99-219RESOLUTION NO. 99R-219
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM AUTHORIZING THE ISSUANCE OF NOT TO
EXCEED $9,500,000 AGGREGATE PRINCIPAL AMOUNT OF
CITY OF ANAHEIM COP~3NITY FACILITIES DISTRICT
NO. 1989-3 (THE SL~IT) SPECIAL TAX BONDS,
SERIES 1999, APPROVING THE EXECUTION AND
DELIVERY OF AN INDENTURE, AN ESCROW AGREEMENT,
A BOND PURCHASE AGREEMENT AND A CONTINUING
DISCLOSURE AGREEMENT AND THE PREPARATION OF AN
OFFICIAL STATEMENT AND OTHER MATTERS RELATED
THERETO
WHEREAS, the City Council (the "City Council") of the
City of Anaheim (the "City") has formed the City of Anaheim
Community Facilities District No. 1989-3 (The Sumit) (the
"Community Facilities District") under the provisions of the Mello-
Roos Community Facilities District Act of 1982 (the "Act");
WHEREAS, the City Council, as the legislative body of the
Community Facilities District, is authorized under the Act to levy
special taxes (the "Special Taxes") to pay for the costs of certain
public facilities (the "Project") and to authorize the issuance of
bonds payable from the Special Taxes;
WHEREAS, there have previously been issued the City of
Anaheim Community Facilities District No. 1989-3 (The Summit)
Special Tax Bonds, presently outstanding in the aggregate principal
amount of $7,720,000 (the "Prior Bonds");
WHEREAS, in order to achieve debt service savings, the
Community Facilities District desires to refund the Prior Bonds;
WHEREAS, in order to provide funds to finance a portion
of the Project and in order to provide a portion of the moneys
required to refund the Prior 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 1999 (the "Bonds"), in the aggregate principal amount
of not to exceed $9,500,000;
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, premium, if any, and
interest thereon, the Community Facilities District proposes to
enter into an Indenture with U.S. Bank Trust National Association,
as trustee (the "Trustee") (such Indenture, 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
"Indenture");
WHEREAS, the funds to pay the principal of and interest on
the Prior Bonds through the redemption date thereof will be applied
to such purpose pursuant to an Escrow Agreement by and among the
City, the Community Facilities District and U.S. Bank Trust National
Association, 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 Community Facilities District has determined
that securing the timely payment of the principal of and interest
on all or a portion of the Bonds by obtaining a bond insurance
policy with respect thereto could be economically advantageous to
the Community Facilities District;
WHEREAS, Stone & Youngberg LLC (the "Underwriter") 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 District (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, Rule 15c2-12 promulgated under the Securities
Exchange Act of 1934 ("Rule 15c2-12") requires that, in order to be
able to purchase or sell the Bonds, the Underwriter must have
reasonably determined that one or more obligated persons have
undertaken in a written agreement or contract for the benefit of
the holders of the Bonds to provide disclosure of certain financial
information and certain material events on an ongoing basis;
WHEREAS, in order to assist in providing for the
satisfaction of such requirement, the Community Facilities District
desires to enter into a Continuing Disclosure Agreement with the
Trustee (such Continuing Disclosure 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 "Continuing Disclosure Agreement");
WHEREAS, there have been prepared and submitted to this
meeting forms of:
{a) the Indenture;
(b) the Escrow Agreement;
(c) the Purchase Agreement;
(d) the Continuing Disclosure Agreement; and
(e) the Preliminary Official Statement to be used in
connection with the offering and sale of 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, the City Council desires to designate Public
Financial Management, Inc. as the Financial Advisor for the Series
1999 Bonds, to designate Stone & Youngberg LLC as the Underwriter
of the Series 1999 Bonds and to designate Orrick, Herrington &
Sutcliffe LLP as Bond Counsel and Disclosure Counsel for the Series
1999 Bonds; and
WHEREAS, the Community Facilities District desires to
authorize the issuance of the Bonds and the execution of such
documents and the performance of such acts as may be necessary or
desirable to effect the issuance of the Bonds;
NOW, THEREFORE, IT IS HEREBY ORDERED, by the City Council
of the City of Anaheim, as follows:
Section 1. Subject to the provisions of Section 2
hereof, the issuance of the Bonds, in an aggregate principal amount
of not to exceed $9,500,000, on the terms and conditions set forth
in, and subject to the limitations specified in, the Indenture, 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 Indenture, as the same shall
be completed as provided in this Resolution.
Section 2. The Indenture, in substantially the form
submitted to this meeting and made a part hereof as though set
forth herein, be and the same 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, 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 Indenture
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 Indenture by such
Authorized Officer; provided, however, that such changes,
insertions and omissions shall not authorize an aggregate principal
amount of Bonds in excess of $9,500,000, 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
6.25%.
Section 3. The refunding of the Prior Bonds is
hereby approved. Such refunding shall be accomplished by
(a) paying the principal of and interest on the Prior Bonds to
and including March 1, 2000, and (b) redeeming the Prior Bonds on
March 1, 2000 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 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 Bonds;
(ii) the interest upon the Prior Bonds from the date of
sale of the Bonds to the date upon which the Prior Bonds will
be paid pursuant to call; and
(iii) any premium necessary in the calling or retiring of
the Prior Bonds.
Section 4. The Escrow Agreement, in substantially the
form submitted to this meeting and made a part hereof as though set
forth in full herein, be and the same is hereby approved. The
Authorized Officers are, and each of them is, hereby authorized and
directed, for and in the name of the City, 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. 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 5. The Purchase Agreement, in substantially
the form submitted to this meeting and made a part hereof as
though set forth in full herein, be and the same 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 underwriter's discount (not including any original
issue discount) from the principal amount of the Bonds in excess
of .7% 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 6. The Continuing Disclosure Agreement, in
substantially the form submitted to this meeting and made a part
hereof as though set forth in full herein, be and the same 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
Continuing Disclosure 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 Continuing Disclosure Agreement by such Authorized
Officer.
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, be and the same is hereby approved, and
the use of the Preliminary Official Statement in connection with
the offering and sale of the Bonds is hereby authorized and
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 certify to the Underwriter that the
Preliminary Official Statement has been "deemed final" for purposes
of Rule 15c2-12.
Section 7. The preparation and delivery of a final
Official Statement (the "Official Statement"), and its use in
connection with the offering and sale of the Bonds, be and the same
is hereby authorized and approved. The Official Statement shall be
in substantially the form of the Preliminary Official Statement
with such changes, insertions and omissions as may be approved by
an Authorized Officer, such approval to be conclusively evidenced
by the execution and delivery thereof. The Authorized Officers
are, and each of them is, hereby authorized and directed to execute
the final Official Statement and any amendment or supplement
thereto, for and in the name of the Community Facilities District.
Section 8. 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 9. Public Financial Management, Inc. is hereby
designated as the Financial Advisor for the Series 1999 Bonds. The
agreement to provide financial advisory services for the Series
1999 Bonds, in substantially the form submitted to this meeting and
made a part hereof as though set forth in full herein, be and the
same is hereby approved. The Authorized Officers are, and each of
them is, hereby authorized and directed, for and in the name of the
City, to execute and deliver such 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 such agreement by such Authorized Officer.
Stone & Youngberg LLC is hereby designated as the Underwriter of
the Series 1999 Bonds.
Orrick, Herrington & Sutcliffe LLP is hereby designated as Bond
Counsel and Disclosure Counsel for the Series 1999 Bonds. The letter
agreement setting forth the terms of Orrick Herrington & Sutcliffe
LLP's engagement to provide bond counsel and disclosure counsel
services, as requested by the City, in connection with the issuance
of the Series 1999 Bonds, in substantially the form submitted to this
meeting and made a part hereof as though set forth in full herein, be
and the same is hereby approved. The Authorized Officers are, and
each of them is, hereby authorized and directed, for and in the name
of the City, to execute and deliver such 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 such agreement by such Authorized Officer.
Section 10. 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,
including, without limitation, the procurement of services and
negotiating the terms of the bond insurance policy referred to
herein.
Section 11. All actions heretofore taken by the
officers and employees of the City with respect to the issuance
of the Bonds, or in connection with or related to any of the
agreements or documents referred to herein, are hereby approved,
confirmed and ratified.
Section 12. This
immediately upon its adoption.
Resolution shall
take effect
THE FOREGOING RESOLUTION is approved and adopted by the
City Council of the City of Anaheim this 2nd day of
November ,19 99
MAyO/R~OFTHE CiTy~~~O~e~M
ATTEST:
CITY CLERK OF THE CITY OF ANAHEIM
33061.1
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ANAHEIM )
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
Resolution No. 99R-219 was introduced and adopted at a regular meeting provided by law, of the
Anaheim City Council held on the 2nd day of November, 1999, by the following vote of the
members thereof:
AYES:
MAYOR/COUNCIL MEMBERS: Feldhaus, Kring, Tait, McCracken, Daly
NOES:
MAYOR/COUNCIL MEMBERS: None
ABSENT:
MAYOR/COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim signed said Resolution No.99R-
219 on the 2nd day of November, 1999.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of
Anaheim this 2nd day of November, 1999.
C?~Y'~F THE CITY OF ANAHEIM
(SEAL)
I, SHERYLL SCHROEDER, City Clerk of the City of Anaheim, do hereby certify that the foregoing
is the original of Resolution No. 99R-219 was duly passed and adopted by the City Council of the
City of Anaheim on November 2nd, 1999.