APFA2011/04/12ANAHEIM PUBLIC FINANCING AUTHORITY
REGULAR MEETING OF APRIL 12, 2011
The Anaheim Public Financing Authority regular meeting was called to order at 5:45 P.M.
for a joint public comment session with the Anaheim City Council and the Anaheim
Redevelopment Agency.
Present: Chairman Tom Tait and Authority Members: Gail Eastman, Lord Galloway, Kris
Murray and Harry Sidhu.
Staff Present: City Manager Tom Wood, City Attorney Cristina Talley, and Secretary
Linda Andal
A copy of the agenda for the meeting of the Anaheim Public Financing Authority was
posted on April 8, 2011 on the kiosk outside City Hall.
ADDITIONS /DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS: No remarks offered during the joint public comment session
related to the Anaheim Public Financing Authority meeting.
CONSENT CALENDAR: At 5:58 P.M., Authority Member Galloway moved to approve
the Public Financing Authority consent calendar as presented, seconded by Authority
Member Sidhu. Roll Call Vote: Ayes — 5:(Chairman Tait and Authority Members:
Eastman, Galloway, Murray and Sidhu). Noes — 0. Motion Carried.
Approve minutes of Public Financing Authority meetings of March 22, 2011 and
March 29, 2011.
END OF CONSENT CALENDAR:
2. RESOLUTION NO. APFA 2011 -005 A RESOLUTION OF THE BOARD
OF DIRECTORS OF THE ANAHEIM PUBLIC FINANICNG AUTHORITY (i)
authorizing the issuance of not to exceed $95,000,000 aggregate principal amount
11100 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 (related to Council Item No. 19).
Amend the fiscal year 2010/11 budget accordingly by the amount of the bond.
Public Utilities (PU) General Manager Marcie Edwards provided a brief presentation which
covered Item No. 2 on the Financing Authority Agenda and Item No. 19 on the City
Council Agenda. She indicated this resolution would authorize issuance of electric
revenue bonds not to exceed $95 million proposed for a variety of electric system
infrastructure projects. The Public Utilities Board unanimously voted their support of the
APFA Meeting of April 12, 2011
Page 2
bond issuance at their March 23` meeting. She explained this proposal was an important
part of the Department's strategic financial plan which incorporated the need for capital
investment in the infrastructure to provide customers with safe and reliable electric
service. These investments, she remarked, were long -lived fixed assets that benefitted
customers for decades. She further explained borrowing, rather than raising rates and
financing the program by cash, was intentional to allow for the cost of the borrowing to be
spread over an approximate 30 year life of the assets so customers receiving the benefit
of the assets over time, were also the customers paying the cost. To do otherwise, she
stated, would place the entire burden on current rate payers.
She also stated this borrowing would have no impact on the electric rates since previous
Council actions had approved electric rates anticipating the need for debt service
associated with the bond issue. She added the department's strategic financial plan
incorporated the estimated capital needs of the electric system over a long -term planning
perspective which helped the department determine the best mix of borrowing, use of
reserves and available revenues to fund capital projects, The Department had also
reviewed and prioritized its capital requirements and deferred certain projects which could
be delayed without having negative short term operational consequences or limiting the
ability to serve customers, and this was done, she stated, in order to minimize the size of
the borrowing proposed at this time. She also added this borrowing would address capital
needs only and would not be used for any on -going expenses such as labor, pensions,
maintenance or other operating expenses incurred in day -to -day operations. Additionally,
the requirement to make payments on these bonds did not create any obligation to the
City's general fund as the City's electric revenues were pledged for bond repayment.
Ms. Edwards added the projects proposed would add, expand or retrofit electric
substations and associated equipment along with adding to the fund for expanding new
technology. She noted all details associated with the design engineering and construction
of specific projects would come before Council on an item -by -item basis and Council
would have an opportunity to review each project in detail.
She ended her presentation remarking whenever funds were borrowed, the status of the
Utility and the City, it's financial viability and long -term plans were reviewed by rating
agencies and typically, this information was presented to Fitch, Standard & Poor's and
Moody's. Fitch had affirmed the City's AA- rating with a stable outlook which was
welcome news, noting no other ratings had yet been received.
Authority Member Galloway moved to approve RESOLUTION NO. APFA 2011 -005 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; and to
amend the FY 2011/12 budget accordingly, seconded by Authority Member Murray. Roll
Call Vote: Ayes — 5: Mayor Tait and Council Members: Eastman, Galloway, Murray and
Sidhu. Noes — 0. Motion Carried.
APFA Meeting of April 12, 2011
Page 3
ADJOURNMENT:
There being no further business, Chairman Tait adjourned the meeting of the Anaheim
Public Financing Authority at 6:05 P.M.
R e ully submitted,
Linda N. Andal, CIVIC
Secretary, Anaheim Public Financing Authority