HomeMy WebLinkAboutOrdinance No. 92-O32 ORDINANCE NO. 92-032
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 SAN JUAN 3 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 Powers Act,
the Authority will enter into agreements to acquire an interest in a coal-fueled electric
generating unit known as Unit 3 of San Juan Generating Station, together with related
facilities (the "San Juan 3 Project"); and
WHEREAS, the Authority proposed 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 (together, "Acquisition
Bonds"), to be outstanding at any one time in accordance with their terms in the
estimated maximum aggregate principal amount of $300,000,000 for the purpose of
financing costs of acquisition of the Authority's rights and interest in the San Juan 3
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, "Power Project Revenue Bonds") for the purpose of redeeming or
retiring Acquisition Bonds or Refunding Bonds theretofore issued, or other
indebtedness theretofore issued for the San Juan 3 Project; and
WHEREAS, the Authority will enter into agreements (the "San Juan 3
Project Power Sales Contracts") with two or more of the Members, pursuant to which
the Members entering into such San Juan 3 Project Power Sales Contracts (the "San
Juan 3 Project Participants") will purchase from the Authority a percentage
entitlement in the energy and capacity of the San Juan 3 Project; and
WHEREAS, the Power Project Revenue Bonds with respect to the San
Juan 3 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 form the San Juan 3 Project,
including payments to be made by the San Juan 3 Project Participants under the San
Juan 3 Project Power Sales Contracts; and
WHEREAS, in accordance with the Joint Powers Act, the exercise by the
Authority of its power to issue Power Project Revenue Bonds is subject to the
authorization by ordinance of those Members which contact to make payments to be
applied to the payment of such Power Project Revenue Bonds; and
WHEREAS, neither the payment of principal of the Power 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 has determined that the acquisition of rights
in the San Juan 3 Project by the Authority is appropriate to assist the San Juan 3
Project Participants to meet the future power needs of their customers for electric
energy; and
WHEREAS, the City Council has determined that the issuance by the
Authority of Power Project Revenue Bonds is appropriate to reduce the debt service
cost related to the financing of costs of acquisition of the Authority's rights and
interest in the San Juan 3 Project and reduce the costs payable by the San Juan 3
Project Participants under the San Juan 3 Project Power Sales Contracts or to realize
other economic benefits relating to the San Juan 3 Project.
NOW THEREFORE, the City 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, in a maximum aggregate principal
amount of $300,000,000, for the financing costs of acquisition of the Authority's
rights and interest in the San Juan 3 Project is hereby authorized. Notwithstanding
such maximum aggregate principal amount, the Authority is hereby authorized to issue
additional principal amounts of its Acquisition Bonds if and to the extend required to
complete the financing of costs of acquisition of the Authority's rights and interest in
the San Juan 3 Project. The proceeds from the sale of the Acquisition Bonds hereby
authorized are to be used for the financing of costs of acquisition of the Authority's
rights and interest in the San Juan 3 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 trust for the
benefit of the holders of Acquisition Bonds and form revenues of the Authority from
the San Juan 3 Project, including payments received by the Authority from the San
Juan 3 Project Participants under the San Juan 3 Project Power Sales 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 San Juan 3 Project
is hereby authorized. The estimated maximum aggregate principal amount of such
Refunding Bonds with respect to the San Juan 3 Project outstanding at any one time
in accordance with their terms shall be an amount equal to the sum of (i)
$300,000,000, being the estimated maximum aggregate principal amount of
Acquisition Bonds issued and to be issued for the financing of costs of acquisition of
the Authority's rights and interest in the San Juan 3 Project, plus (ii) the principal
amount of any additional Acquisition Bonds issued to complete the financing of costs
of acquisition of the Authority's rights and interest in the San Juan 3 Project, plus (iii)
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 extent required to complete the financing of costs of acquisition of the
Authority's rights and interest in the San Juan 3 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 San Juan 3 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 San Juan 3 Project, including payments received by the
Authority from the San Juan 3 Project Participants under the San Juan 3 Project
Power Sales Contracts.
3. This Ordinance is subject to the provisions for the 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.
4. 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 October, 1992.
44,0 *-4200€4.•
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. 92-032 was regularly introduced and placed upon its first
reading at a regular meeting of the City Council on the 5th day of October, 1992.
That thereafter, said Ordinance was duly adopted and passed at a regular meeting of
the City Council on the 19th day of October, 1992 by the following vote, to wit:
AYES: DANGLEIS, MADRID, NARANJO, ALEXANDER, MOSES
NOES: NONE
ABSENTNONE
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TY CLERK