HomeMy WebLinkAboutRes 05-65 and 504 Bond Issue - Portola Avenue Bridge at Whitewater ChannelResolution No. 05-65
Resolution No. 504
CITY OF PALM DESERT/PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: APPROVAL OF CITY COUNCIL RESOLUTION NO.0565 , DECLARING
ITS INTENT TO ISSUE BONDS OR OTHER OBLIGATIONS OR CAUSE
BONDS OR OTHER OBLIGATIONS TO BE ISSUED TO FINANCE THE
INSTALLATION AND CONSTRUCTION OF THE PORTOLA AVENUE
BRIDGE AND REIMBURSE CERTAIN EXPENDITURES FROM THE
PROCEEDS OF THE BONDS AND RESCINDING RESOLUTION NO.05-40
APPROVAL OF REDEVELOPMENT AGENCY RESOLUTION NO. 504
DECLARING ITS INTENT TO ISSUE BONDS OR OTHER OBLIGATIONS
OR CAUSE BONDS OR OTHER OBLIGATIONS TO BE ISSUED TO
FINANCE THE INSTALLATION AND CONSTRUCTION OFTHE PORTOLA
AVENUE BRIDGE AND REIMBURSE CERTAIN EXPENDITURES FROM
THE PROCEEDS OF THE BONDS AND RESCINDING RESOLUTION NO.
502
SUBMITTED BY: DENNIS M. COLEMAN REDEVELOPMENT/HOUSING FINANCE
MANAGER
DATE: AUGUST 25, 2005
CONTENTS: CITY COUNCIL RESOLUTION NO. 05- 65
REDEVELOPMENT AGENCY RESOLUTION NO. 504
Recommendation:
That the City Council approves Resolution No. 05- 65, declaring its intent
to issue bonds or other obligations or cause bonds or other obligations to be
issued to finance the installation and construction of the Portola Avenue
Bridge and reimburse certain expenditures from the proceeds of the bonds
and rescinding Resolution No. 05-40.
2. That the Redevelopment Agency approves Resolution No. 504 , declaring
its intent to issue bonds or other obligations or cause bonds or other
obligations to be issued to finance the installation and construction of the
Portola Avenue Bridge and reimburse certain expenditures from the
proceeds of the bonds and rescinding Resolution No. 502.
Executive Summary:
Approval of the resolutions will rescind the resolutions adopted on June 9, 2005 and increase the
declared reimbursement amount from $6,000,000 to $7,250,000. These resolutions allow the
Agency to reimburse any funds expended on the Portola Avenue Bridge with bond funds and retain
the original flexibility of the funds for private activity.
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Resolution No. 05-65
Resolution No. 504
Staff Report
Approval of City Council and Redevelopment Agency Resolution Declaring Its Intent to
Issue Bonds or Other Obligations to Finance the Installation of the Portola Avenue
Bridge and Rescinding Previous Resolutions
August 25, 2005
Page 2
Discussion:
On June 9, 2005 the City and the Agency passed respective resolutions declaring their intent to
issue bonds to pay for the construction and installation of the Portola Avenue Bridge. The
expected construction cost of the bridge was $8,000,000. Subsequent to this, the bids for the
construction were received and awarded, and the winning bid was approximately $2,000,000 higher
than anticipated.
This has necessitated the need for a higher reimbursement amount to be declared. The previous
resolutions had an amount to be reimbursed by the bonds not -to -exceed $6,000,000 including
issuance costs. The amount of the City/Agency's matching portion of the construction and the
construction management contracts is approximately $5,944,000, and with issuance costs this
could exceed our declared amount of $6,000,000.
The new resolutions set the declared amount to be $7,250,000. This amount gives us the flexibility
to proceed and take care of unforeseen emergencies.
Staff is recommending the approval of the resolutions which increase the declared amount to be
reimbursed to $7,250,000, and rescind the resolutions adopted on June 9, 2005.
Submitted By:
Dennis M. Coleman
Redevelopment/Housing Finance Manager
DMC:mh
Approval
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ACM, Redevelop
Carlos
Executive Director
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Department Head:
David Yn
Director eedeve opment/Housing
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Paul S. Gibson
Director of Finance/Treasurer
RESOLUTION NO. 05. 65
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM DESERT DECLARING ITS INTENT TO ISSUE BONDS
OR OTHER OBLIGATIONS OR CAUSE BONDS OR OTHER
OBLIGATIONS TO BE ISSUED TO FINANCE THE
INSTALLATION AND CONSTRUCTION OF THE PORTOLA
AVENUE BRIDGE AND TO REIMBURSE CERTAIN
EXPENDITURES FROM PROCEEDS OF THE BONDS AND
RESCINDING RESOLUTION NO. 05-40
RECITALS:
A. The City Council of the City of Palm Desert (the "City") intends to issue bonds
or other obligations (the "Bonds"), or cause Bonds to be issued, to finance the costs of the
installation and construction of the Portola Avenue Bridge and appurtenant work (the
"Project").
B. The City or the Palm Desert Redevelopment Agency (the "Agency") expects
to expend moneys (other than moneys derived from the issuance of bonds or other
obligations) on expenditures relating to the costs of the Project prior to the issuance of the
Bonds. All expenditures will be properly chargeable to a capital account under general
federal income tax principles. The City and the Agency reasonably expect to reimburse
such capital expenditures with the proceeds of the Bonds.
C. The City and the Agency expect that the maximum principal amount of Bonds
which will be issued to pay for the costs of the Project (and related issuance costs) will not
exceed $7,250,000.
D. At the time of the reimbursement, the City and the Agency will evidence the
reimbursement in a writing which identifies the allocation of the proceeds of the Bonds for
the purpose of reimbursing the City or Agency for the capital expenditures made prior to
the issuance of the Bonds.
E. The City and the Agency expect to make the reimbursement allocation no
later than 18 months after the later of (i) the date on which the earliest original expenditure
for the Project is paid or (ii) the date on which the Project is placed in service (or
abandoned), but in no event later than three years after the date on which the earliest
original expenditure for the Project is paid.
F. The City and the Agency will not, within one year of the reimbursement
allocation, use the proceeds of the Bonds received in the reimbursement allocation in a
manner that will result in the creation of replacement proceeds of the Bonds or another
issue (e.g., the City and the Agency will not pledge or use the proceeds received for the
payment of debt service on the Bonds or another issue, except that the proceeds of the
Bonds can be deposited in a bona fide debt service fund).
P6401/10331833827.1
Resolution No. 05-65
G. This Resolution is intended to be a "declaration of official intent" in
accordance with Section 1.150-2 of the Treasury Regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM DESERT
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. In accordance with Section 1.150-2 of the Treasury Regulations, the City
Council hereby declares its intention to issue Bonds, or cause Bonds to be issued, in a
principal amount not expected to exceed $7,250,000, the proceeds of which will be used to
pay for the costs of the Project (and related issuance costs), including the reimbursement
to the City or the Agency for capital expenditures relating to the Project made prior to the
issuance of the Bonds.
Section 2. Resolution No. 05-40 is hereby rescinded.
Section 3. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 25th day of August 2005, by the
following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Rachelle D. Klassen, City Clerk
City of Palm Desert, California
2
P6401/ 1033/833827.1
Buford A. Crites, Mayor
RESOLUTION NO. 504
A RESOLUTION OF THE PALM DESERT
REDEVELOPMENT AGENCY DECLARING ITS INTENT
TO ISSUE BONDS OR OTHER OBLIGATIONS OR CAUSE
BONDS OR OTHER OBLIGATIONS TO BE ISSUED TO
FINANCE THE INSTALLATION AND CONSTRUCTION OF
THE PORTOLA AVENUE BRIDGE AND TO REIMBURSE
CERTAIN EXPENDITURES FROM PROCEEDS OF THE
BONDS AND RESCINDING RESOLUTION NO. 502
RECITALS:
A. The Palm Desert Redevelopment Agency (the "Agency") intends to issue
bonds or other obligations (the "Bonds"), or cause Bonds to be issued, to finance the
costs of the installation and construction of the Portola Avenue Bridge and appurtenant
work (the "Project").
B. The Agency or the City expects to expend moneys (other than moneys
derived from the issuance of bonds or other obligations) on expenditures relating to the
costs of the Project prior to the issuance of the Bonds. All expenditures will be properly
chargeable to a capital account under general federal income tax principles. The
Agency reasonably expects to reimburse such capital expenditures with the proceeds of
the Bonds.
C. The Agency expects that the maximum principal amount of Bonds which
will be issued to pay for the costs of the Project (and related issuance costs) will not
exceed $7,250,000.
D. At the time of the reimbursement, the Agency will evidence the
reimbursement in a writing, which identifies the allocation of the proceeds of the Bonds
for the purpose of reimbursing the Agency for the capital expenditures made prior to the
issuance of the Bonds.
E. The Agency expects to make the reimbursement allocation no later than
18 months after the later of (i) the date on which the earliest original expenditure for the
Project is paid or (ii) the date on which the Project is placed in service (or abandoned),
but in no event later than three years after the date on which the earliest original
expenditure for the Project is paid.
F. The Agency will not, within one year of the reimbursement allocation, use
the proceeds of the Bonds received in the reimbursement allocation in a manner that
will result in the creation of replacement proceeds of the Bonds or another issue (e.g.,
the Agency will not pledge or use the proceeds received for the payment of debt service
on the Bonds or another issue, except that the proceeds of the Bonds can be deposited
in a bona fide debt service fund).
P64011 1033: 833823.1
Resolution No. 504
G. This Resolution is intended to be a "declaration of official intent" in
accordance with Section 1.150-2 of the Treasury Regulations.
NOW, THEREFORE, THE PALM DESERT REDEVELOPMENT AGENCY
HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS:
Section 1. In accordance with Section 1.150-2 of the Treasury Regulations, the
Agency hereby declares its intention to issue Bonds, or cause Bonds to be issued, in a
principal amount not expected to exceed $7,250,000, the proceeds of which will be
used to pay for the costs of the Project (and related issuance costs), including the
reimbursement to the Agency or the City for capital expenditures relating to the Project
made prior to the issuance of the Bonds.
Section 2. Resolution No. 5-02 is hereby rescinded.
Section 3. This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 25th day of August 2005, by the
following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
Buford A. Crites, Chairman
ATTEST:
Rachelle D. Klassen, Secretary
2
P640P1033/833823.1