HomeMy WebLinkAboutCC RES 2012-36RESOLUTION NO. 2012-36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT
APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
FIRST AMENDMENT TO REIMBURSEMENT AGREEMENT WITH RESPECT
TO THE PALM DESERT FINANCING AUTHORITY'S ENERGY
INDEPENDENCE PROGRAM, VARIABLE RATE DEMAND LEASE REVENUE
BONDS, SERIES 2009 (FEDERALLY TAXABLE)
RECITALS:
WHEREAS, on August 31, 2009, the Palm Desert Financing Authority (the "Authority")
issued and delivered its Energy Independence Program, Variable Rate Demand Lease
Revenue Bonds, Series 2009 (Federally Taxable) (the "Bonds") in order to (i) reimburse the City
for the entire amount of its $2.5 million advance, authorized by Resolution No. 08-89 of the City
Council of the City, adopted on August 28, 2008, to initially fund the Energy Independence
Fund; (ii) finance the acquisition and construction or installation of distributed generation
renewable energy sources and energy efficiency improvements on or in properties in the City
pursuant to the City's Energy Independence Program; and (iii) pay certain costs related to the
issuance of the Bonds; and
WHEREAS, in connection with the issuance of the Bonds, to provide for additional
liquidity for the payment of debt service on the Bonds and to enhance the credit quality of the
Bonds, Wells Fargo Bank, National Association (the "Bank"), provided an irrevocable letter of
credit (the "Letter of Credit") with respect to the Bonds, which expires on August 30, 2012; and
WHEREAS, as part of the documentation for the Letter of Credit, the City and the Bank
entered into a Reimbursement Agreement, dated as of August 1, 2009 (the "Reimbursement
Agreement"); and
WHEREAS, pursuant to Section 4.12 of the Indenture, dated as of August 1, 2009,
governing the Bonds, the Bonds are subject to mandatory tender on August 1, 2012 in the event
the Letter of Credit will not be extended, or an alternate credit facility will not be provided; and
WHEREAS, the City desires to extend, and the Bank has approved an extension of, the
Letter of Credit for another three years, to August 30, 2015, upon the terms and conditions set
forth in a First Amendment to Reimbursement Agreement, by and between the City and the
Bank (the "First Amendment to Reimbursement Agreement"); and
WHEREAS, in order to effect the extension of the Letter of Credit to support the Bonds,
the City Council desires to approve the form of, and authorize the execution and delivery of, the
First Amendment to Reimbursement Agreement, the form of which is on file with the City Clerk.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES
HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Recitals; Findings. The above recitals, and each of them, are true and
correct.
Page 2 of 2 Resolution No.2012-36
Section 2. First Amendment to Reimbursement Agreement. The First Amendment
to Reimbursement Agreement, proposed to be entered into by and between the City and the
Bank, in the form presented and on file in the office of the City Clerk, is hereby approved. Each
of the Mayor (or in his absence, the Mayor Pro Tem) and the City Manager of the City (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 First Amendment to Reimbursement Agreement
in substantially said form, with such 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 3. Other Acts. The Authorized Officers and all other officers of the City are
hereby authorized and directed, jointly and severally, to do any and all things, to execute and
deliver any and all documents that they may deem necessary or advisable in order to
consummate the extension of the Letter of Credit, or otherwise to effectuate the purposes of this
Resolution and the First Amendment to Reimbursement Agreement, and any such actions
previously taken by such officers, are hereby ratified and confirmed.
Section 4. Effective Date. This Resolution shall take effect immediately upon
adoption.
PASSED AND ADOPTED by the City Council of the City of Palm Desert at a meeting
held on the 14th day of June, 2012, by the following vote to wit:
AYES: BENSON, riannir, HARNIK, KROONEN, and SPIEGEL
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
ROBERT A. SPIEL, M • R
ATTEST:
RAAHELLE D. KTASSENI, CITY CLER
CITY OF PALM DESERT, CALIFORNYA