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ORDINANCE NO. ��� P��s�;;�-a 2�Q R��o�r�����/_��
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AN ORDINANCE OF THE CITY COUNCIL
DESERT, CALIFORNIA, AMENDING CHAPTER 17 OF THE PALM
DESERT MUNICIPAL CODE BY ADDING TITLE 17 RELATIVE TO
PROCEDURES FOR THE ISSUANCE AND SALE OF BONDS IN
CONNECTION WITH CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE
CALIFORNIA STREETS AND HIGHWAYS CODE
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. The Palm Desert Municipal Code is hereby amended by adding Title
� 17 to read as follows:
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"TITLE 17. PROCEDURES FOR THE ISSUANCE AND SALE O O, D I w
CONNECTION WITH CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE C LI I o
STREETS AND HIGHWAYS CODE
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CHAPTER 1. GENERAL PROVISIONS � �
CHAPTER 2. DETERMINATION TO ISSUE BONDS � � �
CHAPTER 3. ISSUANCE OF BONDS � ;
CHAPTER 4. FORM AND CONTENT OF BONDS r.�� c� ' ..w
CHAPTER 5. VARIABLE INTEREST RATE BONDS z � �' � � ''�
CHAPTER 6. BOND RECORDS AND PAYMENTS e. � � �
CHAPTER 7. BOND ANTICIPATION NOTES -+-'
CHAPTER 8. ADVANCE RETIREMENT OF BONDS a � 3
CHAPTER 9. REDEMPTION FUND DEFICIENCIES `� � �, i �
CHAPTER 10. SPECIAL RESERVE FUND � •.�
CHAPTER 11. MISCELLANEOUS PROVISIONS ►a �� �'
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17.01.010 Alternative method. This Title shall be deemed to provide a complete,
additional, and alternative method for doing the things authorized hereby, and shall be
regarded as supplemental and additional to the powers conferred by the City Charter
and other laws.
17.01.020 Power of City Council. The City Council, exercising the powers reserved
to the City under the Constitution of the State of California and its powers under the
Charter of the City, may determine that Bonds shatl be issued as provided in this Title to
be secured by Contractual Assessments levied pursuant to the Act. Such Bonds may
be serial or term Bonds, or both, and shall be issued and sold to assist in financing or
Ordinance No. 1175
refinancing Improvements or to reimburse the City for advances made to finance
Improvements.
The City may transfer in trust or assign for the benefit of any Bond owners, or take any
other action that the City Council deems necessary or desirable with respect to, all of
the right, title and interest of the City in the Contractual Assessment Agreements,
including the City's rights to receive the Contractual Assessments and any and all of the
other rights of the City under the Contractual Assessment Agreements as may be
necessary to enforce payment of such Contractual Assessments when due or otherwise
to protect the interest of the owners of the Bonds.
17.01.030 Definitions. Unless the particular provision or the context otherwise
requires, the definitions and general provisions contained in this Chapter shall govern
the construction of this Title.
(a) "Act" means Chapter 29 of Part 3 of Division 7 of the California Streets
and Highways Code, commencing with Section 5898.10.
(b) "Administrative Assessment" means the annual assessment levied on
each parcel to pay costs incurred by the City and not otherwise reimbursed which result
from the administration and collection of assessments or from the administration or
registration of any associated bonds and reserve or other related funds.
(c) "Bond", and any of its variants, means bonds, notes, commercial paper or
other evidences of indebtedness.
(d) "Contractual Assessment Agreements" means the agreements by and
between the City and property owners whereby the City has extended loans to such
property owners to finance Improvements to the owners' properties pursuant to the Act.
(e) "Contractual Assessments" means the assessments made pursuant to the
Act. "Contractual Assessments" do not include Administrative Assessments.
(� "City" means the City of Palm Desert.
(g) "City Clerk" means the person who is or acts as clerk of the City or any
person designated by such clerk to perform the duties of the clerk.
(h) "City Manager" means the City Manager of the City.
(i) "City Council" means the Council of the City.
(j) "Engineer" means the City officer appointed by the City Council to perform
the duties imposed on the engineer.
(k) "Improvement" or "Improvements" means all work and improvements,
authorized or undertaken by any property owner, which are authorized to be done under
the Act.
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Ordinance No. 1175
(I) "Resolution of Intention" means the resolution of intention adopted by the
City Council pursuant to Section 5898.20 of the Act.
(m) "Superintendent of Streets" means the City officer appointed by the City
Council to perform the duties imposed on the Superintendent of Streets.
(n) "Treasurer" means the City Treasurer.
(o) "Trust Indenture" means the trust indenture or other similar agreement to
be executed or the resolution to be adopted in connection with the issuance of Bonds.
17.01.040 Directory provisions of Title. The provisions of this Title relative to the
time or place of performance of official duty or relative to the form of any resolution,
notice, agreement, order, list, certificate of sale, deed or other instrument are directory
only.
17.01.050 California Code references. Any references to a California Code shall
be references to such law as it is amended from time to time.
17.01.060 Income from investments; payments to exclude interest on
obligations from federal gross income. Notwithstanding any other provision of this
Title, income realized from the investment of money on deposit in a fund or account
established pursuant to this Title may be used, at the option of the City Council, to pay
all or any portion of any amount required to be rebated to the United States.
CHAPTER 2
DETERMINATION TO ISSUE BONDS
17.02.010 Power of City Council. The City Council may determine that serial
Bonds, term Bonds, or both, shall be issued as provided in this Title to be secured by
Contractual Assessments or to reimburse the City for advances made to finance or
refinance Improvements.
In order to enhance the marketability of the Bonds, the City council may also arrange
with one or more banks or other financial institutions to provide credit enhancement
facilities, including but not limited to letters of credit, lines of credit, standby purchase
agreements and insurance policies, as an additional source of payment of the Bonds
and the resulting costs thereof may be treated as incidental expenses.
17.02.020 Resolution of Intention; contents. If the City Council determines that
Bonds shall be issued as provided in this Title, it shall, in the Resolution of Intention, do
all of the following:
(a) Declare that Bonds shall be issued pursuant to this Title to represent the
expenses of the Improvements or to reimburse the City for advances made to finance or
refinance Improvements.
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Ordinance No. 1175
(b) Specify whether the Bonds shall bear interest at a variable or fixed rate
and the rate or maximum rate of interest which the Bonds shall bear.
(c) Declare whether the City will obligate itself to advance available funds
from the City treasury to cure any deficiency which may occur in the funds and accounts
established for the payment of the Bonds.
17.02.030 Determination that Bonds not be subject to refunding until specified
date.
(a) The City Council may determine that Bonds issued pursuant to this Title
shall not be subject to refunding until a specified date in the Trust Indenture.
(b) This determination shall not apply to, or in any manner limit, advancement
of the maturity of any Bond or Bonds pursuant to the procedures of Chapter 7 of this
Title.
(c) This determination shall not apply to, or in any manner limit, the
redemption and payment of any Bonds pursuant to subsequent assessment
proceedings which provide for the payment in full of all amounts necessary to eliminate
any Contractual Assessment previously imposed.
17.02.040 Refunding Bonds. The City Council may issue Bonds for the purpose of
refunding any Bonds issued under this Title then outstanding pursuant to Article 11 of
Chapter 3 of Part 1of Division 2 of Title 5 of the California Government Code
(commencing with Section 53580).
CHAPTER 3
ISSUANCE OF BONDS
17.03.010 List of Assessments. The Superintendent of Streets shall make and file
with the Treasurer a complete list of all Contractual Assessments, which shall be
updated from time to time.
17.03.020 Determination of amount of assessments; delivery of Bonds. After
the City Council determines that Bonds shall be issued as provided in this Title, the
Treasurer shall determine the aggregate amount of Contractual Assessments and may
provide for the issuance of Bonds in such amounts and at such times as determined in
accordance with a resolution of the City Council.
17.03.030 Sale of the Bonds. The Bonds may be sold at public or private sale and
shall be sold in the manner determined by resolution of the City Council.
17.03.040 Effect of inability to issue Bonds secured by particular assessments.
If Bonds cannot be issued upon the security of any particular Contractual Assessments
because of a restraining order, injunction or other cause not applicable to other
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Ordinance No. 1175
Contractual Assessments, the issuance of Bonds upon the security of the Contractual
Assessments not affected by such restraining order, injunction or other cause, shall not
be delayed, and such Bonds may be issued in advance of the issuance of the Bonds so
affected.
CHAPTER 4
FORM AND CONTENT OF BONDS
17.04.010 Principal and interest payments. The Bonds shall be in such
denominations and payable at such time or times, in lawful money of the Unities States
of America, and at such interest rate or rates, either fixed or variable, as the City
Council shall determine by resolution.
Except as otherwise provided in the Trust Indenture, the Bonds shall bear
interest from the date of the Bonds on all sums unpaid, until the whole of the principal
sum and interest are paid.
17.04.020 Form, date and division of issue. The City Council shall prescribe the
form of the Bonds and shall fix the date of the Bonds. The City Council may divide the
principal amount of any issue into two or more divisions and fix different dates for the
payment of Bonds of each division. The Bonds of one division may be made payable at
different times than Bonds of any other division.
17.04.030 Maximum maturity date. The final series of installment of the Bonds
shall mature and be payable on a date which shall not exceed 39 years from the first
principal payment date on such Bonds.
17.04.040 Redemption; redemption premium. Except as otherwise provided in the
Resolution of Intention or the Trust Indenture, each Bond, or any portion of the Bond in
a fixed amount or any integral multiple of the fixed amount, shall be subject to
redemption in advance of its maturity on any interest payment date upon payment to the
registered owner of the principal and accrued interest to the date of redemption together
with a redemption premium equal to not more than five percent of the principal.
17.04.050 Bonds; signature, seal. The Bonds shall be signed by the City Manager
or Treasurer and attested by the City Clerk. The City Council may by order authorize
the use upon the Bonds of an engraved, printed, or lithographed signature of the City
Manager, Treasurer and the City Clerk in place of a signature by hand. It may also
authorize the seal to be placed in like manner on the Bonds.
17.04.060 Effect of issuance. The Bonds, by their issuance, shall be conclusive
evidence of the regularity of all proceedings had prior thereto under this Title and under
the Act.
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Ordinance No. 1175
CHAPTER 5
VARIABLE INTEREST RATE BONDS
17.05.010 Authority to issue variable interest rate Bonds. As an alternative to
any other authority, the City Council may, at its discretion, issue Bonds bearing a
variable interest rate pursuant to this Title. This Chapter does not alter or restrict
authority to authorize Contractual Assessments or issue Bonds pursuant to any other
provision of this Title or other law in any way. If the City Council in its discretion issues
Bonds bearing a variable interest rate pursuant to this Title, all provisions of the Title
shall apply to the proceedings, except as expressly pr,ovided in this Chapter.
17.05.020 Interest on unpaid assessments. Except as otherwise provided in the
Trust Indenture, interest on all Contractual Assessments shall run from the date of the
Bonds, and shall be computed for each interest pay period at the date determined
pursuant to the terms of the Bond for that interest pay period.
17.05.030 Variable interest rate on Bonds. The City Council may, by resolution,
specify that the interest rate on the Bonds may vary from time to time as determined by
an index or some other means prescribed in the resolution.
17.05.040 Conversion of Bonds to fixed interest rate. The City Council may, by
resolution, specify terms and conditions under which the Bonds may be converted to a
fixed interest rate or other interest rate mode.
17.05.050 Repurchase of Bonds; costs. The City Council may, by resolution,
specify terms and conditions under which the City agrees to repurchase the Bonds.
The City Council may secure a letter of credit or other instrument to secure payment or
repurchase of any Bonds, and the resulting costs thereof, including costs of initially
securing, maintaining, or making any payments arising from the exercise of, a letter of
credit or other instrument, may be treated as incidental expenses. The City Council
may engage a remarketing agent and an indexing agent, subject to terms and
conditions agreed to by the City Council, and the resulting costs may be treated as
incidental expenses.
CHAPTER 6
BOND RECORDS AND PAYMENTS
17.06.010 Place of Payment. The Bonds and interest shall be paid at the office of
the City Treasurer or of another paying agent designated by the City Council.
17.06.020 Redemption Fund. The Treasurer or paying agent designated by the
Treasurer or the City Council shall keep a redemption fund designated by the name of
the Bonds, in which there shall be placed all sums received from the collection of the
Contractual Assessments. The fund shall be considered a trust fund for the benefit of
the holders of the Bonds. The redemption fund shall be used for paying principal and
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Ordinance No. 1175
interest and redemption premium, if any, payments on the Bonds directly, or money in
the fund may be forwarded to the paying agent for these purposes. Under no
circumstances shall the Bonds or the interest thereon be paid out of any other fund. If
there is a surplus remaining in the redemption fund after payment of all Bonds and the
interest thereon, such surplus may be transferred to the City to be used for any lawful
purposes.
17.06.030 Bond register; cancellation of paid Bonds; retention. The Treasurer
or the designated paying agent shall keep a register in his or her office showing the
series, number, date, amount, rate of interest, and last known holder of each Bond. The
Treasurer or paying agent shall cancel and file each Bond which he or she pays. The
register and canceled Bonds shall be retained for five years beyond the last maturity of
the Bonds.
CAAPTER 7
BOND ANTICIPATION NOTES
17.0'1.010 Trust Indenture; issuance; maximum maturity date. The City Council
may, by Trust Indenture, borrow money in anticipation of the sale of Bonds which have
been authorized pursuant to this Title, but which have not been sold and delivered,
issue Bond anticipation notes therefor, and renew the notes from time to time. The
maximum maturity of any Bond anticipation notes, including the renewals thereof, shall
not exceed three years from the date of delivery of the original notes.
17.07.020 Source of principal and interest payments. The principal and interest
on the Bond anticipation notes may be paid from any money available for their payment.
Any portion of the principal or interest which is due and payable shall be paid from the
proceeds of the next sale of Bonds in anticipation of which the notes were issued.
17.07.030 Purpose; use of proceeds. The proceeds of Bond anticipation notes
issued pursuant to this Chapter may be used for any purpose for which the Bonds in
anticipation of which the notes were issued may be used.
17.07.040 Amount of issuance. The Bond anticipation notes shall not be issued in
any amount in excess of the aggregate amount of Bonds which the City Council has
been authorized to issue, less the amount of any Bonds of the authorized issue which
have been previously sold and less the amount of other Bond anticipation notes
previously issued and still outstanding.
17.07.050 Trust Indenture; call and redemption prior to maturity. The City
Council may provide, in its Trust Indenture authorizing the issuance of Bond anticipation
notes, that the note shall be subject to call and redemption prior to maturity, at the
option of the City Council, at the price or prices which are fixed in the Trust Indenture,
but not to exceed a premium of six percent of the par value of the note subject to
redemption. The Trust Indenture shall fix the method of giving notice of redemption to
the holders of the notes to be redeemed and the price or prices at which the note shall
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Ordinance No. 1175
be subject to redemption. Any notes that are subject to call and redemption prior to
maturity shall contain a recital to that effect on their face, and no note shall be subject to
call or redemption prior to its fixed maturity date unless it contains that recital.
17.07.060 Manner of issuance and sale. The Bond anticipation notes may be
issued and sold in the same manner as the Bonds.
17.07.070 Contents of notes and Trust Indenture. The Bond anticipation notes
and the Trust Indenture authorizing them may contain any provisions, conditions, or
limitations which a Trust Indenture of the City Council authorizing the issuance of Bonds
may contain.
17.07.080 Trust Indenture; remedy; anticipated Bonds not sold at time or in
amount specified; default. The City Council shall provide a remedy in its Trust
Indenture authorizing the issuance of Bond anticipation notes if the anticipated Bonds
cannot be sold at the time or in the amount specified in the Trust Indenture or if any
default occurs with respect to the notes.
CHAPTER 8
ADVANCE RETIREMENT OF BONDS
17.08.010 Assessment prepayment subaccount of Bond redemption fund;
deposits; disbursements. Upon receiving a partial or full prepayment of a Contractual
Assessment, the Treasurer shall deposit it in an assessment prepayment subaccount of
the Bond redemption fund. All prepayments may be commingled in a single account.
From the account, the Treasurer shall make disbursements as follows unless provided
otherwise in the Trust Indenture:
(a) The administrative fee, if any, shall be deposited in the general fund of the
City.
(b) Delinquent principal, interest, and penalties shall be transferred to the
redemption fund for the Bonds. If a special reserve fund has been established for the
Bonds and has been depleted on account of the delinquencies, the delinquent amounts
and penalties shall be transferred instead to the special reserve fund.
(c) The installment of principal due in the fiscal year of prepayment shall be
transferred to the redemption fund for the Bonds.
(d) Interest accrued to the next redemption date shall be transferred to the
redemption fund for the Bonds.
(e) The balance in the assessment prepayment account shall be used to
advance the maturity of Bonds to the next call date. The amount of Bonds to be retired
shall be the maximum for which principal and redemption premium may be paid in full
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Ordinance No. 1175
from the prepayment account. Accrued interest on Bonds to be retired shall be paid
from the redemption fund.
17.08.020 Notice of advanced maturity; service or mailing. Notice of advanced
maturity shall be given in writing to the holder of the Bond by personal service,
registered or certified mail. Such notice may be conditional and shall be made at least
30 days before the date fixed for advanced maturity, or such shorter period upon the
consent of the holder of the Bond that is subject to advanced maturity.
17.08.030 Surrender; payment; redemption premium; failure to surrender for
payment. If notice of advanced maturity is given, the Bond shall mature and become
payable on the date fixed for maturity in the notice. The holder of the Bond may, prior to
the date of advanced maturity, with the consent of the Treasurer, surrender it and
receive the principal and interest thereon to the date of payment together with the
redemption premium provided for the Bond. If the Bond has not been sooner
surrendered on the date fixed for advanced maturity, the Treasurer shall set aside to the
credit of the owner of the Bond the amount of principal and accrued interest then due on
the Bond together with the redemption premium and the Bond shall then be deemed to
have matured and interest shall cease to accrue on the Bond. The amount so set aside
shall upon demand and upon the surrender and cancellation of the Bond be paid to the
holder or owner of the Bond. �
17.08.040 Cost of notice of advanced maturity. To the extent fund are available
for such purpose, the cost of serving the notice of advanced maturity may be paid from
the redemption fund.
17.08.050 Notice covering more than one Bond. More than one Bond may be
covered in a single notice of advanced maturity.
17.08.060 Tender of other Bonds for cancellation; notice to bondholders. Prior
to the surrender of any Bond or the setting aside of any funds, the Treasurer may waive
and vacate any notice of advanced maturity upon being tendered for cancellation some
other Bond or Bonds of an equivalent amount and of a maturity not earlier than that
noticed, if notice of the Treasurer's intention so to do is first given, prior to the date of
advanced maturity, by mail or otherwise to the holder or owner of the Bond noticed for
advanced maturity and such holder or owner has not objected to such action.
17.08.070 Manner of selecting Bonds for retirement. The Treasurer shall select
Bonds for retirement in accordance with the redemption provisions of the Trust
Indenture.
17.08.080 Alternative procedures. Notwithstanding the foregoing provisions of the
Chapter, the City Council may by resolution establish alternative procedu�es for the
advance retirement of Bonds.
17.08.090 Obligation of City to cure deficiency; determination; declaration;
statement in Bonds. Before issuing Bonds pursuant to this Title, the City Council shall
determine, and shall declare in the Resolution of Intention, whether or not the City will
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Ordinance �o. 1175
obligate itself to advance available funds from the City treasury to cure any deficiency
which may occur in the Bond redemption fund.
The determination made pursuant to this section shall be clearly stated in the text
of the Bonds issued pursuant to this Title.
CHAPTER 9
REDEMPTION FUND DEFICIENCIES
17.09.010 Withholding payments; report to the City Council. If it appears to the
Treasurer that there is danger of an ultimate loss accruing to the holders of the Bonds
for any reason, he or she shall withhold payment on all matured Bonds and interest and
report the facts to the City Council so that proper action may be taken by the City
Council to equitably protect all holders.
17.09.020 Determinations. On receipt of the report, the City Council shall
determine whether in its judgment there will ultimately be insufficient money in the
redemption fund to discharge the unpaid Bonds and interest. If it determines that in its
judgment there will be no such shortage, it shall direct the Treasurer to pay matured
Bonds and interest as long as there is available money in the redemption fund. The
City Council may make other determinations and take other actions from time to time as
may be equitable and proper.
17.09.030 Proportionate payments. If the City Council determines that in its
judgment there will be a shortage in the redemption fund, it shall direct the Treasurer to
pay to the holders of all outstanding and unpaid Bonds such proportion thereof as the
amount of funds on hand bears to the total amount of the unpaid principal of the Bonds
and the interest which has accrued or will accrue thereon. Similar proportionate
payments shall thereafter be made periodically as moneys come into the redemption
fund.
17.09.040 Registration and cancellation of outstanding Bonds; proportionate
payments of principal and interest; notice to holders of unsurrendered Bonds. In
order to facilitate the making of proportionate payments, the holders of outstanding
Bonds shall surrender them to the Treasurer for registration and cancellation. Upon
cancellation each holder shall be credited with the amount of the holder's Bond so
canceled. Thereupon the Treasurer shall by warrant pay to each holder the
proportionate amount of principal and accrued interest due on his or her Bonds as may
be available from time to time out of the money in the redemption fund. Interest shall
cease on payments made on account of principal from the date of payment, but interest
shall continue to run on the unpaid principal at the rate specified in the Bonds until
payment thereof be made. No premiums shall be paid on payments made in advance
of the due date. If Bonds are not surrendered for registration and payment the
Treasurer shall give notice to the holder thereof by registered mail, at the holder's
address as last known to the Treasurer, of the amount available for payment.
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Ordinance No. 1175
Thereupon interest shall cease as to the amount so available for payment 10 days from
the date of mailing of the notice.
17.09.050 Temporary redemption fund deficiency; priority for payment. If a
deficiency occurs in the redemption fund with which to pay past due Bonds, past due
interest, or Bonds or interest which will become due during the current tax collecting
year, but it does not appear to the Treasurer that there will be an ultimate loss to the
bondholders, the Treasurer shall pay matured Bonds as presented and make interest
payments when due as long as there are available funds in the redemption fund, in
accordance with the provisions of the Trust Indenture.
17.09.060 Notice to holders of registered Bonds; failure to present for payment.
When funds become available for the payment of any Bond which was not paid upon
presentment, the Treasurer shall notify the holder thereof by registered mail to present
the Bond for payment. If the Bond is not presented for payment within 10 days after the
mailing of the notice, interest shall cease to run on the Bond.
CHAPTER 10
SPECIAL RESERVE FUND
17.010.010 Creation; amount. In any proceedings leading to the issuance of Bonds
pursuant to this Title, the City Council may include, as an incidental expense of the
proceedings, an amount to create a special reserve fund for the Bonds.
The amount so provided shall not exceed 10 percent of the total amount of
Contractual Assessments to be levied under the proceedings.
17.010.020 Advance payment of assessment; reduction of assessment levied on
parcel; ratio. Where a special reserve fund is created for an issue or series of Bonds
and the amount to create a special reserve fund was included in the Contractual
Assessment, the Contractual Assessment levied on any parcel for the payment of the
Bonds shall be reduced upon the prepayment following issuance of the Bonds, in whole
or in part, of the Contractual Assessment. The proportional reduction on the
Contractual Assessment shall equal the ratio of the total amount initially provided for the
special reserve fund to the total amount originally assessed in the proceedings for the
Bonds.
17.010.030 Transfer of sale proceeds to fund; trust fund. Upon receipt of the
proceeds from the sale of the Bonds, the amount so provided for the special reserve
fund pursuant to this Chapter shall be transferred to the fund. The special reserve fund
shall be identified by the name of the proceedings under which the Bonds are issued
and shall constitute a trust fund for the benefit of the bondholders, subject to and to be
administered in accordance with the provisions of this Chapter.
17.010.040 Availability of fund for transfer to redemption fund; reimbursement
from proceeds of redemption or sale. The money in the special reserve fund shall be
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Ordinance No. 1175
available for transfer into the redemption fund for the Bonds. The amount so advanced
shall be reimbursed from the proceeds of redemption or sale of the parcel for which
payment of delinquent installments was made from the special reserve fund.
17.010.050 Payment of assessment; transfer to redemption fund of amount
equal to assessment reduction. Whenever a Contractual Assessment is paid off
following the issuance of Bonds, there shall be transferred, from the special reserve
fund to the redemption fund, an amount equal to the reduction in the Contractual
Assessment determined pursuant to Section 17.010.020.
17.010.060 Adequacy of fund to retire Bonds; discontinuance of principal and
interest collection; liquidation; disposition of excess. Provided that the amount to
create the special reserve fund was included in the Contractual Assessment, whenever
the balance in the special reserve fund is sufficient to retire all remaining outstanding
Bonds in the issue, whether by advance retirement or otherwise, collection of the
principal and interest on the Contractual Assessments shall be discontinued and the
special reserve fund shall be liquidated in retirement of the Bonds.
In the event that the balance in the fund at the time of liquidation exceeds the
amount required to retire all outstanding Bonds in the issue or series, the excess shall
be apportioned to each parcel upon which the individual Contractual Assessment
remained unpaid at the time the balance in the special reserve fund was sufficient to
retire all outstanding Bonds in the issue. The payments shall be made in cash to the
respective owners of the parcels except that, if the excess is not greater than $1,000,
the excess may be transferred to the general fund of the City.
17.010.070 Temporary investments. Money in the special reserve fund may be
temporarily invested in any authorized investments pursuant to Article 1 (commencing
with Section 53600) of Chapter 4 of Part 1 of Division 2 of Title 5 of the California
Government Code, or in any authorized investments pursuant to law.
Any income realized from such investments shall be credited to the special
reserve fund, and any loss or expense resulting from such investment shall be charged
to that fund.
17.010.080 Use of fund; assessment credit; advance Bond retirement.
Notwithstanding any other provision in this Chapter, for the purposes of providing for
reduction of the amount of money in the special reserve fund during the term of the
Bonds, the City Council may, by Trust Indenture or resolution adopted prior to the
issuance of Bonds under this Title, provide that money in the special reserve fund,
including investment income, shall be used, in the amounts and at the times as the City
Council may determine, for either or both of the following:
(a) Credit upon the Contractual Assessment in the manner provided in the
Trust Indenture.
(b) Transfer to the redemption fund for advance retirement of the Bonds
pursuant to this Title.
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Ordinance No. 1175
The Trust Indenture or resolution may specify the terms and conditions, as the
City Council may determine to be reasonable, with respect to its authorization of any or
all of the uses.
CHAPTER 11
MISCELLANEOUS PROVISIONS
17.011.010 Errors in computation of amount due. No Bond, Contractual
Assessment, or installment thereof or of the interest or penalties thereon, or declaration
of default or deed shall be held invalid for any error in the computation of the proper
amount due on the same, if the error is found to be comparatively negligible, or is found
to be in favor of the owner of the real property affected thereby.
17.011.020 City ownership of bonds; waiver. So long as the City is the sole owner
of the Bonds, the City may waive any provisions of this Title.
17.011.030 Validation proceeding. An action to determine the validity of any
Contractual Assessments, Bonds or contracts may be brought by the City Council, or by
any person designated by the City Council, pursuant to Chapter 9 (commencing with
Section 860) of Title 10 of Part 2 of the California Code of Civil Procedure.
17.011.040 Liberal construction. This Title is adopted pursuant to the power
granted to the City the by City Charter and the Constitution of the State of California and
is an exercise by the City of its power as to municipal affairs and its police powers, and
this Title shall be liberally construed to uphold its validity under the laws of the State of
California.
17.011.050 Improvements are not public improvement. The proceedings under
the Act and the issuance of Bonds to finance the Improvements shall not subject the
City to liability under any state, federal or local law for any cause of action which may be
brought with respect to the Improvements installed or constructed pursuant to the Act.
Such Improvements shall at all times be private improvements owned, built, controlled,
operated and maintained by the private owners of the property upon which the
Improvements are made and will not be public improvements."
Section 2. Any provisions of the Palm Desert Municipal Code or appendices thereto or
any other ordinances of the City inconsistent herewith, to the extent of such
inconsistencies and no further, are hereby repealed or modified to the extent necessary
to effect the provisions of this ordinance.
Section 3. If any section, subsection, sentence, clause or phrase of this ordinance is
for any reason held to be invalid, illegal or unenforceable, such holding shall not affect
the validity of the remaining portions of this ordinance. The City council hereby declares
that it would have adopted this ordinance and each and every other section, subsection,
sentence, clause and phrase hereof not declared invalid, illegal or unenforceable
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Ordinance No. 1175
without regard to whether any portion of this ordinance would be subsequently declared
invalid, illegal or unenforceable.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm
Desert at its regular meeting held this day of November, 2008, by the following
vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
JEAN M. BENSON, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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