Resolution No. 90561 RESOLUTION NO. 9056
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3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
VERNON ESTABLISHING A RESTRICTED LIGHT & POWER FUND
4 STABILIZATION ACCOUNT WITHIN THE LIGHT & POWER FUND
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6 WHEREAS, the City Council has determined that it is prudent
7 fiscal management for the City to establish a restricted Light & Power
8 Fund Stabilization Account within the Light & Power Fund, to restrict
9 the use of funds in such account for the financial integrity of the
10 Light & Power Department, and to fund such account from time to time in
11 the amount of $20 million on the terms and conditions set forth in this
1.2 resolution; and
13 WHEREAS, the City desires to authorize the setting aside
14 funds of funds from time to time in the amount of $20 million in the
15 restricted Light & Power Fund Stabilization Account and authorize the
16 taking of all actions and the execution of all documents necessary or
17 convenient to implement the provisions of this resolution.
18 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
19 CITY OF VERNON AS FOLLOWS:
20 SECTION 1: The City Council of the City of Vernon hereby
21 finds and determines that the recitals contained hereinabove are true
22 and correct.
23 SECTION 2: (a) The City Council of the City of Vernon
24 hereby approves and directs the establishment of a restricted account
25 in the Light & Power Fund and authorizes the City Treasurer, or his
26 authorized designee, to set up such account to be designated as the
27 Light & Power Fund Stabilization Account (the "Stabilization
28 Account").
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(b) The Stabilization Account will be funded from available
moneys in the City's General Fund in the amount of $20 million not
later than thirty days after the end of each fiscal year in which the
Net Revenues of the Light & Power Department plus the amount paid in
such fiscal year with respect to debt service on outstanding bonds of
the Vernon Natural Gas Financing Authority (the "Available Electric
Revenues") falls below the debt service on the City's outstanding
electric revenue bonds and on the outstanding bonds of the Vernon
Natural Gas Financing Authority (collectively, the "Covered Debt
Service") payable during such fiscal year (the "Coverage Test"). The
requirement to fund the Stabilization Account in each fiscal year will
remain in place for the greater of: (i) 12 months from the end of each
fiscal year for which the Coverage Test is not satisfied and (ii)
until such time, as evidenced by audited financial statements,
Available Electric Revenues for a fiscal year equal at least 1.30x the
Covered Debt Service for such fiscal year. Upon satisfying this test,
the funds in the Stabilization Account will revert to the City's
General Fund. Notwithstanding that moneys in the Stabilization
Account have previously reverted to the General Fund, should the City
fail to meet the Coverage Test with respect to any fiscal year, the
City will again fund the Stabilization Account in the amount of $20
million in accordance with the foregoing provisions of this
Isubsection.
(c) Except as provided above with respect to the reversion
of moneys in the Stabilization Account to the General Fund, moneys in
the Stabilization Account shall be applied solely to costs and
expenses of the Light & Power Department. So long as the City is
required to fund the Stabilization Account pursuant to this Section 2,
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Ilwithdrawals from Stabilization Account shall be replenished within
(thirty days of the end of each fiscal year.
(d) Moneys in the Stabilization Account shall be invested in
any investment which is authorized by law for the investment of City
(funds. Investment earnings on moneys in the Stabilization Account will
(flow to the Light & Power Fund.
SECTION 3: The City Council of the City of Vernon hereby
authorizes the Mayor, or his designee, to execute any and all
documents necessary or convenient for the purpose of establishing the
Stabilization Account and to implement and carry out the intent of
this resolution, for, and on behalf of, the City of Vernon. The City
Council of the City of Vernon hereby authorizes the Mayor, the Acting
City Clerk, the City Attorney, the City Treasurer and all other proper
officers of the City to take all actions necessary or convenient for
the purpose of establishing the Stabilization Account and to implement
and carry out the intent of this resolution.
SECTION 4: 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 24th day of May, 2006.
ATTEST:
BRUC . MALKENHORST, JR.
Acting City Clerk
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EONIS C. MALB G, 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. 9056, was duly adopted by the City Council of the City
of Vernon at a regular meeting of the City Council duly held on
Wednesday, May 24, 2006, and thereafter was duly signed by the Mayor of
the City of Vernon.
BRUCE V. MALKENHORST, JR.
Acting City Clerk
(SEAL)
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SUPPORTING
DOCUMENTS
CITY COUNCIL
LEONIS C. MALBURG
Mayor
THOMAS A. YBARRA
Mayor Pro-Tem
WM. 'BILL" DAVIS
Councilman
H. "LARRY" GONZALES
Councilman
W. MICHAEL McCORMICK
Councilman
May 25, 2006
�J
4305 Santa Fe Avenue, Vernon, California 90058
telephone (323) 583-8811
A. Craig Underwood
Bond Logistix LLC
777 South Figueroa Street, Suite 3200
Los Angeles, CA 90017
Re: Resolution Nos. 9054, 9055, and 9056
Dear Mr. Underwood:
SOL BENUDIZ
Police Chief
MARK C. WHITWORTH
Acting Fire Chief
LEWIS J. POZZEBON
Director of Environmental Health
S. KEVIN WILSON
Director of Community Services
SHARON L. DUCKWORTH
Acting City Treasurer
Transmitted herewith are two certified copies of each of the
above -referenced resolutions, which were approved by the City
Council on May 24, 2006.
If you have any questions,
583-8811 ext. 225.
y truly yours,
VX
Nelly Gi
Deputy City Clerk
NG/ke
cc: City Attorney
Resolution No. 9054
Resolution No. 9055
Resolution No. 9056
please call Mr. Eric Fresch, at (323)
� e(ugfvd[ 114bo al
CERTIFICATE
STATE OF CALIFORNIA )
) ss
COUNTY OF LOS ANGELES)
I, Manuela Giron, Deputy City Clerk of the City of Vernon,
County of Los Angeles, State of California, hereby certify that
the attached is a full and complete copy of:
RESOLUTION NO. 9056 - A Resolution of the City Council of
the City of Vernon Establishing a Restricted Light & Power
Fund Stabilization Account Within the Light & Power Fund
IN WITNESS WHEREOF, I have hereunto set my hand and affixed
the official Seal of the City of Vernon, County of Los Angeles,
State of California, on this 25th day of May 2006.
SEAL:
Manuela Giron
Deputy City Clerk