APFA 1998-1ANAHEIM PUBLIC FINANCING AUTHORITY RESOLUTION NO. APFA98-1
RESOLUTION OF 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; ( 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; (IV) AUTHORIZING THE DELIVERY OF A
PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT; AND (V)
TAKING CERTAIN ACTIONS IN CONNECTION THEREWITH
WHEREAS, the City of Anaheim (the "City") and the Anaheim Redevelopment Agency
have heretofore entered into a Joint Exercise of Powers Agreement establishing the Anaheim
Public Financing Authority (the "Authority") for the purpose, among others, of issuing the
Authority's bonds to be used to provide financial assistance to the City; and
WHEREAS, it has been proposed that the Authority assist the City in the financing of
certain electrical distribution facilities which will be part of the Electric System of the City (the
"Facilities"); and
WHEREAS, it has been proposed that the Authority acquire and construct the Facilities
and that the City purchase such Facilities from the Authority pursuant to an Installment Purchase
Agreement, dated as of April 1, 1998, by and between the City and the Authority (together, the
"Installment Purchase Agreement"), the proposed form of which has been presented to this City
Council, pursuant to which the City will agree to make certain purchase payments (the "Purchase
Payments") in connection therewith; and
WHEREAS, the Authority and the City have determined that it would be in the best
interests of the Authority, the City and the citizens of the City to authorize, pursuant to the
Indenture of Trust, dated as of April 1, 1998, by and among the Authority, the City and Union
Bank of California, N.A., Los Angeles, California, as Trustee (the "Trustee") (the "Indenture"), to
provide for issuance of revenue bonds of the Authority (the "Bonds") in an aggregate principal
amount not to exceed $65,000,000 under the provisions of Article 4 (commencing with Section
6584) of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the
"Act") and to provide for the use of the proceeds of the Bonds to construct and acquire the
Facilities; and
WHEREAS, the Authority also wishes to approve and authorize the execution and
delivery of a Continuing Disclosure Agreement dated as of April 1, 1998 (the "Continuing
Disclosure Agreement"), by and among the Authority, the City and the Trustee, to provide for
disclosure of information relating to the Electric System and the Bonds; and
WHEREAS, the Authority and the City may wish to secure a commitment from a provider
of municipal bond insurance to issue a municipal bond insurance policy insuring the Bonds and a
Reserve Account Policy (as such term is defined in the Indenture of trust hereafter approved),
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subject to the terms and conditions set forth therein and in this Resolution (the "Insurance
Commitment") and the Authority now desires to approve the execution of said Insurance
Commitment under the terms and conditions hereinafter set forth; and
WHEREAS, this Board deems it necessary and proper that proposals be invited for the
purchase of the Bonds, and that the Bonds be sold in the manner described below;
WHEREAS, the Authority has determined that it is in the best public interest of the
Authority and the citizens of the City to approve certain documents mentioned above and
authorize and approve the transactions contemplated thereby; and
NOW, THEREFORE, the Board of Directors of the Anaheim Public Financing Authority
does hereby resolve, determine and order as follows:
SECTION 1: The recitals hereof are true and correct and are hereby incorporated by
reference into this Resolution. Pursuant to the Act, the Board of Directors of the Anaheim Public
Financing Authority hereby finds and determines that the issuance of the Bonds will result in
savings in effective interest rates, bond underwriting costs and bond issuance costs and thereby
result in significant public benefits to its members within the contemplation of Section 6586 of the
Act.
SECTION 2: That the Installment Purchase Agreement, the Indenture, and the
Continuing Disclosure Agreement presented to tiffs Board are hereby approved. Union Bank of
California, N.A., Los Angeles, California, is hereby appointed to serve as trustee under the
Indenture. The Chairman, Vice Chairman, Secretary and Treasurer of the Authority are
authorized and directed for and in the name of the Authority to execute and deliver said
agreements, and any Insurance Commitment relating to a municipal bond insurance policy secured
in accordance with the provisions hereof.. The agreements shall be executed in the forms hereby
approved, with such additions thereto and changes therein as are approved in accordance with
Section 10 hereof, such approval to be conclusively evidenced by the execution and delivery
thereof.
SECTION 3: That this Board of Directors hereby approves the issuance of the Bonds by
the Authority in accordance with the terms and provisions of the Indenture (as executed and
delivered). The Public Utilities General Manager (the "General Manager") and the Assistant
General Manager, Finance & Administration (the "Finance Manager"), or either of them, acting as
agent for the Authority pursuant to Section 3.02 of the Installment Purchase Agreement, shall
accept the bid of the highest responsible bidder or bidders or reject all bids in accordance with any
notice inviting bids with respect to the Bonds.
SECTION 4: The General Manager and the Finance Manager is each hereby authorized,
as the Authority's agent, to approve a Notice Inviting Bids for the Bonds in substantially the form
of such Notice Inviting Bids presented at this meeting (such approval to be conclusively
evidenced by the distribution thereof) . The Executive Director of the Authority is hereby
authorized and directed to cause the Notice Inviting Bids for the Bonds to be distributed to
prospective bidders for the Bonds upon their request.
SECTION 5: Sealed proposals for the purchase of the Bonds shall be received by the
General Manager and the Finance Manager, or either of them, at the date, time and place
provided for in a Notice Inviting Bids for the Bonds or at such other dates and times as shall be
determined by the General Manager or the Finance Manager.
SECTION 6: The General Manager and the Finance Manager is each hereby authorized,
as agent of the Authority, to approve a Notice of Intention to Sell Bonds (such approval to be
conclusively evidenced by the distribution thereof). The Executive Director of the Authority is
hereby authorized and directed to cause a Notice of Intention to Sell Bonds to be distributed to
prospective bidders for the Bonds upon their request. The Authority's distribution of the Notice
of Intention to Sell Bonds shall constitute the Authority's notice of a public sale and the Authority
shall not be required to provide notice pursuant to Section 53692 of the California Government
Code.
SECTION 7: The General Manager and the Finance Manager, as agent for the
Authority, may withdraw or modify the Notice Inviting Bids for the Bonds and the Notice of
Intention to Sell Bonds, or either, at any time by notice published via Munifacts wire or other
means determined by the General Manager and the Finance Manager, or either of them, to be
reasonably calculated to reach potential bidders for the Bonds. If the Manager should withdraw
the Notice Inviting Bids for the Bonds or the Notice of Intention to Sell Bonds at any time before
the Bonds are awarded, and should at a later date determine that it is desirable to receive bids for
the Bonds, then the Executive Director of the Authority is hereby authorized to redistribute the
Notice Inviting Bids for the Bonds and the Notice of Intention to Sell Bonds with such
modifications or revisions as are approved by the General Manager or the Finance Manager.
SECTION 8: The General Manager and the Finance Manager is each hereby authorized,
as the agent of the Authority, to approve the Preliminary Official Statement relating to the Bonds
in substantially the form presented to this meeting (such approval to be conclusively evidenced by
the delivery thereof) (the "Preliminary Official Statement") and the Board hereby approves the use
of the Preliminary Official Statement in connection with the offering and sale of the Bonds. The
Continuing Disclosure Agreement presented at this meeting is hereby approved. The General
Manager is authorized to deem the Preliminary Official Statement to be final within the meaning
of Securities and Exchange Commission Rule 15c2-12 subject to the completion of those items
permitted by said Rule. The General Manager is hereby authorized to approve and execute on
behalf of the Authority the final Official Statement relating to the Bonds (such approval to be
conclusively evidenced by the execution and delivery thereof) (the "Official Statement"), and the
Board hereby approves the use of the Official Statement by the successful bidder in connection
with the offering and sale of the Bonds, and the Board hereby further approves the use by the
successful bidder of any supplement or amendment to the final Official Statement which is
necessary so that the final Official Statement does not include any untrue statement of a material
fact and does not omit to state a material fact necessary to make the statements therein not
misleading.
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SECTION 9: The Executive Director of the Authority and the General Manager and the
Finance Manager are authorized to cause to be furnished to prospective bidders for the Bonds,
upon their request, a reasonable number of copies of the Notice Inviting Bids for the Bonds, the
Preliminary Official Statement and the final Official Statement.
SECTION 10: The agreements approved in Section 2 of this Resolution shall, when
executed and delivered pursuant to Section 2 of this Resolution, contain such additions and
changes (including additions and changes necessary to satisfy the requirements of the provider of
any municipal bond insurance policy) as shall have been approved by the General Manager or the
Finance Manager. The General Manager and the Finance Manager, or either of them, are hereby
authorized to determine, in connection with the execution and delivery of the agreements
approved in Section 2 hereof, the following with respect to the Bonds:
(a) the aggregate principal amount of the Bonds, which shall not exceed $65,000,000;
(b) the final Purchase Payment under the Installment Purchase Agreement, which shall
be due and payable not later than December 31, 2028;
(c) the maximum true interest cost on the Bonds, which shall not exceed 5.90%; and
(d) in connection with any Insurance Commitment relating to municipal bond
insurance with respect to the financing, the purchase of such insurance shall result in a net savings
in interest cost on the Bonds.
SECTION 11: The Chairman, Vice Chairman, Secretary and Treasurer of the Authority
and the Executive Director other officers and officials of the Authority are hereby authorized and
directed, jointly and severally, for and in the name of the Authority, to do any and all things and to
take all actions, including execution and delivery of any and all assignments, notices, consents,
instruments of conveyance, warrants and other documents which they, or any of them, may deem
necessary and advisable in order to consummate the lawful issuance and sale of the Bonds and the
consummation of the transactions contemplated by the Installment Purchase Agreement, the
Indenture, the Insurance Commitment, the Continuing Disclosure Agreement and this Resolution,
and such actions previously taken by such officers are hereby ratified and confirmed.
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SECTION 12: This Resolution shall take effect from and after its date of adoption.
PASSED AND ADOPTED this 28th day of April, 1998, by the following vote:
AYES:
NOES: None
AB SENT: None
ATTEST:
Secretary to the Board
apfa~esi.doc
The FOREGOING RESOLUTION was approved and adopted by the
Anaheim Public Financing Authority this 28th day of April ,
1998, by the following vote:
ATTEST:
SECRETARY OF THE ANAHEIM
PUBLIC FINANCING AUTHORITY
APPROVED AS TO FORM:
JAC~HITE, CITY ATTORNEY
LUCINA LEA MOSES
ASSISTANT CITY ATTORNEY
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, Secretary of the Board of Directors of the Anaheim Public Financing
Authority, do hereby certify that the foregoing Resolution No. APFA98-1 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 7th day of April, 1998, by the following vote of the members
thereof:
AYES: BOARD MEMBERS: Zemel, McCracken, Tait, Lopez, Daly
NOES: BOARD MEMBERS: None
ABSENT: BOARD MEMBERS: None
AND I FURTHER certify that the Chairman of the Board of Directors signed said Resolution
No. APFA98-1 on the 7th day of April, 1998.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the City of
Anaheim this 7th day of April, 1998.
SECRETARY OF THE ANAHEIM PUBLIC
FINANCING AUTHORITY
(SEAL)
I, LEONORA N. SOHL, Secretary of the Anaheim Public Financing Authority, do hereby certify
that the foregoing is the original of Resolution No. APFA98-1 duly passed and adopted by the
Anaheim Public Financing Authority on Apdl 7th, 1998.
SECRETARY Of THE ANAHEIM PUBLIC
FINANCING AUTHORITY