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Home My WebLink AboutCC RES 06-041RESOLUTION NO. 06-41 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT INITIATING PROCEEDINGS TO FORM THE SECTION 29 ASSESSMENT DISTRICT, DECLARING ITS INTENT TO REIMBURSE CERTAIN EXPENDITURES BY THE CITY FOR IMPROVEMENTS BENEFITING SUCH ASSESSMENT DISTRICT FROM THE PROCEEDS OF IMPROVEMENT BONDS AND TAKING CERTAIN OTHER ACTIONS IN CONNECTION WITH SUCH ASSESSMENT DISTRICT THE CITY COUNCIL OF THE CITY OF PALM DESERT HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: Section 1. The owners of certain property located within the City of Palm Desert, as shown on Exhibit A, attached hereto have requested the City Council to initiate proceedings pursuant to the Municipal Improvement Act of 1913 (Division 12 of the Streets and Highways Code, commencing with Section 10,000) (the "1913 Act") to form an assessment district to be known as the "Section 29 Assessment District" for the purpose of acquiring, constructing and installing certain public infrastructure improvements (sewer and water lines, street improve- ments, storm drainage) of special benefit to the properties in the Assessment District. The City Council therefore desires to initiate proceedings for the formation of the Section 29 Assessment District, the levy of assessments against properties in the Section 29 Assessment District and the issuance of improvement bonds to finance such improvements. Section 2. The City Council may wish to complete, or cause to be completed, certain of the public infrastructure improvements prior to the formation of the Section 29 Assessment District and the levy of assessments and issuance of improvement bonds, and to be reimbursed from such assessment revenues and bond proceeds when, and if, the City forms the Section 29 Assessment District, levies assessments and issues improvement bonds. Section 3. Pursuant to Section 10210 of the 1913 Act, in order to expedite the making of public infrastructure improvements, the City Treasurer has established a special fund designated the "Section 29 Assessment District Special Loan Fund." The City Treasurer may transfer into such Special Loan Fund such sums as the City Treasurer deems necessary to fund completion of certain of the improvements. The sums so transferred to the Special Loan Fund and expended on any such public infrastructure improvements shall constitute a loan to such Special Loan Fund, and shall be repaid from proceeds of assessments levied in connection with the proposed Section 29 Assessment District and/or improvement bonds issued to represent unpaid assessments. The establishment of such Special Loan Fund and any and all transfers thereto by the City Treasurer are hereby ratified and confirmed. Section 4. The proposed Section 29 Assessment District improvements also include improvements, together with appurtenances and appurtenant work, installed and constructed, or to be installed and constructed, by one or more of the owners of property in the proposed Section 29 Assessment District prior to the formation of the Assessment District and the levy of assessments and issuance of improvement bonds. The City Council hereby declares P6401/1033/878732v3 RESOLUTION NO. 06-41 its intention to enter into an acquisition and funding agreement with each subject owner which provides for the owner to be paid for such improvements in accordance with the terms and conditions of the acquisition and funding agreement at an acquisition price determined pursuant to the acquisition and funding agreement, but solely from proceeds of improvement bonds when, and if, the City forms the Section 29 Assessment District, levies assessments and issues such improvement bonds in an amount sufficient therefor. Notwithstanding that improvements have been or may be constructed in rights -of -way or on property which has been or may be dedicated to the City prior to the formation of the Assessment District, or that the City has issued or may issue a notice of completion or acceptance with respect to such improvements or otherwise has evidenced or may evidence its acceptance of the improvements prior to the formation of the Section 29 Assessment District, for only the purposes of the Section 29 Assessment District proceedings, such acquisition and funding agreements, and payment to the subject owner for such improvements as contemplated therein from the proceeds of improvement bonds, if any, the improvements shall be deemed to be the property of the subject owner until such payment. Section 5. The City Council hereby appoints and designates the Director of Public Works of the City to perform the duties and functions of the Superintendent of Streets in connection with the proceedings to form the Section 29 Assessment District pursuant to the 1913 Act. Section 6. Section 1.150-2 of the Treasury Regulations governs the allocation of expenditures of a reimbursement bond. A reimbursement bond is that portion of an issue of bonds (or other obligations) allocated to reimburse an original expenditure (i.e., an expenditure for a governmental purpose that is originally paid from a source other than a reimbursement bond) that was paid before the date of issue of the bonds. Section 1.150-2 provides rules to determine when an allocation of proceeds of bonds to reimburse an original expenditure will be treated as an expenditure of those proceeds. Section 7. In order for such an allocation of those proceeds to be treated as an expenditure, the issuer (or in certain cases, a conduit borrower) of the bonds must, in accordance with Section 1.150-2, adopt an official intent for the original expenditure. The official intent is a declaration of intention by the issuer to reimburse the original expenditure with proceeds of bonds. Section 8. As set forth in Section 3, hereof, the City may make expenditures in connection with certain of the public infrastructure improvements and intends that such expenditures be reimbursed to the City from the proceeds of improvement bonds to be issued by the City in connection with the assessment district. The City expects that all such expenditures will be reimbursed with proceeds of the improvement bonds. Section 9. The maximum principal amount of improvement bonds expected to be issued in connection with the Section 29 Assessment District is $33,500,000. Section 10. This official intent is not declared as a matter of course and is not declared in an amount substantially in excess of the amounts expected to be necessary to reimburse the expenditures described in Section 3 hereof. P6401 /1 033/878732v3 2 RESOLUTION NO. 06-41 Section 11. The officers of the City are hereby authorized and directed, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem necessary or proper in order to effectuate the purposes of this Resolution and any such actions previously taken by such officers are hereby ratified, confirmed and approved. PASSED, APPROVED and ADOPTED this 23rd day of March , 2006, by the following votes to wit: AYES: NOES: ABSENT: ABSTAINS: Attest: cNWCLERK RACHELLE D. KLASSEN BENSON, CRITES, KELLY, SPIEGEL, and FERGUSON NONE NONE NONE 3 «V,,1I$IHX3 PROPOSED BOUNDARIES ❑r ASSESSMENT DISTRICT NO. 2004 -02 (SECTION 29) CITY OF PALM DESERT COUNTY OF RIVERSIDE STATE OF CALIFORNIA 1j II •••-26042 \\N\ \1 a F� OT 6ER16AR) JACOUES OE•ONNE • 6ENOAN NOLUIN08 1 f1ER 6')1Q NO}01N66 • JOHN i SCOSINEELL 2 MAC . CO a 6I6C1./ 2O.nygL:r LARD CO f• )IC PROPERTIES S MC PRQPERTN 6 6OUTN6,IiM 1`FIj[ f0}1Q11 C, a PSINOFRSI H My`y((6 I IMC. 6 I.rr',rA�QQ[EIMC • DESERT NILIOLQINOS \A -D NOLDINDS 1 016 CA11r INC t ART PALM LTD PARTNERRHIP 63.0243 6;3-26041 RS3.26042 65a.260.02 ii. 663.260.53 65a-?EOAa 6 5-200A6 6 63]-]6C 653 663.260.02 t RECORDED N TIC OF7IC! Of TLC SUPERINTENDENT OF STREETS, PALM DESERT, TOE DAY OF .ZCI06, SIREAEoT NlT OF SIREETE PALM DESERT RLED N THE OFFICE OF CRY CLERK TIE PALM DESERT.1 DAY OF .2006. —" MASS S:SIAM WAG LEVER RITE CRY COULEE. OF PALM DESERT ONT R LOTS. RODEGMDPARCELOOF LAND TEOGASSPS4@fr MAGMA SAD AfiBESM6ENT WAS LEWDCAME DAY OF 2006. SAID ASSESSMENT DIAGRAM APO ASSESSMENT ROLL WERE DiTILLOFFFZEOF TIE 81REANTE DE/EOFSTIEETS CFSAD CRY CM TIE DAY OF - REFERENCE Et MADE TO THE ASSESSMENT ROLL RECORDED M TEOfRCE OF THE SUPEORDOE(E OFS1REETE FORTE EXACT AMOUNT OF EACH ASSESSILENTLEWD SWOT !AM PARCEL SR01Ni CN WE ASSEf6LExf DUGMA►E CRY CLERK PALM DESERT FEED TWO DAY OF 2006, ATTE HOUR OF O'CLOCK JIN GOOK OF MAPS OF ASSESSMENT APO COMMUI 1Y' FACILITIES ATPRIEM) T 711E REQUEST OF PALM DESERT MITE OFFICE Of TIE COUNTY RECORDER OF TIE COUNTY CF RIVERSIDE; STATE OF GLFOIOM FEE NET. NO: COUNTY OLSOCRECORDER BY DEPUTY COUNTY tYHtlLABCCNOER CCNTYOF W EREDE N01V. FCRPAKOLDLARS OF THE LNES AND DBIENSDM6 CC ASSESSORS PAMELAR BMAOE TOILE AMPS OF THE ROEMEE COUNTY ASSESSOR W2IL(yl MAPS SHALL GOVERN FOR AU. DETAILS RELASNOTIERET0. LEGEND ASSESSMENT DISTRICT BOUNDARY PARCEL SUBDIVISION LINE Mu n iFinanc ial r6� 1�11 •r-•w• ti L•>Q NFU*