HomeMy WebLinkAboutOrdinance No. 2176 ORDINANCE NO. 2176
ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AZUSA AUTHORIZING THE ISSUANCE
OF REFUNDING BONDS 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, 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 has entered into agreements
to acquire an interest in a
q 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 , pursuant to ordinance this City Council has
heretofore authorized the Authority 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 outstanding at any one time in accordance with their
terms in the estimated maximum aggregate principal amount of
$800 ,000 ,000 , for the purpose of providing funds for the
acquisition, construction and financing of the Project; and
has also authorized the Authority to issue additional principal
amounts of its Power Project Revenue Bonds if and to the extent
required to complete the financing of the Project; and the Power
Project Revenue Bonds so authorized are hereinafter referred to
as the "Construction Bonds" ; and
WHEREAS , the Authority has entered into agreements
(the "Power Sales Contracts") with certain of the Members ,
pursuant to which the Members entering into such Power Sales
Contracts (the "Participants") , will, in the aggregate, purchase
100% of the output of the Authority's interest in the Project;
and the City of Azusa, having entered into such a Contract, is
a Participant; and
WHEREAS , the Authority has heretofore issued a portion
of the Construction Bonds and intends to issue additional
Construction Bonds; and
WHEREAS , at present and from time to time, conditions
in the tax-exempt bond market are or may become favorable for
refunding outstanding bonds with a resulting savings in debt
service costs or other economic benefits relating to the Project,
and
WHEREAS , pursuant to Section 6576 of the Government j
Code of the State of California the Authority may issue and sell,
from time to time, in one or more installments , its refunding
bonds ("Refunding Bonds") for the purpose of redeeming or retiring
Construction Bonds or Refunding Bonds theretofore issued, or any
other indebtedness theretofore incurred by the Authority for the
Project; and
WHEREAS , it is the intention of the Authority to issue
Refunding Bonds for the purpose of reducing the debt service cost
relating to the Project or for the purpose of realizing other
economic benefits relating to the Project; and
WHEREAS , in accordance with the Joint Powers Act, the
exercise by the Authority of its power to issue Refunding Bonds
is subject to the authorization of such issuance by certain of
the Members pursuant to ordinance; and
WHEREAS , neither the payment of principal of the
Refunding Bonds nor any part thereof nor interest thereon shall
constitute a debt, liability or obligation of the City of Azusa;
and
WHEREAS , this City Council has determined that the
issuance by the Authority of Refunding Bonds is appropriate to
reduce the debt service cost related to the Project and reduce
the costs of purchased power payable by the Participants under
the Power Sales Contracts or to realize other economic benefits
relating to the Project;
NOW, THEREFORE , THE CITY COUNCIL OF THE CITY OF
AZUSA ORDAINS AS FOLLOWS :
1. The issuance and sale by the Authority, from
time to time, in one or more installments , of its
Refunding Bonds is hereby authorized. The estimated
maximum aggregate principal amount of such Refunding
Bonds to be outstanding at any one time in accordance
with their terms shall be an amount equal to the sum of
(i) $800 ,000 ,000 , being the estimated maximum aggregate
principal amount of Construction Bonds issued and to be
issued by the Authority for the Project, plus (ii) the
principal amount of any additional Construction Bonds
issued by the Authority to complete the financing of
the Project, plus (iii) such additional amounts, if
any, required to purchase federal securities to imple-
ment such refunding as provided in Sections 53580 to
53585 , inclusive, of the Government Code of the State
of California, plus (iv) such additional amounts , if
any, necessary to provide funds sufficient for the
payment of principal, interest, premium and expenses
as provided in Section 6577 of the Government Code of
the State of California. 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 the Project. The proceeds
from the sale of the Refunding Bonds hereby authorized
are to be used for the purpose of redeeming or retiring
the Construction Bonds , Refunding Bonds or other indebted-
ness to be refunded as aforesaid. The Refunding 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 Refunding Bonds and
from revenues of the Authority with respect to its
interest in the Project, including payments received by
the Authority from the Participants under the Power
Sales Contracts.
2. The authorization provided to the Authority
by Section 1 above shall not apply to any installment
of Refunding Bonds unless the Authority shall determine
that a present value savings of debt service will result
from the issuance of such Refunding Bonds or that other
economic benefits relating to the Project will be realized
therefrom.
3. Pursuant to Section 6547 of the Government Code
of the State of California, this Ordinance is subject to
the provisions for referendum prescribed by Section 3751.7
of the Elections Code of the State of California.
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 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 enact-
ment it shall take effect and be in full force in the manner
provided by law.
THE FOREGOING ORDINANCE is approved, enacted and adopted
this 16th day of May , 1983.
L7viodat
J 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. 2176 was
regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 2nd day of May
1983. That, thereafter, said Ordinance was duly adopted and
passed at a regular meeting of the City Council on the 16th
day of May , 1983 , by the following vote to wit:
AYES : COUNCILMEN: DECKER, HART, CRUZ , LATTA, MOSES
NOES: COUNCILMEN: NONE
ABSENT: COUNCILMEN: NONE
CITY CLERK
Publish Azusa .Herald: May 25, 1983