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HomeMy WebLinkAbout1598 - ORDINANCES - 6/27/2001 ORDINANCE NO. 1598 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS AUTHORIZING SUPPLEMENTS TO THE BOND INDENTURES RELATING TO THE CITY'S ASSESSMENT DISTRICT NO. 157 (RAMON/EVELITA) AND ASSESSMENT DISTRICT 158 (ANDREAS HILLS); THE ADOPTION OF A BOND ' ISSUANCE PROCEDURAL ORDINANCE; AND TILE ISSUANCE AND SALE OF LEASE REVENUE BONDS IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED $3,000,000 FOR THE PURPOSE OF FINANCING ACQUISITION OF ASSESSMENT BONDS, AND APPROVING RELATED AGREEMENTS AND ACTIONS THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS AS FOLLOWS: SECTION 1. The City Council (the "City Council") of the City of Palm Springs (the "City") finds, determines and declares as follows: A. The City has previously issued its City of Palm Springs Assessment District No. 157 (Ramon/Evelita) Limited Obligation improvement Bonds (the "Assessment District No. 157 Bonds") pursuant to the Improvement Bond Act of 1915 (Division 10 of the California Streets and Highways Code) (the"Bond Law") and a Bond Indenture, dated as of April 1, 1992. B. The City has previously issued its Limited Obligation]Improvement Bonds, City of Palm Springs Assessment District No. 158 (Andreas Hills) (the "Assessment District No. 158 Bonds")pursuant to the Bond Law and a Bond Indenture, dated as of October 3, 1990. C. The City has determined at this time to issue its City of Palm Springs 2001 , Limited Obligation Revenue Bonds in the aggregate principal amount of not to exceed $3,000,000 (the "Bonds") for the purpose of providing the funds to acquire the Assessment District No. 157 Bonds and the Assessment District No. 158 Bonds (collectively, the "Assessment Bonds"), to be secured by a pledge of and first lien on the revenues to be derived from the Assessment Bonds, which revenues are designed to be sufficient in time and amount to pay the principal of premium, if any, and interest on the Bonds as the same become due and payable. D. The City is a charter city and municipal corporation organized and existing under and by virtue of the Constitution and laws of the State of California, and as such is authorized to issue the Bonds under and pursuant to the powers of the City with respect to municipal affairs in accordance with Section 200 of the City Charter and Section 5 of Article XI of the California Constitution. E. The City Council of the City wishes at this time to authorize all proceedings relating to the issuance of the Bonds to acquire the Assessment Bonds, and to approve the execution and delivery of all agreements and documents relating thereto. SECTION 2. Adoption of Authorizing Procedures. The City Council hereby authorizes the Bonds to be issued pursuant to the powers of the City with respect to municipal affairs in IRV#12204 v1 1 Ordinance No. 1598 Page 2 accordance with Section 200 of the City Charter and Section 5 of Article XI of the California Constitution. The Bonds shall be issued and sold in accordance with the procedures specified in Article 4 (commencing with Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, excluding therefrom the provisions of Sections 6592.5 and 6599A of the Government Code of the State of California, which are hereby adopted as the procedures to be followed in the issuance and sale of the Bonds,with full force and effect as though the City were an "Authority"under and as defined therein. ' SECTION 3. Appointment of Trustee. BNY Western Trust Company is hereby appointed as Trustee under the Indenture relating to the Bonds. SECTION 4. Issuance of Bonds; Approval of Indenture. The Bonds shall be issued in the maximum principal amount of$3,000,000, pursuant to an Indenture of Trust, dated as of August 1, 2001 (the "Indenture"), by and between the City and BNY Western Trust Company, as trustee (the "Trustee"). The City Council hereby approves the Indenture in substantially the form on file with the City Clerk, together with any changes therein or additions thereto approved by the City Manager, City Manager, Finance Director, the City Clerk or such other official of the City as may be designated by the Council (each an "Authorized Officer"), provided that the execution thereof by an Authorized Officer shall be conclusive evidence of the approval of any such changes or additions. The City Council hereby authorizes and directs an Authorized Officer to execute, and the City Clerk to attest and affix the seal of the City to, the final form of the Indenture for and in the name of the City. The City Council hereby authorizes the delivery and performance of the Indenture. As provided in the Indenture, the proceeds of the Bonds shall be applied by the City to purchase the Assessment Bonds. SECTION 5. Supplemental Assessment Bond Indentures. The City Council hereby approves the call and purchase of the Assessment Bonds pursuant to an Assessment District No. 158 (Andreas Hills) Supplemental Bond Indenture, dated as of August 1, 2001, and an Assessment District No. 157 (Ramon/Evelita) Supplemental Bond Indenture, dated as of August 1, 2001 (collectively, the "Supplemental Assessment Bond Indentures"), each in substantially the form on file with the City Clerk, together with any changes therein or additions thereto approved by the City Manager, City Manager, Finance Director,the City Clerk or such other official of the City as may be designated by the Council (each an "Authorized Officer"), provided that the execution thereof by an Authorized Officer shall be conclusive evidence of the approval of any such changes or additions. The City Council hereby authorizes and directs an Authorized Officer to execute, and the City Clerk to attest and affix the seal of the City to, the final form of the Supplemental Assessment Bond Indentures for and in the name of the City. The City Council hereby authorizes the delivery and performance of the Supplemental Assessment Bond Indentures. SECTION 6. Sale of Bonds. The City Council hereby approves the sale of the Bonds by negotiation with Stone &Youngberg LLC (the "Underwriter"). The Bonds shall be sold pursuant to a Bond Purchase Agreement (the "Bond Purchase Agreement") by and between the City and the Underwriter in the form on file with the City Clerk, together with any changes therein or additions thereto approved by an Authorized Officer, provided that the execution thereof by an Authorized Officer shall be conclusive evidence of the approval of any such additions and changes. The Bond Purchase Agreement shall be executed in the name and on behalf of the City by an Authorized Officer upon submission of a proposal by the Underwriter to purchase the Bonds; provided, however, that such proposal is acceptable to an Authorized Officer and is consistent with the requirements of this Resolution. The amount of Underwriter' discount shall be not more than 1.75% of the par amount of the Bonds and the true effective rate of interest to be home by the IRV#12204 vl -2- Ordinance No.j518 Page 3 Bonds (taking into account any original issue discount on the sale thereof) shall not exceed 7%per annum. SECTION 7. Official Statement. The City Council hereby approves, and hereby deems nearly final within the meaning of Rule 15c2-12 of the Securities Exchange Act of 1934, the preliminary Official Statement describing the Bonds in substantially the form on file with the City Clerk. An Authorized Officer is hereby authorized to execute an appropriate certificate stating the City Council's determination that the Preliminary Official Statement has been deemed nearly final within the meaning of such Rule. Distribution of the preliminary Official Statement in connection with the sale of the Bonds is hereby approved. An Authorized Officer is hereby authorized and directed to approve any changes in or additions to a final form of said Official Statement, provided that the execution thereof by an Authorized Officer shall be conclusive evidence of the approval of any such changes and additions. The City Council hereby authorizes the distribution of the final Official Statement by the purchaser of the Bonds. The final Official Statement shall be executed in the name and on behalf of the City by an Authorized Officer. SECTION 8. Financial Advisor. Harrell & Company Advisors, LLC, Orange, California, is hereby appointed as the financial advisor to the City with respect to the Bonds. SECTION 9. Bond Counsel. The law firm of Burke, Williams & Sorensen, LLP, Irvine, California, is hereby appointed as Bond Counsel with respect to the]Bonds. SECTION 10. Disclosure Counsel. The law firm of Jones Hall, San Francisco, California, is hereby appointed Disclosure Counsel with respect to the Bonds. SECTION 11. Official Actions. The Mayor, City Manager, City Manager, Finance Director, City Clerk and any and all other officers of the City are hereby authorized and directed, for and in the name and on behalf of the City, to do any and all things and take any and all actions, including execution and delivery of any and all assignments, certificates, requisitions, agreements, notices, consents, instruments of conveyance, warrants and other documents, which they, or any of them, may deem necessary or advisable in order to consummate the issuance and sale of the Bonds and any of the other transactions contemplated by the documents approved pursuant to this Resolution. Whenever in this resolution any Authorized Officer is authorized to execute or countersign any document or take any action, such execution, countersigning or action may be taken on behalf of such officer by any person designated by such Authorized Officer to act on his or her behalf in the case such officer shall be absent or unavailable. SECTION 12. Certification; Publication. The City Clerk is hereby authorized and directed to certify to the passage of this Ordinance, and to cause the same or a summary thereof to be published at least once in a newspaper of general circulation in the City, within fifteen days after its adoption. IRV*12204 v1 -3- Ordinance No. 1598 Page 4 ADOPTED THIS 27th day of June 2001. AYES: Members Hodges, Reller-Spurgin and Mayor pro tem Oden NOES: Member Jones ABSENT: Member Kleindieust AT CITY OF PALM SPRINGS, CALIFORNIA -4� . �Q� City Clerk Mayor REVIEWED & APPROVED I HEREBY CERTIFY that the foregoing Ordinance 1598 was duly adopted by the City Council of the City of Palm Springs, California, in a meeting held on the 27th day of June 2001, and that same was published in the DESERT SUN, a newpaper of geaera• irculation, ornn_July l2, 2001. PATRICIA A. SANDERS City Clerk any IRV#12204 v1 -4-