CC RESOLUTION 4655RESOLUTION NO. 4655
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO APPROVING
THE ISSUANCE OF THE CALIFORNIA MUNICIPAL FINANCE AUTHORITY
REVENUE BONDS (CHEVRON U.S.A. INC. PROJECT), SERIES 2010 IN AN
AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $250,000,000 FOR THE
PURPOSE OF FINANCING OR REFINANCING THE ACQUISITION,
CONSTRUCTION, RECONSTRUCTION AND /OR RENOVATION OF REFINERY
FACILITIES AND CERTAIN OTHER MATTERS RELATING THERETO
The City Council of the City of El Segundo resolves as follows:
SECTION 1: The City Council finds and declares as follows:
A, The California Municipal Finance Authority (the "Authority ") has been requested
by Chevron U.S.A. Inc., a Pennsylvania corporation (the "Corporation "), to issue
its bonds (the "Bonds ") to finance or refinance the acquisition, construction,
reconstruction and /or renovation of refinery facilities (the "Project ") located at 324
West El Segundo Boulevard in the City of El Segundo, California (the "City "), in the
County of Los Angeles, California (the "Project "). The Project will include, but may
not be limited to, capital expenditures for property relating to the production of
usable fuels through the process of thermal cracking, fluidized catalytic cracking
and hydro cracking of heavy crude oil. The initial owner, operator or manager of
the Project will be the Corporation.
B. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended
(the "Code "), the issuance of the Bonds by the Authority must be approved by the
City because the Project is located within the territorial limits of the City and
because the Authority will for federal income tax purposes be acting on behalf of
the City in the issuance of the Bonds;
C. The City Council of the City (the "City Council ") is the elected legislative body of
the City and is an applicable elected representative within the meaning of Section
147(f) of the Code authorized to approve the issuance of the Bonds;
D. The Authority has requested that the City Council approve the issuance of the
Bonds by the Authority in order to satisfy the public approval requirement of
Section 147(f) of the Code and the requirements of Section 4 of the Amended
and Restated Joint Exercise of Powers Agreement, dated as of January 1, 2004
(the "Agreement'), among certain local agencies, including the City;
E. Pursuant to Section 147(f) of the Code, the City Council has, following notice
duly given, held a public hearing regarding the issuance of the Bonds in one or
more series and at a single time or from time to time in accordance with a plan of
financing, and now desires to approve the issuance of the Bonds by the
Authority;
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F. Section 1401 of the American Recovery and Reinvestment Act of 2009 ( "ARRA ")
added Sections 14000 -1 through 14000 -3 to the Code, authorizing states,
counties and large municipalities to issue Recovery Zone Facility Bonds;
G. Recovery Zone Facility Bonds may be issued to finance "recovery zone property"
(as defined in Section 14000 -3 of the Code) within a recovery zone (a "Recovery
Zone ") (as defined in Section 14000 -1 of the Code);
H. The County, pursuant to a resolution adopted on January 26, 2010, designated
the entire geographic area of the County as a Recovery Zone within the meaning
of ARRA;
In order to enable the Authority to issue the Bonds as Recovery Zone Facility
Bonds on behalf of the City, the City has reviewed the findings of the Staff of the
County of Los Angeles Chief Executive Office, dated January 26, 2010, which
support the County designation of the entire County, including the City, as a
Recovery Zone.
SECTION 2: The above recitals are true and correct.
SECTION 3: The City Council hereby approves the issuance of the Bonds by the
Authority in one or more series and at a single time or from time to time in accordance
with a plan of financing. It is the purpose and intent of the City Council that this
resolution constitute approval of the issuance of the Bonds by the Authority, for the
purposes of (a) Section 147(f) of the Code by the applicable elected representative of
the governmental unit on behalf of whom the Bonds will be issued and of the
governmental unit having jurisdiction over the area in which the Project is located, in
accordance with said Section 147(f) and (b) Section 4 of the Agreement.
SECTION 4: The City hereby confirms the County's determination that the geographic
area of the County, including all such area included within the boundaries of the City, is
a Recovery Zone and, based on the County's determination; the City further specifically
designates the entire area included within its boundaries as a Recovery Zone.
SECTION 5: The officers of the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents
which they deem necessary or advisable in order to carry out, give effect to and comply
with the terms and intent of this resolution and the financing transaction approved
hereby.
SECTION 6: This resolution shall take effect immediately upon its adoption.
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PASSED AND ADOPTED by the City Council of the City of El Segundo
this 15th day of June, 2010.
Eric Busch, Mayor
ATTEST:
By:
C
Cindy ortesen
City Clerk
APPROVED AS TO FORM:
By:
Ka erger
Assistant City Attorney
C—,
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