1982/08/20City Hall, Anaheim, California - COUNCIL MINUTES - August 20, 1982, 9:00 A.M.
PRESENT:
ABSENT:
PRESENT:
The City Council of the City of Anaheim met in adjourned regular
session.
COUNCIL MEMBERS: Kaywood, Pickler, Bay and Roth
COUNCIL MEMBERS: Overholt
CITY MANAGER: William O. Talley
CITY ATTORNEY: William P. Hopkins
CITY CLERK: Linda D. Roberts
FINANCE DIRECTOR: George P. Ferrone
ASSISTANT CITY ATTORNEY: Jack L. White
137/124:
Mayor Roth called the meeting to order at 9:00 a.m. for the purpose
of considering authorizing the sale of Certificates for the
Convention Center parking facilities project.
CONVENTION CENTER PARKING FACILITIES PROJECT - CERTIFICATES OF
PARTICIPATION ($54,450,000): Finance Director George Ferrone commented on the
extremely favorable market conditions for tax-exempt municipal bonds on the
date this issue was sold, which resulted in a lowering of the interest rate by
25 base points. This equates to a spread of 2.475 percent, or ~24.75 per
thousand dollars of bond. He gave the breakdown as to broker fees and
assessments taken out of the ~24.75 and advised that the net interest rate of
this issue amounts to 10.98 percent. A spread sheet was given the Council
indicating comparable tax-exempt bond issues sold during the same time frame.
He advised the City Council that the City's underwriting team had underwritten
the Certificates, and they had all been placed; they were prepared to proceed.
Mr. Bob McDonald of James J. Lowry & Associates stated that he was very
pleased to make a recommendation to the City Council for acceptance of this
sale based on the fact that the Bond Buyer Index improved by 100 points over
the past week and because it represented a tremendous sales effort. In
response to Councilman Bay, Mr. McDonald explained the reasons for the
difference between interest rates on three and six month "T" bills versus
tax-exempt bonds.
Ms. Sharon White of Jones, Hall, Hill and White explained the documents before
the Council and the necessary Council actions.
At the conclusion of Ms. White's presentation~ Councilman Bay requested
assurance that no City tax monies would be used to pay these debts.
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City Hall, Anaheim, California - COUNCIL MINUTES - August 20, 1982, 9:00 A.M.
Mr. Jack White, Assistant City Attorney, advised that the way the agreement
was written, C-D III would be fully supporting the debt and fully responsible
for the payments; however, should they fail to meet this commitment, there
would be a remedy. In addition, the bonds are insured. He explained that the
entire package of agreements set up a circular arrangement wherein the first
obligation is that of the City to make the payments; through these contractual
documents, the cost of the Certificates is passed off through installment sale
payments to be received from the partnership. He concluded that if all
parties live up to their contractual commitments, which is anticipated to be
the case, the City will have no liability. If there should be a default, then
the facility would go back first to the City.
Mr. White added, however, that it is true that if the partnership should
default and the Reserve Fund become depleted, and if the City were unable to
re-rent the parking facilities, the City would then be liable on an annual
appropriation basis from its General Fund; however, this is a highly unlikely
occurrence.
RESOLUTION NO. 82R-429: Councilman Roth offered Resolution No. 82R-429 for
adoption, approving and authorizing execution of lease purchase agreement,
installment sale agreement, trust agreement and purchase agreement relating to
the parking facilities. Refer to Resolution Book.
RESOLUTION NO. 82R-429: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING AND AUTHORIZING EXECUTION OF LEASE PURCHASE AGREEMENT,
INSTALLMENT SALE AGREEMENT, TRUST AGREEMENT AND PURCHASE AGREEMENT RELATING TO
PARKING FACILITIES AND AUTHORIZING AND DIRECTING CERTAIN ACTIONS WITH RESPECT
THERETO.
Roll Call Vote:
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Kaywood, Pickler, Bay and Roth
None
Overholt
The Mayor declared Resolution No. 82R-429 duly passed and adopted.
MOTION: On motion by Councilman Roth, seconded by Councilman Bay, the City
Council approved the Official Statement dated August 20, 1982, to be used in
conjunction with sale of Certificates of Participation in the amount of
~54,450,000 aggregate principal amount relating to the parking facilities.
Councilman Overholt was absent. MOTION CARRIED.
RECESS TO CLOSED SESSION: On motion by Councilman Roth, seconded by
Councilman Bay, the City Council recessed to. Closed Session, as requested by
the City Attorney, to discuss litigation. Councilman Overholt was absent.
MOTION CARRIED. (9:30 a.m.)
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City Hall, Anaheim, California - COUNCIL MINUTES - August 20, 1982, 9:00 A.M.
AFTER RECESS: Mayor Roth called the meeting to order, all Council Members
being present, with the exception of Councilman Overholt. (10:30 a.m.)
ADJOURNMENT: Councilman Roth moved to adjourn to Tuesday, August 24, 1982, at
11:00 a.m., for the purpose of a closed session. Councilman Pickler seconded
the motion. Councilman Overholt was absent. MOTION CARRIED. (10:30 a.m.)
LINDA D. ROBERTS, CITY CLERK
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