HomeMy WebLinkAboutOrdinance No. 2284 ORDINANCE NO . 2284
AN ORDINANCE OF THE CITY COUNCIL OF THE
CITY OF AZUSA AUTHORIZING THE ISSUANCE
OF HOOVER UPDATING PROJECT REVENUE BONDS
BY SOUTHERN CALIFORNIA PUBLIC POWER
AUTHORITY
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 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 or will enter into
agreements to acquire rights to capacity in a project consisting
of the uprating of the electric generators of the Hoover Power
Plant at the Hoover Dam (the "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 (the "Acquisition Bonds") , to be outstanding
at any one time in accordance with their terms in the estimated
maximum aggregate principal amount of $50,000 ,000 , for the purpose
of providing funds for the financing of the acquisition of such
capacity rights in the Project ; and
WHEREAS , the Authority also proposes to issue its
notes and other evidences of indebtedness (including renewal
notes) (the "Notes") for the purpose of temporary financing of
the acquisition of such capacity rights in the Project ; and
WHEREAS , from time to time , conditions in the
tax-exempt bond market may become favorable for refunding out-
standing bonds with a resulting savings in debt service costs
or other economic benefits for the Authority ; and
WHEREAS , pursuant to Section 6576 of the Government
Code of the State of California the Authority may issue from
time to time in one or more installments , its refunding bonds
(the "Refunding Bonds" and together with the Acquisition Bonds ,
the "Hoover Uprating Project Revenue Bonds" ) for the purpose
of redeeming or retiring Acquisition Revenue Bonds") for the
purpose of redeeming or retiring Acquisition Bonds or Refunding
Bonds theretofore issued , or other indebtedness theretofore issued
for the Project ; and
WHEREAS , the financing of the acquisition of capacity
rights in the Project includes the issuance of Refunding Bonds ;
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 "Project Participants") will purchase
from the Authority a percentage entitlement in the capacity of
the Project ; and
WHEREAS , the Hoover Uprating 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 payments to be made by the Project
Participants under the Power Sales Contracts ; and
WHEREAS , the Notes are to be payable from proceeds
of the Acquisition 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 Project 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 Hoover
Uprating Project Revenue Bonds is subject to the authorization
of such issuance by its Members pursuant to Ordinance; and
WHEREAS , neither the payment of principal of the Hoover
Uprating Project Revenue 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
acquisition of capacity rights in the Project by the Authority
is appropriate to assist the Project Participants to meet the
future power needs of their customers for electric energy ; 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 payable by the Project Participants under the Power
Sales Contracts or to realize other economic benefits relating
to the Project ; and
WHEREAS , this City Council proposes to authorize by
ordinance the issuance and sale by the Authority of its Notes ,
which are to be payable from proceeds of the Acquisition Bonds
authorized by this Ordinance 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 Project
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
Acquisition Bonds for the financing of the acquisition
of capacity rights in the Project , outstanding at any
one time in accordance with their terms in a maximum
aggregate principal amount of $50 , 000 , 000 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 extent required to complete the
financing of the acquisition of capacity rights in
the Project . The proceeds from the sale of the
Acquisition Bonds hereby authorized are to be used
for the financing of the acquisition of capacity rights
in 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
issued to finance the acquisition of capacity rights
in the Project , when due . 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 from revenues of the Authority from the acquisition
of capacity rights in the Project , including payments
received by the Authority from the Project Participants
under the Power Sales Contracts .
\r
2 . 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 outstanding at any one time in accordance with
their terms shall be an amount equal to the sum of
( i) $50 , 000 , 000 being the estimated maximum aggregate
principal amount of Acquisition Bonds issued and to
be issued for the acquisition of capacity rights in
the Project , plus (ii) the principal amount of any
additional Acquisition Bonds issued to complete the
financing of the acquisition of capacity rights in
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
acquisition of capacity rights in 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 Acquisition Bonds , Refunding Bonds
or other indebtedness 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 the Refunding Bonds and from revenues
of the Authority with respect to the Project , including
payments received by the Authority from the Project
Participants under the Power Sales Contracts .
3 . The authorization provided to the Authority
by Section 2 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 acquisition of
capacity rights in the Project will be realized there-
from.
4 . 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 .
5 . 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.
Nor
ADOPTED and APPROVED this 30th day of
September , 1985 .
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 . 2284 was
regularly introduced and placed upon its first reading at a
regular meeting of the City Council on the 16th day of
September , 1985 . That , thereafter , said Ordinance was duly
adopted and passed at a regular meeting of the City Council on
the 30th day of September , 1985 , by the following vote
to wit :
AYES : COUNCILMEN : CRUZ , COOK, CAMARENA, LATTA, MOSES
NOES : COUNCILMEN : NONE
ABSENT: COUNCILMEN: NONE
CITY CLERK