HomeMy WebLinkAbout3/5/1982 - MINUTES CITY OF PALM SPRINGS
CITY COUNCIL MINUTES
MARCH 5, 1982
An Adjourned Regular Meeting of the City Council was called to
order by Mayor pro tem Field, in the Large Conference Room,
City Hall , 3200 Tahquitz-McCallum Way, on Friday, March 5,
1982, at 4 p.m.
ROLL CALL : Present: Councilmembers Oxrtner and Rose and
Mayor pro tem Field
Absent: Mayor Doyle
LEGISLATIVE ACTION:
1 . MORTGAGE REVENUE BONDS SALE
Recommendation: That the Council authorize sale and
issuance of its single family housing mortgage revenue
bonds, issue of 1982; make certain findings and deter-
minations in connection therewith; and authorize the
execution of certain documents and certain other actions.
Housing Coordinator reviewed his report, dated March 5,
1982, noting that a double A rating for the issue has
been secured from Standard & Poors; and that a. 12 7/8%
coupon rate was obtained, making a 13 1/8% mortgage
interest rate, plus mortgage insurance depending upon
the amount of the down payment. (85)
Jim Chilton, bond underwriter, stated that he was
pleased to have made Palm Springs the first cii;y in
the State to have a sale under the 1980 act in 1982
and to achieve a double A rating without a bank letter
of credit, which is the first in the history of
California, which allowed the bonds to be priced at
a more attractive rate than single k or triple B rating;
that two RFPs were received from banks for an invest-
ment agreement, Bank of America clearly being the
superior of the two; and explained process of securing
the sale orders - list of purchasers shown on Schedule
I of the Purchase Contract (a copy of which is on file
in the Office of the City Clerk. )
John Murphy reviewed various sections of the proposed
resolution, noting that various minor changes may be
needed in the documents to accomodate pricing of the
bonds, and which the City Clerk and/or Mayor is
authorized to make; that page 1 of the purchase con-
tract should reflect a purchase price of 97.1% of par;
that the bond transfer is expected to close on March 25,
1982 at which time the money will change hands; and
explained the function of "special counsel . "
In answer to question by Council , Mr. Chilton stated
that the mortgage rate of 13 1/8% plus private mortgage
insurance is far superior to that which was looked at in
1981 ; and that rush on the State to secure allocations
resulted in a cutback from $36 million to $19.3 million.
Housing Coordinator stated that there was discussion
about going back to the State in 180 days to request
the additional allocation, but it is unknown what criteria
the State will use in assessing the requests.
Council Minutes
3-5-82 Page 2
1 . SALE OF MORTGAGE REVENUE BONDS
Mr. Murphy stated that if there is a perceived need for
an additional allocation, he would urge that the City
pursue that request; and that he understood legislation CONT'D
is pending regarding cities which did not get their (85)
full allocation, and that by having sold the first
portion, the additional may be easier to obtain.
Discussion ensued as to possible alternatives for
news coverage of this event; consensus : await bond
closing on March 25, 1982.
Resolution 14179, approving the actions as recommended,
was presented; after which, it was moved by Rose,
seconded by Ortner, and unanimously carried, Doyle
absent, that Resolution 14179 be adopted.
ADJOURNMENT
There being no further business at 4:30 p.m. , Mayor
pro tem declared the meeting adjourned. ��77
DS
5aUDITH SUM ICH
City Clerk