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HomeMy WebLinkAboutCC RES 2014-04RESOLUTION NO. 2014-04 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT APPROVING THE EXECUTION OF AN FREEDOM DOG PARK PROJECT BOND PROCEEDS FUNDING AGREEMENT BETWEEN THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AND THE CITY AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its Tax Allocation Revenue Bonds (Project Area No. 4), Series 2001, in the principal amount of $15,695,000 (the "2001 Bonds"), pursuant to an Indenture of Trust, dated as of November 1, 2001, by and between the Financing Authority and BNY Western Trust Company, as trustee (the "Trustee"). B. Pursuant to the Loan Agreement, dated as of November 1, 2001 (the "Loan Agreement"), by and among the Financing Authority, the former Palm Desert Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the 2001 Bonds were lent to the Former RDA as a loan (the "Loan"). C. The Former RDA caused a portion of the proceeds of the 2001 Bonds received as part of the Loan to be deposited into a Project Fund (the "2001 Project Fund"), which was established, and is held by, the Trustee pursuant to the Loan Agreement. D. Pursuant to the Loan Agreement, moneys in the 2001 Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 4 (the "Project Area"). E. As documented by the Official Statement, dated November 15, 2001, and the Certificate Regarding Compliance with Certain Tax Matters, dated as of November 28, 2001 (the "Tax Certificate"), it was intended, at the issuance of the 2001 Bonds, that the projects to be financed from moneys deposited in the 2001 Project Fund include, among others, the Freedom Dog Park project (including fencing alterations, landscaping, lighting and other related improvements) (the "Freedom Dog Park Project"). F. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in Califomia Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Ca1.4th 231(2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. G. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." G:1Cityk4gr\Ryan StendelflStaff Reports12014Uanuary 23lCity reso re Freedom Dog Park - PA 4 2001 Project Bond Proceeds Funding Agree 1-23-14.doc RESOLUTION NO. 2014-04 H. Pursuant to Section 34175(b) of the Califomia Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2001 Bonds remaining in the 2001 Project Fund (the "2001 Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. I. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the 2001 Bond Proceeds shall be used for the purposes for which the 2001 Bonds were sold, in a manner consistent with the original bond covenants. J. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. K. There remains a balance of 2001 Bond Proceeds in the 2001 Project Fund (in the amount of $4,673,654 as of December 31, 2013). L. The Successor Agency desires to use a portion of the 2001 Bond Proceeds for completion of work with respect to the Freedom Dog Park Project. M. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into the Freedom Dog Park Project Bond Proceeds Funding Agreement, pursuant to which the City will agree to perform or cause to be performed all work required to complete the Freedom Dog Park Project, with payment therefor to be made from the 2001 Bond Proceeds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: Section 1. Recitals. The above recitals, and each of them, are true and correct. Section 2. Freedom Dog Park Bond Proceeds Funding Agreement. The Freedom Dog Park Project Bond Proceeds Funding Agreement, in the form attached hereto as Exhibit A, is hereby approved. Each of the Mayor (or in the Mayor's absence, the Mayor Pro Tem) and the City Manager (each, an Authorized Officer"), individually, is hereby authorized to execute and deliver, for and in the name of the City, the Freedom Dog Park Project Bond Proceeds Funding Agreement, in substantially such form, with changes therein as the Authorized Officer executing the same may approve (such approval to be conclusively evidenced by the execution and delivery thereof). Section 3. Other Acts. The Authorized Officers and all other officers of the City are hereby authorized, jointly and severally, to execute and deliver any and all necessary documents and instruments and to do all things which they may deem wog r G:\City .4grlRyan Stendeil'Staff Reports\2014Uanuary 23\City reso re Freedom Dog Paris - PA 4 2001 Project Bond Proceeds Funding Agree 1-23-14.doc RESOLUTION NO. 2014-04 necessary or proper to effectuate the purposes of this Resolution and the Freedom Dog Park Project Bond Proceeds Funding Agreement. Any actions previously taken by officers of the City consistent with the purposes of this Resolution, the Freedom Dog Park Project Bond Proceeds Funding Agreement are hereby ratified and confirmed Section 4. Effective Date. This Resolution shall take effect immediately upon adoption. APPROVED and ADOPTED this 23rd day of January, 2014. AYES: BENSON, HARNIK, SPIEGEL, WEBER, and TANNER NOES: NONE ABSENT: NONE ABSTAIN: NONE VAN G. TA NER,` MAYOR ATTEST: CHELLE D. KLASSI=N, CITY CLER CITY OF PALM DESERT, CALIFORNIA G:\CilyMgr\Ryan Stendelt\Staff Reports\20141January 231City reso re Freedom Dog Park - PA 4 2001 Project Bond Proceeds Funding Agree 1-23-14.doc rThir pPgP hor irtPr,tiorPlly hPer 1Pft blonk.1 sod EXHIBIT A RESOLUTION NO. 2014-04 CONTRACT NO. C33250B FREEDOM DOG PARK PROJECT BOND PROCEEDS FUNDING AGREEMENT This FREEDOM DOG PARK POJECT BOND PROCEEDS FUNDING AGREEMENT (this "Agreement"), dated as of _January 23_, 2014, is entered into by and between the City of Palm Desert (the "City") and the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency," and together with the City, the "Parties"). RECITALS: A. The Palm Desert Financing Authority (the "Financing Authority") previously issued its Tax Allocation Revenue Bonds (Project Area No. 4), Series 2001, in the principal amount of $15,695,000 (the "2001 Bonds"), pursuant to an Indenture of Trust, dated as of November 1, 2001, by and between the Financing Authority and BNY Western Trust Company, as trustee (the "Trustee"). B. Pursuant to the Loan Agreement, dated as of November 1, 2001 (the "Loan Agreement"), by and among the Financing Authority, the former Palm Desert Redevelopment Agency (the "Former RDA"), and the Trustee, proceeds of the 2001 Bonds were lent to the Former RDA as a loan (the "Loan"). C. The Former RDA caused a portion of the proceeds of the 2001 Bonds received as part of the Loan to be deposited into a Project Fund (the "2001 Project Fund"), which was established, and is held, by the Trustee pursuant to the Loan Agreement. D. Pursuant to the Loan Agreement, moneys in the 2001 Project Fund shall be disbursed from time to time to finance the cost of redevelopment projects in or of benefit to the Former Agency's Project Area No. 4 (the "Project Area"). E. As documented by the Official Statement, dated November 15, 2001, and the Certificate Regarding Compliance with Certain Tax Matters, dated as of November 28, 2001 (the "Tax Certificate"), it was intended, at the issuance of the 2001 Bonds, that the projects to be financed from moneys deposited in the 2001 Project Fund include, among others, the Freedom Dog Park project (including fencing alterations, landscaping, lighting and other related improvements) (the "Freedom Dog Park Project"). F. Pursuant to AB X1 26 (which became effective at the end of June 2011) and the California Supreme Court's decision in California Redevelopment Association, et al. v. Ana Matosantos, et al., 53 Cal.4th 231(2011), the Former RDA was dissolved as of February 1, 2012, and the Successor Agency was constituted. G. AB 1484, which became effective at the end of June 2012, amended and supplemented the provisions of AB X1 26. Together, AB X1 26 and AB 1484 are referred to in this Agreement as the "Dissolution Act." H. Pursuant to Section 34175(b) of the California Health and Safety Code ("HSC"), all assets, properties, contracts, leases, books and records, buildings, and equipment of the Former RDA, including all unspent proceeds of the 2001 Bonds remaining in the 2001 Project -1- EXHIBIT A RESOLUTION NO. 2014-04 CONTRACT NO. C33250B Fund (the "2001 Bond Proceeds"), transferred to the control of the Successor Agency by operation of law. I. According to HSC Section 34191.4, after the receipt by the Successor Agency of a finding of completion (the "Finding of Completion") issued by the California State Department of Finance (the "DOF") pursuant to HSC Section 34179.7, the 2001 Bond Proceeds shall be used for the purposes for which the 2001 Bonds were sold, in a manner consistent with the original bond covenants. J. By DOF's letter, dated May 15, 2013, the DOF informed the Successor Agency that the DOF has issued a Finding of Completion to the Successor Agency. K. There remains a balance of 2001 Bond Proceeds in the 2001 Project Fund (in the amount of $4,673,654 as of December 31, 2013). L. The Successor Agency desires to use a portion of the 2001 Bond Proceeds for completion of work with respect to the Freedom Dog Park Project. M. Pursuant to HSC Section 34177(1), the Successor Agency must prepare a Recognized Obligation Payment Schedule ("ROPS") for each six-month fiscal period ("ROPS Period"). The ROPS must be submitted to the Oversight Board of the Successor Agency (the "Oversight Board") and the DOF for approval. N. Pursuant to HSC Section 34191.4(c)(2), the expenditure of 2001 Bond Proceeds for an obligation must be listed on a ROPS. O. Because of the limited staffing of the Successor Agency and the traditional role and the established procedures of the City of Palm Desert (the "City") with respect to the awarding of public works contracts, the Successor Agency and the City desire to enter into this Agreement, for the City to perform or cause to be performed all work required to complete the Freedom Dog Park Project, with payment therefor to be made from the 2001 Bond Proceeds. P. Pursuant to HSC Sections 34178(a) and 34180(h), with the approval of the Oversight Board, the Successor Agency may enter into agreements with the City. Q. Resolution No. adopted by the Oversight Board on , 2014 approving the Successor Agency's execution and delivery of this Agreement was approved [deemed approved] by the DOF pursuant to HSC Section 34179(h) on , 2014. NOW, THEREFORE, THE PARTIES DO HEREBY AGREE AS FOLLOWS: Section 1. Subject to the provisions of this Agreement and with the funding provided pursuant to this Agreement, the City agrees to perform or cause to be performed all work required for the completion of the Freedom Dog Park Project, including but not limited to the preparation of designs, plans and specifications and all demolitions, construction and installations. The City shall perform such work in accordance with all applicable federal, state and local laws, rules and regulations. Subject to the covenants set forth herein, the City shall -2- r. - EXHIBIT A RESOLUTION NO. 2014-04 CONTRACT NO. C33250B have the sole discretion with respect to the design, planning, specification and the timing with respect to all components of the Freedom Dog Park Project. Section 2. (a) The City and the Successor Agency currently estimate that the dollar amount to be spent for the Freedom Dog Park Project during the period from January 1, 2014 through June 30, 2014 (the "ROPS 13-14B Period") is $100,000 (the "ROPS 13-14B Project Estimate"). (b) The Successor Agency shall list the ROPS 13-14B Project Estimate on its ROPS for the ROPS 13-14B Period ("ROPS 13-14B"), in as many line items on ROPS 13-14B as the Successor Agency deems appropriate. (c) Subject to the approval (and any modification) by the Oversight Board and the DOF of the ROPS 13-14B item(s) described in Section 2(b), at the commencement of the ROPS 13-14B Period, the Successor Agency shall transfer or caused to be transferred to the City an amount equal to the ROPS 13-14B Project Estimate from the 2001 Bond Proceeds on deposit in the 2001 Project Fund. Section 3. (a) The Parties acknowledge and agree that the 2001 Bond Proceeds shall be the sole source of the Successor Agency's payment for the completion of the Freedom Dog Park Project pursuant to this Agreement. The Parties also agree that the City's obligation with respect to the work for the Freedom Dog Park Project under this Agreement shall be limited to the extent that funding therefor is available from the 2001 Bond Proceeds. (b) At any time, if the City determines that the amount previously transferred by the Successor Agency pursuant to this Agreement is insufficient for the completion of the Freedom Dog Park Project, the City's Finance Director shall notify the Successor Agency, specifying the estimated dollar amount necessary for the completion of the Freedom Dog Park Project (the "Additional Funding Amount"). To the extent that sufficient unspent 2001 Bond Proceeds remain available, the Successor Agency shall list the Additional Funding Amount on the ROPS for the next available ROPS Period. Upon obtaining the Oversight Board's and the DOF's approval for such ROPS item(s), the Successor Agency shall transfer or caused to be transferred to the City the Additional Funding Amount from the 2001 Bond Proceeds as soon as practicable upon the commencement of the applicable ROPS Period. (c) Before the transfer of any Additional Funding Amount pursuant to Section 3(b) above, the City may, but is not obligated to, advance funds from sources available to City for the work necessary for the Freedom Dog Park Project (each such advance being a "City Advance"). Any Additional Funding Amount transferred by the Successor Agency pursuant to Section 4(b) shall first be used to reimburse the City for outstanding City Advances, and then to pay for other expenditures of the Freedom Dog Park Project. Section 4. To the extent the City still holds unspent 2001 Bond Proceeds transferred pursuant to this Agreement after the completion of the Freedom Dog Park Project (as determined by the legislative body of the City), the City shall return such unspent 2001 Bond Proceeds to the Successor Agency within a reasonable time after such determination. -3- EXHIBIT A RESOLUTION NO. 2014-04 CONTRACT NO. C33250B Section 5. The City covenants that it shall use the 2001 Bond Proceeds in a manner consistent with the covenants in the Loan Agreement and the Tax Certificate, including, but not limited to, any covenants regarding the tax-exempt status of interest on the 2001 Bonds under the Internal Revenue Code of 1986, as amended, and any regulations promulgated thereunder. Section 6. Each Party shall maintain books and records regarding its duties pursuant to this Agreement. Such books and records shall be available for inspection by the officers and agents of the other Party at all reasonable times. Section 7. The Parties agree to take all appropriate steps and execute any documents which may reasonably be necessary or convenient to implement the intent of this Agreement. Section 8. This Agreement may be amended from time to time by written instrument executed by both Parties. Section 9. No official, agent, or employee of the Successor Agency or the City, or members of the City Council, or members of the Successor Agency Board of Directors or Oversight Board shall be individually or personally liable for any payment hereunder in the event of any default or breach by the Successor Agency or the City, or for any amount which may otherwise become due to the City or Successor Agency, or successor thereto, or on any obligations under the terms of this Agreement. Section 10. This Agreement is made in the State of California under the Constitution and laws of the State of California, and is to be so construed. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURES TO FOLLOW' -4- EXHIBIT A RESOLUTION NO. 2014-04 CONTRACT NO. C33250B IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized officers. SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By JOHN M. WOHLMUTH, EXECUTIVE DIRECTOR ATTEST: RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY CITY OF PALM DESERT By ATTEST: RACHELLE D. KLASSEN, CITY CLERK CITY OF PALM DESERT, CALIFORNIA APPROVED: OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY By VAN G. TANNER, MAYOR ROBERT A. SPIEGEL, CHAIR Date: -5-