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HomeMy WebLinkAboutCC RES 03-074RESOLUTION NO. 03-74 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AUTHORIZING THE ISSUANCE AND SALE BY THE CITY OF NOT TO EXCEED $1,155,000 AGGREGATE PRINCIPAL AMOUNT OF ITS ASSESSMENT DISTRICT NO. 94-3 (MERANO) LIMITED OBLIGATION REFUNDING IMPROVEMENT BONDS, SERIES 2003; APPROVING AS TO FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF CERTAIN DOCUMENTS IN CONNECTION THEREWITH; AND APPROVING CERTAIN OTHER MATTERS RELATING THERETO RECITALS: WHEREAS, the City of Palm Desert (the "City") has heretofore formed Assessment District No. 94-3 (Merano) (the "Assessment District") and issued its Limited Obligation Improvement Bonds, Assessment District No. 94-3 (Merano), of which $1,190,000 in aggregate principal amount remain outstanding (the "Prior Bonds"); and WHEREAS, the City Council of the City (the "City Council") has adopted its Resolution No. 03-71 (the "Resolution of Intention") on May 22 , 2003 declaring its intention to issue bonds to refund the Prior Bonds and to levy reassessments within the Assessment District to secure such refunding bonds, under and pursuant to the Refunding Act of 1984 for 1915 Improvement Act Bonds (the "1984 Refunding Act"), as set forth in Division 11.5 (commencing with Section 9500) of the California Streets and Highways Code; and WHEREAS, the City Council, by its Resolution No. 03- 72 , adopted on May 22 , 2003, has approved a reassessment report (the "Reassessment Report") prepared by MuniFinancial in connection with the proposed refunding and reassessment pursuant to Section 9523 of the 1984 Refunding Act, made the findings required by Section 9525 of the 1984 Refunding Act, and confirmed and adopted the reassessment and reassessment diagram presented with the Reassessment Report; and WHEREAS, the aforementioned reassessment diagram and a notice of reassessment shall be duly recorded in the manner provided by law, and the reassessments and interest thereon shall be collected on the assessment roll for the County of Riverside in the same manner and subject to the same remedies on default and to the payment of interest and penalties on the enforcement thereof as the original assessments in the Assessment District; and WHEREAS, the City Council at this time desires to adopt this Resolution to authorize the issuance of the refunding bonds, which shall be designated "City of Palm Desert, Assessment District No. 94-3 (Merano), Limited Obligation Refunding Improvement Bonds, Series 2003" (the "Bonds") and approve the execution and delivery of certain documents in connection with such issuance; and P6401.1031\734096.1 1 Resolution No. 03-74 WHEREAS, the City anticipates that the Bonds, upon issuance, will be sold to the Palm Desert Financing Authority (the "Authority") pursuant to a Bond Purchase Agreement, to be entered into by and between the City and the Authority; and WHEREAS, it is anticipated that the Authority will issue bonds (the "Authority Bonds") pursuant to the Marks -Roos Local Bond Pooling Act of 1985, as set forth in Section 6584 et seq. of the California Government Code; and WHEREAS, the sale proceeds of the Authority Bonds will be used for the purchase of the Bonds and other bonds of the City and the Authority Bonds will be secured by payments to be made on the Bonds and the other bonds of the City so purchased by the Authority; and WHEREAS, to effect the refunding of the Prior Bonds, the City proposes to enter into an Escrow Agreement with BNY Western Trust Company, in its capacity as the fiscal agent for the Prior Bonds, substantially in the form presented to the City Council and on file with the City Clerk. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, FIND, DECLARE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Authorization to Issue Bonds. The City Council approves and authorizes the issuance and sale of the Bonds, subject to the parameters set forth herein below. Section 3. Fiscal Agent Agreement. The Fiscal Agent Agreement (the "Fiscal Agent Agreement"), proposed to be entered into by and between the City and the Fiscal Agent (defined in Section 4 below), in the form presented at this meeting and on file with the City Clerk of the City (the "City Clerk"), is hereby approved. Subject to Section 7 below, each of the Mayor, the Mayor Pro Tempore (in the Mayor's absence), any deputy of such officers (each, an "Authorized Officer"), acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Fiscal Agent Agreement in substantially said form, with such additions or changes as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). Section 4. Appointment of Fiscal Agent. The appointment of BNY Western Trust Company as fiscal agent (the "Fiscal Agent") under the Fiscal Agent Agreement is hereby approved. Section 5. Escrow Agreement. The Escrow Agreement (the "Escrow Agreement"), proposed to be entered into by and between the City and BNY Western Trust Company, as fiscal agent for the Prior Bonds, in the form presented at this meeting and on file with the City Clerk, is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Escrow Agreement in substantially said Resolution No. 03-74 form, with such additions or changes as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). Section 6. Bond Purchase Agreement. The Bond Purchase Agreement (the "Purchase Agreement") proposed to be entered into by and between the City and the Authority, in the form presented at this meeting and on file with the City Clerk, is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Purchase Agreement in substantially said form, with such additions or changes as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). Section 7. Terms of Sale of Bonds. Each of the Authorized Officers, acting singly, is hereby authorized and directed to act on behalf of the City to establish and determine (i) the aggregate principal amount of the Bonds, which amount shall not exceed $1,155,000; (ii) the purchase price of the Bonds and the interest rates thereon, provided that the interest rate shall not exceed 6.5 percent per annum; (iii) the original purchaser's discount with respect to the Bonds, which shall not exceed 1.5 percent of the principal amount thereof; and (iv) the final maturity of the Bonds, which shall not be on a date that is later than the scheduled final maturity date of the Prior Bonds. The authorization and powers delegated to the Authorized Officers by this Section 7 shall be valid for a period of 90 days from the date of adoption of this Resolution. Section 8. Continuing Disclosure Agreement. The Continuing Disclosure Agreement (the Continuing Disclosure Agreement") relating to the Authority Bonds, proposed to be entered into by and among the Authority, the City and MuniFinancial, as Dissemination Agent, in the form presented at this meeting and on file with the City Clerk, is hereby approved. Each of the Authorized Officers, acting singly, is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Agreement in substantially said form, with such additions or changes therein as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). Section 9. Other Acts. The officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to effectuate the purposes of this Resolution, the Fiscal Agent Agreement, the Escrow Agreement, the Purchase Agreement and the Continuing Disclosure Agreement, and to assist the Authority with respect to the issuance and sale of the Authority Bonds, and any such actions previously taken by such officers are hereby ratified and confirmed. P6401.1031\734096.1 2 Resolution No. 03-74 Section 10. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED this 22nd day of May, 2003, by the following vote to wit: AYES: CRITES, FERGUSON, BELLY, SPIEGEL, BENSON NOES: NONE ABSENT: NONE ABSTAIN: NONE Benson, Mayor ATTEST: achelle D. Klassen, City Clerk P6401.1031\734096.1 3