Loading...
2013 06 04 FA FINANCING AUTHORITY AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta SPECIAL MEETING ON TUESDAY, JUNE 4, 2013 AT 4:00 P.M. ROLL CALL: Authority Members: Evans, Franklin, Henderson, Osborne, Chairperson Adolph PUBLIC COMMENT At this time, members of the public may address the Financing Authority on any matter not listed on the agenda. Okd`rd?bnlokdsd?`?!qdptdrs?sn?rod`j!?enql?`mc?khlhs?xntq?bnlldmsr? sn?sgqdd?lhmtsdr- The Financing Authority values your comments; however in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by GC 54954.2(b). CONFIRMATION OF AGENDA APPROVAL OF MINUTES 1.MINUTES OF MAY 21, 2013 CONSENT CALENDAR - NONE BUSINESS SESSION 1.RESOLUTION OF THE LA QUINTA FINANCING AUTHORITY AUTHORIZING THE EXECUTION OF THE ESCROW AGREEMENT \[RESOLUTION FA 2013- 001\] CHAIR AND BOARD MEMBERS' ITEMS NONE PUBLIC HEARINGS NONE ADJOURNMENT FINANCING AUTHORITY AGENDA 1 JUNE 4, 2013 SPECIAL MEETING ***************************************** The next regular meeting of the Financing Authority will be held on June 18, 2013 at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253. DECLARATION OF POSTING I, Susan Maysels, Authority Secretary of the La Quinta Financing Authority, do hereby declare that the foregoing agenda for the La Quinta Financing Authority meeting was posted near the entrance to the Council Chambers at 78-495 Calle Tampico and on the bulletin boards at the La Quinta Cove Post Office at 51-321 Avenida Bermudas and at the Stater Brothers Supermarket 78-630 Highway 111, on May 31, 2013. DATED: May 31, 2013 SUSAN MAYSELS, Authority Secretary La Quinta Financing Authority Public Notices 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 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. FINANCING AUTHORITY AGENDA 2 JUNE 4, 2013 SPECIAL MEETING FINANCING AUTHORITY MINUTES TUESDAY, MAY 21, 2013 A regular meeting of the La Quinta Financing Authority was called to order at 8:55 p.m. by Chairperson Adolph. PRESENT: Authority Members Evans, Franklin, Henderson, Osborne, Chair Adolph ABSENT: None PUBLIC COMMENT None CONFIRMATION OF AGENDA Confirmed APPROVAL OF MINUTES MOTION A motion was made and seconded by Authority Members Franklin/ Henderson to approve the minutes of April 16, 2013 as submitted. Motion passed unanimously. CONSENT CALENDAR 1. 2. REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2013 MOTION A motion was made and seconded by Authority Members Henderson/ Franklin to approve the Consent Calendar as recommended. Motion passed unanimously. BUSINESS SESSION None STUDY SESSION 1. PRELIMINARY FISCAL YEAR 2013/2014 BUDGET Authority Members waived the staff report presentation because this was covered in the presentation and discussion held during the Council meeting. CHAIR AND BOARD MEMBERS' ITEMS None PUBLIC HEARINGS None ADJOURNMENT There being no further business, it was moved by Authority Members Henderson/ Evans to adjourn at 8:55 p.m. Motion passed unanimously. Respectfully submitted, SUSAN MAYSELS, Authority Secretary FINANCING AUTHORITY MINUTES 1 MAY 21, 2013 AGGENDA CATTEGORY: June 44, 2013 CITY / SA/ HA / FA MMEETING DATTE: BUUSINESS SESSSION: 2 RESOLUTION OF THE LA QQUINTA ITEM TITLLE: COONSENT CALENDAR: FINANCING AUTHOORITY AUTTHORIZINGG THE EXECUTION OF THHE ESCROWW AGREEMMENT STTUDY SESSION: PUUBLIC HEARIING: RECOMMENDED AACTION: Adopt RResolution authorizingg the execuution of the escrow aagreement relating too the refundinng of the 22004 Housiing Bonds. EXECUTTIVE SUMMMARY: TThe former La Quinta Redeveloopment Aggency (RDDA) issued tax allocaation bonds in oorder to aadvance fuund public facility, infrastructure, econoomic developmennt and affoordable hoousing initiatives. WWhile the RRDA no loonger exists, the Successoor Agency is responnsible to fund bondd debt service payments uuntil all bonnds are reppaid (the final paymeent for the current boonds occurs in 20034). TThe currentt low intereest rate ennvironment affords thhe Successsor Agencyy the opportunity to refinannce $197,575,000 oof the formmdq?QC@┴ss 1998, 20001, 22002, 2003 and 20004 bonds. The resulting interest cost savings wwould reeduce annuual debt seervice by $1,200,0000. The proojected total cost savvings wwould be $22,000,0000 over thee next 20 yyears. Thee bond payyment datee and fiinal maturitty date (20034) will sstay the saame; the ouutstanding bond principal amount willl be reduceed by approoximately $$5 million. TThe school districts, CCounty, Citty and otheer taxing agencies would beneffit by reeceiving thhe propertyy tax revenue that wwould otheerwise be used for bbond debt servicee. Refinancing these bonds at one time reduces issuance costs, which also increases the property tax revenue distributed to the taxing agencies. Please see the Council report on this same matter. It is agenda item Business 2. Report prepared by: Amy McCormick, Business Analyst Report approved for submission by: Frank Spevacek, Executive Director RESOLUTION NO. FA 2013 - A RESOLUTION OF THE LA QUINTA FINANCING AUTHORITY AUTHORIZING THE EXECUTION OF THE ESCROW AGREEMENT WHEREAS, the La Quinta Redevelopment Agenbx?'sgd?═Oqhnq?@fdmbx║(?v`r?`? public body, corporate and politic, duly created, established and authorized to transact business and exercise its powers under and pursuant to the provisions of the Community Redevelopment Law (Part 1 of Division 24 (commencing with Section 33000) of the Health and Safety Code of the St`sd?ne?B`khenqmh`(?'sgd?═K`v║(+?`mc?sgd? powers of the La Quinta Redevelopment Agency included the power to issue Bonds for any of its corporate purposes; and WHEREAS, a Redevelopment Plan for a redevelopment project known and cdrhfm`sdc?`r?sgd?═K`?Pthms`?Qdcdudknoldms?Oqnidbs?@qd`?Mn-?0║?g`r?addm?`cnosdc? and approved by Ordinance No. 43 of the City of La Quinta on November 29, 1983, and all requirements of the Law for and precedent to the adoption and approval of the Project Area No. 1 Redevelopment Plan, as amended, have been duly complied with; and WHEREAS, a Redevelopment Plan for a redevelopment project known and cdrhfm`sdc?`r?sgd?═K`?Pthms`?Qdcdudknoldms?Oqnidbs?@qd`?Mn-?1║?g`r?addm?`cnosdc? and approved by Ordinance No. 139 of the City of La Quinta on May 16, 1989, and all requirements of the Law for and precedent to the adoption and approval of the Project Area No. 2 Redevelopment Plan, as amended, have been duly complied with; and WHEREAS, the Prior Agency has previously issued $15,760,000 aggregate principal amount of the La Quinta Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax Allocation Refunding Bonds, Series 1998 'sgd?═0887?Oqnidbs? @qd`?Mn-?0?Anmcr║(:?`mc? WHEREAS, the Prior Agency has previously issued $6,750,000 aggregate principal amount of the La Quinta Redevelopment Agency, La Quinta Redevelopment Project Area No. 2, Tax Allocation Refunding Bonds, Issue ne?0887?'sgd?═0887?Oqnidbs? @qd`?Mn-?1?Anmcr║(:?`mc? WHEREAS, the Prior Agency has previously issued $48,000,000 La Quinta Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax Allocation Anmcr+?Rdqhdr?1//0?'sgd?═1//0?Oqnidbs?@qd`?Mn-?0?Anmcr║(:?`mc? WHEREAS, the Prior Agency has previously issued $40,000,000 La Quinta Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax Allocation Anmcr+?Rdqhdr?1//1?'sgd?═1//1?Oqnidbs?@qd`?Mn-?0?Anmcr║(:?`mc? WHEREAS, the Prior Agency has previously issued $26,400,000 La Quinta Resolution No. FA 2013-00 Adopted:1 Page 2 Redevelopment Agency, La Quinta Redevelopment Project Area No. 1, Tax Allocation Anmcr+?S`w`akd?Rdqhdr?1//2?'sgd?═1//2?Oqnidbs?@qd`?Mn-?0?S`w`akd?Anmcr║(:?`mc? WHEREAS, the La Quinta Financing Authority 'sgd?═@tsgnqhsx║(?nm?adg`ke?ne?sgd? Prior Agency has previously issued $90,000,000 La Quinta Financing Authority, Local Agency Revenue Bonds, 2004 Series A (the?═1//3?Gntrhmf?Anmcr║(:?`mc?kn`mdc?sgd? proceeds to the Prior Agency pursuant to the terms of a Loan Agreement dated February 3, 2004, as supplemented by a First Supplemental Loan Agreement, dated as ne?Itmd?0+?1//3?'sgd?═Kn`m?Nakhf`shnm║(:?`mc? WHEREAS, the Prior Agency has previously issued $6,000,000 La Quinta Redevelopment Agency, La Quinta Redevelopment Project Area No. 2 Subordinate Taxable Tax Allocation Bonds, Series 2011 'sgd?═1/00?Oqnidbs?@qd`?Mn-?1?S`w`akd? Anmcr║(:?`mc? WHEREAS, the Authority on behalf of the Prior Agency has previously issued $28,850,000 La Quinta Financing Authority, Local Agency Subordinate Taxable Qdudmtd?Anmcr+?1/00?Rdqhdr?@?'sgd?═1/00?S`w`akd?Gntrhmf?Anmcr║(?`mc?kn`mdc?sgd? proceeds to the Prior Agency pursuant to the terms of a loan agreement dated March 0+?1/00?'sgd?═1/00?Kn`m?Nakhf`shnm(:?`mc? WHEREAS, the Successor Agency has determined that it is cost effective and efficient to refund and defease, in their entirety, the 1998 Project Area No. 1 Bonds, the 1998 Project Area No. 2 Bonds, the 2001 Project Area No. 1 Bonds, the 2002 Project Area No. 1 Bonds, the 2003 Project Area No. 1 Taxable Bonds, and the Loan Obligation in connection with the 2004 Hntrhmf?Anmcr?'bnkkdbshudkx+?sgd?═Qdetmcdc? Anmcr║(:?`mc? WHEREAS, the Successor Agency deems it necessary and proper to issue tax exempt tax allocation refunding bonds for the purpose of refunding and defeasing the 1998 Project Area No. 1 Bonds, the 1998 Project Area No. 2 Bonds, the 2001 Project Area No. 1 Bonds, the 2002 Project Area No. 1 Bonds, approximately seventy-five percent (75%) of the Loan Obligation in connection with the 2004 Housing Bonds (the ═Qdetmcdc?S`w?Dwdlos?Anmcr║(:?`mc? WHEREAS, the Successor Agency deems it necessary and proper to issue taxable tax allocation refunding bonds to refund and defease the 2003 Project Area No. 1 Taxable Bonds and the remaining approximate twenty-five percent (25%) of the Loan Obligation in connection with the 2004 Housing Bonds (the?═Qdetmcdc?S`w`akd? Anmcr║(:?`mc? WHEREAS, for the corporate purposes of the Successor Agency, the Successor Agency deems it necessary to issue at this time tax allocation refunding bonds in two series in a total approximate principal amount of approximately one hundred ninety Resolution No. FA 2013-00 Adopted:1 Page 3 seven million, five hundred seventy five thousand dollars ($197,575,999) (the ═Anmcr║(+?`mc?sn?hqqdunb`akx?rds?`rhcd?`?onqtion of the proceeds of such Bonds in a separate segregated trust fund which will be used to refund the outstanding Refunded Bonds of the Prior Agency, to pay costs in connection with the issuance of the Bonds, and to make certain other deposits as required by this Indenture; and WHEREAS, Assembly Bill AB X1 26, effective June 29, 2011, together with @rrdlakx?Ahkk?0373?'═@A?0373║(?'bnkkdbshudkx+?sgd?═Chrrnktshnm?@bs║(?qdrtksdc?hm?sgd?K`? Quinta Redevelopment Agency being dissolved as of February 1, 2012; and WHEREAS, the authority, rights, powers, assets, duties and obligations of the Prior Agency were transferred on February 1, 2012 to the Successor Agency; and WHEREAS, AB1484 specifically authorizes the issuance of refunding bonds by the Successor Agency to refund the bonds or other indebtedness of the Prior Agency to provide savings to the Successor Agency, provided that (A) the total interest cost to maturity on the refunding bonds plus the principal amount of the refunding bonds shall not exceed the total remaining interest cost to maturity on the bonds to be refunded plus the remaining principal of the bonds to be refunded, and (B) the principal amount of the refunding bonds shall not exceed the amount required to defease the refunded bonds, to establish customary debt service reserves, and to pay related costs of issuance; and WHEREAS, the Successor Agency desires to issue its La Quinta Redevelopment Project No. 1 and La Quinta Project Area No. 2, Tax Allocation Refunding Bonds, 2013 Rdqhdr?@?'sgd?═Rdqhdr?@?Anmcr║( pursuant to the Indenture of Trust, dated as of June 0+?1/02?'sgd?═Hmcdmstqd║(?`mc?1/02?S`w`akd?Rdqhdr?A?'sgd?═Rdqhdr?A?Anmcr║(?otqrt`ms? to the First Supplemental Indenture of Trust, dated as of June?0+?1/02?'sgd?═Ehqrs? Rtookdldms`k?Hmcdmstqd║(?'bnkkdbshudkx+?sgd?═Anmcr║(?enq?sgd?otqonrd?ne?qdetmchmf?sgd? Refunded Bonds, to fund a debt service reserve amount and pay costs of issuance; and WHEREAS, in order to provide for the authentication and delivery of the Bonds, to establish and declare the terms and conditions upon which the Bonds are to be issued and secured and to secure the payment of the principal thereof and interest and redemption premium (if any) thereon, the Successor Agency has duly authorized the execution and delivery of the Indenture; and WHEREAS, the Successor Agency certifies that all acts and proceedings required by law necessary to make the Bonds, when executed by the Successor Agency, and authenticated and delivered by the Trustee, the valid, binding and legal special obligations of the Successor Agency, and to constitute the Indenture a valid and binding agreement for the uses and purposes herein set forth in accordance with its terms, have been done or taken. Resolution No. FA 2013-00 Adopted:1 Page 4 WHEREAS, the Board of Directors of the La Quinta Financing Authority wishes at this time to approve certain matters relating to the refunding of the 2004 Housing Bonds; NOW, THEREFORE, BE IT RESOLVED by the La Quinta Financing Authority to adopt, as follows: SECTION 1. The Chairperson, Vice-Chairperson and Executive Director, and any other proper officer of the Authority, acting singly, be and each of them hereby is authorized and directed to execute and deliver any and all necessary documents and instruments, relating to the refunding of the 2004 Housing Bonds, including, without limitation any necessary Escrow Agreement, the form of which Escrow Agreement, by and among the Successor Agency, the Authority and U.S. Bank National Association, dated as of June 1, 2013, has been submitted at this meeting and made a part hereof as though set forth in full herein; and SECTION 2. This Resolution shall take effect immediately upon its adoption. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Financing Authority held on this 4th day of June, 2013, by the following vote: AYES: NOES: ABSENT: ABSTAIN: ________________________________ DON ADOLPH, Chairperson La Quinta Financing Authority ATTEST: __________________________________________ SUSAN MAYSELS, Secretary La Quinta Financing Authority (AUTHORITY SEAL) Resolution No. FA 2013-00 Adopted:1 Page 5 APPROVED AS TO FORM: ___________________________________________________ M. KATHERINE JENSON, Authority Counsel La Quinta Financing Authority