benefit specifically to only those properties within the limits of the Assessment District. Two methods of assessment were used to allocate the benefit of the facilities to the properties within Assessment District 94-3. The first method of assessment applied to those facilities that benefited the ultimate 126 residential lots within Tract No. 27882-1 and 27882-2. The second method of assessment is for the remainder 8.94 acre parcel within Tract No. 27882 that has yet to be developed. The method of assessment applicable to the 126 residential lots within Tract No. 27882-1 and 27882-2 will be applied on a per unit basis. It should be noted that at the time the bonds are sold for this project that both Tract No. 27882-1 Tract 27882-2 will be recorded. The improvements required for the residential portion of this project are essentially divided into two areas. The first area being the public widening improvements required along Country Club Drive, Monterey Avenue and Via Scena roadways that are a condition of development for this project. The assessment for the cost of improvements to these public roadway improvements has been determined to be equitable on a per unit basis. The second category of assessment within the residential development will be for the construction of public sewer, water and storm drain facilities. In addition to the mainline facilities, service laterals for the water and sewer will be installed. Catch basins and other pertinent drainage structures for the storm drainage system are included. Each of these facilities provides a direct benefit to each of the 126 lots within the development. Therefore, it has been determined that for this portion of the assessment the cost shall also be spread on a per unit basis. The second method of assessment applies to the remainder undeveloped parcel within future Tract No. 27882. The proposed improvements include the widening of the existing streets abutting the subject property including Monterey Avenue and Country Club Drive. Within the widening includes costs for roadway improvements, traffic signals and dry utilities. The proposed facilities provide a direct benefit to the entire 8.94 acre parcel. Therefore, the 14 assessment has been determined to be spread on a per square foot basis. The extent of the proposed improvements has been shown on the map of improvements as Exhibit "D". The method of assessment for spreading the incidental expenses varies for the three items included within that category. The procedural costs and the bond issuance costs will be spread based on the respective percentage of the total amount of the funds assessed to the 126 lots within Tract Nos. 27882-1 and 27882-2, and the undeveloped lot of Tract No. 27882. The cash payoff for the two liens against the property will be assessed on a per unit basis assuming a total of 164 lots, 126 from Tracts No. 27882-1 and 27882-2 and 38 "future" units from the undeveloped lot within Tract No. 27882. There is a third area of benefit to the residential development. The improvement of Monterey Avenue and Country Club Drive will provide the project entrance and, as such, is of benefit in setting the tone of the residential development. Such improvement is stated in the overall conditions of the development and meeting such conditions is necessary. Due to the total construction costs and value limitations of the appraisal, the total funds required for Monterey Avenue and Country Club Drive are not included in the bond amount. The additional costs, approximately $95,000 exclusive of power pole undergrounding in Country Club Drive, will be met by the developer. Also, upon recordation of Tract No. 27882-1 & 27882-2, the developer is providing subdivision bonds guaranteeing 100% of the construction costs for Monterey Avenue and Country Club Drive. The City has requested that standby arrangements be made to guarantee completion of the two streets prior to completion of the Assessment District. The developer has therefore agreed that the amount of $95,000 will be placed in a special account within the Assessment District construction fund. No portion of this amount for improvement other than Monterey Avenue and Country Club can be expended until all improvements on these streets are completed. The developer has further agreed to a resolution of change and modification to define the use of these funds on Monterey Avenue and Country Club Drive. We have shown a comparison of the appraised value of the recorded lots and the amount of assessment spread against those lots in Exhibit "C". This includes the recorded lots within Tract No. 27882-1, the single assessment which covers the 64 unrecorded lots within Tract 27882-2, and the remainder undeveloped parcel within future Tract No. 27882. The assessments to be levied on parcels of property within the assessment district which have not yet been subdivided will be apportioned among the lots created within the subdivision of parcels pursuant to Part 10.5 (commencing with Section 8740) of the Streets and Highways Code upon the recording of the subdivision maps. Souroe: District No. 94-3 (Meranol EnginaWs Report, propwad by KWC Engkowing, Inc., ravind 19 , as ammded � 1"5. 15 En In TABLE 3 IMPROVEMENT COST ESTIMATE COUNTRY CLUB DRIVE - RESIDENTIAL Site Preparation $ 5,500.00 Demolition/Removals 2,900.00 Earthwork 814.00 Street Improvements 53,806.00 Dry Utilities 23,000.00 Water 20,875.00 Sewer 10,852.00 Drainage 37,185.00 Medians 14,190.00 Subtotal S 169,122.00 MONTEREY AVENUE - RESIDENTIAL Site Preparation $ 5,500.00 Earthwork 2,548.64 Street Improvements 68,587.70 Water 20,544.00 Medians 22,660.00 Subtotal S 119,840.34 VIA SCENA - RESIDENTIAL Site Preparation $ 500.00 Earthwork 3,654.48 Street Improvements 31,638.50 Water 22,105.00 Sewer 7,120.00 Storm Drainage 51,826.00 Subtotal S 116,843.98 PHASE 1- RESIDENTIAL Water $ 95,096.00 Sewer 82,690.00 Storm Drainage 15,250.00 Subtotal S 193,036.00 PHASE 2 - RESIDENTIAL Water $82,230.00 Sewer 74,700.00 Subtotal S 156,930.00 10% CONTINGENCY $75,577.23 SUBTOTAL S 831,349.55 16 cm TRACT NOS. 27882 (8.64 ACRE PARCEL) COUNTRY CLUB DRIVE Site Preparation $1,500.00 Demolition/Removal 288.00 Earthwork 700.00 Street Improvements 83,282.00 Subtotal S 85,770.00 MONTEREY AVENUE Site Preparation $ 1,500.00 Demolition/Removal 812.00 Earthwork 538.00 Street Improvements 65,293.00 Subtotal S 68,143.00 10% CONTINGENCY $ 15,391.30 SUBTOTAL S 169,304.30 TOTAL CONSTRUCTION COSTS S 1,000,653.95 INCIDENTAL EXPENSES PROCEDURAL COSTS Bond Counsel S 35,000.00 Financial Advisor 30,000.00 Fiscal Agent 7,000.00 Assessment Engineer 12,500.00 Printing 8,500.00 Incidental Contingency 5,000.00 Subtotal S 98,000.00 BOND ISSUANCE COSTS Capitalized Interest S 46,202.78 Debt Service Reserve Fund 146,975.00 Underwriter's Discount 30,000.00 Contingency 2,226.37 Subtotal S 225,404.15 CASH PAYOFFS Reassessment District $ 106,188.00 Ordinance Reimbursement 69,754.00 Subtotal S 175,942.00 TOTAL INCIDENTAL EXPENSES S 499,346.15 TOTAL ESTIMATED AMOUNT TO ASSESSMENT S 1,500,000.00 17 CM General BONDOWNERS' RISK In order to pay debt service on the Bonds, it is necessary that unpaid installments of the assessments on property within the Assessment District are paid in a timely manner. Should the installments not be paid on time, the City has established a Reserve Fund in the amount of ten percent (10%) of the proceeds of the bond issue to cover delinquencies. In all respects the Bonds shall be governed by the provisions of the Bond Law except the provisions of Parts 12 and 13 of the Bond Law requiring the City to advance the amount of delinquent assessment installments shall apply only to the extent of monies available for such purpose in the Reserve Fund and to the duty of the City to undertake judicial foreclosure as covenanted by resolution. If there are additional delinquencies after exhaustion of funds in the Reserve Fund, the District has no direct or contingent liability to transfer into the Redemption Fund the amount of the delinquency out of any other available monies of the City. The assessments are secured by liens on seven of the twelve parcels of land that constitute the Assessment District. In the event of a default in the payment of an assessment installment, the City has covenanted to institute foreclosure proceedings not later than October 1 in any year (see "Security for the Bonds" herein). In describing the Assessment District, its sole landowner, that landowner's plans for development and the proposed improvements, current circumstances and facts have formed the basis for assumptions regarding, among other things, the value -to -lien ratios within the Assessment District, the proportionate share of the debt service on the Bonds to be attributed to each parcel and even the principal amount of unpaid assessments. While these assumptions are believed reasonable, given such facts and circumstances as of the date hereof, no assurance can be given that -substantial adverse changes will not occur following the date hereof which erode or eliminate the value of such assumptions. Changes, for example, in the ownership of the land in the Assessment District, the development plans of landowners, bankruptcy of the landowners, inability to foreclose on property within the Assessment District, the possibility of substantial late payments of assessments or prepayment of assessment installments, may all have such effects. Prospective purchasers of the Bonds are encouraged to evaluate the likelihood of such changes in determining whether or not to invest in the Bonds. Further, the current responsibility within the Assessment District for paying the semi-annual assessment installments is not diversified. All of the annual assessment installments will initially be payable by one property owner in the Assessment District. The failure by such owner to pay its assessment installments in a timely manner could result in the rapid, total depletion of the Reserve Fund prior to reimbursement from resales of property or delinquency redemptions. In that event, there could be a default or a delay in payments to Bond owners. Failure by the current landowner or any subsequent owners of the assessed parcels of land in the Assessment District to pay installments of the assessments when due, depletion of the Reserve Fund or the inability of the City to sell the property in foreclosure proceedings for amounts sufficient to cover the delinquent installments of the assessment levied against such property may result in the inability of the District to make full or punctual payments of principal of and interest on the Bonds. The unpaid assessments do not constitute a personal indebtedness of the current or any subsequent owners of property within the Assessment District. There is no assurance that the current or any subsequent owners will pay such installments even though they may be financially able to do so. 18 Concentration of Property Owners Unless and until further sales of property in the Assessment District occur, at the time of delivery of the Bonds, the entire payment of the assessment installments is solely dependent upon timely payment by one property owner. Failure by this owner to sell parcels of land in the Assessment District or its failure to construct buildings for sale or lease may result in its failure to pay assessment installments when due, and therefore could result in the rapid, total depletion of the Reserve Fund prior to reimbursement from the resales of property or delinquency redemptions. In that event, there could be a default in the payments of the principal of and interest on the Bonds. Failure to Develop Property While construction of some infrastructure has commenced on a portion of the property in the Assessment District, the majority of it is presently vacant, undeveloped land. Completion of current development and future development of this property may be affected by changes in general economic conditions, fluctuations in the real estate market, competition from other developments and other similar factors. Failure to obtain any required approval could adversely affect any future land development operations. Moreover, there can be no assurance that any future land development operations within the Assessment District will not be adversely affected by future governmental policies, including those relating to the national economy. More specifically, the ability of the property owner to implement his development projects is dependent upon receipt of final development approvals from the City of Palm Desert. The City can provide no assurance that such development approvals will be obtained or, if obtained, when they would be effective. Failure of the property owner to obtain expected development approvals from the County may result in his failure to pay assessment installments when due. Furthermore, failure to obtain such development approvals could motivate the owner to seek protection under bankruptcy, insolvency, or other laws protecting the rights of property owners from creditors, and the commencement of such bankruptcy proceedings, as further outlined below in the section entitled "Bankruptcy", may result in a delay in the ability of the City to foreclose the lien of such delinquent assessments. Additional Debt As stated above, at the present time, the majority of the land in the Assessment District is vacant and undeveloped. In order to construct the planned residential community and various on -site improvements, the property owner in the Assessment District may be required to obtain financing that will increase the debt for which the land in the Assessment District is the security. Such increased debt could reduce the ability or desire of the property owner or any future property owner to pay the annual assessment installments levied against the land in the Assessment District. Bankruptcy The payment of the landowner's assessment installments and the ability of the City to foreclose the lien of a delinquent unpaid assessment installment, as discussed in the section herein entitled '"THE BONDS — Security for the Bonds", may be limited by bankruptcy, insolvency, or other laws generally affecting creditor's rights or by the laws of the State relating to judicial foreclosure. Although bankruptcy proceedings would not cause the assessment lien to become extinguished, bankruptcy of any landowner could result in a delay in the City prosecuting Superior Court foreclosure 19 proceedings. Absent sufficient money in the Reserve Fund, such delay would increase the likelihood of a delay or a default in payment of the principal of and interest on the Bonds, and the possibility of delinquent assessment installments not being paid in full. The various legal opinions to be delivered concurrently with the delivery of the Bonds (including Bond Counsel's approving legal opinion) will be qualified as to the enforceability of the various legal instruments by bankruptcy, reorganization, insolvency or other similar laws affecting the rights of creditors generally. Ballot Initiatives Constitutional initiatives or other initiative measures from time to time may be adopted by California voters in general, and the City of Palm Desert voters in particular. This might result in placing limitations on the ability of the State, counties or other local agencies to increase revenues or appropriations, or on the ability of the landowners to complete development. Availability of City's Funds As discussed in the section herein entitled "THE BONDS — Limited Obligation of the City Upon Delinquency", in the event of a delinquency in the payment of any installment of an assessment, the City will transfer from the Reserve Fund to the Redemption Fund, to the extent of available funds, the amount necessary to pay the next maturing installment of principal of and interest on the Bonds. In the event a Superior Court foreclosure action is instituted pursuant to the City's covenant to enforce a delinquent assessment installment (or installments), and the City purchases the property in the absence of sufficient monies. The Reserve Fund will be used, to the extent of available funds, to make advances to the assessment on the property and future assessment installments, including interest thereon, until such property is resold by the City. The City has determined that it shall not be obligated to use available funds (including any surplus funds), other than the Reserve Fund, to purchase such delinquent parcels of property or pay the delinquent installment and future installments of the assessments on such parcels. Bondowners must assume, therefore, that the sole source of funds for the purchase of such delinquent parcels and the payment of such delinquent assessments will be the Reserve Fund. Articles XIII A and B of the State Constitution On June 6, 1978, California voters approved an amendment to the California Constitution commonly known as Proposition 13, the Jarvis/Gann Amendment, which added Article XIII A to the California Constitution. The effect of Article XIII A is to limit ad valorem taxes on real property. On November 7, 1978, certain clarifications were made to Article X1II A. Enactment of Article XIII A of the California Constitution has reduced the amount of general property tax revenues received by the District. In addition, the enactment of Article XIII A and subsequent legislation effectively repealed the otherwise mandatory duty of legislative bodies issuing bonds pursuant to the Bond Law to levy and collect a special tax, in an amount necessary to pay delinquent assessment installments, but not to exceed ten cents (10t) on each one hundred dollars ($100) of assessable property within the District in one year, if surplus funds were not available to cover delinquencies. 20 At the November 6, 1979 general election, Proposition 4 (the Gann Initiative) was approved by the voters of California. That proposition added Article XIII B to the California constitution. Article XIII B limits the annual appropriations of the District, as well as of the State and other local governments, to the amount of appropriations for the prior year adjusted for changes in the cost of living and population. The proceeds of special assessments are not subject to the District's appropriation limits under Article XIII B. On July Z 1979, the Fifth District Court of Appeal (94 Cal. App. 3d 974) rendered a 3-0 decision that rules in effect that special assessments are not subject to the limitations of Article XIH A (Proposition 13). The court held that the one percent (1%) tax limitation imposed by California Constitution Article XHI A on ad valorem taxes does not apply to special assessments levied pursuant to Streets and Highways Code, Sections 5000 et sea., the Improvement Act of 1911 and the 1913 Act. The court further held that because special assessments pursuant to such act are not within the definition of "Special Taxes" in Article XIII A, the California Constitution does not require the issuance of bonds to be approved by an election of two-thirds of the qualified electors. On September 1Z 1979, the California Supreme Court refused to hear an appeal of the lower court's decision, thereby upholding the decision of the lower court. On December 17,1980, the Third District Court of Appeal (113 Cal. App. 3d 443) rendered a 3-0 decision that rules in effect that special assessments are not subject to the limitation of Article XIII B (Proposition 4). The court held that the definition of "proceeds of taxes", unposed by California Constitution Article XIII B, does not apply to seq., the Improvement Act of 1911 and the 1913 Act. The decision of the court was not appealed and the decision is now final and conclusive. Appraised Value The Appraisal prepared by McKensie & Associates dated 1995, was prepared for the purpose of estimating the market value, as of that date, of the land in the Assessment District in its present state and assuming completion of the construction and acquisition of the Improvement Project. No assurance can be given, however, that should one or more of the parcels of property in the Assessment District become delinquent due to unpaid assessment installments, they could be foreclosed upon and sold for the amount of the delinquency, that any bid would be received for such property or, if a bid is received, that such bid would be sufficient to pay delinquent installments. LEGAL OPINION The legal opinion of Best, Best & Krieger, A Professional Corporation, Riverside, California, approving the validity of the Bonds will be made available to purchasers at the time of original delivery and will be printed on the back of each definitive bond. TAX EXEMPTION In the opinion of Best, Best & Krieger, A Professional Corporation, Riverside, California, Bond Counsel, under existing laws, regulations, rulings and judicial decisions, interest on the Bonds is exempt from personal income taxes imposed by the State of California, is excluded from gross income for federal income tax purposes and is not an item of tax preference for purposes of the federal alternative minimum tax imposes on individuals and corporations; however, Bond Counsel notes that, with respect to certain corporations (as defined for federal income tax purposes), interest on the Bonds will be 21 MW VMW included in determining corporate adjusted net book income (adjusted current earnings for taxable years ending after December 31,19_), a portion of which may increase the alternative minimum taxable income of such corporations. Bond Counsel's opinion as to the exclusion from gross income of interest on the Bonds is subject to the condition that the City comply with all requirements of the Internal Revenue Code of 1986, as amended (the "Code"), that must be satisfied subsequent to the issuance of the Bonds to assure that interest on the Bonds will not become includable in gross income for federal income tax purposes. Failure to comply with such requirements could cause interest on the Bonds to be included in gross income for federal income tax purposes retroactive to the date of issuance of the Bonds. The City has covenanted to comply with all such requirements. Bond Counsel has not undertaken to determine (or to inform any person) whether any actions taken (or not taken) or events occurring after the date of issuance of the Bonds may affect the tax status of interest on the Bonds. Although Bond Counsel has rendered an opinion that interest on the Bonds is excluded from gross income for federal income tax purposes, the accrual or receipt of interest on the Bonds may otherwise affect the federal income tax liability of the recipient. The extent of these other tax consequences will depend upon the recipient's particular tax status and other items of income or deductions. Bond Counsel expresses no opinion regarding any such consequences. Accordingly, all potential bond purchasers may wish to consult their tax advisors before purchasing any of the Bonds. NO LITIGATION There is no action, suit or proceeding known by the City to be pending at the present time restraining or enjoining the delivery of the Bonds or in any way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the execution or delivery thereof. A no litigation certificate executed by the City and a no litigation opinion of the City's counsel will be required to be delivered to the Underwriter simultaneously with the delivery of the Bonds. NO,RATING The City has not made, and does not contemplate making, application to any rating agency for the assignment of a rating to the Bonds. UNDERWRITING . as Underwriter, has purchased the Bonds from the City at an aggregate discount of $ from the total par value of Bonds as set forth on the cover page of this Official Statement. The public offering prices may be changed from time to time by the Underwriter. The Underwriter may offer and sell Bonds to certain dealers and others at a price lower than the offering price stated on the cover page hereof. FINANCIAL ADVISOR C.M. de Crinis & Co., Inc., Los Angeles, California has acted as Financial Advisor to the City in connection with the issuance of the Bonds. The Financial Advisor assisted the City in matters relating to the planning, structuring and issuance of the Bonds including preparation of this Official Statement. Requests for information concerning the District should be addressed to C.M. de Crinis & Co., Inc., 8439 Sunset Boulevard, Suite 104, Los Angeles, California 90069, (213) 656-9700. 22 065 CM ADDITIONAL INFORMATION Any statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly stated, are set forth as such and not as representations of fact, and no representation is made that any of the estimates will be realized. This Official Statement is not to be construed as a contract or agreement between the City and the purchasers, holders or owners of any of the Bonds. Copies of this Official Statement in reasonable quantity and other documents referred to herein may be obtained from the offices of the District. The Official Statement has been duly authorized by the City pursuant to a resolution adopted by the City Council on 19 . CITY OF PALM DESERT By: /s/Buford A. Crites Mayor 23 m E5 APPENDIX A [Appraisal Summary] r.M] NOW ` APPENDIX B THE FOLLOWING INFORMATION IS PRESENTED AS GENERAL BACKGROUND DATA. THE BONDS ARE PAYABLE FROM THE ASSESSMENTS AND OTHER SOURCES DESCRIBED IN THE OFFICIAL STATEMENT. THE TAXING POWER OF THE CITY OF PALM DESERT, RIVERSIDE COUNTY, THE STATE OF CALIFORNIA OR ANY POLITICAL SUBDIVISION THEREOF IS NOT PLEDGED TO THE PAYMENT OF THE BONDS. SEE THE SECTION HEREIN ENTITLED "THE BONDS". General The subject is region is known as the Coachella Valley. The Coachella Valley is located m the lower desert of Riverside County in southeastern California. The boundaries of the subject region are considered to be the Banning pass (ext.) to the west, the Salton Sea (ext.) to the east, the Santa Rosa Mountains to the south and 29 Palms Highway to the north; an area of over 500 square miles. The delineation of the regional area is based primarily upon the surrounding natural mountainous terrain which created the Coachella Valley. The Valley floor is approximately 200 feet above sea level. Contrasted by the height of Mt. San Jacinto at 10,804, the lower desert is home to a variety of creosotes, cactus and other succulents. The Coachella Valley is best known as a destination resort area. The Coachella Valley contains some of the worlds best known golf resorts, including; PGA West, Grand Champions Resort, Marriott's Desert Springs Resort, Indian Wells Country Club, and the La Quinta Hotel Golf & Tennis Resort. There are over 70 public and private golf facilities located in the Coachella Valley. The area's and desert climate and resort facilities made it popular for vacationers from around the world since the 1930's. The Valley is located in the center of the fastest growing county in California, Riverside County. The communities making up the Coachella Valley include Desert Hot Springs, Palm Desert, Palm Springs, Cathedral City, Rancho Mirage, Indian Wells, Bermuda Dunes, La Quinta, Indio, Coachella, Thousand Palms, Mecca and Thermal. The Valley's population swells during the winter and spring months to over 400,000 people, with a permanent population of 253,854 during 1992. Since the 1990 census, the permanent population is estimated to have grown approximately 16.5% per year. The Coachella Valley is rapidly becoming an acceptable alternative to those seeking to relocate from Los Angeles and Orange Counties. The historical employment base of lower paying service jobs is being supplemented with increasing development of the industrial and other job sectors. The allure of mild temperatures, consistent weather, great recreational facilities and easy access, insure the Coachella Valleys' long term ability to compete in the second home and retirement market place. The possible addition of class 3 gaming to the subject region is currently the hottest economic topic. However, it is too early to assess the potential impacts of the proposed gaming facilities on the regional economy. The Coachella Valley contains hundreds of awes of undeveloped residential, commercial and industrial land. The region is considered to be in the growth stage of its economic life cycle. Adequate infrastructure exists to support continued growth, and it appears likely that the subject region will continue to be a viable region for most types of development into the foreseeable future. B-1 Cn Introduction The City of Palm Desert (the "City"), incorporated in 1973 as a general law city, is located in the Coachella Valley and is approximately mid -way between the cities of Indio and Palm Springs, 117 miles east of Los Angeles,118 miles northeast of San Diego and 515 miles southeast of San Francisco. The City is located in the County of Riverside (the "County"). Elevation of the City is 243 feet and the mean temperature is 73.1 degrees. Except for the summers, the weather is mild and annual average rainfall is 3.38 inches. The popoulation was estimated as 27,273 in May, 1994, an increase of approximately 013 since 1990. The City encompassess an area of approximately 24 square miles. Organization Voters elect a five member City Council to four-year overlapping terms. The City Council selects one of its members to serve as Mayor and appoints a City Manager to conduct the day to day business of the City. Population The table below shows the population growth of the City and the County from 1975 to August 1994. City and County Population Growth (As of January 1) City County Year Population Population 1975 81900 N/A 1980 11,801 634,199 1985 16,636(1) 633,923 1990 22,760 1,024,600 1991 23,978 1,110,021 1992 24,817 1,225,018 1993 26,510 1,314,070 1994 27,273 1,357,400 Source: City of Palm Desert (1) The population for 1965 was revised using the 1990 census. B-2 on Property Taxation City property taxes are assessed and collected by the County at the same time and on the same rolls as the County, all special district and school district taxes. Assessed valuations are based upon 100% of market value. For assessment and collection purposes, property is calssified either as "secured" or "unsecured," and is listed accordingly on separate parts of the assessment roll. The "secured roll" is that part of the assessment roll containing State assessed property and property taxes on which are alien on real property sufficient, in the opinion of the County Assessor, to secure payment of the taxes. Other property is assessed on the "unsecured roll." Set forth below is a summary of assessed valuations in the City for fiscal years 1988/89 through 1993/94. City of Palm Desert Assessed Valuations Fiscal Years 1988/89-1993/94 Fiscal Year Assessed Value 1988/89 $2,426,114,963 1989/90 2,575,932,802 1990/91 3,143,661,290 1991/92 3,388,343,426 1992/93 3,540,329,565 1993/94 4,168,163,690 Source: County of Riverside Auditor -Controller's Office. The County levies and collects all property taxes (except for levies to support prior voter -approved indebtedness) for property falling within the County's taxing boundaries. The current policy of the County is to advance 100% of the property tax (excluding assessments) owed to the taxing entities. Construction Activity The following table shows building permit valuation for the City rom 1989 through 1993. B-3 CM En Residential New single -dwelling New multidwelling Additions, alterations Total Residential Non -Residential New commercial New industrial Other Additions, alterations Total Non -Residential TOTAL VALUATION Source: City of Palm Desert Taxable Transactions City of Palm Desert Building Permit Valuation (Valuation in Thousands of Dollars) 1989 1990 1991 1992 1993 $81,377 $49,721 $58,130 $92,562 $42,716 15,603 Z491 1,618 Z275 610 3,614 5,076 6,204 4,342 4,574 $100,594 $57,288 $65,954 $99,179 $47,901 $10,168 $11,414 $20,279 $8,783 $8,550 1,573 1,720 447 1,816 275 6,029 4,404 8,361 10,052 7,849 5,882 834 3,865 6,246 4,249 $23,652 $25,879 $32,954 $26,900 $20,924 $124,246 $83,167 $98,908 $126,080 $68,826 The number of establishments selling merchandise subject to sales tax and the valuation of taxable transactions from 1988 to 1992 is presented in the following table: City of Palm Desert Taxable Retail Sales Retail Stores Total all Outlets No. of Taxable No. of Taxable Year Permits Transactions Permits Transactions 1988 576 $326,675 1,143 $414,312 1989 65 380,673 1,365 488,654 1990 750 420,021 1,690 528,866 1991 787 413,938 1,804 515,648 1992 842 425,833 1,993 526,926 Source: California State Board of Equalization B-4 En C"J Community Services The City provides both police and fire protection through contracts with the County. Educational services are provided through the Desert Sands Unified School District which is comprised of six elementary schools, two junior high schools and two high schools. In addition, there are eighteen private schools. Cultural and recreational facilities include sixteen churches and one City library. Income The following table compares effective buying income ("EBI") on an aggregate and median household basis for the years 1988 to 1992 for Riverside County, the State of California and the United States. EBI is a classification developed exclusively by Sales & Marketing Management to distinguish it from other sources reporting income statistics. EBI is defined as personal income less personal tax and non -tax payments (a number often referred to as "disposable" or "after-tax' income.) Personal income is the aggregate of wages and salaries, other labor -related income (such as employer contributions to private pension funds), proprietor's income, rental income (which includes imputed rental income of owner -occupants of non -farm dwellings), dividends paid by corporations, interest income from all sources, and transfer payments (such as pensions and welfare assitance). Deducted from this total are personal taxes (federal, state, and local), non -tax payments (fines, fees, penalties, etc.), and personal contributions to social insurance. Effective Buying Income Total (000's) Median Household 1988 Riverside County $12,8454,056 $ 25,840 California 426,174,001 30,088 United States 3,064,005,977 24,488 1989 Riverside County 13,877,800 26,222 California 444,988,647 30,713 United States 3,287,489,252 25,976 1990 Riverside County 17,202,675 29,016 California 477,784,771 33,342 United States 3,499,365,237 27,912 1991 Riverside County 18,341,321 34,391 California 490,749,649 36,943 United States 3,728,%7,043 32,073 Source: Bill Publications - Sales and Marketing Management, Survey of Buying Power. B-5 E5 CM Industry and Employment The County is a part of the Riverside -San Bernardino -Ontario Primary Metropolitan Statistical area ("PMSA") which includes all of Riverside and San Berardino counties. In addition to varied manufacturing employment, the PMSA has large and growing commercial and service sector emploment. The following table sets fourth the targets employers located in the City: City of Palm Desert Major Employers Number of Company Name Product/Service Employ Marriott's Desert Springs Hotel/Resort 1,500 College of the Desert Community College 637 Robinson's - May Department Store 200 Sunrise Company Developer 150 Source: City of Palm Desert B-6 BEST, BEST & KRIEGER w MwTIKwlMI' MICI M.* 1.016991 .0 C~OR—T .s LAWYERS 400 MISSION SOUARE PALM SPRINGS 3750 UNIVERSITY AVENUE (610) 325-7264 POST OFFICE BOX 1028 - RIVERSIDE. CALIFORNIA 92502-1028 RANCHO MIRAGE TELEPHONE (909) 686-1450 (619) 568-2611 TELECOPIER (009) 888-3083 March 10, 1995 WI R 13 1995 COMMUNITY DEVELOPMENT DEPARTMENT CITY OF PALM DESERT Ray Diaz Assistant City Manager/ Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 Re: City of Palm Desert Assessment District No. 94-3 (Merano) Dear Ray: ONTARIO (009) 989-6584 SAN DIEGO (619) 595-1333 We are enclosing a proposed draft of an Agreement for Acquisition, Conveyanace and Operation of Water and Sanitary Sewer System Improvements which was forwarded to the Coachella Valley Water District and the Robert L. Mayer Trust for review and comment this date. This agreement follows the same format which was previously approved by the City and Coachella Valley Water District in connection with Assessment District No. 94-2 (Sunterrace). Please review the agreement and call me with your comments at your earliest convenience. JEB:bjs Enclosure cc: Ray Diaz Sheila Gilligan Curt deCrinis Yes sin de ly, ==�--- John E. Brown of Best, Best & Krieger BJS257092 n EI BEST, BEST & KRIEGER A MRTM ft* MM LLO" MCWCSSONAL COMPO--T S LAWYERS 400 MISSION SQUARE 3750 UNIVERSITY AVENUE PALM SPRINGS POST OFFICE BOX 1028 (619) 325-7264 RIVERSIDE. CALIFORNIA 92602-1028 RANCHO MIRAGE TELEPHONE (909) 886-1450 (819) 568-2611 TELECOPIER (900) 686-3083 March 10, 1995 Robert L. Mayer, Trustee Robert L. Mayer Trust P.O. Box 8680 660 Newport Center Drive # 1050 Newport Beach, California 92656-8680 Re: City of Palm Desert Assessment District No. 94-3 (Merano) Dear Mr. Mayer: ONTARIO (909) 989-8684 SAN DIEGO (619) 696-1333 We are enclosing a proposed Agreement for Acquisition, Conveyanace and Operation of Water and Sanitary Sewer System Improvements which was forwarded to the Coachella Valley Water District and the City of Palm Desert for review and comment this date. Please review the agreement and call me with your comments at your earliest convenience. JEB:bjs Enclosure cc: Ray Diaz Sheila Gilligan Curt deCrinis Yours sincerely, ohn E. Brown of Best, Best & Krieger BJS257212 cm BEST, BEST & KRIEGER • A MRTIKIL� NCLYDNIO ~WKS8I0MAL COIL/OILATION* LAWYERS 400 MISSION SQUARE 3760 UNIVERSITY AVENUE PALM SPRINGS POST OFFICE BOX 1026 (619) 325-7264 RIVERSIDE. CALIFORNIA 92502-1028 RANCHO MIRAGE TELEPHONE (909) 666-1450 (819) 568-2611 TELECOPIER (900) 686-3083 March 9, 1995 Mr. Tom Levy General Manager Coachella Valley Water District Post Office Box 1058 Coachella, CA 92253 Re: City of Palm Desert Assessment District No. 94-3 (Merano) Agreement of Agreement for Acquisition, Conveyance and Operation of Water and Sanitary Sewer System Improvements Dear Mr. Levy: ONTARIO (909) 989-8684 SAN DIEGO (619) 595-1333 We are presently acting as bond counsel to the City of Palm Desert. On behalf of the City of Palm Desert, we are enclosing for your District's review a proposed draft of an Agreement for Acquisition, Conveyanace and Operation of Water and Sanitary Sewer System Improvements. These water and sewer facilities are to be acquired as part of these proceedings by the City of Palm Desert in connection with the formation of Assessment District No. 94-3 (Merano) pursuant to the request of the landowner, the Robert L. Mayer Trust. This agreement follows the same format which was previously approved by your District in connection with Assessment District No. 94-2 (Sunterrace) of the City of Palm Desert. We are also enclosing for your review a copy of the preliminary Engineer's Report which was prepared by KWC Engineers, Inc. For further information, you may contact Ken Crawford at KWC Engineers by calling (909) 734-2130. KWC Engineers prepared the Engineers Report. Ray Diaz, Assistant City Manager/Director of Community Development and Planning of the City of Palm Desert is coordinating these proceedings on behalf of the City and can be reached at (619) 346-0611. BJS257084 LAW OFFICES OF BEST, BEST & KRIEGER Mr. Tom Levy March 9, 1995 Page 2 n Please call me with the District's comments or revisions at your earliest convenience. We would appreciate it if your Board of Directors would consider approval of this agreement as soon as possible, as we hope to conclude this matter within the next 45 days. JEB:bjs Enclosure cc: Ray Diaz Sheila Gilligan Curt deCrinis Yours sincerely, John E. Brown of Best, Best & Krieger BJS257084 AGREEMENT FOR ACQUISITION, CONVEYANCE AND OPERATION OF WATER AND SANITARY SEWER SYSTEM IMPROVEMENTS ASSESSMENT DISTRICT NO. 94-3 (MERANO) THIS AGREEMENT is made and entered into as to the day of , 1995 by and between the CITY OF PALM DESERT (the "City"), COACHELLA VALLEY WATER DISTRICT (the "District"), and the ROBERT L. MAYER TRUST ("Mayer"). RECITALS A. The City has received a petition from Mayer, which is the owner of property within and the developer of the residential community known as "Merano" which is located within the City, requesting that the City initiate and conduct proceedings for the formation of an assessment district over and including such property pursuant to the Municipal Improvement Act of 1913, Division 12 (commencing with Section 10000) of the Streets and Highways Code, and for the issuance and sale of bonds for said proposed assessment district pursuant to the Improvement Bond Act of 1915, Division 10 (commencing with Section 8500) of said Code for the purpose of financing the design, acquisition and construction of certain public facilities, including the acquisition of the Water and Sanitary Sewer System Improvements identified in Exhibit "A" attached hereto which are to be owned and operated by the District, and the City has initiated such proceedings. Construction of the Water and Sanitary Sewer System Improvements has been commenced; however, the District has not accepted the Water and Sanitary Sewer System Improvements and they have not been conveyed by Mayer to the District, as certain matters remain to be completed by Mayer before conveyance of the Water and Sanitary Sewer System Improvements will be accepted by the District. B. Pursuant to Section 10109 and 10110 of the Streets and Highways Code the City and the District are authorized to enter into an agreement whereby the City would acquire the Water and Sanitary Sewer System Improvements with the proceeds of the sale of the bonds for the proposed district for the District, and that is the purpose of this Agreement. NOW, THEREFORE, in consideration of the preceding recitals and the mutual promises of covenants as hereafter contained, the parties agree as follows: Section1. Assessment District Proceedings. The City shall undertake and complete proceedings for the formation of the proposed assessment district and the issuance and sale of bonds therefor for the purpose of financing, among other matters, the acquisition of the Water and Sanitary Sewer System Improvements. This agreement shall become effective upon the completion of the proceedings for the formation of the proposed assess- ment district and receipt by the City of the proceeds of the sale of the bonds which are to be issued and sold therefor. If for any reason the City is unable to complete the proceedings for the formation of the proposed assessment district and the issuance and sale of the bonds therefor, this agreement shall not become effective. BJS255044 -2 M M Section 2. Acquisition and Conveyance of Water and Sanitary Sewer System Improvements and Easements. When the City is in receipt of the proceeds of the sale of the bonds which are to be issued and sold for the proposed assessment district, and when it receives written notification from the District that it is prepared to accept conveyance and ownership of the Water and Sanitary Sewer System Improvements, the City shall complete the acquisition of the Water and Sanitary Sewer System Improvements from Mayer pursuant to the provisions of an agreement to be entered into between the City and Mayer providing for the acquisition of and the determination of the acquisition price for the Water and Sanitary Sewer System Improvements. The Water and Sanitary Sewer System Improvements shall be acquired by a bill of sale from Mayer to the District. At the time of the delivery of said bill of sale, Mayer shall also deliver to the District easements for the construction, reconstruction, repair, maintenance and operation of all pipelines and other facilities which are to be located within or upon easements. Section 3. Maintenance. Mayer shall be responsible for the costs of the repair and maintenance of the Water and Sanitary Sewer System Improvements until such time as the Water and Sanitary Sewer System Improvements are conveyed to and accepted by the District, whereupon the District shall be solely responsible for the operation, repair and maintenance of the Water and Sanitary Sewer System Improvements. Section 4. Permit and License. The Water and Sanitary Sewer System Improvements are currently being operated by the District to provide water and sanitary sewer service to residential users within the Merano community, and the District shall BJS255044 .3 continue to operate the Water and Sanitary Sewer System Improvements for that purpose. Mayer confirms that it has granted to the District and hereby grants to the District a permit and license which shall authorize and enable the District to operate, maintain and repair the Water and Sanitary Sewer System Improvements until such time as they are acquired by the City for the District pursuant to this agreement, whereupon such permit and license shall terminate and the District shall operate, maintain and repair the Water and Sanitary Sewer System Improvements as the owner thereof and of the parcels of property and the grantee of the easements where the Water and Sanitary Sewer System Improvements are located. Section 5. General. This agreement may only be amended by a subsequent written agreement executed by all parties. This agreement shall be executed in three counterparts, each of which will be deemed an original but which together shall constitute a single agreement. BJS255044 _4 En n IN WITNESS WHEREOF, the parties have caused this agreement to be executed as of the date first above written. CITY OF PALM DESERT Mayor ATTEST: City Clerk COACHELLA VALLEY WATER DISTRICT By: President of the Board of Directors ATTEST: Secretary of the Board of Directors DEVELOPER By: Robert L. Mayer, Trustee Robert L. Mayer Trust BJS255044 _5 M M EXHIBIT "A" CITY OF PALM DESERT ASSESSMENT DISTRICT NO. 94.3 (MERANO) WATER AND SANITARY SEWER SYSTEM AND STREET IMPROVEMENTS TO BE ACQUIRED Tract No. 27882-1 - 64 Lots 1) Country Club Drive roadway improvements including public utilities 2) Monterey Avenue roadway improvements including public utilities 3) Via Scena - roadway, sewer, water and storm drainage improvements 4) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage facilities. Tract No. 27882-2 - 64 Lots 1) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage. Tract No. 27882 (Unrecorded Lot - Future Development) 1) Partial Country Club Drive roadway improvements 2) Partial Monterey Avenue roadway improvements BJS255044 -6 M H1 Bank of America Corpora• TRW AAa u*v 555 South Fk wr Stnest, ant Floor Lot ArQ6", Caltants 9W71 February 13, 1995 RECEIVED FEB 17 1995 F � 1 1995 pAi,M DESERT CITY MAL, CITY MANAGER COMMDNITY [�yELOPMENT DEPART .�` �y Oi PALM DESERT f. ; ti- '.. ',-,� ✓ 1, J Mr. Bruce Altman' . City Manager City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578--, Re: City of Palm Desert Assessment District No. 94-3 (Merano) Dear Bruce: I understand that the City of Palm Desert requires Fiscal Agent services m connection with the referenced issue which will approximate $2.5 million. Subject to review of final documents and our acceptance procedure, enclosed are the following: • a schedule of our fees for these services; and • a contact list for your reference. The administrator assigned to our relationship with the City of Palm Desert is Brigitta Long. If we are appointed, please insure that two sets of documents are seat to Brigitte Her address and telephone number is on the enclosed contact list. We look forward to the opportunity to work with you on this transaction. Should you have any questions or if I can ever be of assistance, please do not hesitate to call me at (213) 228-3219. Sincerely, l _ 'e B. Assistant Vice President Enclosures cc: Brigitta Long Curt De Crinis BITS: Bank of America National Trust and Savings Association CM In BANK OF AMERICA NT & SA Schedule of Fees for Services as Fiscal Agent City of Palm Desert Assessment District No. 94-3 (Merano) Approximately $2.5 million ACCEPTANCE FEE: $2,500.00 (A one time charge covering review of documents by administration and liaison with underwriter, issuer, and attorneys. Payable at closing. If the transaction is more complex than anticipated, or if draft documents are not provided in a timely manner, there may be an additional charge.) OUTSIDE COUNSEL FEES: AT COST (Covers initial document review. Not to exceed $2,500.00) ANNUAL ADMINISTRATION FEE: $3,000.00 (Covers ordinary duties and responsibilities per annum or portion thereof. Payable annually in advance. $2,500 minimum): Disbursements (Processing of Requisitions): Up to 12 per annum, payable annually in advance: $250.00 In excess of 12 per annum, each disbursement: $50.00 Any payment by wire transfer: $25.00 Investments: Directed purchases/sales each transaction (includes collateral substitutions): $75.00 Guaranteed Investment Contracts, each transaction: $25.00 Transaction Charges for use of Sweep Vehicles: * If an automated money market "sweep vehicle" is used, applicable fees would be assessed as disclosed in the fund prospectus and authorization form provided by your administrator. However, no transaction fee will be charged. Letter of Credit Draws: Direct pay, per draw: $75.00 Standby, per draw: $250.00 Secondary Market Disclosure Transmissions: (each occurrence) $50.00 NOTE: There may be a charge when letters of credit are substituted, documents are supplemented or the account is terminated prior to maturity. REGISTRAR/PAYING AGENT SERVICES Physical Securities: Payment of Interest, per check ($ioo minimum per payment period): $0.55 Payment of Principal, per check ($500 minimum per maturity/redemption): $2.90 Any ppayment by wtre transfer: $25.00 Tax Reporting, per form: $1.00 Initial Issuance of Certificates, each: $1.50 Subsequent Issuance/Cancellation of Certificates, each: $2.00 Each Certificateholder account maintained per month ($100 minimum per annum): $0.25 Book Entry Securities, per annum: $250.00 Out -of -Pocket Expenses: AT COST Direct Charges AT COST Charges include travel related to bond closings, postage and stationery related to bondholder mailings, and courier charges. 1fl DATED: February 13, 1995 Bank of America CONFIDENTIAL ADMIIVISTRATION: Account Administrator: Team Manager Manager: Division Manager: SALES / MARKETING: Southern California: Manager: DOCUMENT REVIEW: Manager: OPERATIONS: Bondholder Inquiries: New York Tender Agent: BANK OF AMERICA NT&SA CORPORATE TRUST DIVISION CONTACT LIST City of Palm Desert 1fl Bank of America Corporate Trust Division 333 South Beaudry Avenue, 25th Floor Los Angeles, CA 90017 FAX: (213) 345-7596 Brigitta Long, Administrator 213-345-0659 Keith Marshall, Vice President (213) 345-2814 Jenni N mardi, Vice President (213) 345-6588 Bill Lester, Senior Vice President & Manager One Embarcadero Center, 20th Floor San Francisco, CA 94111 (415)953-1669 Corporate Trust Marketing 555 South Flower Street, 3rd Floor Los Angeles, CA 90071 FAX: (213) 228-3655 Julie B. Good, Assistant Vice President (213) 228-3219 John F. Shope, Vice President & Manager (415)622-2015 Legal Department 555 South Flower Street, 8th Floor Los Angeles, CA 90071 FAX: (213) 228-2397 Debra Glasser, Counsel (213)228-4981 Corporate Trust Operations 701 South Western Avenue Glendale, CA 91201 Toll Free: (800) 423-5041 Stephen M. Bruce,Vice President BankAmerica National Trust Company Domestic Corporate Trust Administration One World Trade Center, 18th Floor New York, NY 10048-1191 (212) 390-2815 FAX: (212) 390-3144 1m cm aex740 Pool COMMUNICATION RESULT REPORT 213*229 2909 BANK OF AMERICA TSS 02-14-95 09:31AM FILEI DATE 6 TIME I FILE TYPE DELAYED DESTINATION/TO:/FROM: 1PAGE1 REMARKS I ISIZI., 19 02-14 09:24AM MEMORY—S ITO :91619340Q574 1 04 1 1 100941 INO.1 PHONE / TTI NO. ICOMM MODEJ RESULT NO. PHONE / TTI NO. ICOMM MODEJ RESULT 001 916193400574 1 1r.00D BANK OF AMERICA CORPORATE TRUST MARKETING 556 SOUTH FLOWER STREET 3RD FLOOR LOS ANGELES CA W71 FACSIMILE: 73-228-3163 PLEASE DELIVER THE FOLLOWING PAGES AS SOON AS POSSIBLE TO: Mr. Bruce Altman COMPANY: City of Palm Desert FACSIMILE 0: (619) 340-0574 FROM: Julie B. Good (213) 228-3219 DATE: February 13, 1998 • cm cm dex740 P001 213 229 2909 COMMUNICATION RESULT REPORT BANK OF AMERICA TSS 02-14-95 09:28AM IFILE1 DATE & TIME I FILE TYPE IDELAYED1 DESTINATION/TO:/FROM: 1PAGE1 REMARKS SIZE 39 02-14 09:24AM MEMORY—S TO :96569717 1 04 1 1 10094 NO. PHONE / TTI NO. ICOMM MODEJ RESULT INO.1 PHONE / TTI NO. 1COMM MODEJ RESULT 001 96569717 I IGOOD BANK OF AMEMLOA CORPORATE TRUST MARKETING 655 SOUTH FLOWER STREET 3RD FLOOR LOS ANGELES CA am71 FACSIMILE: fb3-2n4163 PLEASE DELIVER THE FOLLOWING PACES AS SOON AS POSSIBLE TO: COMPANY: FACSIMILE #: FROM: Mr. Curt De Crinis C.M. Be Crinis S Co. (213) SU-9717 Julie S. Good (213) 228-3219 DATE: February 13, 1995 0 CITY OF PALM DESERT COUNCIL AGENDA REQUEST MEETING OF February 9, 1995 Consent Calendar Item TO BE CONSIDERED AS: Public Hearing Item X Regular Item REQUEST: (Agenda Item Wording) Assessment District 94-3. 3. FINANCIAL: (Complete if Necessary) (a) Acct/Proj # (b) Amount Requested (c) Current Budget? (d) Appropriation? Apprvd: Finance Director 4. SUBMITTED BY: Ramon A. Diaz APPROVAL • - /� ��J rtment Head 6/I3/88 City Manager E5 M CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT TO: City Manager and City Council FROM: Assistant City Manager/Director of Community Development DATE: February 9, 1995 SUBJECT: Assessment District No. 94-3 RECOMMENDATION: Adopt Resolution No. appointing Superintendent of Streets; adopt Resolution No. designating newspaper for publication of notice; and adopt Resolution No. declaring intention to order the acquisition and construction of certain improvements within and for a proposed assessment district and the payment of certain expenses 13, incidental thereto pursuant to the Municipal Improvement ctcosts9and of describing the assessment district to be assessed to pay the expenses thereof, and determining assessments pursuantotostheall be issued in the amount of the unpaid as Improvement Bond Act of 1915. DISCUSSION: Attached is the engineer's report for Assessment District No. 3 which was formed on November 10, 1994 by city council. The public hearing for this assessment district will be scheduled on April 13, 1995. In addition, a public meeting on this district will be held at your meeting of March 23, 1995. Applicant has already deposited the required funds for processing with the City of Palm Desert. To complete the action necessary for this meeting of streets, ity tscouncil will designating adopt resolutions appointing superintendent newspaper for publication of notice, and resolution of intention. RAYON A. DIAZ ASSISTANT CITY MANAGER, DIRECTOR OF COMMUNITY DEVELOPMENT/PLANNING /tm cm M PALM SPRINGS (619) 325-7264 RANCHO MIRAGE (619) 568-261, BEST, BEST & KRIEGER A PARTNERSHIP INCLUOING PROFESSIONAL CORPORATIONS LAWYERS 400 MISSION SQUARE 3750 UNIVERSITY AVENUE POST OFFICE BOX 1028 RIVERSIDE, CALIFORNIA 92502 TELEPHONE (909) 686-1450 TELECOPIER (909) 686-3083 Ramon A. Diaz Director of Planning and Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 January 26, 1995 Re: Proposed Assessment District No. 94-3 (Merano) ONTARIO (909) 989-8584 Dear Ray: Enclosed for your review are a calendar inct No. 94 3 ested draft resolutions and our covering memorandum regarding proposed Assessment Dist (Merano) for consideration by the City Council at the meeting on February 9, 1995. Please note that the Council will be asked to schedule the public hearing on the Engineer's Report for its meeting of April 13, 1995, as well as a public meeting on March 23, 1995. 'Be Preliminary Engineer's Report itself sholldbe included as ve been sen Po you under separateart of the Feruary th agenda cover by materials. The Engineer's Report shoudl Ken Crawford of KWC Engineers, Inc. We would recommend that the Mr. Crawford briefly present the Engineer's Report to the Council at the meeting of February 9, 1995. The Council should be advised regarding the location and boundaries of the s and the mssment lstrict. An overview of the public ethod and formula for spreading improvements to be acquired, the cost estimate the assessments should also be presented to the Council. If the Council wishes to proceed at this point, it should adopt the enclosed resolutions. 3JS250828 LAW OFFICES OF BEST, BEST & KRIEGER Ramon A. Diaz January 26, 1995 Page 2 Upon approval, we would appreciate it if you would furnish us with signed copies of the Engineer's Report, our proposal letter and certified copies of the resolutions for our transcript of these proceedings. Sincerely, Y�V,Iol. John E. Brown of Best, Best & Krieger JEB:bjs Enclosures cc: Sheila R. Gilligan Ken Crawford Curt deCrinis JS250828 LAW OFFICES OF BEST, BEST & KRIEGER *ftw IM ISSUMER CITY OF PALM DESERT ASSESSMENT DISTRICT NO. 94-3 (MERANO) INTERESTED PARTIES LIST January 30, 1995 City of Palm Desert 73-510 Fred Waring Drive FAX: (619) 340-0574 Palm Desert, CA 92260-2578 Bruce Altman, City Manager (619) 346-0611 Ramon A. Diaz, Assistant City Manager Director of Community Development and Planning (619) 346-0611 619) 346-0611 Sheila R. Gilligan, City Clerk (619) 346-0611 Paul S. Gibson, Treasurer EM ATTORNEY Best, Best & Krieger 39700 Bob Hope Drive, Suite 312 P. O. Box 1555 FAX; (619) 340-6698 Rancho Mirage, CA 92270 (619) 341-7039 David J. Erwin, Esq. (619) 568-2611 BOND COUNSEL Best, Best & Krieger 400 Mission Square 3750 University Avenue FAX: (909) 686-3083 Riverside, CA 92502 (909) 6824612 John E. Brown, Esq. (909) 686-1450(909) 686-1450 Barbara Skinner, Legal Assistant ASSESSMENT ENGINEER KWC Engineers, Inc. 1269 W. Pomona Rd. Ste, 104 FAX: (909) 272-3308 Corona, CA 91720 Ken W. Crawford, President (909) 734-2130(909) 734-2130 Edward G. Sloman, Vice President SJS238068 72500.0438 LAW OFFICES OF BEST, BEST & KRIEGER ASSESSMENT ENGINEER (continuedl Larry Bevington 8372 Rush Street Rosemead, CA 91770 Larry Berington FINANCIAL ADVISOR C.M. deCrinis & Co. 5670 Wilshire, Ste. 1777 Los Angeles, CA 90046 Curt M. deCrinis LnNmERWRITER [TO BE SELECTED AT TIME OF SALE] .W 1 1 TJ Robert L. Mayer, Trustee Robert L. Mayer Trust P.O. Box 8680 660 Newport Center Drive # 1050 Newport Beach, CA 92656-8680 Robert L. Mayer, Trustee DEVELOPER S.H. Sanberg & Partners, Inc. 2914 E. Katella Orange, CA 92667 Steve Sanberg FISCAL AGENT Bank of America National Trust and Savings Association Corporate Trust 8510 333 South Beaudry Avenue 25th Floor Los Angeles, CA 90017 Brigitta Long (CONTINUATION) City of Palm Desert Assessment District No. 94-3 (Merano) FAX: (818) 288-3134 (818) 288-2575 FAX: (213) 656-9717 (213) 656-9700 FAX: (714) 720-1017 (714) 759-8091 FAX: (714) 538-4546 (714) 639-4097 FAX: (213) 345-2333 (213) 345-0659 BJS238068 72500.0438 COUNSEL FOR FISCAL AGENT Morrison & Foerster 555 W. Fifth St., Ste. 3500 Los Angeles, CA 90013 Darrell Sackl (CONTINUATION) City of Palm Desert Assessment District No. 94-3 (Merano) FAX: (213) 892-5454 (213) 892-5200 BJS238068 72500.0438 AS SSMENT DISTRICT NO.94-3 (Merano) CITY OF PALM DESERT County of Riverside California Calendar of Proceedings for Assessment District No. 94-3 (January 25, 1995) RESOLLMON J2ATE NUMBER - AC4 November 10 Petition for Formation of Assessment District and waiver of 1931 Act proceedings filed with City Clerk. Petition must be signed by the owners of more than 60% of area of property subject to assessment, preparation of 1931 Act Report is waived. (Streets & Highways Code Sections 2821-2855). City Clerk files Certificate of City Clerk as to Sufficiency of Petition. November 10 City Council adopts Resolution: Appointing Assessment Engineer, Bond Counsel, Appraiser and Financial Advisor. 199 February 9 City Council Adopts Resolutions: Appointing Superintendent of Streets. Designating newspaper for publication of notice. Resolution of Intention pursuant to Section 10200.* All subsequent references, unless otherwise noted, are to the California Streets and Highways Code. City Council of the City of Palm Desert meets second and fourth Thursdays at 4:00 p.m. Public Hearings are held on the second and fourth Thursdays at 7:00 P.M. BJS250659 In DATE FM February 9 February 9 February 9 ASSESSMENT DISTRICT NO. 94-3 RESOLUTION NUMBER ACTION Adopting proposed Assessment District Boundary Map (Sections 2822, 3110). Original Assessment District Boundary Map endorsed by City Clerk on original and one copy certifying date and adoption of Resolution No. . File original in Clerk's office. File Copy with County Recorder within fifteen (15) days after adopting resolution setting hearing of protests (Sections 3110 and 3111). FILE ASSESSMENT DISTRICT BOUNDARY MAP. File proposed Assessment District Map with County Recorder (Section 3111). Filed on , 1995, Recorded in Book _, Page _ of Maps of Assessment and Community Facilities Districts as Instrument No. ENGINEER'S REPORT11931 ACT REPORT PURSUANT TO THE PROVISIONS OF THE _MUNICIPAL IMPROVEMENT ACT OF 1913 AND THE SPECIAL ASSESSMENT INVESTI- ATION LIMITATION AND 1VLORITY PROTEST ACT OF 1931 FILED WITH CITY CLERK ON FEBRUARY 9 AND PRESENTED TO CITY COUNCIL ON FEBRUARY 9. 1995. Approving Engineer's Report. Public Hearing on any protests to the proposed improvement set for April 13, 1995, and approving Report pursuant to Special Assessment Investigation, Limitation and Majority Protest Act of 1931 and Overruling Assessment Limitations Under Special Assessment Investigation, Limitation and Majority Protest Act of BJS250659 -2- cm E5 February 9 ASSESSMENT DISTRICT NO. 94-3 1931. Preliminary hearing set for March 23, 1995. 1931/1913 ACT HEARING DATE: March 23, 1995 7:00 p.m. PRELIMINARY HEARING DATE: April 13, 1995 7:00 p.m. (Protest Hearing shall be held not less than forty-five (45) days after passage of the Resolution of Intention. Section 10301 and Government Code Section 54954.6.) February 22 City Clerk shall mail Notice of Hearing to all property owners to be assessed as shown on the last equalized assessment roll for County taxes. (Section 2851.) Must be mailed at least 45 days prior to the date of the hearing. (Section 2853.) February 22 City Clerk/Assessment Engineer mails Notice of Improvement to all property owners to be assessed as shown on the last equalized assess- ment roll for County taxes. Must be mailed at least forty-five (45) days before the date set for hearing of protests. (Section 10306 and Government Code Section 54954.6.) February 27 LAST DAY TO MAIL NOTICE OF IMPROVEMENT March 23 Preliminary Public Hearing, 7:00 p.m. in Council Chambers. BJs250659 -3 ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION March 29 LAST DAY TO FILE ASSESSMENT DISTRICT BOUNDARY MAP. Last day to file proposed Assessment District Map with County Recorder (Section 3111). Filed on , 1995, Recorded in Book , Page of Maps of Assessment and Community Facilities Districts as Instruments No. March 30 Property owner waiver of 30 day assessment payment period received. April 13 City Council's Public Hearing on Protests to Improvement and 1931 Act Report. If owners of more than one-half (1/2) of the area lands to be assessed protest, proceedings must be abandoned for one (1) year, unless protests are overruled by four -fifths vote of the City Council (Section 10311). April 13 City Council adopts Resolutions: Confirming Assessment and Ordering Improvements (Section 10312). Determining Unpaid Assessments. Authorizing Negotiation of a Bond Purchase Contract and Approving Preliminary Official Statement. Authorizing Sale of Bonds. Approving Sale of Bonds to BJS250659 IM IM ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER A 'I' N 1995 April 14 Superintendent of Streets files list of paid and unpaid assessments with City Treasurer (Section 6420). Bonds dated May 1, 1995. April 14 City Clerk transmits diagram and assessment to the Superintendent of Streets (Section 10401). Superintendent of Streets records a certified copy of diagram and assessment in his office (Section 10401). April 17 City Clerk/Assessment Engineer records Notice of Assessment in the office of the County Recorder (Sections 10402.5 and 3114). City Clerk records certified copy of assessment diagram in the office of the County Recorder (Sections 10402.5 and 3114). April 18 City Clerk mails Notice of Assessment to property owners (Sections 10404 and 5070). April 19 Clerk publishes Notice of Recording Assessment (Section 10404). [First publication.] Second publication on July 6, 1994. April 26 Clerk publishes Notice of Recording Assessment. [Second publication.] City Clerk completes Declarations of recording Assessment and diagram with Superintendent of Streets and Declarations of Recording and Mailing Assessment Diagram and Notice of Assessment. BJS250659 -5 Cm In ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION May 1 Bonds sold and delivered and project funded. Last day legal action contesting validity of assessments may be commenced (Section 10400). BJS250659 _6 LAW OFFICES OF BEST, BEST & KRIEGER Abe En ••: January 26, 1994 TO: MAYOR, CITY COUNCIL. AND CITY MANAGER FROM: BEST, BEST & KRIEGER RE: ASSESSMENT DISTRICT NO. 94-3 (MERANO) The Robert L. Mayer Trust has presented to the City a petition requesting that the City Council initiate proceedings for the formation an assessment district and issuing bonds to acquire and construct public improvements which have been and are to be constructed for the Merano development located at the Northeast comer of Country Club Drive and Monterey Avenue. These improvements include water system facilities which are to be acquired for Coachella Valley Water District and the widening of Monterey Avenue and Country Club Drive along with providing public facilities including sewer, water, storm drainage, utilities and minor grading to each of the blocks within the Merano Development. The Council may recall that it has previously approved an agreement between the City and the Robert L. Mayer Trust regarding formation of this Assessment District. At its February 9 meeting, the Council will be considering the adoption of five resolutions with respect to the Assessment District. The order of adoption of these resolutions is: 1. Resolution Appointing Superintendent of Streets. 2. Resolution Designating Newspaper. JS250790 LAW OFFICES OF BEST, BEST 6 KRIEGER*," *""" 3. Resolution of Intention. 4. Resolution Adopting Boundary Map. 5. Resolution Approving Engineer's Report. _. KWC Engineers, Inc. has prepared the report required by the Municipal Improvement Act of 1913, and as directed by the Resolution of Intention. This report contains, among other things, the assessment diagram and assessment roll for the Assessment District. The assessment roll contains the amount proposed to be assessed against each parcel of property in the Assessment District. After reviewing the report, if the Council wishes to proceed, it should adopt the resolution approving the report of the Assessment Engineer which sets a public hearing on the report, the formation of the proposed Assessment District, and the proposed improvements. The hearing has been scheduled for April 13, 1995 at 7:00 p.m. A public meeting to allow public testimony regarding the proposed assessment has also been scheduled for March 23, 1995 at 7:00 p.m. - JOHN E. BROWN -2- �0790 RESOLUTION NO. ASSESSMENT DISTRICT NO. 94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPOINTING SUPERINTENDENT OF STREETS WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L. Mayer Trust and the City providing for the acquisition and construction of said public improvements, and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, it is necessary for the City Council to appoint a Superintendent of Streets in connection with the proceedings for the formation of the Assessment District; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: 1. That the City Engineer is hereby appointed to act as Superintendent of Streets for the Assessment District and to perform all duties of said office in connection with said Assessment District proceedings. JS250664 m Lmm PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: SHEILA R. GILLIGAN, City Clerk City of Palm Desert 5250664 2 CM In RESOLUTION NO. ASSESSMENT DISTRICT NO.94-3 (Merano) RESOLUTION OF THE CCOUNCILER O BE F THE USED OF PALM DESERT DESIGNATING FOR ASSESSMENT DISTRICT PROCEEDINGS WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition aant construction c�dental costs and lic improvements, together with appurtenances and appurtenant improvement Act of 19 and expenses in connection therewith, pursuant to the Municipal Imp 13, Division 12 of the Streets and Highways Code, with f bonds Divisionto be issued t said ode, said improvements pursuant to the Improvement Bond Act o assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing the execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L. Mayer Trust, and the City providing for the acquisition and construction of said public improvements, and for the initiation by the City ofproceedings Act for of 913 andthe athe sale of of the Assessment District pursuant to the Municipal Improvement bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, the City Council desires to designate the newspaper to be used for publications in connection with said proceedings; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: 1. That the Desert Sun, a newspaper published and circulated within the City of Palm Desert, is hereby designated as the newspaper bewhichshall i l be with notices, resolutions, orders and other matters require published said Assessment District proceedings. JS250666 RESOLUTION NO. ASSESSMENT DISTRICT NO. 94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING INTENTION TO ORDER THE ACQUISITION AND CONSTRUCTION OF CERTAIN IMPROVEMENTS WITHIN AND FOR A PROPOSED ASSESSMENT DISTRICT AND THE PAYMENT OF CERTAIN EXPENSES INCIDENTAL THERETO PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 19139 DESCRIBING THE ASSESSMENT DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND DETERMINING THAT BONDS SHALL BE ISSUED IN THE AMOUNT OF THE UNPAID ASSESSMENTS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915 WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of the City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano) between the Robert I — Mayer Trust, and the City providing for the acquisition and construction of said public improvements, and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, the .City Council hereby finds that the public interest, convenience and necessity require the acquisition and construction of the public improvements and payment of incidental costs and expenses in connection therewith, for the benefit of the lands within the exterior boundaries of the Assessment District, all within the exterior boundaries of the City, that the acquisition and construction of the public improvements is feasible, and that the lands to be assessed will be able to carry the burden of the proposed assessments and to pay the costs and expenses thereof, ,JS250670 NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: Section 1. Acquisition and Construction of Improvements. The public interest, convenience, and necessity require, and it is the intention of the City Council pursuant to the provisions of Division 12 of the Streets and Highways Code, the Municipal Improvement Act of 1913, to order the acquisition and construction of certain public improvements referred to hereinafter as the "improvements," all in the City of Palm Desert, County of Riverside, State of California, described as follows: Tract No. 27882-1 - 64 Lots 1) Country Club Drive roadway improvements including public utilities 2) Monterey Avenue roadway improvements including public utilities 3) Via Scena - roadway, sewer, water and storm drainage improvements 4) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage facilities. Tract No. 27882-2 - 64 Lots 1) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage. Tract No. 27882 (Unrecorded Lot - Future Development) 1) Partial Country Club Drive roadway improvements 2) Partial Monterey Avenue roadway improvements This description of the improvements is intended to be general in nature and the description of the improvements contained in the report of the Assessment Engineer shall be controlling as the correct and detailed description thereof. Section 2. Description of Assessment District. The improvements will be of direct benefit to properties and lands within the proposed Assessment District which is hereby declared to be the district benefitted by said improvements and to be assessed to pay the costs and expenses thereof. Said district shall be known as Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California," and shall be all that part of the City, having the exterior boundaries as shown on the map of the Assessment District entitled "Proposed Boundaries of Assessment District No. 94-3, City of Palm Desert, County of Riverside, State of California," which map is on file in the office of the City Clerk of the City. Reference is hereby made to said map for a full and complete description of the Assessment District, and said map shall govern for all details as to the extent of the Assessment District. 3JS250670 -2 Section 3. Resort. The proposed improvements are hereby referred to KWC Engineers, .Inc., the Assessment Engineer for the Assessment District, and said Assessment Engineer is hereby directed to make and file with the City Clerk of the City a report (the "Report") in writing presenting, to the extent they may be applicable, the following: (a) Plans and specifications of the proposed improvements which shall indicate the class and type of improvements to be provided for each zone within the Assessment District; (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvements, if the works, appliances, or property are to be acquired as part of the improvements; (c) An estimate of the cost of the improvements and of the cost of lands, rights -of -way, easements, and incidental expenses in connection therewith, including any cost of registering bonds; (d) A diagram showing as they existed at the time of the adoption of this resolution of intention (i) the exterior boundaries of the Assessment District, (ii) the boundaries of any zones within the Assessment District, and (iii) the lines and dimensions of each parcel of land within the Assessment District. Each subdivision, including each condominium interest, as defined in Section 783 of the Civil Code, shall be given a separate number upon said diagram; (e) A proposed assessment of the total amount of the costs and expenses of the acquisition and construction of the improvements upon the several subdivisions of land in the Assessment District in proportion to the estimated benefits to be received by said subdivisions, respectively, from the improvements. Said assessment shall refer to such subdivisions by their respective numbers as assigned pursuant to subparagraph (d) of this Section 3. (f) A proposed maximum annual assessment upon each of the several subdivisions of land in the district to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. (g) A description of the improvements to be acquired and constructed. Section 4. Bonds. It is hereby determined and declared and notice is hereby given that serial bonds or term bonds, or both, to represent and to be secured by the unpaid amount of the assessments which will be levied to pay the costs and expenses of the acquisition and construction of the improvements, and to bear interest at the rate of not to exceed 12 percent per annum, shall be issued in the manner provided by Division 10 of the Streets and Highways Code, the Improvement Bond Act of 1915, and the last installment of such bonds shall mature a maximum of 25 years from the second day of September next 3JS250670 -3 No.r `ale succeeding 12 months from their date. The amount of principal of the bonds maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year will be an aggregate amount that is substantially equal each year, except for the monies falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Section5. Special Reserve Fund. Pursuant to Part 16 (commencing with Section 8880) of Division 10 of the Streets and Highways Code, there shall be included in the assessments to be levied on the land in the Assessment District, as an incidental expense of the proceedings, an amount not to exceed ten percent (10%) of the amount of the bonds to be issued to create a special reserve fund for the bonds. Said special reserve fund shall be identified as the "Assessment District No. 94-3 Special Reserve Fund," and upon receipt of the bond sale proceeds, said proceeds shall be transferred to said special reserve fund. Said special reserve fund shall constitute a trust fund for the benefit of the bondholders, and shall be maintained, used, transferred, reimbursed and liquidated as provided in said Part 16. Section 6. Collection of Assessments and Advance Retirement of Bonds. The procedures set forth in Part 11.1 of Division 10 of the Streets and Highways Code shall be followed in the collection of assessments and advance retirement of bonds. Section 7. Disposition of Surolus Funds. If after completion of the acquisition and construction of the improvements and the payment of all claims from the improvement fund the City Council shall determine that a surplus remains in the improvement fund by reason of the assessment and any supplemental assessment levied for the improvements, any such surplus shall be used, in such amounts as the City Council shall determine, as follows: (a) For transfer to the general fund of the City of an amount not to exceed the lesser of one Thousand Dollars ($1,000.00) or five percent (5%) of the total amount expended from the improvement fund; (b) For the maintenance of the improvements; (c) As a credit upon the assessment and any supplemental assessment, in the manner provided in Section 10427.1 of the Streets and Highways Code; (d) To call bonds, thereby reducing outstanding assessments and subsequent assessment installments. Section 8. Refunding of Bonds. The City Council determines that the bonds to be issued pursuant to Section 4 hereof may be refunded pursuant to Division 11.5 (commencing with Section 9500) of the Streets and Highways Code on the following conditions: JS250670 14OW terr (a) The maximum interest rate on the refunding bonds shall not exceed the, maximum rate permitted by law at the time of the refunding; (b) The maximum number of years to maturity of the refunding bonds shall not exceed the number of years to maturity of the bonds to be refunded; and (c) Any adjustment to assessments resulting from the refunding will be done on a pro-rata basis. Section 9. No Obligation to Cure Deficiency. The City Council determines and declares pursuant to Section 8769 of the Streets and Highways Code that the City will not obligate itself to advance available funds from the treasury of the City to cure any deficiency which may occur in the bond redemption fund. Section 10. Proceedings Under the Special Assessment Investigation. Limitation and Majority Protest Act of 1931. The City Council intends to comply with the requirements of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Division 4 (commencing with § 2800) of the Streets and Highways Code, by proceeding under Part 7.5 (commencing with § 2960) of said Division 4. In addition to the matters provided for in Section 3 hereof, there shall be included in the report provided for therein the following information: (a) the total amount, as near as may be determined, of the total principal of all unpaid special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated in the instant proceedings, which would require an investigation and report under said act against the total area proposed to be assessed; and (b) the total true value, as near as may be determined, of the parcels of land and improvements which are proposed to be assessed. Pursuant to Sections 2961 and 2980 of the Streets and Highways Code, such total true value shall be the full cash value of such land and improvements as defined in Article MR A of the California Constitution as shown upon the last equalized assessment roll of the County of Riverside. Section 11. Prol2eM Owners Taking Contract. It is hereby determined and declared that the public interest will not be served by allowing the owners of the lands assessed or liable to be assessed, or their agents, to take a contract for the construction and installation of the improvements. Section 12. Adjustment of Grade on Private Prop. Wherever it is necessary to eliminate any disparity in level or size between said improvements and private property, it is in the public interest and more economical to do such work on private property than to adjust the work on public property to eliminate such disparity. IJS250670 -5 cm Lmn PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: SHEILA R. GILLIGAN, City Clerk City of Palm Desert IJS250670 _6 vft.° RESOLUTION NO. ASSESSMENT DISTRICT NO. 94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ADOPTING MAP DESCRIBING PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT AND ORDERING FILING OF MAP WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of the City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the provisions of the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to fund and finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated as Assessment District No. 94-3 (Merano), City of Palm Desert, State of California (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert I - Mayer Trust and the City providing for the acquisition and construction of said public improvements and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, prior to the hearing on the formation of the Assessment District, the City Council must describe the boundaries of the Assessment District by adopting a map which shall indicate by a boundary line the extent of the territory included therein and the Assessment Engineer for the Assessment District has prepared such a map; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: Section 1. The City Council approves and adopts the map entitled "Boundaries of Assessment District No. 94-3, City of Palm Desert, County of Riverside, State of California," as the map of the proposed boundaries of the Assessment District and orders that such map shall govern for all details as to the extent of the Assessment District. Section 2. The City Clerk shall file the original of such map in her office, and within fifteen (15) days after the adoption of the resolution fixing the time and place of the BJS250668 cm cm hearing on the formation of the Assessment District and in no event later than fifteen (15) days prior to such hearing, shall file a copy thereof with the County Recorder of the County of Riverside. PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: SHEILA R. GILL IGAN, City Clerk City of Palm Desert Mayor -2- IS250668 CM RESOLUTION NO. ASSESSMENT DISTRICT NO.94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING ASSESSMENT ENGINEER'S REPORT AND APPOINTING TIME AND PLACE FOR HEARING PROTESTS TO THE PROPOSED ACQUISITION AND CONSTRUCTION OF PUBLIC IMPROVEMENTS WHEREAS, the Robert L. Mayer Trust, a California corporation, has presented a signed petition to the City Council (the "City Council") of the City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L. Mayer Trust, and the City providing for the acquisition and construction of certain public improvements, and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, the City Council has adopted Resolution No. which is entitled "Resolution of the City Council of the City of Palm Desert Declaring Intention to Order the Acquisition and Construction of Certain Improvements Within and for a Proposed Assessment District and the Payment of Certain Expenses Incidental Thereto Pursuant to the Municipal Improvement Act of 1913, Describing the Assessment District to be Assessed to Pay the Costs and Expenses Thereof, and Determining that Bonds shall be Issued in the Amount of the Unpaid Assessment Pursuant to the Improvement Bond Act of 1915," and said resolution is the resolution of intention with respect to the proceedings for the proposed Assessment District and the sale of said bonds (the 'Resolution of Intention"); and WHEREAS, pursuant to the Resolution of Intention, the Assessment Engineer named therein has prepared and filed its report with the City Clerk as provided for in JS250696 Nape Sections 10203 and 10204 of the Streets and Highways Code, and said report has been presented to the City Council for review and consideration; and WHEREAS, the City Council desires to pass on said report and appoint a time and place for hearing of protests to the acquisition and construction of the public improvements; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: Section 1. The Report of the Assessment Engineer (the "Report") contains all matters required by Section 10204 of the Streets and Highways Code, as well as all matters required by Section 2961 of said Code, and is therefore in proper form and does not require modification, and the Report is hereby adopted, passed upon and preliminarily approved. Section 2. The time of 7:00 p.m. on April 13, 1995, and the meeting room of the City Council of the City at 73-510 Fred Waring Drive, Palm Desert, California, are appointed as the time and place for hearing protests to the proposed acquisition and construction of the public improvements. Any and all persons having any objections to the proposed acquisition and construction of the public improvements, or the proposed assessment on the land within the proposed Assessment District, or any parcel thereof, or the extent of the Assessment District may appear and show cause why the acquisition and construction of the public improvements should not be accomplished in accordance with the Resolution of Intention and the Report. Protests must be in writing and must be delivered to the City Clerk at or before the time set for the hearing. The time of 7:00 p.m. on March 23, 1995, and the meeting room of the City Council of the City at 73-510 Fred Waring Drive, Palm Desert, California, are appointed as the time and place for allowing public testimony regarding the proposed assessment during the regular meeting of the City Council. Any interested person may present testimony at such time regarding the proposed assessment. Section 3. The City Council does hereby designate Ray Diaz, Assistant City Manager/Director of Community Development and Planning of the City, telephone number (619) 346-0611, as the person to answer inquiries regarding the protest proceedings. Section 4. The City Clerk is directed to give notice of the hearing as follows: (a) At least forty. -five (45) days before the date set for hearing of protests, the City Clerk shall, pursuant to Sections 10301 and 10306 of the Streets and Highways Code and Section 54954.6 of the Government Code, mail, postage prepaid, notice of said hearing and of the adoption of the Resolution of Intention and the filing and consideration of the Report to all persons owning real property proposed to be assessed whose names and addresses appear on the last equalized assessment roll for taxes of the County of Riverside, or who are known to the City Clerk. -2- TS250696 09 En (b) Upon the completion of the mailing of said notices, the City Clerk shall file with the City Council a declaration setting forth the time and manner of the compliance with the requirements of this resolution for mailing notices. Section 5. On the original and on at least one copy of the map of the boundaries of the Assessment District, the City Clerk shall endorse a certificate evidencing the date of adoption of this resolution, and within fifteen (15) days after the adoption of this resolution, and in no event later than fifteen (15) days prior to such hearing, a certified copy of said map shall be filed in the Office of the County Recorder of the County of Riverside. PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: Mayor ATTEST: SHEILA R. GILLIGAN, City Clerk City of Palm Desert -3- S250696 cm CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT STAFF REPORT TO: City Manager and City Council FROM: Assistant City Manager/Director of Community Development DATE: February 9, 1995 SUBJECT: Assessment District No. 94-3 RECOMMENDATION: Adopt Resolution No. appointing Superintendent of Streets; adopt Resolution No. designating newspaper for publication of notice; and adopt Resolution No. declaring intention to order the acquisition and construction of certain improvements within and for a proposed assessment district and the payment of certain expenses incidental thereto pursuant to the Municipal Improvement Act of 1913, describing the assessment district to be assessed to pay the costs and expenses thereof, and determining that bonds shall be issued in the amount of the unpaid assessments pursuant to the Improvement Bond Act of 1915. DISCUSSION: Attached is the engineer's report for Assessment District No. 3 which was formed on November 10, 1994 by city council. The public hearing for this assessment district will be scheduled on April 13, 1995. In addition, a public meeting on this district will be held at your meeting of March 23, 1995. Applicant has already deposited the required funds for processing with the City of Palm Desert. To complete the action necessary for this meeting city council will adopt resolutions appointing superintendent of streets, designating newspaper for publication of notice, and resolution of intention. RAMON A. DIAZ ASSISTANT CITY MANAGER, DIRECTOR OF COMMUNITY DEVELOPMENT/PLANNING /tm M IM BEST, BEST & K RI EG ER A PARTNERSHIP INCLUDING PROiE5SIONAL CORPORATIONS LAWYERS 400 MISSION SOUARE PALM SPRINGS 3750 UNIVERSITY AVENUE (619) 325-7264 POST OFFICE BOX 1028 RIVERSIDE, CALIFORNIA 92502 RANCHO MIRAGE TELEPHONE (909) 686-1450 (619) 568.2611 TELECOPIER (909) 686-3083 January 26, 1995 Ramon A. Diaz Director of Planning and Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Re: Proposed Assessment District No. 94-3 (Merano) Dear Ray: ONTARIO (909) 989-8584 Enclosed for your review are a calendar of proceedings, suggested draft resolutions and our covering memorandum regarding proposed Assessment District No. 94-3 (Merano) for consideration by the City Council at the meeting on February 9, 1995. Please note that the Council will be asked to schedule the public hearing on the Engineer's Report for its meeting of April 13, 19937, as well as a public meeting on March 23, 1995. The Preliminary Engineer's Report itself should be included as part of the February 9th agenda materials. The Engineer's Report should have been sent to you under separate cover by Ken Crawford of KWC Engineers, Inc. We would recommend that the Mr. Crawford briefly present the Engineer's Report to the Council at the meeting of February 9, 1995. The Council should be advised regarding the location and boundaries of the assessment district. An overview of the public improvements to be acquired, the cost estimate and the method and formula for spreading the assessments should also be presented to the Council. If the Council wishes to proceed at this point, it should adopt the enclosed resolutions. iJs250828 CM IM LAW OFFICES OF BEST, BEST & KRIEGER Ramon A. Diaz January 26, 1995 Page 2 Upon approval, we would appreciate it if you would furnish us with signed copies of the Engineer's Report, our proposal letter and certified copies of the resolutions for our transcript of these proceedings. Sincerely, V�K-. John E. Brown of Best, Best & Krieger JEB:bjs Enclosures cc: Sheila R. Gilligan Ken Crawford Curt deCrinis IJS250828 LAW OFFICES OF BEST, BEST & KRIEGER iM ISSUER CITY OF PALM DESERT ASSESSMENT DISTRICT NO. 94-3 (MERANO) INTERESTED PARTIES LIST January 30, 1995 City of Palm Desert 73-510 Fred Waring Drive FAX: (619) 340-0574 Palm Desert, CA 92260-2578 Bruce Altman, City Manager (619) 346-0611 Ramon A. Diaz, Assistant City Manager Director of Community Development and Planning (619) 346-0611 Sheila R. Gilligan, City Clerk (619) 346-0611 Paul S. Gibson, Treasurer (619) 346-0611 CITY ATTORNEY Best, Best & Krieger 39700 Bob Hope Drive, Suite 312 P. O. Box 1555 Rancho Mirage, CA 92270 FAX: (619) 340-6698 (619) 341-7039 David J. Erwin, Esq. (619) 568-2611 BOND COUNSEL Best, Best & Krieger 400 Mission Square 3750 University Avenue FAX: (909) 686-3083 Riverside, CA 92502 (909) 6824612 John E. Brown, Esq. (909) 686-1450 Barbara Skinner, Legal Assistant (909) 686-1450 ASSESSMENT ENGINEER KWC Engineers, Inc. 1269 W. Pomona Rd. Ste, 104 FAX: (909) 272-3308 Corona, CA 91720 Ken W. Crawford, President (909) 734-2130 Edward G. Sloman, Vice President (909) 734-2130 T2500.0438 BJs238068 LAW OFFICES OF BEST, BEST & KRIEGER ASSESSMENT ENGINEER (continued) Larry Bevington 8372 Rush Street Rosemead, CA 91770 Larry Berington FINANCIAL ADVISOR C.M. deCrinis & Co. 5670 Wilshire, Ste. 1777 Los Angeles, CA 90046 Curt M. deCrinis UNDERWRITER [TO BE SELECTED AT TIME OF SALE] LAND R DRVELOPE Robert L. Mayer, Trustee Robert L. Mayer Trust P.O. Box 8680 660 Newport Center Drive # 1050 Newport Beach, CA 92656-8680 Robert L. Mayer, Trustee DEVELOPER S.H. Sanberg & Partners, Inc. 2914 E. Katella Orange, CA 92667 Steve Sanberg FISCAL AGENT Bank of America National Trust and Savings Association Corporate Trust 8510 333 South Beaudry Avenue 25th Floor Los Angeles, CA 90017 Brigitta Long (CONTINUATION) City of Palm Desert Assessment District No. 94-3 (Merano) FAX: (818) 288-3134 (818) 288-2575 FAX: (213) 656-9717 (213) 656-9700 FAX: (714) 720-1017 (714) 759-8091 FAX: (714) 538-4546 (714) 639-4097 FAX: (213) 345-2333 (213) 345-0659 BJs238068 72500.0438 COUNSEL FOR FISCAL AGENT Morrison & Foerster 555 W. Fifth St., Ste. 3500 Los Angeles, CA 90013 Darrell Sackl (CONTINUATION) City of Palm Desert Assessment District No. 94-3 (Merano) FAX: (213) 892-5454 (213) 892-5200 72500.0438 BJS238068 ANESSMENT DISTRICT NO. 94.3 (Merano) CITY OF PALM DESERT County of Riverside California Calendar of Proceedings for Assessment District No. 94-3 (January 25, 1995) _ RESOLUTION DATE NUMBER 1994 November 10 Petition for Formation of Assessment District and waiver of 1931 Act proceedings filed with City Clerk. Petition must be signed by the owners of more than 60% of area of property subject to assessment, preparation of 1931 Act Report is waived. (Streets & Highways Code Sections 2821-2855). City Clerk files Certificate of City Clerk as to Sufficiency of Petition. November 10 City Council adopts Resolution: Appointing Assessment Engineer, Bond Counsel, Appraiser and Financial Advisor. 199 February 9 City Council Adopts Resolutions: Appointing Superintendent of Streets. Designating newspaper for publication of notice. Resolution of Intention pursuant to Section 10200.* All subsequent references, unless otherwise noted, are to the California Streets and Highways Code. City Council of the City of Palm Desert meets second and fourth Thursdays at 4:00 p.m. Public Hearings are held on the second and fourth Thursdays at 7:00 p.m. BJs250659 cm Lwn DATE 1995 February 9 February 9 ASSESSMENT DISTRICT NO. 94-3 RESOLUTION NUMBER ACTION Adopting proposed Assessment District Boundary Map (Sections 2822, 3110). Original Assessment District Boundary Map endorsed by City Clerk on original and one copy certifying date and adoption of Resolution No. . File original in Clerk's office. File Copy with County Recorder within fifteen (15) days after adopting resolution setting hearing of protests (Sections 3110 and 3111). File proposed Assessment District Map with County Recorder (Section 3111). Filed on , 1995, Recorded in Book—, Page _ of Maps of Assessment and Community Facilities Districts as Instrument No. February 9 ENGINEER'S REPORT11931 ACT REPORT PURSUANT TO THE PROVISIONS OF THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND THE SPECIAL ASSESSMENT INVESTI- GATION LIMITATION AND MAJORITY PROTEST ACT OF 1931 FILED WITH CITY CLERK ON FEBRUARY 9 AND PRESENTED TO CITY COUNCIL ON FEBRUARY 9. 1995. Approving Engineer's Report. Public Hearing on any protests to the proposed improvement set for April 13, 1995, and approving Report pursuant to Special Assessment Investigation, Limitation and Majority Protest Act of 1931 and Overruling Assessment Limitations Under Special Assessment Investigation, Limitation and Majority Protest Act of -2- siS250659 cm CM DATE WWA February 9 February 22 ASSESSMENT DISTRICT NO. 94-3 RESOLUTION NUMBER '_6-0040 1931. Preliminary hearing set for March 23, 1995. 1931/1913 ACT HEARING DATE: March 23, 1995 7:00 p.m. PRELIMINARY HEARING DATE: April 13, 1995 7:00 p.m. (Protest Hearing shall be held not less than forty-five (45) days after passage of the Resolution of Intention. Section 10301 and Government Code Section 54954.6.) City Clerk shall mail Notice of Hearing to all property owners to be assessed as shown on the last equalized assessment roll for County taxes. (Section 2851.) Must be mailed at least 45 days prior to the date of the hearing. (Section 2853.) February 22 City Clerk/Assessment Engineer mails Notice of Improvement to all property owners to be assessed as shown on the last equalized assess- ment roll for County taxes. Must be mailed at least forty-five (45) days before the date set for hearing of protests. (Section 10306 and Government Code Section 54954.6.) February 27 LAST DAY TO MAIL NOTICE OF IMPROVEMENT March 23 Preliminary Public Hearing, 7:00 p.m. in Council Chambers. BJs250659 -3 cm en 904 March 29 ASSESSMENT DISTRICT NO. 94-3 LAST DAY TO FILE ASSESSMENT DISTRICT BOUNDARY MAP. Last day to file proposed Assessment District Map with County Recorder (Section 3111). Filed on , 1995, Recorded in Book , Page of Maps of Assessment and Community Facilities Districts as Instruments No. March 30 Property owner waiver of 30 day assessment payment period received. April 13 City Council's Public Hearing on Protests to Improvement and 1931 Act Report. If owners of more than one-half (1/2) of the area lands to be assessed protest, proceedings must be abandoned for one (1) year, unless protests are overruled by four -fifths vote of the City Council (Section 10311). April 13 City Council adopts Resolutions: Confirming Assessment and Ordering Improvements (Section 10312). Determining Unpaid Assessments. Authorizing Negotiation of a Bond Purchase Contract and Approving Preliminary Official Statement. Authorizing Sale of Bonds. Approving Sale of Bonds to BJS250659 -4- ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTIOK 19 April 14 Superintendent of Streets files list of paid and unpaid assessments with City Treasurer (Section 6420). Bonds dated May 1, 1995. April 14 City Clerk transmits diagram and assessment to the Superintendent of Streets (Section 10401). Superintendent of Streets records a certified copy of diagram and assessment in his office (Section 10401). April 17 City Clerk/Assessment Engineer records Notice of Assessment in the office of the County Recorder (Sections 10402.5 and 3114). April 18 City Clerk records certified copy of assessment diagram in the office of the County Recorder (Sections 10402.5 and 3114). City Clerk mails Notice of Assessment to property owners (Sections 10404 and 5070). April 19 Clerk publishes Notice of Recording Assessment (Section 10404). [First publication.] Second publication on July 6, 1994. April 26 Clerk publishes Notice of Recording Assessment. [Second publication.] City Clerk completes Declarations of recording Assessment and diagram with Superintendent of Streets and Declarations of Recording and Mailing Assessment Diagram and Notice of Assessment. BJS250659 -5- Cm M ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION May 1 Bonds sold and delivered and project funded. Last day legal action contesting validity of assessments may be commenced (Section 10400). BJS250659 -6 LAW OFFICES OF BEST, BEST & KRIEGER� C'5 MEMORANDUM January 26, 1994 TO: MAYOR, CITY COUNCIL AND CITY MANAGER FROM: BEST, BEST & KRIEGER RE: ASSESSMENT DISTRICT NO. 94-3 (MERANO) The Robert L. Mayer Trust has presented to the City a petition requesting that the City Council initiate proceedings for the formation an assessment district and issuing bonds to acquire and construct public improvements which have been and are to be constructed for the Merano development located at the Northeast corner of Country Club Drive and Monterey Avenue. These improvements include water system facilities which are to be acquired for Coachella Valley Water District and the widening of Monterey Avenue and Country Club Drive along with providing public facilities including sewer, water, storm drainage, utilities and minor grading to each of the blocks within the Merano Development. The Council may recall that it has previously approved an agreement between the City and the Robert L. Mayer Trust regarding formation of this Assessment District. At its February 9 meeting, the Council will be considering the adoption of five resolutions with respect to the Assessment District. The order of adoption of these resolutions is: 1. Resolution Appointing Superintendent of Streets. 2. Resolution Designating Newspaper. JS250790 LAW OFFICES OF BEST, BEST & KRIEGER`%w 3. Resolution of Intention. 4. Resolution Adopting Boundary Map. 5. Resolution Approving Engineer's Report. KWC Engineers, Inc. has prepared the report required by the Municipal Improvement Act of 1913, and as directed by the Resolution of Intention. This report contains, among other things, the assessment diagram and assessment roll for the Assessment District. The assessment roll contains the amount proposed to be assessed against each parcel of property in the Assessment District. After reviewing the report, if the Council wishes to proceed, it should adopt the resolution approving the report of the Assessment Engineer which sets a public hearing on the report, the formation of the proposed Assessment District, and the proposed improvements. The hearing has been scheduled for April 13, 1995 at 7:00 p.m. A public meeting to allow public testimony regarding the proposed assessment has also been scheduled for March 23, 1995 at 7:00 p.m. _ JOHN E. BROWN -2- 0790 1400, RESOLUTION NO. ASSESSMENT DISTRICT NO. 94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPOINTING SUPERINTENDENT OF STREETS WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L. Mayer Trust and the City providing for the acquisition and construction of said public improvements, and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, it is necessary for the City Council to appoint a Superintendent of Streets in connection with the proceedings for the formation of the Assessment District; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: 1. That the City Engineer is hereby appointed to act as Superintendent of Streets for the Assessment District and to perform all duties of said office in connection with said Assessment District proceedings. IJS250664 cm Em PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: sQ Mayor ATTEST: SHEILA R. GHLUGAN, City Clerk City of Palm Desert JS250664 _2 M rn RESOLUTION NO. ASSESSMENT DISTRICT NO.94-3 (Merano) RESOLUTION OF THE CICOUNCIL pER THE BE� USED OF PALM DESERT DESIGNATING FOR ASSESSMENT DISTRICT PROCEEDINGS WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and cipAct of 1913, expenses in connection therewith, pursuant to the M ni bonds io berissued ovemeto finance said Division 12 of the Streets and Highways Code, with Division 10 of said code, said improvements pursuant to the Improvement Bond A No 94 3 (Merano), City of Palm assessment district being designated Assessment District Desert, County of Riverside, State of California" (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing the execution of an agreement entitled "Assessment District t Acquthe1 ition and L. Construction Agreement, Assessment District No. 94 3 ( ) Mayer Trust, and the City providing for the acquisition oce and Co for the formation of ction of said the lic improvements, and for the initiation by the City of ovement Act of 1913 and the sale of Assessment District pursuant to the Municipal Imp bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, the City Council desires to designate the newspaper to be used for publications in connection with said proceedings; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: 1. That the Desert Sun, a newspaper published and circulated within the City of Palm Desert, is hereby designated as the newspaper in which shall be pub conned ection vv� b all notices, resolutions, orders and other matters required to bepublished said Assessment District proceedings. JS250666 RESOLUTION NO. ASSESSMENT DISTRICT NO.94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING INTENTION TO ORDER THE ACQUISITION AND CONSTRUCTION OF CERTAIN IMPROVEMENTS WITHIN AND FOR A PROPOSED ASSESSMENT DISTRICT AND THE PAYMENT OF CERTAIN EXPENSES INCIDENTAL THERETO PURSUANT TO THE MUNICIPAL IMPROVEMENT ACT OF 19139 DESCRIBING THE ASSESSMENT DISTRICT TO BE ASSESSED TO PAY THE COSTS AND EXPENSES THEREOF, AND DETERMINING THAT BONDS SHALL BE ISSUED IN THE AMOUNT OF THE UNPAID ASSESSMENTS PURSUANT TO THE IMPROVEMENT BOND ACT OF 1915 WHEREAS, the Robert L. Mayer Trust has presented a signed petition to the City Council (the "City Council") of the City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L. Mayer Trust, and the City providing for the acquisition and construction of said public improvements, and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, the .City Council hereby finds that the public interest, convenience and necessity require the acquisition and construction of the public improvements and payment of incidental costs and expenses in connection therewith, for the benefit of the lands within the exterior boundaries of the Assessment District, all within the exterior boundaries of the City, that the acquisition and construction of the public improvements is feasible, and that the lands to be assessed will be able to carry the burden of the proposed assessments and to pay the costs and expenses thereof; 3JS250670 1■r NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: Section 1. Acguisition and Construction of Improvements. The public interest, convenience, and necessity require, and it is the intention of the City Council pursuant to the provisions of Division 12 of the Streets and Highways Code, the Municipal Improvement Act of 1913, to order the acquisition and construction of certain public improvements referred to hereinafter as the "improvements," all in the City of Palm Desert, County of Riverside, State of California, described as follows: Tract No. 27882-1 - 64 Lots 1) Country Club Drive roadway improvements including public utilities 2) Monterey Avenue roadway improvements including public utilities 3) Via Scena - roadway, sewer, water and storm drainage improvements 4) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage facilities. Tract No. 27882-2 - 64 Lots 1) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage. Tract No. 27882 (Unrecorded Lot - Future Development) 1) Partial Country Club Drive roadway improvements 2) Partial Monterey Avenue roadway improvements This description of the improvements is intended to be general in nature and the description of the improvements contained in the report of the Assessment Engineer shall be controlling as the correct and detailed description thereof. Section 2. Description of Assessment District. The improvements will be of direct benefit to properties and lands within the proposed Assessment District which is hereby declared to be the district benefitted by said improvements and to be assessed to pay the costs and expenses thereof. Said district shall be known as "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California," and shall be all that part of the City, having the exterior boundaries as shown on the map of the Assessment District entitled "Proposed Boundaries of Assessment District No. 94-3, City of Palm Desert, County of Riverside, State of California," which map is on file in the office of the City Clerk of the City. Reference is hereby made to said map for a full and complete description of the Assessment District, and said map shall govern for all details as to the extent of the Assessment District. -2- 3JS250670 �rrr' Section 3. Report. The proposed improvements are hereby referred to KWC Engineers, Inc., the Assessment Engineer for the Assessment District, and said Assessment Engineer is hereby directed to make and file with the City Clerk of the City a report (the "Report") in writing presenting, to the extent they may be applicable, the following: (a) Plans and specifications of the proposed improvements which shall indicate the class and type of improvements to be provided for each zone within the Assessment District; (b) A general description of works or appliances already installed and any other property necessary or convenient for the operation of the improvements, if the works, appliances, or property are to be acquired as part of the improvements; (c) An estimate of the cost of the improvements and of the cost of lands, rights -of -way, easements, and incidental expenses in connection therewith, including any cost of registering bonds; (d) A diagram showing as they existed at the time of the adoption of this resolution of intention (i) the exterior boundaries of the Assessment District, (ii) the boundaries of any zones within the Assessment District, and (iii) the lines and dimensions of each parcel of land within the Assessment District. Each subdivision, including each condominium interest, as defined in Section 783 of the Civil Code, shall be given a separate number upon said diagram; (e) A proposed assessment of the total amount of the costs and expenses of the acquisition and construction of the improvements upon the several subdivisions of land in the Assessment District in proportion to the estimated benefits to be received by said subdivisions, respectively, from the improvements. Said assessment shall refer to such subdivisions by their respective numbers as assigned pursuant to subparagraph (d) of this Section 3. (f) A proposed maximum annual assessment upon each of the several subdivisions of land in the district to pay costs incurred by the City and not otherwise reimbursed which result from the administration and collection of assessments or from the administration or registration of any associated bonds and reserve or other related funds. (g) A description of the improvements to be acquired and constructed. Section 4. Bonds It is hereby determined and declared and notice is hereby given that serial bonds or term bonds, or both, to represent and to be secured by the unpaid amount of the assessments which will be levied to pay the costs and expenses of the acquisition and construction of the improvements, and to bear interest at the rate of not to exceed 12 percent per annum, shall be issued in the manner provided by Division 10 of the Streets and Highways Code, the Improvement Bond Act of 1915, and the last installment of such bonds shall mature a maximum of 25 years from the second day of September next IJS250670 -3 succeeding 12 months from their date. The amount of principal of the bonds maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year will be an aggregate amount that is substantially equal each year, except for the monies falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. Section 55. Special Reserve Fund. Pursuant to Part 16 (commencing with Section 8880) of Division 10 of the Streets and Highways Code, there shall be included in the assessments to be levied on the land in the Assessment District, as an incidental expense of the proceedings, an amount not to exceed ten percent (10%) of the amount of the bonds to be issued to create a special reserve fund for the bonds. Said special reserve fund shall be identified as the "Assessment District No. 94-3 Special Reserve Fund," and upon receipt of the bond sale proceeds, said proceeds shall be transferred to said special reserve fund. Said special reserve fund shall constitute a trust fund for the benefit of the bondholders, and shall be maintained, used, transferred, reimbursed and liquidated as provided in said Part 16. Section 6. Collection of Assessments and Advance Retirement of Bonds. The procedures set forth in Part 11.1 of Division 10 of the Streets and Highways Code shall be followed in the collection of assessments and advance retirement of bonds. Section . Disposition of Surplus Funds. If after completion of the acquisition and construction of the improvements and the payment of all claims from the improvement fund the City Council shall determine that a surplus remains in the improvement fund by reason of the assessment and any supplemental assessment levied for the improvements, any such surplus shall be used, in such amounts as the City Council shall determine, as follows: (a) For transfer to the general fund of the City of an amount not to exceed the lesser of one Thousand Dollars ($1,000.00) or five percent (5%) of the total amount expended from the improvement fund; (b) For the maintenance of the improvements; (c) As a credit upon the assessment and any supplemental assessment, in the manner provided in Section 10427.1 of the Streets and Highways Code; (d) To call bonds, thereby reducing outstanding assessments and subsequent assessment installments. Section 8. Refunding of Bonds. The City Council determines that the bonds to be issued pursuant to Section 4 hereof may be refunded pursuant to Division 11.5 (commencing with Section 9500) of the Streets and Highways Code on the following conditions: -4- IJS250670 (a) The maximum interest rate on the refunding bonds shall not exceed the. maximum rate permitted by law at the time of the refunding; (b) The maximum number of years to maturity of the refunding bonds shall not exceed the number of years to maturity of the bonds to be refunded; and (c) Any adjustment to assessments resulting from the refunding will be done on a pro-rata basis. Section . No Obligation to Cure Deficiency. The City Council determines and declares pursuant to Section 8769 of the Streets and Highways Code that the City will not obligate itself to advance available funds from the treasury of the City to cure any deficiency which may occur in the bond redemption fund. Section 10. Proceedings Under the Special Assessment Investigation. Limitation and Majority Protest Act of 1931. The City Council intends to comply with the requirements of the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, Division 4 (commencing with § 2800) of the Streets and Highways Code, by proceeding under Part 7.5 (commencing with § 2960) of said Division 4. In addition to the matters provided for in Section 3 hereof, there shall be included in the report provided for therein the following information: (a) the total amount, as near as may be determined, of the total principal of all unpaid special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated in the instant proceedings, which would require an investigation and report under said act against the total area proposed to be assessed; and (b) the total true value, as near as may be determined, of the parcels of land and improvements which are proposed to be assessed. Pursuant to Sections 2961 and 2980 of the Streets and Highways Code, such total true value shall be the full cash value of such land and improvements as defined in Article ?III A of the California Constitution as shown upon the last equalized assessment roll of the County of Riverside. Section 11. PrOeM Owners Taking Contract. It is hereby determined and declared that the public interest will not be served by allowing the owners of the lands assessed or liable to be assessed, or their agents, to take a contract for the construction and installation of the improvements. Section 12. Adjustment of Grade on Private Property. Wherever it is necessary to eliminate any disparity in level or size between said improvements and private property, it is in the public interest and more economical to do such work on private property than to adjust the work on public property to eliminate such disparity. iJS250670 -5 cm cm PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: Mayor ATTEST: SHEILA R. GILLIGAN, City Clerk City of Palm Desert JS250670 _6 Nwof RESOLUTION NO. ASSESSMENT DISTRICT NO. 94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT ADOPTING MAP DESCRIBING PROPOSED BOUNDARIES OF ASSESSMENT DISTRICT AND ORDERING FILING OF MAP WHEREAS, the Robert L Mayer Trust has presented a signed petition to the City Council (the "City Council") of the City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the provisions of the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to fund and finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated as Assessment District No. 94-3 (Merano), City of Palm Desert, State of California (the "Assessment District"); and WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L Mayer Trust and the City providing for the acquisition and construction of said public improvements and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, prior to the hearing on the formation of the Assessment District, the City Council must describe the boundaries of the Assessment District by adopting a map which shall indicate by a boundary line the extent of the territory included therein and the Assessment Engineer for the Assessment District has prepared such a map; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: Section 1. The City Council approves and adopts the map entitled "Boundaries of Assessment District No. 94-3, City of Palm Desert, County of Riverside, State of California," as the map of the proposed boundaries of the Assessment District and orders that such map shall govern for all details as to the extent of the Assessment District. Section 2. The City Clerk shall file the original of such map in her office, and within fifteen (15) days after the adoption of the resolution fixing the time and place of the 3JS250668 M cm hearing on the formation of the Assessment District and in no event later than fifteen (15) days prior to such hearing, shall file a copy thereof with the County Recorder of the County of Riverside. PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: Mayor ATTEST: SHEILA R. GIL IGAN, City Clerk City of Palm Desert TS250668 .2 cm RESOLUTION NO. ASSESSMENT DISTRICT NO. 94-3 (Merano) RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING ASSESSMENT ENGINEER'S REPORT AND APPOINTING TIME AND PLACE FOR HEARING PROTESTS TO THE PROPOSED ACQUISITION AND CONSTRUCTION OF PUBLIC IMPROVEMENTS WHEREAS, the Robert L. Mayer Trust, a California corporation, has presented a signed petition to the City Council (the "City Council") of the City of Palm Desert (the "City") requesting the formation of an assessment district for the acquisition and construction of certain public improvements, together with appurtenances and appurtenant work and incidental costs and expenses in connection therewith, pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, with bonds to be issued to finance said improvements pursuant to the Improvement Bond Act of 1915, Division 10 of said Code, said assessment district being designated "Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California" (the "Assessment District"); WHEREAS, the City Council has adopted a resolution approving and authorizing execution of an agreement entitled "Assessment District Acquisition and Construction Agreement, Assessment District No. 94-3 (Merano)" between the Robert L. Mayer Trust, and the City providing for the acquisition and construction of certain public improvements, and for the initiation by the City of proceedings for the formation of the Assessment District pursuant to the Municipal Improvement Act of 1913 and the sale of bonds pursuant to the Improvement Bond Act of 1915 to acquire and construct and finance the acquisition and construction of said public improvements; and WHEREAS, the City Council has adopted Resolution No. which is entitled "Resolution of the City Council of the City of Palm Desert Declaring Intention to Order the Acquisition and Construction of Certain Improvements Within and for a Proposed Assessment District and the Payment of Certain Expenses Incidental Thereto Pursuant to the Municipal Improvement Act of 1913, Describing the Assessment District to be Assessed to Pay the Costs and Expenses Thereof, and Determining that Bonds shall be Issued in the Amount of the Unpaid Assessment Pursuant to the Improvement Bond Act of 1915," and said resolution is the resolution of intention with respect to the proceedings for the proposed Assessment District and the sale of said bonds (the "Resolution of Intention"); and WHEREAS, pursuant to the Resolution of Intention, the Assessment Engineer named therein has prepared and filed its report with the City Clerk as provided for in JS250696 Sections 10203 and 10204 of the Streets and Highways Code, and said report has been presented to the City Council for review and consideration; and WHEREAS, the City Council desires to pass on said report and appoint a time and place for hearing of protests to the acquisition and construction of the public improvements; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: Section 1. The Report of the Assessment Engineer (the "Report") contains all matters required by Section 10204 of the Streets and Highways Code, as well as all matters required by Section 2961 of said Code, and is therefore in proper form and does not require modification, and the Report is hereby adopted, passed upon and preliminarily approved. Section 2. The time of 7:00 p.m. on April 13, 1995, and the meeting room of the City Council of the City at 73-510 Fred Waring Drive, Palm Desert, California, are appointed as the time and place for hearing protests to the proposed acquisition and construction of the public improvements. Any and all persons having any objections to the proposed acquisition and construction of the public improvements, or the proposed assessment on the land within the proposed Assessment District, or any parcel thereof, or the extent of the Assessment District may appear and show cause why the acquisition and construction of the public improvements should not be accomplished in accordance with the Resolution of Intention and the Report. Protests must be in writing and must be delivered to the City Clerk at or before the time set for the hearing. The time of 7:00 p.m. on March 23, 1995, and the meeting room of the City Council of the City at 73-510 Fred Waring Drive, Palm Desert, California, are appointed as the time and place for allowing public testimony regarding the proposed assessment during the regular meeting of the City Council. Any interested person may present testimony at such time regarding the proposed assessment. Section 3. The City Council does hereby designate Ray Diaz, Assistant City Manager/Director of Community Development and Planning of the City, telephone number (619) 346-0611, as the person to answer inquiries regarding the protest proceedings. Section 4. The City Clerk is directed to give notice of the hearing as follows: (a) At least forty. -five (45) days before the date set for hearing of protests, the City Clerk shall, pursuant to Sections 10301 and 10306 of the Streets and Highways Code and Section 54954.6 of the Government Code, mail, postage prepaid, notice of said hearing and of the adoption of the Resolution of Intention and the filing and consideration of the Report to all persons owning real property proposed to be assessed whose names and addresses appear on the last equalized assessment roll for taxes of the County of Riverside, or who are known to the City Clerk. JS250696 -2 (b) Upon the completion of the mailing of said notices, the City Clerk shall file with the City Council a declaration setting forth the time and manner of the compliance with the requirements of this resolution for mailing notices. Section S. On the original and on at least one copy of the map of the boundaries of the Assessment District, the City Clerk shall endorse a certificate evidencing the date of adoption of this resolution, and within fifteen (15) days after the adoption of this resolution, and in no event later than fifteen (15) days prior to such hearing, a certified copy of said map shall be filed in the Office of the County Recorder of the County of Riverside. PASSED, APPROVED AND ADOPTED this 9th day of February, 1995, by the following vote, to wit: AYES: NOES: ABSENT: RIN Mayor ATTEST: SHEIL.A R. GILLIGAN, City Clerk City of Palm Desert S250696 _3 0 gn Im NOTICE OF HEARING AND PUBLIC MEETING (Notice to Property Owners) ASSESSMENT DISTRICT NO. 94-3 (MERANO) CITY OF PALM DESERT COUNTY OF RIVERSIDE STATE OF CALIFORNIA NOTICE IS HEREBY GIVEN that on February 9, 1995, the City Council of the City of Palm Desert adopted Resolution No. 95-6 (the "Resolution of Intention") declaring its intention, pursuant to the provisions of Division 12 of the Streets and Highways Code of the State of California, commonly known as the Municipal Improvement Act of 1913, to order the acquisition and construction of certain public improvements within and for a proposed special assessment district known as Assessment District No. 94-3 (Merano), City of Palm Desert, County of Riverside, State of California (the "Assessment District"); and that on February 9, 1995, a report prepared by the Assessment Engineer for the Assessment District pursuant to the Resolution of the Intention (the "Report") was filed with and approved by the City Council. The Report contains, among other things, a general description of the public improvements to be acquired and constructed, an estimate of the cost of the acquisition and construction of said public improvements and incidental costs and expenses in connection therewith, an assessment diagram of the Assessment District and the boundaries and dimensions of the separate parcels of land therein, an assessment roll setting forth the amount of the assessment to be levied on each parcel of land in the Assessment District, and a report pursuant to the provisions of Part 7.5 (commencing with Section 2960) of Division 4 of the Streets and Highways Code of the State of California, said division being commonly known as the special Assessment Investigation, Limitation and Majority Protest Act of 1931. n In DESCRIPTION OF IMPROVEMENTS A general description of the public improvements which are proposed for acquisition and construction (the "improvements") and that are proposed to be funded with the assessments to be levied on the parcels of land within the Assessment District is as follows: Tract No. 27882-1 - 64 Lots 1) Country Club Drive roadway improvements including public utilities 2) Monterey Avenue roadway improvements including public utilities 3) Via Scena - roadway, sewer, water and storm drainage improvements 4) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage facilities. Tract No. 27882-2 - 64 Lots 1) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage. Tract No. 27882 (Unrecorded Lot - Future Development) 1) Partial Country Club Drive roadway improvements 2) Partial Monterey Avenue roadway improvements This description of the improvements is intended to be general in nature and the description of the improvements contained in the report of the Assessment Engineer shall be controlling as the correct and detailed description thereof. -2- BJS252038 M M COST OF ACQUISITION AND CONSTRUCTION The total estimated cost of the acquisition and construction of the improvements, including incidental costs and expenses, is $1,500,000.00. PROTEST HEARING AND MAJORITY PROTEST A public hearing will be held at 7:00 p.m. on April 13, 1995, in the City Council Chambers of the City at 73-510 Fred Waring Drive, Palm Desert, California, for the purpose of hearing protests to the proposed acquisition and construction of the improvements. Any interested person may object to the proposed acquisition and construction of the improvements, the extent of the Assessment District, or to the proposed assessment by filing a protest in writing containing a description of the property in which each signer of such protest is interested sufficient to identify the same, and, if the signers of the protest are not shown on the last equalized assessment roll as the owners of such property, containing or accompanied by written evidence that such signers are the owners of such property, with the City Clerk of the City of Palm Desert at or before the time of the hearing. If at the conclusion of the protest hearing the City Council finds that written protest has been made by the owners of more than one-half of the area of the land to be assessed for the proposed acquisition and construction of improvements, and protests are not withdrawn so as to reduce the protest to less than a majority, no further proceedings shall be taken with respect to the proposed acquisition and construction of said improvements for a period of one year from the date of such determination, unless the protests are overruled by an affirmative vote of four -fifths of the members of the City Council. -3- BJS252038 M En Written protests may be mailed to the City Clerk at the following address: City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 PUBLIC MEETING The City Council will also allow public testimony regarding the proposed assessment during the regular meeting of the City Council on March 23, 1995. The time and place for that public testimony will be 7:00 P.M. on March 23, 1995 in the City Council Chambers of the City at 73-510 Fred Waring Drive, Palm Desert, California. Any interested person may present testimony at such time regarding the proposed assessment. UNPAID ASSESSMENTS Pursuant to the provisions of Part 7.5 (commencing with Section 2960) of Division 4 of the Streets and Highways Code of the State of California, said division being the Special Assessment Investigation, Limitation and Majority Protest Act of 1931, the Report also contains the following information which is prescribed by Section 2961 of said Code: (1) The total amount, as near as may be determined, of the total principal sum of all unpaid special assessments and special assessments required or proposed to be levied under any completed or pending assessment proceedings, other than that contemplated in the instant proceedings, which would require an investigation and report under said Division 4, against the total area proposed to be assessed; and (2) The total true value, as near as may be determined, of the parcels of land and improvements which are proposed to be assessed. Pursuant to Section 2961 and 2980 of se BJS252038 In En the Streets and Highways Code, such total true value shall be the full cash value of such land and improvements as defined in Article XIII A of the California Constitution as shown upon the last Equalized Assessment roll of the County of Riverside. The total principal amount of unpaid assessments already levied against all the property proposed to be assessed, as computed in the Report, is none. The City Council of the City of Palm Desert has designated the following named official as the person to provide information regarding the protest proceedings and the proposed assessment: Ramon A. Diaz Assistant City Manager/Director of Community Development City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Telephone Number: (619) 346-0611 THIS IS NOT A BILL YOU APPEAR ON THE LAST EQUALIZED ASSESSMENT ROLL FOR TAXES OF THE COUNTY OF RIVERSIDE TO BE THE OWNER OF A PARTICULAR PARCEL OF REAL PROPERTY IN THE PROPOSED ASSESSMENT DISTRICT. THE PARTICULAR PARCEL OF REAL PROPERTY OWNED BY YOU ACCORDING TO SAID ASSESSMENT ROLL IS DESCRIBED ON THE SHEET ATTACHED HERETO. AT THIS TIME, ALL AMOUNTS SET FORTH HEREIN AND THE ASSESSMENTS ARE BASED ON -5- BJS252038 V9 LIM ESTIMATES ONLY. THE ESTIMATED ASSESSMENT TO BE LEVIED ON YOUR PARTI- CULAR PARCEL OF PROPERTY FOR THE CONSTRUCTION OF THE IMPROVEMENTS IS SHOWN ON THE SHEET ATTACHED HERETO. DATED: February _, 1995 Sheila R. 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N Z O d tp N �O O P 0 .- N M IT In m a c T v Q N N 00 ol hN ^N 00 O M M N 10 O fV O 64 U N o L o Go co o co O c go •O Lr% .' .O Lf% .O Ln •u .O � m P N N P a+ N N C.m N P �+ N O P L L L �(a L L �m L L L( Q L L �m a L >. 4 L 1T9 U Q L f0 U L f0 U L m U O U O Z y O E O O E O S U oft UN U - U U U J O a J 0 u a J 0 u J J O u J J U O N m co�m 'g cSm � m02 am 2 am ao om - ai ¢ m m Qocm O a O 3 L\O a LL a O 3 t\O a a O 3 t\O a a O 3 L\O a C\ O a uaz r uaz uaz r- uaz h•, uo_z N O L Z O CA N a a u N L N W Q a O N •O N •O N •O N •O N 1O A CC E N m N o L N Z rn a 1C N 1!1 •O /� CO P y N N N N N 00 09 BEST, BEST & KRIEGER A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS 400 MISSION SOUARE PALM SPRINGS (619) 325-7264 3750 UNIVERSITY AVENUE POST OFFICE BOX 1028 RIVERSIDE, CALIFORNIA 92502 RANCHO MIRAGE (619) 568-2611 TELEPHONE (909) 686-1450 TELECOPIER (909) 686-3083 February 1, 1995 TO ALL PARTIES ON THE ATTACHED INTERESTED PARTIES LIST Re: City of Palm Desert Assessment District No. 94-3 (Merano) Ladies and Gentlemen: ONTARIO -858 6 1995 COhfMLSgCry 0 F'p`MfNiDFPARiA1f1R DrSFRT The enclosed calendar of proceedings has been revised to reflect comments from interested parties. Please discard the calendar previously forwarded to you on January 26, 1995. Please note that we have omitted the references to compliance with CEQA based on our understanding that the City has previously conducted the necessary environmental proceedings. bjs/ Enclosure cc: Interested Parties Yours sincerely, Barbara Skinner Legal Assistant BJS251692 LAW OFFICES OF BEST, BEST 6 KRIEGEf►" in CITY OF PALM DESERT ASSESSMENT DISTRICT NO. 94-3 (MERANO) INTERESTED PARTIES LIST ISSUER City of Palm Desert 73-510 Fred Waring Drive February 1, 1995 Palm Desert, CA 92260-2578 FAX: (619) 340-0574 Bruce Altman, City Manager (619) 346-0611 Ramon A. Diaz, Assistant City Manager Director of Community Development and Planning (619) 346-0611 Sheila R. Gilligan, City Clerk (619) 346-0611 Paul S. Gibson, Treasurer (619) 346-0611 CITY ATTORNEY Best, Best & Krieger 39700 Bob Hope Drive, Suite 312 P. O. Box 1555 Rancho Mirage, CA 92270 David J. Erwin, Esq. BOND COUNSEL Best, Best & Krieger 400 Mission Square 3750 University Avenue Riverside, CA 92502 John E. Brown, Esq. Barbara Skinner, Legal Assistant ASSESSMENT ENGINEER KWC Engineers, Inc. 1269 W. Pomona Rd., Ste. 104 Corona, CA 91720 Ken W. Crawford, President Edward G. Sloman, Vice President FAX: (619) 340-6698 (619) 341-7039 (619) 568-2611 FAX: (909) 686-3083 (909) 6824612 (909) 686-1450 (909) 686-1450 FAX: (909) 272-3308 (909) 734-2130 (909) 734-2130 BJS238068 72500.0438 LAW OFFICES OF BEST, BEST & KRIEGEOW ASSESSMENT ENGINEER (continued) Larry Berington 8372 Rush Street Rosemead, CA 91770 Larry Berington FINANCIAL ADVISOR C.M. deCrinis & Co. 5670 Wilshire, Ste. 1777 Los Angeles, CA 90046 Curt M. deCrinis [TO BE SELECTED AT TIME OF SALE] Robert L. Mayer, Trustee Robert L. Mayer Trust P.O. Box 8680 660 Newport Center Drive # 1050 Newport Beach, CA 92656-8680 Robert L. Mayer, Trustee DEVELOPER S.H. Sanberg & Partners, Inc. 2914 E. Katella Orange, CA 92667 Steve Sanberg FISCAL AGENT Bank of America National Trust and Savings Association Corporate Trust 8510 333 South Beaudry Avenue 25th Floor Los Angeles, CA 90017 Brigitta Long (CONTINUATION) City of Palm Desert Assessment District No. 94-3 (Merano) FAX: (818) 288-3134 (818) 288-2575 FAX: (213) 656-9717 (213) 656-9700 FAX: (714) 720-1017 (714) 759-8091 FAX: (714) 5384546 (714) 639-4097 FAX: (213) 345-2333 (213) 345-0659 SJS238068 72500.0438 COUNSEL FOR FISCAL AGENT Morrison & Foerster 555 W. Fifth St., Ste. 3500 Los Angeles, CA 90013 Darrell Sackl (CONTINUATION) City of Palm Desert Assessment District No. 94-3 (Merano) FAX: (213) 892-5454 (213) 892-5200 BJS238068 72500.0438 ASSESSMENT DISTRICT NO. 94-3``' O' (Merano) CITY OF PALM DESERT County of Riverside California Calendar of Proceedings for Assessment District No. 94-3 (Revised: February 1, 1995) RESOLUTION DATE NUMBER ACTION_ 1994 November 10 Petition for Formation of Assessment District and waiver of 1931 Act proceedings filed with City Clerk. Petition must be signed by the owners of more than 60% of area of property subject to assessment, preparation of 1931 Act Report is waived. (Streets & Highways Code Sections 2821-2855). City Clerk files Certificate of City Clerk as to Sufficiency of Petition. November 10 City Council adopts Resolution: Appointing Assessment Engineer, Bond Counsel, Appraiser and Financial Advisor. ow February 9 City Council Adopts Resolutions: Appointing Superintendent of Streets. Designating newspaper for publication of notice. Resolution of Intention pursuant to Section 10200.' All subsequent references, unless otherwise noted, are to the California Streets and Highways Code. City Council of the City of Palm Desert meets second and fourth Thursdays at 4:00 p.m. Public Hearings are held on the second and fourth Thursdays at 7:00 p.m. BJs250659 M In ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION February 9 - Adopting proposed Assessment District Boundary Map (Sections 2822, 3110). Original Assessment District Boundary Map endorsed by City Clerk on original and one copy certifying date and adoption of Resolution No. . File original in Clerk's office. File Copy with County Recorder within fifteen (15) days after adopting resolution setting hearing of protests (Sections 3110 and 3111). February 9 FILE ASSESSMENT DISTRICT BOUNDARY MAP. File proposed Assessment District Map with County Recorder (Section 3111). Filed on , 1995, Recorded in Book—, Page _ of Maps of Assessment and Community Facilities Districts as Instrument No. February 9 ENGINEER'S REPORT11931 ACT REPORT PURSUANT TO THE PROVISIONS OF THE MUNICIPAL IMPROVEMENT ACT OF 1913 AND THE SPECIAL ASSESSMENT INVESTI- GATION. LIMITATION AND MAJORITY PROTEST ACT OF 1931 FILED CITY CLERK ON FEBRUARY 9 AND PRESENTED TO CITY COUNCIL ON FEBRUARY 9. 1995. Approving Engineer's Report. Public Hearing on any protests to the proposed improvement set for April 13, 1995, and approving Report pursuant to Special Assessment Investigation, Limitation and Majority Protest Act of 1931 and Overruling Assessment Limitations Under Special Assessment Investigation, Limitation and Majority Protest Act of BJS250659 -2 ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER 991 February 9 A I N 1931. Preliminary hearing set for March 23, 1995. 1931/1913 ACT HEARING DATE: March 23, 1995 7:00 p.m. PRELIMINARY HEARING DATE: April 13, 1995 7:00 p.m. (Protest Hearing shall be held not less than forty-five (45) days after passage of the Resolution of Intention. Section 10301 and Government Code Section 54954.6.) February 22 City Clerk shall mail Notice of Hearing to all property owners to be assessed as shown on the last equalized assessment roll for County taxes. (Section 2851.) Must be mailed at least 45 days prior to the date of the hearing. (Section 2853.) February 22 City Clerk/Assessment Engineer mails Notice of Improvement to all property owners to be assessed as shown on the last equalized assess- ment roll for County taxes. Must be mailed at least forty-five (45) days before the date set for hearing of protests. (Section 10306 and Government Code Section 54954.6.) February 27 LAST DAY TO MAIL NOTICE OF IMPROVEMENT March 23 Preliminary Public Hearing, 7:00 p.m. in Council Chambers. BJs250659 -3 ER in ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION 1995 March 29 LAST DAY TO FILE ASSESSMENT DISTRICT BOUNDARY MAP. Last day to file proposed Assessment District Map with County Recorder (Section 3111). Filed on , 1995, Recorded in Book , Page of Maps of Assessment and Community Facilities Districts as Instruments No. March 30 Property owner waiver of 30 day assessment payment period received. April 13 City Council's Public Hearing on Protests to Improvement and 1931 Act Report. If owners of more than one-half (1/2) of the area lands to be assessed protest, proceedings must be abandoned for one (1) year, unless protests are overruled by four -fifths vote of the City Council (Section 10311). April 13 City Council adopts Resolutions: Confirming Assessment and Ordering Improvements (Section 10312). - Determining Unpaid Assessments. Authorizing Negotiation of a Bond Purchase Contract and Approving Preliminary Official Statement. Authorizing Sale of Bonds. Approving Sale of Bonds to BJS250659 M ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION April 14 Superintendent of Streets files list of paid and unpaid assessments with City Treasurer (Section 6420). Bonds dated May 1, 1995. April 14 City Clerk transmits diagram and assessment to the Superintendent of Streets (Section 10401). Superintendent of Streets records a certified copy of diagram and assessment in his office (Section 10401). April 17 City Clerk/Assessment Engineer records Notice of Assessment in the office of the County Recorder (Sections 10402.5 and 3114). April 18 City Clerk records certified copy of assessment diagram in the office of the County Recorder (Sections 10402.5 and 3114). City Clerk mails Notice of Assessment to property owners (Sections 10404 and 5070). April 19 Clerk publishes Notice of Recording Assessment (Section 10404). [First publication.] Second publication on April 26, 1995. April 26 Clerk publishes Notice of Recording Assessment. [Second publication.] City Clerk completes Declarations of recording Assessment and diagram with Superintendent of Streets and Declarations of Recording and Mailing Assessment Diagram and Notice of Assessment. BJS250659 -5 En cm ASSESSMENT DISTRICT NO. 94-3 RESOLUTION DATE NUMBER ACTION 199 May 1 Bonds sold and delivered and project funded. Last day legal action contesting validity of assessments may be commenced (Section 10400). -6- BJS250659 M 03 BEST. BEST & KRIEGER A C�Q" LAWYERS 400 MISSION SQUARE PALM SPRINGS 3750 UNIVERSITY AVENUE (610) 325-7264 POST OFFICE 80X 1026 RIVERSIDE. CALIFORNIA 92502-1028 RANCHO MIRAGE TELEPHONE (000) 686-1450 (610) 568-2611 TELECOPIER (008) 686-3063 January 27, 1995 VIA UPS NEXT DAY AIR Sheila R. Gilligan City Clerk City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260-2578 Re: Assessment District No. 94-3 (Merano) Dear Sheila: ONTARIO (000) 080-0584 SAN DIEGO (610) 585-1333 Enclosed are the original Petition for Formation and Agreement Between the City of Palm Desert and Robert L. Mayer Trust Regarding Formation of Assessment District No. 94-3 (Merano), which was apparently returned directly to our office by the landowner. Although the agreement was approved by the Council on November 10, 1994, it appears that it has not been executed by the City. Please have the agreement executed by the City at your earliest convenience. Upon execution, we would appreciate receiving a certified copy for our transcript. Also enclosed is our bond counsel proposal letter. You will recall that we were retained as bond counsel on November 10, 1994. Please have an authorized officer of the City execute this letter proposal and return it to us for our file. JEB:bjs Enclosure cc: Ray Diaz Your assistance is appreciated. Yours sincerely, 6vAA ohn E. Brown of Best, Best & Krieger BJS251090 cm M PALM SPRINGS (619) 325-7264 RANCHO MIRAGE (619) 568-2611 Honorable City Council City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260 BEST, BEST & KRIEGER A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS LAWYERS 400 MISSION SOUARE 3750 UNIVERSITY AVENUE POST OFFICE BOX 1028 RIVERSIDE, CALIFORNIA 92502 TELEPHONE (909) 686-1450 TELECOPIER (909) 686-3083 January 27, 1995 Re: Proposal Regarding Performance of Legal Services in Connection with Assessment District Proceedings and Compensation Therefor - Assessment District No. 94-3 (Merano) Ladies and Gentlemen: ONTARIO (909) 989-8584 For purposes of providing legal services to the City of Palm Desert (the "City") with respect to the formation of an assessment district for the acquisition and construction of certain public works improvements and proceedings necessary thereto including the issuance and sale of bonds, the firm of Best, Best & Krieger proposes to perform the services hereinafter described on the basis hereinafter specified: Services We will advise the City in regard to the proceedings for the organization and establishment of an assessment district under proceedings conducted pursuant to the Municipal Improvement Act of 1913, being Division 12 of the Streets and Highways Code, and the issuance of bonds pursuant to the Improvement Bond Act of 1915, being Division 10 of that Code, including the preparation of the report, the levy of the assessment, and the issuance and sale of bonds, and will prepare all ordinances, resolutions, notices, bond forms, and other documents required in the proceedings. We will also examine all proceedings step by step as taken, and when the bonds are sold will issue our opinion or opinions upon the validity thereof. We will also attend any meeting in which substantive action in connection with the proceedings is to be taken. BJS251105 *400 LAW OFFICES OF BEST, BEST & KRIEGER Honorable City Council City of Palm Desert January 27, 1995 Page 2 The services to be rendered will not include any services in connection with the acquisition of property by contract, or in connection with validation or condemnation suits, if such suits be filed to validate any proceedings hereunder or to acquire any property or easement proposed to be taken. The services to which the fees under the following schedule apply do not include any services or opinions in connection with the letting of cash contracts, any services or opinions in connection with any proceedings subsequent to the levy of the initial assessment and the sale of bonds resulting therefrom, or any services in connection with any litigation. Compensation: For preparation and supervision of proceedings, examination of each step as taken, and the issuance or our approving opinion on bonds issued on the initial assessment, we will be compensated in an amount determined in accordance with the following schedule, the amount to which the following percentages are applied cumulatively being the amount of bonds authorized and sold or $35,000, whichever is greater: Amount Fee Under $1,000,000 1% plus Over $1,000,000 and Under $5,000,000 1/2 of 1% plus Over $5,000,000 and Under $30,000,000 1/4 of 1% plus Over $30,000,000 1/8 of 1% The fee will be payable upon the issuance of bonds, or, if all assessments are paid in cash, upon termination of the cash collection period. If other services are requested by the City which are not within the scope of those outlined above, they will be performed on a time basis at the hourly billing rates of the attorneys involved. In the event the bonds are not issued, we will be paid a reasonable fee, to be mutually agreed upon, based upon the applicable hourly rates of the attorneys in the firm undertaking the work prior to abandonment. In addition to the above fees, we will be reimbursed by the City for any out-of- pocket expenses incurred by us in the course of our employment, such as long distance telephone calls, telegrams, facsimile telecopy transmissions, messenger and courier services, travel at the request of the appropriate City officials, duplicating, computer time and the BJS251105 LAW OFFICES OF BEST, BEST & KRIEGER Honorable City Council City of Palm Desert January 27, 1995 Page 3 like. It is understood that we are to order the printing of the bonds for the account of the City. The invoice for this printing will come directly to the City and will be paid from the proceeds from the sale of the bonds. Respectfully submitted, BEST, BEST & KRIEGER TERMS OF EMPLOYMENT APPROVED THIS day of , 1995. Authorized Officer of the City of Palm Desert John E. Brown BJS251105 PETITION FOR THE FORMATION OF PROPOSED ASSESSMENT DISTRICT NO. 94-3 (MERANO) AND THE SALE OF BONDS FOR THE ACQUISITION OF CERTAIN PUBLIC IMPROVEMENTS, AND WAIVER OF PROCEEDINGS PURSUANT TO SPECIAL ASSESSMENT INVESTIGATION, LIMITATION AND MAJORITY PROTEST ACT OF 1931 1. The undersigned ("Owner") represents to the City Council of the City of Palm Desert (the "City") that he is the owner of the real property described in Exhibit "A" attached hereto. 2. Owner petitions the City Council of the City to initiate and complete all necessary proceedings pursuant to Division 12 of the Street and Highways Code of the State of California, the Municipal Improvement Act of 1913, and pursuant to Division 10 of that Code, the Improvement Bond Act of 1915, for the formation of an assessment district and the sale of bonds for the acquisition and financing the acquisition of the public improvements described in Exhibit "B" attached hereto, and the payment of expenses incidental to the formation of the assessment district and the sale of the bonds. 3. Owner certifies that the proposed assessment district that will be subject to assessment for the acquisition of such improvements is that real property in the City of Palm Desert, County of Riverside, State of California, bounded and generally described on the map attached hereto as Exhibit "C". 4. Owner agrees to deposit funds with the District and make such further periodic deposits as may be necessary to pay any incidental expenses relating to the proceedings for the formation of the assessment district, and the issuance of bonds, and further agrees to dedicate to the appropriate public agencies all sites, rights -of -way or easements which are determined necessary for the operation and maintenance of the public improvements upon, across and in the property of Owner as described on Exhibit "A' attached hereto and shown on the maps attached hereto as Exhibit "C". 5. Owner expressly waives the investigation proceedings, hearing proceedings and all limitations provided for in the Special Assessment Investigation, JEB238072 M en Limitation and Majority Protest Act of 1931, Division 4 of the Streets and Highways Code of the State of California. DATED at Palm Desert, California, this loth day of November, 1994. By; Robert L. Mayer, T ee Robert L. Mayer Trust JEB238072 -2- en m EXHIBIT "A" DESCRIPTION OF OWNER'S PROPERTY [TO BE FURNISHED BY ASSESSMENT ENGINEER] JEB238072 -3- m m EXHIBIT 'B" DESCRIPT ION OF IMPROVEMENTS TO PROPERTY JEB238072 -4- In En ENGINEER'S REPORT ASSESSMENT DISTRICT NO. 94-3 (MERANO) City of Palm Desert PART V - DESCRIPTION OF WORK AND CERTIFICATES DESCRIPTION OF WORK The acquired improvements included within Assessment District No. 94-3 are associated with the "Merano" development located at the Northeast corner of Country Club Drive and Monterey Avenue within the incorporated city limits of the City of Palm Desert. The improvements consist of a combination of infrastructure facilities pertinent to the development of the subject property. The project received tentative tract map approval from the City Council and is commonly referred to as Tract No. 27882. Briefly, the construction items include the widening of Monterey Avenue and Country Club Drive along with providing public facilities including sewer, water, storm drainage, utilities and minor grading to each of the blocks within the Merano Development. The extent of the facilities included in the assessment district are shown on Exhibit D within this report. The cost for the design and construction for those improvements which are eligible to be assessed have been included in the Assessment District. The following is a general listing of the improvements included in Assessment District No. 94-3 (see cost estimate for details as to each street area): Tract No. 27882-1 (Recorded Lots) 1) Country Club Drive roadway improvements including public utilities 2) Monterey Avenue roadway improvements including public utilities 3) Via Scena - roadway, sewer, water & storm drainage improvements 4) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage. 5) Minor grading for public utilities Tract No. 27882-1 (Unrecorded Lots) 1) Public Utilities (constructed in private streets, within public easements) including mainline & laterals for sewer, water & storm drainage. 2) Minor grading for public utilities Tract No. 27882 (Unrecorded Lot) 1) Country Club Drive roadway improvements 2) Monterey Avenue roadway improvements mm cm m 10.14 My I JEB238072 _5 Im AGREEMENT BETWEEN THE CITY OF PALM DESERT AND THE ROBERT L. MAYER TRUST REGARDING FORMATION OF PROPOSED ASSESSMENT DISTRICT NO. 94-3 (MERANO) THIS AGREEMENT is entered into as of November 10, 1994, by and between the CITY OF PALM DESERT (the "City") and the ROBERT L. MAYER TRUST ("Developer"). RECITALS A. Developer is the owner of the land where the residential community known as "Merano" is being developed, which land (the 'Property") is located within the City. The Property is shown in Exhibit "A" attached hereto. B. Developer has requested that the City initiate and conduct proceedings for the formation of an assessment district to finance the acquisition of public facilities within and for the proposed assessment district through the issuance and sale of bonds in the approximate principal amount of $2,500,000. The public facilities, the acquisition and construction of which are proposed to be financed with the proceeds of the sale of said bonds, consist generally of water and wastewater system facilities which will be owned and operated by Coachella Valley Water District and certain street and streetscape improvements which is adjacent to the Property, which streets and streetscape is to be owned and maintained by the City. It is expected that such improvements will be constructed and acquired pursuant to agreements to be entered into between the City and such agencies. C. The purpose of this agreement is to provide for the advance by Developer of funds to be utilized by the City to pay costs in connection with the proceedings for the formation of the proposed assessment district. IT IS AGREED AS FOLLOWS: 1. Deposit and Payment of Formation Costs. Developer shall deposit with the City the amount of $20,000, which shall be applied by the City to the payment of costs incurred by the City in connection with the proceedings for the formation of the proposed assessment district, including fees and costs of the assessment engineer and the appraiser and any other consultants retained by the City in connection with such proceedings. The City shall pay the invoices of the assessment engineer and appraiser and other consultants directly from the amount of Developer's said deposit as such invoices are received. It is anticipated that the fees and costs of the assessment engineer, appraiser and other consultants will exceed $20,000, and that it will be necessary that Developer deposit additional amounts with the City in order to pay the full amount of the fees and costs of such consultants. At such time as the City determines that the amount of Developer's deposit will be exceeded, the City shall notify Developer in writing of that determination and of the estimated additional amount which Developer must deposit with the City in order for the City to pay the entire amount of the fees and costs of such consultants. Upon receipt of such notification, Developer shall deposit the additional amount specified therein with the City within five (5) business days of the date thereof. If Developer fails to deposit any such amount with the City, the City may suspend or terminate the services of the assessment engineer and appraiser and any such other consultants and suspend or terminate the proceedings for the formation of the proposed assessment district. The sole source for the payment of the invoices of such consultants shall be the amounts deposited by Developer with the City pursuant to this agreement, and the City's responsibility to such consultants with respect to the payment of their invoices shall be �. limited to the amounts so deposited by Developer. All amounts deposited by Developer with the City pursuant to this agreement shall be reimbursed to Developer from the proceeds of the sale of the bonds which are to be issued and sold for the proposed assessment district, if such bonds are issued and sold. 2. Reimbursement of City Administrative Expenses. Developer shall deposit with the City the amount of $50,000 which shall be applied by the City to offset its administrative expenses and to reimburse the City's expenses for the time and involvement of its employees in the supervision and administration of the proceedings with respect to the formation of the proposed assessment district and the issuance and sale of such bonds and with respect to the acquisition of the public improvements which are to be financed with the proceeds of the sale of such bonds. Developer and the City agree that there shall be included in the amount of the assessment to be levied on the land in the proposed assessment district and in the aggregate principal amount of the bonds to be issued and sold therefor the amount of $50,000, and that the Developer shall be paid said amount from the proceeds of the sale of such bonds on the date of their delivery to the initial purchaser thereof. In the event bonds are not issued and sold, for any reason whatsoever, Developer shall not be entitled to reimbursement of such amount and City may keep and retain the deposit. 3. Termination. Either party may terminate this agreement by giving the other party 10 days prior written notice, and in the case of Developer, by also tendering to the City an amount of money sufficient to pay all costs incurred to the date of termination under the terms of this agreement, and in the case of the City, by also tendering to Developer any remaining balance of the amounts deposited by Developer pursuant to paragraph 1 above after payment of all costs incurred to the date of termination. JEB238840 -2- 05 IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above written. ATTEST: City Clerk CITY OF PALM DESERT By: Mayor "Developer" Robert L. Mayir, Tru§iee Robert L. Mayer Trust JEB238840 -3- RESOLUTION NO. 94-114 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPOINTING AND DESIGNATING ASSESSMENT ENGINEER, BOND COUNSEL, APPRAISER AND FINANCIAL ADVISOR WITH RESPECT TO THE FORMATION OF AND THE ISSUANCE AND SALE OF BONDS FOR PROPOSED ASSESSMENT DISTRICT NO. 94-3 (MERANO), AND APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT REGARDING FORMATION OF SAID ASSESSMENT DISTRICT WHEREAS, the City of Palm Desert (the "City") has received a petition from Robert L Mayer, Trustee of the Robert L Mayer Trust, the owner and developer of the residential development known as "Merano" located within the City requesting that the City Council of the City (the "City Council") initiate and conduct proceedings for the formation of an assessment district pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, and the issuance and sale of bonds for the proposed assessment district pursuant to the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code, for the purpose of financing the acquisition of certain public improvements within and for the benefit of said residential development and the proposed assessment district; and WHEREAS, the City Council has determined that it will initiate and conduct such proceedings as requested by the Robert L Mayer Trust; and WHEREAS, it is necessary that the City Council designate and appoint an assessment engineer to prepare a report pursuant to Sections 10203 and 10204 of the Streets and Highways Code, bond counsel to prepare and supervise the proceedings with respect to the formation of the proposed assessment district and the issuance and sale of bonds to finance the acquisition of the proposed public improvements, an appraiser to make an appraisal of the market value of propertv within the proposed assessment district. and an underwriter to underwrite and market the bonds to be issued for the proposed assessment district; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: 1. The City Council hereby appoints and retains KWC Engineers, Inc. as Assessment Engineer to prepare the report containing, among other matters, the assessment diagram and assessment roll for the proposed assessment district, pursuant to the agreement proposed by said firm which has been presented to the City Council at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said agreement on behalf of the City. 2. The City Council hereby appoints and retains Best, Best & Krieger as bond counsel for purposes of the proceedings for the formation of the proposed assessment M RESOLUTION NO. 94-114 district and the issuance and sale of the bonds therefor pursuant to the letter proposal of said firm submitted to the City Council at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said proposed letter on behalf of the City. 3. The City Council hereby appoints and retains MacKenzie & Associates as appraiser to conduct an appraisal and render a report with respect to the value of property within the proposed assessment district pursuant to the letter proposal of such firm submitted to the City Council at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said proposed letter on behalf of the City. 4. The City Council hereby appoints Curt deCrinis & Co. as financial advisor for Assessment District No. 94-3 (Merano). The terms and conditions upon which such firm will provide financial advisory services for the proposed assessment district shall be set forth in an agreement to be entered into between such firm and the City at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said agreement on behalf of the City. 5. The City Council hereby approves the agreement to be entered into by and between the City and the Robert L Mayer Trust, entitled "Agreement Between the City of Palm Desert and the Robert L Mayer Trust Regarding Formation of Assessment District," and the Mayor and the City Clerk are authorized to sign and attest said agreement on behalf of the City. PASSED, APPROVED AND ADOPTED this loth day of November, 1994, by the following vote, to wit: AYES: BENSON, CRITES, KELLY, SNYDER, WILSON NOES: NONE ABSENT: NONE BJS238853 -2- U2 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEMORANDUM TO: City Manager and City Council FROM: Assistant City Manager/Director of Community Development DATE: November 10, 1994 SUBJECT: Proposed Assessment District for Merano (Robert L. Mayer Trust) --Assessment District 94-3 RECOMMENDATION: City council approve Resolution No. , appointing and designating assessment engineer, bond counsel, appraiser and financial advisor with respect to the formation of and the issuance and sale of bonds for the proposed Assessment District No. 94-3 (Merano) and authorizing negotiation of agreement regarding formation of said assessment district with Robert L. Mayer Trust. DISCUSSION: The city received a petition from Robert L. Mayer Trust, the owner and developer of the residential development known as "Merano" generally located at the northeast corner of Monterey Avenue and Country Club Drive. The purpose of the petition is to assist in the establishment of an assessment district. The district will issue 1915 Act Assessment Bonds. As with the other districts council at this time is authorizing staff to evaluate the project and accept a deposit to retain certain team members. As was the case with the Bighorn district Best, Best & Krieger shall act as bond counsel and the other members of the team are identified in the resolution. Upon adoption of the resolution of intention the applicant will deposit $50,000 with the city per our requirements. Upon the sale of the bonds the developer may recover these funds from the bond proceeds. The city retains the $50,000 whether the bonds are sold or not. RAMON A. DIAZ ASSISTANT CITY MANAGER, DIRECTOR OF COMMUNITY DEVELOPMENT/PLANNING /tm CM 0 CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEMORANDUM TO: City Manager and City Council FROM: Assistant City Manager/Director of Community Development DATE: October 27, 1994 SUBJECT: Assessment District No. 94-2 The purpose of this hearing is to accept public testimony regarding the proposed assessment for Assessment District No. 94-2. Council will recall this assessment district is for Tract 23940, Sunterrace. The development is located on the northwest corner of Hovley Lane and Eldorado. RAMON A. DIAZ ASSISTANT CITY MANAGER, DIRECTOR OF COMMUNITY DEVELOPMENT/PLANNING /tm v 1. To be considered under: Consent Calendar Resolutions --� Ordinances _ New Business Old Business Informational Items Public Hearings ' Other 2. Item Tide: (Please provide the wording that should appcar as the item's title on the agenda). Prnnneorl Ace—., 4. nz-4—:_.._ r_"_ -1 %... H _ _ -- Assessment District No. 94-3 3. Financial: (Complete if applicable) - a of°�s krr (a) Acc ountMroject # (c) In the Current Budget? (b) Amount � (c) Appropriation Required? Approved by Director of Finance: �� i4 i 4. submitted by: Ramon A. Diaz <, r .9 .%.. cm M CITY OF PALM DESERT DEPARTMENT OF COMMUNITY DEVELOPMENT MEMORANDUM TO: City Manager and City Council FROM: Assistant City Manager/Director of Community Development DATE: November 10, 1994 SUBJECT: Proposed Assessment District for Merano (Robert L. Mayer Trust) --Assessment District 94-3 RECOMMENDATION: City council approve Resolution No. , appointing and designating assessment engineer, bond counsel, appraiser and financial advisor with respect to the formation of and the issuance and sale of bonds for the proposed Assessment District No. 94-3 (Merano) and authorizing negotiation of agreement regarding formation of said assessment district with Robert L. Mayer Trust. DISCUSSION: The city received a petition from Robert L. Mayer Trust, the owner and developer of the residential development known as "Merano" generally located at the northeast corner of Monterey Avenue and Country Club Drive. The purpose of the petition is to assist in the establishment of an assessment district. The district will issue 1915 Act Assessment Bonds. As with the other districts council at this time is authorizing staff to evaluate the project and accept a deposit to retain certain team members. As was the case with the Bighorn district Best, Best & Krieger shall act as bond counsel and the other members of the team are identified in the resolution. Upon adoption of the resolution of intention the applicant will deposit $50,000 with the city per our requirements. Upon the sale of the bonds the developer may recover these funds from the bond proceeds. The city retains the $50,000 whether the bonds are sold or not. RAMON A. DIAZ- \ AfrSISTANT CITY MANAGE DIRECTOR OF COMMUNITY /tm NT/PLANNING Lon CM BEST, BEST & KRIEGER A Rr R8~ w LUCw PRO —OS —AL CowrowwrwR� LAWYERS 400 MISSION SOUARE 3750 UNIVERSITY AVENUE PALM SPRINGS POST OFFICE BOX 1026 (619) 325-7264 RIVERSIDE. CALIFORNIA 92502-1028 RANCHO MIRAGE TELEPHONE (900) 686-1450 (619) 508-2611 TELECOPIER (909) 686-3083 October 28, 1994 VIA UPS NEXT DAY AIR Sheila R. Gilligan City Clerk City of Palm Desert 73-510 Fred Waring Drive Palm Desert, California 92260 Re: Assessment District No. 94-3 (Merano) Dear Sheila: ONTARIO (909) 969-6584 �.� .,:•, SAN DIEGO (619) 505-1333 Enclosed for consideration by the City Council at its meeting on November 10, 1994 is a resolution appointing assessment engineer, bond counsel, etc. for the above - referenced assessment district. The formation agreement and petition has been forwarded to the owner for execution under separate cover. The executed originals will be forwarded to you immediately upon receipt. Please call if you have any questions. JEB:bjs Enclosures cc: Ramon Diaz Yours sincerely, ,bv`'` on E. Brown of Best, Best & Krieger BJS238981 cm En RESOLUTION NO. RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, APPOINTING AND DESIGNATING ASSESSMENT ENGINEER, BOND COUNSEL, APPRAISER AND FINANCIAL ADVISOR WITH RESPECT TO THE FORMATION OF AND THE ISSUANCE AND SALE OF BONDS FOR PROPOSED ASSESSMENT DISTRICT NO. 94-3 (MERANO), AND APPROVING AND AUTHORIZING EXECUTION OF AGREEMENT REGARDING FORMATION OF SAID ASSESSMENT DISTRICT WHEREAS, the City of Palm Desert (the "City") has received a petition from Robert L. Mayer, Trustee of the Robert L. Mayer Trust, the owner and developer of the residential development known as "Merano" located within the City requesting that the City Council of the City (the "City Council") initiate and conduct proceedings for the formation of an assessment district pursuant to the Municipal Improvement Act of 1913, Division 12 of the Streets and Highways Code, and the issuance and sale of bonds for the proposed - assessment district pursuant to the Improvement Bond Act of 1915, Division 10 of the Streets and Highways Code, for the purpose of financing the acquisition of certain public improvements within and for the benefit of said residential development and the proposed assessment district; and WHEREAS, the City Council has determined that it will initiate and conduct such proceedings as requested by the Robert L. Mayer Trust; and WHEREAS, it is necessary that the City Council designate and appoint an assessment engineer to prepare a report pursuant to Sections 10203 and 10204 of the Streets and Highways Code, bond counsel to prepare and supervise the proceedings with respect to the formation of the proposed assessment district and the issuance and sale of bonds to finance the acquisition of the proposed public improvements, an appraiser to make an appraisal of the market value of property within the proposed assessment district, and an underwriter to underwrite and market the bonds to be issued for the proposed assessment district; NOW, THEREFORE, the City Council of the City of Palm Desert, California, DOES HEREBY RESOLVE as follows: 1. The City Council hereby appoints and retains KWC Engineers, Inc. as Assessment Engineer to prepare the report containing, among other matters, the assessment diagram and assessment roll for the proposed assessment district, pursuant to the agreement proposed by said firm which has been presented to the City Council at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said agreement on behalf of the City. 2. The City Council hereby appoints and retains Best, Best & Krieger as bond counsel for purposes of the proceedings for the formation of the proposed assessment district and the issuance and sale of the bonds therefor pursuant to the letter proposal of said firm submitted to the City Council at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said proposed letter on behalf of the City. 3. The City Council hereby appoints and retains MacKenzie & Associates as appraiser to conduct an appraisal and render a report with respect to the value of property within the proposed assessment district pursuant to the letter proposal of such firm submitted to the City Council at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said proposed letter on behalf of the City. 4. The City Council hereby appoints Curt deCrinis & Co. as financial advisor for Assessment District No. 94-3 (Merano). The terms and conditions upon which such firm will provide financial advisory services for the proposed assessment district shall be set forth in an agreement to be entered into between such firm and the City at the meeting at which this resolution is adopted, and the Assistant City Manager is authorized to sign said agreement on behalf of the City. 5. The City Council hereby approves the agreement to be entered into by and - between the City and the Robert L Mayer Trust, entitled "Agreement Between the City of Palm Desert and the Robert L Mayer Trust Regarding Formation of Assessment District," and the Mayor and the City Clerk are authorized to sign and attest said agreement on behalf of the City. PASSED, APPROVED AND ADOPTED this loth day of November, 1994, by the following vote, to wit: AYES: NOES: ABSENT: ABSTAIN: S. Roy Wilson, Mayor ATTEST: Sheila R. Gilligan, City Clerk City of Palm Desert BJS238853 -2 BEST, BEST & KRIEGER A PARTN2ROW OWLUDINB PROVESS OVAL CORPORATIOM* LAWYERS 400 MISSION SOUARE ARTHUR L. LITTLEWORTH• WYNNE IL FURTH JANICC L. WEIS SONIA RUBIO CARVALHO JOHN O. PINKNEY 3750 UNIVERSITY AVENUE GLEN C. ST[PHtNS' WILLIAM R. OXWOLFE' GENE TANAKA BASIL T. CNAPMAN KIRK W. SMITH JASON 0. DASAREINER DEARING O. ENGLISH POST OFFICE BOX 1028 BARTON C. GAUT• TIMOTHY M. CONNOR KYLE A. SNOW THEODORE J. GRISWOLD JULIANN ANDERSON RIVERSIDE. CALIFORNIA 02502.1028 PAUL T. SELZCR• VICTOR L. WOLF DANIEL C. OLIVIER MARK A. [ASTER DIANC L. FINLEY JEFfR[Y R. THORP[ TELEPHONE (oOwl 688-1450 DALLAS HOLMES• CHRI•JTOPHER L. CARPENTER' HOWARD S. GOLDS MICHELLE OUELLETTE DAVID P. PHIPPEN. SR. LORA H. WILSON PATRICIA BYARS CISNEROS TELECOPIERS RICHARD T. ANOCRSON• JOHN D. WAHLIN• ST[PNEN P. DEITSCH MARC E. EMPEY SUSAN C. MAUS$ JACOUELINE E. BAILEY MARK D. DECKER (e0e] 886-3083 E62-4a12 MICHAEL O. HARRIS' JOHN R. ROTTSCHAEFER MARTIN A. MUELLER BERNIE L. WILLIAMSON KEVIN K. RANDOLPH 0. ANTHONY RODRIGUEZ W. CURT CALY' JOHN C. BROWN- J. MICHAEL SUMMEROUR VICTORIA N. KING JAMS B. GILPIN MARSHALL l RUDOLPH SUSAN E. DUMOUCHEL JENNIFCR OLSON DOLAN OF COUNSEL MICHAEL T. RIDDELL• MEREDITH A. JURY' SCOTT C. SMITH KIM A. BYRENB ALEXANDRA /. LOPEZ JULIE ROBERTS IURGERSON JAMCB B. CORISOM MICHAEL GRANT- JACK B. CLARKE. JR. CYNTHIA M. GERMANO C. MICHAEL COWETT FRANCIS J. BAUM• BRIAN M. LEWIS MARY E. OK.STRAP BRUC[ W. BEACH ANNE T. THOMAS• BRADLEY E. NEUFELD GLENN P. SABINE ARLENE PRATER 0. MARTIN NETHERY' SHARYL WALKER DIANE C. SLASOEL JOHN C. TOBIN GEORGE M. REYES PETER M. aARMACK DOROTHY L ANDERSON WILLIAM W. FLOYD. JR. MATT H. MORRIS O. HENRY WELLCS OREOORY L. MARDK[ JtFFR[Y V. OUNN JAMES R. HARPER OFFICES 111 KENDALL H. MACV[Y STEVEN C. D2BAUN ERIC L. GARNER DINA O. HARRIS BARBARA R. BARON PALM SPRINGS Case) 326.7264 CLARK H. ALSOP DAVID J. ERWIN' DENNIS M. COTA RICHARD T. [GOER RANCHO MIRAOC (e1e) 589-2611 MICHAEL J. ANDELSON' PATRICK M.W.F. PEARCE JEANNETTE A. PETERSON PATRICK O. DOLAN DEAN R. OERLETH RAYMOND BEST (1e00-1067) ONTARIO (wool oee-6564 DOUOLAS B. PHILLIPS• ANTGREONIA PHOSSON BEST ((1693-19811e7S) BAN DI[00 (ale) Bee-1333 Kp ROBCRT W. HAROR[AV[B [MILY HCMPN1lL EUGENE • A PROFESSIONAL CORPORATION October 28, 1994 Robert L. Mayer Trustee, Robert L. Mayer Trust P.O. Box 8680 660 Newport Center Drive #1050 Newport Beach, CA 92656-8680 Re: Proposed City of Palm Desert Assessment District No. 94-3 (Merano) Dear Mr. Mayer: At the request of Ken Crawford of KWC Engineers, Inc., I am enclosing a suggested draft petition to be submitted to the City Council of the City of Palm Desert in connection with the formation of the above -referenced assessment district. I recently met with Mr. Crawford and Ed Sloman of KWC Engineers, Inc. to discuss the preliminary steps necessary to successfully complete the formation of proposed Assessment District No. 94-3 (Merano). Enclosed for your review and signature, also please find a suggested draft of an agreement between yourself and the City of Palm Desert with respect to certain required good faith deposits necessary to undertake the formation of Assessment District No. 94-3 (Merano). I have taken the liberty of reviewing these documents with Ken Crawford and, hopefully, he has had an opportunity to brief you at this point in time. Our current schedule calls for the City Council of the City of Palm Desert to consider this matter at its meeting of Thursday, November 10, 1994. Ken Crawford is JEB238929 LAW OFFICES OF BEST, BEST & KRIE43 ,; Robert L. Mayer Trustee, Robert L. Mayer Trust October 28, 1994 Page 2 preparing the exhibits to be attached to the Petition, including a metes and bounds description of your property (Exhibit "A!'), a brief description of the improvements to be financed (Exhibit "B"), and a map showing your property (Exhibit "C"). If the enclosed petition and agreement meet with your approval, please execute them where noted and return them to me just as soon as possible, but in no event no later than November 4, 1994. This is necessary to meet the City's agenda deadlines. Please keep the drafts marked copy for your file. If you have any questions whatsoever about any of these documents or their terms and conditions, please let me know. Finally, it will be necessary for you to make arrangements for the appropriate good faith deposits with the City of Palm Desert. For that purpose, I would suggest that _ either you, or your authorized representative contact Ray Diaz, the City's Director of Community Development and Planning, directly at (619) 346-0611. If I can be of any assistance in that regard, please let me know. Enclosures cc: Interested Parties Yours ' ly, o n E. Brown of Best, Best & Krieger JEB238929 LAW OFFICES OF BEST, BEST & KRIEr R I ISSUER CITY OF PALM DESERT ASSESSMENT DISTRICT NO. 94-3 (MERANO) INTERESTED PARTIES LIST October 28, 1994 City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 FAX: (619) 340-0574 Bruce Altman, City Manager (619) 346-0611 Ramon A. Diaz, Director of Community Development and Planning (619) 346-0611 Sheila R. Gilligan, City Clerk (619) 346-0611 • r �:�AL4 - Best, Best & Krieger 39700 Bob Hope Drive, Suite 312 P. O. Box 1555 Rancho Mirage, CA 92270 FAX: (619) 340-6698 (619) 341-7039 David J. Erwin, Esq. (619) 568-2611 BOND COUNSEL Best, Best & Krieger 400 Mission Square 3750 University Avenue Riverside, CA 92502 FAX: (909) 686-3083 (909) 682-4612 John E. Brown, Esq. (909) 686-1450 Barbara Skinner, Legal Assistant (909) 686-1450 ASSESSMENT ENGINEER KWC Engineers, Inc. 1269 W. Pomona Rd. Ste, 104 Corona, CA 91720 FAX: (909) 272-3308 Ken W. Crawford, President (909) 734-2130 Edward G. Sloman, Vice President (909) 734-2130 72500.01 BJS238068 LAW OFFICES OF (CONTINUATION) BEST, BEST & KR1Ec1 City of Palm Desert AssessmeriTDistrict No. 94-3 (Merano) ASSESSMENT ENGINEER (continued) Larry Berington FAX: (818) 288-3134 8372 Rush Street Rosemead, CA 91770 Larry Berington (818) 288-2575 FINANCIAL ADVISOR C.M. deCrinis & Co. FAX: (213) 656-9717 5670 Wilshire, Ste. 1777 Los Angeles, CA 90046 Curt M. deCrinis (213) 656-9700 UNDERWRITER [TO BE SELECTED AT TIME OF SALE] Robert L. Mayer, Trustee FAX: (714) 720-1017 Robert L. Mayer Trust P.O. Box 8680 660 Newport Center Drive #1050 Newport Beach, CA 92656-8680 Robert L. Mayer, Trustee (714) 759-8091 W/ -'.DW S.H. Sanberg & Parners, Inc. FAX: (714) 538-4546 2914 E. Katella Orange, CA 92667 Steve Sanberg (714) 639-4097 Bank of America National Trust and Savings Association Corporate Trust 8510 333 South Beaudry Avenue 25th Floor Los Angeles, CA 90017 FAX: (213) 345-2333 Brigitta Long (213) 345-0659 72500.0' BJs238068 (CONTINUATION) City of Palm Desert Assessmen"rDistrict No. 94-3 (Merano) COUNSEL FOR FISCAL AGENT Morrison & Foerster 555 W. Fifth St., Ste. 3500 Los Angeles, CA 90013 Darrell Sackl FAX: (213) 892-5454 (213) 892-5200 72500.0 BJs238068 y PETITION FOR THE FORMATION OF PROPOSED ASSESSMENT DISTRICT NO. 94-3 (MERANO) AND THE SALE OF BONDS FOR THE ACQUISITION OF CERTAIN PUBLIC IMPROVEMENTS, AND WAIVER OF PROCEEDINGS PURSUANT TO SPECIAL ASSESSMENT INVESTIGATION, LIMITATION AND MAJORITY PROTEST ACT OF 1931 1. The undersigned ("Owner") represents to the City Council of the City of Palm Desert (the "City") that he is the owner of the real property described in Exhibit "A" attached hereto. 2. Owner petitions the City Council of the City to initiate and complete all necessary proceedings pursuant to Division 12 of the Street and Highways Code of the State of California, the Municipal Improvement Act of 1913, and pursuant to Division 10 of that Code, the Improvement Bond Act of 1915, for the formation of an assessment - district and the sale of bonds for the acquisition and financing the acquisition of the public improvements described in Exhibit "B" attached hereto, and the payment of expenses incidental to the formation of the assessment district and the sale of the bonds. 3. Owner certifies that the proposed assessment district that will be subject to assessment for the acquisition of such improvements is that real property in the City of Palm Desert, County of Riverside, State of California, bounded and generally described on the map attached hereto as Exhibit "C". 4. Owner agrees to deposit funds with the District and make such further periodic deposits as may be necessary to pay any incidental expenses relating to the proceedings for the formation of the assessment district, and the issuance of bonds, and further agrees to dedicate to the appropriate public agencies all sites, rights -of -way or easements which are determined necessary for the operation and maintenance of the public improvements upon, across and in the property of Owner as described on Exhibit "A" attached hereto and shown on the maps attached hereto as Exhibit "C". 5. Owner expressly waives the investigation proceedings, hearing proceedings and all limitations provided for in the Special Assessment Investigation, JEB238072 CM En Limitation and Majority Protest Act of 1931, Division 4 of the Streets and Highways Code of the State of California. DATED at Palm Desert, California, this loth day of November, 1994. By: Robert L. Mayer, Trustee Robert L. Mayer Trust -2- JEB238072 cm E5 EXHIBIT " A' DESCRIPTION OF OWNER'S PROPERTY -3- JEH238072 cm E5 EXHIBIT "B" DESCRIPTION OF IMPROVEMENTS TO PROPERTY -4- JEB238072 rn EXHIBIT "C" NVAIll :o ) JEB238072 M M AGREEMENT BETWEEN THE CITY OF PALM DESERT AND THE ROBERT L. MAYER TRUST REGARDING FORMATION OF PROPOSED ASSESSMENT DISTRICT NO. 94-3 (MERANO) THIS AGREEMENT is entered into as of November 10, 1994, by and between the CITY OF PALM DESERT (the "City") and the ROBERT L. MAYER TRUST ("Developer"). RECITALS A. Developer is the owner of the land where the residential community known as "Merano" is being developed, which land (the "Property") is located within the City. The Property is shown in Exhibit "A" attached hereto. B. Developer has requested that the City initiate and conduct proceedings for the formation of an assessment district to finance the acquisition of public facilities within and for the proposed assessment district through the issuance and sale of bonds in the approximate principal amount of $2,500,000. The public facilities, the acquisition and construction of which are proposed to be financed with the proceeds of the sale of said bonds, consist generally of water and wastewater system facilities which will be owned and operated by Coachella Valley Water District and certain street and streetscape improvements which is adjacent to the Property, which streets and streetscape is to be owned and maintained by the City. It is expected that such improvements will be constructed and acquired pursuant to agreements to be entered into between the City and such agencies. C. The purpose of this agreement is to provide for the advance by Developer of funds to be utilized by the City to pay costs in connection with the proceedings for the formation of the proposed assessment district. IT IS AGREED AS FOLLOWS: 1. Deposit and Payment of Formation Costs. Developer shall deposit with the City the amount of $20,000, which shall be applied by the City to the payment of costs incurred by the City in connection with the proceedings for the formation of the proposed assessment district, including fees and costs of the assessment engineer and the appraiser and any other consultants retained by the City in connection with such proceedings. The City shall pay the invoices of the assessment engineer and appraiser and other consultants directly from the amount of Developer's said deposit as such invoices are received. It is anticipated that the fees and costs of the assessment engineer, appraiser and other consultants will exceed $20,000, and that it will be necessary that Developer deposit additional amounts with the City in order to pay the full amount of the fees and costs of such consultants. At such time as the City determines that the amount of Developer's deposit will be exceeded, the City shall notify Developer in writing of that determination and of the estimated additional amount which Developer must deposit with the City in order for the City to pay the entire amount of the fees and costs of such consultants. Upon receipt of such notification, Developer shall deposit the additional amount specified therein with the City within five (5) business days of the date thereof. If Developer fails to deposit any such amount with the City, the City may suspend or terminate the services of the assessment engineer and appraiser and any such other consultants and suspend or terminate the proceedings for the formation of the proposed assessment district. The sole source for the payment of the invoices of such consultants shall be the amounts deposited by Developer with the City pursuant to this agreement, and the City's responsibility to such consultants with respect to the payment of their invoices shall be limited to the amounts so deposited by Developer. All amounts deposited by Developer with the City pursuant to this agreement shall be reimbursed to Developer from the proceeds of the sale of the bonds which are to be issued and sold for the proposed assessment district, if such bonds are issued and sold. Developer shall deposit with the City the amount of $50,000 which shall be applied by the City to offset its administrative expenses and to reimburse the City's expenses for the time and involvement of its employees in the supervision and administration of the proceedings with respect to the formation of the proposed assessment district and the issuance and sale of such bonds and with respect to the acquisition of the public improvements which are to be financed with the proceeds of the sale of such bonds. Developer and the City agree that there shall be included in the amount of the assessment to be levied on the land in the proposed assessment district and in the aggregate principal amount of the bonds to be issued and sold therefor the amount of $50,000, and that the Developer shall be paid said amount from the proceeds of the sale of such bonds on the date of their delivery to the initial purchaser thereof. In the event bonds are not issued and sold, for any reason whatsoever, Developer shall not be entitled to reimbursement of such amount and City may keep and retain the deposit. 3. Termination. Either party may terminate this agreement by giving the other party 10 days prior written notice, and in the case of Developer, by also tendering to the City an amount of money sufficient to pay all costs incurred to the date of termination under the terms of this agreement, and in the case of the City, by also tendering to Developer any remaining balance of the amounts deposited by Developer pursuant to paragraph 1 above after payment of all costs incurred to the date of termination. -2- JEB238840 In rn IN WITNESS WHEREOF, the parties have executed this agreement as of the date first above written. ATTEST: City Clerk CITY OF PALM DESERT By: Mayor "Developer" Robert L. Mayer, Trustee Robert L Mayer Trust -3- JEH238840 C. M. de Crinis & Co. A joint venture with Prager, McCarthy & aly LMM ay November 7, 1994 Mr. Ramon A. Diaz Director of Community Development and Planning 73510 Fred Waring Drive Palm Desert, California 92260 Re: 1915 Act Improvement Bonds Assessment District No. 94-3 (Merano) Dear Mr. Diaz: I would like to take this opportunity to introduce myself and my firm to the City of Palm Desert with respect to the above referenced Project. C.M de Crinis & Co. Inc. is being proposed as the financial advisor on this Project along with the v is Project team of John Brown of Best, Best, and Krieger and Ed Sloman of I�WC Engineers. As financial advisor, our services will include assisting in the assessment district formation process including providing detailed estimates of the financing costs, providing detailed appraisal instructions, satisfying conditions of the City's Assessment District Policy Statement, preparation of the Bond Official Statement, and in soliciting and evaluating bond underwriting proposals. It is proposed that an underwriter be selected once the financing is fully documented. This will help assure a competitive price on the Bonds. John Brown and I recently completed two projects virtually identical in size and scope for the Rancho Del Oro Project in Desert Hot Springs. C.M. de Crinis & Co. Inc. has extensive experience as financial advisor on assessment district transactions. Within the past year we have served locally as financial advisor on transactions for the Cities of Rancho Mirage, Desert Hot Springs, and while associated with the firm of Prager, McCarthy & Sealy, served as lead banker on the recently completed Big Horn Assessment District for the City of Palm Desert. Within the past five years my firm has served as financial advisor on over 40 transactions representing over 15 issuers for over $ 250 million. The vast majority to these transactions were underwritten through a competitive sale process. CM En Mr. Ramon Diaz November 7, 1994 Page 2 Given the small size of the proposed transaction our proposed financial advisory fee will be limited to $ 25,000 plus out of pocket expenses and is fully contingent and payable from bond proceeds at closing. I look forward to working with the City and can assure you that the City will receive the highest level of service and expertise. Please let me know should you have any questions. Sincerely, Curt M. de Crinis cc: Distribution cm 05 FINANCIAL SERVICES AGREEMENT This Agreement is made this th day of November 1994, by and between the City of Palm Desert (hereinafter called the "Issuer") and C.M. de Crinis & Co. Inc. (hereinafter called the "Company"). This Agreement relates to proposed assessment district No. 94-3 ( Merano ) Limited Obligation Improvement Bonds. WITNESSETH: WHEREAS, the Issuer is desirous of issuing bonds, notes, or other forms of indebtedness (hereinafter called the "Bonds") to finance certain acquisition costs; and WHEREAS, the Issuer is desirous of obtaining the services of a financial advisor in connection with the approval and sale of the Bonds; and WHEREAS, the Company warrants and represents that it is capable of performing in an able and competent manner as financial advisor for the Issuer; NOW, THEREFORE, in consideration of the premises and of the mutual covenants contained herein, the parties agree as follows: SERVICES TO BE PERFORMED The Company agrees to provide its services as described in EXHIBIT A attached hereto and made part hereof. II. TIME FOR PERFORMANCE This Agreement shall be effective as of the above date, and initially shall be for a period of one year, and thereafter will be extended annually unless written notice is given by either the Company or the Issuer; provided, however, that for any Bonds that have been authorized by the Issuer and upon which the services by the Company are proceeding at the time this Agreement terminates, the Company shall complete the services. III. COMPENSATION Compensation to the Company in connection with the sale of the Bonds and services performed hereunder will be $25,000, and is payable from the sale of the Bonds. All compensation is due and payable upon the closing and delivery of the Bonds. The Issuer will reimburse the Company for all out-of-pocket travel expenses not to exceed $2,500. Issuer will pay all other costs of issuance normally associated with the Bonds. 1 CM IM IV. UNDERWRITING The Issuer hereby agrees to request that the Company assist the Issuer in selecting an underwriter utilizing a competitive sale process. The Company will undertake all steps necessary and customary to facilitate a successful sale of bonds and the receipt of competitive underwriting proposals. V. OTHER CONSIDERATIONS A. Nothing herein contained shall prevent the Company from carrying on its usual business activities, including the performance of other additional services for the Issuer, should it so desire such additional services, nor from performing similar services for other agencies, cities, districts or public entities, provided no actual or apparent conflict of interest arises. Such an occasion shall require full disclosure by the Company to the Issuer. B. The Issuer agrees that its officials, employees and agents will cooperate with and assist representatives of the Company in every reasonable way to the end that the Company may secure all information and data required to perform the services herein provided for, and shall use its best efforts to assure such cooperation and assistance. C. All reports, data, plans, material and documents submitted to fulfill this Agreement are the sole and exclusive property of the Issuer, and as such shall not be shown or used by the Company without the prior consent of the Issuer, except as is necessary in the performance of the services described herein and except such reports and documents which, by presentation at a public meeting, become public property. D. Neither this Agreement nor duties or obligations hereunder shall be assignable by the Company without the written consent of the Issuer. E. All rights and obligations of the Issuer set for the in this Agreement may be transferred or assigned by Issuer to any public entity formed or activated to effect all or any part of the proposed financing, in which event the term "Issuer" shall, where appropriate, be construed to mean such public entity. F. It is the intention of the parties that the Company is an independent contractor and not an employee of the Issuer under this Agreement. G . This Agreement supersedes any and all other agreements either oral or in writing between the parties. No inducements, representations or promises are made that are not embodied in this Agreement. Any modification of this Agreement will only be effective by written execution signed by both parties. H . This Agreement shall be governed by the laws of the State of California. 2 cm en EXHIBIT A FINANCIAL ADVISORY SERVICES TO BE PERFORMED IN CONNECTION WITH THE SALE OF BONDS A. The Company agrees to perform all the duties customarily performed by financial advisory firms in connection with the sale of municipal bonds. B . The Company agrees to proceed with investigations, studies and planning for the purpose of formulating a sound and feasible plan for the financing of the facilities and for obtaining necessary approvals for the Bonds; and upon completion of the aforesaid investigations, studies and planning, and upon obtaining the appropriate approvals, to provide the Issuer with a written plan for the financing of the facilities. Such plan shall include, where appropriate, complete analysis and advice with respect to the following: 1. description of the Bonds to include principal amount, dated date, maturity date, denominations and numbering, registration provisions, maturity schedule, principal and interest payment dates, sinking fund provisions and prior redemption provisions; 2. security for the Bonds and flow of funds; 3. project costs, source of funds and distribution of Bond proceeds; 4. covenants, terms and other conditions necessary to insure marketability of the Bonds; 5. establishment of funds and accounts and provisions for investment of funds; 6. timing of sale of the Bonds, and the necessary actions, documents and other information required in order to create a favorable market for the Bonds. C. The Company agrees to coordinate the Issuer's relations with any other governmental and regulatory agencies that may be connected with the facilities and to supply such agencies with all necessary data and information. D . The Company agrees to attend meetings of the Issuer when requested by the Issuer to do so. E. The Company agrees to assist the Issuer in the preparation and presentation of factual material describing the Bonds. 3 F. The Company agrees to assist the issuer in assuring that the underwriter distributes to prospective bond buyers an official statement, which will form the basis of the Bond offering and which will contain comprehensive information with respect to the Bonds, the Issuer, the facilities, the legal documents and other pertinent information. G. As appropriate, the Company agrees to confer with a bond rating service(s) and to provide that service(s) with complete information regarding the Bonds so that it may properly consider the rating of the Bonds and provide investors with up-to- date and accurate information on the Bonds and the Issuer. The Issuer agrees to participate fully in this process including the prompt provision of materials, data and information as so requested by the service(s). H . As requested, the Company agrees to coordinate the adoption of all resolutions, the publishing of all legal notices and the happening of any other events required for the successful sale and delivery of the Bonds. I. The Company agrees where appropriate, to assist the Issuer in all matters necessary for the validation of the Bonds. J. The Company agrees to give its best advice to the Issuer on market conditions and other factors affecting the successful sale of the Bonds. K. The Company, on a basis of a competitive sale process, agrees to assist the Issuer in selecting a qualified underwriter. The Company will also use its best efforts to assure related underwriting costs are kept to a minimum and assist the Issuer in negotiating the terms, interest rates, and underwriters compensation. L. The Company agrees to advise the Issuer in all matters relating to the investment of funds resulting from the sale of the Bonds under the control of the Issuer. 4 M EM IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the day and year first above written. ATTEST: City of Palm Desert APPROVED AS TO FORM: C.M. de CRINIS & CO. Inc. Date By Curt M. de Crinis President 5 m ff&VENGINEERS, INC. CIVIL ENGINEERS, PLANNERS AND CONSTRUCTION CONSULTANTS TO: ATTN: UPS OVERNIGHT City of Palm Desert J.N. '`P":'475.1.01 73-510 Fred Waring Drive Palm Desert, CA 92260 Ray Diaz Robert L. Mayer Trust FOR YOUR FILES FOR REVIEW AND COMMENT FOR APPROVAL ITEMS SENT: Assessment District Documents REMARKS: DATE: 11 / 0 2 / 9 4 PER YOUR REQUEST FOR YOUR INFO FOR YOUR USE Originals sent to Mary Frazier, Deputy City Clerk. RESPECTFULLY SUBMITTED, %y KWC ENGINEERS, INC. K nneth W. Crawford, Jr. President KWC:kec 1269 W. POMONA ROAD, SUITE 104 • CORONA, CALIFORNIA 91720 • (909) 734-2130 • FAX (909) 272-3308 LEGAL DESCRIPTION Or PROPOSED ASSESSMENT DISTRICT FOR ROBERT L. MAYER TRUST PALM DESERT, CALIFORNIA THE SOUTHWEST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 5, TOWNSHIP 5 SOUTH, RANGE 6 EAST, SAN BERNARDINO BASE AND MERIDIAN, ACCORDING TO THE UNITED STATES GOVERNMENT SURVEY THEREOF; EXCEPTING THEREFROM THE SOUTHERLY 44.00 FEET THEREOF, AS CONVEYED TO THE COUNTY OF RIVERSIDE BY DEEDS, RECORDED APRIL 28, 1958 AS INSTRUMENT NO. 30640 AND APRIL 29, 1958 AS INSTRUMENT NO. 30961 BOTH OF OFFICIAL RECORDS OF RIVERSIDE COUNTY, CALIFORNIA; ALSO EXCEPTING THEREFROM THAT PORTION AS CONVEYED TO THE CITY OF PALM DESERT BY DEED RECORDED AUGUST 27, 1985 AS INSTRUMENT NO. 192104 OF OFFICIAL RECORDS OF RIVERSIDE CALIFORNIA. Subject to: Covenants, conditions, restrictions, reservations, easements and rights -of -way of record, if any. KWC/HAL:LAM J.N. 94.475.1.01 November 1, 1994. J:\ADMIN\WP\LEGALS\94475101.1.AM Kenneth W. Crawford, y"'' RCE 26928 Expires: 3/31 /97 o QROU SS/07 , W-j w Y � No. 26928 -�C Ezp.3-31-97 JfglF C/ V 11. 0f CAS% fir•` m N 89'4J'11 " E 7270.34' 5 h � PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHWEST L14 QUARTER OF SEC.5, T5S,R6E 0 37.42 AC. 0 � o N 44 32 25"' W 32.99' /V 00'22'30" W 11.00' /V 89 37'JO" E 1245. 98' /A/TOV /+i//tom /1/7II'- Cr (� v cii v i i T i W— </O L/1T/ VIT _ _ _ _ DATE.• 11-1-94 PREPARED BY: ENG/NEERS, /NC. CIVIL ENGINEERS, PLANNERS AND CONSTRUCTION CONSULTANIS 12G9 W. POMONA ROAD, SUITE 104 • CORON& CA. 91720 • 909 / 734-2130 SCALE 1 " = 200' EXHIBIT "A" PROP. ASSESSMENT DISTRICT FOR ROBERT L. MAYER TRUST PALM DESERT, CA ✓. N. 94. 475. 1. 0 7 / 475EX-A. DWC