Resolution No. 89663
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RESOLUTION NO. 8966
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON AUTHORIZING THE CITY ATTORNEY TO NEGOTIATE
WITH CITIGROUP TO ACT AS THE CITY'S LEAD
UNDERWRITER AND INVESTMENT BANKER FOR NATURAL GAS
PRE -PAYMENT TRANSACTIONS AND TO NEGOTIATE WITH
INSTITUTIONS PROVIDING JUNIOR UNDERWRITER SERVICES
RELATING TO SAID TRANSACTIONS
WHEREAS, the City's Malburg Generating Station has commenced
1commercial operation; and
WHEREAS, the City is in the process of developing an
approximate 600 MW Combined Cycle Power Plant for the purpose of
installing additional generating capacity; and
WHEREAS, the City has constructed a natural gas distribution
system to distribute gas on a retail basis to customers throughout the
City; and
WHEREAS, the City needs to appoint a lead underwriter and
investment banker for natural gas pre -payment transactions in an
amount not to exceed $750 million for the City's Light & Power and Gas
Departments and potentially negotiate with junior underwriters to join
the underwriting and banking syndicate (collectively, the "Gas
Supplier/Prepayment Counterparty Syndicate"); and
WHEREAS, the City desires to appoint Citigroup to act as its
lead underwriter and investment banker in the Gas Supplier/Prepayment
Counterparty Syndicate, authorize the City Attorney to negotiate an
agreement with Citigroup and to negotiate, as needed, with
institutions to provide additional underwriter and gas supplier
services relating to the Gas Supplier/Prepayment Counterparty
Syndicate.
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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
finds and determines that the recitals contained hereinabove are true
(land correct.
SECTION 2: The City Council of the City of Vernon hereby
appoints Citigroup to act as its lead underwriter, gas supplier and
investment banker in the Gas Supplier/Prepayment Counterparty
Syndicate, authorizes the City Attorney, or his designee, to take all
steps necessary and appropriate to negotiate an agreement with
Citigroup to provide such services to the City, and authorizes the
City Attorney, or his designee, to take all steps necessary and
appropriate to negotiate an agreement, as needed, with junior
underwriters to join the Gas Supplier/Prepayment Counterparty
Syndicate. Once the negotiations have been completed, the City
Attorney shall submit the final agreements to the City Council for its
approval.
SECTION 3: The Acting 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 1"t day of February, 2006.
ATTEST :
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BRUC4 V. MqLKENHORST, JR.
%cting y Clerk
EONIS C. MA BURG, Mayor
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STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES )
I, BRUCE V. MALKENHORST, JR., Acting City Clerk of the City of
Vernon, do hereby certify that the foregoing Resolution, being
Resolution No. 8966, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, February 1, 2006, and thereafter was duly signed by the
Mayor of the City of Vernon.
(SEAL)
BR E . MALKENHORST, JR.
Acting City Clerk
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