HomeMy WebLinkAboutRESO 4346•
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ORIGINAL
RESOLUTION NO. 4346
RESOLUTION OF THE COUNCIL OF THE CITY OF PALO ALTO
URGING THE ENACTMENT OF LEGISLATION WHICH WOULD PER-
MIT GENERAL LAW CITIES TO ISSUE REVENUE BONDS FOR
EXTENS/ONS AND IMPROVEMENTS TO MUNICIPAL ELECTRIC
DISTRIBUTION AND GENERATION FACILITIES
WHEREAS, Sections 54309 and 54309.1 of the Government Code
of the State of California provide definitions of "enterprise"
for which revenue bonds may be used under the Revenue Bond Law
of 1941; and
WHEREAS, said definitions include a wide range of revenue -
producing activities of government including water systems, sewer
systems, garbage systems, parking lots and garages, harbors, air-
ports and hospitals; and
WHEREAS, Section 54310 of the Government Code specifically
excludes electric systems and gas systems from the definition of
"enterprises" which may be financed by the use of revenue bonds;
and
WHEREAS, this discriminatory exception places an unjustified
limitation on the means available for financing capital projects
by local agencies operating electric and gas systems; and
WHEREAS, the present inability to finance extensions and im-
provements to existing electrical distribution facilities, and the
inability to finance the development of supplemental electric power
generation facilities by means of revenue bonds, works a severe
hardship upon the :municipal finances of such cities and could well
be the cause of depriving some or all of their citizens in the
future from receiving electric power at as low a cost as they
might otherwise be able to use and enjoy such power;
NOW, THEREFORE, the Council of the City of Palo Alto does
RESOLVE as follows:
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1. The Senate and Assembly of the State of California
are hereby urged to enact enabling legislation that would permit
general law cities to finance extensions and improvements of
municipally owned electric distribution facilities and construction
of electric power generation facilities by means of the issuance
of revenue bonds in the same manner that such cities are now per-
mitted to finance extensions and improvements to municipal water
systems by such means.
2. The City Clerk is directed to transmit a certified copy
of this resolution to the Honorable Senator Clark L. Bradley,
Assemblyman George W. Milias and Assemblyman John Vasconcellos.
/NTRODUCED AND PASSED: April 20, 1970
AYES:
Arnold, Beahrs, Berwald, Clark, Comstock, Dias, Gallagher,
Norton, Pearson, Spa eth, Wheatley
NOES: None
ABSENT: None
ATTEST:
ae.46.41. d4 erkm
APPROVED AS TO FORM:
ty Attorney
APPROVED:
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