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HomeMy WebLinkAboutCC RES 97-093RESOLUTION NO. 97-93 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AUTHORIZING THE ISSUANCE AND SALE OF REFUNDING BONDS FOR ASSESSMENT DISTRICTS NO. 92-1, 94-1 AND 94-2 WHEREAS, the City of Palm Desert (the "City") issued its Limited Obligation Improvement Bonds, Assessment District No. 94-1 (Bighorn) 1994 Series A (the "Outstanding 94-1 Bonds") for Assessment District No. 94-1 City of Palm Desert, County of Riverside, State of California (the "Assessment District No. 94-1 on August 17, 1994 in the aggregate principal amount of $6,945,000 of which $5,870,000 aggregate principal amount remains outstanding; and WHEREAS, the City of Palm Desert (the "City") issued its Limited Obligation Improvement Bonds, Assessment District No. 94-2 (Sunterrace) 1994 Series A (the "Outstanding 94-2 Bonds") for Assessment District No. 94-2 City of Palm Desert, County of Riverside, State of California (the "Assessment District No. 94-2 on December 1, 1994 in the aggregate principal amount of $1,832,000 of which $1,735,000 aggregate principal amount remains outstanding; and WHEREAS, the City of Palm Desert (the "City") issued its 1915 Act Improvement Bonds, Assessment District No. 92-1 (Sierranova) 1994 Series A (the "Outstanding 94-3 Bonds") for Assessment District No. 92-1 City of Palm Desert, County of Riverside, State of California (the "Assessment District No. 92-1 on May 11, 1995 in the aggregate principal amount of which $1,815,000 aggregate principal amount remains outstanding; and WHEREAS, the City Council (the "City Council") of the City has conducted proceedings pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds, Division 11.5 (commencing with Section 9500) of the Streets and Highways Code of the State of California (the "Refunding Act") and has adopted a resolution approving a report prepared pursuant to Section 9523 of the Streets and Highways Code of the State of California and confirming a reassessment contained therein, and all acts required by the•Refunding Act with respect to the confirmation of such reassessment have been accomplished; and WHEREAS, the City Council has determined that it is in the best interests of the City and the owners of property within the Assessment Districts that the maturity of the Outstanding Bonds be advanced and that the Outstanding Bonds be refunded and redeemed, and that refunding bonds be issued pursuant to the Refunding Act for that purpose; and WHEREAS, in order to accomplish the advancement of the maturity of and the refunding and redemption of the Outstanding Bonds, the City proposes to issue (i) not to exceed $5,870,000 aggregate principal amount of refunding bonds to be designated Limited Obligation Refunding Bonds (Property Secured Only - No Issuer Liability), City of Palm Desert, Assessment District 803200.2 • No. 94-1 Series 1997 (the "94-1 Bonds") to refund the Outstanding 94-1 Bonds; (ii) not to exceed $1,735,000 aggregate principal amount of refunding bonds to be designated Limited Obligation Refunding Bonds (Property Secured Only - No Issuer Liability), City of Palm Desert Assessment District No. 94-2 Series 1997 (the "94-2 Bonds") to refund the Outstanding 94-2 Bonds; and (iii) not to exceed $1,815,000 aggregate principal amount of refunding bonds to be designated Limited Obligation Refunding Bonds (Property Secured Only - No Issuer Liability) City of Palm Desert Assessment District No. 92-1 Series 1997 (the "92-1 Bonds", together with the 94-1 Bonds and the 94-2 Bonds, the "Bonds") ; and WHEREAS, there has been presented to the City Council a form of Bond Purchase Contract whereby the Palm Desert Financing Authority (the "Authority") will purchase the Bonds; and WHEREAS, the Authority will issue its 1997 Revenue Bonds (Assessment Districts Nos. 92-1, 94-1, 94-2 and Community Facilities District No. 91-1) (the "Authority Bonds") for the purpose of providing moneys with which to purchase the Bonds; and WHEREAS, there has also been presented to the City Council forms of three separate Fiscal Agent Agreements providing for the issuance respectively of the 92-1 Bonds, the 94-1 Bonds and the 94-2 Bonds; and WHEREAS, there has also been presented to the City Council forms of three separate Escrow Deposit and Trust Agreement whereby the proceeds of the sale of the 92-1 Bonds, the 94- 1 Bonds and the 94-2 Bonds respectively and moneys on deposit in the reserve funds for the respective Outstanding Bonds and other funds relating to the respective Assessment District and the respective Outstanding Bonds will be deposited in three separate escrow funds for the purpose of accomplishing the refunding and redemption of the respective Outstanding Bonds; and WHEREAS, there has also been presented to the City Council a form of Continuing Disclosure Agreement to be entered into among the Authority, the City and the Trustee for the Authority Bonds for the benefit of the owners of the Bonds and the Authority Bonds and in order to assist the Underwriter in complying with Rule 15C2-12(b)(5) of the Securities and Exchange Commission; and WHEREAS, the City Council has determined that it is in the best interests of the owners of property within the Assessment Districts that the Bonds be sold to the Authority on the terms and conditions hereinafter specified; 803200.2 2 • • NOW, THEREFORE, the City Council of the City, DOES HEREBY RESOLVE. DETERMINE AND ORDER as follows: SECTION 1. Approval of Issuance of. Bonds. The issuance of not to exceed $5,870,000 aggregate principal amount of the 94-1 Bonds in order to refund and redeem the Outstanding 94-1 Bonds is hereby approved. The issuance of not to exceed $1,735,000 aggregate principal amount of the 94-2 Bonds in order to refund and redeem the Outstanding 94-2 Bonds is hereby approved. The issuance of not to exceed $1,815,000 aggregate principal amount of the 92-1 Bonds in order to refund and redeem the Outstanding 92-1 Bonds is hereby approved. SECTION 2. Fiscal Agent Agreement. The three forms of Fiscal Agent Agreement (the "Fiscal Agent Agreement") to be dated as of the date when the Bonds will be delivered and the proceeds from the sale thereof will be received (the "Closing Date") and each to be entered into by and between the City and First Trust of California, N.A., as fiscal agent (the "Fiscal Agent"), presented at the meeting at which this resolution is adopted are hereby approved and the Mayor or the Mayor Pro Tempore of the City and City Clerk are hereby authorized and directed, for and in the name of and on behalf of the City, to execute, acknowledge and deliver the Fiscal Agent Agreements in substantially the forms presented at said meeting with such changes thereto as the officers executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 3. Appointment of Fiscal Agent. First Trust of California, N.A. is hereby appointed as Fiscal Agent pursuant to the Fiscal Agent Agreements, to take any and all action provided for therein to be taken by the Fiscal Agent. SECTION 4. Delivery of Bonds. The forms of the Bonds as set forth in the respective Fiscal Agent Agreement is hereby approved. The City Treasurer and City Clerk are hereby authorized and directed to execute by manual or facsimile signature, in the name and on behalf of the City and under its seal, the Bonds in typewritten, definitive form and to deliver the Bonds to the Authority in accordance with the terms and provisions of the Fiscal Agent Agreements and the Bond Purchase Contract. SECTION 5. Bond Purchase Contract. The form of the Bond Purchase Contract (the "Bond Purchase Contract") presented at the meeting at which this resolution is adopted to be entered into by and between the City and the Authority, whereby the Authority will purchase the Bonds from the City upon the terms and conditions set forth therein, is hereby approved and, subject to such approval and, subject to such approval and subject to the provisions of Section 6 hereof, the Mayor, the Mayor Pro Tempore, the Acting City Manager or the City Treasurer is hereby authorized and directed to evidence the City's acceptance of the offer made by the Bond Purchase Contract by executing and delivering the Bond Purchase Contract in said form with such changes therein as the officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. 803200.2 3 • • SECTION 6. Final Terms of Sale of Bonds. The City Manager or the City Treasurer. based on such advice as he may deem necessary, is hereby authorized and directed to act on behalf of the City to establish and determine: (i) the fmal aggregate principal amount of the Bonds, which shall not exceed the respective amounts set forth in Section 1 hereof; (ii) the final maturity dates of the respective Bonds, which shall not be later than the maturity date of the last maturity of the corresponding issue of Outstanding Bonds; (iii) the final interests rates on the various maturities of the Bonds, provided that the interest rate on any of the Bonds shall not exceed 8% per annum; and (iv) the purchase price to be paid by the Authority for the purchase of the Bonds, which shall not be less than 100% of the aggregate principal amount of the Bonds. The redemption premium for the redemption of the respective Bonds shall be the same percentage of principal during the same periods as in effect for the corresponding Outstanding 94-1, 94-2 and o2-1 Bonds. SECTION 7. Escrow Agreement; Escrow Holder. The forms of the three Escrow Deposit and Trust Agreement to be dated as of the Closing Date and each to be entered into by and among the City, the Authority and First Trust of California, N.A., as escrow holder (the "Escrow Agreement"), presented at the meeting at which this resolution is adopted is hereby approved and the Mayor, the Mayor Pro Tempore or the City Treasurer is hereby authorized to execute and deliver said agreement in said form with such changes therein as the officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. First Trust of California, N.A. is appointed as Escrow Holder pursuant to the Escrow Agreement, to take any and all action provided therein to be taken by the Escrow Holder. SECTION 8. Continuing Disclosure Agreement. The form of the Continuing Disclosure Agreement to be dated as of the Closing Date and to be entered into by and among the City, the Authority and the Dissemination Agent (as defined therein), presented at the meeting at which this resolution is adopted is hereby approved, and the Mayor, the Mayor Pro Tempore or the City Treasurer is hereby authorized to execute and deliver said agreement in said form with such changes therein as the officer executing the same may approve, such approval to be conclusively evidenced by the execution and delivery thereof. SECTION 9. Application of Reserve Fund and Other Funds. The amount remaining on deposit in the reserve funds for the Outstanding Bonds shall be used to retire such bonds as provided in Section 8885 of the Streets and.Highways Code of the State of California. In order to comply with the requirements of that section, the City Treasurer shall transfer or cause the fiscal agent or paying agent for each issue of the Outstanding Bonds to transfer the entire amount remaining on deposit in the reserve fund for that issue to the Escrow Holder for deposit in the Escrow Fund to be established pursuant to the Escrow Agreement relating to such series. The City Treasurer shall also transfer or cause the transfer of the amount on deposit in the redemption funds for each issue of Outstanding Bonds which is in excess of the amount needed to pay the interest on and principal of the respective issue of Outstanding Bonds on September 2, 1998, and any amount which may be on deposit in the improvement fund relating to such issue of Outstanding Bonds to the Escrow Holder for deposit in the Escrow Fund as provided in the Escrow Agreement relating to such issue of Bonds. 803200.2 4 • • SECTION 10. Other Acts. The officers and staff of the City are authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents, which in consultation with staff, counsel to the City and bond counsel, they may deem necessary or advisable in order to consummate the issuance, sale and delivery of the Bonds or otherwise effectuate the purposes of this resolution, and any and all such actions previously taken by such officers or staff members are hereby ratified and confirmed. SECTION 11. Effective Date. This resolution shall take effect upon adoption. 803200.2 5 vote: PASSED, APPROVED AND ADOPTED this 2 'I day of October, 1997, by the following AYES: Benson, Crites, Snyder, Spiegel, Kelly NOES: None . ABSENT: None . ABSTAINED: None. chard S. Kelly , ayor of the City of Pain Desert, alifornia Sheila R. 'Gilligan City Clerk 803200.2 6 41 • 1, Sheila R. Gilligan , City Clerk of the City of Palm Desert, California. do hereby certify that the foregoing resolution was regularly introduced and adopted by the City Council of the City of Palm Desert, California, at a regular meeting thereof held on the '23 day of October , 1997 by the following vote of the Council: AYES: Benson, Crites, Snyder, Spiegel, Kelly NOES: None. ABSENT: None . ABSTAINED: None . IN WITNESS WHEREOF, 1 have hereunto set my hand and affixed the official seal of the City of Palm Desert, California, this 23 day of October, 1997. Sheila R. Gilligan City Clerk 803200.2 7 STATE OF CALIFORNIA ) ) ss. COUNTY OF RIVERSIDE ) I, Sheila R. Gilligan , City Clerk of the City of Palm Desert, California. DO HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution No. 97-93 and that the same has not been amended or repealed. DATED: October 23 , 1997 , City'Clerk of (lie City of Palm Desert, California 803200.2 8