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E4 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 WHEREAS, at present and from time to time, condi- tions in the tax-exempt bond market are or may become favorable for refunding outstanding bonds with a resulting savings in debt service costs or other economic benefits relating to the Project; and WHEREAS, pursuant to Section 6576 of the Government Code of the State of California the Authority may issue and sell, from time to time, in one or more installments, its refunding bonds ("Refunding Bonds") for the purpose of redeeming or retir- ing Construction Bonds or Refunding Bonds theretofore issued, or any other indebtedness theretofore incurred by the Authority for the Project; and WHEREAS, it is the intention of the Authority to issue Refunding Bonds for the purpose of reducing the debt service cost relating to the Project or for the purpose of realizing other economic benefits relating to the Project; and WHEREAS, in accordance with the Joint Powers Act, the exercise by the Authority of its power to issue Refunding Bonds is subject to the authorization of such issuance by certain of the Members pursuant to ordinance; and WHEREAS, neither the payment of principal of the Refunding Bonds nor any part thereof nor interest thereon shall constitute a debt, liability or obligation of the City of Colton; and WHEREAS, this City Council has determined that the issuance by the Authority of Refunding Bonds is appropriate to reducd the debt service cost related to the Project and reduce the costs of purchased power payable by the Participants under the Power Sales Contracts or to realize other economic benefits relating to the Project; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COLTON ORDAINS AS FOLLOWS: 1. The issuance and sale by the Authority, from time to time, in one or more installments, of its Refunding Bonds is hereby authorized. The estimated maximum aggregate principal amount of such Refunding Bonds to be outstanding at any one time in accordance with their terms shall be an amount equal to the sum of (i) $800,000,000, being the estimated maximum aggregate principal amount of Construction Bonds issued and to be issued by the Authority for the Project, plus (ii) the principal amount of any additional Construction Bonds issued by the Authority to complete the financing of the Project, plus (iii) such additional amounts, if any, required to purchase federal securities to implement such refunding as provided in Sections 53580 to 53585, inclusive, of the Government Code of the State of California, plus (iv) such additional amounts, if any, necessary to provide funds sufficient for the payment of princi- pal, interest, premium and expenses as provided in Section 6577