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HomeMy WebLinkAboutOrdinance No. 2124 ORDINANCE NO. .2124 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AUTHORIZING THE ISSUANCE OF POWER PROJECT REVENUE BONDS BY SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY. WHEREAS, pursuant to the provisions of Chapter 5 , Divi- sion 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 Power Project Revenue Bonds to be out- standing at any one time in accordance with their terms in the esti- mated maximum aggregate principal amount of $800, 000 ,000 , to mature on or before October 31, 2030, for the purpose of providing funds for the acquisition, construction and financing of the Project; and WHEREAS, the Authority also proposes to issue its Notes for the purpose of temporary financing of costs of acquisition and con- struction of the Project; and WHEREAS, notwithstanding the aforesaid estimated maximum aggregate principal amount of Power Project Revenue Bonds proposed to be issued by the Authority for the Project and to be outstanding at any one time in accordance with their terms, additional Power Project Revenue Bonds may be required to complete the financing of the Pro- ject; 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 aggregate, purchase 100% of the out put of the Project; and WHEREAS, the Power Project Revenue Bonds 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 Project, including pay- ments to be made by the Participants under the Power Sales Contracts; and WHEREAS, the Notes are to be 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 Con- tracts; and WHEREAS, in accordance with the Joint Powers Act, the exer- cise by the Authority of its power to issue the Power Project Revenue Bonds is subject to the authorization of such issuance by the Members pursuant to Ordinance; and 1 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 of Azusa; and WHEREAS, the City Council has determined that the acquisi- tion 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, this City Council proposes to authorize by ordi- nance the issuance and sale by the Authority of its Notes , which are to be payable from proceeds of the Power Project Revenue Bonds autho- rized by this Ordinance and, to the extent not so paid, may be pay- able from revenues of the Authority from the Project, including pay- ments received by the Authority from the Participants under the Power Sales Contracts. 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 Power Project Revenue Bonds outstanding at any one time in accordance with their terms in a maximum aggregate principal amount of $800, 000, 000 is hereby authorized. Notwithstanding such maximum aggregate principal amount, the Authority is hereby authorized to issue additional principal amounts of its Power Project Revenue Bonds if and to the extent required to complete the financing of the Project. The proceeds from the sale of the Power Project Revenue Bonds hereby authorized 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 of the Authority when due. The Power Project Revenue Bonds hereby autho- rized, and premium and interest thereon, are to be payable from, and secured by, funds held in trust for the benefit of the holders of Power Project Revenue Bonds and from rev- enues 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 cir- culation, 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 APPOVED THIS 21s-t day of , Decerbc r 1981. / 7 f 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. 2124 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, Solem NOES: COUNCILMEN: None ABSENT: COUNCILMEN: Cruz 7.;7i , / City Clerk Publish Azusa Herald: December 30, 1981