Loading...
HomeMy WebLinkAboutCC RES 09-02RESOLUTION NO. 09-2 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT AMENDING RESOLUTION NO. 08-75 REGARDING ITS INTENTION TO FINANCE DISTRIBUTED GENERATION RENEWABLE ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS RECITALS: WHEREAS, on July 24, 2008, the City Council (the "City Council") of the City of Palm Desert (the "City") adopted its Resolution No. 08-75 (the "Resolution of Intention"), declaring its intention to finance distributed generation renewable energy sources and energy efficiency improvements through the use of contractual assessments pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the "Act"); and WHEREAS, the Resolution of Intention ordered the Director of the City's Office of Energy Management (the "Director") to make and file with the City Clerk a report (the "Report") in accordance with Section 5898.22 of the Act and the Director has filed the Report with the City Clerk; and WHEREAS, the Resolution of Intention set the time and place for a hearing on the proposed Energy Independence Program (the "Program") as described in the Report; and WHEREAS, the Resolution of Intention described the proposed arrangements for funding the Program, including certain parameters in the event that the City determines to issue improvement bonds pursuant to Streets and Highways Code Section 5898.28 to represent assessments; and WHEREAS, following notice duly given in accordance with law, the City Council held a public hearing on August 28, 2008 regarding the Program as described in the Report; and WHEREAS, following the public hearing, also on August 28, 2008, pursuant to its Resolution No. 08-89, the City Council established the Program, confirmed contractual assessments to be levied against properties in the City within the parameters of the Report, and amended Section 6 of the Resolution of Intention regarding the issuance of bonds; and WHEREAS, on December 11, 2008, the City Council adopted Ordinance No. 1175, an Ordinance amending Chapter 17 of the City's Municipal Code by adding Title 17 ("Title 17") relative to alternative procedures for the issuance and sale of bonds in connection with the Act; and WHEREAS, the City Council desires to amend the Resolution of Intention to provide for alternative proposed arrangements for funding the Program pursuant to Title 17, including certain parameters in the event that the City determines to issue improvement bonds pursuant to Title 17 to represent assessments; Resolution No. 09-2 Page 2of3 NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL OF THE CITY OF PALM DESERT, AS FOLLOWS: Section 1. The above recitals are all true and correct. Section 2. Section 6 of Resolution No. 08-75 is hereby amended and restated in its entirety to read as follows: "The proposed arrangements for financing or refinancing the contractual assessment financing program are briefly described as follows: The City may issue bonds pursuant to Chapter 29 or Title 17 of the Palm Desert Municipal Code ("Title 17"), the principal and interest of which would be repaid by contractual assessments. Alternatively, the City may advance its own funds to finance work to be repaid through contractual assessments, and may from time to time sell bonds, notes, certificates of participation, or other forms of indebtedness to reimburse itself for such advances. The proposed financing arrangements may include the lease -purchase of public facilities by the City pursuant to a lease or other contractual arrangement with a public financing authority or non profit entity or other financing elements as may be determined necessary or useful to the financing of the contractual assessment program. In the event improvement bonds will be issued pursuant to Streets and Highways Code Section 5898.28 to represent assessments, all of the following will apply: (a) Division 10 (commencing with Section 8500) of the Streets and Highways Code ("Division 10") shall apply to any bonds issued pursuant to Section 5898.28, insofar as that division is not in conflict with Chapter 29. (b) Provision is hereby made for the issuance of improvement bonds, in one or more series. (c) Notice is hereby given that serial bonds or term bonds or both to represent unpaid assessments, and to bear interest at the rate of not to exceed 12 percent per year, or such other amount authorized by law, payable semiannually, shall be issued hereunder in one or more series in the manner provided by the Division 10 (to the extent not in conflict with Chapter 29), and the last installment of bonds shall mature a maximum of 39 years from the second day of September next succeeding 12 months from their date. (d) The City Council hereby determines and declares that the City will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the bond redemption fund. (e) The City Council hereby determines that the principal amount of bonds maturing or becoming subject to mandatory prior redemption each year shall be other than an amount equal to an even annual proportion of the aggregate principal amount of the bonds, and the amount of principal maturing or becoming subject to mandatory prior redemption in each year plus the amount of interest payable in that year shall be an aggregate amount that is substantially equal each year, except for the moneys falling due on the first maturity or mandatory prior redemption date of the bonds which shall be adjusted to reflect the amount of interest earned from the date when the bonds bear interest to the date when the first interest is payable on the bonds. W:\Agenda Items\2009-01-22\Resolution - Energy Independence Program\RES-AB811 Resolution Amending ROI - Energy Program 011509.Docx Resolution No. 09-2 Page 3 of 3 (f) With respect to the procedures for collection of assessments and the advance retirement of bonds, the City Council proposes to proceed under the provisions of Part 11.1 of Division 10 (commencing with Section 8670 of the Streets and Highways Code). In the event improvement bonds will be issued pursuant to Title 17 to represent assessments, all of the following will apply: (x) Notice is hereby given that serial bonds or term bonds or both to represent unpaid assessments, and to bear interest at a fixed rate of not to exceed 12 percent per year, or such other amount authorized by law, payable semiannually, shall be issued hereunder in one or more series in the manner provided by Title 17, and the last installment of bonds shall mature a maximum of 39 years from the first principal payment date on such bonds. (y) The City Council hereby determines and declares that the City will not obligate itself to advance available funds from the City treasury to cure any deficiency which may occur in the bond redemption fund." PASSED, APPROVED, AND ADOPTED this 22nd day of January, 2009, by the following vote, to wit: AYES: BENSON, FERGUSON, FINERTY, KELLY, and SPIEGEL NOES: NONE ABSENT: NONE ABSTAIN: NONE ROBERT A. SPIEGEL, 1(ll OR ATTEST: RACHLLE D`KLASSEN'CITY CLER CITY OF PALM DESERT, CALIFORNIA W:Wgenda Items\2009-01-22\Resolution - Energy Independence Program\RES-AB811 Resolution Amending ROT - Energy Program 011509.Docx