Resolution No. 86262
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RESOLUTION NO. 8626
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ESTABLISHING A RESTRICTED ACCOUNT WITHIN THE
LIGHT & POWER FUND
WHEREAS, Judge Lynn recently issued an order in the United
States Bankruptcy Court for the Northern District of Texas, Fort Worth
Division, in an adversary proceeding entitled Mirant Americas Energy
Marketing, LP, v. City of Vernon, Case No. 03-46590-DML ("Mirant")
ordering the City to set aside and restrict the use of funds in the
amount of $14 million to satisfy the Judgment entered, pending appeal
and final determination of the disputed damages in the Mirant case;
and
WHEREAS, the Mirant case involves damages for breach of
contract for failure to receive electric power in violation of the
terms of the Western Services Power Pool Agreement; and
WHEREAS, the City has filed a Motion for Stay Pending Appeal
Without the Posting of a Bond or Other Security; and
WHEREAS, the City desires to set aside funds from the Light &
Power Fund into a restricted account in compliance with the Mirant
court order; and
WHEREAS, on December 14, 2004, the Finance Committee
considered the recommendation of Bruce V. Malkenhorst, Finance
Director, dated December 9, 2004, that a resolution be adopted
establishing a restricted account and authorizing the execution of all
documents necessary to implement the set aside process.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF VERNON AS FOLLOWS:
SECTION 1: The City Council of the City of Vernon hereby
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finds and determines that the recitals contained hereinabove are true
and correct.
SECTION 2: The City Council of the City of Vernon hereby
approves the establishment of a restricted account in the amount of
$14 million from the Light & Power Fund and authorizes the City
Treasurer, or his authorized designee, to set up such an account to
set aside funds in compliance with the court order in the Mirant case.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the City Administrator, or his designee, to execute any and
all documents necessary for the purpose of establishing the restricted
account and to implement and carry out the purposes specified in the
court order, for, and on behalf of, the City of Vernon.
SECTION 4: The City Clerk of the City of Vernon shall
certify to the passage of this resolution, and thereupon and
thereafter the same shall be in full force and effect.
APPROVED AND ADOPTED this 15th day of December, 2004.
ATTEST:
BRUCE V. MALKENHORST, City Clerk
EONIS C. MAL URG, ayor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, City Clerk of the City of Vernon, do
hereby certify that the foregoing Resolution, being Resolution No.
8626, was duly adopted by the City Council of the City of Vernon at a
regular meeting of the City Council duly held on Wednesday,
December 15, 2004, and thereafter was duly signed by the Mayor of the
City of Vernon.
(SEAL)
BRUCE V. MALKENHORST, City Clerk
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