1996 02 06 FAd_2C'
ffi
OF
a QLinta iinancin? LLtkoFit?
enla
CITY COUNCIL CRAMBER
78495 Calle Tampico
La Quinta, California 92253
Regular Meetin?
February 6, 1996 3:00 P.M.
CALL TO ORDER Beginning Res. No. FA %?l
a Roll Call
CONFI?ON OF AGENDA
APPROVAL OF MINUTES
a. Approval of Minutes of July 18, 1995.
PUBLIC COMMENT
BUSINESS SESSION
1. CONSIDERATION OF AMENDMENT NO.1 TO TRUST AGREEMENT FOR THE LA QUINTA
FINANCING AUTHORITY, LOCAL AGENCY REVENUE BONDS SERIES 1991 CITY HALL
PROJECT).
A) MINUTE ACTION.
CONSENT CALENDAR None
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d_2DEPARTMENT REPORTS None
CHAIR AND BOARD MEMBERS' ITEMS
PUBLIC HEARINGS None
ADJOURNMENT
DECLARATION OF POSTING
I SAUNDRA L JUHOLA Secretary of the La Quinta Financing Authority, do hereby declare that the foregoing
agenda for the La Quinta Financing Authority meeting of February 6, 1996 was posted on the outside entry to the
Council Chanaber 78 495 Calle Tampico and on the bulletin board at the La Quinta Chaniber of Cotiunerce on
Fnday February 2 1996
Da?February2?j9?/
A
La Quinta Financing Authority
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AGENDA CATEGORY:
BUSINESS SESSION:
COUNCIL?DA MEETING DATE:
February 6, 1996 CONSENT CALENDAR:
ITEM TIThE: STUDY SESSION:
PUBLIC HEARING:
Consideration of Amendment No.1 to Trust
Agreement for the La Quinta Financing
Authority, Local Agency Revenue Bonds
Series 1991 City Hall Project)
RECOMMENDATION.
Authorize our bond trustee, First Trust, to contact bondholders of the 1991 City Hall Project and
request their approval of Amendment No.1 to Trust Agreement.
FISCAL IMPACT:
The City would receive $704,717.50 from the debt service reserve fund from our trustee and incur
expenses of $35,236 for the insurance policy from MBTA and $1,500 in related legal and trustee fees
for a total of $36,736.
BACKGROUND AND OVERVIEW:
This amendment would allow for the acceleration of proposed improvements to the Civic Center
complex as identified as Deferred Project DEOl in the Fiscal Year 1995/96 Capital Improvement
Project. This would not be eligible for flinding before July 1,2000 under the current CIP.
when the bonds were issued in 1991, $707,717.50 was set aside in a debt service reserve flind. The
Municipal Bond Jnvestors Assurance Corporation MBIA) has agreed to issue an insurance policy,
in the amount of the debt service reserve fund as substitution for the cash requirement. This is a
standard practice that the City has used in its recent bond financing.
At the time the staff report was written the La Quinta Financing Authority has a verbal commitment
from the MBJA that they will issue such a debt service reserve policy if the bondholders agree. The
actual commitment letter will be furnished for the Council at the February 6, 1996 meeting.
The policy would cost 5% ofthe $704,717.50 debt service reserve or $35,236). Additional legal
and trustee costs have been budgeted at $1,500 for a projected budget outlay of $36,736.
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d_2The attachments consist of the following documents..
A letter from the bondholders on First Trust lefferhead notifying the bond holders of the
proposed change in the indenture Attachment No.
A response letter from the bondholders on First Trust letterhead requesting their consent
Attachment No.2).
The Amendment No. to the Trust Agreement Affachment No.3).
Ml of these documents would be sent to the bondholders.
FINDINGS AND ALTERNATIVES:
Alternatives available to the La Quinta Financing Authority are as follows:
1. Approve the request as presented;
2. Deny the request.
/1 I A
I
\
M. Falconer, Finance Director
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