1986/10/31Hall Anaheim
PRESENT
ABSENT'.
PRESENT
California - COUNCIL MINUTES - Octob~10:00 A.M.
The City Council of the City of Anaheim met in a Special Meeting.
COUNCIL MEMBERS: Kaywood, Overholt, Pickler and Roth
COUNCIL MEMBERS: Bay
ASSISTANT CITY MANAGER: Ron Bates
CITY ATTORNEY: Jack White
CITY CLERK: Leonora N. Sohl
CITY TREASURER: Mary Turner
PUBLIC UTILITIES GENERAL MANAGER: Gordon Hoyt
UTILITIES FINANCIAL SERVICES MANAGER: Michael Bell
Mayor Roth called the Special Meeting to Order at 2:05 p.m. on October 31,
1986, noting that written Notice of Special Meeting had been authorized by him
and delivered to news media and all Council Members 24 hours in advance of
this special meeting in accordance with Section 507 of the City Charter.
175/137: SALE OF ELECTRIC REVENUE BONDS FOR THE PURPOSE OF ADVANCE REFUNDING
Public Utilities General Manager
introduced representatives from Mudge, Rose, Guthrie and Ferdon; Rourke and
Woodruff; James J. Lowrey and Salomon Brothers. He referred to his memorandum
dated October 3, 1986 in which he recommends that the City Council this date
take action to approve two letter agreements, employing Mudge Rose Guthrie
Alexander & Ferdon and Rourke & Woodruff as co-bond counsel, and James J.
Lowrey & Company as Financial Advisor for this bond sale. Further that the
City Council adopt two resolutions authorizing the issuance of $77,780,000
principal amount of electric revenue bonds and approving a bond purchase
agreement.
Mr. Hoyt explained that the necessity for calling the special meeting of the
Anaheim City Council was to take advantage of an unusually good bond market.
The overall savings from the proposed sale will amount to 10.8 million over
the life of the bonds, or annual savings of $620,000 beginning in 1991. He
introduced and complimented Michael Bell, Utilities Financial Services
Manager, on his efforts to put this refunding issue together.
Mr. Bell described the process by which they watched the market over the past
month and a half to determine the most optimum timing for the issue which
would result in the highest level of savings.
Margaret Chan, Managing Underwriter, Salomon Brothers, reviewed in detail the
document entitled "Bid Submitted for $77,780,000 City of Anaheim, California,
Electric Revenue Bonds, Second Issue of 1986." The terms of the bid indicate
a net interest cost of 6.7010%, and true interest (allowable under IRS rules)
of 6.6336%
Michael W. Geffrard, representing James J. Lowrey & Company, recommended as
the financial advisor, that the City Council accept the bid from Salomon
Brothers, that the interest rate is an excellent one, and one which reaffirms
Anaheim's strong credit rating, and strong reputation in the credit market.
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City Hall~ Anaheim~ California - COUNCIL MINUTES - October 31, 1986, 10:00 A.M.
MOTION: On motion by Councilwoman Kaywood, seconded by Councilman Overholt,
the City Council approved letter agreements with Mudge Rose Guthrie Alexander
& Ferdon and Rourke & Woodruff as co-bond counsel; and with James J. Lowrey &
Company as financial advisor for the sale of electric revenue bonds for the
purpose of advance refunding of certain outstanding bonds. MOTION CARRIED
(Councilman Bay absent.)
Councilman Pickler offered Resolution Nos. 86R-490 and 86R-491 for adoption.
Refer to Resolution Book.
RESOLUTION NO. 86R-490: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, AUTHORIZING THE ISSUANCE OF $77,780,000 PRINCIPAL AMOUNT
OF ELECTRIC REVENUE BONDS, SECOND ISSUE OF 1986, OF THE CITY; PROVIDING THE
TERMS AND CONDITIONS FOR THE ISSUANCE OF SUCH BONDS; AND APPROVING THE
EXECUTION AND DELIVERY OF AN ESCROW AGREEMENT IN CONNECTION THEREWITH.
RESOLUTION NO. 86R-491: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, APPROVING BOND PURCHASE AGREEMENT RELATING TO ELECTRIC
REVENUE BONDS, SECOND ISSUE OF 1986, AND AUTHORIZING THE EXECUTION, DELIVERY
AND PERFORMANCE THEREOF; APPROVING OFFICIAL STATEMENT RELATING TO SAID BONDS;
APPOINTING PAYING AGENT FOR SAID BONDS; AND AUTHORIZING OFFICERS OF THE CITY
TO DO ALL OTHER THINGS NECESSARY OR ADVISABLE THEREFOR.
Roll Call Vote:
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Kaywood, Overholt, Pickler and Roth
None
Bay
The Mayor declared Resolution Nos. 86R-490 and 86R-491 duly passed and adopted.
Mayor Roth commended the Utilities Department and all those involved in the
subject bond issue, noting that both staff and Council are continually
searching for ways to save the taxpayer money, and that this action is
representative of "The Anaheim Way".
ADJOURNMENT: Councilman Roth moved to adjourn. Councilwoman Kaywood seconded
the motion. Councilman Bay was absent. MOTION CARRIED. (3:35 p.m.)
LEONORA N. SOHL, CITY CLERK
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