2011 03 15 FA5
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FINANCING AUTHORITY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
Regular Meeting
TUESDAY, MARCH 15, 2011 — 4:00 P.M.
Beginning Resolution No. FA 2011-001
CALL TO ORDER
Roll Call:
Board Members: Evans, Franklin, Henderson, Sniff, and Chairman Adolph
PUBLIC COMMENT
At this time members of the public may address the Financing Authority on any matter not
listed on the agenda. Please complete a "request to speak" form and limit your comments
to three minutes.
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES
1. APPROVAL OF MINUTES OF FEBRUARY 15. 2011
CONSENT CALENDAR
NOTE: Consent Calendar items are considered to be routine in nature and will be approved
by one motion.
1 . RECEIVE AND FILE TREASURER'S REPORT DATED JANUARY 31. 2011
Financing Authority Agenda 1 MARCH 15, 2011
2. RECEIVE AND FILE REVENUE & EXPENDITURES REPORT DATED JANUARY
31, 2011
3. ADOPTION OF A RESOLUTION AMENDING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2010-2011
BUSINESS SESSION — NONE
CHAIR AND BOARD MEMBERS' ITEMS — NONE
PUBLIC HEARINGS
For all Public Hearings on the agenda, a completed "request to speak" form must be filed
with the City Clerk prior to consideration of that item.
1. JOINT PUBLIC HEARING AMONG THE CITY COUNCIL OF THE CITY OF LA
QUINTA, THE LA QUINTA REDEVELOPMENT AGENCY AND THE LA
QUINTA FINANCING AUTHORITY TO CONSIDER RESOLUTIONS
REGARDING THE ISSUANCE OF REDEVELOPMENT PROJECT AREAS 1 AND
2 TAXABLE BONDS AND RELATED DOCUMENTS
A. RESOLUTION ACTION
ADJOURNMENT
The next regular meeting of the Financing Authority will be held on April 19, 2011
at 4:00 p.m, in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA
92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Financing Authority meeting of March 15,
2011, was posted on the outside entry to the Council Chamber at 78-495 Calle
Tampico and on the bulletin boards at 51-321 Avenida Bermudas and 78-630
Highway 111, on M4.4,<kit boll
DATED: 03 • Il � ZOI(
5 A41 N+ Xd l.04 4'
VERONICA J. IMNTECINO, City Clerk
City of La Quinta, California
Financing Authority Agenda 2 MARCH 15, 2011
Public Notice
Any writings or documents provided to a majority of the Financing Authority regarding any
item on this agenda will be made available for public inspection at the City Clerk counter at
City Hall located at 75-495 Calle Tampico, La Quinta, California, 92253, during normal
business hours.
Financing Authority Agenda 3 MARCH 15, 2011
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COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Receive and File Treasurer's Report
as of January 31, 2011
RECOMMENDATION:
It is recommended the La Quinta Financing Authority:
Receive and file.
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
PLEASE SEE RELATED BUSINESS SESSION ITEM ON CITY COUNCIL AGENDA
Wdtt 4 40 Quiftraj
COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Receive and File Revenue and Expenditure
Report for January 31, 2011
RECOMMENDATION:
Receive and File
BACKGROUND AND OVERVIEW:
AGENDA CATEGORY:
BUSINESS SESSION: _
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Receive and File the January 31, 2011 Statement of Revenue and Expenditures for
the La Quinta Financing Authority.
yResectfully submitted,
M. Falconer, Finance Director
Approved for Submission by:
rllLs�
Thomas P. Genovese, Executive Director
Attachment: 1. Revenue and Expenditures Report, January 31, 2011
LA OUINTA FINANCING AUTHORITY
REVENUE DETAIL
07/01/2010 - 0113112011
ADJUSTED
BUDGET RECEIVED
ATTACHMENT 1
REMAINING %
BUDGET RECEIVED
DEBT SERVICE REVENUE:
Contractual Services Fees
Non Allocated Interest
Rental Income
Transfer In
TOTAL DEBT SERVICE
CAPITAL IMPROVEMENT REVENUE:
Pooled Cash Allocated Interest
Non Allocated Interest
TOTAL CIP REVENUE
TOTAL FINANCING AUTHORITY
15,800.00
6,807.00
8,993.00
43.080%
0.00
0.00
0.00
0.000%
672,525.00
552,090.00
120,435.00
82.090%
5,915,131.00
3,844,965.63
2,070,165.37
65.000%
6,603,456.00
4,403,862.63
2,199,593.37
66.690%
0.00 0.00 0.00 0.000%
0.00 0.00 0.00 0.000%
0.00 0.00 0.00 0.000%
6,603,456.00 4,403,862.63 2,199,593.37 66.690%
%PA
LA DUINTA FINANCING AUTHORITY
EXPENDITURE SUMMARY
ADJUSTED 1 01/31/11 REMAINING
BUDGET EXPENDITURES ENCUMBERED BUDGET
DEBT SERVICE EXPENDITURES
SERVICES
BOND PRINCIPAL - 1996
BOND PRINCIPAL - 2004
BOND INTEREST - 1996
BOND INTEREST -20N
TRANSFER OUT
CAPITAL IMPROVEMENT EXPENDITURES
BOND ISSUANCE COSTS
TRANSFER OUT
12,800.00
8,557.00
0.00
4, 243.00
420,000A0
420,000.00
0.00
0.00
1,740,000.W
1,740,000.00
0.00
0.00
252,525.00
132,090.00
000
120,435A0
4,175,131.00
2.104,965,63
0 W
2,070,165.37
000
0.00
0,00
0,00
TOTAL DEBT SERVICE 6,600,456 00
4,42.194,843,3/
0,00 0,00 000 0.00
0.00 0,00 0.00 000
TOTAL CAPITAL IMPROVEMENT
TOTAL FINANCING AUTHORITY
3
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COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: Adoption of a Resolution Amending the
Investment Policy of the City of La Quinta for Fiscal
Year 2010-201 1
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the City council amending the Investment Policy for the La
Quinta Financing Authority for Fiscal Year 2010-2011.
PLEASE SEE CONSENT CALENDAR ITEM ON CITY COUNCIL AGENDA
RESOLUTION NO. FA 2011-
A RESOLUTION OF THE LA QUINTA FINANCING
AUTHORITY AMENDING THE CITY OF LA QUINTA
INVESTMENT POLICY FOR FISCAL YEAR 2010-2011
WHEREAS, policies were adopted by the La Quinta Financing Authority in
Resolution No. 2010-001 on June 15, 2010; and
WHEREAS, the general purpose of the Investment Policy is to provide the rules
and standards users must follow in investing funds of the City of La Quinta; and
WHEREAS, the primary objectives, in order of priority, of the City of La Quinta's
investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that seeks
to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or iy eld throughout budgetary and economic cycles, taking
into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio is
derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement written
procedures for the operation of the City's investment program consistent with the
Investment Policy for Fiscal Year 2010-2011; and
WHEREAS, the Investment Policy may be amended from time to time as
considered necessary.
NOW, THEREFORE, BE IT RESOLVED by the La Quinta Financing Authority to
adopt the amendments to the Fiscal Year 2010-2011 Investment Policy (Exhibit A).
Resolution No. FA 2011-
Amendment to the Investment Policy
Adopted: March 15, 2011
Page 2 of 3
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Financing Authority, held on this 15th day of March, 2011 by the following vote, to
wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
DON ADOLPH, Chairman
La Quinta Financing Authority
ATTEST:
VERONICA J. MONTECINO, CMC, Secretary
La Quinta Financing Authority
(SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Authority Counsel
La Quinta Financing Authority
EXHIBIT A
Amended Language — in Strike out and bold
Section V
Annually, the Treasurer shall project the amount of funds not expected to be
disbursed within five ten years. For FY 2010/201 1, the amount of such
funds is projected to be $4 $30 million. Funds up to that amount may be
invested in U.S. Treasury bills, notes and bonds, Local Agency Obligations,
and California Local Agency Obligations maturing between 3 and b 10 years.
For all other funds, investments are limited to three years maximum maturity,
with no more than 25% of surplus funds invested in maturities exceeding
two years and less than three years
Section X and Appendix A
X PERMISSIBLE DEPOSITS AND INVESTMENTS
California Local Agency Obligations as an Investment
Permissible deposits and investments are summarized below. A more
comprehensive list is included in Appendix A.
Permissible Investments and
Limitations
Maximum
Maximum
Restrictions
(See Appendix A for Additional
Allocation
Maturity
Information)
Checking & Savings Accounts FDIC Insured & Sweep
o
85 /o Portfolio
Current /
Sweep Account:
U.S. Treasuries
Accounts
On Demand
and/or GSE's
<= $250,000,
Certificates of Deposit
60% Portfolio
3 Years
including interest
per institution
U.S. Treasury Bills, Notes and Bonds, and
4-$4'0000;000
<=$30,0000,000
Government National Mortgage Association (GNMA)
100% Portfolio
S 10Years
maturing 3.610
Securities
Yrs
<40000,000
<=$30,0000,000
Local Agency Bonds/California Local Agency
30% Portfolio
Wears
maturing 3-6 10
Yrs
Obligations
Long termA, A
A- or better
Permissible Investments and
Limitations
Maximum
Maximum
Restrictions
(See Appendix A for Additional
Allocation
Maturity
Information)
U.S. Government Agency Securities and Federal
Government Securities
(except collateralized mortgage obligations (CMO's) or
structured notes which contain embedded rate options):
- Federal National Mortgage Association (FNMA)
$20,000,000
3 Years
- Federal Home Loan Bank Notes & Bonds (FHLB)
$25,000,000
3 Years
- Federal Farm Credit Bank (FFCB)
$30,000,000
3 Years
- Federal Home Loan Mortgage Corporation (FHLMC)
$20,000,000
3 years
Prime Commercial Paper including Temporary Liquidity
15% Portfolio
90 Days
$5,000,000 per
Guarantee Program (TLGP)
issuer maximum.
Local Agency Investment Fund (LAIF)
30% Portfolio
Current /
On Demand
$40 million
per account.
Money market mutual funds regulated by the SEC that
Current /
Maintain $1 per
consist only of US Treasury Securities or GSE's and
o
20 /o Portfolio
On Demand
share par value
maintain a par value of $1 per share
$5,000,000 max
Corporate Notes
10%
3 Years
per issuer AA rated
or better
Corporate Notes -Temporary Liquidity Guarantee
n
20%
3 Years
$10,000,000 max
per issuer, AA
Program (TLGP)
rated or better.
Requires
Professionally Managed Account
10%
3 Years
City Council -
Approved RFP
Long -Term Scale
S&P AAA, AA +, AA, AA-, A +, A
Moody's Aaa, Aa 1, Aa2, Aa3, A 1, A2
Fitch AAA, AA+, AA, AA-, A+, A
Appendix A
Unauthorized Investments
The City Treasurer will not be permitted to invest in the following types of investments
(see Footnote 2 and "State Code Permitted Deposits And Investments Not Authorized
By The City's Investment Policy", below).
- Repurchase Agreements
- Bankers Acceptances
- Negotiable Certificates of Deposit
- Mutual Funds other than money market mutual funds
- Preferred and Common Stock
- State and lea: Government Indebtedness
- Asset Backed Securities
- Reverse Repurchase Agreements
- Derivatives
The above list of unauthorized deposits and investments is not meant to be all-inclusive.
Only those deposits and investments listed in the "Permissible Deposits and Investments"
section of the Policy are permissible.
3. U.S. Treasury Bills, Notes, and Bonds and Government National Mortgage
Associations (GNMA) securities - The City may invest in U.S. Treasury bills,
notes, and bonds, and GNMA securities directly issued and backed by the
full faith and credit of the U.S. Government. The City's Investment Policy
limits investments in U.S. Treasury issues and GNMA's to 100% of the
portfolio.
The City's Investment Policy does not allow investments in lesal and state
indebtedness
New Section
10. Local Agency Bonds and California Local Agency Obligations - The City
may invest in California local agency obligations pursuant to 56301(a) and
53601 (e). 53601 (a) pertains to investing in bonds issued by a local agency,
department, board, agency or authority of the local agency. 53601 (e)
pertains to investing in bonds and other defined indebtedness of a local
agency or department, board, agency or authority of the local agency within
the State of California.
The City's Investment Policy limits investments in Local Agency Bonds and
California Local Agency obligations to 30% of the portfolio with up to a ten
year maximum maturity. In addition, The Agency obligations must be
invested in the long term rating of A, A2, A or better by S&P, Moody's or
Fitch is met.
In the case of an initial public offering, including refinancings, the Treasurer
may purchase directly from the Bond Underwriter. If the case of secondary
issues, the Treasurer will rely of the approved Broker/Dealers.
F s D
V -
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COUNCIL/RDA MEETING DATE: March 15, 2011
ITEM TITLE: A Joint Public Hearing Among the City
Council of the City of La Quinta, the La Quinta
Redevelopment Agency and the La Quinta Financing
Authority to Consider Resolutions Regarding the
Issuance of Redevelopment Project Areas 1 and 2
Taxable Bonds and Related Documents
RECOMMENDATION:
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
1. Open the Joint Public Hearing of the City Council, Redevelopment Agency and
the Financing Authority, receive a staff presentation, and public testimony both
for and against, the approval of the recommended Resolutions;
2. Close the Joint Public Hearing after all testimony has been presented; and
3. Adopt the recommended Resolutions.
FISCAL IMPLICATIONS:
The Agency will receive approximately:
$27,830,000 in Bond proceeds to use for non -housing projects in Project Area
No. 1, net of bond reserve funds and issuance costs;
$4,275,000 in Bond proceeds to use for non -housing projects in Project Area No.
2, net of bond reserve funds and issuance costs;
$11,000,000 in Bond proceeds to use for low and moderate income housing in
both Project Areas, net of bond reserves and issuance costs; and
An additional $25,370,000 in Loan proceeds to use for low and moderate income
housing in both Project Areas, net of bond reserves and issuance costs.
CHARTER CITY IMPLICATIONS:
None.
BACKGROUND AND OVERVIEW:
In order to fund its projects and programs, the Agency has issued tax allocation bonds
from time to time secured by tax increment revenue of the La Quinta Redevelopment
Project Area No. 1 and La Quinta Redevelopment Project Area No. 2. Because its
ability to issue debt in the future may soon be limited or prohibited altogether by the
State Legislature, the Agency proposes to access its available bonding capacity by
issuing bonds at this time for economic development, low- and moderate -income
housing and capital projects.
The Bonds are proposed to be issued on a taxable basis. Although taxable interest
rates are higher than traditional tax-exempt rates, there are very few restrictions on the
types of expenditures that may be made with taxable bonds. In particular, unspent
taxable bond proceeds may be used to pay future Supplemental Educational Revenue
Augmentation Fund (SERAF) payments, pay for Agency administration costs and other
non -capital expenditures.
Staff and the other finance team members have discussed a Financial Plan for the
Agency that demonstrates that there will be remaining revenue available after meeting
all existing obligations to sufficiently pay debt service on the bonds to be issued. The
Financial Plan assumes no additional SERAF payments after Fiscal Year 2010-2011,
but there is a certain amount of available funds each year to deal with such an event,
if it were to occur.
Staff is recommending a negotiated sale of the bonds to one underwriter based on
current market conditions. A negotiated sale allows the underwriter to pre -market the
bonds to their investors, which reduces their risk of holding a large balance of
inventory in the bonds. This allows the underwriter to offer lower rates for the
Agency. Further, the market for taxable bonds is now mainly composed of investors
who are new to the municipal market, have questions about the State budget, and
need more time to analyze municipal credits, which reinforces the need to select one
underwriter who can work with such investors and obtain the lowest interest rates
possible.
Based on current market conditions and the Agency's previous credit ratings, the
underwriter expects the average interest rate on the taxable bonds to be 8.50%.
Because the market expects a significant amount of tax allocation bonds to be sold in
the next 60 days, (20 tax allocation financings sold in the past seven days) interest
rates could increase between now and the sale date due to supply versus demand
market issues.
Staff expects ratings to be received and bonds to be sold in approximately three
weeks. The all inclusive costs of issuing the bonds are not expected to exceed 1 '/2 %.
The attached resolutions provide for the following:
• Approves the issuance of a loan between the La Quinta Financing Authority and the
La Quinta Redevelopment Agency;
• Approves the Preliminary Official Statement for each of the four financings;
• Approves the Bond Purchase Contract for each of the four financings;
• Authorizes the Executive Director to establish the final terms of each of the four
financings;
• Appoints U.S. Bank National Association as trustee for each of the four financings;
• Provides for a Continuing Disclosure Agreement for each of the four financings;
• Pledges Project No. 1 and No. 2 tax increment revenue to service each financing's
principal and interest costs;
• Authorizes the officers of the Agency and members of the Governing Body to take
such actions and execute documents necessary to facilitate each of the four
financings; and
• Finds that the financings will provide significant public benefit.
Please note that due to the number and length of the documents involved in these
bond issue financings these documents are available in the City Clerk's office for
review.
FINDINGS AND ALTERNATIVES:
The alternatives available to the City Council, the La Quinta Redevelopment Agency
and the La Quinta Finance Authority include:
1. Approve the followings resolutions, subject to final approval by the Executive
Director, regarding the Issuance of Redevelopment Project Areas 1 and 2 Taxable
Bonds and Related Documents listed as follows:
City Resolutions
• A Resolution of the City Council Of The City Of La Quinta, California Approving
the Issuance by the La Quinta Redevelopment Agency of its La Quinta
Redevelopment Project Area No. 1, Taxable Tax Allocation Bonds, Series 2011
and Making Certain Determinations Relating Thereto;
• A Resolution of The City Council of The City Of La Quinta, California, Approving
the Issuance By The La Quinta Redevelopment Agency of its La Quinta
Redevelopment Project Area No. 2 Taxable Tax Allocation Bonds, Series 2011
and Making Certain Determinations Relating Thereto; and
• A Resolution of the City Council of the City of La Quinta, California, Approving
the Issuance by the La Quinta Redevelopment Agency of its La Quinta
Redevelopment Project Areas, Taxable Tax Allocation Housing Bonds, Series
2011 and Making Certain Determinations Relating Thereto; and
A Resolution of the City Council of the City of La Quinta, California, Approving
a Loan between the La Quinta Redevelopment Agency and the La Quinta
Financing Authority.
Aoencv Resolutions
• A Resolution of the Board Of Directors of the La Quinta Redevelopment Agency
Authorizing the Issuance of Taxable Tax Allocation Bonds of Said Agency in a
Principal Amount of not to exceed Thirty -Three Million Dollars ($33,000,000) to
Finance a Portion of the Costs of a Redevelopment Project Known as the La
Quinta Redevelopment Project Area No. 1 and Approving Certain Documents
and Taking Certain Other Actions in Connection Therewith;
A Resolution of the Board of Directors of the La Quinta Redevelopment Agency
Authorizing the Issuance of Taxable Tax Allocation Bonds of Said Agency in a
Principal Amount of not to exceed Six Million Dollars ($6,000,000) to Finance a
Portion of the Costs of a Redevelopment Project Known as the La Quinta
Redevelopment Project Area No. 2 and Approving Certain Documents and
Taking Certain Other Actions in Connection Therewith;
• A Resolution of the Board of Directors of the La Quinta Redevelopment Agency
Authorizing the Issuance of Taxable Tax Allocation Housing Bonds of Said
Agency in a Principal Amount of not to exceed Twelve Million Dollars
($12,500,000) to Finance a Portion of the Low And Moderate Housing Costs of
Redevelopment Projects and Approving Certain Documents and Taking Certain
Other Actions in Connection Therewith; and
A Resolution of the La Quinta Redevelopment Agency of the City of La Quinta,
California Approving its Second Supplemental Loan Agreement, Official
Statement, Purchase Contract, Authorizing the Executive Director to Set the
Final Terms of the Approval of the Agency Loan, Approving The Payment of
Costs of Issuing the Agency Loan and Making Certain Determinations Relating
Thereto.
Authority Resolutions
A Resolution of the La Quinta Financing Authority of the City of La Quinta,
California Authorizing the Issuance of Local Agency Taxable Revenue Bonds,
2011 Series A, in an Aggregate Principal Amount not to exceed Twenty -Eight
Million Eight Hundred and Fifty Thousand Dollars ($28,850,000) Approving the
Execution of an Indenture of Trust, Second Supplemental Loan Agreement,
Purchase Contract, Official Statement and Providing Other Matters Properly
Related Thereto.
2. Do not approve the above listed resolutions regarding the Issuance of
Redevelopment Project Areas 1 and 2 Taxable Bonds and Related Documents; or
3. Provide Staff with alternative direction.
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
6
Thomas P. Genovese, Executive Director
RESOLUTION NO. FA 2011 -
A RESOLUTION OF THE LA QUINTA FINANCING
AUTHORITY OF THE CITY OF LA QUINTA, CALIFORNIA
AUTHORIZING THE ISSUANCE OF LOCAL AGENCY
TAXABLE REVENUE BONDS, 2011 SERIES A, IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
TWENTY - EIGHT MILLION EIGHT HUNDRED FIFTY
THOUSAND DOLLARS ($28,850,000), APPROVING THE
EXECUTION OF AN INDENTURE OF TRUST, SECOND
SUPPLEMENTAL LOAN AGREEMENT, PURCHASE
CONTRACT, OFFICIAL STATEMENT AND PROVIDING
OTHER MATTERS PROPERLY RELATING THERETO
WHEREAS, the City of La Quinta (the "City") and the La Quinta
Redevelopment Agency (the "Agency") have heretofore entered into a Joint
Exercise of Powers Agreement establishing the La Quinta Public Financing
Authority (the "Authority") for the purpose of issuing its bonds to be used to
provide financing for capital improvements of the City and the Agency, and any
other member entities which may be approved by the City and the Agency as
members of the Authority; and
WHEREAS, the Authority proposes for such purpose to authorize issuance of
bonds pursuant to an Indenture of Trust (the "Indenture"), dated as of March 1,
2011, by and between the Authority and U.S. Bank National Association, Los
Angeles, California (the "Trustee") in the maximum principal amount not to exceed
$28,850,000 Local Agency Taxable Revenue Bonds, 2011 Series A Bonds (the
"Series A Bonds"); and
WHEREAS, the Bonds are to be issued pursuant to the Marks -Roos Local
Bond Pooling Act of 1985 (the "Act"), constituting Article 4 (commencing with
Section 6584) of Chapter 5 of Division 7 of Title 1 of the Government Code of the
State of California; and
WHEREAS, the Authority proposes to sell the Series A Bonds at a negotiated
sale to Wedbush Securities, Inc. (the "Underwriter") pursuant to a Bond Purchase
Agreement, (the "Purchase Contract"); and
WHEREAS, the Underwriter has caused to be prepared Official Statement
describing the Series A Bonds (the forms of which are on file with the Secretary);
and
WHEREAS, the Authority intends to use proceeds from the Series A Bonds
to make a loan to the Agency (the "Loan") pursuant to a Loan Agreement (the
"Loan Agreement") to finance certain low and moderate income housing projects
124/015610-0122
115300.02 a03/09/1I
Resolution No. FA 2011,
FA Authorizing the Issuance of Local Agency
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 2
(the "Project"); and a Second Supplemental Loan Agreement (the "Supplemental
Loan Agreement"); and
WHEREAS, the Board of Directors of the Authority, with the aid of its Staff,
has reviewed the form of the Indenture, dated as of March 1, 2011, the Loan
Agreement, dated as of February 3, 2004, the Second Supplemental Loan
Agreement, dated as of March 1, 2011, and the Continuing Disclosure Agreement,
dated as of March 1, 2011 (collectively, the "Financing Documents");
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the La
Quinta Financing Authority of the City of La Quinta, California as follows:
SECTION 1. Recitals True and Correct. Each of the recitals stated above is true
and correct.
SECTION 2. Findings and Determinations. Pursuant to the Act, the Board hereby
finds and determines that the issuance of the Series A Bonds will result in savings
in effective interest rates, bond underwriting and bond issuance costs, will result in
significant employment benefits from timely completion of the Project, and will
cause the more efficient delivery of local agency services to residential and
commercial development and thereby results in significant public benefits to the
City and the Agency within the contemplation of Sections 6586(a), (c), and (d) of
the Act.
SECTION 3. Issuance of Series A Bonds. The Board hereby authorizes the
issuance of the Series A Bonds in the aggregate principal amounts not to exceed
$28,850,000 under the authority of the Act and the Indenture, in substantially the
form on file with the Secretary, together with any changes therein or additions
thereto deemed advisable by the Executive Director or Assistant Executive Director
or Treasurer, whose execution thereof shall be conclusive evidence of his consent
to such changes or additions.
SECTION 4. Execution of Series A Bonds. The Series A Bonds shall be executed
on behalf of the Authority by the manual or facsimile signature of the Chairman or
Executive Director or Assistant Executive Director or Treasurer of the Authority.
SECTION 5. Official Statement. The Authority approves distribution of the
Preliminary Official Statement by the Underwriter in connection with the sale of the
Series A Bonds, and the Executive Director or Assistant Executive Director or
Treasurer of the Authority are authorized to deem each of the Preliminary Official
Statement "final," pursuant to Rule 15c2-12 under the Securities Exchange Act of
1934 (the "Rule"). The form of the final Official Statement shall include such
124/015610-0122
1153017.02 a03/09/11
Resolution No. FA 2011-
FA Authorizing the Issuance of Local Agency
Taxable Revenue Bonds
Adopted: March 15, 2011
Page 3
information permitted to be excluded from the Preliminary Official Statement
pursuant to the Rule. The Board hereby approves and authorizes the distribution of
the final Official Statement by the Underwriter. The Executive Director or Assistant
Executive Director or Treasurer is hereby authorized and directed to approve any
changes in or additions to the final forms of said Official Statement, whose
execution thereof shall be conclusive evidence of approval of any such changes
and additions. The final Official Statement shall be executed in the name and on
behalf of the Authority by the Executive Director or Assistant Executive Director or
Treasurer, who are hereby authorized and directed to execute the final Official
Statement on behalf of the Authority.
SECTION 6. Executive Director Authorized to Establish Final terms of the Sale of
the Series A Bonds. The Executive Director, based on such advice of Staff as he
may deem necessary, is hereby authorized and directed to act on behalf of the
Authority to establish and determine (i) the final principal amount of the Series A
Bonds, which shall not exceed $28,850,000 (ii) the final amounts of the various
maturities and sinking fund payments of the Series A bonds, (iii) the final interest
rates on the Series A Bonds, which rates shall not exceed ten percent (10%) per
annum for any maturity of the Series A Bonds, (iv) the Underwriter's discount for
the purchase of the Series A Bonds, which shall not exceed one percent (1 %) of
the principal amount of the Series A Bonds.
SECTION 7. Appointment of Trustee and Escrow Agent. U.S. Bank, National
Association, Los Angeles, California, is hereby appointed as trustee for the Series A
Bonds under the Indenture and Fiscal Agent pursuant to the Documents, as defined
below.
SECTION 8. Purchase Contract. The proposed form of Purchase Contract by and
between the Authority and the Underwriter, on file with the Secretary of the
Governing Board and incorporated into this Resolution by reference is hereby
approved, provided however, (i) the principal amount of the Bonds does not exceed
$28,850,000, preliminary, subject to market conditions; and (ii) the Underwriter's
discount, exclusive of original issue discount, does not exceed 1 % preliminary,
subject to market conditions, of the principal amount of the Bonds. The Chairman
or Executive Director or Assistant Executive Director or Treasurer is hereby
authorized and directed, for and in the name and on behalf of the Authority, to
purchase the Bonds from the Authority and to accept the offer of the Underwriter
to purchase Bonds from the Authority, subject to the terms and conditions of the
Purchase Contract, and to execute and deliver the Purchase Contract in
substantially said form, with such changes or additions thereto that may hereafter
become necessary in the interests of the Authority and which are reviewed and
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approved by counsel to the Authority, any such additions or changes to be
conclusively evidenced by the execution and delivery of said agreements.
SECTION 9. Filing of CDAC Notice. The Authority hereby approves the filing by
the Rutan & Tucker, LLP ("Bond Counsel") of a notice of the Authority's intent to
sell the Bonds with the California Debt Advisory Commission pursuant to Section
8855 of the California Government Code.
SECTION 10. Approval of Loans. The Authority hereby authorizes and approves
the Loan to be made to the Authority by the Agency from the proceeds of the
Bonds. The Loan shall be made pursuant to and in accordance with the terms of
the Loan Agreement and the Second Supplemental Loan Agreement (collectively,
the "Loan Documents"). The Authority hereby approves the Loan Documents in
substantially the forms on file with the Secretary together with any additions
thereto or changes therein (including but not limited to the principal amount of the
Loan) deemed necessary or advisable by the Executive Director or Assistant
Executive Director or Treasurer whose execution thereof shall be conclusive
evidence of approval of any such additions and changes. The Chairperson or
Executive Director or Assistant Executive Director or Treasurer is hereby authorized
and directed to execute, and the Secretary is hereby authorized and directed to
attest and affix the seal of the Agency to the final form of the Loan Documents or
and in the name and on behalf of the Authority. The proceeds of the Loans shall
be applied by the Agency for the purposes and in the amounts set forth in the Loan
Documents. The Authority hereby authorizes the delivery and performance of the
Loan Documents.
SECTION 11. Approval of Financing Documents. The Financing Documents
substantially in the form on file with the Secretary, with such additions thereto and
changes therein as are recommended or approved by Bond Counsel and the officers
executing the same, with such approval to be conclusively evidenced by their
execution and delivery are hereby approved. The Chairperson, the Executive
Director, the Assistant Executive Director, the Treasurer, the Secretary, or their
designees are hereby authorized and directed to execute and deliver the Financing
Documents.
SECTION 12. Delivery of the Bonds. The Bonds shall be delivered to the
Underwriter upon compliance with the terms and conditions set forth in the
Purchase Contract. The Chairperson, the Executive Director, the Assistant
Executive Director, the Treasurer, the Secretary and other proper officers of the
Authority are hereby authorized and directed to deliver any and all documents and
instruments, to authorize the payment of Costs of Issuance and to do and cause to
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be done any and all acts and things necessary or convenient for delivery of the
Bonds to the Purchaser.
SECTION 13. Official Action. The Chairman, the Vice Chairman, the Executive
Director, the Assistant Executive Director, the Treasurer, the General Counsel and
any and all other officers of the Authority are hereby authorized and directed, for
and in the name and on behalf of the Authority, to do any and all things and take
any and all actions, including execution and delivery of any and all assignments,
certificates, requisitions, including, without limitation, requisitions for the payment
of costs of issuance of the Series A Bonds, agreements, notices, consents, bond
insurance premiums or rating agency fees, instruments of conveyance, warrants
and other documents which they, or any of them, may deem necessary by the
Bond Counsel or advisable in order to consummate lawful issuance, sale and
delivery of the Series A Bonds. Any action authorized by this resolution to be
taken by a specific officer of the Authority may be taken on such officer's behalf
by the written designee of such officer.
SECTION 14. Bond Counsel. Rutan & Tucker, LLP is hereby appointed Bond
Counsel for the Series A Bonds.
SECTION 15. Effective Date. This resolution shall take effect from and after its
passage and adoption.
PASSED, ADOPTED and APPROVED at a regular meeting of the La Quinta
Financing Authority held on this 15th day of March, 2011, by the following vote to
wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
LINDA EVANS, Chairperson,
La Quinta Financing Authority
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ATTEST:
Veronica J. Montecino, Authority Secretary
La Quinta Financing Authority
(City Seal)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Authority Counsel
La Quinta Financing Authority
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SECRETARY'S CERTIFICATE
RE: ADOPTION OF RESOLUTION
STATE OF CALIFORNIA 1
)ss.
COUNTY OF RIVERSIDE
I, Veronica J. Montecino, Secretary of the La Quinta Financing Authority, DO
HEREBY CERTIFY that the foregoing Resolution was duly adopted by said Agency
at a regular meeting of said Agency held on the 15th day of March, 2011 .
AYES:
NOES:
ABSENT:
ABSTAIN:
Veronica J. Montecino, Authority Secretary
La Quinta Financing Authority
(SEAL)
STATE OF CALIFORNIA )
1ss.
COUNTY OF RIVERSIDE
I, Veronica J. Montecino, Secretary of the La Quinta Financing Authority, DO
HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of
Resolution No. RA of said Agency and that said Resolution was adopted at
the time and by the vote stated on the above certificate, and has not been
amended or repealed.
Dated: , 2011
(SEAL)
Veronica Montecino, Authority Secretary
La Quinta Financing Authority
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