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RE$OLUTION NO. 78R-~
RESOLUTION Of THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA' DECLARING ITS INTENTION
TO SELL ELEC RIC REVENUE BONDS OF SAID CITY
IN THE AMOUN OF $42,000,000 FIXING TIME AND
PLACE FOR TA ING BIDS AND DIRECTING PUBLICATION
OF NOTICE IN ITING BIDS
WHEREAS, thii City Council deems it proper. and the
necessity therefor app ars that bids be invited for the purchase
of $42,000,000 princip 1 amount of Electric Revenue Bonds, Issue
of 1978, of the City 0 Anaheim, and that if bids are satisfactory
said Bonds be sold in the manner and at the time and place
hereinafter set forth;
NOW, THEREFO~, the City Council of the City of Anaheim,
California, DOES HEREB~RESOLVE, DETERMINE AND ORDER as follows:
Section 1. C. ealed bids for the purchase of the Bonds
shall be received by t e City at the time and place hereinafter
set forth in the Notic, Inviting Bids. .
Section 2. ~he City Clerk is hereby authorized and
directed to publish a ~otice Inviting Bids, substantially in the
form annexed hereto, mJ;irked "Exhibit A", and hereby approved by
this City Council, by pne insertion in the Anaheim Bulletj.n, a
newspaper of general C~;'rculation, published in the City of Anaheim,
said publication to be at least 10 days prior to the date of
opening bids stated th rein.
Section 3. ~he City Clerk is further authorized and
directed to cause to b~ furnished to prospective bidders copies
of said Notice Inviting Bids and of the resolution authorizing
issuance of the Bonds; but the failure, in whole or in part, to
comply with this secti~. n shall not in any manner affect the
validity of the sale elf said Bonds.
ADOPTED, SI~ED AND APPROVED this first day of August,
1978.
ATTEST:
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CITY 'ciERi< OF7~~F ANAHEIM
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EXHIBIT "A"
NOTlC. INVITING BIDS ON $42,000,000 ELECTRIC
REtENUE BONDS, ISSUE OF 1978 OF mE
CITY OF ANAHEIM, CALIFORNIA
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NOTICE IS HEREBY qIVEN that sealed proposals for the purchase of $42,000,000 par value
Electric Revenue Bonds of th~ City of Anaheim, California, will be received by the City Council of
the City at the place and up to the time below specified:
TIME: Tuesday, August 22, 1978
10:00 o'clock A.M. (P.D.S.T.)
Office of the City Clerk
City Hall
204 East Lincoln Avenue
Anaheim, California
City of Anaheim
% Linda D. Roberts
City Clerk
City Hall
204 East Lincoln Avenue
Anaheim, California 92805
Opening of Bids: The b$s will be received by the City Clerk at the time above specified. The
bids will be opened by the Cletic immediately following receipt and will be presented to the City Council
for award later that day. '
PLACE:
MAILED
BIDS:
Issue: $42,000,000 desigttated "ELECTRIC REVENUE BONDS, ISSUE OF 1978," consisting of
8,400 bonds, numbered 1 to 8400, both inclusive, of the denomination of $5,000 each, dated August 1,
1978.
Maturities: The bonds wfI mature in consecutive numerical order on August 1 in each year and
in the amounts as follows: '
Principal Principal Pr1acipaI
Year AmOUDt Year Amount Year AmOllDt
1983...__....... $ 475,~ 1993......__..__ $ 925,000 2003...__....... $1,725,000
1984________..__ 525,0001 1994._..._______ 975,000 2004....__....__ 1,850,000
1985........____ 550,000! 1995....___.___. 1,025,000 2005....____.__. 1,950,000
1986............ 575,0001 1996______...... 1,100,000 2006............ 2,075,000
1987 ____....____ 625,000' 1997............ 1,175,000 2007......__.... 2,200,000
1988..__. __"". 675,0001 1998...._..... .. 1,250,000 2008.._......... 2,350,000
1989......... '__ 700,000; 1999..._______._ 1,325,000 2009....._...___ 2,500,000
1990___.......__ 750,000, 2000............ 1,425,000 2010............ 2,650,000
199 L._......__ 8oo,000i 2001............ 1,525,000 2011............ 2,825,000
~ 1992.___......__ 850,000i 2002.........___ 1,625,000 2012........__.. 3,000,000
Interest: The bonds shaH lbear interest at a rate or rates to be fixed upon the sale thereof but not
to exceed 8% per annum, pay4ble semiannually on the first days of February and August ~f each year.
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Payment: Said bonds an" the interest thereon will be payable in lawful money of the United States
of America at the office of thb City Treasurer of the City of Anaheim, in said City, or, at the option
of the holder, at any paying ~gent of the City in Los Angeles or San Francisco, California, Chicago,
IDinois, or New York, New !York.
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Registration: The bonds ~ll be coupon bonds registrable as to principal only or as to both principal
and interest, and the form of rtgistration may be changed, or the bonds discharged from registration, all
in accordance with the pro*ions in the resolution providing for the issuance of the bonds (the
"Resolution") .
Redemption: The bondsimaturing on or prior to August 1, 1988, shall not be subject to can or
redemption prior to maturity. j The bonds maturing on or after August 1, 1989, or any of them, may
be called before maturity and (edeemed, at the option of the City, on August 1, 1986, or on any interest
payment date thereafter priori to maturity, at a redemption price for each redeemable bond equal to
1 OO~ % of the principal amqunt thereof, plus ~ % of such principal amount for each whole twelve
months' period and for any temaining fraction of a twelve months' period from the date fixed for
redemption to the maturity daJe of such bond, but the redemption price, including premium payable at
any time upon redemption, sh~l not exceed 1031h % of such principal amount. All or any of the bonds
subject to call may be caned f~r redemption at anyone time. If less than all of the bonds are redeemed
at anyone time, such bonds !shall be redeemed only by complete maturity or maturities as selected
by the City Council at its d.cretion.
Purpose of Issue: Said btnds are the third series of a total issue of $150,000,000 authorized at an
election held in the City on :t.1arch 4, 1975, to finance the acquisition and construction of facilities.
property and rights related to I the generation, transmission and distribution of electrical energy for the
City and its inhabitants. The: proceeds of this series will be used primarily to pay a portion of the
cost of acquiring an ownershi~ interest in Units 2 and 3 of the San Onofre Nuclear Generating Station,
now under construction, to p4y interest on the bonds during the construction period, and to increase
the bond reserve fund balan~.
Security: Said bonds are lissued under and pursuant to Section 1210 of the Anaheim City Charter,
procedural Ordinance No. 29~ of the City and the Resolution. In accordance with said Section 1210,
said Ordinance No. 2980 an~ said Resolution, the bonds shall be special obligations of the City,
payable both as to principal ~d interest and as to any premiums upon the redemption of any thereof
prior to maturity only out of !lie Electric Revenue Fund and not out of any other fund or moneys of the
City; provided, however, that this shan not preclude payment of principal, interest or premiums
from certain other sources as bnumerated in the Resolution.
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TERMS OF SALE
Interest Rate: The maqnum rate bid may not exceed 8% per annum, payable semiannually.
Each rate bid must be a multiple of Y8 or 1120 of 1 %. No bond shall bear more than one interest
rate, and all bonds of the s~e maturity shall bear the same rate. Each bond must bear interest
at the rate specified in the ~id from its date to its fixed maturity date. Only one coupon will
be attached to each bond for! each installment of interest thereon, and bids providing for additional
or supplemental coupons willi be rejected.
Award: The bonds shal~ be sold for cash only. All bids must be for not less than all of the
bonds hereby offered for sale land each bid shall state that the bidder offers par and accrued interest
to the date of delivery, the pr~ttLium, if any, and the interest rate or rates not to exceed that specified
herein, at which the bidder ~ffers to buy said bonds. Each bidder shall state in his bid the total
interest cost in dollars and thd "Canadian" or true interest rate, which shall be considered informative
only and not a part of the ~id.
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Highest Bidder: The boqds will be sold to the bidder making a bid conforming to the terms of
the offering, and which, on th~ basis of the lowest annual interest cost, determined in the manner here-
inafter stated, is the best bid! The manner of determining annual interest cost for the purpose of
determining whether such int-test cost is within the maximum specified herein, and for the purpose
of determining which is the ~est bid received, is to double the semiannual rate, compounded semi-
annually, necessary to discou~ the amounts payable at the respective principal and interest maturity
dates under each offer to the! date of the Bonds and to the purchase price stated in that offer, not
including interest accrued to tJIe date of delivery.
The purchaser must pay ,ccrued interest from the date of the bonds to the date of delivery com-
puted on a 360-day year basis~ The cost of printing the bonds will be borne by the City.
Right of Rejection: The City reserves the right, in its discretion, to reject any and all bids and
to the extent not prohibited bt law to waive any irregularity on informality in any bid.
Prompt Award: The C$" will take action awarding the bonds or rejecting all bids not later
than twenty-six (26) hours er the time herein prescribed for the receipt of proposals; provided
that the award may be made er the expiration of the specified time if the bidder shall not have given
to the City Council notice in . 'ting of the withdrawal of such proposal.
Place of Delivery; FUDj for Payment: Delivery of said bonds will be made to the successful
bidder at Jeffries Banknote C mpany, 1330 West Pica Boulevard, Los Angeles, California, or at any
other place agreeable to both t e successful bidder and the City. Payment for the bonds shall be made
in Federal Reserve Bank Fun, s or other immediately available funds.
Prompt Delivery; Cance Cion for Late Delivery: It is expected that the bonds will be delivered
to the successful bidder within 30 days from the date of sale thereof. The successful bidder shall have
the right, at his option, to ca el the contract of purchase if the City shall fail to execute the bonds
and tender them for delivery ithin 60 days from the date herein fixed for the receipt of bids, and in
such event the successful bid shall be entitled to the return of the check accompanying his bid.
The City expects to make suc delivery in the form of definitive bonds, but reserves the right to make
such delivery in the form of temporary bonds, exchangeable for definitive bonds, at no cost to the
purchaser.
Form of Bid: Each bidfi together with the bid check, must be in a sealed envelope, addressed
to the City Council with the velope and bid clearly marked "Proposal for the Purchase of Electric
Revenue Bonds, Issue of 197 ,." Each bid must be in accordance with the terms and conditions set
forth in this notice and must b~ submitted on, or in substantial accordance with, the bid form provided
by the City.
Bid Cbeck: A certified f' cashier's check on a responsible bank or trust company in the amount
of $840,000 payable to the 0 r of the City must accompany each proposal as a guaranty that the
bidder, if successful, will acce and pay for said bonds in accordance with the terms of his bid. The
check accompanying any accetd proposal shall be applied on the purchase price or, if such proposal
is accepted but not performe , unless such failure of performance shall be caused by any act or
omission of the City, shall then e cashed and the proceeds retained by the City. The check accompanying
each unaccepted proposal will, returned promptly.
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CbaDge in Tax Exempt ~: At any time before the bonds are tendered for delivery, the
successful bidder may disaffini and withdraw the proposal if the interest received by private holders
from bonds of the same typel and character shall be declared to be taxable income under present
federal income tax laws, eithet by a ruling of the Internal Revenue Service or by a decision of any
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federal court, or shall be dec~ed taxable, or be required to be taken into account in computing any
federal income taxes, by the terms of any federal income tax law enacted subsequent to the date of
this notice.
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Legal Opinioo: The op~ion of O'Melveny & Myers, attorneys, approving the validity of said
bonds and opining that inter;st on the bonds is exempt from income taxes of the United States of
America under present feder~ income tax laws, and that such interest is also exempt from personal
income taxes of the State of qalifornia under present state income tax laws, will be made available to
the successful bidder at the ti~e of delivery of the bonds, at the expense of the City. A copy of such
opinion, certified by an officer !of the City by his facsimile signature, will be printed on the back of each
bond. No charge will be mad4 to the purchaser for such printing or certification.
CUSIP Numbers: It is ~ticipated that CUSIP numbers will be printed on the bonds, but neither
the failure to print such num1' rs on any bond nor error with respect thereto shall constitute cause for a
failure or refusal by the purc aser thereof to accept delivery of and pay for the bonds. All expenses
of printing CUSIP numbers the bonds shall be paid by the City, but the CUSIP Service Bureau
charge for the assignment of kaid numbers shall be paid by the successful bidder.
Non-Arbitrage certificate: The City will furnish to the successful bidder at the time of delivery
of the bonds a certificate, acc mpanied by an opinion of counsel, that on the basis of the facts, esti-
mates and circumstances in e istence on the date of issue of the bonds, it is not expected that the
proceeds of the bonds will be ~sed in a manner that will cause the bonds to be arbitrage bonds.
Non-Litigation Certificate, At the time of delivery of the bonds, the City will furnish the successful
bidder a certificate that there i, no litigation pending affecting the validity of the bonds.
Official Statement: The !ity will furnish to the successful bidder, without charge, 500 copies of
the Official Statement approv d by the City Council for this issue. At the time of delivery of the
bonds, the City will furnish to e successful bidder a certificate to the effect that at the time of sale of
the bonds and at all times su sequent thereto up to and including the time of said delivery the Offi-
cial Statement did not contain i any untrue statement of a material fact or omit to state a material fact
necessary to make the statemer!ts therein, in the light of the circumstances under which they were made,
not misleading.
INFORMATION A V AJtABLE: Requests for other information concerning the bonds and the
City or for copies of the Prel~inary Official Statement should be addressed to one of the following:
Wainwright & RamE' Inc. Wainwright & Ramsey, Inc.
7325 Woodrow Wil n Dr. Suite 4110, 70 Pine Street
Los Angeles, Califo, 'a 90046 New York, New York 10005
Wainwright & Ram~y, Inc.
58 Sutter Street '
San Francisco, Cali~rnia 94104
Gordon W. Hoyt
Utilities Director
P.O. Box 3222
Anaheim, California 92803
Given by order of the Citt Council of the City of Anaheim, California, on August 1, 1978.
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City Clerk of the City of Anaheim
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PROPOSAL
FOR mE PURCHASE OF
ELE~TRIC REVENUE BONDS, ISSUE OF 1978
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Honorable City Council
of the City of Anaheim , August ...., 1978
% Linda D. Roberts, City qterk
City Hall, 204 East Lincoln \Avenue
Anaheim, California 92805 '
On behalf of a group l' underwriters headed by the undersigned and consisting of the firms
listed below or on a separate heet attached hereto, and in accordance with the terms and conditions
of the Notice Inviting Bids d ed August 1, 1978, we offer to purchase $42,000,000 Electric Revenue
Bonds, Issue of 1978, all or n~ne, maturing on August 1 in the years shown below and bearing interest
at the rates shown below: '
Principal I:';st Principal Interest Principal IDterelt
Year Amount Year Amount Rate Year Amount Rate
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1983...... $ 475,000 1993.__... $ 925,000 --....% 2003...... $1,725,000 ......%
1984...._. 525,000 ...... % 1994...... 975,000 ......% 2004""00 1,850,000 00....%
1985....__ 550,000 .--...% 1995..._.. 1,025,000 __0000% 2005...... 1,950,000 ...... %
1986....., 575,000 ---...% 1996...... 1,100,000 ...... % 20060000.. 2,075,000 ......%
1987...... 625,000 ......% 1997...... 1,175,000 .--... % 2007....00 2,200,000 ....00%
1988...... 675,000 .--... % 1998.__... 1,250,000 ....00% 2008...... 2,350,000 ......%
1989...... 700,000 __.m % 1999...... 1,325,000 ......% 2009...... 2,500,000 ......%
1990...... 750,000 ......% 2000...... 1,425,000 ..--.. % 2010____._ 2,650,000 ......%
1991...... 800,000 ___.00 % 2001...___ 1,525,000 ......% 2011...00. 2,825,000 ...... %
1992...... 850,000 ....00% 2002...... 1,625,000 ..00..% 2012...... 3,000,000 .00...%
and we will pay therefor, at fhe time of delivery, par plus a premium of $................, plus accrued
interest to the date of deliverYf
In accordance with the terms of said Notice Inviting Bids, there is enclosed a certified or cashier's
check for $840,000 payable t~ the order of the City of Anaheim. If this proposal is not accepted, said
check is to be returned to us ~omptly.
Respectfully submitted,
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.........-...... "'.... .........-.... -......-.... .......... --..-..--.. ----.... ........- .......... ....-........ ....--........................
........-..............-......-..............-...._.........._-_.........._...._..................--......--......---.....-..............
...... --...... --.. .-_.. ....---.. ---.... ----.. ----..- --......--.. --........---- -- --..-......---................_......
........-.... --...... --.. ............. --.. ....--.... ---.. ....... -----.. ---....- .......... ---.. --........-........--...............
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MEM~kANDUM Of INTEREST REQUIREMENTS
(For Information Purposes Only)
$42,OOO,00~ ELECTRIC REVENUE BONDS, ISSUE OF 1978
The total amount of intetest payable on the Bonds during the life of the issue under the above
proposals, without deducting t~e premium bid, if any, is $um..m.hm.u...u....uum.' and the net interest
rate is m'u.m.. %.
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STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ANAHEIM )
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I, LINDA D. ROBERTS, City C1erk of the City of Anaheim, do hereby certify that
the foregoing, Resolution No ",78R-485, 'was int, rOduced, and ad, O"Pted, at a regu, lar
meetiag provided by law, of the City COuncil of the' City of Anaheim held on
the lat day of August, 1978 by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: ctverhol t, Kaywood, Roth and Seymour
COUNCIL MEMBERS: ttt
ABSENT: COUNCIL MEMBERS: ~dne
ANt) I FURTHER. CERTIFY that ~e Mayor of the City of Anaheim signed said
Reoo1ation No. 78R-48S. on 4" 1st day of August, 1978.
IN Wl!NESS WHEREOF, 1 have ~~,reunto set my hand and affixed the seal of the
City of Anaheim this 1st da~of August, 1978.
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CI CL OF THE CITY F ANAHEIM
(SEAL)
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I, LINDA D. ROBERTS, City cl~rk of the City of Anaheim, do hereby certify that
the foregoing is the origin~l of Resolution No. 78R-485 duly passed and adopted
by the Anaheim City Councilion August 1, 1978.
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CITY CLERK
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