Ordinance No. 925
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ORDINANCE NO. 925
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF VERNON AUTHORIZING THE ISSUANCE OF NOTES
BY SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY
5 WHEREAS, pursuant to the provisions of Chapter 5,
6 Division 7, Title 1 of the Government Code of the State of
7 California, as amended (the "Joint Powers Act"), the City of
8 Vernon and certain other public agencies created pursuant to the
9 laws of the State of California (collectively, the "Members"),
10 have entered into a joint Powers Agreement (the "Agreement")
11 creating the Southern California Public Power Authority (the
12 "Authority"), a public entity separate and apart from the
13 Members; and
14 WHEREAS, in accordance with the Agreement and the Joint
15 Powers Act, the Authority has undertaken or will undertake to,
16 among other things, incur preliminary costs, make (or cause to
17 be made) studies and acquire (or cause to be acquired) options
18 and permits ("Development Work") in connection with a project
19 for the transmission of electric energy, which project (the
20 "Project") is the Mead-Phoenix DC Intertie, a +/-500 KV DC
21 transmission line with AC/DC converter stations at each end
22 and related facilities, to be located in the States of Arizona
23 and Nevada; and
24 WHEREAS, the Authority proposes to issue, in accordance
25 with the Agreement and the Joint Powers Act, from time to time,
26 in one or more installments, its notes or other evidences of
27 indebtedness (the "Notes") to be outstanding at anyone time in
28 accordance with their terms in the estimated maximum aggregate
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1 principal amount of $15,000,000, to mature on or before
2 December 31, 1991, for the purpose of financing of the costs
3 of the Authority for the Project, including costs of Development
4 Work, costs of issuance and interest on the Notes; and
5 WHEREAS, upon the satisfactory conclusion of the
6 Development Work and the occurrence of certain other events, the
7 Authority proposes to issue its Transmission Project Revenue
8 Bonds for the purposes of providing funds for the acquisition,
9 construction and financing of the Authority's interest in the
10 Project; and
11 WHEREAS, notwithstanding the aforesaid estimated
12 maximum aggregate principal amount of Notes proposed to be
13 issued by the Authority and to be outstanding at anyone time
14 in accordance with their terms, additional Notes may be required
15 to complete the financing of such costs of the Authority for
16 the Project; and
17 WHEREAS, the Authority has entered or will enter into
18 agreements (the "Project Development Agreements") with two or
19 more of the Members and other entities pursuant to which the
20 Members and other entities entering into such Project
21 Development Agreements (collectively, the "Development
22 Participants") will, in the aggregate, undertake to pay to or
23 on behalf of the Authority 100% of such costs of the Authority
24 for the Project; and
25 WHEREAS, the Notes are to be renewable from time to
26 time and payable from proceeds of the Transmission Project
27 Revenue Bonds and, to the extent not so paid, from revenues of
28 the Authority from the Project, including payments to be made by
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the Development Participants under the Project Development
Agreements; and
WHEREAS, in accordance with the Joint Powers Act, the
exercise by the Authority of its power to issue the Notes is
subject to the authorization of such issuance by Members pursuant
to Ordinance; and
WHEREAS, neither the payment of principal of the Notes
nor any part thereof nor interest thereon shall constitute a
debt, liability or obligation of the City of Vernon; and
WHEREAS, this City Council has determined that the
undertaking by the Authority of the Project is appropriate to
assist the Development Participants to, among other things,
realize the savings in fixed and operating costs and economies
of scale of large DC transmission facilities.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF VERNON
DOES ORDAIN AS FOLLOWS:
SECTION 1: The issuance and sale by the Authority
from time to time, in one or more installments, of its Notes
outstanding at anyone time in accordance with their terms in
a maximum aggregate principal amount of $15,000,000 is hereby
authorized. The proceeds from the sale of the Notes hereby
authorized are to be used for the financing of the costs of the
Authority for the Project, including costs of Development Work,
costs of issuance and 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 proceeds of the Transmission Project Revenue Bonds of the
Authority and, to the extent not so paid, from revenues of the
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1 Authority from the Project, including payments received by the
2 Authority from the Development Participants under the Project
3 Development Agreements. Notwithstanding the maximum aggregate
4 principal amount of Notes set forth above, the Authority is
5 hereby authorized to issue additional principal amounts of
6 Notes if and to the extent required to complete the financing
7 of such costs of the Authority for the Project.
8 SECTION 2: Pursuant to Section 6547 of the Joint
9 Powers Act, this Ordinance is subject to the provisions for
10 referendum prescribed by ~3751.7 of the Elections Code of the
11 State of California.
12 SECTION 3: There being no newspaper printed, published
13 or circulated in the City of Vernon, the City Clerk is hereby
14 directed to certify to the passage of this Ordinance and shall
15 post the same, or cause the same to be posted, in three (3)
16 of the most public places in the City of Vernon, to wit: the
17 northwest corner of 38th Street and Santa Fe Avenue; the
18 northeast corner of Leonis Boulevard and Pacific Boulevard, and
19 on the bulletin board in the lobby of the City Hall of said City,
20 located at 4305 Santa Fe Avenue, all in the City of Vernon,
21 County of Los Angeles, State of California.
22 SECTION 4: The City Administrator/City Clerk shal1
23 certify to the enactment of this Ordinance and shall cause
24 notice of the same to be published in accordance with ~6040.l
25 of the Government Code of the State of California for five (5)
26 consecutive days within fifteen (15) days of its enactment, in
27 the Los Angeles Daily Journal, a daily newspaper of general
28 circulation, published in Southern California, and sixty (60)
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1 days from and after its enactment it shall take effect and be
2 in full force, in the manner provided by law.
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APPROVED AND ADOPTED this 16th day of February, 1982.
~~___~--e/::;;7'~~~/ 1:'0 ''"':f~ .
! EONIS C. MALBqRG, Mayor
ATTEST:
B:i~~~~
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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. 925
, was duly and regu1arly introduced
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held on
February 2, 1982
7 at a regular meeting of the City Council of the City of Vernon,
, and thereafter finally adopted
9 at a regular meeting of said City Council held on
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February ~&, 1982
, by the following vote:
AYES:
Councilmen: Gonzales, Ybarra, Malburg,McCormic
NOES:
Councilmen: None
ABSENT:
Councilmen: Davis
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~4hKv/~
Bruce V. Ma1kenhorst, Clty Clerk
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AFFIDAVIT OF POSTING
2 STATE OF CALIFORNIA )
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3 COUNTY OF LOS ANGELES) SS
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4 CITY OF VERNON )
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I, BRUCE V. MALKENHORST, City Clerk of the City
of Vernon, do hereby certify that I did, on the 17th day of
February , 19~, post three (3) cop.e .nfOr~inan~e.No. 92
uthorizing the issuance of notes by Southern t:a~ltoLll.La. ruu1~c rO~le
uthority ,
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9 one in each of the following places, to wit: At the northwest
10 corner of 38th Street and Santa Fe Avenue, at the northeast cor-
11 ner of Leonis Boulevard and Pacific Boulevard, and on the bulletin
12 board in the lobby of the City Hall of the City of Vernon, locat-
13 ed at 4305 Santa Fe Avenue, all in said City, there being no
14 newspaper of general circulation printed and published in the City
15 of Vernon.
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Signed this
l7tQlay of
February
, 19~.
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~~~~~~k
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Subscribed and sworn to before me 82
this 17th day of February , 19_o
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~.J
Notary ~~ {i. ~y or
Los Angeles, State of California.
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OFFICIAL SEAL
LOIS J. HILTON
NOTARY PUBLIC' CALIFORNIA
LOS ANGELES COUNTY
My comm. .expires APR 6, _1982
4305 Santa Fe Avenue, Vernon, CA 90058
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SUPPORTING
DOCUMENTS
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NOTICE OF ORDINANCE SUBJECT TO REFERENDUM
CITY OF VERNON ORDINANCE NO. 925
ADOPTED BY THE CITY COUNCIL OF THE CITY OF VERNON
ON February 16 , 1982
Notice is hereby given that at a regular meeting of the
City Council of the City of Vernon (the "City Council"), held on
February 16, 1982, Ordinance No. 925 (the "Ordinance") was
adopted. The title and a summary of the Ordinance are set forth
below. The Ordinance is subject to referendum, as discussed below.
TITLE
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON
AUTHORIZING THE ISSUANCE OF NOTES BY SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY.
SUMMARY
Pursuant to the Ordinance, the City Council has authorized
the issuance and sale by Southern California Public Power Authority
(the "Authority") of its notes or other evidences of indebtedness
(the "Notes"), to mature on or before December 31, 1991, to be
issued, from time to time, in one or more installments, in an esti-
mated aggregate principal amount outstanding at anyone time in
accordance with their terms of $15,000,000 and to bear interest at a
probable overall rate of 12% per annum, payable semiannually on
January 1 and July 1 in each year. The actual interest rates on'each
installment of such Notes or the method of determining such rates
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will b~ determined by the Board of Directors of the Authority in
accordance with law at the time of issuance of such installment.
Notwithstanding such maximum aggregate principal amount of Notes, the
Authority is authorized, pursuant to the Ordinance, to issue addi-
tional principal amounts of Notes if and to the extent required to
complete the financing of the costs of the Authority for the Project
discussed below.
CouncilmenMalburg ,Gonzales, Ybarra and McConnick voted in favor
of the Ordinance. Councilman Davis abstained from voting.
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 Authority was created pursuant to a Joint
Powers Agreement (the "Agreement") heretofore entered into between
the City of Vernon and certain other public agencies (COllectively,
the "Members").
The Authority is a public entity separate and apart from
the Members. The Authority, in accordance with the Joint Powers Act
and the Agreement, has undertaken or will undertake to, among other
things, incur preliminary costs, make (or cause to be made) studies
and acquire (or cause to be acquired) options and permits
("Development Work") in connection with a proje~t for the transmis-
sion of electric energy, which project (the "Project") is the Mead-
Phoenix DC Intertie, a +/- 500 KV DC transmission line with AC/DC
converter stations at each end and related facilities to be located
in the States of Arizona and Nevada. The Authority has entered or
will enter into agreement~ (the "Project Development Agreements")
with two or more of the Members and C?ther enti ti~~,pursuant to which
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the Members and other entities entering into such Project Development
Agreements (collectively, the "Development Participants") will, in
the aggregate, undertake to poy to or on behalf of the Authority 100%
of the costs of the Authority for the Project. Upon the satisfactory
completion of Development Work and the occurrence of certain other
events, the Authority proposes to issue its Transmission Project
Revenue Bonds to prov ide funds for the acquisi tion, construction and
financing of the Authority's interest in the Project.
Neither the payment of principal of the Notes nor any part
thereof nor interest thereon will constitute a debt, liability or
obligation of the City of Vernon. The City Council has determined
that the undertaking by the Authority of the Project is appropriate
to assist the Development Participonts to, among other things,
realize the savings in fixed and operating costs and economies of
scale of large DC transmission facilities.
The Authority proposes to issue, in accordance with the
Agreement and the Joint Powers Act, the Notes to finance the costs of
the Authority for the Project, including costs of Development Work,
costs of issuance and interest on the Notes. The Notes are to be
payable from the proceeds of the Transmission Project Revenue Bonds
and, to the extent not so paid, from revenues of the Authority from
the Pro j e c t, i n c 1 u din 9 pay men t s to be In a deb y the De vel 0 pm e n t
Participants under the Project Development Agreements.
THE ORDINANCE AUTHORIZING THE ISSUANCE OF THE NOTES IS
SUBJECT 'ro REFERENDUM. UPON PRESENTATION (WITHIN THE TIME PERIOD
SPECIFIED BY LAW) OF A PETITION (BEARING SIGNATUR~S, IN AT LEAST THE
NUMBER RF.:QUIRED BY 'rHE LAW) PROTESTING AGAINST THE ADOPTION OF THE
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ORDINANCE, 'rHE: CITY COUNCIL IS REQUIRED TO RECONSIDER THE ORDINANCE.
THEREUPON, IF THE CITY COUNCIL DOES NOT ENTIRELY REPEAL THE
ORDINANCE, THE ORDINANCE SHALL BE SUBMITTED (UNDER BALLOT WORDING
PRESCRIBED BY LAW) TO THE VOTERS AT A REGULAR OR SPECIAL ELECTION AND
THE ORDIN~NCE SHALL NOT BECOME EFFECTIVE UNTIL A MAJORITY OF THE
VOTERS VOTING ON THE ORDINANCE VOTE IN FAVOR OF IT. THE FOREGOING
DESCRIPTION OF THE PROCEDUR~S FOR REFERENDUM IS BASED UPON THE APPLI-
CABLE REFERENDUM PROVISIONS OF THE CALIFORNIA ELECTIONS CODE AND THE
CALIFORNIA GOVERNMENT CODE. REFERENCE IS MADE TO THE CALIFORNIA
ELECTIONS CODE AND THE CALIFORNIA GOVERNMENT CODE FOR A COMPLETE
STATE~E:NT OF SUCH PROVISIONS.
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