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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