1982/05/07City Hall, Anaheim~ California - COUNCIL MINUTES - May 7~ 1982~ 9:30 P.M.
The City Council of the City of Anaheim met in adjourned
regular session.
PRESENT:
ABSENT:
VACANCY:
PRESENT:
COUNCIL MEMBERS: Overholt, Ka~,,ood and Bay
COUNCIL MEMBERS: Roth
COUNCIL MEMBERS: One
CITY MANAGER: William O. Talley
CITY ATTORNEY: William P. Hopkins
CITY CLERK: Linda D. Roberts
PUBLIC UTILITIES GENERAL MANAGER: Gordon W. Hoyt
ASSISTANT GENERAL MANAGER--POWER RESOURCES: Dale L. Pohlman
FINANCE DIRECTOR: George P. Ferrone
CITY TREASURER: Ruth Redepenning
Mayor Bay called the adjourned regular meeting to order at 9:50 a.m.
175: SALE OF $70 MILLION ELECTRIC REVENUE BONDS - ISSUE "A" AND "B" OF 1982 AND
APPROVING THE BOND PURCHASE AGREEMENT RELATING TO ELECTRIC REVENUE BONDS REGARDING
SAN ONOFRE~ UNITS 2 AND 3: Public Utilities General Manager Gordon Hoyt reported
on the results of the negotiated sale activities which took place in New York
this week where they managed to sell, subject to the Council's approval and
execution of the necessary documents, $70 million of Electric Revenue Bonds,
under very favorable conditions--the true interest rate being 11.35 percent--gross
spread $20.82, and the bonds had a 5-year call provision. He recommended that
the City authorize the issuance of the bonds under the terms and conditions
contained in the proposed Resolution, and az further recommended in his memorandum
dated May 7, 1982. He felt that James J. Lowrey and Company and the marketing
people made possible the very aggressive pricing on the issue and the 5-year
call provision, both being very favorable to Anaheim. Also, Salomon Bros., as
Senior Manager on the transaction, did an outstanding job of getting the bonds
marketed. Mr. Bob McDonald of James J. Lowrey and Company and Fenn Putman of
Salomon Bros. were present to brief the Council on the bonds and bid documents.
Mr. Bob McDonald, James J. Lowrey and Company, explained that this was Phase II
of the financing of San Onofre, and they were bringing in a rate which was
substantially to the market and at a p~ice which was very beneficial. They
were talking about a great deal of savings to the rate payers. He then briefed
Chart Tab 3 (see blue folder entitled, "Bid Submitted for $70 Million City of
Anaheim, California--S18 Million Electric Revenue Bonds, Issue "A" of 1982,
$52 Million Electric Revenue Bonds, Issue "B" of 1982, May 7, 1982"). In
concluding, he recommended that the Council accept the bid which he ~elt was a
superior one.
Mr. Fenn Putman, Salomon Bros., then briefed Tab 1 through 6 of the aforementioned
booklet, Terms of the Bid, Comparative Spreads on Recently Negotiated Electric
Revenue Bond issues, Yield Comparison for Salomon Bros. AA Electric Revenue Index,
401
.City Hall~ Anaheim~ California - COUNCIL MINUTES - May 7, 1982, 9:30 P.M.
Yield History for U.S. Treasury Bond 13.875 of 5/15/11, Components of Gross
Spread, Bond Market Round-up and Comments on Credit for the Week Ending
April 30, 1982.
Mr. Hoyt then introduced the proposed Resolutions followed by questions from
the Council before the Resolutions were offered.
Councilman Bay offered Resolution No. 82R-238 and 82R-239 for adoption. Refer
to Resolution Book.
RESOLUTION NO. 82R-238: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, AUTHORIZING THE ISSUANCE OF $18,000,000 ELECTRIC REVENUE
BONDS, ISSUE A OF 1982, AND $52,000,000 ELECTRIC REVENUE BONDS, ISSUE B OF
1982, OF THE CI%Y AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF
THE BONDS.
RESOLUTION NO. 82R-239: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ANAHEIM, CALIFORNIA, APPROVING THE BOND PURCHASE AGREEMENT RELATING TO
ELECTRIC REVENUE BONDS, ISSUE A OF 1982 AND ISSUE B OF 1982 AND AUTHORIZING
THE EXECUTION, DELIVERY AND PERFORMANCE THEREOF, APPROVING THE FINAL OFFICIAL
STATEMENT RELATING TO SAID BONDS AND APPOINTING PAYING AGENTS FOR SAID BONDS.
Roll Call Vote:
AYES: COUNCIL MEMBERS:
NOES: COUNCIL MEMBERS:
ABSENT: COUNCIL MEMBERS:
VACANCY: COUNCIL MEMBERS:
Overholt, Kaywood and Bay
None
Roth
One
The Mayor declared Resolution Nos. 82R-238 and 82R-239 duly passed and adopted.
RECESS - CLOSED SESSION: Councilman Bay moved to recess into Closed Session to
discuss matters of potential litigation and personnel. Councilwoman Kaywood
seconded the motion. Councilman Roth was absent. One Vacancy. MOTION
CARRIED. (10:15 a.m.)
AFTER RECESS: The Mayor called the meeting to order, all Council Members being
present with the exception of Councilman Roth. One Vacancy. (11:00 a.m.)
ADJOURNMENT: Councilwoman Kaywood moved to adjourn. Councilman Overholt
seconded the motion. Councilman Roth was absent. One Vacancy. MOTION CARRIED.
(11:00 a.m.)
LINDA D. ROBERTS, CITY CLERK
402