94-002 CITY OF AN~HEIM RESOLUTION NO. 94R- 2
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA (I) APPROVING AN INSTALLMENT
PURCHASE AGREEMENT AND AN INDENTURE OF TRUST; (II)
AUTHORIZING THE EXECUTION AND DELIVERY OF AN
OFFICIAL STATEMENT; AND (III) AUTHORIZING CERTAIN
ACTIONS 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 replacement, construction and/or
reconstruction of the City's Lenain Filtration Plant and related
facilities including additions and improvements thereto (the
"Facilities"); and
WHEREAS, it has been proposed that the Authority acquire
the Facilities and that the city purchase the Facilities from the
Authority pursuant to an Installment Purchase Agreement, dated as
of January 1, 1994, by and between the City and the Authority (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 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 January 1, 1994 (the "Indenture"), the proposed
form of which has been presented to this City Council, 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
$20,000,000, under the provisions of Article 4 (commencing with
Section 6584) of Chapter 5 of Division 7 of Title 1 of the
Government Code of the State of California (the "Act"); and
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
LA01 \6169\11652.4 94601.21
NOW, THEREFORE, the City Council of the City of Anaheim,
California, does hereby resolve, determine and order as follows:
SECTION 1: 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 Indenture 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 Installment Purchase Agreement. The
Installment Purchase Agreement and the Indenture shall be executed
in the form hereby approve~; with such additions thereto and
changes therein as are approved in accordance with Section 5
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. The Manager is hereby authorized to approve
an Official Statement 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. The Mayor, the City Manager and the Public Utilities
General Manager are each hereby authorized to execute a final form
of the Official Statement.
SECTION 5: 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. Further, the Manager is hereby authorized
to select and designate a trustee to act with respect to the Bonds
with the duties and powers of such trustee as set forth in the
LA01 \6169\1163~.~ 2 96601.21
Indenture (as executed and delivered). 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 $20,000,000;
(b) the final Purchase Payment under the Installment
Purchase Agreement, which shall be due and payable not later
than December 31, 2019;
(c) the maximum rate of interest which may be paid on the
Bonds, which shall not exceed 9.00%; and
(d) if the Manager shall decide to obtain municipal bond
insurance with respect te-the financing, the premium for such
insurance, which shall not exceed 0.35% of the payments
insured.
~, SECTION 6: 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 7: 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 and the consummation of the transactions contemplated
by the Installment Purchase Agreement, the Indenture and this
Resolution, and such actions previously taken by such officers are
hereby ratified and confirmed.
SECTION S: This Resolution shall take effect from and
after its date of adoption.
LA01 \6169\1163~.~ 3 9~60~.~1
PASSED AND ADOPTED this 11th day of January, 1994, by the
following vote:
[SEAL] ~ city
LA01 \6169\11632.4 4 94601.21
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. 94R- 2 was
introduced and adopted at a regular of the City Council of the City
of Anaheim duly called, noticed and held on the 11th day of
January , 1994, by the following vote of the members thereof:
AYES: COUNCIL MEMBERS: Feldhaus, Simpson, Pickler. Hunter~ 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. 94R- 2 on the 12th day of January ,
1994.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
seal of the city of Anaheim this 12~b day of January , 1994.
CITY CLERK OF THE CITY OF
ANAHEIM
(SEAL)
I, LEONORAN. SOHO. , city Clerk of the city of Anaheim, do hereby
certify that the foregoing is the original Resolution No. 94R-2
duly passed and adopted by the Anaheim city Council on January 11 ,
1994.
CITY CLERK
LA01 %6169%11632.4 94601