78-486
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RESOLUTION NO. 78R- 486
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RESOLUTIONiOF THE CITY COUNCIL OF THE CITY
OF ANAHEIM~. CALIFORNIA, APPROVING THE OFFICIAL
STATEMENT tb BE USED IN CONNECTION WITH THE
ELECTRIC ~VENUE BONDS, ISSUE OF 1978 OF SAID
CITY.
The City C~~ncil of,the City of Anaheim, California,
DOES HEREBY RESOLVE,. bETERMIN~ AND ORDER as follows:
Section 1. This City Council hereby approves the
official statement t~ be used in connection with the issuance
and sale of the City's Electric Revenue Bonds, Issue of 1978,
in substantially the form presented on this date and annexed
hereto, marked Exhibit "A", and authorizes its distribution
to prospective purchasers of the Bonds.
ADOPTED, S~GNED AND APPROVED this first day of
August, 1978.
ATTEST:
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C~RK OF THE- ..-' OFANMIEIM
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8/1/78
EXHIBIT "A"
NOTICE; INVITING BIDS ON $42,000,000 ELECTRIC
REVENUE BONDS, ISSUE OF 1978 OF mE
CITY OF ANAHEIM, CALIFORNIA
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NOTICE IS HEREBY QJ1VEN that sealed proposals for the purchase of $42,000,000 par value
Electric Revenue Bonds of tht 'City of Anaheim, California, will be received by the City Council of
the City at the place and up td the time below specified:
TIME: Tuesday, August 22, 1978
10:00 o'clock A.M. (P.D.S.T.)
PLACE:
Office of the City Clerk
City Hall
204 East Lincoln Avenue
Anaheim, California
City of Anaheim
% Linda D. Roberts
City Clerk
City Hall
204 East Lincoln Avenue
Anaheim, California 92805
MAILED
BIDS:
Opening of BieIs: The b~ will be rec4ived by the City Clerk at the time above specified. The
bids will be opened by the Cle~ immediately following receipt and will be presented to the City Council
for award later that day.
Issue: $42,000,000 desig,lj.ted "ELEC1RIC REVENUE BONDS, ISSUE OF 1978," consisting of
8,400 bonds, numbered 1 to 8.<IX>, both inclusive, of the denomination of $5,000 each, dated August 1,
1978.
Maturities: The bonds wfll mature in cOnsecutive numerical order on August 1 in each year and
in the amounts as follows:
Principal PrincIpal Prindpal
Year AmOllDt Year AmOUDt Year AmOUDt
1983__...__...__ $ 475,000 1993............ $ 925,000 2003............ $1,725,000
1984_.........__ 525,000 1994....____.... 975,000 2004__...___.... 1,850,000
1985.__......__. 550,000 1995__.__....... 1,025,000 2005....__....__ 1,950,000
1986___......... 575,00Q 1996_........... 1,100,000 2006___......... 2,075,000
1987...0.,"'__, 625,000 1997...0.,_____, 1,175,000 2007..__..____.. 2,200,000
1988__.......... 675,000 1998__.......... 1,250,000 2008.......____. 2,350,000
1989............ 700,000 1999............ 1,325,000 2009............ 2,500,000
1990_______..... 750,00Q 2000...._____m 1,425,000 2010............ 2,650,000
1991..........0. 800,000 2001............ 1,525,000 2011..__.....__. 2,825,000
r", 1992..........__ 850,000 2002....____.... 1,625,000 2012__.___....__ 3,000,000
Interest: The bonds shan bear interest at a rate or rates to be fixed upon the sale thereof but not
to exceed 8% per annum, pay~1ble semiannually on the first days of February and August of each year.
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Payment: Said bonds an4 the interest thereon will be payable in lawful money of the United States
of America at the office of th~ City Treasurer of the City of Anaheim, in said City, or, at the option
of the holder, at any paying agent of the City in Los Angeles or San Francisco, California, Chicago,
TIlinois, or New York, New York.
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Registration: The bonds 'fill be coupon bonds registrable as to principal only or as to both principal
and interest, and the form of r~gistration may be changed, or the bonds discharged from registration, all
in accordance with the prO\i>ions in the resolution providing for the issuance of the bonds (the
"Resolution") .
Redemption: The bonds iIl).aturing on or prior to August 1, 1988, shall not be subject to call or
redemption prior to maturity. . The bonds maturing on or after August 1, 1989, or any of them, may
be called before maturity and re(leemed, at the option of the City, on August 1, 1986, or on any interest
payment date thereafter prior'to maturity, at a redemption price for each redeemable bond equal to
1 OO~ % of the principal am~Pt thereof, plus ~ % of such principal amount for each whole twelve
months' period and for any t!etnaining fraction of a twelve months' period from the date fixed for
redemption to the maturity da.e of such bond, but the redemption price, including premium payable at
any time upon redemption, shaJl not exceed 1031;2 % of such principal amount. All or any of the bonds
subject to call may be called fQr' redemption at anyone time. If less than all of the bonds are redeemed
at anyone time, such bonds $JiJ.all be redeemed only by complete maturity or maturities as selected
by the City Council at its di$cretion.
Purpose of Issue: Said bqnds are the third series of a total issue of $150,000,000 authorized at an
election held in the City on Ml1rch 4, 1975, to finance the acquisition and construction of facilities,
property and rights related to dil,e generation, transmission and distribution of electrical energy for the
City and its inhabitants. The' proceeds of this series will be used primarily to pay a portion of the
cost of acquiring an ownership interest in Units 2 and 3 of the San Onofre Nuclear Generating Station,
now under construction, to pay interest on the bonds during the construction period, and to increase
the bond reserve fund balance.
Security: Said bonds are iS$ued under ud pursuant to Section 1210 of the Anaheim City Charter,
procedural Ordinance No. 298pof the City and the Resolution. In accordance with said Section 1210,
said Ordinance No. 2980 an~said Resolution, the bonds shall be special obligations of the City,
payable both as to principal and interest and as to any premiums upon the redemption of any thereof
prior to maturity only out of t~Electric Revenue Fund and not out of any other fund or moneys of the
City; provided, however, that this shall not preclude payment of principal, interest or premiums
from certain other sources as enumerated in the Resolution.
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TERMS OF SALE
Interest Rate: The maxHnum rate bid may not exceed 8% per annum, payable semiannually.
Each rate bid must be a mu1~~le of 1;8 or %0 of 1%. No bond shall bear more than one interest
rate, and all bonds of the satne maturity shall bear the same rate. Each bond must bear interest
at the rate specified in the bid from its date to its fixed maturity date. Only one coupon will
be attached to each bond for' each installment of interest thereon, and bids providing for additional
or supplemental coupons win. be rejected.
Award: The bonds shall' be sold for cash only. All bids must be for not less than all of the
bonds hereby offered for sale ~~d each bid shall state that the bidder offers par and accrued interest
to the date of delivery, the prtidrium, if any, and the interest rate or rates not to exceed that specified
herein, at which the bidder ~rs to buy said bonds. Each bidder shall state in his bid the total
interest cost in dollars and the! ~Canadian" or true interest rate, which shall be considered informative
only and not a part of the bid.
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Highest Bidder: The bonds will be sold to the bidder making a bid conforming to the terms of
the offering, and which, on the basis of the lowest annual interest cost, determined in the manner here-
inafter stated, is the best bid. The manner of determining annual interest cost for the purpose of
determining whether such inter~st cost is within the maximum specified herein, and for the purpose
of determining which is the best bid received, is to double the semiannual rate, compounded semi-
annually, necessary to discou~ the amounts payable at the respective principal and interest maturity
dates under each offer to the date of the Bonds and to the purchase price stated in that offer, not
including interest accrued to tbe date of delivery.
The purchaser must pay *c;1crued interest from the date of the bonds to the date of delivery com-
puted on a 36O-day year basis~ The cost of printing the bonds will be borne by the City.
Right of Rejection: The City reserves the right, in its discretion, to reject any and all bids and
to the extent not prohibited by law to waive any irregularity on informality in any bid.
Prompt Award: The Ci~ will take action awarding the bonds or rejecting all bids not later
than twenty-six (26) hours ~er the time herein prescribed for the receipt of proposals; provided
that the award may be made att~r the expiration of the specified time if the bidder shall not have given
to the City Council notice in ~ting of the withdrawal of such proposal.
Place of Delivery; Fun~ 'or Payment: Delivery of said bonds will be made to the successful
bidder at Jeffries Banknote Cqrt.pany, 1330 West Pico Boulevard, Los Angeles, California, or at any
other place agreeable to both t~e successful bidder and the City. Payment for the bonds shall be made
in Federal Reserve Bank Fun.s or other immediately available funds.
Prompt Delivery; Canceut.OD for Late Delivery: It is expected that the bonds will be delivered
to the successful bidder within! ~O days from the date of sale thereof. The successful bidder shall have
the right, at his option, to c~~1 the contraet of purchase if the City shall fail to execute the bonds
and tender them for delivery vtithin 60 days from the date herein fixed for the receipt of bids, and in
such event the successful bid4er shall be entitled to the return of the check accompanying his bid.
The City expects to make sucl~ delivery in the form of definitive bonds, but reserves the right to make
such delivery in the form of temporary bonds, exchangeable for definitive bonds, at no cost to the
purchaser.
Form of Bid: Each bid,. tbgether with the bid check, must be in a sealed envelope, addressed
to the City Council with the e!niVelope and bid clearly marked "Proposal for the Purchase of Electric
Revenue Bonds, Issue of 1978." Each bid must be in accordance with the terms and conditions set
forth in this notice and must be submitted on, or in substantial accordance with, the bid form provided
by the City.
Bid Check: A certified ot cashier's check on a responsible bank or trust company in the amount
of $840,000 payable to the ot<kr of the City must accompany each proposal as a guaranty that the
bidder, if successful, will accelit and pay for said bonds in accordance with the terms of his bid. The
check accompanying any acce~ proposal sball be applied on the purchase price or, if such proposal
is accepted but not perform~, unless such failure of performance shall be caused by any act or
omission of the City, shall then be cashed and the proceeds retained by the City. The check accompanying
each unaccepted proposal will ~ returned promptly.
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C..... in Tax Exempt ~ At an~ time before the bonds are tendered for delivery, the
successful bidder may dis~and withdraw the proposal if the interest received by private holders
from bonds of the same type and character shall be declared to be taxable income under present
federal income tax laws, eithet by a ruling of the Internal Revenue Service or by a decision of any
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federal court, or shall be decllited taxable, or be required to be taken into account in computing any
federal income taxes, by the terms of any federal income tax law enacted subsequent to the date of
this notice.
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Legal Opinion: The opinion of O'Melveny & Myers, attorneys, approving the validity of said
bonds and opining that interest on the bonds is exempt from income taxes of the United States of
America under present federal income tax laws, and that such interest is also exempt from personal
income taxes of the State of Gailifornia under present state income tax laws, will be made available to
the successful bidder at the tiJn~ of delivery ()f the bonds, at the expense of the City. A copy of such
opinion, certified by an officer of the City by his facsimile signature, will be printed on the back of each
bond. No charge will be made to the purchaser for such printing or certification.
CUSIP Numbers: It is a'~cipated that CUSIP numbers will be printed on the bonds, but neither
the failure to print such num~r$ on any bond nor error with respect thereto shall constitute cause for a
failure or refusal by the purcl!aser thereof to accept delivery of and pay for the bonds. All expenses
of printing CUSIP numbers 0.1 the bonds shall be paid by the City, but the CUSIP Service Bureau
charge for the assignment of said numbers $hall be paid by the successful bidder.
Non-Arbitrage Certifkatt!!= The City will furnish to the successful bidder at the time of delivery
of the bonds a certificate, accbmpanied by an opinion of counsel, that on the basis of the facts, esti-
mates and circumstances in e,dstence on the date of issue of the bonds, it is not expected that the
proceeds of the bonds will be used in a man.er that will cause the bonds to be arbitrage bonds.
Non-Litigation Certi.ficate~ At the time of delivery of the bonds, the City will furnish the successful
bidder a certificate that there is no litigation pending affecting the validity of the bonds.
Official Statement: The City will furni$h to the successful bidder, without charge, 500 copies of
the Official Statement approv~d by the City Council for this issue. At the time of delivery of the
bonds, the City will furnish to! the successful bidder a certificate to the effect that at the time of sale of
the bonds and at all times subsequent thereto up to and including the time of said delivery the Offi-
cial Statement did not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the stateme_ts therein, in the light of the circumstances under which they were made,
not misleading.
INFORMATION AVAILABLE: Req\1ests for other information concerning the bonds and the
City or for copies of the Pre]jminary Official Statement should be addressed to one of the following:
Wainwright & RaD$4Y, Inc. Wainwright & Ramsey, Inc.
7325 Woodrow WUs9n Dr. Suite 4110, 70 Pine Street
Los Angeles, Califqn;rla 90046 New York, New York 10005
Wainwright & RaIn!Sty, Inc.
58 Sutter Street
San Francisco, California 94104
Gordon W. Hoyt
Utilities Director
P.O. Box 3222
Anaheim, California 92803
Given by order of the City Council of the City of Anaheim, California, on August 1, 1978.
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City Clerk of the City of Anaheim
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8/1178
PROPOSAL
FOR mE PURCHASE OF
ELE('tRIC REVENUE BONDS, ISSUE OF 1978
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Honorable City Council
of the City of Anaheim August ...-, 1978
0/0 Linda D. Roberts, City q~rk
City Hall, 204 East Lincoln ~venue
Anaheim, California 92805
On behalf of a group of underwriters headed by the undersigned and consisting of the firms
listed below or on a separate ~~eet attached hereto, and in accordance with the terms and conditions
of the Notice Inviting Bids dateid August 1, 1978, we offer to purchase $42,000,000 Electric Revenue
Bonds, Issue of 1978, all or ndne, maturing on August 1 in the years shown below and bearing interest
at the rates shown below:
Principal I~~st Prindpal Interest Principal Intentlt
Year Amount Year Amount Rate Year Amount Rate
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1983...... $ 475,000 ...... % 1993...... $ 925,000 ......% 2003..__.. $1,725,000 ...---%
1984...... 525,000 ......% 1994...... 975,000 ......% 2004...... 1,850,000 ......%
1985...... 550,000 _.....% 1995...... 1,025,000 ...... % 2005...... 1,950,000 ...... %
1986....., 575,000 ......% 1996...... 1,100,000 ......% 2006....__ 2,075,000 --.... %
1987...... 625,000 ......% 1997...... 1,175,000 m...% 2007...... 2,200,000 ....-- %
1988...... 675,000 ......% 1998...... 1,250,000 ......% 2008""00 2,350,000 ......%
1989.____. 700,000 ...m% 1999...... 1,325,000 ......% 2009...... 2,500,000 m...%
1990...... 750,000 ......% 2000...... 1,425,000 """ % 2010...... 2,650,000 ......%
1991...... 800,000 ...m% 2001...... 1,525,000 ......% 2011...... 2,825,000 ......%
1992...... 850,000 ......% 2002...... 1,625,000 ...... % 2012...... 3,000,000 ......%
and we will pay therefor, at the time of delivery, par plus a premium of $..m.m__.._.., plus accrued
interest to the date of delivery.
In accordance with the tettns of said Nqtice Inviting Bids, there is enclosed a certified or cashier's
check for $840,000 payable tQ .he order of the City of Anaheim. If this proposal is not accepted, said
check is to be returned to us promptly.
Respectfully submitted,
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MEMq:$ANDUM ~ INTEREST REQUIREMENTS
(For InfoiJnation Purposes Only)
$42,000,00" ELECTRIC REVENUE BONDS, ISSUE OF 1978
The total amount of interest payable on the Bonds during the life of the issue under the above
proposals, without deducting the: premium bid, if any, is $__.m...__........................., and the net interest
rate is ...m__.... % .
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STATE OF CALIFORNIA )
COUNTY OF ORAHGE ) ss.
CITY or ANAHEIM )
I, LINDA D. ROBERTS, City Clttk of the City of Anaheim, do hereby certify that
the f,oregOing ReS,olUt!on No. ijt,', r 8R-486 W8f,", ' introduced and adopted at a r, egular
meetinl provided by law, of e City Copncil of the City of Anaheim held on.
the lst day of August, 1978,~ y the following vote of the members thereof:
AYES: COUNCIL MEMBERS: ot.rhol t, Kaywood, Ro th and Seymour
NOES: OOUNCIL MEMBERS: K+h
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ABSENT: OOUNCIL MEMBERS: N+.e
AND I FURTHER CERTIFY that tlje Mayor of the City of Anaheim signed said
Resolution No. 78R-486" on th4hst day of August, 1978.
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IN WITIlESS WHEREOF, I have ht_eunto set my hand and affixed the seal of the
City of Anaheim this 1st day Af August, 1978.
(SEAL)
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CITY CLE OF THE CITY', ANAHEIM
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I, LINDA D. ROBERTS, City C1~tk of the City of Anaheim, do hereby certify that
the foregoing is the origina~of Resolution No. 78R-486 duly passed and adopted
by the Anaheim City Council bn August 1, 1978.
~o~~.~JG ~~ueuJa
~O~~3&Ja .1Hn
A:nv An:)
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, · CITY CLERK '
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