RA1982/05/1882 -40
Anaheim Civic Center, REDEVELOPMENT AGENCY MINUTES
May 18, 1982, 1:00 P.M.
PRESENT: AGENCY MEMBERS: Overholt, Kaywood, Roth and Bay
ABSENT: AGENCY MEMBERS: None
VACANCY: AGENCY MEMBERS: One
PRESENT: CITY MANAGER: William 0. Talley
CITY ATTORNEY: William P. Hopkins
SECRETARY: Linda D. Roberts
EXECUTIVE DIRECTOR: Norman J. Priest
Chairman Bay called the regular meeting of the Anaheim Redevelopment Agency to
order at 1:16 p.m.
MINUTES: Approval of minutes was deferred to the next regular meeting.
FINANCIAL DEMANDS AGAINST THE ANAHEIM REDEVELOPMENT AGENCY in the amount of
$66,511.83 and $71,895, Series "B" Bonds, in accordance with the 1981 -82
Budget, were approved.
161.107: ACCEPTANCE OF OILING OF LOT - CONTRACT NO. D81 -10: Mrs. Kaywood offered
Resolution No. ARA82 -26 for adoption, accepting oiling work performed on
Agency -owned property located at 200 -222 North Harbor Boulevard and directing
the Agency Secretary to file a Notice of Completion; R. J. Noble Company,
Contractor, (D81 -10), as recommended in memorandum dated May 3, 1982, from the
Executive Director of Community Development, Norman Priest. Refer to Resolution
Book.
RESOLUTION NO. ARA82 -26: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
ACCEPTING THE COMPLETION AND FURNISHING OF ALL PLANT, LABOR, SERVICES,
MATERIALS AND EQUIPMENT AND ALL UTILITIES AND TRANSPORTATION INCLUDING
POWER, FUEL AND WATER, AND THE PERFORMANCE OF ALL WORK NECESSARY TO COMPLETE
A WORK OF IMPROVEMENT. Contract No. D81 -10.
Roll Call Vote:
AYES: AGENCY MEMBERS:
NOES: AGENCY MEMBERS:
ABSENT: AGENCY MEMBERS:
VACANCY: AGENCY MEMBERS:
Overholt, Kaywood, Roth and Bay
None
None
One
The Chairman declared Resolution No. ARA82 -26 duly passed and adopted.
161.137: RESCINDING OF RESOLUTION NO. ARA82 -22 AND AUTHORIZI THE ISSUANCE OF
$20 MILLION BONDS OF SAID' AGENCY TO FINANCE A PORTION OF THE COS OF RE-
DEVELOPMENT PROJECT ALPHA: Mr. Norman Priest, Executive Director of Community
Development, first explained that on April 27, 1982, the Agency adopted Resolu-
tion No. ARA82 -22 which was the resolution authorizing the Series "C" Bond
82 -41
Anaheim Civic Center, REDEVELOPMENT AGENCY MINUTES
May 18, 1982, 1:00 P.M.
Issue. Subsequent to that time, the fiscal agents, Bank of America, asked for
some specific, although limited, changes in that resolution. Therefore, now
before the Agency was proposed Resolution No. ARA82 -27, rescinding previous
Resolution No. ARA82 -22, and secondly, Resolution No. ARA82 -28, superseding
that resolution and thus, a new bond resolution would be enplaced. Mr. Rich
Jennings, O'Melveney & Myers, Bond Counsel for the Issue, was present to
summarize those changes before action was taken.
Mr. Rich Jennings then briefed the Agency on the minor changes which were legal
in nature. Mr. Priest confirmed that the changes contained nothing substantive
from the Agency's standpoint and he recommended adoption of both resolutions as
presented.
Mr. Overholt offered Resolution Nos. ARA82 -27 and ARA82 -28 for adoption. Refer
to Resolution Book.
RESOLUTION NO. ARA82 -27: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
RESCINDING RESOLUTION NO. ARA82 -22.
RESOLUTION NO. ARA82 -28: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
°-- AUTHORIZING THE ISSUANCE OF $20,000,000 BONDS OF SAID AGENCY TO FINANCE A
PORTION OF THE COST OF A REDEVELOPMENT PROJECT KNOWN AS REDEVELOPMENT PROJECT
ALPHA.
Roll Call Vote:
AYES: AGENCY MEMBERS:
NOES: AGENCY MEMBERS:
ABSENT: AGENCY MEMBERS:
VACANCY: AGENCY MEMBERS:
Overholt, Kaywood, Roth and Bay
None
None
One
The Chairman declared Resolution Nos. ARA82 -27 and ARA82 -28 duly passed and
adopted.
161.137: AWARDING $20 MILLION TAX ALLOCATION BONDS, SERIES "C" AND APPOINTING
PAYING AGENTS FOR SAID BONDS: Mr. Priest then introduced the proposed resolution
awarding $20 million Tax Allocation Bonds, Series "C ", to Merrill Lynch White
Weld Capital Markets Group. He then reported on several items that had
occurred since they last discussed the Issue -- first, they had applied to
both of the municipal bond insurance agencies and were qualified for insurance
under both. That had the effect with Standard and Poors Rating Service of
giving them a AAA rating. They also applied to Moody's Investors Service
because some time in the past they had withdrawn the rating on their first
series of bonds, and they had not been requested to make a rating on Series "B."
82 -42
Anaheim Civic Center, REDEVELOPMENT AGENCY MINUTES
May 18, 1982, 1:00 P.M.
As part of Series "C ", they had examined all of the bonds outstanding to date,
and while Moody's did not recognize insurance as such, they did give an "A" rating
of all three Issues of the Agency which was once again restored on all of those.
They received two bids at 10:00 a.m. this morning, one from the Merrill Lynch
White Weld Capital Markets Group for an effective interest rate of 11.0826
percent. The second bid received was from Blythe, Eastman, Payne, Webber
for a net interest rate of 11.12124 percent. Both bids contained a discount
and appeared to be responsive to the call, with one minor issue, which he
would ask Bond Counsel to comment on, the bid of Blythe, Eastman, Payne, Webber.
Mr. Rich Jennings then explained that in the Notice Inviting Bids, there was a
statement that should the bonds be eligible for debt service insurance and such
insurance was specified by the bidder, any insurance premium would be paid
by the Agency. That statement could have been read as requiring that the
bidder request in their bid that the bonds be insured. The Merrill Lynch
bid did specify that insurance was requested. The Blythe, Eastman bid made
no reference to insurance. Bond Counsel contacted the Account Manager for the
Blythe Eastman Group to determine their intent regarding insurance. They stated
that their bid had been made on the basis of the bonds being insured and that
they had not read the Notice as requiring that the bidder needed to specify
insurance in the bid. Based on that clarification and on case law, Bond
Counsel agreed that the lowest responsible bid was that of the Merrill Lynch
Group.
Mr. Priest recommended adoption of the proposed resolution awarding $20 million
Tax Allocation Bonds, Series C, to the best bidder and rejecting all other bids,
the best bidder being the Merrill Lynch White Weld Capital Markets Group, as well
as appointing the Bank of America as Paying Agents for said bonds.
Mr. Bay offered Resolution No. ARA82 -29 for adoption. Refer to Resolution
Book.
RESOLUTION NO. ARA82 -29: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
AWARDING $20,000,000 BONDS OF SAID AGENCY TO THE BEST BIDDER AND REJECTING
ALL OTHER BIDS.
Roll Call Vote:
AYES: AGENCY MEMBERS:
NOES: AGENCY MEMBERS:
ABSENT: AGENCY MEMBERS:
VACANCY: AGENCY MEMBERS:
Overholt, Kaywood, RoLh and Bay
None
None
One
The Chairman declared Resolution No. ARA82 -29 duly passed and adopted.
82 -43
Anaheim Civic Center, REDEVELOPMENT AGENCY MINUTES
May 18, 1982, 1:00 P.M.
Mrs. Kaywood offered Resolution No. ARA82 -30 for adoption, appointing Bank of
America N.T. & S.A., Los Angeles and San Francisco, and Bankamerica Securities
Services Company of New York, New York, Paying Agents for said bonds. Refer
to Resolution Book.
RESOLUTION NO. ARA82 -30: A RESOLUTION OF THE ANAHEIM REDEVELOPMENT AGENCY
APPOINTING PAYING AGENTS FOR BONDS.
Roll Call Vote:
AYES: AGENCY MEMBERS: Overholt, Kaywood, Roth and Bay
NOES: AGENCY MEMBERS: None
ABSENT: AGENCY MEMBERS: None
VACANCY: AGENCY MEMBERS: One
The Chairman declared Resolution No. ARA82 -30 duly passed and adopted.
ADJOURNMENT: Mr. Roth moved to adjourn. Mr. Overholt seconded the motion.
One Vacancy. MOTION CARRIED. (1:31 p.m.)
LINDA D. ROBERTS, SECRETARY