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HomeMy WebLinkAboutRes 05-77 Silver Spur Ranch Utility Undergrounding AD 01-01CITY OF PALM DESERT OFFICE OF THE CITY MANAGER MEMORANDUM TO: Honorable Mayor, City Council Members FROM: Pat Conlon, Special Projects Administrator DATE: September 2, 2005 SUBJECT: Silver Spur Ranch Utility Undergrounding Assessment District 01-01 Resolution No. 05-77Disposition of Surplus Funds Attachments: Resolution No. 05-77 Certificate of Completion Memo from Muni Financial Staff Recommendation: Adopt Resolution No. n%-7authorizing the disposition of approximately $86,034.00 in surplus bond proceeds for the above assessment district. Discussion: After all the work has been completed and bills paid, there is approx. $86,034.00 left in the account for this project. Streets and Highways Code Section 10427.1 provides for the disposition of surplus funds pursuant to this resolution. In summary, the disposition of the excess funds will involve a cash payment of approx. $300 per parcel to those parcels who have paid off their assessment in cash. The remaining parcels will have the excess funds applied to their assessment, which will lower their yearly assessment an average of 2.5% over the 25-year bond. Attached to this report is additional information on this issue, from Ms. Vazquez and Ms. Stabile from Muni Financial. Any questions please call me. Respectfully Submitted Pat(Conlon Special Projects Administrator Reviewed and Concur Paul Gibson, Director of Finance Carlos Orte , City Manager G 1C1tyMgr%Pat ConlonWemo Surplus Bond Proceeds 9.2-05 doc RESOLUTION NO. 05-77 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT DECLARING AND PROVIDING FOR THE DISPOSITION OF SURPLUS IN THE IMPROVEMENT FUND IN CONNECTION WITH THE SILVER SPUR RANCH UTILITY UNDERGROUNDING DISTRICT NO. 01-01 RECITALS: A. Pursuant to its Resolution No. 03-17, adopted on February 13, 2003 (the Resolution of Intention), the City Council declared its intention to order certain improvements(the "Improvements") and to form the Silver Spur Ranch Utility Undergrounding Assessment District No. 01-01(the "Assessment District") pursuant to the Municipal Improvement Act of 1913 (Streets and Highways Code Section 10000 et seec.)(the "Act"). B. The City Council conducted special assessment proceedings in accordance with its Resolution of Intention and pursuant to its Resolution No. 03-42, adopted on April 10, 2003, the City Council ordered the formation of the Assessment District and the Improvements and confirmed the assessments. Pursuant to its Resolution No. 03-70, adopted on May 22, 2003, the City Council issued bonds (the "Bonds") to finance the Improvements. C. The Improvements have been completed and the payment of all claims from the Improvement Fund established for the Assessment District (the "Improvement Fund") have been made and the City Engineer has filed with the Fiscal Agent for the Bonds a certificate stating that the Improvements have been completed and that all costs of the Improvements have been paid or are not required to be paid from the Improvement Fund. Surplus funds remain in the Improvement Fund. D. Streets and Highways Code Section 10427.1 provides that surplus funds remaining in the Improvement Fund by reason of the assessments may be used to call the 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 finds that the Improvements have been completed and that the payment of all claims from the Improvement Fund has been made or are not required to be paid from the Improvement Fund and hereby determines that the amount of surplus remaining in the Improvement Fund by reason of the assessments is approximately $86,034.00. The City's Director of Finance shall determine the exact amount of the surplus remaining in the Improvement Fund. P6401\0001\818004.2 Resolution No. 05-77 Section 2. Subject to any requirement to rebate amounts to the United States, the City Council hereby declares that the surplus remaining in the Improvement Fund shall be used to call outstanding Bonds prior to maturity in accordance with Sections 10427 and 10427.1 of the Streets and Highways Code and the City Council hereby directs the City Treasurer to provide written instructions to the Fiscal Agent to transfer the amount remaining in the Improvement Fund to the City. PASSED, APPROVED and ADOPTED this 22nd day of September, 2005, by the following vote: AYES: NOES: ABSENT: ABSTAIN: Buford Crites,Mayor ATTEST: Rachelle Klassen,City Clerk P6401\0001\818004.2 - 2 - Resolution No. 05-77 page 1 of 1 Conlon, Pat Subject: Surplus Improvement Funds in AD 01-01 Per our conversation regarding Assessment District 01-01 (Silver Spur) last Friday, the following summarizes our estimated savings calculations for the use of Surplus Improvement Funds in the amount of $86,034: As pursuant to the 1913 Act Streets and Highway Code Section 10427.D.2, when using Surplus Improvement Funds for a Bond Call/Lien Reduction the parcels that paid cash at the time of the formation of the district are entitled to their pro-rata share of the Surplus Amount. These 51 parcels, in addition to the two parcels which have since paid off their liens, are entitled to a total cash refund of $15,976 which averages out to a cash refund of $301 per parcel. The remaining 198 parcels can now benefit from a bond call using the remaining $70,058. Each parcel's remaining lien may be reduced by an average of $354, resulting in an average annual payment savings of approximately 2.5 % per parcel. This amount will be lower in the first few years and higher as the District matures. In total, the district can save approximately $101,397 including interest upon final maturity. The foregoing assumes that there would be no administrative costs taken from the surplus amount and that the District does not need to use any portion of these funds for the maintenance of the improvements as allowed by the Streets & Highways Code. The total savings for the District assumes a $70,000 bond call in March 2006, and that no other bond calls would be made between now and final maturity. Should you need to adjust any of these amounts, or have any questions, please do not hesitate to contact us. Adina Vazquez and Brittany Stabile MuniFinancial District Administrative Services (951) 587-3500 8/31/2005 Resolution No. 05-77 Certificate of the City Engineer Pursuant to Section 4.04 (C) of the Fiscal Agent Agreement By and Between The City of Palm Desert and BNY Western Trust Company Entered into as of June 1, 2003 Regarding Silver Spur Ranch Utility Undergrounding Assessment District No. 0 1 -0 1 Limited Obligation Improvement Bonds Series 2003 I, Mark Greenwood, City Engineer of the City of Palm Desert (the "City"), HEREBY CERTIFY as follows: I am the City Engineer of the City of Palm Desert. 2. The project described in Section 1.03 of the above -referenced Fiscal Agent Agreement has been completed and all costs of that project have been paid or are not required to be paid from the Improvement Fund created by Section 4.04 of that Fiscal Agent Agreement. IN WITNESS WHEREOF, I have hereunder set my hand this /ZLi day of eptember, 2 Mark Greenwo d P.E. RCE 57� City Engineer City of Palm Desert P6401 \ 1031 \838058.1