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HomeMy WebLinkAboutCC RES 2012-54RESOLUTION NO. 2012- 54 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A SECOND SUPPLEMENTAL INDENTURE WITH RESPECT TO THE DISTRICT'S SPECIAL TAX BONDS RECITALS: WHEREAS, the City of Palm Desert Community Facilities District No. 2005-1 (University Park) (the "District") is a community facilities district established under the Mello -Roos Community Facilities Act of 1982, as amended, being Chapter 2.5, Part 1, Division 2, Title 5, of the Government Code of the State of California (the "Act"), duly created, established and authorized to finance certain capital facilities and exercise its powers, all under and pursuant to the Act (as defined in the Master Indenture hereinafter described), and the powers of the District include the power to issue bonds for the financing of authorized capital facilities; and WHEREAS, the City Council of the City of Palm Desert (the "legislative body of the District" or the "City Council") has heretofore undertaken proceedings and declared the necessity to issue bonds on behalf of the District pursuant to the terms and provisions of the Act; and WHEREAS, based upon Resolution Nos. 06-6 and 06-7 adopted by the legislative body of the District on January 12, 2006 and an election held January 12, 2006 authorizing the levy of a special tax (the "Special Tax" or "Special Taxes") and the issuance of bonds by the District, the District is authorized to issue bonds for one or more series, pursuant to the Act, in an aggregate principal amount not to exceed $70,000,000, for the purpose of financing the certain public facilities serving the properties within the District; and WHEREAS, pursuant to a Bond Indenture, dated as of May 1, 2006 (the "Master Indenture"), and a First Supplemental Indenture, dated as of May 1, 2007 (the "First Supplemental Indenture"), each by and between the District and Wells Fargo Bank, National Association, as trustee (the "Trustee"), the District has heretofore issued its Special Tax Bonds, Series 2006A (the "Series 2006A Bonds") in the initial aggregate principal amount of $50,000,000, and its Special Tax Bonds, Series 2007 (the "Series 2007 Bonds"; and together with the Series 2006A Bonds, the "Bonds") in the aggregate principal amount of $17,915,000, all pursuant to the Master Indenture, as amended and supplemented by the First Supplemental Indenture (together, the "Indenture"); and WHEREAS, pursuant to the Indenture, the principal and interest payments on the Bonds are payable by the District from, and secured by, Special Taxes levied by the District; and Page 2 of 3 Resolution No. 2012- 54 WHEREAS, when the Bonds were issued, the District was advised that the County of Riverside (the "County") would not include in the Teeter Plan (the "Teeter Plan") of the County, adopted pursuant to Sections 4701 through 4717 of the California Revenue and Taxation Code, the special taxes levied by a community facilities district established under the Act, and accordingly, neither the District nor the Special Taxes were included in the Teeter Plan; and WHEREAS, subsequent to the issuance of the Bonds, the County has determined to include the Special Taxes levied by the District in the Teeter Plan of the County, and the Teeter Plan currently is applicable to the District and the Special Taxes; and WHEREAS, pursuant to Sections 4701 through 4717 of the California Revenue and Taxation Code, including without limitation Section 4713.5, during such fiscal years that the Special Taxes of the District are included in the Teeter Plan, the County shall pay to the District 100 percent of the Special Tax levy, without regard to actual delinquencies in property owner payments of Special Taxes for the applicable fiscal years; and WHEREAS, the Indenture provides that the District may from time to time, and at any time, without notice to or consent of any of the Bondowners, adopt a supplemental indenture to modify, alter, amend or supplement the Indenture in any respect which is not materially adverse to the Bondowners; and WHEREAS, in view of the District's receipt of 100% of the Special Taxes levied in any fiscal year in which the Teeter Plan is applicable, there is no adverse consequence to Bondowners if the District does not commence judicial foreclosure proceedings against parcels delinquent in the payment of Special Taxes in any such fiscal year; and WHEREAS, as permitted by the Indenture and to conserve and provide efficient use of District resources, the District desires, and the Trustee is willing, to amend and supplement the foreclosure covenant included in the Indenture by a Second Supplemental Indenture (the "Second Supplemental Indenture") to provide that, if at any time, the County's Teeter Plan is in effect and is made applicable to the District and the Special Taxes being levied in connection with the Bonds, the District may, in its discretion, elect not to commence any judicial foreclosure proceeding pursuant to the foreclosure covenant included in the Indenture or to defer the commencement of such proceedings until such time as the District deems appropriate. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT, ACTING FOR ITSELF AND AS THE LEGISLATIVE BODY OF CITY OF PALM DESERT COMMUNITY FACILITIES DISTRICT NO. 2005-1 (UNIVERSITY PARK), DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals; Findings. The above recitals, and each of them, are true and correct. Page 3 of 3 Resolution No. 2012- 54 Section 2. Second Supplemental Indenture. The Second Supplemental Indenture, proposed to be entered into by and between the District and the Trustee, in the form presented and on file in the office of the City Clerk of the City, is hereby approved. Each of the Mayor of the City (or in his absence, the Mayor Pro Tem of the City) 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 District, to execute and deliver the Second Supplemental Indenture 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 and the District 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 Second Supplemental Indenture, or otherwise to effectuate the purposes of this Resolution and the Second Supplemental Indenture, 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 at a meeting held on the 12th day of July, 2012, by the following vote to wit: AYES: BENSON, FINERTY, HARNIK, KROONEN, and SPIEGEL NOES: NONE ABSENT: NONE ABSTAIN: NONE ROBERT A. SPIEG L, ' 'aR ATTEST: RACHELLE D. KLASSEtG, CITY CLqK CITY OF PALM DESERT, CALIFORNIA