1976-277RESOLUTION NO, 76R-277
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ANAHEIM, CALIFORNIA,
DIRECTING THE CITY CLERK TO PUBLISH
NOTICE INVITING SEALED BIDS
FOR BONDS OF SAID CITY
WHEREAS, this City Council has adopted a resolution
providing -for. -.the issuance of revenue bonds of the City of
Anaheim, California, in the amount of $12,500,000.to be desig-
nated "Electric Revenue Bonds, Second issue (Subordinated) of
1976" ; and
WHEREAS, it is desirable that said bonds be sold;
NOW, THEREFORE, the City Council of the City of
Anaheim, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER
as follows:
Section 1. Sealed bids for the purchase of said
bonds shall be received up to the time stated in the notice
hereinafter set forth.
Section 2. The City Clerk is hereby authorized
and directed to publish said notice once in a newspaper of
general circulation published in said city, said publication
to be at least five days prior to the date for receiving bids.
Section 3. Said notice shall be substantially in
the form attached hereto, marked !'Exhibit 1".
Section 4. The City Clerk is further,authorized
and directed to publish said notice (or an advertisement re-
ferring thereto) once in The Daily Bond Buyer, a financial
journal published in New York, New York, and to cause to be
furnished to prospective bidders copies of said notice (in-
cluding a bid form) and of the Official Statement relating
to the bonds; but the failure, in whole or in part, to
comply with this section shall not in any manner affect the
validity of the sale of said bonds.
ADOPTED, SIGNED AND APPROVED this 25th day of
May, 1976.
ATTEST:
City Cler3V/
(SEAL)
2.
STATE OF CALIFORNIA
CO,trNTY OF ORLiGE ss.
CITY OF ANAHEIM
I, ALONA M. HOUGARD, City Clerk of the City of Anaheim, do
hereby certify that the foregoing Resolution No. 76R-277 was intro-
duced and adopted at a regular meeting provided by law, of the City
Council of the City of Anaheim held on the 25th day of May, 1976,
by the following vote of the members thereof:
AYES: COUNCIL 11EMBERS: Kaywood, Seymour, Kott, Roth
and Thom
NOES: COUNCIL MEUIBERS: None
ABSENT: COUNCIL MEMBERS: None
AND I FURTHER CERTIFY that the Mayor of the City of Anaheim
approved and signed said Resolution No. 76R-277 on the 25th day of
May, 1976.
IN, WITNESS WHEREOF, I have hereunto set my hand and affixed
the seal of the City of Anaheim this 25th day of May, 1976.
"e
I r_" --� �.
CITY CLERK OF THE CIT' MJF ANAHEIM
(SEAL)
I, ALOHA M. HOUGARD, City Clerk of the City of Anaheim, do
hereby certify that the foregoing is the original of Resolution No.
76R-277 duly passed and adopted by the Anaheim City Council on
May 25 , 1976.
City Clerk /0'
01EXHIBIT 1"
NOTICE INVITING BIDS ON $12,500,000 ELECTRIC REVENUE
BONDS, SECOND ISSUE (SUBORDINATED) OF 1976, OF THE
CITY OF ANAHEIM, CALIFORNIA
NOTICE IS HEREBY GIVEN that sealed proposals for the purchase of $12,500,000 par value
subordinated Electric Revenue Bonds of the City of Anaheim, California, will be received by the City
Council of the City at the place and up to the time below specified:
TIME: Tuesday, June 8, 1976
10:00 o'clock A.M. (P.D.S.T.)
PLACE: Office of the City Clerk
City Hall
204 East Lincoln Avenue
Anaheim, California
MAILED City of Anaheim
BIDS: % Alona M. Hougard
City Clerk
City Hall
204 East Lincoln Avenue
Anaheim, California 92803
Opening of Bids: The bids will be received by the City Clerk at the time above specified. The
bids will be opened by the Clerk immediately following receipt and will be presented to the City Council
for award later that day.
Issue: $12,500,000 designated "ELECTRIC REVENUE BONDS, SECOND ISSUE (SUBORDI-
NATED) OF 1976," consisting of 2,500 bonds, numbered 1. to 2500, both inclusive, of the denomination
of $5,000 each, dated June 1, 1976.
Maturities: The Bonds will mature in consecutive numerical order as follows:
Maturity Date
Principal Amount
December 1, 1977--------------------------------------------
$1,625,000
June 1, 1978----------------------------------------------------
1,625,000
December 1, 1978____________________________________________
1,725,000
June 1, 1979----------------------------------------------------
1,700,000
December 1, 1979____________________________________________
1,800,000
June 1, 1980--------------e_______--------- --------- ------------
1,800,000
December 1, 1980 ----------- _--------------- _................
2,225,000
Interest: The bonds shall bear interest at a rate or rates to be fixed upon the sale thereof but not
to exceed 61✓z % per annum, payable semiannually on the first days of June and December of each. year.
Payment: Said bonds and the interest thereon will be payable in lawful money of the United States
of America at the office of the 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,
Illinois, or New York, New York.
Registration: The bonds will be coupon bonds registrable as to principal only or as to both principal
and interest, and the form of registration may be changed, or the bonds discharged from registration, all
in accordance with the provisions in the resolution providing for the issuance of the bonds (the
"Resolution") .
Redemption: The bonds shall not be subject to call or redemption prior to maturity.
Purpose of Issue: Said bonds are the second series of a total issue of $150,000,000 authorized at an
election held in the City on March 4, 1975, to finance the acquisition and construction of facilities,
property and rights related to the generation, transmission and distribution of electrical energy for the
City and its inhabitants. Proceeds of the bonds will be used to purchase electric energy from the Nevada
Power Company.
Security: Said bonds are issued under and pursuant to Section 1210 of the Anaheim City Charter,
procedural Ordinance No. 2980 of the City and the Resolution. In accordance with said Section 1210,
said Ordinance No. 2980 and said Resolution, the bonds shall be special. obligations of the City,
payable both as to principal and interest only out of surplus revenues of the Electric System and not out
of any other fund or moneys of the City; provided, however, that this shall not preclude payment of
principal or interest from certain other sources as enumerated in the Resolution. The bonds are thus
subordinate to any bonds of the City heretofore or hereafter issued which are payable from the gross
revenues of the Electric System.
np�i,�
Interest Rate: The maximum rate bid may not exceed 61/2 % per annum, payable semiannually.
Each rate bid must be a multiple of 1/8 or 1/2o of I %. No bond shall bear more than one interest
rate, and all bonds of the same 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 will 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 and each bid shall state that the bidder offers par and accrued interest
to the date of delivery, the premium, if any, and the interest rate or rates not to exceed that specified
herein, at which the bidder offers to buy said bonds. Each bidder shall state in his bid the total
interest cost in dollars and the average interest rate determined thereby, which shall be considered
informative only and not a part of the bid.
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 interest cost, determined in the manner hereinafter
stated, is the best bid, but the City Council reserves the right to reject any and all bids. The manner
of determining interest cost for the purpose of determining whether such interest cost is within the
maximum specified herein, and for the purpose of determining which is the best bid received, is
to ascertain the semiannual rate, compounded semiannually, necessary to discount 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 the date of delivery.
A rate which is twice the semiannual rate so ascertained with respect to each bid shall be determined
to be the interest cost per annum under that bid, and the bid with respect to which the interest cost per
annum so determined is the lowest shall be determined to be the best bid.
The purchaser must pay accrued interest from the date of the bonds to the date of delivery com-
puted on a 360 -day year basis. The cost of printing the bonds will be borne by the City.
N
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 or informality in any bid.
Prompt Award: The City will take action awarding the bonds or rejecting all bids not later
than twenty-six (26) hours after the time herein prescribed for the receipt of proposals; provided
that the award may be made after the expiration of the specified time if the bidder shall not have given
to the City Council notice in writing of the withdrawal of such proposal.
Place of Delivery; Funds for Payment: Delivery of said bonds will be made to the successful
bidder at Jeffries Banknote Company, 1330 West Pico Boulevard, Los Angeles, California, or at any
other place agreeable to both the successful bidder and the City. Payment for the bonds shall be made
in Federal Reserve Bank Funds or other immediately available funds.
Prompt Delivery; Cancellation for Late Delivery.- It is expected that the bonds will be delivered
to the successful bidder within 30 days from the date of sale thereof. The successful bidder shall have
the right, at his option, to cancel the contract of purchase if the City shall fail to execute the bonds
and tender them for delivery within 60 days from the date herein fixed for the receipt of bids, and in
such event the successful bidder shall be entitled to the return of the check accompanying his bid.
Form of Bid: Each bid, together with the bid check, must be in a sealed envelope, addressed
to the City Council with the envelope and bid clearly marked "Proposal for the Purchase of Electric
Revenue Bonds, Second Issue (Subordinated) of 1976." 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 or cashier's check on a responsible bank or trust company in the amount
of $250,000 payable to the order of the City must accompany each proposal as a guaranty that the
bidder, if successful, will accept and pay for said bonds in accordance with the terms of his bid. The
check accompanying any accepted proposal shall be applied on the purchase price or, if such proposal
is accepted but not performed, 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 be returned promptly.
Change in Tax Exempt Status: At any time before the bonds are tendered for delivery, the
successful bidder may dissaffirm 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, either by a ruling of the Internal Revenue Service or by a decision of any
federal court, or shall be declared 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.
Legal Opinion: The unqualified 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 California under present state income tax laws, will be made available to
the successful bidder at the time of delivery of 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 anticipated that CUSIP numbers will be printed on the bonds, but neither
the failure to print such numbers on any bond nor error with respect thereto shall constitute cause for a
failure or refusal by the purchaser thereof to accept delivery of and pay for the bonds. All expenses
of printing CUSIP numbers on the bonds shall be paid by the City, but the CUSIP Service Bureau
charge for the assignment of said numbers shall be paid by the successful bidder.
Arbitrage Certificate: The City will furnish to the successful bidder at the time of delivery of the
bonds a certificate that on the basis of the facts, estimates and circumstances in existence on the date of
issue of the bonds, it is not expected that the proceeds of the bonds will be used in a manner that will
cause the bonds to be arbitrage bonds.
No Litigation Certificate: 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 furnish to the successful bidder, without charge, 750 copies of
the Official Statement approved 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 Official
Statement did not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in the light of the circumstances under which they were made,
not misleading.
INFORMATION AVAILABLE: Requests for other information concerning the bonds and the
City or for copies of the Official Statement should be addressed to
Wainwright & Ramsey, Inc. or Gordon W. Hoyt
7325 Woodrow Wilson Dr. Utilities Director
Los Angeles, California 90046 P.O. Box 3222
Anaheim, California 92803
Given by order of the City Council of the City of Anaheim, California, on May 25, 1976.
City Clerk of the City of Anaheim
4
ELECTRIC REVENUE BONDS, SECOND ISSUE (SUBORDINATED) OF 1976
Honorable City Council
of the City of Anaheim
'Yo Alona M. Hougard, City Clerk
City Hall, 204 East Lincoln Avenue
Anaheim, California
June 8, 1.976
On behalf of a group of underwriters headed by the undersigned and consisting of the firms
listed below or on a separate sheet attached hereto, and in accordance with the terms and conditions
of the Notice Inviting Bids dated May 25, 1976, we offer to purchase $12,500,000 Electric Revenue
Bonds, Second Issue (Subordinated) of 1976, maturing and bearing interest at the rates shown below:
Maturity
Principal
Interest
Date
Amount
Rate
December 1,
1977------------------------
$1,625,000
-------_%
June 1, 1978_________________________________
1,625,000
---%
December 1,
1978 ------------------------
1,725,000
----____%a
June 1, 1979_________________________________
1,700,000
__--____%a
December 1,
1979------------------------
1,800,000
--------%
June 1, 1980---------------------------------
1,800,000
--------%
December 1,
1980-_._____________________
2,225,000
____---_%
and we will pay therefor, at the time of delivery, par plus a premium of ---------- —1 plus accrued
interest to the date of delivery.
In accordance with the terms of said Notice Inviting Bids, there is enclosed a certified or cashier's
check for $250,000 payable to the order of the City of Anaheim. If this proposal is not accepted, said
check is to be returned to us promptly.
Respectfully submitted,
MEMORANDUM OF INTEREST REQUIREMENTS
(For Information Purposes Only)
$12,500,000 ELECTRIC REVENUE BONDS, SECOND ISSUE (SUBORDINATED) OF 1976
The total amount of interest payable on the Bonds during the life of the issue under the above
proposal is $___________________________ and the net interest rate is ---------------------------- %.
5