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HomeMy WebLinkAboutCC RES 06-113RESOLUTION NO. 06-113 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT CREATING AND ESTABLISHING A DEFERRAL FUND AND A DEFERRAL PROGRAM FOR THE HIGHLANDS UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 04-01 RECITALS: A. The City Council of the City of Palm Desert, California (the "City") by its Resolution No. 06-49 (the "Resolution of Intention") declared its intention t: form the Highlands Utility Undergrounding Assessment District No. 04-01(the "Assessment District") pursuant to the provisions of the Municipal Improvement Act of 1913 (California Streets and Highways Code Section 10000, et seq.) (the "1913 Act") and ordered the preparation and filing of a report (the "Engineer's Report") with the City Council and provided that bonds would be issued thereunder pursuant to the provisions of the Improvement Bond Act of 1915 (California Streets and Highways Code Section 8500, et seq.) (the "Bond Act"). B. By its Resolution No. 06-50, the City Council preliminarily approved the Engineer's Report. C. Following notice duly given in accordance with law, the City Council held a public hearing regarding the Resolution of Intention and the Engineer's Report. D. Following the public hearing, pursuant to its Resolution No. 06-86, the City Council confirmed the assessments for the Assessment District and ordered the proposed improvements set forth in the Engineer's Report, as modified, to be made. E. Notice to property owners of the recordation of the assessment and of the 30-day period within which assessments were to be paid in cash has been duly given and the 30- day cash collection period has expired. F. The City Council desires to issue its City of Palm Desert, Highlands Utility Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006 under and pursuant to the Bond Act to represent those assessments which remain unpaid. The official who has been designated as the collection officer for cash payments of such assessments has filed with the City Clerk a list of all assessments which remain unpaid, which list may be modified from time to time by such official. G. The City Council desires to have the City Treasurer invest in and purchase the bonds from the City. H. The City Council desires to establish a deferral fund and a deferral program under the 1913 Act for the benefit of property owners in the Assessment District. P6401-0001\901211v2.doc RESOLUTION NO. 06-113 I. Sections 10700, et seq. of the 1913 Act provide that the City Council may determine, by resolution, to allow property owners in the Assessment District to defer payment of their assessments. J. Eighty percent (80%) or more of the area of the Assessment District is developed for residential use. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The above recitals, and each of them, are true and correct. Section 2. The City Council hereby resolves that all property owners in the Assessment District may defer payment of their assessments subject to the criteria and procedures described below. Section 3. There is hereby created and established a special fund to be held in the treasury of the City entitled the "Highlands Utility Undergrounding Assessment District No. 04- 01 Deferral Fund" (the "Deferral Fund"). The City Treasurer is hereby authorized and directed to deposit into the Deferral Fund, on the date determined by the City Manager, an amount sufficient to payoff the assessments, in whole or in part, or to pay designated assessment installments (as determined by the City Manager), on behalf of all property owners in the Assessment District who meet the criteria and follow the procedures described below for deferral in accordance with the Deferral Program described below. The amount authorized to be deposited into the Deferral Fund shall be the amount determined by the City Manager, but shall not exceed the aggregate amount of payments of principal and interest to maturity on bonds issued to represent unpaid assessments in the Assessment District, together with other amounts authorized by the City Manager for loan -related costs and fees (which may include, but are not limited to, title insurance premiums and recording fees). The yield on investment earnings on amounts deposited into such Deferral Fund shall not exceed the yield on such bonds. The City Treasurer, subject to direction by the City Manager, shall maintain the Deferral Fund and shall, from time to time, make transfers and disbursements of moneys from such Deferral Fund to effectuate the purposes of this Resolution. Section 4. There is hereby created and established the "Highlands Utility Undergrounding Assessment District No. 04-01 Deferral Program" (the "Deferral Program"). All property owners in the Assessment District are eligible to participate in the Deferral Program, subject to the criteria and procedures described below. Amounts deposited into the Deferral Fund on behalf of a property owner in the Assessment District shall constitute an interest bearing loan by the City to the property owner. The criteria for participation by a property owner in the Deferral Program shall include the execution by the property owner of a loan agreement or promissory note, or both, and a deed of trust (with assignment of rents, security agreement and fixture filing) securing the repayment of and other obligations under the City's loan, all in a form and substance satisfactory to the City Manager (the "Loan Documents"). Such procedures shall include the property owner notifying the City Treasurer of the property owner's desire to participate in the Deferral Program by a date to be determined by the City Manager, and the property owner executing the Loan Documents by a date to be 2 P6401-0001 \901211 v2.doc RESOLUTION NO. 06-113 determined by the City Manager. The criteria and procedures may include any other terms and provisions which the City Manager determines are necessary or desirable to implement the Deferral Program. Section 5. The principal of the loan, together with interest determined at the rate and by the method established by the City Manager (which shall not exceed 6.5 percent per annum), shall be due and payable upon the earlier of (i) the date on which the parcel of real property upon which the assessment was levied is transferred or (ii) the date of the last maturity of the bonds issued to represent unpaid assessments; however, notwithstanding the foregoing, principal and interest shall be due on such other date or dates as may be determined by the City Manager consistent with the other terms of this Resolution and the criteria and procedures for the Deferral Program described herein. Section 6. No deferral arrangement may restrict, reduce, or eliminate any remedy of a bondholder provided by the 1913 Act in the event of a default. Section 7. The City Clerk is hereby authorized and directed to publish in a newspaper of general circulation, and to mail to the property owners in the Assessment District, a notice regarding the Deferral Program at the time and in the form and manner as determined by the City Manager. Section 8. The officers and staff of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute, record, and deliver any and all documents 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. PASSED, APPROVED and ADOPTED this 13th day of July ,2006, at a regular meeting of the Palm Desert City Council by the following vote, to wit: AYES: BENSON, KELLY, and FERGUSON NOES: NONE ABSENT: SPIEGEL ABSTAIN: NONE ATTEST: RAC E D. KLASSEN, TTY CLERK CITY OF PALM DESERT, CALIFORNIA MAYOR 3 P6401-0001\901211v2.doc