2002-041CITY OF ANAHEIM
RESOLUTION NO. 2002R- _41
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM APPROVING THE FORM OF AND
AUTHORIZING THE EXECUTION AND DELIVERY OF A
STANDBY CERTIFICATE PURCHASE AGREEMENT,
APPROVING THE SUBSTITUTION THEREOF FOR AN
EXISTING STANDBY CERTIFICATE PURCHASE
AGREEMENT, AUTHORIZING THE DISTRIBUTION OF A
SUPPLEMENT TO OFFICLSL STATEMENT IN
CONNECTION THEREWITH AND AUTHORIZING THE
EXECUTION OF NECESSARY DOCUMENTS AND
CERTIFICATES AND RELATED ACTIONS
RESOLVED, by the City Council of the City of Anaheim (the "City"), as follows:
WHEREAS, pursuant to a Trust Agreement, dated as of January 1, 1993 (the "Trust
Agreement"), by and among Bank of America National Trust and Savings Association, as prior
trustee, the Anaheim Public Improvement Corporation and the City, the City caused to be executed
and delivered $130,100,000 original aggregate principal amount of variable rate Certificates of
Participation (1993 Refunding Projects) (the "Certificates");
WHEREAS,
the City entered into
as of January 1,1993,
in order to provide for fLxed interest payments with respect to the Certificates,
an Interest Rate Swap Agreement (the "Interest Rate Swap Agreement"), dated
with AIG Financial Products Corp. ("AIG");
WHEREAS, in order to provide liquidity support for the purchase of tendered Certificates,
the City entered into a Letter of Credit and Reimbursement Agreement, dated as of January 1,1993,
with The Industrial Bank of Japan, Limited, Los Angeles Agency ("IBJ"), pursuant to which IBJ
issued its irrevocable direct-pay letter of credit xvith respect to the Certificates (the "IBJ Letter of
Credit");
WHEREAS, in order to provide assurance as to the liquidity support for the purchase of
tendered Certificates after expiration of the IBJ Letter of Credit, the City entered into a Liquidity
Guaranty Agreement, dated as of January 1, 1993 (the "Liquidity Guaranty Agreement"), xvith AIG;
WHEREAS, pursuant to the Liquidity Guaranty Agreement, AIG had the right, under the
circumstances described therein, to direct the City to terminate the IBJ Letter of Credit prior to the
expiration thereof, and AIG so directed;
WHEREAS, upon such direction, the City entered into a Standby Certificate Purchase
Agreement, dated as of April 16, 1996 (the "ABN AMRO Standby Agreement") with ABN AMRO
Bank N.V., acting through its Los Angeles International Branch ("ABN AMRO") in order to
provide assurance as to the liquidity support for the purchase of tendered Certificates;
WHEREAS, pursuant to the Liquidity Guaranty Agreement, AIG has the right, under the
circumstances described therein, to direct the City to terminate the ABN AMRO Standby
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Agreement prior to the expiration thereof, and AIG has directed the City to terminate the ABN
AMRO Standby Agreement prior to the expiration thereof, and AIG has so directed;
WHEREAS, AIG has proposed that the liquidity support for the purchase of tendered
Certificates be provided by Bayerische Landesbank Girozentrale, acting through its New York
Branch ("BLB"), pursuant to a Standby Certificate Purchase Agreement by and between the City
and BLB (such Standby Certificate Purchase Agreement,'in the form presented to the City Council
at this meeting, with such changes, insertions and omissions as are made pursuant to this Resolution,
being referred to herein as the "BLB Standby Agreement");
WHEREAS, a form of the Supplement to Official Statement dated January 6, 1993 to be
distributed in connection with the substitution of the BLB Standby Agreement for the ABN AMRO
Standby Agreement and the remarketing of the Certificates with the benefits thereof has been
prepared (such Supplement to Official Statement, in the form presented to the City Council at this
meeting, with such changes, insertions and omissions as are made pursuant to this Resolution, being
referred to herein as the "Supplement to Official Statement");
WHEREAS, all acts, conditions and things required by the laws of the State of California to
exist, to have happened and to have been performed precedent to and in connection with the
consummation of the transactions authorized hereby do exist, have happened and have been
performed in regular and due time, form and manner as required by law, and the City is now duly
authorized and empowered, pursuant to each and every requirement of law, to consummate such
transactions for the purpose, in the manner and upon the terms herein provided;
NOW, THEREFORE, it is hereby DETERMINED and ORDERED as follows:
Section l.
sc) finds.
All of the recitals herein contained are true and correct and this City Council
Section 2. The BLB Standby Agreement, in substantially the form on file with the City
Clerk and made a part hereof as though set forth in full herein, is hereby approved, and the Mayor,
the City Manager, the City Treasurer and the Finance Director (collectively, the "Authorized
Officers") are each hereby authorized and directed, for and in the name and on behalf of the City, to
execute and deliver the BLB Standby Agreement in substantially said form, with such changes
therein as the Authorized Officer executing the same may require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 3. The termination of the ABN AMRO Standby Agreement and the
substitution therefor of the BLB Standby Agreement is hereby approved and the Authorized
Officers are hereby authorized and directed, for and in the name and on behalf of the City, to take
such actions and to execute and deliver such notices, certificates and representations as are necessary
or appropriate to effect such termination and substitution.
Section 4. The Supplement to Official Statement, in substantially the form on file with
the City Clerk and made a part hereof as though set forth in full herein, is hereby approved, and the
Authorized Officers are each hereby authorized and directed, for and in the name and on behalf of
the City, to certify that the Supplement to Official Statement has been "deemed final" for purposes
of Rule 15c2-12 promulgated under the Securities Exchange Act of 1934. The Authorized Officers
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are, and each of them is, hereby authorized and directed, for and on behalf of the City, to execute
the Supplement to Official Statement in the form presented to this meeting, with such changes,
insertions and omissions as the Authorized Officer executing the same may require or approve, such
requirement or approval to be conclusively evidenced by the execution of the Supplement to
Official Statement by such Authorized Officer. The use of the Supplement to Official Statement in
connection with the substitution of the BLB Standby Agreement for the ABN AMRO Standby
Agreement and the remarketing of the Certificates with the benefits thereof in substantially said
form, with such changes therein as the Authorized Officer executing the same may require or
approve, such approval to be conclusively evidenced by the execution and delivery thereof.
Section 5. The officers and employees of the City are hereby authorized and directed,
jointly and severally, to do any and all things which they may deem necessary or appropriate in order
to consummate the transactions herein authorized and otherwise to carry out, give effect to and
comply with the terms and intent of this Resolution.
Section 6. All actions heretofore taken by the officers and employees of the City with
respect to the transactions herein authorized above are hereby approved, confirmed and ratified.
Section 7. This Resolution shall take effect immediately upon its adoption.
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The FOREGOING RESOLUTION was approved and adopted by the City Council of the
City of Anaheim this 26th day of February, 2002.
Attest:
iZITY CL~RK oF THE CITY OF ANAHEIM
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STATE Of CALIFORNIA )
COUNTY Of ORANGE ) ss.
CiTY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 2002R-41 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 26th day of February, 2002, by the following vote of the
members thereof:
AYES:
MAYOR/COUNCIL MEMBERS: Feldhaus, Kring, Tait, McCracken, Daly
NOES:
MAYOR/COUNCIL MEMBERS: None
ABSTAINED:
MAYOR/COUNCIL MEMBERS: None
ABSENT:
MAYOR/COUNCiL MEMBERS: None
CI'('Y CLERK'~)F THI~ CITY OF ANAHEIM
(SEAL)