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HomeMy WebLinkAboutOrdinance No. 91-O12 ORDINANCE NO. 91-012 ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING THE ISSUANCE OF BONDS BY THE SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY TO FINANCE COSTS OF THE MEAD-PHOENIX PROJECT AND THE MEAD-ADELANTO PROJECT WHEREAS, 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 City of Azusa (the "City") and certain other public agencies created pursuant to the laws of the State of California (collectively, the "Members") , have entered into a Joint Powers Agreement, as amended (the "Agreement") , creating the Southern California Public Power Authority (the "Authority") , a public entity separate and apart from the Members: and WHEREAS, in accordance with the Agreement and the Joint Power Act, the Authority will enter into agreements to acquire rights in a project consisting of an AC transmission line to be constructed from a substation in the Las Vegas, Nevada area to a substation in the Phoenix, Arizona area, together with related facilities (the "Mead-Phoenix Project") ; and WHEREAS, in accordance with the Agreement and the Joint Powers Act, the Authority will enter into agreements to acquire rights in a project consisting of an AC transmission line to be constructed from a substation in the Las Vegas, Nevada area to the existing Adelanto Switching Station in the Adelanto, California area, together wiTH related facilities (the "Mead- Adelanto Project") ; and WHEREAS, the Authority proposes to issue, in accordance with the Agreement and the Joint Powers Act, from time to time, in one or more installments, its revenue bonds and other evidences of indebtedness, which may include a portion hereafter designated by the Authority of the Authority' s 1989 Multiple Project Revenue Bonds (together, "Acquisition Bonds") , to be outstanding at any one time in accordance with their terms in the estimated maximum aggregate principal amount of (1) $150, 000, 000 for the purpose of financing costs of construction and acquisition of the Authority's rights and interest in the Mead- Phoenix Project and (2) $350, 000, 000 for the purpose of financing costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project; and WHEREAS, from time to time, conditions in the tax-exempt bond market may become favorable for refunding outstanding bonds with a resulting savings in debt service costs or other economic benefits for the Authority; and WHEREAS, pursuant to the laws of the State of California, the Authority may issue from time to time in one or more installments, its refunding revenue bonds and other evidences of indebtedness (together, "Refunding Bonds" and, together with Acquisition bonds, "Transmission Project Revenue Bonds") for the purpose of redeeming or retiring Acquisition Bonds or Refunding Bonds theretofore issued, or other indebtedness theretofore issued for the Mead-Phoenix Project or the Mead-Adelanto Project; and WHEREAS, the Authority will enter into agreements (the "Mead-Phoenix Project Transmission Service Contracts") with two or more of the Members, pursuant to which the Members entering into such Mead-Phoenix Project Transmission Service Contracts (the "Mead-Phoenix Project Participants") will purchase from the Authority a percentage entitlement in the service of the Mead- Phoenix Project; and WHEREAS, the Authority will enter into agreements (the "Mead-Adelanto Project Transmission Service Contracts") with two or more of the Members, pursuant to which the Members entering into such Mead-Adelanto Project Transmission Service Contracts (the "Mead-Adelanto Project Participants") will purchase from the Authority a percentage entitlement in the service of the Mead- Adelanto Project; and WHEREAS, the Transmission Project Revenue Bonds with respect to the Mead-Phoenix Project are to be payable from funds held in trust for the benefit of the holders of such Bonds and from revenues of the Authority from the Mead-Phoenix Project, including payments to be made by the Mead-Phoenix Project Participants under the Mead-Phoenix Project Transmission Service Contracts; and WHEREAS, the Transmission Project Revenue Bonds with respect to the Mead-Adelanto Project are to be payable from funds held in trust for the benefit of the holders of such Bonds and from revenues of the Authority from the Mead-Adelanto Project, including payments to be made by the Mead-Adelanto Project Participants under the Mead-Adelanto Project Transmission Service Contracts; and WHEREAS, in accordance with the Joint Powers Act, the exercise by the Authority of its power to issue Transmission Project Revenue Bonds is subject to the authorization by ordinance of those Members which contract to make payments to be applied to the payment of such Transmission Project Revenue Bonds; and WHEREAS, neither the payment of principal of the Transmission Project Revenue Bonds nor any part thereof nor interest thereon shall constitute a debt, liability or obligation of the City; and WHEREAS, the City Council of the City of Azusa has determined that the acquisition of rights in each of the Mead- Phoenix Project and the Mead-Adelanto Project by the Authority is appropriate to assist the Mead-Phoenix Project Participants and the Mead-Adelanto Project Participants to meet the future power needs of their customers for electric energy; and WHEREAS, the City Council of the City of Azusa has determined that the issuance by the Authority of Transmission Project Revenue Bonds is appropriate to reduce the debt service cost related to the financing of costs of construction and acquisition of the Authority's rights and interest in each of the Mead-Phoenix Project and the Mead-Adelanto Project and reduce the costs payable by the Mead-Phoenix Project Participants and the Mead-Adelanto Project Participants under the Mead-Phoenix Project Transmission Service Contracts and the Mead-Adelanto Project Transmission Service Contracts or to realize other economic benefits relating to the Mead-Phoenix Project and the Mead- Adelanto Project. NOW THEREFORE, the City Council of the City of Azusa does ordain as follows: 1. The issuance and sale by the Authority, from time to time, in one or more installments, of its Acquisition Bonds (including the transfer, from time to time or in one or more installments, of funds from the multiple project proceeds account to a project account or accounts with respect to the Mead-Phoenix Project in accordance with the Indenture of Trust for the 1989 Multiple Project Revenue Bonds) , in a maximum aggregate principal amount of $150, 000, 000 for the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Phoenix Project is hereby authorized. Notwithstanding such maximum aggregate principal amount, the Authority is hereby authorized to issue additional principal amounts of its Acquisition Bonds (and to transfer additional amounts of 1989 Multiple Project Revenue Bond proceeds) is and to the extend required to complete the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead- Phoenix Project. The proceeds from the sale of the Acquisition Bonds hereby authorized are to be used for the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Phoenix Project, including interest on such Bonds and deposits to reserves. The Acquisition Bonds hereby authorized, and premium and interest thereon, are to be payable from, and secured by, funds held in the trust for the benefit of the holders of Acquisition Bonds and from revenues of the Authority from the Mead-Phoenix Project, including payments received by the Authority from the Mead-Phoenix Project Participants under the Mead-Phoenix Project Transmission Service Contracts. 2 . The issuance and sale by the Authority, from time to time, in one or more installments,of its Refunding Bonds with respect to the Mead-Phoenix Project is hereby authorized. The estimated maximum aggregate principal amount of such Refunding Bonds with respect to the Mead-Phoenix Project outstanding at any one time in accordance with their terms shall be an amount equal to the sum of (1) $150, 000, 000, being the estimated maximum aggregate principal amount of Acquisition Bonds issued and to be issued for the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Phoenix Project, plus (2) the principal amount of any additional Acquisition Bonds issued to complete the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Phoenix Project, plus (3) such additional amounts, if any, as are permitted by Section 6577 or Section 53580 et seq. of the Government Code of the State of California or other applicable law. Notwithstanding such estimated maximum aggregate principal amount, the Authority is hereby authorized to issue additional principal amounts of its Refunding Bonds if and to the extend required to complete the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Phoenix Project. The proceeds from the sale of Refunding Bonds hereby authorized are to be used for the purpose of redeeming or retiring the Acquisition Bonds, Refunding Bonds or other indebtedness theretofore issued with respect to the Mead-Phoenix Project. The Bonds hereby authorized, and premium and interest thereon, are to be payable from, and secured by, funds held in trust for the benefit of the holders of the Refunding Bonds and from revenues of the Authority with respect to the Mead-Phoenix Project, including payments received by the Authority from the Mead-Phoenix Project Participants under the Mead-Phoenix Project Transmission Service Contracts. 3 . The issuance and sale by the Authority, from time to time, in one or more installments, of its Acquisition Bonds (including the transfer, from time to time or in one or more installments, of funds from the multiple project proceeds account to a project account or accounts with respect to the Mead- Adelanto Project in accordance with the Indenture of Trust for the 1989 Multiple Project Revenue Bonds) , in a maximum aggregate principal amount of $350, 000, 000 for the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project is hereby authorized. Notwithstanding such maximum aggregate principal amount, the Authority is hereby authorized to issue additional principal amounts of its Acquisition Bonds (and to transfer additional amounts of 1989 Multiple Project Revenue Bond proceeds) is and to the extend required to complete the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project. The proceeds from the sale of the Acquisition Bonds hereby authorized are to be used for the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project, including interest on such Bonds and deposits to reserves. The Acquisition Bonds hereby authorized, and premium and interest thereon, are to be payable from, and secured by, funds held in the trust for the benefit of the holders of Acquisition Bonds and from revenues of the Authority from the Mead-Adelanto Project, including payments received by the Authority from the Mead- Adelanto Project Participants under the Mead-Adelanto Project Transmission Service Contracts. 4 . The issuance and sale by the Authority, from time to time, in one or more installments, of its Refunding Bonds with respect to the Mead-Adelanto Project is hereby authorized. The estimated maximum aggregate principal amount of such Refunding Bonds with respect to the Mead-Adelanto Project outstanding at any one time in accordance with their terms shall be an amount equal to the sum of (1) $350, 000, 000, being the estimated maximum aggregate principal amount of Acquisition Bonds issued and to be issued for the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project, plus (2) the principal amount of any additional Acquisition Bonds issued to complete the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project, plus (3) such additional amounts, if any, as are permitted by Section 6577 or Section 53580 et seq. of the Government Code of the State of California or other applicable law. Notwithstanding such estimated maximum aggregate principal amount, the Authority is hereby authorized to issue additional principal amounts of its Refunding Bonds if and to the extend required to complete the financing of costs of construction and acquisition of the Authority's rights and interest in the Mead-Adelanto Project. The proceeds from the sale of Refunding Bonds hereby authorized are to be used for the purpose of redeeming or retiring the Acquisition Bonds, Refunding Bonds or other indebtedness theretofore issued with respect to the Mead-Adelanto Project. The Bonds hereby authorized, and premium and interest thereon, are to be payable from, and secured by, funds held in trust for the benefit of the holders of the Refunding Bonds and from revenues of the Authority with respect to the Mead-Adelanto Project, including payments received by the Authority from the Mead-Adelanto Project Participants under the Mead-Adelanto Project Transmission Service Contracts. 5. This Ordinance is subject to the provisions for referendum prescribed by Section 3751.7 of the Elections Code of the State of California, as required by Section 6547 of the Joint Powers Act. Section 4050. 1 of the Elections Code of the State of California requires that this Ordinance be subject to the provisions for referendum as provided therein. 6. The City Clerk shall certify to the enactment of this Ordinance and shall cause notice of the same to be published in accordance with Section 6040. 1 of the Government Code of the State of California for five (5) consecutive days within fifteen (15) days of its enactment, in a daily newspaper of general circulation, published in the City, and sixty (60) days from and after its enactment it shall take effect and be in full force, in the manner provided by law. PASSED AND APPROVED this 19th day of August , 1991. 4(rriaft162e-- -- MAYOR STATE OF CALIFORNIA) COUNTY OF LOS ANGELES) ss. CITY OF AZUSA) I, ADOLPH SOLIS, City Clerk_of the City of Azusa, do hereby certify that the foregoing Ordinance No. 91-012 was regularly introduced and placed upon its first reads g at a regular meeting of the City Council on the 5th day of August , 1991. That thereafter, said Ordinance was duly adopted and passed at a regular meeting of the City Council on the 19th day of August , 1991 by the following vote, to wit: AYES: COUNCILMEMBERS: DANGLEIS, STEMRICH, NARANJO, ALEXANDER, MOSES NOES: COUNCILMEMBERS: NONE ABSENT: COUNCILMEMBERS: NONE , CITY CLERK