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HomeMy WebLinkAboutCC RES 06-007RESOLUTION NO. 06-7 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT TO DECLARE THE NECESSITY TO INCUR BONDED INDEBTEDNESS WITHIN CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK) RECITALS: WHEREAS, in accordance with a request set forth in a petition signed by the owners of certain land proposed for inclusion in a proposed community facilities district (the "Petitioning Landowners"), the City Council (the "City Council") of the City of Palm Desert, California (the "City"), has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park) and to Authorize the Levy of a Special Tax within City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Establish District") stating its intention to conduct proceedings to form City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, commencing with Section 53311 of the California Government Code (the "Act") to finance certain public facilities to serve the District (the "Original Facilities"), including incidental expenses, as further provided in the Resolution of Intention; and WHEREAS, the City Council has previously adopted a resolution entitled "A Resolution of Intention of the City Council of the City of Palm Desert to Incur Bonded Indebtedness within Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)" (the "Resolution of Intention to Incur Bonded Indebtedness") stating its intention to authorize the issuance and sale of one or more series of bonds in the maximum aggregate principal amount of $70,000,000; and WHEREAS, the Resolution of Intention to Establish District and the Resolution of Intention to Incur Bonded Indebtedness set December 8, 2005 (the "Original Hearing Date"), as the date of a public hearing on the establishment of the District, the extent of the District, the furnishing of Original Facilities to serve the District, the proposed rate and method of apportionment of the special tax within the District (the "Rate and Method"), and the proposed debt issue; and WHEREAS, a notice of the public hearing was published and mailed to all landowners proposed to be included in the District in accordance with the Act; and WHEREAS, prior to the Original Hearing Date, the Petitioning Landowners made the determination to exclude the development impact fees of the Palm Springs Unified School District and the school improvements to be constructed thereby (the "School Facilities") from the list of public facilities to be financed by the District, in the interest of applying a greater portion of the District's financing to the facilities to be owned by the City and the Coachella Valley Water District (the "CVWD"); and P6401.1032\863109.2 W:\Agenda Iterns\2006•Jan 12\Univ Park CFD No. 2005-1\Reso Declaring Necessity to incur bonded indebtedness (Palm Desert CFD 2005-1).DOC RESOLUTION NO. 06-7 WHEREAS, prior to the Original Hearing Date, there was filed with the City Council a report containing a description of the facilities necessary to adequately meet the needs of the District and an estimate of the cost of financing such facilities as required by Section 53321.5 of the Act (the "Report"), which Report amends the list of Original Facilities to delete the School Facilities from the list of public facilities to be financed by the District; and WHEREAS, Section 53316.2 of the Act permits the District to finance facilities to be owned or operated by a public agency other than the City, but only pursuant to a joint community facilities agreement ("JCFA") adopted by resolution of each of the public agencies that are party thereto and prior to the City Council's adoption of a resolution of formation to establish the District; and WHEREAS, prior to the Original Hearing Date, representatives of the Petitioning Landowners met with representatives of the CVWD to discuss the approval of a JCFA pursuant to Section 53316.2 of the Act, regarding certain of the Original Facilities which, if approved by the qualified electors within the District, would be owned and operated by the CVWD; and WHEREAS, the CVWD indicated that it would need more time beyond the Original Hearing Date to consider the terms and conditions of the proposed JCFA and for the Board of Directors of the CVWD to approve the JCFA by resolution; and WHEREAS, the aforementioned public hearing was duly continued from December 8, 2005 in the City Council Chamber to 4 p.m. on January 12, 2006 in the City Council Chamber upon a finding by the City Council that, pursuant to Section 53325 of the Act, it is appropriate and necessary to continue such hearing, in order to ensure adequate time to address the complexities of the District relating to the JCFA and to ensure adequate opportunity for public comment and participation, including without limitation the comment and participation of the CVWD, with respect to the proposed Original Facilities and JCFA; and WHEREAS, prior to the reconvening of the public hearing on January 12, 2006, it was determined that certain park improvements and park land site acquisition identified in Sections VIII.E. and VIII.F. of Exhibit "A" of the Resolution of Intention to Establish District (the "Parks E and F Improvements"), also described as "Park E" and "Park F," respectively, will not be owned by the City or any other governmental entity and may not be financed by the District by the issuance of its tax-exempt bonds; and WHEREAS, Section 53325 of the Act permits the City Council to modify the Resolution of Intention to Establish District by eliminating proposed facilities, if the City Council makes such modifications at the aforementioned public hearing; and WHEREAS, at the public hearing, the City Council adopted a resolution entitled, "A Resolution of the City Council of the City of Palm Desert Modifying the Resolution of Intention to Eliminate Certain Facilities From Financing by Proposed City of Palm Desert Community Facilities District No. 2005-1 (University Park)," which is on file in the office of the City Clerk of the City and modifies and amends the Resolution of Intention to Establish P6401.1032\863109.2 2 RESOLUTION NO. 06-7 District by amending the list of Original Facilities therein to eliminate the School Facilities and the Parks E and F Improvements (as amended, the "Facilities"); and WHEREAS, at the public hearing, all persons desiring to be heard on all matters pertaining to the establishment of the District, to the extent of the District, to the furnishing of Facilities to serve the District, to the proposed Rate and Method, and to the proposed debt issues were heard and a full and fair hearing was held; and WHEREAS, at the public hearing evidence was presented to the City Council on the matters before it and the City Council at the conclusion of the hearing is fully advised as to all matters relating to the formation of the District, the levy of the special tax, and the incurrence of bonded indebtedness therein; and WHEREAS, subsequent to the public hearing, the City Council adopted a Resolution entitled "A Resolution of Formation of the City Council of the City of Palm Desert to Establish City of Palm Desert Community Facilities District No. 2005-1 (University Park), to Make Environmental Findings With Respect Thereto, to Adopt a Mitigated Negative Declaration in Connection Therewith, to Establish an Appropriations Limit Therefor, to Authorize the Levy of a Special Tax Therein, and to Submit the Establishment of an Appropriations Limit and the Levy of a Special Tax to the Qualified Electors Thereof" (the "Resolution of Formation"); and WHEREAS, no written protests with respect to the matters material to the questions set forth in the Resolution of Intention to Incur Bonded Indebtedness have been filed with the City Clerk. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT: 1. Recitals. The above recitals are all true and correct. 2. Necessary to Incur Bonded Indebtedness. The City Council hereby declares that it is necessary to incur a bonded indebtedness for the District in an aggregate principal amount not to exceed $70,000,000 as authorized under the terms and provisions of the Act. 3. Purpose. The bonded indebtedness will be incurred for the purpose of financing the costs of the Facilities, as provided in the Resolution of Formation including, but not limited to, the financing of the costs associated with the issuance of the bonds and all other costs necessary to finance the Facilities which are permitted to be financed pursuant to the Act. 4. Special Tax. The whole of the property within the District, other than property exempted from the special tax pursuant to the provisions of the Rate and Method set forth in Exhibit "B" to the Resolution of Formation, shall pay for the bonded indebtedness through the levy of the special tax. The special tax is to be apportioned in accordance with such Rate and Method. P6401.1032\863109.2 3 RESOLUTION NO. 06-7 5. Terms. It is the intent of the City Council, acting as the legislative body of the District, to authorize the issuance and sale of one or more series of bonds in the maximum aggregate principal amount of $70,000,000, bearing interest payable annually or semi-annually, or in part annually and in part semiannually, at a maximum interest rate of twelve percent (12%) per annum or such rate not in excess of the maximum rate permitted by law at the time the bonds are issued; provided the first interest payment may be for a period of less than six months, and the actual rate or rates and times of payment shall be determined at the time or times of sale. The term of the bonds of each series shall be determined pursuant to a resolution of the City Council authorizing the issuance of such series, but such term shall in no event exceed forty (40) years from the date of issuance of such series of bonds or such longer term as is then permitted by law. 6. Accountability Measures. Pursuant to and in compliance with the provisions of Article 1.5 (commencing with Section 53410) of Chapter 3 of Part 1 of Division 2 of Title 5 of the Government Code, the City Council hereby establishes the following accountability measures pertaining to any bonded indebtedness incurred by or on behalf of the District: a. Such bonded indebtedness shall be incurred for the specific purposes set forth in Section 3 above. b. The proceeds of any such bonded indebtedness shall be applied only to the specific purposes identified in Section 3 above. c. The document or documents establishing the terms and conditions for the issuance of any such bonded indebtedness shall provide for the creation of an account or accounts into which the proceeds of such indebtedness shall be deposited. d. The City Manager, or his or her designee, acting for and on behalf of the District, shall annually file a report with the City Council as required by Government Code Section 53411. 7. Election. The proposition related to the incurring of the bonded indebtedness and the proposition relating to the levy of the special tax shall be combined into one ballot proposition, and shall be submitted to the qualified voters of the District, together with a proposition to establish an appropriations limit for the District. The election shall be held on January 12, 2006, in the City Council Chamber, 73-510 Fred Waring Drive, Palm Desert, California 92260. Pursuant to Section 53327 of the Act, the election shall be conducted by mail ballot in accordance with the California Elections Code and the voted ballots shall be returned to the City Clerk immediately following adoption of a resolution calling the special election, but in any event no later than 8 p.m. on January 12, 2006. The election shall be closed when the qualified electors have voted, but not later than 8 p.m. on January 12, 2006. P6401.1032\863109.2 4 RESOLUTION NO. 06-7 PASSED AND ADOPTED this 12th day of January, 2006, by the following vote: AYES: BENSON, CRITES, KELLY, SPIEGEL, and FERGUSON NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RAHELLE D. KLASSE , CITY CLERK) P6401.1032\863109.2 5