Ordinance No. 917
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ORDINANCE NO. 917
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AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF VERNON AUTHORIZING THE ISSUANCE OF NOTES BY
SOUTHERN CALIFORNIA PUBLIC POWER 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 Cali-
fornia, 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") creatine
the Southern California Public Power Authority (the "Authority"),
a public entity separate and apart from the Hembers; and
WHEREAS, in accordance with the Agreement and the eJoint
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 Notes to be outstanding at any
one time in accordance with their terms in the estimated maximum
aggregate principal amount of $400,000,000, to mature on or
before July 1, 1991, for the purpose of temporary financing of
1 costs of acquisition and construction of the Project; and
2 WHEREAS, the Authority proposes to issue its Power
3 Project Revenue Bonds for the purpose of providing funds for
4 the acquisition, construction and financing of the Project; and
5 WHEREAS, notwithstanding the aforesaid estimated
6 maximum aggregate principal amount of Notes proposed to be
7 issued by the Authority for the Project and to be outstanding
8 at anyone time in accordance with their terms, additional
9 Notes may be required to complete the financing of the Project;
10 and
11 WHEREAS, the Authority has entered or will enter into
12 agreements (the "Power Sales Contracts") with two or more of the
13 Members, pursuant to which the Members entering into such Power
14 Sales Contracts (the "Participants") will, in the aggregate,
15 purchase 100% of the output of the Project; and
16 WHEREAS, the Notes are to be renewable from time to
17 time and payable from proceeds of the Power Project Revenue
18 Bonds and, to the extent not so paid, may be payable from
19 revenues of the Authority from the Project, including payments
20 to be made by the Participants under the Power Sales Contracts;
21 and
22 WHEREAS, in accordance with the Joint Powers Act, the
23 exercise by the Authority of its power to issue the Notes is
24 subject to the authorization of such issuance by the Hembers
25 pursuant to Ordinance; and
26 WHEREAS, neither the payment of principal of the Notes
27 nor any part thereof nor interest thereon shall constitute a
28 debt, liability or obligation of the City of Vernon; and
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1 WHEREAS, this City Council has determined that the
2 acquisition of the Project by the Authority is appropriate to
3 assist the Participants in meeting the future power needs of
4 their customers for electric energy and in reducing the reliance
5 by the Participants on oil-fired generation and to realize for
6 the Participants savings in capital and operating costs and
7 economies of scale of large electric generating units; and
8 WHEREAS, this City Council has authorized by Ordinance
9 the issuance and sale by the Authority of its Power Project
10 Revenue Bonds, the proceeds from the sale of which are to be
11 used for the acquisition, construction and financing of the
12 Project, including interest on such Bonds and deposits to
13 reserves, and to pay the principal, premium, if any, and
14 interest on the Notes authorized by this Ordinance when due; and
15 WHEREAS, on April 21, 1981, the City Council of the
16 City of Vernon adopted Ordinance No. 908 which ordinance
17 authorized the issuance and sale of notes and power project
18 revenue bonds by the Authority in certain maximum aggregate
19 principal amounts; and
20 WHEREAS, it has now become necessary to increase said
21 maximum aggregate principal amount.
22 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
23 THE CITY OF VERNON AS FOLLOWS:
24 SECTION 1: The issuance and sale by the Authority from
25 time to time, in one or more installments, of its Notes out-
26 standing at anyone time in accordance with their terms in a
27 maximum aggregate principal amount of $400,000,000 is hereby
28 authorized. Notwithstanding such maximum aggregate principal
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amount, the Authority is hereby authorized to issue additional
principal amounts of Notes if and to the extent required to
complete the financing of the Project. The proceeds from the
sale of the Notes hereby authorized are to be used for the
financing of costs of acquisition and construction of the Project,
including interest on the Notes. The Notes hereby authorized
are to be renewable from time to time and such Notes, and
premium, if any, and interest thereon, are to be payable from
the proceeds of Power Project Revenue Bonds of the Authority and,
to the extent not so paid, may be payable 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
to be published in accordance with ~6040.l 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
concurrently with the effective date or dates, if any, of this
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1 Ordinance and of Ordinance No. 916.
2 THE FOREGOING ORDINANCE is approved, enacted and
3 adopted by the City Council of the City of Vernon on this 10th
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4 day of November, 1981.
ATTEST:
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BRUCE V. MALKENHORST, City Clerk
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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. 917
, was duly and regularly introduced
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: Gonzales, Ybarra, Malburp:, McCormick
NOES: Councilmen: None
ABSENT: Councilmen: None
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ABSTAINED : Cotmcilrnen: Davis
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Bruce V. Malkenhorst, City Clerk
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