2002-140CITY OF ANAHEIM
RESOLUTION NO. 2002R-
A RESOLUTION OF THE C1TY COUNCIL OF THE CITY OF
ANAHEIM APPROVING THE FORM OF AND
AUTHOR/ZING THE EXECUTION AND DELIVERY OF A
SITE AND FACILITY LEASE, A LEASE AGREEMENT, AN
ESCROW DEPOSIT AND TRUST AGREEMENT, A
PURCHASE CONTRACT AND A CONTINUING
DISCLOSLJRE AGREEMENT IN CONNECTION WITH THE
ISSUANCE OF NOT TO EXCEED $30,000,000 AGGREGATE
ORIGINAL PRINCIPAL ~vlOUNT OF ANAHEIM PUBLIC
FINANCING AUTHOR/~ LEASE REVENUE BONDS
(ANAHEIM CONVENTION CENTER PROJEC'I)
2002 SERIES A TO REFINANCE COSTS OF CERTAIN
IMPROVEMENTS TO THE ANAHEIM CONVENTION
CENTER, APPROVING THE DISTRIBUTION OF A
PRELIMINARY OFFICIAL STATEMENT IN CONNECTION
W1TH THE OFFERING AND SALE OF SAID BONDS AND
AUTHOR/ZING 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, the Anaheim Public Financing Authority (the "Authority") has been
established pursuant to Chapter 5 of Division 7 of Tide 1 of the Government C_xxte of the State of
California (the "Act"), by the Joint Exercise of Powers Agreement (the "Agreement"), dated as of
January 28, 1992, between the City and the Anaheim Redevelopment Agency for the purpose,
among others, of assisting in providing financing for public capkal improvements under the Act;
and
WHEREAS, pursuant to the Agreement, the Authority shall have all the powers
provided in the Act; and
WHEREAS, pursuant to Artide 4 of the Act, the Authority is authorized to issue
bonds for any purpose for which the Authority may cause to be issued certificates of participation in
a lease agreement with any public entity; and
WHEREAS, pursuant to that certain Lease Agreement, dated as of January 1, 1992
(the "1992 Lease"), between the City and the Community Center Authority, the City has leased from
the Community Center Authority certain parcels of real property situated in the City of Anaheim,
Orange County, State of California, and the buildings and improvements thereon (the "Leased
Premises"); and
WHEREAS, pursuant to a Trust Agreement (the "1992 Trust Agreement"), dated as
of January 1, 1992, among the City, the Community Center Authority and U.S. Bank National
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Association, as successor to Bank of America National Trust and Savings Assodation, as trustee (the
"1992 Trustee"), the 1992 Trustee has executed and delivered certificates of partidpation (the "1992
Certificates") evidencing direct, undivided fractional interests of the owners thereof in lease
payments to be made by the City pursuant to the 1992 Lease; and
WHEREAS, the City's obligations to make lease payments pursuant to the 1992
Lease are subject to prepayment as provided therein and the 1992 Certificates are subject to
redemption from such prepayments as provided in the 1992 Trust Agreement; and
WHEREAS, the City desires to make a prepayment pursuant to the 1992 Lease of
those lease payments which are evidenced by the 1992 Certificates maturing on August I of the
years 2003, 2014 and 2023 (the "Refunded Certificates"); and
WHF.~S, the City desires to provide for the defeasance of the Refunded
Certificates as provided by Section 15.01 ofihe 1992 Trust Agreement and the redemption of the
Refunded Certificates on August 1, 2002 as provided by Section 4.01(a) of the 1992 Trust
Agreement; and
WHEREAS, the funds to pay the redemption price of the Refunded Certificates will
be applied to such purpose pursuant to an Escrow Deposit and Trust Agreement by and between
the City and the 1992 Trustee (such Escrow Deposit and Trust Agreement, in the form on file with
the City Clerk, with such changes, insertions and deletions as are made pursuant to this Resolution,
being referred to herein as the "Escrow Agreement");
WHEREAS, to obtain funds necessary to provide for the defeasance and
redemption of the Refunded Certificates, the City intends to lease the Leased Premises to the
Authority pursuant to the Site and Facility Lease, by and between the City and the Authority (such
Site and Facility Lease, in the form on file with the City Clerk, with such changes, insertions and
deletions as are made pursuant to this Resolution, being referred to herein as the "Site Lease"); and
WHE~S, the Authority intends to lease the Leased Premises to the City pursuant
to the Lease Agreement, by and between the Authority and the City (such Lease Agreement, in the
form on file with the City Clerk, with such changes, insertions and deletions as are made pursuant to
this Resolution, being referred to herein as the "Lease Agreement"); and
WHEREAS, the City will agree to make lease payments pursuant to the Lease
Agreement (the "Lease Payments") in the amounts and at the times determined in accordance with
the Lease Agreement; and
WHEREAS, the Authority has determined to authorize and issue one or more Series
of bonds (the "Bonds") designated as its Lease Revenue Bonds (Anaheim Convention Center
Project) on the terms and conditions set forth in the Indenture of Trust, by and between the
Authority and BNY Western Trust Company, as trustee (the "Indenture"); and
WHEREAS, the Authority has determined to issue an initial Series of Bonds
designated as its Lease Revenue Bonds (Anaheim Convention Center Project) 2002 Series A (the
"2002 Series A Bonds") and to apply the proceeds thereof to the rental payment required under the
Site Lease; and
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WHEREAS, the City will apply the rental payment made by the Authority under the
Site Lease to a prepayment under the 1992 Lease of the Lease Payments evidenced by the Refunded
Certificates and to the defeasance and redemption of the Refunded 1992 Certificates; and
WHEREAS, the 2002 Series A Bonds are to be payable from, and secured by a
pledge of and lien on, the Revenues paid by the City pursuant to the Lease Agreement and the other
funds pledged pursuant to the Indenture; and
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934
("Rule 15c2-12') requires that, in order to be able to purchase or sell the 2002 Series A Bonds, the
underwriter thereof must have reasonably determined that the City has undertaken in a written
agreement or contract for the benefit of the holders of the 2002 Series A Bonds to provide
disclosure of certain £mancial information an~ certain material events on an ongoing basis; and
WHEREAS, in order to cause such requirement to be satisfied, the City desires to
execute and deliver the Continuing Disclosure Agreement, by and between the City and BNY
Western Trust Company, as dissemination agent (such Continuing Disclosure Agreement, in the
form on £fle with the City Clerk, with such changes, insertions and deletions as are made pursuant to
this Resolution, being referred to herein as the ~Continuing Disclosure Agreement~); and
WHEREAS, the City and the Authority have determined that securing the timely
payment of the principal of and interest on the 2002 Series A Bonds by obtaining a bond insurance
policy with respect thereto could be economically advantageous and that obtaining a reserve surety
for the 2002 Series A Bonds in lieu of providing a cash funded reserve therefor could be
economically advantageous; and
WHEREAS, the City is a member of the Authority and the Leased Premises are
located within the boundaries of the City; and
WHF. REAS, on this date, the City held a public hearing on the financing of the
Project in accordance with Section 6586.5 of the Act, which hearing was held at City Council
Chamber, City Hall East, 200 South Anaheim Boulevard, Anaheim, California; and
WHEREAS, in accordance with Section 6586.5 of the Act, notice of such hearing
was published once at least five days prior to the hearing in The Orange County Register, a
newspaper of general circulation in the City; and
WIqF.~S, there has been presented to the City Council forms of the Site Lease,
the Lease Agreement, the Escrow Agreement, a Purchase Contract (such Purchase Contract, in the
form on file with the City Clerk, with such changes, insertions and deletions as are made pursuant to
this Resolution, being referred to herein as the "Purchase Contract") for the 2002 Series A Bonds to
be entered into by the Authority, the City and the underwriter for the 2002 Series A Bonds, the
preliminary official statement in connection with the 2002 Series A Bonds (such Preliminary Official
Statement, in the form on file with the City Clerk, with such changes, insertions and deletions as are
made pursuant to this Resolution, being referred to herein as the "Preliminary Official Statement"),
the Continuing Disclosure Agreement and other related documents prepared in connection with the
proposed financing, and it is in the public interest and for the public benefit that the City authorize
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and direct execution of these documents and any other documents necessary to implement the
financing; and
WHEREAS, the documents below specified have been fred with the City and the
members of the City Council, with the aid of its staff, have reviewed said documents; and
WHEREAS, all acts, condkions 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 h~ereby DETERMINED and ORDERED as follows:
Section 1. The documents set forth below are hereby approved, and each of the
Mayor, the City Manager, the City Treasurer and the Finance Director (each such officer being
hereinafter referred to as an "Authorized Officer"), acting alone, is hereby authorized and
empowered to execute said documents by manual or facsimile signature and deliver said documents,
in substantially the forms on file with the City Clerk, with such changes, insertions and deletions as
may be necessary to carry out the intent of this Resolution and as are approved by the City Attorney
and the Authorized Officer executing such document, such approval to be conclusively evidenced
by the execution thereof, and the City Clerk is hereby authorized and directed to attest to such
Authorized Officer's signature:
(a) the Site Lease by and between the City, as lessor, and the Authority, as lessee;
(b) the Lease Agreement, relating to certain land and improvements, by and
between the Authority, as lessor, and the City, as lessee;
(c) the Escrow Agreement, relating to the Refunded Certificates, by and between
the City and the 1992 Trustee;
(d) the Purchase Contract for the 2002 Series A Bonds, by the Authority, the
City and the underwriter for the 2002 Series A Bonds; and
(e) the Continuing Disclosure Agreement, relating to the City's continuing
disclosure obligations with respect to the 2002 Series A Bonds, by and between the City and BNY
Western Trust Company, as dissemination agent.
Section 2. Each Authorized Officer, acting alone, is hereby authorized and
empowered to: (i) prepare, or cause to be prepared the Preliminary Official Statement substantially
in the form on fde with the City Clerk, with such changes, insertions and deletions as shall be
approved by the Authorized Officer preparing, or causing the preparation of, the Preliminary
Official Statement, and the City Attorney; and (ii) to prepare, or cause to be prepared the final
official statement in connection with the 2002 Series A Bonds (the "Official Statement")
substantially in the form of the Preliminary Official Statement with such changes, insertions and
deletions therein as may be necessasy to cause the same to carry out the intent of this Resolution and
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as are approved by the City Attorney, such approval to be conclusively evidenced by the execution
thereof. Each Authorized Officer, acting alone, is hereby authorized and empowered to deliver the
Preliminary Official Statement to the underwriter for the 2002 Series A Bonds, and to execute and
deliver the Official Statement to the underwriter for the 2002 Series A Bonds, in each case for
purposes of marketing the 2002 Series A Bonds.
Section 3. Each Authorized Officer, acting alone, is hereby authorized and
empowered to obtain credit-enhancement for the 2002 Series A Bonds in the form of municipal
bond insurance on such terms and conditions, and at such prices as shall be approved by an
Authorized Officer; provided, however, that all costs of such credit-enhancement shall be paid out
of the proceeds of the sale of the 2002 Series A Bonds. Each Authorized Officer, acting alone, is
hereby authorized and empowered to execute and deliver a contract for such insurance if such
contract is deemed by such Authorized Offic~er executing the same to be a condition to the delivery
of such insurance, such determination to be~ conclusively evidenced by such Authorized Officer's
execution and delivery of such contract. Each 'Authorized Officer, acting alone, is hereby authorized
and empowered to apply for and obtain a reserve surety for the 2002 Series A Bonds. Each
Authorized Officer, acting alone, is hereby authorized and empowered to execute and deliver a
contract for such reserve surety if such contract is deemed by such Authorized Officer executing the
same to be a condition to the delivery of such reserve surety, such determination to be conclusively
evidenced by such Authorized Officer's execution and delivery of such contract.
Section 4. Each Authorized Officer, acting alone, is hereby authorized and
empowered to certify on behalf of the City that the Preliminary Official Statement and the Official
Statement are each deemed final as of their respective dates, within the meaning of Rule 15c2-12.
Section 5. All actions taken by any member of the City Council or any officer or
employee of the City with respect to the documents approved above and the lease fmancing are
hereby approved, confirmed and ratified, and the members of the City Council, the officers and
employees of the City and their authorized deputies and agents are hereby authorized and directed,
acting severally, to execute such other agreements, documents and certificates, and to take such
other actions, as may be necessary to effect the purposes of this Resolution and the lease financing
herein authorized.
Section 6. This Council determines that use of the Act to assist the City in
financing the Project will result in significant public benefits to the citizens of the City in refinancing
the costs of certain improvements to the Anaheim Convention Center because it is expected that
such use will result in demonstrable savings in effective interest rate, bond underwriting and bond
issuance costs in implementing the structure for the 2002 Series A Bonds described in the Indenture.
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 1 ! th day of June ,2002.
I~A'YOR OF THE CITY ~F
Attest:
C/1TY CLEI~K OF ~%-IE 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-140 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 11th day of June, 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
~31TY CLERK OF THE CITY OF ANAHEIM
(SEAL)