RES-2009-160RESOLUTION NO. 2009 -160
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM
AUTHORIZING THE AMENDMENT OF THE GAS SUPPLY CONTRACT,
DATED OCTOBER 3, 2007, BETWEEN THE SOUTHERN CALIFORNIA
PUBLIC POWER AUTHORITY AND THE CITY OF ANAHEIM AND
DELEGATING AUTHORITY TO CITY OFFICERS IN CONNECTION
THEREWITH
WHEREAS, Southern California Public Power Authority ("SCPPA'), is a joint
powers authority and public entity of the State of California duly organized and existing under
and by virtue of the provisions of Article 4, Chapter 5, Division 7, Title 1 of the California
Government Code (the "Act "), for the purpose, among others, of acquiring natural gas for the
benefit of the City of Anaheim (the "City ");
WHEREAS, SCPPA has previously issued its Gas Project Revenue Bonds
(Project No. 1), Series 2007A and Series 2007B (together, the "Bonds "), pursuant to the Trust
Indenture, dated as of October 1, 2007 (the "Indenture , '), between SCPPA and U.S. Bank
National Association, as trustee (the "Trustee "), for the purpose of paying the costs of acquisition
of natural gas to supply the City pursuant to a Prepaid Natural Gas Sales Agreement, dated
October 3, 2007 (the "Gas Purchase Agreement "), between SCPPA and J. Aron & Company (the
"Gas Supplier ");
WHEREAS, the City has previously entered into a Prepaid Natural Gas Program
Gas Supply Agreement (Project 1), dated as of October 3, 2007 (the "Gas Supply Contract "),
with SCPPA for the purpose of purchasing the natural gas acquired under the Gas Purchase
Agreement from SCPPA;
WHEREAS, Goldman Sachs & Co. owns, and proposes to transfer to or for the
account of SCPPA for surrender and cancellation, a portion of the Bonds designated Series
2007B in exchange for SCPPA's agreement with the Gas Supplier to reduce required gas
deliveries under the Gas Purchase Agreement on terms that will preserve and accelerate the
City's anticipated savings attributable to the reduced deliveries;
WHEREAS, the Gas Supplier and SCPPA are willing to change the delivery point
for gas purchased under the Gas Purchase Agreement and the Gas Supply Contract to the
citygate delivery point on the SoCal System, at the request of the City, for a substantial term of
years;
WHEREAS, corresponding reductions in required gas deliveries to the City and
the delivery point under the Gas Supply Contract would be effected by the execution and
delivery of the Amendment to the Prepaid Natural Gas Program, Project 1, Gas Supply
Agreement (City of Anaheim), a form of which has been provided to the City Council of the City
of Anaheim (the "Amendment to the Gas Supply Contract "); and
WHEREAS, the City Council of the City of Anaheim has determined that the
transaction described above is in the best interest of the City;
NOW THEREFORE BE IT RESOLVED by the City Council of the City of
Anaheim:
1. The recitals set forth above are true and correct and are incorporated herein by
reference.
2. In accordance with the City Charter and the laws of the State of California and the
City of Anaheim, the City Council hereby approves, in substantial form, the Amendment to the
Gas Supply Contract.
3. Each of the Public Utilities General Manager, the Public Utilities Assistant
General Manager - Finance and Administration, and the Public Utilities General Manager -
Electric Services is hereby authorized to execute and deliver the Amendment to the Gas Supply
Contract, with such changes, insertions, and deletions as shall be approved by the official
executing such amendment, including changes to the quantities of gas to be delivered in the next
few years to preserve the present value of anticipated savings despite changes in prevailing
interest rates prior to execution and delivery of the same (such approval to be conclusively
evidenced by such execution), and the City Clerk is hereby authorized to attest to such execution.
4. Each of the aforementioned officers is hereby authorized to take such further
actions as are necessary and appropriate to effectuate and carry out the intent and terms of this
Resolution, including, without limitation, execution and delivery of any other contracts,
agreements, notices, acknowledgements and other related documents as may be deemed
appropriate to effectuate the transaction described herein.
5. This Resolution shall become effective immediately.
This Resolution is approved and adopted at the regular meeting of the City
Council of the City of Anaheim this 13th day of October , 2009.
AYES: Mayor Pringle, Council Members Hernandez, Sidhu, Galloway, Kring
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
CITY ANAHEIM
MA OR OF THE CI OF NAHEIM
ATTEST
CITY CLERK OF THE CI OF ANAHEIM
CAO 74369 / 50237155.4 2