HomeMy WebLinkAboutOrdinance No. 2125 ORDINANCE NO. 2125
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF AZUSA AUTHORIZING THE ISSUANCE OF NOTES
BY SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY.
WHEREAS, pursuant to the provisions of Chapter 5 ,
Division 7, Title 1 of the Government Code of the State of California,
as amended (the "Joint Powers Act" ) , the City of Azusa 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 (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 has entered or will enter into agreements
to acquire an interest in a project to provide for the generation of
electric energy, which project (the "Project") is to consist of an
ownership interest as tenant in common in the Palo Verde Nuclear
Generating Station, a nuclear steam electric generating station under
construction in the State of Arizona, and capital improvements
thereto that may be constructed from time to time, and interests in
certain other property and rights relating thereto; 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 Notes to be outstanding at any one time
in accordance with their terms in the estimated maximum aggregate
principal amount of $400, 000, 000 , to mature on or before July 1, 1991,
for the purpose of temporary financing of costs of acquisition and
construction of the Project; and
WHEREAS, the Authority proposes to issue its Power Project
Revenue Bonds for the purpose of providing funds for the acquisition,
construction and financing of the Project; and
WHEREAS, notwithstanding the aforesaid estimated maximum
aggregate principal amount of Notes proposed to be issued by the
Authority for the Project and to be outstanding at any one time in
accordance with their terms, additional Notes may be required to
complete the financing of the Project; and
WHEREAS, the Authority has entered or will enter into
agreements (the "Power Sales Contracts" ) with two or more of the
Members, pursuant .to which the Members entering into such Power Sales
Contracts (the "Participants" ) will , in the aggregare, purchase 100%
of the output of the Project; and
WHEREAS, the Notes are to be renewable from time to time
and payable from proceeds of the Power Project Revenue Bonds and,
to the extent not so paid, may be payable from revenues of the
Authority from the Project, including payments to be made by the
Participants under the Power Sales Contracts; and
WHEREAS, in accordance with the Joint Powers Act, the
exercise by the Authority of its power to issue the Notes is subject
to the authorization of such issuance by the Members pursuant to
Ordinance; and
WHEREAS, neither the payment of principal of the Notes nor
any part thereof nor int2r'est thereon shall constitute a debt,
liability or obligation of the City of Azusa; and
•
WHEREAS, the City Council of the City of Azusa has
determined that the acquisition of the Project by the Authority is
appropriate to assist the Participants in meeting the future power
needs of their customers for electric energy and in reducing the
reliance by the Participants on oil-fired generation and to realize
for the Participants savings in capital and operating costs and
economies of scale of large electric generating units; and
WHEREAS, the City Council of the City of Azusa has
authorized by Ordinance the issuance and sale by the Authority of its
Power Project Revenue Bonds, the proceeds from the sale of which are
to be used for the acquisition, construction and financing of the
Project, including interest on such Bonds and deposits to reserves,
and to pay the principal, premium, if any, and interest on the Notes
authorized by this Ordinance when due.
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
Notes outstanding at any one time in accordance
with their terms in a maximum aggregare principal
amount of $400 , 000,000 is hereby authorized.
Notwithstanding such maximum aggregate principal
amount, the Authority is hereby authorized to
issue additional principal amounts of Notes if and
to the extent required to complete the financing
of the Project. The proceeds from the sale of the
Notes hereby authorized are to be used for the
financing of costs of acquisition and construction
of the Project, including interest on the Notes.
The Notes hereby authorized are to be renewable from
time to time and such Notes, and premium, if any,
and interest thereon, are to be payable from proceeds
of Power Project Revenue Bonds of the Authority and,
to the extent not so paid, may be payable from
revenues of the Authority from the Project, including
payments received by the Authority from the
Participants under the Power Sales Contracts.
2 . Pursuant to Section 6547 of the Joint Powers Act,
this Ordinance is subject to the provisions for
referendum prescribed by Section 3751. 7 of the
Elections Code of the State of California.
3. 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 the San Gabriel Valley Tribune ,
a daily newspaper of general circulation, published
in the East San Gabriel Valley, and sixty (60) days
from and after its enactment it shall take effect and
be in full force, in the manner provided by law.
ADOPTED AND APPROVED this 2 su day of December
1981.
7 2
MAYOR
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ) SS.
CITY OF AZUSA
I, ADOLPH A. SOLIS , City Clerk of the City of Azusa,
do hereby certify that the foregoing Ordinance No. 2125 was
regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 7th day of December,
1981. That, thereafter, said Ordinance was duly adopted and
passed at a regular meeting of the City Council on the 21st
day of December, 1981, by the following vote to wit:
AYES: COUNCILMEN: Decker, Fry, Moses, Soler.:
NOES: COUNCILMEN: None
ABSENT: COUNCILMEN: Cruz
vt�' Clerk
Publish Azusa Herald: December 30, 1981