APFA-2011-005RESOLUTION NO. APFA 2011- 005
RESOLUTION OF THE BOARD OF DIRECTORS OF THE
ANAHEIM PUBLIC FINANCING AUTHORITY,
(I) AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$95,000,000 AGGREGATE PRINCIPAL AMOUNT OF
REVENUE BONDS OF SAID AUTHORITY;
(II) APPROVING THE FORM OF AND AUTHORIZING
THE EXECUTION AND DELIVERY OF AN INDENTURE
OF TRUST, AN INSTALLMENT PURCHASE
AGREEMENT, A PURCHASE CONTRACT AND OTHER
RELATED DOCUMENTS; (III) APPROVING THE
EXECUTION AND DELIVERY OF 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 for the City by acquiring certain portions of 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
Board, pursuant to which the City will agree to make certain installment purchase payments (the
"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 U.S. Bank
National Association, as trustee (the "Trustee "), the proposed form of which has been presented
to this Board, the issuance of the Authority's Revenue Bonds, Series 2011 -A (City of Anaheim
Electric System Distribution Facilities) (the "Bonds ") in an aggregate principal amount of not to
exceed $95,000,000, under the provisions of the Bond Law, payable from certain revenues
including the 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 Authority and the City enter into a
Purchase Contract (the "Purchase Contract ") with J.P. Morgan Securities LLC, 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 Board, providing for the purchase by negotiated sale of the Bonds by the
Underwriters; and
WHEREAS, the Authority has determined that it is in the best public interest of
the Authority to approve the above documents and authorize and approve the transactions
contemplated thereby;
NOW, THEREFORE, the Board of Directors of the Anaheim Public Financing
Authority does hereby resolve, determine and order as follows:
SECTION 1 : The Board hereby authorizes the issuance of the Bonds under and
pursuant to the Bond Law; provided, that the aggregate principal amount of the Bonds shall not
exceed $95,000,000. The Bonds shall be issued pursuant to the Indenture. The Board hereby
approves the Indenture in the form thereof on file with the Secretary, together with such
additions thereto and changes therein as are approved in accordance with Section 5 hereof, such
approval to be conclusively evidenced by the execution and delivery thereof.
Each of the Chairman, the Executive Director, the Treasurer and the Authority
Financial Advisor, or their respective designees (each, an "Authorized Officer "), is hereby
authorized to execute, and the Secretary is hereby authorized to attest and affix the seal of the
Authority to, the Bonds and the final form of the Indenture, for and in the name and on behalf of
the Authority. The Board hereby authorizes the delivery and perfonnance of the Indenture.
The Board hereby approves the issuance of the Bonds in accordance with the
terns and provisions of the Indenture (as executed and delivered).
SECTION 2 : The Board hereby approves the Installment Purchase Agreement in
the form thereof on file with the Secretary, together with such additions thereto and changes
therein as are approved in accordance with Section 5 hereof, such approval to be conclusively
evidenced by the execution and delivery thereof. Each of the Authorized Officers is hereby
authorized to execute, and the Secretary is hereby authorized to attest and affix the seal of the
Authority to, the final fonn of the Installment Purchase Agreement, for and in the name and on
behalf of the Authority. The Board hereby authorizes the delivery and performance of the
Installment Purchase Agreement.
SECTION 3 . The Board hereby approves the Purchase Contract in the form
thereof on file with the Secretary, together with such additions thereto and changes therein as are
approved by Section 5 hereof, such approval to be conclusively evidenced by the execution and
delivery thereof. Each of the Authorized Officers is hereby authorized to execute, and the
Secretary is hereby authorized to attest and affix the seal of the Authority to, the final fonn of the
Purchase Contract, for and in the naive and on behalf of the Authority. The Board hereby
authorizes the delivery and perfonnance of the Purchase Contract.
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SECTION 4 : The Board hereby approves the Preliminary Official Statement
relating to the Bonds (the "Preliminary Official Statement ") in the form thereof on file with the
Secretary, with such additions thereto and changes therein as are approved by any Authorized
Officer, upon consultation with the City Attorney, as counsel to the Authority, and 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 15c2 -12. Upon the pricing of the
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 City Attorney, as counsel to the Authority, and
Bond Counsel, such approval to be conclusively evidenced by the execution and delivery
thereof. The Board 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 Bonds.
SECTION 5 : The agreements approved in Sections 1, 2 and 3 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 policy or reserve fund surety policy for the Bonds) as shall have been
approved by the Authorized Officers. Each of the Authorized Officers is hereby authorized to
determine, in connection with the execution and delivery of the agreements approved in
Sections 1, 2 and 3 hereof, the following with respect to the Bonds:
(a) the aggregate principal amount of the Bonds, which shall not exceed
$95,000,000;
(b) the final maturity of the Bonds, which shall be not later than October 1,
2042;
(c) the yield on the Bonds, which shall not exceed 7.0% per annum;
(d) the Underwriters' discount on the Bonds, which shall not exceed 0.6% of
the principal amount thereof, and
(e) the premium for any municipal bond insurance policy to be provided for
the Bonds, which shall not exceed 1.50% of the Bond payments insured.
SECTION 6 : The Chainnan, the Executive Director, the Treasurer, the Financial
Advisor and the Secretary of the Authority and the other officers, employees and agents of the
Authority are hereby authorized and directed, jointly and severally, for and in the name of the
Authority, to do any 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 Bonds, to arrange for bond
insurance or a reserve fund surety policy for all or any portion of the Bonds with any municipal
bond insurer and to consummate the transactions contemplated by the Indenture, the Installment
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Purchase Agreement, the Purchase Contract and this Resolution, and such actions previously
taken by such officers, employees and agents are hereby ratified and confirmed.
adoption.
SECTION 7 : This Resolution shall take effect from and after its date of
THE FOREGOING RESOLUTION was approved and adopted by the Anaheim
Public Financing Authority at a regular meeting of said Anaheim Public Financing Authority
held on the 12th day of April, 2011, by the following roll call vote:
AYES: Chairman Tait, Authority Members Sidhu, Eastman, Galloway, Murray
NOES: NONE
ABSENT: NONE
ABSTAIN: NONE
A
SECRETARY OF THE ANAHEIM
PUBLIC FINANCING AUTHORITY
CHAIRMAN OF THE ANAHEIM PUBLIC
FINANCING AUTHORITY
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, Linda N. Andal, Secretary of the Board of Directors of the Anaheim Public Financing
Authority, do hereby certify that the foregoing Resolution No. APFA 2011- 005 was
introduced and adopted at a regular meeting provided by law of the Board of Directors of the
Anaheim Public Financing Authority held on the 12th day of April., 2011, by the following roll
call vote of the members thereof:
AYES: BOARD MEMBERS: Tait, Sidhu, Eastman, Galloway, Murray
NOES: BOARD MEMBERS: NONE
ABSENT: BOARD MEMBERS: NONE
ABSTAIN: BOARD MEMBERS: NONE
AND I FURTHER certify that the Chairman of the Board of Directors signed said Resolution
No. APFA 2011- 005 on the 12th day of April, 2011.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the Anaheim
Public Financing Authority this 13th day of April, 2011.
SECRETARY OF THE ANAHEIM
PUBLIC FINANCING AUTHORITY
(SEAL)
I, Linda N. Andal, Secretary of the Board of Directors of the Anaheim Public Financing
Authority, do hereby certify that the foregoing is the original Resolution No. APFA 2011 - 005
duly passed and adopted by the Anaheim Public Financing Authority on April 12th 2011.
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SECRETARY OF THE ANAHEIM
PUBLIC FINANCING AUTHORITY
82380/95005821.4