2013 12 17 SA MinutesSUCCESSOR AGENCY TO THE
LA QUINTA REDEVELOPMENT AGENCY
MINUTES
TUESDAY, DECEMBER 17, 2013
A regular meeting of the La Quinta City Council in their capacity as Successor
Agency to the La Quinta Redevelopment Agency ( "SA ") was called to order at
6:20 p.m. by Chairperson Adolph.
PRESENT: Agency Members Evans, Franklin, Henderson, Osborne, Chair Adolph
ABSENT: None
PUBLIC COMMENT
None
CLOSED SESSION
None
CONFIRMATION OF AGENDA
Confirmed
PRESENTATIONS
None
WRITTEN COMMUNICATIONS
None
APPROVAL OF MINUTES
MOTION — A motion was made and seconded by Agency Members Franklin /Evans
to approve the minutes of December 3, 2013 as submitted. Motion passed
unanimously.
CONSENT CALENDAR
1. RECEIVE AND FILE TREASURER'S REPORT DATED OCTOBER 31, 2013
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORTS DATED
OCTOBER 31, 2013
MOTION — A motion was made and seconded by Agency Members Evans /Franklin
to approve the Consent Calendar as recommended. Motion passed unanimously.
DEPARTMENT REPORTS
City Manager Spevacek reported on the status of refunding $125 million of former
Redevelopment Agency bonds approved by the SA on October 1, 2013. He said
that $120.2 million in bonds were sold today and the annual debt service savings
will be greater than anticipated. The original estimate was $435,000 per year; the
actual savings will be $560,000 per year or approximately 28 %. The gross
savings over the remaining life of the bonds will be $12 million, which is up from
the original estimate of $8.1 million. The Underwriter's discount also improved
with a reduction from $687,000 to $602,000, due to the yield and positive
reception. Mr. Spevacek said that some of the bonds were oversubscribed, which
shows the quality of the City of La Quinta. Regarding bond insurance, Mr.
Spevacek said that due to Standard and Poor's recent A+ rating of the City,
CITY AS SUCCESSOR AGENCY TO RDA
DECEMBER 17, 2013
insurance was required only on the final years of the bonds, which reduces the
original estimate for the insurance premium from $1.4 million to $450,578. He
noted that half the projected annual debt service savings would be used to help
repay the General Fund loan over a period of time. Regarding timing, Mr. Spevacek
explained that the Mayor and City Clerk will execute the closing documents by
December 19, 2013, and formal closing will occur on December 23, 2013.
BUSINESS SESSION None
STUDY SESSION None
ADJOURNMENT
There being no further business, it was moved and seconded by Agency Members
Franklin /Evans to adjourn at 6:24 p.m. Motion passed unanimously.
Respectfully submitted,
SUSAN MAYSELS, Agency Secretary
Successor Agency to the Dissolved
La Quinta Redevelopment Agency
CITY AS SUCCESSOR AGENCY TO RDA 2
DECEMBER 17, 2013