2g, 20 13 - california state water resources control board · pdf fileubi uremovic p.o. box...
TRANSCRIPT
Ubi Uremovic P.O. Box 2894 Rancho Cordova, CA 95741 (702) 503-2022 [email protected]
Jui •8 2G, 20 13
Santa Ana Regional Water Quality Control Board 3737 Main Street Suite 500 Riverside, CA 92501
RE: City of Beaumont Order #RS-2015-0026
Attached are additional documents regarding the City of Beaumont's sewer facility. Based on their previous track record; I am very concerned that your Staff will not uphold the provisions of the Order.
It is imperative that the Regional Board is diligent in upholding the provisions of this Order. There are 40,000 Citizens in the City of Beaumont that need to know the truth regarding their Infrastructure.
Ubi Uremovic
Ubi Uremovic P.O. Box 2894 Rancho Cordova, CA 95741 (702) 503-2022 [email protected]
Juiic 2G, 20 iS
Santa Ana Regional Water Quality Control Board 3737 Main Street Suite 500 Riverside, CA 92501
The Santa Ana Regional Water Quality Control Board is once again issuing an Order for the City of Beaumont to produce Title 22 Complaint Recycled Water and provide for Brine disposal. The Order contains many good provisions, but will be worthless without enforcement from the Regional Board.
In 1993 the City was required to build a recycled water facility a~ a conditi0n for the approval of additional housing. I he facility was scheduled to be completed in November, 1995. 1 he population of Beaumont has increased from 8,000 to 40,000. Bonds were issued and Mitigation Fees collected, but a Title 22 complaint recycled water facility has never been built. We now know that the money earmarked to build the recycled water facility was embezzled.
For the past 20 years the Regional Board has turned a blind eye as the City of Beaumont neglected/
has neglected their duties to regulates and have even helped the City hide penalties imposed from sewage spills.
In 2007 Beaumont not only failed to meet another deadline to produce recycled water they even forged their General Plan and stated that they did in fact produced Title 22 compliant recycled water. Deadlines to produr~e Title ?? c0rnp!!'lint rer.yc:!f'd wAtPr h3VP r.nme Anti gnn8 withot~t ;:my enforcPmPnt fr0rn the Board. The December 30, 2014 deadline to produce Title 22 compliant recycled water was not even acknowledged by the City.
Even after the FBI Raids and State Auditor's Investigation the City still continues to defraud the Public and the State Water Quality Control Board.
Beaumont recently attempted a 'mock' public b1d to appear as though the C1ty was hiring a legitimate company to operate the sewer facility. Contractors attempting to Bid on the Contract stated that it was obvious that the City had no intention of hiring a legitimate sewer plant operator.
Deepak Moorjani, Principal of Urban Logic Consultants, has been the City's Sewer Plant Operator for the past 20 years. When new operators were required the City simply opened another dummy corporation and
2015, but they have made this claim numerous times in the past. The Santa Ana Regional Board addresses correspondence to Urban Logic Employees and Urban Logic Employees are noted in the Regional Board Minutes as representing the City of Beaumont.
Wildermuth has also been involved with Beaumont's sewer plant for 20 years. The Santa Ana Regional 8o<=1rd oos t1c:cr:ptr:ri rlocumr;nts ;:mri mports from \Nilclr;rm!Jth tht1t thr; nomri kr.B>V or sholl!d ht1VA known were fraudulent. Wildermuth has refused to release their Payroll as required by State Law for all sewer plant contractors.
The Order lists Beaumont City Manager Alan Kapanicas and Utility Partners as the City's contacts, but neither the City Manager nor the Company are working for the City.
The Order requires Beaumont to identify the Plant operators and signature with penalty of perjury on all documents, but the City can not produce an Employee or Contractor with the credentials to operate the facility. The City recently hired HRGreen to work 8 hours per week in order to fulfill the requirement to have Cill [ilyinc:c: .. ll;l.Ciec:nvviii liui l.Jc: upc:•ctiiny li1c: ;:;c:vvt::l fct~iiil.y allU lncty \iui evci•l.Jc: aiiuvvc:J a~~c:;:,;:; h> H1e facility.
The Order requires the City of Beaumont to invest millions of dollars to produce Title 22 compliant recycled water. Beaumont City Council has not even set a Budget for their next Fiscal Year. All of the bond funds, mitigation fees, and taxes collected to build a recycled water facility and brine disposal are gone.
This Order has never been presented to Council. A week after the Order was released Beaumont City Council approved expansion of the plant, which is a direct violation of the Order. The City has no made no provisions to comply with this Order and no provisions to produce Title 22 compliant recycled water and brine disposal.
The Santa Ana Regional Water Quality Control Board's gross negligence has aided and abetted the City of GeaUnlvili";:; lictUJ diiJ en•llc:LLic:.nc:ni. Tile: Sdnict Al•a Gc:yiv••ctl \i"v"ctl.e, Ouctlil.y Co,il.,ul Guctiu·;:; ~iu;:;;:; negligence has put 40,000 Citizens' well being at risk.
It is now imperative that the Regional Board strictly enforce Beaumont's compliance with Order #R-8-2015-0026. The Board must invoke a Cease and Desist Order for failure to comply as monetary penalties have no effect on the City.
It is also Imperative that the Regional Board report any knowledge of criminal activity to the appropriate State and Federal Authorities.
ATTACHMENTS
Beaumont Financing Authority 1993 Gevt::•lUe Gu, 11j Se, ic:;::. A GG,GG0,G0 (Sewer Enterprise Project) 1993 Sewer Bond: http://emma.msrb.org/MS90568-MS65876-MD127415.pdf
Beaumont Financing Authority 1994 Local Agency Revenue Bond Series A $7,535,000 1ClC)4 I 0r;:1l f.l!.!/'P~·y Fk•\il'Ph? R(li'rl s,,,;,,.~ R '+:?,?r:;r;,nr:()
1994 Sewer Bond: http"//emma msrb.org/MS98152-MS73460-MD142327.pdf
$9,790,00 2001 Wastewater Bond Called After Embezzlement Discovered.
Email from Contractor regarding the City of Beaumont's Fraudulent Public Bid Contract.
Email from Regional Board Director to Kyle Warsinski, who is the City's front for Deepak Moorjani, regarding my comments to the State Water Quality Control Board.
Begin forwarded message: From: Mark Wippler <Wipplerm @hotmail.com> Subject: Tour of the City of Beaumont's WWTP 5/14/15 Date: May 14, 2015 at 4:11:42 PM PDT
Libi,
Today the City of Beaumont provided a pre-bid walk through of their "state of the art" wastewater treahnent facility to potential Operational and r~aihiChaii\.:-C l-uithacl.ui~. '.llt\- Cuu\-ui Cviil.J.a\.,t vpCJ.al.ui~ I;UtBity FaiiHCiS''
contract is due to expire soon and it is time to rebid these services.
As part of due diligence for the Operations and Maintenance company I ~:\vorlr f'r.r ;t h .. A>1Hl~t ~'"'{' tn. OA~._.,_... Af "'"lH' rq•t•f•L"J<' l' _J ;'\,_ ~1._1 ~-~ _1~\_t~~.ca~ ... <t~~-' ;;.~.1 •:t\J~~~i._,... 1..1. Ji_t;~t .rl{:2~ ... ~'lj,-')~
I do not know your experience regarding wastewater treatment processes but your insight into Beaumont not having a "state of the art" wastewater treatment facility is correct.
I have been in the water/wastewater treatment career field for 35 years. I possess a CA Grade V Wastewater Treatment Plant Operator license, CWEA Maintenance Technologist Grade IV, and CWEA Laboratory
Analyst Grade I.
It is not likely that the company I work for will waste their time bidding for this contract.
Certain clues from the city staff indicate that the city is not willing to conduct due dili~cuc"' vi1 their pall. i11 actua.Uy lvvkihi5 f01 ai1 Op\:i<i~ivli ahd maintenance contractor for their facilities.
1.) Short timelines from the pre-bid walk through which was today (May 14) 10:00 ~rn)J to when the ~'c~:lcd hid is d11c (t<.vo ;vccks)(lVlay 28,?,015) ;\J i"l mlnimum it ~honld be 30 to 60 days.
2) NO Pictures to be taken of the facility. (Of course IF your a terrorist and plan to sabotage the facility I could see their point ;-)However you would not have been able to capture the dead bird floating in the effluent sfrt>!'lm nf thdr filters; the chipping paint on their darifiers, or other OpC.iat~vu ai1~ .hta~ul.""ucmC\.. i~6u\:-~ titat yvu Ggui\.. wvuid ha.\.:c, Lc,c,it
corrected BEFORE allowing a tour.
3) In the Pre-Bid documents the City is requiring specific CA grade C""rt~fif\nt;r~t1CI tll"4t rln. ·~r't t"\-"\ .... t l, fn. .;1;t, .. .r.. ~ll;t~A~"l'~J"":t.ot'\t. Fp i'-"l'" 1t' v' .. ;r. e ,., .. _. q_ .. _., .. ; 'h·' ..... _.,._,."'-'··;""'en ,_,c .. ;,y t~.-(1'"-~Lp; ...... s. ,o .. 1 t.1y c,..,r .. ct,".nc.,s these requests could be "current contractor" specific items that limit other outside contractors from the hidding process.
4) One item requesting the new contractor to have experience operating a i!Biolac" treatment system is absurd. Their process is considered conventional activated sludge and is no different to operate than any other activated sludge process. The only reason communities go with this type system is price. It is cheap to install but can become expeusivt io optia.tc OVCf tl.tliC.
If you would like further information regarding wastewater treatment do not hesistate to call.
Thanks for your time :-)
As we have therefore opportunity, let us do good unto all men ... (Galatians 6: lOa)
Mark Wippler .wipplerm@ hotmail.com 1.661.874.2248
City of Beaumont Sewer Plant Scam
On September 10, 2014 the Beaumont-Cherry Valley Water District voted to obtain Title 22 Compliant Recycled Water from the Yucaipa Valley Water Disttict after waiting 20 years for the City of Beaumont to build a Wastewater Treatment Plant and produce Title 22 Compliant Recycled Water. (Action Hem 4) http://\\.'\V\r.bCV\\·d.n;:r,'1)1)1' l:ilc: . ...:.'h.dd jt",;tddi~...;:J{)i.J.·n'"J- JO ... h-11 !C;>,tH) .. , .. ~.L,.-(/_~,.\t L, .... ~,..-:; -;n\.' ~-. _,- . ...... J;~. •:., ~. tc·
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The City of Beaumont's original Se\ver Plant was built in 1929. It had the sewage capacity for a few thousand homes and no wastewater recycling abilities.
In 1993 the City obtained an $8.5 J\fillion Bond to upgrade and expand the old Sewer Plant and build a Wastewater Treatment Plant 1o prm·idc SC\\Cr and recycled \\alcr for ihc -1,080 cuncnl h>)nlcs and !r.JsiHcsscs and 2,20Cl anlicipalcd new homes and businesses.
From 1993- 2001 the City of Beaumont has obtained a total of $25.81\Iillion in Bond Debt to build a Waste\vater Treatment Plant, but the facility was nner huilt
Review of the 200 I Wastc1vatcr 13ond Fund. \ccnunl ren'als thal bcl\v<.·cn ,Tilly 2009 . \ brch 2012 ['nion Bank transferred $3.9 1'v1il1ion to another accounted coded 'Urban Logic Consultants'.
The City has built over 13,000 homes in the last 20 years without adequate sewer facilities or a recycled water facility. The City relies on an Aquifer Basin that has been in Overdraft for years, and \Vater purchased from the State, if available.
If the Beaumont-Cherry Valley area continues to use drinking water for constmction, lawns, and golf courses their drinking water supply is projected to run out in less than 5 years.
The Property Owners in the Developments pay additional ~vfello Roos taxes in part for proper sewer facilities and a Wastewater Treatment Plant that produces Title 22 Compliant recycled water. Developers \Vere also charged !\litigation Fees for Recycled Water. Unknown !Vfillions in A.dditional Taxes and Fees hnve heen collr·c!rd from Property 0\'Ttcrs :md DewJop{'J"s for a \:va~ltvvai.ti 'litaimtnl racihly that was never built.
For 20 years the Sewer Plant has been operated by Deepak l\fo01jani, City Engineer/Urban Logic Consultant. The City claims outside companies operate the Sewer Plant, but in the last 20 years the 'outside companies' have consisted of Moor_jani changing the letterhead from 'Urban Logic SerYices· to 'Aquarion' to 'Utility Partners'.
The last time the City attempted to become Title 22 Compliant was in 2007. The State Regional Quality Control Do:mJ h:1s isstJcd Guidelines <mel Penallies upon the City (lr Dcrnnnoni.. but the Board has failed to uphold any Standards or properly Regulate the City and protect the Citizens.
Instead of building the Wastewater Treatment Plant the City lied and told the community that they built a state-of-the-art Wastewater Treatment Facility \\"hen in fact they huill nothin3 <11 all.
The Oty now has the constmction of the Wastewater Treatment Facility on their 'to do' list with a price tag of $69.5 Million. The City has collected enough money to build the Plant, but all the money's gone.
All of the Bond money is gone. All of the ?v!ello Roos Taxes are gone. All of the ~\/litigation Fees are gone. All of the Additional Fees and Taxes charged to the citizenry are gone. In the last 20 years the City of Beaumont has collected over $50 Ivfillion to build a \Vaste\Yater Treatment t-:acility. There is nn Phmt <tnd i1!1 thf' money's gone.
The Cit\ claims th:~i it currently 'rcch~:rgcs' mc;ming dnmp,; millicms of" gallons of,., ustc\\"<ik.r into tk: Basin C\ cry day. Wastewater that did not meet the standards for Title 22 Compliance in 2007.
The Citv of Beaumont has a Population of 40,000 People, Bond Debt over $350 l\'lillion, Lawsuits over $100 l\!illion, 30 Year \fort gages~ n 3-4 )'car Drinkin.~~ \'/:.~tcr Snpply, ~-nd an It"JfrrJ\truc1 nn;. i h.1t ~s fit1ft: tnt.11 t~ i ~·,:.Jd 'Jili }k ~~ :1nd f! ~i~ q 1r.,;;.
Beaumont Wastewater Treatment Plant Time-Line
1993: City Adopts Resolution 1993-65 Charging Sewer Connection Fees to build a Wastewater Treatment Plant.
1993: City Obtains an $8.5 Million Sewer Bond to Upgrade the Sewer Plant and Construct a Wastewater Treatment Facility. Bond states that the new facilities will have the Capacity to serve the 4,000 Existing homes and 2,200 Additional Homes.
1994: City Obtains $10,290,000-M~llo Roos Bond to Build 2,200 Homes.
1996: City Adopts Resolution 2006-73 Increasing Wastewater Treatment System Fees, Establishing a Salt Mitigation Fee, and Authorizing Expansion of Wastewater Treatment Facility.
1996: City Ontain~ $7.5 1vfiHion SeH'er B{md to Construct \~~'i~te\vlfter Tre._>Itrnent Plant and Pay J 993 Bond
2001: City Obtains $9.78 Million Wastewater Lease Revenue Bond. Bond States Wastewater Facility was Built in 1994 and is Title 22 Compliant
2002: March 5th Council Agenda Item 3 j 'Contract Extension for Wastewater Services with Urban Logic Services'
2003: Deepak: Moorjani Changes Letterhead from 'Urban Logic Services' to 'Aquarion Services' and submits letter to Kapanicas stating that he sold the company, which consisted of the Beaumont Wastewater Contract, to an out-of-state company.
2000-2011: City Obtains $300 Million in Mello Roos Bonds and Builds an Additional 8,000 Homes. All Bonds state fh~~ FP•'~t{" ,u;H l ,. T kh'~ tc. Rnifd ~ewf.r flnd \V:'~ct~'VJ?.kr Trt-~tmcnt ffi,--:ifitic::;:
2006: City Council Passes Resolution 2006-73 Increasing Wastewater Treatment System Fees and Authorizes Expansion of Wastewater Treatment Plant.
2007: California Department of Health Issues 12 Requirements for the City of Beaumont to Become Title 22 Compliant. City never replies or attempts to qualify for Title 22 again.
2008: City Adopts Resolution 2008-45 Authorizing Funding to Construct Recycled Water System
2008: City Adopts Resolution 2008-50 Establishing Recycled Water Capital Reserve Fund in Accordance with State Water Resources Control Board Requirement
2009: 403,000 C'raUons ofR~w s~wrtJ'.~ SpH! imo the San Timoteo Creek
2010: California Regional Water Quality Control Board Issues Administrative Civil Liability Order No. R8-20 10-0022
2010: Moorjani Changes Letterhead From 'Aquarion Services' to 'Utility Partners'
2009-?01?.: O·•inn B;:q1l( f;'mnw:h; $fit) ~;fi111on to lJrhan Logic Con:mH::mt::; through !he 2001 'Jlastevntter Improvement Bond Fund Account
September 10, 2014: Beaumont-Cherry Valley Water District Votes to Receive Recycled Water from Yucaipa Water District as the City of Beaumont has Not built a Wastewater Treatment Plant or Attempted to Become Title 22 Compliant S1ncc: 7007.
September 16, 2014: Beaumont City Council Workshop list on the 'Critical Facilities Future Budget (What Beaumont :~11 ' ' .~' ~ .... !';1 ;;y r':\1 ' ~i?~f) <\ ~. "!:1~~ .. ,) 1.,-:.r~ '· ~. ' ~.- t' 'l';·,- -.-!-:·~.-:-J !)!~:-t ~ ,·-~-;~--~·:;: ... 71 r\"·~-~~~~,.:~t;r"~' :·"7~:1 "P.r~:·~\~ ~;~;~~n~/~11
Beaumont Wastewater Treatment Plant Fraud
The legal definition of Fraud is: A false representation of a matter of fact-whether by words or by conduct, by false or misleading allegations, or by concealment of what should have been disclosed-that deceives and is intended to deceive another so that the individual will act upon it to her or his legal injury.
In the WRCOG vs City of Beaumont Ruling Judge Chaffee stated: " .. fraud by clear and convincing evidence .. "
Judge Chaffee was referring to mitigation fees collected for roads, but the fraud committed by the City of Beaumont regarding the Wastewater Treatment Plant is even more obvious and detrimental to the citizens of tl1e P~~., ,hri'-'11.
A 'sewer plant' is a facility that processes sewer waste.
A 'wastewater treatment plant' is a facility that produces recycled water from sewer waste.
In 1993 the City of Beaumont received their first bond to upgrade the sewer plant and build a wastewater treatment plant The wastewater treatment plant was supposed to oc~ compk~tcd in 1995. 'Completed' as in able to produce Title 22 Compliant recycled water.
The hard fact is that Beaumont Council and Staff never built a wastewater treatment plant - they just started calling the sewer plant a wastewater treatment plant.
For 20 years BP~umont City Council and St;~ff h;7.vc repc..1tcdly Hod ::1bcut h:::tvinq :::t 'otrltc ofthc·art' wastewater treatment plant that produced Title 22 Compliant recycled water. The City repeatedly issued press releases and publicly lied to their citizens and to other agencies.
Page 19 of their 2007 General Plan states: "The City of Beaumont Wastewater Treatment Plant was recently expanded to accommodate up to 4.0 million gallons per day of effluent The City estimates that up to 2s240 acre-feet of recycled wastewater are made available to the community through this plant's operation on an annual basis."
In the State of California wastewater can not be not classified as 'recycled wastewater' until/unless it is Title 22 Compliant. The City has never produced Title 22 Compliant recycled water. NEVER.
The City hasn't even attempted to become Title 22 Compliant since 2007. The Bond Fund Accounts verified that the money from the 2001 Wastewater Bond was embezzled between 2009 - March 2012.
The Beaumont-Cherry Valley Water District did their part and installed the purple pipes for recycled water, but the City didn't/couldn't produce the recycled water. Instead they just put signs on the purple pipes stating that the water was recycled water.
The City has refused to allow Beaumont-Cherry Valley Water District Board and Staff Members access to their alleged wastewater treatment plant. The City refuses to allow the men in the door because these men will know that it's all a big lie.
"If you tell a lie big enough and keep repeating it, people will eventually come to believe it." Joseph Gochcls
The City's lies about building a state-of-the-art recycled water plant is fraud by clear and convincing cvidcr.cc. The only quosticn is: wh.."'lt d~d tho r'..ovn!~rs lq'.ow?
Below are City of Beaumont links containing fraudulent documents regarding the recycled water and wastewater treatment plant:
General Plan pg 19: http:llwww.ci.beaumont.ca.us/DocumentCenter/HomeNiew/63
"'The City's treatment plant and recycled water meet or exceed all stat and federal standards" http://www. ci. beaumont. ca. us/documentcenter/view/2804
"In 1994 the city replaced the old plant with a new state-of-the-art facility .. " http J/www.ci.beaumont.ca. us/ArchiveCenterLViewEile/ltem/132
"Water Use Per Home 280 Gal/Day Available for Recycling, Landscape Irrigation, Recharge, and Reuse." http:/fwww.cLbeaumont.ea.us/docurnentcentertview/19140
"Wastewater treatment plant expansion and upgrading, water recycling, and storm drains: $21.2 Million." "Beaumont's Water History 1994: The City's wastewater treatment plant is expanded and upgraded" http.:[/www.ci.beaumont.ca.us/ArchiveCenterNjewfjle/ltem/167
"The City owns and operates its own Wastewater Treatment Plant" http:/twww,ci.beaumoot.ca.us/documentcentertvjew/15910
Transcripts from the September 1 0, 2014 Be::\umont-Cherry Valley Water District Workshop
Dr A vi Greene, Four Seasons: "I have no knowledge at all, so I am a complete novice at this. The only thing that spurred my interest was that we have these purple pipes that we paid for that was part of, you know, and ~ was askiflg about those. Those are suppose to be for the reclaimed water. So I said, "0 great". When we moved in, which was about five years ago, we were told that this would be for reclaimed water. I said "great, great idea." It turns out of course as everyone knows, there is no reclaimed water flowing through thu~B. it'S f:.~t C\C~\\ \':U.t~~."
Water Board Director Ken Ross: "I met with the Regional Water Quality Control Board to find out if the City in fact had a state-of-the-art sewer operation like they said. The members of the Board laughed. They can not get the water clean enough to recycle."
Water Board Director Dr. Blair Ball: "We got our people together to go look at the wastewater treatment plant, but we were denied access because one staff member from the City of Beaumont didn't wear her right shoes. So everything stopped and they never let us in. They never let us in."
District General Manager Eric Fraser: "there was discussion from the City of Beaumont Officials at the ad hock committee and also reported out at the alliance meeting that "Beaumont's on track, 45 days we will be on track and have our Title 22 approval and legalize that water right away." And that's what was assured to me by Kyle and some other Officials from Beaumont. So l took a moment and called Mr. Williams at the Department of Public Health and asked him where are they at and do you think that's going to happen? H;..,,;,;.. {1'1.;..-.i ~Ut)l. v· ,;....; ! 1,'! 1' i--.··c:·--.,-·:"t':-? l.t. 'h ~,•t,: C'L'':~.I'' o·-,? "·11"" \lili!!i~rn"" t'ndi""::!f-cd ~h~t f~r: l1i1<'::!1't h~M('f from thP. "'vv L v~ ""r-r- ..-vw , V r"i...,\Vv"'•~ .. ""•~\.Airw ::,'-'''~ '::JI •\~ L ...... \,;"""'"~ ......... dd-..J. .. L ........ -....:--~-..--~ t, '"' .. , -
City of Beaumont in quite some time."
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' '; · October 4, 2014 at 2:52 PM llbl ·,, ·''
CIIJ 111111••t 11111'11 Pill
Community Development Goal 8. The City of Beaumont will continue to provide for the development of wastewater treatment infrastructure to accommodate future demand.
The City of Beaumont Wastewater Treatment Plant was recently expanded to accommodate up to 4.0 million gallons per day of effluent. The City estimates that up to 2,240 acre-feet of recycled wastewater are made available to the WlllillUiliiy l.i ll uu~i l \i ,;., j.iia,,;,' <> '-'1-i"'' c;,~; ... , i (;, £., •
annual basis.
• Community Development Element Policy 28. The City of Beaumont will continue to protect water quality through effective v.'af.tewater s~'stem manag~m~'mt
• Community Development Element Policy 29. The City of Beaumont will continue to ensure that future development is adequately served by wastewater treatment facilities.
• Community Development Element Policy 30. The City of Beaumont will continue to plan for the development of a system that will use redaimed water for irrigation. ·
(;ornmunli.y u~:~vttlu..,m~~tui Gval ~. llu:o City of Beaumont will continue to cooperate with the local school district to ensure the existing and future demands are met.
The following policies underscore the City's commitment in working with the Beaumont Unified School District to ensure that there are adequate services and facilities to meeting existing and future demand.
• COtlllifUIIiiy Dt::vc;;iu!JIItailt [.ic:;,,t1,L Pv;;..,y S;. The City of Beaumont will cooperate with the
Beaumont Unified School District and the community college district to promote the provision of high quality services and facilities for local residents.
• Community Development Element Policy 32. l' "·" c~~,. {...: L-~~~-.-.~;--,~ \:::~~ c.,::--.:::~~~:: t:: maintain a proactive relationship with the Beaumont Unified School District as a means to promote quality school facilities and programs.
Community D~v~~opm~nt Go31 10. The City of Beaumont wm continue to explore innovative strategies to pay for needed infrastructure.
While much of the Planning Area is currently undeveloped, most of this undeveloped land has entitlements for future development. Many thousands of new housing units and millions of square feet of commercial and industrial development are contemplated under the General Plan's land use policy. The timely ~· uvi~iu•• u; i •gw ~ •• ;. gg~ -...~u. v t,:, r.-.~~ ~~!.L\ existing and projected demand is an important consideration that is addressed in the policies contained herein.
• Community Development Element Policy 33. The City of Beaumont will rontinue to require future development to pay tneir prorata share for infrastructure and public facilities.
• Community Development Element Policy 34. The City of Beaumont will continue to c::;:!::·:.: t:::: t2::~:~~~~=:~~l c: l':~: ?::-~oer~~ni districts, benefit assessment districts, traffic mitigation fees, Mello-Roos, or other financial mechanisms as a means to finance the construction of new infrastructure.
• Community Development Element Policy 35. 'I tle Gny oi i:lt:eetUJJJlJIJi. wii• w• ,l,j, 1u1:1 l.v e:..,.,i<>~
Beaumont City Document Dated January 1, 2010, which begs the question: Did the City also take money from the Developers for a new wastewater treatment plant?
http://www.ci.beaumont.ca.us/ArchiveCenter/ViewFile/Item!84
The 1929 sewer plant had served the community well. But with development just over the horizon, a modern wastewater treatment plant had to be built at a cost $6.2 million.
The capacity of the new facility allowed new subdivisions and commercial and irnh ~~trin! development that crerttAd jobs.
To raise money, Beaumont came up with an innovative method of turning developers into "partners" for growth.
--------~ - \ ----------------. / About a dozen developers put up the money for a new wastewater treatment plant that ' would aHow building to go forward and upgrade water quality for existing residents.
Builders believed in the city's future potentia~. so they pui a ~Jit:lJldi idA 0• • t~-~~i.- n:;.·,.~i land.
Builders like John Stewart recalled sitting in day-long meetings for weeks with city officials. His company put up $750,000 to help pay for the new treatment plant. Later, his approximately 500-home project, Three Rings Ranch, helped ignite Beaumont's building boom.
The plant opened in 1994 --five years ahead of the housing boom.
A
From City of Beaumont Website, Date Unknown, But refers to 'Mayor Deforge', 200~-:w u.
http://W\\IVtci.beaumont. ca. us/ ArchiveCenter/ViewFile/Iternil32
Waste Water Treatment Plant
High-tech control rooms, big, blue ponds, and 140 miles of underground lines keep up with sewer treatment in Beaumont.
Long and growing tradition In 1929, Beaumont built its first treatment plant and located it in the southwestern portion of the city. In 1994, the city replaced the old plant with a new state-of-the-art facility on 15 acres in the very same location along 4th Street.
I ( --1. (\ I . '-[-
Developer fees paid for most of the plant. f w e._ ~ <=<- r ~Y \..) D t 1 C..~ ~. Q..~· ~ \J ~- '7 l I ~v does"u1- eK1 ~7 ..s
Today, the treatment facility handles 4 million gallons a day. And we hardi{Iioi.icc iu a. yicu.t~ -y.~.~i·~ -;;;., l:;:.\'::; ccr::-:.1~ t0 expect excellence and the highest level of service. The facility, which is operated by a private company for Beaumont, works diligently to uphold the strict state and federal standards for recycled water.
The plant has a modular design that keeps costs down and can be expanded in years to come.
Cutting edge water recycling Beaumont's treatment plant uses a seven-step process to tum waste into environmentally safe recycled water and sludge.
In 1994, the city was the first to get a permit and use the ultraviolet process -instead of toxic chlorine- to disinfect and recycle water.
By working closely with the plant's operator and county and state agencies, Beaumont has become a leader in the world of\-.'ater recydine Our efforts help the environment and the Beaumont Basin. 1.8 million gallons a day are fed into Cooper's Ctcck io p1".,"' .. 'y"' .:~~~~:~ r~~~~. 700,000 gallons a day are poured into the Basin to replenish water levels.
Future: 8 million gallons a day -enough water to supply 15,000 homes for a year- will be recycled for landscaping and to replenish our groundwater supply.
Beaumont's recycled water travels down the Santa Ana River and is used by thirsty Southern Californians as it flows tov.rard Orange County ::tnd the ocean.
Looking ahead We're able to double the capacity of our wastewater treatment plant and create 8 million gallons a day of recycled wate enough to supply the needs of 15,000 homes for a year.
R,egu 1,atory Environment ;J*-. (l
~~ ·~·t·{ {J"; qc:;:.J cJ.-.~ \../ f' .') / - t J f• v,
Treatment p~ants operate in a complicated and rigorous regulator;{ environment. Beaumont's plant operates under a permit issued by the Santa Ana Regional Water Quality Control
Board" Recycled water must me~t or exceed federal and state ·water quality standards. .
~The city's treatment plant and recycled water 1::::: meet or exceed aU state and federal standa.rds. The plant operator is a private company under· contract with the City of Beaumont.
Beaumont 2001 Wastewater Treatment Bond Embezzlement
Bond Fund Accounts are individual accounts established and maintained by the Bond Trustee. All $350 Million Bond Debt issued to the City of Beaumont has one ( 1) Bond Trustee: Union Bank.
The Use and Amount of money deposited into each Fund Account is established by each Bonds' Sources and Uses of Funds Disclosure page.
The Beaumont 2001 Wastewater Bond page 19list the Bond Fund Accounts as: Vfastcwatcr E')crow Fund $7,9'ir7 ,365 Wastewater Improvement Fund $1,518,760 Costs of Issuance Fund $ 475,000 Rate Stabilization Fund $ 300,000 Total Uses $10,281,125
TJw 11<'-.il:Hmnnt GAAP Andit~ report the foHowint: mn~)~m!s p::tid for Sewer Fund M~('hirwry & Fqnipm~nt: FYE 2010$4.4 Million FYE 2011 $2.4 Million FYE 2012$2.6 Million FYE 2013 $2.3 Million
The definition of Machinery and Equipment is: 'Assets having a physical existence and expected to be used for a period exceeding one year.' Consulting, labor, and advertising expenses do not qualify as machinery and equipment.
Because the Check Warrants do not show millions in equipment purchases, a public records request was filed for the checks to show the Sewer Fund machinery and equipment purchased in th~ l8st four years. The City produced a copy of the General Ledger Sewer Fund 10 listing the money paid with Checks AND the 2001 Sewer Bond Wastewater Improvement Fund Accounts for the fiscal years ending in 2010,2011, and 2012.
The July 1, 2009 Wastewater Improvement Fund Account shows a Beginning Balance of $6,656,617.29. Page 19 of the Bond states the total amount the Trustee should have deposit into this Fund Account was only 1.5 Million.
From July 2009 thru June 2010 a total of $1,784,199.99 was funneled to Urban Logic Consultants, $15,794.90 to Bentley Systems, and $871,810.73 to the City of Beaumont's CitibankAccount.
From July 2010 thru June 2011 a total of $1,116,859.95 was funneled to Urban Logic Consultants.
From July 2011 to ~.1arch 2012 n tot:il of $999,02L56 V.'<:F: funneled to Urban Lor.ic Consultants and $C8'l'i$084 to Citibank. The final Balance on March 31, 2012 was $13.59.
When Beaumont Finance Director, WilliamAlyward, was asked for the documentation fromApril2012 through June 30, 2013 he replied that there is no documentation. There is nothing resembling a receipt for the $2.3 Million in Equipment and Machinery recorded on the GAAP Audit FYE 2013.
The General Ledger from July 2009 through June 20121ists a total of $7,767,855.05 in Expenses with $2.8 Million paid to Urban Logic, $2.3 Million to J.F. Shea, $92,676 to Moody Construction, and $780,000 to Wildermuth Environrnentals.
Nc.arly $8 Million of the $9.7!vfi11ion 2001 \V&f;te.wt:!e.r fkmd wgs supp~:s~d fu he u~ed to p:1y old hond debt, but $3.9 Million was funneled to Urban Logic and $2.7 Million was funneled back to the City through Citibank.
And the Wastewater Treatment Plant? There is no Wastewater Treatment Plant in Beaumont. All the money was
bunloflBank • kc?Unt Number 671'674106
• Acc"'!lllf NltDe BEAJ,MONT 2001 - IMPROVEMr!lT FUND
Asset Detail • Principal Portfdio
Lll C11h & Cash Ecvlvllents
AllllfNI., CUSIP
llonty Market Funt i·
BlACKROCKIIiSTITUTIONAL FliNDS 0924BU718S T-FUND INSTIT"/liONAl SHARES CASH MANAG£\~ENT SWEEPS
Total CMh & Cash E;~lfYalents
Total Principal Portflii'D
Total Account V1f111es
Transaction D11ltall
l.,. Beginning Bllance
07105/1 f
07111/11
Description
CASH RECEIPT ')F DIVIDEND EARNED ON BLACI<ROCKV UNO MMKT INSTL #60 DMDENO FRO-~ 611/11 T0&/30/11
CASH OISBURS;~-ENT PAID TO URBAf· LOGIC CONSULTANTS, IH: TRANSFER TO !.B CHKINGISAVING
Sltnll UR111H.td
2,769,750.160
2,789,751.160
2,789,750.111
2,769,750.160
RE'1 ~22· WASTERWATER EN-I'lRSE. PROJECT
Accoun··: Statement
[ • state77tmt Period
Colt Balis
2,769,750.16
$2,7&1,750-1&
$2,7&1,750.11
$2,711,758. tl
CUSIP
09248U718S
Jul-, 1 , 2011 through July 31 . ZO 11
l'rir:rl i11ercelll"' Mrie' Vllue Dill Priced ~POitloliD
2,7fHS0.16 1.0000 100.00% 07/29/2011
$2,7( H50.16 100.00%
$2,7( \150.111 100.00%
$2,7(1,750.16 100.80%
CrllfBali• :t"inr:IPI/ C•h
$0.00 $2,n,ssu&
23.80
(98,928.00)
Current Yield
0.01'.4 ..., .....
0.01%
0.01%
0.01%
Pagel at3
ll UnionBank • Aecou.'?.f Number 6711674106
• Acco .. ~···· BEAUf•10NT 2001 ·IMPROVEMEN- FUND
Asset Detail- Principal Portforo
L; C~th & Cash Equrr.lltents Sh~rel/
AssefName CUll I' Units Hlld
Money Martel Funds
BLACKROCKINS'"ftTUTIONAL FUNDS 09248U718S 2,683,767.330 HUND INSmU-IQNAL SHARES CASH MANAGEM-JH SWEEPS
Total Cash & Cash Eqt.".'falents 2,683,767.330
Total Principal Portfof-o 2,683,767.330
Total Account Vah1es 2,683,767.330
Account $taternent ,-~------- --- ----- --·------~
~ statem-mt Period Augu1t 1, 2011 through Augurt 31, 2011
Prietl "1!tetlrlagt C111rent ":'JstlultJ lflrlcet r lr.flle D•• Prir:td t::f POiffollo Yield
'.GB3,767 .33 2,683,~67.33 1.0000 100.00% 0.02% 0813112011
$:;~83,767.33 $2,68l. T1i7 .33 100.08\ 0.02%
$.\,;83,717 .33 $2,68311i7.33 10UO\ 0.02%
s:.;a3,r&u3 $2,D3:r·n .33 100.00% 0.02%
Transaction DE'tail [111 Dste --=--De-uri_lptl_o_n-------------~CUSII'
frf~pa/ Cull
$0.00
Crli'!BIIII
Sz.7r~.75D.1& Beginning Bllance
08101/11
OS/01111
08111/11
CASH RECBPT OF DIVIDEND EARNED ON BLACKROCKT·fUtiD MMKT INSTL #60 CURRENT 7 DAY 1WERAGE .01'/e
SWEEP FEE CO.!.:ECTED CASH MGT CHC:l!UCKROCKHUND MMr'- INSTL #60
CASH DISBURS"C!MENT PAID TO URBM LOGIC CDNSULTANTS TRANSFER TO L'i:l CHKINGISAVING
~EC ·123-WASTEWATER ENTErr.RJSE PROJECTS
0924BU71BS 23.86
09248UT18S (21.69)
(85,985 .00)
"'
hgt2ofJ
lJ UnlonE·ank • Account 'Vumk 6711674111G
·~·~·-SEAUMCNT 2001 ·IMPROVEMENT FUND
A1!1set Detail - P-fncipal Portfolio
[01 Cash & Cash EqtiYmlents
AIHfNallt CUSIP
llo11ey Market Funds
BLACKROCKIN~TTUTIONAL FUNDS T-FUND INSTITrr:ONAL SHARES CASH MAHAGEI1.'NT SWEPS
09148U718S
Total Cash I Cash Eruillalents
T otll Principal Portt,.,;· o
Total Account V1fues·
Transaction t'111tail !.!~Dille
Beginning Bllant'<
09/01111
09109111
Dewiptlon
CASH RECEIP- OF DIVIDEND EARNED 0'' BLACKROCK--f.UND UMKT INSTL #P CURRENT 1 D\Y AVERAGE .01"1.
CASH DISBUr~EMENT PAID TOUR£ Ml LOGIC CONSULTANTS. '\lC. TRANSFER T? UB CHKINGISAVING
Shire II Unlls Htld
2,593,295.970
2,593,295.970
2,593,295.970
2.513,295.970
; ·:EQ124·WASTERWATER Dlli'ERPRISE PRJCTS
Account Statement ,~-~-···
41 statefrH:'nt Period Septe"l'ber 1, 2011 through Serte>mber 30, 2011
r:~o~stBISis
~.593,295.97
~:1,593,295.97
U,593,2t5.97
U,5t3,295.97
CUSIP
09248U7185
Prf'fl f1.1rcentage l.tet -1.!1/ue Date l'tiCfd 11· Pottlollo
2,m.<35.97 1.0000 100.00% 09/38/2011
$2,59~.~95.97 -$2,591,195.97
$2,5fl.:i!t5.97
,fl'rindpal Culr
$UO
23.14
(90,494.501
100.00%
100.08%
1110.00%
C'?JrtSasis
$2, 1lll, 7&7 .33
Cu"'"' Yltld
0.01'/a
0.01%
D.81%
U1%
...., ;:;
Plgt2 afJ
IJ UnionBark • Account Nflm.fMr 6711674106
• AccOIInf Nlllf' BEAUMONT (001 ·IMPROVEMENT FUNO
As sot Detail - Prine l!pal Portfolio
r·; C-11sh & CashEquivaler:1~ A.,etN•IIIf "':fJSIP
Mc--nmy Market Funds
BLACKROCKINSTITUTIC'NAL FUNDS T-FUND INSTITUTIONAL SHARES CASH MANAGEMENT fl!'fEEPS
~n4BU718S
Tct':111 Cash & Cash Equtvaleltl
Tc-~1'11 Principal Portfolio
lf''ial Account Values
Transaction Detail
L.l fllfe
r~ginnlng Balance
'~1113/11
'IJ!14111
Dttcrlpllon
CASH RECEIPT OF DIVDS'lD EARNED ON BLACKROCKT-FUND l'!>1KT INSTL #60 CURRENT 7 DAY AVER ISE .01'/o
CASH DISBURSEMENT PAID TO URBAN LOGI': ~ONSULTANTS, INC. TRANSFER TO UB CHfltiGISAVING
S,fr•ell U1!t:1 Held
2,C\.Q11.960
2,P,91U61
2,4-;.,111.910
2,n:,a1u&o
l; REQ 125-l"lllTEWATER ENTERPRISE !"RJCTS
-·~-·-· ·---------·.
Account Stahment
c; Statement Period --
CostB·~rit
2,473,0·'1,116
$2,473,8'' ~ .96
$2,473,8" .96 ---$2,473,8 . ~ .96
CUf1tt
OW-81J716S
october 1, ;:011 through October 31. 2{)11
Pdct/ Percefl.r:ifl CfiiTent Merket Value Dale Priced 111 Pornllo Yield
2.473,011.96 1.0000 10C .tO% 10/31/2011
$2,473,811.98
$Z.473,t11.91
$2,473,111.91
Prlndp'"'i' CIIIJ
$0.011
21.54
(1Z1.305.55)
1o~.uv.
1o-.m~
10'-lt%
CostB11h
$2,593,2BS.fT
0.01'/o
-0.01%
0.01%
8.81%
.., ;::;
Pap2 ol3
lJ UnionBank • Aceourrf Number 67116i4106
• .WO.l(!Na,.. BEAUfQNT 2001· IMl'ROVEMEN- FUND
i\sset Detail -Principal Portforo
L;l Cash & CashEquvatents
btet N11111 CUSIP
Ioney Market Funds
BLACKROCKINS-~TUTIONAL FUNDS 09248U718S HUND INSTITU-ftlNAL SHARES CASH MANAGEM:r-.JT SWEEPS
Total Cash l Cash Eqrh!tlents
Total Principal Porttor·~
Total Account Vl-llitiS
Transaction Dr1:ail
[J.D-. Beginning Bal111ce
11101111
11/01/11
Deuriptlon
CASH RECEIPT ')f DIVIDEND EARNED ON BLACKROCKT·-·~ND MMKT INSTL #60 CURRENT 7 DA'' P.VERAGE .01'/o
SWEEP FEE co·.·.ecTEO
,,_,, Unit• Held
2,384,552.120
2,384,552.120
2,314,552.121
2,314,552.120
CASH MGT CHC: BLACKROCKT·FUND MM'\: INSTL #60
11101111
11108111
PURCHASED J,!\ 1 UNITS OF BLACKROCKT·~'JNO MIIKT INSTL #60 TRADE DAlE 1'101111
CASH OISBURfl:MENT PAID TOURBA'i I.OGICCONSULTANTS,It'C TRANSFER TO ;.!!: CHKING!SA.VING
; Rf? 126 ·WASTEWATER ENE'\PRISE PROJ.
Account atatement
c.. ~fem"m~- Period Novecber 1, 2011 through NC'vember 30, 2011
Prlt:tl ?vunfqe Cl1"'"' ~~If Basis •arket V4fue Dlle Prleed r:f Porllollo Yield
~ .. 384,552.12 2,384, ~52.12 1.0000 100.00'" 0.01% 11/30/2011 <">
~
n*'ss2.12 $2,314-i'i2.12 108.98% 0.01%
f 1,.'1il4,552.12 $2,384.. i S2.12 1DU8% 0.01%
fl-384,552.12 $2,384. 'H2.12 10U8% 0.81%
CUSIP fr7nt:ipal Casll Ccllthll•
$1.00 sz,n,o1tt&
09248U718S 21.47
09248U718S (18.06)
09248U71BS (3.41) 3.41
(88,463.25)
P~ge2 afS
b UnionBank • kcoull'f Number 6711Wl06
• kcour" N•m• BEAUM1NT 2001-IMPROVEMENT FUND
Asset Detail • Principal Portfolb
l; Cash & Cash Equ'ralents
but Nllflt CUSIP
Money Markel funds
BLACKROCKINS -:rUTIONAL FUNDS 09248U718S T-FUND INSmu-·:;·NAL SHARES CASH MANAGEt{~'~T SWEEPS
Total Cash & Cash Eqrl•,alents
Total Prilldpal Portto·~,
Total Account va·!:ts
Transaction Dflf:ail
L; Dlle
Beglnnblg Balance
12101111
12101/11
Dml'/pl/oll
CASH RECEIPT C'~" DIVIDEND EARNED ON BLACKROCKi·f'.1MD MMKT INSTL 160 CURRENT 7 DAY AVERAGE .01%
SWEEP FEE COLLECTED
'"'res/ Unitt Hell/
417,234.580
417,234.581
417,234.580
417,234.580
CASH MGT CHt::'3LACKROCKHUND MM'',T INSTL #60
12/01/11
12108/11
PURCHASED J.ri rJNITS OF BLACKROCKT·PJiliD MMI<T INSTL 160 TRADE DATE 1~.'\t1/11
CASH DISBURSeMENT PAID TO URBAF LOGIC CONSULTANTS TRANSFER TO '-''l CHKINGISAVING
RE1 427-WASTEWATER ENTE~PRISES PROJECT
Account -Statement ~-~-- .. ~- - --- - --
LJI Statemrmt Period
~~stB11is
W,234.58
lit17,2S4.58
nt. 11,234.58
~.4117,234.51
CUSIP
09248U718S
09248U718S
09248U718S
Oece"""tber 1, 2011 through Dec~mber 31, 2011
Prleel f1lf'Cenfllf l•ttt Y~ut Dlle Priced -~ i"ortfolio
417. '!:\4.58 1.0000 100.00% 12130/2011
$417-1:34.58
$417-~.58
$417-ilJ.4.58
""~rtm:lpl/ Cult
$0.00
19.71
(15.74)
~3.97)
(97,619.761
100.08%
100.00%
108.00%
Cg.'l!JJatls
$2,3f1.552.12
3.97
Cumnt Yield
0.01%
0.01%
U1%
0.01%
.....
,..,,z «3
If UnionBank • Acco&<llf Number 67116' 1..106
• Acco/rll'f Name BEAU 'flO NT 2001- IMPROVEMeNT FUND
Transaction 0f'1tail (continued)
Account Statement c;·~t Period -----··· ...
DeceTber 1, 2011 through 01"<:'-ember 31, 2011
c.; Dlh Dtwfptloa ~SII' f"inclpal Ca•h Crr.1Basls
12108/11
12114111
12/14111
12!14111
Net Activity
Ending Balance
SOLD 97,619.76 :JNITS OF BLACKROCKT·cl!ND MMKT INSTL #60 TRADE DATE 1'1~1111
CASH DISBURfa1ENT PAID TO URBA'l LOGIC CONSULTANTS TRANSFER TO ';1E CHKING/SAVING
RD. 128 . REDEVELOPMENT "iOJECTS
CASH DISBUR";ItMENT PAID TO CITIBY~K FSB REQUISITION ··,WMENT REQ #128; WW7" CLEANUP
SOLD 1,869,70; UNITS OF BLACKROCK':'-FUND MMKT INSTL #6~
TRADE DATE ';:114111
5'
09248U718S 97,619.76 p,619.76)
(34.617. 75)
( 1,835,084.00)
09248U718S 1,869,701.75 ( 1, 'll'l J 70 1.75)
$1..1G ($1-717,317.54)
$D.Gll f (117,234.58
*
....
Pagel «3
b Union 3ank • Accou.'l( Number 6711674106
• Accou1f Name BEAUfONT 2001-IMPROVEMENT FUND
T!ransaction Detail (continued)
[g Date Dearlptlon
01/05/12
01105/12
01/06112
01112112
01112112
Net Activity
Ending Bala"'e
PURCHASED 417 :~16.2 UNITS OF BLACilROCKT·Fr~'O MMKT INSTL #60 TRADE DATE 01/f5112
SOLD 417,236.2 U\·-s Of BLACilROCKT-Fl1,0 MMKT INSTL #60 TRADE DATE 01/f ~'12
PURCHASED 417 1l'i.2 UNITS OF BLACKROCKT·FlPi!) MMKT INSTL #60 TRADE DATE 011r<:12
CASH DISBURSEI'1T'NT PAID TO URBAN .DGICCONSULTANTS TRANSFER TO Uf CHKING/SAVING
J; REQ -~7:9-WASTEWATER ENTERP<lSE PROJECTS INVI 2012·101
SOLD 148,335.3 U'IXTS Of BLACI<ROCKT·Fl'NO MMKT INSTl #60 TRADE DATE 01/'1;'~2
ntl lns•.:•ts ·-
..
Account ;:)tatement
E; Statemmt Period JanuE-y 1, 2012 through Janurry 31, 2012
'f:VSIP Pr"l!f.'JPIII Ca1h Cos'ffuis
'9248U71&S (417,236.19) 417n6.19
1924807185 417,236.19 (417 -~~6.19)
,
J9248U718S (417,236.19) 417.Z15.19
(148,335.25)
ll9248U718S 148,335.25 (148.m.25)
$0.00 ($14U33.&4)
$8.00 $218-1\111.94
F'fgt3 at3
lf un•Bank • kr'l'!lnt Number 671'187410&
.Acr-mniN•tH BEJ..\IMONT 2001-IMPROVEME'IT FUND
Transaction · 01')tall (continued)
!
L .. ""'
112/13112
02/13112
Net Activity
Ending B•lance
Dflmpllon
CASH DISBUR"l1:1\1ENT PAID TO URBI \' LOGIC CONSULTANTS TRANSFER TO VB CHKING/SAVING
RfO. 130·WASTEWA1ER ENTE'1 1 RISE PROJECTS INVII 2012·108
SOLD 197,485.~ IJNITS OF BLACKROCKT-"UND MMKT INSTL 160 TRADE DATE &:!!13/12
no ir96rts
Account Statement
[_;; statetr~t Period Febnllry 1, 2012 through Fe'>ruary 29,2012
CUSIP
09248U718S
NnciPII Cab
(197,485.25)
197,485.25
$0.00
$1.110
Crlff Bai•
(1"7 .485.25)
($1~! .412.14)
PAtUO
*
<"> ...
"•t•J f#J
buntonBank • keount Numbft 6711674106
• -.unt Nft'llf
BEAUMONT 2001-IMPROVEMENT Fut:o
Ass'!l't Detail • PrincJpal Portfolio.
r-. CIPIII & Cllll Equlvlletti
Auttlll ..
lr~·tY Mattei Funds
';(J, $h«uu
Frlft Hllltl
BLACKROCKINSTITUTIO'ML FUNDS T·FUND INSTITUTIONAL 3HARES CASH MANAGEMENT FfEEPS
c9248U718S 13.590
Tof1! ltash & Cash Equivalelltr
Toh1 Principal Portfolio
ll)'fl1 Account Values
Tran~oaction Detail
C.l~~ 8t'1lri\Rtag Balance
03(0'/12
83r1112
03/1'112
031'31!2
fJHf:tl"'*on
CASH RECEIPT OF DIVIDE'!!) EARNED ON SLACKROCKT-FUND MM"\~ INSTL #60 DIVIDEND FROM 211112 T1 2129112
SWEEP FEE COLLECTED
13.518
tUM
13.511
~ASH MGT CHG: BLACKfi'jt:KHUND MMKT INSTL #60
"URCHAS£0 0.29 UNITS C'F lLACKROCKT-FUND IIMt-: INSTL #60 ~RADE DATE 03101/12
CASH DISBURSEMENT "AID TO URBAN LOGIC CC~'SULTANTS TRANSFER TO UB CHKfNf·'l?AVING
REQ.131 WAS"lf:WATER ENTERPRISE PfC'J lrfVII 2012·116, CONTRACH:BHIFICATE 1124
Account Stai:'l!lment
ct.-~ ;7gflod
Colf~llis
1159
$1'.:71
$1:.r.t
$1:.f.9
CUSIF
09248l718S
09248F18S
09248ln~s
March 1, 2C12 thtOUgh March 31,2012
Ptlcfl PltCtnl·"fi'lt Current Mrilf v•e Dlllt Prlced (If Pllrli -riio YIMI
13.59 1.0000 0313812012
$13.59
$13.51
$13.59
l'rfrtel,. t .olh
!'MO
~.18
"i.89l
(1.29)
(71,40!.,0)
100.10%
100.'~\%
too.~n%
1D8J"'ll%
COlt Bull
$71,411.38
0.29
o.oo•;,
0.00%
UO%
8.10%
.., ;:;
P1ge2 o/3
Journal Entr! Series TRX. Date Acccunt Number Accourt Description 229491 Purchasi"l,€ 3/14/2013 I0-4'l50-4060-0000 CONTIACJ'UALSERVICES 230222 Purchasi"t:'§ 3/2112013 10-4150-4060·0000 CONTlACTIJAL SERVICES 231931 Purchashr: 4/1812013 10-4':150-4060~000 CONT1AC11JAL SERVICES 234223 PurchashJ! 5/1612013 10-4050-4060..()()00 CONT.'...ACJ'UAL SERVICES 236440 PurchashF: 6/18/2013 10-4050-4060-0000 CONT."-AC1UALSERVICES 214079 .Purchashfl 7/20/2012 10-4('50-4060.0000 CONTP-AC1UAL SERVICES 215005 Purchasbf; 812/2012 10-4('50-4060-0000 CON1TAC1UAL SERVICES 215422 Purcbasir:.~ 8/14/2012 10-4(':50-4060~000 CON1TAC11JAL SERVICES 217279 Purcbasir.,f 9/6/2012 I0-4C50-4060-()000 CONTfAC11JAL SERVICES 218779 Purcbasir.~ 912612012 I0-4e0-4060-()000 CONITAC1UALSERVICES 218782 Purcbasirf! 9/26/2012 I0-4f~0-4060-0000 CONTf.ACTIJAL SERVICES 218785 Purchasiq; 9/2612012 10-4(50-4060-()000 CON'ITACTUALSERVICES 219191 Purchasir~ 10/312012 10-4f50-4060-4000 CONTrACTUAL SERVICES 219194 Purchasiq 10/3/2012 10-4(~0-4060-0000 CONTIACTUALSERVICES 220297 Purchasir! 10/18/2012 10·4C50-4060-6000 CONTF ACTIJAL SERVICES 220298 Purchasir.! 10/18/2012 10-40!0-4060-0000 CONTFAC1UAL SERVICES 220299 Purchasir.~ 10/18/2012 10-40~·J-4060-0000 CONTFJ~CTUAL SERVICES 220305 Purcbasin-; 10/18/2012 10-4031J-4060.0000 CONTFACTUALSERVICES 220306 Purchasin-; 10/1812012 10-40>·1-4060-0000 CONTRACTUAL SERVICES 222052 Purcbasin~ 1118/2012 10-40~0-4060-0000 CONTR-\CTUAL SERVICES 222053 Purchasin~ 11/8/2012 10-40:"0-4060-0000 CONTR.i>.CTUAL SERVICES 222054 Purcbasin~ 11/8/2012 10-40,.tl-4060-0000 CONTRA.CTUAL SERVICES 222059 Purcllasin" 11/8/2012 10-40_:"0-4060-0000 CONTRACTUAL SERVICES 222970 Purchasin: 11/29/2012 10-40:0-4060-0000 CONTRACTUAL SERVICES 222971 Purchasin;c ll/2912012 10-40~0-4060-0000 CONTR:\CTUALSERVICES 222972 Purcbasin[ I 1/29/2012 10-40~(·-4060-0000 CONfR.\CTUAL SERVICES 222978 Purchasinf I 1/29/2012 10-40~t-4060-0000 CONfRA.CI1JAL SERVICES 222980 Purchasinf 11/2912012 10-40~0-4060-0000 CONTR:\CfUAL SERVICES 223882 Purchasinf 12/13/2012 10-40!'~-4060-0000 CONTR;\C11JAL SERVICES 223883 Purchasinf 12113/2012 10-40~)-4060-0000 CONTR;\-:::TIJAL SERVICES 223884 Purchasinf 12/13/2012 10-40~?-4060-0000 CONTR!\-:::TUAL SERVICES 223890 Purchasinf 12/1312012 1 0-40~?-4060-0000 CONTR/\CTUAL SERVICES 223891 Purchasin~ 1211312012 t0-405i-4060-0000 CONTRi\CTUAL SERVICES 225987 Purchasin~ 111712013 l0-405i-4060-0000 CONTR.i\CTUAL SERVICES 225988 Purchasin~ 1/17/2013 10-4051-4060-0000 CONTR/,CTUAL SERVICES 225989 Purchasin~ 1/1712013 10-4051-4060-0000 CONTR/,CTUAL SERVICES 225990 Purchasin~ 1/1712013 I0-40SH060-0000 CONTRJ\CTUAL SERVICES 225991 Purchasi~ 111712013 10-405')-4060-oooO CONTR/':CTUAL SERVICES 225994 Purchas~ 1/17/2013 10-4051 -4060-0000 CONTIV,Z::TUAL SERVICES 227048 Purchasint! 2/112013 10-405(-4060-0000 CONTRJ1CTUAL SERVICES 227049 Purchasin~ 2/112013 I0-405C-4060-0000 CONTRJ .. CTIJAL SERVICES 227050 Purchas~ 2/112013 10-405C'-4060-0000 CONTIV-.CTUAL SERVICES 227051 PurchasinE 2/1/2013 10-405C -4060-0000 CONTRAC11JAL SERVICES 227052 Purchasin~ 2/112013 10-40SC·4060-0000 CONTRACTUALSERVICES
------·----------·------ ---·--·--------------------·
Debit Amount 92,908.53
114,887.82 112,923.56 198,92U8 379,734,81
71,331.40 86,595.00 69,417.70
118,150.68 3,929.00
77,155.00 2,553.00 3,075.00
72,012.75 37,790,00 2,535.00 4,295.00
22,597.50 195.00
8,825.00 9,005.00
14,248.51 39,860.25
3,230.00 7,790.00 1,430.00
35,458.75 1,950.00
12,805.00 10,888.75 5,045.00
29,307.00 4,290.00 1,560.00
18,560.86 6,425.00
780.00 3,600.75
35,1 13.25 1,365.00
24,681.50 18,604,80
390,00 2,136.64
Credit Amour Originating :Vaster Name J.F. SHEA CONSTRUCTION INC J.F. SHEA CONSTRUCTION INC J.F. SHEA CONSTRUCTION INC J.F. SHEA CQNS1RUCTlON INC J.F. SHEA CJNSTRUCTION INC URBAN LCGIC CONSULTANTS URBAN LCGIC CONSULTANTS URBAN LCGlC CONSULTANTS URBAN LCGIC CONSULTANTS URBAN LC0IC CONSULTANTS URBAN LC'JIC CONSULTANTS URBAN LC?,XC CONSULTANTS URBAN LC'2-£CCONSULTANTS URBAN L0'2JC CONSULTANTS URBAN LO':i-IC CONSULTANTS URBAN LO'JIC CONSULTANTS URBAN LO'JIC CONSULTANTS URBAN LO'JIC CONSULTANTS URBAN LO'JIC CONSULTANTS URBAN LO'JIC CONSULTANTS URBAN LO'JIC CONSULTANTS URBAN LCY:,IC CONSULTANTS URBAN LO:fC CONSULTANTS URBAN LO'?-IC CONSULTANTS URBAN LO'}IC CONSULTANTS URBAN LO''JIC CONSULTANTS URBAN LOGIC CONSULTANTS URBAN LOG!C CONSULTANTS URBAN LOG~C CONSULTANTS URBAN LOG1C CONSULTANTS URBAN LOGT CONSULTANTS URBAN LOG~C CONSULTANTS URBAN LOGrC CONSULTANTS URBAN LOC?C CONSULTANTS URBAN LOGf.C CONSULTANTS URBAN L()(l)'C CONSULTANTS URBAN LOOTC CONSULTANTS URBAN L00fC CONSULTANTS URBAN LOC·fC CONSULTANTS URBAN LOCIC CONSULTANTS URBAN LOOC CONSULTANTS URBAN LOf-IC CONSULTANTS URBAN LOOC CONSULTANTS URBAN LOCIC CONSULTANTS
227055 Purchas;n~ 228805 Purchas.'.r..! 228806 Purchas'!Jij! 228807 Purchas'.u~ 228810 Purchas:·nf 229429 Purchas':tr~ 229430 Purchas'"n! 229431 Purchas'.Tif 229434 Purchas'.Tif 230918 Purchas:.ne 230919 Purchas:·::JE 230923 Purchas: . .,~ 230924 Purchasi::1~ 232946 Purchasf.cE 232948 Purcllash¥ 232956 Purchasi."T:! 234426 Purchash~ 234430 Purchasb~ 238027 Purchash! 238032 Purchash'i 238035 Purchasi:l.'; 238038 PurchashG 239374 Purchashr. 232947 Purchasilf
Auditor adjustments 240638 Purchasir~ 240642 PurchasirE 240643 Purcllasir[! 240644 ~irr
2/112013 10-4<'50-4060-0000 CONTRACTUAL SERVICES 212812013 l0-4C50-4060-0000 CONTRAC1UAL SERVICES 2/2812013 10-4('~0-4060·0000 CONTRACTUAL SERVICE1 212812013 t0-4f50-4060.0000 CONTRACTIJAL SERVICE) 2/28/2013 10-4f50-4060.0000 CONTRAC1UAL SERVICE3 3/13/2013 10-4('50-4060..0000 CONTRAC1UAL SERVICE1 3/1312013 10-4£'50-4060-0000 CONTP.AC1UAL SERVICE:; 3/1312013 10-4f50-4060.0000 CONTP.ACTIJAL SERVICE:': 3/13/2013 10-4('50-4060..0000 CONTRACTUAL SERVICE>
4/4/2013 10-4f50-4060.0000 CONTRACTUAL SERVICE1 4/412013 10-4('50-4060..()()00 CONTF..ACTIJAL SERVICE:-:: 4/4/2013 10-4('50-4060-0000 CONTRACTIJAL SERVICE;:; 4/4/2013 10-400-4060-0000 CONTFACTUAL SERVICE~ 51212013 I0-4C~tl-4060.()()00 CONT:\.ACTUAL SERVICE:'· 51212013 10-4C:0-4060-0000 CONDACTUAL SERVICEf 5/212013 10-40!0-4060-0000 CONP.-ACTUAL SERVICEf
5/15/2013 10-40:HI-4060.0000 CONP...A.CTUAL SERVICEf 5/15/2013 10-40J'J-4060.0000 CONDACTUAL SERVICEf 613012013 10-40JIJ-4060.0000 CONP.ACTUAL SERVICEf 6/3012013 I0-403iJ-4060-0000 CONT?.ACTUAL SERVICEf 6130/2013 l0-40)iJ-4060-0000 CONP.ACTUAL SERVICEf 6130/2013 10-40~0-4060-0000 CONP..AC1UAL SERVICEf 6/3012013 10-40'~0-4060-0000 COND.ACTUAL SERVICEf
5/2/2013 10-40~0-4060-0001 SEPTIC CONVERSION PRO."ECT
8/112013 I0-40:~0-4060.QOOO CONTi' ..ACTUAL SERVICES 811/2013 10·40:"1)-4060-0000 CONTrACTUAL SERVICES 8/1/2013 10-40:"0-4060-0000 CONTFACTUAL SERVICES 8/1/2013 10-40:0-4060-0000 CONTI' ACTUAL SERVICES
18,713.75 64,68'".93 9,68~.87
45.'1.00 27,26' .. 50 52,75'!.05 2,53:";.00
21,65'~.00
26,24~.85
68,27·/·.88 4,48:-:.oo
65"'.00 3,62:.".00 3,951'.25 3,51C.OO
39,18:.".63 85,33:'.2.5
4,40C.DO, 57,50:-.so to,s9r.oo 3,60C.<JO 2,73(',')0
28('.')0 10,59f.'JO
$2,69!'.00 $39,331.40 $28,41/.13
$2,S3COO
URBAN LOGIC CONSL"L TANTS UF..BAN LOGIC CONSL"LT ANTS UF..BAN LOGIC CONSL"LTANTS URBAN LOGIC CONSL-LTANTS UF..BAN LOGIC CONSl:LTANTS UFBAN LOGIC CONSL'L TANTS UFJlAN LOGIC CONSL"LTANTS UK'3AN LOGIC CONSU~T ANTS UFJ3AN LOGIC CONSt.-LTANTS UF,'3AN LOGIC CONSC~TANTS UF.3AN LOGIC CONSCJTANTS UFJ3AN LOGIC CONSt-:J T ANTS UFJ3AN LOGIC CONSUJ TANTS URBAN LOGIC CONSL"LTANTS UKBAN LOGIC CONSU~ T ANTS URBAN LOGIC CONSl-I~TANTS UKBAN LOGIC CONSCLTANTS URBAN LOGIC CONSL"LTANTS URBAN LOGIC CONSt'L T ANTS URBAN LOGIC CONSP~TANTS URBAN LOGIC CONSL"LTANTS URBAN LOGIC CONSL 'LT ANTS URSAN LOGIC CONSL'LT ANTS UR? .. AN LOGIC CONSCLTANTS
$0.00 UR?AN LOGIC CONSL"LT ANTS $0.00 UR'3AN LOGIC CONSCL T ANTS $0.00 URlAN LOGIC CONSCL TANTS $0.00 UR3AN LOGIC CONSD~TANTS
Journal Enti'J Serie:o. TRX Date Accot.lnt Number Acccunt Description 191612 Purcl's.sinE 9/2212011 10-4060-4070-0000 SPEC DEPT SuPPLIES 187531 Purctasin~ 8/5/2011 10-4\1.50-4060-0000 CO:KTRACIUAL SERVICES 190835 PurchsinE 9/1412011 10-41.50-4060-0000 COKTRACIUAL SERVICES 193486 Purctasin~ 1012112011 10-4150-4060-0000 COJI..TRACTUAL SERVICES 195107 PurctasinE I 1/912011 10-4'JS0-4060-0000 COI'o.'TRACTUAL SERVICES 197186 Purci"as~ 12/812011 10-4)50-4060-0000 CONTRACTUALSERVICES 199643 Purc.tasinE 1/1312012 10-4150-:4060-0000 CONTRACTUAL SERVICES 201762 PurchsinE 2/1012012 10-41.50-4060-0000 CONTRACTUAL SERVICES 204283 PurcbsinE 3/14/2012 10-4350-4060-0000 CONTRACTUAL SERVICES 204288 Purch1,;in~ 3/1412012 10-4'/50-4060-0000 CONTRACTUAL SERVICES 204792 Purch;inE 3122/2012 10-41.3'0-4060-0000 CONTRACTUAL SERVIC3S 206751 Purchl.'>inE 4/1912012 10-4'130-4060-0000 CON':'RACTUAL SERVICES 207711 Purcb1SiDE 51312012 10-4':!:30-4060-0000 CON-:-'RACTUAL SERVICES 209484 Purch11:1inf 5124/2012 10-4050-4060-0000 CON':":'.P..ACTUAL SERVICES 210412 Purch~.!dn& 6n/20 12 10-4C•50-4060-0000 CON'""""R.ACTUAL SERVICES 211346 Purch:-.~.in€ 6/22/2012 l0-4C50-4060-0000 CON'"""KACTUAL SERVICES 212370 Purch.~.,.i!lf 6/30/2012 10-4C~0-4060-0000 CON~RACTUAL SERVICES
Debit Amo•mt Credit Amour Originating Master Name 113,508.61 11,513.00 58,320.~1)
63,833.::'0 63,400.('0 42,995.CO 88,045.f0 21,676.~')
91,477.;-o 168,647.':""5 82,245.C'O
200,115.75 138,255.~5
124,975.C:i 101,19l.14 90,37l.l:5 83,632.75
GCDWIN PUMPS J.F. SHEA CONSTRUCTION lNC UR3AN LOGIC CONSULTANTS UR3AN LOGIC CONSCLTANTS UR3AN LOGIC CONSL L TANTS UR"3AN LOGIC CONSL"LTANTS UR1AN LOGIC CONSL"L TANTS UR1AN LOGIC CONSL"LTANTS UR1AN LOGIC CONSCLTANTS UR1AN LOGIC CONSLLTANTS UR1AN LOGICCONSCLTANTS UR1AN LOGIC CONSL-LTANTS URlAN LOGIC CONSL"LTANTS URlAN LOGIC CONSLI~ TANTS URJAN LOGICCONSL'LTANTS UR:.AN LOGIC CONSULTANTS UR'MN LOGIC CONSULTANTS
City of Beaumont 2001 Wastewater Bond Called After Fmh;r;;r,-fpmpr;t RP-vP-~I~{t
On November 4, 2014 Union Bank Director-Regional Manager of Corporate Trust, James Myers, notified Union Bank Director of Public Finance, Anne Kupfer, that the City of Beaumont's 2001 Wastewater Bond had been Called.
On Now~mbAr 1 ~, 2014, Union Bank Trustee Michael Boughton transferred $5,069,508.87 from the 13 different Mello Roos Bonds to pay the Wastewater Bond. fhese transactions are credited to fund i 2 on 1he General Ledger. ~rhere
is no Fund 12 listed on the City's Budget.
On November 25th Union Rank transferred another $1,154,670.72 to the City, but these transactions were not recorded on the General Ledger. On November 2GU i U 1c Ciiy a.:6u i t:i~dvcu a. uopu~ii h.~i ~ i ,30~,2.:J1.0G. rp1 ,300,000 vva6 recorded on the General Ledger with the memo "Risk Management".
On November 25th the City transferred $7,610,000 to Union Bank. This transaction is not recorded on the City's General Ledger.
From: James Myers Sent: Tuesday, November 04, 2014 8:06AM To: Anne Kupfer [MH] Subject: Beaumont Utility Authority Letter of Credit Mandatory Tender Importance: High
HAnne,
I left a voicemail for you yesterday about the Beaumont Letter of Credit. Under the terms of the Indenture, since the Letter of Credit expires on 12/31/14, the bonds are subject to Mandatory Tender and Purchase on December 1, 2014, (the first bond payment date at least 5 days before the expiration of the letter of credit) notwithstanding Beaumont's intention to "pay off" the bonds sometime in December.
What this means is that we will need to draw on the full amount of the Letter of Credit for the December 1st
Mandatory Tender Date. The bonds will then need to be registered in the name of MUFG Union Bank as the new Owner.
Notice of the tender should be going out today. Please contact me if you have any questions.
Thanks,
Jim
James Myers
Director-Regional Manager/Corporate Trust
MUFG MUFG Union Bank, N.A.
350 California Street, 11th Floor
--:------ Original message -------From: Anne Kupfer Date:11/0712014 9:55AM (GMT-08:00) To: "Bill Aylward (baylward@__cLbe.aumont._ca_u_s)" ,"Alan Kapanicas ([email protected]_._US)" Cc: Robert Sakai Subject P.N: Beaumont Uti!ity Authority Letter of Credit Mandatory Tender
Hi Bill and Alan,
I received this notice from the trustee (see below) that, unless they get paid off by December 151, they will have to do a mandatory draw on the bank and we will have to book a bank loan. Since we do not want to fund a loan, and charge the high interest rate, is it possible to pay off sooner. Please let me know.
Thanks,
Anne
Anne Kupfer
Director
Public Finance
MUFG MUFG Un!on Bank1 N..A.
445 South Figueroa St. 5th floor
Los Angeles, Ca. 90071
T ?13 ?~-64~4
c: 31 0 502-0500
A member of MUFG, a global financial group
Authorized Representative of The Bank of Tokyo-Mitsubishi UFJ, Ltd.
From: "Bill Aylward" <[email protected]> Subject: RE: Beaumont Utility Authority Letter of Credit Mandatory Tender Date: November 7, 2014 at 10:10:19 AM PST To: "Anne Kupfer" <Anne.Kupfer®u.nionbank.cQffi>, "Alan Kapanicas" <[email protected]_._u_S>
Our plan is to have money to trustee around Th~nksgiving
Sent from my Verizon Wireles.~ 4G L TE smartphone
OFFICIAL STATEMENT
NEW ISSUE - BOOK-ENTRY ONLY RATING NOT RATED
In the opinion of McFarlin & Anderson, Irvine, California, Bond Counsel, suhject to certain qualifications t1~.-;;Lt,.7;i.:J h._,._:,.l_, "'~~'-.!' ~~i.:H6 :.._.,:,· .:.~ :iilw..;."'"'.::,l v,,l ~,~.~- :.;v .• .l.J ;.:; ............. : .... .: .... d ;: L,.:
0. Lr· ... J· • .'.:.;..·._ .... ~ /:,f J~:::!..:.: _;! :.~c::.-::,_' ~-7.--r
purposes and is not an item of tax preference for purposes offederal altemative minimum taxes imposed on individuals nnrf ro~norations, a!tho!tgh for f1;:rp."7SCJ of ('(}l!lfl!£thi/~ tht- o!t:;t.•;u!r\·t· t:t:-::t:-::u:n t:n· in-:J~.,n· .. -.d (H< r~--.--r:.-.;.: ff'~r·_..-,._.-.r.:~-_,.~:·• .. such interest is taken into account in detemzining certain income and eamings. In the further opinion of Bond Counsel, such interest is exempt from California personal income taxes. Bond Counsel expresses no opinion regarding other tax consequences related to the ownership or disposition of or the accmal or receipt of interest on, the Bonds. See "LEGAL MATTERS- Tax Matters" herein and the fomz of opinion of Bond Counsel attached hereto as Appendix C.
DaitJ: Augu:,i i, 1 :..,'fJ
$8,500,000 BEAUMONT FINANCING AUTHORITY
1993 REVENUE BONDS, SERIES A (SEWER ENTERPRISE PROJECT)
Interest on the Bonds is payable on March 1, 1994, and semiannually thereafter on September 1 and March 1 of each year until maturity or earlier redemption (see "THE BONDS- General Provisions" herein). The Bonds will be issued as fully registered bonds, registered in the name of Cede & Co. as nominee of the Depository Trust Company, New York, New York, ("DTC"). Under the book-entry system maintained by DTC, the Bonds will he available to actual purchasers of the Bonds (the "Beneficial Owners") only through brokers and dealers who are or act through DTC Participants as described herein. Beneficial Owners will not be entitled to receive physical rt.:·~l!~·t~Tj' r:t: n··" P· ;~,A-- o~"-:-···r··_ '~,:;" :~d :·r: ''·: jn P··· p., ... !\ '. .. ::: ! ~.-. i:' (L·-~;,-....... ;,-, :.i ;, ,-;-. .: ~ ... : ~c:.r.:t;) (;;;_~t j~d ,~f~.~ ;: .. ! fr'tHhi;)~~ ..... o;
tht::H:~of Print·i!"~d~ r•·'"'m!n·n-.~, if ;•">· (•'·-~! ; .. ~-·-~:·:: {~"·· r :~:: r.:~r<o_,:: t,: t~· .. _ Cv ... ~~ i..., th•jU~: .... L .. } lYl''-.: L! r .. ~\....ll •. Lou Trust Company of California, San Francisco, California, as Trustee (the "Trustee") and, so long as DTC or its nominee remains the registered bondholder, disbursement of such payments to the Beneficial Owners is the responsibility of the DTC Participants. In the event that the book-entry system is no longer used with respect to the Bonds, the Beneficial Owners will become the registered owners of the Bonds and will he paid principal, premium. if any, and interest by the Trustee. all as described herein.
The Bt.;nds Jrc ~t!.l~ject to ( ... =~""'thJl~a1, m~u~d·J!_!)f"j TfHi ~~i.!t'(·i:\1 rn:nHI:~tnty n:dentptinn pnor to rnaturit.y as described herein.
MATURITY SCHEDULE $8,500,000 6.9% Term Bonds due September 1, 2023 (Price 100%)
The Bonds are payable from the revenue pledged under the Indenture, described herein (see "THE LEGAL DOCUMENTS -THE INDENTURE") consisting primarily of installment payments to be made by the City of Rc;mmont (the "City") tot he HEJ\OMONT FINANCING AUTHORITY (the '1\uthority") under an installment :-.ait agu::tllltlli as tkscriutu htll::iu. '1 ilt: CJiy':, uuiigiiliuu h• !Hake iu,ialuucui f"1Jll1C11l'> is payai.Jk :.vl..:.ly tlv1il I-id Revenues of the Sewer Enterprise of the City, as described herein (sec "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein).
The Bonds are not a debt of the State of California or of any political subdivision thereof other than the Authority to the limited extent described herein and neither the faith and credit nor the taxing power of the State of California or of any political subdivision thereof (including the Authority) is pledged to the payment of the principal of, intcresl or premium of the Bonds. The Authority has no taxing power.
i'his cover page contains certain information for quick reference oniy. it is not a summary of this issue. Potential investors must read the entire Official Statement to obtain information essential to the making of an informz:d inv,~stmc nt dcci.'iion.
The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to legality by McFarlin & Anderson, Irvine, California, Bond Counsel and subject to certain other conditions. Certain matters will be passed upon by Jones, Hall, Hill & White, a Professional Law Corporation, San Francisco, California, Disclosure Counsel, and for the Authority by Ak!ufi & Wysocki, Riverside, California. It is anticip~ted tL~: tl .. ..., 0 ... } .... ~~~ i. •• L ... ;,J: ... _ •• ~ .. 1 fv ........ _,.::: L .... ~ .. -.&:: ..... ~ .. :-I ...... J ..... ~~.--<; ~~- -:!_~: .. :: .. _ f: .. ~:::. :-~~ LJ l<.: i:.: t.:.:-:.-.- '"{~L-i~, r .. ::~.~.- \<1r~-::.~ on or about St~rtemhr'r )(\, J 993.
CHILTON&C?.:~~~~9~.~~~~; \ '1Cf "3
BEAUMONT FINANCING AUTHORITY 1993 REVENUE BONDS, SERIES A (SEWER ENTERPRISE l'ROJECT)
CITY COUNCIL
./,;;;j,:,, C. L'jo, \.f,~~~w
Frank H. Parrott. Afayor Pro Tem .\fa!!hew A. Brey, Councilmember
/Jonaid H< jyfcLuugh/i,l, Cuum,duir:;;;;:;ei'
.\fatthew J. Russo. Council member
CITY STAFF
Dayle Keller. City Manager -----:T!an C. Kapanicas. Interim Director of Administrative .Services
PROFESSIONAL SERVICES
Bond Counsel Mr,F~din k Anrl~p;on
Irvine. California
City Attorney JuM;plt A. AAlufJ
Aklufi & Wysocki. Riverside
Project Manager Urban Logic Consultants
Temecula. California
C~vi~ F«fE11f<"iTrans-Pacific Consultants
Temecula. California
Waste Water Engineer Lee & Ro
City oflndustry. California
Sewer «ate Cunsulta•il' David Taussig & Associates. Inc.
NeYvp:m Beach. faliforniil
Underwriter Chilton & O'Connor. Inc. Los Angeles. California
Disclosure Counsel Jones Hall Hill & White
,\ Proff:'~<:iQn:Jl l.~lW C!Jrporation San Francisco. California
Trustee Meridian Trust Company of California
s~r-. Fr{ ... ~r~-.~.~. t~.~!-;t:-.:o.t·~
another intennediate clarifier. From the intennediate clarifier partially treated waste water is discharged to another trickling filter which is followed by a secondary clarifier. Finally, the treated waste water is chlorinated and discharged to Cooper's Creek. Solids from the various clarifiers are pumped to an anaerobic digester for stabilization. The digested sludge from the digester is dried in drying beds prior to disposal at local landfills, or on agricultural land.
tsecause the existing headworks and primary dcuiilt:I~; cau ~1Afuc1U.;y 'i.t...ai. :Gv..v., iu ""'.A,.,;;, vf I.L;:.
current average flow of 1.0 MGD, these units will continue to be used (with minor modifications) as the flows increase. The existing anaerobic digester will continue to be used to digest sludge from the existing Y primary clarifiers. Construction of the new facilities should start during the winter of J.?93 al_!.d should be completed by March_!_ 99L A temporary pumping station will be constructed just downstream of the existing primaries for diversion of primary effluent to the new secondary treatment process. A single lined
contact tank.
The treated effluent from the new facilities should meet the current discharge requirements. For example, total inorganic nitrogen (TIN) should be less than 10 mg/1 (as N) more than 85 percent of the time, ammonia nitrogen should be less than 2 mgll (as N), turbidity should be less than 2 and the colifonn c.oncentration should be less than 2.2 per I 00 mi.
The existing headworks has two channels for reliability. The secondary treatment process will be designed for complete treatment even if both of the primary clarifiers are out of service. The activated sludge basin will be designed so that the aeration or mixing units can be removed from service one at a time without impairing treatment efficiency. Multiple filters will be provided.
The City, incorporated in 1912, is a general law city governed by a Mayor and four City Council members who are elected to four-year alternating terms. The City has adopted the Council-Manager fonn of operation. The City Council appoints the City Manager who is responsible for the day-to-day administration of City business, the coordination of all departments of the City, including the Sewer Enterprise, and c.arryine out the policic~ e<:tzblished hy the City Council. The Public Works Director v .. ill exercise general supervision over the Sewer Enterprise.
18
Bonds were issued, as a result of future acts or omissions of the Authority or the City in violation of their covenants in the Indenture or the Installment Sale Agreement, as applicable. Should such an event of taxability occur, the Bonds are not subject to a special redemption and will remain outstanding until maturity or until redeemed under other provisions set forth in the Indenture.
There can be no guarantee that there will be a secondary market for the Bonds or, if a secondary market exists, that such Bonds can be sold for any particular price. Occasionally, because of general market conditions or because of adverse history or economic prospects connected with a particular issue, secondary marketing practices in connection wit-h ~ p;;rticular issue an:· sw;p~ml::-.d or tcrminatc~1
Auilil.ionally, prices of issues for whtch a w..arket is being made will depend upon then prevailing circumstances. Such prices couid be substantiady d:IIierent from me onginal purchase price.
THE SEWER ENTERPRISE
The Sewer Enterprise consists of collection and treatment facilities which now serve the equivalent of approximately 3,982 customer units. The existing treabnent structures and equipment are nearing the end of their useful life and have limited capacity to meet future demand. Current waste water flows are at the system's rated capacity of 1.0 MGD.
The waste water treatment plant is operating under a permit issued by the State Regional Water
meet the permit requirements, the Sewer Enterprise will construct new waste water treatment facilities, with a maximum capacity of 1.4 MGD, northeast of the existing headworks. Of the facilities total capacity, 1.0 MGD will be reserved for existing users, and the excess capacity of up to . 4 MGD will be reserved for new development and is planned to be sold to Community f'll61ities District 93-l.
CmtL'!l!.mity Fac:ilitie;:: Di;::trict 93·1 ca::tzin'- l 3 i:npravcmcnt areas:, of vJt~d: !2 ha1.-c authorized bonded indebtedness and the levy of a special tax. When the CFD issues special tax bonds (expected in October 1993 ), the City of Beaumont intends to sell the excess capacity to the CFD for approximately $3,400,000. In the alternative, the City may exchange the excess capacity for special tax bonds with a face value of approximately $3.400.000. The income from these bonds would supplement the user fees in meeting the City's obligations under the Installment Sales Aerr.,:?mt'nt
The Project
The Project involves acquisition of and improvements to the Sewer Enterprise, including construction of a new waste water treatment plant. The new facility will use an activated sludge process. The activated sludge process will remove nitrogen using anoxic treatment zones which convert nitrates to nitrogen gas. The nitrogen gas is then dischare!'~-f int0 thr:> atm::>sp~rctt;. Th~ trc?.tc-ri wr:;-t(' ,~·,·:tcr \\·ill then ~c p<nnp;'t.i t0
:,ainJ iJiu;a~ a.uu i.hc i1iu;11;u \\ai.c• w~ll t.i,t;u oc u.i::.iuf~LcU u~iug ::.ooiu111 ;,~ pud.lu• i4c.
The existing treatment plant includes a headworks for grit removal. comminution and metering. The discharge from the headworks enters two prima.ry clarifiers, which are followed by a trickling filter and
17
NEW ISSUE-BOOK ENTRY ONLY !{ATil'i<i NOT UATFil
!n the npini_on of /lfcFarl~rz•& Anderson, ln·ine. C'ul•f;,mia. llnnrl Counsel, wbjcct to certain qualifications dcscrikd herem, wtder exzst111g law the mlere.~l nnllze 1994 Srries ,\ r11ul tiH' 19.CJ4 Series B Bonds (the "Bonds") is excluded from grns~ income for federal income lax JH11110Srs and is not rm item nf lax prc'{ererwr fnr p111710Ses of federal altrrnatiue minimum tax,·.~ imposed on individual.~ and cnrporntion.~. although for I''"]'O.~('" of romputing the alternative minimum tax impnsrd 011
Ct!rfai.n corporations, such in.fcrrst is tahen info (J('r'Olllll in flr·lcrlnif!ing r·crfflitt inron;c and f'arnings }n //1,. r~~rfh~'-rop.'!UON of r· i" (', }I:: ·
1• i._:_. ___ : : __ ·---~--·.~-:f.· .... ~---:.J.- . .. :_.I ' .... : i ... -···- :, _ ___ ..;_ L _.·: .) ~- c· --~-l ,_-:·J·---.----- -,- ..... ~-J·-~--;: ... rr·,::-";.'"{ 1!p:g
other lax cunsequences rcl11terl In thP 011'/l{'r~hip nr dis]"·~ition n{. or the accrual or receipt uf inf('I'I'Sf un, the Bor:rfs. 8cr "LEG!\L MATTERS- Tax Mrttter.," !z,.,.ein and thr f"r"' of op111ion n{ nond Cmmsel attached hereto as i\ppcnc!t' ( ;,
C()_UN'IY OF HIVERS!_n!~
$7,535,000 $2,755,000 BEAUMONT FINANCING AUTHORITY BEAUMONT FINANCING AUTHORITY
SERIES A SERIES B Haled: January 15, 1994 IJue: September I. as shown below
Interest on the Bonds is payabiP on September I, 19!).1. and semiannually thereafter on March 1 <md September 1 of each year until maturity or earlier redemption (see "THE BO'-IDS- General Provisions" herein). ThP Bonds will be issued as fully registered bonds, registered in the name of CPde & ( 'n. as nominee of the Depository Trust Company, New York, New York, ("DTC"). Under thP bnnk-cntr.r system maintained hy DTC, the ilonds will be availnb!e to nctua! purchasers of the bouU:, \t.he (..bcut:ln;iW Uwut:ttj' J ouly L1uuubl.t l.Jloht'.t~ ittlll Ucc:~h·1;:, w~.tv rue ut t1\..\.. ~luvub~ .. Ll~ ro.,~~\..~pcui~>:J u~ U...:;.:n .. la,L.~t herein. Beneficial Owners will notbe entitled to receive physical delivery of the Bonds. Ownership interest in the Bond!' will be in denominations of$5,000 and integral multiples then·of. Principal, premiums, if any, and interest due with respect tot he Bonds is payab!e ta DTC hy MPrini0n Trw:t CoiT'pO'.n,\· of ('"lif:,;-;-:i:•, [;;,-,,, F1,,,.;"'''. r."n;,,.,;,, w: Trn,·<r." (th" "Tn;d,-.r:')
and, so long as lJTC or its nominee remains the registPrPd bondholder, di!'bursement of such payments to the Beneficial Owners is t.he responsibility of the DTC ParticipantR. In thP event that the book-entry system is no longer used with respect to the Bonds, the Beneficial Owners will become the r~>gistr'r"c! owners of the Bonds and will be paid principal, premium, if any, and intere;:;t by the Trustee, all as described herein.
The Bonds are subject to optional, mandatory nnd spPcial mandatory redemption prior to maturity as descnbed herein.
1994 SERIES A MATURllY SCHEDULE
$7,535.000 7% Term Bonds rlue September I, 2023 (Price 98.764%)
I994 SERIES B MATURITY SCHEDULE
Maturity Date Principal Interest ReofTerlng Maturity Date Principal Interest ReofTering Sept. 1 Amount Rate Yield Sept. 1 Amount Rate Yield
1999 $65,000 5.75% 5.75% 2002 $75,000 6.20% 6.20% 2000 70,000 5.95 5.95 2003 80,000 6.30 6.30 2001 75,000 6.10 6.10
The Bonds are payable from the revenue pledged under the Indenture, described herein (see "~H~ LEGAL DO~UMENTS- THE INDENTURE") consisting primarily of principal and interest payments on local obhgatwns, as described herein (see "SOURCES OF PAYMENT FOR THE BONDS" and "BONDOWNERS' RISKS" herein).
The Bonds are not a debt of the State of California or of any political subdivisions thereof other than the Authority to the limited extent described herein and neither the faith and credit nor the taxing power of the State of California or of any political subdivision thereof (including the Authority) is pledged to the payment ofthe principal of, interest or premium of the Bonde. Th~ t\nthority h~?. nn b=t~inr; r;r:-t~ler.
This cover contains certain information for quick reff'rence only. It is not a summary of this issue. Potential investors must read the entire Official Statement to obtain informntion essential to the making of an informed investment decision.
The Bonds are offered when, as and if issued and accepted by the Underwriter, subject to approval as to legali~y by McFarlin & Anderson, Irvine, California, Bond Counsel and subject to certain other conditions. Certain ~atters Will ?e passed upon for the Underwriter by Jones, Hall, Hill & White, a Profession~ La~ Co~pora~i~_>n, San Francisco, C~1forma, Disclosure Counsel, and for the Authority by Aklufi & Wy~ncki, River!lide, Cahforma. It IS an!lcJpatecl that t.~~ Bonds m bo~~cntr.Y f.71rl~i, vr·in h.;:: ~:;:.ra;~P.~r~·~ [(·.,_· ~_~,- ~{';i·~y i:1 tL·fr:~:!~'..r· fr:r ·n 1:• rrrt· in t-.J~~·.~; )t~:--t· h'c-."1:: y,-.·d.: P7'1 r>~ p~;-,~ 1 ~ t·;-:~.~-;;::n·y .q 1C:·:.-;.
Dated: January 27, 1994
CHILTONA" _O'CONNOR. INC. ~IN\'ESTMENT BANKERS I
I 'i q 'I (){·') .<} C\
BEAUMONT FINANCIN(; AUTIIOIUTY 1994 LOCAL AGF.Nn· RF.VENllF. BONDS
Bf<~AUMONT FINANCING AFnJORITY (;OVERNJNG BOAIU>
AND CITY COUNnL
.f{;•:!.ff' (" l')". :~:-.,. ... ~
Frank fl. l'arrnlt. Mm·or l'rn 'li'm Mattluw :1. n, n·. Counrilmrmht•r Rog('l V. !lox. ( ·ouncilmrmht•!
Matt/11'11' ./. l<ussn. Counnlmnnher
'-...... -...._ l>uyle Kellrr, ('it\' Ma!lrl~f'l' and F1nutit·e lJir{'('/or
;\I an C. Kaf'llllims. Interim I li' t't'lor of Administratil'e SetTicex ~)m•id IV. /)ilion. l>irectr>r of F:umPmic l>Pvelflf?1111'11t
PROFE5iSHl'! \L SFrnltE''
lknd ( 'm.ln~~'~ Mcf-arlin & Anderson
Irvine. California
Authorit.:r Counsel and City Attorney Joseph A. Aklufi
:'\~!td~ P,.r. \Vy~:n{·ki. Rip{~·r.:-;de
Prnj;:d l':bn:•ger Urhan Loric Consultants
Temecula. California
Civil Engineer Trans-Pacific Consultants
Srwdg! Tnx Con.<:uHant David Taussig & Associates, Inc.
Newport Reach. California
Underwriter Chilton & O'Connor. Inc. f n;;; i\ngdes. f':~!ifmni;~
Disdosurc Cmmsel .Iones Hall Hill & White
A Profcssionnl Law Corporation San Francisco, California
Trustee Meridian Trust C";np;my of Cfllif•y ni:!
~;~q Fr 1,.,, ;'{ o, {-'.,~~~·t·n~~a
OFFICIAL STATEMENT
$7,535,000 BEAUMONT FINANCING AUTHORITY
1994 LOCAL AGENCY REVENUE BONDS ,(;1fi~P.'n?~ A
$2,755,000 BEAUMONT FINANCING AUTHORITY
1994 LOCAL AGENCY REVENUE BONDS SRRTPS .R
This Official Statement which includes the cover page and appendices (the "Official Statement") is provided to furnish certain information concerning the sale of the Beaumont Financing Authority (the "Authority") 1994 Local Agency Revenue Bonds Series Aand Series B(the "Bonds"); in the aggregate principal amount of $10,290,000.
This introduction contains only a brief description of this issue and does not purport to be complete. The introduction is subject in all respects to more complete information in the entire Official Statement and the offering of the Bonds to potential investors is made only by means of the entire Official Statement and the documents summarized herein. See "BOND OWNERS' RISKS" herein for a discussion of spcci:1! risk f:w.tors th~t shonld be considered in cv::1ln:1.ting the investment qHality of lh~ Ronds.
Overview
Throughout the 1980s, while other commumttes in western Riverside County were expanding rapidly, growth in the Beaumont area was severely restricted due to the capacity limits of the City's wastewater treatment facilities. Without new wastewater treatment facilities, several new master planned communities and mixed use developments which had been approved by the City could not be built. To
own sewer enterprise funds. In adrlition, tht> City formed the Authority which issmxl.. in 1991, sewer revenue bonds with a par value of $8,500,000 to finance the balance of the required facilities.
Construction on the new wastewater facilities has begun, and Beaumont is now able to support the growth which bypassed the City in the 1980s. Growth is projected, by Empire Economics. to pick-up <tgain in the mid-l990s. The envisioned growth is n0t CX!J<"::Ctcd to be as rapid <JS th~ !::lte 1980s, but is anticipated to begin incrementally in late 1994 and early 1995. {See Appendix D.)
Accessibility, affordability, and amenities are the primary factors which will, in the view of Empire Economics, make Beaumont an attractive location for new home buyers. Only Victorville which is more remote, across the Cajon Pass, offers this same combination of factors.
fl.t"';;;nrnnn~ jf..: \!.:.ifhin ('.;:'"..;)' (h~\\_'}!·~_: (ti<!::~!::-'('" nf n~;"· }?!\.'~~n.;it~:· :~n0 ~~;r; 1{:--'"rH~~r-di(,r+. {t_ntp1nyr:"lr"Td H1ftrtt--..fs;
anrl on!v 16 mil!":~ fwm thr OntJrio Intcrnati-:ma1 Airn-,r:t cm•,:rloyrncnt (:r"fll:"f nt"i,\Hn:m! i~ ~f"fYt;r! hy J . I '
Facilities to be Financed by the District
The Bonds are proposed to be issued based upon the estimates shown below. The Developers have not agreed to pay any costs overruns. Cost overruns will reduce the facilities which can be financed. The adopted District resolutions authorize the issuance of District Bonds to be issued to fund the planning, design, permitting and con<;tn!('f.inn of rub!!::· fa61iti,o;; Tlu- ; •. ,,;,.,-i:T·•rl p•vpv""'..:; iv. 1u .. ..::w0 t~uvut;lt iltc i:-.11u<tm.:e of District bonds are defmed as tollows:
Critical Facilities. Critical facilities are those facilities which have the highest priority in terms of the City of Beaumont's Comprehensive Public Facilities Financing Program (Program). Critical Facilities represent programs and improvements that benefit large areas of the City and its sphere of influence. Included in the list of Critical Facilities are City Program costs related to the preparation of a
planning, expansion of the wastewater treatment plant and prepaid BSF fees to fund market absorption and appraisal reports .
.Joint Facilities. Joint facilities are those facilities which have the second highest priority in terms of the City Program. Joint facilities represent improvements which benefit multiple Improvement Areas within the District. Included in joint facilities are master planned water, sewer and drainage improvements
Individual Facilities. Individual facilities are those facilities which have the lowest priority in terms of the City Program. Individual facilities represent improvements that generally benefit individual Improvement Areas within the District. Included in individual facilities are master planned, in tract water and sewer improvemenfs nnd pre!imin:1:-y t>n[.inecrinf fondinr
The following table summarizes authorized District facilities which are to be designed, acquired or
City of Beaumont ComrnunHy ~.:-.rmn,.,~ n:;·,+r;,.~ ~~, 1
Series 1994A Facilities1
Critical Facilities
I. 2. ' J.
4. 5. 6. 7.
City Program' Water System Master Plan'
·r • ...,~~•i•"ui ;·iuut ;-a\.-iJ;iit.:..-:5 / ~ Sewer System Master Plan'
Reclaimed Water System Southwest Properties Trans. System Prep;:i;! BSf7 Fe~·,
Subtotal
• Joint Facilities
1. 2. 3.
Noble Creek Sewer Southwest Properties Sewer' Southwest Properties Water'
33
$ 837,000 70,000
L,,!i<f,uutl 75,000
371,000 1,095,488
$5,419,975
$ 738,500 157,000 100,000
\qq._/ TSo"-'l'J '
Bond: 2001 Wastewater Enterprise Series A Lease Revenue Bond
A mrmnt: '1;0 ,700()00
Kapanicas listed as 'City Manager, Finance Director, City Clerk'
Page 3 Refunding Program states: "The Financing Authority has previously issued its Local Agency Revenue Refunding Bonds 1996 Series A in the aggregate principal amount of $7510/lOO,, All ofwhich remain outstanding."
Page 19 Sources of Funds lists Remaining Funds from 1996 Wastewater Bond at $686,925
Page 19 Uses ofFunds lists the following: Wastewater Escrow Fund $7,987,365 Wastewater T mprovement Fund $1 ,518, 760 Costs of Issuance Fund $475,000 Rate Stabilization Fund $300,000
Escrow Fund Memo states: "See 'Introductory Statement- The Refunding Program' herein." (pg 3)
Page 44 The Project states: "The Wastewater Enterprise improvements to be planned, designed, and/or constructed with proceeds from the Bonds will include reclaimed water facilities, electrical generation and conservation facilities and improvements to the sanitary and storm sewer systems."
Page 45 Wastewater Enterprise Description: "The Beaumont Wastewater Reclamation Facility was constructed in 1994. The tertiary treated wastewater generated by the facility complies with all Title 22 and State Regional Water Quality Control Board discharge requirements."
The Wastewater Improvement Fund Account monthly statements show $6.6 Million funneled to Urban Logic Consultants from 2009 - 2012.
NEW ISSUE-BOOK ENTRY ONLY RATI~G
Standard & Poor's: AAA/ AI+ (See "COI'iCLt:DII'G INFORMATIO~ • Rating on the Bonds" herein)
In tile opinion nf Mc~a_rlin & Anderson, Lake Forest, California ("Bond Counsel"), based upon an analysis of existin;: laws. regulations. rulltlf!S and coun dectSIOJIS, and asmmmg, among other mof!ers, compliance with certain cavemmts am! a;:reement.r, imerrst <m rhr l?ullrh is PH·Ir~•1~~i:1 fr'{.HH t~····u i·" ... ~ ... ~, jr<> i'"'L'"':' 1 ,;.~ ..... :-·~:··' ~' ....... ~ r"··;· -·-.! t . .._'_j s_ ... :~·.., ... JC; ~..; i: .... L .. "i,. ... : ~~"*""""'" C&..: .. t•./ 1 ~c~ luu.: i.l t.\tlllf'i jlfJIII :,iUit
of Ca/ijorm~ p~r!onalmcome tares. in the _opmtf!n. of Bond Counsel, interest on the Bonds is not a specific preference item for purposes of the federal t~tdtwclual or corpomle a/temam·e mtmmum tares, altlzough Bond Counsel observes that such imerest is included in adjusted currem earnmgs when calculatmg corporate alternative minimum taxable income. Bond Counsel expresses no opinion regardi11g anv other rar mnseqtll'nces related to the ownership or disposition of. or the accrual or receipt of imerest wt, the Bonds. See ''LEGAL ;'I-MITERS - Tax Matters" herein.
Dated: Date of Delivery
STATE OF CALIFORNIA
$9,790,000 BEAUMONT UTILITY AUTHORITY
VARIABLE RATE REVENUE BONDS, 2001 SERIES A (WASTEWATER ENTERPRISE PROJECT)
PRJC.F.: 100% Due: September I, 2041
The co,·er page contains certain information for quick reference only. It is not a summary of the issue. Potential investors must read the entire Otlicial Statement to obtain information essential to the making of an informed investment decision. Investment in the Bonds involves risks. See "BOI'iD OWNERS' RISKS" herein for a discussion of special risk factors that should be considered in el·aluating the investment quality of the Bonds.
Th~ Bonds are heing issued pursuant to an lndentun: of Trusr. dated as of August I. 2001 (the "Indenture" ).hy and between the Beaumont Utility Authority (the .. Authority") and BNY Western Trust Company, as trustee (the ''Trustee"). A portion nf the pro~:eeds of the Bonds will oc used to make an initial lease payment under a Lease Agreement. dated as of Augu~t l, 200 l (the "Lease Agreement"). by and between the / Authority and the City of Beaumont (the "City''). pursuant to which the Authority will lease from the City the City's wa5tewater sys1em. The City will use such lease payment to refund and defease certain obligations of the Beaumont financing Aulhority. Sec "INTRODt:CTORY STATE:\JEI'T- The Refunding Program" herein.
Interest on the Bonds is payable on September 1. 2001. and the first business day of ead1 momh thcrcalicr. sn long as the Bonds bear interest at a Variable Rate, and, after conversion to a fixed imcrest rate, at a fixeu interest rate (the "Fixed Rat~:") as dt:termined in accordance with the Indenture (see "TilE BO~DS - General Provisions" ht:rein). So long as the Bonds hear interest at the Variable Rate. Owners of the Bonds will have the right to have their Bonds purchased in the manner described herein (sec "THE BOXDS - Option to lender prior to Fixed Rate Conversion Date" herein).
Paym~:nts of principal of and interest (hut not any premium) on the Bonds will he initially supported hy an im:vm.:able direl:t-pay leuer of credit (the "Leiter of Credit") issued to the Trustee. the drawings under which will be u~d tu pay the principal of and interest on the Bonds when due. The Letter of Credit will also be urawn un. if other funds are not available. to purchase Ronds tendered by Owners at 1hc Purchast: Price. The Lcuer of Credit will he issued by
L'nion Bank of California, ~.A. (th~: "Credit Emity") and, if the Credit Entity wrongfully dishonors a properly presented and conforming draw on the Lwer of Credi1 or if the Credit Entity re~udiat;s .. the Letter o_f, Cr~dit. funus will be made available under an irrevocable confirmin<! kuer of credit (tht: -contnfi'H:l~f' I .E:He~ o! Ctc-u;! ) tn f,.- •·~~nn• f~~ t~w
California State Teachers' Retirement System (the -continuing Credit Entity"). The Letter of Credit will expire on August 22. 2006 and the Continuing Letter nf Credit will e.,pire on Au!!ust 22. 2004 unless extended or unless a substitute letter of credit or substilute confirming Jeucr of credit or •>ther replacement ~ccunttes mccting the requirements of the Indenture is provided.
The infcr~-'lt!nn !:onr:1i~~-!t ~v~~hin this Offk;i.;J St:Hcm\:nt ·.,z.;as fit"t"t·;,-tfr!:J 111·:~kr iirt:: tfitct i~oq
of the Authority by lhe following firm serving as Financing Consultant lo the Authority.
A w Rod Gunn Associates, Inc.
The Bonds arc special obligations of the Authority payable from Net Wastewater Revenut:s pledged under the Indcmure (see "St::\1:\IAR~· OF TilE LEGAL DOCUME:-.i'IS- THE I~DE~TURE" herein) (~ee "SOURCES OF PAYME~T FOR THE BO~DS". "BOI'iD 0\V~ERS' RISKS' and "APPENDIX A- DEFINITIONS OF CERTAir\ TERMS t:SED IN THE INDEI'iTURE" hen:in). It is anticipated that tht: Bonds. in book-entry torm. will be available for delivery through the facilities uf DTC in New York, New York on or about August 23. 2001 (sec "THE BONDSGeneral Provisions- Book-Entry Only System" herein).
O'CONNOR & COMPANY SECURITIES · - P l. 1 P 1 J c r 1 r,' ~, t'' t - 1
BEAE\IONT CTILITY AUTHORITY BEACMONT, CALIFORNIA
ACTHORITY BOARD AND CITY COU!'ICIL ~-..,.. .,
·~ - Ruger Berg. Chailpenon and Ma_vor · Brian DeForge. Vice Chai1person and Mayor Pm Tem
~~_arrY Dn:ssd. Board Member and Council Member kftcry Fox. Board Member and Council Member
Placidn \;1ldivia. Boord Afemher ami Council Jfr/1/lwr
Al'THORITY AND CITY STAFF Alan C. Kapani~as. Ciry Atanager. Finance Direcror and Ciry Clerk
David\\'. Dillon. Director of Economic De\·elopmem ~
PROFESSIO~AL SF.RVICES Bond Counsel
1\kFarlin & Anderson Lakl: Forest. California
Authority Counsel and_ Cit)· Attorney ----Ak.luti & Wysocki __.--
Disclosure Counsel Fulbright & Ja\vorski L L P.
l.n-. Angeles. California
Financing Consultant ____... RoJ Gunn Associates. Inc.
Project Engineer Urban Lugic Consultant~
Tc.:mecuht. California
Trustee & Escr·ow Bank BNY Western Trust Company
l ,, ... ;\r•:-·-,·k•: t:1lif.~rnia
Cnderwriter O'Connor & Clm1pany Securities
Newport Beach. California
Variable Rate Rcmarketing Agent Lehman Brothers ~
"~!,,_v '/t )(~' r~c-..~· "\'brk
FOR ADDITIONAL IXFORMATlO~
Alan C. Kapanicas. City nf Beaumont. California (909) 769-R520 Rod Gunn Associates, Inc. (562) 598-7677
O'Connor & Company Securities {949) 717-2000
~-f)/) l
which an Alternate Credit Facility is issued are referred to herein as a "Reimbursement Agreement." The Credit Enticy an.d any i'5.~lt>r 0f ;m Alternate Credit Facility are sometimes referred to as the "Credit Entity."
Conftrming Letter of Credit. The Bonds are further supported by an irrevocable, transferable confirming letter of credit (the "Confinning Letter of Credit") issued by the California State Teachers' Retirement System, a component unit of the State of California (the "Confirming Credit Entity"). Under the Confirming Lener of Credit, the Trustee will be permitted to draw an amount not exceeding the stated amount indicated in the Confirming Letter of Credit to pay all of the outstandjng principal amount of and interest on the l:sonds when due or, it other tunds are nut avaiia'uic::, lv vwdlit~t; Buuu~ i.~uu~11;...; IJj O.vn\;.1::. at the Purchase Price in the event the Credit Entity wrongfully dishonors a properly presented and conforming draw on the Letter of Credit or if the Credit Entity repudiates the Lener of Credit.
The Authority has the right to replace the Confinning Letter of Credit with an Alternate Confmning Lener of Credit upon the terms and conditions set forth in the Indenture and the Confirmation Agreement.
Purpose
The City and the Authority have entered into a Lease Agreement, dated as of August 1, 2001 (the "Lease Agreement"), whereby the City has leased its wastewater system (the "Wastewater Enterprise")
~-., to the Authority.
The Bonds are being issued to make an initial lease payment under the Lease Agreement, which lease payment will be used by the City to refund the Financing Authority's previously issued Prior Wastewater Bonds (see "The Refunding Program" below), to finance certain improvements to the Wastewater Enterprise lUlU l.IJ }Jiiy UlC tApt;U~t;;, ur l,i,~ Jw~.v.~LJ i.. \.0u..u\.. .. ~~ ... ~- 'n :;:. G.~ ~.;.t· • .;.·) c: t!:~.:. C.:.:~:.::. (::.:·: "THE BONDS- Estimated Sources and Uses of Funds" and "THE PROJECT" herein).
The Refunding Program
The Financing Authority has previously issued its Local Agency Revenue Refunding Bonds 1996 Series ~ A (Sewer Enterprise Project) (the "Prior Wastewater Bonds") in the aggregate principal amount of
"-. $7,510,000, all of which remain outstanding.
On the Delivery Date, a portion of the Authority's initial lease payment to the City, together with certain other funds, will be deposited in trust with BNY Western Trust Company, Los Angeles, California as escrow holder (the "Escrow Bank") pursuant to an Escrow Deposit and Trust Agreement, dated as of August 1, 2001, between the Authority and the Escrow Bank (the "Wastewater Escrow Agreement"). The deposit will be in an amount sufficient to pay principal and interest on the Prior Wastewater Bonds through and including September 1 , 200 l and to pay the redemption price with n·".,,, .. , '" th"' wm:tinint" J'rinr V.~~srcwatcr Bon-ds on Se-ptr-.mb:-r l, 2001. The lien of the Prior W~tewater Bonds created by the Prior Wastewater Indenture, including, without limitation, the pledge of Gross Wastewater Revenues pursuant to the Prior Wastewater Indenture, will be discharged, terminated and of no further force and effect upon the deposit with the Escrow Bank of the amounts required pursuant to the Wastewater Escrow Agreement.
The Bonds
Redemption. The Bonds are subject to optional and mandatory redemption prior to maturity (see "THE BONDS- Redemption" herein). The Bonds are also subject to optional and mandatory tender in certain circumstances (see "THE BONDS- Tender and Purchase of Bonds" herein).
Registration, Transfer and Exchange. The Bonds will be issued in fully registered form without coupons. When delivered, the Bonds will be registered in the name of The Depository Trust Company,
3
Wut"Sfe v(Jct /ef
Estimated Sources and Uses of Funds
Proceeds from the sale of the Bonds, along with moneys released from the Prior Wastewater Bonds Indenture, will be applied as follows:
Sources of Funds
Principal Amount of Bonds I -e~s Underwriter's Discount Net Bond Proceeds Prior Funds
Available Funds
Uses of Funds
Wastewater Escrow Fund O>
Wastewater Improvement Fund Costs of Issuance Fund (2)
Rate Stabilization Fund (3>
Total Uses
$ 9,790,000.00 u (19~.00.00
$ 7,594,200.00 686,925.00
$10.281,125.00
$ 7,987,365.00 1,518,760.00
475,000.00 300,000.00
$10.281.125.00
(1) See "INTRODUCI'ORY STATEMENT- The Refunding Program'' herein.
(2) Expenses include fees of the Credit Entity, the Confirming Credit Entity, the Remarketing Agent, Bond Counsel, Disclosure Counsel, the Financing Consultant, Authority Counsel, the Project Engineer, the Rating A':.:r. ... :y, the Cscrow Earrk ;,.;d. the Tru~t~e, co~s of ¥tl~_tin8 the ()f~ci~l Sliter'!\ern, hir!!~nistrati'!e E::-::~es of the Authority, and other costs of issuance of the Bonds.
(3) An amount equal to the Rate Stabilization Requirement (see "APPEl''DIX A - DEFINITIONS OF CEKI'AIN Tf,-...,~~~'-" J,,.,.,.;,,)
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THEPROJECf
The Wastewater Enterprise improvements to be planned, designed and/or constructed with proceeds from the Bonds will include reclaimed water facilities, electrical generation and conservation facilities and improvements to the sanitary and storm sewer systems.
The reclaimed water facilities include a 2.0 million gallon reclaimed water storage reservoir, pumping facilities. transmission pipelines and discharge structures. The City has received approval of a planning grant from the State of Ca1ifornia Water Resources Control Board, Department of Water Recycling (Grant Contract No. 8-139-550-0) to study the project and prepare a Facilities Plan which may qualify the City to receive a low interest loan to construct reclaimed water facilities. The City has also entered into a Memorandum of Understanding with the State of California Department of Water Resources which may lead to the City w0rkinp- v;irh the St~:t?. ;:;t<d c,\l,f-.1 l'" ,,! f<::•·"·.;,..__ I"' c<mjm,,·liw· !'~" ;mel (1-~h-.r
water conservation projects using matching grant funds. The City has adopted Ordinance No. 773 which among other things requires mandatory use of reclaimed water for irrigation in accordance with State Law, and Negative Declaration No. 00-ND-04 which was adopted for the City reclaimed water facility project.
The City is investigating the possibility of constructing a "pumped storage" electrical generation facility ar the Be:mmnm W~.;;trw,~tPr TrP<nmem PhnL The 6ci!ity would gen~rMe ({pproxi"'Tl3te-1y 0.5 1'.1\V by pumping water to an upstream reservoir during "off-peak" hours and letting the water flow through downstream turbines to generate electricity during "on-peak" hours. The facility wou]d be designed to supply electricity to operate the air blowers. ultraviolet disinfection unit and other treatment process units which require electricity for operation. The City is also investigating the availability of State grants to help fund the pumped storage electrical generation project. Additional facilities which may be funded by bond proceeds may include the replacement and/or improvement of sanitary and sronn sewer systems which consist of pipelines. street~ and structures.
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TilE WASTEWATER ENTERPRISE General
The service area of the Wastewater Enterprise encompasses the entire city limits, plus approximately 730 single family residences within the Highland Springs Country Club located in the unincorporated area of Riverside County.
The sewer collection system serves approximately 4,928 total equivalent dwelling units ("EDUs") including 4,267 residential EDUs, and 661 commercial-industrial EDUs.
Wastewater Enterprise Description
The sewer collection system consists primarily of gravity collection sewers which tie into gravity trunk sewers. One portion of the service area generally located south of Sixth Street near Highland Springs Avenue is served by two (2) sewer lift stations and force mains. Two (2) new sewer lift stations and
~ force mains are currently under construction to serve new developing areas of the City.
The Beaumont Wastewater Reclamation Facility ("BWRA ") was constructed in 1994. BWRA was . des:ipi1cd tn trc:>t 1.5 miHiarr r,:::Ham; per <by ("Mgd"} of was!ewa!er to a "trrt!~ry" kvr.l ttnn i~ currently ~ being expanded to treat 2. 0 Mgd of effluent per day. The expansion is expected to be compketed by ~September 2002. The tertiary treated wastewater generated by the facility complies with all Title 22 and
State Regional Water Quality Control Board discharge requirements. On May 19, 2000, the California Regional Water Quality Control Board issued a new permit for treatment up to 2.0 Mgd of effluent per day. The facility is currently treating 1.27 Mgd and 0.23 Mgd is available for future development. At such time as the capacity is reached, planned improvements will increase the capacity to 2.0 Mgd. It is curren!!y e!C!irn~!ed by t.he City th;a thl'<;f impmv~mP.nt~ will he required by July 2003 at a cost of approximately $800,000.
All treated effluent is suitable for reclamation, including use on golf courses for irrigation and groundwater recharge. The activated sludge process treannent facility includes headworks, effluent station, equalization and aeration basins, secondary clarifiers, automatic backwash filters, and ultraviolet wastewater disinfection system, and a solids dewatering, drying and management. Approximately 7 ,C.OO Hr.-car f~et cl red~i:m~d ','l:~t~r pir;eE!!~ h~ been t.:0!'5tnl~t~'~ to convey reclaimed \vater to irrigation and groundwater recharge facilities.
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