93-069 CITY OF AN/~IEIM RESOLUTION NO. 93R-69
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA (I) AUTHORIZING THE INVITATION
OF PROPOSALS FOR THE PURCHASE OF NOT TO EXCEED
$140,000v000 AGGREGATE PRINCIPALAMOUNT OF BONDS BY
THE ANAHEIM PUBLIC FINANCING AUTHORITY; (II)
AUTHORIZING ONE OR MORE NOTICES INVITING BIDS
RELATING TO THE BONDS AND ONE OR MORE NOTICES OF
INTENTION TO SELL BONDS; (III) APPROVING AN
INSTALLMENT PURCHABE AGREEMENT AND ESCROW
AGREEMENT; (IV) APPROVING THE REFUNDING OF CERTAIN
CERTIFICATES OF PARTICIPATION OF THE CITY; (V)
AUTHORIZING THE DELIVERY OF PRELIMINAHY OFFICIAL
STATEMENTS AND AN OFFICIAL STATEMENT AND (VI)
CERTAIN ACTIONB 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 the acquisition of an interest in a
coal-fueled electric generating unit known as Unit 4 of San Juan
Generating Station and related facilities (the "Facilities"); and
WHEREAS, the City has previously executed and delivered
certificates of participation (the "Certificates") in connection
with the financing of certain improvements (the "Projects") to the
electric system of the City; and
WHEREAS, it has been determined that due to prevailing
financial market conditions it is in the best interests of the City
to realize interest rate savings by refunding a portion of the
Certificates; and
WHEREAS, it has been proposed that the Authority assist
the City in refunding certain of the Certificates; and
WHEREAS, it has been proposed that the Authority acquire
the Facilities and a portion of each of the Projects and that the
City purchase such Facilities and such portion of each of the
Projects from the Authority pursuant to certain Installment
Purchase Agreements, each dated as of May 1, 1993, by and between
the City and the Authority (together, the "Installment Purchase
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Agreement"), the proposed forms of which have 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 May 1, 1993, by and between the Authority and
The Bank of New York Trust Company of California, as Trustee (the
"Trustee") (the "Indenture"), for the purpose of raising funds
necessary to provide such financial assistance to the City, the
issuance of its revenue bonds (the "Bonds") in the aggregate
principal amount of not to exceed $140,000,000 under the provisions
of Article 4 (commencing with Section 6584) of Chapter 5 of
Division 7 of Title i of the Government Code of the State of
California (the "Act"); and
WHEREAS, it has been proposed that certain proceeds
received from the sale of the Bonds and certain other moneys be
deposited in escrow accounts pursuant to certain Escrow Agreements
(together, the "Escrow Agreement"), each dated as of May 1, 1993,
between the City and the Escrow Agent (as defined in the respective
Escrow Agreement), the proposed forms of which have been presented
to this City Council; and
WHEREAS, this City Council deems it necessary and proper
that proposals be invited for the purchase of not to exceed
$140,000,000 aggregate principal amount of refunding and/or new
money Bonds, and that the Bonds be sold in the manner described
below;
WHEREAS, the City has determined that it is in the best
public interest of the City and the citizens of the City to approve
certain documents mentioned above 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:
SECTION X~ Pursuant to the Act, the city 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 and
the Escrow Agreement 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
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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 City Council 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 or the Public Utilities Financial
Services Manager of the City (the "Manager") 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. Sealed proposals for the purchase of the
Bonds shall be received by the Manager 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 Manager.
SECTION $. The Manager is hereby authorized to approve
one or more Notices Inviting Bids for the Bonds (such approval to
be conclusively evidenced by the distribution thereof). The
Manager is hereby authorized to sell the refunding portion of the
Bonds on the same date as the new money portion of the Bonds, or on
such other date as the Manager shall determine. The city Clerk is
hereby authorized and directed to cause the Notice(s) Inviting Bids
for the Bonds to be distributed to prospective bidders for the
Bonds upon their request.
SECTION 6. The Manager is hereby authorized to approve
one or more Notices of Intention to Sell Bonds (such approval to be
conclusively evidenced by the distribution thereof). The city
Clerk is hereby authorized and directed to cause one or more
Notice(s) of Intention to Sell Bonds to be distributed to
prospective bidders for the Bonds upon their request. The city's
distribution of the Notice(s) of Intention to Sell Bonds shall
constitute the City's notice of a public sale and the City shall
not be required to provide notice pursuant to Section 53692 of the
California Government Code.
BECTION 7. The Manager may withdraw or modify the
Notice(s) Inviting Bids for the Bonds and the Notice(s) of
Intention to Sell Bonds, or either, at any time by notice published
via Munifacts wire or other means determined by the Manager to be
reasonably calculated to reach potential bidders for the Bonds. If
the Manager should withdraw the Notice(s) Inviting Bids for the
Bonds or the Notice(s) 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 city
Clerk is hereby authorized to redistribute the Notice(s) Inviting
Bids for the Bonds and the Notice(s) of Intention to Sell Bonds
with such modifications or revisions as are approved by the
Manager.
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SECTION S. The Manager is hereby authorized to approve
one or more Preliminary official Statements relating to the Bon~s
(such approval to be conclusively evidenced by the delivery
thereof) (the "Preliminary Official Statement") and the City
Council hereby approves the use of the Preliminary Official
Statement in connection with the offering and sale of the Bonds.
The 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 Manager is hereby authorized to
approve one or more Official Statements relating to the Bonds (such
approval to be conclusively evidenced by the execution and delivery
thereof) (the "Official Statement"), and the City Council hereby
approves the use of the Official Statement by the successful bidder
in connection with the offering and sale of the Bonds, and the City
Council 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.
SECTION 9. The City Clerk and the 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(s)
Inviting Bids for the Bonds and the Preliminary 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 Manager. The Manager is 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 $140,000,000;
(b) the final Purchase Payment under the Installment
Purchase Agreement, which shall be due and payable not later
than December 31, 2023;
(c) the outstanding Certificates of the City to be
refunded by the Bonds;
(d) the maximum rate of interest which may be paid on the
Bonds, which shall not exceed 9.00%; and
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(e) the amount of any equity contribution to be provided
by the City in connection with the financing of the
Facilities, which shall not exceed $2,000,000; and
(f) if the Manager shall decide to obtain municipal bond
insurance with respect to the financing, the premium for such
insurance, which shall not exceed 0.40% of the payments
insured.
SECTION X~: The Purchase Payments and all other payments
with respect to Qualified Obligations (as defined in the
Installment Purchase Agreement) shall be secured by a pledge,
charge and lien upon the Surplus Revenues in the Qualified
Obligations Account (as defined in the Installment Purchase
Agreement) and shall be paid from Surplus Revenues in the Qualified
Obligations Account unless otherwise paid from other sources of
legally available funds. Purchase Payments and all other payments
with respect to Qualified Obligations shall be equally secured by
the Surplus Revenues in the Qualified Obligations Account without
priority for number or date. The Surplus Revenues in the Qualified
Obligations Account shall be held in trust by the Treasurer of the
City for the payment of the Purchase Payments and any other
Qualified Obligations.
SECTION XZ~ The Mayor, the City Manager, the Public
Utilities General Manager and the Financial Services Manager of the
Public Utilities Department, the City Clerk, City Attorney and City
Treasurer and the other officers and officials of the City are
hereby authorized and directed, jointly and severally, for and in
the name of the City, to do any and all things and to take all
actions, including execution and delivery of any and all
assignments, notices, consents, instruments of conveyance, warrants
and other documents which they, or any of them, may deem necessary
and advisable in order to consummate the lawful issuance and sale
of the Bonds, the refunding of the Certificates and the
consummation of the transactions contemplated by the Installment
Purchase Agreement, the Escrow Agreement and this Resolution, and
such actions previously taken by such officers are hereby ratified
and confirmed.
8E~IO~ ~$~ This City Council hereby finds and
determines that the transfer of title to a portion of the Projects
to the Authority is in the best interests of the City, and hereby
agrees to transfer such title to the Authority.
SE~IO~ ~4~ Resolution No. 92R-219 of the City adopted
October 20, 1992 is hereby rescinded and shall be of no further
effect.
SE~IO~ XS~ This Resolution shall take effect from and
after its date of adoption.
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PASSED AND ADOPTED this 4th day of May, 1993, by the
following vote:
AYES: Feldhaus, Hunter, Pickler, Simpson, Daly
NOES: None
ABSENT: None
~ May %~
ATTEST:
City Clerk
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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. 93R- 69 was
introduced and adopted at a regular of the City Council of the City
of Anaheim duly called, noticed and held on the 4th day of May,
1993, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Feldhaus, Hunter, Pickler, Simpson, Daly
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed
said Resolution No. 93R-69 on the 5th day of May, 1993.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
seal of the City of Anaheim this 5th day of May, 1993.
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 Resolution No. 93R-69
duly passed and adopted by the Anaheim City Council on May 4 ,
1993.
CITY CLERK
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