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APFA2010/10/12 ANAHEIM PUBLIC FINANCING AUTHORITY SPECIAL MEETING OF OCTOBER 12, 2010 The Anaheim Public Financing Authority met in special session. Present: Chairman Curt Pringle and Board Members: Lorri Galloway, Bob Hernandez, Lucille Kring and Harry Sidhu. Staff Present: City Manager Tom Wood, City Attorney Cristina Talley, and Secretary Linda Andal A copy of the agenda for the special meeting of the Anaheim Public Financing Authority was posted on October 8, 2010 on the kiosk outside City Hall. At 5:21 P.M., Chairman Pringle called the special meeting of the Anaheim Public Financing Authority to order for a joint public comment session with the Anaheim City Council. ADDITIONS /DELETIONS TO THE AGENDA: None PUBLIC COMMENTS: No remarks offered during the joint public comment session related to the Anaheim Public Financing Authority meeting. CONSENT CALENDAR: At 5:51 P.M., Board Member Hernandez moved to approve the consent calendar (consisting of Item No. 1), seconded by Board Member Kring. Roll Call Vote: Ayes — 5: Chairman Pringle, Board Members: Galloway, Hernandez, Kring and Sidhu. Noes — 0. Motion Carried. 1. Approve minutes of the Public Finance Authority meeting of February 10, 2009. END OF CONSENT CALENDAR: 2. RESOLUTION NO. APFA 2010 -001 A RESOLUTION OF THE BOARD OF B137.1 DIRECTORS OF THE ANAHEIM PUBLIC FINANCING AUTHORITY, (i) authorizing the issuance of not to exceed $35,000,000 aggregate principal amount of water revenue bonds of the said Authority; (ii) approving the forms and authorizing the execution of an Indenture of Trust, an installment Purchase Agreement, a Purchase Contract and other related documents; (iii) approving the execution and delivery of an Official Statement; and (iv) approving certain actions in connection therewith (related to Council Item No. 19). Marcie Edwards, Public Utilities General Manager, stated Council's approval of this item would authorize a bond issuance up to $35,000,000 to provide a source of capital funding for the Water Utility Department. She remarked funds for larger capital projects were frequently borrowed as opposed to being funded through cash reserves in order for the payback to be spread out across the lifetime of the projects. This allowed for all customers that benefited from these projects over their lifetime to pay for them over time rather than placing the entire burden on current customers. Anaheim Public Financing Authority Minutes October 12, 2010 Page 2 Ms. Edwards indicated current projects expected to be funded through this borrowing included the rehabilitation of Linda Vista Reservoir Complex, a strategic component of the City's water supply system that supplied both the Hill and Canyon area as well as the flatland area of Anaheim. Other projects included wells, pump station upgrades, water main replacements and relocations. All of these projects, she emphasized, were vital to maintain the reliability of the City's water system. She added by borrowing now, the City would take advantage of rates that had never been lower, about four percent or less; and with Anaheim's credit rating of. AAA, the City would not have to pay borrowing insurance costs. In addition, she pointed out, infrastructure investments were all part of a long -term strategic investment plan and this particular investment had been contemplated a number of years ago and the funding assumptions previously built into the budget which meant the borrowing would not raise current water rates. She ended her presentation adding that water continued to remain a bargain in Anaheim with 758 gallons costing $1.99. Board Member Galloway moved to approve RESOLUTION NO. APFA 2010 -001 OF THE ANAHEIM PUBLIC FINANCING AUTHORITY i) authorizing the issuance of not to exceed $35,000,000 aggregate principal amount of water revenue bonds of the said Authority; (ii) approving the forms and authorizing the execution of an Indenture of Trust, an Installment Purchase Agreement, a Purchase Contract and other related documents; (iii) approving the execution and delivery of an Official Statement; and (iv) approving certain actions in connection therewith; seconded by Board Member Hernandez Roll Call Vote: Ayes — 5 Chairman Pringle and Board Members: Galloway, Hernandez, Kring and Sidhu. Noes — 0. Motion Carried ADJOURNMENT: There being no further business, Chairman Pringle adjourned meeting of the Anaheim Public Financing Authority at 5:56 P.M. Res- - Ily submitt-d, 41. inda N. Andal, CMC Secretary, Anaheim Public Financing Authority