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Resolution No. 2010-162RESOLUTION NO. 2010-162 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF VERNON DECLARING ITS INTENT TO FINANCE CERTAIN CAPITAL EXPENDITURES FROM AMOUNTS ON DEPOSIT IN A REMEDIATION PROCEEDS FUND CREATED IN CONNECTION WITH THE ISSUANCE BY THE VERNON NATURAL GAS FINANCING AUTHORITY OF ITS VARIABLE RATE REVENUE BONDS (VERNON GAS PROJECT) WHEREAS, the City of Vernon (the "City"), a municipal corporation and a chartered city of the State of California, intends to make certain capital expenditures related to its electric system and other qualified improvements as approved by tax counsel for the above -referenced Bonds (the "Bonds") (collectively, the "Project"); and WHEREAS, there are currently on deposit in, or allocable to, a remediation proceeds fund established in connection with the issuance of the Bonds (the "Fund") amounts which the City plans to use to pay for a portion of the costs of the Project); and WHEREAS, the City may initially pay a portion of the costs of the Project from sources other than from the amounts in the Fund with the intent to reimburse itself from amounts in the Fund (the "Reimbursement Expenditures"); and WHEREAS, amounts in the Fund allocated to Reimbursement Expenditures will be withdrawn from the Fund no later than two years from the date of receipt of such amounts. 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 and correct. SECTION 2: This declaration is made solely for purposes of establishing compliance with the requirements of Section 1.148-12(e) of the Treasury Regulations relating to so-called "remedial actions." This declaration does not bind the City to make any expenditure, incur any indebtedness, or proceed with the Project. SECTION 3: The City hereby declares its official intent to use amounts in the Fund either directly to pay for costs of the Project or for Reimbursement Expenditures within two years from the date of receipt of each amount deposited into the Fund. SECTION 4: The City Clerk of the City of Vernon shall certify to the passage, approval and adoption of this resolution, and the City Clerk of the City of Vernon shall cause this resolution and the City Clerk's certification to be entered in the File of Resolutions of the Council of this City. APPROVED AND ADOPTED this 15th day of November, 2010. NAME: Hilario Gonzales TITLE: Mayor / Za;rnr Pr6_-_T_em_ 2 STATE OF CALIFORNIA ) ss COUNTY OF LOS ANGELES ) I, Willard G. Yamaguchi,, City Clerk of the City of Vernon, do hereby certify that the foregoing Resolution, being Resolution No. 2010-162, was duly passed, approved and adopted by the City Council of the City of Vernon at a regular meeting of the City Council duly held on Monday, November 15, 2010, and thereafter was duly signed by the Mayor or Mayor Pro-Tem of the City of Vernon. Executed this 1`7 day of November, 2010, at Vernon. California_ (SEAL) Willard a aguc i City Clerk 3 CITY CLERK'S OFFICE INTEROFFICE MEMORANDUM DATE: November 17, 2010 TO: Carlos Fandino, Director of Light & Power FROM: Willard Yamaguchi, City Clerk RE: Resolution No. 2010-162 — A Resolutio f the City Council of the City of Vernon Declaring its Intent to Finance Certain Capital Expenditures from Amounts on Deposit in a Remediation Proceeds Fund Created in Connection with the Issuance by the Vernon Natural Gas Financing Authority of its Variable Rate Revenue Bonds (Vernon Gas Project) Transmitted herewith is a copy of Resolution No. 2010-162 referenced above, which was approved by City Council on November 15, 2010. Thank you. WY:dj Attachment c: Rory Burnett Resolution No. 2010-162 RECEIVED N0v 0 3 2010 STAFF REPORT cl`CYCLERKsoFFic� LIGHT & POWER DATE: November 15, 2010 TO: Honorable Mayor and City Council FROM: Carlos R. Fandino, Jr. d, Director of Light & Power RE: Intent to Finance Certain Capital Expenditures The Light & Power Department intends to finance certain capital expenditures and improvements related to its electric system. The Department plans to use amounts on deposit in a remediation proceeds fund created in connection with the Vernon Gas Project to pay for a portion of capital project expenditures. RECOMMENDATION: The Light and Power Department recommends City Council approval at the November 15, 2010 City Council meeting, for the use of remediation fund proceeds to pay for capital expenditure projects or for reimbursement of capital expenditures within two years from the date of receipt of each amount deposited into the remediation fund. FISCAL IMPACT No fiscal impact. CRF:ah J