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HomeMy WebLinkAboutCC RES 03-071RESOLUTION NO. 03-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DECLARING ITS INTENTION TO ISSUE REFUNDING BONDS FOR ASSESSMENT DISTRICTS NOS. 94-2 AND 94-3; DIRECTING THE PREPARATION OF A REPORT PURSUANT TO SECTION 9523 OF THE CALIFORNIA STREETS AND HIGHWAY CODE; MAKING OTHER DETERMINATIONS RELATING TO THE REFUNDING; AND DIRECTING OTHER MATTERS RELATING THERETO RECITALS: WHEREAS, the City of Palm Desert (the "City") has heretofore formed Assessment District No. 94-2 (Sunterrace) (the "AD 94-2") and issued its Limited Obligation Improvement Bonds, Assessment District No. 94-2 (Sunterrace) (the "AD 94- 2 Bonds"), of which $1,035,000 in aggregate principal amount remain outstanding; and WHEREAS, the City has heretofore formed Assessment District No. 94-3 (Merano) (the "AD 94-3") and issued Limited Obligation Improvement Bonds, Assessment District No. 94-3 (Merano) (the "AD 94-3 Bonds" and, together with the AD 94-2 Bonds, the "Existing Bonds"), of which $1,190,000 in aggregate principal amount remain outstanding; and WHEREAS, in Tight of currently favorable market conditions, the City has proposed issuing bonds (the "Refunding Bonds") to refund the Existing Bonds pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds (the "1984 Refunding Act"), as set forth in Division 11.5 (commencing with Section 9500) of the California Streets and Highway Code (the "Code"); and WHEREAS, such refundings will be beneficial to the public as the amounts required for principal and interest payments each year for the Refunding Bonds are expected to be lower than those for the Existing Bonds; and WHEREAS, the City Council of the City (the "City Council") desires to initiate proceedings to issue the Refunding Bonds pursuant to the terms and provisions of the 1984 Refunding Act; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are all true and correct. P6401/1031/733529.3 RESOLUTION NO. 03-71 Section 2. Finding of Public Interest. Pursuant to Section 9520 of the Code, the City Council hereby finds that public interest requires the refunding of the Existing Bonds, subject to the City Council's review of the Reassessment Report described in Section 4 below. Section 3. Declaration of Intention to Issue Refunding Bonds and Levy Reassessments. Pursuant to Section 9520 of the Code, and subject to the terms and conditions set forth in this Resolution, the City Council hereby declares its intention to do the following: (a) with respect AD 94-2: (i) issue bonds (the "AD 94-2 Refunding Bonds") to refund the remaining outstanding AD 94-2 Bonds, and (ii) levy reassessments (the "AD 94-2 Reassessments") against parcels in AD 94-2 as security for the AD 94-2 Refunding Bonds; and (b) with respect AD 94-3: (i) issue bonds (the "AD 94-3 Refunding Bonds") to refund the remaining outstanding AD 94-3 Bonds, and (ii) levy reassessments (the "AD 94-3 Reassessments") against parcels in AD 94-3 as security for the AD 94-3 Refunding Bonds. Section 4. Appointment of Reassessment Engineer; Preparation of Reassessment Report. The appointment of MuniFinancial as the "Reassessment Engineer" in connection with the above -described refundings is hereby approved. The Reassessment Engineer shall prepare and file with the office of the City Clerk, no later than 30 days after the date of this Resolution, a report (the "Reassessment Report") on the estimated AD 94-2 Reassessments and AD 94-3 Reassessments to be levied upon the issuance of the Refunding Bonds. The Reassessment Report may be in the form of a single document or two separate documents (i.e., one for the AD 94-2 Refunding Bonds and one for the AD 94-3 Refunding Bonds). The Reassessment Report shall contain (a) all of the information required by Section 9523 of the Code to be contained therein, and (b) such additional information as necessary and appropriate to enable the City Council to make a determination on whether the refundings, as proposed, will satisfy the conditions set forth in clauses (1) and (3) of Section 9525(a) of the Code. Section 5. Limited Obligation of the City. The City shall not be obligated to advance available funds from the City Treasury to cure any deficiency which may occur in the bond redemption funds for the Refunding Bonds. This determination shall be clearly stated in the text of the Refunding Bonds. The designated names of the P6401 / 1031 /733529.3 1 RESOLUTION NO. 03- 71 Refunding Bonds shall include the words "limited obligation refunding improvement bonds." Section 6. Establishment of Special Reserve Funds. Pursuant to Part 16 (commencing with Section 8880) of Division 10 of the Code, there shall be created a special reserve fund for the AD 94-2 Refunding Bonds (the "AD 94-2 Special Reserve Fund") and a special reserve fund for the AD 94-3 Refunding Bonds (the "AD 94-3 Special Reserve Fund"). The amount of money to be deposited in the AD 94-2 Special Reserve Fund (which is not to exceed 10% of the total AD 94-2 Reassessments) shall be included in the AD 94-2 Reassessments. The amount of money to be deposited in the AD 94-3 Special Reserve Fund (which is not to exceed 10% of the total AD 94-3 Reassessments) shall be included in the AD 94-3 Reassessments. Section 7. Certain Terms of Refunding Bonds. The Refunding Bonds shall be issued and sold in the manner consistent with the 1984 Refunding Act and the conditions set forth below in this Resolution. Notice is hereby given as follows: (a) The AD 94-2 Refunding Bonds and AD 94-3 Refunding Bonds shall (i) represent and be secured by unpaid reassessments to be levied on parcels in AD 94-2 and AD 94-3, respectively, (ii) bear interest at a rate of not exceeding 12 percent per annum, or such other maximum interest rate permitted by law, and (iii) be issued in the manner provided by the 1984 Refunding Act. (b) The last installment of the AD 94-2 Refunding Bonds shall mature on September 2nd of a year that is no later than 2014 (i.e., the year of the final maturity for the AD 94-2 Bonds). The last installment of the AD 94-3 Refunding Bonds shall mature on September 2nd of a year that is no later than 2020 (i.e., the year of the final maturity for the AD 94-3 Bonds). (c) The Refunding Bonds may be issued in the form of serial or term bonds, or a combination thereof. (d) Interest on the Refunding Bonds shall be payable on March 2 and September 2 of each year (each an "Interest Payment Date") during which the Refunding Bonds shall remain outstanding. Section 8. Determinations Reaardino Annual Principal and Interest. With respect to the AD 94-2 Refunding Bonds and the AD 94-3 Refunding Bonds, respectively, the City Council hereby determines as follows: (a) The principal amount of such Refunding Bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal of such Refunding Bonds. P6401/1031 /733529.3 2 RESOLUTION NO. 03- 71 (b) The amount of principal maturing or becoming subject to mandatory prior redemption in each year, plus the amount of interest payable in that year, shall be in an aggregate amount that is substantially equal each year; provided, however, that moneys falling due on the first maturity or the first mandatory prior redemption date may be adjusted to reflect the amount of interest earned from date when such Refunding Bonds bear interest to the date when the first interest on such Refunding Bonds is payable. Section 9. Provisions for Redemption. With respect to the AD 94-2 Refunding Bonds and the AD 94-3 Refunding Bonds, respectively, the City Council hereby determines as follows: (a) Each Refunding Bond, or any portion of thereof in a fixed amount or any integral multiple of the fixed amount, shall be subject to optional redemption in advance of its maturity on any Interest Payment Date upon payment to the registered owner of the principal and accrued interest to the date of redemption, together with a redemption premium. The redemption premium shall be in an amount equal to a percentage (which may be zero percent) of the principal of the Refunding Bonds subject to redemption, as determined in accordance with the resolution(s), indenture(s), fiscal agent agreement(s) or other similar instrument(s) pursuant to which the Refunding Bonds are to be issued; provided, however, that the redemption premium for the first 5 years of the term of the Refunding Bonds shall be in an amount not Tess than 3 percent of the principal. (b) Notwithstanding the foregoing, to the extent that such Refunding Bonds include one or more term bonds, such term bonds shall be subject to mandatory prior redemption, without premium, through annual sinking fund installments conforming to the requirements of Section 8 of this Resolution. Section 10. . Collection of Reassessments and Advance Retirement of Refunding Bonds. Pursuant to Section 8760 of the Code, the City Council hereby proposes to proceed in accordance with Part 11.1 (commencing with Section 8760) of the Code with respect to the collection of the AD 94-2 Reassessments and the AD 94-3 Reassessments and the advance retirement, if any, of the Refunding Bonds. Section 11. Person Designated to Collect Reassessments. The City Council hereby designates the City Treasurer, or an agent designated by the City Treasurer in writing, to collect and receive the AD 94-2 Reassessments and the AD 94-3 Reassessments. P6401 / 1031 /733529.3 3 RESOLUTION NO. 03- 71 Section 12. Original Assessment to Remain in Effect until Refunding Bonds Issuance. All original assessments levied in AD 94-2 and AD 94-3 relating to the Existing Bonds shall continue and remain in full force and effect until the Refunding Bonds have been issued by the City pursuant to the provisions of the 1984 Refunding Act and such original assessments have been superseded and supplanted by the AD 94-2 Reassessments and the AD 94-3 Reassessments, respectively. Section 13. Other Acts. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to effectuate the purposes of this Resolution and any such actions previously taken by such officers are hereby ratified and confirmed. Section 14. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED this 22nd day of May, 2003. AYES: CRITES, FERGUSON, BELLY, SPIEGEL, BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE Dom- 6 64t-404------- Benson, Mayor ATTEST: Rachelle D. Klassen, Ci y Clerk P6401/1031/733529.3 4