RDA Resolution 1994-09^# RESOLUTION NO. RA 94-9
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
LA QUINTA REDEVELOPMENT AGENCY AUTHORIZING
THE SUBSTITUTION OF THE RESERVE FUND SECURING
ITS LA QUINTA REDEVELOPMENT PROJECT TAX
ALLOCATION BONDS, SERIES 1991, APPROVING CERTAIN
DOCUMENTS AND TAKING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH
WHEREAS, the La Quinta Redevelopment Agency the Agency") is a redevelopment
agency a public body, corporate and politic) duly created, established and authorized to transact
business and exercise its powers, all under and pursuant to the Community Redevelopment Law
Part 1 of Division 24 commencing with Section 33000) of the Health and Safety Code of the
State of California), and the powers of the Agency include the power to issue bonds or notes for
any of its corporate purposes; and
WHEREAS, the Redevelopment Plan for a redevelopment project known and designated
as the La Quinta Redevelopment Project" has been adopted and approved by Ordinance No.43
of the City of La Quinta the City") which became effective on December 29, 1983, and all
requirements of law for and precedent to the adoption and approval of the Redevelopment Plan
and the subsequent amendments to such Plan have been duly complied with; and
WHEREAS, to finance the costs of implementing a portion of the Redevelopment Plan
for the La Quinta Redevelopment Project, the Agency issued its La Quinta Redevelopment
Project Tax Allocation Bonds, Series 1991 in an aggregate principal amount of $8,700,000 the
Bonds") pursuant to its Resolution No. RA 91-12 adopted on October 9, 1991, as supplemented
by its resolution entitled, Supplement to Resolution No. RA 91-12 of the La Quinta
Redevelopment Agency Authorizing the Issuance of Tax Allocation Bonds of Said Agency in a
Principal Amount of Eight Million Seven Hundred Thousand Dollars $8,700,000) to Finance a
Portion of the Cost of a Redevelopment Project Known as the La Quinta Redevelopment Project"
collectively, the Bond Resolution"); and
WHEREAS, the payment of principal of and interest on the Bonds were insured by
Municipal Bond Investors Assurance Corporation MBIA"), and to further secure the payment
of principal of and interest on the Bonds, a portion of the Bond proceeds were used to fund the
Debt Service Reserve Fund established under the Hond Resolution; and
WHEREAS, Section 15(c) of the Bond Resolution provides that the Agency may maintain
the Reserve Requirement by obtaining i) a letter of credit, ii) a surety bond, or iii) a policy of
insurance, and the Agency desires to substitute the amounts deposited in the Debt Service
Reserve Fund with a municipal bond debt service reserve fund policy the Surety Bond") issued
by MBIA; and
WHEREAS, this Board of Directors desires to authorize the delivery and issuance of such
Surety Bond;
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^# I,
NOW, THEREFORE, the Board of Directors of the La Quinta Redevelopment Agency
DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:
SECTION 1. Recitals. Each of the above recitals is true and correct and this Board so
finds and determines.
SECTION 2. Authorization. The Agency hereby authorizes the substitution of the
amounts deposited in the Debt Service Reserve Fund with a Surety Bond to be issued by MBIA.
Specific terms and provisions related to the Surety Bond, including the payment of the premium
to MBIA shall be as set forth in the Financial Guaranty Agreement described below).
SECTION 3. Definitions. Section 1 of the Bond Resolution is hereby supplemented by
the addition of the following definition, to read as follows:
Surety Bond" means the municipal bond debt service reserve fund policy issued
by MBIA guaranteeing certain payments into the Debt Service Reserve Fund as provided
therein and subject to the limitations set forth therein.
SECTION 4. The Bond Resolution is hereby supplemented by the addition of the
following paragraph at the end of Section 15(c), to read as follows:
If and to the extent that the Debt Service Reserve Fund has been funded with a
combination of cash or permitted investments under the Bond Resolution) and a surety
bond, then all such cash or permitted investments under the Bond Resolution) shall be
completely used before any demand is made on such surety bond, and replenishment of
the surety bond shall be made prior to any replenishment of any such cash or *ermitted
investments under the Bond Resolution). If the Debt Service Reserve Fund is funded, in
whole or in part, with more than one surety bond, then any draws made against such
surety bond shall be made pro-rata. If it is necessary to make a draw upon MBIA's
Surety Bond, the Fiscal Agent shall deliver to MBIA a Demand for Payment as defined
in MBIA's Surety Bond) substantially in the form required by MBIA's Surety Bond at
least three days prior to the date on which the funds from such draw are needed. The
Fiscal Agent shall maintain adequate records, verified by MBIA, as to the amount
available to be drawn at any given time under MBIA's Surety Bond.
If during any Bond Year i) Pledged Tax Revenues remain in the Special Fund
after providing or otherwise reserving) for all deposits required by paragraphs a) and 1))
of Section 5, during the entirety of such Bond Year, ii) the amounts on deposit in the
Debt Service Reserve Fund and in any debt service reserve account established with
respect to any Parity Bonds are equal to or exceed their respective required funding
levels, iii) any surety bonds used to fund the Debt Service Reserve Fund or any debt
service reserve account established with respect to any Parity Bonds are fully replenished
and all interest on amounts advanced under such surety bonds, including the Surety Bond,
has been paid to the provider thereof, and iv) the Agency is not in default hereunder,
then any moneys then on deposit in the Special Fund may be used in any manner
provided by law for the purpose of aiding in financing the Redevelopment Project,
including early redemption or purchase of the Bonds and Parity Bonds, as provided in this
Resolution and the Bond Resolution and permitted by the Law.,,
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^# Resolution No. RA 94-9
SECTION 5. At)Droval of Financial Guaranty A*reement. The Board hereby authorizes
the preparation and execution of the Financial Guaranty Agreement and the Executive Director of
the Agency, or his designee, is hereby authorized and directed, for and in the narne and on behalf
of the Agency, to execute and deliver to MBIA the Financial Guaranty Agreement with such
changes therein as such official may require or approve, such approval to be conclusively
evidenced by the execution and delivery thereof.
SECTION 6. General Authorization to Executive Director. The Executive Director, or
his written designee, is authorized to incur such costs and to contract for all services necessary to
effect the substitution of the Debt Service Reserve Fund with the Surety Bond. Such services
shall include, but not be limited to, payment of the Surety Bond premium and the execution and
delivery of the Financial Guaranty *greement, and any such actions previously taken by the
Executive Director and such other officers are hereby ratified, confirmed and approved in all
respects.
SECTION 7. Effective Date. All actions heretofore taken by officers and agents of the
Agency with respect to the substitution of the Debt Service Reserve Fund with a Surety Bond
provided by MBIA are hereby approved, confirmed and ratified, and the Chairman, the Secretary
and the Executive Director and the other officers of the Agency responsible for the fiscal affairs
of the Agency are hereby authorized and directed to take any actions and execute and deliver any
and all certificates, instruments and documents as are necessary to accomplish such substitution in
accordance with the provisions of this Resolution and the Bond Resolution. In the event that the
Chairman or the Executive Director is unavailable to sign any document authorized for execution
herein, such documents shall be signed by their respective designee. Any document authorized
herein to be signed by the Secretary may be signed by a duly appointed deputy secretary
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^# IN WITNESS WHEREOF, this Resolution is adopted and approved the 5th day
of July 1994.
Chairman of the La Q*nta*Redeve*nt
Agency
SEAL)
ATTEST
*ecretary
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^# I
STATE OF CALIFORNIA SECRETARY'S CERTIFICATE
COUNTY OF RIVERSIDE 85. OF AUTHENTICATION
CITY OP LA QUINTA
I, SANDRA JUHOLA Secretary of the La Quinta Redevelopment Agency,
California, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted by said
Agency at a regular meeting of said Agency held on the 5th day of July 1994, and
that the same was passed and adopted by the following vote, to wit:
AYES: Board Members Bangerter, McCartney, Pena, Perkins,
Chairman Sniff
NOES: None
*SENT: None
ABSTMN: None
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^#STATE OF CALIFORNIA SECRETARY'S Certificate
COUNTY OF RIVERSIDE 55 OF AUTHENTICATION
CITY OF LA QUINTA
I, SANDRA JUHOLA, Secretary of the La Quinta Redevelopment Agency, DO
HEREBY CERTIFY that the above and foregoing is a full, true and correct copy of Resolution
No RA9 4* 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 rep
ecretary
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