HomeMy WebLinkAbout3/20/2002 - STAFF REPORTS (20) m4ac�,
DATE: �10, 2002
TO: CITY COUNCIL
FROM: DIRECTOR OF REDEVELOPMENT
A TEFRA PUBLIC HEARING ON THE APPROVAL OF SERIES A AND B MORTGAGE
REVENUE BOND FINANCING ISSUE BY THE CITY OF PALM SPRINGS (CONDUIT
FINANCING) ON BEHALF OF MILLENNIUM HOUSING CORPORATION, INC. OF NEWPORT
BEACH, CALIFORNIA FOR THE PURCHASE AND REHABILITATION OF THE SAHARA
MOBILE HOME PARK, 1955 SOUTH CAMINO REAL
RECOMMENDATION:
It is recommended that the City of Palm Springs approve a Series A and B Mortgage Revenue
Bond issue in the aggregate amount not to exceed 312,750,000, on the part of Millennium
Housing, Inc., a Newport Beach non-profit, for the purchase and rehabilitation of the Sahara
Mobile Home Park, a 254-space park located at 1955 South Camino Real, Palm Springs.
SUMMARY:
Millennium Housing has proposed purchasing the Sahara Mobile Home Park located at 1955
South Camino Real in Palm Springs. While the park is relatively attractive and well-
maintained, it is nearly 50 years old and has over the past several years experienced problems
with its major systems and utilities, including gas, electricity, and sewer. Because of its age, it
is currently a rent-controlled park. Millennium's approach is to use tax-exempt financing
(issued by the City of Palm Springs) and its non-profit status (which reduces the property tax
burden) to create a revenue stream to be able to perform the necessary repairs to the park
without needing a rent-control waiver, which would ordinarily be allowed for an owner
undertaking major capital improvements. The needs analysis has identified $1.2 million worth
of necessary improvements to the park. The bond issue, including $400,000 in Community
Redevelopment Agency participation (to be approved in March) would create an initial
$765,000 Repair and Replacement Reserve Fund, with additional funds from the cash flow of
the project that can be used for repairs or other property improvements jointly prioritized by the
residents and Millennium. This meeting was noticed to comply with the public notice
requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended and
applicable provisions of California law.
BACKGROUND:
Description of the Park
The Sahara Mobile Home Park at 1955 South Camino Real was constructed in 1955 and is
situated on 29 acres. Despite its age, the park is a safe, attractive and affordable senior (over
55) park and is therefore currently 99% occupied. It features a pool, spa, shuffleboard courts,
and a clubhouse. There are 254 spaces in the park, primarily singlewides, and space rents
are typically in the $350-$400 per month range rented on a month-to-month basis, though
turnover is quite low.
Gas, sewer and electric are available to the site: the services are purchased in bulk by the
11A
management and submetered to the individual spaces. The management pays the water and
trash bills. Several years ago there was a failure of the gas system in the park and many
residents went without gas (cooking and hot water) for a period of months. When the problem
was repaired, there was a dispute between the residents and the owners over how the costs
should be assessed. The PUC ruled in favor of the residents and the owners were unable to
pass along the bulk of the additional cost of the system repairs.
The other major systems such as electrical and sanitary sewer are also plagued with problems
and are in need of repair. The electrical system is over 45 years old, and each space is on a
50 amp service, typically inadequate to power air conditioning: most residents do not have air
conditioning in their coaches. In addition, the sewer system has blockage problems due to the
oleander hedge that comprises the park's perimeter fencing. The hedge needs to be removed
and replaced with a block wall, and the damaged sections of sewer repaired. These are the
priority improvements identified in the needs assessment.
Financing of the Purchase
Millennium has offered the current owners $9,650,000 for the park: $9,500,000 in cash plus a
fully subordinated note to the seller of $150,000. Staff has negotiated an Agency Low/Mod
Housing participation of $400,000, though the initial agreed amount was $300,000, The extra
amount is attributed to the higher-than-expected repair costs identified in the physical needs
survey. The Owner Participation Agreement between the Agency and Millennium will be ready
for approval at the March 6 meeting.
However, one issue remains unresolved: the Agency originally gave staff direction to pursue
the project based on its (the Agency's) expectation that its funds would go directly to one of
the identified repairs, such as the electrical system. But, under Federal tax law, the amount
of issuance costs that can be paid from the bonds for a financing undertaken on behalf of a
non-profit organization is limited to 2% of the face amount of the bonds. The estimated
issuance costs are over$500,000, of which $250,000 are in excess of 2% of the face value of
the bonds. Millennium has asked that the Agency's funds first be used to pay costs of
issuance in excess of 2% of the face value of the bonds, with the remainder deposited to the
repair and replacement fund as planned. The balance of the repair and replacement fund
would then be funded from proceeds of the bonds instead of the Agency contribution.
If the Agency holds firm on its desire to tie its funds directly to needed physical improvements,
the only way to fund the issuance costs in excess of 2% is to issue an additional series of
taxable bonds ("Series C"). Since these bonds carry a higher interest rate, and, as a separate
series will increase administrative costs charged by the bond trustee, it will necessarily have an
impact on the net cashflow of the project, much of which is deposited in the repair and
replacement fund. The impact has been calculated as a reduction in the repair and
replacement fund of$70,000.
Therefore, the preferred structure (no taxable series) produces an additional $70,000 for the
initial Repair& Replacement Fund. The physical needs study shows an optimal funding
amount of$1,200,000, but the scenario presented in the project pro formas shows the
maximum funding in today's market at $765,000, with the remainder being produced from the
cash flow from the project over 10 years.
Without the taxable series, the Series A bonds of 510,030,000 are the senior lien and the interest
rate is expected to be approximately 5.5% (average coupon rate): it will be "A" rated and insured by
ACA, a bond insurance firm. The bonds are fully amortizing with a final maturity in 35 years. The
minimum debt service coverage requirement set by ACA on mobile home park transactions is
1.35X. The coverage in this project is estimated to be 1.48X in year 1, but the debt service
schedule increases by approximately 545,000 in years 11 through 35 if the taxable series is
necessary. The taxable Series C bonds' debt service payments are approximately$45,000 in
years 1 through 10. Amortizing the taxable debt first is the most efficient structure.
The Series B bonds ($1,610,000 with an average coupon rate of 6.67%) and Taxable Series C
($300,000 at 8.75%, if necessary) are subordinate lien, non-rated series with a minimum debt
service coverage ratio of 1.15X. These bonds are fully amortizing, with the taxable Series C
maturity of 10 years and a Series B maturity of 35 years. The subordinate series of bonds
represent approximately 16% of the total issue size. These bonds along with the Series A bonds
are secured by historical revenues of the project, as determined by the audit prepared by Haynie &
Company. Therefore, the underwriter does not underwrite based upon projected increases in rental
income.
The project pro forma is prepared to provide an analysis of projected operating results for the
project over the life of the bonds. More important, the project pro forma demonstrates the order of
the flow of funds and how cash flow after debt service would be allocated for the project under this
bond structure.
Deal Structure
In order to prevent problems in tax-exempt issues that may threaten the tax-exempt status of
the issue or otherwise cause problems to the City, it is the City's policy to use its own Bond
Counsel and Financial Advisor on all bond deals, even conduit issues. The City of Palm
Springs is the issuer of the bonds, and will use the bond proceeds to make a loan to
Millennium Housing to carry out the deal. Millennium will repay the bonds from the net income
from the park. One attractive feature of the project is that the bond structure creates a Repair
and Replacement fund for park improvements so that repairs can be made to the park without
any rent increases other than the normal annual increases (CPI) allowed by the City's Rent
Control Ordinance. The fund will be replenished over the initial ten year period from the cash
flow of the park as well as, eventually, a portion of the Operating Fund Reserve; the total
contributions to repair and replacement should be sufficient to meet the physical needs
assessment targets set for the first ten years.
Millennium's administration fee is fixed at $30/month/space, and is a portion of the current rent.
Their total estimated fee for the year, $91,000 in Year 1, is significantly less than the current
owners take in profit, and will probably be reduced until the cash flow stabilizes, anyway.
Parties
ISSUER
City of Palm Springs
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92263
John Raymond, Redevelopment Director; Tom Kanarr, Finance Director and City Treasurer
y/
ISSUER'S COUNSEL
Burke, Williams & Sorensen, LLP
18301 Von Kerman Avenue, Suite 1050
Irvine, California 92612
David J. Aleshire, City Attorney
BOND COUNSEL
Burke, Williams & Sorensen, LLP
18301 Von Karman Avenue, Suite 1050
Irvine, California 92612
Urban Schreiner, Esq.; Robert F. Messinger, Esq.; Dawn C. Honeywell, Esq.
Law Offices of Sam Norber
Beverly Hills Law Building
424 South Beverly Drive
Beverly Hills, CA 90212
Sam Norber, Esq.
DISCLOSURE COUNSEL
Best, Best & Krieger
3750 University Ave., Suite 400
Riverside, CA 92501
Francis J. Baum
UNDERWRITER
Kinsell, Newcomb & De Dios, Inc.
462 Stevens Avenue, Suite 308
Solana Beach, CA 92075
Pam Newcomb, Exec. Vice President; Todd Smith, Vice President; Janees Williams, Associate
TRUSTEE
UNION BANK OF CALIFORNIA
475 Sansome St., 121h Floor
San Francisco, CA 94111
Gillian Wallace
BORROWER
Millennium Housing
1835 Newport Blvd., #D-250
Costa Mesa, CA 92627
George Turk; Lori Carraway
BORROWER'S GENERAL COUNSEL
Charles, Kane & Dye, LLP
1920 Main Street, Suite 1070
Irvine, CA 92614
Steve M. Kane, Esq.
BORROWER'S 501(C)(3) COUNSEL
Goldfarb & Lipman
1300 Clay Street, 19th Floor
Oakland, CA 94612
M. David Kroot, Esq.; Dianne Jackson-McClean
FINANCIAL ADVISOR
Harrell & Company Advisors, LLC
The City Tower, 333 City Blvd. West, Suite 1430
Orange, CA 92868
Suzanne Q. Harrell
Enclosed with this staff report and resolution are the Pricing Summaries for the Series A and B
issues, as well as a Summary of Sources and Uses for the project. The Preliminary Official
Statements for the issues (prepared by the Disclosure Counsel) and the Debt Service
Schedules have been prepared and are on file with the City Clerk. The Bond documents and
Agency Owner Participation Agreement will be finalized in early March, with the OPA
scheduled for the March 6 meeting.
The project is truly of benefit to the residents of the park, who now have a funding source for
necessary improvements without special rent increases. These project objectives could not be
accomplished without the use of tax-exempt financing by a non-profit, as the lower interest
cost and property tax waivers help to create the cash flow necessary to fund ongoing
replacement of needed items. In addition, the amount of Agency subsidy, at $2,600 per
restricted unit, is also quite low, and adds units to the Agency's inventory of affordable units.
ohn S. Raym nd Thomas M. Kanarr
re r of Redevelopment Director of Finance & City Treasurer
Approve y
City Manage
Attachments:
1. Resolution
2. Pricing Summary (Series A and B)
3. Summary of Sources and Uses _ 6�L P(Ld orcle j
4 06<-F I'h-C 'Sil4lr,,M1- 'VD"4'aE R Cya {
Preliminary
City of Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior MHCI
Series 2002 A 'A CA"Insured, Series 2002 B Non-Rated
TOTAL ISSUE SOURCES AND USES
Dated 0 311 61200 2 Delivered 03/15/2002
Series A Series B Issue Summary
SOURCES OF FUNDS
Per Amount of Bands................................................ $10,300,000.00 $1,805,000.00 $11.905,000.00
Planned Issuer Equity contribution............................... 400,000.00 - 400,000,00
TOTAL SOURCES..................................................... $10,700,000.00 M605,000.00 $12,305,000.00
USES OF FUNDS
Original Issue Discount(DID)...................................... 198,400.60 55,130.00 253,530.60
Total Underwriter's Discount (1.654%)...................... 164,800.00 32,100.00 196,900.00
Costs of Issuance..................................................... 237,925.24 37,074.76 275,000.00
Gross Bond Insurance Premium.................................. 337,159.73 - ,137,159.73
Deposit to Debt Service Reserve Fund (DSRF).............. 653,360.00 123,700.00 777,060.00
Deposit to Project Construction Fund........................ 8,143,354.43 1,356,645.57 9,500,000.00
Repair and Raplacament Fund..................................... 865,000.00 - 865,000.00
Deposit to Working Capital Fund.... ............ 100,000.00 - 100,000.00
Rounding Amount..................................................... - 349.67 349.67
TOTAL USES............................................................ S10,700,000.00 $1,605,000.00 612,305,000.00
Kinsoll,Newcomb&De Dios,Inc. 171a a MHP.sf-MHP ACA 3-14-02-Issue summary
Public Finance 3/14/2002 5:23 PM
Pago 1
City of Palm Springs, California
Mohilehome Park Revenue Bonds
(Sahara Senior MHCI
Series 2002 A ACA'Insured, Series 2002 B Non-Rated
DEBT SERVICE SCHEDULE
Onto Rmcipel Coupon Interest Total P+1
3/1612002 - - - -
3/1512003 110,000.00 2.068% 050,032.50 769,092.50
3116120M 115,000.00 2.641% 655,817.50 770,817.50
3/16/2005 120,000.00 3.503% 652,700.00 772,780.00
311512005 120,000.00 3.719% 043,490.00 708,480,00
311S12007 125,000.00 4.122% 644,017.50 769,017,50
3115/2008 130,000.00 4.422% 838,885,00 76B,885,00
3/15/2009 140,000.00 4.079% 833,116.00 773.115,00
3115/2010 145,000.00 4.759% 020,585.00 771,565.00
311612011 150,000.00 4.603% 619,605.00 769,665.00
311612012 160,000.00 5.069% 612,340.00 772,340.00
3/16/2013 16S,000.00 5.199% 604,230.00 769,230.00
3/15/2014 175,000,00 6,264% 895,667.50 770,667.50
3115/2015 185,000.00 5.3701A 688,466.00 771,4S6,00
3115/2016 195,000.00 5.446% 576,520.00 771,520.00
311512017 205,000.00 5.524% 565,900.00 770,900.00
3/1612018 219.000.00 5.605% 554,575.00 769.575.00
3/15/2019 230,000.00 5.614% 542,525.00 772,525.00
3/15/2020 240,000.00 6.609% 629,612,50 769,612,60
3/15/2021 255,000.00 5.618% 510,150.00 771.1%,00
3/1512022 270,000,00 6,792% 601,82S.00 771.825.00
3115/2023 265,000,00 5.782% 488.167.50 771,187.50
3/15/2024 300,000.00 5.773% 469,710.00 709,710.00
3/161202S 320.000.00 5.798% 452,392.50 772,392.50
311$12026 336,000,00 5,789% 433.840.00 768,840.00
3/15/2027 355,000.00 S1776% 414,447-90 789,447,S0
3/15/2028 375,000.00 5.784% 393,935,00 766,83$.o0
3/15/2029 400,000.00 5.901% 372,246.00 772,245.00
3115/2030 420,000.00 5.792% 349,040.00 709,040.00
3116/2031 4-45,000.60 5.794% 324,715.00 769,715.00
3/15/2032 470,000.00 5.796% 290,932.50 768,932.50
311S/2033 500,000.00 5.796% 271,692.50 771,092.50
$11512034 830,000,00 S.806% 242.715.00 772,715.00
3/15/2035 550,000.00 6.605% 211,942-50 771,942.50
3/15/2036 590,000.00 5.005% 179,432,50 709,432.50
311512037 625,000.00 5.002% 145,165.00 770,105.00
311 S1203B 540,000.00 5.600% 100,920.00 048,920.00
3/15/2039 570,000,00 S.600% 78.680.00 649,680.00
3/1512040 835.000.00 5.800% 46,760.0a 881,760.00
Toter I1,905,000.00 - 17,243.970.00 29,149,970.00
YIELD STATISTICS
Bond Veer Rollere.................................................................................................. 9303,025.00
Average We......................................................................................................... 25.454 Years
Average Coupon.................................................................................................... 5.6906037%
Not IntoroA Cast(NIC)........................................................................................... 5.8392544%
True Interest Cast(TIC).......................................................................................... 6.7489886%
Bond Yald for Arpitrugo Purposos............................................................................. 6,0728907%
All Indvv,Coat(AIC)........................................................................................... 6,1745471%
IRS FORM 8038
Not Intorast Cast................................................................................................... 9.9112461%
Waighmd Average MaturitY..................................................................................... 28.405 Yom
K1nsMl,Neweom8&De Abs,ha File MHP,e-MJ4PACA 3-14.02.1=vo Summery
Fv6lic Fiance 311412002 5:23 PM
Page 2
Preliminary
City of Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior MHO
Series 2002 A ACA"Insured, Series 2002 B Non-Rated
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I DSR Net Now D/S
3/15/2002 - -
3/15/2003 110,000.00 2.068% 6$8,092.50 768,092.50 (43,515.36) 724,577.14
3/15/2004 115,000.00 2.641% 655,817.50 770,817.50 (43,51$.36) 727,302.14
3/1$/2005 120,000.00 3583% 652,780.00 772,780.00 (43,515.36) 729,264.64
3/15/2006 120,000,00 3.719% 648,480-00 768,480.00 (43,515,36) 724,964.64
3/15/2007 125,000.00 4A22% 644,017.50 769,017.50 (43,515.36) • 725,502.14
3/151200$ 130,000.00 4.423% 638.865.00 768,865.00 (43,515.36) 725,349.64
3/151200S 140.000.00 4.679% 833,115.00 773,115-00 (43,515.36) 729,590.64
3/15/2010 145,000.00 4.759% 626,565.00 771,565.00 (43,515.36) 728,049.64
3/15/2011 160,000.00 4.883% 619,665.00 769,665.00 (43,515.36) 726,149.64
3/15/2012 160,000,00 5.069% 612,340-00 772,340.00 (43,615,36) 728,824.64
3/15/2013 165,000.00 SASS% 604,230.00 760,230.00 (43,515.36) 725,714.64
3/15/2014 175,000.00 5.264% 555,667.50 770,667.50 (43,515.36) 727,1$2.14
3/15/2015 185,000.00 5.370% 586,466.00 771,455.00 (43,515.36) 727,939.64
3/15/2016 195,000.00 5.4460/6 676,520.00 771,520.00 (43,515.35) 728,004,64
3/15/2017 205,000.00 5.524% 565,900,00 770,900.00 (43,515.36) 727.384.64
3/15/2018 215,000.00 5.605% 554,575.00 769,575.00 (43,515.36) 726,059.64
3/16/2019 230,000.00 5.614% 542,525.00 772,525.00 (43,515.36) 729,009.64
3115/2020 240,000.00 5.609% 529,612.50 769,612.50 (43,515.36) 726,097.14
3/15/2021 255,000.00 5.618% 516,150.00 771,150.00 (43,515.361 727,634.64
3/1512022 270,000.00 5.792% 501,825.00 771,825,00 (43,515.36) 728,309.64
3/15/2023 285,000.00 5.782% 486,187-50 771,187.50 (43,515,36) 727,672.14
3/15/2024 300,000.00 5.773% 469,710.00 769,710.00 (43,515.36) 726,194.64
3/15/2025 320,000.00 5.798% 452,392.50 772,392.50 (43,515.36) 728,877.14
3/15/2026 335,000.00 5.7899/. 433,840.00 768,840.00 (43,515.36) 725,324.64
3/15/2027 335,000.00 5.778% 414,447.50 769,447.50 (43,515.36) 725,932.14
3/15/2028 375,000.00 5,784% 393,935.00 768,935.00 (43,515.36) 725,415.64
3/1512029 400,000.00 5-801% 372,245.00 772,245.00 (43,515.36) 728,729.64
3/15/2030 420,000.00 5.792% 349,040.00 769,040.00 (43,515.36) 725,624.64
3/15/2031 445,000.00 5.7940/6 324,716.00 769,715.00 (43,515.36) 726,199.64
3/15/2032 470,000.00 5.796% 298,932,50 768,932.50 (43,615.36) 725,417.14
3/15/2033 500,000.00 5.796% 271,692.50 771,692.50 (43,515.36) 728,177.14
3/15/2034 530,000.00 5.806% 242,715.00 772,715.00 (43,515.36) 729,199,64
3115/2035 5601000.00 5.805% 2,11,542.50 771,942.50 (43,575.36) 728,427.14
3/15/2036 590,000,00 5.805% 179,432.50 765,432.50 (43,515.36) 725,517.14
3/15/2037 625,000.00 5.802% 145,185.00 770,185.00 (167,215.36) 602,969.64
3/15/2038 540,000.00 5.600% 108,920.00 648,920.00 (35,588.16) 612,331.84
3/15/2039 570,000.00 5.600% 78,680.00 648,680.00 (36,588.16) 612,091.84
3/15/2040 835,000.00 5.600% 46,760,00 881,760.00 (689,948.16) 191,811.84
Total 11,905,000,o0 - 17,243,970.00 29,148,970.00 (2,409,862.08) 26,739,107.92
Kinse/l, Newcomb&De Dios,Inc. File MHP.sJ MHP ACA 3-14-02-Issue Summary
Public Finance 311412002 5.23 PM
Page 3
P"Arnino
City of Palm Springs, California
Mobiiehome Park Revenue Bonds
(Sahara Senior MHCJ
Series 2001 A NACA a Insured
DEIST SERVICE SCHEDULE
Date RLnciPnl Coupon Interest Total P+I
311512002 - - -
811512003 100,000.00 1.75056 553,060.00 053,000.00
3/15/2004 100,000.00 2.250% 551,330.00 651,330,00
311512005 100,000.00 3.25o% 549,000.00 649,080,00
2/15/2000 105,000.00 3,600% 545,830.00 6S0,B30,00
3115/2007 110.000.00 31900% 542,155.00 652,165,00
3/15/2008 115,000.00 4,260% 537,665.00 652,865,00
3/16/2000 120,000.00 4.600% 532,977.50 852.977.50
3/1612070 125,000.00 4,600% 627,577.50 B52,577.50
3116/2011 130,000.00 4.750% 621.827.50 051,827,50
311512012 135,000.00 4.850% 515,652.50 650,652.60
3/1612013 140,000.00 5.000% 509,105.00 649.105.00
3/15/2014 150,000.00 5.100% 502,105.00 652.105,00
3/15/2015 155,000.00 $.200% 494,455.00 549,455.00
3/15/2016 165,000.00 5.300% 486,395.00 8$1,395.00
3115/2017 175,000,0o 5.400% 477.050.00 652,650.00
3115/2018 1B6,000,00 5.500% 468,200.0o 053,200.00
3115/2019 195,000.00 5.500% 466,025.00 653,025.00
3116/2020 205,000.00 5.500% 447,300.00 652,300.00
311512021 215,000.00 5.500% 430,025.00 651.026.00
311 SJ2022 225,000.00 5.600% 424,200.00 649,200.00
3/15/2023 240,000.00 5.600% 417.600.00 651,600.00
3/15/2024 256,000.00 5.600% 398.760.00 653,160.00
3/15/2025 285,000.00 5.600% 383,580.00 640,000.00
3/15/2026 280,000.00 5.600% 369,040.00 649,040.00
3/15/2027 300,000.00 5.600% 3S3,380,00 653,360.00
3/1612028 315,000.00 5.600% 335,500.00 651.560.00
311S/2029 330,000.00 5.600% 318,920.00 640.920.00
311$12030 350,000.00 S,600% 300,440.00 6S0,440,00
3/15/2031 370,0o0,00 5.600% 280,84o.o0 650,040.00
3115/2032 390,000.00 5.600% 260,120,00 650,120.00
3/15/2033 415,000.00 5.600% 236,280.00 653,200,00
WIV2054 435.000.00 5,600% 215,040.00 650,040.00
3/15/2035 460,000.00 5.600% 190.690.00 650,020.00
311512036 485,000,00 5.600% 164,920,00 649,920.00
3/1512037 515,000.00 5.600% 137,760.00 652.760.00
3/1512038 540,000.00 5,600% 108,920,00 640,920.00
311612030 570,000.00 5.600% 7a,690.00 640,680.00
311512040 035,000.00 5.600% 40,700.00 861,700.00
Total 10,300,000 00 - 14,674,795.00 24,974,795.00
YIELD STATISTICS
Bond Year Dollars............................................................. ........... 5254,495.00
Average Life... ........................................................................ 25.579 Years
Average Coupon.... ............................................. .--...... 5.5482315%
Not Interest Coat(NIC)............................................................................................. 510855500%
True Inturov Cost MC)............................................................................................ 5,8003228%
Bond Yuld for Arbitrage Purposes.............................................................................. 6.0728907%
AllInclusive Cost IAICI............................................................................................ 6,2823758%
IRS FORM$038
Not Interest Cost.............................. ........................................... 5-746877796
Weighted Average Mmuntv...................... ,.................................... 25.820 Years
X6d1,Next-prnb&Do Dfo4 Inc. F718 -MHPsr-MHPACA 3-14-02•Soaos A
Pobric Finance 311412002 &23 PM
Page 4
Prellminary
City of Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior MHO
Series 2001 A "ACA"insured
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I DSR Net New D/5
3/1512002 - - - - -
3/15/2003 100.000.00 1.750% 553,080.00 653,080.00 (36,588.76) 616,491.84
3/15/2004 100,000,00 2.2$0% 551,330.00 651,330.00 (36,588,16) 614,741.84
3/15/2005 100,000.00 3.250% 540,080.00 549,080.00 (36,588.16) 612,491.84
3/15/2006 105,000.00 3.500% 545,830.00 650,830.00 (36,588A 6) 614,241.84
3/15/2007 110,000.00 3.900% 542,155.00 652,1$5.00 (36,588.16) 615,566.84
3/15/2008 715,000.00 4.250% 537.865.00 652,865.00 (36,588.16) 616,276.84
3/15/2009 120,000.00 4.500% 532,977.50 652,977.50 (36,588.16) 616,389.34
3/15/2010 125,000= 4,600% $27,577.60 652,577.50 (36,588.16) 615,989.34
3/15/2011 130,000.00 4.750% 521,827.50 651,827.50 (36,588.16) 615,239.34
3/15/2012 135,000.00 4.850% 515,652.50 650,652,50 (36,588.16) 614,064.34
3/15/2013 140,000.00 5.000% 509,105.00 649,105,00 (36,588.16) 612,516.84
3/15/2014 150,000.00 5,100% 502,105.00 652,105.00 (36,588.16) 615,516,84
3/15/2015 155,000.00 5.200% 494,455.00 649,455.00 (36,588.16) 612,866.84
3/15/2016 165,000.00 5.300% 486,395.00 651,395.00 (36,588.16) 614,806.84
3/15/2017 175,000.00 5.400% 477,650.00 652,650.00 (36,58S.16) 616.061.84
3/15/2018 185,000,00 5.500% 468.200.00 653.200.00 (36,588.16) 616,611.84
3115/2019 195,000.00 5.500% 458,025.00 653,025.00 (36,588.16) 616,436.84
3/15/2020 205,000.00 5.500% 447,300.00 652,300.00 (36,588.16) 615,711.84
3/1512021 215,000.00 5.500% 436,025.00 651,025.00 (36,588.16) 514,436.84
3/15/2022 225,000.00 5.600% 424,200.00 649,200.00 (36,588.16) 612,611.84
3/15/2023 240,000.00 5.600% 411,600,00 651,600.00 (36,588.16) 615,011,84
31IS12024 255,000.00 5.600% 398,160.00 653,160,00 (361588.16) 616,571.84
3/15/2025 265,000.00 5.600% 383,880.00 648,880.00 (36,588.16) 612,291.84
3/15/2026 280,000.00 5.600% 369,040.00 649,040.00 (36,588.16) 512,451.84
3/15/2027 300,000,00 5,600% 3531350.00 653,360.00 (36,588.161 616,771.84
3/15/2028 316,000.00 5.600% 3351550.00 651,560.00 (36,588.16) 614,971.84
3/15/2029 330,000.00 5.6000A 318,920.00 648,520.00 (36,588.16) 612,331,84
3/15/2030 350,000.00 5.600% 300,440.00 650 40.00 (36,588.16) 613,851.84
3/15/2031 370,000.00 5.6000/6 280,840.00 650,840.00 (36,588.16) 614,251.84
3/15/2032 350,000.00 5.600% 260,120.00 650,120.00 (36,588.16) 673,531.84
3115/203-S 415,000.00 5.600% 238,280.00 653,280.00 (36,588,16) 616,691.84
3/15/2034 435,000.00 5.600% 21 Sr040.00 650,040.00 (36,588.16) 613,451.84
3/15/2035 460,000.00 6.600% 190,680.00 6501680.00 (361588.16) 614,091.84
3/15/2036 485,000.00 5.600% 164,920.00 649,920.00 (36,588.16) 613,331.84
3/15/2037 5151000.00 5.600% 137,760.00 652,760.00 (36,588A 6) 516,171.84
3/15/2038 540,000.00 5.600% 108,920,00 648,920.00 (36,588.16) 612,331.84
3/15/2039 57Q000.00 5.600% 78,680.00 648,680.00 (36,688.16) 612,091.84
3/15/2040 835,000.00 5.600°k 46,760.00 881,760.00 (68%S48.16) 191,811.84
Total 10,300,000.00 - 14,674,795.00 24,974,795.00 (2,043,710.08) 22,931,084,92
Kinsell, Newcomb &De Dios,Inc. File = MHP.sf-MHPACA 3-14-02-SeriosA
Public Finance 311412002 5:23 PM
Page 5
Preliminary
City of palm Springs, California
Mobiiehome Park Revenue Bonds
(Sahara Senior MHO
Series 2001 A ACA"Insured
PRICING SUMMARY
Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price
311512003 Serial Coupon 1.7500A 2.000% 100,000.00 99.753% 99,753.00
3/15/2004 Serial Coupon 2.250% 2.750% 100,000,00 99.033% 99,033.00
3/15/2005 Serial Coupon 3.250% 3.350% 100,000.00 99.716% 99,716.00
311512006 Serial Coupon 3,500% 3.700% 105,000.00 99.262% 104,225.10
3/15/2007 Serial Coupon 3.900% 4.100% 110,000.00 99.104% 109,014.40
3/1 5120 0 8 Serial Coupon 4.250% 4.3500A 115,000.00 99.476% 114,397.40
3/15/2009 Serial Coupon 4.500% 4.550% 120,000.00 99.703% 119.643.60
3/15/2010 Serial Coupon 4.600% 4.700% 125,000.00 99.339% 124,173.75
3/1 5120 1 1 Serial Coupon 4.750% 4.860% 130,000.00 99.277% 129,060,10
3/15/2012 Serial Coupon 4.850% 4.9500/6 135,000.00 95.218% 133,944.30
3/15/2013 Serial Coupon 5.000% 5.100% 140,000.00 99.166% 138,832.40
3/15/2014 Serial Coupon 5.100% 5200% 150,000.00 99.115% 148,672.50
3/15/2015 Serial Coupon 5.200% 5.300% 155,000.00 99.069% 153,556.95
311512016 Serial Coupon 5.300% 5.400% 165,000.00 99.026% 163,392.90
3/15/2017 Serial Coupon 5.400% 5.500% 175,000.00 98.987% 173,227.25
3/15/2027 Term 1 Coupon 5.500% 5.600% 800,000.00 98.839% 790,712.00
3/15/2040 Term 2 Coupon 5.600% 5.750% 7,575,000.00 97.693% 7,400,244.75
Total - - - - 10,300,000.00 - 10,101,599.40
BID INFORMATION
Par Amount of Bonds.................................................... 010,300,000.00
Reoffering Premium or(Discount).................................... (198,400.60)
Gross Production.......................................................... $10,101,599.40
Total Undorwritcr's Discount (1.600%).......................... $(164,800.00)
Bid (96.4749/.)-------------------........................................... 9,936,799.40
Total Purchaso Price__.,...___... ... ....... .................... $9,936,799.40
Bond Year Dollars......................................................... $264,495,00
Average Life................................................................. 25.679 Years
Average Coupon........................................................... 5.548231 S%
Net Interest Cost(NIC).................................................. 5.68555000/.
True Interest Cost(TIC)................................................. 5.8003228%
Kinsoll,Newcomb&Da Dias,Inc. File = MHP.0-MHPACA 3-14-02-SoriosA
Public Finance 311412002 5:23 PM
Page 6
Preliminary
City of Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior MHQ
Series 2001A "A CA"Insured
COVERAGE RATIO
Date Total Revenues Total 0/S Coverage
3/16/2002 - - -
3/15/2003 882,162.16 653,080.00 1.350772OX
3/15/2004 882,162.16 651,330.00 1.3544012x
3/15=05 882,162.16 649,080.00 1.3590962x
3/15/2006 882,162.16 650,830.00 1.3554418x
3/15/2007 882,162.16 652.155.00 1.3526879x
3/15/2008 882,162.16 652,865.00 1.3512168X
3/15/2009 882,162.16 652,977.50 1.3$09840x
3/15/2010 882,162.16 652,577.50 1.351812lx
3115/2011 882,162.16 651,827.50 1.3533675x
3/15/2012 882,162.16 650,652.50 1,3558115x
3/15/2013 882,162.16 649,105.00 1.3590439X
3/15/2014 882,162.16 652,105.00 1.3527916x
3n5/2015 882,162.16 649,455-00 1,3583114x
3/15/2016 882,162.16 651,395.00 1.354266lx
3/15/2017 882,162.16 652,650.00 1.3516619X
3/15/2018 882,162116 653,200.00 1.3505238x
3/15/2015 882,162.16 653,025.00 1.3508857x
3/113/2020 882,162.16 652,300.00 1,3523872x
3/15/2021 882,162.16 651,025.00 1.3550358x
3/15/2022 882,162.16 649,200.00 1.3588450x
3115/2023 882,152.16 651,600.00 1.3538400x
3/15/2024 882,162-16 653,160.00 1.3506065x
3/15/2025 882,162.16 648,880.00 1.3595751x
3/15/2026 882,162.16 649,040-00 1,3581800x
3/15/2027 882,762.16 653,360,00 1.350193lx
3/15/2028 882,162,16 651,560.00 1.353923lx
3/15/2029 882,162,16 648,920,00 1.3594313x
3/15/2080 882,162.16 650,440.00 1.3562545x
3/15/2031 882,162.16 650,840.00 1.3554209x
3/15/2032 882,162.16 650,120.00 1.3559220x
3/15/2033 882,162.16 653,280-00 1.3503584x
3/16/2034 882,162.76 650,040.00 1.3570890x
3/15/2035 882,162,16 650,680.00 1.3557542x
3/15/2036 882,162.16 649,920.00 1.3573396x
3/15/20,17 882,162.16 652,760.00 1.3514342x
3/15/2038 882,162-16 648,920.00 1.3594313x
3/15/203S 882,162.16 648,680.00 I-3599343x
3/16/2040 882,162.16 881,760-00 1.0004561x
Total 33,522,162.08 24,974,795,00 -
Kinsel%Newcomb&De Dios, Inc. File = MHP.sf-MHPACA 3-14-02-Sed6sA
Public Finance 311412002 5;23 PM
Page 7
Prellminary
City of (Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior MHCI
Series 2001 B
DEBT SERVICE SCHEDULE
Care Principal Coupon Intomat Total P+1
311512002 - - - -
3/15/2003 10,000.00 5.250% 105,012.60 116,012.50
31 512004 15,000.00 5250% 104.487.50 119.407.50
3115/2005 20,000.00 5.250% 103,700.00 123,700.00
3/1512006 15,000.00 5.250% 102,650.00 117,650.00
3/15/2007 151000.00 6.760% 101,862,50 116,862,60
3/16/2008 15,000.00 5.750% 101,000.00 116,000.00
3/15/2009 20,000.00 5.750% 100,137.50 120,137.50
3/1512010 201000.00 9.760% 90.987,50 110.987,60
3/16/2011 20,000.00 5.750% 97,637.50 117,637.50
3115/2012 25,000.00 6.260% 95,687.50 121,657.50
311512013 25,000.00 6.250% 95,125.00 120,125.00
3/15/2014 25,000.00 6.250% 93,662,60 118,662,60
3/15/2015 30,000,00 6250% 92.000.00 122.000.00
3116/2016 30,000.00 6.250% 90,125.00 120,125.00
3115/2017 30,000.00 6.250% 08,250.00 113,250.00 '
3/15/2010 30,000.01) $.250% e$,376,00 116,376.00
3/15/2019 35.000.00 6250% 04,500.00 119.500.00
3/15/2020 35,000.00 6.250% 62,312.50 117,312.50
3/16/2021 40,000.00 $.260% 80,126,00 120,126-00
3116/2022 45.000.00 6.750% 77,625.00 122,625.00
3115/2023 45,000.00 6.760% 74,567.50 II9,567.50
3115/2024 45,000.00 6.750% 71,550.00 1161550.00
311512025 55,000.00 6,750% 68.512.50 123.512,50
3/15/2026 55,000,00 6.750% 64,800.00 119.800.00
3115/2027 55,000.00 6.750% 61,087.50 116,087.50
3/15/2028 601000.00 $,750% 67,376.00 117,375.00
3115/2029 70.000.00 6.750% 53.325.00 123.325.00
3/15/2030 70,000.00 6.750% 40,600.00 118,600.00
3/1512031 76,000.00 $.750% 43,e75.00 1I%S75.00
3/1$/2032 80,0m,00 6,750% 38,812.50 118,812,50
3/1512033 65,0m.00 6J50% 33,412.50 116,412-50
3115/2034 95,000.00 6.750% 27,675.00 122,675.00
3/15/2035 100,000.00 $.750% 21,262.50 121,262.50
3/15/2036 105,000.00 6.750% 14,612,60 119,912.50
3/15/1037 110,100,00 6,750% 7,425.00 117,425.00
Total 1,605,000.00 - 2,569,175.00 4,174,175.00
YIELD STATISTICS
Bond Year Dollar:................................................................................. .... $38,530.00
AverageLife............................................................................................................ 24.006 Years
AverageCoupon....................................................................................................... 6.6679660%
Net Interest Cost(NIC).............................................................................................. 6.8943810'h
True Interest Cost ITICI............................................................................................. 6.6306795%
Bond Yield for Arbitrage Purpccec............................................................................... 6.0726907%
All Incluslve Cost(AIC).............................................................................................. 7.0446465%
IRS FORM 803$
Not Interact Cott...................................................................................................... 7.0548144-A
Weighted Average Maturity I......................... 24.001 Years
K/nsell,Newcomb&De Dios,Inc. Me m MHPsFMHP ACA 3.14.02-Series B
Public Finance $114/2002 5:23 PM
Page 8
Preliminary
City of Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior MHCI
Series 2001 B
NET DEBT SERVICE SCHEDULE
Data Principal Coupon Interest Total P+I DSR Not New D/S
3/15/2002 - - - - - -
3/15/2003 10,000.00 5.250% 105,012.50 115,012.50 (6,927,20) 108,085.30
3/15/2004 15,000.00 5.250% 104,487.50 119,487.50 (6,927.20) 112,560.30
3/1 S/2005 20,000.00 5.250% 103,700.00 123,700.00 (6,927.20) 116,772.80
8/15/2006 15,000.00 5.250% 102,650.00 117,650.00 (6,927.20) 110,722.80
3/15/2007 15.000.00 5.750% 101,862.50 116,862.50 (6,927.20) 105,935.30
3/15/2008 15,OMOO 5,750% 101,000.00 116,000.00 (6,927.20) 100,072.80
3/15/2009 20,000.00 5.750% 100,137.50 120,137.50 (6,927.20) 113.210.30
3/15/2010 20,000.00 5.750% 98,987.50 118,987.50 (6,927.20) 112.060.30
3/15/2011 20,000.00 5.750% 97,837.50 117,837.50 (6,927.20) 110,910.30
3/15/2012 25,000.00 6.250% 96,687.50 121,687.50 (6,927.20) 114,760,30
3/15/2013 25,000.00 6.250% 95,125.00 120,125.00 (6,927.20) 113,197.80
3/15/2014 25,000.00 6.250% 93,562.50 118,562.50 (6,927.20) 111,635.30
3/15/2015 30,000.00 6.250% 92,000.00 122,000.00 (6,927.20) 115,072.80
3/15/2016 30,000.00 6.250% 90,125.00 120,125.00 (6,927.20) 113,197.80
3/15/2017 30,000.00 6.250% 88,250.00 118,250.00 (6,527.20) 111,322.80
3/15/2018 30,000.00 6.250% 86,375.00 116,375.00 (6,927.20) 109,447.80
3/15/2019 35,000.00 5.280% 84,500.00 1191500.00 (6,927.20) 112,S72.80
3/15/2020 35,000.00 6.250% 82,312.50 117,312.50 (6,927,201 110,385.30
3/15/2021 40,000.00 6.250% 80,125.00 720172S.00 (6,927.20) 113,197.80
3/15/2022 45,000.00 6.750% 77,625.00 122,625.00 (6,927.20) 115,697.80
3/15/2023 45,000.00 6.750% 74,587.50 119,587.50 (6,927.20) 112,660.30
3/15/2024 48,000.00 5.750% 71,550.00 7761550.00 (5,527.20) 109,622.80
3M5/2025 55,000.00 6.750% 68,512.50 123,512.50 (6,927.20) 116,585,30
3/15/2026 55,000.00 6.750% 64,800.00 119,800.00 (6,927.20) 112,872.80
3/15/2027 55,000.00 6.750% 61,087.50 116,087.50 (6,927.20) 109,160.30
3/15/2028 60,000.00 6.750% 57,375.00 117,375.00 (6,927.20) 110,447.80
3/15/2029 70,000.00 6.750% 53,325.00 123,325.00 (6,927.20) 116,397.80
3/15/2030 70,000.00 6.750% 48,600.00 118,600.00 (6,927.20) 111,672.80
3/15/2031 75,000.00 6.750% 43,875.00 118,875.00 (6,927.20) 111,947.80
3/15/2032 80,000.00 6.750% 38,812.SO 118,812.50 (5,927.20) 111,885.30
3/15/2033 85,000.00 6.750% 33,412.50 118,412.50 (6,927.20) 111,485.30
3/15/2034 95,000.00 6.750% 27,675.00 122,675.00 (6,927.20) 115,747.80
3/15/2035 100,000.00 6.750% 21,262,50 121,262.50 (6,927.20) 114,335.30
3/15/2036 105,000.00 6.750% 14,512.50 119,572.50 (6,927.20) 112,585.30
3/15/2037 110,000.00 6.750% 7,425.00 117,425.00 (130,627.20) (13,202.20)
Total 1,605,000.00 - 2,569,175.00 4,174,175.00 (366,152.00) 3,808,023.00
Kinsel,Newcomb&Do Dios,Inc. File = MHP.sf--MHP ACA 3-14-02-Scrics B
Public Finsnca 211412002 5:23 PM
Pago 9
Preliminary
City of Palm Springs, California
Mobi/ehome Park Revenue Bonds
(Sahara Senior MHO
Series 2001 B
PRICING SUMMARY
Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price
3/15/2006 Term 1 Coupon 5.250% 5.250% 60,000.00 100.000% 60,000.00
3/15/2017 Term 2 Coupon 5.750% 6.000% 90,000.00 98.280% 88,452.00
3/15/2021 Term 3 Coupon 6.250% 6.750% 305,000.00 94.690% 288,804.50
3/15/2037 Term 4 Coupon 6.750% 7.000% 1,150,000.00 96.749% 1,112,613.50
Total - - - - 1,605,000,00 - 1,549,870.00
131D INFORMATION
Par Amount of Bonds......................................................... $1,605,000.0o
Reoffering Premium or(Discount)........................................ (55,130,00)
Gross Production..... .................................—......... ..._—.... $1,549,870.00
Total Underwriter's Discount (2.000%)............................... V321100.00)
Bid (94.565%).................................................................. 1,517,770.00
Total Purchase Price.......................................................... $1,517,770.00
Band Year Dollars.............................................................. $38,530.00
Average Life..................................................................... 24.008 Years
Average Coupon................................................................ 6.6679860%
Net Interest Cost(NIC)....................................................... 6.8943810%
True Interest Cast(TIC)...................................................... 6.8305795%
Kinsel,Nowcamb&De Dios,Inc. File = MHP.sf-MHP ACA 3-1402-Series B
Public Finance 3114,12002 5:23 PM
Page 10
Preliminary
City of Palm Springs, California
Mobilehome Park Revenue Bonds
(Sahara Senior M140
Series 2001 B
COVERAGE RATIO
Date Total Revenues Total D/8 Coverage
3/15/2002 - -
3/15/2003 889,089.36 768,092.50 1.157529OX
3/15/2004 889,089,36 770,817.50 1,1534369x
3/15/2005 889,089.36 772,780.00 1.1505077x
3/15/2006 883,089.36 768,480.00 1.1569453X
8/15/2007 889,088,36 769,017.50 1.1561367x
3/15/2008 889,080.36 768,865.00 1.1563660x
3/15/2009 889,089.36 773,115M 1.1500092x
3/15/2010 889,089.36 771,565,00 1.1523195x
3/75/2011 889,089.36 769,665.00 1.155164lx
3/15/2012 889,089.36 772,340.00 1.1511632X
3/15/2013 889,080 36 769,230.00 1.1558173x
3/15/2014 889,089.36 770,667,50 1.1536614x
3/15/2015 889,089.36 771,456.00 1.1524838x
3/15/2016 889,089.36 771,520.00 1.1523867x
3/15/2017 889,089,36 770,900.00 1.1533135X
3/15/2018 8891089.36 769,575.00 1,1552992X
3/15/2019 889,089,36 772,525.00 1.1508875x
3/15/2020 889,089.36 759,612.50 1.1552429x
3/15/2021 889,089.36 771,150.00 1.1529396x
3/75/2022 889,089.36 771,825.00 1.1519313x
3/1512023 889,089.36 771,187.50 1.1528835x
3/15/2024 889,089.36 769,710.00 1.1550965x
3/15/2025 889,089.36 772,$92,50 1.1510849x
3/15/2025 889,089.36 768,840.00 1.1564036x
3/15/2027 889,085.36 769,447.50 1.1554906x
3/15/2028 889,089,36 768.935.00 1.1562608x
3/15/2029 889,089.36 772,245.00 1.1513048x
3/15/2030 889,089.36 769,040.00 1.1561029X
3/15/2031 889,085.35 769,715.00 1.1550890x
3/15/2032 889,088.36 768,932.50 1.1562645x
3/15/2033 889,089,36 771,692.50 1.152129lx
3/15/2034 889,089.36 772,715,00 1.1506045x
3/15/2035 889,089.36 771,942.60 1.1517559x
3/15/2036 889,089.36 769,432.50 1.1$55131x
3/15/2037 889,089.36 770,185.00 1,1543842x
3/15/2038 882,162.16 648,920.00 1.3594313x
Total 32,000,289.75 27,618,530.00 -
Kinself,Newcomb&De Dios,Inc. File = MHP.sf-MHP ACA 3-14-02-45eries 8
Public Finance 311412002 5:23 PM
Page 11
City of Palm Springs
MHP Revenue Bonds
Cashflow Schedule
Sahara Mobile Home Park Project
Preliminary 38 Year Performs
Year 1 2 3 4 5 6 7
Income
Space Rent 1,141,908 1.171,598 1.202,059 1,233,313 1,265,379 1,298.279 1,332,034
Millenium Housing Space Rant(2 spaces) 8.991 9,225 9,465 9,711 9,963 10,222 10,488
Utility Income 275,663 289,451 299,582 310.067 320.920 332,152 343,777
Other Income 8 665 8 968 9.282 9.607 9 943 10291 10�51
Total Scheduled Income 1,439�,227 1,479,242 1,520,388 1.562,698 1,606.205 1,650,944 1,696,951
Expenses
Accounting 0 6,000 6,210 6,427 6,652 6,885 7,126
Insurance-Property 22,500 23,288 24,103 24,046 25,819 26,723 27,658
License and Permits 18,868 19,528 20,212 20.919 21,651 22,409 23,194
Management Fee-3% 42,907 44,409 45,963 47.572 49,237 50,960 52,744
Office,general&adminlstmtive 7,177 7,428 7,668 7,957 8,236 8,524 81822
Professional Foes 10,109 10,463 10,829 11,208 11,600 12,006 12,427
Property Taxes 30.606 31,218 31,842 32,479 33,129 33,791 34,467
Repairs and Maintenance 45,000 46,575 48,205 49,892 51,639 53,446 55,316
On site Management 65,417 67,707 70,076 72,529 75,066 77,665 60,414
Utilities 342 078078 _35 4 051 366 443 379 288 392 542 dp6,281 420,501
Total Expenses 584,662 610,666 631,571 653,195 675.573 698.721 722,670
Net D era�p�tin _Income 854,565 868.576 888,817 909,499 930.632 952.223 974,281
Series A DSR Earnings 36,588 36,583 36.588 36,588 361588 36,588 56,588
Total Income Prior to Series A Debt Service 891.153 905,164 925,405 846,087 967.220 988.811 1.010.669
Series A Debt Service 653.080 651,330 649,080 650,830 652,155 652,865 652,$77
Coverage Factor 1.36 1,39 1,43 1.45 1.48 1,51 1.55
Cashflow after Debt Service 238,073 253,834 276.325 295.257 315,065 335,946 357.892
Trustee 0 3,500 31500 3,500 5.500 3,500 3,500
Program Administrator/Oversight 0 4,750 4,750 4,750 4,750 4,750 4,750
Series B DSR Earnings 6,927 6,927 6,927 6,927 6,927 6,$27 6,927
Total Income Prior to Series B Dept Service 245,000 252,511 275.002 293,934 313,742 334,623 $56.569
Series B Debt Service 115,012 119,457 123.700 117.650 116,862 116.000 120,137
Cwerage Factor(Serios A&B) 1.17 1.17 1.20 1.23 1.26 1.28 1.31
Cashflow after Series A&B Debt service 129,968 133,024 151,302 176,284 196.880 218,623 288.432
Sollor Note 25,000 25,000 25,000 25.000 25,000 25,000 0
Asset Management Fee 60,960 $2,545 64,171 65,840 67,551 69,308 71,110
surplus Cashflow 44,028 45,479 62,131 85,445 104,328 124.315 165,522
Beg,Balance of Repair&Replacement 865,000 952,278 548.196 447,949 430,316 440.660 465,943
Estimated R&R Expenditures 0 473 500 180,750 119.500 110,000 115.300 110,000
R&R Interest Earnings(5r8) 43,250 23,939 18,372 16,422 16,016 16,268 17,797
Balance of R&R after Expenditures 952,278 548,196 447,94$ 430.316 440.660 465,943 573,740
Replenish R&R to($200,000) 0 0 0 0 0 0 0
Cashflow after R&R Replenishment 0 0 0 0 0 0 165.322
Beg.Balance of Operating Reserve 0 0 0 0 0 0 0
Replenish Operating Reserve to$326,680 0 0 0 0 0 0 82,661
Net Cashflow 0 0 0 0 0 0 82,661
Assumptions:
Space Rents are assumed to increase at CPI(2,60,4for Proforma purposes)
Utility Income and Other Income are assumed to increase at 3.5%.
Asset Management Fee is$20 a space with a CPI inflator of 2.6%
All'above the line"expenses are assumed to increase at 3.5%with the exception of Property Taxes,which Increase at 2 A per year.
Series A,B DSR Interest earnings are set at 5.4%.
Sollor Note is$150,000 @ 0%maturing in 6 years. Payments are$12,500 semi-annual and are senior to the Asset Management Fee.
The Operating Reserve Fund deposits are equal to 112 of the Cashflow after R&R Replenishment. The fund will grow and be maintained at 112
ACA Ser.B DSR Prin Not Inc.
City of Palm Springs
MHP Revenue Bonds
Cashflow Schedule
Sahara Mobile Home Park Project
Preliminary36 YasrPar/ormi
Year 6 9 10 11 12 13 14 1s
Income
Space Rent 1.366.667 1,402,200 1.438.657 1.476,062 1.514.440 1,553,815 1,584,215 1,635,664
Millonium Housing Space Rent(2 spaces) 10,761 11,040 11,328 11,622 11,924 12.234 12,552 12,679
Utility Income 355,809 368,263 381,152 394,492 408.300 422,590 437,381 452,689
Other Income 11024 11410 11810 12223 12851 13893 13552 1A826
Total Scheduled Income 1,744,261 1,792,913 1,842,046 1,894,400 1,947,314 2,001,733 2,057.699 2,115,258
Expenses
Accounting 7,376 7,634 7,901 8,177 8,464 8,760 9,066 9,384
Insurance-Properly 28,626 29,628 30,665 31,738 32,849 33,999 35,16$ 36,421
License and Permits 24,005 24,846 25,715 26,615 27,547 28,511 29,509 30,542
Management Fee-3% 54,590 56,500 58,478 60,525 62,643 64,835 67,105 69,453
Office,general&administrative 91131 9,451 9.782 10.124 10,478 10,845 11,225 11,617
Professional Foos 12.861 13 312 13.778 14,260 14.759 15,275 15,810 16,363
Proporly Taxes 35,157 35,860 36,577 37,309 38,055 38,818 39,592 40,384
Repairs and Maintenance 57,253 59,256 61,330 63,477 65,699 67,998 70,378 72,541
On site Management 83,229 86,142 89,157 92,277 95,507 99,850 102,309 105,890
Utilities 435219 450451 466 217217 482 535 499424 516 903 534 995 553,720
Total Expenses 747,44$ 773,079 799,599 827.037 855.423 884.792 915.178 946,615
Net_Operatinp Income 996.815 1,019,834 1.043.347 1.067.363 1.091.891 1,116,941 1,142,522 1.168.643
Series A DSR Earnings 36,588 361566 36,588 36,588 36.588 36,568 36.588 36,568
Total Income Prior to Series A Debt Service 1,033.403 1.056.422 1,079,935 1.103.951 1,128,479 1.153.529 1.179,110 1,205.231
Series A Debt Service 652,577 851,827 650,952 649,105 652,105 649,455 651,395 652,650
Coverage Factor 1.58 1.62 1.66 1.70 1.73 1.78 1181 1,85
Cashflow after debt Service 380,826 404,595 429,293 454,846 476,374 504,074 527,715 552,581
Trustee 3,500 3500 3500 3,500 3500 3,500 3,500 31500
Program AdministratorlOversight 4,750 4,750 4,750 4,750 4,750 4,750 4.750 4.750
Series B DSR Earnings 5,927 6,927 6,927 6,927 6,927 6,927 6,927 6,927
Total Income Prior to Series B Debt Service 37%503 403.272 427.960 453,523 475.051 502.751 528,392 551,258
Series B Debt Service 118,987 117,837 121,1387 120,125 118,562 122,000 1211,125 118,250
Coverage Factor(Series A&B) 1,34 1.37 1,40 1,43 1.46 1.49 1.53 1.56
Cashflow after Series A&B Debt Service 260,516 285,435 306.273 333.398 356.489 380.751 406,267 433,008
Seller Note 0 0 0 0 0 0 0 0
Asset Management Foe 72,959 74,856 76,802 78,799 80.847 82,940 85,106 87,319
Surplus Cashflow IV.557 210,580 229,471 254.599 275,642 297,801 321,160 345,689
Beg.Balance of Repair&Replacement 373,740 253.040 200,000 200.025 210,026 200.000 200,000 200,000
Estimated R&R Expenditures 132,750 190.000 9,500 0 100,000 100,000 100,000 100,000
R&R Interest Earnings(5%) 12,050 3,152 9.525 10.001 5,501 5,000 5,000 5,000
Balance of R&R after Expenditures 25$.040 66,192 200.025 210.026 115.528 105,000 105,000 105,000
Replenish R&R to($200,000) 0 133,808 0 0 84,472 95,000 95,000 95,000
Cashflow after R&R Replenishment 187,557 76.771 229.471 254,599 101.169 202.501 226,160 250,689
Beg.Balance of Operating Reserve 82,661 176,440 214.825 326.680 326 680 326.680 326,680 326,680
Replenish Operating Reserve to$326,680 93,779 38.386 111,855 0 0 0 g 0
Net Cashflow 93,779 38,380 117,617 254.599 191,169 202.501 226,160 250,689
Assumptions:
Space Rents are assumed to Increase at CPI(2.6%for Pm
Utility Income and Other Income are assumed to increase
Asset Management Fee is$20 a space with a CPI inflator o
All"above the line"expenses are assumed to increase at 3
Series A,B DSR Interest earnings are set at 5.4%.
Seller Note is$150,000 C 0%maturing in 6 years, Paym
The Operating Reserve Fund deposits are equal to 112 of thlAaxlmum Annual Debt Service on the Series A Bonds.
ACA Sor.8 DSR Prin Not Inc.
City of Palm Springs
MHP Revenue Bonds
Cashflow Schedule
Sahara Mobile Home Park Project
Preliminary 36 YearPerforma
Year 16 17 18 19 20 21 22 23
CO e
Space Rent 1,678,192 1,721,825 1,766,592 1,812,523 1,859,649 1,908,000 1.057.608 2,008,506
Millonium Housing Space Rent(2 spaces) 12,214 13,557 13,910 14,271 14,642 15,023 15,414 15,814
Utility Income 468.533 484,932 501.904 519,471 537,652 556,470 575,947' 596,105
Other Income 14,517 15�5 15 551 16595 16558 17242 17 845 18470
Total Scheduled Income 2,174.455 2.235.338 2.297,957 2,362,361 2,428.602 2.496.735 2.566.813 2.638.894
Expenses
Accounting 9,712 10,052 10,404 10,768 11,145 11,535 11,939 12,357
Insurance-Property 37,695 39,015 40,380 41,794 43,256 44,770 46,337 47,959
License and Permits 31,610 32,717 $3,862 35,047 36,274 37,543 38,857 40,217
Management Fee-5% 71,884 74,400 T7,004 7%699 62,4$9 85,376 86,364 91,457
Office,general&administrative 12.024 12,445 12,880 13,331 13,798 14,281 14,781 15,298
Professional Fees 16,936 17,529 18,142 18,777 19,435 20,115 20,819 21,547
Property Taxes 41.192 42.015 42,856 43,713 44,587 45,479 46,388 47,316
Repairs and Maintenance 75.391 78.029 80,760 83,587 86,513 89,540 92,674 95,918
On site Management 108,596 113,432 117,402 121,511 125.764 130,166 134,722 139.437
Utilities 573 100 593 158158 615910 635 406406 65T 645645 680 663663 704.8.486 729.143
Total Expenses 979,141 1,012.793 1,047,610 1,083,634 1,120,905 1,159,468 1,199,368 1,240,650
Net Oseratinu Income 1,195,314 1,222,545 1,250,346 1.278,727 1.307,697 1.337.266 1,367.446 1.398,245
Series A DSR Earnings 36,588 36,588 36,588 36,588 36,588 36,588 36,588 36,588
Total Income Prior to Series A Debt Service 1,231,902 1,259,133 1,286,934 1.315.315 1,344,285 1.373.854 1.404,034 1,434,833
Series A Debt Service 653,200 653,025 652.300 651,025 649,200 651,600 653,160 648,880
Coverage Factor 1.89 1,93 1,97 2.02 2.07 2.11 2.15 2.21
Cashfim after Debt Service 578.702 606,108 634,634 664,290 695,085 722,254 750,Val 785,953
Trustee 31500 3,500 3,500 3,500 3,500 3,500 3,500 3,500
Program Administrator/Oversight 4,750 4,750 4,750 4,750 4,75❑ 4,750 4,750 4,750
Series B DSR Earnings 6,927 6,927 6,927 6,927 6,927 6,927 6,927 6,927
Total Income Prior to Series B Debt Sorvico 577.379 604.785 633,311 662,967 693,762 720,931 749,551 784,630
Series B Debt Service 118,375 119,500 117,312 120,125 122,625 119,587 116,550 123,512
Coverage Factor(Sorios A&B) 1.60 1.63 1.67 1,70 1,74 1,78 1.82 1.86
Cash9ow after Series A&B Debt Service 461,004 485.285 515,99$ 542.842 571.137 601,344 633,001 661,118
Seller Note 0 0 0 0 0 0 0 0
Asset Management Fee 89,589 91,918 94,308 96,760 99,276 101.857 104.506 107.223
Surplus Cash0ow 371,415 3M,367 421.691 446.081 471.861 499.487 528,495 553,895
Beg.Balance of Repair&Replacement 200,000 200,000 200.000 200.000 200,000 200,000 200,000 200.000
Estimated R&R Expenditures 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
R&R Interest Earnings(5%) 5,000 5,000 5,❑00 5,000 5,000 5.000 5.000 5.000
Balance of R&R after Expenditures 105,000 105,00❑ 105,000 105,000 105,000 105,000 105,000 105,000
Replenish R&R to($200,000) 95,000 95,000 95,000 95,000 95,000 95,000 95,000 95,000
Cash6ow after R 8,R Replenishment 276.415 296,367 326,691 351,081 376.861 404,487 433.495 458,895
Beg.Balance of Operating Roservo 326,680 326,6$0 326,690 326.680 326.680 326,680 326,680 326,680
Replenish Operating Reserve to$326.680 0 0 0 0 0 0 ❑ ❑
Net Cash0ow 276.415 298,3$7 326,691 351,081 376,861 404,487 433,495 458,895
Assumptions:
Space Rents are assumed to increase at CPI(2.6%for Pro
Utility Income and Other Income are assumed to increase
Asset Management Fee is$20 a space with a CPI inflator o
All'above the line expenses are assumed to increase at 3
Series A,8 DSR Interest earnings are set at 5,4%.
Seller Note is$150,000 @ 0%maturing in 6 years. Paym
The Operating Reserve Fund deposits are equal to 112 ofth
ACA Ser.B DSR Prin Not Inc.
City of Palm Springs
MHP Revenue Bonds
Cashflow Schedule
Sahara Mobile Home Park Project
Preliminary 38 Year Performs
Year 2tl 26 26 27 28 29 30 31
nco
Space Rent 2,060.727 2.114.306 2.169,278 2.225.679 2.283.546 2,342,919 2,403,835 2,466,334
Millonlum Housing Space Rent(2 spaces) 16,225 16.647 17.080 17,524 17,980 18,447 18,927 19,418
Utility Income 616,969 638,562 060.012 684,044 707.986 732.765 753,412 794,956
Other Income 19 116 19785 20478 21.194 21.936 22,704 23.498 24321
Total Scheduled Income 2,713.037 2,789,301 2,897,747 2,948,441 3,031,448 3.116,835 3,204.672 3.295.031
Expenses
Accounting 12,789 13,237 13,700 14179 14,676 15,189 15,721 16,271
Insuranco-Property 49,638 51,375 53,173 55,034 56,960 58,954 61,017 63,153
License and Permits 41,625 43,082 44,590 46.150 47,766 49,437 51,168 52,859
Management Fee-3% 94,658 97,971 101,400 104,949 108,622 112.424 116,359 120,431
Office,general&administrative 15,833 16,387 16,961 17,555 18,169 18,805 19,453 20,144
Professional Foos 22,302 23,082 23.890 24.726 25,592 26,487 27,414 28,374
Property Taxes 48,263 49,228 50.212 51,217 52,241 53,286 54,352 55,439
Repairs and Maintonanco $%275 102,750 106,346 110,068 113.921 117,908 122,035 126,306
On site Management 144,317 149,368 154,596 180,007 185,608 171.404 177,403 183.612
Utilities 754,663 781.076 808 414414 836709 865 993993 896 303 927 674 960 142
Total Expenses 1,283,363 1,327.556 1,373,282 1.420.594 1,469,547 1,520,187 1.572,605 1,626,831
NetOperating I 1.429.674 1.461.744 1,494,465 1.527,847 1,561,901 1,596,638 1,632,067 1,668.200
Series A DSR Earnings 36,588 36,568 36,588 36,588 36,588 36,59$ 36,588 36,588
Total Income Prior to Series A Debt Service 1,466,262 1,498,332 1.531.053 1,564.435 1.598.489 1.633.226 1,668,655 1,704,799
Series A Debt Service 649.040 653,360 651.560 64$,920 650.440 650,840 650,120 655.280
Coverage Factor 220 2.29 2.35 2.41 2,46 2.51 2.57 2.61
Cashflow after Debt Service 817,222 844.972 879,493 915.515 948,049 982,386 1,018,535 1,051,508
Trustee 3,500 3,500 3,500 31500 31500 3,500 3,500 3,500
Program Administrator/Oversight 4,750 4,750 4,750 4,750 4,750 4,750 4,750 4,750
Series B DSR Earnings 6,977 6,927 6,927 6,927 6,927 6,927 6,927 6,977
Total Income Prior to Series B Debt Service 81509 843,649 978,170 914,192 946,726 981,063 1.017.212 1.050,185
Series 6 Debt service 119,800 116.087 117,375 123,325 118,600 118,875 116,812 118,412
Coverage Factor(Series A&B) 1.91 1.95 1.99 2.02 2.08 2.12 2.17 2121
Cashflow after Series A&B Debt Service 696,099 727,562 780,795 790,867 828.126 862,188 898.400 931,773
sailer Note 0 0 0 0 0 0 0 0
Asset Management Fee 110,011 112.671 115,805 118,816 121,006 125.075 128,327 131.664
Surplus Cashflow 586.089 614.691 644,990 672,051 706,221 737,113 770,073 800.109
Beg.Balance of Repair&Replacement 200,000 200.000 200,000 200,000 200,000 200,000 200.000 200.000
Estimated R&R Expenditures 100.000 100.000 100.000 100.000 100,000 100,000 100,000 100.000
R&R Interest Earnings(5%) 5.000 51000 51000 5,000 5,000 5,000 5,000 5.000
Balance of R&R after Expenditures 105,000 105.000 105.000 105,000 105,000 105,000 105,000 105.000
Replenish R&R to(¢200,00(1) 95,000 95,000 95,000 95,000 95,000 95,000 95,000 85.000
Cashflow after R&R Replenishment 491,089 519.691 549.990 577,051 611,221 642,113 675,073 705,109
Beg.Balance of Operating Reserve 326,680 326,6a0 326.680 326,680 326,680 326,680 326.680 326,680
Replenish Operating Reserve to$326,680 0 0 0 0 0 0 0 0
Not Cashflow 491,089 519,691 549,990 577,051 611.221 $42,113 675.073 705.109
Assumptions:
Space Rents are assumed to increase at CPI(2.6%for Pro
Utility Income and Other Income are assumed to Increase
Asset Management Fee is$20 a space with a CPI inflator o
Ail'above the Tina"expenses are assumed to increase at 3
Series A.B DSR Interest earnings are set at 5.4%-
Seller Note is$150.000 @ 0%maturing in 6 years. Paym
The Operating Reserve Fund deposits are equal to 112 of th
ACA Ser.8 DSR Prin Not Inc.
City of Palm Springs
MHP Revenue Bonds
Cashflow Schedule
Sahara Mobile Home Park Project
Preliminary 3E YearPerform4
Year 32 33 34 36 38 37 38
Income
Space Rent 2,530.459 2.596,251 2,663,753 2,733,011 2,804,069 2,876,975 2,851,776
Milleni4m Housing Space Rent(2 spaces) 19,924 20,442 20,973 21,519 22,078 22,652 23,241
Utility Income 812.430 840,865 870,295 900,755 932,282 964,912 $98,684
Other Income 25172 26.053 26 965 27909 28888 29 897 30943
Total Scheduled Income 3.387,985 3.483,611 3,561,987 3,683,184 3,787.315 3,894,436 4.004.644
Expenses
Accounting 16,841 17,430 18,040 18,672 19,325 20,002 20,702
Insumnco-Proporty 65.363 67,851 70,019 72,469 75,006 77,631 80,348
License and Permits 54.812 56,731 58,716 60,771 6208 65,100 67,378
Management Fop-3% 124,648 129,009 133,524 139,197 143,034 148.041 153,222
Of ico,general&administrative 20,849 21,579 22,334 23,116 23,925 24,763 25,629
Professional Fees 29,367 30,395 31,459 32,560 33,699 34,879 36,099
Property Taxes 56,547 57,678 58,832 60,008 61,209 62,433 63,681
Repairs and Maintenance 130,726 135,302 140.037 144.939 150.012 155.262 160.696
On site Management 190.038 1g6,690 203.574 210,699 218,073 225,706 233,606
utilltias 993747 1,028,529 7 0. 64.527 jJ91,785 1,140,348 I.JP0,260 1.221.569
Total Expenses 1,682,938 1,740,993 1.801.062 1.863.217 1.927,530 1,994,075 2,062,931
Net Operating Income 1,705,047 1.742.618 1.780,925 1,819,977 1,859,785 1,900,361 1.941,713
Series A 0813 Earnings 36,588 36,588 36,588 36,588 36,588 36,588 689,848
Total Income Prior to Series A Debt Service 1,741.635 1,779,206 1,817,515 1,856,565 1,896,373 1,836,948 2.631.661
Series A Debt Service 650,040 650,680 649,920 652.760 648,920 648.680 881.760
Coverage Factor 2,68 2.73 2.80 2.84 2.92 2.99 2.98
Cashflow after Debt Service 1.091,595 1,128.526 1.167.593 1,203,805 1.247.453 1,288,289 1,7451,901
Trustee 3500 31500 31500 31500 3.500 3,500 3,500
Program Administrator/Oversight 4,750 4,750 4,750 4,750 4,750 4,750 4,750
Sorles S DSR Earnings 6,927 6,927 6,927 6,927 6,927 6,927 6,927
Total Income Prior to Series 6 Debt Service 1,090,272 1,127,203 1,166,270 1,202,482 1,246,130 1,286,946 1,748,578
Series a Debt Service 122.675 121,262 119.512 117,425 0 0 0
Coverage Factor(Series A&S) 2.25 2,30 2,36 2.41 2.92 2.98 2.98
Cashflow after Soria:A&B Debt Service 967,597 1,005.941 1.046,758 1,085,057 1.246,130 1,286,946 1,748,578
Seller Note 0 0 0 0 0 0 D
Asset Managoment Fee 135,087 138,5g9 142,203 145.900 149,693 155.585 157,579
Surplus Cashflow $32.510 867.342 904.555 939.157 1,096,457 1,133,36a 1,591,000
Beg.Balance of Repair&Replacement 200.000 200.000 200,000 200,000 200,0D0 200,000 200,000
Estimated R&R Expenditures 100,000 100,000 100,000 100,000 100,000 100,000 100.000
R&R Interest Earnings(5%) 5,000 5,000 5,000 5,000 5,000 51000 5,000
Balance of R 4.R after Expenditures 105,000 105,000 105,000 105,000 105,000 105,000 105,000
Replenish R&R to($200,000) 95,000 95,000 95,000 $5,000 95,000 95,000 95.000
Cashflow after R&R Replenishment 737,510 772,342 809.555 844,157 1.001.437 1,038,360 1,496,000
Beg.Balance of Operating Reserve 326,680 326,680 326,680 326,680 326,680 326.660 326,680
Replenish Operating Reserve to$326,680 D 0 0 0 0 0 0
Net Cashflow 737,510 772,342 809.555 844,157 1.001.437 1.038,360 1,496,000
Assumptions:
Space Rents are assumed to increase at CPI(2.6%for Pro
utility Income and Other Income are assumed to increase
Asset Management Fee is$20 a space with a CPI inflator o
All`above the line•expenses are assumed to increase at 3
Series A,B DSR Interest earnings are set at 5.4%.
Seller Note is$150,000 @ 00,4 maturing in 6 years. Paym
The Operating Reserve Fund deposits am equal to 112 of th
ACA Ser.B DSR Prin Not Inc.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
SPRINGS AUTHORIZING THE ISSUANCE OF ITS NOT TO EXCEED
$12,750,000 AGGREGATE PRINCIPAL AMOUNT OF CITY OF PALM
SPRINGS MOBILE HOME PARK REVENUE BONDS (SAHARA MOBILE
HOME PARK) 2002 SERIES A AND ITS MOBILE HOME PARK
SUBORDINATED REVENUE BONDS (SAHARA MOBILE HOME PARK)
SERIES 2002B AND APPROVING CERTAIN DOCUMENTS AND
AUTHORIZING CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City of Palm Springs (the "City"), a charter city and municipal
corporation duly organized and existing under and by virtue of the Constitution and laws of the
State of California, is authorized to issue bonds pursuant to Section 52100 and following of the
Health and Safety Code of the State of California (the "Law") to finance the acquisition of
mobile home parks by nonprofit organizations within the jurisdiction of the City; and
WHEREAS, Millennium Housing Corporation, a California nonprofit public benefit
corporation (the 'Borrower") qualified as an exempt organization under Section 501(c)(3) of the
Internal Revenue Code of 1986, as amended (the "Code"), has requested that the City issue
and sell two series of revenue bonds for the purpose of providing financing for the acquisition
and rehabilitation of a 254-space mobile home park located at 1955 South Camino Real in the
City of Palm Springs, California and known as the Sahara Mobile Home Park (the "Project');
and
WHEREAS, the financing of the Project will lessen the governmental burden of the City
by preserving affordable housing within the City; and
WHEREAS, the City proposes to issue its not to exceed $12,750,000 aggregate
principal amount City of Palm Springs Mobile Home Park Revenue Bonds (Sahara) in two
series (the "Bonds") pursuant to the Law to finance the acquisition and rehabilitation by the
Borrower of the Project; and
WHEREAS, there has been presented to the City Council at this meeting Preliminary
Official Statements relating to the Series A Bonds and Series B Bonds, and there is on file with
City Clerk proposed forms of an Indenture of Trust, a Loan Agreement, a Regulatory
Agreement, an Administration and Oversight Agreement, as well as a Purchase Contract with
respect to the purchase of the Series A Bonds and the Series B Bonds by Kinsell, Newcomb &
DeDios, Inc. (the "Underwriter") for sale to the public; and
WHEREAS, as required by Section 147(f) of the Internal Revenue Code of 1986, as
amended, this City Council has on this date conducted a duly noticed public hearing with
respect to the proposed issuance of the Bonds and financing the Project, such notice being
published In a newspaper of general circulation in the City; and
WHEREAS, all acts, conditions and things required by the laws of the State of
California to exist, to have happened and to have been performed precedent to and in
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connection with the issuance of the Bonds exist, have happened and have been performed in
due time, form and manner as required by law, and the City is now duly authorized and
empowered, pursuant to each and every requirement of law, to issue the Bonds for the
purposes, In the manner and upon the terms herein provided.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS AS FOLLOWS:
Section 1. Recitals. The above recitals, and each of them, are true and correct.
Section 2. Approval of Issuance of Bonds and Making of Loan. The issuance of the
Bonds pursuant to the Act, the making of the Loan with the proceeds of Bonds by the City to
the Owner and the financing of the Project are hereby approved. This approval is made in
order to meet the public approval requirements of Section 147(f) of the Internal Revenue
Code, as amended.
Section 3. Appointment of Trustee. Union Bank of California, N.A. is hereby
appointed as the initial trustee (the "Trustee") under the Indenture of Trust (the "Indenture")
relating to the Bonds, with the duties and powers of such Trustee as are set forth in the
Indenture.
Section 4. Indenture. The Indenture authorizing the issuance of the Bonds,
between the City and the Trustee, a copy of which is on file with the City Clerk, be and is
hereby approved in substantially the form thereof and the Mayor, Mayor Pro Tem, City
Manager or Treasurer, each acting alone, are hereby authorized and directed, for and in the
name and on behalf of the City, to execute and deliver the Indenture in the form hereby
approved together with such additions or changes as the officer executing the same, upon
consultation with the City's Financial Advisor, the City Attorney and Bond Counsel, may
approve, such approval to be conclusively evidenced by the execution and delivery thereof by
the City.
Section 5. Form of Bonds. The forms of the Bonds, each as set forth in the
Indenture, are hereby approved and the Mayor, Mayor Pro Tem or Treasurer and the City
Clerk are hereby authorized and directed to execute by manual or facsimile signature, for and
in the name and on behalf of the City, the Bonds in either temporary and/or definitive form in
the aggregate principal amounts and all in accordance with the terms and provisions of the
Indenture.
Section 6. Loan Agreement. The Loan Agreement (the "Loan Agreement') by and
among the City, the Trustee and the Borrower, whereby the proceeds of the Bonds are to be
loaned to the Borrower for the purpose of providing permanent financing for the acquisition
and renovation of the Project, a copy of which is on file with the City Clerk, be and is hereby
approved in substantially the form thereof and the Mayor, Mayor Pro Tem, City Manager or
Treasurer, each acting alone, are hereby authorized and directed, for and in the name and on
behalf of the City, to execute and deliver the Loan Agreement in the form hereby approved
together with such additions or changes as the officer executing the same, upon consultation
with the City's Financial Advisor, the City Attorney and Bond Counsel, may approve, such
approval to be conclusively evidenced by the execution and delivery thereof by the City.
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Section 7. RegulatorV Agreement. The form of the Regulatory Agreement and
Declaration of Restrictive Covenants by and among the City, the Trustee and the Borrower
(the "Regulatory Agreement"), a copy of which is on file with the City Clerk, be and is hereby
approved in substantially the form thereof and the Mayor, Mayor Pro Tem, City Manager or
Treasurer, each acting alone, are hereby authorized and directed, for and in the name and on
behalf of the City, to execute and deliver the Regulatory Agreement with respect to the Project
in the form hereby approved together with such additions or changes therein as the officer
executing the same, upon consultation with the City's Financial Advisor, the City Attorney and
Bond Counsel, may approve, such approval to be conclusively evidenced by the execution and
delivery thereof by the City.
Section S. Official Statements. The three Preliminary Official Statements relating to
the Series A Bonds and the Series B Bonds (collectively, the "Preliminary Official Statements")
in the forms presented at this meeting, are hereby approved. The City Manager and
Treasurer, each acting alone, are hereby authorized and directed to make changes to the
forms of the Preliminary Official Statements hereby approved, upon consultation with the City's
Financial Advisor, the City Attorney and Bond Counsel, as necessary or desirable to reflect the
terms of the financing and the documents with respect thereto.
The Preliminary Official Statements may be brought into the form of final Official
Statements which shall contain such changes or modifications thereto as may be deemed
necessary or desirable by the City Manager or Treasurer, each acting alone, upon consultation
with the City's Financial Advisor, City Attorney and Bond Counsel. The Mayor, Mayor Pro Tem,
City Manager or Treasurer, each acting alone, are hereby authorized and directed, for and in
the name and on behalf of the City, to execute and deliver the final Official Statements. The
Mayor, Mayor Pro Tem, City Manager and Treasurer, each acting alone, are authorized and
directed, on behalf of the City, to certify the Preliminary Official Statements as "near final" for
purposes of Rule 15c2-12 under the Securities and Exchange Act of 1934, as amended ("Rule
15c2-12"), and to certify the Official Statements as "final" pursuant to Rule 15c2-12.
Section 9. Purchase Contracts for Series A Bonds and Series B Bonds. The
Purchase Contracts with respect to the Series A Bonds and the Series B Bonds among the
City, the Borrower and the Underwriter, copies of which are on file with the City Clerk, be and
are hereby approved in substantially the forms thereof. The Mayor, Mayor Pro Tem, City
Manager or Treasurer, each acting alone, are hereby authorized to execute the Purchase
Contracts in said form, together with such additions or changes as the officer executing the
same, upon consultation with the City's Financial Advisor, City Attorney and Bond Counsel,
may approve, such approval to be conclusively evidenced by the execution and delivery of the
Purchase Contracts by the City; provided that the combined aggregate principal amount of the
Series A Bonds and the Series B Bonds to be sold pursuant to the Purchase Contracts shall
not exceed $12,750,000, the interest rates on the Series A Bonds and the Series B Bonds
shall not result in a net interest cost greater than (i) 6.15% per annum with respect to Series A
Bonds; (ii) 7.25% per annum with respect to Series B Bonds (iii) the Underwriter's discount
shall not exceed 1.75%.
Section 10. Administration and Oversight Agreement. The Administration and
Oversight Agreement (the "Administration Agreement') by and among the City, the Borrower
and such entity as the City Manager shall select as Program Administrator and Oversight
Agent, a copy of which is on file with the City Clerk, be and is hereby approved in substantially
the form thereof, and the Mayor, Mayor Pro Tem, City Manager or Treasurer, each acting
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alone, are hereby authorized and directed, for and in the name and on behalf of the City, to
execute the Administration Agreement in the form hereby approved, together with such
additions or changes as the officer executing the same, upon consultation with the City's
Financial Advisor, the City Attorney and Bond Counsel, may approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 11. Designation of Professionals. The law firm of Burke, Williams &
Sorensen, LLP is hereby designated as Bond Counsel with respect to the Bonds; the law firm
of Best Best & Krieger LLP is hereby designated as Disclosure Counsel to the City with
respect to the Bonds; and the financing consultant firm of Harrell & Company Advisors, LLC,
Orange, California, is hereby appointed as financial advisor to the City with respect to the
Bonds. Kinsell, Newcomb & DeDios, Inc. is hereby designated as underwriter for the Bonds.
Section 12. Other Acts. The Mayor, Mayor Pro Tem, members of the City Council,
City Manager, City Clerk, Treasurer, City Attorney 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 without limitation, obtaining bond insurance and a rating
for the Bonds, and 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 transactions as described herein in connection with the issuance and sale of
the Bonds or to otherwise effectuate the purposes of this Resolution.
Section 13, Effective Date. This Resolution shall take effect immediately upon
adoption.
ADOPTED this day of 2002.
AYES:
NOES:
ABSENT:
ATTEST: CITY OF PALM SPRINGS, CALIFORNIA
City Clerk City Manager
REVIEWED AND APPROVED AS TO FORM:
City Attorney
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