APFA2005/08/23ANAHEIM, CALIFORNIA
ANAHEIM PUBLIC FINANCING AUTHORITY
SPECIAL MEETING - AUGUST 23, 2005
The Anaheim Public Financing Authority met in special session.
Present: Chairman Curt Pringle and Board Members: Richard Chavez, Lorri Galloway, Bob
Hernandez and Harry Sidhu.
Staff Present: City Manager David Morgan, City Attorney Jack White, Secretary Sheryll
Schroeder.
A copy of the agenda for the meeting of the Anaheim Public Financing Authority was posted on
August 19, 2005 at the City Hall inside and outside bulletin boards.
At 5:37 P.M., Chairman Pringle called the regular meeting of the Anaheim Public Financing
Authority to order in a joint public comment session with Anaheim City Council and Anaheim
Redevelopment Agency.
ADDITIONS /DELETIONS TO THE AGENDA: None
PUBLIC COMMENTS:
No remarks offered during the joint Public Financing Authority /Council /Redevelopment Agency
public comment session related to the Anaheim Public Financing Authority.
At 5:50 P.M., the Public Financing Authority and Council meetings were recessed to consider
the Redevelopment Agency agenda; the Anaheim Public Financing Authority reconvened at
6:00 P.M.
PUBLIC FINANCING AUTHORITY- SPECIAL MEETING
4. RESOLUTION NO. APFA 2005 -01 RESOLUTION OF THE BOARD OF DIRECTORS
OF THE ANAHEIM PUBLIC FINANCING AUTHORITY, (1) approving the forms of and
authorizing the execution of a First Supplemental Indenture, an Amended and Restated
Remarketing Agreement and other related documents; (II) approving the delivery of a
Preliminary Reoffering Circular and the execution and delivery of a Reoffering Circular;
and (III) approving certain actions in connection therewith (related to Council Item #42).
Marcie Edwards, Public Utilities General Manager, presented a brief staff report indicating this
was a request to approve the reoffering and sale of the APFA Revenue Bonds, Series 1999.
She reported when the bonds were structured, the 1999 issue was to generate sufficient net
savings in the range of five percent to justify the borrowing. In order to do this, the bonds
included a mandatory tender to bondholders on October 1, 2005 which required the bondholder
to surrender the security back to the issuer. She stated there was a hypothetical savings to
ratepayers of almost $9 million due to long term rates in 1999 of 5.8 percent versus the
Anaheim Public Financing Authority
August 23, 2005
Page 2
projected 2005 rates at 4.5 percent. She commented that one option to satisfy the tender
provision was to use cash reserves to purchase the bonds from the existing bondholders rather
than reoffering the bonds, however since the Department was still restoring its cash reserve
position as a result of power costs incurred during the energy crisis as well as potential power
portfolio renewable and reserve mandates, the Department believed it made economic sense to
lock in long term low interest rates now for the benefit of the ratepayers.
Ms. Edwards recommended Council take action to approve this item and the related Item No.
42 on the Council agenda.
After some discussion on the specifics of the reoffering, Council Member Chavez moved to
approve Resolution APFA 2005 -01 of the Anaheim Public Financing Authoring, approving forms
and authorizing execution of a First Supplemental Indenture, an Amended and Restated
Remarketing Agreement and other related documents, (II) approve the delivery of a Preliminary
Reoferring Circular and execution and deliver of a Reoffering Circular and (III) approving certain
actions in connection therewith; seconded by Council Member Sidhu. Roll Call Vote: Ayes — 5:
Chairman Pringle, Authority Members: Chavez, Galloway, Hernandez, and Sidhu. Motion
Carried.
5. Minutes of the Financing Authority meeting of June 14, 2005.
Council Member Sidhu moved to approve the minutes of the June 14 minutes of the Financing
Authority, seconded by Council Member Galloway. Roll Call Vote: Ayes — 5: Chairman Pringle,
Authority Members: Chavez, Galloway, Hernandez, and Sidhu. Motion Carried.
ADJOURNMENT:
There being no further business, Chairman Pringle adjourned the Special Meeting of the
Anaheim Public Financing Authority at 6:16 P.M.
Sheryll Schroeder, MMC
Secretary, Anaheim Public Financing Authority