HomeMy WebLinkAboutEIP - Funding of Phase 2 Loans CITY OF PALM DESERT
STAFF REPORT
REQUEST: ADOPT CITY COUNCIL RESOLUTIONS o9-2 , 09-3 , AND
REDEVELOPMENT AGENCY RESOLUTION NO. 555
REGARDING FUNDING OF PHASE 2 LOANS FOR THE ENERGY
INDEPENDENCE PROGRAM.
SUBMITTED BY: PAT CONLON, DIRECTOR OF OFFICE OF ENERGY
MANAGEMENT
DATE: JANUARY 22, 2009
CONTENTS: ORDINANCE NO. 1175
RESOLUTION NOS. 09-2 , 09-3 , 555
EIP PHASE 2 LOAN RESERVATION LIST
Recommendation:
That the City Council adopt the following resolutions:
1. Resolution No. 09-2 amending Resolution No. 08-75 regarding its intention
to finance distributed generation renewable energy sources and energy
efficiency improvements;
2. Resolution No. 09-3 providing for the issuance and sale of limited obligation
improvement bonds in principal amount not to exceed two million five hundred
thousand dollars ($2,500,000.00), approving as to form and authorizing the
execution and delivery of a bond purchase agreement in connection
therewith, and authorizing certain other matters relating thereto;
That the Palm Desert Redevelopment Agency adopt the following resolution:
3. Adopt Agency Resolution NO. 555 authorizing the Redevelopment
Agency's investment in and purchase of the City of Palm Desert's Energy
Independence Program, Limited Obligation Improvement Bonds, Series
2009A (Taxable), approving as to form and authorizing the execution and
delivery of a bond purchase agreement in connection therewith, and
authorizing certain other matters relating thereto.
Discussion:
Approval of the above items will allow, through the city's issuance of bonds (the "Series
2009A Bonds") and the RDA's purchase of such Series 2009A Bonds on a private
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placement basis as an investment, the city's use of funds received from the RDA in the
bond sale to provide the initial $2.5 million out of the $5 million planned to finance phase
2 of the city's Energy Independence Program (EIP). Phase 1 of the EIP was funded by
$2.5 million from the city's General Fund. During phase 2 of the program, there are
applications securing $3.25 million of the anticipated $5 million dollars for approved
improvements, and it is expected that the total $5 million will be reserved within the next
two months.
The City of Palm Desert will issue the Series 2009A Bonds which will subsequently be
purchased by the RDA on an incremental basis until the full $2.5 million is spent to fund
Phase 2 of the energy loans. The interest paid to the RDA will be secured by the
assessments from the 1 st phase assessments. This methodology will make both
agencies whole without causing cash flow issues for either agency. The interest rate
paid to the RDA will be lower than the interest received by the assessments resulting in
a positive cash flow which can be used as reserves for the Energy Loan Program and to
fund additional loans. A detailed discussion of this summary follows.
Ordinance No. 1175 (copy attached), which enables this transaction, was adopted by
the Council and became effective on January 15, 2009. Title 17 was added to the
Municipal Code by Ordinance No. 1175, and Resolution No. 09_2 amends previously
adopted Resolution No. 08-75 (the resolution of intention) to permit the issuance of
bonds under Title 17, as complete alternative authority in addition to the authority to
issue bonds under Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code (the "1915 Act").
In return, the RDA will receive interest earnings on the Series 2009A Bonds purchased
as an investment from the city.
The Series 2009A Bonds will be repaid from assessments levied on the parcels of the
participant homeowners in Phase 1 of the EIP program, pursuant to the loan agreement
entered into by each participant. Each EIP loan earns interest at a rate of 7%, which is
included in the amounts levied for the assessments.
Because only approximately $780,000 of the Phase 1 loans have been funded to date,
the Series 2009A Bonds, if issued, will be issued in the form of a draw-down bond. With
a draw-down bond, the principal amount will be disbursed by the RDA to the city in
increments, corresponding to loans actually funded by the city to homeowners (and
assessments finalized and levied on each parcel), until the full $2,500,000 (or the
maximum amount actually funded under the Phase 1 loan agreements) has been
advanced. Interest only accrues on the principal amount of the Series 2009A Bonds
that has actually been advanced by the RDA to the city.
There is no bond insurance or other credit enhancement for the Series 2009A Bonds.
However, the Series 2009A Bonds will pay interest at a rate lower than the interest rate
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charged to EIP participants on loans (7%) in order to maintain reserve amounts, which
may be advanced in the event of possible cash flow issues if assessments are
delinquent. In addition, the assessments in turn are secured by a lien recorded on the
title of each participating property, so that delinquent assessments may be repaid
through foreclosure proceedings undertaken by the city, if ordered by the Council in
accordance with governing law, or undertaken by the County in its due course of
handling foreclosures on tax-defaulted properties under applicable law.
The success of the State of California's first energy loan program was evident by the
fact that the first phase of the EIP was sold out in less than four weeks. Since that time,
October 2008, the city's Office of Energy Management has continued to accept loan
applications in anticipation of phase 2 of the EIP.
At the time this report was prepared 92 loan applications totaling over $3.25 million
have been submitted. Attached to this report is a list detailing those applications.
Contracts for Phase 2 loan applications will be entered into and funded as monies from
the Series 2009A bonds are drawn down and advanced to the city.
Future Actions:
The Council may be asked at a later date to adopt one or more additional resolution(s)
for the issuance of additional bonds to be purchased by the RDA in order to provide
additional funds for the $5 million total planned for phase 2 of the EIP.
Future Lonq-Term Fundinq:
As requested by the City Council, the Finance Department is preparing a Request For
Proposal (RFP), which is anticipated to be completed in approximately 2 weeks. This
RFP will be sent out to various third-party lenders identified by the Finance Department
as being interested in providing financing to the city's EIP loan program. It is anticipated
that the RFP's will return to the Council for review, recommendation, and approval in
March 2009.
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RESOLUTION NO. 09-2
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT AMENDING RESOLUTION NO. 08-75 REGARDING ITS
INTENTION TO FINANCE DISTRIBUTED GENERATION RENEWABLE
ENERGY SOURCES AND ENERGY EFFICIENCY IMPROVEMENTS
RECITALS:
WHEREAS, on July 24, 2008, the City Council (the "City Council") of the City of
Palm Desert (the "City") adopted its Resolution No. 08-75 (the "Resolution of Intention"),
declaring its intention to finance distributed generation renewable energy sources and
energy efficiency improvements through the use of contractual assessments pursuant to
Chapter 29 of Part 3 of Division 7 of the California Streets and Highways Code (the
"Act"); and
WHEREAS, the Resolution of Intention ordered the Director of the City's Office of
Energy Management (the "Director") to make and file with the City Clerk a report (the
"Report") in accordance with Section 5898.22 of the Act and the Director has filed the
Report with the City Clerk; and
WHEREAS, the Resolution of Intention set the time and place for a hearing on the
proposed Energy Independence Program (the "Program") as described in the Report; and
WHEREAS, the Resolution of Intention described the proposed arrangements for
funding the Program, including certain parameters in the event that the City determines
to issue improvement bonds pursuant to Streets and Highways Code Section 5898.28 to
represent assessments; and
WHEREAS, following notice duly given in accordance with law, the City Council
held a public hearing on August 28, 2008 regarding the Program as described in the
Report; and
WHEREAS, following the public hearing, also on August 28, 2008, pursuant to its
Resolution No. 08-89, the City Council established the Program, confirmed contractual
assessments to be levied against properties in the City within the parameters of the
Report, and amended Section 6 of the Resolution of Intention regarding the issuance of
bonds; and
WHEREAS, on December 11, 2008, the City Council adopted Ordinance
No. 1175, an Ordinance amending Chapter 17 of the City's Municipal Code by adding
Title 17 ("Title 17") relative to alternative procedures for the issuance and sale of bonds
in connection with the Act; and
WHEREAS, the City Council desires to amend the Resolution of Intention to
provide for alternative proposed arrangements for funding the Program pursuant to Title
17, including certain parameters in the event that the City determines to issue
improvement bonds pursuant to Title 17 to represent assessments;
Resolution No. 09-2
Page 2 of 3
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY
THE CITY COUNCIL OF THE CITY OF PALM DESERT, AS FOLLOWS:
Section 1. The above recitals are all true and correct.
Section 2. Section 6 of Resolution No. 08-75 is hereby amended and restated in its
entirety to read as follows:
"The proposed arrangements for financing or refinancing the contractual
assessment financing program are briefly described as follows: The City may issue
bonds pursuant to Chapter 29 or Title 17 of the Palm Desert Municipal Code ("Title 17"),
the principal and interest of which would be repaid by contractual assessments.
Alternatively, the City may advance its own funds to finance work to be repaid through
contractual assessments, and may from time to time sell bonds, notes, certificates of
participation, or other forms of indebtedness to reimburse itself for such advances. The
proposed financing arrangements may include the lease-purchase of public facilities by
the City pursuant to a lease or other contractual arrangement with a public financing
authority or non profit entity or other financing elements as may be determined
necessary or useful to the financing of the contractual assessment program.
In the event improvement bonds will be issued pursuant to Streets and Highways
Code Section 5898.28 to represent assessments, all of the following will apply:
(a) Division 10 (commencing with Section 8500) of the Streets and Highways
Code ("Division 10") shall apply to any bonds issued pursuant to Section
5898.28, insofar as that division is not in conflict with Chapter 29.
(b) Provision is hereby made for the issuance of improvement bonds, in one
or more series.
(c) Notice is hereby given that serial bonds or term bonds or both to
represent unpaid assessments, and to bear interest at the rate of not to
exceed 12 percent per year, or such other amount authorized by law,
payable semiannually, shall be issued hereunder in one or more series in
the manner provided by the Division 10 (to the extent not in conflict with
Chapter 29), and the last installment of bonds shall mature a maximum of
39 years from the second day of September next succeeding 12 months
from their date.
(d) The City Council hereby determines and declares that the City will not
obligate itself to advance available funds from the City treasury to cure
any deficiency which may occur in the bond redemption fund.
(e) The City Council hereby determines that the principal amount of bonds
maturing or becoming subject to mandatory prior redemption each year
shall be other than an amount equal to an even annual proportion of the
aggregate principal amount of the bonds, and the amount of principal
maturing or becoming subject to mandatory prior redemption in each year
plus the amount of interest payable in that year shall be an aggregate
amount that is substantially equal each year, except for the moneys
falling due on the first maturity or mandatory prior redemption date of the
bonds which shall be adjusted to reflect the amount of interest earned
from the date when the bonds bear interest to the date when the first
interest is payable on the bonds.
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Resolution No. 09-2
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(fl With respect to the procedures for collection of assessments and the
advance retirement of bonds, the City Council proposes to proceed under
the provisions of Part 11.1 of Division 10 (commencing with Section 8670
of the Streets and Highways Code).
In the event improvement bonds will be issued pursuant to Title 17 to represent
assessments, all of the following will apply:
(x) Notice is hereby given that serial bonds or term bonds or both to
represent unpaid assessments, and to bear interest at a fixed rate of not
to exceed 12 percent per year, or such other amount authorized by law,
payable semiannually, shall be issued hereunder in one or more series in
the manner provided by Title 17, and the last installment of bonds shall
mature a maximum of 39 years from the first principal payment date on
such bonds.
(y) The City Council hereby determines and declares that the City will not
obligate itself to advance available funds from the City treasury to cure
any deficiency which may occur in the bond redemption fund."
PASSED, APPROVED, AND ADOPTED this 22nd day of January, 2009, by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAI N:
ROBERT A. SPIEGEL, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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RESOLUTION NO. 09-3
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM DESERT
PROVIDING FOR THE ISSUANCE AND SALE OF LIMITED OBLiGATION
IMPROVEMENT BONDS IN PRINCIPAL AMOUNT NOT TO EXCEED TWO
MILLION FIVE HUNDRED THOUSAND DOLLARS ($2,500,000), APPROVING
AS TO FORM AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
BOND PURCHASE AGREEMENT IN CONNECTION THEREWITH, AND
AUTHORIZING CERTAIN OTHER MATTERS RELATING THERETO
RECITALS:
A. The City Council of the City of Palm Desert, California (the "City") by its
Resolution No. 08-75 (the "Resolution of Intention") declared its intention to establish the City of
Palm Desert Energy Independence Program (the "EIP") to finance the acquisition and
construction or installation of distributed generation renewable energy sources and energy
efficiency improvements (the "Improvements") on or in properties in the City through contractual
assessments pursuant to Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code, commencing with Section 5898.10, (the "Act") and ordered the preparation and
filing of a report (the "Report") with the City Council and provided that bonds may be issued
under the Resolution of Intention pursuant to the provisions of the Act or, as the Resolution of
Intention has heretofore been amended by Resolution No. 09-2, pursuant to the provisions of
Title 17 (the "Municipal Code") of the Palm Desert Municipal Code as it may be amended from
time to time.
B. Following notice duly given in accordance with law, the City Council held
a public hearing regarding the EIP as described in the Report.
C. Following the public hearing, pursuant to its Resolution No. 08-89, the
City Council established the EIP and confirmed contractual assessments to be levied against
properties in the City within the parameters of the Report.
D. Pursuant to the EIP, the City has entered into contractual assessment
agreements (each, an "Contractual Assessment Agreement") with property owners whereby the
City has extended loans (each, a "Loan") to property owners to finance Improvements to the
owners' properties.
E. Pursuant to the Contractual Assessment Agreements, the property
owners who are parties to such agreements have agreed to repay the Loans through the levy of
assessments by the City against the property owners' properties pursuant to Section 5898.30 of
the Act (each, an "Assessment").
F. The City advanced $2.5 million of its own funds to the "Energy
Independence Fund," a special trust fund established and held by the City for the purpose of
extending Loans to property owners to finance Improvements to the owners' properties.
G. As of the date hereof, the City has disbursed approximately $780,000
from the Energy Independence Fund for Loans and reasonably expects, with respect to the
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RESOLUTION NO. 09-3
balance of the Loans entered into before and including the date hereof, that such Loans will be
funded from the Energy Independence Fund within the next 6 months.
H. The City Council desires to issue its City of Palm Desert, Energy
Independence Program, Limited Obligation Improvement Bonds, Series 2009A (Taxable) (the
"Bonds") under and pursuant to the Municipal Code to reimburse the City for such advance to
the Energy Independence Fund, with such reimbursement advanced to the City as funds are
disbursed from the Energy Independence Fund for Loans.
I. In order to effectuate the sale of the Bonds, the City Council desires to
approve the form of, and authorize the execution and delivery of, a bond purchase agreement
(the "Purchase Agreement"), the form of which is on file with the City Clerk.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION; AUTHORIZATION
AND PURPOSE OF BONDS; EQUAL SECURITY.
Section 1.1. Definitions. Unless the context otherwise requires, the following
terms shall, for all purposes of this Resolution and of any Supplemental Resolution and of the
Bonds, and of any certificate, opinion or other document herein mentioned, have the following
meanings:
"AcY' means Chapter 29 of Part 3 of Division 7 of the California Streets and
Highways Code, commencing with Section 5898.10.
"Advance" means the principal amount disbursed by the Owner to the City
pursuant to a written request for disbursement in substantially the form attached hereto as
Exhibit B and in accordance with Section 2.3 hereof.
"Agency" means the Palm Desert Redevelopment Agency.
"Assessment Installments" means the installments of principal, interest and
premium, if any, to be paid on the unpaid Assessments by the owners of real property as
provided by the Contractual Assessment Agreements. The term "Assessment Installments"
does not include (i) the prepayment premium paid after the fifth (5th) anniversary of the Bond
Date by property owners pursuant to Section 1(f) of the Contractual Assessment Agreements or
(ii) the "Annual Administrative AssessmenY' paid by property owners pursuant to Section 1(d) of
the Contractual Assessment Agreements.
"Assessment Revenues" means the revenues received by the City in each Fiscal
Year from the collection of the annual Assessment Installments, including any interest and
penalties thereon and the proceeds of the exercise of any of the remedies for delinquent
payments available hereunder or under the Act.
"Assessments" means the unpaid assessments levied by the City pursuant to the
Act under the proceedings taken pursuant to the Resolution of Intention, constituting a first lien
and charge upon real properties in the City as provided by the Contractual Assessment
Agreements.
2
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"Authorized Investments" means any obligation in which the City may lawfully
invest its funds.
"Authorized Representative of the City" means the Mayor, the City Manager and
any other person designated by such officers and authorized to act on behalf of the City
pursuant to this Resolution or any Supplemental Resolution.
"Bond Date" means the dated date of the Bonds, which shall be the Closing
Date.
"Bonds" means the limited obligation improvement bonds authorized by and at
any time Outstanding pursuant to the provisions of this Resolution and as designated pursuant
to Section 2.3 hereof.
"Business Day" means any day other than (i) a Saturday or a Sunday or(ii) a day
on which banking institutions in the State or the Federal Reserve System are authorized or
obligated by law or executive order to be closed.
"City" means the City of Palm Desert, California.
"City Council" means the City Council of the City.
"City Manager" means the City Manager of the City.
"City Treasurer" means the City Treasurer of the City.
"Closing Date" means the date of delivery of the Bonds to or upon the order of
the Purchaser.
"Contractual Assessment Agreements" means the agreements by and between
the City and property owners, each dated as of a date between August 29, 2008 and January
22, 2009, inclusive, whereby the City has extended Loans to such property owners to finance
Improvements to the owners' properties.
"County" means the County of Riverside, California.
"Debt Service Schedule" means, collectively or each individually, as the context
may require, the debt service schedules appended to each Bond, in substantially the form set
forth in Exhibit A hereof.
"Energy Independence Fund" means the fund by that name described in Recital
F herein.
"Federal Securities" means those securities described in Sections 1360
and 1360.1 of the California Financial Code and includes United States Treasury notes, bonds,
bills or certificates of indebtedness, or obligations for which the faith and credit of the United
States are pledged for the payment of principal and interest, including the guaranteed portions
of small business administration loans so long as the loans are obligations for which the faith
and credit of the United States are pledged for the payment of principal and interest.
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RESOLUTION NO. 09-3
"Fiscal Year" means any twelve-month period extending from July 1 st in one
calendar year to June 30th of the succeeding calendar year, both dates inclusive, or any other
twelve-month period selected and designated by the City as its official fiscal year period.
"Improvements" means the qualifying distributed generation renewable energy
sources and energy efficiency improvements acquired and constructed or installed on or in
properties in the City pursuant to the Contractual Assessment Agreements.
"Independent Public Accountant" means any certified public accountant or firm of .
certified public accountants appointed and paid by the City or the Agency, who, or each of
whom (i) is in fact independent and not under domination of the City or the Agency; (ii) does not
have any substantial interest, direct or indirect, in the City or the Agency; and (iii) is not
connected with the City or the Agency as an officer or employee of the City or the Agency but
who may be regularly retained to make annual or other audits of the books of, or reports to, the
City or the Agency.
"Interest Payment Date" means March 2 and September 2 in each year,
beginning March 2, 2010 and continuing thereafter so long as any Bonds remain Outstanding;
provided, however, that, if any such day is not a Business Day, interest up to the Interest
Payment Date will be paid on the Business Day next succeeding such date.
"Loans" has the meaning provided in Paragraph D of the Recitals herein.
"Maturity Date" means the date specified in any Bond on which the principal of
such Bond becomes due and payable.
"Municipal Code" means Title 17 of the Palm Desert Municipal Code as it may be
amended from time to time, relating to a complete, additional, and alternative method for issuing
bonds to be secured by Contractual Assessments levied pursuant to the Act.
"Outstanding", when used as of any particular time with reference to Bonds,
means (subject to the provisions of Section 9.6) all Bonds theretofore executed, issued and
delivered by the City under this Resolution except (i) Bonds theretofore cancelled by the City
Treasurer or surrendered to the City Treasurer for cancellation, (ii) Bonds paid and discharged
pursuant to the terms of Section 6, and (iii) Bonds in lieu of or in substitution for which other
Bonds shall have been executed, issued and delivered pursuant to this Resolution.
"Owner" when used with respect to any Bond, means the person in whose name
the ownership of such Bond is registered on the Registration Books maintained by the City.
"Principal Payment Date" mean September 2 of each year, commencing
March 2, 2010.
"Purchaser" means the Agency.
"Record Date" means, with respect to any Interest Payment Date, the fifteenth
day of the calendar month immediately preceding the applicable Interest Payment Date,
whether or not such day is a Business Day.
4
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RESOLUTION NO. 09-3
"Redemption Date" means, with respect to any Bonds, the date on which such
Bonds have been called for redemption pursuant to the terms of this Resolution prior to their
Maturity Date.
"Redemption Fund" means the fund by that name created and established
pursuant to Section 4.2 hereof.
"Redemption Notice" has the meaning provided in Section 3.4 hereof.
"Registration Books" means the records maintained by the City Treasurer
pursuant to Section 2.9 hereof for the registration and transfer of ownership of the Bonds.
"Resolution" means this Resolution and includes subsequent amendments
hereof and any Supplemental Resolution.
"Resolution of Intention" means Resolution No. 08-75, as amended by Resolution
No. 08-89 and Resolution No. 09-2 of the City Council.
"State" means the State of California.
"Supplemental Resolution" means any resolution adopted by the City Council
amendatory of or supplemental to this Resolution.
Section 1.2. Rules of Construction. All references in this Resolution to
"Sections," and other subdivisions, unless indicated otherwise, are to the corresponding
Sections or subdivisions of this Resolution; and the words "herein," "hereof," "hereunder," and
other words of similar import refer to this Resolution as a whole and not to any particular Section
or subdivision hereof.
Section 1.3. Authorization and Purpose of Bonds. The City has reviewed all
proceedings heretofore taken relative to the authorization of the Bonds and has found, as a
result of such review, and hereby finds and determines that all things, conditions and acts
required by law to exist, happen and be performed precedent to and in the issuance of the
Bonds do exist, have happened and have been performed in due time, form and manner as
required by law, and the City is now authorized, pursuant to each and every requirement of law,
to issue the Bonds in the manner and form as in this Resolution provided. The City Council
hereby authorizes the issuance of the Bonds pursuant to the Municipal Code and this
Resolution for the purpose of reimbursing the City for funds that the City advanced to make
Loans to finance the Improvements.
Section 1.4. Equal Securitv. In consideration of the acceptance of the Bonds by
the Owners thereof, this Resolution shall be deemed to be and shall constitute a contract
between the City and the Owners of the Bonds; and the covenants and agreements herein set
forth to be performed on behalf of the City shall be for the equal and proportionate benefit,
security and protection of all Owners of the Bonds without preference, priority or distinction as to
security or otherwise of any of the Bonds over any of the others by reason of the number or date
thereof or the time of sale, execution or delivery thereof, or otherwise for any cause whatsoever,
except as expressly provided therein or herein.
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RESOLUTION NO. 09-3
SECTION 2. THE BONDS.
Section 2.1. Eaualitv of Bonds, Pledqe.
(a) The City hereby pledges, in trust for the protection and security of the
Owners, all of its right, title and interest in the Assessment Revenues, and all other funds,
accounts and sub-accounts created hereunder for the payment of principal of, premium (if any),
and interest on the Bonds. Pursuant to the Municipal Code and this Resolution, the Bonds shall
be and are equally secured by a pledge of and lien upon the Assessment Revenues, and the
amounts on deposit in the aforementioned funds and accounts.
(b) The Bonds and interest thereon are not payable from the general funds of
the City. Neither the credit nor the taxing power of the City is pledged for the payment of the
Bonds or the interest thereon, and no Owner of the Bonds may compel the exercise of any
taxing power by the City or force the forfeiture of any of its property. The principal of, and
premium (if any) and interest on the Bonds are not a debt of the City nor a legal or equitable
pledge, charge, lien or encumbrance upon any of its property, or upon any of its income,
receipts or revenues, other than the Assessment Revenues and the funds described in
Section 2.1(a) above.
Section 2.2. Collection of Assessments. The Assessment Installments shall be
payable as provided in the Contractual Assessment Agreements and shall be payable in the
same manner and at the same time and in the same installments as general taxes on real
property are payable, and become delinquent at the same times and in the same proportionate
amounts and bear the same proportionate penalties and interest after delinquency as do
general taxes on real property. Nothing in this Resolution or in any Supplemental Resolution
shall preclude the redemption prior to maturity of any Bonds or the payment of the Bonds from
proceeds of refunding bonds issued under any law of the State.
Section 2.3. Issuance of Bonds to Represent Unpaid Assessments• Procedure
for Disbursement: Authorization to Complete Debt Service Schedules. The issuance of the
Bonds, in an aggregate principal amount not to exceed $2,500,000, is hereby authorized as
provided in this Resolution in accordance with the provisions of the Resolution of Intention and
the Municipal Code and the proceedings conducted thereunder, with the exact principal amount
of the Bonds to be determined by the official signing the Purchase Agreement in accordance
with Section 9.7(d) below. The Bonds shall be designated as described in Recital H hereof.
The Bonds shall be issued only in fully registered form without coupons in the denomination of
$5,000 or any integral multiple thereof, or in such other denomination or denominations as
determined by the City Treasurer. The Bonds shall be in the form of a single bond, the
principal amount of which shall be disbursed to the City in such increments and at such times as
requested by the City to the Owner pursuant to a written request for disbursement in
substantially the form attached hereto as Exhibit B. The Bonds shall be dated the Closing Date,
shall mature and be payable on September 2 in the years and in the principal amounts specified
in the Debt Service Schedule attached to the Bond. The Bonds shall bear interest at such rate
or rate(s) as would yield the amount of interest payable on each Interest Payment Date, as set
forth in the Debt Schedule attached to the Bond, but in any event at an overall rate not to
exceed 7% per annum (calculated utilizing the true interest cost method). The Finance Director-
Treasurer is hereby authorized and directed to act on behalf of the City to establish and
determine the interest rate or rates on the Bonds and to complete the Debt Service Schedule
relating to each Advance, provided that the overall interest rate does not exceed 7% per annum
for the issue as a whole (calculated utilizing the true interest cost method).
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Section 2.4. Medium and Pavment. Principal of, and premium (if any) and
interest on the Bonds shall be payable in lawful money of the United States of America. The
principal of the Bonds shall be payable on each Principal Payment Date in accordance with the
Debt Service Schedule attached thereto. Interest on the Bonds shall be payable on each
Interest Payment Date in accordance with the Debt Service Schedule attached thereto. Interest
on the Bonds shall accrue only on such portion of the principal amount as has been disbursed
by the Owner to the City pursuant to Section 2.3 hereof, with accrual commencing on the date
of the respective Advance. To the extent any Advance has been made and is still Outstanding,
interest on any Bond shall be payable from the Interest Payment Date next preceding the date
of authentication of that Bond, unless (i) such date of authentication is an Interest Payment
Date, in which event interest shall be payable from such date of authentication, (ii) the date of
authenti�ation is after a Record Date but prior to the immediately succeeding Interest Payment
Date, in which event interest shall be payable from such Interest Payment Date, or (iii) the date
of authentication is prior to the close of business on the first Record Date, in which event
interest shall be payable from the later of the Bond Date or the date of the first Advance;
provided, however, that if at the time of authentication of such Bond, interest is in default,
interest on that Bond shall be payable from the last Interest Payment Date to which the interest
has been paid or made available for payment.
Principal of and interest on any Bond shall be paid by check of the City mailed by
the City Treasurer on or before the Interest Payment Date by first class mail, postage prepaid,
to the person whose name appears in the Registration Books as the Owner of such Bond as of
the close of business on the Record Date, to the address that appears on the Registration
Books (or in such other manner as determined by the Purchaser if the Purchaser is the sole
Owner of the Bonds), provided that the payment of principal of the Bonds on the final Maturity
Date and the payment of the principal of the Bonds and any premium due upon the redemption
thereof shall be payable upon presentation and surrender thereof at maturity or earlier
redemption at the office of the City Treasurer. In addition, upon a request in writing received by
the City Treasurer on or before the applicable Record Date from an Owner of $1,000,000 or
more in principal amount of the Bonds, payment shall be made on the Interest Payment Date by
wire transfer in immediately available funds to an account designated by such Owner.
Each Bond shall bear interest until its principal sum has been paid; provided,
however, that if at the final Maturity Date of any Bond, or if at the redemption date of any Bond
which has been duly called for redemption as herein provided, funds are available for the
payment or redemption thereof in full accordance with the terms of this Resolution, the Bond
shall then cease to bear interest.
Section 2.5. Form of Bonds and Certificate of Authentication and Reaistration.
The Bonds shall be sold to the Purchaser and shall be initially issued in the form of a fully
registered bond or bonds registered in the name of the Purchaser. The form of the Bond, the
form of the certificate of authentication and the form of registration thereon shall be substantially
in the form attached hereto as Exhibit A and incorporated herein by this reference. The Bonds
may be printed, lithographed or typewritten and may contain such reference to any of the
provisions of this Resolution as may be appropriate.
Section 2.6. Execution and Authentication. The Bonds shall be executed by the
manual or facsimile signature of the City Manager and attested by the manual or facsimile
signature of the City Clerk and the seal of the City (or a facsimile thereof) shall be impressed,
imprinted, engraved or otherwise reproduced thereon. In case any one or more of the officers
who shall have signed or sealed any of the Bonds shall cease to be such officer before the
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Bonds so signed and sealed have been authenticated and delivered by the City Treasurer
(including new Bonds delivered pursuant to the provisions hereof with reference to the transfer
and exchange of Bonds or to lost, stolen, destroyed or mutilated Bonds), such Bonds may,
nevertheless, be authenticated and delivered as herein provided, and may be issued as if the
persons who signed or sealed such Bonds had not ceased to hold such offices.
The Bonds shall bear thereon a certificate of authentication and registration, in
the form set forth in Exhibit A hereto, executed by the manual signature of the City Treasurer.
Only such Bonds as shall bear thereon such certificate of authentication and registration shall
be entitled to any right or benefit under this Resolution, and no Bond shall be valid or obligatory
for any purpose until such certificate of authentication and registration shall have been duly
executed by the City Treasurer.
Section 2.7. Reqistration of Exchanqe or Transfer. The registration of any Bond
may, in accordance with its terms, be transferred upon the Registration Books by the person in
whose name it is registered, in person or by his or her duly authorized attorney, upon surrender
of such Bond for cancellation at the office of the City Treasurer, accompanied by delivery of a
written instrument of transfer in a form acceptable to the City Treasurer and duly executed by
the Owner or his or her duly authorized attorney. Bonds may be exchanged at the office of the
City Treasurer for a like aggregate principal amount of Bonds of other authorized
denominations. The City will not charge for any new Bond issued upon any exchange, but may
require the Owner requesting such transfer or exchange to pay any tax or other governmental
charge required to be paid with respect to such transfer or exchange. Whenever any Bond or
Bonds shall be surrendered for registration of transfer or exchange, the City Treasurer shall
authenticate and deliver a new Bond or Bonds; provided that the City Treasurer shall not be
required to register transfers or make exchanges of (i) Bonds for a period of 15 days next
preceding the date of any selection of Bonds to be redeemed, or (ii) any Bonds chosen for
redemption.
Section 2.8. Mutilated, Lost, Destroved or Stolen Bonds. If any Bond shall
become mutilated, the City Manager, at the expense of the Owner of such Bond, shall execute,
and the City Treasurer shall thereupon authenticate and deliver, a new Bond of like series,
tenor, maturity and aggregate principal amount in authorized denomination in exchange and
substitution for the Bond so mutilated, but only upon surrender to the City Treasurer of the Bond
so mutilated. Every mutilated Bond so surrendered to the City Treasurer shall be cancelled and
destroyed. If any Bond issued hereunder shall be lost, destroyed or stolen, evidence of such
loss, destruction or theft may be submitted to the City Treasurer and, if such evidence be
satisfactory to the City Treasurer and indemnity satisfactory to the City Treasurer shall be given,
the City Manager, at the expense of the Owner, shall execute, and the City Treasurer shall
thereupon authenticate and deliver, a new Bond of like series and tenor in lieu of and in
substitution for the Bond so lost, destroyed or stolen (or if any such Bond shall have matured or
shall have been called for redemption, instead of issuing a substitute Bond the City Treasurer
may pay the same without surrender thereof upon receipt of indemnity satisfactory to the City
Treasurer). The City Treasurer may require payment of a reasonable fee for each new Bond
issued under this Section 2.8 and of the expenses which may be incurred by the City and the
City Treasurer. Any Bond issued under the provisions of this Section 2.8 in lieu of any Bond
alleged to be lost, destroyed or stolen shall constitute an original contractual obligation on the
part of the City whether or not the Bond alleged to be lost, destroyed or stolen be at any time
enforceable by anyone, and shall be equally and proportionately entitled to the benefits of this
Resolution with all other Bonds secured by this Resolution.
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Section 2.9. Reqistration Books. The City Treasurer will keep or cause to be
kept, at the office of the City, sufficient books for the registration and transfer of the Bonds, and,
upon presentation for such purpose, the City Treasurer shall, under such reasonable regulations
as he or she may prescribe, register or transfer or cause to be registered or transferred, on the
Registration Books, Bonds as herein provided.
The City may treat the Owner of any Bond whose name appears on the
Registration Books as the absolute Owner of such Bond for any and all purposes, and the City
shall not be affected by any notice to the contrary. The City may rely on the address of the
Owner as it appears in the Registration Books for any and all purposes. It shall be the duty of
each Owner to give written notice to the City of any change in such Owner's address so that the
Registration Books may be revised accordingly.
Section 2.10. Validitv of the Bonds. The validity of the authorization and
issuance of the Bonds shall not be dependent upon the completion of the Improvements or
upon the performance by any person of such person's obligation with respect to the
Improvements.
Section 2.11. Refundinq of Bonds. The Bonds may be refunded by the City as
permitted by and in accordance with applicable law including, but not limited to, the Municipal
Code.
Section 2.12. No Acceleration. The principal of the Bonds shall not be subject to
acceleration hereunder. Nothing in this Section shall in any way prohibit the redemption of
Bonds under Section 3 hereof, or the defeasance of the Bonds and discharge of all obligations
of the City under this Resolution under Section 6 hereof.
SECTION 3. REDEMPTION OF BONDS.
Section 3.1. Mandatory Redemption. The Bonds shall be redeemed prior to
maturity, in whole or in part on any date by lot within a maturity from monies on deposit and
available for such purpose in the Assessment Prepayment Account of the Redemption Fund
after making the disbursements required in Section 4.5(a) through (d), from the sources, to the
extent of and in the manner set forth in the fourth paragraph of Section 4.3 hereof, at a
redemption price, expressed as a percentage of the principal amount of the Bonds to be
redeemed, of 103 percent for the first five years of the term of the Bonds together with accrued
interest to the date of redemption; provided, so long as the Purchaser is the sole Owner of the
Bonds, the Purchaser may waive (pursuant to Section 9.8 hereof) the right to receive any
redemption premium pursuant to this Section 3.1, upon which waiver the redemption price shall
be equal to 100 percent of the principal amount of the Bonds to be redeemed. After the first five
years of the term of the Bonds, the redemption price shall be equal to 100 percent of the
principal amount of the Bonds to be redeemed.
Section 3.2. Optional Redemption. The Bonds may be redeemed prior to
maturity, in whole or in part on any Interest Payment Date by lot within a maturity from monies
on deposit and available for such purpose in the Redemption Fund from sources other than
those referred to in Section 3.1, at the option of the City, at a redemption price, expressed as a
percentage of the principal amount of the Bonds to be redeemed, of 103 percent for the first five
years of the term of the Bonds together with accrued interest to the date of redemption;
provided, so long as the Purchaser is the sole Owner of the Bonds, the Purchaser may waive
(pursuant to Section 9.8 hereof) the right to receive any redemption premium pursuant to this
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Section 3.2, upon which waiver the redemption price shall be equal to 100 percent of the
principal amount of the Bonds to be redeemed. After the first five years of the term of the
Bonds, the redemption price shall be equal to 100 percent of the principal amount of the Bonds
to be redeemed.
Section 3.3. Selection of Bonds for Redemption. If less than all of the
Outstanding Bonds are to be redeemed pursuant to Section 3.1 or Section 3.2, the City
Treasurer shall select the Bonds to be redeemed in such a way that the ratio of Outstanding
Bonds to issued Bonds shall be approximately the same within each maturity insofar as
possible. Within each maturity, the Bonds shall be selected for redemption by lot in any manner
that the City Treasurer deems fair.
Section 3.4. Notice of Redemption. In the event that Bonds are to be redeemed
as provided in this Section 3, at least 30 days, or other such shorter period upon the consent of
the Owners of any Bonds designated for redemption, but not more than 60 days prior to any
Redemption Date, a notice of redemption (the "Redemption Notice") shall be sent by personal
service, or registered or certified mail by the City Treasurer to the Owners of any Bonds
designated for redemption and, if the Purchaser is not the sole Owner of the Bonds, to such
securities depositories and securities information services as shall be designated by the City
Treasurer. Such Redemption Notice shall specify: (i)the Bonds or designated portions thereof
which are to be redeemed, (ii) the date of redemption, (iii)the redemption price, (iv) the CUSIP
numbers (if any) assigned to the Bonds to be redeemed, and (v) if less than all Bonds are to be
redeemed, the Bond numbers of the Bonds to be redeemed, and shall require that such Bonds
be surrendered at the office of the City Treasurer for redemption at the redemption price. Such
Redemption Notice shall further state that on the specified date there shall become due and
payable upon each Bond or portion thereof being redeemed the redemption price, together with
interest accrued to the redemption date, and that from and after such redemption date interest
thereon shall cease to accrue and be payable.
Neither failure to receive any Redemption Notice nor any defect in such
Redemption Notice so given shall affect the sufficiency of the proceedings for the redemption of
such Bonds. Each check or other transfer of funds issued by the City Treasurer for the purpose
of redeeming Bonds shall bear to the extent specified the CUSIP number identifying, by issue
and maturity, the Bonds being redeemed with the proceeds of such check or other transfer.
Section 3.5. Partial Redemption of Bonds. Upon surrender of any Bond to be
redeemed in part only, the City Treasurer shall authenticate and deliver to the Owner a new
Bond or Bonds of authorized denominations equal in aggregate principal amount to the
unredeemed portion of the Bond surrendered, with the same interest rate and the same
maturity. Such partial redemption shall be valid upon payment of the amount required to be
paid to such Owner, and the City shall be released and discharged thereupon from all liability to
the extent of such payment.
Section 3.6. Effect of Notice and Availabilitv of Redemption Price. Notice of
redemption having been duly given, as provided in Section 3.4, and the amount necessary for
the redemption having been made available for that purpose and being available therefor on the
date fixed for such redemption:
(1) The Bonds, or portions thereof, designated for redemption shall,
on the date fixed for redemption, become due and payable at the redemption price thereof as
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provided in this Resolution, anything in this Resolution or in the Bonds to the contrary
notwithstanding;
(2) Upon presentation and surrender thereof at the office of the City,
such Bonds shall be redeemed at the redemption price;
(3) From and after the redemption date, the Bonds or portions thereof
so designated for redemption shall be deemed to be no longer Outstanding and such Bonds or
portions thereof shall cease to accrue interest; and
(4) From and after the date fixed for redemption no Owner of any of
the Bonds or portions thereof so designated for redemption shall be entitled to any of the
benefits of this Resolution, or to any other rights, except with respect to payment of the
redemption price and interest accrued to the redemption date from the amounts so made
available.
SECTION 4. FUNDS AND ACCOUNTS.
Section 4.1. Disposition of Bond Proceeds. There previously has been
established a special trust fund held by the City called the "Energy Independence Fund" to
which the City advanced its funds to make Loans to property owners to finance the
Improvements pursuant to the Contractual Assessment Agreements. The amount received by
the City from the sale of Bonds shall be deposited in the Energy Independence Fund to
reimburse the City for such advances.
Section 4.2. Establishment of Bonds Redemption Fund and Accounts. For
administering and controlling the Assessment Revenues and any related monies, there is
hereby created and established the Bonds Redemption Fund (the "Redemption Fund"), within
which there shall be the Assessment Installment Account and the Assessment Prepayment
Account, such special fund and accounts to be maintained by the City Treasurer.
Section 4.3. Redemption Fund. The City hereby agrees to establish and
maintain the Redemption Fund until all payments of principal of and premium (if any) and
interest on the Bonds have been made and all of the Bonds have been paid or redeemed. All
sums received by the City from the collection of Assessment Revenues shall be deposited and
held in the Assessment Installment Account of the Redemption Fund except for prepayment of
the Assessments herein.
On each Interest Payment Date and each Principal Payment Date, the City
Treasurer shall make payments of interest and principal, respectively, due and payable with
respect to the Bonds from monies in the Assessment Installment Account. If, on any Interest
Payment Date or Principal Payment Date, there will be insufficient funds in the Assessment
Installment Account to make the payments provided for in the preceding sentence, available
monies shall be applied first to the payment of interest on the Bonds, and then to the payment of
principal due on the Bonds and then to the payment of principal due on the Bonds called for
redemption pursuant to Section 3 hereof.
On each September 2, all monies in the Assessment Installment Account in
excess of the amount necessary to make the payments of principal of and interest on the Bonds
then due or overdue and payable on such date (assuming all Owners entitled to payment on or
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before such date take or have taken any and all actions necessary on their part to receive
amounts due them) shall, to the extent permitted by law, be applied as follows:
(a) The moneys shall be retained in the Assessment Installment
Account of the Redemption Fund; or
(b) The moneys shall be transferred to the Assessment Prepayment
Account of the Redemption Fund for application to the advance maturity and redemption of
Bonds pursuant to Section 3.
Amounts received from, or on behalf of, property owners as prepayments of the
Assessments pursuant to the Section 4.4 shall be deposited by the City Treasurer in the
Assessment Prepayment Account for application pursuant to Section 4.5. Amounts in the
Assessment Prepayment Account shall be used to pay the principal of and redemption premium
(if any) on Bonds the maturities of which shall have been advanced pursuant to Chapter 8 of the
Municipal Code. The City Treasurer shall advance the maturity of and call Bonds for
redemption pursuant to this Resolution and the Municipal Code whenever and to the extent
monies are on deposit in the Assessment Prepayment Account, after making the disbursements
required in Section 4.5(a) through (d), sufficient to pay the principal thereof plus the redemption
premium (if any). On or after each Redemption Date, or prior thereto, upon presentation and
surrender thereof, the City Treasurer shall pay the principal of and redemption premium (if any)
on each Bond the maturity of which has been so advanced from monies in the Assessment
Prepayment Account. Interest accrued on each such Bond to the earlier of the Principal
Payment Date or Redemption Date shall be paid from monies in the Assessment Installment
Account.
Any amounts remaining in the Redemption Fund or the accounts thereof after
payment of all of the Bonds and the interest thereon shall be applied in accordance with
Section 4.7.
Section 4.4. Prepavment of Assessments. The owner of assessed land may
prepay the Assessment and remove the lien of the Assessment in accordance with the
Contractual Assessment Agreement.
Section 4.5. Application of Prepaid Assessments. Upon receiving a prepayment
of an assessment, the City Treasurer shall deposit it in the Assessment Prepayment Account of
the Redemption Fund. All prepayments may be commingled in a single account. From the
account the City Treasurer shall make disbursements in the following priority as follows:
(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 Assessment Installment Account.
(c) The installment of principal due in the Fiscal Year of prepayment
shall be transferred to the Assessment Installment Account.
(d) Interest accrued to the Redemption Date shall be transferred to
the Assessment Installment Account.
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(e) The balance in the Assessment Prepayment Account shall be
used to advance the maturity of Bonds to the next call date as provided in Chapter 8 of the
Municipal Code and Section 3.1 of this Resolution. The amount of Bonds to be retired shall be
the maximum for which principal and redemption premium (if any) may be paid in full from the
Assessment Prepayment Account. Accrued interest on Bonds to be retired shall be paid from
the Assessment Installment Account.
Section 4.6. Certain Procedures Uqon Redemption. If notice of redemption is
given, the Bonds so advanced shall mature and become payable on the date fixed for
redemption in the notice. The Owner of any such Bond may, prior to the date of redemption,
with the consent of the City 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 any. If
the Bond has not been sooner surrendered on the date fixed for redemption, the City 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, if any, 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 Owner of the Bond.
Section 4.7. Redemption Fund Surplus. If there is a surplus remaining in the
Redemption Fund or any of the accounts therein after payment of all Bonds and the interest
thereon, that surplus shall be released from the pledge and lien hereunder and transferred to
the City to be used for any lawful purposes.
Section 4.8. Investments. (a) All moneys in any of the funds or accounts
established pursuant to this Resolution shall be invested by the City Treasurer solely in
Authorized Investments. Obligations purchased as an investment of moneys in any fund or
account shall be deemed to be part of such fund or account.
All interest or gain derived from the investment of amounts in any of the funds or
accounts shall be deposited in the fund or account from which such investment was made. The
City Treasurer shall incur no liability for losses arising from any investments made pursuant to
this Section.
(b) For the purpose of determining the amount in any fund or account
established hereunder, the value of investments credited to such fund or account shall be
calculated at the cost thereof, excluding accrued interest and brokerage commissions, if any.
(c) Moneys in the Redemption Fund shall be invested only in obligations
which will by their terms mature on such dates as to ensure the timely payment of principal and
interest on the Bonds as the same become due.
The City Treasurer shall sell at the best price obtainable or present for
redemption any obligations so purchased whenever it may be necessary to do so in order to
provide moneys to meet any payment or transfer for such funds and accounts or from such
funds and accounts. For the purpose of determining at any given time the balance in any fund
or account, any such investments constituting a part of such fund and account shall be valued at
their amortized cost.
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SECTION 5. COVENANTS.
So long as any of the Bonds issued hereunder are outstanding, the City makes
the following covenants with the Owners under the provisions of the Act and the Municipal
Code, as applicable (to be performed by the City or its proper officers, agents or employees),
which covenants are necessary, convenient and desirable to secure the Bonds; provided,
however, that said covenants do not require the City to expend any funds other than the
Assessment Revenues.
Section 5.1 Punctual Pavment. The City will punctually pay or cause to be paid
the principal of, and interest and any premium on, the Bonds when and as due in strict
conformity with the terms of this Resolution and any Supplemental Resolution, and it will
faithfully observe and perform all of the conditions, covenants and requirements of this
Resolution and all Supplemental Resolutions and of the Bonds.
Section 5.2. Limited Obliqation; No Required Advances From Available Surplus
Funds. The Bonds are limited obligation improvement bonds and are payable solely from and
secured solely by Assessment Revenues and the amounts in the Redemption Fund and any
other funds, accounts, and sub-accounts created hereunder. Notwithstanding any other
provision of this Resolution, the City is not obligated to, but may in its sole and absolute
discretion, advance available surplus funds from the City treasury to cure any deficiency in the
Redemption Fund.
Section 5.3. General. The City shall do and perform or cause to be done and
performed all acts and things required to be done or performed by or on behalf of the City under
the provisions of this Resolution. The City warrants that upon the date of execution and delivery
of the Bonds, the conditions, acts and things required by law and this Resolution to exist, to
have happened and to have been performed precedent to and in the execution and delivery of
such Bonds do exist, have happened and have been performed and the execution and delivery
of the Bonds shall comply in all respects with the applicable laws of the State.
Section 5.4. Protection of Securitv and Riqhts of Owners. The City will preserve
and protect the security of the Bonds and the rights of the Owners thereto, and will warrant and
defend their rights to such security against all claims and demands of all persons. From and
after the delivery of the Bonds by the City, the Bonds shall be incontestable by the City.
Section 5.5. Aqainst Encumbrances. The City will not encumber, pledge or
place any charge or lien upon any of the Assessment Revenues or other amounts pledged to
the Bonds superior to or on a parity with the pledge and lien herein created for the benefit of the
Bonds, except as permitted by this Resolution.
Section 5.6. Collection of Assessments. The City shall comply with all
requirements of the Act so as to assure the timely collection of the unpaid Assessments.
Section 5.7. Accountinq Records and Statements. The City will keep or cause to
be kept proper accounting records in which complete and correct entries shall be made of all
transactions relating to the receipt, deposit and disbursement of the Assessment Revenues, and
such accounting records shall be available for inspection upon five business days' written notice
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by any Owner or such Owner's agent duly authorized in writing at reasonable hours and under
reasonable conditions.
Section 5.8. Further Assurances. The City will adopt, make, execute and deliver
any and all such further resolutions, instruments and assurances as may be reasonably
necessary or proper to carry out the intention or to facilitate the performance of its duties under
this Resolution, and for the better assuring and confirming unto the Owners of the Bonds the
rights and benefits provided in this Resolution.
SECTION 6. DEFEASANCE.
Section 6.1. Defeasance. If all Outstanding Bonds shall be paid and discharged
in any one or more of the following ways:
(a) by paying or causing to be paid the principal of and interest with respect
to all Bonds Outstanding, as and when the same become due and payable;
(b) by depositing with the City Treasurer, at or before maturity, an amount
which, together with the amounts then on deposit in the Redemption Fund, is fully sufficient to
pay the principal of and redemption premium (if any) and interest on all Bonds Outstanding as
and when the same shall become due and payable or, in the event of redemption thereof,
before their respective final Maturity Dates; or
(c) by depositing with the City Treasurer Federal Securities in such amount
as the City shall determine, as verified by a nationally recognized Independent Public
Accountant (unless the Purchaser is the sole owner of the Bonds, in which case no such
verification is required), will, together with the interest to accrue thereon and moneys then on
deposit in the Redemption Fund together with the interest to accrue thereon, be fully sufficient to
pay and discharge the principal of, and premium (if any) and interest on all Bonds Outstanding
as and when the same shall become due and payable;
then, at the election of the City, and notwithstanding that any Bonds shall not
have been surrendered for payment, all obligations of the City under this Resolution with
respect to all Outstanding Bonds shall cease and terminate, except for (i)the obligation of the
City Treasurer to pay or cause to be paid to the Owners of the Bonds not so surrendered and
paid, all sums due thereon, and (ii) the City's obligations under Section 5.4. Any funds held by
the City Treasurer, at the time of receipt of such notice from the City, which are not required for
the purpose above mentioned, shall be transferred to the City to be used for any lawful
purposes.
SECTION 7. SUPPLEMENTAL RESOLUTIONS.
Section 7.1. Supplemental Resolutions Without Owner Consent. The City, may
from time to time, and at any time, without notice to or consent of any of the Owners, adopt
resolutions supplemental hereto as shall not be inconsistent with the terms and provisions
hereof for any of the following purposes:
(a) to cure any ambiguity, to correct or supplement any provision herein
which may be inconsistent with any other provision herein, or to make any other provision with
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RESOLUTION NO. 09-3
respect to matters or questions arising under this Resolution or in any supplemental resolution,
provided that such action shall not adversely affect the interests of the Owners;
(b) to add to the covenants and agreements of and the limitations and the
restrictions upon the City contained in this Resolution other covenants, agreements, limitations
and restrictions to be observed by the City which are not contrary to or inconsistent with this
Resolution as theretofore in effect; and
(c) to modify, alter, amend or supplement this Resolution in any other respect
which is not materially adverse to the interests of the Owners.
Section 7.2. Supplemental Resolutions with Owner Consent. Except as
provided in Section 7.1, the Owners of a majority in aggregate principal amount of the Bonds
then Outstanding shall have the right to consent to and approve the execution of such
supplemental resolutions as shall be deemed necessary or desirable for the purpose of waiving,
modifying, altering, amending, adding to or rescinding, in any particular, any of the terms or
provisions contained in this Resolution or in any supplemental resolution or agreement;
provided, however, that nothing herein shall permit, or be construed as permitting, (a) an
extension of the Maturity Date of the principal of, or the payment date of interest on, any Bond,
(b) a reduction in the principal amount of, or redemption price of, any Bond or the rate of interest
thereon, (c) a preference or priority of any Bond or Bonds over any other Bond or Bonds, or
(d) a reduction in the percentage of Bonds the Owners of which are required to consent to such
supplemental resolution, without the consent of the Owners of all Bonds then Outstanding. In
no event, however, may a modification or amendment provide for the issuance of additional
bonds, notes or other evidences of indebtedness payable out of the Assessment Revenues.
Section 7.3. Notice of Suqplemental Resolution to Owners. If at any time the
parties hereto shall desire to enter into a resolution supplemental hereto, which pursuant to the
terms of Section 7.2 shall require the consent of the Owners, the City shall cause notice of the
proposed resolution to be mailed, postage prepaid, to all Owners at their addresses as they
appear in the Registration Books. Such notice shall briefly set forth the nature of the proposed
resolution and shall state that a copy thereof is on file at the office of the City for inspection by
all Owners. The failure of any Owner to receive such notice shall not affect the validity of such
resolution when consented to and approved as in Section 7.2 provided. Whenever at any time
within one year after the date of the first mailing of such notice, the City shall receive an
instrument or instruments purporting to be executed by the Owners of not less than a majority in
aggregate principal amount of the Bonds then Outstanding, which instrument or instruments
shall refer to the proposed resolution described in such notice, and shall specifically consent to
and approve it substantially in the form of the copy thereof referred to in such notice as on file
with the City, such proposed resolution, when duly adopted by the City, shall thereafter become
a part of the proceedings for the issuance of the Bonds. In determining whether the Owners of
the requisite aggregate principal amount of the Bonds have consented to the adoption of any
supplemental resolution, Bonds which are owned by the City or by any person directly or
indirectly controlling or controlled by or under direct or indirect common control with the City,
shall be disregarded and shall be treated as though they were not Outstanding for the purpose
of any such determination.
Upon the adoption of any resolution supplemental hereto and the receipt of
consent to any such resolution from the Owners of the appropriate aggregate principal amount
of Bonds in instances where such consent is required, this Resolution shall be, and shall be
deemed to be, modified and amended in accordance therewith, and the respective rights, duties
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RESOLUTION NO. 09-3
and obligations under this Resolution of the City and all Owners of Bonds then Outstanding
shall thereafter be determined, exercised and enforced hereunder, subject in all respects to
such modifications and amendments.
SECTION 8. DEFAULT.
Section 8.1. Events of Default. If any of the following events occur, it is hereby
declared to constitute an "Event of DefaulY':
(a) Default in the due and punctual payment of interest on any Bond, whether
at the stated Interest Payment Date thereof, or upon proceedings for redemption thereof;
(b) Default in the due and punctual payment of the principal of or premium, if
any, on any Bond, whether at the stated Principal Payment Date thereof, or upon proceedings
for redemption thereof; or
(c) Failure by the City to observe and perform any material covenant,
condition or agreement required by this Resolution to be performed by it (other than a default
described in clause (a) or (b) above) for a period of 60 days following written notice to the City
from any Owner of such failure; provided, however, if the City is in good faith attempting to
remedy said failure and is unable to do so within the 60 day time period, an additional 60 days
shall be allowed.
Section 8.2. Re_medies Not Exclusive: Non-waiver. No remedy conferred hereby
upon any Owner is intended to be exclusive of any other remedy, but each such remedy is
cumulative and in addition to every other remedy and may be exercised without exhausting and
without regard to any other remedy conferred by the Municipal Code, the Act, or any other law
of the State. No waiver of any default or breach of duty or contract by any Owner shall affect
any subsequent default or breach of duty or contract or shall impair any rights or remedies on
said subsequent default or breach. No delay or omission of any Owner to exercise any right or
power accruing upon any default shall impair any such right or power or shall be construed as a
waiver of any such default or acquiescence therein. Every substantive right and every remedy
conferred upon the Owners may be enforced and exercised as often as may be deemed
expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy
shall be brought or taken and the Owner shall prevail, said Owner shall be entitled to receive
reimbursement for reasonable costs, expenses, outlays and attorney's fees and should said
suit, action or proceeding be abandoned, or be determined adversely to the Owners then, and in
every such case, the City and the Owners shall be restored to their former positions, rights and
remedies as if such suit, action or proceeding had not been brought or taken.
Section 8.3. Limited Liabilitv of the Citv to the Owners. Except for the collection
of the Assessment Installments and the observance and performance of the other conditions,
covenants and terms contained herein, in the Act or in the Municipal Code required to be
observed or performed by it, the City shall not have any obligation or liability to the Owners with
respect to this Resolution or the preparation, authentication, delivery, transfer, exchange or
cancellation of the Bonds. In the Resolution of Intention, the City has determined pursuant to
Chapter 2 of the Municipal Code that the City will not obligate itself to advance available funds
from the City's treasury to cure any deficiency which may occur in the Redemption Fund.
Section 8.4. Action bv Owners Uqon Default. In the event the City fails to take
any action to eliminate an Event of Default under Section 8.1 hereof, the Owners of a majority in
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RESOLUTION NO. 09-3
aggregate principal amount of Outstanding Bonds may institute any suit, action, mandamus or
other proceeding in equity or at law for the protection or enforcement of any right under this
Resolution, but only if such Owners have first made written request of the City, after the right to
exercise such powers or right of action shall have occurred, and shall have afforded the City a
reasonable opportunity either to proceed to exercise the powers granted herein or granted
under law or to institute such action, suit or proceeding in its name and unless also, the City
shall have been offered reasonable security and indemnity against the costs, expenses and
liabilities to be incurred therein or thereby, and the City shall have refused or neglected to
comply with such request within a reasonable time. Any moneys recovered in such suit, action,
mandamus or other proceedings shall be applied first to the payment of the reasonable costs
and expenses of the Owners in bringing such suit, action, mandamus or other proceeding,
including reasonable compensation to their agents and attorney.
SECTION 9. MISCELLANEOUS.
Section 9.1. Partial Invaliditv. If any section, paragraph, subdivision, sentence,
clause or phrase of this Resolution shall for any reason be adjudged by any court of competent
jurisdiction to be unconstitutional, unenforceable or invalid, such judgment shall not affect the
validity of the remaining portions of this Resolution. The City Council hereby declares that it
would have adopted this Resolution and each and every other section, paragraph, subdivision,
sentence, clause and phrase hereof and would have authorized the issuance of the Bonds
pursuant hereto irrespective of the fact that any one or more sections, paragraphs, subdivisions,
sentences, clauses or phrases of this Resolution or the application thereof to any person or
circumstance, may be held to be unconditional, unenforceable or invalid.
Section 9.2. General Authorization. The officers of the City are hereby
authorized and directed, jointly and severally, to do all acts and things which may be required of
them by this Resolution, or which may be necessary or desirable in carrying out the issuance of
the Bonds as provided by this Resolution and all matters incidental thereto, including, without
limitation, to execute such agreements, certificates, receipts, opinions and other documents,
and to deliver at the closing and delivery of the Bonds any and all of the foregoing as may be
appropriate in the circumstances. All such acts and things heretofore done are hereby
approved, ratified and confirmed.
Section 9.3. Personal Liabilitv. The City or any officer, agent or employee
thereof, shall not be individually or personally liable for the payment of the principal of or
interest on the Bonds; but nothing herein contained shall relieve any such entity, officer, agent
or employee from the performance of any official duty provided by law.
Section 9.4. Pavment of Business Day. In any case where the date of the
maturity of interest or of principal (and premium, if any) of the Bonds or the date fixed for
redemption of any Bonds or the date any action is to be taken pursuant to this Resolution is
other than a Business Day, the payment of interest or principal (and premium, if any) or the
action need not be made on such date but may be made on the next succeeding day which is a
Business Day with the same force and effect as if made on the date required and no interest
shall accrue for the period after such date.
Section 9.5. Emplovment of Aqents bv the Citv. In order to perForm its duties
and obligations hereunder, the City may employ such persons or entities as it deems necessary
or advisable. The City shall not be liable for any of the acts or omissions of such persons or
entities employed by it in good faith hereunder, and shall be entitled to rely, and shall be fully
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RESOLUTION NO. 09-3
protected in doing so, upon the opinions, calculations, determinations and directions of such
persons or entities.
Section 9.6. Disqualified Bonds. In the event of a later transfer of the Bonds in
accordance with Section 9.7 hereof, in determining whether the Owners of the requisite
aggregate principal amount of Bonds have concurred in any demand, request, direction,
consent or waiver under this Resolution, Bonds which are owned or held by or for the account of
the City shall be disregarded and deemed not to be Outstanding for the purpose of any such
determination, provided, however, that for the purpose of determining whether the City
Treasurer shall be protected in relying on any such demand, request, direction, consent or
waiver, only Bonds which the City Treasurer knows to be so owned or held shall be
disregarded.
Section 9.7. Sale of Bonds to Purchaser• Transfer of Bonds; Purchase
Aqreement; Restrictions. (a) The Purchaser, as the initial Owner of the Bonds, has
represented to the City that the Purchaser intends to hold the Bonds for its own account, for an
indefinite period of time, and does not intend at this time to distribute, sell or otherwise dispose
of the Bonds, or any portion thereof, to any third party.
(b) At the time of adoption of this Resolution, the City has not prepared, and
does not intend to prepare, any offering document (in the form of an official statement or
otherwise) with respect to the Bonds. The City has not made, and at this time does not intend
to make, any continuing disclosure filings with state or national information repositories with
respect to the Bonds.
(c) The transfer of the Bonds shall be restricted as set forth herein. With
respect to any transfer of less than all of the then outstanding principal amount of the Bonds, the
portion being transferred shall be equal to $100,000 or greater in principal amount. No Bond (or
any portion thereof) may be transferred and no such transfer shall be effective or recognized in
the Registration Books, unless the City Treasurer shall have received a letter from the proposed
transferee in the form satisfactory to the City Treasurer, which shall contain statements
substantially to the following effect:
(i) The transferee has received and reviewed copies of this Resolution. The
transferee understands that (A)the Bonds are limited obligations of the
City secured by and payable solely from Assessment Revenues as
provided in this Resolution, (B) no other fund or property of the City is
liable for the payment of the Bonds, (C) none of the payment obligations
with respect to the Bonds are secured by a pledge of any money received
or to be received from taxation by the City or any political subdivision
thereof, other than the Assessment Revenues, and (D)there is no
reserve fund for the Bonds.
(ii) The transferee has sufficient knowledge and experience in financial and
business matters, including in the purchase and ownership of municipal
obligations of a nature similar to the Bonds, to be able to evaluate the
risks and merits of investing in the Bonds.
(iii) The transferee acknowledges that City has not prepared any offering
document with respect to the Bonds. The transferee, as a sophisticated
investor, has made its own credit inquiry and analyses with respect to the
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RESOLUTION NO. 09-3
Bonds. The transferee has assumed the responsibility for obtaining and
making such review as the transferee has deemed necessary or desirable
in connection with the transferee's decision to invest in the Bonds. The
transferee's decision to invest in the Bonds did not rely on any information
provided by the City (or any representatives or agents of the City) that is
not in written form.
(iv) The transferee has duly determined that (A) the transferee is legally
authorized to purchase the Bonds, and (B) the Bonds are a lawful
investment for the transferee under all applicable laws.
(v) The transferee understands that (A) the Bonds have not been registered
with any federal or state securities agency or commission or otherwise
qualified for sale under the "Blue Sky" laws or regulations of any state, (B)
will not be listed on any securities exchange, (C) will not carry a rating
from any rating service, and (D) may not be readily marketable.
(vi) The transferee is investing in the Bonds for its own account, and at the
time of its purchase of the Bonds, and does not intend to distribute, resell
or otherwise dispose of the Bonds.
(vii) The transferee agrees that, in the event that the transferee decides to sell
or otherwise transfer the Bonds, it shall require the new transferee to
deliver to the City Treasurer the letter required by this Section 9.7 as a
condition precedent to the consummation of such transfer.
(d) The Purchase Agreement proposed to be entered into by and among the
City and the Purchaser, in the form on file in the office of the City Clerk, and the sale of the
Bonds pursuant thereto upon the terms and conditions set forth therein are hereby approved.
Subject to the following sentence, each of the Mayor and the City Manager, or their designee
(each, an "Authorized Officer"), acting singly, is authorized and directed, for and in the name
and on behalf of the City, to execute and deliver the Purchase Agreement in substantially said
form, with such changes therein as the officer executing the same may require or approve (such
approval to be conclusively evidenced by such Authorized Officer's execution and delivery
thereof). Each Authorized Officer, acting singly, is hereby authorized and directed to act on
behalf of the City to establish and determine the aggregate principal amount of the Bonds,
which amount shall not exceed $2,500,000.
(e) Upon satisfaction of subsection (c) above, any Bond may in accordance
with its terms be transferred upon the Registration Books by the person in whose name it is
registered, in person or by such person's duly authorized attorney, upon surrender of such Bond
for cancellation, accompanied by delivery of a written instrument of transfer, duly executed, in a
form approved by the City Treasurer. Whenever any Bond shall be surrendered for such
transfer, the City shall execute and the City Treasurer shall thereupon authenticate and deliver
to the transferee a new Bond or Bonds of like tenor, maturity or maturities and aggregate
principal amount. The City Treasurer shall not be required to transfer, pursuant to this
Section 9.7, either (i) any Bond during the period established by the City Treasurer for the
selection of Bonds for redemption, or (ii) any Bond selected for redemption pursuant to
Section 3.
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RESOLUTION NO. 09-3
Section 9.8. Waivers. So long as the Purchaser is the sole Owner of the Bonds,
the Purchaser may waive any provisions of this Resolution, including but not limited to the
provisions related to the redemption of Bonds or to the adoption of resolutions supplemental
hereto.
Section 9.9. Effective Date. This Resolution shall take effect immediately upon
adoption.
PASSED, APPROVED, AND ADOPTED this 22nd day of January, 2009 by the
following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
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RESOLUTION NO. 09-3
Exhibit A
[FORM OF BOND]
Transfer of this Bond is subject to the restrictions set forth in the Resolution referred to
herein. A transfer of Bonds is limited to certain parties that qualify under the
requirements of the Resolution, which include the requirement that the transferee can
bear the economic risk of investment in the Bonds and has such knowledge and
experience in business and financial matters, including the purchase and ownership of
municipal obligations of a nature similar to the Bonds, to be ab/e to evaluate the risks
and merits of the investment in the Bonds. The Bonds have not been registered with
any federa/or state securities agency or commission.
United States of America
State of California
County of Riverside
REGISTERED REGISTERED
NUMBER 1 $[2,500,000.00]
CITY OF PALM DESERT
ENERGYINDEPENDENCE
LIMITED OBLIGATION IMPROVEMENT BOND
SERIES 2009A (TAXABLE)
BOND DATE: , 2009 FINAL MATURITY DATE: September 2,
[2030]
REGISTERED OWNER: Palm Desert Redevelopment Agency
Under and by virtue of Title 17 of the Palm Desert Municipal Code (the
"Municipal Code"), the City of Palm Desert (the "City"), County of Riverside, State of
California, will, out of the Redemption Fund for the payment of the Bonds issued upon
the unpaid assessments made for the work and improvements more fully described in
proceedings taken pursuant to Resolution of Intention No. 08-75, adopted by the City
Council on July 24, 2008, and as amended by Resolution No. 08-89, adopted by the
City Council on August 28, 2008, and as further amended by Resolution No. 09-2,
adopted by the City Council on January 22, 2009, pay to the registered owner hereof, or
registered assigns, the principal sum specified above and interest thereon, or so much
thereof as may have been disbursed and remain outstanding, at a rate of interest
determined pursuant to Resolution No. 09-3 of the City Council of the City (the
"Resolution of Issuance"), adopted on January 22, 2009, in lawful money of the United
States of America, and in accordance with the Resolution of Issuance; provided that
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RESOLUTION NO. 09-3
the final installment of principal equal to the then unpaid principal balance of this Bond
and interest accrued thereon shall be due and paid upon surrender of this Bond on the
final maturity date set forth above.
The principal of the Bonds shall be payable on each Principal Payment
Date in accordance with the Debt Service Schedule attached hereto. Interest on the
Bonds shall be payable on each Interest Payment Date in accordance with the Debt
Service Schedule attached hereto. To the extent any Advance has been made and is
still Outstanding, both principal and interest shall be payable semiannually on March 2
and September 2 (each an "Interest Payment Date") in each year commencing on
March 2, 2010. Interest on the Bonds shall accrue only on such portion of the principal
amount as has been disbursed by the Owner to the City pursuant to Section 2.3 hereof,
with accrual commencing on the date of the respective Advance. To the extent any
Advance has been made and is still Outstanding, this Bond bears interest from the
Interest Payment Date next preceding its date of authentication and registration, unless
this Bond is authenticated and registered (i) on an Interest Payment Date, in which
event interest shall be payable from such date of authentication and registration,
(ii) prior to an Interest Payment Date and after the close of business on the 15th day of
the month immediately preceding such Interest Payment Date, in which event it shall
bear interest from such Interest Payment Date, or (iii) prior to the close of business on
February 15, 2010, in which event it shall bear interest from the later of the Bond Date
stated above or the date of the first Advance, until payment of such principal sum shall
have been discharged; provided, however, that if at the time of authentication of such
Bond, interest is in default, interest on that Bond shall be payable from the last Interest
Payment Date to which the interest has been paid or made available for payment.
Principal of and interest on the Bond shall be paid by check of the City mailed by the
City Treasurer on or before the Interest Payment Date by first class mail, postage
prepaid, to the person whose name appears in the Registrations Books as the Owner of
such Bond as of the 15th day of the calendar month immediately preceding each
Interest Payment Date, to the address of that person on the Registration Books,
provided that the payment of principal of the Bond on the final maturity date and the
payment of the principal of the Bond and any premium due upon the redemption thereof
shall be payable upon presentation and surrender thereof at maturity or earlier
redemption at the office of the City Treasurer in Palm Desert, California.
This Bond shall bear interest until the respective principal sum for each
Maturity Date (as defined in the Resolution of Issuance) has been paid; provided,
however, that if at the applicable Maturity Date, or if at the redemption date of any
principal amount of this Bond which has been duly called for redemption as provided in
the Resolution of Issuance, funds are available for the payment or redemption thereof in
full accordance with the terms of the Resolution of Issuance, such principal amount
shall then cease to bear interest.
This Bond is issued by the City of Palm Desert under Title 17 of the
Municipal Code and the Resolution of Issuance in the aggregate principal amount of
$2,500,000 for the purpose of reimbursing the City for funds that the City advanced to
make loans to finance the improvements described in the proceedings, and is secured
by the moneys in the Redemption Fund and by the unpaid assessments made for the
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RESOLUTION NO. 09-3
financing of those improvements, and, including principal and interest, is payable
exclusively out of the Redemption Fund and certain other funds and accounts as
provided in the Resolution of Issuance. The City will not obligate itself to advance
available funds from the City treasury to cure any deficiency which may occur in
the Redemption Fund.
This Bond is transferable by the registered owner hereof, in person or by
the owner's attorney duly authorized in writing, at the office of the City Treasurer,
subject to the terms and conditions provided in the Resolution of Issuance, including the
payment of certain charges, if any, upon exchange, transfer, surrender or cancellation
of this Bond. Upon transfer, a new registered Bond or Bonds, of any authorized
denomination or denominations, of the same maturity, and for the same aggregate
principal amount, will be issued to the transferee in exchange therefor.
Bonds shall be registered only in the name of an individual (including joint
owners), a corporation, a partnership or a trust.
The City shall not be required to exchange or to register the transfer of
Bonds during the fifteen days immediately preceding any Interest Payment Date or of
any Bonds selected for redemption in advance of maturity.
The City may treat the owner hereof as the absolute owner for all
purposes, and the City shall not be affected by any notice to the contrary.
This Bond or any portion of it in the amount of$5,000, or any integral
multiple thereof, is subject to mandatory redemption and payment in advance of
maturity on any date from prepayments of assessments and subject to optional
redemption and payment in advance of maturity on any second day of March or
September in any year by giving at least 30 days' notice or other such shorter period
upon the consent of the owners of any Bonds designated for redemption, by registered
or certified mail, postage prepaid, or by personal service to the registered owner hereof
at the registered owner's address as it appears on the registration books of the City and
by paying principal and accrued interest together with a premium equal to three percent
(3%) of the principal for the first five (5) years after the Bond Date and zero percent
(0%) after the first five (5) years after the Bond Date. Interest shall cease to accrue
from and after the date of redemption.
This Bond is subject to refunding pursuant to the Municipal Code prior to
maturity.
This Bond shall not be entitled to any benefit under the Municipal Code or
the Resolution of Issuance, or become valid or obligatory for any purpose, until the
certificate of authentication and registration hereon endorsed shall have been dated and
signed by the City Treasurer of the City.
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RESOLUTION NO. 09-3
[The remainder of this page is intentionally left blank.]
IN WITNESS WHEREOF, the City of Palm Desert, California has caused
this Bond to be signed by the City Manager and by the City Clerk, and has caused its
corporate seal to be impressed hereon all as of , 2009.
CITY OF PALM DESERT, CALIFORNIA
City Clerk City Manager
[seal]
�CERTIFICATE OF AUTHENTICATION AND REGISTRATION
This is one of the Bonds described in the within mentioned Resolution of
Issuance which has been authenticated and registered on , 2009.
City Treasurer
[FORM OF ASSIGNMENT]
For value received the undersigned do(es) hereby sell, assign and transfer unto
, whose tax identification number is , the within-
mentioned registered Bond and hereby irrevocably constitute(s) and appoint(s)
attorney to transfer the same on the books of the Trustee
with full power of substitution in the premises.
Dated:
Signature guaranteed:
NOTE: The signature(s) on this Assignment
must correspond with the name(s) as
written
on the face of the within Bond in every
particular without alteration or enlargement
or any change whatsoever.
NOTICE: Signature must be guaranteed by a
member of an institution which is a participant
in the Securities Transfer Agent Medallion
Program (STAMP) or other similar program..
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RESOLUTION NO. 09-3
Schedule 1 — Debt Service Schedules
CITY OF PALM DESERT
ENERGYINDEPENDENCE
LIMITED OBLIGATION IMPROVEMENT BOND
SERIES 2009A (TAXABLE)
Re: BOND REGISTERED NUMBER 1
Disbursement No. 1
Disbursement Date:
Disbursement Amount: True Interest Cost: %
DEBT SERVICE SCHEDULE — DISBURSEMENT NO. 1
Interest Principal Interest
Payment Date Payment Payment Total
$ $ $
Total: $ $ $
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RESOLUTION NO. 09-3
Schedule 1 — Debt Service Schedules
CITY OF PALM DESERT
ENERGYINDEPENDENCE
LIMITED OBLIGATION IMPROVEMENT BOND
SERIES 2009A (TAXABLE)
Re: BOND REGISTERED NUMBER 1
Disbursement No. 2
Disbursement Date:
Disbursement Amount: True Interest Cost: %
DEBT SERVICE SCHEDULE — DISBURSEMENT NO. 2
Interest Principal Interest
Payment Date Payment Payment Total
$ $ $
Total: $ $ $
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RESOLUTION NO. 09-3
Schedule 1 — Debt Service Schedules
CITY OF PALM DESERT
ENERGYINDEPENDENCE
LIMITED OBLIGATION IMPROVEMENT BOND
SERIES 2009A (TAXABLE)
Disbursement No. 3
Disbursement Date:
Disbursement Amount: True Interest Cost: °/a
DEBT SERVICE SCHEDULE — DISBURSEMENT NO. 3
Interest Principal Interest
Payment Date Payment Payment Total
$ $ $
Total: $ $ $
[add additional debt service schedules for each additional disbursement as necessary]
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RESOLUTION NO. 09-3
Exhibit B
FORM OF BOND PROCEEDS DISBURSEMENT REQUEST
[$2,500,000]
City of Palm Desert
Energy Independence Program
Limited Obligation Improvement Bonds
Series 2009A(Taxable)
To: Palm Desert Redevelopment Agency
Palm Desert, California
Re: Request for Disbursement of Bond Proceeds No. _ ("Request'�
Ladies and Gentlemen:
The City of Palm Desert (the "City") hereby requests that you disburse to the City the
sum of$ , being a portion of the indebtedness evidenced by the above-
captioned bonds (the "Series 2009A Bonds).
The City hereby certifies as follows:
(a) The City has disbursed funds for Loans from the Energy Independence Fund in
an aggregate principal amount equal to the sum requested for disbursement pursuant to this
Request (the "Loans for ReimbursemenY').
(b) The City will use such bond proceeds advanced pursuant to this Request to
reimburse itself for the Loans for Reimbursement.
(c) The Loans for Reimbursement have not been the subject of any other Request
for Disbursement of Bond Proceeds.
(d) Attached hereto as Exhibit B-1 is a list of the following information with respect to
each Loan for Reimbursement: (i) name of property owner, (ii) date of such property owner's
Contractual Assessment Agreement, and (iii) the original principal amount funded.
Capitalized terms used but not otherwise defined herein shall have the meaning ascribed to
such term in the Resolution of Issuance (as defined in the Series 2009A Bonds).
Sincerely,
CITY OF PALM DESERT
By:
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RESOLUTION NO. 09-3
ATTACHMENT B-1
TO BOND PROCEEDS DISBURSEMENT REQUEST
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RESOLUTION NO. 09-3
B-1-2
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RESOLUTION NO. 09-3
TABLE OF CONTENTS
Paqe
SECTION 1. DEFINITIONS; RULES OF CONSTRUCTION; AUTHORIZATION AND
PURPOSE OF BONDS; EQUAL SECURITY......................................................................... 2
Section1.1. Definitions ........................................................................................................ 2
Section 1.2. Rules of Construction..................................................................................... 5
Section 1.3. Authorization and Purpose of Bonds........................................................... 5
Section1.4. Equal Security................................................................................................. 5
SECTION2. THE BONDS......................................................................................................... 6
Section 2.1. Equality of Bonds, Pledge ............................................................................. 6
Section 2.2. Collection of Assessments............................................................................ 6
Section 2.3. Issuance of Bonds to Represent Unpaid Assessments; Procedure for
Disbursement; Authorization to Complete Debt Service Schedules.............................. 6
Section 2.4. Medium and Payment.................................................................................... 7
Section 2.5. Form of Bonds and Certificate of Authentication and Registration.......... 7
Section 2.6. Execution and Authentication ........................................................................ 7
Section 2.7. Registration of Exchange or Transfer.......................................................... 8
Section 2.8. Mutilated, Lost, Destroyed or Stolen Bonds............................................... 8
Section 2.9. Registration Books.......................................................................................... 9
Section 2.10. Validity of the Bonds .................................................................................... 9
Section 2.11. Refunding of Bonds...................................................................................... 9
Section 2.12. No Acceleration............................................................................................. 9
SECTION 3. REDEMPTION OF BONDS............................................................................... 9
Section 3.1. Mandatory Redemption.................................................................................. 9
Section 3.2. Optional Redemption...................................................................................... 9
Section 3.3. Selection of Bonds for Redemption ........................................................... 10
i
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RESOLUTION NO. 09-3
Section 3.4. Notice of Redemption................................................................................... 10
Section 3.5. Partial Redemption of Bonds...................................................................... 10
Section 3.6. Effect of Notice and Availability of Redemption Price............................. 10
SECTION 4. FUNDS AND ACCOUNTS............................................................................... 11
Section 4.1. Disposition of Bond Proceeds..................................................................... 11
Section 4.2. Establishment of Bonds Redemption Fund and Accounts..................... 11
Section4.3. Redemption Fund ......................................................................................... 11
Section 4.4. Prepayment of Assessments...................................................................... 12
Section 4.5. Application of Prepaid Assessments ......................................................... 12
Section 4.6. Certain Procedures Upon Redemption ..................................................... 13
Section 4.7. Redemption Fund Surplus........................................................................... 13
Section 4.8. Investments.................................................................................................... 13
SECTION 5. COVENANTS..................................................................................................... 14
Section 5.1 Punctual Payment.......................................................................................... 14
Section 5.2. Limited Obligation; No Required Advances From Available Surplus
Funds ..................................................................................................................................... 14
Section5.3. General........................................................................................................... 14
Section 5.4. Protection of Security and Rights of Owners............................................ 14
Section 5.5. Against Encumbrances................................................................................ 14
Section 5.6. Collection of Assessments.......................................................................... 14
Section 5.7. Accounting Records and Statements........................................................ 14
Section 5.8. Further Assurances...................................................................................... 15
SECTION 6. DEFEASANCE................................................................................................... 15
Section 6.1. Defeasance.................................................................................................... 15
SECTION 7. SUPPLEMENTAL RESOLUTIONS ............................................................... 15
��
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RESOLUTION NO. 09-3
Section 7.1. Supplemental Resolutions Without Owner Consent............................... 15
Section 7.2. Supplemental Resolutions with Owner Consent...................................... 16
Section 7.3. Notice of Supplemental Resolution to Owners ........................................ 16
SECTION 8. DEFAULT ........................................................................................................... 17
Section 8.1. Events of Default........................................................................................... 17
Section 8.2. Remedies Not Exclusive; Non-waiver....................................................... 17
Section 8.3. Limited Liability of the City to the Owners................................................. 17
Section 8.4. Action by Owners Upon Default................................................................. 17
SECTION 9. MISCELLANEOUS .................:......................................................................... 18
Section 9.1. Partial Invalidity............................................................................................. 18
Section 9.2. General Authorization .................................................................................. 18
Section 9.3. Personal Liability........................................................................................... 18
Section 9.4. Payment of Business Day........................................................................... 18
Section 9.5. Employment of Agents by the City............................................................. 18
Section 9.6. Disqualified Bonds........................................................................................ 19
Section 9.7. Sale of Bonds to Purchaser; Transfer of Bonds; Purchase Agreement;
Restrictions............................................................................................................................ 19
Section9.8. Waivers........................................................................................................... 21
Section 9.9. Effective Date................................................................................................ 21
EXHIBIT A— FORM OF BOND ................................................................................... A-1
EXHIBIT B — BOND PROCEEDS DISBURSEMENT REQUEST................................ B-1
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BOND PURCHASE AGREEMENT
$
City of Palm Desert
Energy Independence Program
Limited Obligation Improvement Bonds
Series 2009A(Taxable)
This Bond Purchase Agreement (this "AgreemenY') is made and entered into as of
, 2009, by and between the PALM DESERT REDEVELOPMENT AGENCY, a
public body, corporate and politic, duly organized and validly existing under the laws of the
State of California (the "Agency") and the CITY OF PALM DESERT, a municipal corporation
duly organized and existing under and by virtue of the Constitution and the laws of the State of
California(the "City").
Recitals
A. The City Council of the City of Palm Desert, California(the "City")by its
Resolution No. 08-75 established the City of Palm Desert Energy Independence Program (the
"EIP") to finance the acquisition and construction or installation of distributed generation
renewable energy sources and energy efficiency improvements (the "Improvements") on
properties in the City through the use of contractual assessments pursuant to Chapter 29 of Part 3
of Division 7 of the California Streets and Highways Code (the "Act").
B. The City Council of the City has determined to issue its Energy
Independence Program Limited Obligation Improvement Bonds, Series 2009A (Taxable), in a
principal amount not to exceed $2,500,000 (the "Bonds") pursuant to its Resolution entitled "A
Resolution of the City Council of the City of Palm Desert Providing for the Issuance and Sale of
Limited Obligation Improvement Bonds in Principal Amount Not to Exceed Two Million Five
Hundred Thousand Dollars ($2,500,000), Approving as to Form and Authorizing the Execution
and Delivery of a Bond Purchase Agreement in Connection Therewith, and Authorizing Certain
Other Matters Relating Thereto" (the "City Resolution").
C. The Agency is a redevelopment agency, a public body, corporate and
politic, duly created, established and authorized to transact business and exercise its powers, all
under and pursuant to the Community Redevelopment Law of the State of California, being Part
1 of Division 24 (commencing with Section 33000) of the California Health and Safety Code, as
amended, and the powers of the Agency include the power to invest any money not required for
immediate disbursement in the bonds of any city.
D. The City has determined to sell, and the Agency has determined to invest
in and purchase, the Bonds pursuant to the terms of this Agreement.
E. All acts and proceedings required by law necessary to make this
Agreement, when executed by the Agency and the City,the valid, binding and legal obligation of
the Agency and the City, and to constitute this Agreement a valid and binding agreement for the
10926373 1 RWG 1/13/09
uses and purposes herein set forth in accordance with its terms, have been done and taken, and
the execution and delivery of this Agreement have been in all respects duly authorized.
NOW, THEREFORE, in consideration of the premises and the mutual agreements
herein contained,the parties hereto do hereby agree as follows:
Section 1. Definitions. Unless the context clearly requires or unless otherwise
defined herein, the capitalized terms in this Agreement shall have the respective meanings which
such terms are given in the City Resolution.
Section 2. Purchase of the Bonds. Upon the terms and conditions herein set forth,
the Agency hereby agrees to purchase, and the City hereby agrees to sell, execute and deliver the
Bonds to the Agency. The purchase price to be paid by the Agency for the Bonds shall be the
par value thereof.
Section 3. The Bonds. The Bonds will be delivered in definitive, fully registered
form, registered in the name of the Agency and may be typewritten. The Bonds shall be dated
the Closing Date, shall be payable in the years and in the principal amounts, and interest thereon
shall be payable on the dates and at the rates shown in the City Resolution, and shall otherwise
be as described in, and shall be secured as set forth in, the City Resolution.
Section 4. Closin�. At 9:00 A.M., California time, on , 2009, or at
such other time or date as shall have been mutually agreed upon by the City and the Agency (the
"Closing Date"), the City will, subject to the terms and conditions hereof, deliver to the Agency,
at the office of the Treasurer in City of Palm Desert, California, the Bonds in fully registered
form, duly executed and registered; and, subject to the terms and conditions hereof, the Agency
will accept such delivery and cause the purchase price of the Bonds to be paid by check or draft
or by interfund transfer, as the case may be.
Section 5. Representations of the A�v—Suitabilitv for Private Placement. The
Agency represents, warrants and agrees as follows:
a) The Agency has received and reviewed copies of the City Resolution. The
Agency understands that(i)the Bonds are limited obligations of the City secured by and payable
solely from Assessment Revenues as provided in the City Resolution, (ii) no other fund or
property of the City is liable for the payment of the Bonds, (iii)none of the payment obligations
with respect to the Bonds are secured by a pledge of any money received or to be received from
taxation by the City or any political subdivision thereof, other than the Assessment Revenues,
and(iv)there is no reserve fund for the Bonds.
b) The Agency has sufficient knowledge and experience in financial and
business matters, including in the purchase and ownership of municipal obligations of a nature
similar to the Bonds, to be able to evaluate the risks and merits of investing in the Bonds.
c) The Agency acknowledges that City has not prepared any offering
document with respect to the Bonds. The Agency, as a sophisticated investor, has made its own
credit inquiry and analyses with respect to the Bonds. The Agency has assumed the
responsibility for obtaining and making such review as the Agency has deemed necessary or
1092637.3 2 RWG 1/13/09
desirable in connection with the Agency's decision to invest in the Bonds. The Agency's
decision to invest in the Bonds did not rely on any information provided by the City (or any
representatives or agents of the City)that is not in written form.
d) The Agency has duly determined that (i)the Agency is legally authorized
to purchase the Bonds, and (ii) the Agency are a lawful investment for the Agency under all
applicable laws.
e) The Agency understands that(i)the Bonds have not been registered with
any federal or state securities agency or commission or otherwise qualified for sale under the
"Blue Sky" laws or regulations of any state, (ii) will not be listed on any securities exchange, (iii)
will not carry a rating from any rating service, and (iv) may not be readily marketable.
� The Agency is investing in the Bonds for its own account, and at the time
of its purchase of the Bonds, does not intend to distribute, resell or otherwise dispose of the
Bonds.
g) The Agency agrees that, in the event that the Agency decides to sell or
otherwise transfer the Bonds, it shall require the new transferee to deliver to the City Treasurer
the letter required by the City Resolution as a condition precedent to the consummation of such
transfer.
Section 6. Condition of Closin�. The City's obligation to sell the Bonds is
conditioned upon the Agency's delivery to the City, on or prior to the Closing Date, of a
certificate, dated the Closing Date, signed by a duly authorized official of the Agency
satisfactory in form and substance to the City and bond counsel with respect to the Bonds,
Richards, Watson & Gershon, A Professional Corporation, to the effect that the representations
and warranties of the Agency contained herein are true and correct as of the Closing Date.
Section 7. Termination. If the conditions to the City's obligations contained in
this Agreement cannot be satisfied at or prior to the Closing Date, this Agreement may be
canceled by the City. Notice of such cancellation shall be given to the Agency in writing. Upon
any such termination neither the City nor the Agency shall be under any further obligation
hereunder.
Section 8. Parties in Interest. This Agreement shall constitute the entire
agreement between the Agency and the City and is made solely for the benefit of the Agency and
the City (including their successors or assigns). No other person shall acquire or have any right
hereunder or by virtue hereof.
Section 9. Governin�. This Agreement shall be construed and governed in
accordance with the laws of the State of California.
[The remainder of this page is intentionally left blank.]
10926373 3 RWG 1/13/09
IN WITNESS WHEREOF, the CITY OF PALM DESERT and the PALM
DESERT REDEVELOPMENT AGENCY have each caused this Agreement to be signed in its
name by its duly authorized officer, all as of the day and year first above written.
CITY OF PALM DESERT
By
Robert A. Spiegel, Mayor
PALM DESERT REDEVELOPMENT AGENCY
By
[ 1
[Acting] Executive Director
1092637.3 4 RWG 1/13/09
RESOLUTION NO. 555
A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY
AUTHORIZING THE AGENCY'S INVESTMENT IN AND PURCHASE OF
THE CITY OF PALM DESERT'S ENERGY INDEPENDENCE
PROGRAM, LIMITED OBLIGATION IMPROVEMENT BONDS, SERIES
2009A (TAXABLE), APPROVING AS TO FORM AND AUTHORIZING
THE EXECUTION AND DELIVERY OF A BOND PURCHASE
AGREEMENT IN CONNECTION THEREWITH, AND AUTHORIZING
CERTAIN OTHER MATTERS RELATING THERETO
RECITALS:
WHEREAS, the City of Palm Desert (the "City") proposes to sell and issue
its Energy Independence Program, Limited Obligation Improvement Bonds, Series
2009A (Taxable) (the "Bonds") in aggregate initial principal amount not to exceed
$2,500,000, on a private placement basis; and
WHEREAS, the Board (the "Agency Board") of the Palm Desert
Redevelopment Agency (the "Agency") desires to provide authority for the Agency to
invest in and purchase the Bonds from the City and to approve the form of, and
authorize the execution and delivery of a bond purchase agreement ("Purchase
Agreement") which is file in the office of the Secretary of the Agency;
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT
AGENCY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
Section 1. Recitals. The above recitals, and each of them, are true and
correct.
Section 2. Findinqs; Specific Investment Authorization. The Agency
Board hereby finds and determines that the Agency's investment in, and purchase of, a
portion or all of the Bonds, subject to the terms and conditions set forth in this
Resolution, are prudent under the general economic conditions and the anticipated
needs of the Agency. In accordance with Government Code Section 53601, the Agency
Board hereby grants express authority for the Agency to invest in the Bonds, including
but not limited to those Bonds with a term remaining to maturity in excess of 5 years.
Section 3. Purchase Agreement. The Purchase Agreement proposed to
be entered into by the Agency and the Agency, in the form on file with the Secretary,
and the purchase of a portion or all of the Bonds pursuant thereto upon the terms and
conditions set forth therein, are hereby approved. Subject to the provisions of Section 4
below, each of the Chairman and the Executive Director, or their designee (each, an
"Authorized Officer"), acting singly, is authorized and directed, for and in the name and
on behalf of the Agency, to execute and deliver the Purchase Agreement in
substantially said form, with such changes therein as the officer executing the same
may require or approve, including such matters as are authorized by Section 4 hereof
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RESOLUTION NO. 555
(such approval to be conclusively evidenced by such Authorized Officer's execution and
delivery thereofl.
Section 4. Terms of Purchase of Bonds. Each Authorized Officer, acting
singly, is hereby authorized and directed to act on behalf of the Agency to establish and
determine (i) the aggregate principal amount of the Bonds to be purchased by the
Agency, which amount shall not exceed $2,500,000; and (ii) the interest rates on the
Bonds to be purchased by the Agency, provided that the true interest cost shall be at
least 2.5 percent.
Section 5. Other Acts. The Authorized Officers and all other officers of
the Agency 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 effectuate the purposes of this Resolution and the
Purchase Agreement, including but not limited to a certificate, investor letter, or such
other document certifying as to the Agency's qualifications as a purchaser of the Bonds,
as appropriate, and any such actions previously taken by such officers are hereby
ratified and confirmed.
Section 6. Effective Date. This Resolution shall take effect immediately
upon adoption.
PASSED, APPROVED, and ADOPTED this 22nd day of Janua , 2009,
by the following vote, to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, CHAIRMAN
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
PALM DESERT REDEVELOPMENT AGENCY
2
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W
ORDINANCE NO. 1i75
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM
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:
"TITLE 17. PROCEDURES FOR THE ISSUANCE AND SAL'E OF BONDS IN
CONNECTION WITH CHAPTER 29 OF PART 3 OF DIVISION 7 OF THE CALIFORNIA
STREETS AND HIGHWAYS CODE
CHAPTER 1. GENERAL PROVISIONS �
CHAPTER 2. DETERMINATION TO ISSUE BONDS .
CHAPTER 3. ISSUANCE OF BONDS
CHAPTER 4. FORM AND CONTENT OF BONDS
CHAPTER 5. VARIABLE INTEREST RATE BONDS
CHAPTER 6. BOND RECORDS AND PAYMENTS
CHAPTER 7. BOND ANTICIPATION NOTES
CHAPTER 8. ADVANCE RETIREMENT OF BONDS
CHAPTER 9. REDEMPTION FUND DEFICIENCIES
CHAPTER 10. SPECIAL RESERVE FUND
CHAPTER 11. MISCELLANEOUS PROVISIONS
CHAPTER 1 _
GENERAL PROVISIONS
17.01.010 Alternative method. This Title shall be deemed to provide a comp{ete,
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 powe�s 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 shall 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 paymen# 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) "Contract�al 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' p�operties pursuant to the Act.
(e) "Contractual Assessments" means the assessments made pursuant to the
Act. "Contractual Assessments"do not include Administrative Assessments.
(fl "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 pertorm 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. ��
2
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 office� 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. Nofinrithstanding �ny 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 Ciry 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) Deciare 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.
3
Ordinance No. lli�
(b) Specify whether the Bonds shail 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 atl 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 applicabie to other �M�
4
�-ui.nance 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, eithe� 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 diffe�ent 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 othenivise 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
�edemption 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 autho�ize
the use upon the Bonds of an engraved, p�inted, 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.
5
Ordinance No. 1175
CHAPTER 5 w�
VARIABLE INTEREST RATE BONDS
17.OS.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 pcovided 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 inte�est rate or other interest rate mode.
17.05.OS0 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 mey 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 `�
Contractuai 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 a in �"'
p y g principal and
6
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.
CHAPTER 7 •
BOND ANTICIPATION NOTES
17.07.010 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
7
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
8
Ordinamce 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 teast
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 surtender 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 othe►wise to the holde� 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. TMe 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 procedures 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 shaN declare in the Resolution of Intention, whether or not the City will
9
Ordinance No. 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 shal! be clearly stated in the text
of the Bonds issued pursuant to this Title.
CHAPTER 9
REDEMPTION FUND DEFICIENCIES
17.09.010 Withholdi�g 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 wiN 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 hofders 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 untif
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 shail 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. , .
10
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
11
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 paymen#s 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 p�oviding 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. 1I75
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 cf 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 lmprovements 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
13
Ordinance No_ 1175
without regard to whether any portion of this ordinance woutd 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 iitt�day of December 2008, by the following
vote, to wit:
AYES: g�SON, FERGQSON, I�LLY, and SPIEGEL
NOES: �o�
ABSENT: F��
ABSTAIN: xorrE
ZZ.
� ROBERT A. SPIEGEL, O
ATTEST: �
RACHELLE D. SS N, CITh' CL K
CITY OF PALM DESEI�T, CA�IFO IA
�a -�G -o-S
�
14