2004-062RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
AUTHORIZING THE ISSUANCE OF CITY OF ANAHEIM COMMUNITY
FACILITIES DISTRICT NO. 1989-3 (THE SUMMIT) SPECIAL TAX
BONDS, SERIES 2004, IN AN AGGREGATE PRINCIPAL AMOUNT OF
NOT TO EXCEED $8,000,000, AUTHORIZING THE EXECUTION AND
DELIVERY OF A FISCAL AGENT AGREEMENT, AN ESCROW
AGREEMENT, A BOND PURCHASE AGREEMENT AND A
REPRESENTATION LETTER AND AUTHORIZING THE EXECUTION
OF NECESSARY DOCUMENTS AND CERTIFICATES AND RELATED
ACTIONS
WHEREAS, the City of Anaheim Community Facilities District No. 1989-3 (The
Summit) (the "Community Facilities District") was established under the provisions of the
Mello-Roos Community Facilities Act of 1982 (the "Act");
WHEREAS, pursuant to the Act, the City Council (the "City Council") of the City of
Anaheim (the "City") is the legislative body of the Community Facilities District;
WHEREAS, in order to finance and refinance certain public capital improvements, the
Community Facilities District previously issued the City of Anaheim Community Facilities
District No. 1989-3 (The Summit) Special Tax Refunding Bonds (the "Prior District Bonds"),
presently outstanding in the aggregate principal amount of $7,135,000;
WHEREAS, the Community Facilities District desires to refund and redeem the Prior
District Bonds;
WHEREAS, in order to provide a portion of the moneys required to refund and redeem
the Prior District Bonds, the Community Facilities District desires to authorize the issuance of
City of Anaheim Community Facilities District No. 1989-3 (The Summit) Special Tax Bonds,
Series 2004 (the "Bonds"), in the aggregate principal amount of not to exceed $8,000,000;
WHEREAS, in order to provide for the authentication and delivery of the Bonds, to
establish and declare the terms and conditions upon which the Bonds are to be issued and
secured and to secure the payment of the principal thereof and interest thereon, the Community
Facilities District proposes to enter into a Fiscal Agent Agreement with U.S. Bank National
Association, as fiscal agent (such Fiscal Agent Agreement, in the form presented to this meeting,
with such changes, insertions and omissions as are made pursuant to this Resolution, being
referred to herein as the "Fiscal Agent Agreement");
WHEREAS, the Community Facilities District has determined that obtaining a reserve
surety for the Bonds in lieu of providing a cash funded reserve therefor could be economically
advantageous to the Community Facilities District;
WHEREAS, the funds to pay the principal of and interest on the Prior District Bonds
through the redemption date thereof, and to pay the redemption price on such redemption date, will
be applied to such purpose pursuant to an Escrow Agreement by and between the Community
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Facilities District and U.S. Bank Trust National Association, as prior trustee and as escrow bank
(such Escrow Agreement, in the form presented to this meeting, with such changes, insertions and
omissions as are made pursuant to this Resolution, being referred to herein as the "Escrow
Agreement");
WHEREAS, the Anaheim Public Financing Authority (the "Authority") intends to issue
the Anaheim Public Financing Authority Revenue Bonds (2004 Community Facilities Districts
Refinancing), Series A (the "Authority Bonds"), and use a portion of the proceeds of the sale
thereof to purchase the Bonds from the Community Facilities District;
WHEREAS, the Authority has presented the Community Facilities District with a
proposal, in the form of a Bond Purchase Agreement, to purchase the Bonds from the
Community Facilities (such Bond Purchase Agreement, in the form presented to this meeting,
with such changes, insertions and omissions as are made pursuant to this Resolution, being
referred to herein as the "Purchase Agreement");
WHEREAS, Stone & Youngberg LLC, as representative of itself and E.J. De La Rosa &
Co., Inc., has presented the Authority with a proposal, in the form of a Bond Purchase
Agreement, to purchase the Authority Bonds from the Authority, attached to which Bond
Purchase Agreement is a Representation Letter to be executed and delivered by the Community
Facilities District (such Representation Letter, in the form presented to this meeting, with such
changes, insertions and omissions as are made pursuant to this Resolution, being referred to
herein as the "Representation Letter");
WHEREAS, a form of the Preliminary Official Statement to be distributed in connection
with the public offering of the Authority Bonds has been prepared, which Preliminary Official
Statement contains certain information regarding the Community Facilities District, the Fiscal
Agent Agreement and the Bonds (such Preliminary Official Statement, in the form presented to
this meeting, with such changes, insertions and omissions as are made pursuant to this
Resolution, being referred to herein as the "Preliminary Official Statement");
WHEREAS, there have been prepared and submitted to this meeting forms of:
(a) the Fiscal Agent Agreement;
(b) the Escrow Agreement;
(c) the Purchase Agreement;
(d) the Representation Letter; and
(e) the Preliminary Official Statement;
WHEREAS, all acts, conditions 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 Authority
is now duly authorized and empowered, pursuant to each and every requirement .of law, to
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consummate such transactions for the purpose, in the manner and upon the terms herein
provided;
NOW, THEREFORE, the City Council of the City of Anaheim does hereby resolve,
determine and order as follows:
Section 1. All of the recitals herein contained are true and correct and the City Council
so finds.
Section 2. The City Council hereby finds and determines that the total net interest cost to
maturity on the Bonds plus the principal amount of the Bonds is less than the total net interest
cost to maturity on the Prior District Bonds plus the principal amount of the Prior District Bonds
and that, in accordance with Section 53362.5 of the Act, the Bonds may be issued. Subject to the
provisions of Section 3 hereof, the issuance of the Bonds, in an aggregate principal amount of
not to exceed $8,000,000, on the terms and conditions set forth in, and subject to the limitations
specified in, the Fiscal Agent Agreement, is hereby authorized and approved. The Bonds shall
be dated, shall bear interest at the rates, shall mature on the dates, shall be subject to call and
redemption, shall be issued in the form and shall be as otherwise provided in the Fiscal Agent
Agreement, as the same shall be completed as provided in this Resolution.
Section 3. The Fiscal Agent Agreement, in substantially the form submitted to this
meeting and made a part hereof as though set forth herein, is hereby approved. The Mayor of the
City, and such other members of the City Council as the Mayor may designate, the City Manager
of the City and the Finance Director of the City, and such other officers of the City as the City
Manager may designate (the "Authorized Officers") are, and each of them is, hereby authorized
and directed, for and in the name of the Community Facilities District, to execute and deliver the
Fiscal Agent Agreement in the form submitted to this meeting, with such changes, insertions and
omissions as the Authorized Officer executing the same may require or approve, such
requirement or approval to be conclusively evidenced by the execution of the Fiscal Agent
Agreement by such Authorized Officer; provided, however, that such changes, insertions and
omissions shall not authorize an aggregate principal amount of Bonds in excess of $8,000,000,
shall not result in a final maturity date of the Bonds later than September 1, 2014 and shall not
result in a true interest cost for the Bonds in excess of 5.00%.
Section 4. The refunding of the Prior District Bonds is hereby approved. Such refunding
shall be accomplished by (a)paying the principal of and interest on the Prior District Bonds to
and including September 1, 2005, and (b) redeeming the Prior District Bonds on September 1,
2005 by paying the redemption price therefor. In accordance with Section 53363.8 of the Act,
the City Council hereby designates the following costs and expenses as the "designated costs of
issuing the refunding bonds:"
(i) all expenses incident to the calling, retiring, or paying of the Prior District
Bonds and incident to the issuance of the Bonds, including the charges of any agent in
connection with the issuance of the Bonds or in connection with the redemption or
retirement of the Prior District Bonds;
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(ii) the interest upon the Prior District Bonds from the date of sale of the
Bonds to the date upon which the Prior District Bonds will be paid pursuant to call; and
(iii)
Bonds.
any premium necessary in the calling or retiring of the Prior District
In accordance with Section 53364.2 of the Act, the City Council hereby determines that
any savings achieved through the issuance of the Bonds shall be used to reduce special taxes in
the Community Facilities District, which reductions shall be made on a pro rata basis.
Section 5. The Escrow Agreement, in substantially the form submitted to this meeting
and made a part hereof as though set forth in full herein, is hereby approved. The Authorized
Officers are, and each of them is, hereby authorized and directed, for and in the name of the
Community Facilities District, to execute and deliver the Escrow Agreement in the form
presented to this meeting, with such changes, insertions and omissions as the Authorized Officer
executing the same may require or approve, such requirement or approval to be conclusively
evidenced by the execution of the Escrow Agreement by such Authorized Officer.
Section 6. The Purchase Agreement, in substantially the form submitted to this meeting
and made a part hereof as though set forth in full herein, is hereby approved. The Authorized
Officers are, and each of them is, hereby authorized and directed, for and in the name of the
Community Facilities District, to execute and deliver the Purchase Agreement in the form
presented to this meeting, with such changes, insertions and omissions as the Authorized Officer
executing the same may require or approve, such requirement or approval to be conclusively
evidenced by the execution of the Purchase Agreement by such Authorized Officer; provided,
however, that such changes, insertions and omissions shall not result in an aggregate purchaser's
discount (not including any original issue discount) from the principal amount of the Bonds in
excess of 0.525% of the aggregate principal amount of the Bonds. The City Council hereby
finds and determines that the sale of the Bonds at negotiated sale as contemplated by the
Purchase Agreement will result in a lower overall cost.
Section 7. The Representation Letter, in substantially the form submitted to this meeting
and made a part hereof as though set forth in full herein, is hereby approved. The Authorized
Officers are, and each of them is, hereby authorized and directed, for and in the name of the
Community Facilities District, to execute and deliver the Representation Letter in the form
presented to this meeting, with such changes, insertions and omissions as the Authorized Officer
executing the same may require or approve, such requirement or approval to be conclusively
evidenced by the execution of the Representation Letter by such Authorized Officer.
Section 8. The information regarding the Community Facilities District, the Fiscal Agent
Agreement and the Bonds contained in the Preliminary Official Statement, in substantially the
form presented to this meeting and made a part hereof as though set forth in full herein, with
such changes therein as may be approved by an Authorized Officer, is hereby approved, and the
use of the Preliminary Official Statement in connection with the offering and sale of the
Authority Bonds is hereby authorized and approved.
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Section 9. The preparation and delivery of a final Official Statement containing
information regarding the Community Facilities District, the Fiscal Agent Agreement and the
Bonds (the "Official Statement"), and its use in connection with the offering and sale of the
Authority Bonds, is hereby authorized and approved. The information regarding the Community
Facilities District, the Fiscal Agent Agreement and the Bonds contained in the Official Statement
shall be in substantially the form of that contained in the Preliminary Official Statement, with
such changes, insertions and omissions as may be approved by an Authorized Officer.
Section 10. The Authorized Officers are each hereby authorized and directed to apply
for and obtain a reserve surety for the Bonds. The Authorized Officers are each hereby
authorized and directed, for and in the name and on behalf of the Community Facilities District,
to execute and deliver a contract for such reserve surety if such contract is deemed by the
Authorized Officer executing the same to be in the best interests of the Community Facilities
District, such determination to be conclusively evidenced by such Authorized Officer's
execution and delivery of such contract.
Section 11. Pursuant to Section 53345.8 of the Act, the City Council hereby finds and
determines that the value of the real property that would be subject to the special tax to pay debt
service on the Bonds will be at least three times the principal amount of the Bonds to be sold and
the principal amount of all other bonds outstanding that are secured by a special tax levied
pursuant to the Act on property within the Community Facilities District or a special assessment
levied on property within the Community Facilities District.
Section 12. The Authorized Officers and the officers and employees of the City are, and
each of them is, hereby authorized and directed, for and in the name of the Community Facilities
District to do any and all things and to execute and deliver any and all documents which they or
any of them deem necessary or advisable in order to consummate the transactions contemplated
by this Resolution and otherwise to carry out, give effect to and comply with the terms and intent
of this Resolution.
Section 13. All actions heretofore taken by the officers, employees and agents of the
City with respect to the transactions set forth above are hereby approved, confirmed and ratified.
Section 14. This Resolution shall take effect immediately upon its adoption.
PASSED AND ADOPTED by the
April 20, 2004.
City Council of the City of Anaheim on
Mayor
ATTEST:
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CITY OF ANAHEIM )
COUNTY OF ORANGE )
STATE OF CALIFORNIA )
heryll Schroeder
, . C~ty Clerk ot the City or-Anaheim, do hereby certify that the
foregoing Resolution N~004R-6~as duly passed and adopted at a regular meeting of the City
Council of the City of Anaheim held on the 20th day of April, 2004, with the following roll call
vote, to wit:
AYES:
COUNCIL MEMBERS:
Pringle, Chavez, Hernandez, McCracken, Tait
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
~'~:~ ' ¢¢- ~ty Clerk
(SEAL)
The foregoing is the original of Resolution No2.004I},-gu21y passed and adopted by the City
Council of the City of Anaheim at its regular meeting held on April 20, 2004.
/- -Cit3/Clerl~
(SEAL)
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