96-153 CITY OF ANAHEIM RESOLUTION NO. 96R- 1 5 ~
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, AUTHORIZING THE INVITATION
OF PROPOSALS FOR THE PURCHASE OF NOT TO EXCEED
$100,000,000 AGGREGATE PRINCIPAL AMOUNT OF
ELECTRIC REVENUE BONDS, ISSUE OF 1996; AUTHORIZING
THE DISTRIBUTION OF A NOTICE INVITING BIDS
RELATING TO THE BONDS AND THE PUBLICATION OF A
NOTICE OF INTENTION TO SELL BONDS; AUTHORIZING
THE DELIVERY OF A PRELIMINARY OFFICIAL STATEMENT
AND A FINAL OFFICIAL STATEMENT; AND AUTHORIZING
CERTAIN OTHER ACTIONS
WHEREAS, concurrently with consideration of this resolution, this City Council has adopted
an authorizing resolution (the "Bond Resolution") to provide for the refunding of the City's Electric
Revenue Bonds, Issue of 1986, and Second Issue of 1986 and for the issuance of its Electric
Revenue Bonds for such purpose in an amount not to exceed $100,000,000 in aggregate principal
amount (the "Bonds")~ and
WHEREAS, this City Council deems it necessary and proper that proposals be invited for the
purchase of the Bonds and to provide that the Bonds be sold in the manner described below;
NOW, THEREFORE, the City Council of the City of Anaheim, California, DOES HEREBY
RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Authorization to Receive Bids. Sealed proposals for the purchase of the Bonds
shall be received by the Public Utilities General Manager (or in his absence the Assistant General
Manager for Finance and Administration (the "Manager")) at the date, time and place provided for
in a Notice Inviting Bids relating to the Bonds or at such other dates and times as shall be
determined by the Manager.
Section 2. Distribution of Notice Inviting Bids. The Manager is hereby authorized to
approve a Notice Inviting Bids for the Bonds (such approval to be conclusively evidenced by the
distribution thereof). The City Clerk is hereby authorized and directed to cause the Notice Inviting
Bids for the Bonds to be distributed to prospective bidders for the Bonds upon their request.
Section 3. Publication of Notice. The Manager is hereby authorized to approve a Notice
oflntention to Sell Bonds (such approval to be conclusively evidenced by the distribution thereof).
The City Clerk is hereby authorized and directed to cause a Notice of Intention to Sell Bonds to be
distributed to prospective bidders for the Bonds upon their request. The City's distribution of the
Notice 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.
Section 4. Withdrawal or Modification of Notice. The Manager may withdraw or modify
the Notice Inviting Bids for the Bonds and the Notice 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 Inviting Bids for the Bonds or the Notice 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 Inviting Bids for the
Bonds and the Notice of Intention to Sell Bonds with such modifications or revisions as are
approved by the Manager.
Section 5. Approval of Preliminary Official Statement. The form of the Preliminary
Official Statement presented at this meeting is hereby approved and the Manager is hereby
authorized to approve a Preliminary Official Statement relating to the Bonds in substantially the
form presented at this meeting, but with such additions, changes or modifications thereto as the
Manager and the City Attorney shall approve, 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. This
City Council hereby deems 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 City Clerk and the Manager are authorized and directed 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.
The Manager, the City Manager or the designee of either of them are hereby authorized and
directed, for and in the name and on behalf of the City, to execute and deliver to the purchasers of
the Bonds one or more final Official Statements, which shall be in substantially the form of the
Preliminary Official Statement with such additions thereto or changes therein as such officer shall
require or approve. Such approval to be conclusively evidenced by the execution and delivery
thereof, and the purchasers of the Bonds are hereby authorized to distribute copies of the Official
Statement to prospective purchasers of the Bonds and the underwriters purchasing the Bonds from
the City shall be directed to deliver such copies to all purchasers of the Bonds in the public offering.
Section 6. Credit Enhancement of Bonds. Credit enhancement of the Bonds by the
purchase of a municipal bond insurance policy or a letter of credit securing payment of the Bonds
may be secured by the Bonds if, in the opinion of the Assistant General Manager for Finance and
Administration, such credit enhancement will result in interest cost savings to the City. The
Assistant General Manager for Finance and Administration or his designee are hereby authorized
(a) to negotiate, after consultation with the City Attorney and Bond Counsel, such additional
covenants and agreements to be observed by the City as may be required by such municipal bond
insurer, and (b) to cooperate with any purchaser of or bidder for the Bonds in securing the issuance
of a municipal bond insurance policy relating to the Bonds, and the Authorized Representatives of
the City are authorized to approve and execute such covenants and agreements as may be required
by such municipal bond insurer in connection therewith.
Such municipal bond insurance policy shall be issued by one of the following providers of
municipal bond insurance: Municipal Bond Investors Assurance Corp. (MBIA), AMBAC
Indemnity Corp., Financial Guaranty Insurance Co. (FGIC), Financial Security Assurance Co.
(FSA), or Connie Lee Insurance Company; provided, however, that such company continues to be
rated in the highest rating category or at least one nationally recognized investment rating agency.
The terms and conditions of such municipal bond insurance policy shall be such as are consistent
with customary industry practice for policies securing securities such as the Bonds. Any letter of
credit to secure repayment of the Bonds, and any credit agreement or reimbursement agreement to
be entered into by the City in connection therewith, shall be approved by resolution of this City
Council adopted prior to issuance of the Bonds.
Section 7. Reserve Fund Surety. A Reserve Fund Surety Policy (as defined in the Bond
Resolution) may be secured with respect to the Reserve Requirement (as defined in the Bond
Resolution) if (a) in the opinion of the Assistant General Manager for Finance and Administration,
securing such Reserve Fund Surety Policy is preferable to the funding of the Reserve Fund with cash
in the amount required by the Bond Resolution, and (b) an Authorized Representative of the City
(as defined in the Bond Resolution) shall have certified that the Written Consent (as defined in the
Bond Resolution) has been given in accordance with the Bond Resolution. Such Reserve Fund
Surety Policy shall be issued by one of the following providers of municipal bond reserve fund
surety and insurance policies: Municipal Bond Investors Assurance Corp. (MBIA), AMBAC
Indemnity Corp., Financial Guaranty Insurance Co. (FGIC), Financial Security Assurance Co.
(FSA), or Connie Lee Insurance Company; provided, however, that such company continues to be
rated in the highest rating category or at least one nationally recognized investment rating agency.
The terms and conditions of such Reserve Fund Surety Policy and any covenants and agreements
made by the City in connection therewith shall be such as are consistent with customary industry
practice for policies with respect to reserve funds for securities such as the Bonds and Parity Bonds.
The Assistant General Manager for Finance and Administration and the City Treasurer or their
designees are hereby authorized (i) to secure a Reserve Fund Surety Policy meeting the requirements
of the Bond Resolution and this Resolution and to negotiate and to approve, after consultation with
the City Attorney and Bond Counsel, such additional covenants and agreements to be observed by
the City as may be required by the provider of the Reserve Fund Surety Policy and (ii) to liquidate
any investments in the Reserve Fund in connection with any substitution of the Reserve Fund Surety
Policy, including the repurchase agreement with Societ6 Generale, New York Branch, and to pay
any costs and fees associated therewith. Any agreement relating to such Reserve Fund Surety Policy
meeting the requirements of this Resolution may be executed by an Authorized Representative of
the City (as defined in the Bond Resolution) for and on behalf of the City concurrently with the
delivery of the Bonds to their initial purchaser or thereafter.
J;~ECG'~,NAH EIM~REFU ND~BONODCCS~SAL E R ES8 DOC 3
Section 8. Additional Actions. The Authorized Representatives of the City (as defined in
the Bond Resolution) are hereby authorized and directed jointly and severally, to do any and all
things and to execute and deliver any and all documents which they may deem necessary or
advisable in order to consummate the issuance, sale and delivery of the Bonds and otherwise to
effectuate the purposes of this Resolution, including, without limitation, executing and delivering
documents required to be delivered (i) in connection with the refunding of the 1986 Bonds, (ii)
pursuant to any Escrow Agreement or investment contract to be entered into by or on behalf of the
City, (iii) to secure a Reserve Fund Surety Policy, and (iv) pursuant to a municipal bond insurance
policy with respect to all or any portion of the Bonds, and such actions previously taken by such
officers are hereby ratified and approved.
Section 9. Attestation and Authentication. The City Clerk is hereby authorized and
directed to attest the signatures of the officers or such other officers or employees of the City as may
be required in connection with the execution and delivery of any Escrow Agreement, investment
contract, Bonds or any other related documents. The City Clerk is also hereby authorized and
directed to certify the authenticity of any documents executed by any officer or such other officers
or employees of the City as may be required on behalf of the City.
Section 10. Effective Date. This Resolution shall take effect from and after its date of
adoption.
ADOPTED, SIGNED AND APPROVED this 10 day of September, 1996.
[SEAL]
Attest:
City 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. 96R-153 was introduced and adopted at a regular meeting provided by law, of
the Anaheim City Council held on the 10th day of September, 1996, by the following vote of
the members thereof:
AYES: MAYOR/COUNCIL MEMBERS: Tait, Zemel, Feldhaus, Lopez, 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. 96R-153 on the 10th day of September, 1996.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City
of Anaheim this 10th day of September, 1996.
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 of Resolution No. 96R-153 was duly passed and adopted by the City Council of
the City of Anaheim on September 10th, 1996.
CITY CLERK OF THE CITY OF ANAHEIM