APFA 2002-3ANAHEIM PUBLIC FiNANCING AUrHO~
RESOLUTION NO. APFA2002-3
A RESOLUTION OF THE ANAHEIM PUBLIC FiNANCING
ALrI~ORrYY AUTHORIZiNG THE ISSUANCE OF NOT TO
EXCEED $30,000,000 AGGREGATE ORIGINAL PRINCIPAL
AMOUNT OF ITS LEASE REVENUE BONDS (ANAHEIM
CONVENTION CENTER PROJECT) 2002 SERIES A TO
REFINANCE COSTS OF CERTAIN IMPROVEMENTS TO
THE ANAHEIM CONVENTION CENTER AND PROVIDING
THE TERMS AND CONDITIONS FOR THE ISSUANCE OF
SAID BONDS, APPROVING THE FORM OF AND
AUTHORIZING THE EXI~CUTION AND DELIVERY OF AN
INDENTURE, A SITE AND FACILITY LEASE, A LEASE
AGREEMENT, A PURCHASE CONTRACT AND A WRHTEN
CONSENT IN CONNECTION THEREWITH, APPROVING
THE DISTRIBUTION OF A PRELIMINARY OFFICIAL
STATEMENT IN CONNECTION WITH THE OFFERING
AND SALE OF SAID BONDS AND AUTHORIZiNG THE
EXECUTION OF NECESSARY DOCUMENTS AND
CERTIFICATES AND RELATED ACTIONS
WHEREAS, the Anaheim Public Financing Authority (the "Audaority') has been
established pursuant to Chapter 5 of Division 7 of Title I of the Government Code 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 of Anaheim, California (the "City") and the Anaheim
Redevelopment Agency for the purpose, among others, of assisting in providing financing for public
capital 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 Article 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
Association, as successor to Bank of America National Trust and Savings Association, as trustee (the
"1992 Trustee"), the 1992 Trustee has executed and delivered certificates of parddpation (the "1992
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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
WHEREAS, the City desires to provide for the defeasance of the Refunded
Certificates as provided by Section 15.01 of the 1992 Trust Agreement and the redemption of the
Refunded Certificates on August 1, 2002las provided by Section 4.01(a) of the 1992 Trust
Agreement; and
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 Secretary to the Board of Directors of the
Authority, with such changes, insertions and deletions as are made pursuant to this Resolution,
being referred to herein as the "Site Lease"); and
WHEREAS, 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 Secretary to the Board of Directors of the Authority, 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 "Trustee") (such Indenture of Trust, in
the form on file with the Secretary to the Board of Directors of the Authority, with such changes,
insertions and deletions as are made pursuant to this Resolution, being referred to herein as 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
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
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WHERF~S, 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, in connection with the execution and delivery of the Ske Lease, the
City will satisfy the requirements of Section 8.2 of the 1992 Lease;
WHEREAS, pursuant to Section 8.2 of the 1992 Lease, the City has requested the
written consent of the Authority to the sublease of the Leased Premises pursuant to the Site Lease
(the "Written Consent"); 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 econorr~ically advantageous and that obtaining a reserve surety
for the 2002 Series A Bonds in lieu of p¥oviding a cash funded reserve therefor could be
economically advantageous; and
WHF. REAS, there is on file with the Secretary to the Board of Directors of the
Authority the following:
(1) A proposed form of the Indenture to be entered into between the
Authority and the Trustee, providing for the authorization and issuance of the
Bonds; and
(2) A proposed form of the Site Lease to be entered into by the City and
the Authority; and
(3) A proposed form of the Lease Agreement to be entered into by the
Authority and the City; and
(4) A proposed form of a Purchase Contract (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; and
(5) A proposed form of a preliminary offidal statement to be distributed
in connection with the offering and sale of the 2002 Series A Bonds; and
(6) A proposed form of the Written Consent to be executed by the
Authority; and
NOW, THEREFORE, BE IT RESOLVED by the members of the Board of
Directors of the Anaheim Public Financing Authority, as follows:
Section 1. The issuance of the 2002 Series A Bonds in the aggregate original
principal amount not exceeding Thirty Million Dollars ($30,000,000) on the terms and conditions set
forth herein and in, and subject to the limitations specified in, the Indenture is hereby authorized
and approved.
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The 2002 Series A Bonds shall be designated the "Anaheim Public Financing
Authority Lease Revenue Bonds (Anaheim Public Improvements Project) 2002 Series A.'
The 2002 Series A Bonds shall not constitute a general obligation of the Authority or
a charge against the general assets of the Authority but shall be payable solely from, and secured
solely by, the Lease Payments paid by the City under the Lease Agreement and the other funds
pledged therefor pursuant to the Indenture. The 2002 Series A Bonds shall not constitute an
obligation of any member of the Authority.
The 2002 Series A Bonds will be issued from time to time in such aggregate original
principal amount or amounts (subject to the limitations contained in the first sentence of this
Section 1), will be dated such date or dates, will bear interest at such rate or rates (which interest on
any 2002 Series A Bond may be fixed or variable and tax-exempt or taxable for federal income tax
purposes), will be subject to redemption, tinduding redemption from mandatory sinking fund
payments, will be issued in the form, and will be as otherwise provided in the Indenture executed
and delivered pursuant to Section 2 hereof; provided, that, the true interest cost of the
2002 Series A Bonds shall not exceed six percent (6.00%) per annum and the final maturity of the
2002 Series A Bonds shall not extend beyond twenty-five (25) years from the effective date of the
Indenture.
The proceeds of the sale of the 2002 Series A Bonds, including any accrued interest
and premium, will be applied simultaneously with the delivery of such 2002 Series A Bonds as
provided in the Indenture.
Section 2. The form, terms and provisions of the Indenture in the form on file
with the Secretary to the Board of Directors of the Authority are hereby approved, and each
member of the Board of Directors of the Authority and the Executive Director of the Authority
(each such member of the Board of Directors of the Authority and the Executive Director being
hereinafter referred to as an "Authorized Officer"), acting alone, is hereby authorized and
empowered to execute by manual or facsimile signature and deliver the Indenture to the Trustee
with such changes, insertions and deletions therein as may be necessary to cause the same to carry
out the intent of this Resolution and as are approved by counsel to the Authority, such approval to
be conclusively evidenced by the execution thereof. Such changes shall include changing the
designation of the 2002 Series A Bonds, the deposit of 2002 Series A Bond proceeds and other
moneys held under the Indenture into new subaccounts within the funds and accounts currently
described in the Indenture, the establishment of funds and accounts to separately account for the
proceeds of the 2002 Series A Bonds and interest earnings thereon, any changes required by a
provider of credit enhancement or a reserve surety for the 2002 Series A Bonds which is not
inconsistent with this Resolution, any changes necessary to ensure compliance with federal tax law,
conforming changes among documents consistent with this Resolution and any other change as may
be necessary to cause the same to carry out the intent of this Resolution.
Section 3. The form, terms and provisions of the Site Lease in the form on file
with the Secretary to the Board of Directors of the Authority are hereby approved, and each
Authorized Officer acting alone, is hereby authorized and empowered to execute by manual or
facsimile signature and deliver the Site Lease with such changes, insertions and deletions therein as
may be necessary to cause the same to carry out the intent of this Resolution and as are approved by
counsel to the Authority, such approval to be conclusively evidenced by the execution thereof.
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Section 4. The form, terms and provisions of the Lease Agreement in the form
on file with the Secretary to the Board of Directors of the Authority are hereby approved, and each
Authorized Officer acting alone, is hereby authorized and empowered to execute by manual or
facsimile signature and deliver the Lease Agreement with such changes, insertions and deletions
therein as may be necessary to cause the same to carry out the intent of this Resolution and as are
approved by counsel to the Authority, such approval to be conclusively evidenced by the execution
thereof.
Section 5. The form, terms and provisions of the Purchase Contract in the form
on file with the Secretary to the Board of Directors of the Authority are hereby approved, and each
Authorized Officer acting alone, is hereby authorized and empowered to execute by manual or
facsimile signature and deliver the Purchase Contract for the 2002 Series A Bonds, with such
changes, insertions and deletions therein as are consistent with the limitations on
2002 Series A Bonds contained in this Res4ution and as may be necessary to cause the same to
carry out the intent of this Resolution and are. approved by counsel to the Authority, such approval
to be conclusively evidenced by the execution thereof.
The Authorized Officer executing the Purchase Contract on behalf of the Authority
is hereby authorized and empowered to determine the price to be paid for the 2002 Series A Bonds
pursuant to the Purchase Contract; provided, that, such price shall not be less than ninety-five
percent (95%) of the aggregate principal amount of the 2002 Series A Bonds purchased plus accrued
interest.
Section 6. The form, terms and provisions of the Written Consent in the form
on file with the Secretary to the Board of Directors of the Authority are hereby approved, and each
Authorized Officer acting alone, is hereby authorized and empowered to execute by manual or
facsimile signature and deliver the Written Consent with such changes, insertions and deletions
therein as may be necessary to cause the same to carry out the intent of this Resolution and as are
approved by counsel to the Authority, such approval to be conclusively evidenced by the execution
thereof.
Section 7. Each Authorized Officer, acting alone, is hereby authorized and
empowered to: (i) prepare, or cause to be prepared, the preliminary official statement in connection
with the 2002 Series A Bonds (the "Preliminary Official Statement") substantially in the form on file
with the Secretary to the Board of Directors of the Authority, which such changes, insertions and
deletions as shall be approved by the Authorized Officer preparing, or causing the preparation of,
the Preliminary Offidal Statement, and counsel to the Authority; and (ii) to prepare, or cause to be
prepared, the final official statement in connection with the 2002 Series A Bonds (collectively, the
"Official Statement") substantially in the form of the Preliminary Official Statement wkh such
changes, insertions and deletions therein as may be necessary to cause the same to carry out the
intent of this Resolution and as are approved by counsel to the Authority, 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 8. The Chairman or Vice Chairman of the Board of Directors of the
Authority, and each of them, acting alone, is hereby authorized and directed to execute, by manual
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or facsimile signature, each of the 2002 Series A Bonds, and the Secretary or an Assistant Secretary
of the Authority, and each of them, acting alone, is hereby authorized and directed to attest, by
manual or facsimile signature, thereto, in the name and on behalf of the Authority, in accordance
with the Indenture and in the form set forth in the Indenture.
Section 9. The 2002 Series A Bonds, when executed as provided in Section 8
hereof, shall be delivered to the Trustee for authentication by the Trustee. The Trustee is hereby
requested and directed to authenticate and register the 2002 Series A Bonds so delivered by
executing the appropriate Certificate of Authentication appearing thereon, and to deliver such
2002 Series A Bonds, when duly executed, authenticated and registered, to the purchasers thereof in
accordance with written instructions executed on behalf of the Authority by any Authorized Officer
which instructions said Authorized Officer is hereby authorized and directed, for and in the name of
and on behalf of the Authority, to execute and to deliver to the Trustee. Such instructions shall
provide for the delivery of such 2002 Series ~k Bonds to the purchaser thereof upon payment of the
purchase price therefor.
Section 10. Orrick, Herrington & Sutcliffe LLP is hereby appointed as bond
counsel for the 2002 Series A Bonds and Public Financial Management, Inc. is hereby appointed as
£mancial advisor to the Authority in connection with the issuance of the 2002 Series A Borrls. UBS
PaineWebber Incorporated is hereby appointed as the Underwriter for the 2002 Series A Bonds.
Section 11. 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 Officer 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 condusively
evidenced by such Authorized Officer's execution and delivery of such contract.
Section 12. In making any determination with respect to the
2002 Series A Bonds, the Indenture, the Site Lease, the Lease Agreement, the Purchase Contract, the
Preliminary Official Statement or the Written Consent or in taking any other action required or
authorized to be taken pursuant to this Resolution, each Authorized Officer shall be subject to the
provisions of this Resolution.
Section 13. Each Authorized Officer, acting alone, is hereby authorized and
empowered to certify on behalf of the Authority 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 promulgated under the Securities Exchange Act of 1934.
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Section 14. All actions heretofore taken by the members of the Board of
Directors, the officers and the agents of the Authority with respect to the issuance and sale of the
2002 Series A Bonds are hereby approved, confirmed and ratified, and the members of the Board of
Directors, the officers and agents of the Authority and their authorized deputies and agents are
hereby authorized and directed, acting severally, to do any and all things and to execute and deliver
any and all certificates and other documents, in addition to those enumerated herein, including the
preparation and distn'bution of any offering material, which they or counsel to the Authority may
deem necessary or advisable in order to consummate the issuance, sale and delivery of the
2002 Series A Bonds and otherwise to effectuate the purposes of this Resolution.
Section 15. This Resolution shall take effect from and after its adoption.
PASSED AND ADOPTED by the Board of Directors of the Anaheim Public
Financing Authority this lSth dayof June ,2002.
I, the undersigned, the duly appointed, and qualified Secretary of the Anaheim Public
Financing Authority, DO HEREBY CERTIFY that the foregoing resolution was duly adopted by
the Board of Directors of said Authority at a duly called meeting of the Board of Directors of said
Authority held in accordance with hw on June 18 ,2002.
By:
Anaheim Public Financing rity
Secretary
Anaheim Public Financing Authority
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, Secretary of the Board of Directors of the Anaheim Public
Financing Authority, do hereby certify that the foregoing Resolution No. APFA2002-3 was
introduced and adopted at a special meeting provided by law, of the Board of Directors of the
Anaheim Public Financing Authority held on the 11th day of June, 2002, by the following vote of
the members thereof:
AYES: BOARD MEMBERS: Feldhaus, Kring, Tait, McCracken, Daly
NOES: BOARD MEMBERS: None
ABSENT: BOARD MEMBERS: None
ABSTAINED: BOARD MEMBERS: None
O~LIC'
/SECRETARY THE ANAHEIM
FINANCING AUTHORITY
(SEAL)