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HomeMy WebLinkAbout1997-10-23MINUTES PALM DESERT FINANCING AUTHORITY MEETING THURSDAY, OCTOBER 23, 1997 CIVIC CENTER COUNCIL CHAMBER * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * I. CALL TO ORDER President Kelly convened the meeting at 5:20 p.m. II. ROLL CALL Present: Vice President Jean M. Benson Commissioner Buford A. Crites Commissioner Walter H. Snyder Commissioner Robert A. Spiegel President Richard S. Kelly Also Present: Ramon A. Diaz, Chief Administrative Officer Robert Hargreaves, Deputy City Attorney Sheila R. Gilligan, Authority Secretary Richard J. Folkers, ACM/Director of Public Works John Wohlmuth, ACM/Director of Administrative Services Carlos L. Ortega, RDA Executive Director Pat Conlon, Director of Building and Safety Phil Drell, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer David Yrigoyen, RDA Manager Gloria Darling, Human Resources Manager Joseph S. Gaugush, Engineering Manager John Nagus, Community Arts Manager Rudy Acosta, RDA Project Manager Lisa V. Constande, Environmental Conservation Manager Ken Weller, Risk Manager Ruth Ann Moore, Business Support Manager Teresa LaRocca, Housing Programs Coordinator Dennis Coleman, RDA Analyst Rachelle D. Klassen, Records Technician MINUTES PALM DESERT FINANCING AUTHORITY MEETING OCTOBER 23, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * III. CONSENT CALENDAR A. MINUTES of the Financing Authority Meeting of August 28, 1997. Rec: Approve as presented. Upon motion by Crites, second by Spiegel, the Consent Calendar was approved as presented by unanimous vote of the Authority Board. V. CONSENT ITEMS HELD OVER None VI. RESOLUTIONS None VII. NEW BUSINESS A. REQUEST FOR AUTHORIZATION of Revenue Bonds to be Used for the Refunding of Assessment District Nos. 92-1, 94-1, and 94-2, and Community Facilities District (CFD) No. 91-1 Mr. Diaz noted Mr. Coleman would be providing a report to the Authority Board and Mr. Gibson was also available to answer questions. Mr. Coleman addressed the Board stating the item under consideration regards a Marks -Roos Summary Refunding. He said while the documentation refers to three assessment districts, the decision has been made to only include two of these: 1) Bighorn Assessment District (94-1), developed by Bighorn Associates; and, 2) Sierra Nova (92-1), now known as the housing development of Tierravista, developed by Desert Aggregates, a subsidiary of Granite Development. The Marks -Roos Summary Refunding Bond also proposes to refund the Indian Ridge CFD, developed by Sunrise, comprised of two bond issues, one issued in 1992 and one in 1995. He went on to say the revenue bond size is approximately $31 million which will be used to purchase the refunding bonds issued at the local authority level. He said the bond issue is proposed, given today's market rates, having a future value savings of over $6.6 million, with the net present value savings being nearly $1.2 million. The total combined net present value, the most conservative way to evaluate savings, is 3.93%. He said also on tonight's Council Agenda are five resolutions which are connected to this matter. Mr. Coleman stated when the Investment and Finance Committee met earlier this month, certain concerns were raised. These were addressed by a memo from the Finance Director to the staff working on this refunding and receipt of letters of approval from the three developers involved citing their desire to proceed. He said 2 MINUTES PALM DESERT FINANCING AUTHORITY MEETING OCTOBER 23, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * earlier today a meeting was held with members consisting of the City Manager, Finance Director, Executive Director and RDA Analyst to satisfactorily answer all concerns. With respect to the letters of approval, he said to date, they have not been received from the developers. However, a meeting has been scheduled for Tuesday, October 28, 1997, 9:00 a.m. in the North Wing Conference Room with the developers, two members of the Financing Team, staff and members of the Investment and Finance Committee who wish to attend to discuss the current status of the bond issue, its structure, use of funds from the old bond issue and how it affects the new bond issue and receive letters of intent to proceed from the involved developers. Therefore, he concluded by saying the Financing Authority can do one of the following: 1) Approve the documents and resolutions before the Authority Board tonight, subject to receipt of the letters and answering any other concerns raised by the City Manager and Finance Director, or, 2) The Financing Authority can elect to continue this item until receipt of the letters. Commissioner Spiegel asked if the matter were continued to after receipt of the developers' letters, would the issue be impaired. Mr. Coleman answered if it were continued, it is a 50-50 chance of helping or hurting; it is subject to the market. He added if the market got away from us, we could always complete all the preparatory work needed for the issue then "shelve it" until rates were at a point to achieve the desired net present value savings (3% savings). President Kelly stated he was unable to attend the Tuesday morning meeting; however, Vice President Benson and Commissioner Spiegel said they would attend. Vice President Benson moved to, subject to receipt of the letters of intent from the involved developers and concurrence of the Finance Director, waive further reading and adopt Resolution No. FA-24, a resolution of the Palm Desert Financing Authority authorizing the issuance of Revenue Bonds for the purpose of purchasing Bonds of the City of Palm Desert relating to Assessment District Nos. 92-1, 94-1, and 94-2, and Community Facilities District No. 91-1, and authorizing and directing the execution and delivery of an indenture of trust, bond purchase contracts, escrow deposit and trust agreements and a continuing disclosure agreement, authorizing the sale of bonds, approving an official statement and authorizing other actions. Motion was seconded by Crites and carried by unanimous vote. VIII. CONTINUED BUSINESS None IX. OLD BUSINESS None 3 MINUTES PALM DESERT FINANCING AUTHORITY OCTOBER 23, 1997 * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER None B. AUTHORITY COUNSEL None C. PRESIDENT AND MEMBERS OF THE AUTHORITY None XI. ORAL COMMUNICATIONS None X I. ADJOURNMENT Upon motion by Spiegel, second by Crites, and unanimous vote of the Authority Board, President Kelly adjourned the meeting at 5:29 p.m. ATTEST: SHEILA R. GILLIGAN, SEA ARY TO THE ?ALM DESERT FINANCIi�ICi AUTHORITY zaz4 RICHARD S KELLY, PRESIDENT, 4