ML13302A218
| ML13302A218 | |
| Person / Time | |
|---|---|
| Site: | San Onofre  |
| Issue date: | 06/16/1980 |
| From: | Baskin K Southern California Edison Co |
| To: | Schwencer A Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML13302A220 | List: |
| References | |
| NUDOCS 8006190522 | |
| Download: ML13302A218 (156) | |
Text
REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS)
ACCESSION NBR:8006190522 DOC.DATE: 80/06/16 NOTARIZED: NO DOCKET #
FACIL:50-361 San Onofre Nuclear Station, Unit 2, Southern Californ 05000361 50-362 San Onofre Nuclear Station, Unit 3, Southern Californ 05000362 AUTHNAME AUTHOR AFFILIATION 8ASKINKP.
Southern California Edison Co, RECIP,NAME RECIPIENT AFFILIATION SCHWENCERA,
.Licensing Branch 3
SUBJECT:
Forwards responses to Questions 1 through 9 re financial analysis contained in NRC 791221 ltrefinancial statements
& Annual Financial Repts 1979 for Cities of Anaheim &
-Riversid9,CA DISTRIBUTION CODE:
C0ICOPIES RECEIVEDLTR ENCL SIZE:1 f,
TITLE: License Application AMOTS (General Info)
NOTES:
RECIPIENT COPIES RECIPIENT COPIES ID CODE/NAME LTTR ENCL ID CODE/NAME LTTR ENCL ACTION:
AD t.tASA//A-1 0
BCC//tdWECE4 16 1
'1 LA LEE 17 1
1 PM Rad">..
05 1
1 INTERNAL: A/D CORE & CS 1
0 CORE PERF BR 1
0 EMERG PREP BR 1
0 HYD/GEO BR 19 1
1 I&E 09 2
2 NRC PDR 02 1
1 OELD 11 1
1 06 1
1 RAD ASSESS BR 1
1 N-01 1
1 RUTBERG 08 1
1 ZMKN 07 1
1 EXTERNAL: ACRS 13 3
3 LPDR 03 1
1 NSIC 04 1
1
$A/CL..
TT)
F/L5 7 PTER3sEA/
JUN 2 0 1980 X 54 Lr2, M 4 A/
3 OCE 2
19 Ape TOTAL NUMBER OF COPIES REQUIRED: LTTR 23 ENCL 19
Southern California Edison Company P. 0.
BOX 800 2244 WALNUT GROVE AVENUE ROSEMEAD.
CALIFORNIA 91770 K. P. BASKIN TELEPHONE MANAGER, NUCLEAR ENGINEERING (213) 572-1401 AND LICENSING June 16, 1981 Director of Nuclear Reactor Regulation Attention:
Mr. Albert Schwencer, Acting Branch Chief Licensing Projects Branch 3, DPM U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Gentlemen:
Subject:
Docket Nos. 50-361 and 50-362 San Onofre Nuclear Generating Station Units 2 and 3 Enclosed are seven copies of Responses to Financial Analysis Staff Questions 1 through 9, asked in the December 21, 1979 NRC letter to SCE, for the San Onofre Nuclear Generating Station, Units 2 and 3 Operating License Applications.
Due to the volume of the references in response to these NRC Financial Analysis Staff questions only seven copies of these references are provided. FSAR Section 1.8 will be revised in Amendment 19 to reflect this seven-copy information; however, no additional copies of the references will be provided with Amendment 19.
Direct distribution of these responses will be made in accordance with the service list provided by SCE's letter of October 29, 1979 to the Commission. An affidavit attesting to the fact that distribution has been completed will be provided within ten days of docketing.
If you have any questions or comments concerning this information, please contact me.
Very truly yours, Enclosure S0- 0 619O
SAN ONOFRE UNIT.NOS. 2 AND 3 The following financial information is required for each municipal applicant:
- 1. Provide a detailed statement of the projected sources of funds for each municipal applicant's capital contribution to the subject project showing both the timing and amounts that will be financed and advanced to Southern California Edison Company for the acquisition of the respective ownership interest of the facility. State in detail all other construction expenditures that are projected to be incurred during the acquisition period, including other capital requirements such as sinking fund requirements and redemptions of maturing bond issues.
Indicate the expected breakdown between internally-generated funds and external financing during the acquisition period in the meeting of total capital requirements. Provide a detailed explanation of the assumptions upon which the projected sources of funds statement is based.
Answer No. 1:
-It is expected that all necessary funds for acquisition of San Onofre Nuclear Generating Station (SONGS) by the Cities (Anaheim and Riverside) will be funded from revenue bonds.
The following was assumed for calculating the costs to the Cities:
Buy-in Date:
6/30/80 Bond Coupon Rate:
8%
Bond Discount:
3%
Reinvestment Rate:
8%
Commercial Operation Dates:
SONGS 2 -
10/01/81 SONGS 3 -
01/01/83 The Project cash flow used was provided by SCE as of 02/05/80.
The Project ownership shares are 1-.66% and 1.79% for Anaheim andRiverside, respectively.
Utilizing the above assumptions and "buy-in" costs as provided by SCE, the 'single bond issue amount for the City of Anaheim is $70,000,000 and $76,000,000 for Riverside.
All capital improvements for the Cities are to be financed from revenues as arevexisting debt service requirements. Principal payments on existing debt and capital improvements schedules are shown on Table 1 for each of the Cities.
TABLE 1
($000)
Year Ending June 30 1980 1981 1982 1983 1984 nAraheim Principal Payments on Existing.Debt
$4,000
$2,650
$ 450 475
$500 Projected Capital Improvements 3,672 5,415 5,790 5,844 5,187 Amount Paid fran Revenues (100%)
7,672
$8,065
$6,240
$6,319
$5,687 Riverside.....
Principal Paylants on Existing Debt:....
1,300
$,900
_,450
$ 450 455 Projected Capital Improvements 3,728 3,183 3,814 3,596 4 069 Amount Paid from Revenues (100%)
$5,028
$4,083
$4,264
$4,046
$4,524 11, 41
- 2. If any municipal applicant is to finance its ownership share with bonds, indicate the source of funds for payment of interest charges and principal. Indicate the legal authority by which each municipal applicant can issue bonds to provide financial.support for the subject project. Show the effect of any restrictions to both project and total financing ability stating the amount of financing that may be presently performed under such restrictions.
Answer No. 2:
Anaheim intends'to finance its ownership share with bonds..
The source of payment for interest charges and principal:will be the Electric Revenue Fund'of the City. 'Anaheim issues revenue bonds pursuant to Section 1210 of its Charter, a copy of which is attached hereto for your information. Anaheim has two restrictions pertaining to its total financing ability.
Section.1210 of the Charter of.Anaheim provides that no revenue bonds shall. be issued without the assent of. the majority of the voters voting upon the propositioni for issuing such revenue bonds at an election. In 1975, the voters.in Anaheim authorized the issuance of
$150,000,000 of Electric Revenue Bonds.
At
-the present time., $18,500,000 of the $150,000,000 issue have been issued, leaving 'an amount of
$131,500,000 of Electric Revenue Bonds authorized.but unissued. Anaheim would need approval of its electorate.to issue Electric
-Revenue Bonds in excess of $131, 500, 000. -The second restriction to Anaheim's total financing ability is contained in its Bond Covenants on Electric Revenue'Bonds heretofore issued by Anaheim.-
In order for Anaheim to issue arit bonds (i.e., those additional bonds which are on a parity with respect to revenues as outstanding bonds) the netrevenues of the electric utility for-the last-two fiscal "years prior to the issuance of such additional bonds. shall amount to.at least 1.25 times :the maximum annual debt service in any fiscal year thereafter on all indebtedness to be outstanding Simmediately
-subsequent to the incurring of o
such additional indebtedness. For the purpose of calculating the net revenues of :the electric utility, the revenues may be increased-
-- for earnings-arising from any increase in charges made for service which have become effective prior to the incurring of the additional
-indebtedness in an amount equal to 95% of the amount by which the gross revenues would have
Answer No. 2:
been increased if such increase in charges (Continued) had been in effect during all of the two completed fiscal years.
The effect of this coverage covenant upon the ability of Anaheim to issue additional Electric Revenue Bonds is to prohibit Anaheim from issuing Electric ReVenue.Bonds in excess of the sum of $390,0b0 00 if such Electric Revenue Bonds were to be issued as of February 1, 1980.
Riverside intends to finance its ownership
,share with bonds. The source of payment for interest charges and principal will be the Electric Revenue Fund of the City.
Riverside issues revenue bonds pursuant to Section 1306 of its Charter, a copy of which is attached
- 7.
here to f or yu nformation.. -,Riverside' has three restrictions pertaining to its total
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financing ability. Section 1306 of the Charter of Riverside provides that after the City Council has adopted a Resolution. authorizing the issuance of bonds, such.Resolution is subject to a referendum by the qualified electors of the City, if a-petition requesting submission of the Resolution to a vote is
.filed within. 30 days after adoption of the Resolution. Section-1306 also provides -that no bonds may be issued unless the amount of the equity of the electric utility as of the end of the fiscal year, derived from opera tion of the electric utility, equals at least 12% of-the aggregate of the bonds to be7 issued and the amount of bonds outstanding.
The third restriction to Riverside s total financing ability is contained in its.Bond Covenants on.Electric Revenue Bonds hereto fore issued by Riverside. In order for Ri side-to issue parity"bonds (
those additional bonds which are on a parity.
with respect -to revenues as outstanding bonds), the net operating revenues of the electric utility for the last 12 months prior to the issuance of such additional bonds shall amount to at least 1.50 times the maxiimui arinnual det service in any fisc a year -thereafter on all indebtedness to be outstandin immediately subsequent to the ncurrig of siuch additional indebtedness.
For the purpose of calculating the net revenues
- of the electric.utility, the net revenues of:
the electric utility may be increased for earnings arising from any increase in charges
Answer.No. 2:
made for service which have become effective (Continued) prior to the incurring of the additional indebtedness in an amount equal to 90% of.the amount by which the gross revenues would have been.increased if such increase in charges had been in effect during all of the 12-month period.
-- The net operating revenues may.alsobe increased from revenue-producing additions and improvements to the electric system equal to 90% of the
-amount estimated to be produced by such additions and -improvements for -the first.:36 month period in which such -addition or improvement was in service. _The effect of this coverage covenant upon the ability of. Riverside to issue additional-Electric Revenue Bonds is to prohibit Riverside,from issuing Electric
-RevenueBonds in excess of the sum of $130,000,000, if such Electric Revenue Bonds were t e
--.,issued"as of February 1, 1980.
References
- a. Anaheim City harter, Sectioni 1210, "Revenue Bonds Riverside City Charter, Section 1306, "Creation and refunding of bonded indebtedness of the city pertaining to public. utiliti;es owned.and operated by the city."
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- 3. Describe the nature, amount, ratings and success of each municipal applicant's most recent Revenue and General Obligation Bond sales.
Indicate the current total outstanding indebtedness in each category for each entity.
Answer No. 3:
In response to Question 5, we have attached copies of the. Annual Reports of -the Public Utilities Department of the. City of Anaheim and of the City of Anaheim :as a whole, including the Public Utilities Department.
Insofar-as -the most recent Electric Revenue Bonds are concerned, the information requested with respect. to the -nature, amount, ratings and success of those bond sales is contained on page 24 of the Annual Report of the Public Utilities Department of the City. With respect to the General Obligation Bonds of the City, a description of the general long-term debt of the City is-provided on page 46 of the Annual Financial Report of the City for the period ending June 30, 1979.
In response to Question 5, we have -attached a copy of Riverside's Annual Financial.Report for the period ending June 30, 1979.
At pages 24 through'.30 of that Annual Financial Report, there is information concerning the nature, amount, ratings.and success of Riverside's most recent Revenue and General Obligation Bond sales.
Ref eren'ces.
a.City f Anaheim Public Utilities Department Annual eport tear Ended June 30, 1979.
b Cit of Anaheim, Anhual Financial Report, June30, 1979.
c City of Riverside, California, Anual Financial Report For Fiscal Year Ended June 30, 1979 9;j_~
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- 4. Provide copies of the Official Statement for the most recent bond issue. Provide copies of the Preliminary Statement for any pending security issue.
Answer No. 4:
Attached.hereto is a copy of the-Official Statement pertaining to a subordinated bond issue of $12.5 million which is the most recent issue of Electric Revenue Bonds sold by -the City of Anaheim.
In connection with s proposed financing of San Onofre Nuclear Generating Station Utits No. 2and 3, Anaheim dLd propose a $42 million issue which was,
-,not sold because of a question concerning Investment TaxCredit which has tiow been resolved. -A copy of the Official Statement pertaining to that proposed bond issue is attached as Appendix H to the Application t-for Permission -tot4Tiansfer Ei Ownership
~---nteresto Anaheim :and Riverside There areo pending securi issues Attached hereto is a copy of the Official Statement pertaining to a subordinated issueof $2.5 million whlch is the most recent issef Eetric
- Revenue Bon ds
-oId by the -City of.-River side.
n :connection with its roposed financing of San Onofre -Nulear_
Generating Station Units No..2 and.3, Riverside did propose a $43 million issue Which was not--sold.because of quetion epceernit gn=vestment xT xcreditf7whi-i has now been-resolved.
copy of the Official Statement pertainiig to that proposed bord is-sue 1attached.as Ap ed C
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ica n.forf-ermis s idn t Transfer, an---.,
ersh Itterest to Anaheim an Riverside ere are no,pend ing security issue.
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$12 500 000.Electric Revenue BonsSecond sue ssue o
1aaele date Jun
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- 5. Provide copies of the most recent annual financial report and the most recent interim financial statements for each municipal applicant. Continue to submit copies of the
...,.annual financial report for each year thereafter as required by 10 CFR Part 50.71 (b).
Answer No-5:
AAtached hereto aiecopies of the Annat Report of.the City of-Anaheimfor.
the period
-- ending June 30,:,1979 for both the Public separate Annual Report for all of the de partments in the City, including the Public Utilities Department.
In addition, a copy of a Financial Report for the period ending i Aprii I Una{died s as attached s_:...Attached hereto is a copy -of the Annual Financial Report for'the City-of Riverside for the period ending June. 30, 19 79.
,There are no Interim Financial Reports which have.
been preparedby the Citr of Riverside for the period after June 30, 1979 nReferences
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- a. Cit of Anaheim Public Utilities Department Annual'.
Report Year Ended June 30 1979.30,...
nhem Ana FinncalReor, un 30 9 7.9 i1U,'
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-<---t oAnaheim -Eectricl.*Utilit tFn 'aac~Se Ten Months Ended Api 3,1980, (Unaudited)_,,:.,..,
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.C~fRiverside,'airiatnuaFnnclReo,
-. :,For FTiscal -Year -Ended -June -3.0,
-41979,;
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- 6. Is each Participant's percentage ownership share in the facility equal to its percentage entitlement in the electrical capacity and output of the plant?
If not, explain the difference(s and any resultant effect on any Participant's obligation to provide its share of design, construction and operating costs.
Answer No. 6:
Anaheim's percentage ownership share in
--Units -2 and 3 in San Onofre Nuclear Generating Station is 1.66%.
Riverside's ownership share in Units 2 and 3 in San Onofre Nuclear Generating Station is 1.79%.. Their entitlement to electrical capacity in output of those' two units is equal to their percentage ownership share. Units 2 and 3 will, however, share certain facilities (common facilities) with
'Unit a t San' Onofre Nuclear -Generating
- Station,
_inwhich Anaheim.and Riverside will have no ownership interest.
The parties have dealt with this problem by reducing Anaheim.s and Riverside's ownership shares in common facilities to reflect that their rights and obligations with respect to common-facilities are reduced in percentage ownership.
The fact that Anaheim and Riverside own different percentages of the common facilities than they own of Units 2 and 3. of San Onofre Nuclear Generating Statioh should have no effect upon Anaheim"s and Riverside's obligation to provide their shar of design,costruction and operating costs.
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- 7. (Part I)
Describe the rate-setting authority of each municipal applicant and how that authority may be used to insure the satisfaction of financial obligations related to both capital and operating costs of the facility. Describe
-any restrictions on such rate-setting authority and how this may affect the applicant's ability to satisfy its obligations to -the Project.
7 Answer No. 7:
Section 1221 of the-Charter of the City of (Part I)
Anaheim provides that'the City Council shall establish rates,- rules -and -regulations for
-the water and electric utilities.
This Section further provides that the -rates,shall be based upon cost of service and shall be sufficient to pay:
(a) for operations-,and maintenance of the system; (b) for payment of. principal and interest on debt;.(c) for creation and maintenance of financial reserves adequate to assure debt service on bonds outstanding;
- (d) for capital construction
-for new facilities and improvement of existing facilities, or maintenance of a
- reserve -fund for that purpose. - The Charter of the City of Anaheim requires rates to be established in-amounts adequate to pay for both capital and operating costs of any ilities which are part -of Anaheim's electric utility.' Anaheim's -ownership share -in San Onofre Nuclear Generating Station Units i2 and 3 would -be a part of the Anaheim electrical
--utility.
Thus; Anaheimbelieves that its financial position.with respect.to payment for the capital and operating costs of, 4
San Onofre Nuclear Generating Station Units 2 and 3-is sound and that th financial obligations of the City with respect to thos matters may be met.
Anaheim is n
aware of Sanyrestrictions on its rate-setting authority which might interfere with its bility to satisfy its obligations to pay it costs associated with San Onofre Nuclear
_Generating Station Units 2 and 3.
on1"t of the arte of the.
-f Riverside provides that the Public.
_6Utilities 3ard of the City:of Riversi e has the power to establish rates for the e
tki telecti tility owhed and operated Sthe City subject to approval of the City Council.
Section 1304 of the Charter of the City of Riverside -provides that the
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Answer No. 7:
revenues of the electrical utility shall (Part I) be.kept separate and apart from all other (Continued) monies of -the City in the appropriate revenue fund and shall be used for the purposes of paying operating and maintenance
-expenses of the.utility, for the payment of principal and interest on revenue bonds issued by the City of Riverside to finance additions -to its electric utility and for capital expenditures of -the electric utility.
The Public Utilities Board thus
--,--is empowered.to set,,electric rates to recover capital and operating costs in its electric rates sufficient to pay for its obligations incurred in acquisition 0-.is i
ownership.interest in San 3nofre Nuclear.Generating Station Units 2 and 3.
Riverside is
-not aware-of anyrestriction on its ability to satisfy its obligations to acquire its ownership interest in San Onofre Nuclear Generating Station Units 2
and 3.
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- 7. (Part II)
Describe the nature and amount. of each municipal applicant's most recent rate relief action and the anticipated effects in revenues.
Indicate the nature and amount of any pending rate relief action(s).
Answer No. 7:
The City of Anaheim's most recent rate relief (Part II) action was a decrease to both.the lifeline and non-lifeline energy cost adjustment billing ftctor (-ECABF) on May 1, 1980, due to a decrease in-the.wholesale fuel cost
-adjustment amount paid by Anaheim to. Edison for power.sold to Anaheim. The.-amount of the decrease.was from.02506 cents per KWH to
.01485 cents per KWH.
The City of Riverside's latest electric rate relief became effective on August 7, 1979.
An increase was necessary to offset a 4.7%
$1,500,000) rate increase by Southern California Edison Company to the City.
The rate increase varied.between the different rate classes, -and within rate classes, depending upon :demand and usage..
The overall increase -is anticipated to -generate sufficient revenue to offset the $1,500,000 increase-from Edison.
The commercial rates increased between 2.-2%
ad 4.'2%,
depending upon usage.
Industrial
-rates.increased.about 2.4%, again depending upon demand and usage. The rates for.
street lights, outdoor lighting and agricultural pumping were all increased by about 4%.
The traffic control rate was increased by 6.5% and wind machines by 3%.
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- 8. Indicate the total estimated cost of the units including nuclear production plant costs; transmission, distribution and general plant costs; and the nuclear fuel inventory
-cost for the first core.
Answer No. 8:
The estimated capital cost of the Project is
$48,140,000 for Anaheim and $51,910,000 for Riverside, excluding any nuclear fuel. costs.
The nuclear fuelinventory costs are tabulated below for the first cores of Units 2 and 3.
Future inventory -costs were calculated using an annual interest rate of 8%.
em Riverside Thventory Cost to 01/01/80
$191,279 Estimated Inventory Cost to C.O.D......
68,904 74,299 W.
Total Estimated Inventory b~ ~'-~
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$246,291
$265,578
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- 9. What is the estimated dollar amount that will be payable by the applicant at the.date of. closing the sale? What is the total estimated dollar amount that the applicant will pay to Southern California Edison after closing the sale and through completion of the unit?
Answer NO. 9:
Assuming a closing of the sale of 06/30/80, the following estimated -amounts wi 1 be paid:
Anaheim
'Riverside
($000)
$000)
Plant Construction Costs
$31,261
$33,706 Nuclear Fuel Under Lease 2,971 3,203 Interest 4,979 5,
368 Ttal
$000)
$39,211
$42,277 he remaining construction and nuclear fuel
-costs to be paid by the Cities, excluding any associated interest, are $9,929,000 by "Anaheim and $10,706,000 by Riverside.
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REFERENCES TO RESPONSES TO FINANCIAL ANALYSIS STAFF QUESTIONS ONE THROUGH NINE CITY OF ANAHEIM
- 1. "City Charter, Section 1210. Revenue Bonds"
- 2. Official Statement, $12,500,000 Electric Revenue Bonds, Second Issue (Subordinated) of 1976, Sale Date June 8, 1976
- 3. Annual Financial Report, June 30, 1976
- 4. Public Utilities Department, Annual Report, Year Ended June 30, 1979
- 5. Electric Utility Fund Balance Sheet -
Ten Months Ended April 30, 1980 (Unaudited)
CITY OF RIVERSIDE
- 1. "City Charter, Section 1306. Creation and Refunding of Bonded Indebtedness of the City Pertaining to Public Utilities Owned and Operated by the City."
- 2. Official Statement, $2,500,000 Electric Revenue Bonds Issue (Subordinated) of 1977, Sale Date - April 12, 1977
- 3. Annual Financial Report, For Fiscal Year Ended June 30, 1979
CHARTER 1210 CITY OF ANAHEIM CITY CHARTER Section 1210.
REVENUE BONDS Bonds which are payable only out of such revenues as may be specified in such bonds may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds.
Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City.
No such bonds payable out of revenues shall be issued without the assent of a majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the qualified electors of the City.
It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate convenants.
Money placed in any such special fund for the payment of principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special fund was established and shall be deemed segregated from all other funds of the City and reserved exclusively for the purpose for which such special fund was established until the purpose of its establishment shall have been fully accomplished.
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CITY OF RIVERSIDE CITY CHARTER (Pages C47 through C48-7)
Sec. 1306.
Creation and refunding of bonded indebtedness of the city pertaining to public utilities owned and operated by the city.
(a) From and after the effective date of this section 1306 no general obligation bonds of the city for which the city is obligated to levy ad valorem taxes upon all taxable property within the city subject to taxation, nor any bonds of the city other than bonds issued under this section
- 1306, shall be issued or sold for the purposes of the utilities of the city under the management and control of the department of public utilities Bonds issued.by the city under the provisions of this section 1306 shall not constitute or evidence indebtedness of the city but shall constitute and evidence only indebtedness of the utility payable in the manner provided in this section 1306, but not otherwise.
(b) The city shall have the power to borrow money from time to time for the purpose of acquiring, constructing, reconstructing, replacing, expending or improving works for supplying the city and its inhabitants with utility services, and to issue and to sell revenue bonds to evidence the indebtedness created by such borrowing. The city shall also have the power to refund from time to
- time, whether at or prior to
- maturity, any outstanding indebtedness evidenced by such revenue bonds and to issue, and to sell or exchange bonds to refund such indebtedness. Refunding bonds which are to be sold may be issued and sold at such time in advance of the time at which the bonds to be redeemed or paid out of the proceeds of such refunding bonds which are to be so redeemed or paid as the city may determine.
(c) All bonds issued by the city pursuant to this section.1306 shall be, and shall recite upon their face that they are payable both as to principal and interest and as to any premiums upon the redemption of any thereof prior to maturity out of the revenue fund pertaining to the municipal utility on account of which the indebtedness evidenced by such bonds was created, and not out of any other fund or moneys of the city.
This shall not, however, preclude payment of principal, interest or premiums through appropriate reserve funds or special trust accounts, or out of sums received as premiums or accrued interest on the sale of refunding bonds issued for that purpose, or the payment out of the proceeds of any bonds of the whole or a part of the interest accruing on said bonds during the period of the performance of work to be paid for out of the
1306 RIVERSIDE CITY 1306 proceeds, and for the first six months thereafter, or the payment by the purchasers of any such bonds, or by an entity, public or private, other than the city, in any case where any such purchaser or entity may be guaranteed such payment.
(d) Whenever the board shall propose that the city exercise its power to borrow money or refund indebtedness, pursuant to this section 1306, it shall recommend to the council the authorization of the issuance of bonds for such purpose, which recommendation shall specify:
(1) The purpose,for which the proposed bonds are to be issued; (2) The maximum principal amount of the bonds to be issued; (3) The maximum term, not to exceed forty (40) years, for which any of said bonds are to run; (4) The maximum interest rate on such bonds; (5) The maximum premium, if any, to be,payable on the redemption of any such bonds to maturity; (6) The limits within which, in connection with the issuance of such bonds, restrictions may be imposed upon the incurring of additional indebtedness payable out of the revenue fund from which such bonds are to be payable.
Certified copies of such recommendations shall be transmitted to the offices of the mayor, of the city manager, and of the city
- clerk, and the city clerk shall forthwith present the said recommendation to the council.
At any time within such period as may be specified in such recommendation, which shall be not less than thirty (30) days from and after the receipt of such certified copies at such offices, respectively, the council, by majority vote, shall approve or disapprove such recommendation.
Concurrent with the approval of such recommendation, the council shall adopt a resolution authorizing the issuance of revenue bonds in accordance with the recommendations of the Board of Public Utilities. Anything in this subsection of section 1306 notwithstanding, in the cases of refunding bonds, the resolution of the council pursuant to this subsection shall take effect upon its adoption by the council, subject only to the right of referendum herein provided.
Upon any such resolution taking effect subject to the right of referendum, the city clerk shall cause the same to be published by at least one insertion in some daily newspaper published and of general circulation in the City of Riverside.
At any time within thirty (30) days of such application, a referendary petition, demanding the submission of such resolution to a vote of the qualified electors of the city for their assent to the issuance of the proposed bonds, may be filed with the city clerk.
Except as in this section 1306 otherwise expressly provided, all of the provisions 1306 CHARTER 1306 of this Charter related to referendum with respect to ordinances shall apply to any referendum under the provisions of this subsection. If no such referendary petition is presented within the aforesaid period of thirty (30)
- days, then upon the expiration of said period, or if the proposition of issuing the bonds specified in the resolution shall be assented to by the voters, the said resolution shall take full and final effect, and the city may proceed in accordance with the provisions of this section 1306 and issue bonds within the terms of said resolution.
(e) Whenever the city shall exercise the power to borrow money, or to refund indebtedness, the board shall determine the amount or amounts required for the purposes for which the money is to be borrowed or required for such refunding.
The city council, upon recommendation of the board, may authorize the issuance of bonds in the amount determined provided that no bonds so authorized shall be issued unless (1) the amount of the equity (including surplus arising from contributions in aid of construction) of the water utility for the purpose of which such bonds are to be issued, as of the end of the last fiscal year, which ended not less than four months prior to the authorization of the issuance of such bonds derived from the operation of the water utility to which pertains the revenue fund out of which the bonds are to be payable, equals at least 66-2/3% of the aggregate of the amount of bonds to be so issued and the amount of revenue bonds outstanding or (2) the amount of the equity (including surplus arising from contributions in aid of construction) of the electric utility for the purpose of which such bonds are to be issued, as of the end of the last fiscal year, which ended not less than four months prior to the authorization of the issuance of such bonds derived from the operation of the electric utility to which pertains the revenue fund out of which the bonds are to be payable, equals at least 12% of the aggregate of the amount of bonds to be so issued and the amount of revenue bonds outstanding.
The limitation described above shall not be applicable to the issuance of any refunding bonds, and the amount of any issue of such refunding bonds may equal, but shall not exceed, the amount required for the payment for redemption of the 'bonds to be refunded thereby, including the
- premiums, if
- any, due upon such redemption, but excluding any interest due upon such redemption.
Any bond for the payment and discharge of which, upon maturity or upon redemption prior to maturity, provision has been made through the setting apart in a reserve fund or special trust account to insure the payment thereof of moneys sufficient for the purpose, or through the irrevocable segregation for the purpose, in some 1306 RIVERSIDE CITY 1306 sinking fund or other fund or trust account of moneys sufficient therefor, shall be deemed to be no longer outstanding within the meaning of any provision of this section 1306.
(f) Each issue of bonds issued pursuant to this section 1306 other than refunding
- bonds, shall conform to the following requirements:
(1) Such bonds shall be serial bonds or sinking fund bonds, or a combination of serial and sinking fund bonds; (2) Provision shall be made for the retirement of such bonds through annual payments on principal, and such payments shall begin not more than five (5) years, and end not more than forty (40) years after the date of such bonds; (3)
The amounts of such annual payments of principal shall be such that no such annual payment which shall become due five (5) years or more, after the date of such bonds, shall be less than 50%
of any subsequent such annual payment; (4) All bonds maturing after ten (10) years from their date shall be subject to redemption prior to maturity; (5)Said bonds shall be sold only by competitive bidding at public sale following such notice as the council by resolution or order may prescribe;
- provided, however, that if no bid or no satisfactory bid is received pursuant to such notice, the council may reject all bids received, if
- any, and may, within sixty days thereafter, sell such bonds at public or private sale; provided, further, that the provisions of this subsection shall not apply to the exchange of any refunding bonds for outstanding bonds.
Any such revenue bonds may be sold at a fixed rate of interest or the bidders may be invited to state the rate or rates of interest at which they will purchase said bonds, but no rate of interest on any of the bonds shall exceed the maximum rate stated in the recommendation of the board. If the bidders are invited to state the interest rate or
- rates, then upon the acceptance of a bid the council shall by resolution or order, which shall not be subject to referendum, fix such interest rate or rates as have been bid by the successful bidder as the rate or rates of interest on the bonds sold.
(6) Said bonds shall be sold for not less than par and accrued interest to date of delivery.
The proceeds from the sale (except premium and accrued interest which shall be paid into the bond service or other fund designated or established for the payment of principal and interest of the bonds) shall be paid into the construction fund designated by the resolution providing for issuance of such bonds and shall be applied exclusively to the objects and purposes set forth in such resolution; provided, however,
1306 CHARTER 1306 (a) that the revenue fund of the utility involved from which the bonds are payable may be reimbursed from such proceeds for expenditures for purposes for which the bonds were issued made from such fund after the issuance of the bonds had been recommended by the board; (b) that said proceeds may be used for the payment of interest. on said bonds during the period of acquisition and construction and for the first six months thereafter; and (c) that when the objects and purposes for which the bonds are issued have been accomplished any remaining unexpended funds derived from the sale of said bonds shall be used for the payment of principal and interest of said revenue bonds or for the redemption of any callable bonds thereof.
(g) The city shall have the power, limited by the express provisions of this section 1306, in its discretion, to provide, in connection with any issue of such bonds:
(1) The denomination or denominations of the bonds, the medium of payment thereof, the place or places of payment thereof, which may be within or without the State of California, the form of said bonds (including recitals of regularity) and of interest coupons pertaining thereto, the form, denomination and conditions of any temporary bonds or interim certificates, and the manual (one signature must be.manual) and facsimile signatures to be affixed to said bonds (definitive or temporary) or interim certificates, and the facsimile signature to be affixed to interest coupons.
The recitals of regularity of proceedings in any revenue bond issued and sold under this section shall be conclusive evidence of compliance with the provisions of this section and of the validity of such-bonds, and no bona fide purchaser of any such bond containing the recital permitted by this section shall be required to see to the existence of any fact or to the performance of any condition or to the taking of any proceeding required.
.(2) Being negotiable or non-negotiable.
(3) Being payable to bearer or only to the registered holder, either as to principal alone, or as to both principal and interest, or being fully registered non-coupon bonds; (4) In any resolution providing for the issuance of revenue bonds under this section, the council may fix the terms and conditions thereof (including covenants) and may in any article, section, sentence or clause thereof make such provision (including covenant) as it may deem necessary or desirable to facilitate the issuance and sale of the bonds or for the protection or security of the holders thereof, including without affecting the generality of the foregoing, any or all of the following:
1306 RIVERSIDE CITY 1306 (a) The terms and conditions under which said bonds or any part thereof may be paid and redeemed before maturity (including the premiums, if
- any, payable upon bonds redeemed prior to maturity),
exchanged, registered, transferred or negotiated; (b) Covenants or provisions relating to rates; (c) The collection, deposit and safekeeping of the revenues and the permissible uses thereof; (d) The special fund or funds to be established and maintained for the payment of principal and interest of the bonds; including reserve, sinking, bond service, redemption and trust funds; the permissible investments of moneys in said
- funds, or any thereof; the accounts and records to be kept, audits thereof and examination thereof by bondholders and others; (e) Prohibition against or limitations upon the sale, lease or other disposition or transfer of the utility involved or any substantial part thereof, and the use of any funds derived from any sale, lease or other disposition or transfer permitted under the terms of said resolution; (f)
Limitations upon the issuance of any additional bonds payable out of the revenue fund involved, but no bond shall be issued pursuant to this section or under any other provisions of this Charter or any other law having any priority in payment of principal or interest out of such fund or out of any revenues payable into such fund over any revenue bonds theretofore issued and payable out of said fund; (g)
Any other provision (including covenant) valid under the-Constitution of the State of California and the United States of America.
Any resolution providing for the issuance of any revenue bonds under this section and all other resolutions or orders in the proceedings for the issuance of said bonds shall constitute a contract with the holders of the bonds and may be enforced by any holder by mandamus, injunction or any applicable legal action, suit, proceeding or other remedy.
(h) The city shall also have the power to borrow money from time to time, on a short-term basis for any or all of the purposes specified in this section 1306.
The board shall recommend to the city council the amount or amounts required for such purposes and upon approval, the council shall find and determine that the public interest and necessity require the exercise of this power of short-term borrowing.
1306 CHARTER 1306 All bonds, notes or other evidences of indebtedness issued under the authority of this subsection shall contain upon their face a recital that they are so issued and shall be payable not to exceed five (5) years from their date.
No amount borrowed under the authority of this subsection which when added to the amount of all other bonds, notes or evidences of indebtedness issued under this subsection and then outstanding, shall exceed 50% of the gross operating revenues from the utility on account of which it is borrowed during the preceding fiscal year.
All of the provisions of this subsection, not inconsistent with the terms of this section 1306 and not specifically made inapplicable thereto, shall apply to all notes or other evidenses of indebtedness issued under the provisions of this subsection.
(i) The term 'bonds' as used in this section 1306 shall include notes and other evidences of indebtedness.
No bond shall be deemed to be outstanding and unpaid within the meaning of this section 1306 if moneys for the purpose of paying the same or redeeming the same prior to maturity and sufficient therefor have been irrevocably set aside in a bond service fund, sinking fund, redemption fund, or other trust fund created to insure the payment or redemption thereof.
Unless otherwise clearly indicated by the context, all of the provisions of this section 1306 shall be understood as relating only to bonds issued under this section 1306.
This section 1306 is complete authority for the issuance of bonds thereunder, and no action or proceeding not required by this section shall be necessary for the valid authorization and issuance of such bonds.
To the extent that any provision of any resolution authorizing the issuance of revenue bonds pursuant to this section 1306 or any provision of any resolution or order pertaining to such revenue bonds adopted pursuant to this section is inconsistent with any of the provisions of any other section of this Charter the provisions of such resolution or order shall control so long as any of the bonds or coupons to which the same pertain are outstanding and unpaid.
The validity of bonds reciting that they have been issued pursuant to this section 1306 shall not be affected by any provision or limitation contained in any other section or sections of this Charter.
1306 RIVERSIDE CITY 1306 The Council is authorized to take any and all steps necessary. or convenient for the issuance and sale of revenue bonds under this section and for the payment,or redemption thereof.
This section and every part thereof shall be liberally construed to promote the objects thereof and to carry out its intents and purposes.
If the application of any subsection, subdivision, paragraph,
- sentence, clause or word of this section to any person or circumstance is held invalid, the application of such subsection, subdivision, paragraph, sentence, clause or word to any other person or in any other circumstance shall not be affected thereby. If any part of this section is held invalid the reaminder of the section shall remain in full force and effect.
(As amended July 2, 1974 and July 16,
- 1968, and as added February 21, 1966).
V-11 itj inofA hc Electric Utility Fund Balance Sheet 7-,
pv-,s Z
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/99o ASSETS Utility plant:
Transmission Distribution........................................................
7 3
General............................................................
, 708 Construction work in progress.........................................
7,6 Less -
accumulated depreciation...'..I...
.9.
-,7_70 Restricted cash and investments
.o Current assets:
Cash and investments Customer and other accounts receivable, less allowance for doubtful accounts s
Accrued interest receivable z...........
Z 8 Materials and supplies, at average cost.........
Prepayments...
2o,3/ 9 Other assets:
Prepad electric power Unamortized project costs 3 Z Unamortized debt expenses......
Z, 317 Total assets......
L.
EQUITY, LIABILITIES AND OTHER CREDITS Equity:
Fund balance transferred.......................................
Retained earnings
/ 7L/
Reaiedeanigs.........................................
.. 72.
Total equity............................
36,,371 Revenue bonds, less current portion Total capitalization.................................
O,24 Current liabilities (payable from restricted assets):
Current portion of revenue bonds..............
Accrued interest on bonds Current liabilities (payable from current assets):.
Current portion of revenue bonds.......................................
,90 Accounts payable and accrued expenses..................................
/2 O 9 Customer deposits.................................................
Z/9_9_
Total current liabilities......
/ t 7,1,"
Contributions in aid of construction.
, 9; Total equit y, liabilitics and other credits...................
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7 Other operating revenues Total operating revenues Operating expenses:
Cost of purchased power............................
Other operations....
M aintenance...............................................................
/ 0o D epreciation................................................
J. 6,5 Amortization of project costs
_6 8
Total operating expenses................................................
66, 007 Operating income...................................................
Other income (expense):
Interest income..........................................................
Interest expense, including amortization of debt expenses........................
Net income.......................................................
- 9. vc 2 Statement of Changes in Retained Earnings Balance at beginning of year.....................................................
Net income for the year................
YO z Transfer to the general fund of the City......
2, 9V 5'>
Balance at end of year i 7 1
~2, OFFICIAL STATEMENT CTrY oF IVERSI NOTICE THE ATTACHED FILES ARE OFFICIALCRECORDS OF THE DIVISION OF DOCUMENT CONTROL.
TkoEY HAVE BEEN CHARGED TO YOU FOR A LIMITED flIME PERIOD AND
$2,500,000 MUST BE RETURNED TO THE RECORDS FACILITY BRANCH 016.
PLEASE DO NOT SEND DOCUMENTS CHARGED OUT THROUGH THE MAIL. REMOVAL OF ANY PAGE(S) FROM DOCUMENT FOR REPRODUCTION MUST BE REFERRED TO FILE PERSONNEL.
ssue (Subordinated) of 1977 DEADINE ETUN DAE
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CITY OF RIVERSIDE, CALIFORNIA CITY COUNCIL BEN H. LEWIS, Mayor ARDEN ANDERSON DON LORENZI SAM DIGATI JIM-MANNING ERIC HALEY ERNEST PINTOR ROSANNA SCOTT BOARD OF PUBLIC UTILITIES LESTER G. HEUSTIS, Chairman EDWARD J. CAMPBELL WILLIAM C. EVANS TONY M. ESQUIBEL CHARLES M. ROSS CITY OFFICIALS WILLIAM F. CORNETT, JR., City Manager ALICE HARE, City Clerk DANIEL R. O'CONNOR, Finance Director HAROLD E. BREWER, City Treasurer JOHN WOODHEAD, City Attorney EVERETT C. ROSS, Public Utilities Director BOND COUNSEL O'MELVENY & MYERS, Los Angeles, California FINANCIAL CONSULTANTS WAINWRIGHT & RAMSEY INC.
7325 Woodrow Wilson Drive, Los Angeles, California 90046 58 Sutter Street, San Francisco, California 94104 70 Pine Street, New York, New York 10005 The date of this Official Statement is March 22, 1977
TABLE OF CONTENTS Page OFFICIAL STATEMENT 5
THE BONDS Amounts and Maturities..
6 Authorization................................................
6 Purpose of the Bonds --
6 Bond Security............................................................
6 Flow of Funds--.----. --..-.--..---.---.-.-.---..---........--
7 Rate Covenant.--..---
7 Limits on Additional Debt 8
F iscal Y ear...........................
8 Tax Exemption --------------------------------------------------------
8 Legal Opinion -----
9 Legality for Investments 9
Additional Sales.......
9 THE PUBLIC UTILITIES DEPARTMENT H istory of the Departm ent...................
9 Jurisdiction of the Department 9
Administration of the Department--------------.
9 The Board of Public Utilities........................................--------------............................................
10 MEMBERS OF THE BOARD OF PUBLIC UTILITIES Public Utilities Director...............
10 THE SYSTEM Inception of the System...--.------.-.---
11 Service Area.--- -.....-------..-....-.................
11 Source of Power...----- -.--
-11 Existing Facilities------.-
12 ELECTRIC RATES Area Rate Comparisons ----
14 City of Riverside Rate Schedules..............................---------------------------------
14 Billing and Collecting Procedures----------------------------------........
15 OPERATIONS Sales and Revenue.------...........-.....-........-15 Comparative Statement of Actual Revenues and Expenses, Operating Ratios and Debt Service Coverage 1961/62 - 1975/76....................................
16 Electric System Growth Statistics1.............................................-.--.---.---.-.-.
17 Top Ten Electric Customers..........--
18 D EB T.....
19 Debt Service Schedule for Outstanding and Issue of 1977 Bonds---------------------20 2
Page CAPITAL PLANNING Capital linprovements 1961/62 - 1975/76......................
........................ 21 Capital Improvement Program 1976/77 -1981/82.....................................................................
22 FORMAL FINANCIAL STATEMENTS OF THE ELECTRIC DIVISION Condensed Comparative Statement of Revenue and Expense for the years ended June 30, 1971 through 1976.......
23 Comparative Statement of Revenue and Expense for the Six Months Ending D ecem ber 31, 1976..........
Statement of Revenue and Expense for the Year Ended June 30, 1976................................
25 Balance Sheet, June 30, 1976....----------------.........................
26 Analysis of Changes in Retained Earnings for the Year Ended June 30, 1976...................
28 Statement of Changes in Assets Restricted for Debt Service for Year Ended June 30, 1976........
28 CITY OF RIVERSIDE -
ECONOMIC AND FINANCIAL DATA Location and General Background....................
2 Climate.-----------------------------------------------------.----------29 A rea and P opulation............
Government-------------------------------------.------------------------30 Housing and Income.......................................................31 Commercial 32 Industry................................................................32 Transportation 32 Municipal Services and Facilities ----------------------------
33 Non-Municipal Utilities-----------------------------------------------------34...........................
Community Facilities.......................................................
34 E d u c a t i o na i o n --------------
........... 3 5 Primary and Secondary Schools29----------------
35 Direct and Overlapping Debt.................................................
36 Assessed Value, Tax Collections and Tax Rates-----------------------------------38 C a p i a l I p r o v m e n s..............................................................
3 2 General Revenues and Expenditures. ---------
Riverside County ilities................................4........................................................4------
THE BOND RESOLUTION........................---------------App.
3
41
, Ir, cc Jll*
4 :
71'p Humanities Building Court -University of California Riverside
CITY OF PUBLIC UTILITIES DEPARTMENT.
3900 Main Street Riverside, California 92522 March 22, 1977 EVERETT C. ROSS PUELIC UTILITIES DIRECTOR OFFICIAL STATEMENT The City of Riverside, California (herein sometimes referred to as the "City") will offer for sale
$2,500,000 Electric Revenue Bonds, Issue of 1977 (Subordinated) (herein sometimes referred to as the "Bonds"), at 10 a.m., P.S.T., on April 12, 1977. The Bonds were authorized by a resolution of the City Council adopted on February 15, 1977, in accordance with the provisions of the City Charter.
The Bonds were authorized for the purchase of economy electric energy from the Nevada Power Company, in accordance with the agreement included herein as Appendix I.
The Bonds will be obligations of the City payable from the surplus revenues of the electric system owned, controlled and operated by the City. The Issue of 1977 Bonds will be subordinated to the
$10,760,000 outstanding Electric Revenue Bonds, Issue of 1966, Electric Revenue Bonds Issue of 1969, Electric Revenue Bonds Issue of 1971, and Electric Revenue Bonds Issue of 1973.
The City of Riverside, located approximately 50 miles east of Los Angeles and 90 miles north of San Diego is an important residential, commercial, educational and industrial center in Riverside County. The City's population was 140,089, according to the 1970 U.S. Census. The 1976 current City population estimate is 160,000.
The City's sub-transmission and distribution system has 56,902 customers who used 895.1 million kilowatt-hours in the 1975/76 fiscal year. Power is purchased wholesale from the Southern California Edison Company and the Nevada Power Company.
Debt service coverage on the outstanding Bonds is es imated as follows: maximum future debt service of $994,985 would be covered by the last fiscal year's gross operating revenues 33.4 times and by net operating revenues 5.01 times.
The material contained in this Official Statement is presented in advance of the sale of the Bonds in order that those interested in their purchase may have available information with which to judge their merit.
Included in this Official Statement is certain information describing the Bonds, the Electric Division of the Public Utilities Department of the City, as well as general data concerning the City of Riverside, its location, population, economic and financial background.
Copies of this Official Statement together with the "Notice of Sale" and bid form may be obtained from Wainright & Ramsey Inc., 70 Pine Street, New York, N. Y. 10005, and 7325 Woodrow Wilson Drive, Los Angeles, California 90046, and 58 Sutter Street, San Francisco, California 94104 or from Everett C. Ross, Public Utilities Director, 3900 Main St., Riverside, California 92522.
5
THE BONDS
$2,500,000 CITY OF RIVERSIDE, CALIFORNIA (RIVERSIDE COUNTY)
ELECTRIC REVENUE BONDS, ISSUE OF 1977 (SUBORDINATED)
(Payable solely from the Electric Surplus Revenue Fund)
Dated April 1, 1977 Due January 1, 1978-July 1, 1980 The Bonds will be coupon Bonds, in the denomination of $5,000 each, registrable as to principal only, or as to both principal and interest (and reconvertible). Principal and interest (due semi-annually January 1 and July 1, beginning January 1, 1978) shall be payable in lawful money of the United States of America at the office of the City Treasurer of the City of Riverside in said City or at the option of the holder at any fiscal agency of the City in Los Angeles, California, or in San Francisco, California, or in Chicago, Illinois, or in New York, New York.
Amounts and Maturities Principal Principal Amount Amount January 1, 1978..................
$400,000 July 1, 1979........................
$425,000 July 1, 1978........................
400,000 January 1, 1980..................
425,000 January 1, 1979....................
400,000 July 1, 1980........................
450,000 Authorization The $2,500,000 Electric Revenue Bonds, Issue of 1977 (Subordinated) constitutes the entire amount of Electric Revenue Bonds recommended by the City of Riverside Board of Public Utilities to the City Council on January 7, 1977. The Bonds will be issued in accordance with the provisions of a resolution of the City Council of the City of Riverside, adopted February 15, 1977 (herein some times referred to as the "Bond Resolution").
Purpose of the Bonds The payment for the delivery of electric energy to the City from Nevada Power Co., for a period starting May 20, 1976 and lasting to June 30, 1980, as provided for in the agreement included herein as Appendix I, will be funded from the proceeds of the Electric Revenue Bonds, Issue of 1977 (Subordi nated). The energy will be transmitted by Southern California Edison Company in accordance with the Agreement included herein as Appendix II.
All necessary environmental impact reports or negative declarations with respect to the purchase of electric energy from Nevada Power Co. have been prepared, hearings held, and a notice of determination will be filed with the County Clerk of the County of Riverside in accordance with the California Environ mental Quality Act of 1970.
Bond Security The Electric Revenue Bonds, Issue of 1977, are subordinated to the outstanding Electric Revenue Bonds, Issue of 1966, Issue of 1969, Issue of 1971 and Issue of 1973.
Said Electric Revenue Bonds, Issue of 1977 (Subordinated), are issued under and pursuant to Section 1306 of the City Charter of the City and the Bond Resolution adopted pursuant thereto. In accordance with said Section 1306 and said Resolution, the Bonds shall not constitute or evidence 6
indebtedness of the City, but shall constitute and evidence only indebtedness of the Electric System thereof payable in the manner provided in said Section 1306 and said Resolution and not otherwise, to wit: the Bonds are payable both as to principal and interest only out of the Electric Surplus Revenue Fund and not out of any other fund or moneys of the City; provided, however, that this shall not preclude payment of principal or interest through certain other sources as enumerated in said Resolution.
The Electric Surplus Revenue Fund is established under and pursuant to said City Charter, and, under the provisions of said Resolution, the surplus revenues (as defined in the Resolution) of the Electric System of the City are required to be deposited in the City Treasury in the Electric Surplus Revenue Fund and used only for the purposes authorized by said Section 1306 and said Resolution, including the payment of principal and interest of the Bonds.
Of the $4,700,000 Issue of 1966 Bonds, $3,240,000 are presently outstanding, maturing annually April 1, 1973 through 1996, both inclusive, and, of the $2,100,000 Issue of 1969, $1,680,000 are presently outstanding, maturing annually December 1, 1973 through 1999, both inclusive, and of the
$3,000,000 Issue of 1971 Bonds, $2,500,000 are presently outstanding, maturing annually June 1, 1973 through 2001, both inclusive, and of the $3,700,000 Issue of 1973, $3,340,000 are presently outstanding, maturing annually April 1, 1974 through 2003, both inclusive.
Flow of Funds Surplus Revenue Fund. The surplus revenues shall be deposited in the Electric Surplus Revenue Fund, and payments from said fund shall be made only as provided by law and the Bond Resolution, or any other resolution relating to revenue bonds payable out of the Electric Surplus Revenue Fund.
Debt Service Account. On or before the twentieth day of each calendar month, there shall be set aside and transferred within the Electric Surplus Revenue Fund to the Debt Service Account at least one-sixth (1/6th) of the interest which will become due and payable on the outstanding Bonds within the next ensuing six months, except that for the first interest payment due after the issuance of the Bonds the monthly sum allocated shall be the interest which will become due and payable less the amount of any accrued interest placed in the Debt Service Account divided by the number of months remaining in said period, and also at least one-sixth (1/6th) of the principal amount of such Bonds which will mature and be payable within the next ensuing six months, except that for the first. principal payment due after the issuance of the Bonds the monthly sum allocated shall be the principal amount which will be due and payable divided by the number of months remaining in said period, so that at least the full amount required to pay, as it becomes due, the interest on and principal of such Bonds shall be set aside in the Debt Service Account at least five days prior to the date the interest and/or principal becomes due.
Rate Covenant The City shall prescribe, revise and collect such charges for the services, facilities and electricity of the Electric System which, after making allowances for contingencies and error in the estimates, shall be at least sufficient to pay the following amounts in the order set forth:
(a) The interest on and principal payments of outstanding Electric Revenue Bonds, Issue of 1966, Issue of 1969, Issue of 1971 and Issue of 1973 as they become due and payable; (b) All payments required for compliance with any resolution providing for the issuance of the bonds described in (a) above; (c) All operating and maintenance expenses; (d) All payments required for compliance with the Bond Resolution and any resolution providing for the issuance of parity subordinated bonds; and 7
(e) All payments required to meet any other obligations of the City which are charges, liens, encumbrances upon or payable from the revenues of the enterprise; and the charges shall be so fixed that the Net Operating Revenues (as defined in the Bond Resolution) shall at least equal 1.25 times the amounts payable under (a) and (b) above and I times the amounts payable under (c) above; provided that so long as any of the Electric Revenue Bonds, Issue of 1966, remain outstanding said charges shall be so fixed that the net revenues shall at least equal 1.50 times the amounts payable under (a) and (b) above.
Limits on Additional Debt Except for bonds issued to refund the Bonds, no additional indebtedness payable out of the revenues of the Electric System and ranking on a parity with the Bonds shall be created or incurred unless:
(1) The City is not in default under the terms of the Bond Resolution.
(2) The Net Operating Revenues for the latest fiscal year or the last completed twelve (12) month period ended prior to the incurring of such additional indebtedness as shown by an audit certificate or opinion of an independent certified public accountant, plus, at the option of the City, either or all of the items hereinafter in this covenant designated (a) and (b), shall have amounted to at least 1.25* times the maximum amount of annual debt service in any fiscal year thereafter on all indebtedness to be outstanding immediately subsequent to the incurring of such additional indebtedness.
The items either or all of which may be added to such Net Operating Revenues for the purpose of applying the restriction contained in this covenant are the following:
(a) An allowance for net revenues from any revenue producing additions to and extensions and improvements of the Electric System to be made with the proceeds of such additional indebted ness or with the proceeds of bonds previously issued, and also for net revenues from any such additions, extensions or improvements which have been made from moneys from any source but which, during all, or any part of such fiscal year or last completed twelve (12) month period, were not in service, all in an amount equal to 90% of the estimated additional average annual net revenues to be derived from such additions, extensions and improvements for the first thirty-six (36) month period in which each addition, extension or improvement is respectively to be in operation, all as shown by the certificate or opinion of a qualified independent engineer employed by the City.
(b) An allowance for earnings arising from any increase in the charges made for the use of the Electric System which has become effective prior to the incurring of such additional indebted ness but which, during all or any part of such fiscal year or last completed twelve (12) month period, was not in effect, in an amount equal to 90% of the amount by which the net revenues would have been increased if such increase in charges had been in effect during the whole of such fiscal year or last completed twelve (12) month period, as shown by the certificate or opinion of a qualified independent engineer employed by the City.
Fiscal Year: The fiscal year of the Electric Division of the Public Utilities Department of the City refers to the year period beginning each July 1 and ending on the next following June 30th.
Tax Exemption: In the opinion of O'Melveny & Myers, Los Angeles, California, Bond Counsel for the City of Riverside, interest on the Bonds is exempt from income taxes of the United States of
- The figures in the covenant for Limits on Additional Debt were 1.50 for the previously issued Electric Revenue Bonds, Issue of 1966 of the City and will remain 1.50 as long as the same are outstanding, unless changed in accordance with the procedure applicable thereto.
8
America under present Federal income tax laws and, such interest is also exempt from personal income taxes of the State of California, under present state income tax laws.
Legal Opinion: The opinion of O'Melveny & Myers, Bond Counsel, approving the validity of said bonds, will be furnished the successful bidder at or prior to the time of-delivery of the Bonds, at the expense of the City. A copy of such opinion, certified by an officer of the City by his facsimile signa ture, will be printed on the back of each Bond. No charge will be made to the purchaser for such printing or certification.
The statements of law and legal conclusions set forth herein under the caption "The Bonds" have been reviewed by Bond Counsel. Bond Counsel's employment is limited to the review of the legal proceedings required for the authorization of the Bonds and to rendering an opinion as to the validity of the Bonds and the exemption of interest on the Bonds from income taxation. The opinion of Bond Counsel will not consider or extend to any documents, agreements, representations, offering circulars or other material of any kind concerning the Bonds not mentioned in this paragraph.
Legality for Investments by Savings Banks in California: It is believed that the Bonds fulfill the requirements of Sections 1350, 1362 and 1371 of the Financial Code of the State of California. The Bonds are payable out of revenues from a revenue producing property (electric system) owned, con trolled, and operated by the City of Riverside, and are secured by such revenues: net income from the last fiscal year has exceeded the maximum annual debt service for any future fiscal year on all such securities which will be outstanding after the issue of the Bonds; and said electric system had a gross income of at least $1,000,000 in the latest fiscal year. An application has been made by the City for a certificate from the Superintendent of Banks of the State of California certifying that the specific bond issue presently offered will, when issued, comply with the requirements of the code for eligibility for investment by savings banks in California.
Additional Sales: No additional electric revenue bonds, ranking on a parity with the Issue of 1966, Issue of 1969, Issue of 1971, Issue of 1973, and the currently offered Issue of 1977 Bonds (Subordi nated), will be offered for sale for at least ninety days following the sale.
THE PUBLIC UTILITIES DEPARTMENT History of the Department The Public Utilities Department was created in 1928 to exercise jurisdiction over the municipal electric and water systems of the City of Riverside. Prior to this, each had been operated as a separate department of the City since the inception of the electric system in 1895 and of the water system in 1913.
The funds of each system have always been segregated from each other and from the City's other monies.
The Public Utilities Department, as presently constituted, was created by Article XIII of the City Charter which was adopted in April.1953 and modified by Charter election in June 1968.
Jurisdiction of the Department The Department exercises jurisdiction over all public utilities owned, controlled, or operated by the City, specifically the electric and water utilities. (The City's sanitary sewer system is operated by the Public Works Department of the City.)
Administration of the Department The Department is under the management and control of the City Manager, subject to the powers and duties vested in the Board of Public Utilities, described below.
The Department is supervised by the Director of Public Utilities who is a professional engineer.
The Department is organized into three divisions:
- 1. Water Division
- 2. Electric Division
- 3. Administrative and Commercial Division 9
The Board of Public Utilities The Board of Public Utilities, created by Article XIII, Section 1301 of the City Charter, consists of five members appointed by the City Council. As set forth in Section 1302 of Article XIII, the Board of Public Utilities, among other things, has the power and obligation to:
(1) Consider the annual budget for the Department of Public Utilities during the process of its.preparation and make recommendations with respect thereto to the City Council and the City Manager.
(2) Within the limits of the budget of the Department of Public Utilities, authorize any purchase of equipment, materials or supplies exceeding the sum of $2,000, and authorize the acquisition, construction, improvement, extension, enlargement, diminution, or curtailment of all or any part of any public utility system. No such purchase, acquisition, construction, improve ment, extension, enlargement, diminution or curtailment shall be made without such authorization.
(3) Within the limits of the budget of the Department of Public Utilities, make appropriations from the contingency reserve fund for capital expenditures directly related to the appropriate utility function.
(4) Require of the City Manager monthly reports of receipts and expenditures of the Department of Public Utilities, segregated as to each separate utility, and monthly statements of the general condition of the Department and its facilities.
(5) Establish rates for water and electric revenue producing utilities owned, controlled or operated by the City, but subject to the approval of the City Council.
(6) Approve or disapprove the appointment of the Director of Public Utilities, who shall be the Department head.
(7) Designate its own secretary.
(8) Make such reports and recommendations to the City Council regarding the Department of Public Utilities as it shall deem advisable.
(9) Exercise such other powers and perform such other duties as may be prescribed by ordinance not inconsistent with any of the provisions of the City Charter.
MEMBERS OF THE BOARD OF PUBLIC UTILITIES LESTER G. HEUSTIS -
Chairman of the Board of Public Utilities, appointed as a Board member, in 1968. Registered Mechanical Engineer in State of California. Chief Engineer, Alcan Western Products, Divisiori of Alcan Aluminum Corporation, in Riverside.
WILLIAM C. EVANS -
A Board member for 31 years: January 1937 - December 1940, and continuously since January 1949. A civic leader and Base Engineer. Active in property management and investments.
CHARLES M. ROSS -
Appointed as a Board member in July 1967. Certified Public Accountant.
Retired principal partner and founder of the firm of Ross, Landis and Pauw, Certified Public Accountants.
EDWARD J. CAMPBELL -
Appointed as a Board member in March 1972. Businessman.
Owner of Preston and Simons Mortuary.
TONY M. ESQUIBEL -Appointed as a Board member in July 1972. Owner and Chairman of Board of Bonita Enterprises, Inc., builder. Past commissioner, Riverside County Flood Control &
Water Conservation District, Zone 1.
PUBLIC UTILITIES DIRECTOR EVERETT C. ROSS -
Appointed Director of Public Utilities Department of Riverside in 1958, following two years' service as Assistant Manager of the Department. Received a Bachelor of Science in electrical engineering in 1947 from Stanford University. Registered electrical engineer in the State 10
of California. Senior member of the Institute of Electrical and Electronic Engineers. Member of the American Water Works Association. Past Chairman of California Regional Water Quality Control Board, Santa Ana Region. Past President, California Municipal Utilities Association.
THE SYSTEM Inception of the System The City of Riverside was a pioneer in the long-distance transmission and distribution of electric power. The municipal electric system which was constructed in 1895, was among the first eight such municipally owned systems in the State of California prior to the turn of the century. It has been fundamentally a sub-transmission and distribution system, though the City did generate part of its own power from 1900 to 1924. Power has been purchased exclusively from the Southern California Edison Company from 1950 to May of 1976. At that time, Riverside began receiving non-firm energy purchased from the Nevada Power Company and delivered to the City by the Southern California Edison Company.
The municipal electric system was created in response to public demand for more light at lower rates; the initial construction was financed by a $40,000 bond issue voted in June 1895, and another of like amount in 1900. (Prior to this a small private company had furnished power for lights in a few stores and homes and for a few street lights.)
As the initial source of power for the municipal system was located 20 miles from Riverside, the City contracted for construction of the first 10,000-volt transmission line of that length in the United States. The original, specially designed transformers which stepped the power up to 10,000 volts at the power plant and then down to 2,200 volts in Riverside for distribution, thereby making possible Riverside's long distance line, are still preserved and were exhibited at the Panama Pacific International Exposition in San Francisco in 1915 as "the pioneer high voltage transformers of the world."
Service Area The Electric Division of the Public Utilities Department, through its electric distribution system, provides service throughout all parts of the City to domestic, commercial, industrial, agricultural, municipal and other customers.
The City commenced service on April 13, 1966 to the Arlanza area annexed November 17, 1961 and to the La Sierra area annexed May 7, 1963; prior to this both areas had been served by the Southern California Edison Company. Part of the proceeds of the electric revenue bonds sold March 1966, was to finance the consolidation of these areas into the existing municipal system.
Prior to mid-1950, the Electric Division sold power to approximately 328 customers outside the City limits. The City sold these distribution facilities to the Southern California Edison Company and the California Electric Power Company for $74,876 on June 30, 1950, in order to comply with the provisions of a wholesale-resale basis service agreement for the purchase of electric energy solely from the Southern California Edison Company; the City agreed not to sell any electric energy outside the City in the Company's service area now or in the future.
Source of Power 1896-1900 -
During the first five years of the municipal electric system's existence, all power was purchased from a small (250 kw) hydroelectric plant built in 1892 in Mill Creek Canyon primarily to serve the City of Redlands by the old Redlands Power Company, a predecessor of the Southern California Edison Company; the plant was the first of its kind in the United States.
1900-1913-The growth in demand for lighting and local street cars prompted the City to supplement its source of purchased power with its own steam-generating plant. This 450 kw plant was financed by a $40,000 bond issue voted in 1900.
1913-1924 -
Power was generated by the City and also purchased from the Southern California Edison Company and the Southern Sierras Power Company, which later became the California Electric Power Company. Operation of the City's steam plant was discontinued in 1924 due to its obsolescence relative to the service rendered by the modern interconnected power systems.
1924-1950 -
All power was purchased from the same two companies selling power to the City from 1913 to 1950. The City ceased to purchase power from the California Electric Power Company on February 1, 1950 and since that date has purchased exclusively from the Southern California Edison Company. Briefly, this change came about following a request for a rate increase by Cal.-Electric to the State Public Utilities Commission; both companies had been charging the same rate prior to this. In essence the Commission determined that the best interests of the City of Riverside would be served by its purchasing power solely from Edison.. (In exchange for ceasing service to Riverside, Cal.-Electric acquired some of Edison's customers elsewhere.)
1950-1976 -
All the power requirements of the municipal electric system have been purchased wholesale from the Southern California Edison Company.
The City has alternated between short-and long-term contracts with the Company: a five-year contract was in effect from 1949 to 1954; year-to-year contracts prevailed from 1954 to 1963; a ten-year contract was entered into on July 18, 1963 as the Company offered the City approximately a 5% rate reduction. The power purchase contract provides in general that the Southern California Edison Company shall furnish and the City shall take from the Company all electric energy resold or used by the City during the ten-year period. The present contract is one of many that have been in effect for many years and the Company must continue to serve the complete requirements of the City's electric system, and has no right of termination. The City has the right, however, to terminate the contract on not less than thirty months' notice to the Company in the event that the net bill for electric energy to the City is increased during the term of the contract as a result of changes in the Company's rate schedule number R-2. The terms and conditions of the power purchase contract are subject to approval by the Federal Power Commission.
In line with its continuing desire to lower the cost of power, the City of Riverside jointly with the City of Anaheim is studying the feasibility of participating in a joint venture in new electric generating plants in the region with the Southern California Edison Company and possibly other municipal and privately-owned utilities, if feasible arrangements can be worked out.
In May of 1976, the City of Riverside began receiving non-firm energy purchased from the Nevada Power Company and delivered (wheeled) to the City by the Southern California Edison Company. The Transmission Agreement between the City and Edison allows for a deduction, by Edison, of 3.3% to account for average transmission losses. Charges for transmission, dispatching and scheduling services are billed to Riverside by Edison under separate billing. Transmission charges initially, as stated in the agreement, are 1.29 mills per kilowatthour. Initial charges for scheduling and dispatching services to Riverside are $420 per month.
Existing Facilities The municipal electric system is fundamentally a sub-transmission and distribution system providing service to all electric customers within the City limits.
Power is purchased wholesale from Southern California Edison Company at 66,000 volts and is supplied to the City limits through five separate 6 6,000-volt transmission lines owned and operated by Southern California Edison Company. These lines are used for the sole purpose of delivering electric energy from the Company's Vista Substation to the northerly limits of the City of Riverside, at which points connections are made to the City-owned and operated 66,000-volt transmission system. Under plans presently being formalized between the City and Southern California Edison Company, it is 12
anticipated that all future deliveries will be made through a 220,000-volt substation which should result in lower power costs. It is not expected that this new delivery facility can be in operation before 1980.
Including street lights, the City has 1,041 circuit miles of sub-transmission and distribution lines.
The 416 circuit miles of underground lines are primarily in commercial and new residential areas.
Newly constructed substations and recent additions to existing stations provide ample distribution capacity for most any type of industrial or commercial load. There are now 18 substations, with a combined capacity of 434 MVA (million volt-amperes).
SUB-TRANSMISSION AND DISTRIBUTION LINES, INCLUDING STREET LIGHTS Circuit Miles Fiscal Year Overhead Underground Total Ended June 30 Lines Lines Lines 1960.............................
458.19 152.48 610.67 1961............................
472.63 153.22 625.85 1962.....................
....... 505.41 153.83 659.24 1963............................
512.71 154.74 667.45 1964......................
530.85 156.30 687.15 1965............................
549.51 160.50 710.01 1966....................
....... 584.63 164.36 748.99 1967............................
614.00 167.99 781.99 1968............................
609.99 178.71 788.70 1969...--...
627.49 188.40 815.89 1970......-...--.-............................
629.85 209.79 839.64 197 1.......---.--
625.11 230.08 855.19 1972.............................
623.22 327.03 950.25 1973-.................
624.44 353.70 978.14 1974........................
622.66 388.53 1,011.19 1975.............................
625.81 406.73 1,032.54 1976..............................
625.13 415.93 1,041.06 Source: Riverside Public Utilities Department.
13
ELECTRIC RATES Area Rate Comparisons Because of the current "Schedule R Resale Service Large" of Southern California Edison Company approved by the Federal Power Commission the electric rates now in effect in the City of Riverside are generally higher than comparable rates charged by the Company to Domestic and Com mercial Customers in nearby cities.
The industrial rates charged by Riverside are equal to, or lower than, the comparable rates charged by Southern California Edison Company in nearby cities.
ELECTRIC RATE COMPARISONS BY MONTHLY BILL February 1977 Domestic Commercial 5,000 Kwh 150 Kwh 500 Kwh 1,500 Kwh 500 Kwh 200 Kwh (small (small)
(average)
(large)
(small)
(average) power)
- Anaheim.......-..---------------.....
$8.19
$20.17
$50.47
$31.24
$ 99.08
$206.80 Corona.....------------------.........
8.93 21.64 53.53 33.99 105.39 218.78
- Los Angeles 8.84 21.48 54.36 30.63 105.30 229.72 Ontario........--------------.........
8.93 21.64 53.53 33.99 105.39 218.78 Palm Springs-------------
8.93 21.64 53.53 33.99 105.39 218.78 Pomona...........---
8.63 21.23 53.12 32.89 104.29 217.68
- Riverside-----.-...-------------_.
9.45 23.81 60.39 40.44 119.63 281.66 San Bernardino.............
8.63 21.23 53.12 32.89 104.29 217.68 Santa Ana.......-----.......... 8.63 21.23 53.12 32.89 104.29 217.68
- Municipal system.
Source: Riverside Public Utilities Department.
City of Riverside Rate Schedules The Public Utilities Department of the City of Riverside at present has in effect nine electric power rate schedules.
Schedule D Domestic Service -
described in detail on the following page.
Schedule A General Service -
applicable to service for all types of users, including lighting, power and heating, alone or combined.
Schedule TC Traffic Control Service -
for service to all traffic signals.
Schedule C Industrial Service -
Applicable to service for industrial and processing estab lishments, where one or more products are manufactured or processed.
Schedule PA Power -
Agricultural and Pumping -
applicable to power service for general agriculture or for general water or sewage pumping; energy charge per kwh is based on the horsepower of the connected load.
Schedule PW Wind Machines for Frost Protection -
applicable only for service to wind machines for frost protection; energy charge per kwh is based on the horsepower of the connected load.
Schedule LS-1 Street Lighting Service -
Department Financed -
energy charged by flat rates per Lamp per year.
14
Schedule LS-2 Street Lighting Service -
Customer Financed -
energy charged by flat rates per Lamp per year.
Schedule OL Outdoor Lighting -
Other than Street Lights -
Department owned and main tained -
energy charged by flat rates per lamp per month.
The following is a summary of selected portions of the Schedule D for Domestic Service now in effect.
Monthly Rate:
Customer Charge-----
$1.12 Per kwh Energy Charge Per Kwh (to be added to customer charge)
First 60 kwh......................................---------------
5.92 Next 240 kwh....................................
3.780 Additional kwh*.....................................---------------
2.740
- The rate of 2.600 per kwh is billed for (a) customers with Department-approved electric water heaters for monthly usage between 300 kwh and 750 kwh; (b) customers with electric space heating engi neered to heat the entire family accommodation for all monthly usage over 300 kwh during the months November through April; and, (c) customers with all-electric homes for all monthly usage over 300 kwh. These rates are subject to a fuel cost surcharge.
Billing and Collecting Procedure Residential, commercial and industrial customers are billed monthly. Bills are due and payable on presentation and become delinquent fifteen days after mailing. After a bill is delinquent, the Department may discontinue electric service and turn off the electricity after giving appropriate written notice.
Charges for connection or reconnection of service, payments for deposits or to reinstate deposits, and the entire/ delinquent bill shall all be paid in full before service shall be connected or reconnected.
OPERATIONS Sales and Revenue Rapid growth in power usage, revenues and number of customers has characterized the past 14 years. The municipal electric system now serves 56,902 customers (77% greater than in 1961/62),
who used 895.1 million kwh in the 1975/76 fiscal year (225% above 1961/62), generating revenues of
$33,235,382 this past fiscal year (528% higher than in 1961/62).
Domestic, commercial and industrial customers account for 95.9% of operating revenues, 95.7%
of kilowatt hour usage, and for 99.7% of the number of customers for the fiscal year ended June 30, 1976. Other types of customers include municipal and agricultural. The source of revenues and usage of power are concentrated neither in a single or small group of customers nor in a certain type of customer -
a healthy diversification exists, as exhibited in the following tables.
COMPARATIVE STATEMENT OF ACTUAL REVENUES AND EXPENSES OPERATING RATIOS AND DEBT SERVICE COVERAGE Total Debt Year Income Transfer Operating Year Net Other Available to byNe Ended Operating Operating Operating Income For Debt Debt General Operting Debt Operating June 30 Revenues Expense Revenues (Net)
Service Service Balance Fund Balance Expenses Service Rvne Reene (Nt Services 1962--.----.-..---.............
$ 5,294,428
$ 3,241,206
$2,053,222
$2,053,222
$,5,2 0,6 13729 6.%
1963.....--...-.....---........
5,894,436 3,734,143 2,160,293 2,160,293 2,160,293 694,288 1,466,005 63.4 1964......-......--............
6,533,639 4,116,363 2,417,276 2,417,276 2,417,276 740,000 1,677,276 63.0 1965......---..-.--............
7,046,765 4,473,089 2,573,676 57,980 2,631,656 2,631,656 699,000 1,932,656 63.5 1 9 66(a).....................
7,775,202 5,243,837 2,531,365 122,993 2,654,358 2,654,358 808,681 1,845,677 67.4 1967----..-.---.--.-...........
9,394,393 6,543,016 2,851,377 134,220 2,985,597 229,907 2,755,690 1,186,324 1,569,366 69.6 2.4 12.4x 1968...-.-..-.--.-..-..........
10,132,508 6,883,778 3,248,730 79,255 3,327,985 332,407 2,995,578 1,011,163 1,984,415 67.9 3.3 9.8 1969(b)................
10,122,939 7,343,703 2,779,236 80,483 2,859,719 324,658 2,535,061 1,165,238 1,369,823 72.5 3.2 8.6 1970................
10,841,019 8,084,527 2,756,492 286,034 3,042,526 362,408 2,680,118 1,164,138 1,515,980 74.6 3.3 7.6 1971....------.................
11,744,099 8,723,722 3,020,777 142,189 3,162,966 523,112 2,639,854 1,246,717 1,393,137 74.3 4.5 5.8 1972..-.-. --.
--................ 13,290,601 10,206,116 3,084,485 256,163 3,340,648 782,512 2,558,136 1,350,571 1,207,565 76.8 5.9 3.9 1973........--.---.............
14,758,609 10,815,967 3,942,642 213,010 4,155,652 762,550 3,393,102 1,528,419 1,864,683 73.3 5.2 5.2 1974................
18,259,934 13,809,172 4,450,762 507,217 4,957,979 1,072,985 3,884,994 1,697,240 2,187,754 75.6 5.9 4.1 1975.......
29,119,048 23,458,179 5,660,869 539,677 6,200,546 1,046,986 5,153,560 2,085,407 3,068,153 80.6 3.6 5.4 1976........---
33,235,382 28,249,146 4,986,236 465,673 5,451,909 963,717 4,488,192 2,679,665 1,808,527 85.0 2.9 5.2 (a) City commenced electric service April 13, 1966 to the Arlanza and La Sierra areas annexed in 1961 and 1963, respectively.
(b) Rate reduction of 5% effective July 1, 1968.
Source: Riverside Public Utilities Department.
ELECTRIC SYSTEM GROWTH STATISTICS ELECTRIC OPERATING REVENUES, BY TYPE OF CUSTOMER (000's omitted)
Fiscal Year By Per Cent of Total Ended________________
June 30 Domestic Commercial Industrial Other Total Domestic Commercial Industrial 1962................
$2,249
$1,680
$1,098 267
$ 5,294 42.5%
31.7%
20.7%
1963..-.---------
2,460 1,883 1,257 294 5,894 41.7 31.9 21.3 1964................
2,670 2,098 1,424 342 6,534 40.9 32.1 21.8 1965................
2,875 2,242 1,548 382 7,047 40.8 31.8 22.0 1966................
3,109 2,478 1,751 437 7,775 40.0 31.9 22.5 1967................
3,908 2,876 2,111 499 9,394 41.6 30.6 22.5 1968................
4,187 2,976 2,413 557 10,133 41.3 29.4 23.8 1969................
4,179 3,047 2,381 516 10,123 41.3 30.1 23.5 1970................
4,533 3,083 2,649 576 10,841 41.8 28.4 24.4 1971.--...---------
4,758 2,955 3,349 609 11,671 40.8 25.3 28.7 1972-...---------
5,294 3,362 3,814 821 13,291 39.8 25.3 28.7 1973................
5,851 3,810 4,323 775 14,759 39.6 25.8 29.3 1974(a)..........
7,331 4,696 5,327 906 18,260 40.1 25.7 29.2 1975-.-...-------- 12,026 7,473 8,477 1,143 29,119 41.3 25.7 29.1 1976................
12,876 8,911 10,110 1,338 33,235 38.7 26.8 30.4 Source: Riverside Public Utilities Department.
KILOWATT HOUR USAGE BY TYPE OF CUSTOMER (000's omitted)
Fiscal Year By Per Cent of Total Ended June 30 Domestic Commercial Industrial Other Total Domestic Commercial Industrial 1962.-----
90,847 81,525 83,826 18,963 275,161 33.0%
29.6%
30.5%
1963-------.- 101,376 94,587 100,180 20,161 316,304 32.1 29.9 31.7 1964......... 114,133 108,510 118,321 20,669 361,633 31.6 30.0 32.7 1965......... 128,925 114,436 131,333 23,306 398,000 32.4 28.8 33.0 1966.------.- 144,496 126,644 152,348 30,555 454,043 31.8 27.9 33.6 1967--------. 203,598 155,778 198,845 28,044 586,265 34.7 26.6 33.9 1968--------- 212,137 158,380 226,983 34,158 631,658 33.6 25.1 35.9 1969......... 220,229 179,630 240,688 35,325 675,872 32.6 26.6 35.6 1970......... 245,220 178,142 261,035 39,497 723,894 33.9 24.6 36.1 1971......... 265,086 152,281 353,082 28,511 798,960 33.2 19.1 44.2 1972......... 286,160 164,381 381,152 30,784 862,477 33.2 19.0 44.2 1973.-----.-.. 330,000 168,810 362,213 39,841 900,864 36.6 18.7 40.2 1974(a).... 298,173 172,892 371,460 39,372 881,897 33.8 19.6 42.1 1975.......... 309,089 170,408 354,256 41,567 875,320 35.3 19.5 40.5 1976---.-.--.- 318,376 179,575 357,978 39,213 895,142 35.6 20.1 40.0 Source: Riverside Public Utilities Department.
17
NUMBER OF ELECTRIC SYSTEM CUSTOMERS BY TYPE As of By Per Cent of Total June 30 Domestic Commercial Industrial Other Total Domestic Commercial Industrial 1962 ---.............. 28,061 2,865 529 607 32,062 87.5%
8.9%
1.6%
1963.....................
29,999 2,991 548 671 34,209 87.7 8.7 1.6 1964..-----............. 31,402 3,103 546 706 35,757 87.8 8.7 1.5 1965......-.-.................
32,884 3,230 555 707 37,376 88.0 8.6 1.5 1966-..........
42,101 3,309 563 762 46,735 90.1 7.1 1.2 1967.....-.....................
42,422 3,367 569 689 47,047 90.2 7.2 1.2 1968--------------.............
42,559 3,327 572 686 47,144 90.3 7.1 1.2 1969--------------.............
43,214 3,366 580 603 47,763 90.5 7.0, 1.2 1970---------...
43,729 3,429 583 599 48,340 90.4 7.1 1.2 1971-----------.............
43,023 4,181 181 206 47,591 90.4 8.8 0.4 1972..-----............. 43,883 4,355 149 156 48,543 90.4 9.0 0.3 1973-------------.............
47,923 4,351 153 199 52,626 91.1 8.3 0.3 1974(a)-..........._-
50,070 4,312 156 198 54,736 91.5 7.9 0.3 1975...........................
51,285 4,253 144 211 55,893 91.8 7.6 0.3 1976-..-......
52,239 4,304 143 216 56,902 91.8 7.6 0.3 (a) Beginning in May of 1974, reflected in electric revenue, is revenue derived from the fuel cost surcharge, which basically is a flow thru of increased fuel expense related to electric generation.
Source: Riverside Public Utilities Department.
TOP TEN CUSTOMERS OF THE MUNICIPAL ELECTRIC SYSTEM (Calendar Year 1976)
Annual Total KWH Annual Customer Type of Business Purchased Bill
- 1. University of California State University 45,825,000
$1,391,760 Riverside
- 2. American Metal Climax, Inc.
Mill products; aluminum 23,667,000 660,370 sheet & tubing; mobile home exterior, siding &
roofing
- 3. Rohr, Inc.
Aerospace components 16,634,000 497,220
- 4. Alcan Aluminum Corp.
Aluminum Mill Products 11,818,000 338,290
- 5. Bourns, Inc.
Precision electro-mechanical 10,156,000 290,910 instruments
- 6. La Sierra College Private college 8,035,000 273,420
- 7. Riverside County Hospital Hospital 6,880,000 219,330
- 8. City Sewage Treatment Sewage treatment 6,728,000 206,850 Plant plant
- 9. Riverside Community Hospital 6,542,000 198,490 Hospital
- 10. City of Riverside City Hall 6,392,000 206,960 142,677,000
$4,283,600 Percentage of Total Sales 15.7%
12.0%
Source: Riverside Public Utilities Department.
18
DEBT The municipal electric system was debt free from 1940 until March 29, 1966. Since that time, there have been four issues totalling $13,500,000. The two bond issues which financed the original municipal system, sold in 1895 and 1900, were each for $40,000 and had 40-year maturities; although they were general obligation bonds, the City's General Fund was reimbursed for their debt service from electric system revenues. The City of Riverside has never defaulted on any general obligation or revenue bond issue.
Debt service coverage on the $10,760,000 outstanding electric revenue bonds is unusually good on both a net operating revenue basis as well as a gross revenue basis -
the bonds, except for the subordinated issue, carry a pledge of gross revenues. I Revenue Coverage of Debt Service on Outstanding Bonds Maximum Future Fiscal Year Ended Debt Service June 30, 1976 (1977: $994,985)
Total Operating Revenues: $33,235,382------------------------
33.4 times Total Net Revenues: $5,451,909- ---------------
5.48 Total Net Operating Revenues:
$4,986,236 5.01 Quad and carillon on 12 00-acre campus of the University of California, Riverside.
19
CITY OF RIVERSIDE ELECTRIC REVENUE BONDS ANNUAL DEBT SERVICE REQUIREMENTS Current Issue Electric Revenue Bonds Fiscal Presently Outstanding Electric Revenue Year Bonds -Issues of 1966, 1969, 1971 and 1973 Interest EndingEsiae June 30 Principal Interest Total Principal
@5%
Total 1977................$
450,000
$ 544,985 994,985 1978......................
450,000 519,615 969,615 400,000 93,750 493,750 1979......................
450,000 494,840 944,840 800,000 95,000 895,000 1980.....................
450,000 469,995 919,995 850,000 21,875 871,875 1981..................
450,000 444,955 894,955 450,000 11,250 461,250 1982.................450,000 419,880 869,880 1983..................
450,000 396,270 846,270 1984.....................
455,000 374,415 829,415 1985.....................
455,000 352,910 807,910 1986.....................
455,000 331,370 786,370 1987..................
455,000 309,670 764,670 1988.....................
455,000 287,845 742,845 1989..................
460,000 266,020 726,020 1990....................460,000 243,873 703,873, 1991.................460,000 221,627 681,627 1992.....................
460,000 199,365 659,365 1993......................460,000 177,014 637,014 1994......................460,000 154,471 614,471 1995.....................460000 131,929 591,929 1996.....................460000 109,386 569,386 1997.....................295,000 86,844 381,844 1998....................295,000 70,281 365,281 1999.....................295,000 53,719 348,719 2000.......................295,000 37,156 332,156 2001....................225,000 23,000 248,000 2002.......................125,000 11,250 136,250 2003......................
125,000 5,625 130,625 TOTAL......-1 50,000 54,10
$17,498,31 0
$ 221,875
$2,721,875 20
CAPITAL PLANNING Introduction The Electric Division of the Department of Public Utilities follows a systematic and comprehensive program of capital planning, the fundamentals for which were established in the Joint Edison-Riverside Study completed in February 1966 by the Southern California Edison Company and the City of Riverside. The Study in general sets forth the procedures to provide service needed through 1985.
The City annually reviews and extends by one year its six-year Capital Improvement Program. This Program which embraces all municipal facilities and services of the City (including the Public Utilities Department) is the product of continuous planning by the staff of each department and division.
Tribute to the effectiveness of capital planning for the municipal electric system is the ample supply and reliability of service. There have been no power shortages or rationing of electricity in the City of Riverside.
Capital Improvements 1961/62 - 1981/82 The development of Riverside's municipal electric system over the past 15 years has been character ized by rapid growth, largely due to two factors:
(1) the number of customers has increased by 77%
since 1961/62 as a result of population expansion due to both internal growth and annexation; the effect of the latter occurred primarily in 1966 when the Electric Division began serving the Arlanza and La Sierra areas which had been annexed in 1961 and 1963, respectively; and (2) the greatly expanded electricity usage per customer. Kilowatt hours used has increased by 225% since 1961/62, due to a combination of greater use of appliances, particularly air conditioners, and commercial and industrial expansion.
As the municipal electric system is fundamentally a sub-transmission and distribution system, the capital improvements constructed in the decade of the sixties were of that nature.
Financial conservatism has characterized the municipal electric system for more than half a century.
The $4,700,000 Issue of 1966 was the first bonding since 1900. Over the past 15 years 64.1% of the
$36,459,319 of capital improvements was financed from current revenues; such contributions average almost $1.6 million annually.
Financing of Electric System Capital Improvements 1961/62 - 1975/76 Current Fiscal Year Revenues Ended June3 Current Revenue as a % of June__30 Revenues Bonds (a)
Total Total 1962......................-
2,137,474
$ 2,137,474 100.0%
1963.......................1,339,299 1,339299 100.0 1964.......................1,440,499 1,440,499 100.0 1965........
1,681,284 1,681,284 100.0 1966.......................1,336,169 3,491,473 4,827,642 27.7 1967.......................1,479,773 909,158 2,388,931 61.9 1968.......................1,797,034 198,399 1,995,433 90.1 1969.......................1,593,142 1,593,142 100.0 1970.......................1,846,517 343,607 2,190,124 84.3 1971.....
1,659,862 1,647,052 3,306,914 50.2 1972.......................1,596,792 1,875,150 3,471,942 46.0 1973.......................1,869,207 1,399,496 3,268,703 57.2 1974.......................1,468,785 1,191,524 2,660,309 55.2 1975.......
1,046,172 1,516,894 2,563,066 40.8 1976........................-----------1,077,567 516,990 1,594,557 67.6
$3,3 69,5 76
$1l3,089,743
$3_6,459,319 64.1%
(a)
Indicates rates of expenditure of proceeds of $4,700,000 Issue of 1966 Bonds, $2,100,000 Issue of 1969 Bonds, $3,000,000 Issue of 1971 Bonds and $3,700,000 Issue of 1973 Bonds, and not the fiscal year in which the bonds were sold.
21
,3,7 0
$21744 100
Capital Improvement Program 1976/77 -
1981/82 The projects scheduled for the six-year period covered by the Capital Improvement Program 1976/77 -
1981/82 are necessary to provide a high level of service for the growing electric power requirements of industry, commerce and homes. The following is a summary of projects for the current and next five fiscal years:
- 1. Generation
$43,699,000
- 2. Underground Facilities..................9,758,000
- 3. Overhead Facilities 5,766,000
- 4. Substation Facilities 10,464,000
- 5. Streetlighting Facilities.-----
420,000
- 6. Other Facilities........................1,324,000 Total........................-$71,431,000 The timing of these $71,431,000 of capital improvements has been planned as follows:
Fiscal Year Ending June 30 1977.............
$ 3,818,000 1978 20,158,000 1979 11,138,000 1980 6,163,000 1981----------------
13,677,000 1982 ---------
16,477,000 Total......-------------------
$71,431,000 Note: Except for generating facilities, the policy is-to -pay- -50% or more of capital improvements from revenues.
New Main Public Library.
22
CITY OF RIVERSIDE ELECTRIC FUND CONDENSED COMPARATIVE STATEMENT OF REVENUES AND EXPENSES FOR THE YEARS ENDED JUNE 30, 1971 THROUGH 1976 Fiscal Year Ended June 30 1976 1975 1974 1973 1972 1971 Operating
.Revenues.- $33,235,382
$29,119,048
$18,259,934
$14,758,609
$13,290,601
$11,744,099 Operating Expenses..-
28,249,146 23,458,719 13,809,172 10,815,967 10,206,116 8,723,722 Depreciation_
1,548,756 1,486,275 1,441,578 1,325,321 1,196,437 1,074,906 Total.-.---
29,797,902 24,944,994 15,250,750 12,141,288 11,402,553 9,798,628 Net Operating Income-.-...
3,437,480 4,174,054 3,009,184 2,617,321 1,888,048 1,945,471 Other Income.
465,673 539,677 507,217 213,010 256,163 142,189 Total......
3,903,153 4,713,731 3,516,401 2,830,331 2,144,211 2,087,660 Other Deduction..
570,985 596,985 622,985 463,812 465,915 315,674 Net Income-... $ 3,332,168
$ 4,116,746
$ 2,893,416
$ 2,366,519
$ 1,678,296
$ 1,771,986 Contribution to General Fund.......... $ 2,679,665
$ 2,085,407
$ 1,697,240
$ 1,528,419
$ 1,350,571
$ 1,246,717, Source: Riverside Public Utilities Department.
23
CITY OF RIVERSIDE ELECTRIC FUND COMPARATIVE STATEMENT OF REVENUE AND EXPENSE Fiscal Year to Date 6 Months Ending 12/31/76 Fiscal Years 1975-76 1976.77 OPERATING REVENUES:
Electric Sales R
$ 5,154,639
$ 6,558,662 Residential -
FueLAdustment...........................
1,256,583 682,829 Residential Totals...
6,411,222 7,241,491 Commercial...........................................
5,324,676 7,531,808 Industrial..------
1,008,575 1,331,725 Municipal and Agriculture-------------
757,613 1,063,172 Commercial, Industrial Fuel Adjustment 2---------2,183,230 1,154,575 Total Electric Sales 1-15,685,316 18,322,771 Other Operating Income 50,109 132,956 Total Operating Income----------------------------15,735,425 5,727 LESS OPERATING EXPENSES:
Production...........-----------
11,414,308 13,757,032 Transmission and Distribution--------------------------------917,309 896,823 Commercial...........................................
572,693 512,656 Administrative and General.........--
360,879 382,757 T o t a l O p e r a t i n g E x p e n s e s..........................
1 3, 2 6 5, 1 8 9 1 5, 5 4 9, 2 6 8 NET OPERATING INCOME BEFORE DEPRECIATION--------2,470,236 2,906,459 Less Estimated Depreciation 816,000 807,000 Net Operating Income------------------------------3..............
2,099,459 ADD NON-OPERATING INCOME:
Interest Income-----------------------------------------0..............
Other Income...........................................
91,769 248,627 Total Non-Operating Income 216,769 346,627 TOTAL INCOME---------------------------------------1,871,005 2,446,086 LESS NON-OPERATING EXPENSES:
Interest Expense --------------------
296,000 273,000 NET INCOME.......-----------------------------------------------
I------------ 1,585,005 2,173,086 Less Contribution to General Fund------------------------------------------
1,417,000 1,616,000 NET INCOME TO RETAINED EARNINGS ----------------------------
168,005
$ 557,086 DEBT SERVICE COVERAGE--------------------------------.
4.83 5.84 DEBT SERVICE COVERAGE (Including Interest Income)........
5.08 6.03 Source: Riverside Public Utilities Department.
24 S---~.11,414,308-
CITY OF RIVERSIDE ELECTRIC FUNDS STATEMENT OF REVENUE AND EXPENSE Year Ended June 30, 1976 OPERATING REVENUES:
Electric Sales:
Domestic Sales-.--....----.--------------------.
$12,875,919 Commercial and Industrial Sales.--------------------------
19,021,370 Municipal Sales -----------------------
1,198,133 Total Electric Sales
$33,095,422 Other Operating Revenues:
Miscellaneous Service 139,960 Total Operating Revenues 33,235,382 LESS: OPERATING REVENUE DEDUCTIONS BEFORE DEPRECIATION:
Operating Expenses 28,249,146 NET OPERATING INCOME BEFORE DEPRECIATION 4-------
,986,236 LESS DEPRECIATION.----
1,548,756 NET OPERATING INCOME 3,437,480 ADD: NON-OPERATING INCOME Interest Revenue 313,315 Sundry Revenue 152,358 Total Non-Operating Income 465,673 TOTAL INCOME ---------.----.------------------------------------------
3,903,153 LESS: NON-OPERATING EXPENSES:
Interest Expense -
Revenue Bonds.-.------..----------------------------------------
570,985 NET INCOME TO RETAINED EARNINGS
$ 3,332,168 Source: Riverside Annual Audited Financial Statement.
25
CITY OF RIVERSIDE ELECTRIC FUND BALANCE SHEET June 30, 1976 ASSETS CURRENT ASSETS Cash.....--
$ 2,653,565 Petty C ash...................... -------
300 Accounts Receivable ----------------------------------------
49,119 Less: Estimated Uncollectible Accounts ---- -------
19,132 Net Accounts Receivable ----
29,987 Due from Other Funds:
Utilities Accounts Receivable---------.-------
3,444,484 Less: Estimated Uncollectible Accounts.-.----------..-------------------------
35,134 Due from Other Governmental Agencies:
Riverside County -
977 Net Utilities Accounts Receivable-- ------------------------------
-- 3,409,350 Total Current Assets
$ 6,094,179 RESTRICTED ASSETS Cash with Fiscal Agent 43,405 Revenue Bond Service:
Cash......
214,298 Revenue Bond Reserve:
Cash..------..------------------------------------------------
888,932 Revenue Bond Construction:
Cash-------.
217,041 Edison Settlement:
Cash 1,399,817 Total Restricted Assets-2,763,493 OTHER ASSETS Advance to Central Stores Fund-505,063 Total Other Assets 505,063 UTILITY PLANT IN SERVICE Utility Plant 45,301,568 Less: Allowance for Depreciation --------------------------
1 3,075,211 Total Utility Plant in Service --------
32,226,357 Construction Work in Process:
Electric Revenue Fund 660,342 Bond Construction Fund 848,075 1,508,417 TOTAL ASSETS
$43,097,509 Source: Riverside Annual Audited Financial Statement.
26
CITY OF RIVERSIDE ELECTRIC FUND BALANCE SHEET June 30, 1976 LIABILITIES, RESERVES, CONTRIBUTIONS AND RETAINED EARNINGS CURRENT -LIABILITIES (Payable from Current Assets)
Accounts Payable
$ 2,614,547 Long-Term Debt Due Within One Year.--.--
450,000 Accrued Payroll 41,720
$ 3,106,267 CURRENT LIABILITIES (Payable from Restricted Assets)
- Accounts Payable 5,734 Matured Bond Interest Payable 43,405 49,139 Total Current Liabilities ------
3,155,406 OTHER LIABILITIES Revenue Bonds Payable 10,310,000 TOTAL LIABILITIES..--------------------
13,465,406 CONTRIBUTIONS Contributions in Aid of Construction 3,279,448 RETAINED EARNINGS TOTAL LIABILITIES, CONTRIBUTIONS AND RETAINED EARNINGS
$43,097,509 27
CITY OF RIVERSIDE ELECTRIC FUND ANALYSIS OF CHANGES IN RETAINED EARNINGS Year Ended June 30, 1976 BALANCE OF RETAINED EARNINGS, July 1, 1975
$25,885,002 Add:
$25,885,002 Net Income for Fiscal Year 1975 652,503 Total Balance and Additions -------------------------------
26,537,505 Deduct:
Transfers to Special Capital Improvement Fund..............
155,200 Loss on Retirement of Utility Plant 9,857 Adjustments to Retained Earnings --..............-------------------------
19,793 Total Deductions 184,850 BALANCE OF RETAINED EARNINGS, June 30, 1976
$26,352,655 ELECTRIC FUND STATEMENT OF CHANGES IN ASSETS RESTRICTED FOR DEBT SERVICE Year Ended June 30, 1976 Cash With Fiscal Debt Agent Service Reserves Total CASH BALANCE, July 1, 1975---------
$ 100,673
$ 218,710
$805,270
$1,124,653 CASH RECEIPTS:
Transfer from Operating Fund 959,305 83,662 1,042,967 Transfer from Revenue Bond Service-963,717 963,717 TOTAL CASH AVAILABLE---..-.---------1,064,390 178,015 88,932 131,337 CASH DISBURSEMENTS:
Principal Payments---
450,000 450,000 Interest Payments..---------------------------570,985 570,985 Transfer to Fiscal Agent 963,717 963,717 Total Disbursements--------
,- 1 020985 63,717
-i,984,702 CASH BALANCE, June 30, 1976.------$
43,405 14,298 88,932 1,178,01514663 Source: Riverside Annual Audited Financial Statement.
28 963,71 96371
THE CITY OF RIVERSIDE ECONOMIC AND FINANCIAL DATA Location and General Background The City of Riverside, founded in 1870 and incorporated in 1883, is situated at the center of the Riverside-San Bernardino Metropolitan Area. It is an important residential, commercial, educational and industrial center located in the northwest corner of Riverside County, approximately 50 miles east of Los Angeles and 90 miles north of San Diego. Elevations within the City range from 700 to 1,600 feet.
As county seat of. Riverside County as well as the County's largest City, Riverside contains many local, County, State and Federal offices. The University of California, Riverside, a major general campus of the University of California, has an enrollment of over 5,000 full-time students and provides employ ment for approximately 2,500 persons. Nearby March Air Force Base, employs about 1,300 civilians.
Riverside has become the principal retail, wholesale and cultural center of Riverside County. The community is situated in the heart of rich agricultural lands and is nationally known as the home of the naval orange industry. Citrus continues to be a major crop of the Riverside area.
Industry is playing an increasingly important role in the City's economy, many of the plants having been built in the nineteen fifties and sixties.
Climate Riverside's climate is warm, dry and not excessively hot, with infrequent fogs and frosts; it is considered to be a moderate climate. The City enjoys abundant sunshine throughout the year. Total clear days are 225 to 250 days per year. The average rainfall is 11.04 inches. For the ten-year period, 1960-70, the summer mean temperature was 75.90 and the annual mean minimum temperature was 57.6.
The prevailing winds are from the northwest with a mean hourly speed of 10 to 12 m.p.h.
Area and Population From the original "mile square" incorporated in 1883 with some 2,000 inhabitants, the City of Riverside has expanded to 71.6 square miles in 1976, and a population estimated at 160,000.
The substantial growth of the last 20 years has been due primarily to in-migration during the nineteen fifties, annexation in the early sixties (29 square miles containing approximately 29,000 people were annexed), and since 1965 due to natural increase and in-migration.
POPULATION, AREA AND POPULATION DENSITY OF THE CITY OF RIVERSIDE Area Density Area Density Year Population (Sq. Mi.)
Per Acre Year Population (Sq. Mi.)
Per Acre 1976 (est.)..
158,000 71.57 3.45 1960----........
83,714 43.59 3.00 1975 (est.)..
151,400 71.33 3.32 1950-........
46,399 39.20 1.85 1974 (est.)
151,621 71.33 3.38 1940--.........
34,696 39.20 1.38 1973 (est.)..
150,700 71.82 3.25 1930---........
30,645 39.20 1.22 1972-..-....... 146,400 71.57 3.21 1920---........
19,341 39.20 0.77 1971.----......
144,300 71.54 3.15 1910.--........
15,212 39.20 0.61 1970.-.-....... 140,089 71.52 3.06 Source: Riverside Planning Department.
29
POPULATION OF RIVERSIDE CITY AND COUNTY U..enu CCity as a.%
U.S. Census city County of the County 1940.........................................
34,696 105,524 32.9%
1950----
46,399 170,046 27.3 1960............................
83,714 306,191 27.3 1970----.....................-------------------.....-
140,089 459,074 30.5 Projections 1976.... ---.-.--...................
158,000(a) 53 9,94 6 (c) 29.3 1980..........
...... 170,000(b) 610,460(d) 27.8 (a) State Department of Finance.
(b) City of Riverside Planning Department.
(c) Riverside County Department of Development.
(d) Urbanomics Research Associates -
Mid Range Projection (low range -572,250).
Government Riverside is a Home Rule Charter City and has operated under the Council-Manager form of government since 1953. The City Council is composed of seven members elected for four-year terms from the seven wards of the City. The Mayor is elected at large for a four-year term and is presiding officer for the Council, but does not have a vote. The Council appoints a City Manager, City Attorney, City Clerk, and members of various advisory boards and commissions.
30
City Hall CITY OF RIVERSIDE BUILDING CONSTRUCTION AND TAXABLE RETAIL SALES Taxable Building Construction Retail Permits Estimated Year Sales(a)
Issued Value 1975---------------$506560000 2,135
$38,736,715 1974----------------462,346,000 3,245 35,745,482 1973----------------436,677,000 3,565 59,875,118 1972----------------394,940,000 3,386 48,738,431 1971----------------349,816,000 1,903 28,105,983 1970----. -----------
307,378,000 2,865 28,647,329 1960---.-----..------
137, 326,000 2,314 17,5 15,35 8 1950------.----------N/A 2,033 10,753,102 (a) Source: Trade Outlets and Taxable Retail Sales in California, published by the State Board of Equalization.
31
RIVERSIDE INDUSTRIAL BASE There are 96 manufacturing plants in the City of Riverside, and the City has over 2,900 acres zoned for light, medium, and heavy industry. Riverside has excellent industrial properties because most of its industrially-zoned properties are served by at least one, if not two or three railroads, and by major freeways, and because most of the properties are on level, well drained terrain with utilities and streets already in.
Among the top 15 manufacturing employers in Riverside are firms producing aerospace and aircraft components, electronic equipment, aluminum products, food processing equipment, food and food con tainer products, and mobile homes and recreation vehicles. Riverside is considered to be a center for mobile home manufacturers.
Among the top 15 manufacturing employers in Riverside are well-known, national companies:
LARGEST 15 MANUFACTURING EMPLOYERS CITY OF RIVERSIDE, 1977 Rank Name of Firm Employees Products
- 1. Bourns, Inc.
1,325 Electric Components
- 2. Fleetwood Homes, Inc.
1,325 Mobile homes
- 3. Alfred M. Lewis, Inc.
1,200 Food Distributors
- 4. Rohr Industries, Inc.
950 Aerospace and aircraft components
- 5. Riverside Daily Press 700 Newspaper and rotary press products
- 6. American Metal Climax-Amax 450 Aluminum sheet, foil, plate, rod, bar and fabricated products
- 7. Owens-Illinois -
Lily-Tulip, Div.
415 Paper and plastic cups, containers
- 8. Toro Company (Irrig. Div.)
400 Automatic irrigation systems
- 9. Hunter Engineering Company, Inc.
300 Aluminum rolling mills, stretchlevellers line, print lines
- 10. Riverside Cement Co.
285 Cement products
- 11. Loma Linda Foods 250 Vegetable
- products, foods, cereals and gravies
- 12. Cal-Togs of California-150 Ladies sportswear BR & BR Sportswear
- 13. E. T. Wall 150 Orange grower/shipper
- 14. Broadmore Mobile Homes, Inc.
85 Mobile homes
- 15. FMC Corporation 75 Food processing equipment Source: Riverside Chamber of Commerce.
Transportation Air: Riverside Municipal Airport, located in the City, has air freight and passenger service by Golden West Air Lines with flights to Los Angeles.
Ontario International Airport, situated 18 miles northwest of Riverside, provides transcontinental and international service.
Carriers include American, Continental, PSA, United, Western, Eastern and Hughes Air West.
32 M
h 1,20 Foo Ditri
Amax Aluminum, the largest aluminum mill in California.
Service for executive, company and private aircraft is available at the Riverside Municipal Airport which has a 5,400-foot main runway, and at Flabob Airport which is a private airfield located near Riverside.
Rail: Main lines of the Union Pacific Railroad and the Atchison, Topeka & Santa Fe Railroad, and a branch line of the Southern Pacific Railroad all serve Riverside; reciprocal switching agreements are in effect. Passenger transportation by Amtrack trains is provided from nearby San Bernardino.
Trucking: Riverside is served by 73 motor carriers, of which 22 provide regular service.
Bus: Interstate: Greyhound Lines and Continental Trailways have a modern depot in downtown Riverside. Inter-City service is provided by buses of the Riverside Transit Authority, and the Southern California Rapid Transit District.
Highways: U.S. 60 east-west freeway connecting to Los Angeles, Indio-Palm Springs and Phoenix.
California 91 north-south connects Riverside to Orange County and Pacific Ocean Beach cities and to San Bernardino and Las Vegas. U.S. 395 connects Riverside to Reno to the north and San Diego to the south.
Municipal Services and Facilities The City of Riverside maintains high standards in its provision of a wide range of municipal services and facilities. These include recreational and cultural facilities; refuse collection and disposal; street and storm sewer maintenance; traffic engineering; on-and off-street parking; a municipal airport; and various forms of engineering.
There are 645 miles of streets, 625 miles of street lights, 9 fire stations with a staff of 191, and a police force of 297. The number of budgeted City employees is 1,464, of which 279 are in the Public Utilities Department.
33
CR
~1A.
The downtown pedestrian shopping mall.
Water: The municipal water system, operated as a separate self-supporting enterprise, serves 44,966 (including 378 irrigation) customers. The system serves all the area of Riverside, and some customers outside the City limits. The quality of the water and the service is high. Deep wells owned by the City are the chief source of water.
Sp i y e
- The0 s Public Works Department operates a sewage collection, treatment and disposal system, with 900 miles of sewer lines.
Non-Municipal Utilities Natural gas service to the City is provided by the Southern California Gas Company.
Telephone service to the City is provided by the Pacific Telephone Company.
Community Facilities Medical: Riversidess our general hospitals with a bed capacity of 1,000; 210 physicians and surgeons, and 104 dentists.
Recreational:
Recreational facilities include 23 public parks totalling more than 550 acres, 11 playgrounds, 15 public swimming pools; 8 Community Center alls; two Private and two municipal 34
golf courses in the City (one 18-hole and one 9-hole) and five other golf courses nearby. The Riverside International Raceway draws crowds of over 80,000 to major car races. Within one hour's drive is Lake Arrowhead, Big Bear Lake mountain resorts, Idyllwild mountain resorts, Palm Springs and the Coachella Valley, Disneyland, Los Angeles and the beach cities.
Cultural: There are numerous cultural organizations in the City, prominent among which are the Riverside Opera Association (the only opera company in Southern California ouside the Los Angeles area), the semi-professional Riverside Symphony Orchestra, the Riverside Concert Band, the Riverside Chorale, the Riverside Community Players (an amateur theatrical group claiming to have the longest continuous existence -
since 1925 -
in the U.S.), and the Riverside Art Association.
There are also 106 churches, five newspapers, three radio stations seven television channels received direct and a cable system, nine theatres and five libraries.
EDUCATIONAL FACILITIES The City of Riverside is a major educational center with both public, private and parochial institu tions providing instruction at all levels.
Higher Education: Within the City of Riverside are five well-established institutions of higher education. All of these institutions are projecting substantial increases in enrollment in the years ahead and several have already purchased acreage for future expansion.
INSTITUTIONS OF HIGHER LEARNING IN RIVERSIDE, 1976 1976 Campus Name of Institution (Founded)
Enrollment Acreage Degrees Awarded University of California (1954)..........
5,071 2,200 Bachelor's, Master's, Doctorate Riverside City College (1916)--------
13,571 82 Associate in Arts Loma Linda University (1920)--------
2,185 460 Bachelor's and Master's Pepperdine University (1937)----------
300 Bachelor's California Baptist College (1950) 822 75 Bachelor's Public Primary and Secondary Schools: The City of Riverside is included in and is served primarily by the Riverside Unified School District. The District has 22 elementary schools serving 11,959 pupils in kindergarten through sixth grade, five middle schools (Grades 6-8) with a total of 3,926 pupils, and four senior high schools (Grades 9-12) with 8,297 pupils in the fall of 1976.
Part of Riverside is within the Alvord Unified School District which also serves the Country area southwest of the City. This District has 8 elementary schools (K-5) with 4,309 pupils, 2 intermediate schools (Grades 6-8) with 1,729 pupils, and 2 senior high schools (Grades 9-12) with 2,931 pupils.
There are 17 parochial and private schools serving the City of Riverside and environs. Riverside is also the home of the California State School for the Deaf (elementary through high school) and the Sherman Indian High School, a Federal school for Indian children (elementary through high school) with emphasis on occupational training.
Private Primary and Secondary Schools:
Riverside has some 17 private and parochial schools serving the3school age population from kindergarten through grade 12.
35
STATEMENT OF DIRECT AND OVERLAPPING DEBT CITY OF RIVERSIDE AS OF JUNE 30, 1976 Percentage City of Applicable Riverside's to City of Share of Governmental Agency Riverside(1)
Debt City of Riverside........................................
100.000 % $ 5,435,000 County of Riverside----.................................
21.713 191,077 School Districts:
Riverside Unified..............................
89.9291 -
91.4922 17,931,140 Riverside Community College...............................
66.6133 1,685,316 Alvord Unified................................
90.0162 -
93.9206 4,251,404 Highgrove School.......................................
33.8828 33,529 Jurupa Unified.....
0051 155 Moreno Valley Unified....................................
2.0378 27,543 Other Special Districts:
Flood Zone #1.........................................
75.7994 12,999,597 La Sierra Community Services.....................
100.000 345,000
-Metropolitan Water District (General Issues) 50.2151 173,242 Metropolitan Water District (Series W)..................2386
.9682 5,271,800 All Other Districts................................-.0001 -
2.6629 9,547 Total Overlapping Debt 42,919,350 Total Direct and Overlapping Debt ----
$48,354,350 (1) Determined by ratio of assessed valuation of property subject to taxation in overlapping agency to valuation of property subject to taxation in the City of Riverside.
(2)
Source: Riverside Finance Department.
36
Debt Ratios Direct Debt:
$ 5,435,000 Assessed Value (1975-76):
$ 442,448,526 Overall Debt:
$48,354,350 Estim. Basis of Assessment:
25%
Population (1976 estimate):
158,000 Estim. Market Value.
$1,770,000,000 Direct Debt Overall Debt Per Capita........................
$35.18
$312.97 As a % of Assessed Value...................................
1.23%
10.93%
As a % of Market Value.........
.31%
2.73%
Source: Riverside Finance Department.
Town and Country residential area street lights installed as part of a 4-year street light modernization program.
37
CITY OF RIVERSIDE ASSESSED VALUATION, TAX COLLECTIONS AND TAX RATES Per Cent of Current Total Year's Fiscal Property Taxes Ratio Fiscal Tax Received of TotalTARTE Year Net Total Collections Dun Colec ins Juned Asese Vauto 1 Current urrent to Tax City Of Overlapping Grand un 3V-(
Levy Y ear Levy Riverside A gencies Total 1960 -
$135,374,610
$1,301,539 98.2%
99.7%
$.9800
$5.9480
$ 6.9280 1961.... 141,284,070 1,356,192 98.0 99.8
.9800 5.9340 6.9140 1962......
151,974,890 1,484,533 98.2 99.7
.9800 6.2820 7.2620 1963 ---
168,784,740 1,874,818 98.0 99.0 1.1300 6.5541 7.6841 1964 174,159,558 1,988,663 99.1 100.8 1.1300 7.1633 8.2933 1965 208,212,010 2,367,185 97.9 100.6 1.1300 7.1822 8.3122 1966 229,864,720 2,551,313 95.5 98.2 1.1300 7.5756 8.7056 1967 245,304,650 2,733,801 95.3 98.6 1.1300 7.8343 8.9643 1968 258,300,630 2,929,107 96.8 100.4 1.1300 7.8639 8.9939 1969 266,816,310 3,034,217 97.3 100.6 1.1300 8.3294 9.4594 1970 279,265,432 2,955,321 95.9 99.9 1.1300 8.9250 10.0550 1971 296,740,661 3,105,231 96.7 99.8 1.1300 9.3000 10.4300 1972......
322,768,084 3,381,875 95.4 99.2 1.1300 9.5780 10.7080 1973 336,823,772 3,571,253 95.6 100.2 1.1300 9.6150 10.7450 1974 355,837,058 3,371,122 95.4 99.1 1.1300 9.3010 10.4310 1975 385,907,138 3,584,477 93.6 97.2 1.1300 8.9400 10.0700 1976 416,491,631 3,926,906 94.2 98.8 1.1300 9.8760 11.0060 Source: Annual Financial Reports of the City of Riverside.
(1) Total of Secured, Unsecured and Public Utilities Rolls, less Exemptions, except for the homeowners and business inventory exemptions. Basis of Assessment approximates 25%.
CITY OF RIVERSIDE CAPITAL IMPROVEMENTS Fiscal (Excluding Electric and Water Utilities)
Year Financed Ended June 30 Amount(1)
Bond Issues 1960 1,806,238 28.5%
1961 2,360,203 1962
2,051,375 1963 1,669,897 208 1964 2,582,224 501 1966-----------------
2,573,535 49.4 1967-------------------------------------------3,054,197 325 19 7...........
2,064,428 8 5 1968 3,881,394 40.4 1969------------------------------------------------2,346,348 17.0 1971 ----------------------------------------------
I---------------I--------2,223,000 25.5 1972 ---------------------------------------------------------------------
3,863,000 29.3 19 2 -----------------------------------------------------------
3,456,000 0 0 1973-3,331,000 0.0 1974----------------------------------------
3,581,270 33.8 1976................-----------------------------------------------------
4,235,310 0.0 1974,567,297 10.0 Total since 1959-----------------------------------49,646,716 (1) The sources of funds for these non-water and electric utility capital improvements include current City revenues, State, County, and Federal funds, in addition to bond proceeds.
38
--~..-1974-
CITY OF RIVERSIDE GENERAL CITY REVENUES BY SOURCE Fiscal Total Cear Property Taxes (Other Revenue Charges for Utility Licenses Interest EnYeradSevc ErledTax than Properay From Other Current Funds Fines and and and June 30 Collections Taxes)
Agencies(a)
Services Contrib.
Forfeitures Permits Rents Miscellaneous Total 1960..................
$1,321,623
$1,430,805
$ 982,054
$1,194,410
$ 635,068
$274,617
$ 489754
$194,562 80,693
$ 6,603,586 1961.....................
1,380,339 1,333,131 1,202,004 1,225,966 686,439 266,015 325,874 214,178 218,720 6,852,666 1962-....-.................2,484533 1,422,784 1011,718 1,401,968 705,963 276761 283617 247,620 44,801 6,879,765 1963...................
1,874,818 1,670,223 1,304,412 1,717,636 800288 306,477 347,746 283232 106,252 8,411,084 1964...............
1,988,663 1,796,379 1,627,142 1,943,119 848000 328,808 456,712 297,781 272,727 9,559,331 1965-...............
2,367,185 2,168.571 2,027,957 2,123,569 910,000 352,967 428,483 338,604 133718 10,851,054 1966...............
2,551,313 2,284707 2,306,480 2,006,619 1,036817 401,973 388,276 312,609 6,007 11374,801 1967-------------............
2,733,801 2,625,920 3184,525 1,969,271 1,196,824 439219 373,593 324,226 131,934 12,979,313 1968..................
2,929,107 3,156534 3,002,174 2,337,270 1,286,137 558,759 445033 390,919 167,459 14,273392 1969...............
3,034,217 3,387,657 3,097,471 2,981,145 1,482,447 741,036 491,477 417,422 197,197 15,830069 1970.....-----............
2,955,321 3,175,562 4:112,746 3,300,559 1,474,905 85520 516138 502561 629,071(b) 17,482,383 1971-----------............
3,105,231 4,467,556 4,989,054 3,718,821 1,593,686 767,014 678.236 414.178 1,4 37,992(e) 21,171,768 1972........-......... 3,381,375 5,399,837 4,810,909 4,472,785 1,727,061 788,031 901,053 373,878 1,160,446 22,015,375 1973..................
3,571,252 5,982,700 7,791,766 4,767,735 1.952,776 812,524 942.327 295.228 441,527 26,557,835 1974.................... 3,381,226 6,590,475 8,515,837 4, 135,233 2,125,460 680,328 1,541,745 625,335 201,351 27.796,990 1975-------------............
3,601,056 7,830,169 9,090,317 4,194,194 2,573130 684,006 154027388 643,510 205943 30.224,713 1976.........................
3,943,790 8,778,902 12,355,684 4,498,495 3,246,193 681,166 1,887,338 454657 263,568 36,109,793 GENERAL GOVERNMENT EXPENDITURES BY FUNCTIONS Fiscal Pubtic Works YeVar and Service General Redevel Ended (Including Public Parks and Govern-Retire-opment Debt June30 Sewage Disposal)
Safety Recreation Libraries mentHc)
Health(d) ment(c)
Agency Service Total 1,013,589 1,746,545
$ 869,598
$ 404,808
$ 465,617
$ 15,066
$ 390,960
$ 293,156 199,339 1961................3227,983 1,925,317 758,057 404,386 487.189 11,066 348.046 248,337 7,410.381 1962
............... 2,956,048 2,189,649 716,344 418,254 502,313 11,066 335,304 309.571 7,438.549 1963...............3,032,818 2,202,288 733,152 458,816 511,563 11,066 327,004 529405 7,806112 1964...............3,307,723 2,358,968 804,838 504,835 576,964 12,432 326,079 524,406 8,416,245 1965
............... 4,081,383 2,814,873 1,230,355 608,743 673,469 12,432 404,185 539,064 10,364504 1966................4,759,591 3,219,482 1,387,824 815402 892.615 15,984 453,067 662,871 12,206,836 1967...............
4,357,472 3,487,800 1,365,567 960,366 981,776 16,416 496,210 662,765 12,328,372 1968................6,772,085 4,547,188 16648,669 1,103,744 807,162 16,416 775290 15,670554 1969................5798,871 5,055,347 2,062,683 1,239,968 859,543 16,606 759,840 15,792,858 1970................6,203,020 5,772,856 1,959,148 1,361,634 987,883 17,243 851960 17,153744 1971................8020,349 7,221,463 2,183,272 1,433,876 1,046,909 17,000 871.810 20,794,679 1972................6924,613 7,607,995 2,919,621 1,604,443 1,274,562 17,810 924,783 21,273,827 1973_...............8803,160 8460,121 2,638,544 1,693,745 1,574,117 20,508 911.476 24,101,671 1974...............8,325,255 9,700,741 3,361,623 1,943,630 1,679,739 62.004 881,059 25,954,051 1975...............210533,995 10,589,169 4,627,649 2,193,857 2.023,538 56,140 849,761 30.874109 1976..............
10798,432 11,670,440 5,152,543 2,817,985 2,007,313 24,084 690,424 837,928 33,999149 (a)
Includes State-collected locally shared taxes.
(b) Includes $500,000 from sale of Sewer Revenue Bonds.
(c) Net after deduction of portion chargeable to functions paid from Special Revenue and Self-Supporting Funds. Beginning with 1967-68, General Government expenditures for insurance relating to employee benefits and Retiremnent expenditures are included wxith the expenditures shown for the various functions.
(d) Under State law, the County is required to provide basic health services in the City of Riverside. These expenditures represented only thle cost of additional services contracted for by the City.
(e) Includes $987,750 from sale of sewer bonds.
ANNUAL TAXABLE SALES OF ALL OUTLETS RIVERSIDE AND SIX ADJACENT CITIES AND FOUR COUNTY REGION CALENDAR YEARS 1963 THRU 1975
($ thousand current)
Location 1975 1974 1973 1972(g) 1971 1970 1969 1968 1967 1966 1965 1964 1963 C6oon(S..
8,704 65,765 57,414 47,678 39,987 37,411 34,572 29,758 31,226 29,989 30,951 29,754 28,285 Corona(R)................
94,736 87,223 77,662 68,123 59,762 53,114 50,656 46,909 38,550 35,404 34,838 30,855 27,517 Norco(R).................
14,132 11,316 9,889 7,601 5,101 4,539 4,031 3,362 2,695 2,448 2,249 nl Redlands(S)..----.
84,060 79,235 77,559 70,506 62,787 61,420 59,781 53,746 52,181 50,829 48,787 44,841 39,048 Rialto(S)...............
57,040 60,327 51,796 45,689 39,883 36,651 35,966 28,211 26,424 24,590 24,673 22,633 20,193 Riverside(R)..............
506,560 462,346 436,677 394,940 349,816 307,068 296,378 264,213 207,064 236,882 218,693 208,714 178,279 San Bernardino(S)........... 546,717 504,399 498,886 449,472 398,836 370,781 342,537 316,243 282,807 261,936 255,475 263,239 246,898 Total -
Seven Cities.......
1,371,949 1,270,611 1,209,883 1,084,009 956,172 0,984 823,921
,2 6,87 2,
615,666 60 540,220 LosAngle Cont--.......
4,62,95 3,85,2621,2044018, 8
83,91 i42,442 6 40,987
-642,078 615,66 Los Angeles County---...... 24,662,095 23,285,926 21,220,440 18,780,882 16,537,703 15,839,730 15,953,701 14,783,389 13,575,243 13,397,815 12,393,267 12,178,719 11,411,081 Orange County----------.......
5,751,433 5,210,519 4,701,633 3,931,107 3,263,344 2,876,776 2,732,289 2,391,968 2,006,977 1,829,456 1,657,952 1,566,955 1,367,460 aRiverside County...
1,502,113 1,369,029 1,274,508 1,119,295 943,452 828,578 783,598 700,738 598,735 588,297 563,744 538,802 480,236 San Bernardino Countye... 1,977,173 1,823,841 1,686,423 1,472,978 1,258,663 1,171,515 1,113,188 1,011,146 877,687 861,623 815,926 803,663 719,867 INDICATORS 33,892,817 31,689,315 28,883,004 25,304,262 22,003,162 20,716,599 20,582,776 18,887,241 17,058,642 16,677,191 15,430,889 15,088,139 13,978,644
(% 7 Cities)............. 36.9%
36.4%
36.1%
36.4%
36.6%
35.3%
36.0%
35.6%
32.9%
36.9%
35.5%
34.8%
33.0%
River1964 1963 Riverside
........1.5%
1.5%
1.5%
1.6%
1.6%
1.5%
1.7%
1.4%
1.2%
1.4%
1.4%
1.4%
1.3%
(7 Citiess)
M% 4,Counties)......
4.0%
4.0%
4.2%
4.3%
4.3%
4.2%
4.0%
3.9%
3.8%
3.9%
4.0%
4.0%
3.9%
Source: Board of Equalization, State of California: TRADE OUTLETS AND TAXABLE SALES (misc. fiscal year summaries).
Note -Due to differences in collection and estimation techniques by the State, figures from year to year are not exactly comparable..
Note n -Refers to the fact that no data were reported for Norco prior to 1965 due to the fact that it had not been incorporated.
Note g -Refers to fact that 6 months of the Fiscal 1972 taxable sales includes gasoline which is now taxed by the State.
29,754 28,28
General The City of Riverside is the County seat of Riverside County and located in the western portion of the County about 57 miles east of downtown Los Angeles, about 39 miles east of Santa Ana and about 87 miles north of San Diego. Within 10 miles of Riverside are found other major cities: San Bernardino, Corona, Norco, Fontana, Rialto, Colton, and Redlands. These cities fall into the two Counties of Riverside and San Bernardino which, due to the concentration, of economic activities in close proximity, is referred to as the Riverside-San Bernardino-Ontario Standard Metropolitan Statistical Area (SMSA).
The Eight Cities, including Riverside, represent an important economic area of the state and of Southern California. These cities lie to the west of the strategic San Gorgonio Pass and to the south of the strategic Cajon Pass. Through these pass the major rail, interstate highways, water, and other networks which converge to connect the Los Angeles area with other areas of the County. Riverside is in a unique location at the crossroads of such commerce and in close proximity to economic centers in Los Angeles and Orange Counties.
The valley near Riverside is also highly developed agriculturally, however, to the east and north are some of the largest expanses of desert found in the United States. The valley area comprising the Eight Cities is relatively small geographically in comparison to the area of both Counties, yet most of the population is located here.
Both Counties make up a land area (27.4 thousand square miles), larger than the State of Virginia; Riverside County alone is larger than the State of New Jersey.
Local Government and Services The City of Riverside was incorporated October 11, 1883, and has been a Home Rule Charter City under a Council-Manager form of government since 1953. The City Council is made up of seven members elected for four year terms from the seven wards of the City. The Mayor is elected at-large to a four year term to preside over the Council but not to vote.
The City provides a broad range of services including water, sewer, power, and refuse disposal.
The City had about 1,464 budgeted positions in 1976, operating in six service areas: Environmental Services (sewerage, solid waste, planning, urban beautification); Recreation, Social and Cultural Services (recreation, libraries, museums, health, social, cultural, and employment programs); Safety Services (Police, Fire, building and zoning regulation, street lighting, animal regulation, and civil defense); Transportation Services (public transportation, streets, parking, and airports); Utility Services (electric and water distribution and production); and Management and Support 'Services (administration, finance, engineering, public works, public services).
Employees of the City are participants in the State of California Public Employees' Retirement System to which contributions are made by both the City and the employee. The City's contributions and amounts withheld from employees are in accordance with directives of the Retirement System and such funds are remitted to the system monthly.
The City purchases power from Southern California' Edison and from Nevada Power Company and services about 58,000 customers. The water system operates from City-owned wells and water rights, supplemented as appropriate by sales from the Metropolitan Water District of Southern California.
The water system serves over 44,000 customers. Private investor-owned utilities provide gas and telephone service to the City.
The Riverside Unified School District with 22 elementary schools, 5 middle schools, and 4 senior high schools, serves most of the City's residents. The 1976 combined enrollment was about 24,182.
Alvord Unified School District serves the southwestern portion of the City. The City also has 17 parochial and private schools, the California School for the Deaf, and the federal Sherman Indian High School.
41
Among the institutions of higher learning located in Riverside are the University of California and four other institutions.
Population Riverside has experienced a continuous growth since 1950 of nearly 4,000 per year. The 1950 Census estimated the population at 47,764; the 1960 Census at 84,332; the 1970 Census at 140,089; the California Department of Finance estimated the population of the City to be about 154,500 in January, 1976. The City has grown from a size of about 39.2 square miles to about 71.6 square miles over the period. While the rate of growth from 1970 to 1976 was less than that of the period since 1950, the City has grown at a rate faster than the State, the Four Southern California Counties, and the Counties of Riverside and San Bernardino. Since 1950, only one neighboring city, Rialto, has exceeded the City's rate of growth. While the City's geographic area increased by over' 80% since 1950, most of the areas were developed since annexation.
The City of Riverside is the largest city in Riverside County, and is the largest city in the Riverside San Bernardino-Ontario Statistical Metropolitan Area (SMSA), comprising the Counties of Riverside and San Bernardino. Relative to the Four Southern California Counties, the City represented about 1.00% of the population in 1950, yet by 1976 represented about 1.56% of such population.
COMPARATIVE POPULATION CITY OF RIVERSIDE, EIGHT CITIES, RIVERSIDE-SAN BERNARDINO-ONTARIO SMSA 1950, 1960, 1970, and Estimated on January 1976 Average Annual Rate of Growth April April April January Long-Term Recent 1950 1960 1970 1976 1950-76 1970-76 Colton 14,465 18,666 20,016 18,900 1.04%
(0.99%)
Corona...................................
10,223 13,336 27,519 31,250 4.43 2.24 Fontana.
(1) 14,659 20,673 23,850 n.a.
2.52 Norco (1)
(1) 14,511 17,400 n.a.
3.21 Redlands........................
18,429 26,829 36,355 35,450 2.57 (0.44)
Rialto 3,156 18,567 28,370 31,150 9.30 1.64 RIVERSIDE...................
46,764 84,332 140,089 154,500 4.75 1.72 San Bernardino......................
... 63,058 91,922 106,869 102,300 1.90 (0.76)
Eight Cities 156,095()
68,311(1) 394,402 414,800 1.76 0.88 Other Areas, Cities................
295,593(1) 541,471(1) 746,905 821,100 4.05 1.66 Riverside-San Bernardino SMSA..
451,688 809,782 821,235,900 3.99 1.39 Four Southern California Counties-4,819,599 7,552,478 9,602,318 9,921,500 2.84 0.57 California....................
10,586,223 15,717,204 19,953,134 21,240,000 2.74 1.09 (1) Norco and Fontana were unincorporated at the time of the 1950 Census; Norco was also unin corporated during the 1960 Census and the Eight City total in 1950 and 1960 is only for the respective incorporated cities; difference is applied in those years to Other Areas, Cities.
SOURCE:
Bureau of the Census, U.S. Department of Commerce: CENSUS OF POPULATION (1950, 1960, 1970, and through the publication of document PC (V1)-6); January 1976 estimates are those of the Population Research Unit, California Department of Finance in Report 76E-1, dated May 14, 1976.
42
Housing The City of Riverside realized substantial and continuous growth of its housing stock from 1960 to 1975, mainly from new construction and, to a limited extent, from annexation.
The total housing stock of the City at the time of the 1960 Census was about 28,600 units; by the time of the 1970 Census, the stock was estimated at about 45,312 units, an increase of 16,712 units (58%).
During those 10 years, 9,414 new units were authorized for construction, as indicated by building permits. The difference between the stock increase and the building permit figures was due to annexations, conversions, replacements, and construction in progress. In the five years 1970 through 1974, about 7,794 dwelling units were authorized by building permits, which would indicate a,17.2%
expansion, noting that the land area has remained the same over the period. The Riverside County Planning Department estimated the January, 1975 housing stock of the City at 54,031 units, the January, 1976 stock at 54,609 units and the January, 1977 stock at 56,246 units.
Over the fifteen years 1960 through 1974, about 32% of the units authorized by building permits in the Eight Cities were authorized in the City of Riverside. About 43% of the units authorized in the City were for single family units, however, there has been a trend to relatively more multi-family units.
Number of Dwelling Units for which Building Permits Were Issued CITY OF RIVERSIDE, EIGHT CITIES, RIVERSIDE-SAN BERNARDINO-ONTARIO SMSA Five Year Periods 1960 through 1974 Five Year Permit Periods Fifteen Average Per 1960-64 1965-69 1970-74 Years Year Colton.............................
803 343 463 1,609 107 Corona...........................................
2,971 950 1,870 5,791 386 Fontana..........................................
1,036 591 1,036 2,819 386 Norco........................................
N.A.
420 881 1,301 N.A.
Redlands.......................
2,968 374 1,221 4,563 304 Rialto..................
1,795 747 1,115 3,657 244 RIVERSIDE..................................
5,993 3,421 7,794 17,208 1,147 San Bernardino..............................
12,139 1,539 3,145 16,823 1,122 Eight Cities.....---.-.-..
27,705 8,385 17,525 53,771 3,585 Other Areas, Cities.......................
63,132 25,995 50,797 139,768 9,318 Riverside-San Bernardino SMSA.........................................
90,837 34,380 68,322 193,539 12,903 Four Southern California Counties---.-.----...-......................
640,605 304,372 412,079 1,357,056 90,470 California.......................................
1,212,316 730,899 1,079,237 3,022,452 201,497 SOURCE: Derived from data published by Bureau of the Census, U.S. Department of Commerce, "Construction Reports" (Series C40, annual, Washington, D.C.).
43
Income and Commerce The City of Riverside's relative wealth is reflected in the Table below, based upon family income distributions in 1970. The distribution of income was more closely like that of the state as a whole for families. The average family income was second only to Redlands in the Eight Cities, and was above that of Riverside-San Bernardino-Ontario SMSA; the relative number of families characterized as poverty level in 1970 represented 8.3% of families; this was close to that of the state as a whole (8.4%), that of the Four Southern California Counties (8.0%), but well below that for the SMSA (10.3%)
The City's income distribution, as indicated by 1970 Census data, was characterized as equitable.
Total personal income of the SMSA increased about 40.5% from 1970 through 1974 (the most recent date available) due both to increases in population as well as to increased per capita income.
The SMSA per capita personal income increased about 33% from $3,650 in 1970 to $4,851 in 1974.
The total personal income of the SMSA represented about 4.7% of the state's total personal income.
Assuming per capita incomes in the City of Riverside increased at the same rate as that of the SMSA, the City's total resident personal income in 1974 would be about 47% above that in 1970.
Due both to location and to a large resident market, the City of Riverside is the major commercial center in the SMSA. The City's commercial activities, as indicated by total taxable retail sales, make up populationrepresented about 12.4% of the SMSA and about 0.72% of the state population respectively, idctng a concentration of commercial activities.
Comparative Family Income Characteristics CITY OF RIVERSIDE, EIGHT CITIES, RIVERSIDE-SAN BERNARDINO-ONTARIO SMSA 1969 Family Incomes Reported in 1970 Per Cent of Families By Group Family Income Indicators Under
$5,000-
$8,000-
$15,000 Number of Mean Per Cent
$5,000
$7,999
$14,999 and over Families Income Poverty Colton-------------------
28.0%
19.4%
42.2%
10.4%
4,975
$ 8,846 15.4%
Corona.-------------..-..-
15.5 17.6 44.5 22.4 6,770 11,366 7.4 Fontana-----------------
19.8 16.0 45.1 19.1 5,313 10,462 9.4 Norco......--------------.......... 12.7 16.1 51.5 19.7 3,557 11,449 7.5 Redlands.--------------
15.1 17.1 36.1 31.7 9,001 12,850 7.7 Rialto-----------------...........
13.2 15.2 49.9 21.7 7,228 11,259 7.0 RIVERSIDE......-----.......
17.0 15.8 41.5 25.7 34,838 11,914 8.3 San Bernardino------.--.-
24.2 21.0 38.1 16.7 25,852 10,003 12.8 Eight Cities.---------- 18.9%
17.6%
41.5%
22.0%
97,534
$11,155 9.7%
Other Cities, Areas.......... 23.8 19.7 38.9 17.6 194,039 10,138 10.6 Riverside-San Bernardino SMSA()---------22.2%
19.0%
39.8%
19.0%
291,573
$10,478 10.3%
Four Southern California Counties(2)--------16.0%
15.6%
40.4%
28.0%
2,421,966
$12,639 8.0%
California------------16.8 16.0 40.5 26.7 5,001,255 12,227 8.4 (1) Riverside-San Bernardino-Ontario SMSA is the Standard Metropolitan Statistical Area composed of the Counties of Riverside and San Bernardino.
(2) Four Southern California Counties are those of Los Angeles, Orange, Riverside, and San Bernardino.
SOURCE:
Social and Economic Statistics Administration, Bureau of the Census, U.S. Department of Commerce: "General Social and Economic Characteristics California" (Series PC(1)-C6, April, 1972).
44
Resident Total Personal Income RIVERSIDE-SAN BERNARDINO-ONTARIO SMSA 1970 Through 1974 1970 1971 1972 1973 1974 Net Labor and Proprietor's Income(1)..........
$ 2,743,335
$ 2,876,728 $
3,119,245
$ 3,405,329
$ 3,687,310 Residence Adjustment(1)...................
234,521 240,016 262,039 288,257 315,433 Dividends, Interest, Rent......-...-......................
604,698 634,265 665,003 737,049 831,995 Transfer Payments.......
608,622 701.633 767,440 866,320 1,053,133 Total Resident Personal Income-...............$
4,191,176
$ 4,452,642 $ 4,813,727
$ 5,296,955
$ 5,887,871 (Per Capita)............................
(3,650)
(3,827)
(4,091)
(4,441)
(4,851)
Four Southern California Counties.................
$43,997,225
$46,049,914
$ 49,491,980
$ 54,510,917
$ 60,133,435 (PerCapita).......................
(4,576)
(4,749)
(5,113)
(5,601)
(6,136)
California...........................
$89,892,445
$95,335,942
$102,946,979
$113,403,958
$126,116,710 (Per Capita)............--.-...
(4,493)
(4,711)
(5,044)
(5,491)
(6,032)
(1) Net labor and proprietor's income by place of work includes wage and salary and proprietor's income by place of employment (Riverside and San Bernardino Counties) less personal contributions for social insurance. The residence adjustment when added to net labor and proprietor's income by place of work provides the net labor and proprietor's income by place of residence (Riverside and San Bernardino Counties).
SOURCE: Derived from data published by Bureau of Economic Analysis, U.S. Department of Commerce: "Regional Economics Information System", Table 5.00.
45
EMPLOYMENT While no annual information is available on employment in the City of Riverside, -information for the SMSA indicates that since 1970 employment has increased about 20%, from 379,000 in 1970 to about 453,400 in December, 1976; the labor force expanded relatively more, reflecting increases in population, changes in population composition, and increased labor force participation rates, notably by women. While the population growth of the SMSA averaged about 1.4% annually over the period, the labor force grew at an average of 3.1%
annually and total employment at the rate of 2.8%
annually. The rate of unemployment varied over the period with 7.4% in 1970 and 9.8% in 1975; this compares with that of the State as a whole with 7.3% in 1970 and 9.9% in 1975.
The most important wage and salary employment sectors are trade and services which now make up almost 45% of all such, employment. Government makes up about 26% of all such employment.
The County government centers in Riverside and in San Bernardino as well as the presence of two t
major Air Force bases, March Air Force Base south of Riverside and Norton Air Force Base near San Bernardino explain the importance of this sector.
The City of Riverside is located near the center of the growing industrial, commercial, and trans portation center east of Los Angeles. As the largest city in Riverside County and as County seat, local, County, State, and Federal government offices are located here. The City is an important industrial center for the manufacture of aluminum, transportation equipment, recreation vehicles, mobile homes, electronics and aircraft components. The City has over 2,900 acres zoned for industrial use and there are 96 manufacturing plants in the City. Many industrial properties are served by two, if not three transcontinental railroads: Union Pacific, Southern Pacific, and Santa Fe. There are nine local freight trains daily for the City which together with 73 common carrier trucking firms provide ideal regional, intrastate, and inter-state transportation for the benefit of local industry.
While the area has been undergoing strong urbanization for many years, vast tracts of citrus groves remain in and adjacent to the City, providing for an important agricultural industry. As well, there are grapes, truck crops, deciduous orchard crops, live stock, poultry, eggs, and dairy activities.
Non-Agricultural Wage and Salary Employment RIVERSIDE-SAN BERNARDINO-ONTARIO SMSA By Sector, Annual Averages 1970 through 1975 (thousands)
Sector 1970 1974 1975 Mining...........
2.4 2.6 2.4 Contract Construction................................--------------------
14.2 14.9 12.4 Durables -
Manufacturing........
13.3 14.8 14.0 Non-Durables -
Manufacturing......--------------------------------------....
39.4 41.5 37.1 Transport/Communications/Utilities...........------------------...
17.4 19.1 18.6 Wholesale Trade-------..................--.-----------------------
10.3 12.5 13.0 Retail Trade...............--
55.7 65.8 67.9 Finance/Insurance/Real Estate.
9.9 12.0 12.1 Services.......................................
55.4 66.9 68.7 Government 75.7 83.5 88.2 Total---
293.7 333.6 34.4 SOURCE: Employment Development Department, State of California, "Wage and Salary Workers in Non-Agricultural Establishments, By Industry, Riverside-San Bernardino-Ontario Metropoli tan Area" (Part A: 1966-1975).
46 737.1
Labor Force, Employment, and Rate of Unemployment RIVERSIDE-SAN BERNARDINO-ONTARIO SMSA 1970 through 1975, December, 1976 (thousands)
Labor Rate of Employment Force Unemployment (State Rate) 1970 9
7 0
379.0 409.0 7.4%
(7.3%)
1971.
388.0 428.0 9.4 (8.8%)
1972.............
..... 409.0 441.0 7.3 (7.6%)
1973....-------.--................
427.0 458.0 6.4 (7.0%)
1974.............
..... 444.0 486.0 8.6 (7.3%)
1975--....................
440.0 488.0 9.8 (9.9%)
Dec. 1976..........
453.4 497.4 9.4 adj.*
(9.1%) adj.*
- "adj." means the monthly rate adjusted for seasonal variation.
SOURCE: Employment Data and Research, State of California.
A typical home in the City of Riverside.
4'
APPENDIX I ECONOMY ENERGY AGREEMENT between NEVADA POWER COMPANY and CITY OF RIVERSIDE, CALIFORNIA THIS AGREEMENT, entered into this 1st day of June, 1976, hereinafter referred to as "Agree ment", by and between NEVADA POWER COMPANY, a corporation, hereinafter referred to as "Nevada", and CITY OF RIVERSIDE, a California municipal corporation, hereinafter referred to as "Riverside", both of which are hereinafter referred to individually as "Party" and collectively as
Parties
WITNESSETH:
WHEREAS, Nevada is engaged in the generation, distribution, and sale of electric power and energy in the State of Nevada and is interconnected with the transmission system of the Southern California Edison Company (Edison) at Eldorado Substation in Southern Nevada; and WHEREAS, Riverside is engaged in the purchase, distribution, and sale of electric power and energy in the State of California and has contracted with Edison for transmission service; and WHEREAS, Riverside and Nevada desire to interchange energy in order to achieve greater gen erating efficiency and reduce the dependence on oil-fired electric generation; NOW, THEREFORE, it is hereby agreed as follows:
- 1. This Agreement will take effect on July 1, 1976, and shall continue in effect until June 30, 1980, and thereafter, if necessary, until Nevada's obligations pursuant to this Agreement have been fulfilled. A Contract Year shall be any twelve (12) month period beginning July 1 of any calendar year and ending June 30 of the succeeding calendar year.
- 2. While the Parties contemplate that approximately 65,000,000 kilowatt-hours will be delivered each Contract Year, Nevada shall be obligated to supply and Riverside shall be obligated to receive not less than two hundred million (200,000,000) kilowatt-hours over the term of this Agreement at rates of delivery between zero and Riverside's total system requirements at the time. Nevada shall supply such economy energy to Riverside in accordance with hourly schedules to be agreed upon between the schedulers or load dispatchers of Edison, acting on behalf of Riverside and Nevada.
- 3. The Point of Delivery for the energy supplied hereunder will be at the 500 Kv transmission system of Edison at the Eldorado Substation near Las Vegas, Nevada. Riverside will be respon sible for transmission arrangements with Edison.
- 4. Power transactions hereunder shall be accounted for on the basis of scheduled hourly quantities.
The dispatcher involved in the transactions shall maintain records of hourly load schedules for accounting and operating purposes.
- 5.
(a) The charge per kilowatt-hour for economy energy scheduled for delivery at the Point of Delivery shall be Incremental Generating.Cost of Nevada plus the following percentages of the difference between such cost and the Decremental. Value to Riverside in displacing other purchases:
(1) fifteen percent (15%) for the Contract Year beginning July 1, 1976; (2) twenty-five percent (25%) for the Contract Year beginning July 1, 1977; 48
(3) thirty-five percent (35%)
for the Contract Year beginning July 1, 1978; and (4) forty-five percent (45%) beginning July 1, 1979, and during the remaining term of this Agreement.
(b) The Incremental Generating Cost shall be the sum of:
(1) The estimated cost of incremental fuel consumed in generating such energy; and (2)
The incremental cost of operating (other than fuel) and maintaining such generating unit(s), which shall be deemed to be 1.0 mill per kilowatt-hour.
(c) The Decremental Value shall mean the expense per kilowatt-hour as determined by the following formula:
A=B-C D
where: A = Decremental value.
B = cost per kilowatt-hour that would have been incurred in purchasing such energy from others.
C = the cost per kilowatt-hour for transmission service paid by Riverside to Edison for energy delivered to Riverside.
D= 1.0000 plus the percent loss on deliveries over Edison's system expressed as a decimal.
(d) Each Party shall make available its basis, including calculations and work papers, for determining Incremental Cost or Decremental Value upon request of the other Party.
- 6. On or before July 1, 1976, Riverside will pay Nevada two million five-hundred thousand dollars ($2,500,000.00) as a partial payment for energy to be 'supplied hereunder. It is under stood that such payment is a condition precedent to this agreement and if the condition is not met neither Party shall be obligated to the other. Beginning July 1, 1977, charges as determined pur suant to Article 5 shall be debited to Riverside until such partial payment has been utilized in full.
- 7. Nevada shall send a statement to Riverside for energy delivered in each month not later than the 15th day of the following month. Riverside shall pay to Nevada any amounts due by placing payments in the mail within twenty (20) days after the receipt of each bill. Amounts billed by Nevada and not so paid on or before the due date shall be payable with interest accrued at the rate of one percent (1%)
per month of the unpaid balance prorated by days from due date to date of such payment.
- 8.
(a)
Nevada hereby guarantees that the difference between the costs that would have been incurred by Riverside in purchasing such energy from its present supplier and the total of:
(i) the sum of the payments to Nevada pursuant to Article 7 and the debits to Riverside pursuant to Article 6; and (ii) the sum of the payments by Riverside to its present supplier for the trans mission of energy supplied by Nevada shall not be less than the following amounts:
(1) $300,000.00 for the period beginning July 1, 1976 and ending June 30, 1977; (2)
$590,000.00 for the period beginning July 1, 1976 and ending June 30, 1978; (3)
$840,000.00 for the period beginning July 1, 1976 and ending June 30, 1979; and (4) $1,100,000.00 for the period beginning July 1, 1976 and ending June 30, 1980.
(b) The above amounts shall be reduced by the difference between (i) the Decremental Value multiplied by the kilowatt-hour deliveries by Nevada to Riverside pursuant to the letter agreement dated April 2, 1976 and (ii) the payments to Nevada pursuant to such letter-agreement 49
(c) If at the end of any Contract Year, insufficient economy energy has been scheduled and delivered to Riverside to produce the guaranteed cost difference set forth in this Article 8, then Riverside at its option may either (i) bill Nevada for the amount of the deficiency and Nevada shall make payment using the same terms as Article 7 or (ii) elect to treat such deficiency as an additional partial payment under Article 6.
- 9. If, on June 30, 1980, the debits specified in Article 6 have not equalled the $2,500,000.00 partial payment (adjusted if necessary in accordance with Article 8(c)), Nevada shall supply additional energy prior to December 31, 1980, priced in accordance with Article 5(a) (4) to meet such obligations.
- 10. The Parties hereby establish "Operating Representatives" to secure effective cooperation hicsystem planning and to deal on a prompt and orderly basis with the various operating problems which may arise in connection with delivery of energy under this Agreement.
The Operating Representatives shall consist of four (4) representatives, two designated by each Party, and each such representative shall be authorized on behalf of the Party designating him to act with respect
(
to operating matters.
- 11. A waiver at any time by a Party of its rights with respect to a default under this Agree ment, or with respect to any other matter arising in connection with this Agreement, shall not be deemed a waiver with respect to any subsequent default or matter.
- 12.
(a) Each Party shall be excused from performance of any obligation contained herein, if, but only to the extent and during the time that, performance thereof by such Party shall be prevented by the existence of Uncontrollable Forces.
A Party rendered unable to fulfill any obligation by reason of an Uncontrollable Force shall exercise due diligence to remove such inability with all reasonable dispatch and keep the other Party fully informed of changes in con ditions as far in advance as possible. An Uncontrollable Force means any cause which a Party could not reasonably be expected to avoid by the exercise of reasonable diligence and foresight, including, but not limited to, storm, flood, drought, freeze-ups, icing conditions, lightning, earth quake, landslide, fire, explosion, failure or unavailability of facilities not due to lack of proper care or maintenance, civil disturbance, labor disturbance, sabotage, war, national emergency, and restraint by court or public authority, or inability to obtain or ship materials, supplies, or equip ment because of the effect of similar causes on suppliers or carriers. If such Uncontrollable Force makes the continued performance of this Agreement unfeasible, either Party may terminate this Agreement by giving the other Party at least 90 days' written notice.
(b) Notwithstanding any other provision of this Agreement, Riverside shall have the right to terminate this Agreement upon 90 days' written notice if Nevada fails to supply 50,000,000 kilowatt-hours in any Contract Year, provided that, if Nevada delivers more than 50,000,000 kilowatt-hours in either the second or third Contract Year, such excess kilowatt-hours may be applied to reduce the number of kilowatt-hours otherwise deliverable pursuant to this Article 12(b) in the subsequent Contract Year.
(c) In the event of a termination of the Agreement pursuant to Article 12(a) or 12(b),
Nevada shall be obligated to pay Riverside on the date of such termination (but not sooner than July 31, 1977) the amount of any unutilized partial payments plus any unrealized guaarnteed savings for the year of termination on a prorata basis. Unless there is a termination pursuant to Z4, Article 12(a) or 12(b) or by mutual agreement, Nevada shall not be relieved of its obligations pursuant to Article 9.
- 13. The several provisions of this Agreement are not intended to and shall not create rights of any character whatsoever in favor of any persons, corporations or associations other than the Parties. Any undertaking by one Party to another Party under any provision of this Agreement shall not constitute the dedication of the electric system or any portion thereof by any Party to 50
the public or to the other Party, and it is understood and agreed that any such undertaking shall cease upon the termination of such Party's participation in this Agreement.
- 14. Any written notice, demand, or request provided for in this Agreement, or given or made in connection with this Agreement, shall be deemed to be properly given or made if personally delivered or telegraphed or sent by registered mail, postage prepaid, to the person specified:
To or upon Nevada The Secretary Nevada Power Company Post Office Box 230 Las Vegas, Nevada 89151 To or upon Riverside -
Public Utility Director City of Riverside Post Office Box 826 Riverside, California 92502 A Party may at any time, by written notice, change the designation or the address or the person so specified. This Article does not apply to notices and requests of a routine character in connection with delivery or receipt of power or in connection with operation of facilities. Such notices and requests shall' be given in such manner as the Operating Representatives from time to time shall arrange.
- 15. This Agreement shall be filed with the Federal Power Commission but shall not be subject to unilateral application to the Federal Power Commission by either Party for changes in methods of determining costs or benefits to The Parties.
- 16. This Agreement shall be binding upon and inure to the benefits of the respective successors and assigns of The Parties.
IN WITNESS WHEREOF, The Parties have caused this Agreement to be executed by their duly authorized officers and their corporate seal to be affixed, as of the day and year first herein written.
NEVADA POWER COMPANY By A. E. PEARSON President ATTEST:
N. GENE MATTEUCCI CITY OF RIVERSIDE By BEN LEWIS Mayor ATTEST:
ALICE HARE City Clerk APPROVED AS TO FORM EDWARD DUDDY ASST. CITY ATTORNEY 51
NEVADA POWER COMPANY FOURTH STREET AND STEWART AVENUE P.O. BOX 230
- 89151 September 15, 1976 Mr. Everett C. Ross Public Utilities Director City of Riverside Post Office Box 826 Riverside, California 92502
Dear Mr. Ross:
On June 1, 1976, Nevada Power Company (Nevada) and City of Riverside, California (Riverside) entered into the Economy Energy Agreement. Nevada and Riverside now desire to provide for additional economy energy deliveries during the Contract Year beginning July 1, 1976 under the following terms and conditions:
- 1) Additional economy energy may be supplied in accordance with hourly schedules to be agreed upon.
- 2) Additional economy energy shall be energy delivered in excess of the greater of: (i) the first 50,000,000 kilowatt-hours delivered in Contract Year beginning July 1, 1976; or (ii) the energy delivered to realize the guaranteed cost difference set forth in Article 8(a) (1) as reduced pursuant to Article 8 (b).
- 3) The hourly charge for such additional economy energy scheduled for delivery at the Point of Delivery shall be Incremental Generating Cost of Nevada plus fifty percent (50%)
of the difference between such cost and the Decremental Value to Riverside in displacing other purchases.
- 4) Savings to Riverside resulting from such additional economy energy delivered shall not be credited against guaranteed savings as provided for in Article 8.
Except as provided above, the provisions of the Economy Energy Agreement dated June 1, 1976 shall apply.
This letter agreement is sent to you in duplicate. If the above terms and conditions are satisfactory to Riverside, please execute and return one copy to me.
Sincerely yours, NEVADA POWER COMPANY JOHN C. GIBBS John C. Gibbs Executive Vice President APPROVED:
CITY OF RIVERSIDE By BEN LEWIS Date September 28, 1976 APPROVED AS TO FORM Title Mayor EDWARD DUDDY Asst. City Attorney
/ ef Attest:
ALICE A. HARE In Duplicate City Clerk 52
APPENDIX 11 AGREEMENT FOR INTEGRATION AND TRANSMISSION OF NON-FIRM ENERGY PURCHASED, PURSUANT TO AN ECONOMY ENERGY AGREEMENT, BY RIVERSIDE FROM NEVADA POWER COMPANY BETWEEN SOUTHERN CALIFORNIA EDISON COMPANY AND THE CITY OF RIVERSIDE 53
AGREEMENT FOR INTEGRATION AND TRANSMISSION OF NON-FIRM ENERGY PURCHASED, PURSUANT TO AN ECONOMY ENERGY AGREEMENT, BY RIVERSIDE FROM NEVADA POWER COMPANY TABLE OF CONTENTS Section Page
(
I~
~~~~ Parties...........
2 R e c ita ls.....--
------------- - 5 5 3
Agreement.....als
5------------
.- 55 4 T e m.
nt. -------------------
55 4..........................................................
5 5
Definitions...
6 Integration of and Scheduling Non-Firm Energy ------------------.....
5 7
T r a n s m is s io n S e r v ic e 57 8
T r a n s m is s io n L o s s e s..
5 7 9
Billing and Payment..............-...-.........58 11 L abiity........................................................................................................
5 10 Release.
58 13 Liabili t
io of F clte -----------------------------------
58 14 L o riablity....
5 86 12 Rtegulator Authoriy......................
13 No Dedication of Facilities.----------..5 1 6 U n c o n t r oll a b l e F o r c es......................................
14 Governing Law....
.6 0 5
-15 Notices...............-....-.....60 16 Uncontrollable Forces 60 17 Signature Clause.......
60 61 54
AGREEMENT FOR INTEGRATION AND TRANSMISSION OF NON-FIRM ENERGY PURCHASED, PURSUANT TO AN ECONOMY ENERGY AGREEMENT, BY RIVERSIDE FROM NEVADA POWER COMPANY
- 1. Parties: The Parties to this Agreement are: The City of Riverside ("Riverside"), a municipal corporation of the State of California, and the Southern California Edison Company ("Edison"), a California corporation.
- 2. Recitals: This Agreement is made with reference to the following facts, among others:
2.1 The Parties and others have entered into the Settlement Agreement.
2.2 The Parties are currently in the process of negotiating a definitive integrated operations agreement, but do not expect to complete such negotiations, execute and make effective such agrec ment prior to the time Riverside will require integration of and transmission service for Non-Firm Energy which it proposes to purchase from Nevada.
2.3 Riverside now desires to purchase Non-Firm Energy from Nevada for operational integra tion into the Edison system, and has entered into the Economy Energy Agreement with Nevada.
2.4 Riverside desires to obtain from Edison, and Edison is willing to provide to Riverside, interruptible transmission service for such Non-Firm Energy over Edison's electrical transmission facilities between the Point of Attachment and the Point of Delivery.
2.5 Nevada has a capacity entitlement in certain transmission facilities connected to the Point of Attachment. Nevada has notified the Parties in writing that Nevada will deliver such Non-Firm Energy over such capacity entitlement to the Point of Attachment.
- 3. Agreement: In consideration of the mutual covenants contained herein, the Parties agree as follows:
- 4. Term: This Agreement shall become effective when executed by the Parties and accepted for filing by the regulatory agency having jurisdiction, and shall continue in force and effect until December 31, 1980, unless terminated earlier by (i) either Party upon 90 days advance written notice, (ii) final execu tion and acceptance for filing by the regulatory agency having jurisdiction of a definitive integrated operations agreement and the appropriate supplemental and transmission service agreements which cover the subject matter of this Agreement, or (iii) mutual agreement of the Parties.
- 5.
Definitions: The following terms, when used herein with initial capitalization, whether in the singular or the plural, shall have the meaning specified:
5.1 Agreement
This Agreement.
5.2 Economy Energy Agreement: Economy Energy Agreement between Nevada Power Com pany and the City of Riverside, California, dated June 1, 1976, under which Riverside shall purchase Non-Firm Energy from Nevada, a copy of which is attached hereto and made a part hereof.
5.3 Edison
Southern California Edison Company.
5.4 Nevada
Nevada Power Company.
5.5 Non-Firm Energy: Energy purchased by Riverside from Nevada pursuant to the Economy Energy Agreement.
5.6 Party
Riverside or Edison.
55
5.7 Point of
Attachment:
The 500 kV bus at Eldorado Substation where Nevada is deemed to deliver Non-Firm Energy to Edison for the account of Riverside.
5.8 Point of Delivery: The point where the electrical conductors of Edison connect with the 66 kV facilities of Riverside at the city limits of Riverside, and where the delivery of Non-Firm Energy takes place between Edison and Riverside.
5.9 Point of Interconnection: The 230 kV bus at Mead Substation where the electrical systems of Edison and Nevada are electrically interconnected and where the scheduling of Non-Firm Energy between Edison and Nevada is deemed to take place.
5.10 Riverside: The City of Riverside.
5.11 Settlement Agreement: The agreement between the Parties and others entered into on August 4, 1972, which was accepted by the Federal Power Commission, as set forth in Opinion No. 654, issued March 19, 1973, in Docket No. E-7618.
- 6. Integration of and Scheduling Non-Firm Energy:
6.1 Edison agrees to integrate operationally Non-Firm Energy with Edison's own resources so long as conditions on Edison's system permit.
6.2 The following procedures shall be used for scheduling such Non-Firm Energy.
6.2.1 Riverside and Nevada shall arrange for mutually agreeable quantities of Non Firm Energy and times when such Non-Firm Energy is to be available to be delivered. Schedules of Non-Firm Energy at the Point of Interconnection shall not in any hour exceed a rate of delivery in excess of Riverside's load (as estimated by Riverside for that hour and rounded to the nearest lower megawatt) plus losses to the Point of Delivery.
6.2.2 Nevada's dispatcher shall advise Edison's dispatcher, at least one-half hour in advance of the hour during which Non-Firm Energy is to be scheduled, of the arrangements proposed by Nevada and Riverside. Edison shall determine the amount of transmission capa bility, if any, which is available between the Point of Attachment and the Point of Delivery.
6.2.3 Upon agreement of the dispatchers of Edison and Nevada, hourly schedules for the delivery of Non-Firm Energy shall be made in accordance with procedures agreed upon.
in advance by the Edison and Nevada dispatchers. Such procedures shall conform to good electric utility practice.
6.2.4 If sufficient transmission capacity over and above Edison's own requirements to transmit firm or interruptible energy for sale to its customers is not available to accommodate all requests made to Edison for interruptible transmission service, all those making such requests shall agree upon a reasonable and practical method for allocating the service available to others. If agreement cannot be reached, Edison shall make such allocation.
6.3 Amounts of Non-Firm Energy shall be scheduled by Edison from Nevada at the Point of Interconnection and such amounts shall be deemed to be delivered by Nevada to Edison at the Point of Attachment.
6.4 Non-Firm Energy delivered by Edison to Riverside at the Point of Delivery in any hour shall be used to offset energy which otherwise would have been purchased by Riverside under Edison's partial requirements rate during that hour. Riverside shall be credited on its monthly bill for such Non-Firm Energy so delivered by Edison.
6.5 Riverside and Edison, solely for the purposes of and during the term of this Agreement, shall operate their systems in accordance with Exhibit A of the Settlement Agreement, which Exhibit A shall be deemed to be the integrated operations agreement for the purpose of implementing 56
the partial requirements rate, Schedule R-2, as set forth in the applicability clause of said Schedule; provided, that Riverside and Edison, for such purpose and term, waive the obligation contained in the second sentence of Section 4.11 of said Exhibit A which states, "Edison shall purchase. from City all energy which is excess to City's requirements at City's cost which cost shall include charges made by Edison and others to City for transmission service, plus 15 percent of such cost provided, that such energy is economically usable by Edison."
6.6 If Riverside's actual load.in any hour is less than that estimated by Riverside for that hour, and if the scheduled energy from Nevada during that hour is at a rate equal to the estimated load, Riverside shall receive credit for only that energy required to meet its actual load for such hour. Edison may, at its sole discretion, purchase all or part of the energy which is in excess of Riverside's actual load. If Edison chooses to purchase such excess energy, Edison shall pay for such excess energy at a rate per kilowatthour which is the lesser of (i) the rate paid per kilowatthour by Riverside to Nevada during that hour for energy purchased under the Economy Energy Agree ment as such rate is determined pursuant to Section 5 of said Economy Energy Agreement, (ii)
Edison's decremental energy value per kilowatthour for that hour, as established by Edison's dispatcher, or (iii) the average price per kilowatthour paid by Edison for economy energy pur chased from Arizona Public Service Company, Tucson Gas & Electric Company, Nevada Power Company and Salt River Project Agricultural Improvement and Power District during the preceding month. Such energy shall be deemed to be delivered by Nevada to Edison at the Point of Attach ment.
6.7 For scheduling and dispatching services provided in any month by Edison pursuant to this Agreement, Riverside shall pay to Edison the sum of $420 per month, regardless of whether Non-Firm Energy is scheduled during that month or not; provided, that such monthly charge shall be waived in the case of a month during which no communication pertaining to schedules under this Agreement is made between Nevada and Edison dispatchers. Such sum shall be re determined by Edison prior to January 1 of each year based on Edison's budgeted amounts of money for load dispatching and production section function expenses for that year. Any change in such sum, if required by the Federal Power Commission (FPC) to be filed as a rate change with the FPC, shall be made 30 days in advance of January 1, and Riverside agrees that such change may become effective without hearing. Such redetermined sum shall become effective on January 1 of that year and shall remain in effect until changed pursuant to the foregoing or changed pursuant to Section 12.3.
- 7. Transmission Service:
7.1 Subject to Sections 7.2 and 7.3, Edison shall provide interruptible transmission service to Riverside in accordance with schedules developed pursuant to Sections 6.2.3 and 6.2.4 over Edison's electrical transmission facilities between the Point of Attachment and the Point of Delivery.
7.2 The availability of interruptible transmission service hereunder shall be determined at the sole discretion of Edison, and Edison reserves the right to interrupt or curtail such service hereunder at any time and for any reason under notice given by Edison's dispatcher to Nevada's dispatcher.
7.3 Interruptible transmission service provided by Edison hereunder to Riverside shall not in any hour exceed a rate of delivery at the Point of Attachment in excess of Riverside's load (as estimated by Riverside for that hour and rounded to the nearest lower megawatt) plus losses to the Point of Delivery.
7.4 As payment for interruptible transmission service provided hereunder, Riverside shall pay Edison at the initial rate of 1.29 mills for each Kilowatthour delivered by Nevada to Edison at 57
the Point of Attachment for transmission by Edison to the Point of Delivery. Such initial rate shall be subject to change pursuant to Section 12.
- 8. Transmission Losses: Prior to determining Riverside's credit for the Non-Firm Energy delivered to Riverside by Edison, such Non-Firm Energy delivered to Edison by Nevada at the Point of Attach ment shall be reduced by 3.3 percent to reflect transmission losses from the Point of Attachment to the Point of Delivery.
- 9. Billing and Payment:
9.1 Edison shall render monthly bills for services provided hereunder during the preceding month. Such bills shall be due and payable by Riverside within twenty-five calendar days after receipt thereof.
9.2 Bills which are not paid in full by Riverside by said due date, by placing in the mail payment within twenty-five days, shall thereafter bear interest of 1 percent per month of the unpaid balance prorated by days until payment is so made; provided, that in no event shall such interest rate exceed the maximum rate permitted by law applicable to this Agreement.
- 10. Release:
10.1 The Parties recognize that the transmission service provided by Edison under this Agreement may be interrupted or curtailed by Edison, at any time and for any reason, at Edison's sole discretion.
Edison shall not be liable to Riverside, and Riverside hereby releases and indemnifies Edison for any claim, demand, liability, loss or damage, whether consequential, direct or indirect, suffered by Riverside, Nevada or others which results from such interruption of trans mission service under this Agreement.
- 11. Liability:
11.1 Except for any loss, damage, claim, cost, charge or expense resulting from willful action, no Party (First Party), its directors, governing bodies, officers or employees shall be liable to the other Party (Second Party) for any loss, damage, claim, cost, charge or expense of any kind or nature incurred by the Second Party (including direct, indirect, or consequential loss, damage, claim, cost, charge or expense; and whether or not resulting from the negligence of any Party, its directors, governing bodies, officers, employees or any person or entity whose negligence would be imputed to such Party) from (i) engineering, repair, supervision, inspection, testing, protection, operation, maintenance, replacement, reconstruction, use or ownership of the First Party's electric system, or (ii) the performance or non-performance of the obligations of any Party under this Agreement.
Except for any loss, damage, claim, cost, charge or expense resulting from willful action, the Second Party releases the First Party, its directors, governing bodies, officers and employees from any such
-W liability.
11.2 Except for liability resulting from willful action, any Party whose electric customer shall make a claim or bring an action for any death, injury, loss or damage arising out of electric service to such customer shall indemnify and hold harmless the other Party, its directors, governing bodies, officers and employees.from and against any liability for such death, injury, loss or damage. The term "electric customer" shall mean an electric consumer, except an electric utility system to whom power is delivered for resale.
11.3 For the purpose of this Section 11, willful action shall be defined as:
11.3.1 Action taken or not taken by a Party at the direction of its directors, governing bodies, officers or employees having management or administrative responsibility affecting its performance under this Agreement, which action is knowingly or intentionally taken or failed 58
to be taken with conscious indifference to the consequences thereof or with intent that injury or damage would result or would probably result therefrom.
11.3.2 Action taken or not taken by a Party at the direction of its directors, governing bodies, officers or employees having management or administrative responsibility affecting its performance under this Agreement, which action has been determined by final judgment or judicial decree to be a material default under this Agreement and which occurs or continues beyond the time specified in such judgment or judicial decree for curing such default or, if no time to cure is specified therein, occurs or continues thereafter beyond a reasonable time to cure such default.
11.3.3 Action taken or not taken by a Party at the direction of its directors, governing bodies, officers or employees having management or administrative responsibility affecting its performance under this Agreement, which action is knowingly or intentionally taken or failed to be taken with the knowledge that such action taken or failed to be taken is a material default under this Agreement.
11.3.4 Willful action does not include any act or failure to act which is merely involun tary, accidental or negligent.
11.3.5 The phrase "employees having management or administrative responsibility", as used in this Section 11.3, means the employees of a Party who are responsible for one or more of the executive functions of planning, organizing, coordinating, directing, controlling and supervising such Party's performance under this Agreement with responsibility for results.
- 12. Regulatory Authority:
12.1 This Agreement shall be subject to filing with competent regulatory authority, and to such changes or modifications as may from time to time be directed by such authority in the exercise of its jurisdiction.
12.2 It is understood that the initial rate for transmission service set forth in Section 7.4 is based on a rate of return of 8.69-percent, which is the rate of return authorized for Edison by the California Public Utilities Commission (CPUC) as of the date of execution of this Agreement.
Whenever, during the term of this Agreement, the CPUC finds a new overall rate of return on retail operations to be reasonable for Edison and authorizes rates based on such new rate of return to become effective, the rate for interruptible transmission service shall be adjusted based on said new rate of return. Such adjusted rate for interruptible transmission service shall be applied to serv ice rendered hereunder on and after the day when the CPUC has authorized retail rates based on such new rate of return to become effective. Said adjustment in the interruptible transmission rate shall be 0.01 mills per kilowatthour for each 0.1 percent (or fraction thereof) change in said authorized rate of return.
12.3 Nothing contained herein shall be construed as affecting in any way the right of.Edison, in furnishing service under this rate schedule to unilaterally make application to the Federal Power Commission for a change in rates, charges, classification, or service, or any rule, regulation, or contract relating thereto, under Section 205 of the Federal Power Act and pursuant to the Com mission's Rules and Regulations promulgated thereunder.
12.4 Riverside shall reimburse Edison for any filing fees incurred 'by Edison for this Agreement.
- 13. No Dedication of Facilities: Any undertaking by one Party to the other under any provision of this Agreement shall not constitute the dedication of the system or any portion thereof of any Party to the public or to the other Party, and it is understood and agreed that any such undertaking by any Party shall cease upon the termination of this Agreement.
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- 14. Governing Law: This Agreement shall be interpreted, governed by, and construed under the laws of the State of California or the laws of the United States, as applicable, as if executed and to be performed wholly within the State of California.
- 15. Notices:
15.1 All notices to be given in connection with this Agreement shall be reduced to writing and signed by a representative authorized by Riverside or by Edison.
15.2 Notices to Edison shall be sufficient if delivered in person to the person specified by Edison as being authorized to sign such notice in behalf of Edison, or if sent by mail, postage prepaid, to Edison as specified below:
Secretary Southern California Edison Company Post Office Box 800 Rosemead, California 91770 15.3 Notices to Riverside shall be sufficient if delivered in person to the person specified by Riverside as being authorized to sign such notice-in behalf of Riverside, or if sent by mail, postage prepaid, to Riverside as specified below:
City of Riverside 3900 Main Street Riverside, California 92501 (Attention:
Public Utilities Director) 15.4 Either Party shall be entitled to specify as its proper address any other address in the United States, and different recipients of notices, upon written notice to the other Party.
- 16. Uncontrollable Forces:
16.1 Neither Party shall be considered to be in default in the performance of any of its obligations under this Agreement (other than obligations of said Party to make payments here under) when a failure of performance shall be due to uncontrollable forces. A Party rendered unable to fulfill any of its obligations under this Agreement by reason of uncontrollable force shall exercise due diligence to remove such inability with all reasonable dispatch. Nothing contained herein shall be construed so as to require a Party to settle any strike or labor dispute in which it may be involved.
16.2 Edison reserves the right to temporarily interrupt and curtail service under this Agreement without notice to Riverside or Nevada if such interruption or curtailment is caused by an uncontrollable force. Such curtailment may be related to implementation of mutual load shedding arrangements agreed upon by the Parties.
16.3 For the purposes of this Agreement, an uncontrollable force shall be any cause beyond the control of the Party affected, including but not limited to, failure of or threat of failure of facilities, flood, earthquake, storm, fire, lightning, epidemic, famine, war, riot, civil disturbance or disobedience, labor dispute, labor or material shortage, sabotage, restraint by court order or public authority, and action or non-action by, or inability to obtain necessary authorizations or approvals from any governmental agency or authority which, by exercise of due diligence and fore sight, such Party could not reasonably have been expected to avoid and which, by exercise of due diligence, it has been unable to overcome.
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- 17. Signature Clause: The signatories hereto represent that they have been appropriately author ized to enter into this Agreement on behalf of the Party for whom they sign.
Executed as of June 29, 1976.
SOUTHERN CALIFORNIA EDISON COMPANY By
/s/
J. T. HEAD, JR.
Vice President ATTEST:
/s/
R. D. GORMAN Assistant Secretary CITY OF RIVERSIDE By
/s/
EVERETT C. ROSS Public Utilities Director ATTEST:
/s/
ALICE A. HARE City Clerk 61
APPENDIX III CITY OF RIVERSIDE RESOLUTION NO. 13012 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RIVERSIDE, CALIFORNIA, AUTHORIZING THE ISSUANCE OF $2,500,000 SUBORDINATED ELECTRIC REVENUE BONDS OF SAID CITY AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS.
WHEREAS, the City has entered into an agreement with Nevada Power Company, a corporation, for the purchase of electric energy from said corporation; WHEREAS, the City Council deems it necessary to issue and sell $2,500,000 principal amount of said authorized bonds at this time, designated "Electric Revenue Bonds, Issue of 1977 (Subordinated),"
for the purpose of purchasing such electric energy; WHEREAS, pursuant to Section 1306 of the City Charter, the Board of Public Utilities has recom mended to the City Council the authorization of the issuance of electric revenue bonds for the purpose of purchasing such electric energy; and WHEREAS, said Recommendation specified the matters required by said Section 1306; and certified copies thereof have been transmitted to the offices of the Mayor, the City Manager, and the City Clerk, and the City Clerk has forthwith presented the said Recommendation to the City Council; NOW, THEREFORE, the City Council of the City of Riverside, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Definitions. Unless the context otherwise requires, the following terms used in this Resolution shall have the following meanings:
(a) "Authorized investments" means any investments in which the City may legally invest funds subject to its control.
(b) "Board" means the Board of Public Utilities of the City.
(c) "Bonds" means the Bonds authorized by this Resolution.
(d) "City" means the City of Riverside, California.
(e) "City Charter" means the Charter of the City.
(f) "City Council" or "Council" means the City Council of the City.
(g) "Electric Revenue Fund" means the revenue fund heretofore created pertaining to the municipal utility (i.e., the Electric System).
(h) "Electric System" means the electric public utility system of City and shall include all works owned, controlled or operated by the City for supplying the City and its inhabitants with electric energy.
(i) "Fiscal year" means the year period beginning on July 1st and ending on the next following June 30th.
(j) "Gross Operating Revenues" means all the revenues of the Electric System which are required by the City Charter to be kept separate and apart from all other moneys of the City by deposit in the appropriate revenue fund, to wit: the "Electric Revenue Fund".
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(k) "Net Operating Revenues" means the Gross Operating Revenues, less "Operating and Maintenance Expenses".
(1) "Operating and Maintenance Expenses" means those expenses of operation and mainte nance of the Electric System and include any necessary contribution to retirement of Electric System employees.
(m) "Parity subordinated bonds" means revenue bonds, revenue notes or other similar evi dences of indebtedness heretofore or hereafter issued for the acquisition, construction and financing of extensions of, additions to, repairs and replacements to, renewals of, and improvements of the enterprise, payable out of the surplus revenues and which rank on a parity with the Bonds.
(n) "Recommendation" means the Recommendation of the Board to the City Council referred to in the recitals hereof.
(o) "Section 1306" means Section 1306 of the City Charter, and any other references to sections shall, unless otherwise indicated, refer to sections of the City Charter.
(p) "Surplus revenues" means all surplus revenues as defined in the resolutions providing for the issuance of the Electric Revenue Bonds, Issue of 1966, Electric Revenue Bonds, Issue of 1969, Electric Revenue Bonds, Issue of 1971, and Electric Revenue Bonds, Issue of 1973 which surplus revenues are required to be deposited in the Surplus Revenue Fund pursuant to Section 10 hereof.
(q) "Senior lien bonds" means any bonds heretofore or hereafter issued which are payable from the Gross Operating Revenues of the enterprise, including the Electric Revenue Bonds, Issue of 1966, Electric Revenue Bonds, Issue of 1969, Electric Revenue Bonds, Issue of 1971, and Electric Revenue Bonds, Issue of 1973, and any bonds hereafter issued which rank on a parity therewith.
(r) "Subsequent resolution" means any resolution authorizing the issuance of parity subordi nated bonds subsequent to the issuance of the Bonds.
Section 2. Equality of Bonds, Pledge of Revenues. Pursuant to Section 1306 and this Resolution, and as authorized by the resolutions providing for the issuance of the senior lien bonds which resolutions permit the use of surplus revenues for any lawful purpose of the City, the Bonds shall be equally secured by a pledge, charge and lien upon the surplus revenues without priority for number, date of bonds, date of sale, date of execution, or date of delivery, and the payment of the interest on and principal of said Bonds shall be and are secured by an exclusive pledge, charge and lien upon the surplus revenues, and all of the surplus revenues are hereby pledged, charged and assigned for the security of said Bonds, and such surplus revenues and any interest earned on the surplus revenues shall constitute a trust fund for the security and payment of the interest on and principal of said Bonds and so long as any of the Bonds or interest thereon are unpaid said surplus revenues and interest thereon shall not be used for any other purpose, except as permitted by this Resolution and any subsequent resolution, and shall be held in trust for the benefit of the bondholders and shall be applied pursuant to this Resolution, or to this Resolution as modified pursuant to provisions herein, and any subsequent resolution.
Nothing in this Resolution shall preclude:
(a) the payment of said Bonds from proceeds of refunding bonds issued under said Section 1306 as the same now exists or as hereafter amended, or under any other law of the State of California; or (b) the issuance of senior lien bonds or parity subordinated bonds.
Section 3. Amount, Issuance, Purpose and Nature of Bonds. Under and pursuant to said Section 1306, Bonds in the amount of $2,500,000 shall be issued for the purpose stated in the recitals hereof.
Said Bonds shall be special obligations of the City and shall be secured by a pledge of and lien upon, and shall be a charge upon, and shall be payable as to the principal thereof and interest thereon solely from, the surplus revenues.
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Section 4. No General City Liability. The general fund of the City is not liable for the payment of the Bonds or their interest, nor is the credit or taxing power of the City pledged for the payment of the Bonds or their interest. The holders of the Bonds or coupons shall not compel the exercise of the taxing power by the City or the forfeiture of any of its property. The principal of and interest on the Bonds are not a debt of the City nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, except the surplus revenues.
Section 5. Description of Bonds. Said Bonds shall be in the principal sum of $2,500,000, shall be 500 in number, numbered 1 to 500 inclusive, and shall be of the denomination of $5,000 each.
Said Bonds shall be designated ELECTRIC REVENUE BONDS, ISSUE OF 1977 (Subordinated),
shall be dated April 1, 1977, and shall be payable in consecutive numerical order on the dates and in the amounts as follows:
Principal Principal Maturity Date Amount Maturity Date Amount January 1, 1978......................
$400,000 July 1, 1979............................
$425,000 July 1, 1978............................
400,000 January 1, 1980......................
425,000 January 1, 1979......................
400,000 July 1, 1980............................
450,000 Section 6. Interest. Said Bonds shall bear interest at a rate, or rates to be hereafter fixed by resolution or resolutions, but not to exceed 62 % per annum payable on January 1, 1978, and semi annually thereafter on the first days of July and January of each year. Each, Bond shall bear interest until the principal sum thereof has been paid; provided, however, that if at the maturity date of any Bond, or if the same is redeemable prior to maturity and has been duly called for. redemption, funds are available for the payment or redemption thereof in full accordance with the terms of this Resolution, said Bond shall then cease to bear interest. Said Bonds and the interest thereon shall be payable in lawful money of the United States of America at the office of the City Treasurer of the City, or, at the option of the holder, at any fiscal agency of the City in Los Angeles, California, or in San Francisco, California, or in Chicago, Illinois, or in New York, New York.
Section 7. Execution of Bonds. The Mayor of the City and the Treasurer of the City are hereby authorized and directed to sign all of said Bonds by their printed, lithographed or engraved facsimile signatures, and the City Clerk of the City is hereby authorized and directed to countersign said Bonds and to affix thereto the printed, lithographed or engraved facsimile corporate seal of the City, and the Treasurer of the City is hereby authorized and directed to sign the interest. coupons of said Bonds by his printed, lithographed or engraved facsimile signature.
Section 8. Registration. Said Bonds may be registered either as to principal only or as to both principal and interest, and the form of registration of any registered Bond may be changed, or any registered Bond may be discharged from registration in the manner and with the effect set forth in the provisions for registration contained in the form of Bond set forth in Section 17 hereof.
Section 9. Disposition of Bond Proceeds. The proceeds of the sale of the Bonds shall be received by the Treasurer and deposited as follows:
(1) The accrued interest, and premium, if any, in the Debt Service Account created in Section 10 hereof:
(2) The balance in the Electric Maintenance and Operation Account (the "M&O Account")
heretofore created.
The proceeds so deposited in the M&O Account shall be applied solely for the purpose of purchasing electric energy in accordance with the City's agreement with Nevada Power Company referred to in the recitals hereof, provided that such proceeds may be temporarily invested in any obligations in which the City may lawfully invest its funds.
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Section 10. Surplus Revenue Fund; Debt Service Account. In addition to the funds and accounts heretofore created by the resolutions providing for the issuance of the senior lien bonds, which funds and accounts shall continue to be held and maintained in accordance with said resolutions, there is hereby created a special fund to be held by the Treasurer, called the Electric Surplus Revenue Fund (the "Surplus Revenue Fund"). Within said fund there is hereby created an account called the Debt Service Account.
The Treasurer shall deposit the surplus revenues as received in the Surplus Revenue Fund.
On or before the twentieth day of each calendar month so long as any of the Bonds are outstanding, the Treasurer shall allocate to the Debt Service Account the following amounts: (1) One-sixth of the interest which will become due and payable on the outstanding Bonds within the next ensuing six months, except that for the first interest payment due after the issuance of the Bonds the monthly sum allocated shall be the interest which will become due and payable less the amount of any accrued interest placed in the Debt Service Account divided by the number of. months' remaining in said period; and (2) one-sixth of the principal amount which will mature and be payable on the outstanding Bonds within the next ensuing six months, except that for the first principal payment due after the issuance of the Bonds the monthly sum allocated shall be the principal amount which will be due and payable divided by the number of months remaining in said period. In the event that the allocations for each calendar month as aforesaid are less than the amounts required for that month because of lack of funds or for any other reason the deficiency shall be added to and become a part of the allocations required for the following calendar month.
In any event, such sums shall be allocated so that the full amount required to pay, as they become due, the interest on said Bonds and any-installment of principal on said Bonds shall be set aside in the Debt Service Account at least five days prior to the date the installment of interest or principal becomes due.
Any moneys required to be set aside in the Debt Service Account may be prepaid in whole or in part by being earlier set aside therein, and in that event the monthly allocation which has been so prepaid need not be made at the time appointed therefor.
Moneys in the Debt Service Account may be temporarily invested in any obligations in which the City may lawfully invest its funds, provided that the maturity or maturities thereof shall not be later than the date or dates on which money must be available in the Debt Service Account.
The Bonds and the interest coupons shall recite that they are payable from the Surplus Revenue Fund, but notwithstanding such recital shall be paid from the Debt Service Account.
If after all of the Bonds and any parity bonds have been redeemed and cancelled or paid and cancelled (or provision is made therefor) there are moneys remaining in the Debt Service Account said moneys shall be transferred to the Surplus Revenue Fund.
All moneys remaining in the Surplus Revenue Fund after all monthly allocations required here under have been made, and all covenants contained herein have been duly performed, may be: (1) invested in any obligations in which the City may lawfully invest its funds; (2) used for any purpose authorized by the resolutions providing for the issuance of senior lien bonds; or (3) used for any lawful purpose of the City, including but not limited to the security and payment of other indebtedness incurred in connection with the Electric System.
Section 11. Investments. Obligations purchased as investments of moneys in the M & 0 Account, the Surplus Revenue Fund or the Debt Service Account shall be deemed at all times to be a part of such fund or account and any income realized from such investments shall be credited to such fund or account and any losses resulting from such investments shall be charged to such fund or account. The Treasurer shall sell at the best price obtainable or present for redemption any obligations so purchased whenever
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it may be necessary to do so in order to provide moneys to meet any payment or transfer from such fund or account. For the purpose of determining at any given time the balance in any such fund or account any such investments constituting a part of such fund or account shall be valued at the then estimated or appraised market value of such investments.
Section 12. Warranty. The City shall preserve and protect the security of the Bonds and the rights of the bondholders and warrant and defend their rights against all claims and demands of all persons.
Section 13. Covenants. So long as any of the Bonds are outstanding and unpaid, the City makes the following covenants with the bondholders under the provisions of Section 1306 (to be performed by the City or its proper officers, agents or employees) which covenants are necessary, convenient and desirable to secure the Bonds and tend to make them more marketable; provided, however, that said covenants do not require the City to expend any moneys other than the surplus revenues of the Electric System.
Covenant 1. Punctual Payment. The City covenants that it will duly and punctually pay or cause to be paid the principal of and interest on every Bond issued hereunder, together with the premium thereon, if any be payable, on the date, at the place and in the manner mentioned in the Bonds and coupons and in accordance with this Resolution, and that the payments into the Debt Service Account will be made, all in strict conformity with the terms of said Bonds and of this Resolution, and that it will faithfully observe and perform all of the conditions, covenants and requirements of this Resolution and all resolutions supplemental thereto and of the Bonds issued hereunder, and that time of such payment and performance is of the essence of the City's contract with the bondholders.
Covenant 2. Discharge Claims. The City covenants that in order to fully preserve and protect the-security of the Bonds the City shall pay and discharge all lawful claims for labor, materials and supplies furnished for or in connection with the Electric System which, if unpaid, may impair the security of the Bonds. The City shall also pay all taxes and assessments or other governmental charges lawfully levied or assessed upon or in respect of the Electric System or upon any part thereof or upon any of the revenues thereof.
Covenant 3. Accomplish Purpose. The City covenants that as soon as funds are available there for, the City will commence the accomplishment of the purpose for which the Bonds are issued and will continue the same to completion with all practicable dispatch and in an economical manner.
Covenant 4. Operate Electric System in Efficient and Economical Manner. The City covenants and agrees to operate the Electric System in an efficient and economical manner and to operate, maintain and preserve the Electric System in good repair and working order.
Covenant 5. Against Sale, Eminent Domain, Existing and Future Agreements, Competition.
The. City covenants that the Electric System shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any charge placed thereon, or disposed of as a whole or substantially as a whole unless such sale or other disposition be so arranged as to provide for sums adequate to provide for the immediate payment of the principal of and interest on the Bonds, payment of which is required to be made out of the surplus revenues. The City further covenants that the surplus revenues or any other funds pledged or otherwise made available to secure payment of the principal of and interest on the Bond shall not be mortgaged, encumbered, sold, leased, pledged, any charge placed thereon, or disposed of or used except as authorized by the terms of this Resolution and any resolution providing for the issuance of senior lien bonds or subsequent resolution. The City further covenants that it will not enter into any agreement which impairs the operation of the Electric System or any part of it necessary to secure adequate revenues to pay the principal and interest of the Bonds or which otherwise would impair the rights of the bondholders with respect to the pledged revenues. If any substantial part of 5
the Electric System is sold the payment therefor shall either be used for the acquisition and/or construction of improvements and extensions of the Electric System or for the acquisition of electrical capacity, electrical energy, fuel supply or other property or rights relating to the generation, transmission or distribution of electrical capacity or energy, or any combination thereof, or shall be placed in the appropriate funds or accounts and shall be used to pay or call and redeem any senior lien bonds, said Bonds and any parity subordinated bonds in the manner provided in any resolution providing for the issuance of'senior lien bonds, in this Resolution and any subsequent resolution.
The City covenants that any amounts received as awards as a result of the taking of all or any part of the Electric System by the lawful exercise of eminent domain, if and to the extent that such right can be exercised against such property of the City, shall either be used for the acquisition and/or con struction of improvements and extensions of the Electric System or for the acquisition of electrical capacity, electrical energy, fuel supply or other property or rights relating to the generation, transmission or distribution of electrical capacity or energy, or any combination thereof, or shall be placed in the appropriate funds or accounts and shall be used to pay or call and redeem any senior lien bonds, said Bonds and any parity subordinated bonds in the manner provided in any resolution providing for the issuance of senior lien bonds, in this Resolution and any subsequent resolution.
The City will not sell, lease or otherwise encumber any part of the Electric System except properties or facilities no longer useful or necessary to its efficient and economical operation, and it will not con struct, acquire, operate, permit or (to the extent permitted by law) consent to any competing facilities within the City limits.
Covenant 6. Insurance. The City covenants that it shall at all times maintain with responsible insurers all such insurance on the Electric System as is customarily maintained by similar utilities systems with respect to works and properties of like character against accident to, loss of or damage to such works or properties and loss of revenues insurance. If any useful part of the Electric System shall be damaged or destroyed, such part shall be restored to use. The money collected from insurance against accident, loss or damage shall be used for repairing or rebuilding the lost, damaged or destroyed works and properties, and to the extent not so applied, shall be applied first to the retirement of any outstanding ard unredeemed senior lien bonds and then shall be applied to the retirement of said outstanding and unredeemed Bonds and any parity subordinated bonds issued for the Electric System and for such purpose paid into the appropriate funds or accounts.
The City shall also maintain with responsible insurers workmen's compensation insurance and insurance against public liability and property damage to the extent reasonably necessary to protect the City and the bondholders.
Notwithstanding the foregoing, the City may provide any insurance required by this Covenant 6 through a self insurance program.
Covenant 7. Records and Accounts. The City covenants that it shall keep proper books of records and accounts of the Electric System, separate from all other records and accounts, in which complete and correct entries shall be made of all transactions relating to the Electric System. Said books shall at all times be subject to the inspection of the holders of not less than 10% of the outstanding Bonds or their representatives authorized in writing.
The City covenants that it will cause the records and accounts of the Electric System to be audited annually by an independent certified public accountant or firm of certified public accountants and shall furnish a copy of the audit report, upon request, to any bondholder.
Covenant 8. No Free Service. Except to the extent that the City is required under agreements and/or contracts existing on the effective date of this Resolution, no electricity or other service from the Electric System may be furnished or rendered to any public agency (such term to include the United States of America, the State of California, the City, and any other municipal or public corporation, district 6
or public agency) or any private corporation or person free. Except to the extent that the City is required under agreements and/or contracts existing on the effective date of this Resolution, no such electricity or other service shall be rendered to any such public agency or any private corporation or person at rates lower than those charged other persons for similar service, except that charges to the City for electricity used for facilities of the City may be made at rates lower, than those charged private persons. No building or other real property of the Electric System shall be furnished free to any such public agency or any private person or corporation, but each of the foregoing shall pay the reasonable rental value of any property so used. Reasonable and proper charges for service rendered or quarters furnished to the Electric System shall be paid to the City from the Electric Revenue Fund. The City shall maintain and enforce valid regulations for the payment of bills for electric service. Such regulations shall at all times during such period provide that the City shall discontinue electric service to any user whose electric bill has not been paid within the time fixed by said regulations.
Covenant 9. Rates and Charges. The City shall and hereby covenants that it shall prescribe, revise and collect such charges for the services and facilities of the Electric System which, after making allowances for contingencies and error in the estimates, shall be at least sufficient to pay the following amounts in the order set forth:
(a) The interest on and principal payments of outstanding senior lien bonds as they become due and payable; (b) All payments required for compliance with any resolution providing for the issuance of senior lien bonds; (c) All Operating and Maintenance Expenses; (d) All payments required for compliance with this Resolution and any resolution providing for the issuance of parity subordinated bonds; and (e) All payments required to meet any other obligations of the City which are charges, liens, encumbrances upon or payable from the revenues of the enterprise; and the charges shall be so fixed that the Net Operating Revenues shall at least equal 1.25 times the amounts payable under (a) and (b) above and 1 times the amounts payable under (c) above; provided that so long as any of the Electric Revenue Bonds, Issue of 1966, remain outstanding said charges shall be so fixed that the net revenues shall at least equal 1.50 times the amounts payable under (a) and (b) above.
Covenant 10. Limits on Additional Debt. The City covenants that, except for refunding bonds, no additional indebtedness evidenced by revenue bonds, revenue notes or other similar evidences of indebt edness, contracts or other obligations of any kind payable out of the revenues of the Electric System and ranking on a parity with these Bonds shall be created or incurred unless:
First: The City is not in default under the terms of this Resolution.
Second: The Net Operating Revenues, calculated on sound accounting principles, as shown by the books of the City for the latest fiscal year or the last completed 12 month period ended prior to the incurring of such additional indebtedness as shown by an audit certificate or opinion of an independent certified public accountant or firm of certified public accountants employed by the City, plus, at the option of the City, either or all of the items hereinafter in this covenant designated (a) and (b), shall have amounted to at least 1.25 times the maximum amount of annual debt service in any fiscal year thereafter on all indebtedness to be outstanding immediately subsequent to the incurring of such additional indebtedness.
The items either or all of which may be added to such Net Operating Revenues for the purpose of applying the restriction contained in this covenant are the following:
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(a) An allowance for net revenues from any revenue producing additions to and extensions and improvements of the Electric System to be made with the proceeds of such additional indebted ness or with the proceeds of bonds previously issued, and also for net revenues from any such additions, extensions or improvements which have been made from moneys from any source but which, during all or any part of such fiscal year or last completed 12 month period, were not in service, all in an amount equal to 90% of the estimated additional average annual net revenues to be derived from such additions, extensions and improvements for the first 36 month period in which each addition, extension or improvement is respectively to be in operation, all as shown by the certificate or opinion of a qualified independent engineer employed by the City.
(b) An allowance for earnings arising from any increase in the charges made for the use of the Electric System which has become effective prior to the incurring of such additional indebted ness but which, during all or any part of such fiscal year or last completed 12 month period, was not in effect, in an amount equal to 90% of the amount by which the net revenues would have been increased-if such increase in charges had been in effect during the whole of such fiscal year or last completed 12 month period, as shown by the certificate or opinion oa qualified independent engineer employed by the City.
Section 14. Lost, Stolen, Destroyed or Mutilated Bonds.
In the event that any Bond or any interest coupon pertaining thereto is lost, stolen, destroyed or mutilated, the City will cause to be issued a new Bond or coupon similar to the original to replace the same in such manner and upon such reasonable terms and conditions, including the payment of costs and the posting of a surety bond if the City deems such surety bond necessary, as may from time to time be determined and prescribed by resolution. The City may authorize such new Bond or coupon or coupons to be signed and authenticated in such manner as it determines in said resolution.
Section 15. Cancellation of Bonds. All Bonds and coupons surrendered to any fiscal agent of the City for payment upon maturity or for redemption prior to maturity shall upon payment therefor be cancelled immediately and forthwith transmitted to the Treasurer. All of the Bonds and interest coupons surrendered to the Treasurer for payment or redemption shall upon payment therefor be cancelled imme diately. Any Bonds purchased by the City as authorized herein toether with all unpaid coupons pertaining thereto shall be cancelled forthwith and shall not be reissued. All of the cancelled Bonds and interest coupons shall remain in the custody of the Treasurer until destroyed pursuant to due authorization.
Section 16. Consent of Bondholders. The City may, from time to time, and at any time, without the consent of bondholders as hereinafter provided, in order to cure any ambiguity, defect or omission in this Resolution or in any resolution or order in the proceedings for the issuance of the Bonds, adopt such additional resolutions or orders supplemental hereto as shall not be inconsistent with the terms and provisions hereof, and such supplemental resolutions or orders shall thereafter become a part of the proceedings for the issuance of the Bonds as referred to in Section 18. The consent of bondholders provided for in this section shall relate solely to the amendment, waiver or modification of the covenants specified in Section 13 hereof and shall not be effective to waive or modify any other provisions to this Resolution or of any of the proceedings for the issuance of said Bonds. Any act relating to the amend ment, waiver or modification of any of the said covenants consented to by bondholders holding 60%
in aggregate principal amount of the outstanding Bonds, exclusive of Bonds, if any, owned by the City, shall be binding upon the holders of all of the Bonds and interest coupons, whether such coupons be attached to Bonds or detached therefrom, and shall not be deemed an infringement of any of the provisions of this Resolution or of said Charter, whatever the character of such act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after such consent relating to such specified matters has been given, no bondholder or holder of any interest coupon, whether attached to a Bond or detached therefrom, shall have any right or interest
to object to such action or in any manner to question the propriety thereof or to enjoin or restrain the City or any officer thereof from taking any action pursuant thereto.
(a) Calling Bondholders' Meeting. If the City shall desire to obtain any such consent, it shall call a meeting of bondholders, by resolution, for the purpose of considering the action, the consent to which is desired.
(b) Notice of Meeting. Notice specifying the purpose, place, date and hour of such meeting shall be published once in a financial newspaper or journal of national circulation pub lished in The City of New York, New York, not less than 60 days and not more than 90 days prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed action, consent to which is desired. If any of the Bonds shall be so registered as to be payable otherwise than to bearer, the City Clerk shall, on or before the first publication of such notice, mail a similar notice, postage prepaid, to the respective registered owners thereof at their addresses appearing on the Bond Registry Books. The place, date and hour of holding such meeting and the date or dates of publishing and mailing such notice shall be determined by the City, in its discretion.
The actual receipt by any bondholder of notice of any such meeting shall not be a condition precedent to the holding of such meeting, and failure to.receive such notice shall not affect the validity of the proceedings thereat. A certificate by the City Clerk, approved by resolution of the City Council of said City, that the meeting has been called and that notice thereof has been given as herein provided shall be conclusive as against all parties and it shall not be open to any bond holder to show that he failed to receive notice of such meeting.
(c) Voting Qualifications. Any bondholder may, prior to any such meeting, deliver his Bond or Bonds to any agency designated by the City for the purpose, and shall thereupon be entitled to receive an appropriate receipt for the Bond or Bonds so deposited, calling for the redelivery of such Bond or Bonds at any time after the meeting. The Treasurer shall prepare and deliver to the chairman of the meeting a list of the names and addresses of the registered owners of Bonds, with a statement of the maturities and serial numbers of the Bonds held and deposited by each of such bondholders, and no bondholder shall be entitled to vote at such meeting unless his name appears upon such list or unless he shall present his Bond or Bonds at the meeting or a certificate of deposit thereof, satisfactory to the City, executed by a bank or trust company. No bondholder shall be permitted to vote with respect to a larger aggregate principal amount of Bonds than is set against his name on such list, unless he shall produce the Bonds upon which he desires to vote, or a certificate of deposit thereof as above provided.
(d) Issuer-owned Bonds. The City covenants that it will present at the meeting a certificate, signed and verified by one member of the City Council and by the Treasurer, stating the maturities and serial numbers of all Bonds owned by, or held for account of, the City, directly or indirectly.
No person shall be permitted at the meeting to vote or consent with respect to any Bond appearing upon such certificate, or any Bond which it shall be established at or prior to the meeting is owned by the City, directly or indirectly, and no such Bond (in this Resolution referred to as issuer-owned Bond") shall be counted in determining whether a quorum is present at the meeting.
(e) Quorum and Procedure. A representation of at least 60% in aggregate principal amount of the Bonds then outstanding (exclusive of Bonds, if any, owned by the City) shall be necessary to constitute a quorum at any meeting of bondholders, but less than a quorum may adjourn the meeting from time to time, and the meeting may be held as so adjourned without further notice, whether such adjournment shall have been had by a quorum or by less than a quorum. The City shall, by an instrument in writing, appoint a temporary chairman of the meeting, and the meeting shall be organized by the election of a permanent chairman and a secretary. At any meeting each bondholder shall be entitled to one vote for every $5,000 principal amount of Bonds with respect to which he shall be entitled to vote as aforesaid, and such vote may be given in person or by proxy duly appointed by an instrument in writing presented at the meeting. The City, by its 9
duly authorized representative, may attend any meeting of the bondholders, but shall not be required to do so.
(f) Vote Required. At any such meeting held as aforesaid there shall be submitted for the consideration and action of the bondholders a statement of proposed action, consent to which is desired, and if such action shall be consented to and approved by bondholders holding at least 60% in aggregate amount of the Bonds then outstanding (exclusive of issuer-owned Bonds) the chairman and secretary of the meeting shall so certify in writing to the City, and such certificate shall constitute complete evidence of consent of bondholders under the provisions of this Resolution.
A certificate signed and verified by the chairman and secretary of any such meeting, shall be conclusive evidence and the only competent evidence of matters stated in such certificate relating to proceedings taken at such meeting.
Section 17. Bond and Coupon Forms. Said Bonds shall be payable to bearer, shall be issued in negotiable form, and shall be negotiable, and the form of said Bonds and interest coupons thereof shall be substantially as follows:
UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF RIVERSIDE CITY OF RIVERSIDE ELECTRIC REVENUE BOND ISSUE OF 1977 (SUBORDINATED)
No -.
$5,000 The CITY OF RIVERSIDE, a municipal corporation situated in the County of Riverside, State of California, FOR VALUE REC EIVED, hereby promises to pay, solely from the Electric Surplus Revenue Fund, as hereinafter provided, to the bearer, one to.-
19.... upon presenta tion and surrender of this Bond, the sum of FIVE THOUSAND DOLLARS, with interest thereon at the rate of d-....
per annum, payable January 1, 1978 and semiannually thereafter on the first days paJuly and January of each and every year from the date hereof until this Bond is paid, upon presentation and surrender of the respective interest coupons hereto attached; provided, however, that if at the maturity date of this Bond funds are available for the payment thereof, as provided in the Resolution hereinafter mentioned, this Bond shall then cease to bear interest. Both principal and interest are payable in lawful money of the United States of America at the office of the City Treasurer of the City of Riverside, in said City, or, at the option of the holder hereof, fiscal agency of the City bf Riverside in Los Angeles, California, or in San Francisco, California, or in Chicago, Illinois, or in New York, New York.
This is one of a duly authorized issue of Bonds of the City designated "Electric Revenue Bonds, Issue of 1977 (Subordinated)," hereinafter called "the Bonds," all of which have been issued pursuant to said Section 1306 of the City Charter for the purpose of purchasing electric energy and the creation of said issue and the terms and conditions of the Bonds are provided for by the Resolution of the City Council of said City authorizing the Bonds adopted February 15, 1977, designated Resolution No. 13012, and this reference incorporates said Resolution herein, and by acceptance hereof the holder of this Bond and the coupons hereto attached assents to said terms and conditions. Said Resolution is adopted under said Section 1306, and this Bond and the interest coupons hereto attached are issued under and are to be construed in accordance with the laws of the State of California.
10
This Bond and the interest hereon are not a debt of the City of Riverside, nor a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts, or revenues, except the surplus revenues (as defined in said resolution), and the principal of and the interest on this Bond are payable solely from said surplus revenues and said City is not obligated to pay such principal and interest except from said surplus revenues.
By covenant expressed in said Resolution, the City is obligated to prescribe, revise and collect charges for the services, facilities and electricity of the Electric System of the City such as to provide revenues sufficient to pay the interest on and principal of the outstanding Bonds of this issue as they become due and payable in addition to all other payments required for compliance with said Resolution and the operating and maintenance expenses of the Electric System, and are subject to conditions with respect to any sale of said Electric System. In the manner provided in the Resolution, any or all of the obligations referred to in this paragraph and certain other obligations mentioned in said Resolution may be waived with the consent of the holders of 60% in aggregate principal amount of the outstanding Bonds, exclusive of issuer-owned Bonds.
This Bond and the coupons hereto attached are negotiable instruments and shall be negotiable by delivery. This Bond may be registered as to principal only or as to both principal and interest, in accordance with the provisions for registration endorsed hereon.
It is hereby certified and recited that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the incurring of the indebtedness evidenced by this Bond and in the issuance of this Bond exist, have happened, and have been performed in due time, form and manner as required by Section 1306 of the Charter of the City, the Constitution and laws of the State of California and that this Bond, together with all other indebtedness of the City pertaining to the aforesaid Electric System, is within every debt and other limit prescribed by the Constitution and laws of the State of California and the Charter of said City.
IN WITNESS WHEREOF, said City of Riverside has caused this Bond to be signea by the Mayor and the Treasurer of said City by their facsimile signatures, countersigned by the City Clerk of said City, and sealed with the facsimile corporate seal of said City, and the interest coupons hereto attached to be signed by the Treasurer by his facsimile signature, and has caused this Bond to be dated the first day of April, 1977.
BEN LEWIS ayor of the City of Riverside, California HAROLD BREWER Treasurer of the City of Riverside, California COUNTERSIGNED:
ALICE HARE City Clerk of the City of Riverside, California (SEAL) 11
(COUPON FORM) 19......................
The CITY OF RIVERSIDE, CALIFORNIA, will pay to the bearer, at the office of the Treasurer of said City, in said City, or at the option of the holder hereof, at any fiscal agency of the City of Riverside in Los Angeles, Coupon No........
California, or in San Francisco, California, or in Chicago, Illinois, or in New York, New York, out of the Electric Surplus Revenue Fund of said City and not out of any other fund or moneys of the City, the sum of in lawful money of the United States of America, being the interest then due on ELECTRIC REVENUE BOND, ISSUE OF 1977 (SUB ORDINATED), Number dated April 1, 1977, subject to the provisions on the reverse hereof.
Treasurer of the City of Riverside, California PROVISIONS FOR REGISTRATION This Bond, if unregistered, may be registered in the name of any person (designated by the bearer) as the registered owner hereof, either as to principal only or as to both principal and interest.
This Bond, if registered in either of said forms may be changed to registration in the other of said forms or discharged from registration.
Each registration, transfer after registration, change of form of registration, or discharge from registration of this Bond shall be entered by the Treasurer in books kept for the purpose at his office in Riverside, California, and noted by him in the registration blank on this Bond.
Registration as to principal only shall not affect the negotiability by delivery of the coupons pertaining to this Bond.
Upon any registration of this Bond as to both principal and interest, all unmatured coupons pertaining hereto shall be surrendered to the Treasurer and may be preserved or cancelled in his discretion.
So long as this Bond is registered no transfer hereof shall be valid for any purpose unless made by the registered owner and entered and noted as herein provided, and the principal hereof shall be payable only to the registered owner, or to his order. Interest on this 'Bond, if registered as to both principal and interest, shall be payable to the person whose name appears upon the registry books as the registered owner hereof at the close of business on the tenth day preceding the interest payment date, or to his order.
If this Bond is registered as to both principal and interest and its registration is changed to registration as to principal only, or if it is discharged from registration, there shall be attached hereto coupons representing interest hereon to become due thereafter to the date of maturity, hereof. In lieu thereof, and upon surrender and cancellation hereof, the Treasurer in his discretion may issue in exchange therefor a new Bond, with such coupons attached, identical with this Bond, except for the previous notations on the registration blank hereon, and except that the signatures on the new Bond shall be those of the persons holding the offices at the time of affixing such signatures.
The issuance of any such new Bond or of new coupons shall be at the expense of the registered owner.
12
Each discharge hereof from registration shall be effected by an entry on the registry books, and a notation in the blank below, that this Bond is payable to bearer, whereupon this Bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered.
Each registration of this Bond, if unregistered, will be made only upon request of the bearer hereof. Each transfer, change of form of registration, or discharge from registration of this Bond, or issuance of a new Bond in lieu hereof, will be made only upon request of the registered owner.
Each request or transfer must be in form satisfactory to the Treasurer and must be made in writing, signed by the registered owner, or by his agent duly authorized in writing, or by the bearer, as required.
teasa of In Whose Name Manner of gisere Re Signature of Registration Registration Treasurer Section 18. Proceedings Constitute Contract. The provisions of this Resolution and of any resolu tion or order providing for the sale of the Bonds and awarding the Bonds and fixing the interest rate or rates thereon shall constitute a contract between the City and the bondholders and the provisions there of shall be enforceable by any bondholder for the equal benefit and protection of all bondholders similarly situated by mandamus, accounting, mandatory injunction or any other suit, action or proceeding at law or in equity that is now or may hereafter be authorized under the laws of the State of California in any court of competent jurisdiction. Said contract is made under and is to be construed in accordance with the laws of the State of California.
No remedy conferred hereby upon any bondholder is intended to be exclusive of any other remedy, but each such remedy is cumulative and in addition to every other remedy and may be exercised without exhausting and without regard to any other remedy conferred by the Charter or any law of the State of California. No waiver of any default or breach of duty or contract by any bondholder shall affect ansubsequent default or breach No day or oi t for shall impair any rights or remedies on said subsequent default or breach. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the bondholders may be enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy' shall be brought or taken and the bondholder shall prevail, said bondholder shall be entitled to receive from the Electric Revenue Fund reimbursement for reasonable costs, expenses, outlays and attorney's fees and should said suit, action or proceeding be abandoned, or be determined adversely to the bondholders then, and in every such case, the City and the bondholders shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken.
After the issuance and delivery of the Bonds this resolution shall be irrepealable, but shall be subject to modification to the extent and in the manner provided in this Resolution, but to no greater extent and in no other manner.
Section 19. Defeasance. Bonds shall no longer be deemed to be outstanding and unpaid if the City shall have made adequate provision for the payment, in accordance with the Bonds 'and this Resolution, of the principal and interest to become due thereon at -maturity. Such provision shall be deemed to be adequate if the City shall have irrevocably set aside, in a special trust fund or account, 13
moneys which when added to the interest earned or to be earned from the investment or deposit thereof shall be sufficient to make said payments as they become due. Moneys so set aside may be invested in any direct obligations of, or obligations guaranteed by, the United States of America, or in obligations of any agency thereof, in which the City may lawfully invest its money and, to the extent not so invested, may be placed with banks as inactive deposits in the manner provided by law.
Section 20. Future Contracts. Nothing herein contained shall be deemed to restrict or prohibit the City of Riverside from making contracts or creating bonded or other indebtedness payable from the general fund of the City, or from taxes or from any source other than the Electric Surplus Revenue Fund.
Section 21. Severability. If any covenant, agreement or provision, or any portion thereof, con tained in this Resolution, or the application thereof to any person or circumstance, is held to be unconstitutional, invalid, or. unenforceable, the remainder of this Resolution and the application of any such covenant, agreement or provision, or portion thereof, to other persons or circumstances, shall be deemed severable and shall not be affected thereby, and this Resolution and the Bonds issued pursuant hereto shall remain valid and the bondholders shall retain all valid rights and benefits accorded to them under this Resolution, Section 1306, the Charter of the City and the Constitution and laws of the State of California.
Section 22. Effective Date. This Resolution shall take effect upon the expiration of 30 days follow ing the publication thereof subject to the right of referendum, all as provided in Section 1306 of the Charter.
ADOPTED, SIGNED AND APPROVED this 15th day of February, 1977.
BEN LEWIS ATTEST:
Mayor of the City of Riverside, California ALICE HARE(SEAL)
Ciy lekfthe Cityof Riverside, California 14
OFFICIAL STATEMENT
- NOTICE THE ATTACHED FILES ARE OFFICIAL RECORDS OF THE i
-DIVISION OF DOCUMENT CONTROL.
THEY HAVE BEEN CHARGED TO YOU FOR A LIIITED TIME PERIOD ANDO MUST BE RETURNED TO THE RECORDS F ACILITY BRANCH 016 PLEASE DO 8
NOWEN AOCMNTS G
T&RA SYIC CHARED UT HF(UGHTHEMAI.
REMOVAL OF ANY PAGE(S) FROM DOCUMENT FOR REPRODUCTION MUST BE REFERRED TO FILE PERSONNEL.
DEADLINE RETURN DATE t9-6 ITT.
RECORDS FACILITY BRANCH
$12,500,000 ELECTRIC REVENUE BONDS SECOND ISSUE (SUBORDINATED)
OF 1976 Sale Date June 8, 1976 Prepared under the Supervision of, WAINWRIGHT & RAMISEY INC.
Los Angeles New York San Francisco Miami
ANAH4EIM Ito LOS ANGELe S
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4
OFFICIALS OF THE CITY OF ANAHEIM CITY COUNCIL W. J. (Bill) Thom, Mayor John F. Seymour, Jr., Mayor Pro-tem Miriam Kaywood William I. Kott Don R. Roth CITY MANAGER Keith A. Murdoch William 0. Talley, Assistant City Manager UTILITIES DEPARTMENT Gordon W. Hoyt, Utilities Director George H. Edwards, Electrical Superintendant Edward E. Dumon, Operations Superintendent James. E. Willis, Utility Accounts Manager Henry C. Wiley, Energy Services Manager Darrell L. Amcnt, Management Scrvices Manager Larry M. Sears, Water Superintendent CITY DEPARTMENT HEADS William 0. Talley, Acting Financc Dircctor William J. Griffith, Library Dirctor Alona M. Hougard, City Clerk Jams W RieyFir ChefGarry
- 0. McRae, Personnel Director James W. Riley, Fire Chief AlanR. WttsCityAttoncyHarold A. Bastrup, Police Chief Alan R. Watts, City Attorney James D. Ruth, Parks, Recreation and Thomas F. Liegler, Stadium, Convention Arts Director Center And Golf Director Thornton E. Piersall, Public Works Director Knowlton Fernald, Jr., Community Development Ronald L. Thompson, Planning Director Director CITY TREASURER Glenn E. Stewart BOND COUNSEL O'Melveny & Myers Prepared Under the Supervision of WAINWRIGHT & RAMSEY INC.
Consultants on Municipal Finance The dut-of this Oflicial Statement is May 25, 1976
TABLE OF CONTENTS Page INTRODUCTION....e J N R O U T I N.................................................................................--.........---.---.-........
3 SYNOPSIS OF ESSENTIAL FACTS RESPECTING THE BONDS.....................5 Amounts and Maturities..................
5 Authorization......................
Purpose of Bonds Calculation of Savings on Ecoroiny Energy..............
6 Bond Security.....
7 F l o w o f F u n d s...........
7 Rate Covenant..
7 Fiscal Year
- 8.
LCgal Opinions 8
Legality for Investments by Saving Banks in California................................8 Additional Sales..............................................................9 CITY OFFICIALS Mem~crs of City Council.
C ity.
Man ag..
- m.
n t..........................
9 CITY OF ANAHEIM ELECTRIC UTILITY The Utilities Department 10........................
Electric.. Utility Management.............................................-...
10
'Pension O bligations..........-..--
1 cnonOigtns.
10 L a b o r R e l a t i o n s..
I I T he Systert 11 Elcctric Rates..
11 Operations.
12 B u l k a tP o n.% S u p p ly..
......................................0..
.1 Bulk Pow S l
............ 14 Litigation.
14 Electric Utility Financial Information........-.-.-.-...-..-....
18 Nine onth tatcmnts.....................................
......... 20 Audited Financial Statements
-21 Nine Month Unaudited Financial Statements....................
27 Five Year Comparativc Statements Historical Cpital Expnditurs......
29 Debt Service StatlE ent....
30 31 CITY OF ANAHEIM FINANCIAL INFORMATION As-sessed7 Valuiation..........
V.luat..on..................................................
32 Tax Rates and Tax Collections 33 Direct and Overlapping Debt........................................................34 CITY OF ANAHEIM ECONOMIC AND GENERAL BACKGROUND.
39 APPENDIX I -CONTRACT WITH NEVADA POWER COMPANY....................52 APPENDIX II -- CONTRACI' WITH SOUTHERN CALIFORNIA EDISON COMPANY........
56 APPENDIX Il -
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM CALIFORNIA. AUTHORIZING THE ISSUANCE OF $12,500,000 SUBORDINATED ELEC HRIC REVENUE BONDS.OF SAID CITY AND5PROVIDING THE TERMS AND CONDITIONS FORHE ISSUANCEOSAID BONDS.................................................
61 2
CITY OF ANAHEIM, CALIFORNIA INTRODUCTION The City of Anaheim, California (the "City") will offer for sale $12,500,000 Electric Revenue Bonds, Second Issue (Subordinated) of 1976 (the 'Bonds"), at 10:00 a.m. P.D.S.T. on Tuesday, June 8, 1976. The Bonds were authorized by a resolution of the City Council (the "Resolution") adopted on May 25, 1976, in accordance with the provisions of the City Charter. A copy of the Resolution is included as Appendix III hereto.
The Bonds are being issued to finance the partial payment for economy energy to be purchased from Nevada Power Co. (sec "Purpose of Bonds" on page S and Appendix 1).
The Bonds will be payable from the surplus revenues of the City's electric system.
The City of Anaheim, located approximately '28 miles southeast of Los Angeles, is an important recreational, residential, commercial and industrial center. The City's population, as of January 1, 1976 was 196,382, according to combined 'special state and local census.
All power, u
xcept for economy encrgy purchased from Nevada Power Company is purchased at wholesale from the Southern California Edison Company (SCE) at the present time.
B cquisition in August 17 of the facilities of SC serv aproximl Softhe Cit incluing DiseylndtheCit's ub-ranmision and distribution system now serves electricity to all customers within the City limits.
Assuming for purposes of illustration a 5% interest rate on the Bonds, the maximum annual debt service on all outstanding Electric'Revenutc Bonds would be $4,916,375. The last fiscal year's gross revenue of $43,361,041 and net revenue (before depreciation) of $7,489,591 would cover this maximum annual debt service 8.8 times and 1.5 times respectively.
The material contained in this Official Statement describes the Bonds and the Electric Division of the Utilities Department of the City and. presents information concerning the City of Anaheim, its location, population, economic and financial. background. This Official Statement was prepared for and under the superv ision of the Utilities Departmpnt of the, City of Anaheim by Wainwright & Ramsey Inc., in its capacity as financial consultant to the City.
Wainwright & Ramsey Inc., which does not buy, sell or trade bonds or other securities, will receive a fee from the City upon delivery of the Bands.
Copies of this Official Statement together with the notice inviting bids and bid form may be obtained from Wainwright & triimsCy Inc., 7.0 Pine Street, New York, N. Y. 10005, and 7325 Woodrow Wilson Drive, Los Angeles, California 90046, and 58 Sutter Street, San Francisco, California 94104 or from Alona M.
Hougard, City Clerk, 204 Hast Lincoln Avenue, Anaheim, California 92803.
3
LEWIS RECEIVING STATION
SYNOPSIS OF ESSENTIAL FACTS RESPECTING THE BONDS
$12,500,000 CITY OF ANAHEIM, CALIFORNIA (ORANGE COUNTY)
ELECTRIC REVENUE BONDS, SECOND ISSUE (SUBORDINATED)
OF 1976 (Payable solely from the Surplus Revenue Fund)
Due December 1, 1977 and semiannually thereafter Dated June 1, 1976 to December 1, 1980 The Bonds will be coupon Bonds, in the denomi-AUTHORIZATION nation of $5,000 cach,' registrable as to principal fldt on f $ 5 0 0 0 each re ist a ble *as to p in c p alT h e B o n d s w ere a u th o rized at a sp ecial m u n ici only, or as to both principal and interest, and re-pal election held on March 4, 1975, and constitute convertible at registered owner's expense, principal the second issue under the $150,000,000 Electric and interest (due December 1, 1976 and semi annually June I and December I thereafter) shall be payable in lawful money of the United States of America at the office. of the Treasurer of the City of Anaheim, California, or, at the option of the holder, Proceeds of the Bonds will be used to finance the at the Corporate Agency Division of Bank of Amer-partial payment for economy energy to be purchased ica National Trust and Savings Association, in Los from the Nevada Power Company in accordance Angeles, California, or at any paying agent of the with the agreement includd herein as Appendix.
City in San Francisco, California, Chicao, Illinois, or in New York, New York.
This energy will be transmitted by Southern Cali fornia Edison Company 'in accordance with the Maturities: The Bonds will mature in consecutive agreement included herein as Appendix 1T.
numerical order as follows:
Anaheim's savings in energy costs under minimum Matrity Date Principal A and expected amount of energy transactions during the life of these agreements have been calculated as December I, 1977............$1625,000 follows:
June 1, 197M..
1,625,000 December 1, 197m
............. 1725,000 June I, 1979................1700,000 December 1, 1979.............1,800,000 June 1, 1980 1,8m0,000 December I, 1980.2,225,000 5
1,2500
CALCULATIONS OF ANAHEIM'S SAVINGS FOR MINIMUM AGREEMENT AMOUNT OF ENERGY TRANSACTIONS (250,000,000 KWH PER YEAR) AND FOR EXPECTED AMOUNT OF ENERGY TRANSACTIONS (325,000,000 KWH PER YEAR) BASED ON COST OF ENERGY FROM SOUTHERN CALIFORNIA EDISON COMPANY OF $0.0200/KWH, NEVADA POWER COMPANY INCREMENTAL GENERATING COST OF $0.01127/KWH, 3.3% TRANSMISSION LOSSES, AND 5% ANNUAL INTEREST RATE Cash Payment By Nevada Semings To Guar-So iags Anaheim Total KhK,,
h Total Cost of awed Realized To Meet Net Pon hased Nerada Power Company Bond Edison Received Cost to Kwh Received Per perd AistSaN Contract and Bond Interest rwassmiuion A:
Athi I mea Agree-Agree-aa, rear Transmi. ted Bill Debit Principal Paymwent cost @,
Anaheim 44-5+7 From-Edison anent eet enter Anaheim (Jt - Million.
Price Anaheim Prepprment Payment
@5%
S.(X0i22IKwh, Millions
+8
- .S.O20IKwh Formula Formula.
12-13 S
J.
0))
of/Kwh S/Kh
$S K
wh wh 5$
11-1014 of Kwk I-hl 1
2 3
4 S
6 7
8 9
Io 11 12 Ij 14 Is Thousands of Dollars 250,6,00 kwh per year 1976-77 250.000
.01231 3,077.5 625.000 305.000 241.75 4,007.500 4,835.000 1,500 1,452.50 47.5 875.000 1977-78 250.000
.01300 3,250.0 3,250 584.375 305.000 241.75 4,139.375 4,835.000 1,450 1,280.00. 170.0 865.625 1978-79 250.000
.01369.
3,422.5 3,425 419.375 305.000 241.75 4,146.875 4,835.000 1,250 1,107.50 142.5 830.625 1979-80 250.000
.01438 4--
3,595.0 3,600 246.250 305.000 241.75 4,146.250 4,835.000 1,300 935.00 365.0 1,053.750 1980-81 15-5.250
.01438 2,232.5 2,225 55.625 189.405 150.13 2,477.530 3,002.600
-4)-
525.070 1,155.250
.01348 3,077.5 12,500.0 12,500. 1,930.625 1,409.405 1,117.13 18,917.530 22,342.600 5.500 4,775.00 725.0 4,150.070 325,00,SW kwh per year 1976-77 325.000
.01231 4,000.75 -
625.000 396.500 314.275 5,022.250 6,285.500 1,500 1.88825 -
1,263.250 1977-78
.325.000
.01300.
4,225.00 3,250 584.375 396,500 314.275 5,205.875 6,285.500 1,450 1,664.00 1,079.625 1978-79 325.000
.01369 4-4,449.25 3,425 419.375 396.500 314.275 5,265.125 6,285.500 1,250 1,439.75.
1,020.375 19780 325.000
.01438 847.75 3,825.75 3,600 246.250 396.500 314.275 5,316.250 6,285.500 1,300 1.215.50 969.250 1980-81 -.01438 2,225 55.625 -
55.625
'(55.625) 1,300.000
.01335 4,848.50 12,500.00 12,500 1,930.625 1,586.000 1,257.100 20,865.125 25,142.000 5,500 6,207.50 4,276.875 SOURCE -City of Anaheim Utilities Department
BOND SECURITY ensuing six months, except that for the first interest The Bonds are issued under and pursuant to Sec-payment due after the issuance of the Bonds the tion 1210 of the Anaheim City Charter, procedural monthly sum allocated shall be the interest which Ordinance No. 2980, and the Resolution. The Bonds will become due and payable less the amount of any shall constitute special obligations of the City, pay-accrued interest placed in the Debt Service Account able both as to principal and interest and as to any divided by the number of months remaining in said premiums upon the redemption of any thereof prior period; and (2) one-sixth of the principal amount to maturity only out of the Surplus Revenue Fund which will mature and be payable on the outstanding and not out of any other fund or moneys of the City; Bonds within the next ensuing six months, except provided that this shall not preclude payment of that for the first principal payment due after the issu principal, interest or premiutms through certain other anee of the Bonds the monthly sum allocated shall sources as enumerated in the Resolution. The Bonds be the principal amount which will be due and pay are subordinated to the $8,000,000 Electric Revenue able divided by the number of months remaining in Bonds, Issue of 1972, and the $6,000,000 Electric said period. In the event that the allocations for Revenue Bonds of 1976, heretofore issued, and to each calendar month as aforesaid are less than the any additional electric revenue bonds which may be amounts required for that month because of lack of hereafter issued which are payable from the gross funds or for any other reason the deficiency shall be revenues of the electric system (sometimes referred added to and become a part of the allocations re to herein as "senior lien bonds"). Under provisions quired for the following calendar month.
of the resolutions providing for the issuance of said 1972and1976isses, he ros revnue of he cc-In any event, such sums shall be allocated so that 1972 and 1976 issues, the gross revenues of the elec-tefl mutrqie opy ste eoede tric system of the City (sometimes referred to herein as the "enterprise") are required to be deposited in thinteres on said Bonds and as intlmet the Electric Revenue Fund and allocated or trans Service Account at least five days prior -to the date ferred on a monthly basis in, the following order of ferr d o a onth y b sis in t e f llo ing rde of the installm ent of interest or principal becom es due.
priority-first, to pay debt service on all outstanding senior lien bonds; second, to pay current mainte-All moneys remaining in the Surplus Revenue nance and operation expenses of the enterprise; Fund after all monthly allocations required here third, to replenish the Reserve Fund established as under have been made, and all covenants contained
( additional security for said 1972 and 1976 issues; herein have been duly performed, may be: (1) in and fourth, to replenish the Renewal and Replace-vested in any obligations in which the City may law ment Account similarily established. All moneys re-fully invest its funds; (2) used for any purpose maining in the Electric Revenue Fund after the fore-authorized by the resolutions providing for the issu going monthly transfers have been made constitute ane of senior lien bonds; or (3) used for any lawful "surplus" revenues.
Under the provisions of the purpose of the City, including but not limited to the Resolution said surplus revenues are required to be security and payment of other indebtedness incurred deposited in the Surplus Revenue Fund and used in connection with the enterprise.
only for the purposes authorized by the Resolution, including the payment of principal and interest of the Bonds.
p t
f h
a foRATE COVENANT The City shall prescribe, revise and collect such FLOW OF FUNDS charges for the services and facilities of the enter Tacrue interestg plce in thee Debtar Seric Accountison prise which, after making allowances for contin conperiod; and (2)io on-sxt of the principaln amounto contine in ecton 1 oftheResoutin, acop of gencies and error in the estimates, shall be at least which is attached heretoas Appendix 1.
sufficient to pay the following amounts in the order set forth:
Surplus Revenue Fund; Debt ServicB Account The surlustrevenues shall be deposited in the Sur-(a) The interest on and principal payments of the s Ro t t eth day outstanding senior lien bonds as they become due said period. Innd the even thatr th aloctinsfo of each calmndaromonth so along as any of the Bondst are outstanding, the Treasurer shall allocate to the (b) All current expenses for the necessary and Debt Service Account the following amounts: (1) reasonable maintenance and operation expensesof One-sixth of the interest which will become due and the enterprise ao said expenses become due and payable on the outstanding Bonds within the next payable; 7
(c) All payments required for compliance with In addition to the foregoing, under provisions of any resolution providing for the issuance of senior the Resolution the City may not issue additional licn bonds; indebtedness, whether senior to or on a parity with (d) All payments required for compliance with the tes of the oti ndt(2) theanet the Resolution and any resolution providing for the rnes fh each of the to ped (sa ears issuance of parity subordinated bonds; andto at least the amount of (e)
All payments required to meet any other principal and interest which will become due and obligations of the City which are charges, liens, payable in the fiscal year next succeeding the fiscal encumbrances upon or payable from the revenues of year in which such additional indebtedness is in the enterprise; curred on aill indebtedness payable out of the reve nues of the enterprise.
and the charges shall be so fixed that the net revenues shall at least equal 1.10 times. the amounts payable FISCAL YEAR under (a), provided that so long as any of the 1972 The fiscal year of the Electric Division of the Bonds remain outstanding said charges shall be so Public Utilitis Dpartmnt of the City mans the fixed that the net revenues shall at least equal 1.25 year period beginning each July 1 and ending on times the maximum amount payableIunder (a).
the next following June 30th.
LIMITS ON ADDITIONAL. DEBT LEGAL OPINIONS Under provisions of the resolu.tions providing for The unqualified opinion of O'Metveny & Myers, the issuance of the Electric Revenue Bonds, Issues of Los Angeles, California, Bond Counsel for the City, 1972 and 1976, the City may not issue additional approving the validity of the Bonds and stating that revenue bonds payable from the grossrevenues of the interest on the Bonds is exempt from income taxes enterprise unless ( I) the City is not in default under of the United States of America under present said resolutions; and (2) the net revenues of the en-Federal income tax laws and from personal income terprisc, calculated onr sound accounting principles, taxes of the State of California under present State as~shl haven amune toe atdte least theh amoun ofecho income tax laws, will be furnished to the succeasful th as t h o by mth ea ted bosco:h iy o a h o bidder or bidders at the tim e of the delivery of the tpayableal years prior to the adop-fBond tion of the resolution of award of 'bids. for. such addi
- s. A copy of said opinion will be printed on the tiocur o
ldebtedness back of each Bond, at the expense of the City.
1.- 10 times the amount of Principal (including any The employment of Bond Counsel is limited to Mandatory *sinking fund payments) and interest reviewing and rendering assistance in the prepara Which will becomne due and payable in the fisa yea tion of the legal proceednsatoiigteBns Tefscal year of the Elethriin Divisiondfth next succeeding the fiscal year in which such addi-to a limited participation in the preparation of this tional indebtedness is incurred on all such bonds Official Statement and to the issuance of the opinion (and, so long as any of the boyds of the 1972 Issue described in the preceding paragraph.
Except as remain outstanding, at least 1.25 times the maximum specifically set forth in this Official Statement, Bond annual debt. service in. any fiscal year thereafter on
.Counsel has not independently verified the accuracy, All indebtedness tobe outstanding i mmediately sub-completeness or fairness of the statements contained sequent to the incurring of such additional indebted-herein, and the limitations inherent in the participa ness).
For purposes of this computation, gross tion of Bond Counsel and the knowledge available 1revenues may be increased by allowing for earnings to Bond Counsel are such that Bond Counsel is un arising from any increae in electric service charges able to assume and does not assume any responsi which became effective prior to the incurring of such bility for the Accuracy, completeness or fairness of additional indebtedness but whach, during all or any such statements.
part of said last two completed fiscal years, was not in effect, in an amount equal to 95% of the amount LEGALITY FOR INVESTMENT BY SAVINGS by which the gross revenues would have been in-BANKS IN CALIFORNIA creased if such increase in charges had been in effect It is believed that the Bonds fulfill the require during the awhole of said last two completed fiscal ments ofSection 1362 of the Financial Code of the years, as shown by an independent auditor's ceri-State of alifornia. The Bonds are payable out of ficatg or opinion.
revenues from a revenue producing property (electric 8
system) owned, controlled, and operated by the City Don R Roth, Councilman, served in an appointed of Anaheim, and are secured by such revenues: net capacity on the City Council from January 1971 to income from the last fiscal year has exceeded the April 1972 and was elected to a full four year term maximum annual debt service for any future fiscal April 13, 1976. He has been active in civic affairs year on all such securities which will be outstanding and was one of the original voting members of after the issuance of the Bonds; and said electric the City of Anaheim Charter Committee which system had a gross income of at least $1,000,000 authored the current City Charter.
in the latest fiscal year. An application has been made by the City pursuant to Section 1371 of the CITY MANAGEMENT Financial Code for a certificate from the Superin-Keith A. Murdoch, City Manager, City of Ana tendcnt of Banks of the State of California certifying heim, was appointed to his position in 1950, is a that the Bonds will, when issued, comply with the graduate of Michigan State University, has been a requirements of the code for eligibility for invest-Major in the U. S. Army, and has served as City ment by savings banks in California.
Manager of Claremont, California. He has lectured ADDIT0NAL ALESat the University of California Irvine campus and ADDITIONALLos Angeles campus, and at California State College, Additional revenue bonds can be sold to acquire Fullerton.
During Mr. Murdoch's tenure as City rights to power, generation, transmission and distri-Manager, the City of Anaheim has become the bution facilities under the $150,000,000 authoriza-home of Disneyland, has attracted the California tion referred to herein. It is not anticipated that Angels Baseball Club, has designed and built a large additional electric revenue bonds will be sold for at multi-purpose sports stadium and conventin center, least 18O days.
has attracted over 400 industries, and has become a major metropolitan area. He is a past President of CITY OFFICIALS the City Managers' Department of the League of MEMBRS O TH CIT COUCILCalifornia Cities, and is a member of the Interna MEMBERS OF. THE CITY COUNCIL tional City Managers' Association, On May.11, W. J. (Bill) Thom, Mayor, became the first Mayor 1976 Mr. Murdoch announced his intention to of the City to be elected by a popular vote of the retire on July 9,1976 and the City Council has not people under an amendment to the City Charter in yet taken action to appoint a successor.
April of 1974 and was elected to another two year te r m a s M a y o r A p r il 1 3, 1 9 7 6. F ir s t e le c te d to th e llsa n 0. T e g r ey A s s it A tiCi t a n f e City Council in 1970, he is now serving in his second four yea ter H als ha ser ed is c mmu ity Los Angeles State University, is responsible for the four year term. He also has served his coinmunity o e al d yt -a p rto s o h
iy a d i as a member of the City Planning Commission.
aggressively spearheading the "management by ob John F. Seymour Jr., Mayor Pro Tem, was elected jectives" program.
At present he is also Acting to the City Council in 1974. In April of 1976, his Finance Director.
Talley came to the City in fellow council members selected him to serve a December, 1975 from a 2 0-year career with the City second successive term as Mayor Pro Tem. Prior of Long Beach. His responsibilities in Long Beach to becoming a member of the City Council he was a have included budget and research, data processing, planning commissioner and was president of the intergovernmel relations, and a wide range of ad Anaheim Chamber of Commerce.
ministrative services in such areas as transportation, Miriam Kaywood, Councilwoman, is the first and oil properties and utilities.
only woman to have been elected to the City Council.
Included in the Finance Director's overall re Prior to her election in 1974, she was very active in sponsibilities are the following centralized account civic affairs ranging from the cultural arts to munici-ing functions: collecting all electric power, water, pal capital improvements.
She also served on the sanitation and industrial waste charges; control and City Planning Commission for three years.
preparation of the City payroll; the issuance of licenses; and purchasing and warehousing. During William I. Kott, Councilman, was elected April the past several years, C 3, 1976 tohs first four year term on the.Cityth Ciy o An em ha 13, 976to is irs for yar ermon he ity continually improved method4 and procedures so Council. He is an oral surgeon and has lived in as to provide the City Council, the City Manager, Anaheim for more than 20 years. He has been an and interested citizens with comprehensive up-to active member of the Anaheim Chamber of Corn-date reports. Annual post-audits are made by Arthur DoYoung o
Certified Public Accountants.
capcit CopnyteCt oni 9
ro aur 91t 9
Api592adws lce oafllfuyertr
Accounting records, financial transactions, and Electrical Engineer for Pacific Gas and Electric billing, including all billing and accounting for the Company. He is a Senior Member of the Institute Electric Division, are done on the City's IBM-370 of Electrical and Electronic Engineers and was ap Model 145 computer. The City and its Utilities pointed by the Chairman of the Federal Power Department are increasing their billing and account-Commision to the Technical Advisory Committee ing capabilities as more customers are added within on Power Supply. He is a member of the Executive the City limits by installation of a Utilities Informa-Committee and Board of Directors of the Inter tion System featuring an expanded file of historical mountain Power Project and a member of the San information and providing for more rapid billing Joaquin Nuclear Project Coordinating Committee.
and direct access to the computer's data files through Mr. Hoyt's professional experience includes design, video display terminals.
construction, and operation of generating, transmis Alan R. Watts, City Attorney, heads the legal staff sion, and distribution facilities, as well as manage representing the City of Anaheim. He joined the staff ment of municipal electrical and water distribution in 1962 as a Deputy City Attorney, and was named utilities.
City Attorney in December, 1973.
George H. Edwards, Electrical Superintendent has His legal-career began as a deputy city prosecutor been with the Electric Utility since 1966, and is for the City of Pasadena, where he served for more responsible for engineering, construction, and main than a year before coming to Anaheim. He received tenance of the electric utility. He received a B.S. in his law degree from the University of California at electrical engineering from Texas Technological Col Los Angeles, a bachelor's degree from San Jose State College, has completed additional studies at Fullerton PENSION OBLIGATIONS College and isa member of the American, California Employees of the City participate in a defined and County of Orange Bar Associations and cur-benefit pension plan which is administered in accord rently is chairman of the Legal Section of the ance with a contract between the City and the State American Public Power Association.
of California Public Employees' Retirement System CITY OF ANAHEIM (PERS). PERS is a statewide system operated pur ELECTIC UTLITYsuant to Title 2, Division 5, Part 3 of the Govern ELECTRICment Code. State law requires that PERS undergo THE UTILITIES DEPARTMENT actuarial review not less often than every fourth The Utilities Department exercises jurisyear.
Actuarial Systems, Inc., independent actuaries over both the electric and water systems of the City.
and consultants, reviewed PERS' actuarial experi However, funds and accounts of the respective sys-ence for the four-yar period ending June 30, 1973 tems are kept separate.
and computed actuarial valuations of PERS as of The Department is under the supervision of the June 30, 1973 and June 30, 1974. In its report Utilities Director who is responsible for the super-dated May 15, 1975, the actuary identified an "un vision of the design, construction, maintenance, op-funded supplemental liability" of $925,615,287, as cration, and upkeep of the City electrical and water of June 30, 1973, for the Local Miscellaneous Em systems. Thus, the Utilities Director is responsible ployces Group, which would include the 300 em for all engineering, planning, construction, operation, ployees of the Utilities Department. As of June 30, maintenance, meter reading and billing for both the 1974 the "unfunded supplemental liability" was re electric and water utilities. The Director of Finance of thc City is charged with the accounting and col-lanous group included 138,297 employees state lection of all revenues as well as the administration wide. The actuary attributed the increase to in of the financial affairs of the City. The Utilities creases in benefits during the year and to salary Director and-Finance Director are under the direc-increases at rates exceeding previous actuarial tion of the CityManager.
assumptions. The "unfunded supplemental liability" MAAEETfor all other member groups (State Mselnos ELECTRIC UTILITY MANAGEMENT ELECT IC UTLITYState Safety, Highway Patrol, Local Safety and Gordon W. Hoyt, Utilities Director, is, in charge County Schools),
as of. June* 30, 1974, was of the City's electric and water distribution systems
$3,977,018,111. The actuary's report includes a dis and has been Utilities Director since 1964. He is an cussion of new actuarial assumptions to provide electrical engineering graduate of the University of amortization of unfunded liabilities in the various Texas and has served as superintendent of the City member groups within PERS. Additional informa of Santa Clara's Ele t
nd as an tion is available from State of California Public Em C10omsincahTehiartioytmi
ployecs' Retirement System, 1416 Ninth Street, of Understanding. On April 12, 1976, a new Memo Sacramento, California 95814.
randum of Understanding between staff officials of State law provides that, when rendered necessary the City and IBEW was executed. The term of this by changes in benefits or by periodic actuarial re-Memorandum of Understanding is from October 17, view, PERS may modify the amounts of annual pen-1975 to October 13, 1977.
sion contributions by agencies contracting with it.
Memorandums of Understanding are currently in Based on the latest actuarial evaluation which was effect for all labor organizations listed above, except made as of June 30, 1974, the City's unfunded prior the Anaheim Municipal Employee Association. This service cost relating to the City's participation in Memorandum of Understanding expired on October PERS was $754,985, which is being funded over 25 16, 1975 and Anaheim and the Anaheim Municipal years. Information as to the excess of the actuarially Employees Association have submitted this matter computed value of vested benefits over the related to a non-binding fact-finder to find facts and make pension fund is not available. The City's General Fund contribution to the plan for the year ended June 30, 1975 was approximately $2,590,000 (in cluding funding of prior service costs of $52,300).
History of System. As one of the first eight such Electric Utility Fund Contributions to the plan for municipallyowned systems in the State of California, the same year were approximately $302,600 (includ-the system has been fundamentally a sub-transmis.
ing funding of prior service costs of $9,300).
sion and distribution system, although it did generate all its own power from 189,5 to 1916 and. part of LABOR RELATIONS its own power from 1927 to 1930.
The City, pursuant to the authority established in The original City-owned generating plant, financed Section 1000 of its Charter and the authority con-by a $7,000 bond issue approved by 95% of the tained in the Government Code of the State of Cali-electorate, was constructed in 1895 and consisted fornia, has established a personnel system. The City of a steam-driven generator of 500 lights capacity.
has, pursuant to the authority just referred toabove, By the spring of 1896 the maximum capacity of the adopted various ordinances and resolutions which generating plant had been reached with 498 lights create the City's personnel system. The Meyers-connected to the system. With 173 more applications Milhas-Brown Act (MMB) contained in Section for service, Anaheim voters passed $18,000 in bonds 3500 et scq. of the California Government Code for the combined rebuilding of both the electrical establishes the framework for public agencies to light plant and the City water system in August of meet with public employees or employee organiza-1896. In 1916 the City entered into an agreement to tions for the purpose of meeting and conferring in purchase electricity at wholesale rates from the good faith regarding wages, hours and other terms Southern California Edison Company rather than and conditions of employment.
generate its own power.
Staff officials of the City have met and conferred In 1934, during the depression years, the City, with various employee organizations and entered into working with the Federal Public Works Administra Memorandums of Understanding with said organi-tion, rebuilt and epanded the distribution system zations. Memorandums of Understanding have been sufficiently to serve the needs of the citizens until the agreed upon with the Anaheim Municipal Employees end of World War 11.
Association, the Anaheim Police Association, the In the decades since the war, the City's Electric Anaheim Fire Association, the Service and Hospital System has continued to expand to meet the require Employees Union, Local 399, the General Truck ments of fantastic growth. The City-owned Electric Drivers Union, Local 235 and the International System has grown from 498 lights in 1895 to a dis Brotherhood of Electrical Workers, Local 47.
tribution system which sold 1,452 million KWH's The employees of the Utilities Department are of energy to 69,270 customers during fiscal year represented by the International Brotherhood of ended June 30, 1975. Prior to December 1974 the Electrical Workers, Local 47 (IBEW). The most City received its electric supply at 66 KV but since recent Memorandum of Understanding concerning then such supply is received at 220 KV at its $5 the IBEW expired on October 16, 1975. The parties million Lewis Receiving Station.
both before and 'after the expiration date of the Service Area. Currently the City Of Anaheim Mmorandum of -Understanding, above mentioned, Electric System serves electricity to all the area ohave met and conferred to reach a new MemorandU r
within the City limits.
ran um f U dertan ing be wee stff ffiial1 o
- the, City.and.IEW.was.exeuted..The.erm.of thi
TABLE 1 CITY OF ANAHEIM ELECTRIC SYSTEM Installation of Transmission and Distribution LAnes (Excluding Street Lights)
Circuit Miles Overhead Lines Underground Total Overhead and Eia nee Li d
AcennuUnderground Accumu live Underground FiclY ar-Lns Accumulative Lines Underground Lines Installed Ended June 30 Installed Lines Installed Lines Per Fiscal Year Prior to 1966....
552.87 2.34 55521 1966 6.25 559.12 2.71 5.05 8.96 1968 9.99 569.11 3.07 8.12 13.06 1968 7.94 577.05 2.49 10.61 10.43 1969..................
33.44 610.49 7.57 18.18 41.010 1970 14.27 624.76 12.03 30.21 26.30 1971 19.91 644.67 19.13 49.34 39.04 1972 12.79 657.46 18.78 68.12 31.57 1973 46.30 703.76 24.44 92.56 70.740 1974 174.04 877.80 38.29 130.85 212.330 1975......
8.74 886.54 26.03 156.88 TOTAL..........
.. 33367 156.88 3407
=886-5_ _154.54 156.88 1,043.42 OD 1969o total includes 19.87 miles, 1973 -
35.9 miles, 1974 -
177.00 miles, by acquisition of such lines from Southern
- California Edison Co.
Note: Including street lights, there are 1,348.87 miles of underground and overhead lines in the City of Anaheim Electric Syhzcm..
TABLE 2 ELECTRIC RATES Area Rate Comparisons. The electric rates now CITY OF ANAHEIM ELECTRIC SYSTEM in cfect in the City of Anaheim compare most System Total Miles as of June 30, 1975 favorably with those of other cities in the area.
Table 3 compares electric rates of twelve cities, of Circuit Miles which seven are served directly as retail customers of the Southern California Edison Company.
The 66 KV Lines........
.....-----......... 40.
Company sells power wholesale to both Riverside and Anaheim, while Los Angeles, Pasadena and 12 KV (Three Phase & One Phase) 426.25 Glendale generate their own power.
12/6.9 KV (Three Phase)....-....
84.46 Exact industrial comparisons are difficult because of the necessity for making assumptions for peak 6.9 KV (One Phase)............-.-.-....
58.77 dmands and load factors. However, in view of the 4 KV Lines-............
....... 3 3.58 wholesale power purchase rates and considering the demands and load factors of Anaheim's existing S e c o n d a r ie s.............................
.. 4 0 0 2 0 Secodaris 40.20industrial customers, Anaheim's present industrial Street Lights.............
305.45 rates are generally equivalent to or slightly lower than industrial rates for similar customers in other cities.
N 12
TABLE 3 ELECTRIC RATE COMPARISON BY MONTHLY BILL April 1976 Domestic ANAHEIMKH 50 KWH 1,500 KWH 500 KWH 2,000 KWH R iversd--..........
$8.19
$ 0 1 Rir
$20.6
$50.45
$31.24
$ 99.06 Santa A na9.......
9.18
.22.92 57.72 San Bernardn.....................
........ 8. 6 21.23 53.12 3.89 104.29 San Bernardin 8.62 21.23 53.12104.29 Pomona.
8.62 21.23 53.12 32.89 104.29 Fullerton) 8.62 21.23 53.12 Huntington Beach 8.62 21.23 53.12 32.89 10429 Ontario...................
8.93 21.64 53.53 33.99 Orange!)..........
8.93 21.64 53.53 Lo Agle (
D()...
- ....21.64.... 87 53.53 33.99 105.39 Los Angeles (DW
............... 8.3 21.08 53.21 30.24 103.76 Pa a e a 8.3 21.64 53.21
~.9 053 Gla endal 8.64 24.88 61.20 30.48 8.28 22.201.
(
Municipal Electric System 58.70 60 Generate., Own Power Supply.
r Commcrcial-Singlc-Phae less than 20 KW.
C Served by Southern Califmmerci CITY OF ANAHEIM RATE SCHEDULES At prcsent the Electric System has nine cl ectric rate schedules in effect. Current electric rates were:
revised by the City Council and bccamc effective February 4, 1976. The City provides no free electric service.
Thc following is a* summary of three of the exitn nate cchmmle adr indt customer. classes.('
itn aeShdlsfrrsidetial, cmercial, and inustrial Dom stc eric ( S)
-sigle family General Service (GS-2)(1
- Customer charge
$2.28 Dmn hre Per Mete, Per Month First 200 KW or less of billing toneutom charge
)
Chtro demnd.............$247.00 Enecutgy charge)
- eade Next 1800 KW of billing demand, First 300 KWH, per KWH..
53.04 KNext 8000 KW of billing demand,
$31.24
$.99.0 All excess KWH, per KWH.......
.2 per KW.........................
8 2.12 pe KW.....
9.55129.8 General Service (GS-1)0 smal All excess KW of billing demand, commercial and industrial
.8 9
pner CW..r..................t7 Customer Charge -
single phase $1.14 Demand Charge):
three phase 2.09 Energy Charge.(to be added to demandKW erK
- fbiln customer charge):
First 30,000 KWH, per KWH....
2.4680 First 100 KWH, per KWH 5.422 Balance of KWH, per KW3.
1.826 Next 400 KWH, per KWH...
5.0420 Next 150 KWH, per KWV* of Next~~~~~339 105.39pe W
.5 Nex
- 100KW, er WH.
3.55billing demand, per KWH........... 1.487 Next 1500 KWH, per KWH.....
3.152 All excess KWH, per KWH........... 1.256 All excess KWH, per KW*..
"..2.457 Not less than 200 KW.
(O All City of Anaheim retail lctric rates are subject to a fuel cost adjustmnt applicable to each KWH. The April 1, 1976 retail 3CA i3.910.
Qiher rate schedules not presented include: PowSrCTcYnnecd load (PC); power agricult (PA); lghting-Street and ighwy, Cityowned System (LS-l); Lighting -Street and Highway, Customer.OrWene Installation (LS-2);
mLighting-Outdoor Ara (LO) and Municipal Services (MS).
13 Cutoe chage--$.2 GnealSevie GS2)
Billing and Collecting Procedure. Most electric charactrized the past ten years.
The municipal customers are billed bi-monthly and bills become electric system now serves 69,270 customers (I10%
past due if not paid within fifteen days after the date greater than in 1964-65) who used 1,452.4 million of presentation. Commercial and industrial custom-KWH's in fiscal year 1974-75 (147% above 1964 crs with greater than 20 KW demand and a KWH 65), and generated revenues of $43,361,041 (368%
usage of more than 3,000 KWH per month are higher than in 164-65).
billed monthly.
Service may be discontinued if a past due bill is not paid within the time required Domestic, commercial, and industrial customers in a discontinuance of service notice.
account for 96% of operating revenues and kilowatt hour usage and for 99.3% of the number of custom Delinquency rates and uncollectible bills have trs for the fiscal year ended June 30, 1975. Other tric systems. Write-offs of te municipal elec-types of customer use include municipal street light onlys 49,W00,orit7 of guncollectible bills were ing and agriculture. The source of revenues and only $49,10, or 0.27% of gross revenues, in 1972-usage of power are not concentrated in a single or 73, $36,315, or 0.11%, in 1973-74, and $243,091, small group of customers or in a certain type of or 0.56%, in 1974-75. The increase in 1974-75 customer.
A healthy diversification exists as ex was caused by a change in accounting for uncollect-hibitd in Table 7. The ten largest customers of the ible bills turned over to private collection agencies, electric system account for 18%
of operating If such change had not been made the amount of revenues and 25% of power sold for the last fiscal uncollectible. would have been $75,339 or.17%.
year.
The electric system has a ratio of operating ex penses to operating revenues including depreciation Sales and Revenue.
Rapid 'growth in power
.of 85.9%. Depreciated electric utility plant in serv usage, revenues, and number of customers has ice on June 30, 1975 was valued at $34,396,721.
TABLE 4 CITY OF ANAHEIM ELECTRIC UTILITY FUND Comparative Statement of Actual Revenues and Expenses Fiscal Year Revenue Ended 0Operating Operating Oraing June 30 Revenues Expenses for Debt) 1962..............................
I"............... $
5,937,291
$ 3,475,930
$ 2,461,361 1963.................
1964...
6,846,196 196.....
8,206,489 4,980,772 3,225,717 1966 9,263,080 5,285,137 3,977943 196 6..
... I---.-.-.
9,408,889 5,835,980 3,572,909 1968......--...
1,06,8 19 7.......................
I.....I.........;........ 10,096,182 6,497,239 3,598,943 1969.......-,
............... 11,183,043 7,281,952 3,901,091 1970..........
1,50,7 19 9.....
.................................... 12,560,571 8,542,245 4,018,326 1971 13,272,768 8,801,263 4471,505 1972 13,998,939 9,345,232 4,653,707 1973......
5,908,391 11,643,891 4,264,500 I974........I,08..8 19 3...
.................... 18,087,181 12,327,361 5,759,820
- 1975.----.
30,341,545 197.. :'.
0,3 1,4519,796,896 10,544,6490 43,361,041 35,871,450 7,489,591 D After i rtail rutc incrase wa madc effective by the City The Federal Power Commission suspende a wholeae rate inreatc iling of SCE making more net revenues available.
SOURCE
- City Of Anaheim Annual Financial RR 1961-62 through 1974.75 x e ef D b
$147,90$2,6,6
TABLE 5 CITY OF ANAHEIM Annual Kilowatt Hour Usage by Type of Customer (000's Omitted) eiscal Anaheim By Per Cent Year Commercial and Other Commercial Ended and Public -
Total and June30 Re-idential Industrial Agriculture Agencies KWH Residential Industrial
.1961....
,937........
143,009 357 12,566 221,8,69 29.7%
64.5%
1962
.78,453.
249,620 572 11,471 340,116 23.1 73.4 19613....
85,176
.306,288 810 13,900 406,174 21.0 75.4 1964..........
93,346 412,335 636 19,061 525,378 17.8 78.5 1965..........
107,782.
457,530 1,269 21,173 587,754 18.3 77.8 1966..........
120,301
.483,513 737 22,868 627,419 19.2 77.1 1967..........
125,976 540,773 591 24,578 691,918 18.2 78.2 1968..........
142,453 609,681 624 23,715 776,473 18.3 78.5 1969 161,425 693,391 645 24,705 880,166 18.3 78.8 1970..........
172,842 721,910 775 35,468 930,995 18.6 77.5 1971........
195,831 733,208 626 38,676 968,341 20.2 75.7 1972......
219,912 792,772 758 45,411 1,058,853 20.8 74.9 1973.......
249,556 843,889
-14,340 33,454 1,141,239 21.9 73.9 1974.......
308,253 956,415 18,216 36,569 1,319,453 23.4 72.5 1975...........
343,913 1,050,834 16,871 40,780 1,452,398 23.7 72.4 TABLE 6 CITY OF ANAHEIM Average Number of Electric System Customers by ClassO Fiscal City of
.Yeal Anaheim By Per Cent Yer Commercial and Other Ended and Public aondccu June 30 Resident ial Indutrial Agriculture Agencies Total Residential Industrial 1961.......
22,326 3,359 30 156 25,871 6.3%
13.4%
1962.............
23,797 3,712 31 161 27,771 85.7 13.6 1963..............
25,805 4,176 46 162 30,189 85.5 13.8 1964.............. 26,636 4,456 41 174 31,307 85.1 14.2 1965
... 27,826 4,910 48 182 32,966 84.4 14.9 1966.....
30,093 4,245<D 44 186 34,568 87.1 12.3 1967......... 3,162 4,I226) 42 188 35,514 87.7 11.6 1968...............
32,071 4,143 39 187 36,440 88.0 11.4 1969...............
34,005 4,352 46 202 38,605 88.1 11.3 1970...............
35,424 4,569 45 211 40,249 88.0 11.4 1971....
36,816 4,748 40 221 41,825 88.0 11.4 1972.........
40,277 5,139 41 228 45,685 88.2 11.2 1973...................
45,038 5,453 6
258 50,811 88.7 10.7 1974....
56,16 6,435 96 316 62,863 89.1 10.2 1975.........
61,707 7,092 110 361 69,270 89.1 10.2
) The avcrage number of clctric system customers is based on avrge meters in s8rvice during thc fiscal year.
) Change in rnle schedule resulted in reclasification of customers from comm rcial to r idential rate schedule.
- Pinps ror municipud water system reclassified under ugricultural.
(1) Sharp increase reflects the acquisitioh of remaining service territory within city limits.
15
TABLE 7 CITY OF ANAHEIM Top Ten Customers of the Municipal Electric System Annual KWH Total Customer Type of Business, u00ed Anul Rockwell International Corporation Electromechanical 149,710
$3,215,154 Systems Engineering and Disneyland Aerospace Industry Recreation, California Computer Products Entertainment 61,349 1,415,072 Electronic Equipment, 32,011 719,243 Computers -
Peripheral Equipment and Special purpose computers Delco-Remy Division, General Motors Corp.
Batteries compu Northrop Electro-Mechanical Division Eectro-optical,26,54 574,328 Electro-opical82049 Automated Test
,82 528,040 Systems and Air Pollution and Noise Pacif Telephone Comany fMonitoring Systems DaiieyldHote CTelephone Service 23,753 527,483 Disneyland Hotel Hotel, Restaurants, 17,198 365,657 Kwik'. c Di isjn ofEmhShops Kwikset -
Division of Embart Corporation Residential and Commercial Locksets 1,5 1,6 Monsanto Company -
Packaging Division Plastic Containers 13,56 3,62 American Can Company -
Dixie Products Paper Cups and Conainrs10,630 243,195 Total...............6 8,60
$8,164,777 Top ten customers as a Percent of sales-...................25.4%
17.9%
THIS BLOCK WALL BLENDS A 69/12kv DISTRIBUTION STATION INTO AN ATTRACTIVE NEIGHBORHOOD AREA.
16
TABLE 8 CITY OF ANAHEIM ELECTRICAL DIVISION SYSTEM DEMAND AND ENERGY HISTORY AND FORECAST Year Demand Pct.-MW Energy
.MW Increase M
R Pct.-MfWHR Load Ycar MWIces MKWHR Increase Factor 1.959-60........
38.6 1 9 6 0 -6 1
- 8. 6 1 9 9.3 1961-62....
5 232.64 245.9 23.38
.548 1962-63..8
.4 2.7 349.8 42.25
.620 1962-63.....
.80.2 24.53 450.6 28.82
.641 1963-64........
92.6 15.46 550.2 22.10
.678 1964-65........
101.6 9.72 623.3 13.29
.700 1965-66................
109.8 8.07 652.8 4.73
.678 1966-67................
124.4 13.30 730.5 11.90
.670 1967-68................
137.4 10.45 810.9 11.01
.673 1968-69.........
157.0 14.26 921.2 13.60
.669 1970-71......
.16.0 7.01 978.0 6.17
.664 1970-72 73.3 319.
1,009.3 3.20
.664, 197-7.....
206.3 1904 1,119.2 10.89
.619 197-7...
236.0 14.40 1,209.6 8.08
.585 1974-75............
304.5 6.51 1,429.9 18.21
.571 1975-76.......
325.6 6.51
.1,513.2 6.90
.573 1 9 7 - 7 3 2.66
.9 1, 6 2 7.8 6.4 9
.5 7 5 1976-77.................
343.9 6.40 1,732.0 6.40
.575 1977-78 365.5 6.30 1,841.1 6.0
.575 1978-79................
388.2 6.20 1,955.2 6.30
.575 1979-80.........
411.9 6.10 2,074.5 6.20
.575 1980-81...........
..... 436.6 6.00 2,199.0 6.00
.575 1981-82...........
462.4 5.90 2,328.7
.0
.575 1982-83.........
489.2 5.80 2,463.8 5.80
.575 1983-84 517.1 5.70 2,604.2 5.70 575 1984-85.................
546.1 5.60 2,750.0 5.60
.575 1985-86................
576.1 5.50 2,901.3 5.0
.575 1986-87..................607.8 5.0
,0.
5.50
.575 1987-88 641.2 5.50 3,229.2 5.50
.575 1988-89.
676.5 5.5 3,40.8 5.50
.575 1989-90 713.7 5.50 3,406.
5.50
.575 SOURCE -
City of Anaheim Utilitics Department.
.575 BULK POWER SUPPLY Anaheim has negotiated an agreement (see Ap At the present time, except for economy energy pendix I) which will provide for purchase of an Atrche fromn te, Nexad owr coompay, e expected 325,000,000 kilowatt hours per year of purchases from the Nevada Power Company, the economy energy from Nevada Power Company City of Anaheim purchases its entire bulk power sup-(NPC) for a minimum of 4 years commencing July ply from the Southern California Edison Company
(
NPC im of 4 yer comecigeul under its R-2 Resale Rate Schedule.
maly
, 976. NPC will deliver the energy to Southern SCalifornia Edison Company's (SCE)
El Dorado Substation in Southern Nevada. Anaheim has nego inc order to provide more economical lectric tiated a transmission service agreement (see Appen service to the residcnts of the City, Anaheim is dix 11) with SCE to transmit the energy from its El investigating alternative sources of bulk power Dorado Substation to Anaheim. The agreement with supply.
.NPC provides for a partial payment by Anaheim 17
for economy energy in the amount of $12,500,000.
matly be submitted to thc Federal Power Commis This issue of electric revenue bonds for a four and sion for final order.
one-half year period will provide the partial pay-Docket No. E-8570:
ment amount. It is estimated that this additional A twenty-one percent (21%) wholesale rate in bulk power supply source will provide savings of crease and in addition thereto a fuel adjustment about 15% when compared to the cost of purchas-clause filed by the Southern California Edison Cor ing an equivalent amount of energy from Southern pany on January 2, 1975. A petition to intervene California Edison Company under its R-2 Rate was filed on behalf of Anaheim and other resale Schedule (see Page 6).
cities on January 25, 1975. The cities also filed a Anaheim and NPC have executed an interim motion to reject for failure to comply with the regu agreement providing for purchase of economy energy lations of the Commission, and this resulted in the by Anaheim during the period from mid-May until Federal Power Commission issuing a deficiency letter July 1, 1976.
which delayed the proposed rate increase from be RATE AND ANTI-TRUST LITIGATION coming effective for 30 days. Thereafter, the Federal Except for economy energy purchased from Power Commission suspended the rate increase for Nevada Power Company, the City of Anaheim pur-five months until August 4, 1974. Hearings were chases all of the power required for its electric distri-held in December of 1974, and briefs were filed in bution system from the Southern California Edison February and April of 1975. The parties are still Company. The rates for the purchase of this power awaiting thc initial decision of the presiding Adminis are set by the Federal Power Commission.
The trative Law Judge. By motion on April 21, 1975, the Southern California Edison Company has filed rate cities requested the Commission to reopen the applications to increase the wholesale rates. The Docket in E-8570 to review Edison fuel adjustment rate applications may be suspended for a period of charges to determine whether or not improper up to five months, and thereafter such rates go into charges were being charged through the fuel adjust effect subject to any refund with interest which may met clause, and whether Edison had contracts which be due after completion of hearings before the Fed-precluded it from obtaining alternative lower cost eral Power Commission. The following cases listed fuels.
The Federal Power Commission, by order by their Federal Power Commission Docket Number issued June 17, 1975, referred this question to the are at the stage described herein:
presiding Administrative Law Judge with instruc Docket No. E*7618:
tions to reopen the record for additional evidence A wholesale rate increase filed in 1971. The case and hearings. Hearings were held on this issue in was settled by agreement of the parties dated August January, 1976. Briefs were filed in March, 1976.
4, 1972 ("Settlement Agreement"). The following Docket No. ER76.205 issues related to that case are still to be resolved:
- a. Negotiation of an integrated operations Edison Company filed a fourteen percent (14%)
agreement for the purpose of planning and oper-rate increase in the rates paid by Anaheim. Edison ating the Anaheim and Edison Systems as an in-requested an effective date of January 1,1976. Ana tcgrated electrical system.
heim and other resale cities filed a petition to inter
- b. Southern California Edison retains certain vene on November 24, 1975. The Federal Power discovery documents related to this proceeding Commission suspended the proposed rate' for one which Anaheim contends should be returned pur-month until February 1, 1976. A prehearing con suant to the Settlement Agreement.
ferece was held on January 28, 1976, and proc Docket No. E-8176:
dural dates for Prehearing discovery and the filing A fifty percent (50%) wholesale rate increase of testimony for the hearing have been set.
filed by Southern California Edison on May 8, 1973.
The City of Anaheim and other resale cities filed a THE FOLLOWING CASES ARE IN THE petition to intervene on June 19, 1973. The Federal UNITED STATES COURT OF.APPEALS, DIS Power Commission suspended the rate increase for TRICT OF COLUMBIA CIRCUIT:
two months until September 4, 1973. Hearings were No. 72 -2173and No. 74-1488:
held on this case from July 23 to August 1, 1974.
InFederal Power Commission Docket Numbers On April 21, 1976 the Administrative Law Judge E-8176 and E-8570, the cities raised the "price found Edison's proposed rates and charges to be just squeeze" issue wherein they contended that the Fed and reasonable and, by order, approved the rate in-cral Power Commission had' the authority and crease.
Exceptions to the Administrative Law responsibility to review the cities' contention that the Judge's order will be filed and the matter will ulti-Southern California Edison Company was charging 18
the resale cities higher rates for wholesale power Company filed an application for a pumped storage than it was charging certain of its industrial cus-project to construct a reservoir and generate elec tomers at retail, and that such acts by the Southern trical energy by means of the water falling from the California Edison Company were in violation of the reservoir. Anaheim and other resale cities filed a Federal Power Act and the Anti-Trust Laws of the Petition to intervene on October 30, 1973.
The United States. The Commission determined that it Southern California Edison Company is not cur had no such authority and responsibility and, there-rently pursuing the application, and thus, no action fore, would not permit this issue to be litigated in the has been taken by the Federal Power Commission.
respective rate proceedings. This order was appealed to the U. S. Court of Appeals for the District of Columbia Circuit. The Court of Appeals issued its Navajo Project Layoff Power order holding these two cases in abeyance pending In City of Anaheim vs. Morton et al., Anaheim its decision in Conway Corporation et al. vs. FPC and other resale cities filed a complaint in the U. S.
No. 73-2207 which raised identical issues. The Con-District Court for the District of Columbia, alleging way Corporation case was decided on April 4, 1975, that power from the Navajo Project at Page, Ar and the Court held that the Federal Power Commis-zona, belonging to the U. S. Government and which sion had both the authority and the responsibility to had been disposed of by the Government for a weigh discrimination between two classes of service, period of years to certain investor owned electric only one of which (wholesale) is subject to FPC utilities, was preference power And should have been jurisdiction; and that the FPC, in reviewing a rate disposed of to preference customers under the laws filing, should consider whether the utility filing has of the United States. This action was transferred by as a purpose the intent to forestall its wholesale order dated July 31, 174, to the U. S. District customers from competing with it at retail. The Court for Arizona. The proceedings were stayed United States Supreme Court has granted certiorari pending the decision of the U. S. Court of Appeals in the Conway case, and oral arguments were made for the 9th Circuit in a related case entitled Arizona on April 21, 1976.
Public ower Authority, et a. vs. Morton. The Dis OTHER MATTERS IN WHICH ANAHEIM IS trict Court for Arizona granted a judgment for the A PARTY:
defendants in the Arizona Public Power Authority Docketcase and this was appealed to the U. S. District DThis is a rate p i
o F
Court of Appeals for the 9th Circuit. On Sept ember ower Commission involving Paciefic Gs andel 24, 1975, the Court of Appeals for the 9th Circuit tric Company and certain resale cities located issued its opinion finding that the power from the northern California who raised questions concerning Navajo Project was preference power and that the e anti-competitive effect of the California Power District Court must determine whether the Secretary Pool ( nicompediieec of t ea alecric Pw of Interior abused his discretionary po Iwer in not Pool Southe Cacifnia E dison Com allocating that power to preference customers who pany, Diego G aletric Cony)
T Fd wanted it. The investor owned electric utilities filed San Diego Gas and-Electric Company). The Fed eral Power Commission severed this case from the a petition for rehearing and a petition to the Supreme rate case and established it as a separate proceeding.
Court for certiorari which have been denied. The Anaheim and other resale cities in Southern Califor-matter will go back to the District Court for Arizona nia filed a petition to intervene on June 24, 1974, for further proceedings.
which petition was granted by the Federal Power Commission on May 12, 1975. Subsequently, the ELECTRIC UTILITYFINANCAL Federal Power Commission requested the cities to INFORMATON address in greater detail the alleged anti-competitive From the inception of the Electric System to June practices of Southern California Edison as related ato the California Power Pool and the specific relief 30, 1971, all its financial and accounting transactions to he alforia omcr'Poo ad te secficrelef were recorded in the general fund of.the City.
sought by the cities in this proceeding. The cities Recognizing the need for specialized accounts and filed that response on August 15, 1975. The Federal Procedures as prescribed by the Federal Power Co Power Commission has not taken any further action in te mater.such transactions, the Electric Revenue Fund (some Black Star Canyon Project No. 2730:
times called Electric Utility Fund), with elementary This is a proceeding before the Federal Power accounts which are being xpanded, was established Commission wherein the Southern California Ediso n on July 1, 1971.
19 retyprungteapiatoadtus oato
REPORT OF CERTIFIED PUBLIC ACCOUNTANTS The Honorable City Council City of Anaheim, California We have examined the financi al statements of the various funds and account groups of the City of aemnt Cina Ext June 30, 1975 and for the year then ended listed in the accompanying financial statement index. Except as set forth in the following paragraph, our examination was made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
As descibed in Note I to the financial statements of the Water Utility Fund, the Electric Utility Fund, the Anaheim Municipal Golf Course Fund and the General Fixed Assets group of accounts, the City has not maintained complete property records. In the Water Utility Fund, the City had not recorded significant contributions to its water utility system which have been made by subdividers. In addition, e
bor andi over head costs incurred in connection with self-constructed assets were not properly capitalized in the Water Utility Fund and the Electric Utility Fund prior to June 30, 1971. The City's records do not provide sufficient information to determine the amounts previously not recorded. As a result, there is an indeterminable difference between the amounts shown in the property (fixed asset) and related depreciation accounts in each of the above funds and the amounts which should be recorded therein in conformity with generally accepted accounting principles. We have performed alternative procedures with respect to certain components of property and related depreciation accounts in the Electric Utility Fund and the Anaheim Municipal Golf Course Fund, but we were unable to apply alternative procedures with respect to the remaining portion of such accounts. The City's records were not such as to permit us to apply alternative procedures with respect to property and depreciation accounts in the Water Utility Fund and the General Fixed Assets group of accounts.
Since we were unable to. satisfy ourselves regarding the property (fixed assets) and related depreciation
__accounts, as noted in t preceding paragraph, the scope of our work was not sufficient to enable us to express, and we do not express, an opinion on the financial statements of the Water Utility Fund and the General Fixed Assets group of accounts.
In our opinion, except for the efects of such adjustments as might have been determined to be necessary had we been able to perform a satisfactory examination with respect to the property (fixed assets) and related depreciation accounts, the financial statements of the Electric Utility Fund and the Anaheim Municipal Golf Course Fund present fairly the financial position of these funds of the City of Anaheim, California at June 30, 1975 and the results of operations of such funds and changes in financial position for the year then ended, in conformity withr generally accepted accounting principles applied on a basis consistent with that of the preceding year, after giving retroactive effect to the changes, with which we concur, resulting from compliance with the recommendatiofu s of the industry audit guide and certain other changes as described in Note 2 of the respective* funds.
In our opinion, the financial statements of the General Fund, Special Revenue Funds, Debt Service Fund, Capital Projects Funds Stadium Fund, Convention Center Fund, Anaheim Hills Golf Course Fund, Trust and Agency Funds and General Long Term Debt group of accounts present fairly the financial position of these funds and account groups of the City of Anaheim, California at June 30, 1975 and the results of operations of such funds, and changes in financial position for the year then'endd, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year, after giving retro active effect to the changes, with which we concur, resulting from compliance with the recommendations of the industry audit guide and certain other changes as described in Note 2 of the respective funds.
Our examination has been made primarily for the purpose of, expressing an opinion on the financial state ments of the various funds and account groups (listed in the accompanying financial statement index), taken as a whole. The *accompanying supplementary informa tion is presented for Analysis purposes and is not necessary for a fair presentation of the financial information referred to in the preceding sentence. It has 20
been subjectcd to the tests and other auditing procedures applied in the examination of the financial statements mentioned above and, in our, opinion, is fairly stated in all respects material in relation to the respective financial statements taken as a whole.
ohc statistical information listed in the foregoing financial statement index was not examined by us and, accordingly, we do not cx press azi opinion on it.wanoexmedbusn, ARTHUR YOUNG & COMPANY Santa Ana, California Septcmber 5. 1975, except for Note 10 to the Stadium Fund as to which the date is October 23, 1975 21
TABLE 9 CITY OF ANAHEIM ELECTRIC UTILITY FUND BALANCE SHEET June 30, 1975 ASSETS Current assets:
Cash and investments (Note 1).....
$ 5,144,510 Accounts receivablc, less allowance for doubtful accounts of $20,000 (Note 2) 2,713,891 Material and supplies inventories (Notes 1 and 2) 1,325,891 Prepaid expenses...............
57,324 Total current assets.
$ 9,241,616 Restricted cash and investments (Note 3) 1,824,418 Utility plant (Note I):
Land............
558,112 Transmission and distribution plant
............... $42,927,064 Equipment......................
1,842,561 Less accumulated depreciation......
.............. 44,9,6 10,931,016 3,3,0 Net utility plant...........................
34,396,721 345,462,755 LIABILITIES, RESERVES, CONTRIBUTIONS AND FUND BALANCE Current liabilities (payable. from current assets):
Vouchers payable....................................................
5,900,23 Accrued salaries andwages...
153,898 Due to. General Fund..........................................
1,531,059 Customer deposits (Note............
I.......................
2976 Other ut...
ty p 36,364 Total current liabilities (payable from current.
s.......ts).........
$ 7,911,260 Current liabilities (payable from restricted assets):
Current portion of revenue bonds payable ote 3)..................................250 Accrued interest payable.............................................
201,450 Vouchers payable 35,226 Total current liabilities (payable from restricted assets)................
Long-term portion of revenue bonds payable (Note 3)...................
.7,325,000 Total liabilities (payae......... f Reserves (Note 3):
Revenue bond debt service.
Renewal and replacements..............,37 Total reserves.
1,130,671 Fund balance (Note 1).
28,609,148 289,70675 See accompanying noutes.~~~5 2252 486,67
TABLE 10 CITY OF ANAHEIM ELECTRIC UTILITY FUND STATEMENT OF REVENUES, EXPENSES, TRANSFERS AND CHANGES IN FUND BALANCE Year Ended June 30, 1975 Operating revenues:
Sale of light and power...
1,0 Other.
30,6 Total operating revenues.
Operating expenses:
Cost of purchased power..................
Maintenance and operations.....
,3,1 Maiteane ad peatins.......
3,0,7 General and administrative (including bad debt cxpcnse of $243,091 -
Note 2).
1,32,36
.ercio Ntl..............................................................
1,390,463 Total operating expenses..........
Income from operalions....................
Non-operating income and expense:
Interest and other income.............................................63,313 Interest expense (402,900)
Net income..
NcLe om 6,334,54 1 Less transfer to General Fund.
3,702,143 Addition to fund balance.
balnce2,32,39787 2,3 39 Fund balancc, June 30,1974..................................................................
6327 1_,39,463 Total..................................................
2,2,2 Deduct. in.eas..
inre.erv.s(Note.)..............................
2,2,2 Deut nccs i esres(oe )....
416,477 Fund balanc, June 30, 1975.............
$28,609,148
.Se.acumailingnotes.
23
-638,313
TABLE 11 CITY OF ANAHEIM ELECTRIC UTILITY FUND STATEMENT OF CHANGES IN FINANCIAL POSITION Year Ended June 30, 1975 Source of funds:
Operations:
Net income
$ 6,334,541 Chiarge to operations not requiring funds dcprqciation.................
1,390,463 Funds provided from operations 7,725,004 Decrease in restricted assets 412,359 Other.........................................
46,766 Ueltlsources of funds.................................................................
8,184,129 Us of fundso Additions to utility plant...................................................
................... 7,510,574 R'etiremecnt of revenue bonlds............................................
250,000 ranfer toGenr.lFun................................................ 3,702,143
'outal us". of funds....................................................................
11,462,717 Dec rease in working capital.......
$32858 S~$33,541)
Increase (decrease) in working caitl by copnet Cash and investm ntsc ia, by comp
.on nt:4 0,9
$1,0,463 A cco un ts receivabic.............
( 1 2 2 0 9 7 )
Inventories..........................................................
1,2 89 Prepa id x pcnses..
25,8 4 Vou her pa abl 4,J8429 o
s (4,039,019)
Accrued salaries and wages...........
(37,173)
Tra nsfr tIee Fund 5,0 3,0 Custom.r depo..its 2
,7 Other.......
- 0.
(3,3 4 Decrease in working capital
$(3,27 (3 67,64 )
sCa.ompandying notes.
24 A c onWr ce vb'.
, 1, 9
CITY OF ANAIEIM ELECTRIC UTPLITY FUND NOTES TO FINAM iAL STATEMENTS June.O, 1975
. Summary of Significant Accounting Policies Vacation and Sick Leave Hasis of Accounting The City does not accrue accumulated vacation The accounts of thc Electric Utility Fund are or sick leave, but rather expenses these costs as maintained and the accompanying financial state-incurrd. It is the policy of the City to pay one ments have been prepared on the accrual basis of fourth of the. accrued sick leave plus all vacation pay accounting. It is the City's policy to accrue revenue when an cmployee retires or is laid off.
Such from sale of light and power to the time of the last amounts arc estimated at $344,000 at June 30, 1975.
periodic billing prior to year end.
Utility Plant Utility plant is stated at cost less accumulated Purpose of Fund depreciation. In accordance with industry practice, The Electric Utility Fund was established to ac-cost includes certain general and administrative count for the operations of the City's electric utility, costs.
a self-supporting activity which renders services on Maintenance and repairs arc charged to expense a user charge basis to residents and businesses located in Anaheim.
ized.
i~sfhlixm~'n of undSince complete detailed property records have not En atablishment of Cund Prior to June 30, 1971 accounts of the electric erly account for additions and retirements to utility utility were included in the General Fund. When a plant accounts. As a result there is an indetermin separate fund was established for the electric utility able difference between amounts shown in the ac (June 30,.1971), the excess of assets over liabilities companying balance sheet and the amounts which
($14,629,169) was recorded as the fund balance.
should N shown therein. Moreover, since deprecia Retained earnings for the utility are. not presented tion is provided based on recorded amounts, there is in the accompanying financial statements, because an indeterminable difference between the amounts the composition of the fund balance at June 30, shown in both the accumulated depreciation and 1971 is indeterminable.
depreciation expense accounts and the amounts which should be shown therein.
(ash and Investments Depreciation is provided on the straight-line The City pools idle cash from all funds for the method over the estimated useful lives of the assets.
purpose of increasing interest income through invest ment activities. Investments arc carried at cost. In-aterial and Supplies Inventorie terest income on investments is allocated on the basis Inventories are stated at average cost.
.of month-cnd cash balances in each fund. Details of investments are provided in the aQcompanying
- 2. Accounting and Reporting Changes supplementary information (Schedule J-2).
The following accounting and reporting changes (none of which affected previously reported fund Pen sion Plan balances) have ben made in the Electric Utility Fund:
All full-time City employees whose salaries and wages are paid through the Electric Utility Fund are (a) Inventories of materials and supplies prvi members of the State of California Public Employees' ously reported in the General Fund are now reported
-- Rctirement System. The City's policy is to fund in the Electric Utility Fund.
all pension costs accrued; such costs are determineddeposits l
in a in accordance with the State Statutes under which the Trust and Agency Fund are now reported in the sysnrm was astorize.
Electric Utility Fund.
25
CITY OF ANAHEIM ELECTRIC UTILITY FUND NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 1975
- 2. Accounting and Reporting Changes established on the basis of revenues, up to a maxi (Continued) mum of 2% of the net book valueof the utility (c) The Statement of Changes in Financial Posi-plant. Restricted cash and investments includes re tion presents a reconciliation of changes in working served amounts, as well as undisbursed revenue bond
'capital.
Previously, a. reconciliation of cash was construction funds.
presented.
In March 1975 voters approved a $150,000,000 (d) During the current year the City changed its electrical power generation revenue bond issue. If method of estimating collectibility of delinquent ac-such bonds arc sold, the City will use the proceeds counts and, based on prior collection experience, to participate in various nuclear and coal power accounts assigned to a credit bureau are now written generation projects. At June 30, 1975 none of the off against the allowance for doubftul accounts at the authorized bonds had been offered for sale.
time of assignment. The effect of this change was to reduce accounts receivable by pproinately
$285,000 at June 30, 1975.
Certain general and administrative costs (approx*1
- 3. Revenue Bonds Payable mately $621,000) have been allocated from the Electric revenue bonds of $8,000,000 were issued General Fund to the.Electric Utility Fund. See Note in April 1972 bearing an average interest rate of 4 to the General Fund financial statements.
4.9%. The bonds are being retired at various annual amounts through 1992. A statement of annual debt S. Penion Plan service requirements is included in the accompany ing supplemcntary information (Schedule
-6).
Sec Note 6 to the General Fund financial state m
rents for information concerning the Public Em In accordance with the revenue bond resolution, ployces' Retirement System. Electric Utility Fund a reserve for maximum annual debt service is being contributions to the plan for the year ended June established equally over the five years through 1977 30, 1975 were approximately $302,600 (incud and a reserve for renewal and tejpacsmentse is being in a
funding of prior service costs of $9,300).
28 constuctio funds
TABLE 12 CITY OF ANAHEIM ELECTRIC UTILITY FUND BALANCE SHEET AT MARCH 31, 1976 (Unaudited)
CURRENT ASSETS ASSETS Cash....................................................
$ 4,391,163 Pctty Cash........................................
.1,220 Energy Surcharge Receivable 12,948 Accounts Receivable 3,385,881 Less Estimated Uncoilectibl Accounts Receivable 147,055 3,251,774 Due from Water Utility......
464,225 Materials and Supplies Inventory.
.1,053,945 Prepaid Expense.......
143,871 TOTAL CURRENT ASSETS 43,871.$
9,206,198 RESTRICTED ASSETS Revenue Bond Construction Cash.$
663,914)
Cash with Fiscal Agent
($.6
)......
Cash with Treasurer 893,991 TOTAL RESTRICTED ASSETS 937,864 UTILITY PLANT70,8 Land.................................
Preliminary Enginecrin$ and Investigation.
795,24812 Transmission and Distribution Plant....-..............
....... 44,438,483 General Property.---......
44......
2,061,253 Less A llowance for D epreciation.......-.....
12,027,888 35,267,096 T O T A L U T I L IT Y P L A N T................
2 7,8 8 89 3 5,8 2 5,2 0 8 TOTAL ASSETS LIABILITIES, RESERVES, CONTRIBUTIONS$
CV ERETAINED EARNINGS AND FUND BALANCE C CURRENT LIAB3ILITIES (Payable from Current Assets)
Vouchers Payable........................................................
7,280,625 Sales Tax Payable......
Accrued Wages Payable..11..............................
Energy SrhgePayable.
96,768 Enurg SurchargePabl....................................................
36,640 Due Water Bond Fund..............
,40 D ue Stadium.................
25 Due General Fund 5
CURRENT LIABILITIES (Payable from Restricted390,052
$ 7,862,261 39,5
$78621 Bonds Payable.........I....................................................
187,500 Accrued Interest Paybl 968,50 Accrued Interest Payable.........
9,5 Vouchers Payable (Revenue Construction) 1,505 285,355 TOTAL CURRENT LIABILITIES
,55 23............5 OTHER LIABILITIES 8,147,616 Bonds Payable (Revenue Bonds).1375..
RESEVES I
7,137,500 Revenue Bond Debt Service$
54,0 R evenu B ond D ebt ervice.-.... '.............. I.................................$
54
, 0 Renewal and Replacements......
5707,787 TOTAL RESERVES.
1,253,187 CONTRIBUTIONS Contributions from General Obli ation Bonds..
1..
.,225 FUND BALANCE AND RETAINED EARNINGS Fund Balance at 6/30/71..-..................................
$14,629,170 Balance of Retained Earnings at 3/31/76 14,796,572 TOTAL FUND BALANCE AND RETAINED EARNINGS.
29,425,742 TOTAL LIABILITIES, RESERVES, CONTRIBUTIONS, FUND BALANCE AND RETAINED EARNINGS.$45,969,27
$45,969,270 SOURCE City of Aniahcim Utilities Department.
27
TABLE 13 CITY OF, ANAHEIM ELECTRIC UTILITY FUND STATEMENT OF REVENUE AND EXPENSE For the Nine Months Ended March 31, 1976 (Unaudited)
REEUSThis Year Lost Year REVENUES Sale of Light and Power
$35,730,208 Miscellaneous Installation Charges.......
.16,968 63,9,2 Customer Service Charges (Pro-rata) 6..".
Joint Pole Interests 5,785 4,992 Underground Charges............-..-6,-01493 6104,3 Temporary Power.............................................
12,52, Temoray53we 137,977 Total Operating Revenue.............
2,52 7 1,07 OPERATING EXPENSES Revenue Utilities Director Customer Service (Pro-rata) 70,376 25,549 Charges of Other Departments..---............
Systems Operators (Pro-rata)......
296,505 256,291 Energy Srvice...........
162,55 Administrative and General Expense....
873,45 Substation Expense......
5---..
Purchased Power..............................237,859 159,021 Transmission and Distribution 28,358,698 23,828,908 Services, Meters, Etc.........
547,500 391,821 Salary F ringe B enefits.....
Uncollectible Accounts......
24,84 Total Operating Expenses Before Depreciation 16f663 Total Operating Income Before Depreciation................,25455 6,035 Plant General...43 Pln eea 9 76,19186,9 Equipm ent
.12 8
15,8 Net Operating Income.
ADD NON-OPERATING INCOME.
.......... 3,531,769 Interest Income and Other.
Toa Inc om............................................
301,583 5,4 Total Inco..
me...
LESS NON-OPERATING EXPENSE 3,833735 3-j 7i0 2
Interest Expense and Other Non-operating Expense...........
Net Income to Retained Earnings................
f Ss f
OfAnaheim Utilitiea Departmrnt 28 6,2.8
TABLE 14 CITY OF ANAHEIM ELECTRIC UTILITY CONDENSED COMPARATIVE STATEMENT OF REVENUES AND EXPENSES For the Years Ended June 30, 1971 through 1975 Fiscal Year Ended June 30 Operating Revenue 1974 1973 1972 1971 Operating
$eenue.
43,361,041
$30,341,545
$18,087,181
$15,908,391
$13,998,939 OprtigExese...
3.*5,871,450 19,796,896 1,2361 11,643,891 9,345,232 Operating Income Before 12,327,3 Depreciation.............105 4
9 Depreciation...
5,759,820 4,264,500 4,653,707
.et.
n 1,390,463 1,168512 838,043 759,604 732,848 Net Income.........
,99T 9,376,137
~~~j$~5486
~
~
s SOURCE: City of Anaheim Annual Financial Reports, 1970-71 ihrough 197473.
TABLE 15 CITY OF ANAHEIM ELECTRIC UTILITY COMPARATIVE STATEMENT OF REVENUES AND EXPENSES For the Years Ended June 30, 1971 through 1975 Fiscal Year Ended June 30 OPERATING REVENUES:
1977 197 Sale of Light and Power.......$43,050,935
$29,959,992
$17,806,938
$15,758,562
$13,8,710 Miscellaneous Installation Charges......
03 186,935 58 43,752 49,731 Customer Service. Charges.I.......
6,950 6,990 6,615 6,379 8,372 Joint Pole Interests.................
25,798 3,445 7,396 2,621 8,912 Underground Charges............. 189,664 165,585 196,747 97,077 96,769 Miscellaneous Income 14,791 18,598 1,77 2
7,445 TOTAL OPERATING
-,,977 REVENUES......... $43,361
.041 $30,34$,445 $ 8087,1 8, OPERATING EXPENSES:
$5,908,391
$13,998,939 Utilities Director....
50109 54,683 42,845 30,772 49,692 Customer Service................
542,505 496,138 443,478 328,922 281,920 Purchasing, Stores and Ohr400,899 140,508 143,224 131,735 5,3 Sytems Operators.
164,339 110,868 159,413 127,73 57,936 Energy Services and7,013 122,963 Marketing x3556 4297....................4 112,647 128,742 210,749 Administrativc.Expense'...
493,566 421,397 339,119 379,453 394,719 Substation E~xpense. and.
Purchased Power............32,746,541 9,736,189 16 Transmission and Distribution 17,320,907 0,205,573 7,616,1 Lines..........
Et 531,668 674,505 553,113 Services, Meters Etc................
259,418 227985 215,595 451,853 514,442 Payroll Fringe Benefits.,--71 343,697 221:886 63,254 941,642 Uncollectible Accounts 221 63,204 96,695 TOTAL OPERATING2 3
49,100 38,711 EXPENSES 6,896
$12,327,361 uu
$3587 5( $97
$11,643,891
$ 9,345,232 SOURCfP -
City of Anaheim Annual Financial Reports, 1970-71 through 1974-75.
29
TABLE 16 CITY OF ANAHEIM EXPENDITURES FOR ELECTRICAL SYSTEM CAPITAL IMPROVEMENTS BY SOURCE OF FUNDS city Current Electric General Revenues Revenue Obligation Settlement Total Percent Fiscal Year Current Bond Bond Agreement Capital of the Ended June 30 Revenues Proceedso Proceeds Proceed Improvements Total 1962........----.-.---...
717,037 717,037 100.0 1963...........---...
507,236 322,697 829,933 61.1 1964.....................
1,352,927 117,138 1,470,065 92.0 1965............
625,256 386,481 1,011,737 61.8 1966...................
833,323 833,323 100.0 1967..............
...-.-I--...
680,53 6 14,849 695,385 97.9 1968..............
1,205,940 139,478 1,345,418 89.0 1969.............
972,954 101,473 1,074,427 90.6 1970...............
1,438,927122,192 1,561,119 92.2 1971.....
2,041,472 43,6121,5,4
- 9.
1972.......
1,668,083 37,256 5,225 1,710,564 97.5 1973.............'
2,419,239 1,544,513 3,963,752 61.0 1974...................
3,220,4880 6,553,640
$1,394,088 11,168,216 28.8 1975...............
6,581,2460 187,905
$1,82
,1,933 8.6
$24,264,66
$8,Z3,314
$1,253,145
$2,135,870
$35,976,993 7.4 50 Proceds used for acquisition and integration of Southern California Edison Company distribution facilities serving about 15,000 customers into City electric system.
(iD The Southc 'rn California Edison Company paid the City of Anaheim $2,135,870 on May 9, 1973 in Iconnection with a settlement covering a series of claims lodged by the city.. proceeds of the cash settlement have been used for construction of thc Lcwis 220/66 kv substation. Also, see note 0D below.
- 0) Includes $1,036,563 used for 66112 kv distribution substation construction.
- 0. Includes $2,5h5,081 uwd for contaruction of the Lewis 220/66 kv substation and $350,558 used for Preliminary engineering and investigation. Also, see note 30 above.
30
TABLE 17 CITY OF ANAHEIM DEBT SERVICE REQUIREMENTS ON OUTSTANDING ELECTRIC REVENUE BONDS AND PROPOSED $12,5 0 0,0 00 SECOND ISSUE (SUBORDINATED)
OF 1976 Outstandlng Electric Revrnur Bonds Fiwsal
.ssutes ol 1972 and 1976 Is erIssue Jun..
Ipa l ITtere t Total Princip l
ltmInede Total
-n 5%Combined otal 1976...... "250,000 S
394.150 644,150 in$rs Tota 1977......
325,000 250,000 394,1 644,150 2500 746,625 1071,625 625,000 625,000 325,000 1,371,625 1,696,625 1 978....
350,000 722,250 1,072,250 3,250,000 5U4,375 3,834,37S 3,600,000 1,306,625 4,906,625 1979......
375,Ooo
§~97,WK0 1,072,000 3.425,000 419,375 3,844,375 3,800,000 1,116,375 4,137 1980 400,00) 669,875 l,06,75 3,600,000 246,250 3,846,250 4,000,00000 4,916,005 Note:~~~95,2 Th4Eec91c53,1$4,2,005CO 19?1......
425.W00 639,(0Wj 1,064,000 2,225,000 55,625 2,280,625 2,650,000 694,625 3,344,625 1982..........
4 0 0 0 6 7 5
1 0 7 3 5---45 0,0 0 0 607,375 1,057,375 1983......... 475,000 575,5wK) 1050,500 45,000 675,35 1,05,5 1984 arc nOMo()
546f75 1,046,675 a
5,000 575,00 1,00,th5 1985............525,000 522,975 1,047,9751 18......
500,0000 546,675 1,046,675 1987.....
600,000 468,9Ji3
'1,04,1253 5250,000 522,975 1,047,975 1986....
2,0 4 9,15 1,06,15 6 50 000 4 97,125 1,0 4,125 1 9 8 9 8 6 250 0 0 4 3 8, 1 5 0 1, 0 6 3, 1 5 0 6 0, 04 8 9 11 0 8 9 3 1 9 8 9
6 5 0,0 0 0 4 0 5,5 1 2 1,0 5 5,5 1 26 5, 04 5 5 11 0 5 5 2 1990.....
700,00 3 1, 0 1,071,100 70062
,000 3 8,1 0 1,063,100 1991......
750,00o
-332,925 1,082,925 70, 03 11 0 10 11 0 750,000 332,925 1,082,925 1993........ 825,000 260,750 J,085,750 8275,000 29,450 1,065750 1994.........../15,000 245,300 42,01700 195....6000 2495 434,975 1500 245,300.
420,300 1996.....
225,0K 223,175 448,175
-200,000 234,975
.434,975
%7........
250000 209,675 459,675--
225,000 223,175 448,175 3....
275,000 194,675 469,675 25,000 294,675 469,675 1999.......... 300,000
.1I78,175 478,175 300.
7,000 194,675 469,675 2 0 0 0.........
3 2 50 0 0.
1 6 0,17 5 4 8, 7-2
, 0 6, 7 8, 7 2001.......
350,000 140,350.
490,350 451535,000 160,350 490,1750 2002....
- .350,0M) 1 19,000)
. 469,000 350,000 149030 49,30 2003.......
375,000 97,650 472,650 35,000 9,000 4760 2004...-*
400,000 74,40W 474,400
.4 0,0 7440-7
,0 2005......
400,0M) 49,600 449,600
-400,000 49,400 449,400 2006......
4()(024,800 424,800
-400,000 4,600 424,600 S0,575,000
.'1I1,1 39,300
$24,71.4,300 )
- 12.
,0 t0 2Y i S4.430,6256405,006 f 2,00 2,0 N o t :
T h e F ' c c t rj i i R ev e n u e B$
o d, I% s ic '. o f 1 9 7 2 a n d 1 9 7 6 a r e s c u r d, hy a f ir s t p l d ge o f th c r o s s. r v e n u e Is o h
E l c r c S t m a n hcncc arc Y-nior to the iondh of thib, issue, which amc Pblc from surplus revefnues.cri Sstm n
31
CITY OF ANAHEIM FINANCIAL Total 1974-75 assessed valuation of the City oi INFORMATION Anaheim was $717,308,079. Table 18 presents an The Bonds arc not secured by any pledge of ad clcven-year summary of assessed valuation and esti valorem taxes or General Fund revenues, but are mated full market valuation.
payable solely from the surplus revenues of the TAX RATES AND TAX COLLECTIONS Electric System. However, the financial and eco-Th City of Anaheim tax rate history for the most nomic position of the City of Anaheim set forth Tet of nahei ta rhory fo The mos beow and on the following pages is included in the recent eleven-year period is shown in Table
- 19.
b alw a tementthe forlwinformation es onlyc in t The City has had a $1.05 tax rate per hundred Official Statement for information, purposes only in dollars assessed valuation from 1967-68 through the interests of giving a more complete description 9
5a of the City....
97-5 Table 19 presents the total tax rate per $100 assessed valuation levied in the most representative tax code area in Anaheim. Table 18 presents a ASSESSED VALUATION ten year summary of the City secured tax levy, total current tax levy collections and delinquencies.
All taxable properties in the City except public utilities, are assessed by the County Assessor while DIRECT AND OVERLAPPING DEBT public utilities properties arc assessed by the State The direct and.overlapping bonded debt for the Board of Equalization roperties at e assessed at a City of Anaheim is shown in Table 20 for informa reported rate of 25% of estimated "full value".
tive purposes.
TABLE 18 CITY OF ANAHEIM Aseessed Valuation and Tax Collection Fia lated Valuat ion Total
.aper Fiul Year Fall For City Current Percent Full Junded Market Revenue Secured ax Levy of Levy larket June30 9valua6ion5 Iurp5ei j Tax Levy Collections Uncollected Population Valuation 1965........$,68531,000
$276,665,270
$3,043,318
$2,999,126 1.5%
146,000
$ 7,318 1966........
1,182,564,000 305,411,360 3,359,525 2,99 0.8 150,400 7,863 1967.............
1,278,264,000 329,045,250 3,619,498 3,482,163 3.8 151,900 8,415 1968........ 1,472,955,000 377,285,450 3,987,459 3,965,881 0.6 158,200 9,310 1969........ 1,616,295,000 412,389,790 4,330,093 4,258,707 1.6 164,700 9,814 1970...........
1,757,940,000 446,256,907 4,685,975 4,531,284 3.3 166,700 10,455 1971............
2,065,782,000 521,860,111 5,180,064 4,992,935 3.6 173,800 11,886 1972.........
2,166,388,000 545,374,168 5,418,580 5,336,378 1.5 180,000 12,035 1973............
2,432,393,000 608,098,255 6,049,989 5,832,800 3.6 186,200 13,063 1974.........
2,616,418,000 654,104,478 6,089,903 5,856,799 3.8 187,400 13,962 1975..............
2,829,232,000 717,308,079 6,648,245 N.A.
N.A.
191800 14,959
()FstimatVe full market.vatiuaaion is hased on the Orange County Assessor's ratio of 25%, effcgivc since 1961-62 for all propcrty exept public utiities property. Estimated full mrkct valuation for public utilities was based on the ratio used each year by thc State.Hoard of Equalization.
SAh~el~d valtiofl for rcvenuc purposes conshist.% of the nct valuation (ascscd valuation Icss all cxemptions) plus the llomcowncrs' exemnptions and. the Business inventory exemptions for 1969.70 through 1974-75.
SOURCES
- County of Orange AIditor-Controller's Office; City of Anahcim Financial Reports.
32
TABLE 19 CITY OF ANAHEIM TAX RATE SCHEDULE (Tax Code Area i -
Typical Code Area)
YerCity a/ Anahe len T
Year Ct of4 wemOranke OrallJec Metro.
TxRt Julie 30 General Debt Sho ni ud Wae e'G e er lCounty Conshined Coune Oan t' Ap oltoaar Govrnment Lirary Service Total Oranje Disrifs District Con l I Pei 965a ontro l d District Other Valuation J965..............$1641 $.2206 S.713
$11000
$1.7200
$.6964
$.5104 $.3000
$.1400
$.2950
$8.7618 0.5497 1.1000 1.730 0 4.4820
.3000
.1400
.3270 9.0374
.1967..................... 5503
.5497 1.1000 1.7300 5.1276
.4651
.2895
.1400
.2747 9.1269 1968........
.5500 5
1.0500 1.7100 5.0722
.4421
.2753
.1400
.2812 8.9708 9...
.600
.4200 1.0500 1.6800 5.2577
.4263
.2663
.1600
.2700 9.1103
.97................
AU3 ).
.420 1.0500 1.6700 6.3168
.4261
.3591
.700
-. 2388 10.2308 97
.7( )
.3500 1.0500 1.7160 6.5633
.4256
.2505
.1700
.2365 10.3 09 3972..............
.. 00
.3000 1.0500 2.068 6,5185
.4255
.2481
.1700
.2072 10.6881 1973...............
.800
.2500 1.0500 2.1950 6.6102
.4254
.2395
.1500
.0925 10.7626 194)...
2500 1.0500 1.734 6.3384
.4206
.2332
.1400
.2742 10.1905 8500
.2W0 1.0500 1.6300 6.1294
.3793
.2169
.300
.2440 9.7796 SOURCE -County of Orange Tax Code Report, County Auditor-Controilcr's Office.
ANAHEIM HILLS GOLF COURSE 33
TABLE 20 CITY OF ANAHEIM STATEMENT OF DIRECT AND OVERLAPPING DEBT As of June 30, 1975 TotalApplicable to Boded City of Anaheimn Jurisdiction Bne
__Indebtedness Ratio D ollar County of Orange....
4,36,00
.1110 48,515 City of Anahcim().......
,5,0
.0 08 1 50 0 Anaheim Elementary School District 8,155,000 1
,155,0 Anaheim. Union High' School District 35,800,000
.5900 Fullerton Union High School District....10,239,000
.0024 24574 Fullerton Elementary School District Garden Grove Unified School District 6,75,000
.0011 743 Orange Unified School 24,395,000
.0953 2,324,844 Placentia Unified Shool District laucna Unirk e School Distric.t 20,942,000
.3376 7,070,019 Buena Park Elementary School District 2,598,000
.0087 22,603 Centralia Elementary School District 2,307,000
.1362 314,213 Magnolia Elementary School District
.730,000
.6628 483,844 Savanna Elementary School District 763,000
.2816 214,861 North Orange County Jr. College -FJC 64,000
.0024 1,536 North Orange.County Jr. College - NOCJC............
5,250,000
.4823 2,532,075 Rancho Santiago Community College...............426,000
.0426 22,408 Buena Park Library District.
810,000
.0002 162 Yorba Linda Library District........
619,000
.0650 40,235 Orange County Flood Control District 22,995,000
.1110 2,552,445 Stanton County Water District..
20,000
.3387 6,774 Yorba Linda County Water District......
1,520,000
.0320 48,640 Metropolitan Water District -
Anaheim 1,867,000 1.0000 867,000 MWD -
Orange County Municipal -
Orig. Area...........102,204,000
.2166 22,137,386 Orange County Waterworks #3 160,000
.0587 9,392 Orange County Sanitation District #2......
.5,130,000
.3305 1,695,465 Orange County Sanitation District #3.
7,559,000
.0927 700,719 Cypress Recreation and Park -District.............................
2,700,000
.0104 28,080
$75,645,258 Debt Ratios Direct DebtOD..........--------................................$.,5
,0 Overlapping Debt 0.............................................................
68,1 5 Overall DebtQ)....................
67 928 Population....(1976..........State-Local...C.....s).................
$75,645,258 P op ulaticin '( 1976 Sp ecial..
..S..te
-Lo.c.l.
.en.....
9, 8
.Assessed Valuation (75-76 Gross)........................................................
1976,382 Estimated. Basis of Assessment.............................................................
25%
807,673,07 Estimated Markct Value (75-76).......................................................
$3,230,692,296 Direct Debt Overall Debt Per Capita........
.......................................................... $41.53
$385.19 As a Percentage of Assessed Value....................
.1
.7 As) an Peditentagte dfrket Vaue.........................................................
0.25%
2.34%
0 In diti t hediumct idbeness. there arc, as of June 30, 1975, $IN,S20,OQO L-caseorcnital bonds of the City of Anaheim (Californiai) SuduInc., and $19,955,000 Revenue bonds of the City of Anaheim and Anaheimn Union High School District Community C.enter Authority, both of which arc payable from scmi-annUld lease rentals of approximateiy
$578,0.00 for the stadium and $825,000 for ihe convention cn tob pi by the City of Anaheim to the issuers of said adequate to pay the Convention Center jcase-rentalb.
The City also has ntrd.inio a contact with the Robrt H. Grant Corporation to purchase 235.8 ares of land for ihe purpose of building a scond municipal golf Couirse. The Purchase price was$23,0 tbarniteetre 3580,00000t era neetr of 6% per annum and pa'yable ver an* IN year period; the annual installment payment of $210,698 is payable solely from golf course revenuses of the City's existing and new golf courses.
(2) Overlaupping general obligation debt for June 30, 1975.
34
TABLE 21 CITY OF ANAHEIM DEBT SERVICE REQUIREMENTS ON OUTSTANDING GENERAL OBLIGATION AND WATER REVENUE BONDS General Obligation Bonds Water Revenue Bo Fiscl Yar WterRevenue Bonds d
.- / n e g r June 30 Principal Interest Total Principal interest Total 197.................. $,085,000$
265,920
$1 350,920
$ 100,000
$ 84,323 $ 184,323 1977.
1,085,000 230,398 1,15,398 110,000 78,022 188,022 1979........
1,045,000 194,435 1,239,435 115,000 71,273 186,273 1979......
..........1,045,000 159,007 1,204,007 120,000 65,182 185,182 1980..............
1,050,000 123,580 1,173,580 130,000 59,618 189,618 1981..
............ 1,050,000 87,933 1,137,933 135,000 53,587 188,587 1982...............
560,000 62,055 622,055 145,000 47,039 192,039 445,000 43,545 488,545 155,000 39,797 194,797 4....
1445,000 28,500 473,500 165,000 31,875 196,875 1985.....
115,000 13,455 128,455 175,000 23,375 198,375 1986.............
115,000 8,970 123,970 185,000 14,375 199,375 1987......
.............. 115,000 199,375o
,87
$8,155,000
$1,222,283
$9,377,283
$1,730,000 4,875 199,875
,377,283-0
$573,341
$2,303,341
" oMNALS SPEED UTILITY CUSTOMER INFORMATION 35
TABLE 22 CITY OF ANAHEIM GENERAL FUND STATEMENT OF REVENUES, TRANSFERS AND EXPENDITURES Year Ended June 30 REEUS1975 1974 1973 REVENUES Property Taxes.................
$ 5,067,564
$ 4,598,846
$ 4,575,930 Other Taxes Licenses and Permits.................................
12,6 7,398,72 1,30 Fines, Forfeits and Penalties.....................................57,24 1472 3,866 From Other Agencies....................
4,7,071 5,17 4,4,975 Revenue from Use of Money and Property...
73,294 7
323,67 Current Service Charges..........................
Sale....f.C....od..ties 2,599,244 2,586,311 2,205,515 Sale of Commodities...........
Other Revenues..................3,168.4,2 Toa 180,500 174,751 133,355 Total.............
23,411,257 22500,423 19,417170 Electric Utility.......................................................
4,323,302 3,000,000 3,000,021 WaterUtility 5,067,564.$.4,598.......................................
1,305,9 Other..............
,2 1,398,47 1,31,0 ota1and 486 715,214 766,064 evn.e.Tanfe.....
............. $29,334,295
$27,715,637
$24,489,1 69 EXPENDITURES General Government..............................$
3,776,637
$ 3,020,245
$ 2,957,140 Lrar.....
ar.......
es......
.1,463,990 1,733,919 1 1,580,303 liy
.1,253,953 1,050,080 1,011,848 Fire.............................................
4,229,97 63,077 3,294,8992 Public Works.................................
Public Utilities 7,343,418 6,902,899 5,905,795 PaksR2toa7 0s 3...........
272,513 PGrk.eneraonmendt.
3,145,719 2
2,0,65 L ibr ary.... p....... re..............
Tota Expenditures..........................$30,176,351
$26,205,068
$23,347,355 SOURCE -City of Anahcimn Annual Financial Reporu.
36'
TABLE 23 CITY OF ANAHEIM WATER UTILITY FUND STATEMENT OF REVENUES AND EXPENSES Year Ended June 30 1975 1974 1973 Operating Revenues Sale of Water......................................$5,074,988
$4,719,597
$4,299,058 Other..
668,115
.- 976,844 561,376 5,743,103 5,696,441 4,860,434 Operating Expenses................
4,092,214 3,330, 18 2,816,247 Operating Income Before Depreciation.......................1,650,889 2,366,323 2,044,187 Depreciation........
1,039,384 989,082 934,408 Income from Operations........
1,377,241 1,109,779 Interest and Other Income................
160,107 229,959 133,694 Gross Income...................................................
1,607,200 1,243,473 Interest Expense..........................................87,322 93,022 98,423 Net Income....$684,290
$1,514,178
$1,145,050
-SOURCE -Cily of Anaheim Annual Financial Reports.
ANAHEIM PARAMEDIC UNIT 37
ANAHEIM STADIUM, HOME OF THE CALIFORNIA ANGELS BASEBALL CLUB
THE CITY OF ANAHEIM ECONOMIC GOVERNMENT BACKGROUND Anaheim is a chartered city and utilizes the Coun LOCATION AND GENERAL BACKGROUND c-Manager form of government. The City Council The City of Anaheim, founded in 1857, is situated is composed of five members elected at large to over adjacentlapping four-year terms with one of its members
- dan o the r Sana A n y Ive i the cent r are chosen by popular vote of the electorate to serve'as of northwestern Orange County It is the center of Mayor. The Mayor presides over the meetings of major residential, commercial, and light industrial the Council but exercises no veto power over any development within the southern sector of the greater legislation. The executive branch of the City gov Los Angeles-Orange County metropolitan area and crnmcnt is headed by the City Manager who is the hub of one of the fastest growing regions in the nation.
Anaheim is the largest and oldeit city in the AREA AND POPULATION County and the home of Disneyland, and the Amer-According to the 1976 combinedspecial state and ican League baseball club, the California Angels, ocal census, the City has grown over the past 119 whose home park is the City of Anaheim's 43,000-years into a community of 196,382 persons residing seat stadium.
in an area of 38.8 square miles. The Anaheim Santa Ana -Garden Grove standard metropolitan Tourism associated with Disneyland and light statistical area population increased 101.8% from industries are the foremost contributors to the City's 1960 to 1970 resulting in a greater growth rate than economy.
economy.any other SMSA in California.
CLIMATE City's growth has occurred since CLIMATEWorld War 11. In the 1950-1960 decade, the City's Anaheim's climate is sunny and uniform through-population increased sevenfold, and in the past out the year with warm summers and mild winters, decade it has increased by over seventy percent.
due to the influence of the near-by Pacific Ocean.
Western Orange County has undergone a rapid Average temperatures vary from 53oF. in January to transition from a predominantly agriculture economy 72 0F. in July. Afternoon humidity averages between to one of light industrial manufacturing and process 45-52 percent throughout the year. Prevailing winds ing, together with a concomitant growth of'in are onshore westerlies with a mean speed of six tion, residential development, and commercial serv m.p.h.
Average annual precipitation is fourteen ices.
Area and population growth of Anaheim inches, most of which occurs during the winter during this century is set forth in the following m o n t h s.t a b u l a t i o n :
TABLE 24 CITY OF ANAHEIM AND ORANGE COUNTY Area ind Population CctyiofmAnahelm City As chonrbpop Orange Percent t
CuPercent County Population (Sq. Miles)
Population Change Population of County 190...........
3.70:
1,456 19,696 74 1920.....
3.70 2,628 80.5%
34,436 7.6 1930Acordn.
to t.70 5,526 110.3 s61,375 9.0 19ca census, the City3.70 10,995 99.0 118,674 9.3
............. 3.70, 11,031 0.3
'130,760 8.4 1950................................. 4.40 14,556 32.0 216,224 6.7 1960...........
27.34 104,184 615.7 703,925 14.8 197..............
an..33.10 166,701 60.0 1,420,386 11.8 1974.
...........37.98.
186,200 11.7
.1,584,259 11.8 1st..atistc.62 187,400 0.6 1,646,314 11.4 1975..............
.......38.84 191,800 2.3 N.A N.A.
190projected.......N.A.
214,900 N.A.
1,980,600 10.9 1990 projectcd...................
.N.A.
254,900 N.A.
2,560,900 9.9 SOURCES -iniled Slats im or Cnsus; California Departmant of Finance, Poplation Research Unit, City of Anaheim Wold WriIcIut e19 019 0dead,th it '
t i
mdanning Dio ltnion.om 39
EMPILOYMENT AND INDUSTRY The labor market of Orange County is stable, the trends towards greater concentration of cm mainly non-migratory, and dependent upon both ployment in manufacturing, the wholesale and retail local and commuter workers with a wide variety of trade, government employment and the service employment skills. The following tabulation shows sector.
FIRST QUARTER BUILDING PERMIT VALUATIONS TOP TEN SOUTHERN AND CENTRAL CALIFORNIA MUNICIPALITIES*
Total Valuation Total Valuation City January - March, 1976 city January - March, 1976
- 1. Los Angeles................
$242,845,594
- 6. Santa Ana**........$
26,468,000
- 2. San Diego...........
82,872,614
- 7. Escondido...........22,579,043
- 3.
El Cajon 37,823,000
- 8. Fresno 20,591,846
- 4. ANAHEIM**
36,541,000
- 9. Huntington Beach".
20,524,000
- 5. Yorba Linda*.........
29,167,000
- 10. Riverside............19,444,674 In California in 1975, Anaheim ranked 8th in In the United States in 1975, Anaheim ranked 8 1st Population and 5th in ncw construction.
in population and 40th in n Tw construction.
Fxclude,, unincorporatcd arcah of the res~pective couflticb.
Orange CounJy City.
220HuningtonBeach*..Br0,24,00 SOURCES -
City of Anaheim IBuilding Division; the LsAngles Times; and Dun and Bradstreet.
LEWIS SUBSTATION 220 K VCircui Breakers 40
CITY OF ANAHEIM, CALIFORNIA BUILDING ACTIVITY Type of Construction 1970 1971 1972 973 1974 1975 Total Valuation All Permits..........$74,675,114
$70,869,516
$76,885,589
$106,532,440
$89,245,185
$99,524,051 Total Permits Issued.............................
3,948 4,363 5
4 4,619 5,073 NEW CONSTRUCTION Total Valuation New Construction..
69,18,450 65,344,171 69,502,005 97,749,530 81,947,020 90,402,495 rotal Permits New Construction 1,117 1,567 1,554 2,077
.1943 2,009 Total Residential Valuation..........47,296,806 32,467,800 36,983,572 54,846,742 36,242,160 64,615,948 Total Residential Permits..............
.641 1,104 1,067 1,364 998 1,277 Total Residential Units................
2,305 2,59 3,090
,375 1,795 Singic Family Valuation...........7,474,765 16,874,974 15,693,008 2,896,220 27,107,538 57,195736 Single Family Permits.................
381 862 627 880 872 1,146 Single Family Units..
381 862 627 880 872 1,294 Multiple Iamily Valuation........39,822,041 15,592,826 21290.564 32,950,522
,900,465 6,710,212 Multiple Family Permits.............
.260 242 "4
484 71 29 Multiple Family Units..............
,993 1,443 1,892 2,192 459 402 Other Valuation.(.
Other Permits 2345 10 Other Units..
44 9
Total Non-rcsidential Valuation......21,883,644 32,876,371 32518,433 42,902,783 45,704,860 25,786,547 Total Non-residcntial Permits....
476 463 487 713 955 732 Industrial Valuation.
Induistrial Valrmion.......:.......
8,655,849 4,459,552 8,695,046 24,680,277 28,105,009 9,803,347 Industrial Permits...............
23 01 02 26 Store and Other Mercantile Val ualion',..................
Store and Other Mercantile Pcrmits.
94 66 24 Other Non-rcsidential Valuation...
3,227,795 28,416,89 23,823,387 13,805,606 14,076,943 11,798,900 Other Non-residcntial Permits.
394 425 427 469 647 647 ADDITIONS AND ALTERATIONS Total Valuation.
5,494663
$ 5,525,808
$ 7,383,584
$ 8,782910
$ 7,245,065
$ 9,097,006 Total Permits.
Residential Valudio Toa emt 2,339 2,193 2,772 2,846 2,609
.3,021 Residential Permain..................... 2,665,162 2,344,190 2,722,550 2,77.7,364 3,417,589 4,092,672 Residential, 1,602 2,088 2,109 2106 2,427 Other3,181,155 4,661,034 6,005,546 3,827,476 5,004,334 O th e r P e rm its 6 9 2 6 3 7 3 7 5 0 3 A ll O ther V aluatio n )..
1 All Other Permits..
463 576 Renewals I........
29 27 28 0
22 17 General A. The above breakdownti arc based-upon current reporting categories and definition% used by the City of Anaheim -Building Divihion in its mon thly, quarterly and annual reports on Building Activity within the City. The categories are based upon definitions established by the Social and Economic Statistics Administration of the U. S. Department of Commere bureauj of the Census.
H. Installation of this system began in 1973 and was completed during 1974, In most cases, the changes in the reporting syhtem involved refinements in the breakdown.% and tabulations and had it very limited impact upon totals. As a result, reliable comparisons of "Total Valuation"' for All Permits, New Construction, Residential, Non -residential, Additions and Alterations can be made from year to year. Single Family Valuations also are generally comparable, The 1974 changes in the reporting system did, however,, result in clatisification of condominium and townhome structures as single fiamily housing for reporting pujrposes,.Induistril valuations also are generally comparable. Despite minor changes in definitions over the year, *ndustril a
e eal e nue od srb ulig o sn n
id o
n or processing fornm.
ra"hsgnrlyenusdtdeciebiinsosngoekdofanufacturing C. Where columns arc left blank, comparable information was not available.
,j Includedj in Ot her Non-residdentiail Valtuition prior to 1974,
( Included in Other Non-residntilial Valtiation prior to 1973.
(i) Valuations were first placed on demolitions in March, 1974.
So UkcE-- city or Anaiheim Planning Depairtment, Building Division.
41
TABLE 25 ANAHEIM/SANTA ANA/GARDEN GROVE MARKET AREA EMPLOYMENT BY INDUSTRY PercentNubroEmlye industry Type Increase
______1960-73 1973 1972 1971 1970 1960 Total Civilian Labor Force...............168%
568,190 511,730 514,800 510,600 211,900 Unemployed Percent of Labor Force..
5.2 7.6 6.2 7.6 5.8 Employed.
170 538,640 472,840 482,900 470,800 199,500 Agriculture, Forestry and Fisheries.............25 9,000 8,280 4,600 4,400 7,200 Construction.........................55 31,900 27,350 21,500 21,300 20,600 Manufacturing.
194 144,720 124,860 113,600 114,300 48,800 Transportation, Communications, Utilities...
140 16,790 15,720 14,400 14,600 7,000 Trade, Wholesale and Retail......................174 23,700 108,340 106,300 102,900 45,100 Finance, Real Estate, Insurance.................286 27,400 24,680 21,600 20,200 7,100 Services.............
174 100,100 84,380 72,800 70,900 36,500 Government.......
235 82,360 74,560 74,300 69,600 24,600 All Other...........................
3 2,670 4,670 53,800 52,600 2,600 SOURCE -
Employment by Industry for Census Tracth and Statistical Areati in Orange County, California State Employment Dcvclopmcnt Department, Dcccmbcr, 1974.
SANTA ANA, ORANGEI, GARDEN (;Ro FREE.WAY INTERCHAG 42
As a city once nationally famous for its Valencia papcr products, computer hardware and software, orange groves, Anaheim has undergone a transfor-
-food, processing and packaging, and plastics. The mation and now has more than 1,000-light industrial following tabulation is compiled from the Anaheim firms representing some of the nation's largest corn-Chamber of Commerce December 1974 Community panics. Manufacturers include electronic equipment, Economic Profile and Industrial Directory.
Firm Product Employees 1.
Rockwell International.......I.................. Electronics% & Electro-Mechanical A11,000 Products
- 2. Disneyland.
Recreation 6,000
- 3. California Computer Products, Inc......Computer Hardware & Softwarc 2,345
- 4. Pacific Telephonc......
Telephone utility 1,800
- 5. Northrop Corp.........
............ Electro-optical, automated test 1,525 and monitoring systems
- 6. Interstate Electronics Corp..................Electronic Scientific Data Systems 1,015
- 7. Kwikset, Division Emhart Corp............ Locksets 900
- 8. Disneyland Hotel...............................-Hotel 876
- 9. Lv Ling-Altcc, Inc.........................Electronic, hi-fl and communication 775 systems
- 10. TRW Credit Data....--..................... Cr dit Reporting 600
- 1. Laura Scudders.
.................... Food Products 525
- 12. Crtron Corp..
Magnetic Tapes 500 1E3.
Dllco-Remy Div Batteries 450 Gencral Motors Corp.sy
- 4. Lear Siegler-....................... Communications & Video Eupmn 450
- 15. Anaconda Electronics Co.................... Telcmmunications
.425
- 16. Astrodata Electronic Equipment 400
- 17. Global Vin Lines C.................. Long Distance Moving 350
- 18. Menasha Corp......................... Containe 350
- 19. Circle Seal Corp.....
Valves 350
- 20. Anaheim Founidry Co........................ Grey Iron Foundry 325 43 I 5
COMMERCIAL DEVELOPMENT The City of Anaheim is the largest commercial City were $704 million in 1974, accounting for 14 center in Orange County. Taxable retail sales in the percent of the County's five billion dollar total.
TABLE 26 CITY OF ANAHEIM AND COUNTY OF ORANGE 1974 Taxable Sales Typ olAnahein Orange County TypeTotal Sale Total Sales Automobile Dealers and Auto Supplies..........
$ 69,403,000
$ 696,922,000 General Merchandise Storcs......
46,281,000 624,465,000 Eating and Drinking Places.............
70,676,000 486,753,000 Other Retail Stores.
41,768,000 281,030,000 Food Stores.............................................
39,791,000 338,531,000 Building Materials and Farm Implements.
44,910,000 322,75 1,000 Apparel Stores...................
21,917,000 186,553,000 Home Furnishing and Appliances.
23,414,000 172,872,000 Packaged Liquor Stores................
12,194,000 103,228000 Drug Stores..............................................7,910,000 97,591,000 Service Stations...........................................
3 5
Retail Stores Total...
T29,74077 All Other Outlets........................................274,809,000 1,503,302,000 Total All Outlets................................................................
70-4,549,O ~ $5,210,5j 19, 000Y SOURCE -
California State Board of Equalization Fourteenth Annual Report, 1974.
As a financial center of Orange County, Anaheim 1972 totalled $42 billion, and the monthly average has thirteen branches of the State's leading banks of demand deposit accounts was in excess of one i-and five savings and loan associations.
Debits to
.billion dollars, as indicated in the following' table.
commercial bank accounts in Orange County in TABLE 27 COUNTY OF ORANGE Bank Deposits and Demand Deposits rTotal Debit T
to Monthly Average YearCommerclal Accounts Demand Deposits 1950.0.............................0$
,941,364$
1955.
2,814,135,000 178,859,000 1960..............*...................................
6,418,990,000 295,439,000 1965.......................
........ 14,941,216,000 551,640,000 1970................
28,884,029,000 863,829,000 19719...............................33,921,861,000 971,300,000 1972........
9..............................42, 123,510,000 1,040,341,000
.2N.A.
1,253,393 1974.
NA.
1,335,259,000 SOIJRCiS Orainge Couinty 1'rogrc~s Rcporl; Fcdicral Deposit insurance Corporation.
The Effective uying Income Per Housthola in for thc Stat of California, according to Sales Man 1974 in the City, of Anaheim Wias $15,03 1, corn-'
agemcnt Magazine's 1975 Survcy of Buying Power.
p~ared with $15,826 for Orange County, and $14,349 44 ToalSae
COMMUNITY AND RECREATION athletic facilities, and 32 neighborhood parks and FACILITIES playgrounds.
There arc more than 150 hotels and motels within the City of Anaheim, and its immediate environs Ote m a nd r e A na a d m s enti fC eltes providing over 10,000 rooms, the majority of which are within walking distance of both Disneyland and And th e
i A g s baseb a
ta (f t
the City of Anaheim Convention Center. There are more than 260 restaurants in Anaheim.
Nearby within an hour's drive are Knott's Berry Farm in the adjacent City of Buena Park, the Orange Countv is rapidly becoming the tourist Los Alamitos Race Course, the renowned Spanish center of Southern California. Forty-four miles of Mission of San Juan Capistrano, and the Art Colony shorelines with more than twenty publicly-maintained at Laguna Beach with its annual art festival, and beach areas provide year-round aquatic activities.
within two hours, the numerous summer and winter In Anaheim, there are two 18-hole golf courses and resort areas in the San Bernardino and San Jacinto ten community parks, four of which contain major mountains. Tle Newport Harbor area, a few miles ONE iu D
e n
h n
ioAJOR COMMUNIY PARKS 45 an7h0aioni nesbsbalta o h
-American-I-ague)-with its 43,000-seat-stadi-
south of the City, provides anchorage facilities for Currently, thcre are scvcn major areas of attraction, over 5,000 private boats. Boat launching ramps, which are exotic environments recreated for the deep sea fishing, skin-diving, and other related water cnjoyment of its guests.
activities are readily accessible.
Other community facilitics include a main public A major attraction in Disneyland is the first pas lib ra ry a n d th ree b ran ch lib ra ries, e ig h t gen eral h o s-s needrin m on o syste In A e rica mw hich pitals with a capacity of 841 beds, 4 F.M. and A.M.
1961, the Disneyland-Alweg Monorail System was stations, 32 banks and 14 savings'and loan associa-extended into a 2 mile, high speed rail line con tions, and 80 churches of all major denominations.
neing Disneyland Park with the Disneyland Hotel.
Disneyland. Disneyland, a Division of Walt Disney Productions, occupies a 180-acre site in the southern Anaheim Convention Center. The $23,000,000 part of the City of Anaheim adjacent to the Santa City of Anaheim Convention Center is now in its Ana Freeway and is one of the major tourist attrac-eighth fiscal year of operation. Te financial success tions in the nation.
of its operation is manifested in the $883,000 excess revenues produced by operating revenues and a room Disneyland was opened in the summer of 1955 tax during the last fiscal year. Total payroll' for with an original investment of $17,000,000. Today maintenance and operation was $1,174,000 for the the total capital investment exceeds $200,000,000.
same period.
MAIN STREET -
DISNEYLAND 46
The Convention Center complex hosts many clubs. The Stadium is also the site of many other ati onal, and local conventions and is the 2
al functions, including high school, junior col site of local entertainment events employing the lege, and college football games, religious events, talents of national and international artists and per-rock concerts, musical offerings, graduations, and formers.
uring the last fiscal Year more than local school and college baseball games.
675,000) paid general public admissions were ac commodat d in the Center facilities, most of which 0
0uaroo were for events of local origin. The Center has seated EDU as many as 11I,000 persons in some of its various The City of Anaheim is served by 5 elementary, activities.
2 union high, 3 unified school districts, and two community college districts. However, almost all of Anaheim Stadium.
The Anaheim Stadium was the City lies within nine,districts: the Anaheim,
- construte in 1966 at acost of $20,235,000 and is Magnolia, Savanna and Centralia elementary school the official home of the California Angels baseball districts; the Anaheim Union High School District; club of the American League*. More than 12,'500,000 the Placentia Unified* School District; the Orange people have patronized the facility since its opcning.
Unified School District; Rancho Santiago Community College and the North Orange County Community The City owned Stadium has a -seating capacity of College District.
October enrollment statistics for 43,000 and attendance at the Angels' games -has these nine districts are prcsentcd on the following ranked fourt.h among the American Lcaguc baseball page.
Ciy A ni Conventioni Center, one of tWO 100,000 Square Foot Exhibition Halls.
47 Z _*
TABLE 28 CITY OF ANAHEIM School District Enrollments District and Percent October Enrollments Within the City of Anaheim 1975 1974 1973 1972 1971 Anaheim Elementary (99.0).................................
12,653 12,496 12,864 13,234 13,428 Magnolia Elementary (61.2).................................
4,704 4,936 5,770 5,423 5,409 Savanna Elementary (46.2)..................................
2,431 2,462 2,510 2,550 2,727 Centralia Elementary (19 5,543 5,790 6,092 6,496 6,729 Anaheim Union High (61.5).................................
36,508 37,331 37,552 37,664 40,181 Placentia Unified (35.4).......................................
16,870 16,296 15,810 14,403 12,973 Orange Unified (6.8)....................... I...................
30,465 29,359 28,893 28,505 29,288 North Orange County Community College* (49.1)...................................................
N.A.
16,554 14,880 13,081 11,236 Rancho Santiago Community College...................
25,551 22,021 19,439 14,975 12,199 Full-time, day class enrollments.
SOURCE -
Orange County Department of Education.
There are ten institutions of higher learning in (9,300 students); California State University, Fuller Orange County, with a combined enrollment of over ton (22,000 students); Chapman College (Orange);
187,000 and an additional twelve in adjacent areas Southern California College (Costa Mesa); and six of southern Los Angeles County. Within Orange public community colleges with enrollment of County are the University of California, Irvine 156,000.
RESIDENTIAl, EXPANSION IN ANAHEIM HILLS 48
AGRICULTURE into recorded subdivisions, recent rankings by the Prior to World War 11, the economy of Orange California Department of Agriculture place Orange County was predominantly agricultural. It was the County fifteenth among the 58 counties of California top orange-producing county of the United States as well as a producer of a substantial volume of dairy products, lemons, dry beans, cattle, cggs, and truck crops.
value of the County's agr Iicultural. commodities ex crops.ceded
$142,821,500.
Although urbanization of the County is proceeding rapidly, with an average of approximately 4,000 A summary of the Orange County crop report for acres a year during the past quarter century going six years is as follows:
TABLE 29 COUNTY OF ORANGE Crop Report F.O.B. value 1974 1973 1972 1971 1970 1969 Animal Industry.. $ 23,017,100
$ 27,463,000
$19,823,400
$21,184,900
$23,692,900
$26,699,80 Apiculturvl 356,400 484,300 251,000 181,300 122,900 287,300 Field Crops.....
2,217,000 2,847,800 1,256,600 1,566,700 1,523,600 1,345,100 Nursery Stock... 52,255,400 45,585,300 28,699,200 25,907,100 21,741,600 16,727,400 Orchard Crops..:
39,048,500 30,534,100 25,414,100 29,440,400 21,170,300
,23,318,800
- Truck Crops.....
25,927,100 24,190,400 22,118,900 18,697,500 17,072,300 15,324,300 Total.......
c
$142,821,500 0
$85,323,600
$83,72,70 SOURCE -
Orange County ReportA Orange County Department of Agriculture.
ONE OF ANAHEIM'S 69/12 kv DISTRIBUTION FACILITIES 49 7')
MINERAL PRODUCTION County. State Highway 91 (the Riverside Freeway)
Petroleum is presently the most valuable natural traverses the northern perimeter of Anaheim provid resource in Orange County and accounts for the ingaccess to southwestern Los Angeles County and greatest share of the County's mineral production.
to the neighboring County of Riverside where it In rcen yerstheoutut o perolum rodcts joins Interstate 10, a major transcontinental highway.
In recent years, the output of petroleum products in Orange County has been better maintained than The Orange County Airport, located 12 miles to most producing areas in California.
the south in Santa Ana, serves the City of Anaheim At present there are thirteen oil fields in the through two major airlines. The Los Angeles Inter County, the four most.productive of which are the national Airport is 45 minutes by automobile to thc Huntington Beach, Brea-Olinda, Coyote West and northwest.
Additional airline service is available Richfield. Other fields, in order of importance are the from the Ontario International Airport (25 minutes Coyote East, Newport West, Yorba Linda, Kraemer, by automobile to the northeast), the Long Ucach Sunset Beach, Newport, Belmont offshore, Olive, Airport (20 minutes by automobile to the west) and Talber, and San Clemente.
the Fullerton Municipal Airport (5 minutes by auto mobile to the north).
TRANSPORTATION Frequent daily bus service is provided by the Western Greyhound Lines to all larger cities of the Varied modes of transportation. are readily avail-County and to the cities of Los Angeles and San able in Anaheim. Facilities are excellent and in most Diego.
instances recently constructed, expanded, or in stituted.
UTILITY SERVICES Three major railroads serve the City. The South-Water sources in Anaheim are local wells, supple ern Pacific and the Union Pacific railroads provide mcntcd by the Metropolitan Water District's distribu freight service by means of their trucks and spur lines tion of Colorado River. and State Project (Feather from Los Angeles County. The Atchison, Topeka River) water to municipalities and districts affili and the Santa Fe Railroad's heavily utilized mainline ated with it.
between Los Angeles and San Diego provides both passenger and freight service to the community, asCity through well as to most other major cities in the County.
Interstate 5 (the Santa Ana Freeway) bisects the Cafra gas cm p rom Caiori sources City and provides access with more than a dozen interchanges for destinations northward into Los and from mid-continental gas fields.
Angeles County and southward to San Diego. State Pacific Telephone and Telegraph Company facili
,Highway 57 (the Orange Freeway) links Anaheim ties service the.City of Anaheim and most of Orange with the southeastern portion of Los Angeles County.
50
GENERAL STATEMENT AND CERTIFICATE CONCERNING OFFICIAL STATEMENT All contents of this Official Statement have been of delivery of the Bonds, contains no untrue statement based on information believed to be reliable, but no of a material fat nor omits to state a material fact representation is made that any estimate or assump-necessary to make the statements contained therein, tion is correct or will be realized. As far as any in the light of the circumstances under which they contents involve matters of opinion, whether or not were made, not misleading.
expressly so stated, they are set forth as such and not as representations of fact. The agreements of the City of Anaheim with the holders of the Bonds are CITY OF ANAHEIM, CALIFORNIA set forth in the Resolution, and reference is hereby made to that document for.a complete statement of the rights and obligations of the. City and holders of the Bonds. Neither this O/]icial Statement nor any Mayor other communication to date, oral or written, is to be construed as a contract with the holders of the B onds........................
At the time of delivery of the Bonds, the City of, Mana Anaheim, California will furnish a certificate exe cuted by the undersignedofficers to the effect that the Official Statement, as of its date and as of the date Utilities Director 51
APPENDIX I the time. Nevada shall supply such economy energy to Anaheim in accordance with hourly schedules to be agreed upon between the sched ECONOMY ENERGY AGREEMENT ulers or load dispatchers of Edison, acting on be between half of Anaheim, and Nevada.
NEVADA POWER COMPANY and
- 3. The Point of Delivery for the energy supplied CITY OF ANAHEIM, CALIFORNIA hereunder will be at the 500 Ky transmission system of Edison at the Eldorado Substation near THIS AGREEMENT, entered into this 25th day Las Vegas, Nevada. Anaheim will be responsi of May, 1976, hereinafter referred to as "Agree-ble for transmission arrangements with Edison.
ment", by and between :NEVADA POWER COM-
- 4. Power transactions hereunder shall be accounted PANY, a corporation, hereinafter referred to as for on the basis of scheduled hourly quantities.
"Nevada", and CITY OF ANAHEIM, a California The dispatchers involved in the transactions shall municipal corporation, hereinafter referred to as maintain records of hourly load schedules for "Anaheim", both of which are hereinafter referred to accounting and operating purposes.
individually as "Party" and collectively as "Parties";
- 5. (a) The charge per kilowatt-hour for economy WITNESSETH:
energy scheduled for delivery at the Point WHEREAS, Nevada is engaged in the generation, of Delivery shall be Incremental Gencrat distribution, and sale of electric power and energy in ing Cost of Nevada plus the following the State of Nevada and is interconnected with the transmission system of the Southern California cost and the Decremental Value to Ana Edison Company (Edison) at Eldorado Substation heim in displacing other purchases:
in Southern Nevada; and (1) fifteen percent (15%) for the Contract WHEREAS, Anaheim is engaged in the purchase, distribution, and sale of electric power and energy (2) twenty-five percent (25%) for the in the State of California and has contracted with Contract Year beginning July 1, 1977;
-Edison for transmission service; and (3) thirty-five percent (35 %) for the Con WHEREAS, Anaheim and Nevada desire to in-tract Year beginning July 1,1978; and terchange energy in order to achieve greater gener-(4) forty-five percent (45%) beginning ating efficiency and reduce the dependence on oil fired electric generation; July 1, 1979, and during the remaining term of this Agreement.
NOW, THEREFORE, it is hereby agreed as follows:
(b) The Incremental Generating Cost shall be the sum of:
- 1. This Agreement will take cffcct on July 1, 1976, and shall continue in effect until June 30, 1980, and thereafter, if necessary, until Nevada's obli gations pursuant to this Agreement have been ful filled. A Contract Year shall be any twelve (12)
(2) The incremental cost of operating month period beginning July I of any Calendar (other than fuel) and maintaining such year and ending June 30 of the succeeding cal-generating unit(s), which shall be endar year.
deemed to be 1.0 mill per kilowatt
- 2. While the Parties contemplate that approxi mately 325,000,000 kilowatt-hours will be de-.
(c) The Decremental Value shall mean the x delivered each Contract Year, Nevada shall be pense per kilowatt s
obligated to supply and Anaheim shall be obli-the following formula:
gated to receive not less than one billion (1,000,000,000) kilowatt-hours over the term of A
this Agreement at rates of delivery between zero and Anaheimes total system requirements at where: Ah Decremental Value.
52
B cost per kilowatt-hour that beginning July 1, 1976 and ending would have been incurred in June 30, 1977; purchasing such energy from (2) Two million nine-hundred others.
sand dollars ($2,950,000.00) for the C -the cost per kilowatt-hour for period beginning July 1, 1976 and end transmission service paid by ing June 30, 1978; Anaheim to Edison for energy (3) Four million two-hundred thousand delivered to Anaheim.
dollars ($4,200,000.00) for the period D= 1.0000 plus the percent loss beginning July 1, 1976 and ending on deliveries over Edison's sys-June 30, 1979; and tem expressed as a decimal.
(4) Five million five-hundred thousand (d) Each Party shall m ake available its basis, dollars ($5,50,
for the e iod including calculations and work papers, for be Jul 19 ad i
determining Incremental Cost or Decre mental Value upon request of the other (b) The above amounts shall be reduced by the Party.
difference between (i) the Decremental
- 6. On or before July 1. 1976, Anaheim will pay Value multiplid by the kilowatt-hour dcliv Nevada twelve million five-hundred thousand cries by Nevada pursuant to the letter agree dollars ($12,500,000.00) as a partial payment ment dated April 2, 1976, and (ii) the for energy to be supplied hereunder. It is under stood that such payment is a condition precedent to this agreement and if the condition is hot met (c) If at the end of any Contract Yar, insuffi neither Party shall be obligated to the other.
cicnt economy energy has been scheduled Beginning July 1, 1977, charges as determined and delivered to Anaheim to produce the pursuant to Article 5 shall be debited to Ana-guaranteed cost difference set forth in this hcim until such partial payment has been utilized Article 8, then Anaheim at its option may in full.
either (i) bill Nevada for the amount of the deficiency and Nevada shall make payment
- 7.
Nevada send a s*tatement to Anaheim for energy uigtesm em sAtce7 r(i delivered in each month not later than the 15th day of the following month. Anaheim shall pay tional partial payment under Article 6.
to Nevada any amounts due by placing payment in the mail within twenty (20) days after the
- 9. If, on June 30, 1980, the debits specified in receipt of each bill. Amounts billed by Nevada Article 6 have not equalled the $12,500,000.00 and not so paid on or before the due date shall partial payment (adjusted if necessary in accord he payable with interest accrued at the rate of ance with Article 8(c)); Nevada shall supply one percent (% ) per month of the unpaid bal-additional nergy prior to December 31, 1980, ance prorated by days from due date to date of priced in accordance With Article 5(a)(4) to such payment.
meet such obligations.
- 8. (a) Nevada hereby guarantees that the differ-
- 10. The Parties hereby establish "Operating Rpre ence between the costs that would have been sentatives" to secure effective cooperation and incurred by Anaheim in purchasing such system planning and to deal on a prompt and energy from its present supplier and the orderly basis with the various operating problems total of: (i) the sum of the payments to which mayarise in connection with delivery of Nevada pursuant to Article 7 and the debits energy undr this Agreement.
The Operating to Anaheim pursuant to Article6; and (ii)
Representatives shall consist of four (4) repr the sum of the payments by Anaheim to its sentatives, two designatd by each Party, and present supplier for the transmission of each such representative shall be authorized on energy supplied by Nevada shall not bc less behalf of the Party designating him to act with than the following amounts; respect to operating matters.
(1) One million five-hundred thousand II. A waiver at any time by a Party of its rights with dollars ($1,~500,000.0() for the period respect to a default under this Agreement, or 53 peidbgnigJly1Y96aded
with respect to any other matter arising in con-sooner than July 31, 1977) the amount of nection with this Agreement, shall not be deemed any unutilizcd partial payments plus any a waiver with respect to any subsequent default unrealized guaranteed savings for the year or matter.
of termination on a prorata basis. Unless
- 12. (a) Each Party shall be excused from per-there is a termination pursuant to Article formance of any obligation contained here-12(a) or 12(b) or by mutual agreement, in, if, but only to the extent and during the Nevada shall not be relieved of its obliga time that, performance thereof by such tions pursuant to Article 9.
Party shaH be prevented by the existence of
- 13. The several provisions of this Agreement are not Uncontrollable Forces. A Party rendered intended to and shall not create rights of any unable to fulfill any obligation by reason of character whatsoever in favor of any persons, an Uncontrollable Force shall exercise due corporations or associations other than the diligence to remove such inability with all Parties. Any undertaking by one Party to another reasonable dispatch and keep the other Party under any provision of this Agreement shall Party fully informed of changes in con-not constitute the dedication of the electric sys ditions as far in advance as possible. An tem or any portion thereof by any Party to the Uncontrollable Force means any cause public or to the other Party, and it is under which a Party could not reasonably be ex-stood and agreed that any such undertaking shall pectcd to avoid by the exercise of reasonable cease upon the termination of such Party's par diligence and foresight, including, but not ticipation in this Agreement.
limited to, storm, flood, drought, freeze ups, icing conditions, lightning, earthquake,
- 14. Any written notice, demand, or request pro landslide, fire, explosion, failure or un-vided for in this Agreement, or given or mad in availability of facilitics not due to lack of connection with this Agreement, shall be deemed proper care or maintenance, civil disturb-to be properly given or made if personally de ance, labor disturbance, sabotage, war, livered or telegraphed or sent by registered mail, national emergency, and restraint by court postage prepaid, to the person specified:
or public authority, or inability to obtain or To or upon The Secretary ship materials, supplies, or equipment be-Nevada Nevada Power Company cause of the effect of similar causes on Post Office Box 230 suppliers or carriers. If such Uncontroll-Las Vegas, Nevada 89151 able Force makes the continued perform-To or upon Utilities Director ance of this Agreement unfeasible, either Anaheim City of Anaheim Party may terminate this Agreement by Post Office Box 3222 giving the other Party at least 90 days' written notice.thJy
, 1977)othamout0 o
b) Notwithstanding any other provision of A Party may at any time,. by written notice, this Agreement, Anaheim shall have the change the designation or the address or the per right to terminate this Agreement upon 90 son so specified. This Article does not apply to days' written notice if Nevada fails to sup-notices and requests of a routine character in connection with delivery or receipt of power or trac Year00,000 pr odat,hou if Ta h-in connection with operation of facilities. Such tract l er m
or than 250,00,0 kilovate-notices and requests shall be given in such man ner ration the Operassoi R
naties ro tme hours in either the second or third Contract anoth te errarnge
- Year, such excess kilowatt-hours may be t
iesalarnc applied to reduce the number of kilowatt-
- 15. his Agreement shall be filed with the Federal hours otherwise deliverable pursuant to this Power Commission but shall not be subject to Article 12(b) in the subsequent Contract unilateral application to the Federal Power Coin Year.
mission by either Party for changes in methods (c) In.uthe event of a termination of this Agree-of determining costs or benefits to The Parties.
ment pursuant to Article 12(a) or 12(b),
- 16. This Agreement shall be binding upon the inure Nevada shall be obligated to pay Anaheim to the benefit of the respective successors and on the date of such termination (but not assigns of The Parties.
54 Too uo TeScrtr
IN WITNESS WHEREOF, The Parties have caused this Agreement to be executed by their duly authorized officers and their corporate seal to be affixed, as of the day and year first herein written.
NEVADA POWER COMPANY By A. E. PEARSON Title President ATTEST:
M. GENE MATTEUCCI CITY OF ANAHEIM By GORDON W. HOYT Title Utilities Director ATTEST:
ALONA M. HOUGARD 55
APPENDIX II diction of a definitive integrated operations agreement and the, appropriate supplemental AGREEMENTd transmission service agrments which AGREMEN FO INTGRAIONANDcover the subject matter of this Agreement, or TRANSMISSION OF NON-FIRM ENERGY 0i mutual agreement of the Parties.
PURCHASED BY ANAHEIM FROM NEVADA POWER COMPANY
- 5. Definitions: The following terms, when used herein with initial capitalization, whether in the
- 1. Parties: The Parties to this Agreement are:
singular or the plural, shall have the meaning The City of Anaheim ("Anaheim"), a munici pal corporation of the State of California, and the Southern California Edison Company
("Edison"), a Californiac
5.2 Anaheim
The City of Anaheim.
- 2. Recitals: This Agreement is made with refer-5.3 Economy Energy Agreement: Economy cnce to the following facts, among others:
Energy Agreement between Nevada Power 2.1 he artis ad otershaveentredCompany and the City of Anaheim, California, 2.1 The Parties A nt dated May 25, 1976, under which Anaheim intoshall purchase Non-Firm Energy from Nevada, 2.2 The Parties are currently in the process a copy of which is attached hereto and made a of negotiating a definitive integrated operations agreement, but do not expect to complete such pA Eo negotiations, execute and make effective such 5
agreement prior to.the time Anaheim will re quire integration of and transmission service for
5.5 Nevada
Nevada Power Company.
Non-Firm Energy which it proposes to pur-5.6 Non-Firm Energy: Energy purchased chase from Nevada.
by Anaheim from Nevada pursuant to the 2.3 Anaheim now desires to purchase Non-Economy Energy Agreement, Firm Energy from Nevada for operational in-
5.7 Party
Anaheim or Edison.
tegration into the Edison system, and has en-5.8 Point of
Attachment:
The 500 kV bus tered into the Economy Energy Agreement at Eldorado Substation where Nevada is with Nevada.
deemed to deliver Non-Firm Energy to Edison 2.4 Anaheim desires to obtain from Edison, for the account of Anaheim.
and Edison is willing to provide to Anaheim, 5.9 Point of Delivery: The point where the interruptible transmission service for such Non-electrical conductors of Edison connect with Firm Energy over Edison's electrical transmis-the 220 kV facilities of Anaheim at Lewis Sub sion facilities between the Point of Attachment station, and where the delivery of Non-Firm and the Point of Delivery.
Energy takes place between Edison and 2.5 Nevada has a capacity entitlement in Anaheim.
certain transmission facilities connected to the 5.10 Point of Interconnection: The 230 kV Point of Attachment. Nevada has notified the bus at Mead Substation where the electrical sys Parties in writing that Nevada will deliver such tems of Edison and Nevada are electrically inter Non-Firm Energy over such capacity entitle-connected and where the scheduling of Non ments to the Point of Attachment.
Firm Energy between Edison and Nevada is
- 3. Agreement:
In consideration of the mutual deemed to take place.
covenants contained herein, the Parties agree as 5.11 Settlement Agreement: The agree follows:
ment between the Parties and others entered
- 4. Term: This Agreement shall become effective t
er Power C as set h when executed by the Parties and accepted for filing by the regulatory agency. having jurisdic-Docket No. E-7618.
tion, and shall continue in force and effect until December 31, 1980, unless terminated by (i)
- 6. Integration of and Scheduling Non-Firm Energy:
either Party upon 90 days advance written 6.1 Edison agrees to integrate operationally notice, (ii) final execution and acceptance for Non-Firm Energy with Edison's own resources f
diling by the regulatory agency having juris-so long as conditions on Edison's system permit.
58.
6.2 The following procedures shall be used 6.5 Anaheim and Edison, solely for the for scheduling such Non-Firm Energy.
purposes of and during the term of this Agree 6.2.1 Anaheim and Nevada shall arrange ment, shall operate their systems in accordance for mutually agreeable quantities of Non-with Exhibit A of the Settlement Agreement, Firm Energy and times when such Non-Firm which Exhibit A shall be deemed to be the inte Energy is to be available to be delivered.
gra operations agreement for the purpose of Schedules of Non-Firm Energy at the Point implementing the partial requirements rate, of Interconnection shall not in any hour ex-Schedule R-2, as set forth in the applicability ceed a rate of delivery in excess of Anaheim's clause of said Schedule; provided, that Ana load (as estimated by Anaheim for that hour heim and Edison, for such purpose and term, and rounded to the nearest lower megawatt) waive the obligation contained in the second plus losses to the Point of Delivery.
sentence of Section 4.11 of said Exhibit A 6.2.2 Nevada's dispatcher shall advise which states, "Edison shall purchase from City Edison's dispatcher, at least one-half hour in all energy which is excess to City's requirements advanceat City's cost which cost shall include charges Energy iso th ho u r
wc n-made by Edison and others to City for trans Ener s oo e b y sc e d d ofd t heira ge mission service, plus 15 percent of such cost ments proposed by Nevada and Anaheim.
poieta uheeg seooial s
Edison shall determine the amount of capa-able y sn."
bility, if any, which is available between the 6.6 If Anaheim's actual load in any hour is Point of Attachment and the Point of Delivery.
estimated by Anaheim for that hour, and if the scheduled energy from 6.2.3 Upon agreement of the dispatchers Nevada during that hour is at a rate equal to the of Edison and Nevada, hourly schedules for estimated load, Anaheim shall receive credit for the delivery* of Non-Firm Energy shall be only that energy required to meet its actual load made in accordance with procedures agreed for such hour. Edison may purchase all or part upon in advance by the Edison and Nevada of the energy which is in excess of Anaheim's dispatchers. Such procedures shall conform actual load at a rate per kilowatthour not to to good electric utility practice.
exceed the lesser of (i) the rate paid by Ana 6.2.4 If sufficient transmission capacity 6.2. It suficint rans isson apaityheim to Nevada during that hour for energy over and above Edison's own requirements purchased under the Economy Energy Agree to transmit firm or interruptible energy for ment as such rate is determined pursuant to sale to its customers is not available to Section 5 of said Economy Energy Agreement, accommodate all requests made to Edison for or (ii) Edison's decremental energy value for interruptible-transmission service, all those that hour as established by Edison's dispatcher.
making such requests shall agree upon a rca-Such energy shall be deemed to be delivered by sonable and practical method for allocating Nevada to Edison at the Point of Attachment.
the service available to others. If agreement 6.7 For scheduling and dispatching services cannot be reached, Edison shall make such provided in any month by Edison pursuant to allocation.
greement, Anaheim shall pay to Edison 6.3 Amounts of Nori-Firm Energy shall be the sum of $420 per month, regardless of scheduled by Edison from Nevada at the Point whether Non-Firm Energy is scheduled during of Interconnection and such amounts shall be that month or not; provided, that such monthly deemed to be delivered by Nevada to Edison at charge shall be waived in the case of a month the Point of Attachment.
during which no communication pertaining to 6.4 Non-Firm Energy delivered by Edisonschedules under this Agreement is made be 6.4 No-Fim Eerg delverd b Edsontween Nevada and Edison dispatchers. Such to Anaheim at the Point of Delivery in any hour sum shall be redeermined by Edison prior to shall be used to offset energy which otherwise January I of each year based on Edison's would have been purchased by Anaheim under budgeted amounts of money for load dispatch Edison's partial requirements rate during that ing and production section function expenses hour. Anaheim shall be credited on its monthly for that year. Any change in such sum, if re will for such Non-Firm Energy so delivered by quired by the Federal Power Commission Edison.
(FPC) to be filed as a rate change with the 57 wav8h blgto onandi tescn
FPC, shall be made 30 days in advance of payment within twenty-five days, shall there January 1, and Anaheim agrees that such after bear interest of 1 percent per month of the change may become effective without hearing.
unpaidbalance prorated by days until payment Such redetermined sum shall become effective is so made; provided, that in no event shall such on January 1 of that year and shall remain in interest rate exceed the maximum rate per effect until changed pursuant to the foregoing mitted by law applicable to this Agreement.
or changed pursuant to Section 12.3.
- 10. Release:
- 7. Transmission Service:
10.1 The Parties recognizes that the trans 7.1 Subject to Sections 7.2 and 7.3, Edison mission service provided by Edison under this shall provide interruptible transmission service Agreement may be interrupted or curtailed by to Anaheim in accordance with schedules de-Edison, at any time and for any reason, at veloped pursuant to Sections 6.2.3 and 6.2.4 Edison's sole discretion. Edison shall not be over Edison's electrical transmission facilities liable to Anaheim, and Anaheim hereby releases between the Point of Attachment and the Point and indemnifies Edison for any claim, demand, of Delivery.
liability, loss or damage, whether consequential, 7.2 The availability of interruptible trans-direct or indirect, suffered by Anaheim, Nevada mission service hereunder shall be determined or others which results from such interruption at the sole discretion of Edison, and Edison re-of transmission service under this Agreement.
serves the right to interrupt or curtail such serv ice hereunder at any time and for any reason upon notice given by Edison's dispatcher to
- 1.
xetfraylsdmgcam Nevada's dispatchert cost, charge or expense resulting from willful Nevad's dspather.action, no Party (First Party), its directors, 7.3 Interruptible transmission service pro-governing bodies, officers or employees shall be vided by Edison hereunder to Anaheim shall liable to the other Party (Second Party) for not in any hour exceed a rate of delivery at the Point of Attachment in excess of Anaheim'sany kind or nature incurred by the load (as estimated by Anaheim for that hour Second Party (including direct, indirect or con and rounded to the nearest lower megawatt) sequential loss, damage, claim, cost, charge or plus losses to the Point of Delivery.
plusloses o te Pont f Dlivryexpense; and whether or not resulting from the 7.4 As payment for interruptible trans-negligence of any Party, its directors, governing mission service provided hereunder, Anaheim bodies, officers, employees or any person or shall pay Edison at the initial rate of 1.22 mills entity whose negligence would be imputed to for each kilowatthour delivered by Nevada to such Party) from (i) engineering, repair, super Edison at the Point of Attachment for trans-vision, inspection, testing, protection, operation, mission by Edison to the Point of Delivery.
maintenance, replacement, reconstruction, use Such initial rate shall be subject to change or ownership of the First Party's electric system, pursuant to Section 12.
or (ii) the performance or non-performance of
- 8. Transmission Losses: Prio to determining Ana-the obligations of any Party under this Agree heim's credit for the Non-Firm Energy deliv-ment. Except for any loss, damage, claim, cost, ered to Anaheim by Edison, such Non-Firm charge or expense resulting from willful action, Energy delivered to Edison by Nevada at the the Second Party releases the First Party, its Point of Attachment shall be reduced by 3.3 directors, governing bodies, officers and em percent to reflect transmission losies from the ployees from any such liability.
Point of Attachment to the Point of Delivery.
11.2 Except for liability resulting from will 9.ful action, any Party whose electric customer
- 9.
Bllin andPaym nt:shall make a claim or bring an action for any 9.1 Edison shall render monthly bills for, death, injury, loss or damage arising out of services provided hereunder during the preced-electric service to such customer shall indem ing month. Such bills shall be due and payable by Anaheim within twenty-five calendar days by A ahem wihin twety-f~e alen ar aysdirectors, governing bodies, officers and em after receipt thereof.
ployees from and against any liability for such 9.2 Bills which are not paid in full by Ana-death, injury, loss or damage. The term "dcc heium by said due date, by placing in the mail tric customer" shall mean an electric consumer, 68
except an electric utility system to whom power
- 12. Regulatory Authority:
is delivered for resale.
is d live ed f r re ale.12.1 This A greem ent shall b e subject to I 1.3 For the purpose of this Section H, filing with competent regulatory authority, and willful action shall be defined as:
to such changes or modifications as may from time to time be directed by such authority in 1.3.1 Action taken or not taken by a the exercise of its jurisdiction.
Party at the direction of its directors, govern-12.2 It is understood that the initial rate ing bodies, ollicers or employecs having man-for transmission service set forth in Section 7.4 agenient or administrative responsibility is based on a rate of return of 8.69 percent, affecting its performance under this Agree-which is the rate of return authorized for ment, which action is knowingly or inten-Edison by the California Public Utilities Coi tionally taken or failed to be taken with con-mission (CPUC) as of the date of execution scious indifference to the consequences there-of this Agreement. Whenever, during the term of or with intent that injury or damage would of this Agreement, the CPUC finds a new over result or would probably result therefrom.
all rate of return on retail operations to be 1 1.3.2 Action taken or not taken by a reasonable for Edison and authorizes rates Party at the direction of its directors, govern-based on such new rate of return to become ing bodies, olicers or employees.having man-effective, the rate for interruptible transmission agemcnt or administrative responsibility service shall be adjusted based on said new rate affecting its performance under this Agree-of return. Such adjusted rate for interruptible ment, which action has been determined by transmission service shall be applied to service final judgment or judicial decree to be a ma-rendered hereunder on and after the day when terial default under this Agreement and which the CPUC has authorized retail rates based on occurs or continues beyond the time speci-such new rate of return to become effective.
fied in such judgment or judicial decree for Said adjustment in the interruptible trans curing such default or, if no time to cure is mission rate shall be 0.01 mills per kilowatt specified thercin, occurs or continues there-hour for each 0.1 percent (or fraction there after beyond a reasonable time to cure such of) change in said authorized rate of return.
default.
12.3 Nothing contained herein shall be construed as affecting in any way the right of J 1.3.3 Action taken or not taken by a Edison, in furnishing services under this Agree Party at the direction of its directors, gov-ment, to unilaterally make filings with the erning hodies, officers or employees having Federal Power Commission, pursuant to See
- management -or administrative responsibility tion 205 of the Federal Power Act, of a change affecting its performance under this Agree-in any of the rates charges or services pro ment, which action is knowingly or inten-vided under this Agreement and Edison x
tionally taken or failed to be taken with the knowledge that such action taken or failed to 12.4 r vehe ri make suc fn be taken is a material default under this
- 12.
naheshallureibu Edison for Agreement.Agreement.
11.3.4 Willful action does not include
- 13. No Dedication of Facilities: Any undertaking any act or failureto act which is merely in-by one Party to the other under any provision voluntary, accidental or negligent.
of this Agreement shall not constitute the dedi
- 1. 3.5 The phrase "dmployces having cation of the s anyPartystotempbi or tny potieothereo ofty management or administrative responsibility",
as used in this Section 11.3, means the em-and it is understood and agreed that any such ployees of a Party who are rcsponkible for undertaking by any Party shall cease upon the one or more of the executive functions of termination of this Agreement.
planning, organizing, coordinating, directing,
- 14.
Governing Law: This Agreement shall be in controlling and supervising such Party's per-terpreted, governed by, and construed under the formance under this Agreement with re-laws of the State of California or the laws of the sponsihility for results.
United States, as applicable, as if executed and 59
to be performed wholly within the State of 16.2 Edison reserves the right to tempo California.
rarily interrupt and curtail service under this Agreement without notice to Anaheim or
- 15. Notices:
Nevada if such interruption or curtailment is 15.1 All notices to be given in connection caused by an uncontrollable force. Such cur with this Agreement shall be reduced to writing tailment may be, related to implementation of and signed by a representative authorized by mutual load shedding arrangements agreed Anaheim or by Edison.
upon by the Parties.
15.2 Notices to Edison shall be sufficient if 16.3 For the purposes of this Agreement, delivered in person to the person specified by an uncontrollable force shall be any cause be Edison as being authorized to sign such notice yond the control of the Party affected, including in behalf of Edison, or if sent by mail, postage but not limited to, failure of or threat of failure prepaid, to Edison as specified below; of facilities, flood, earthquake, storm, fire, lightning, epidemic, famine, war, riot, civil dis Secretary turbance or disobedience, labor dispute, labor Southern California Edison Company or material shortage, sabotage, restraint by Post Office Box 800 court order or public authority, and action or Rosemead, California 91770 Roseead Calforia 9770non-action by, or inability to obtain necessary 15.3 Notices to Anaheim shall be sufficient authorizations or approvals from any govern if delivered in person to the person specified by mental agency or authority which, by exercise Anaheim as being authorized to sign such notice of due diligence and foresight, such Party could in behalf of Anaheim, or if sent by mail, post-not reasonably have been expected to avoid and age prepaid, to Anaheim as specified below:
which, by exercise of due diligence, it shall be City f Anheimunable to overcome.
City of Anaheim Post Office Box 3222
- 17. Signature Clause: The signatoris hercto repre Anaheim, California 92803 (Attention: Utilities Director)
(Attetion.ized to enter into this Agreement on behalf of 15.4 Either Party shall be entitled to spec-the Party for whom they sign. Executed as of ify as its proper address any other address in May 25, 1976.
the United States, and different recipients of notices, upon written notice to the other Party.
SOUTHERN CALIFORNIA
- 16. Uncontrollable Forces:
EDISON COMPANY 16.1 Neither Party shall be considered to be in default in the performance of any of its obligations under this Agreement (other than By J. T. HEAD, JR.
obligations of said Party to make payments Vic hereunder) when a failure of performance shall be due to uncontrollable forces. A; Party ren dered unable to. fulfill any o its obligations under this Agreement by reason of an uncon trollable force shall exercise due diligence to CITY OF ANAHEIM remove such inability with all reasonable dis patch. Nothing contained herein shall be con strued so as to require a Party to settle any strike or labor dispute in which it may be in-By GORDON W. HOYT volved.
whutitice irctot 60
Appendix III CITY OF ANAHEIM RESOLUTION NO. 76R-276 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM, CALIFORNIA, AUTHORIZING THE ISSUANCE OF $12,500,000 SUBORDINATED ELECTRIC REVE NUE BONDS OF SAID CITY AND PROVIDING THE TERMS AND CONDITIONS FOR THE ISSUANCE OF SAID BONDS.
WHEREAS, the City of Anaheim is a municipal corporation organized and existing under a Charter duly and regularly adopted pursuant to the provisions of the Constitution of the State of California; and WHEREAS, Section 1210 of said Charter provides as follows:
"Bonds which arc payable only out of such revenues as may be specified in such bonds may be issued when the City Council by ordinance shall have established a procedure for the issuance of such bonds. Such bonds, payable only out of revenues, shall not constitute an indebtedness or general obligation of the City. No such bonds payable out of revenues shall be issued without the assent of a majority of the voters voting upon the proposition for issuing the same at an election at which such proposition shall have been duly submitted to the qualified electors of the City.
"It shall be competent for the City to make contracts and covenants for the benefit of the holders of any such bonds payable only. from revenues and which shall not constitute a general obligation of the City for the establishment of a fund or funds, for the maintaining of adequate rates or charges, for restrictions upon further indebtedness payable out of the same fund or revenues, for restrictions upon transfer out of such fund, and other appropriate covenants. Money placed in any such special fund for the payment of. principal and/or interest on any issue of such bonds or to assure the application thereof to a specific purpose shall not be expended for any other purpose whatever except for the purpose for which such special fund was established and shall be deemed segregated from all other funds of the City. and reserved exclusively for thc purpose for which such
- special fund was established until the purpose of its establishment shall have been fullyaccomplished;"
and WHEREAS, Ordinance No. 2980 of the City Council of the City of Anaheim, inorporatingcertain sections of the Revenue Bond Law of 1941 (Chapter 6, Part 1, Division 2, Title 5 of the Government Code of the State of California), cstablishes a procedure for the issuance of such bonds as provided for in said Section 1210; and WHEREAS, pursuant to said Section 1210 and said Ordinance No. 2980, the City has heretofore issued $8,000,000) electric revenue bonds designated "Electric Revenue Bonds, Issue of 1972"; and WHEREAS, pursuant to said Section 1210, said Ordinance No. 2980 and Resolution No. 74R-615 of the Cit y Council of the City of Anaheim, a special municipal election was held in said City on March 4, 1975, for the purpose of submitting to the qualified voters of said City the following proposition:
"in order to provide more economical electrical service, shall the City of Anaheim be author ized to finance the construction and acquisition of facilities, property and rights related to the*
generation, transmission and distribution of electrical energy by issuing revenue bonds, not payable from prperty taxen, in an amount not to exceed 150 Million Dollars?"; and WHERi AS, said proposition was approved by the votes of more than a majority of all the voters voting on said proposition at said special municipal election; and 61
WHEREAS, of said authorized amount of $150,000,000 the City has heretofore issued $6,000,000 electric revenue bonds designated "Electric Revenue Bonds, Issue of 1976"; and WHEREAS, the City has entered into an agreement with Nevada Power Company, a corporation, for the purchase of electric energy from said corporation; and WHEREAS, this City Council deems it necessary to issue and sell $12,500,000 principal amount of said authorized bonds at this time, designated "Electric Revenue Bonds, Second Issue (Subordinated) of 1976," for the purpose of purchasing such electric energy; NOW, THEREFORE, 'the City Council of the City of Anaheim, California, DOES HEREBY RESOLVE, DETERMINE AND ORDER as follows:
Section 1. Definitions. As used in this Resolution:
(a) "Bonds" (capitalized) means the subordinated revenue bonds authorized to be issued by this Resolution.
(b) "City" means the City of Anaheim, California.
(c)
"City Council" means the City Council of the City.
(d) "Enterprise" means the entire electric system of the City of Anaheim, including all im provements and extensions later constructed or acquired (sometimes hereinafter referred to as Electric System").
(e) "Gross revenues" or "Revenues" means rates, fees and charges for providing electric service to persons and real property and all other fees, rents and charges and other income derived by the City, from the ownership, operation, use or services of the enterprise.
(f) "Parity subordinated bonds" means revenue bonds, revenue notes or other similar evi dences of indebtedness heretofore or hereafter issued for the acquisition, construction and financing of extensions of, additions to, repairs and replacements to, renewals of, and improvements of the enterprise, payable out of the surplus revenues and which rank on a parity with the Bonds.
(g) "Surplus revenues" means all surplus revenues as defined in the resolutions providing for the issuance of the Electric Revenue Bonds, Issue of 1972, and the Electric Revenue Bonds, Issue of 1976, which surplus revenues are required to be deposited in the Surplus Revenue Fund pursuant to Section 10 hereof.
(h) "Revenue Bond Law" means the Revenue Bond Law of 1941 as cited in the recitals hereof.
(i) "Senior lien bonds" means any bonds heretofore or hereafter issued which are payable from the gross revenues of the enterprise, including the Electric Revenue Bonds, Issue of 1972, and the Electric Revenue Bonds, Issue of 1976, and any bonds hereafter issued which rank on a parity therewith.
(j) "Subsequent resolution" means any resolution authorizing the issuance of parity subordi nated bonds subsequent to the issuance of the Bonds.
(k) "Treasurer" means the City Treasurer of the City.
Section 2. Equality of Bonds, Pledge of Revenues. Pursuant to said Section 1210 of the City Charter, said Ordinance No. 2980 and this Resolution, and as authorized by the resolutions providing for the issuance of the Electric Revenue Bonds, Issue of 1972, and Electric Revenue Bonds, Issue of 1976, which resolutions permit the use of surplus revenues for any lawful purpose of the City, the Bonds shall be equally secured by a pledge, charge and lien upon the surplus revenues without priority for number, date of bonds, date of sale, date of execution, or date of delivery, and the payment of the interest on 62
and principal of said Bonds shall be and are secured by an exclusive pledge, charge and lien upon the surplus revenues, and all of the surplus revenues are hercby pledged, charged and assigned for the security of said Bonds, and such surplus revenues and any interest earned on the surplus revenues shall constitute a trust fund for the security and payment of the interest on and principal of said Bonds and so long as any of the Bonds or interest thereon are unpaid said surplus revenues and interest thereon shall not be used for any other purpose, except as permitted by this Resolution and any subse quent resolution, and shall be held in trust for the benefit of the bondholders and shall be applied pursuant to this Resolution, or to this Resolution as modified pursuant to provisions herein, and any subsequent resolution.
Nothing in this Resolution shall preclude: (a) the payment of said Bonds from proceeds of refunding bonds issued under said Section 1210 as the same now exists or as hereafter amended, or under any other law of the State of California; or (b) the issuance of senior lien bonds or parity subordinated bonds.
Section 3. Amount, Issuance, Purpose and Nature of Bonds. Under and pursuant to said Section 1210, Bonds in the amount of $12,500,000 shall be issued for the purpose stated in the recitals hereof.
Said Bonds shall be special obligations of the City and shall be secured by a pledge of and.lien upon, and shall be a charge upon, and shall be payable as to the principal thereof and interest thereon solely from, the surplus revenues, Section 4. No General City Liablity. The general fund of the City is not liable for the payment of the Bonds or their interest, nor is the credit or taxing power of the City pledged for the payment of the Bonds or' their interest. The holders of the Bonds or coupons shall not compel the exercise of the taxing power by the City or the forfeiture of any of its property. The principal of and interest on the Bonds are not a debt of the City nor a legal or equitable pledge, charge, lien, or encumbrance, upon any of its property, or upon any of its income, receipts, or revenues, except the surplus revenues.
Section 5. Description of Bonds. The Bonds shall be in the principal sum of $12,500,000. The Bonds shall all be in the denomination of $5,000, and shallbe 2500 in number, numbered I to 2500, inclusive. The Bonds shall be designated ELECTRIC REVENUE BONDS, SECOND ISSUE (SUBOR DINATED) OF 1976, shall be dated June 1, 1976, and shall be payable in consecutive numerical order on the dates and in the amounts as follows:
Maturity Date Principal Amount Maturity Date Principal Amount December 1, 1977............. $1,625,000 December 1, 1979
$1,800,000 June 1, 1978...........
1,625,000 June 1, 1980
........... 1,800,000 December 1, 1978.............
1,725,000 December 1, 1980.......2,225,000 June 1, 1979.........--.....
1,700,000 Section 6. Interest. Said Bonds shall bear interest at a rate or rates to be hereafter fixed by resolution, but not to exceed eight percent (8%) per annum, payable semiannually on the first days of June and December of each year. Each Bond shall bear interest until the principal sum therseof has been paid, provided, however, that if at the maturity date of any Bond funds are available for the payment thereof in full accordance with the terms of this Resolution, said Bonds shall then cease to bear interest.
Said Bonds and the interest thereon shall be payable in lawful money of the United States of America at the office of the Treasurer in Anaheim, California, or, at the option of the holder, at any paying agent of the City in Los Angeles or San Francisco, California, Chicago, Illinois, or New York, New York.
tn 7. Execution of Bonds. The Mayor of the City and the Treasurer are hereby authorized and directed to sign the Bonds by their printed, lithographed or engraved facsimile
- signatures, and the City Clerk of the City is hereby authorized and directed to countersign the Bonds and to affix thereto 63
the corporate seal of the City, and the Treasurer is hereby authorized and directed to sign the interest coupons of the Bonds by his printed, lithographed or engraved facsimile signature.
Section 8. Registration. The Bonds may be registered either as to principal only or as to both principal and interest, and any registered Bond may be discharged from registration in the manner and with the effect set forth in the provisions for registration contained in the form of bond set forth herein.
Section 9. Disposition of Bond Proceeds. The proceeds of the sale of the Bonds shall be received by the Treasurer and deposited as follows:
(I) The accrued interest, and premium, if any, in the Debt Service Account created in Section 10 hereof:
(2) The balance in the Electric System Maintenance and Operation Account (the "M&O Account") heretofore created.
The proceeds so deposited in the M&O Account shall be applied solely for the purpose of purchasing electric energy in accordance with the City's agreement with Nevada Power Company referred to in the recitals hereof, provided that such proceeds may be temporarily invested in any obligations in which the City may lawfully invest its funds.
Section 10. Surplus Revenue Fund; Debt Service Account. In addition to the funds and accounts heretofore created by the resolutions providing for the issuance of the Electric Revenue Bonds, Issue of 1972, and Electric Revenue Bonds, Issue of 1976, which funds and accounts shall continue to be held and maintained in accordance with said resolutions, there is hereby created a special fund to be held by the Treasurer, called the Electric System Surplus Revenue Fund (the "Surplus Revenue Fund").
Within said fund there is hereby created an account called the Debt Service Account.
The Treasurer shall deposit the surplus revenues as received in the Surplus Revenue Fund.
On or before the twentieth day of each calendar month so long as any of the Bonds are outstanding, the Treasurer shall allocate to the Debt Service Account the following amounts: (1) One-sixth of the interest which will become due and payable on the outstanding Bonds within the next ensuing six months, except that for the first interest payment due after the issuance of the Bonds the monthly sum allocated shall be the interest which will become due and payable less the amount of any accrued interest placed in the Debt Service Account divided by the number of months remaining in said period; and (2) one-sixth of the principal amount which will mature and be payable on the outstanding Bonds within the next ensuing six months, except that for the first principal payment due after the issuance of the Bonds the monthly sum allocated shall be the principal amount which will be due and payable divided by the number of months remaining in said period. In the event that the allocations for each calendar month as aforesaid are less than the amounts required for that month because of lack of funds or for any other reason the deficiency shall be added to and become a part of the allocations required for the following calendar month.
In any event, such sums shall be allocated so that the full amount required to pay, as they become due, the interest on said' Bonds and any installment of principal on said Bonds shall be set aside in the Debt Service Account at least five days prior to the date the installment of interest or principal becomes due.
Any moneys required to be set aside in the Debt Service Account may be prepaid in whole or in part by being carlier set aside therein, and in that event the monthly allocation which has been so prepaid need not be made at the time appointed therefor.
Moneys in the Debt Service Account may be temporarily invested in any obligations in which the City may lawfully invest its funds, provided that the' maturity or maturities thereof shall not be later than the date or dates on which money must be available in the Debt Service Account.
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The Bonds and the interest coupons shall recite that they arc payabc from the Surplus Revenue Fund, but notwithstanding such recital shall be paid from the Debt Service Account.
If aftcr all of thc Bonds and any parity bonds have been redeemed and cancelled or paid and cancelled (or provision is made therefor) there are moneys remaining in the Debt Service Account said moneys shall be transferred to the Surplus Revenue Fund.
All moneys remaining in the Surplus Revenue Fund after all monthly allocations required.
hcreunder have been made, and all covenants contained herein have been duly performed, may be:
(1) invested in any obligations in which the City may lawfully invest its funds; (2) used for any purpose authorized by the resolutions providing for the issuance of senior lien bonds; or (3) used for any lawful purpose of the City, including but not limited to the security and payment of other indebtedness incurred in connection with the enterprise.
Section I S Investments. Obligations purchased as investments of moneys in the M & 0 Account, the Surplus Revenue Fund or the Debt Service Account shall be deemed at all times to be a part of such fund or account and any income realized from such investments shall be credited to such fund or account and any losses resulting from such investments shall be charged to such fund or account. The Treasurer shall sell at the best price obtainable or present for redemption any obligations so purchased whenever it may be necessary to do so in order to provide moneys to meet any payment or transfer from such fund or account. For the purpose of determining at any given time the balance in any such fund or account any such investments constituting a part of such fund or account shall be valued at the then estimated or appraised market value of such investments.
Section 12. Warranty. The Ci ty shall preserve and protect the security of the Bonds and the rights of the bondholders and warrant and defend their rights against all claims and demands, of all persons.
Section 13 Covenants. So long as any of the Bonds arc outstanding and unpaid, the City makes the following covenants with the -bondholders under the provisions of Section 1210 of the City Charter (to be performed by the City or its proper officers, agents or employees) which covenants are necessary, convenient and desirable to secure the Bonds and tend to make them more marketable; provided, however, that said covenants do not require the City to expend any moneys other than the revenues of the enterprise.
t Covenant 1. Punctual Payment. The City covenants that it will duly and punctually pay or cause to be paid the principal of and in 'terest on every Bond issued hereunder, together with the premium thereon, if any be payable, on the date, at the place and in the manner mentioned in the Bonds and coupons and in accordance with this Resolution, and that the payments into the Debt Service Account will be made, all in strict conformity with the terms of said Bonds and of this Resolution, and that it will faithfully observe and perform all of the conditions, covenants and requirements of this Resolution and all resolutions supplemental thereto and of the Bonds issued hereunder, and that time of such payment and performance is of the essence of the City's contract with the bondholders.
Covenant 2. Discharge Clm& The City covenants that in order to fully preserve and protect the security of the Bonds the City shall pay and discharge all lawful claims for labor, materials and supplies furnished for or in connection with the enterprise which, if unpaid, may impair the security of the Bonds. The City shall also pay all taxes and assessments or other governmental charges lawfully levied or assessed upon or in respect of the enterprise or upon any part thereof or upon any of the revenues thereof.
Covenant 3. Accomplish Purpose. The City covenants that as soon as funds are available there for, the City will commence the accomplishment of the purpose for which the Bonds are issued and will continue the same to completion with all practicable dispatch and in an economical manner.
-Covenant 4. Operate Enterprise In Efficient and Economical Manner. The City covenants and agrees to operate the entnrpris in an efficient and economical manner and to operate, maintain and preserve the enterprise in good repair and working order.
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Covenant 5. Against Sale, Eminent Domain, Existing and Future Agreements, Competition.
The City covenants that the enterprise shall not be mortgaged or otherwise encumbered, sold, leased, pledged, any charge placed thereon, or disposed of as a whole or substantially as a whole unless such sale or other disposition be so arranged as to provide for sums adequate to provide for the immediate payment of the principal of and interest on the Bonds, payment of which is required to be made out of the surplus revenues. The City further covenants that the surplus revenues or any other funds pledged or otherwise made available to secure payment of the principal of and interest on the Bonds shall not be mortgaged, encumbered, sold, leased, pledged, any charge placed thereon, or disposed of or used except a, authorized by the terms of this Resolution and any resolution providing for the issuance of senior lien bonds. The City further covenants that it will not enter into any agreement which impairs the operation of the enterprise or any part of it necessary to secure adequate revenues to pay the principal and interest of the Bonds or which otherwise would impair the rights of the bond holders with respect to the pledged revenues, If any substantial part of the enterprise is sold the payment therefor shall either be used for the acquisition and/or construction of improvements and extensions of the enterprise or shall be placed in the appropriate funds or accounts and shall be used to pay or call and redeem said Bonds, any parity bonds and any senior lien bonds in the manner provided in this Resolution, any resolution providing for the issuance of senior lien bonds, and any subsequent resolution.
The City covenants that any amounts received as awards as a result of the taking of all or any part of the enterprise by the lawful exercise of eminent domain, if and to the extent that such right can be exercised against such property of the City, shall either be used for the acquisition and/or construction of improvements and extension of the enterprise or shall be placed in the appropriate funds or accounts and shall be used to pay or call and redeem said Bonds, any parity subordinated bonds and any senior lien bonds in the manner provided in this Resolution, any resolution providing for the issuance of senior lien bonds, and any subsequent resolution.
The City will not sell, lease or otherwise encumber any part of the Electric System except properties or facilities no longer useful or necessary to its efficient and economical operation, and it will not con struct, acquire, operate, permit or (to the extent permitted by law) consent to any competing facilities within the City limits.
Covenant 6. Insurance. The City covenants that it shall at all times maintain with responsible insurers all such insurance on the enterprise as is customarily maintained by similar utilities systems with respect to works and properties of like character against accident to, loss of or damage to such works or properties and loss of revenues insurance. If any useful part of the enterprise shall be damaged or destroyed, such part shall be. restored to use. The money collected from insurance against accident, loss or damage shall be used for repairing or rebuilding the lost, damaged or destroyed works and properties, and to the extent not so applied, shall be applied to the retirement of said outstanding and unredeemed Bonds, any parity bonds and any senior lien bonds issued for the enterprise and for such purpose paid into the appropriate funds or accounts.
The City shall also maintain with responsible insurers workmen's compensation insurance and insurance against public liability and property damage to the extent reasonably necessary to protect the City and the bondholders.
Notwithstanding the foregoing, the City may provide any insurance required by this Covenant 6 through a self insurance program.
Covenant 7. Records and Accounts. The City covenants that it shall keep proper books of records and accounts of the enterprise, separate from all 'other records and accounts, in which complete and correct entries shall be made of all transactions relating to the enterprise. Said books shall at all times be subject to the inspection of the holders of not less than 10% of the outstanding Bonds or their representatives authorized in writing.
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The City covenants that it will cause the records and accounts of the enterprise to be audited annually by an independent certified public accountant or firm of certified public accountants and shall furnish a copy of the audit report, upon request, to any bondholder.
Covenant 8. Collection of Charges. The City will permit no free use or services of thc Electric System. The City will pay for all City use and services of the Electric System. The City will not grant or establish within any class of service preferential or discriminatory rates, fees or charges for use and serviccs of the Electric System. For the purposes of setting such rates, fees and charges, service located outseidn thc city limits of the City of Anaheim may be considered as separate classes of service. The City covenants that it shall at all times during the period any of the Bonds are outstanding maintain and enforce valid regulations for the payment of bills for electric service and that such regulations shall at all times during such period provide tht the City shall discontinue electric service to any user whose electric bill has not been paid within the time fixed by said regulations.
Covenant 9. Rates and Charges The City shall and hereby covenants that it shall prescribe,.
revise and collect such charges for the services and facilities of the enterprise which, after making allowances for contingencies and error in the estimates, shall be at least sufficient to pay the following amounts in the order set forth:
(a) The interest on and principal payments of outstanding senior lien bonds as they become due and payable; (b) All o current expenses for the necessary and reasonable maintenance and operation expenses of the enterprise as said expenses become due and payable; (c) All payments required for compliance with any resolution providing for the issuance of senior lien bonds; (d) All payments required for compliance with this Resolution and any resolution providing for the issuance of parity subordinated bonds; and (e) All payments required to meet any other obligations of the City which are charges, liens, encumbrances upon or payable from the revenues of the enterprise; and the charges shall be so fixed that the net revenues shall at least' equal 1.10 times the amounts payable under (a), provided that so long as any of the Electric Revenue Bonds, Issue of 1972, remain outstanding said charges shall beso fixed that the net revenues shall at least equal 1.25 times the amounts payable under (a).
Covenant 10. Limits on Additional Debt. The City covenants that, except for refunding bonds, no additional indebtedness evidenced by revenue bonds, revenue notes or any other evidences of indebted ness payable out of the revenues of the enterprise and ranking senior to or on a parity with the Bonds shall be created or incurred unless:
First: The City is not in default under the terms of this Resolution.
Second: The net revenues of the enterprise, calculated on sound accounting principles, as shown by the books of the City for each of the last two completed fiscal years prior to the adoption of the resolution of award of bids for such additional indebtedness as shown by an audit certificate or opinion of an independent certified public accountant or firm of certified public accountants employed by the City, plus, at the option of the Ci 'ty, the item hereinafter in this covenant desig nated (a), shall have amounted to at least the amount of principal and interest which will become du nd payable in the fiscal year next succeeding the fiscal year in which such additional indebted ness is incurred on all indebtedness payable out of the revenues of the enterprise to be outstanding immediately subsequent to the incurring of such additional indebtedness. For said purposes, princi 67
The City covenants that it will cause the records and accounts Of the enterprise to be audited annuany by an independent certified public accountant or firm of certified public accountants and shall furnish a copyd of the audit rport, upon request, to any bondholder.
Covcnant 8. Collection of Charges. The City will permit no free use or services of the Electric
.Systcm. The City will pay for all City use and services of the Electric System. The City will not grant or establish within any class of service prefercntial or discriminatory rates, fees or charges for use and oservices of the Eectric System. For the purposes of setting such rates, fees and charges, service located outsi the city limits of the City of Anaheim may be considered as separate classes of service. The City covenants that it shall at all times during the period any of the Bonds are outstanding maintain and enforce valid regulations for the payment of bills for electric service and that such regulations shall at all times during such period provide that the City shall discontinue electric service to any user whose electric bill has not been paid within the time fixed by said regulations.
Covenant 9. Rates and Charges. The City shall and hereby covenants that it shall prescribe, revise and collect such charges for the services and facilities of the enterprise which, after making allowancesfor contingencies and error in the estimates, shall be at least sufficient to pay the following amounts in the order set forth:
(a) The interest on and principal payments of outstanding senior lien bonds as they become due and payable; (b) All current expenses for the necessary and reasonable maintenance and operation expenses of the. enterprise as said expenses become due and payable; (c) All payments required for compliance with any resolution providing for the issuance of senior lien bonds; o
(d) All payments required for compliance with this Resolution and any resolution providing of the issuance of parity subordinated bonds; and (e) All payments requited to meet any other obligations of the City which are charges, liens, encumbrances upon or payable from the revenues of the enterprise; and the charges shall be so fixed that the net revenues shall at least equal 1.10 times the amounts payable under (a),-provided that so long as any of the Electric Revenue Bonds, Issue of 1972, remain outstanding said charges shall be so fixed that the net revenues shall at least equal 1.25 times the amounts payable under (a).
Covenant 10. Limits on Additional Debt. The City covenants that, except for refunding bonds, no additional indebtedness evidenced by revenue bonds, revenue notes or any other evidences of indebted ness payable out of the revenues of the enterprise and ranking senior to or on a parity with the Bonds shall be created or incurred unless:
First: The City is not in default under the terms of this Resolution.
Second: The net revenues of the enterprise, calculated on sound accounting principles, as shown by the books of the City for each of the last two completed fiscal years prior to the adoption of the resolution of award of bids for such additional indebtedness as shown by an audit certificate or opinion of an independent certified public accountant or firm of certified public accountants employed by the City, plus, at the option of the City, the item hereinafter in this covenant desig nated (a), shall have amounted to at least the amount of principal and interest which wil become due and payable in the fiscal year next succeeding the fiscal year in which such additional indebted ness is incurred on all indebtedness payable out of the revenues of the enterprise to be outstanding immnediately subsequent to. the incurring of such additional indebtedness. For said purposes, princi 67
pal requirements shall be construed to include mandatory annual sinking fund installments for any series of parity subordinated bonds issued or to be issued as term bonds.
The item which may be added to such gross revenues for the purpose of applying the restriction contained in this covenant is the following:
(a) An allowance for earnings arising from any increase in the charges made for service from the enterprise which has become effective prior to the incurring of such additional indebtedness but which, during all or any part of said last two completed fiscal years, was not in effect, in an amount equal to 95 % of the amount by which the gross revenues would have been increased if such increase in charges had been in effect during the whole of said last two completed fiscal years, as shown by the certificate or opinion of independent certified public accountant or firm of certified public accountants employed by the City, The requirements of the foregoing covenant are in addition to the requirements of any prior covenant(s) hcrtofore made in connection with the issuance of senior lien bonds that may also be applicable to the issuance of additional indebtedness.
Section 14. Lost, Stolen, Destroyed or Mutilated Bonds. In the event that any Bond or any interest coupon pertaining thereto is lost, stolen, destroyed or mutilated, the City will cause to be issued a new Bond or. coupon similar to the original to replace the same in such manner and upon such reasonable terms and conditions, including the payment of costs and the posting of a surety bond if the City deems such surety bond necessary, as may from time to time be determined and prescribed by resolution. The City may authorize such new Bond or coupon or coupons to be signed and authenticated in such manner as it determines in said resolution.
Section 15. Cancellation of Bonds. AllfBonds and coupons surrendered to the Treasurer or any paying agent of the City for payment upon maturity or for redemption shall upon payment therefor be cancelled immediately. Any Bonds purchased by the City as authorized herein together with all unpaid coupons pertaining thereto shall be cancelled forthwith and shall not be reissued.
Section 16. Consent of Bondholders. The consents of bondholders provided for in this section shall relate solely to the amendment, waiver or modification of the covenants specified in Section 13 hereof and shall not be effective to waive or modify any other provisions of this Resolution or any other proceedings for the issuance of the Bonds. Any act relating to the amendment, waiver or modification of any of the said covenants consented to by bondholders holding 60% in aggregate principal amount of the outstanding Bonds, exclusive of Bonds, if any, owned by the City, shall be binding upon the holders of all of the Bonds and interest coupons, whether such coupons be attached to Bonds or detached therefrom, and shall not be deemed an infringement of any of the provisions of this Resolution, whatever the character of such act may be, and may be done and performed as fully and freely as if expressly permitted by the terms of this Resolution, and after such consent relating to such specified matters has been given, no bondholder or holder of any interest coupon, whether attached to a Bond or detached therefrom, shall have any right or interest to object to such action or in any manner to question the propriety thereof or to enjoin or restrain the City or any officer thereof from taking any action pursuant thereto.
Bondholders may' consent by affirmative vote at a bondholders' meeting or may consent in writing without 'A'meeting, all as hereinafter provided.
No -such amendmpnt, waiver or modification shall be made which will permit (a) a change in the maturity of, the principal of any Bond or any installment of interest thereon; (b) a reduction in the principal amount of or rate of interest upon any Bond without the consent of -the holders of such Bond;
'or (c) a reduction of the percentage,of the principal amount of Bonds the vote or consent of which is required to effect. any such amendment.
(a) Calling Bundwders' Meeting. If the City shall desire to obtain any such consent it may call a meeting of bondholders, by resolution, for the purpose of considering the action, the consent to which is desired.
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shl Notice of Meeting. Notice specifying the purpose, place, date and hour of such meeting shall be published once in a financial newspaper or journal of national circulation published in the City of New York, New York, not less than sixty days and not more than ninety days prior to the date fixed for the meeting. Such notice shall set forth the nature of the proposed action, consent to which is desired. If any of the Bonds shall be so registered as to be payable otherwise than to bearer, the City Clerk of the City shall, on or before the first publication of such notice, mail a similar notice, postage prepaid, to the respective registered owners thereof at their addresses appearing on the bond registry books. The place, date and hour of holding such meeting and the date or dates of publishing and mailing such notice shall be determined by the City, in its discretion.
The actual receipt by any bondholder of notice of any such meeting shall not be a condition precedent to the holding of such meeting, and failure to receive such notice shall not affect the validity of the proceedings thereat. A certificate by said City Clerk, approved by resolution of the City Council that the mecting has been caled and that notice thereof has been given as herein provided shall bc coticlusive as against all parties and it shall not be open to any bondholder to show that he failcd to receive notice of such meeting.
(c) Voting Quaification.
Any bondholder may, prior to any such meeting, deliver his Bond or Bonds to any agency designated by the City for the purpose, and shall thereupon be entitled to receive an appropriate receipt for the Bond or Bonds so deposited, calling for the redelivery of such Bond orBonds at any time after the meeting. The Treasurer shall prepare and deliver to the chairman of the meeting a list of the names and addresses of the registered owners of Bonds, with a statement of the maturities and serial numbers of the Bonds held and deposited by teach of such bondholders, and no bondholder shall be entitled to vote at such meeting unless his name appears upon such list or unless he shall present his Bond or Bonds at the meeting or a certificate of deposit thereof, satisfactory to the City, executed by a bank or trust company. No bondholder shall be permitted to vote with respect to a larger aggregate principal amount of Bonds than is set against his name on such list, unless he shall produce the Bonds upon which he desires to vote, or a certificate of deposit thereof as above provided.
Mee Imuetr-owned Bandy. The City covenants that it will present at the meeting a certificate, signed and verified by one member of the City Council and by the Treasurer stating the maturities and serial numbers of all Bonds owned by, or held for account of, the City, directly or indirectly.
No pcoern shall be permitted at the meeting to vote or consent with respect to any Bond appearing upon such certificate, or any Bond which it shall be established at or prior to the meeting is owned by the City, directly or indirectly, and no such bond (in this Resolution referred to as "issuer-owned bond") shall be counted in determining whether a quorum is present at the meeting.
(e) Quorum and Procedure.
A representation of at least 60% in aggregate principal amount of the Bonds then outstanding (exclusive of issuer-owned Bonds) shall be necessary to constitute a quorum at any meeting of bondholders, but less than a quorum may adjourn the meeting from time to-time, and the meeting may be held as so adjourned without further'notice, whether such adjournment shall have been had by a quorum or by less than a quorum. The City shall, by an instrument in writing, appoint a temporary chairman of the meeting, and the meeting shall be organized by the election of a permanent chairman and a secretary. At any meeting each bondholder shall bc entitled to one vote for evcry $5,000 principal amount of Bonds with respect to which he shall be entitled to vote as aforesaid, and such vote may be given in person orby proxy duly appointed by an instrument in writing presented at the meeting. The City, by its duly authorized representative, may attend any meeting of the bondholders, but shall not be required to do so.
(f). Vote Required At any such meeting hdasaforesaid thcre shall be submitted for the consideration and action of the bondholders a statement of proposed action, consent to which is desired, and if such action shall be consented to and approved by bondholders holding at least 60% in aggregate amount of the Bonds then outstanding (exclusive of issuer-owned Bonds) the 69
chairman and secretary of the meeting shall so certify in writing to the City, and such certificate shall constitute complete evidence of consent of bondholders under the provisions of this Resolution.
A certificate signed and verified by the chairman and the secretary of any such meeting shall be conclusive evidence and the only competent evidence of matters stated in such certificate relating to proceedings taken at such meeting.
(g) Written Consent of Bondholders. If the City shall desire to obtain any such consent in writing, without a meeting of bondholders, the City Council may, by resolution, propose the action, to which consent is desired. A copy of such resolution, together with a request to bondholders for their consent to the action proposed therein, shall be published once in a financial newspaper or journal of national circulation published in the City of New York, New York. If any of the Bonds shall be so registered as to be payable otherwise than to bearer, the City Clerk of the City shall, on or before the publication of such resolution and request, mail a copy thereof to each registered owner at the address appearing on the bond registry books.
The actual receipt by any bondholder of such resolution and request shall not affect the validity of the proceedings for the obtaining of such consent. A certificate by said City Clerk, approved by resolution of the City Council, that said resolution and request has been published and mailed as herein provided shall be conclusive as against all parties, and it shall not be open to any bondholder to show that he failed to receive such resolution and consent.
Each written consent shall be accompanied by proof of ownership of the Bonds for which such consent is given. Proof of ownership shall be made in such manner as shall be prescribed by the resolution proposing the action. Any such written consent shall be binding upon the holder of the Bonds giving such consent and on any subsequent holder (whether or not such subsequent holder has notice thereof) unless such consent is revoked in writing by the holder giving such consent or by the subsequent holder. To be effective, any revocation of consent must be filed before the adoption of the resolution accepting consents as hereinafter provided.
After the holders of at least 60% in aggregate principal amount of the Bonds then outstanding (exclusive of issuer-owned Bonds) shall have consented in writing, the City Council shall adopt. a resolution accepting such consents and such resolution shall constitute complete evidence of the.
consent of bondholders under this resolution.
h ) Publication of Consent. Notice specifying the amendment, waiver or modification that has received the consent of bondholders as required by this section shall be published once in a financial newspaper or journal of national circulation published in the City of New York, New York, not less than sixty days following the final action in the proceedings for the obtaining of such consent.
Said notice is only for the information of bondholders and failure to publish such notice or any defect therein shall not affect the validity of the proceedings theretofore taken in the obtaining of such consent.
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Section 17. Bond and Coupon Forms. The Bonds shall be payable to bearer, shall be issued in negotiable form, and shall be negotiable, and the form of said Bonds and interest coupons thereof shall be substantially as follows:
UNITED STATES OF AMERICA STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF ANAHEIM ELECTRIC REVENUE BOND, SECOND ISSUE (SUBORDINATED)
OF 1976 No.............................
$5,000 The CITY OF ANAHEIM, a municipal corporation situated in the County of Orange, State of California, FOR VALUE RECEIVED, hereby promises to pay, solely from the Surplus Revenue Fund, as hereinafter provided, to the bearer, on........................,
upon presentation and surrender of this bond, the sum of FIVE THOUSAND DOLLARS, with interest thereon at the rate of.. % per annum, payable semiannually on the first days of June and December of each and every year from the date hereof until this bond is paid, upon presentation and -surrender of the respective interest coupons hereto attached; provided, however, that if at the maturity date of this bond funds are available for the payment thereof, as provided in the resolution hereinafter mentioned, this bond shall then cease to bear interest. Both principal and interest are payable in lawful money of the United States of America, at the office of the Treasurer of the City of Anaheim, in Anaheim, California, or, at the option. of the holder, at any paying agent of the City in Los Angeles or San Francisco, California, Chicago, Illinois, or New York, New York.
This is one of a duly authorized issue of bonds of the City designated "Electric Revenue Bonds, Second Issue (Subordinated) of 1976," hereinafter called the "bonds," all of which have been issued pursuant to Section 1210 of the City Charter of the City of Anaheim and Ordinance No. 2980.of the City Council of said City, for the purpose of purchasing electric energy, and the creation of said issue and the terms and conditions of the bonds are provided for by the resolution of the City Council' of said City authorizing the bonds adopted May 25, 1976, designated Resolution No. 76R-276, and this reference incorporates said resolution, said Section 1210 and said ordinance, and by acceptance hereof the holder of this bond and the coupons hereto attached assents to said terms and conditions. Said resolution is adopted under, and this bond and the interest coupons hereto attached are issued under and are to be construed in accordance with said Charter, said ordinance and the laws of the State of California.
This bond and the interest hercon are not a debt of the City of Anaheim, nor a legal or equitable pledge, charge, lien or encumbrance upon any of its property or upon any of its income, receipts, or revenues, except the surplus. revenues (as defined in said resolution), and the principal of and the interest on this bond are payable solely from said surplus revenues and said City is not obligated to pay such principal and interest except from said surplus revenues.
By the terms of said Section 1210 of the City Charter and said Ordinance No. 2980 and by covenant exprcssd in said
-resolution, the City is obligated to prescribe, revise and collect charges for the services and facilities, of the electric system of the City such as to provide revenues sufficient to pay the interest on and principal of the bonds as they become due and payable in addition to all other payments required for compliance with said resolution and the necessary and reasonable maintenance and operation costs of, the electric systemn, and is' subject to conditions with respect to any sale of said elctric system. In the manner provided in said resolution, any or all of the obligations referred to in this paragraph and certain other obligations mentioned in said resolution may be waived with the consent of the holders of 60% in aggregate principal amount of the outstanding bonds, exclusive of issuer-owned bonds.
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This bond and the coupons hereto attached are negotiable instruments and shall be negotiable by delivery. This bond may be registered either as to principal only or as to both principal and interest, in accordance with the provisions for registration endorsed hereon.
It is hereby certified and recited that any and all acts, conditions and things required to exist, to happen and to be performed precedent to and in the incurring of the indebtedness evidenced by this bond and in issuance of this bond exist, have happened, and have been performed in due time, form and manner as required by the Constitution and laws of the State of California and the City Charter of the City of Anaheim and that this bond, together with all other indebtedness of the City pertaining to the aforesaid electric system, is within every debt and other limit prescribed by the Constitution and laws of the State of California and said Charter.
IN WITNESS WHEREOF, said City of Anaheim has caused this bond to be signed by the Mayor and the City Treasure r of said City by their facsimile signatures, countersigned by the City Clerk of said City, and sealed with the corporate seal of said City, and the interest coupons hereto attached to be signed by the City Treasurer by his facsimile signature, and has caused this bond to be dated June 1, 1976.
Mayor of the City of Anaheim, California COUNTERSIGNED; City Clerk of the City Ci ty of Anaheim, California City of Anaheim, California (SEAL)
(COUPON FORM)
On the first day of.............1..
The CITY OF ANAHEIM, CALIFORNIA, will pay to the bearer, at the office of the Treasurer of the City of Anaheim in Anaheim, California, or, at the option Coupon No.
of the holder, at any paying agentof th City in Los Angeles or San Franciscon California, -Chicago, Illinois, or New York, New York, out of the Surplus Revenue Fund of said City and not out of any other fund or moneys of the City, the sum of in lawful money of the United States of America, being the intcrest then due on its ELECTRIC REVENUE BOND, SECOND ISSUE (SUBORDINATED)
OF 1976 NO.
dated June 1, 1976.
City 'rreasurer of th City of Anaheim, California 72 5;11
On the reverse side of the bond there shall be printed substantially the following:
PROVISIONS FOR REGISTRATION This bond may be registered in the name of any person as the registered owner hereof, either as to principal only or as to both principal and interest, and, if registered in either of said forms may be changed to registration in the other of said forms or discharged from registration.
Each registration, transfer after registration, change of form of registration, or discharge from registration of this bond shall be 'entered by the Treasurer of the City in books kept by him for the purpose, andnoted by him in the registration blank below. Registration as to. principal only shall not affect the.:negotiability by dclivary of the coupons pertaining hereto. Upon' rgistration as to both principal and interest, all unmatured coupons pertaining hereto shall be surrendered to said officer and shall be preserved.
Solong as this bond is registered, no transfer hercof shall be valid for any purpose unless made by the registered owner and entered and noted as herein provided, and the principal hereof and any redemption premium shall be payable only to the registered owner, or to his order. Interest on this bond, if registered asto both principal and interest, shall be payable to the person whose name appears upon the registry books as the registered owner hereof at the close of business on the tenth day precedin the interest payment date, or to his order. If this bond is registered as to both principal and interest and its registration is changed to registration as to principal only, or if it is discharged from registration r
be attached hereto coupons rpresenting interest hereon to become due thereafter to the date of maturity hereof. In lieu thereof, and upon surrender and cancellation hereof, the Treasurer in his discretion may issue in exchange therefor a new bond, with such coupons attached, identical with this bond, except for the previous notations on the 'registration blank hereon, and except that the signatures or the new bond *shall be those of the persons holding office at the time of affixing such signatures.
sThe issuance of any such new bond, or new coupons, shall be at the expense of the registered owner.
Each discharge hereof from registration shall be effected by an entry on the registry books, and a notation in the blank below, that this bond is payable to bcarer, whereupon this bond shall become an unregistered bearer instrument, negotiable by delivery as if it had never been registered. Each request for registration, transfer, change or discharge must be in form satisfactory to the Treasurer 'and must be madein writing, signed by the registered owner, or by his agent duly authorized in writing, or by the bearer, as thc case -may be.
In Whoe Name xn Manner of Date of Registration Registered Registration Signature of Treasurer Section 18.
Proceedings Constitute Contract. The provisions of this Resolution and of any resolution or order providing for the sale of the Bonds and awarding the Bonds and fixing the interest rate or rates thereon shall constitute a contract between the City and the bondholders and the provisions there of shall he enforceable by. any bondholder for the equal benefit and protectoofalbnhdes iiry situated by mandamnus, accounting, mandatory injunction or any other suit, action 'or procceding at law or i eqity hatis nw o ma ereafter be aulthorized under the laws of. the State of California in any court of. competent jurisdiction. Said contract is made under and is to be construed in accordance with
- the laws of the State of California.
No) remedy confe reed, 'hereby upon any bondholder is intended to be 'exclusive of any other remedy, but cach such remedty is cumulative and in addition to every other remedy and may be exercised without
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exhausting and without regard to any other remedy conferred by the Charter, Ordinance No. 2980 or any law of the State of California. No waiver of any default or breach of duty or contract by any bondholder shall affect any subsequent default or breach of duty or contract or shall impair any rights or remedies on said subsequent default or breach. No delay or omission of any bondholder to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed as a waiver of any such default or acquiescence therein. Every substantive right and every remedy conferred upon the bondholders may,be enforced and exercised as often as may be deemed expedient. In case any suit, action or proceeding to enforce any right or exercise any remedy shall be brought or taken and the bondholder shall prevail, said bondholder shall be entitled to receive from the Electric Revenue Fund reimbursement for reasonable costs, expenses, outlays and attorney's fees and should said suit, action or proceeding be abandoned, or be determined adversely to the bondholders then, and in every such case, the City and the bondholders shall be restored to their former positions, rights and remedies as if such suit, action or proceeding had not been brought or taken.
After the issuance and delivery of the Bonds this resolution shall be irrepealable, but shall be subject to modification to the extent and in the manner provided in this Resolution, but to no greater extent and in no other manner.
Section 19. Defeasance.
Bonds shall no longer be deemed to be outstanding and unpaid if the.
City shall have made adequate provision for the payment, in accordance with the Bonds and this Resolution, of the principal and interest to become due thereon at maturity. Such provision shall be deemed to be adequate if the City shall have irrevocably set aside, in a special trust fund or account, moneys which when added to the interest earned or to be earned from the investment or deposit thereof shall be sufficient to make said payments as they become due. Moneys so set aside may be invested in any direct obligations of, or obligations guaranteed by, the United States of America, or in obligations of any agency thereof, in which the City may lawfully invest its money and, to the extent not so invested, may be placed with banks as inactive deposits in the manner provided by law.
Sections 20. Future Contracts. Nothing herein contained shall be deemed to restrict or prohibit the City from making contracts or creating bonded or other indebtedness payable from the general fund of the City or from taxes or any source other than the revenues of the enterprise as defined herein, and from and after the sale of the Bonds the general fund of the City shall not include the revenues of the enterprise and no contract or other obligation payable from the general fund of the City shall be payable from the revenues of the enterprise, except as provided herein.
Section.21. Severability. If any provision, or any portion thereof, contained in this Resolution, or the application thereof to any person or circumstance is being held to be unconstitutional, invalid or unenforceable, the remainder of this Resolution and the application of any such provision, or portion thereof, to other persons or circumstances shall be deemed severable and shall not be affected thereby, and this Resolution and the Bonds shall remain valid and the bondholders shall retain all valid rights and benefits accorded to them under this Resolution, the City Charter, and the Constitution and laws of the State of California.
Section 22. Effective Date. This Resolution shall take effect upon adoption.
ADOPTED, SIGNED AND APPROVED this 25th day of May, 1976.
W. J. (BILL) THOM Mayor Attest:
ALONA M. HOUGARD City Clerk 74
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