HomeMy WebLinkAboutAgenda Report - October 21, 1987 (60)u
COUNCIL MEETING
OCTOBER 21, 1987
REQUEST FOR PROPOSAL
FOR FINANCIAL
INSTITUTION SERVICES
CITY OF LODI HOUSING
REHABILITATION PROGRAM
CONTINUED Following Staff's request, Council, on motion of Council
Member Hinchman, Reid second, continued to a future meeting
CC -55 agenda item K-9 - "Approve Request for Proposal for
Financial Institution Services - City of Lodi Housing
Rehabilitation Program".
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TO THE CITY COUNCIL DATE:
FROM: THE CITY MANAGER'S OFFICE October 21, 1987
WaJECT: RFP FINANCIAL INSTITUTION SERVICES
CITY OF LOD! HOUSING REHABILITATION PROGRAM
RECOMMENDED ACTION That the City of Lodi enter into an operating
agreement with Security Pacific National Bank, and
Un4%ted States Escrow for services necessary to implement the City Housing
Rehabilitation Program.
BACKGROUND INFORMATION On August 13, 1987 Request for Proposals were
circulated to eight banks and six savings and loans
associations for providing financial services
associated with the implementation of the City Housing Rehab Program (Refer to
attachment). On an RFP form provided by the City, the Bank of Stockton, Bank of
America, and Security Pacific Bank, submitted responses focusing on the following key_
elements of the housing rehabilitation program:
Loan Packaging
Rehabilitation Construction Management -Funds Disbursement
Loan Collection
Delinquency
Of the institutions that responded, it was 'determined that Security Pacific National
Bank provides the most flexible and comprehensive financial service program, and is,
therefore, best suited to meet the needs of the City's housing rehabilitation program.
Programs available to the City through Security Pacific Bank are as .ollows:
1. Interest Subsidy or Principle, Reduction (credit risk acceptable to bank).
The community as the option to buy own the current annual percentage rate to the
borrower, or make a principle reduction of the amount to be advanced.
2. Compensatory Balance (credit risk acceptable to bank).
The community compensates the lender by depositing a percentage of the amount to be
loaned in a non-interest hearing account, in lieu of the subsidy writedown.
3. Formal Assurance Program (credit risk acceptable to City)
The bank ^Tennds the community's rehab funds on the community's terms for an
organization and servicing fee. Loans are made at the direction of the community,
secured by a Deed of Trust.
4. Deferred Loan Packaging
Preparation of ocuments funded by the community with no immediate repayment
schedule. Deferred loans should be limited and reserved for fixed income participants.
Services associated with funds disbursement and delinquency are not offered by
Security Pacific Bank. However, United States Escrow, Inc., has offered to provide
these services in conjunction with Security Pacific Bank through a separate service
agreement.
4_&WU41_
Rick Barnum
Associate Planner
CCIO;TXiD.01B
RFP MAILING LIST
LODI BATIKS
First Interstate oank of California
Attn: Ron Mettler, Vice President
200 S. School Street
Lodi, CA 95240
Bank of Lodi
Attn: William Freitas, President
701 S. Ham Lane
Lodi, CA 95242
Farmers & Merchants Bank of
Central California
Attn: Harry Schumacher, President
121 W. Pine Street
Lodi, CA 95240
Wells Fargo Bank
Attn: Gerald R. Banghart
Asst. Vice Pres°dent - Manager
120 West Lodi Avenue
Lodi, CA 95240
Bank of America
Attn: Roscoe Brownfield
Vice President - Manager
31 S. School Street
Lodi, CA 95240
Bank of Stockton
Attn: Bob Maus, Vice President - Manager
120 West Walnut
Lodi, CA 95240
Central Sierra Bank
Attn: Roger L., Haley, Vice President - Manager
600 W. Lodi Avenue
Lodi, CA 95240
(Non Lodi Area)
Security Pacific National Bank
Attn: William L. Miller, Assistant Vice President
1754 Technology Drive, Suite 229
San Jose, CA 95110
FILLIN/TXTD.01B
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&name
&ATTN
&ADDR
&CITY
CITICORP SAVINGS
Attn: Jooselyn Craven, Manager
229 S. Church Street
Lodi, CA 95240
Great American First Savings Bank
Attn: Anthony La Pertche, Manager
200 N. Church Street
Lodi, CA 95240 (209)
Gibralter Savings
Attn: Walter Borzich, Manager
116 West Pine Street
Lodi, CA 95240
American Savings & Loan Assn.
Attn: Tamara L. Dayton, Manager
514 W. Kettleman Lane
Lodi, CA 95240
Stockton Savings & Loan Assn
Attn: Rich Shook, Assistant Vice President
Branch Manager
1150 W. Kettleman Lane
Lodi, CA 95240
Guarantee Savings
Attn: Jean Laughlin; Manager
1300 W. Kettleman Lane
Lodi, CA 95242
FILLIN/TXTD.OIB