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HomeMy WebLinkAbout1984 12 11 CC MIN1984 12 11 CC MIN;¢f4ÄašADJOURNED REGULAR MEETING OF THE CITY OF BALDWIN PARK, CITY HALL, 14403 EAST PACIFIC AVENUE, DECEMBER 11, 1984 AT 8:00 A.M. The City Council of the City of Baldwin Park met in adjourned regular session in the City Council Chambers at 8:00 A.M. ROLL CALL: PRESENT: COUNCILMEN GIBSON, IZELL, ROLL CALL KING, McNEILL AND MAYOR WHITE ALSO PRESENT: City Manager Webb, Dir. of Housing & Economic Dcv. Hcmer, and City Clerk Cair 00- City Treasurer Montenegro's absence way automatically excused. 00- ABSENCE EXCUSED Director of Housing and Economic Development Hemer outlined the two issues and the dollar amounts involved in each that are before Council. He explained that the purpose of the bonds is to broaden the ability of modern income people to purchase homes. Mortgage rates are anticipated at a 30 year fixed rate at or below 11%, which is 2% below the market rate. STAFF REPORT HOME MORTGAGE FINANCING PROGRAM HEMER The documents have been prepared by the law firm of Jones, Hill, Hall and White. This firm has always done the Mortgage Revenue Bonds for the City. The City has accepted a 60 day cleadJ ine to issue these bonds in order to be able to do the bonds now and avoid a delay of possibly one year. Mr. Hemer stated that he and Rod Gunn, Financial Advisor to the City, are available to answer any questions from Council. He then explained the Ordinance and four Resolutions to be approved and the intent of each. In response to Councilman McNeill's question Director of Housing and Economic Development Hemer said that the City Attorney had not prepared any of the documents before Council today and there did not seem to be the need for him to be present. Councilman McNcill expressed his concern about voting on these issues without the City Attorney present to give direction to Council. He asked Mr. Gunn to explain exactly what the City is liable for, what the situation is in the. documents before Council and how is the Council and the citizens protected. Rod Gunn stated that the two bond issues are not a liability to the City or the Redevelopment Agency. The bond debt is initially that- of the developers and ultimately the people who buy the homes pay for it out of house pay- ments. Bond insurance was acquired this year and both issues will be rated Triple A. In response to Councilman Izell's questions Mr. Gunn stated that the investment agreement will be negotiated with three banks. The investment percentage rate will be structured through four funds. The funds set aside for the ultimate purchase of the mortgage will be invested at 10%, a reserve fund held for thirty years will be at 10 1/4%, the float, fund available for temporary investments to pay the principal and interest will be 9 1/4% and Lhe mortgage rate will be about 10.95% actual bond vield. COUNCIL DISCUSSION ROD GUNN BIB] 37655-U01 1984-U02 12-U02 11-U02 CC-U02 MIN-U02 LI1-U03 FO3794-U03 FO9487-U03 DO9495-U03 C4-U03 MINUTES1-U03 2/3/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06 1984 12 11 CC MIN;¢f4ÄašADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK DECEMBER 11, 1984 PAGE TWO Councilman King asked concerning the possibility of there being any flows or errors in the documents and Resolutions that could harm the City. Mr. Hemer explained that any errors will be caught and corrected before issuance of the bonds and that there is nothing of a nature that would jeopordize the bonds now. COUNCILMAN KING In response Chat blanks in when the Chat time. to Councilman King1s question Mr. Hemer stated for amounts and maturity dates will he filled bonds arc sold and according to the rates at T t was moved and ADOPTING A HOME OF BALDWIN PARK", objections. seconded MORTGAGE M/S/C: to approve Ordinance No. 885, FINANCING PROGRAM FOR THE CITY CIBSON/IZELL. There were no ORDINANCE NO. 885 APPROVED It was moved and seconded ASSIGNING ITS ALLOCATION BONDS TO THE BALDWIN PARK IZELL/GIBSON. There were to approve Resolution No. 84-97, OF QUALIFIED MORTGAGE REVENUE REDEVELOPMENT AGENCY". M/S/C: no objections. RESOLUTION NO. 84-97 APPROVED It was moved and seconded to approve Resolution No. 84-98, APPROVING THE ISSUANCE BY THE BALDWIN PARK REDEVELOPMENT AGENCY OF 1984 SINGLE FAMILY MORTGAGE REVENUE BONDS IN THE PRINCIPAL AMOUNT OF NOT TO EXCEED $7,000,000". M/S: GIBSON/ IZELL. RESOLUTION NO. 84-98 APPROVED ROLL CALL: ROLL CALL AYES: COUNCILMEN GIBSON, IZELL. KING AND MAYOR WHITE NOES: COUNCILMEN NONE ABSTAIN: COUNCILMEN NONE It was moved and seconded to approve Resolution No. 84-99, APPROVING RULES AND REGULATIONS RELATING TO ITS HOME MORTGAGE FINANCING PROGRAM". M/S/C: IZELL/GIBSON. There were no objections. It was moved and seconded to approve Resolution No. 84-100, AUTHORIZING THE ISSUANCE OF NOT TO EXCEED $13,000,000 PRINCIPAL AMOUNT OF 1984 SINGLE FAMILY MORTGAGE REVENUE BONDS, SUCH BONDS TO BE ISSUED PURSUANT TO A TRUST INDENTURE DATED AS OF DECEMBER 1, 1984, AUTHORIZING THE SALH OF SUCH BONDS, SUBJECT TO CERTAIN TERMS AND CONDITIONS, AND AUTHORIZ- ING THE EXECUTION OF AND APPROVING IMPLEMENTING AGREEMENTS, DOCUMENTS AND ACTIONS". M/S/C: GIBSON/IZELL. There were no objections. 00- It was moved and seconded to adjourn the adjourned regular meeting of the City Council at 8:17 a.m. to an adjourned joint meeting of the City Council and Baldwin Park School District Governing Board of Trustees on Monday, December 17, 1984 at 6:30 p.m. at Howard Johnso^s Restaurant. RESOLUTION NO. 84-99 APPROVED RESOLUTION NO. 84-100 APPROVED MEETING ADJOURNED 8:17 A.M. / yA-^^- 7'.^'Z.^ / LINDA L. GAiR, CITY CLKRK BIB] 37655-U01 1984-U02 12-U02 11-U02 CC-U02 MIN-U02 LI1-U03 FO3794-U03 FO9487-U03 DO9495-U03 C4-U03 MINUTES1-U03 2/3/2003-U04 ROBIN-U04 REGULAR-U05 SESSION-U05 CITY-U06 COUNCIL-U06