APFA1998/04/07ANAHEIM CITY HALL, ANAHEIM PUBLIC FINANCING AUTHORITY
April 7, 1998
PRESENT: BOARD MEMBERS: S. McCracken, T. Tait, B. Zemel, L. Lopez,T. Daly
ABSENT: BOARD MEMBERS: None
PRESENT: CITY MANAGER: James Ruth
CITY ATTORNEY: Jack White
SECRETARY: Leonora N. Sohl
A complete copy of the agenda for the meeting of the Anaheim Public Financing Authority was posted at
1:45 p.m. on April 3, 1998 at the Civic Center Kiosk, containing all items as shown herein.
Chairman Daly called the regular meeting of the Anaheim Public Financing Authority to order at 5:42
p.m.
ADDITIONS TO THE AGENDA: There were no additions to agenda items.
ITEMS OF PUBLIC INTEREST: No items of public interest were addressed.
PUBLIC COMMENTS -AGENDA ITEMS: There were no public comments on Public Financing
Authority Agenda items.
CONSENT CALENDAR ITEMS 1 - 2: On motion by Chairman Daly, seconded by Board Member Lopez
the following actions were authorized in accordance with the reports and recommendations furnished
each Authority Member and as listed on the Consent Calendar Agenda.
1. 137: RESOLUTION NO. APFA98-1 A RESOLUTION OF THE ANAHEIM PUBLIC
FINANCING AUTHORITY (I) authorizing the invitation of proposals for the purchase of
not to exceed $65,000,000 aggregate principal amount of bonds by the Anaheim
Public Financing Authority (1998 Series) (II) authorizing a Notice Inviting Bids
relating to the bonds and a Notice of Intention to Sell Bonds; (III) approving an
Installment Purchase Agreement, an Indenture of Trust and a Continuing Disclosure
Agreement; (I~ authorizing the delivery of a Preliminary Official Statement and an
Official Statement; and M taking certain actions in connection therewith. (Public
Utilities)
137: RESOLUTION NO. APFA98-2 A RESOLUTION OF THE ANAHEIM PUBLIC
FINANCING AUTHORITY making certain findings as to reimbursement of certain
costs of the City of Anaheim from the proceeds of bonds to be issued by the Anaheim
Public Financing Authority.
Jeff Kirsch, 2661 W. Palais, Anaheim. He made comments and posed questions relative to the new debt
involved in the proposal. He also suggested if this is new debt, whether the concept of utilizing "baby
bonds° could be explored not only for this financing, but any future financing to give citizens a stronger
stake on what is going on in the community.
City Manager, James Ruth. Staff was intending to make a presentation on this issue under Item A16 on
the Council Agenda. Mr. Aghjayan and Mr. Bell are present and can speak on the matter at this time.
Mike Bell, Assistant General Manager for Finance/Public Utilities. This transaction puts the utility in a
better position to compete in the future. There are three main benefits: (1) begins to pay off some of the
generation debt that is outstanding sooner than what is presently planned, (2) lowers utility stranded
costs and accelerates the recovery of those costs, (3) the opportunity today in the bond market with low
interest rates results in a net savings of approximately $7 million allowing for the retirement of more
generation debt sooner than previously planned.
With regard to "baby bonds" or mini bonds, it does not make sense for this transaction, but they are
looking at using that financial vehicle as a possibility for future transactions.
Authority Member Tait asked, bottom line, if rates will be lower.
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Mike Bell. Rates will be lower in the 2001-2003 time frame once they have retired all the stranded costs.
The answer is yes, not today, but it does bring that date forward.
Authority Member Zemel. He asked if this will increase the value of the equity position of the utility; Mr,
Bell answered, in his opinion, yes. These are the types of things they need to do regardless of the
direction they take. It does not put them in a detrimental position with regard to the proposals they have
received (and are in the process of evaluating}.
2. 187: APPROVING MINUTES OF THE ANAHEIM PUBLIC FINANCING
AUTHORITY MEETING held May 13, 1997.
Roll Call Vote on Resolution Nos. APFA98-1 and APFA98-2 for adoption:
AYES: CHAIRMAN/AUTHORITY MEMBERS: McCracken, Tait, Zemel, Lopez, Daly
NOES: CHAIRMAN/AUTHORITY MEMBERS: None
ABSENT: CHAIRMAN/AUTHORITY MEMBERS: None
The Chairman declared Resolution Nos. APFA98-1 and APFA98-2 duly passed and adopted.
End of Consent Calendar. MOTIONS CARRIED.
ADJOURNMENT: Chairman Daly moved to adjourn, Board Member Lopez seconded the motion.
MOTION CARRIED. 5:52 (p.m.).
LEONORA N. SOHL
SECRETARY