HomeMy WebLinkAbout2/16/2005 - STAFF REPORTS (17) 31
DATE: February 16, 2005
MEMO TO: City Council
FROM: Director of Finance & Treasurer
RE: Increase in Parking Fines
RECOMMENDATION:
It is recommended that the City Council approve an amended bail schedule for parking violations to
make all fines $50 except for Handicap Parking violations, and Handicap Wheelchair Access
violations, which would remain at $275 and $100, respectively.
SUMMARY:
The proposed action would increase most of the parking violations by varying amounts to a uniform
$50 fine, keeping the Handicap parking violations at the same rate.
BACKGROUND:
The City's current bail schedule for parking violations (see attached copy) was last adjusted on
September 2, 1998. The parking fines in most nearby communities are substantially higher (see
attached schedule).
Because of increased costs (primarily due to the Parking Structure) and no growth in revenue, the
Parking Fund requires an annual General Fund subsidy of$200,000. The increase in the fines to
$50 will increase annual revenue by about $60,000. The simplified bail schedule will also make
administration of parking control easier.
A Minute Order amending the bail schedule is attached.
Submitted by Approved
Thomas M. Kanarr David H. Ready dF'
Director of Finance & Treasurer City Manager
Attachment: Current and Proposed Bail schedule
Comparison Schedule
Minute Order
EM z M
G)
PARKING CITATIONS BAIL SCHEDULE
PSMC DESCRIPTION BAILAMOUNT
CURRENT PROPOSED
RETAIL
5.38.070 Parking within spaces 18.00 50.00
5.38.080 Improper parking position 18.00 50.00
538.140 Expired meter 18.00 50.00
5.38.150 Valey parking permit required 55.00 50.00
5.38.170 Authorized valet zones 55.00 50.00
AIRPORT
11.33.080 Unauthorized parking-airport property 40.00 50.00
11.34.070 Loading&unloading passengers-airport 25.00 50.00
11.44.050 Parking rule 78.2 24.00 50.00
12.28.060 Parallel, over 18"from curb 22.00 50.00
12.28.090 Posted No Parking (anytime) 22.00 50.00
12.28.100 Noise making devices prohibited 24.00 5000
12.28.110(b) Temporary No Parking Sign 24.00 50.00
12.28.130 Emergency zone(private property) 30.00 50.00
12.28.130(b) Parking on private property(w/o permission) 30.00 50.00
12.28.130(c7) Handicapped zone 275.00 275.00
12.28.130(c8) Red zone (private property) 46.00 50.00
CVC2250.8(2) Handicapped loading zone (Hatch marks) 100.00 100.00
12.28.140 Locking ignition required 24.00 50.00
12.32.010 Time limited parking 22.00 50.00
12.32.030 Parked using more than one space 18.00 50.00
12.32.040 No parking midnight to 6am 24.00 50.00
12.32.050 Patron parking only 22.00 50.00
12.32.060 City hall parking lot 24.00 50.00
12.32.070 Staff parking only 22.00 50.00
12.32.080 No parking areas/improper parking 18.00 50.00
12.32.080.5 Parked causing hazard/endangerment 18.00 50.00
12.32.100 Red zone(no parking anytime 28.00 50.00
12.32.100 Yellow zone(7:00 am to 6:00pm 28.00 50.00
12.32.100 White zone(7:00 am to 6:00pm 28.00 50.00
12.32.100 Green zone (9:002m to 6:00pm 28.00 50.00
12.36.030 Reserve parking (rental space) 22.00 50.00
12.36.090 Improper parking 22.00 50.00
12.36.140 Meter expired 22.00 50.00
12,40.030 Restricted parking only-Airport 30.00 50.00
12.40,040 Employee parking only-Airport 30.00 50.00
12.80.010 Operating vehicle on street after street closure 50.00 50.00
PSCVC
21113 Parking on public grounds 33.00 50.00
22500.1 Parking in fire lane 44.00 50.00
22500(a) Parking within an intersection 50.00 50.00
22500(b) Parking on crosswalk 5000 50.00
22500(d) Parking within 15'of a fire station driveway 50.00 50.00
22500(e) Blocking driveway 50.00 50.00
22500(f) Parking on sidewalk 5000 50.00
22500(g) Parked next to road construction 50.00 50.00
22500(h) Double parked 50.00 50.00
22500 1) Parked blocking a wheelchair ramp 44.00 50.00
22502(a) Parallel park on right 33.00 50.00
22505(a) State highway parking 30.00 50.00
22514 Parking within 15'fire hydrant 50.00 50.00
22515 Unattended with engine running 50.00 50.00
22522 Parking near sidewalk access ramp 44.00 50.00
22651 (b) Creating a traffic hazard 18.00 50.00
22651 (1) Parked in posted towaway zone 18.00 50.00
PARKING BAIL AMOUNT COMPARISON BY CITY
Common Infractions
PALM SPRINGS I BANNINGI CATH CITY COACHELLA DHS INDIO
Time limit parking 22.001 45.001 50.00 100.00 -
Red zone I 1 28.00 45.001 50.00 60.00 100.00 55.00
Handicap ed zone 275.00 325001 275.00 255.00 275.00 255.00
Handica ed loadin zone 100.00 325.00 50.00 25.00 100.00 255.00
Pk an public rounds 33.00 35.00 50.00 100.00 103.00
No parking zone 18.00 35.00 50.00 60.00 100.00 55.00
Ci Hall k lot 24.00 55.00
15 ft of fire h Brant 50.00 35.00 50.00 37.00 100.00 80.00
Taxi load in /white 28.00 80.00 50 00 100.00 55.00
Yellow zone 7am-6 m 28.00 45.00 50.00 100.00 55.00
Red zone private prop. 46.00
Green zone gam-6 m 20 min 28.00 45.00 100.00 55.00
Blockin drivewa 50.001 35.00 50.00 110.00 100.00 55.00
Pkg causing hazard 18.00 45.00 110.00 100.00 55.00
Commerical vehicle prohibited 100.00 80.00 50.00 110.00 100.00
Parallel over 18"from curb 22.00 35.00 50.00 37.00 60.00
Pasted NO PARKING anytime 22.00 35.00 50.00 110.00 100.00 55.00
Pdvate prToperly withoutperm) 2400 50.00 100.00
Reserved Pkq(citv lots 22.00 55.00
Fire lane 44.00 80.00 50.00 100.001 80.00
Expired Re to s 59.00 60.00 60.00 50.00 40.00
MINUTE ORDER NO.
AMENDING THE MASTER BAIL SCHEDULE,
AS AMENDED, TO REFLECT INCREASED
BAIL LEVELS. AS ON FILE IN THE OFFICE
OF THE CITY CLERK, FOR THE CITY
MANAGED PARKING PROGRAM,
I HEREBY CERTIFY that this Minute Order, amending the Master Bail Schedule, as
amended, to reflect increased bail levels, as on file in the Office of the City Clerk, forthe
City Managed Parking Program, was adopted by the City Council of the City of Palm
Springs, California, in a meeting thereof held on the 16th day of February, 2005.
JAMES THOMPSON
City Clerk
DATE: February 16, 2005
TO: City Council
FROM: City Manager
By: Procurement & Contracting Manager
REPORT OF EMERGENCY PURCHASES
RECOMMENDATION
Receive and file a report of the emergency purchases made in order to mitigate storm damages
related to the December, 2004 declaration of a local emergency.
SUMMARY
The City Council will receive and file a report of emergency purchases over $25,000 relating to
the local emergency declared in December, 2004.
BACKGROUND
The Palm Springs Municipal Code Section 7.04.040 requires the reporting of transactions over
$25,000 made pursuant to the declaration of an emergency.
City staff made a number of emergency purchases to mitigate storm damages pursuant to
Executive Order No. 2004-01 declaring the existence of a local emergency (ratified by City
Council via Resolution 21175 dated January 5, 2005).
Those transactions amounting to greater than $25,000 are:
Purchase Order 516169 to Dateland Construction Company in the approximate amount of
$221,580 (final bills have not yet been received):
Services provided include:
• cleanup of storm debris on Indian Avenue and Araby Road;
• re-construction of 1522 feet of damaged roadway of Indian Avenue;
• re-construction of 700 feet of damaged roadway of Araby Road
Purchase Order 516170 to James Rue Construction Company in the approximate amount of
$150,000 (services are ongoing):
Services provided at Tahquitz Creek Golf Resort include:
• debris removal on Resort and Legends courses;
• fairway restoration on Resort and Legends courses;
• replacement of cart paths on resort and Legends courses;
• re-grading fairways in the wash on the Legends course;
• re-construction of concrete cart crossing on the Legends course.
Note: On February 4, 2005 President Bush declared a major disaster for California. Michael D.
Brown, Under Secretary of Homeland Security for Emergency Preparedness and Response,
said federal funds will be provided for the state and affected local governments and certain
private non-profit organizations to pay 75 percent of the eligible costs for repairing or replacing
damaged facilities in the counties of Los Angeles, Orange, Riverside, San Bernardino, San
Diego, Santa Barbara and Ventura. The funding also covers state and local government costs
for debris removal and emergency services related to the disaster.
i
BR`UCE, . JO NSON
Procurement &Contracting Manager
DAVID H. READY ,
City Manager �� '
T>
DATE: February 16, 2005
TO: City Council
FROM: Director of Finance & Treasurer
RE: Trust &Agency Fund Dormant Accounts
RECOMMENDATION:
It is recommended that the City Council approve a resolution declaring as surplus 26 dormant
accounts held in the Trust & Agency Fund totaling $123,732.82.
SUMMARY AND BACKGROUND:
The Trust &Agency Fund is the repository of various types of deposits that are generally refundable,
such as bid bonds or dust control deposits. Hundreds of deposits are received and refunded every
year. However, over the years, some of these deposits have become dormant. Staff has been
unable to locate the companies or individuals who paid in these deposits. All of the deposits were
received at least 3 years ago.
Under State law, the City Council must first declare these deposits as surplus, publish a notice in a
newspaper and allow 45 days for claims to be filed. At the expiration of the claims period, any
remaining unclaimed accounts will be transferred to the City's General Fund.
Submitted by j Approved by
Thomas M. Kanarr David H. Ready
Director of Finance & Treasurer City Manager f
Attachments: List of deposits
Resolution
T & A DEPOSITS
*AMERICAN OPEN AIR MARKETS TR 38475 2-9-94
Farmer's Market deposit $800.00
AYA INVESTMENTS TR 84226 8-6-87
Street improvement cash bond $4,124.82
southeast corner of Palm Canyon
& Camino Monte Vista
*THE BANK OF CALIFORNIA TR 47213 1-13-95
Completion of parking lot $5,000.00
improvements, landscaping,
building & signage
*BERGHEER CALIFORNIA TR 97223 7-27-99
El Mirador—TTM 29075 $10,000.00
*CAESARS WORLD (Last transaction 10-23-03) $71.35
EIR deposit
COMMUNITY RESOURCE PROGRAM (Last transaction 9-7-99) $10,950.00
P. S. Energy Services agreement
DESERT STARS RESORT TR 10717 9-22-99
Escrow deposit $3,000.00
*DUCHOWNY, ROGER TR 1039 9-30-99
Performance bond $500.00
GOLDEN STATE ENTERPRISES TR 9275 4-5-00
Restriping/Retiming—Ramon @ El Cielo $1,740.00
*GLEN IVY CORP. TR 14365 4-5-90
Bond for landscaping and access $7,000.00
equipment
:%H J H CONSTRUCTION TR 33739 11-1-01
Improvement bond—plaster wall $2,500.00
HOLLYWOOD STAR'S DINER TR 56715 11-6-95
Ensure completion of landscaping $500.00
marquis sign
LAKE, JOHN, DDS TR 8632 3-23-00
Performance bond $500.00
LUSARDI CONSTRUCTION CO. TR 67734 10-11-96
Ensure completion of landscaping $7,040.00
*P.S. CENTER LTD. (Last transaction 7-18-97) $5,000.00
Dust control bond, 1717 E. Vista Chino
PSI PROTECTION SERVICES TR 52176 6-7-95
INDUSTRIES, L.P. $1,291.20
Bid bond security, RFP 6-95
*PALM CANYON ASSOCIATES TR 57070 3-13-84
Blowsand control guarantee $1,500.00
*PALM CANYON PLAZA ASSOCIATES TR 78416 12-31-86
172 N. Palm Canyon Drive $3,000.00
^PALM SPRINGS MARKET FAIR (Last transaction 12-11-02) $1,250.00
Dust control bond
PALOS VERDES VILLAS (Last transaction 2-7-96) $16,881.45
Dust control bond
PAROCELA GROUP LLC TR 12416 6-15-00
$3,000.00
SPECIALTY RESTAURANTS CORP. TR 88358 9-23-98
Construction bond, 445 Via Altamira $1,500.00
STARKEY COMPANY TR 53523 7-27-95
Dust control bond, Jasmine Tract $11,740.00
STREBE TRUST EXCHANGE TR 13282 7-6-00
Dust control bond $10,000.00
*TUMANJAN &TUMANJAN TR 75888 9-26-86
INTESTMENTS, INC. $5,000.00
(Faithful performance bond—TR 14416)
WINTEC LTD. (Last transaction 3-5-99) $9,844.00
Enviromnental fees
TOTAL $123, 332.82
*Deposits previously released but returned due to lack of current address.
Prepared by Sharon Ainsworth
2-1-05
RESOLUTION NO.
OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS,
CALIFORNIA, DECLARING 36 DORMANT DEPOSITS IN
THE CITY'S TRUST AND AGENCY FUND AS SURPLUS,
ESTABLISHING PROCEDURE FOR CLAIMING SAID
DEPOSITS AND AUTHORIZING THE TRANSFER TO THE
CITY'S GENERAL FUND OF ANY ACCOUNTS REMAINING
UNCLAIMED AFTER THE EXPIRATION OF THE CLAIM
PERIOD.
WHEREAS, the City accepts deposits for a variety of reasons into its Trust and Agency Fund; and
WHEREAS, several of those deposits are dormant and have had no activity for at least three
years; and
WHEREAS, the City has not been able to locate the owners of the deposits; and
WHEREAS, State law prescribes the procedures for declaring these deposits as surplus.
NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs, to declare
the deposits to be surplus, direct the Director of Finance to follow the prescriptions of State law
regarding the posting of notices for the filing of claims, and, 45 days after the first publication of the
notice, authorize any unclaimed deposits to be transferred to the City's General Fund.
ADOPTED this day of 12005.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
By
City Clerk City Manager
REVIEWED &APPROVED AS TO FORM
DATE: February 16, 2005
TO: City Council
FROM: Director of Finance & Treasurer
RE: Sale of Vehicle License Fee (VLF) Gap Loan
RECOMMENDATION:
It is recommended that the City Council approve the sale of VLF Gap Loan of $746,070 to California
State Communities Development Authority (CSCDA) for an amount not less than $671,000, with the
proceeds coming from CSCDA's taxable bond issue.
SUMMARY:
The State of California underpaid the vehicle license fees due to the City in FY 03-04 by $746,070,
and has promised to repay that amount by August 15, 2006. The proposed action would sell that
receivable to CSCDA, which would issue bonds secured by the State's promise of repayment. The
actual amount received will depend on interest rates available at the date of issuance.
BACKGROUND:
Cities have received a major portion of Vehicle License Fees ("Car Tax") from the State for many
years. Although the right to this revenue is part of the State Constitution, the State Legislator has
the ability to change the amount charged. The State did this starting in 1999 and for several years
made up the difference between the normal amount due to cities and the amount actually charged to
vehicle owners out of State General Fund revenues. This was known as the State "backfill."
The State's budget problems and the recall of Governor Davis combined to produce the
underpayment in July through September, 2003. The State booked this as a "loan" from the cities
and counties to the State, hence the term "VLF Gap Loan." The State has promised to repay this by
August, 2006.
There is a risk that the State will renege on its promise to pay back the VLF Gap loans. Via the
CSCDA's bond issue, the City has the opportunity to shift this risk to the banks that underwrite the
bond issue. The cost to the City of this risk transfer will be $70,000. If the State doesn't fulfill its
promise (a very real possibility), the City could not be held responsible. Bank underwriters of the
bond issue would have recourse only to the State.
CSCDA will issue both taxable and tax exempt components in the bond issue. Staff is
recommending participation in the taxable portion because it maximizes the City's flexibility on how
the money can be spent. The proceeds from a tax-exempt issue would have to be spent on capital
projects and would have time limitations. Because the CSCDA's bond issue will only be for 14 to 18
months, the additional interest cost of a taxable issue is fairly minimal, about $7000 on the City's
portion.
Z , �.
Page 2
Attached are copies of the 11/17/04 memo and a 12/14/04 memo from the League of California
Cities which add a few details to the proposal. The resolution was prepared by the bond counsel for
the VLF Gap Loan Financing Program, Orrick, Herrington & Sutcliffe, LLP
Submitted by: Approved: y
Thomas M. Kanarr David H. Ready -
Director of Finance & Treasurer City Manager
Attachments: 11/17/04 Memo
12/14/04 Memo
Resolution
'z
DATE: November 17, 2004
MEMO TO: City Manager
FROM: Director of Finance &Treasurer
RE: Sale of Vehicle License Fee (VLF) Gap Loan
At the 11/10/04 Study Session, I briefly mentioned that the City should seriously consider selling the
VLF Gap Loan receivable. Attached is a memorandum from the underwriter, E.J. De La Rosa & Co.,
Inc., which explains the process in detail.
To summarize, the main points are:
1) the City has a $746,070 receivable from the State of California due to an underpayment
of the VLF in FY 02-03
2) the State has promised to repay the VLF Gap Loan sometime after August, 2006
3) the California State Communities Development Authority (CSCDA) has offered to
purchase the receivable at a price somewhere between 90% and 96% of the face value,
meaning the City could receive somewhere between $671,000 and $716,000.
4) the CSCDA will raise the money for the purchase of the VLF Gap Loans from a bond
issue secured solely by the State's promised repayment.
5) The City would have no further obligation to the buyers of the CSCDA's bond issue.
I strongly recommend that the City move forward on accepting this proposal. The benefit to the City
is that it
eliminates the uncertainly of collecting the VLF Gap Loan from the State,
enables the City to invest the proceeds of the sale at least 18 months earlier then would be
available by waiting for the State to pay.
provides additional funds Immediately that could be used for capital projects, reducing the
current year's operating deficit, or be held in reserves,
Assuming we accept the program, the major choice facing the City is whether to dedicate the
proceeds of the sale to capital projects or to use the proceeds for operations. The former would
allow the City to participate in the tax-exempt portion of CSCDA'"s bond issue, and realize a higher
payment because of the lower interest rates. The latter choice would require the City to participate in
the taxable portion of CSCDA's bond issue. This would reduce the amount received by about
$7,000, but would allow the maximum flexibility on how the proceeds are spent.
The first step is to complete a non-binding participation form. With your approval, I will do that.
Council will need to adopt a resolution authorizing the sale of the VLF Gap Loan in January, 2005.
Please let me know if you'd like to have this as a discussion item on a study session first, or simply
put on as an action item at a Council meeting.
I've discussed this with the City's Financial Advisor, Suzanne Harrell, and at this point, absent a big
spike in interest rates, neither of us can see a downside to becoming part of this transaction.
If you or the City Council need additional information or have any questions, please let me know...
C-3)
1400 K Street, Suite 400 • Sacramento, California 95814
LEAGUE CALIF Phone: 916.658.8200 Fax: 916.658.8240
LE C I T I E S www.cacities.org
TO: City Managers and Finance Directors
FROM: Chris McKenzie, Executive Director
DATE: December 14, 2004
SUBJECT: VLF Gap Loan Financing Program
You will recall that in FY 2003-2004 the State failed to make 3 months of VLF backfill
payments to cities and counties resulting in a VLF funding gap ("VLF Gap Loan"). At
that time, the State agreed to make these VLF gap loan payments by August 15, 2006, but
many of us have doubts it will happen due to the state's continuing deficit. During the
negotiations last summer that led to the approval of SCA 4 (Prop. IA), the League
focused on getting the strongest possible guarantee of repayment of the "VLF Gap Loan".
In addition to the requirement of SCA 4 (Prop. IA) that the state repay the VLF Gap
Loan before the State can ever "borrow" local property taxes, we asked for authority as
well for cities and counties to sell this VLF "receivable" to a joint powers authority in
which most cities and counties already participate (California Communities).
We recently notified cities this program has been developed and is now available. It
provides a city or county the opportunity to sell their VLF Gap Loan debt for an upfront
fixed price of about 92 to 95% (estimated) of the amount receivable from the state rather
than wait for possible payment in 2006. California Communities is planning to issue
bonds and use the proceeds to purchase the VLF receivables and pay financing costs
("VLF Bonds"). California Communities will pledge the VLF receivables to secure
payment on the VLF Bonds. A city's sale of its VLF receivable is irrevocable and
investors will have no recourse to the city if the State does not repay the VLF gap loan.
Many cities have already expressed interest in this program. Some reasons cities find it
attractive are:
• Provides immediate cash relief.
• Transfers the risk of non-payment by the State to bondholders.
• Levels out cash flow from the State over the next few years.
One city manager summed it up this way:
"This program is great! I wish every city would participate. Besides the immediate benefits
to the city, ...it effectively ensures full repayment because receivables sold to bondholders are
protected by contract. And even if the State did fail to pay, it would not be the cities'fight."
At the California Communities website, it is very easy to find your city's VLF gap loan
amount. You'll also find more information, an online application form and resource
people to contact. Here's the link: http://ww wy cacommunities com/. It's not too late to
enroll. Check out the website, or contact Dan Harrison on the League staff at 916-658-
8267 or dharrison@,)cacities.org.
RESOLUTION NO. �9 '�
CITY COUNCIL
OF THE
CITY OF PALM SPRINGS
A RESOLUTION APPROVING THE FORM OF AND AUTHORIZING THE
EXECUTION AND DELIVERY OF A PURCHASE AND SALE AGREEMENT
AND RELATED DOCUMENTS WITH RESPECT TO THE SALE OF THE
SELLER'S VEHICLE LICENSE FEE RECEIVABLE FROM THE STATE;
AND DIRECTING AND AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, certain public agencies within the State of California (the "State") are
entitled to receive certain payments payable by the State to each such local agency on or before
August 15, 2006, in connection with vehicle license fees pursuant to Section 10754.11 of the
Califomia Revenue and Taxation Code ("VLF Gap Repayments");
WHEREAS, the City of Palm Springs (the "Seller") is entitled to and has determined to
sell all right, title and interest of the Seller in and to the "VLF Receivable", as defined hi Section
6585(i) of the California Government Code (the "VLF Receivable"), namely, the right to
payment of moneys due or to become due to the Seller out of funds payable in connection with
vehicle license fees to a local agency pursuant to Section 10754.11 of the California Revenue
and Taxation Code;
WHEREAS, the California Statewide Communities Development Authority, a joint
exercise of powers authority organized and existing under the laws of the State(the "Authority"),
has been authorized pursuant to Section 6588(w) of the California Government Code to purchase
the VLF Receivable;
WHEREAS, the Authority desires to purchase the VLF Receivable and the Seller desires
to sell the VLF Receivable pursuant to a purchase and sale agreement by and between the Seller
and the Authority in the form presented to this City Council (the "Sale Agreement") for the
purposes set forth herein;
WHEREAS, in order to finance the purchase price of the VLF Receivable from the Seller
and the purchase price of other VLF Receivables from other local agencies, the Authority will
issue its taxable and tax-exempt notes (the "Notes") pursuant to Section 6590 of the California
Government Code and an Indenture (the "Indenture"), by and between the Authority and Wells
Fargo Bank, National Association, as trustee (the "Trustee"), which Notes will be payable solely
from the proceeds of the VLF Receivable and such other VLF Receivables;
WHEREAS, the Seller acknowledges that the Authority will grant a security interest in
the VLF Receivable to the Trustee and any credit enhancer to secure payment of the Notes; and
WHEREAS, a portion of the proceeds of the Notes will be used by the Authority to,
among other things,pay the purchase price of the VLF Receivable;
Taxable
DOCSSP1;795390.1
WHEREAS, the Seller will use the proceeds received from the sale of the VLF
Receivable for any lawful purpose as permitted under the applicable laws of the State;
NOW THEREFORE, the City Council of the City of Palm Springs hereby resolves as
follows;
Section 1. All of the recitals set forth above are true and correct, and this City
Council hereby so finds and determines.
Section 2. The Seller hereby authorizes the sale of the VLF Receivable to the
Authority for a price no less than the Minimum Purchase Price set forth in Appendix A. The
form of Sale Agreement presented to the City Council is hereby approved. An Authorized
Officer(as set forth in Appendix A) is hereby authorized and directed to execute and deliver the
Sale Agreement on behalf of the Seller, which shall be in substantially the form presented to this
meeting, with such changes therein, deletions therefrom and additions thereto, as such
Authorized Officer shall approve, which approval shall be conclusively evidenced by the
execution and delivery of the Sale Agreement.
Section 3. Any Authorized Officer is hereby authorized and directed to send, or
to cause to be sent, an irrevocable written instruction to the State Controller notifying the State of
the sale of the VLF Receivable and instructing the disbursement pursuant to Section 6588,5(c) of
California Government Code of the VLF Receivable to the Trustee, on behalf of the Authority.
Section 4. The Authorized Officers and such other Seller officers, as appropriate,
are hereby authorized and directed,jointly and severally, to do any and all things and to execute
and deliver any and all documents, including but not limited to one or more tax certificates, if
required, appropriate escrow instructions relating to the delivery into escrow of executed
documents prior to the closing of the Notes, and such other documents mentioned in the Sale
Agreement or the Indenture, which any of them may deem necessary or desirable in order to
implement the Sale Agreement and otherwise to carry out, give effect to and comply with the
terms and intent of this Resolution; and all such actions heretofore taken by such officers are
hereby ratified, confirmed and approved.
Section 5. All consents, approvals, notices, orders, requests and other actions
permitted or required by any of the documents authorized by this Resolution, whether before or
after the sale of the VLF Receivable or the issuance of the Notes, including without limitation
any of the foregoing that may be necessary or desirable in connection with any default under or
amendment of such documents, may be given or taken by an Authorized Officer without further
authorization by this City Council, and each Authorized Officer is hereby authorized and
directed to give any such consent, approval, notice, order or request, to execute any necessary or
appropriate documents or amendments, and to take any such action that such Authorized Officer
may deem necessary or desirable to further the purposes of this Resolution.
Section 6. The City Council acknowledges that, upon execution and delivery of
the Sale Agreement, the Seller is contractually obligated to sell the VLF Receivable to the
Authority pursuant to the Sale Agreement and the Seller shall not have any option to revoke its
approval of the Sale Agreement or to determine not to perform its obligations thereunder.
Taxable o
DOCSSP1:795390.1 2
Section 7. This Resolution shall take effect from and after its adoption and
approval.
PASSED AND ADOPTED by the City Council of the City of Palm Springs, State
of California, this day of 2005, by the following vote:
AYES:
NOES:
ABSENT:
Mayor
Attest:
City Cleric
Approved as to form
SELLER'S COUNSEL
By
Dated:
Taxable
DOCSSF1:795390.1 3
APPENDIX A
CITY OF PALM SPRINGS
Minimum Purchase An amount equal to or greater than $671,000.00 (the "Minimum
Price: Purchase Price").
Authorized Officers: City Manager
Asst City Manager
Director of Finance &Treasurer
any designee of any of them, as appointed in a written certificate of
such Authorized Officer delivered to the Trustee.
Taxable
DOCSSF1:795390.1
DATE: January 28, 2005
TO: City Council
FROM: Director of Finance & Treasurer
RE: Treasurer's Investment Report as of December 31, 2004
Attached is the Treasurer's Investment Report as of December 31, 2004. The report includes the
face value and coupon rate (if applicable) of the investments and the source for the market value
estimate. Also included is information on the investments of Bond Issue reserve funds, and on loan
repayment programs managed by a bank.
The investments, in type, maturity and as a percentage of the total portfolio, are in compliance with
the existing City Council-approved investment policy with one exception: the FICO notes($500,000,
4/16/18, 9.8%) exceed the 5 year limitation on maturities (Detail of Investments, Long Term
Investments, Mortgage Pass Thru's). The investment in question was purchased prior to the
adoption of the 5-year limitation. Since it appears to represent no additional risk either because of
credit-worthiness or liquidity, earlier councils decided to allow it to be retained in the investment pool
because the yield is higher than attainable under current market conditions. We recommend that
this exception to the policy be continued.
Also, the 50% limitation on investments in U.S. Government Agencies was exceeded slightly. When
the latest investments were made in early December, the policywas in compliance. However, major
expenditures forthe Convention Center made later in Decemberwere not reimbursed from the bond
proceeds held by the City's Trustee Bank until January, 2005.
State law requires this report to be submitted within 30 days of the end of the quarter. Because all of
the City's bank accounts may not be completely reconciled, there may be minor adjustments to the
cash on hand in the checking account and to the valuation of the bond issue's money market
investments. All other amounts are actual.
The weighted average maturity(WAM) of the portfolio is 587 days. The maximum WAM allowed by
the Investment Policy is 1095 days. The current portfolio and expected revenue cash flow will be
sufficient to meet budgeted expenditure requirements for the next six months and the foreseeable
future thereafter.
Submitted by:
Thomas M. Kanarr
Treasurer
�EH 2o
treasrep CITY OF PALM SPRINGS
1/29/2005 TREASURER'S MONTHLY REPORT
SUMMARY OF INVESTMENTS
DECEMBER 31, 2004
On Call Deposits Adjusted Basis Category Total Percentage
Checking Account $ -2,058,388
State Pool 17,490,000 $ 15,431,612 42.96%
Short Term Investments
( 1 year or less)
Corporate Notes 994,130 994,130 2.77%
Medium Term Iuveshnents
( 1 year to 3 years)
U.S. Gov't Agencies 9,000,000
Time Deposit 1,000,000 10,000,000 27.84%
Long Term Investments
U.S. Gov't Agencies 9,498,594 9,498,594 26.44%
Total Invested Cash
$ 35,924,336 100.00%
*Some investments made prim'to the implementation of the
current Investment Policy exceed the 5 year limit
treasrep TREASURER'S MONTHLY REPORT
128/2005 DETAIL OF INVESTMENTS h
DECEMBER 31, 2004
Coupon Yield Adjusted (memo only) Prior Qtr
Par Value Rate Rating Mammy to Maturity Cost Basrs Category Teml Market Veto, Source Market Value
On Call Deposits
Clocking-Bankof Amenea S N/A variable AAA mpcn Us% S 2,058,389 $ S 2059,389 $ 5/6595
Local Agency Invest Fund(LAIF) 17,490,000 variable N/A open 2.13% 19,490,000 19.490.000 LAT 27,190,000
15,431,612
Shirt Tetra Investments
I year or less)
Corporate Notes
GE Falcon Corp 1000000 2.99% AAA 10/03/05 320% 994,130 1000440 BNY Western Tr 1,004,760
994,130
Medium Term Invest ores
(1 year to 3 years)
US Gov't Agency Securities
Federal Home Loan Bank 1,000,000 2A0% N/A 01/14/06 240% 1,000,000 992,812 BNY Western Tr 997,500
Federal Home Loan Mortgage Cia,motion 1000,000 255% N/A 05/10/06 255% 1,000,000 992,550 BNY Western Tr 998,281
Federal Nounial Mortgag Asaomanon 1000,000 250% N/A 09/11/06 250% 1,000,000 999,687 BNY Western Tr 995,625
Federal Homo Loan Bank 2,000,000 3.19% N/A O9/25/06 319% 2,000,000 1,998,750 BNY Western Tr 2,01I,250
Federal Home Loan Mortgage Cmpormmn 1,000,000 3 06% N/A 09/15/06 3 06% Lwo,o00 997,640 BNY Western Tr 1,002,450
Federal Home Loan Bank 1,000,000 3.00% N/A 10/12/06 3 00% 1,000,000 996,250 BNY Western Tr 0
Federal Home Loan Bank 1,000,0M 3.13% N/A 02/07/07 313% 1,000,000 996,250 BNY Western Tr L",931
Federal National Mortgage Association 1,000,000 3 50% N/A 10/11/07 3 507. LW0,000 998,750 BNY Western Tr 0
Federal Farm Credit Bank 1000,000 3.60% N/A 10(29/07 3 607, 0 0 BNY Western Tr 999,061
Time Deposit
Washmgmn Merrill Bank Lo00,000 3 47% AAA 01/28/06 3 41% Lo0o,000 1,000,000 Washington Mutual 1,000,000
10,000,000
Long Term Investment
(3 years to 5 ears)
US Gov I Agency Securmes
Federal Home Loan Mortgage Cor,,malum 2,000.O00 4 13% N/A 02/25/09 4 13% 2000,OOo 2,004 100 BNY Western Tr 2,015,020
Federal Farm Credit BaN, 2,000,000 404% N/A 05/27/09 4 04% 2,000,000 2,009,750 BNY Western Tr 2,021,250
Federal Home Loan Bank 1,000,000 4 027, N/A 06110/O9 4 02% 1,000,000 1000,311 BNY Western Tr 0
Federal Farm Credit Bank 1000,000 3 85% N/A 10/29/08 3 85% 1,000,000 L000.932 BNY Western Tr 1,007,187
Federal Home Loan Bank 1,000,000 4 00% N/A 11/17/09 4 00% 1,000,000 1,000,615 BNY Western Tr 0
Federal From Credit Bank 1000,000 425% N/A 11/18/09 415% 1,000,000 1001,895 BNY Western 9Y 0
Federal Home loan Bank 1,000,000 4.305 N/A 12/01/09 3 13% 1,O00,000 1,004,697 BNY Western Tr 0
Financing Cotporaten(FICO) 500,OOo 9 80% N/A 04/06/19 9 80% 498,594 736,720 NotioosBank 737,190
9,498 594
Total lnvcsod Cash $ 35,924,336 S 36,152,949 $ 43 517,107
TREASURER'S MONTHLY REPORT
treasrep MISCELLANEOUS AND TRUST ACCOUNTS
1/28/2005 DECEMBER 31, 2004
Yield Adjusted
Par Value Coupon Rating Maturity to Maturity Cost Basis Category Total
----------------
Total Invested Cash $ 35,924,336 $ 35,924,336
$ 35,924,336
Miscellaneous Accounts
Petty Cash 2,775 N/A N/A open none 2,775
Revolving Fund-Bank of America 7,982 N/A N/A open none 7,982
Trust&Agency-Bank of America 1,182,628 N/A N/A open none 1,182,628
Downpayment Assistance(Housing
Fund)-Washington Mutual 33,253 variable N/A open 0.40% 33,253
Workers Compensation-Bank of America -280 N/A N/A open none -280
1,226,358
Deposits Held In Trust
Time Deposits
(FDIC Insured)
Downey S&L(Cat Cyn Country Club) 62,204 1.14% N/A 2/11/2005 1 14% 62,204
Downey S&L(Donavan Bequest) 12,994 2.23% N/A 6/11/2005 2 23% 12,984
Downey S &L(Palmer Cable TV) 4,829 0.95% N/A 1/18/2005 0 95% 4,829
Guaranty Bank(Coyote Springs Apt) 17,181 1.59% N/A 6/24/2005 1 59% 17,181
97,198
Total Cash Deposited $ 37,247,892
TREASURER'S MONTHLY REPORT
veasrep BOND ISSUE RESERVE, DEBT SERVICE &RELATED FUNDS
01128105 DECEMBER 31, 2004
C."Pnn Yacht Adjusted (memo only) Pd.,Qtr.
Par Value Rate Rating Maturity to Matunty Cost Data, Coregory Total Market Value Source Market Value
1991/97101/04 Convent.Center
Cash 1 1 1 BNY Western Tr 1
AIM Government&Agency Ponf Pnvate 571,362 variable AAA open 180% 5/1,362 571,362 BNY Western Tr 492,391
AIG Investment Agreement 1,280,6/3 5.36% AAA 11/01/25 5.36% 1,280,6/3 1280,6/3 13 'Western Tr 1,280,673
AIG Investment Agreement 1,290,000 6.69% AAA 11/01/21 668% 1,290,000 1,290,000 BNY Wesmrn Tr 1.290,000
AIG Investment Agreement 3,82/,164 2.415 AAA 05/01/06 2.41% 3,821,1E 3.82/,164 ANY Western Tr 4,842,000
1,BIA Invesvnevt Agreement 3.300,402 5387, AAA 11/01/35 558% 3,300,402 3,300402 BNY Western Tr 3,300,402
AIG Inve,Iment Agreement 31784,814 1.85% AAA 09/30/05 1.85% 31,784,814 31,184,814 BNY Western Tr 35,668,117
42,054,416
1992 Aupon
Cash 1 1 1 BNY Western Tr 100,175
AM Sltott-Term lovesment Trsy P 949.849 variable AAA open L67% 949,849 949,849 BNY Western Tr 405,317
Bayenscbe lnvesment A, 1,207,600 9.00% AAA 01/01/22 7.00% 1,207,600 1,207,600 BNY Wesmry Tr 1.207,600
2,157,450
2001 Senes B-Housing
Cash 200 200 200 BNY Western Tr 200
AM Government&Agency Ponf Pnvam 3,974 variable AAA open 1.80% 3,874 3,874 BNY Wcs¢m Tr 3,864
AIG lovesureat Agreement 468,105 522% AAA 08/01/21 5.22% 468,105 469,105 BNY Western Tr 469,105
1994/04 Series A&B 472,199
Cash 11.138 11,138 11,139 BNY Western Tr 19294
AIM Government&Agency Pont Pnvate 5,3/6,789 stru e AAA open 1.90% 5,3/6,789 5,3/6,789 BNY Western Tr 2,350,985
MBIA Investment Agreement 1,651456 519% AAA 09/01/34 5.197, 1,651456 1,651456 BNY Western Tr 1,651,456
US Treasury B01 0 154% AAA 12/30/2M4 154% 0 0 BNY W,smrn Tr 3,031,323
7,039,383
1996 Mnittple Capital Fac0ines Pr ject
AIM Goverument&Agency Pont Private 9.262 vanabd AAA open I.80% 9,262 9262 BNY Western Tr 593,969
AMBAC Invesuvem Agreement 1,730,000 640% AA 04/01/27 6A0% 1,730,000 1,730,000 BNY Western Tr 1,730,000
1,739,262
TREASURER'S MONTHLY REPORT
n=asr=P BOND ISSUE RESERVE, DEBT SERVICE &RELATED FUNDS
01/28/05 DECEMBER 31, 2004
Coupon Yleld Adjusted (memo only) Prior Qn.
Par Value Rare Raring Mamney to Mammy Cost Bows Category Told Market v,me Source Market Value
1998 Airport GARB
AIGlnvestment Agr -Reserve 561,221 5.90% AAA O1/01/28 5.90% 561,221 561,221 BNY Wes[etn Tr 561.221
AAA Government&Agency Portf Private 407.081 variable AAA open IM% 407,081 407,081 BNY Wesmm Tr 249,368
1998 Airport PFC 968,302
AIG Investment A, -Reserve 849,729 590% AAA O1/01128 5.90% 849,729 849,728 BNY Western Tr 349,728
AM Governmem&Agency Pond Pnvate 608.107 vanable AAA open 1.801% 608,107 608,109 BNY Western Tr 369,943
1999 MUltrple Capiml Wasrewa[ei ,457,835
AIM Government&Agency Pool Private 300.281 variable AAA open 1 80% 300,281 300,291 BNY Western Tr 356,395
1995 Assessment Distnc[155 A&B M,281
AAA Government&Agency Portf Privare 284,211 variable AAA open I80% 284,211 184,211 BNY Western Tr 283522
2001 Assessment District 157/158 84,211
AIM Government&Agency Portf Pnvate 164,241 vanable AAA open 180% 164,241 164,241 BNY Western Tr 163,947
2002 Perlong Structure 164.241
Cash 3 3 3 BNY Wesrern Tr 17
AM Government&Agency Portf Pnvate 26,399 vanable AAA open 1.807. 26,399 26,399 BNY Western Tr 36,699
2004 Assessment Drstnct 161 16,402
AM Government&Agency Portf Private 758,014 variable AAA open 1807. 758,014 758,014 BNY Western Tr 1,229,741
2004 Assessment Drsmcr 162 58,014
AIM Govemmem&Agency Nerf Prvate 1,192.753 vanable AAA Per 180% 1,192,753 1,192,753 BNY Western Tr 0
Turn, 1,192,753
S 58,614,729 $ 586t4,729 $ 62536843
treasrep TREASURER'S MONTHLY REPORT
01/28/05 CALCULATION OF INVESTMENT LIMITATIONS
DECEMBER 31, 2004
Allowable Percentages
By Maturity: Minimum Maximum Current Mo.
1 day to 365 days $8,000,000 N/A $16,425,742
1 year to 3 years 0.00% 50.00% 27.84%
3 years to 5 years 0.00% 30.00% 25.05%
over 5 years N/A N/A 1.39%
By Type of Investment:
Bankers Acceptance - in total N/A 40.00% 0.00%
Bankers Acceptance - single bank N/A 20.00% 0.00%
Commercial Paper N/A 15.00% 0.00%
Certificates of Deposit N/A 30.00% 2.78%
Corporate Notes N/A 20.00% 2.77%
Money Market Mutual Funds N/A 10.00% 0.00%
U.S. Government Agencies N/A 50.00% 51.49%
Mortgage Pass Thru's N/A 10.00% 0.00%