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Home My WebLink AboutCC RES 06-087RESOLUTION NO. 06-87 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 $3,530,000 AGGREGATE PRINCIPAL AMOUNT OF ITS HIGHLANDS UTILITY UNDERGROUNDING ASSESSMENT DISTRICT NO. 04-01 LIMITED OBLIGATION IMPROVEMENT BONDS, SERIES 2006; 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, on April 13, 2006, the City Council of the City (the "City Council") adopted Resolution No. 06-49 (the "Resolution of Intention"), relating to the formation of "Highlands Utility Undergrounding Assessment District No. 04-01" (the "Assessment District") in connection with the proposed undergrounding conversion of certain overhead electric and communication facilities in the Palm desert Highlands area of the City (the "Project") under and pursuant to the provisions of the Municipal Improvement Act of 1913, as set forth in Division 12 (commencing with Section 10120) of the California Streets and Highways Code; and WHEREAS, in the Resolution of Intention, the City Council gave notice that serial bonds, term bonds, or both, would be issued thereunder pursuant to the provisions of the Improvement Bond Act of 1915, as set forth in Division 10 (commencing with Section 8500) of the Califomia Streets and Highways Code; and WHEREAS, after conducting a duly noticed public hearing, the City Council has adopted Resolution entitled: "A Resolution Of The City Council Of The City Of Palm Desert Ordering Modifications To The Engineer's Report In Connection With Highlands Utility Undergrounding Assessment District No. 04-01, Approving Such Engineer's Report As So Modified, Confirming The Assessments In Connection With Such District, Ordering Improvements To Be Made And Designating Such District A Utility Undergrounding District Pursuant To Chapter 12.12 Of The Palm Desert Municipal Code" on June 8, 2006, ordering improvements relating to the Project and confirming the proposed assessment against parcels within the Assessment District; and WHEREAS, the City Council has directed that notice of the recordation of the assessments and of the time within which assessments are to be paid in cash to be duly published and mailed in the manner provided by law, and the official who has been designated as collection officer for cash payments of such assessments will file with the City Clerk a list of all assessments which remain unpaid following the expiration of the 30- day cash collection period (the "Cash Collection Period"); and RESOLUTION NO. 06-87 WHEREAS, the City Council at this time desires to adopt this Resolution to authorize the issuance of the bonds, which shall be designated "City of Palm Desert, Highlands Utility Undergrounding Assessment District No. 04-01, Limited Obligation Improvement Bonds, Series 2006" (the "Bonds") and approve the execution and delivery of certain documents in connection with such issuance; and 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 to represent assessments remaining unpaid at the expiration of the Cash Collection Period, subject to the parameters set forth herein below. Section 3. Fiscal Aaent Aareement. 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 6 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 Wells Fargo Bank, N.A. as fiscal agent (the "Fiscal Agent") under the Fiscal Agent Agreement is hereby approved. Section 5. Bond Purchase Agreement. The Bond Purchase Agreement (the "Purchase Agreement") proposed to be entered into by and between the City and Wedbush Morgan Securities, Inc. (the "Underwriter"), 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 6. 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 $3,530,000; (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 P6401.1034 859555.3 RESOLUTION NO. 06-87 the principal amount thereof; and (iv) the final maturity of the Bonds, which shall not be on a date that is later than 39 years from the second day of September next succeeding 12 months from the dated date of the Bonds. The authorization and powers delegated to the Authorized Officers by this Section 6 shall be valid for a period of 90 days from the date of adoption of this Resolution. Section 7. Preliminary Official Statement. The Preliminary Official Statement relating to the Bonds (the "Preliminary Official Statement"), 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 cause the Preliminary Official Statement in substantially said form, with such additions or changes therein as such Authorized Officer may approve, to be deemed final for the purposes of Rule 15c2-12 of the Securities and Exchange Act of 1934. The distribution by the Underwriters of copies of the Preliminary Official Statement to potential purchasers of the Bonds is hereby approved. Section 8. Official Statement. Each of the Authorized Officers, acting singly, is hereby authorized and directed, for and in the name and on. behalf of the City, to cause the Preliminary Official Statement to be brought into the form of a final Official Statement (the "Official Statement"), and to execute the same for and in the name and on behalf of the City, with such additions or changes therein as such Authorized Officer may approve (such approval to be conclusively evidenced by such Authorized Officer's execution and delivery thereof). The distribution and use of the Official Statement by the Underwriter in connection with the sale of the Bonds are hereby approved. Section 9. Continuina Disclosure Aareement. The Continuing Disclosure Agreement (the Continuing Disclosure Agreement") relating to the Authority Bonds, proposed to be entered into by and between 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 10. 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 Purchase Agreement, the Official Statement and the Continuing Disclosure Agreement, and to assist the City Council with respect to the issuance and sale of the Bonds, and any such actions previously taken by such officers are hereby ratified and confirmed. Section 11. Effective Date. This Resolution shall take effect immediately upon adoption. P6401.1034 859555.3 RESOLUTION NO. 06-87 APPROVED and ADOPTED this 8th day of June 2006, by the following vote to wit: AYES: BENSON, CRITES, KELLY, and FERGUSON NOES: NONE ABSENT: SPIEGEL ABSTAIN: NONE J JIM ITRf0C5N, MAYOR ATTEST: RA HELLE D. KLaSSEN,CITY CLERK CITY OF PALM DESERT, CALIFORNIA P6401.1034 859555.3