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Home My Public Portal AboutOrdinance 761ORDINANCE NO, 761 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BEAUMONT, CALIFORNIA AUTHORIZING THE EXECUTION AND DELIVERY OF AN INSTALLMENT SALE AGREEMENT AND/OR AN AMENDMENT TO AN INSTALLMENT SALE AGREEMENT AND AUTHORIZING AND DIRECTING CERTAIN OTHER ACTIONS WITH RESPECT THERETO. WHEREAS, Articles 1 and 2 of Chapter 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 assisting the City in financing capital improvements when there are significant public benefits to be derived from such assistance; and WHEREAS, the City financed improvements to its sewage system, including the City's water treatment plant and entered into an Installment Sale Agreement, dated as of August 1, 1993, by and between the City and the Authority whereby the Authority acquired and constructed improvements to the City's sewage system; and WHEREAS, the City desires to finance additional improvements to its sewage system, including the City's water treatment plant and there has been presented to the City Council a form of Amendment No. 2 to Installment Sale Agreement, dated as of June 1, 1996, by and between the City and the Authority (said agreement in the form finally entered into by the City being referred to herein as the "Installment Sale Agreement") whereby the Authority will acquire and construct additional 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 m 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 1996 Local Agency Revenue Bonds, with appropriate series designation (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 BMTORDSE.1 A/LT/1 49 WHEREAS, the City desires to approve the Installment Sale Agreement 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 Governnent 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. 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 fmancing 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 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 Mayor is hereby authorized and directed for and in the name of and on behalf of the City to execute and deliver the Installment Sale Agreement in substantially the form presented to and considered at this meeting with such changes therein as such officer and the City Attorney may require or approve, 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 form and content of the listallment Sale Agreement may be in the form of Amendment No. 2 as presented to the City Council or may be incorporated into a separate installment sale agreement, if deemed appropriate by the City Manager in consultation with the City Attorney and Bond Counsel. 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 Bonds from time to time as such Installment Payments may be amended in accordance with the Installment Sale Agreement. In addition, the City shall pay Additional Payments as provided therein. Section 4. The officers of the City and their authorized representatives, are, and each of them 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. 2 BMTORDSE.1 A/LT/1 49 MOVED, PASSED AND APPROVED upon first reading thisl 3 th day of May , 1996 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: Mayor Leja, Mayor Pro Tem Berg, Councilmembers Parrott, Westcot and Zeller. None. None. None. MOVED, PASSED AND ADOPTED this 20th day of May , 1996 by the following roll call vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: Mayor Leja, Mayor Pro Tem Berg, Councilmembers Parrott & Zeller. None. None. Councilmember Westcot. (," 1/ o CITY CLF F` Mayor of the City of Beaumont CERTIFICATION The foregoing is certified to be a true copy of Ordinance No.761 duly introduced at a regular meeting of the City Council held on 5 / 13 / 96 , 1996, and duly adopted upon second reading on 5/20/96 , 1996, by the roll call votes indicated therein. (SEAL) 3 City Cleric ity of Beaumont BMTORDSE.1 A/LT/1 49 From the Office of: eity o f EEaumorzt 550 East Sixth Street P.O. Box 158 Beaumont, CA 92223-0158 FAXGRAM 714-845-1171 FAX 845-8483 TO: FROM: (zzi„ 01,71, _ / DATE: 5-- a/— Jh NUMBER OF PAGES (4/11/)Inclding this Page le AS‘t MESSAGE: i IF YOUR COPY IS NOT CLEAR, OR THERE IS A PROBLEM WITH THE TRANSMISSION, ADVISE BY RETURN FAX OR CALL 845-4321. Transmitted: Time: Operator: