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HomeMy WebLinkAboutCC RES 2019-526. RESOLUTION NO. 2019-52 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DETERMINING AND PROVIDING FOR THE DISPOSITION OF A REFUND FROM SOUTHERN CALIFORNIA EDISON IN CONNECTION WITH THE CITY OF PALM DESERT HIGHLANDS UNDERGROUNDING DISTRICT NO. 04-01 RECITALS: A. Pursuant to its Resolution No. 06-49, adopted on April 13, 2006 (the "Resolution of Intention"), the City Council declared its intention to order certain improvements (the "Improvements") and to form the Highlands Utility Undergrounding Assessment District No. 04-01(the "Assessment District") pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Section 10000 et seq.) (the "Act"). B. The City Council conducted special assessment proceedings in accordance with its Resolution of Intention, and pursuant to its Resolution No. 06-86, adopted on June 8, 2006, the City Council ordered the formation of the Assessment District and the making of the Improvements and confirmed the assessments. Pursuant to its Resolution No. 06-114, adopted on July 13, 2006, the City Council issued bonds (the "Bonds") to finance the Improvements, and the City Treasurer invested in and purchased the Bonds from the City. C. The Improvements were completed in 2009, and the City Council, pursuant to its Resolution No. 09-62, adopted on August 27, 2009, declared and determined that surplus funds in the amount of approximately $1,107,910 remaining in the Improvement Fund at such time by reason of the assessments were to be used to call outstanding Bonds prior to maturity in accordance with the Act. A portion of outstanding Bonds were so called with such surplus funds on September 2, 2009. D. Pursuant to its Resolution No. 06-49, adopted on April 13, 2006, the City Council declared its intention to enter into an agreement with Southern California Edison ("SCE") pursuant to Chapter 2 of the Act, Sections 10109 and 10110 of which provide that improvements to be owned, managed or controlled by a regulated public utility may be acquired or installed under the Act and that the City shall enter into an agreement with the public utility providing for such acquisition or installation. E. Pursuant to the authority conferred by Chapter 2 of the Act and Resolution No. 06-49, the City Council approved on August 24, 2006, and the City entered into, an agreement with SCE entitled, "Agreement for Replacement of Overhead Distribution and Telecom Facilities with Underground Facilities" (Contract No. C24460A) (the "SCE Agreement"), which provided for the City to advance to SCE the amount of $818,853.45, such amount being the estimated amount necessary for SCE to perform the work of relocating and undergrounding certain of the Improvements approved by Resolution No. 06-86. In accordance with the Act, Resolution No. 06-49, and the SCE P6401-1034\2069427v1.doc -1- RESOLUTION NO. 2019-52 Agreement, the City advanced such amount to SCE in September 2006 from proceeds of the Bonds. F. In 2016, SCE provided to the City a refund in the amount of $109,526.23 (the "SCE Refund"). G. Section 10110.1 of the Act provides that any refund payments received by the City under the SCE Agreement may be used to call outstanding Bonds. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS: Section 1. The City Council hereby determines and declares that the SCE Refund shall be used to call outstanding Bonds prior to maturity in accordance with Section 10110.1 of the Streets and Highways Code. Section 2. The City Treasurer and all other 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 consummate the bond call herein authorized and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, and all actions heretofore taken by the officers, employees and agents of the City with respect to the transactions set forth above are hereby approved, confirmed and ratified. PASSED, APPROVED, AND ADOPTED at a regular meeting of the Palm Desert City Council held on this 11th day of July 2019, by the following vote, to wit: AYES: HARNIK, JONATHAN, KELLY, NESTANDE, AND WEBER NOES: NONE ABSENT: NONE ABSTAIN: NONE ATTEST: RAC EL E D. KLASSEN`, CITY CLERK CITY OF PALM DESERT, CALIFORNIA SUSAN MARIE WEBER, MAYOR -2- P6401-1034\2069427v1.doc