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Ordinance No. 956 1 2 3 4 ORDINANCE NO. 956 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF VERNON AUTHORIZING THE ISSUANCE OF HOOVER UPRATING PROJECT REVENUE BONDS BY SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 5 WHEREAS, pursuant to the ?rovisions relating to the 6 joint exercise of powers found in Chapter 5 of Division 7 of 7 Title 1 of the Government Code of the State of California, as 8 amended (the "Joint Powers Act"), the City of Vernon and certain 9 other public agencies created pursuant to the laws of the State 10 of California (collectively, the "Members"), have entered into a 11 Joint Powers Agreement, as amended (the "Agreement") creating the 12 Southern California Public Power Authority (the "Authority"), a 13 public entity separate and apart from the Members; and 14 WHEREAS, in accordance with the Agreement and the Joint 15 Powers Act, the Authority has entered or will enter into 16 agreements to acquire rights to capacity in a project consisting 17 of the uprating of the electric generators of the Hoover Power 18 Plant at the Hoover Dam (the "Project"); and 19 WHEREAS, the Authority proposes to issue, in accordance 20' with the Agreement and the Joint Powers Act, from time to time, in 21 one or more installments, its revenue bonds and other evidences 22 of indebtedness (the "Acquisition Bonds"), to be outstanding at 23 anyone time in accordance with their terms in the estimated 24 maximum aggregate principal amount of $50,000,000, for the purpose 25 of providing funds for the financing of the acquisition of such 26 capacity rights in the Project; and 27 WHEREAS, the Authority also proposes to issue its notes 28 and other evidences of indebtedness (including renewal notes) 1 (the "Notes") for the purpose of temporary financing of the 2 acquisition of such capacity rights in the Project; and 3 WHEREAS, from time to time, conditions in the tax-exempt 4 bond market may become favorable for refunding outstanding bonds 5 with a resulting savings in debt service costs or other economic 6 benefits for the Authority; and 7 WHEREAS, pursuant to Section 6576 of the Government 8 Code of the State of California the Authority may issue from time 9 to time in one or more installments, its refunding bonds (the 10 "Refunding Bonds" and together with the Acquisition Bonds, the 11 "Hoover Uprating Project Revenue Bonds") for the purpose of 12 redeeming or retiring Acquisition Bonds or Refunding Bonds 13 theretofore issued, or other indebtedness theretofore issued for 14 the Project; and 15 WHEREAS, the financing of the acquisition of capacity 16 rights in the Project includes the issuance of Refunding Bonds; 17 and 18 WHEREAS, the Authority has entered or will enter into 19 agreements (the "Power Sales Contracts") with two or more of the 20' Members, pursuant to which the Members entering into such Power 21 Sales Contracts (the "Project Participants") will purchase from 22 the Authority a percentage entitlement in the capacity of the 23 Project; and 24 WHEREAS, the Hoover Uprating Project Revenue Bonds are 25 to be payable from funds held in trust for the benefit of the 26 holders of such Bonds and from revenues of the Authority from the 27 Project, including payments to be made by the Project Participants 28 under the Power Sales Contracts; and -2- 1 WHEREAS, the Notes are to be payable from proceeds of 21 the Acquisition Bonds and, to the extent not so paid, may be 3 payable from revenues of the Authority from the Project, including 4 payments to be made by the Project Participants under the Power 5 Sales Contracts; and 6 WHEREAS, in accordance with the Joint Powers Act, the 7 exercise by the Authority of its power to issue the Hoover 8 Uprating Project Revenue Bonds is subject to the authorization of 9 such issuance by its Members pursuant to Ordinance; and 10 WHEREAS, neither the payment of principal of the Hoover 11 Uprating Project Revenue Bonds nor any part thereof nor interest 12 thereon shall constitute a debt, liability or obligation of the 13 City of Vernon; and 14 WHEREAS, the acquisition and financing of capacity 15 rights in the Project would assist the Project Participants to 16 finance said acquisition; and 17 WHEREAS, the issuance by the Authority of Refunding 18 Bonds is appropriate to reduce the debt service cost related to 19 the Project and reduce the costs payable by the Project 20' Participants under the Power Sales Contract or to realize other 21 economic benefits relating to the Project; and 22 WHEREAS, this City Council proposes to authorize by 23 ordinance the issuance and sale by the Authority of its Notes, 24 which are to be payable from proceeds of the Acquisition Bonds 25 authorized by this Ordinance and, to the extent not so paid, may 26 be payable from revenues of the Authority from the Project, 27 including payments received by the Authority from the Project 28 Participants under the Power Sales Contracts. -3- 1 NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF 2 THE CITY OF VERNON AS FOLLOWS: 3 SECTION 1: The issuance and sale by the Authority, from 4 time to time, in one or more installments, of its Acquisition 5 Bonds for the financing of the acquisition of capacity rights in 6 the Project, outstanding at anyone time in accordance with their 7 terms ina maximum aggregate principal amount of $50,000,000 is 8 hereby authorized. Notwithstanding such maximum aggregate 9 principal amount, the Authority is hereby authorized to issue 10 additional principal amounts of its Acquisition Bonds if and to 11 the extent required to comolete the financing of the acquisition 12 of capacity rights in the Project. The proceeds from the sale 13 of the Acquisition Bonds hereby authorized are to be used for the 14 financing of the acquisition of capacity rights in the Project, 15 including interest on such Bonds and deposits to reserves, and 16 to pay the principal, premium, if any, and interest on the Notes 17 of the Authority issued to finance the acquisition of capacitv 18 rights in the Project, when due. The Acquisition Bonds hereby 19 authorized, and premium and interest thereon, are to be payable 20' from, and secured by, funds held in trust for the benefit of the 21 holders of Acquisition Bonds and from revenues of the Authority 22 from the acquisition of capacity rights in the Project, including 23 payments received by the Authority from the Project Participants 24 under the Power Sales Contracts. 25 SECTION 2: The issuance and sale by the Authority, from 26 time to time, in one or more installments, of its Refunding Bonds 27 is hereby authorized. The estimated maximum aggregate principal 28 amount of such Refunding Bonds outstanding at anyone time in -4- 1 accordance with their terms shall be an amount equal to the sum 2 of (i) $50,000,000, being the estimated maximum aggregate 3 principal amount of Acquisition Bonds issued and to be issued for 4 the acquisition of capacity rights in the Project, plus (ii) the 51 principal amount of any additional Acquisition Bonds issued to 6 complete the financing of the acquisition of capacity rights in 7 the Project, plus (iii) such additional amounts, if any, required 8 to purchase federal securities to implement such refunding as 9 provided in Sections 53580 to 53585, inclusive, of the Government 10 Code of the State of California, plus (iv) such additional 11 amounts, if any, necessary to provide funds sufficient for the 12 payment of principal, interest, premium and expenses as orovided 13 in Section 6577 of the Government Code of the State of California. 14 Notwithstanding such estimated maximum aggregate principal amount, 15 the Authority is he~eby authorized to issue additional principal 16 amounts of its Refunding Bonds if and to the extent required to 17 complete the financing of the acquisition of capacity rights in 18 the Project. The proceeds from the sale of the Refunding Bonds 19 hereby authorized are to be used for the purpose of redeeming or 20 retiring the Acquisition Bonds, Refunding Bonds or other indebt- 21 edness to be refunded as aforesaid. The Refunding Bonds hereby 22 authorized, and premium and interest thereon, are to be payable 23 from, and secured by, funds held in trust for the benefit of the 24 holders of the Refunding Bonds and from revenues of the Authority 25 with respect to. the Project, inc~~ing payments received by the 26 Authority from the Project Participants under the Power Sales 27 COl;l:tr acts. 28 SECTION 3: The authorization provided to the Authority -5- 1 by Section 2 above shall not apply to any installment of Refunding 2 Bonds unless the Authority shall determine that a present value 3 savings of debt service will result from the issuance of such 4;,Refunding Bonds or that other economic benefits relating to the 5 acquisition of capacity rights in the Project will be realized 6 therefrom. 7 SECTION 4: Pursuant to Section 6547 of the Joint Powers 8 Act, this Ordinance is subject to the provisions for referendum 9 prescribed by Section 375l.7 of the Elections Code of the State 10 of California. 11 SECTION 5: The City Clerk shall certify to the 12 enactment of this Ordinance and shall cause notice of the same to 13 be published in accordance with Section 6040.1 of the Government 14 Code of the State of California and sixty (60) days from and 15 after its enactment it shall take effect and be in full force, in 16 the manner provided by law. 17 SECTION 6: There being no newspaper printed, r,>ublished 18 and circulated in the City of Vernon, the City Clerk is hereby 19 directed to certify to the passage of this Ordinance and shall 20' post the same or cause the same to be posted in three ( 3) of the 21 most public places in the City of Vernon, to wit: the northwest 22 corner of 38th Street and Santa Fe Avenue, the northeast corner 23 of Leonis Boulevard and Pacific Boulevard, and on the bulletin 24 board in the lobby of the City Hall of said City located at 4305 25 Santa Fe Avenue, all in the City of Vernon, County of Los Angeles, 26 State of California. 27 III III 28 1/1 1/1 -6- 1 THE FOREGOING ORDINANCE is approved, enacted and adopted 2 by the City Council of the City of Vernon, 15 day of 3 October , 1985. 4 5 6 ATTEST: r7 /~ 7 6- //,ui'~d~ 8 BRUCE V. MALKENHORST, City Clerk 9 10 11 12 13 14 15 16 17 18 19 20' 21 22 23 24 25 26 27 28 -7- lO 11 12 13 14 l5 16 17 18 1 STATE OF CALIFORNIA ss. 2 COUNTY OF LOS ANGELES 3 4 I, BRUCE V. MALKENHORST, City Clerk of the City of 5 Vernon, do hereby certify that the foregoing Ordinance, being 6 Ordinance No. 956 , was duly and regularly introduced an adjourned 7 at/a regular meeting of the City Council of the City of Vernon, 8 held on October 1, 1985 , and thereafter finally adopted an adjourned 9 at ~ regular meeting of said City Council held on October Pi, 1985 AYES: , by the following vote: NOES: Councilmen: Malburg, Ybarra, Davis, Gonzales, McCormick Councilmen: ABSENT: Councilmen: b- -;/fr~---/ Bruce V. Malkenhorst, City Clerk 19 (SEAL) 20 2l 22 23 24 25 26 27 28 -8- ~ 1 AFFIDAVIT OF POSTING 2 STATE OF CALIFORNIA ) ) 3 COUNTY OF LOS ANGELES) SS ) 4 CITY OF VERNON ) 5 I, BRUCE V. MALKENHORST, City Clerk of the City 6 of Vernon, do hereby certify that I did, on the ] firn day of 7 October , 19~, post three (3) copies of 8 Ordinance No. 956 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. 16 Signed this 16thday of October, 1985 , !'xxx. l7 6' t/ /Y!d~ BRUCE V. MALKENHORST, City Clerk 18 19 20 2l Subscribed and sworn to before me . th is /r;, Oi day 0 f {; ().fr?i~L , 19 ,f~~ 22 I i /{,-, I, ' / IIZ ,':.:tt-lJ 'Notary Pub ic, in an or the County 0 Los Angeles, State of California. 23 24 25 26 27 28 SUPPORTING DOCUMENTS "'" '" NOTICE OF ORDINANCE SUBJECT TO REFERENDUM CITY OF VERNON ORDINANCE NO. 956 . ADOPTED BY THE CITY COUNCIL OF THE CITY OF VERNON ON OCTOBER l5, 1985 Notice is hereby given that at a regular adjourned meeting of the City Council of the City of Vernon (the IICity Councilll) held on October 15, 1985, Ordinance No. 956 (the 1I0rdinance") was a~oPted. 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 HOOV'ER UPRATI~ PRWECT REVENUE BONDS BY SOUTHERN CALIFORNIA PUBLIC POWER APTHORITY Summaty Pursuant to the Ordinance, the City Council has authorized the issuance and sale by Southern California Public Power Authority (the "Authority") of its Acquisition Bonds, to mature on or before October 31, 2030, to be issued, from time to time, in one or more installments; in an estimated maximum aggregate principal amount out- standing at anyone time in accordance with their terms of $50,000;000 and to bear interest at ,a probable overall rate of 12% per annum. The actual interest rates on each installment of such Acguisi tion Bonds or the method of 'determining such' rates will be 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 Acquisition Bonds, the Authority is authorized, pursuant to the Ordinance, to issue addi- tional principal amounts of its Acquisition Bonds if and to the extent required to complete the financing of the acquisition of capacity rights in the Project discussed below. Pursuant to the Ordinance, the City Council has authorized the issuance and sale by the Authority of its Refunding Bonds (which together with the Acquisition Bonds are herein referred to as the "Hoover Uprating Project Revenue Bonds"), to mature on or before October 31, 2030, to bear interest at a probable overall rate of 12% per annum, and to be issued, from time to time, in one or more installments, in an estimated maximum aggregate principal amount out- standing at anyone' time in accordance with their terms equal to the sum of (i) $50,000,000, ,being the estimated maximum aggregate prinCi- pal amount, of Acquisition Bonds issued and to be issued for the acquisition of capacity rights in the Project, plus (ii) the prinCi- pal amount of any additional AoquisitionBonds issued to complete the financing of the acquisition of capacity rights in the Project, plus' (iii) such additional amounts, if any, required to purchase federal securities to implement such refunding as provided in Sections 53580 to 53585# inclusive, of, the Government, Code of the State of California, plus (iv)' such.. additional amounts, if any, necessary to provide funds sufficient for the payment of principal, interest, premium and expenses as provided in Section 6577 of the Government Code of the State of California. Notwithstanding such estimated max- imum aggregate principal amount, the Authority is authorized to issue additional principal amounts of its Refunding Bonds if and to the extent required to complete the financing of the acquisition of capacity rights in the Project. The Authority was created pursuant to a Joint Powers Agreement, as amended (the "Agreement") heretofore entered into between the City Council of the City of Vernon and certain other public agencies created pursuant to the laws of the State of California (collectively, the "Members") pursuant to the provisions relating to the joint exercise of powers found in Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California, as amended (the "Joint Powers Act"). 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 entered or will enter into agreements to acquire rights to capacity in a project consisting of the uprating of the electric generators of the Hoover Power Plant at the Hoover Dam (the "Project"). The Authority has entered or will enter into agreements (the "Power Sales Contracts") with two or more of the Members, pursuant to which the Members entering into such Power Sales Contracts (the "Project Participants") will purchase fram the Authority a percentage entitle- ment in the capacity of the Project. The City Council heretofore has authorized, by ordinance, the issuance and sale by the Authority of its Notes to provide funds for the financing of the acquisition of capacity rights in the Project. The Notes are to be payable fram the proceeds of the Acquisition Bonds authorized by 'the Ordinance and, to the extent not so paid, may be payable from revenues of the Authority from the acquisition of capacity rights in the Project, including payments to be made by the Project PartiCipants under the Power Sales Contracts. Neither the payment of principal of the Hoover Uprating Project Revenue Bonds nor any part thereof nor interest thereon will constitute a debt, liability or obligation of the City of Vernon. The acquisition and financing of capacity rights in the Project would assist the Project Participants to finance said acquisition. THE AUTHORITY PROPOSES TO ISSUE, IN ACCORDANCE WITH THE AGREEMENT AND THE JOINT POWERS ACT, ITS HOOVER UPRATING PROJECT REVENUE BONDS TO PROVIDE FUNDS FOR THE FINANCING OF THE ACQUISITION OF CAPACITY RIGHTS IN THE PROJECT. THE HOOVER UPRATING PROJECT' REVENUE BONDS ARE m BE PAYABLE FROM FONDS HELD IN moST FOR mE BEN- EFIT OF THE HOLDERS OF SUCH BONDS AND FROM REVENUES OF THE AUTHORITY FROM THE ACQUISITION OF CAPACITY RIGHTS IN THE PROJ'ECT, INCLUDING -2- PAYMENTS TO BE MADE BY THE PROJEC1' PARTICIPANTS UNDER THE PaiER SALES CONTRACTS. THE ORDINANCE AUTHORIZING THE ISSUANCE OF THE ACQUISITION BONDS IS SUBJECT TO REFERENDUM. UPON PRESENTATION (WITHIN THE TIME PERIOD SPECIFIED BY LAW) OF A PETITION (BEARING SIGNATURES, IN AT LEAST THE NUMBER RE)JUIRED BY THE LAW) PROTESTIN3 AGAINST THE ADOPl'ION OF THE ORDINANCE, THE CITY COUNCIL IS REQUIRED TO RECONSIDER THE ORDINANCE. THEREUPON, IF THE CITY COUNCIL DOES NOT ENTIRELY REPEAL THE ORDINANCE, THE ORDINANCE SHALL BE SUBMITTED (ONDER BALLOT WORDING PRESCRIBED BY LAW) TO THE VOTERS AT A REGULAR OR SPECIAL ELEC1'ION AND THE ORDINANCE SHALL NOT BECOME EFFECTIVE UNTIL A MAJORITY OF THE VOTERS VOTING ON THE ORDINANCE VOTE IN FAVOR OF IT. THE FOREGOING DESCRIPTION OF THE PROCEDURES 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 STATEMENT OF SUCH PROVISIONS. -3- 1 AFFIDAVIT OF POSTING 2 STATE OF CALIFORNIA ) ) COUNTY OF LOS ANGELES ) ) CITY OF VERNON ) SS 3 4 .. ~) I BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do hereby certify that I did on the 16th day of October, 1985, post fifteen (15) copies of: Notice of Ordinance Subject to Referendum City of Vernon Ordinance No. 956 Adopted by the City Council of the City of Vernon On October 15, 1985 6 7 8 9 10 11 12 13 14 15 16 one in each of the following places, to wit; At the northwest corner of 38th Street & Santa Fe Avenue; at the northeast corner of Leonis Blvd. & Pacific Blvd.; and on two bulletin boards in the lobby of the second floor of the City Hall building of the City of Vernon; and outside the City Hall Council Chambers on the first 17 floor of the City Hall building; 2600 Leonis Blvd.; 5121 Hampton Street; 2265 E. 38th Street; 3375 Fruitland Avenue; 4301 Santa Fe Avenue; 2800 So to Street; 4530 Bandini Blvd.;; 2430 East 49th St., 4580 Pacific Blvd.; 3801 Santa Fe Avenue; and 4334 Santa Fe Ave., 18 19 20 21 22 23 24 all in the city of Vernon, there being no newspaper of general circulation printed and published in the City of Vernon. Signed this 16th day of OCtOb~85. ~~~~~ Bruce V. Ma kenhorst, City C1 rk 25 Subscribed and sworn to before me thi~ 16th day of October, 1985 OFFicIAL SEAL GLORIA J OROSCO NOTARY PUBLIC - CALIFORNIA LOS M1GEI[S C8\1NTY 0 My comm, expiies "I'R 22, 1.86 ~'~ 26 28 the County California ~/ ' 27 ./-,:.,JfL';J,' Notary of Los 1 AFFIDAVIT OF POSTING 2 STATE OF CALIFORNIA ) ) 3 COUNTY OF LOS ANGELES) SS ) 4 CITY OF VERNON ) 5 I, BRUCE V. MALKENHORST, City Clerk of the City of 6 Vernon, do hereby certify that I did on the 22nd day of October 7 1985, post one additional copy of: 8 Notice of Ordinance Subject to Referendum 9 City of VErnon Ordinance No. 956 10 Adopted by the City Council of the City of Vernon 11 On October 15, 1985, 12 in the lobby of Energy Services, Inc., at 2323 E. Vernon Avenue, 13 Vernon, there being no newspaper of general circulation printed 14 and published in the City of Vernon. 15 Signed this 2.2nd day of October, 1985. 16 17 s/Bruce V. Malkenhorst -Bruce V. Malkenhorst City ,Clerk 18 19 20 21 22 23 24 25 26 27 28 Subscribed and sworn to before me this 22nd day of October 1985. " ---. ,,'-" ,-..... /"" /~ " -/ -.1-/. \ i' (1, l:! / '\(-t_!,r-'\___~'\- f _tJ('_~~;'.U:.\:..{:~ Notar:y.Ptiblic" i~ and for the County of Los Angeles, State of California ;r''''o=~~~-~I ': A~ OFFICIAL SEAL J, ;!/,'''.",,,. .... SHARON l DUCKWORTH rf:!!!>. NOTARY PUBLIC' CALlFOR.':U\ .~ )i \~ LOS ANGELES COUNTY . )1 4(, My cor.1m. expires APR 5, 1 S~7 ;lv~~'--""':""';;'-'"