Ordinance No. 916
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ORDINANCE NO. 916
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF VERNON AUTHORIZING THE ISSUANCE OF POWER
PROJECT REVENUE BONDS BY SOUTHERN CALIFORNIA
PUBLIC POvIER AUTHORITY AND REPEALING ORDINANCE
NO. 908
WHEREAS, pursuant to the provisions of Chapter 5,
Division 7, Title 1 of the Government Code of the State of
California, as amended (the "Joint Powers Act"), the City of
Vernon and certain other public agencies created pursuant to
the laws of the State of California (collectively, the "Members"),
have entered into a Joint Powers Agreement (the "Agreement")
creating the Southern California Public Power Authority (the
"Authority"), a public entity separate and apart from the
Jl1embers; and
WHEREAS, in accordance with the Agreement and the Joint
Powers Act, the Authority has entered or will enter into
agreements to acquire an interest in a project to provide for
the generation of electric energy, which project (the "Project")
is to consist of an ownership interest as tenant in common in
the Palo Verde Nuclear Generating 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
WHEREAS, the Authority proposes to issue, in accordance
with the Agreement and the Joint Powers Act, from time to time,
in one or more installments, its Power Project Revenue Bonds to
be outstanding at anyone time in accordance with their terms
in the estimated maximum aggregate principal amount of
1 $800,000,000, to mature on or before October 31, 2030, for the
2 purpose of providing funds for the acquisition, construction
3 and financing of the Project; and
4 WHEREAS, the Authority also proposes to issue its Notes
5 for the purpose of temporary financing of costs of acquisition
6 and construction of the Project; and
7 WHEREAS, notwithstanding the aforesaid estimated
8 maximum aggregate principal amount of Power Project Revenue
9 Bonds proposed to be issued by the Authority for the Project
10 and to be outstanding at anyone time in accordance with their
11 terms, additional Power Project Revenue Bonds may be required to
12 complete the financing of the Project; and
13 WHEREAS, the Authority has entered or will enter into
14 agreements (the "Power Sales Contracts") with two or more of the
15 Members, pursuant to which the Members entering into such Power
16 Sales Contracts (the "Participants") will, in the aggregate,
17 purchase 100% of the output of the Project; and
18 WHEREAS, the Power Project Revenue Bonds are to be
19 payable from funds held in trust for the benefit of the holders
20 of such Bonds and from revenues of the Authority from the
21 Project, including payments to be made by the Participants under
22 the Power Sales Contracts; and
23 WHEREAS, the Notes are to be payable from proceeds of
24 the Power Project Revenue Bonds and, to the extent not so paid,
25 may be payable from revenues of the Authority from the Project,
26 including payments to be made by the Participants under the
27 Power Sales Contracts; and
28 WHEREAS, in accordance with the Joint Powers Act, the
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1 exercise by the Authority of its power to issue the Power Project
2 Revenue Bonds is subject to the authorization of such issuance
3 by the Members pursuant to Ordinance; and
4 WHEREAS, neither the payment of principal of the Power
5 Project Revenue Bonds nor any part thereof nor interest thereon
6 shall constitute a debt, liability or obligation of the City of
7 Vernon; and
8 WHEREAS, this City Council has determined that the
9 acquisition of the Project by the Authority is appropriate to
10 assist the Participants in meeting the future power needs of
11 their customers for electric energy and in reducing the reliance
12 by the Participants on oil-fired generation and to realize for
13 the Participants savings in capital and operating costs and
14 economics of scale of large electric generating units; and
15 WHEREAS, this City Council proposes to authorize by
16 ordinance the issuance and sale by the Authority of its Notes,
17 which are to be payable from proceeds of the Power Project
18 Revenue Bonds authorized by this Ordinance and, to the extent
19 not so paid, may be payable from revenues of the Authority from
20 the Project, including payments received by the Authority from
21 the Participants under the Power Sales Contracts; and
22 WHEREAS, on April 21, 1981, the City Council of the
23 City of Vernon adopted Ordinance No. 908 which ordinance
24 authorized the issuance and sale of notes and power project
25 revenue bonds by the Authority in certain maximum aggregate
26 principal amounts; and
27 WHEREAS, it has now become necessary to increase said
28 maximum aggregate principal amount.
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NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF VERNON AS FOLLOWS:
SECTION 1: The issuance and sale by the Authority,
from time to time, in one or more installments, of its Power
Project Revenue Bonds outstanding at anyone time in accordance
with their terms in a maximum aggregate principal amount of
$800,000,000 is hereby authorized. Notwithstanding such maximum
aggregate principal amount, the Authority is hereby authorized
to issue additional principal amounts of its Power Project
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,
including iterest on such Bonds and deposits to reserves, and
to pay the principal, premium, if any, and interest on the
Notes of the Authority 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 for the
benefit of the holders of Power Project Revenue Bonds and from
revenues of the Authority from the Project, including payments
received by the Authority from the Participants under the
Power Sales Contracts.
SECTION 2: Pursuant to Section 6547 of the Joint
Powers Act, this Ordinance is subject to the provisions for
referendum prescribed by ~375l.7 of the Elections Code of the
State of California.
SECTION 3: The City Clerk shall certify to the
enactment of this Ordinance and shall cause notice of the same
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to be published in accordance with ~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, a daily newspaper of general circulation,
published in the Southern California area, and sixty (60) days
from and after its enactment it shall take effect and be in
full force, in the manner provided by law.
SECTION 4: Ordinance No. 908 shall be repealed
9 concurrently with the effective date or dates, if any, of this
10 Ordinance and of Ordinance No. 917.
11 THE FOREGOING ORDINANCE is approved, enacted and
12 adopted by the City Council of the City of Vernon on this 10th
13 day of November, 1981.
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":f~f74~C-~~~<?~C'?-r/>:.-1./) ,
_.,:~. /~EONIS C. ~1ALBURG, Mayor
ATTEST:
BRUCE V.
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1 STATE OF CALIFORNIA
SSe
2 COUNTY OF LOS ANGELES
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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.
, was duly and regularly introduced
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7 at a regular meeting of the City Council of the City of Vernon,
8 held on November 3, 1981 , and thereafter finally adopted
adjourned
9 at a regular/meeting of said City Council held on
November 10, 1981
, by the following vote:
AYES: Councilmen: t.1alburp.:: , Ybarra, McConnick, Gonzales
NOES: Councilmen: None
ABSENT: Councilmen: None
ABSTAINED : Cotnlci1r.Jen: Davis
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V. Malkenhorst, City Clerk
Bruce
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