Loading...
HomeMy Public PortalAboutOrdinance 732ORDINANCE NO. 732 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT SALE AGREEMENT AND AUTHORIZING AND DIRECTING CERTAIN OTHER ACTIONS WITH RESPECT THERETO. WHEREAS, Articles 1 and 2 of Cliapter 5 of Division 7 of Title 1 of the Government Code of the State of California authorizes the City of Beaumont (the "City") and the Beaumont Redevelopment Agency (the "Agency") to create a joint exercise of powers entity (hereinafter called the "Beaumont Financing Authority" or the "Authority") which will have the power to jointly exercise any powers common to the City and the Agency; and WHEREAS, Article 4 of Chapter 5 of Division 7 of Title 1 of the Government Code of the State of California (the "Marks -Roos Local Bond Pooling Act of 1985") authorizes and empowers the Authority to, among other things, issue bonds to pay the cost of any public capital improvement, working capital, or liability and other insurance needs, or projects whenever there are significant public benefits, as determined by the City; and WHEREAS, the City has authorized the creation and establishment of the Beaumont Financing Authority for the purposes set forth in the Joint Powers Agreement; and WHEREAS, among such purposes is the assisting the City in financing capital improvements when there are significant public benefits to be derived from such assistance; and WHEREAS, the City has authorized the financing of improvements to its sewage system, including the City's water treatment plant and has entered into an Installment Sale Agreement (the "Installment Sale Agreement"), dated as of August 1, 1993, by and between the City and the Authority whereby the Authority will acquire and construct improvements to the City's sewage system resulting in significant public benefits to the City, including savings in effective interest rate, bond preparation and other bond issuance costs in relation to other financing alternatives available to the City as well as benefits from undertaking the project in a timely fashion, including more efficient delivery of sewage services to residential and commercial development; and WHEREAS, the City and the Authority will finance the improvements with the proceeds of the Authority's Sewer Revenue Bonds, 1993 Series A (the "Bonds"), which Bonds will be paid by the Authority from installment payments to be made by the City pursuant to the Installment Sale Agreement; and WHEREAS, the City desires to authorize the amendment of the Installment Sale Agreement as permitted by the terms thereof to amend the Installment Payments payable thereunder in connection with the issuance and sale of bonds by Community Facilities District No. 93-1 with respect to Improvement Areas established therein and thereby reduce Installment Payments payable by the City thereunder; and WHEREAS, the City desires to approve the Installment Sale Agreement and the amendment thereof in accordance with its terms by ordinance subject to referendum in accordance with the procedures set forth in Article 9 of Chapter 5 of Part 1 of Division 2 of the California Government Code (commencing with Section 54240 of said Code); and WHEREAS, the Installment Sale Agreement has been filed with City Clerk; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BEAUMONT DOES ORDAIN AS FOLLOWS: Section 1. All of the above recitals are true and correct. Section 2. The City Council hereby finds and determines that it is for the common benefit of the City and its residents and is necessary and proper for its municipal purposes that the City enter into the Installment Sale Agreement with the Authority. The City Council further finds and determines that financing of the improvements to the City's sewage system, including the City's water treatment plant through the issuance of the Bonds by the Authority secured by payments to be made by the City pursuant to the Installment Sale Agreement will result in significant public benefits to the City, including savings in effective interest rate, bond preparation and other bond issuance costs in relation to other financing alternatives available to the City as well as benefits from undertaking the BMTORDSE.1 project in a timely fashion, including more efficient delivery of sewage services to residential and commercial development. Section 3. The Installment Sale Agreement, a copy of which is before the City Council and is on file with the City Clerk, is hereby approved. The execution and delivery of the Installment Sale Agreement by the Mayor of the City is hereby ratified and approved. The Mayor is authorized and directed to amend the Instalment Sale Agreement in accordance with the terms thereof from time to time, including an amendment to reflect the issuance of bonds by a community facilities district authorized by the City a portion of the proceeds of which may be used to acquire capacity rights in the sewage facilities and to thereby reduce the City's obligations with respect to the Installment Payments payable under the Installment Sale Agreement, such approval to be conclusively evidenced by the execution and delivery thereof. The City Clerk is hereby authorized to fix and attest the seal of the City to the Installment Sale Agreement. The Installment Payments to be payable by the City under the Installment Agreement (but excluding Additional Payments (as defined in the Installment Sale Agreement)) in any fiscal year shall equal the schedule of principal and interest payments determined upon the sale of the Bonds as such amounts may be reduced from time to time through the issuance of community facilities district bonds or as such Installment Payments may be amended in accordance with the Installment Sale Agreement. Section 4. The officers of the City and their authorized representatives, are, and each of then acting alone is, hereby authorized to execute any and all documents and do and perform any and all acts and things, from time to time, consistent with this Ordinance and the Installment Sale Agreement and necessary or appropriate to carry the same into effect and to carry out its purpose. Section 5. This Ordinance shall be published at least once in the Community Adviser within fifteen (15) days after its adoption. Section 6. This Ordinance shall take effect thirty (30) days from and after its date of adoption unless suspended by exercise of the power of referendum. This Ordinance shall be subject to referendum pursuant to and as provided in Section 54241 of the California Government Code and the laws of the State of California. MOVED, PASSED AND APPROVED upon first reading this 27thday of September , 1993 by the following roll call vote: AYES: Council Member Brey, McLaughlin, Parrott, Russo and Mayor Leja. NOES: None. ABSTAIN: None. ABSENT: None. MOVED, PASSED AND ADOPTED this 1 1 t h day of the following roll call vote: 0c -toiler , 1993 by AYES: Council Member Brey, McLaughlin, Parrott, Russo and Mayor Leja. NOES: None. ABSTAIN: None. ABSENT: None. ATTEST: TY CLERK (Deputy) BMTORDSE.I r of the City of `:eaumont CERTIFICATION The foregoing is certified to be a true copy of Ordinance No. 732 duly introduced at a regular meeting of the City Council held on Sept. 27 , 1993, and duly adopted upon second reading on 0 c t . 11 , 1993, by the roll call votesjndicated therein. E MTORDSE.1 6.14.41c (Deputy) TY CLERK, CITY OF BEAUMONT