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HomeMy WebLinkAboutCC RESO 16,222RESOLUTION NO.16,222 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT B TO THE JOINT POWERS AGREEMENT OF 1972 BETWEEN THE SOUTH BAY IRRIGATION DISTRICT AND THE CITY OF NATIONAL CITY CREATING THE SWEETWATER AUTHORITY WHEREAS, the City of National City and the South Bay Irrigation District formed the Sweetwater Authority under a Joint Powers Agreement in 1972 and in 1977 amended and readopted the agreement prior to the commencement of the operation of the water system acquired by South Bay Irrigation District from the California American Water Company; and WHEREAS, the water system was purchased from California American following the issuance of $22,500,000 in revenue bonds by the South Bay Irrigation District; and WHEREAS, the Irrigation District leases the water system for operation to the Sweetwater Authority and Sweetwater Authority's water customers pay all costs of operation of this system through their water bills, including repayment of South Bay Irrigation District's bond issue; and WHEREAS, Sweetwater Authority is now preparing to issue approximately $22,700,000 in revenue bonds to finance the construction of improvements to the water system, and to acquire the water system by paying off the balance remaining from the 1977 bond issue of the South Bay Irrigation District; and WHEREAS, the option to acquire the water system in this matter was included in the 1977 lease between South Bay Irrigation District and Sweetwater Authority; and WHEREAS, paying off the remaining debt of the South Bay Irrigation District will result in annual payments for principal and interest on the bonds of approximately $500,000 less than if new bonds were issued in addition to the existing debt; and WHEREAS, the South Bay Irrigation District and the City of National City are being asked to amend the Joint Powers Agree- ment to assure that the Joint Powers Agreement will continue throughout the period of time when bonds of Sweetwater Authority are outstanding, and to provide that the Authority will only sell or dispose of property when at least 5 of the 7 directors of the Authority approve such sale or disposal. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of National City that the Mayor is hereby authorized to execute Amendment B to the Joint Powers Agreement of 1972 between the South Bay Irrigation District and the City of National City creating the Sweetwater Authority. A copy of said Amendment is on file in the Office of the City Clerk. PASSED and ADOPTED this 10th day of April, 1990. George H. Waters, Mayor ATTEST: Lor Anne Peoples,�Clerk APPROVED AS TO FORM: lJ Ltar. George H. Eiser, III City Attorney