RES-2009-029RESOLUTION NO. 2009- 029
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM (I) APPROVING THE ISSUANCE OF NOT TO
EXCEED $70,000,000 AGGREGATE PRINCIPAL AMOUNT OF
REVENUE BONDS OF THE ANAHEIM PUBLIC FINANCING
AUTHORITY; (II) APPROVING THE FORMS AND
AUTHORIZING THE EXECUTION OF AN INSTALLMENT
PURCHASE AGREEMENT, AN INDENTURE OF TRUST, A
CONTINUING DISCLOSURE AGREEMENT, A PURCHASE
CONTRACT AND OTHER RELATED DOCUMENTS; (III)
APPROVING THE DELIVERY OF A PRELIMINARY OFFICIAL
STATEMENT AND AN OFFICIAL STATEMENT; AND (IV)
APPROVING CERTAIN ACTIONS IN CONNECTION
THEREWITH.
WHEREAS, the City of Anaheim (the "City and the Anaheim Redevelopment
Agency have heretofore entered into a Joint Exercise of Powers Agreement (the "Joint Exercise of
Powers Agreement establishing the Anaheim Public Financing Authority (the "Authority and
WHEREAS, pursuant to Article 4 of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California (the "Bond Law and the Joint Exercise of Powers
Agreement, the Authority is authorized to borrow money for the purpose of assisting the City in the
financing and refinancing of costs related to public capital improvements of the City; and
WHEREAS, it has been proposed that the Authority assist the City in the financing
of certain public capital improvements to the City's electric distribution system (the "Distribution
System Assets and
WHEREAS, it has been proposed that the Authority sell the Distribution System
Assets to the City and the City purchase such Distribution System Assets from the Authority
pursuant to an Installment Purchase Agreement (the "Installment Purchase Agreement by and
between the City and the Authority, the proposed form of which has been presented to this City
Council, pursuant to which the City will agree to make certain installment purchase payments (the
"2009 -A Purchase Payments in connection therewith; and
WHEREAS, the Authority and the City have determined that it would be in the best
interests of the Authority, the City and the citizens of the City to authorize, pursuant to an Indenture
of Trust (the "Indenture by and among the Authority, the City and The Bank of New York Mellon
Trust Company, N.A., as trustee (the "Trustee the proposed form of which has been presented to
this City Council, the issuance of the Authority's Revenue Bonds, Series 2009 -A (City of Anaheim
Electric System Distribution Facilities) (the "2009 -A Bonds in an aggregate principal amount not
to exceed $70,000,000, under the provisions of the Bond Law, payable from certain revenues
including the 2009 -A Purchase Payments, for the purpose of raising funds necessary to provide such
financial assistance to the City; and
WHEREAS. it has been proposed that the City and the Authority enter into a
Purchase Contract (the "Purchase Contract with Citigroup Global Markets Inc., as senior manager,
and such other securities firms as may be selected by an Authorized Officer (defined below) as
underwriters (collectively, the "Underwriters the proposed form of which has been presented to
this City Council. providing for the purchase by negotiated sale of the 2009 -A Bonds by the
Underwriters; and
WHEREAS, the City has determined that it is in the best public interest of the City
to approve the above documents and authorize and approve the transactions contemplated thereby;
NOW. THEREFORE. the City Council of the City of Anaheim does hereby resolve,
determine and order as follows:
SECTION 1: The City Council hereby approves the issuance of the 2009 -A Bonds
by the Authority under and pursuant to the Bond Law; provided, that the aggregate principal amount
of the 2009 -A Bonds shall not exceed S70.000,000. The 2009 -A Bonds shall be issued pursuant to
the Indenture. The City Council hereby approves the Indenture in the form thereof on file with the
City Clerk. together with such additions thereto and changes therein as are approved in accordance
with Section 6 hereof. such approval to be conclusively evidenced by the execution and delivery
thereof.
The Mayor. the City Manager, the City Treasurer, the Public Utilities General
Manager and the Public Utilities Assistant General Manager Finance and Administration, and their
respectile designees r each. an "Authorized Officer are each hereby authorized to execute, and the
Cite Clerk is hereby authorized to attest and affix the seal of the City to, the final form of the
Indenture. for and in the name and on behalf of the City. The City Council hereby authorizes the
del ivery and performance of the Indenture.
The City Council hereby approves the issuance of the 2009 -A Bonds in accordance
with the terms and provisions of the Indenture (as executed and delivered).
SECTION 2: The City Council hereby approves the Installment Purchase Agreement
in the forrn thereof on file with the City Clerk. together with such additions thereto and changes
therein as are approved in accordance with Section 6 hereof, such approval to be conclusively
evidenced by the execution and delivery thereof. The Authorized Officers are each hereby
authorized to execute. and the City Clerk is hereby authorized to attest and affix the seal of the City
to. the final form of the Installment Purchase Agreement, for and in the name and on behalf of the
Cite. The Citv Council hereby authorizes the delivery and performance of the Installment Purchase
Agreement.
SECTION 3: The City Council hereby approves the Continuing Disclosure
Agreement in the form on file with the City Clerk, together with such additions thereto and changes
therein as are approved by Section 6 hereof, such approval to be conclusively evidenced by the
execution and delivery thereof. The Authorized Officers are each hereby authorized to execute, and
the City Clerk is hereby authorized to attest and affix the seal of the City to, the final form of the
Continuing Disclosure Agreement, for and in the name and on behalf of the City. The City Council
hereby authorizes the delivery and performance of the Continuing Disclosure Agreement.
SECTION 4: The City Council hereby approves the Purchase Contract in the form
thereof on file with the City Clerk, together with such additions thereto and changes therein as are
approved by Section 6 hereof. such approval to be conclusively evidenced by the execution and
delivery thereof. The Authorized Officers are each hereby authorized to execute, and the City Clerk
is hereby authorized to attest and to affix the seal of the City to, the final form of the Purchase
Contract. for and in the name and on behalf of the City. The City Council hereby authorizes the
delivery and performance of the Purchase Contract.
SECTION 5: The City Council hereby approves the form of Preliminary Official
Statement relating to the 2009 -A Bonds (the "Preliminary Official Statement in the form thereof
on file with the City Clerk. with such additions thereto and changes therein as are approved by any
Authorized Officer, upon consultation with the Acting City Attorney, Fulbright Jaworski L.L.P.,
as Bond Counsel and Disclosure Counsel "Bond Counsel Each of the Authorized Officers is
hereby authorized to execute and deliver a certificate deeming the Preliminary Official Statement
final for purposes of SEC Rule 1.5c2 -12. Upon the pricing of the 2009 -A Bonds. each of the
Authorized Officers is hereby authorized to prepare and execute a final Official Statement (the
"Official Statement". substantially in the form of the Preliminary Official Statement, with such
additions thereto and changes therein as approved by any Authorized Officer, upon consultation with
the Acting City Attorney and Bond Counsel. The City Council hereby authorizes the distribution
of the Preliminary Official Statement and the Official Statement by the Underwriters in connection
with the offering and sale of the 2009 -A Bonds.
SECTION 6: The agreements approved in Sections 1, 2, 3 and 4 of this Resolution
shall. when executed and delivered pursuant to said sections. contain such additions and changes
(including additions and changes necessary to satisfy the requirements of any provider of a municipal
bond insurance police relating to the 2009 -A Bonds) as shall have been approved by the Authorized
Officers. Each Authorized Officer is hereby authorized to determine, in connection with the
execution and delivery of the agreements approved in Sections 1, 2, 3 and 4 hereof, the following
with respect to the 2009 -A Bonds:
(a) the aggregate principal amount of the 2009 -A Bonds, which shall not exceed
570,000.000;
lh) the final 2009 -A Purchase Payment under the Installment Purchase
Agreement, which shall be due and payable not later than October 1. 2039;
(c) the yield on the 2009 -A Bonds, which shall not exceed 6.50%;
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(d) the Underwriters' discount on the 2009 -A Bonds, which shall not exceed
0.70cy of the principal amount thereof; and
(e) the premium for any municipal bond insurance with respect to the 2009 -A
Bonds. which shall not exceed 1.50% of the 2009 -A Bond payments insured.
SECTION 7: Prior to the Crossover Date (as defined in the Installment Purchase
Agreement the 2009 -A Purchase Payments and all other payments with respect to Qualified
Obligations (as defined in the Installment Purchase Agreement) shall be secured by a pledge, charge
and lien upon the Surplus Revenues in the Qualified Obligations Account (as defined in the
Installment Purchase Agreement) and shall be paid from Surplus Revenues in the Qualified
Obligations Account unless otherwise paid from other sources of legally available funds. 2009 -A
Purchase Payments and all other payments with respect to Qualified Obligations shall be equally
secured by the Surplus Revenues in the Qualified Obligations Account without priority for number
or date. The Surplus Revenues in the Qualified Obligations Account shall be held in trust by the
City Treasurer for the payment of the 2009 -A Purchase Payments and any other Qualified
Obligations. From and after the Crossover Date, the 2009 -A Purchase Payments and any other
Distribution System Parity Obligations (as defined in the Installment Purchase Agreement) shall be
equally secured by the Distribution System Net Revenues (as defined in the Installment Purchase
Agreement and shall he paid from the Distribution System Net Revenues unless otherwise paid from
other sources of legali v available funds. From and after the Crossover Date, the Distribution System
Net Revenues shall he held in trust by the Treasurer of the City for the payment of the 2009 -A
Purchase Payments and any other Distribution System Parity Obligations.
SECTION 8: The Mayor, the City Manager, the Public Utilities General Manager
and the Public Utilities Assistant General Manager- Finance and Administration, the City Treasurer,
the Acting City Attorney and the City Clerk of the City and the other officers, employees and agents
of the City are hereby authorized and directed. jointly and severally, for and in the name of the City,
to do anv and all things and to take all actions. including execution and delivery of any and all
assignments. certificates. requisitions. agreements, notices. consents, instruments of conveyance,
warrants and other documents which they. or any of them. may deem necessary or advisable in order
to consummate the lawful issuance and sale of the 2009 -A Bonds, to arrange for the insuring of all
or any portion of the 2009 -A Bonds and to consummate the transactions contemplated by the
Indenture. the Installment Purchase Agreement. the Continuing Disclosure Agreement. the Purchase
Contract and this Resolution. and such actions previously taken by such officers, employees and
agents are hereby ratified and confirmed.
SECTION 9: This City Council hereby finds and determines that the transfer of title
to l-acilitles to the Authority under the terns of the Installment Purchase Agreement is in the best
interests of the City, and hereby agrees to transfer such title to the Authority.
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SECTION 10: This Resolution shall take effect from and after its date of adoption.
THE FOREGOING RESOLUTION was approved and adopted by the City Council
of the City of Anaheim at a regular meeting of said City Council held on thelOthday of February,
2009, by the following roll call vote:
AYES: Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
(SEAL)
ATTEST
114 NA.
CITY CL RK OF THE CITY OF ANAHEIM
CITY OF NAHEIM
MAYOR OF THE CI 0 ANAHEIM
STATE OF CALIFORNIA
COUNTY OF ORANGE ss
CITY OF ANAHEIM
I, Linda N. Andal, City Clerk of the City of Anaheim, do hereby certify that the
foregoing Resolution No. 2009- 0 29 was introduced and adopted at a regular meeting of the City
Council of the City of Anaheim duly called, noticed and held on the1Cth day of February, 2009, by
the following vote of the members thereof:
AYES:
NOES:
ABSENT:
ABSTAIN
(SEAL)
COUNCIL MEMBERS: Mayor Pringle, Council Members Hernandez
Sidhu, Galloway, Kring
COUNCIL MEMBERS: NONE
COUNCIL MEMBERS:
COUNCIL MEMBERS:
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NONE
NONE
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 2009 n29 on the10th day of February, 2009.
IN WITNESS WHEREOF. I have hereunto set my hand and affixed the seal of the
City of Anaheim this 10th day of February, 2009.
CITY CLERK OF THE CITY OF ANAHEIM
I, Linda N. Andal, City Clerk of the City of Anaheim. do hereby certify that the
foregoing is the original Resolution No. 2009- 02 9 duly passed and adopted by the Anaheim
Cite Council on February 10th 2009
CITY CLERK OF THE CITY OF ANAHEIM