Ordinance No. 908
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ORDINANCE NO. 908
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF VERNON AUTHORIZING THE ISSUANCE BY SOUTHERN
CALIFORNIA PUBLIC POWER AUTHORITY OF NOTES AND
POWER PROJECT REVENUE BONDS
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WHEREAS, pursuant to the provisions of Chapter 5,
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Division 7, Title 1 of the Government Code of the State of Cali-
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fornia (hereinafter referred to the "State"), as amended (herein-
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after referred to as the "Joint Powers Act"), City of Anaheim,
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City of Azusa, City of Banning, City of Burbank, City of Colton,
City of Glendale, City of Los Angeles, City of Pasadena, City
of Riverside and Imperial Irrigation District (hereinafter
referred to as the "Members"), have entered into a Joint Powers
Agreement (hereinafter referred to as the "Agreement") creating
the Southern California Public Power Authority (hereinafter
referred to as the "Authority"), a public entity separate and
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apart from the Members; and
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WHEREAS, in accordance with the Agreement and the Joint
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Powers Act, the Authority has entered or will enter into a-
greements to acquire an interest in a project to provide for the
generation and transmission of electric energy, which project
(hereinafter referred to as the "Project") is to consist of an
ownership interest as tenant in common in the Palo Verde Nuclear
~enerating Station, a nuclear steam electric generating station
under construction in the State of Arizona, and capital
improvements thereto that may be constructed from time to time,
and interests in certain other property and rights relating
thereto; and
1 WHEREAS, the Authority proposes to issue, in accordance
2 with the Agreement and the Joint Powers Act, its Notes in the
3 estimated maximum aggregate principal amount of $400 million
4 to mature on or before 48 months after date of majurity, for the
5 purpose of temporary financing of costs of acquisition and
6 construction of the Project; and
7 WHEREAS, the Authority proposes to issue, in accordance
8 with the Agreement and the Joint Powers Act, from time to time,
~) in one or more installments, its Power Project Revenue Bonds in
10 the estimated maximum aggregate principal amount of $400 million
11 to mature on or before October 31, 2030, for the purpose of
12 providing funds for the acquisition, construction and financing
13 of the Project; and
14 WHEREAS, notwithstanding the aforesaid estimated
15 maximum aggregate principal amounts of Notes and Power Project
16 Revenue Bonds proposed to be issued by the Authority for the
17 Project, additional Notes and Power Project Revenue Bonds may
18 be required to complete the financing of the Project; and
19 WHEREAS, the Authority has entered or will enter into
20 agreements (hereinafter referred to as the "Power Sales Con-
21 tracts") with two or more of the Members, pursuant to which the
22 Members entering into such Power Sales Contracts (hereinafter
23 referred to as the "Participants") will, in the aggregate,
24 purchase 100% of the output of the Project; and
25 WHEREAS, the Notes are to be issued pursuant to and
26 secured by an Indenture of Trust (hereinafter referred to as the
27 "Indenture") to be made and entered into by and between the
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Authority and a trustee, and are to be payable from
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1 proceeds of the Power Projec~ Revenue Bonds and, to the extent
2 not so paid, from funds held in trust under the Indenture and
3 from revenues of the Authority from the Project, including
4 payments to be made by the Participants under the Power Sales
5 Contracts; and
6 WHEREAS, the Power Project Revenue Bonds are to be
7 issued pursuant to and secured by the Indenture, and are to be
8 payable from funds held in trust under the Indenture and from
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10 to be made by the Participants under the Power Sales Contracts;
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12 WHEREAS, in accordance with the Joint Powers Act, the
13 exercise by the Authority of its power to issue the Notes and
14 the Power Project Revenue Bonds is subject to the authorization
15 of such issuance by the Members pursuant to Ordinance; and
16 WHEREAS, neither the payment of principal of the Notes
17 or the Power Project Revenue Bonds nor any part thereof nor
18 interest thereon shall constitute a debt, liability or obligation
19 of the City of Vernon; and
20 WHEREAS, this City Council has determined that the
21 acquisition of the Project by the Authority is appropriate to
22 assist the Participants in meeting the future power needs of
23 their customers for electric energy and to realize for the
24 Participants savings in capital and operating costs including
25 reduction of burning fuel oil and economies of scale of large
26 electric generating units.
27 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
28 THE CITY OF VERNON AS FOLLOWS:
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1 SECTION 1: The issuance and sale by the Authority of
2 its Notes in a maximum aggregate principal amount of $400 millio
3 is hereby authorized. Notwithstanding such maximum aggregate
4 principal amount, the Authority is hereby authorized to issue
5 additional principal amounts of Notes if and to the extent
6 required to complete the financing of the Project. The proceeds
7 from the sale of the Notes hereby authorized are to be used for
8 the financing of costs of acquisition and construction of the
H Project. The notes hereby authorized and premium, if any, and
10 interest thereon, are to be payable from proceeds of the Power
11 Project Revenue Bonds authorized by this Ordinance, and the
12 Notes, and premium, if any, and interest thereon, are to be
13 payable from, and secured by, funds held in trust under the
14 Indenture for the benefit of the holders of the Notes issued
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thereunder and from revenues of the Authority from the Project,
including payments received by the Authority from the Partici-
pants under the Power Sales Contracts.
SECTION 2: The issuance and sale by the Authority,
from time to time, in one or more installments, of its Power
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Project Revenue Bonds in a maximum aggregate principal amount of
21 $400 million is hereby authorized. Notwithstanding such maximum
22 aggregate principal amount, the Authority is hereby authorized
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to issue additional principal amounts of its Power Project
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Revenue Bonds if and to the extent required to complete the
financing of the Project. The proceeds from the sale of the
Power Project Revenue Bonds hereby authorized are to be used for
the acquisition, construction and financing of the Project and
28 to pay the principal, premium, if any, and interest on the Notes
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authorized by this Ordinance when due. The Power Project Revenue
Bonds hereby authorized, and premium and interest thereon, are
to be payable from, and secured by, funds held in trust under
the Indenture for the benefit of the holders of Power Project
Revenue Bonds issued thereunder and from revenues of the
Authority from the Project, including payments received by the
Authority from the Participants under the Power Sales Contracts.
SECTION 3: Pursuant to Section 6547 of the Joint
Powers Act, this Ordinance is subject to the provisions for
referendum prescribed by Section 3751.7 of the Elections Code of
the State of California.
SECTION 4: The City Clerk shall certify to the enactmen
of this Ordinance and shall cause notice of the same to be
published in accordance with Section 6040.1 of the Government
Code of the State of California for five (5) consecutive days
within fifteen (15) days of its enactment, in the Los Angeles
Daily Journal which the City Council finds to be a newspaper of
general circulation nearest to the City most ap?ropriate for
this purpose, published in the County of Los Angeles, and sixty
(60) days from and after its enactment it shall take effect and
be in full force, in the manner provided by law, and shall post
the same, or cause the same to be posted, in three (3) of the
most public places in the City of Vernon, to wit: the northwest
corner of 38th Street and Santa Fe Avenue; the northeast corner
of Leonis Boulevard and Pacific Boulevard, and on the bulletin
board in the lobby of the City Hall of said City located at 4305
Santa Fe Avenue, all in the City of Vernon, County of Los
Angeles, State of California.
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THE FOREGOING ORDINANCE is approved, enacted and adopted
by the City Council of the City of Vernon on this 21st
Apr i 1
day of
, 1981.
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T O~AS A. YBAR , Mayor Pro
Tern
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8 ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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1 STATE OF CALIFORNIA
2 COUNTY OF LOS ANGELES
SSe
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4 I, BRUCE V. MALKENHORST, City Clerk of the City of
5 Vernon, do hereby certify that the foregoing Ordinance, being
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Ordinance No. 908
, was duly and regularly introduced
7 at a regular meeting of the City Council of the City of Vernon,
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held on
, and thereafter finally adopted
April 7, 1981
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at a regular meeting of said City Council held on
21st
April
, 1981
, by the following vote:
Counc ilmen: Gonza 1 es. McCormi ck. Kaeser. Ybarra
AYES:
NOES:
Councilmen: None
ABSENT:
Counc i Imen: Ma 1 buy'g
( SEAL)
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Bruce V. Malkenhorst, City Clerk I
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