RES-1989-275RESOLUTION NO. g9R-275
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, AUTHORIZING THE PREPARATION,
EXECUTION, SALE AND DELIVERY OF NOT TO EXCEED
$46,000,000 AGGREGATE PRINCIPAL AMOUNT OF
CERTIFICATES OF PARTICIPATION, APPROVING A TRUST
AGREEMENT, INSTALLMENT PURCHASE AGREEMENT, PURCHASE
CONTRACT AND DRAFT OFFICIAL STATEMENT AND CERTAIN
ACTIONS IN CONNECTION THEREWITH
WHEREAS, the Anaheim Public Improvement Corporation (the
"Corporation") is a nonprofit public benefit corporation organized
and existing under the laws of the State of California with the
authority to a~i~t the City of Anaheim (the "City") in the
financing of costs related to public improvements; and
WHEREAS, the City has proposed that the Corporation
assist the City in the financing of the acquisition, construction
and installation of a natural gas-fired combustion turbine peaking
plant and related improvements (the "Facilities"); and
W~EREAS, it has been proposed that the Corporation
acquire, construct and install the Facilities and that the City
purchase ~uch Facilities from the Corporation pursuant to an
Installment Purchase Agreement, dated as of July 1, 1989, by and
between the City and the Corporation (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 certaim
purchase payments (the "Purchase Payments") in connection
therewith;
WHEREAS, it has been proposed that the Corporation grant,
assign and transfer all of its right to receive the Purchase
Payments from the City to The Bank of New York Trust Company of
California, as Trustee (the "Trustee") pursuant to an Assignment
Agreement, dated as of July 1, 1989, by'and between the Corporation
and the Trustee (the "Assignment Agreement"); and
WHEREAS, the Corporation and the City have determined
that it would be in the best interests of the Corporation, the City
and the citizens of the City to authorize, pursuant to the Trust
Agreement, dated as of July 1, 1989, by and among the Corporation,
the Trustee and the City (the "Trust Agreement"), the proposed form
of which has been presented to this City Council, the preparation,
execution, sale and delivery of Certificates of Participation in
an aggregate amount not to exceed $46,000,000 (the "Certificates"),
which Certificates evidence and represent direct and proportionate
interests in the Principal Components and Interest Components of
the Purchase Payments; and
WHEREAS, it has been proposed that Dean Witter Reynolds
Inc., The First Boston Corporation and others (the "Underwriters")
purchase the Certificates pursuant to a Certificate Purchase
Agreement among the Underwriters, the City and the Corporation (the
"Purchase Contract"), the proposed form of which has been presented
to this city Council; and
WHEREAS, there has been presented to this City Council
a draft Official Statement relating to the Certificates (the "Draft
Official Statement"); and
WHEREAS, the City has determined that it is in the best
interest of the City and the citizens of the City to approve the
above documents and authorize and approve the transactions
contemplated thereby; and
NOW, THEREFORE, the City Council of the City of Anaheim,
California, does hereby resolve, determine and order as follows:
SECT~0N %2 That the Trust Agreement, the Installment
Purchase Agreement and the Purchase Contract presented to this City
Council are hereby approved. The Mayor, the City Manager, the City
Treasurer and the City Clerk are authorized and directed for and
in the name of the City to execute and deliver said agreements.
The agreements shall be executed in the forms hereby approved, with
such additions thereto and changes therein as are approved in
accordance with Section 4 hereof, such approval to be conclusively
evidenced by the execution and delivery thereof.
S~CTION 2: That this City Council hereby authorizes the
preparation, execution, sale and delivery of the Certificates in
accordance with the terms and provisions of the Trust Agreement
(as executed and delivered).
SECTION 3: That The Bank of New York Trust Company of
California, is hereby appointed as Trustee on behalf of the owners
of the Certificates with the duties and powers of such Trustee as
set forth in the Trust Agreement (as executed and delivered).
SECTION 4~ The agreements approved in Section 1 of this
Resolution shall, when executed and delivered pursuant to Section
1 of this Resolution, contain such additions and changes as shall
have been approved by the Public Utilities General Manager (or, in
the absence of the Public Utilities General Manager, the Assistant
General Manager--Finance and Administration of the Public Utilities
Department) (the "Manager"), subject to the following limitations:
(a) the aggregate principal amount of the Certificates
shall not exceed $46,000,000;
(b) the final Purchase Payment under the Installment
Purchase Agreement shall be due and payable not later than
December 31, 2011;
(c) the underwriters' discount (excluding any original
issue discount) under the Purchase Contract shall not exceed
1.8% of the aggregate principal amount of the Certificates;
(d) the interest cost with respect to the Certificates
shall not exceed 7.5%; and
(e) if the Manager shall decide to obtain municipal bond
insurance with respect to the financing, the premium for such
insurance shall not exceed 0.40% of the payments insured.
SECTION S: The Purchase Payments and all other payments
with respect to Qualified Obligations (as defined in the
Installment Purchase Agreement) shall be secured by a pledge,
charge and lien upon the Surplus Revenues in the Qualified
Obligations Account (as defined in the Installment Purchase
Agreement) and shall be paid from Surplus Revenues in the Qualified
Obligations Account unless otherwise paid from other sources of
legally available funds. Purchase Payments and all other payments
with respect to Qualified Obligations shall be equally secured by
the Surplus Revenues in the Qualified Obligations Account without
priority for number or date. The Surplus Revenues in the Qualified
Obligations Account shall be held in trust by the Treasurer of the
City for the benefit of the holders of the Certificates and any
other Qualified Obligations.
SECTION $~ The distribution of a preliminary official
statement in substantially the form of the Draft Official Statement
to prospective purchasers of the Certificates is approved, and the
Mayor, the City Manager and the Public Utilities General Manager
are authorized and directed to execute and deliver a final Official
Statement in accordance with the Purchase Contract in substantially
the form of the Draft Official Statement hereby approved, with such
additions thereto and changes therein as are consistent with this
Resolution and the limits prescribed herein and recommended or
approved by Special Counsel to the City and approved by such
officers and employees, such approval to be conclusively evidenced
by the execution an4 delivery thereof.
SECTION ?~ The Mayor, the City Manager, the Public
Utilities General Manager and the Assistant General Manager-Finance
and Administration of the Public Utilities Department, the City
Clerk, City Attorney and City Treasurer and the other officers and
officials of the City are authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any
and all documents which they may deem necessary and advisable in
order to consummate the transactions contemplated by the Trust
Agreement, the Installment Purchase Agreement, the Purchase
Contract and this Resolution, and such actions previously taken by
such officers are hereby ratified and confirmed.
SECTION 8: This Resolution shall take effect from and
after its date of adoption.
PASSED AND ADOPTED this 27th day of June 1989, by the
following vote:
AYES:
NOES:
ABSENT:
ATTE ST:
City Clerk
CERTIFICATION
I, Leonora N. Sohl , City Clerk of the City of Anaheim,
California (the "City"), DO HZREB¥ CZRTXF¥ that the foregoing is
a true copy of Resolution No. 89R-275which was duly adopted by the
City Council of the City at a regular meeting duly called, noticed
and held on J~n~ 27 , 1989 at which a quorum was present and
acting throughout and that Resolution No. 89B-275 has not been
modified, amended or repealed and is in full force and effect.
IN WITNESS WHEREOF, I have hereunto set my hand and
caused the seal of the City to be affixed this 28th day of June ,
1989.
CITY CLERK
(SEAL)
CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 89R-275 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 27th day of June, 1989, by the following vote of the members thereof:
AYES'
COUNCIL MEMBERS' Daly, Ehrle, Kaywood and Hunter
NOES'
COUNCIL MEMBERS' None
ABSENT' COUNCIL MEMBERS' Pickler
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 89R-275 on the 28th day of June, 1989.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 28th day of June, 1989o
CITY CLERK OF THE CITY OF ANAHEIM
( SEAL)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 89R-275 duly passed and
adopted by the Anaheim City Council on June 27, 1989.
CITY CLERK OF THE CITY OF ANAHEIM