1983/04/27City Hall, Anaheim~ California - COUNCIL MINUTES - April 27, 1983~ 1:30 P.M.
PRESENT:
AB SENT:
PRESENT:
175.137:
The City Council of the City of Anaheim met in adjourned regular
session.
COUNCIL MEMBERS: Kaywood, Pickier, Overholt, Bay and Roth
COUNCIL M~MBERS: None
ADMINISTRATIVE ASSISTANT: Cindy King
CITY ATTORNEY: William P. Hopkins
CITY CLERK: Linda D. Roberts
PUBLIC UTILITIES GENERAL MANAGER: Gordon W. Hoyt
Mayor Roth called the meeting to order at 1:30 p.m.
SALE OF ELECTRIC AND WATER UTILITY REVENUE ANTICIPATION NOTES AND
ELECTRIC REVENUE BONDS, ISSUES A, B AND C OF 1983: Public Utilities General
Manager Gordon Hoyt stated that they had now completed the pricing of the
bonds, the new total being $130,400,000, Issues A, B and C of 1983. The net
interest cost was 8.953 percent and the true interest cost, 9.005 percent,
meaning that San Onofre now was financed essentially with 9 percent money.
There were generally three purposes for the bonds, the first to refund the
outstanding Bond Anticipation Notes that they had issued to carry construction
forward for the last couple of years, to refund the 1982 Issues A and B, $70
million bonds, and to capitalize the interest on that issue up through six
months past the current estimated commercial operation date and providing for
a certain amount of new money. The proceeds of the Issue, about $75 million,
would go into the escrow fund of Issue C to refund the 1982 bonds.
Approximately $32.4 million would go into the escrow fund for the Bond
Anticipation Notes to retire the outstanding notes. Approximately $2 million
would go into the construction fund, ~12.75 million into the capitalized
interest, $4.5 million for the bond reserve fund, ~2.5 million for the bond
discount, and $698,000 for cost of issuance. At the same time that they
closed those bonds on June 1, they planned to issue $15.2 million of Electric
Revenue Anticipation Notes to finance the nuclear fuel program. They
anticipated that the program would stay in effect for many years and pay down
in the last few years of operation of the plant. They were currently working
on sizing of Water Revenue Anticipation Notes and planned a $1.5 to $2 million
issue in June of 1983.
Mr. Hoyt then briefed the proposed Resolutions 83R-168 through 83R-172. After
doing so, he stated that a number of representatives were present from the
various firm~ Ed Lon~, Mud~e Ro~e Guthri~ Alexander and Fardon, Bond
Counsel; Rich Lincer, Cleary-Gottlieb, Underwriters Counsel; John Donovan,
Josephine Curran and Margaret Chan, Salomon Bros., Inc.; Bob MacDonald, James
J. Lowrey & Co; Alan Watts, Rourke and Woodruff, Special Counsel; and members
of the Public Utilities Department staff. He thereupon introduced Mr. John
Donovan, Managing Director of Salomon Bros., who would speak on the proposal,
after which Mr. Bob McDonald, James J. Lowery & Co., would speak on their
recommendations, to be followed by questions.
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Cit~ Hall, Anaheim, California - COUNCIL MINUTES - April 27, 1983, 1:30 P.M.
Mr. John Donovan, Managing Director, Salomon Bros., then briefed the Council
on the documents contained under Tab 1 and Tab 2 of the blue booklet entitled,
"Bid Su ~mitted For ~130,400,000, City of Anaheim, California, Electric Revenue
Bonds, ~ssues A, B and C of 1983, April 27, 1983."
Mr. BoG MacDonald, James J. Lowrey & Co., relayed the background of the sale
and so,~e of the milestones they had reached in executing the sale. At the
conclusion of his presentation, he recommended that they accept the bid of
Salo~n Bros., it was an excellent sale, and it spoke well of the program,
what they were doing, and of the City.
Question,s were then posed to Mr. Hoyt by Mayor Roth for purposes of
clarifJ~ation relative to the interest rate. Mr. Hoyt further clarified that
they dic not extend the maturities of the bonds; Councilman Bay stated they
were not allowed to extend the maturities under the City Charter.
Mr. Hoyt-thereupon recommended approval of the proposed resolutions.
Councilman Roth offered Resolution Nos. 83R-168 through 83R-172, both
inclusive, for adoption. Refer to Resolution Book.
RESOLUTION NO. 83R-168: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANA~iIM, CALIFORNIA RELATING TO THE ISSUANCE OF ELECTRIC REVENUE ANTICIPATION
NOTES OF SAID CITY PURSUANT TO ORDINANCE NO. 4416 OF SAID CITY COUNCIL.
RES LUTION NO. 83R-169: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANA, i~IM, CALIFORNIA RELATING TO THE ISSUANCE OF WATER REVENUE ANTICIPATION
NOT£~i~ OF SAID CITY PURSUANT TO ORDINANCE NO. 4418 OF SAID CITY COUNCIL.
RESOLUTION NO. 83R-170: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA APPROVING THE FORM OF A REVOLVING CREDIT AGREEMENT, AN
ISSUING AND PAYING AGENT AGREEMENT AND A DEALER BANK AGREEMENT RELATING TO
REVENUE ANTICIPATION NOTES OF SAID CITY AND AUTHORIZING THE EXECUTION AND
DELIVERY THEREOF.
RESOLUTION NO. 83R-171: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM~ CALIFORNIA, AUTHORIZING THE ISSUANCE OF $10,000,000 ELECTRIC REVENUE
BONDS, ISSUE A OF 1983, $40,000,000 ELECTRIC REVENUE BONDS, ISSUE B OF 1983,
AND ~80,400,000 ELECTRIC REVENUE BONDS, ISSUE C OF 1983, OF THE CITY AND
PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SUCH BONDS.
RESuLUTION NO. 83R-172: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEim', CALIFORNIA, APPROVING BOND PURCHASE AGREEMENT RELATING TO ELECTRIC
REVENUE BONDS, ISSUES A, B AND C OF 1983, AND AUTHORIZING THE EXECUTION,
DELIVER%3 AND PERFORMANCE THEREOF; APPROVING FINAL OFFICIAL STATEMENT RELATING
TO SAID BONDS; APPOINTING PAYING AGENTS FOR SAID BONDS; AND APPROVING ESCROW
AGREEME'T RELATING TO THE DEFEASANCE OF ELECTRIC REVENUE BONDS, ISSUE A OF
1982, aND ISSUE B OF 1982, AND AUTHORIZING THE EXECUTION, DELIVERY AND
PERFO~,~ANCE THEREOF.
319
City Hall, Anaheim, California - COU~'~C!L MINUTES - April 27, 1983, 1:30 P.M.
Roll Call Vote:
AYES:
NOES:
ABSENT:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
COUNCIL MEMBERS:
Kaywc~d, Pickler, Overhoit, Bay and Roth
None
None
The Mayor declared Resolution Nos. $3R-168 through 83R-172, both inclusive,
duly passed and adopted.
ADJOURNMENT: Councilman Roth moved to adjourn. Councilman Pickler seconded
the motion. MOTION CARRIED. (1:58 p.m.)
LINDA D. ROBERTS, CITY CLERK
320