(d) The City will not take or, to the extent within its power, permit any action to be taken which results in the interest that is paid for the installment purchase of the 2025 Project and the 2018 Project under the terms of this Installment Purchase Agreement being included in the gross income of the Authority or its assigns for purposes of federal or State of California personal income taxation. (e) The City has determined that it is necessary and proper for City uses and purposes within the terms of the laws of the State of California that the City finance and acquire the 2025 Project and refinance and acquire the 2018 Project in the manner that is provided for in this Installment Purchase Agreement in order to provide essential services and facilities to persons residing in the City.
Section 2.02. Representations and Warranties by the Authority. The Authority makes the following representations and warranties:
(a) The Authority is a joint exercise of powers agency that is duly organized under the JPA Agreement and in good standing under the laws of the State of California, has full legal right, power and authority to enter into this Installment Purchase Agreement and to carry out and consummate all transactions that are contemplated by this Installment Purchase Agreement and by proper action has duly authorized the execution and delivery and due performance of this Installment Purchase Agreement.
(b) The execution and delivery of this Installment Purchase Agreement and the consummation of the transactions herein contemplated will not violate any provision of law, any order of any court or other agency of government, or any indenture, material agreement or other instrument to which the Authority is now a party or by which it or any of its properties or assets is bound, or be in conflict with, result in a breach of or constitute a default (with due notice or the passage of time or both) under any such indenture, agreement or other instrument, or result in the creation or imposition of any prohibited lien, charge or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority.
(c) The Authority will not take or permit any action to be taken which results in interest that is paid for the installment purchase of the 2025 Project and the 2018 Project under the terms of this Installment Purchase Agreement being included in the gross income of the Authority or its assigns for purposes of federal or State of California personal income taxation.
ARTICLE III
ACQUISITION AND CONSTRUCTION OF PROJECTS
Section 3.01. Acquisition and Construction of the 2025 Project. The Authority hereby agrees to cause the 2025 Project and any additions or modifications thereto to be acquired by the City as its agent. The City shall provide for, as agent for the Authority, acquisition and construction of the 2025 Project in accordance with all applicable laws. The City hereby agrees that it will cause the acquisition and construction of the 2025 Project to be diligently performed after the deposit of funds with the Trustee pursuant to Section 3.02 of the Indenture, and that it will use its best efforts to cause the acquisition and construction of the 2025 Project to be completed. It is hereby expressly understood and agreed that the Authority shall be under no liability of any kind or character whatsoever for the payment of any cost of the 2025 Project and that all such costs and expenses shall be paid by the City.
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Section 3.02. Changes to the 2025 Project. The City may substitute other improvements for those listed as components of the 2025 Project in Exhibit A, but only if the City first files with the Authority and the Trustee a statement of the City in the form attached as Exhibit C: (a) identifying the improvements to be substituted and the improvements to City facilities they replace in the 2025 Project; and (b) stating that the estimated costs of construction, acquisition and installation of the substituted improvements are not less than such costs for the improvements previously planned.
Section 3.03. Sale and Purchase of the 2018 Project. The parties hereby confirm that the City currently has title to the 2018 Project. In consideration for the Authority's assistance in refinancing the 2018 Project, the City agrees to sell, and hereby sells, to the Authority, and the Authority agrees to purchase and hereby purchases, from the City, the 2018 Project at the purchase price specified in Section 4.1 hereof and otherwise in the manner and in accordance with the provisions of this Installment Purchase Agreement.
Section 3.04. Purchase and Sale of the 2025 Project and the 2018 Project. In consideration for the Series 2018 Installment Payments, the Authority agrees to sell, and hereby sells, to the City, and the City agrees to purchase, and hereby purchases, from the Authority, the 2025 Project and the 2018 Project at the purchase price that is specified in Section 4.01 hereof and otherwise in the manner and in accordance with the provisions of the Installment Purchase Agreement.
Section 3.05. Title. All right, title and interest in each component of the 2025 Project shall vest in the City immediately upon acquisition or construction thereof. All right, title and interest in each component of the 2018 Project shall vest in the City immediately upon execution and delivery of the Installment Purchase Agreement. Such vesting shall occur without further action by the Authority or the City, and the Authority shall, if requested by the City or if necessary to assure such automatic vesting, deliver any and all documents which are required to assure such vesting.
Section 3.06. Acquisition Fund. There has been established with the Trustee pursuant to the Indenture the Acquisition Fund. The moneys in the Acquisition Fund shall be held by the Trustee in trust and applied to the payment of the costs of acquisition and construction of the 2025 Project and of expenses incidental thereto. Before any payment is made from the Acquisition Fund by the Trustee, the City Manager of the City, acting as agent of the Authority, shall cause to be filed with the Trustee a certificate of the City in the form set forth in Exhibit D.
ARTICLE W
INSTALLMENT PAYMENTS
Section 4.01. Purchase Price.
(a) The Purchase Price to be paid by the City hereunder to the Authority is the sum of the principal amount of the City's obligations hereunder plus the interest to accrue on the unpaid balance of such principal amount from the effective date hereof over the term hereof, subject to prepayment as provided in Article VII.
(b) The principal amount of the payments to be made by the City hereunder is set forth in Exhibit B.
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(c) The interest to accrue on the unpaid balance of such principal amount is as specified in Section 4.02 and Exhibit B, and shall be paid by the City as and constitute interest paid on the principal amount of the City's obligations hereunder.
Section 4.02. Series 2025 Installment Payments. The City shall, subject to its rights of prepayment provided in Article VII, pay the Authority the Purchase Price in installment payments of interest and principal in the amounts and on the Series 2025 Installment Payment Dates as set forth in Exhibit B.
Each Series 2025 Installment Payment shall be paid to the Authority in lawful money of the United States of America. In the event that the City fails to make any of the payments which are required to be made by it under this section, such payment shall continue as an obligation of the City until such amount shall have been fully paid, and the City agrees to pay the same with interest accruing thereon at the rate or rates of interest then applicable to the remaining unpaid principal balance of the Series 2025 Installment Payments if paid in accordance with their terms.
The obligation of the City to make the Series 2025 Installment Payments is absolute and unconditional, and until such time as the Purchase Price shall have been paid in full (or provision for the payment thereof shall have been made pursuant to Article IX), the City will not discontinue or suspend any Series 2025 Installment Payment which is required to be made by it under this section when due, whether or not the Wastewater System or any part thereof is operating or operable or its use is suspended, interfered with, reduced or curtailed or terminated in whole or in part, and whether or not the 2025 Project has been completed, and such payments shall not be subject to reduction whether by offset or otherwise and shall not be conditional upon the performance or nonperformance by any party of any agreement for any cause whatsoever.
ARTICLE V
SECURITY
Section 5.01. Pledge of Revenues. The Revenues, other amounts that are on deposit in the Revenue Fund, amounts that are transferred from the Rate Stabilization Fund, if established, to the Revenue Fund as described in Section 5.05, and any other amounts (including proceeds of the sale of the 2025A Bonds) which are held in any fund or account that is established pursuant to the Installment Purchase Agreement (except the Rate Stabilization Fund, if established (other than those amounts which are transferred by the City from the Rate Stabilization Fund, if established, to the Revenue Fund)), are irrevocably pledged to the payment of the Series 2025 Installment Payments.
Except for the payment of the Operation and Maintenance Costs, the Revenues shall not be used for any other purpose while any of the Series 2025 Installment Payments remain unpaid; provided that out of the Revenues there may be apportioned such sums for such purposes as are expressly permitted herein. This pledge shall constitute a first lien on Revenues, the Revenue Fund and the other funds and accounts that are created hereunder for the payment of the Series 2025 Installment Payments and all other Contracts and Bonds in accordance with the terms hereof and of the Indenture.
Section 5.02. Allocation of Revenues. In order to carry out and effectuate the pledge and lien contained herein, the City agrees and covenants that all Revenues shall be received by the City in trust hereunder and shall be deposited when and as received in a special fund designated as the "Revenue Fund," which fund is hereby established and which fund the City agrees and covenants to 11 4912-5311-2099v4/022599-0036
maintain and to hold separate and apart from other funds so long as any Installment Payments or Bonds remain unpaid. Moneys in the Revenue Fund shall be used and applied by the City as provided in this Installment Purchase Agreement.
The City shall, from the moneys in the Revenue Fund, pay all Operation and Maintenance Costs (including amounts which are reasonably required to be set aside in contingency reserves for Operation and Maintenance Costs, the payment of which is not then immediately required) as they become due and payable. All remaining moneys in the Revenue Fund shall be set aside by the City at the following times in the following respective special funds in the following order of priority, and all moneys in each of such funds shall be held in trust and shall be applied, used and withdrawn only for the purposes hereinafter authorized in this section:
(a) 2025A Bond Payment Fund. On or before each Series 2025 Installment Payment Date, the City shall, from remaining moneys in the Revenue Fund, transfer to the Trustee for deposit in the 2025A Bond Payment Fund an amount that is equal to the interest and principal payable and coming due on the next succeeding Series 2025 Installment Payment Date. The City shall also, from the moneys in the Revenue Fund, transfer to the applicable trustee for deposit in the applicable payment fund, without preference or priority, and in the event of any insufficiency of such moneys ratably without any discrimination or preference, any other Debt Service in accordance with the provisions of the Contract, Bond, resolution or indenture relating thereto.
Any moneys which are on deposit in the 2025A Bond Payment Fund on each Series 2025 Installment Payment Date (other than amounts required for the payment of past due principal or interest with respect to any 2025A Bonds not presented for payment) shall be credited to the payment of the Series 2025 Installment Payments due and payable on such date. No deposit need be made in the 2025A Bond Payment Fund as Series 2025 Installment Payments if the amount in the 2025A Bond Payment Fund is at least equal to the amount of the Series 2025 Installment Payment that is due and payable on the next succeeding Series 2025 Installment Payment Date. (b) Reserve Funds. On or before each Series 2025 Installment Payment Date, the City shall, from remaining moneys in the Revenue Fund, thereafter, without preference or priority, and in the event of any insufficiency of such moneys ratably without any discrimination or preference, transfer to the applicable trustee for deposit to such other reserve fund or account for Bonds or Contracts an amount that is equal to the amount required to be deposited therein. (c) Surplus. Moneys on deposit in the Revenue Fund which are not necessary to make any of the payments which are required above may be expended by the City at any time for any purpose permitted by law or deposited in the Rate Stabilization Fund, if established.
Section 5.03. Additional Contracts and Bonds. The City may at any time execute any Contract or issue any Bonds, as the case may be, in accordance herewith; provided that:
(a) The Net Revenues for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the City Council of the City of the resolution authorizing the issuance of such Bonds or the date of the execution of such Contract, as the case may be, as evidenced by a special report prepared by an Independent Certified Public Accountant or Independent Financial Consultant on file with the City, shall have produced a sum equal to at least one hundred twenty percent (120%) of the Debt Service for such twelve month period. When calculated for purposes of this subsection, Net Revenues do not include amounts 12 4912-5311-2099v4/022599-0036
transferred from the Rate Stabilization Fund, if established, to the Revenue Fund pursuant to Section 5.05 that are in excess of twenty percent (20%) of Debt Service for such Fiscal Year; and (b) The Net Revenues for any consecutive twelve calendar month period during the eighteen calendar month period preceding the date of adoption by the City Council of the City of the resolution authorizing the issuance of such Bonds or the date of the execution of such Contract, as the case may be, including adjustments to give effect as of the first day of such twelve month period to increases or decreases in rates and charges for the Wastewater Service approved and in effect as of the date of calculation, as evidenced by a special report prepared by an Independent Certified Public Accountant or Independent Financial Consultant on file with the City, shall have produced a sum equal to at least one hundred twenty percent (120%) of the Debt Service for such twelve month period, plus the Debt Service which would have accrued on any Contracts executed or Bonds issued since the end of such twelve month period, assuming that such Contracts had been executed or Bonds had been issued at the beginning of such twelve month period, plus the Debt Service which would have accrued had such proposed additional Contract been executed or proposed additional Bonds been issued at the beginning of such twelve month period. When calculated for purposes of this subsection, Net Revenues do not include amounts transferred from the Rate Stabilization Fund, if established, to the Revenue Fund pursuant to Section 5.05 that are in excess of twenty percent (20%) of Debt Service for such Fiscal Year.
Notwithstanding the foregoing, Bonds issued or Contracts executed to refund Bonds or prepay Contracts may be delivered without satisfying the conditions set forth above if Debt Service in each Fiscal Year after the Fiscal Year in which such Bonds are issued or Contracts executed is not greater than Debt Service would have been in each such Fiscal Year prior to the issuance of such Bonds or execution of such Contracts.
Section 5.04. Investments. All moneys which are held by the City in the Revenue Fund shall be invested in Permitted Investments, and the investment earnings thereon shall remain on deposit in such fund, except as otherwise provided herein.
Section 5.05. Rate Stabilization Fund. The City is authorized but not required to establish a special fund designated as the "Rate Stabilization Fund." If the City elects to establish a Rate Stabilization Fund, such fund will be held by the City in trust under the Installment Purchase Agreement. The City agrees and covenants to maintain and to hold such fund, if established, separate and apart from other funds so long as any Contracts or Bonds remain unpaid. Money transferred by the City from the Revenue Fund to the Rate Stabilization Fund, if established, in accordance with Section 5.02(c) will be held in the Rate Stabilization Fund and applied in accordance with the Installment Purchase Agreement.
The City may withdraw all or any portion of the amounts on deposit in the Rate Stabilization Fund, if established, and transfer such amounts to the Revenue Fund for application in accordance with Section 5.02 or, in the event that all or a portion of the Series 2025 Installment Payments are discharged in accordance with Article VII, transfer all or any portion of such amounts for application in accordance with Article VII. Any such amounts transferred from the Rate Stabilization Fund, if established, to the Revenue Fund in accordance with the Indenture constitute pledged Revenues. 13 4912-5311-2099v4/022599-0036
ARTICLE VI
COVENANTS OF THE CITY
Section 6.01. Compliance with Installment Purchase Agreement and Ancillary Agreements.
The City will punctually pay the Series 2025 Installment Payments in strict conformity with the terms hereof, and will faithfully observe and perform all of the agreements, conditions, covenants and terms contained herein which are required to be observed and performed by it, and will not terminate the Installment Purchase Agreement for any cause including, without limiting the generality of the foregoing, any acts or circumstances that may constitute failure of consideration, destruction of or damage to the 2025 Project or the 2018 Project, commercial frustration of purpose, any change in the tax or other laws of the United States of America or of the State of California or any political subdivision of either or any failure of the Authority to observe or perform any agreement, condition, covenant or term which is contained herein and required to be observed and performed by it, whether express or implied, or any duty, liability or obligation arising out of or connected herewith or the insolvency, or deemed insolvency, or bankruptcy or liquidation of the Authority or any force majeure, including acts of God, tempest, storm, earthquake, war, rebellion, riot, civil disorder, acts of public enemies, blockade or embargo, strikes, industrial disputes, lock outs, lack of transportation facilities, fire, explosion or acts or regulations of governmental authorities.
The City will faithfully observe and perform all of the agreements, conditions, covenants and terms which are required to be observed and performed by it pursuant to all outstanding Contracts and Bonds as such may from time to time be executed or issued, as the case may be.
Section 6.02. Against Encumbrances. The City will not make any pledge of or place any lien on Revenues or the moneys in the Revenue Fund except as provided herein. In addition, the City may at any time, or from time to time, issue evidences of indebtedness or incur other obligations for any lawful purpose which are payable from and secured by a pledge of and lien on Revenues or any moneys in the Revenue Fund as may from time to time be deposited therein (as provided in Section 5.02), provided that such pledge and lien shall be subordinate in all respects to the pledge of and lien thereon provided herein.
Section 6.03. Against Sale or Other Disposition of Property. The City will not enter into any agreement or lease which impairs the operation of the Wastewater System or any part thereof which is necessary to secure adequate Revenues for the payment of the Series 2025 Installment Payments, or which would otherwise impair the rights of the Authority hereunder or the operation of the Wastewater System. Any real or personal property which has become nonoperative or which is not needed for the efficient and proper operation of the Wastewater System, or any material or equipment which has become worn out, may be sold if such sale will not impair the ability of the City to pay the Series 2025 Installment Payments and if the proceeds of such sale are deposited in the Revenue Fund.
Nothing herein shall restrict the ability of the City to sell any portion of the Wastewater System if such portion is immediately repurchased by the City and if such arrangement cannot by its terms result in the purchaser of such portion of the Wastewater System exercising any remedy which would deprive the City of or otherwise interfere with its right to own and operate such portion of the Wastewater System.
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Section 6.04. Against Competitive Facilities. The City will not, to the extent permitted by law, acquire, construct, maintain or operate and will not, to the extent permitted by law and within the scope of its powers, permit any other public or private agency, corporation, City or political subdivision or any person whomsoever to acquire, construct, maintain or operate within the City any wastewater system competitive with the Wastewater System.
Section 6.05. Tax Covenants. Notwithstanding any other provision of the Installment Purchase Agreement, absent an opinion of Bond Counsel that the exclusion from gross income of the interest on the 2025A Bonds will not be adversely affected for federal income tax purposes, the City covenants to comply with all applicable requirements of the Code which are necessary to preserve such exclusion from gross income with respect to the 2025A Bonds and specifically covenants, without limiting the generality of the foregoing, as follows:
(a) Private Activity. The City will take no action or refrain from taking any action, and the City will make no use of the proceeds of the 2025A Bonds or of any other moneys or property, which would cause the 2025A Bonds to be "private activity bonds" within the meaning of Section 141 of the Code;
(b) Arbitrage. The City will make no use of the proceeds of the 2025A Bonds or of any other amounts or property, regardless of the source, and the City will not take any action or refrain from taking any action, which will cause the 2025A Bonds to be "arbitrage bonds" within the meaning of Section 148 of the Code;
(c) Federal Guarantee. The City will make no use of the proceeds of the 2025A Bonds, and the City will not take or omit to take any action, that would cause the 2025A Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Code; (d) Information Reporting. The City will take or cause to be taken all necessary action to comply with the informational reporting requirement of Section 149(e) of the Code which is necessary to preserve the exclusion of interest on the 2025A Bonds pursuant to Section 103(a) of the Code;
(e) Hedge Bonds. The City will make no use of the proceeds of the 2025A Bonds or any other amounts or property, regardless of the source, and the City will not take any action or refrain from taking any action, that would cause the 2025A Bonds to be considered "hedge bonds" within the meaning of Section 149(g) of the Code unless the City takes all necessary action to assure compliance with the requirements of Section 149(g) of the Code to maintain the exclusion from gross income of interest on the 2025A Bonds for federal income tax purposes; and (f) Miscellaneous. The City will not take any action or refrain from taking any action which is inconsistent with its expectations stated in the Tax Certificate executed by the City in connection with the issuance of the 2025A Bonds and will comply with the covenants and requirements that are stated therein and incorporated by reference herein.
This section and the covenants that are set forth herein shall not be applicable to, and nothing that is contained herein shall be deemed to prevent the City from causing the Authority to issue revenue bonds or issuing bonds or executing and delivering contracts that are payable on a parity with the 2025A Bonds, the interest with respect to which has been determined to be subject to federal income taxation.
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Section 6.06. Prompt Acquisition and Construction. The City will take all necessary and appropriate steps to acquire the 2025 Project, as agent of the Authority, with all practicable dispatch and in an expeditious manner and in conformity with law so as to complete the same as soon as possible.
Section 6.07. Maintenance and Operation of the Wastewater System. The City will maintain and preserve the Wastewater System in good repair and working order at all times, operate the Wastewater System in an efficient and economical manner and pay all Operation and Maintenance Costs as they become due and payable.
Section 6.08. Payment of Claims. The City will pay and discharge any and all lawful claims for labor, materials or supplies which, if unpaid, might become a lien on the Revenues or the funds or accounts created hereunder or under the Indenture or on any funds in the hands of the City pledged to pay the Series 2025 Installment Payments or the Bonds, or which might impair the security of the Series 2025 Installment Payments.
Section 6.09. Compliance with Contracts. The City will comply with, keep, observe and perform all agreements, conditions, covenants and terms, express or implied, which are required to be performed by it contained in all contracts for the use of the Wastewater System and all other contracts affecting or involving the Wastewater System, to the extent that the City is a party thereto.
Section 6.10. Insurance.
(a) The City will procure and maintain or cause to be procured and maintained insurance on the Wastewater System, excluding coverage for earthquake damage or destruction, with responsible insurers in such amounts and against such risks (including accident to or destruction of the Wastewater System) as are usually covered in connection with facilities that are similar to the Wastewater System so long as such insurance is available at reasonable rates.
In the event of any damage to or destruction of the Wastewater System caused by the perils covered by such insurance, the Net Proceeds thereof shall be applied to the reconstruction, repair or replacement of the damaged or destroyed portion of the Wastewater System. The City shall begin such reconstruction, repair or replacement promptly after such damage or destruction shall occur, and shall continue and properly complete such reconstruction, repair or replacement as expeditiously as possible, and shall pay out of such Net Proceeds all costs and expenses in connection with such reconstruction, repair or replacement so that the same shall be completed and the Wastewater System shall be free and clear of all claims and liens.
(b) The City will procure and maintain such other insurance which it shall deem advisable or necessary to protect its interests and the interests of the Authority, which insurance shall afford protection in such amounts and against such risks as are usually covered in connection with municipal wastewater systems similar to the Wastewater System. (c) Any insurance that is required to be maintained by paragraph (a) above and, if the City determines to procure and maintain insurance pursuant to paragraph (b) above, such insurance, may be maintained under a self-insurance program so long as such self-insurance is maintained in the amounts and manner usually maintained in connection with wastewater systems similar to the Wastewater System and is, in the opinion of an accredited actuary, actuarially sound. 16 4912-5311-2099v4/022599-0036
All policies of insurance which are required to be maintained herein shall provide that the Authority or its assignee shall be given thirty (30) days' written notice of any intended cancellation thereof or reduction of coverage provided thereby.
Section 6.11. Accounting Records; Financial Statements and Other Reports. (a) The City will keep appropriate accounting records in which complete and correct entries shall be made of all transactions relating to the Wastewater System, which records shall be available for inspection by the Authority and the Trustee at reasonable hours and under reasonable conditions.
(b) The City will prepare and file with the Authority or its assignee, annually within two hundred seventy (270) days after the close of each Fiscal Year (commencing with the Fiscal Year ended June 30, 2025) financial statements of the City for the preceding Fiscal Year prepared in accordance with generally accepted accounting principles, together with an Accountant's Report thereon. The Trustee shall have no obligation to review any such financial statements.
Section 6.12. Protection of Security and Rights of the Authority. The City will preserve and protect the security hereof and the rights of the Authority to the Series 2025 Installment Payments hereunder and will warrant and defend such rights against all claims and demands of all persons.
Section 6.13. Payment of Taxes and Compliance with Governmental Regulations. The City will pay and discharge all taxes, assessments and other governmental charges which may hereafter be lawfully imposed upon the Wastewater System, or any part thereof or upon the Revenues when the same shall become due. The City will duly observe and conform with all valid regulations and requirements of any governmental authority relative to the operation of the Wastewater System, or any part thereof, but the City shall not be required to comply with any regulations or requirements so long as the validity or application thereof shall be contested in good faith.
Section 6.14. Amount of Rates and Charges.
(a) In any Fiscal Year in which the amount on deposit in the Rate Stabilization Fund, if established, on the first day of such Fiscal Year is less than the Series 2025 Installment Payments payable in such Fiscal Year, to the fullest extent permitted by law, the City will fix and prescribe, at the commencement of each such Fiscal Year, rates and charges for the Wastewater Service which are reasonably expected, at the commencement of such Fiscal Year, to be at least sufficient to yield during such Fiscal Year Net Revenues equal to one hundred twenty percent (120%) of Debt Service for such Fiscal Year. When calculated for purposes of this subsection, Net Revenues do not include amounts which are transferred from the Rate Stabilization Fund, if established, pursuant to Section 5.05 that are in excess of twenty percent (20%) of Debt Service for such Fiscal Year. (b) In any Fiscal Year in which the amount on deposit in the Rate Stabilization Fund on the first day of such Fiscal Year is at least equal to the Series 2025 Installment Payments payable in such Fiscal Year, to the fullest extent permitted by law, the City will fix and prescribe, at the commencement of each such Fiscal Year, rates and charges for the Wastewater Service which are reasonably expected, at the commencement of such Fiscal Year, to be at least sufficient to yield during such Fiscal Year Revenues equal to one hundred twenty percent (120%) of the sum of Operation and Maintenance Costs for such Fiscal Year. When calculated for purposes of this 17 4912-5311-2099v4/022599-0036
subsection, Revenues do not include any amounts which are transferred from the Rate Stabilization Fund, if established, pursuant to Section 5.05.
(c) The City may make, or permit to be made, adjustments from time to time in such rates, fees and charges and may make, or permit to be made, such classification thereof as it deems necessary, but may not reduce or permit to be reduced such rates, fees and charges below those then in effect, unless the Revenues from such reduced rates, fees and charges will at all times be sufficient to meet the foregoing requirements.
(d) So long as the City has complied with its obligations set forth in subsections (a) or (b) above, as applicable, the failure of Net Revenues to meet the thresholds set forth in subsections (a) or (b) above, as applicable, shall not constitute a default or an Event of Default hereunder or under the Indenture.
Section 6.15. Collection of Rates and Charges. The City will have in effect at all times by- laws, rules and regulations requiring each customer to pay the rates and charges applicable to the Wastewater Service to such customer's land and providing for the billing thereof and for a due date and a delinquency date for each bill. In each case where such bill remains unpaid in whole or in part after it becomes delinquent, the City may discontinue such service from the Wastewater System, and such service shall not thereafter be recommenced except in accordance with City by-laws or rules, regulations and the laws of the State of California governing such situations of delinquency.
Section 6.16. Eminent Domain Proceeds. If all or any part of the Wastewater System shall be taken by eminent domain proceedings:
(a) The City shall file with the Authority and the Trustee a certificate showing: (1) the estimated loss of annual Net Revenues, if any, suffered or to be suffered by the City by reason of such eminent domain proceedings; (2) a general description of the additions, betterments, extensions or improvements to the Wastewater System that are proposed to be acquired and constructed by the City from such Net Proceeds, and (3) an estimate of the additional annual Net Revenues to be derived from such additions, betterments, extensions or improvements; and (b) The City, on the basis of such certificate filed with the Authority and the Trustee, shall promptly proceed with the acquisition and construction of such additions, betterments, extensions or improvements substantially in accordance with such certificate and such Net Proceeds shall be applied for the payment of the costs of such acquisition and construction, and any balance of such Net Proceeds not required by the City for such purpose shall be deposited in the Revenue Fund.
Section 6.17. Further Assurances. The City will adopt, deliver, execute and make any and all further assurances, instruments and resolutions as may be reasonably necessary or proper to carry out the intention or to facilitate the performance hereof and for the better assuring and confirming unto the Authority of the rights and benefits provided to it herein.
Section 6.18. Enforcement of Contracts. So long as any of the 2025A Bonds are outstanding, the City will not voluntarily consent to or permit any rescission of, nor will it consent to any amendment to or otherwise take any action under or in connection with any contracts previously or hereafter entered into if such rescission or amendment would in any manner impair or adversely affect the ability of the City to pay principal of and interest on the 2025A Bonds. 18 4912-5311-2099v4/022599-0036
ARTICLE VII
PREPAYMENT OF SERIES 2025 INSTALLMENT PAYMENTS
Section 7.01. Prepayment.
(a) The City may not prepay the Series 2025 Installment Payments on September 1, 20_ or any date before. The City may prepay the Series 2025 Installment Payments as a whole, or in part, on September 1, 20_ or any date thereafter in the order of payment date as directed by the City, at a prepayment price equal to 100% of the principal amount of the Series 2025 Installment Payments to be prepaid, together with accrued interest thereon to the date of prepayment. (b) Notwithstanding any such prepayment, the City shall not be relieved of its obligations hereunder, including its obligations under Article IV, until the Purchase Price shall have been fully paid (or provision for payment thereof shall have been provided to the written satisfaction of the Authority).
Section 7.02. Method of Prepayment. Before making any prepayment pursuant to Section 7.01, the City shall, within five (5) days following the event permitting the exercise of such right to prepay or creating such obligation to prepay, give written notice to the Authority and the Trustee describing such event and specifying the date on which the prepayment will be paid, which date shall be not less than sixty (60) (or such shorter number of days as is acceptable to the Trustee) days from the date that such notice is given.
ARTICLE VIII
EVENTS OF DEFAULT AND REMEDIES OF THE AUTHORITY
Section 8.01. Events of Default and Acceleration of Maturities. If one or more of the following Events of Default shall happen:
(a) if default shall be made by the City in the due and punctual payment of any Series 2025 Installment Payment or any Contract or Bond when and as the same shall become due and payable;
(b) if default shall be made by the City in the performance of any of the agreements or covenants which are required herein to be performed by it, and such default shall have continued for a period of sixty (60) days after the City shall have been given notice in writing of such default by the Authority; or
(c) if the City shall file a petition or answer seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if a court of competent jurisdiction shall approve a petition filed with or without the consent of the City seeking arrangement or reorganization under the federal bankruptcy laws or any other applicable law of the United States of America or any state therein, or if under the provisions of any other law for the relief or aid of debtors any court of competent jurisdiction shall assume custody or control of the City or of the whole or any substantial part of its property; or 19 4912-5311-2099v4/022599-0036
(d) if payment of the principal of any Contract or Bond is accelerated in accordance with its terms;
then and in each and every such case during the continuance of an Event of Default, the Authority shall, by notice in writing to the City, declare the entire principal amount of the unpaid Series 2025 Installment Payments and the accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become immediately due and payable, anything contained herein to the contrary notwithstanding. This section, however, is subject to the condition that if at any time after the entire principal amount of the unpaid Series 2025 Installment Payments and the accrued interest thereon shall have been so declared due and payable, but before any judgment or decree for the payment of the moneys due shall have been obtained or entered, the City shall deposit with the Authority an amount that is sufficient to pay the unpaid principal amount of the Series 2025 Installment Payments or the unpaid payment of any other Contract or Bond referred to in clause (1) above due prior to such declaration and the accrued interest thereon, with interest on such overdue installments, at the rate or rates applicable to the remaining unpaid principal balance of the Series 2025 Installment Payments or such Contract or Bond if paid in accordance with their terms, and the reasonable expenses of the Authority, and any and all other defaults known to the Authority (other than in the payment of the entire principal amount of the unpaid Series 2025 Installment Payments and the accrued interest thereon due and payable solely by reason of such declaration) shall have been made good or cured to the satisfaction of the Authority or provision deemed by the Authority to be adequate shall have been made therefor, then and in every such case the Authority, by written notice to the City, may rescind and annul such declaration and its consequences; but no such rescission and annulment shall extend to or shall affect any subsequent default or shall impair or exhaust any right or power consequent thereon.
Section 8.02. Application of Funds Upon Acceleration. Upon the date of the declaration of acceleration as provided in Section 8.01, all Revenues thereafter received by the City shall be applied in the following order:
First, to the payment, without preference or priority, and in the event of any insufficiency of such Revenues ratably without any discrimination or preference, of the fees, costs and expenses of the Trustee and its assigns and thereafter to the Authority, as the case may be, in carrying out the provisions of this article, including reasonable compensation to their respective accountants and counsel;
Second, to the payment of the Operation and Maintenance Costs; and Third, to the payment of the entire principal amount of the unpaid Series 2025 Installment Payments and the unpaid principal amount of all Bonds and Contracts and the accrued interest thereon, with interest on the overdue installments at the rate or rates of interest applicable to the Series 2025 Installment Payments and such Bonds and Contracts if paid in accordance with their respective terms.
Section 8.03. Other Remedies of the Authority. The Authority shall have the right:
(a) by mandamus or other action or proceeding or suit at law or in equity to enforce its rights against the City or any director, officer or employee thereof, and to compel the City or any such director, officer or employee to perform and carry out its or his or her duties under the laws of 20 4912-5311-2099v4/022599-0036
the State of California and the agreements and covenants required to be performed by it or him or her contained herein;
(b) by suit in equity to enjoin any acts or things which are unlawful or violate the rights of the Authority; or
(c) by suit in equity upon the happening of an Event of Default to require the City and its directors, officers and employees to account as the trustee of an express trust.
Notwithstanding anything contained herein, the Authority shall have no security interest in or mortgage on the 2025 Project, the 2018 Project, the Wastewater System or other assets of the City and no default hereunder shall result in the loss of the 2025 Project, the 2018 Project, the Wastewater System or other assets of the City.
Section 8.04. Non -Waiver. Nothing in this article or in any other provision hereof shall affect or impair the obligation of the City, which is absolute and unconditional, to pay the Series 2025 Installment Payments to the Authority at the respective due dates or upon prepayment from the Net Revenues, the Revenue Fund and the other funds herein pledged for such payment, or shall affect or impair the right of the Authority, which is also absolute and unconditional, to institute suit to enforce such payment by virtue of the contract embodied herein.
A waiver of any default or breach of duty or contract by the Authority shall not affect any subsequent default or breach of duty or contract or impair any rights or remedies on any such subsequent default or breach of duty or contract. No delay or omission by the Authority to exercise any right or remedy accruing upon any default or breach of duty or contract shall impair any such right or remedy or be construed to be a waiver of any such default or breach of duty or contract or an acquiescence therein, and every right or remedy that is conferred upon the Authority by the laws of the State of California or by this article may be enforced and exercised from time to time and as often as shall be deemed expedient by the Authority.
If any action, proceeding or suit to enforce any right or exercise any remedy is abandoned or determined adversely to the Authority, the City and the Authority shall be restored to their former positions, rights and remedies as if such action, proceeding or suit had not been brought or taken.
Section 8.05. Remedies Not Exclusive. No remedy that is conferred upon or reserved to the Authority herein is intended to be exclusive of any other remedy, and each such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing in law or in equity or by statute or otherwise and may be exercised without exhausting and without regard to any other remedy conferred by the laws of the State of California or any other law.
ARTICLE IX
DISCHARGE OF OBLIGATIONS
Section 9.01. Discharge of Obligations. When:
(a) all or any portion of the Series 2025 Installment Payments shall have become due and payable in accordance herewith or a written notice of the City to prepay all or any portion of the Series 2025 Installment Payments shall have been filed with the Trustee; and 21 4912-5311-2099v4/022599-0036
(b) there shall have been deposited with the Trustee at or prior to the Series 2025 Installment Payment Date or dates specified for prepayment, in trust for the benefit of the Authority or its assigns and irrevocably appropriated and set aside to the payment of all or any portion of the Series 2025 Installment Payments, sufficient moneys or sufficient moneys and non -callable Permitted Investments that are described in clause (A) of the definition thereof, the principal of and interest on which Permitted Investments when due will provide money that is sufficient in the opinion of an Independent Certified Public Accountant to pay all principal, prepayment premium, if any, and interest of such Series 2025 Installment Payments to their respective Series 2025 Installment Payment Dates, as the case may be; and
(c) provision shall have been made for paying all fees and expenses of the Trustee, then and in that event, the right, title and interest of the Authority herein and the obligations of the City hereunder shall, with respect to all or such portion of the Series 2025 Installment Payments as have been so provided for, thereupon cease, terminate, become void and be completely discharged and satisfied (except for the right of the Trustee and the obligation of the City to have such moneys and such Permitted Investments applied to the payment of such Series 2025 Installment Payments).
In such event, upon request of the City, the Trustee shall cause an accounting for such period or periods as may be requested by the City to be prepared and filed with the City and shall execute and deliver to the City all such instruments as may be necessary or desirable to evidence such total or partial discharge and satisfaction, as the case may be, and, in the event of a total discharge and satisfaction, the Trustee shall pay over to the City, after payment of all amounts due the Trustee pursuant to the Indenture, as an overpayment of Series 2025 Installment Payments, all such moneys or such Permitted Investments held by it pursuant hereto, other than such moneys and such Permitted Investments as are required for the payment or prepayment of the Series 2025 Installment Payments, which moneys and Permitted Investments shall continue to be held by the Trustee in trust for the payment of the Series 2025 Installment Payments and shall be applied by the Trustee to the payment of the Series 2025 Installment Payments of the City.
ARTICLE X
MISCELLANEOUS
Section 10.01. Liability Limited. Notwithstanding anything contained herein, the City shall not be required to advance any moneys derived from any source of income other than the Revenues, the Revenue Fund and the other funds provided herein for the payment of amounts due hereunder or for the performance of any agreements or covenants that are required to be performed by it contained herein. The City may, however, advance moneys for any such purpose so long as such moneys are derived from a source legally available for such purpose and may be legally used by the City for such purpose.
The obligation of the City to make the Series 2025 Installment Payments is a special obligation of the City payable from the Net Revenues and does not constitute a debt of the City or of the State of California or of any political subdivision thereof in contravention of any constitutional or statutory debt limitation or restriction.
Section 10.02. Benefits of Installment Purchase Agreement Limited to Parties. Nothing contained herein, expressed or implied, is intended to give to any person other than the City, the Insurer or the Authority any right, remedy or claim under or pursuant hereto, and any agreement or 22 4912-5311-2099v4/022599-0036
covenant that is required herein to be performed by or on behalf of the City or the Authority shall be for the sole and exclusive benefit of the other party and the Insurer. The Insurer is a third party beneficiary of this Installment Purchase Agreement.
Section 10.03. Successor Is Deemed Included in all References to Predecessor. Whenever either the City or the Authority is named or referred to herein, such reference shall be deemed to include the successor to the powers, duties and functions that are presently vested in the City or the Authority, and all agreements and covenants which are required hereby to be performed by or on behalf of the City or the Authority shall bind and inure to the benefit of the respective successors thereof whether so expressed or not.
Section 10.04. Waiver of Personal Liability. No member, officer or employee of the City shall be individually or personally liable for the payment of the Series 2025 Installment Payments, but nothing contained herein shall relieve any member, officer or employee of the City from the performance of any official duty provided by any applicable provisions of law or hereby.
Section 10.05. Article and Section Headings, Gender and References. The headings or titles of the several articles and sections hereof and the table of contents appended hereto shall be solely for convenience of reference and shall not affect the meaning, construction or effect hereof, and words of any gender shall be deemed and construed to include all genders. All references herein to "Articles," "Sections" and other subdivisions or clauses are to the corresponding articles, sections, subdivisions or clauses hereof and the words "hereby," "herein," "hereof," "hereto," "herewith" and other words of similar import refer to the Installment Purchase Agreement as a whole and not to any particular article, section, subdivision or clause hereof.
Section 10.06. Partial Invalidity. If any one or more of the agreements or covenants or portions thereof required hereby to be performed by or on the part of the City or the Authority shall be contrary to law, then such agreement or agreements, such covenant or covenants or such portions thereof shall be null and void and shall be deemed separable from the remaining agreements and covenants or portions thereof and shall in no way affect the validity hereof. The City and the Authority hereby declare that they would have executed the Installment Purchase Agreement, and each and every other article, section, paragraph, subdivision, sentence, clause and phrase hereof irrespective of the fact that any one or more articles, sections, paragraphs, subdivisions, sentences, clauses or phrases hereof or the application thereof to any person or circumstance may be held to be unconstitutional, unenforceable or invalid.
Section 10.07. Assignment. The Installment Purchase Agreement and any rights hereunder may be assigned by the Authority, as a whole or in part, without the necessity of obtaining the prior consent of the City. In addition to the rights and remedies assigned by the Authority to the Trustee, to the extent that the Indenture and the Installment Purchase Agreement confer upon or give or grant to the Trustee any right, remedy or claim under or by reason of the Indenture or the Installment Purchase Agreement, the Trustee is hereby explicitly recognized as being a third party beneficiary hereunder and may enforce any such right, remedy or claim conferred given or granted.
Section 10.08. Net Contract. The Installment Purchase Agreement shall be deemed and construed to be a net contract, and the City shall pay absolutely net during the term hereof the Series 2025 Installment Payments and all other payments required hereunder, free of any deductions and without abatement, diminution or set-off whatsoever.
23 4912-5311-2099v4/022599-0036
Section 10.09. California Law. THE INSTALLMENT PURCHASE AGREEMENT
SHALL BE CONSTRUED AND GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA.
Section 10.10. Notices. All written notices to be given hereunder shall be given by mail to the party entitled thereto at its address set forth below, or at such other address as such party may provide to the other party in writing from time to time, namely:
If to the City:
If to the Authority:
If to the Trustee:
City of Beaumont
550 East 6th Street
Beaumont, California 92223
Attention: General Manager
Beaumont Public Improvement Authority
550 East 6th Street
Beaumont, California 92223
Attention: Executive Director
Zions Bancorporation, National Association
550 South Hope Street, Suite 2875
Los Angeles, California 90071
Attention:
Reference: City of Beaumont, Series 2025A
If to the Insurer: [INSURER]
Attention:
Re: Policy No.
Telephone:
Telecopy:
Section 10.11. Effective Date. This Installment Purchase Agreement shall become effective upon its execution and delivery, and shall terminate when the Purchase Price shall have been fully paid (or provision for the payment thereof shall have been made to the written satisfaction of the Authority).
Section 10.12. Execution in Counterparts. This Installment Purchase Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall constitute but one and the same instrument.
Section 10.13. Indemnification of Authority. The City hereby agrees to indemnify and hold harmless the Authority and its assigns and its officers and directors if and to the extent permitted by law, from and against all claims, advances, damages and losses, including legal fees and expenses, arising out of or in connection with the acceptance or the performance of its duties hereunder and under the Indenture; provided that no indemnification will be made for willful misconduct, negligence or breach of an obligation hereunder or under the Indenture by the Authority. 24 4912-5311-2099v4/022599-0036
Section 10.14. Amendments Permitted.
(a) This Installment Purchase Agreement and the rights and obligations of the Authority and the City and of the Owners of the 2025A Bonds and of the Trustee may be modified or amended at any time by an amendment hereto which shall become binding upon the written consents of the Owners of a majority in aggregate principal amount of the 2025A Bonds then Outstanding, exclusive of 2025A Bonds disqualified as provided in Section 11.09 of the Indenture, together with the prior written consent of the Insurer, so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder. No such modification or amendment may: (1) extend the fixed maturity of any 2025A Bonds, or reduce the amount of principal thereof or premium (if any) thereon, or extend the time of payment, or change the rate of interest or the method of computing the rate of interest thereon, or extend the time of payment of interest thereon, without the consent of the Owner of each 2025A Bond so affected; or (2) reduce the aforesaid percentage of 2025A Bonds the consent of the Owners of which is required to affect any such modification or amendment, or permit the creation of any lien on the Revenues and other assets pledged under the Installment Purchase Agreement prior to or on a parity with the lien created by the Installment Purchase Agreement except as permitted herein, or deprive the Owners of the 2025A Bonds of the lien created by the Indenture on such Revenues and other assets except as permitted herein, without the consent of the Owners of all of the 2025A Bonds then Outstanding. (b) This Installment Purchase Agreement and the rights and obligations of the Authority and the City and of the Owners of the 2025A Bonds may also be modified or amended at any time by an amendment hereto which shall become binding upon adoption, without the consent of the Owners of any 2025A Bonds, but with the prior written consent of the Insurer, so long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder, but only to the extent permitted by law and only for any one or more of the following purposes: (1) to add to the covenants and agreements of the City contained in the Installment Purchase Agreement other covenants and agreements thereafter to be observed, to pledge or assign additional security for the 2025A Bonds (or any portion thereof), or to surrender any right or power herein reserved to or conferred upon the City; (2) to make such provisions for the purpose of curing any ambiguity, inconsistency or omission, or of curing or correcting any defective provision, contained in the Installment Purchase Agreement, or in regard to matters or questions arising under the Installment Purchase Agreement, as the City may deem necessary or desirable; and (3) to modify, amend or supplement the Installment Purchase Agreement in such manner as to cause interest on the 2025A Bonds to remain excludable from gross income under the Code. No amendment without consent of the Owners may modify any of the rights or obligations of the Trustee without the written consent thereto.
Section 10.15. -Provisions related to the Policy.
(a) The City will pay or reimburse the Insurer, solely from Net Revenues, any and all charges, fees, costs and expenses that the Insurer may reasonably pay or incur in connection with: (i) the administration, enforcement, defense or preservation of any rights or security in the Indenture, the Installment Purchase Agreement or any other related document (each, a "Related Document"); (ii) the pursuit of any remedies under the Indenture or any other Related Document or otherwise afforded by law or equity; (iii) any amendment, waiver or other action with respect to, or related to, the Indenture or any other Related Document whether or not executed or completed; or (iv) any litigation or other dispute in connection with the Indenture or any other Related Document or the transactions contemplated thereby, other than costs resulting from the failure of the Insurer to honor its 25 4912-5311-2099v4/022599-0036
obligations under the Policy. The Insurer reserves the right to charge a reasonable fee as a condition to executing any amendment, waiver or consent proposed in respect of the Indenture or any other Related Document.
(b) The City will permit the Insurer to discuss the affairs, fmances and accounts of the City or any information that the Insurer may reasonably request regarding the security for the Bonds with appropriate officers of the City and will use commercially reasonable efforts to enable the Insurer to have access to the facilities, books and records of the City on any Business Day upon reasonable prior notice.
(c) So long as the Policy is in full force and effect and the Insurer has not defaulted on its obligations thereunder, the Insurer will be provided with the following information by the City:
(i) (1) Annual audited financial statements of the City for each Fiscal Year within 270 days after the end of each Fiscal Year, together with a certification of the City that it is not aware of any default or Event of Default under the Indenture or the Installment Purchase Agreement; (2) the City's annual budget within 30 days after the adoption thereof; and (3) such other information, data or reports as the Insurer reasonably requests from time to time; (ii) Notice of any default known to the City within five Business Days after knowledge thereof;
(iii) Notice of the commencement of any Insolvency Proceeding; (iv) Notice of the making of any claim in connection with any Insolvency Proceeding seeking the avoidance as a preferential transfer of any payment of principal or interest on the Bonds;
(v) All reports, notices and correspondence to be delivered to Owners under the terms of this Installment Purchase Agreement;
(vi) All information furnished pursuant to the Continuing Disclosure Agreement, dated as of the Closing Date, by and between the City and the dissemination agent named therein, entered into in connection with the Bonds, simultaneously with the furnishing of such information; provided that dissemination of such information on the Municipal Securities Rulemaking Board's Electronic Municipal Market Access System will satisfy the foregoing requirement; and (vii) Such additional information as the Insurer may reasonably request.] [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
26 4912-5311-2099v4/022599-0036
IN WITNESS WHEREOF, the parties hereto have executed and attested this Installment Purchase Agreement by their officers thereunto duly authorized as of the day and year first written above.
CITY OF BEAUMONT
By:
Mayor
ATTEST:
City Clerk
BEAUMONT PUBLIC IMPROVEMENT
AUTHORITY
By:
Chair of the Board of Directors
ATTEST:
Secretary of the Board of Directors
S-1
4912-5311-2099v4/022599-0036
EXHIBIT A
DESCRIPTION OF THE 2025 PROJECT AND THE 2018 PROJECT
2025 Project
Component
Treatment Plant Solar Generation
Centrifuges
Fine Screens
TOTAL
2018 Project
Component
Brine Line Reach 1 Bid
Brine Line Reach 1 Contingency
Brine Line Reach 2 Bid
Brine Line Reach 2 Contingency
Brine Line and OCSD Capacity
Brine Line Design/Construction Management/Permits
Treatment Plant Design/Construction Management/Equipment Treatment Plant Contract Budget
Treatment Plant Construction Contingency
Project Contingency
TOTAL
A-1
Capital Cost
Capital Cost
$ 10,900,000
1,090,000
13,800,000
1,380,000
6,600,000
7,381,373
9,170,721
53,312,000
5,331,200
1,941,778
$ 110,907,072
4912-5311-2099v4/022599-0036
EXHIBIT B
PURCHASE PRICE
1. The principal amount of payments to be made by the City hereunder is $
2. The Series 2025 Installment Payments of principal and interest are payable in the amounts and on the Series 2025 Installment Payment Dates as follows:
Installment
Payment Date
(Third Business
Day Prior to)
9/1/2025
3/1/2026
9/1/2026
3/1/2027
9/1/2027
3/1/2028
9/1/2028
3/1/2029
9/1/2029
3/1/2030
9/1/2030
3/1/2031
9/1/2031
3/1/2032
9/1/2032
3/1/2033
9/1/2033
3/1/2034
9/1/2034
3/1/2035
9/1/2035
3/1/2036
9/1/2036
3/1/2037
9/1/2037
3/1/2038
9/1/2038
3/1/2039
9/1/2039
3/1/2040
9/1/2040
3/1/2041
9/1/2041
3/1/2042
9/1/2042
3/1/2043
9/1/2043
3/1/2044
9/1/2044
3/1/2045
9/1/2045
3/1/2046
Amount
Attributable to
Principal
Amount
Attributable to
Interest
B-1
Total Series 2025
Installment
Payment
4912-5311-2099v4/022599-0036
Installment
Payment Date Amount Amount Total Series 2025
(Third Business Attributable to Attributable to Installment Day Prior to) Principal Interest Payment
9/1/2046
3/1/2047
9/1/2047
3/1/2048
9/1/2048
3/1/2049
9/1/2049
$ $
B-2
4912-5311-2099v4/022599-0036
EXHIBIT C
FORM OF SUBSTITUTION STATEMENT
Beaumont Public Improvement Authority
550 East 6th Street
Beaumont, California 92223
Attention: Chair
Zions Bancorporation, National Association
550 South Hope Street, Suite 2875
Los Angeles, California 90071
Attention:
Reference: City of Beaumont, Series 2025A
The undersigned City Manager of the City of Beaumont (the "City") hereby states pursuant to Section 3.02 of the Installment Purchase Agreement, dated as of June 1, 2025, by and between Beaumont Public Improvement Authority and the City (the "Installment Purchase Agreement") that each component of the 2025 Project (as such term is defined in the Installment Purchase Agreement) described in the first column of Exhibit A attached hereto, with an estimated cost set forth in the second column of Exhibit A, will be replaced by the corresponding improvement described in the third column of Exhibit A with an estimated cost set forth in the fourth column of Exhibit A.
Dated: , 20
City Manager
C-1
4912-5311-2099v4/022599-0036
EXHIBIT A
Cost of Each Cost of Each
Components of Components of Improvements Improvement
2025 Project to 2025 Project to be to be
be Replaced to be Replaced Substituted Substituted
C-2
4912-5311-2099v4/022599-0036
EXHIBIT D
FORM OF REQUISITION FROM ACQUISITION FUND
BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS, SERIES 2025A
REQUISITION NO. FOR
DISBURSEMENT FROM ACQUISITION FUND
The undersigned hereby states and certifies:
(i) that the undersigned is the duly appointed, qualified and acting City Manager of the City, a municipal corporation that is duly organized and existing under and by virtue of the general laws of the State of California (the "City"), and as such, is familiar with the facts herein certified and is authorized to certify the same;
(ii) that, pursuant to Section 3.06 of that certain Installment Purchase Agreement, dated as of June 1, 2025 (the "Installment Purchase Agreement"), by and between the Beaumont Public Improvement Authority and the City, the undersigned hereby requests Zions Bancorporation, National Association, as trustee for the above -captioned obligations, to disburse this date the following amounts from the Acquisition Fund established under the Indenture relating to the above - captioned obligations, to the payees designated on the attached Exhibit A; (iii) that each obligation mentioned herein has been incurred by the City and is a proper charge against the Acquisition Fund;
(iv) that any approval required under the California Environmental Quality Act, as amended (Division 13 of the California Public Resources Code), prior to the expenditure of such amount for the purpose set forth on the attached Exhibit A has been received and is final; and (v) that there has not been filed with or served upon the City notice of any lien, right to lien or attachment upon, or claim affecting the right to receive payment of, any of the moneys payable to any of the payees named on the attached Exhibit A, which has not been released or will not be released simultaneously with the payment of such obligation, other than materialmen's or mechanics' liens accruing by mere operation of law.
Dated: , 20
CITY OF BEAUMONT
By:
City Manager
D-1
4912-5311-2099v4/022599-0036
EXHIBIT A
ACQUISITION FUND DISBURSEMENTS
Item
Number Payee Name and Address Purpose of Obligation Amount D-2
4912-5311-2099v4/022599-0036
Stradling Yocca Carlson & Rauth
Draft of 5/6/25
ESCROW AGREEMENT
THIS ESCROW AGREEMENT is dated as of June 1, 2025, by and among the CITY OF BEAUMONT (the "City"), the BEAUMONT PUBLIC IMPROVEMENT AUTHORITY (the "Authority"), and ZIONS BANCORPORATION, NATIONAL ASSOCIATION, acting in its capacity as Escrow Bank (the "Escrow Bank") pursuant to this Escrow Agreement (the "Agreement").
WITNESSETH:
WHEREAS, the Authority issued its Wastewater Revenue Bonds, Series 2018A (the "2018 Bonds"), pursuant to an Indenture of Trust (the "2018 Indenture"), dated as of September 1, 2018, by and between the Authority and Wilmington Trust, National Association, then acting as trustee (the "Prior Trustee"); and
WHEREAS, the City previously entered into an Installment Purchase Agreement dated as of September 1, 2018, by and between the City and the Authority, for the purpose of securing the payments of principal of and interest on the 2018 Bonds; and WHEREAS, the City and the Authority have now determined that it is in its best interests and desirable that the outstanding 2018 Bonds (collectively, the "Defeased Bonds"), as more particularly described in Schedule A hereto, be defeased pursuant to the terms of this Escrow Agreement and be redeemed on , 2025 at a redemption price equal to the principal amount thereof plus accrued interest to such date, without premium; and
WHEREAS, the City will provide funds necessary to defease the Defeased Bonds from a portion of the proceeds received by the City in connection with the issuance by the Authority of its Wastewater Revenue Refunding Bonds, Series 2025A (the "2025 Bonds"), as described herein; and NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, the City, the Authority and the Escrow Bank agree as follows.
SECTION 1. Creation of Escrow.
(a) The Escrow Bank agrees to establish and maintain the Escrow Fund until final payment of the Defeased Bonds has been paid in full and to hold the securities, investments and moneys therein at all times as a special and separate escrow fund (wholly segregated from all other moneys on deposit with the Escrow Bank). The City shall deposit with the Escrow Bank:
(i) $ of proceeds received in connection with the 2025 Bonds, and (ii) $ transferred by the City, and such moneys shall be deposited to the Escrow Fund. The Escrow Bank shall purchase Investment Securities as described in Schedule B at a cost of $ and shall hold $ in cash. All moneys and securities in the Escrow Fund are hereby irrevocably pledged to secure the payment of the Defeased Bonds.
(b) The Escrow Bank hereby acknowledges receipt of the verification report of Causey Public Finance LLC, dated June , 2025 (the "Verification Report") with respect to the Investment Securities and the City's defeasance of the Defeased Bonds in the manner and to the extent provided by law and in Section 10.01 of the 2018 Indenture. 4907-1126-4547v5/022599-0036
SECTION 2. Investment of the Escrow Fund.
(a) The City and the Escrow Bank each shall take all remaining action, if any, necessary to have the Investment Securities issued and registered in the name of the Escrow Bank for the account of the Escrow Fund. Except as otherwise provided in this Section, the Escrow Bank shall not reinvest any cash portion of the Escrow Fund and shall hold such cash portion uninvested. (b) Upon the written direction of the City, but subject to the conditions and limitations herein set forth, the Escrow Bank shall sell, transfer, request the redemption or otherwise dispose of some or all of the Investment Securities in the Escrow Fund and purchase with the proceeds derived from such sale, transfer, redemption or other disposition noncallable, non prepayable obligations constituting direct obligations issued by the United States Treasury or obligations which are unconditionally guaranteed as to full and timely payment by the United States of America (the "Substitute Investment Securities"). Such sale, transfer, redemption or other disposition of Investment Securities and purchase of Substitute Investment Securities shall be effected by the Escrow Bank upon the written direction of the City but only by a simultaneous transaction and only if (i) a nationally recognized firm of independent certified public accountants shall certify to the City, the Escrow Bank and [INSURER], as insurer of the Defeased Bonds ("the Insurer") that (a) the Substitute Investment Securities, together with the Investment Securities which will continue to be held in the Escrow Fund, will mature in such principal amounts and earn interest in such amounts and, in each case, at such times so that sufficient moneys will be available from maturing principal and interest on such Investment Securities and Substitute Investment Securities held in the Escrow Fund, together with any uninvested moneys therein, to make all payments required by Section 3 hereof which have not previously been made, and (b) the amounts and dates of the anticipated payments by the Escrow Bank of the principal and interest on the Defeased Bonds will not be diminished or postponed thereby, and (ii) the Escrow Bank shall receive an unqualified opinion of nationally recognized municipal bond attorneys to the effect that the proposed sale, transfer, redemption or other disposition and substitution of Investment Securities will not adversely affect the exclusion of interest on the 2025 Bonds or the Defeased Bonds from gross income for federal income tax purposes.
(c) Upon the written direction of the City, but subject to the conditions and limitations herein set forth, the Escrow Bank will apply any moneys received from the maturing principal of or interest or other investment income on any Investment Securities and Substitute Investment Securities held in the Escrow Fund, or the proceeds from any sale, transfer, redemption or other disposition of Investment Securities pursuant to Section 2(b) not required for the purposes of said Section, as follows: to the extent such moneys will not be required at any time for the purpose of making a payment required by Section 3 hereof, as certified by a nationally recognized firm of independent certified public accountants, such moneys shall be transferred to the City upon the written direction of the City as received by the Escrow Bank, free and clear of any trust, lien, pledge or assignment securing the Defeased Bonds or otherwise existing hereunder or under the 2018 Indenture.
SECTION 3. Payment of the Defeased Bonds. The City hereby irrevocably instructs the Escrow Bank, and the Escrow Bank hereby agrees, to collect and deposit in the Escrow Fund the principal of and interest on the Investment Securities and Substitute Investment Securities held for the account of the Escrow Fund promptly as such principal and interest become due, and, subject to the provisions of Section 2 hereof, to make the payment of the Defeased Bonds from amounts on deposit in the Escrow Fund at the places and in the manner stipulated in the Defeased Bonds and the 2 4907-1126-4547v5/022599-0036
2018 Indenture. The Trustee is hereby irrevocably instructed to provide a Notice of Optional Redemption to the owners of the Defeased Bonds pursuant to Section 4.03 of the 2018 Indenture with respect to the redemption of the then outstanding Defeased Bonds on , 2025. The City hereby irrevocably instructs the Escrow Bank to provide the Notice of Defeasance in substantially the form set forth in Schedule C hereto. In accordance with Sections 4.01 and 10.01 of the 2018 Indenture, the Escrow Bank is irrevocably instructed to pay the principal and interest due on the Defeased Bonds on , 2025 and to redeem the then outstanding Defeased Bonds on , 2025 at a redemption price equal to the principal amount thereof, together with accrued interest thereon, without premium. Upon payment in full of the Defeased Bonds, the Escrow Bank shall transfer any securities and moneys remaining in the Escrow Fund to the City and this Agreement shall terminate. The Escrow Fund cash flow is set forth in Schedule D attached hereto.
SECTION 4. Possible Deficiencies; Amounts in Excess of Required Cash Balance. (a) If at any time the Escrow Bank has actual knowledge that the moneys in the Escrow Fund, including the anticipated proceeds of the Investment Securities and any Substitute Investment Securities, will not be sufficient to make all payments required by Section 3 hereof, the Escrow Bank shall notify the City in writing as soon as is reasonably practicable, of such fact, the amount of such deficiency and the reason therefor solely to the extent actually known to it. (b) The Escrow Bank shall in no manner be responsible for any deficiency in the Escrow Fund.
SECTION 5. Fees and Costs.
(a) The City shall pay to the Escrow Bank from time to time reasonable compensation for all services rendered under this Agreement and shall reimburse the Escrow Bank for all out of pocket expenses (including reasonable legal fees and expenses) incurred hereunder. (b) The fees of and the costs incurred by the Escrow Bank shall in no event be deducted or payable from, or constitute a lien against, the Escrow Fund.
SECTION 6. Merger or Consolidation. Any company into which the Escrow Bank may be merged or converted or with which it may be consolidated or any company resulting from any merger, conversion or consolidation to which it shall be a party or any company to which the Escrow Bank may sell or transfer all or substantially all of its corporate trust business, provided such company shall be eligible under this Agreement, shall be the successor to such Escrow Bank without the execution or filing of any paper or any further act, notwithstanding anything herein to the contrary.
SECTION 7. Indemnity. To the maximum extent permitted by law, the City hereby assumes liability for, and hereby agrees (whether or not any of the transactions contemplated hereby are consummated) to indemnify, protect, save and keep harmless the Escrow Bank and its respective successors, assigns, agents, employees and servants, from and against any and all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, expenses and disbursements (including reasonable legal fees and disbursements) of whatsoever kind and nature which may be imposed on, incurred by, or asserted against, the Escrow Bank at any time (whether or not also indemnified against the same by the City or any other person under any other agreement or instrument, but without double indemnity) in any way relating to or arising out of the execution, 3 4907-1126-4547v5/022599-0036
delivery and performance of this Agreement, the establishment hereunder of the Escrow Fund, the acceptance of the funds and securities deposited therein, the purchase of the Investment Securities and any Substitute Investment Securities, the retention of the Investment Securities and any Substitute Investment Securities or the proceeds thereof and any payment, transfer or other application of moneys or securities by the Escrow Bank in accordance with the provisions of this Agreement; provided, however, that the City shall not be required to indemnify the Escrow Bank against the Escrow Bank's own negligence or willful misconduct or the negligent or willful misconduct of the Escrow Bank's respective successors, assigns, agents and employees or the breach by the Escrow Bank of the terms of this Agreement. In no event shall the City or the Escrow Bank be liable to any person by reason of the transactions contemplated hereby other than to each other as set forth in this section. The indemnities contained in this section shall survive the termination of this Agreement and the resignation or removal of the Escrow Bank.
SECTION 8. Responsibilities of the Escrow Bank. The Escrow Bank and its respective successors, assigns, agents and servants shall not be held to any personal liability whatsoever, in tort, contract, or otherwise, in connection with the execution and delivery of this Agreement, the establishment of the Escrow Fund, the acceptance of the moneys or securities deposited therein, the purchase of the Investment Securities and any Substitute Investment Securities, the retention of the Investment Securities and any Substitute Investment Securities or the proceeds thereof, the sufficiency of the Investment Securities and any Substitute Investment Securities to accomplish the defeasance of the Defeased Bonds or any payment, transfer or other application of moneys or obligations by the Escrow Bank in accordance with the provisions of this Agreement or by reason of any non -negligent act, non -negligent omission or non -negligent error of the Escrow Bank made in good faith in the conduct of its duties. The recitals of fact contained in the "Whereas" clauses herein shall be taken as the statements of the City and the Escrow Bank assumes no responsibility for the correctness thereof. The Escrow Bank makes no representation as to the sufficiency of the Investment Securities and any Substitute Investment Securities to accomplish the defeasance of the Defeased Bonds or to the validity of this Agreement as to the City and, except as otherwise provided herein, the Escrow Bank shall incur no liability with respect thereto. The Escrow Bank shall not be liable in connection with the performance of its duties under this Agreement except for its own negligence, willful misconduct or default, and the duties and obligations of the Escrow Bank shall be determined by the express provisions of this Agreement and no implied covenants or obligations shall be read against the Escrow Bank hereunder. The Escrow Bank may consult with counsel, who may or may not be counsel to the City, and in reliance upon the written opinion of such counsel shall have full and complete authorization and protection with respect to any action taken, suffered or omitted by it in good faith in accordance therewith. No provisions of this Agreement shall require the Escrow Bank to expend or risk its own funds or otherwise incur any financial liability by the performance or exercise of its rights or powers. Whenever the Escrow Bank shall deem it necessary or desirable that a matter be proved or established prior to taking, suffering, or omitting any action under this Agreement, such matter may be deemed to be conclusively established by a certificate signed by an authorized officer of the City.
The Escrow Bank may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties. The Escrow Bank may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents, attorneys, custodians or nominees appointed with due care, and shall not be responsible for any willful misconduct or negligence on the part of any agent, attorney, custodian or nominee so appointed. 4 4907-1126-4547v5/022599-0036
Anything in this Agreement to the contrary notwithstanding, in no event shall the Escrow Bank be liable for special, indirect, punitive or consequential loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Escrow Bank has been advised of the likelihood of such loss or damage and regardless of the form of action. The Escrow Bank shall not be liable to the parties hereto or deemed in breach or default hereunder if and to the extent its performance hereunder is prevented by reason of force majeure. The term "force majeure" means an occurrence that is beyond the control of the Escrow Bank and could not have been avoided by exercising due care. Force majeure shall include acts of God, terrorism, war, riots, strikes, fire, floods, earthquakes, epidemics or other similar occurrences.
The Escrow Bank agrees to accept and act upon instructions or directions pursuant to this Agreement sent by unsecured e-mail, facsimile transmission or other similar unsecured electronic methods, provided, however, that, the Escrow Bank shall have received an incumbency certificate listing persons designated to give such instructions or directions and containing specimen signatures of such designated persons, which such incumbency certificate shall be amended and replaced whenever a person is to be added or deleted from the listing. If the City elects to give the Escrow Bank e-mail or facsimile instructions (or instructions by a similar electronic method) and the Escrow Bank in its discretion elects to act upon such instructions, the Escrow Bank's understanding of such instructions shall be deemed controlling. The Escrow Bank shall not be liable for any losses, costs or expenses arising directly or indirectly from the Escrow Bank's reliance upon and compliance with such instructions notwithstanding such instructions conflict or are inconsistent with a subsequent written instruction. The City agrees to assume all risks arising out of the use of such electronic methods to submit instructions and directions to the Escrow Bank, including without limitation the risk of the Escrow Bank acting on unauthorized instructions, and the risk of interception and misuse by third parties.
SECTION 9. Amendments. This Agreement is made for the benefit of the City, the Authority and the owners from time to time of the Defeased Bonds and it shall not be repealed, revoked, altered or amended without the written consent of all such owners, the Escrow Bank, the Insurer and the City; provided, however, that if the City and the Escrow Bank receive an opinion of nationally recognized bond attorneys to the effect that the exclusion from gross income for federal income tax purposes of the interest on the 2018 Bonds and the 2025 Bonds will not be adversely affected thereby, they may, without the consent of, or notice to, such owners, but with the consent of the Insurer, amend this Agreement or enter into such agreements supplemental to this Agreement as shall not materially adversely affect the rights of such owners and as shall not be inconsistent with the terms and provisions of this Agreement, for any one or more of the following purposes: (i) to cure any ambiguity or formal defect or omission in this Agreement; (ii) to grant to, or confer upon, the Escrow Bank for the benefit of the owners of the Defeased Bonds any additional rights, remedies, powers or authority that may lawfully be granted to, or conferred upon, such owners or the Escrow Bank; (iii) to include under this Agreement additional funds, securities or properties (but only if the sufficiency of the Escrow Fund for the purpose herein set forth is verified by a nationally recognized firm of independent certified public accountants) and shall hold funds received by it uninvested. The Escrow Bank shall be entitled to rely conclusively upon an unqualified opinion of nationally recognized municipal bond attorneys with respect to compliance with this Section 9, including the extent, if any, to which any change, modification, addition or elimination affects the rights of the owners of the Defeased Bonds or that any instrument executed hereunder complies with the conditions and provisions of this Section 9.
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SECTION 10. Resignation or Removal of Escrow Bank.
(a) The Escrow Bank may resign by giving not less than 30 days' notice in writing to the City, which notice shall be mailed to the owners of the Defeased Bonds remaining unpaid. The Escrow Bank may be removed upon 30 days' prior written notice (1) by (i) filing with the City of an instrument or instruments executed by the owners of at least [51°4] in aggregate principal amount of the Defeased Bonds then remaining unpaid, and (ii) the delivery of a copy of the instruments filed with the City to the Escrow Bank, or (2) by a court of competent jurisdiction for failure to act in accordance with the provisions of this Agreement upon application by the City or the owners of [5%] in aggregate principal amount of the Defeased Bonds then remaining unpaid. (b) If the position of Escrow Bank becomes vacant due to resignation or removal of the Escrow Bank or any other reason, a successor Escrow Bank may be appointed by the City.
Notice of such appointment shall be mailed by first class mail, postage prepaid, to the registered owners of the Defeased Bonds. Within one year after a vacancy, the owners of a majority in principal amount of the Defeased Bonds then remaining unpaid may, by an instrument or instruments filed with the City, appoint a successor Escrow Bank who shall supersede any Escrow Bank theretofore appointed by the City. If no successor Escrow Bank is appointed by the City or the owners of such Defeased Bonds then remaining unpaid, within 45 days after any such resignation or removal, the Escrow Bank may petition the appropriate court having jurisdiction for the appointment of a successor Escrow Bank. The responsibilities of the Escrow Bank under this Escrow Agreement will not be discharged until a new Escrow Bank is appointed and until the cash and investments held under this Escrow Agreement are transferred to the new Escrow Bank.
SECTION 11. Severability. If any section, paragraph, sentence, clause or provision of this Agreement shall for any reason be held to be invalid or unenforceable, the invalidity or unenforceability of such section, paragraph, sentence, clause or provision shall not affect any of the remaining provisions of this Agreement.
SECTION 12. Execution of Counterparts. This Agreement may be executed in any number of counterparts, each of which shall for all purposes be deemed to be an original and all of which shall together constitute but one and the same instrument.
SECTION 13. Applicable Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California.
SECTION 14. Definitions. Any capitalized term used but not otherwise defined in this Agreement shall have the meaning assigned to such term in the Prior Trust Agreement and the Indenture.
SECTION 15. Assignment. This Agreement shall not be assigned by the Escrow Bank or any successor thereto without the prior written consent of the City provided, however, that an assignment made pursuant to Section 6 hereof shall not require prior written consent.
SECTION 16. Holidays. If the date for making any payment or the last date for performance of any act or the exercising of any right, as provided in this Agreement, shall be a legal holiday or a day on which banking institutions in which the corporate trust office of the Escrow Bank is located are authorized by law to remain closed, such payment may be made or act performed or right exercised on the next succeeding day not a legal holiday or a day on which such banking institutions 6 4907-1126-4547v5/022599-0036
are authorized by law to remain closed, with the same force and effect as if done on the nominal date provided in this Agreement; and no interest shall accrue for the period from and after such nominal date.
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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized officers as of the day and year first above written.
CITY OF BEAUMONT
By:
General Manager
BEAUMONT PUBLIC IMPROVEMENT
AUTHORITY
By:
Executive Director
S-1
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[SIGNATURE PAGE TO ESCROW AGREEMENT]
ZIONS BANCORPORATION, NATIONAL
ASSOCIATION, as Escrow Bank
By:
Authorized Officer
S-2
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Maturity (September 1)
•
* Term Bond.
SCHEDULE A
DEFEASED BONDS
Interest Rate
A-1
Principal Amount
S
4907-1126-4547v5/022599-0036
SCHEDULE B
INVESTMENT SECURITIES
United States Treasury Time Deposit Securities, State and Local Government Series Maturity Par Settlement
Type Coupon Date Amount Price Date
,20 $
B-1
,20
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SCHEDULE C
IRREVOCABLE INSTRUCTIONS AND REQUEST
TO TRUSTEE AND ESCROW BANK
, 2025
Zions Bancorporation, National Association
550 South Hope Street, Suite 2875
Los Angeles, California 90071
Attention:
BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
WASTEWATER REVENUE BONDS, SERIES 2018A
Ladies and Gentlemen:
As Trustee under that certain Indenture of Trust, dated as of September 1, 2018, by and between the Beaumont Public Improvement Authority (the "Authority") and Wilmington Trust, National Association, as prior trustee, and thereafter succeeded by Zions Bancorporation, National Association, as successor trustee (the "Indenture"), you are hereby notified of the irrevocable election of the City of Beaumont (the "City") to defease the outstanding above -captioned Bonds (the "Redeemed Bonds") in accordance with Section 10.01 of the Indenture and to redeem the then outstanding Redeemed Bonds on , 2025. You are hereby irrevocably instructed to mail a notice of redemption to the owners of the Redeemed Bonds, in accordance with Section 4.03 of the Indenture, and a notice of defeasance substantially in the form attached as Exhibit A hereto. You are further irrevocably instructed to apply all securities and moneys held in the escrow fund established under that certain Escrow Agreement dated as of June 1, 2025, by and among the Authority, the City and Zions Bancorporation, National Association, as Escrow Bank to pay the principal and interest due on the Redeemed Bonds on , 2025 and to pay the redemption price of the then outstanding Redeemed Bonds on , 2025.
[Remainder of this page left intentionally blank]
C-1
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BEAUMONT PUBLIC IMPROVEMENT
AUTHORITY
By:
Executive Director
CITY OF BEAUMONT
By:
General Manager
ZIONS BANCORPORATION,
NATIONAL ASSOCIATION,
as Successor Trustee and Escrow Bank
By:
Authorized Officer
C-2
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EXHIBIT A
NOTICE OF DEFEASANCE OF
BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
WASTEWATER REVENUE BONDS, SERIES 2018A
Maturity Principal Amount Redemption
CUSIP' Bond No. (September 1) Interest Rate Redeemed Price Notice is hereby given to the holders of the outstanding above -captioned Bonds (the "Bonds") set forth above that (i) the Bonds described above (the "Defeased Bonds") have been called for redemption on , 2025 and have been defeased as permitted by the Indenture of Trust dated as of September 1, 2018 (the "Indenture"), by and between the Beaumont Public Improvement Authority (the "Authority") and Wilmington Trust, National Association, as prior trustee (the "Prior Trustee"), and thereafter succeeded by Zions Bancorporation, National Association, as successor trustee (the "Trustee"); (ii) there has been deposited with Zions Bancorporation, National Association, as escrow bank (the "Escrow Bank"), cash and investment securities which have been calculated by an independent certified public accounting firm to be sufficient to pay the principal and interest due on the Defeased Bonds on , 2025 and to pay the redemption price of the then outstanding Defeased Bonds on , 2025; and (iii) all of the Defeased Bonds have been deemed paid in accordance with Section 10.01 of the Indenture, and the Defeased Bonds have been completely discharged and satisfied.
The CUSIP numbers assigned to the Defeased Bonds are provided solely for the convenience of the holders of the Defeased Bonds.
Dated this th day of , 2025.
ZIONS BANCORPORATION, NATIONAL
ASSOCIATION, as Successor Trustee
* CUSIP® is a registered trademark of the American Bankers Association. CUSIP Global Services (CGS) is managed on behalf of the American Bankers Association by Factset Research Systems Inc. Copyright© 2025 CUSIP Global Services. All rights reserved. CUSIP® data herein is provided by CUSIP Global Services. This data is not intended to create a database and does not serve in any way as a substitute for the CGS database. CUSIP® numbers are provided for convenience of reference only.
None of the City, the Authority, or the Underwriter take any responsibility for the accuracy of such numbers.
A-1
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SCHEDULE D
ESCROW FUND CASH FLOW
[TO COME]
D-1
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BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS, SERIES 2025A
BOND PURCHASE AGREEMENT
, 2025
Beaumont Public Improvement Authority
550 East 6th Street
Beaumont, California 92223
City of Beaumont
550 East 6th Street
Beaumont, California 92223
Ladies and Gentlemen:
Stifel, Nicolaus & Company, Incorporated (the "Underwriter") hereby offers to enter into this Bond Purchase Agreement (the "Purchase Agreement") with you, the Beaumont Public Improvement Authority (the "Authority") and the City of Beaumont (the "City"), for the purchase by the Underwriter and the delivery by the Authority of the above -referenced Bonds (the "Bonds").
The proceeds of the Bonds will be used to: (i) to refinance the outstanding Beaumont Public Improvement Authority Wastewater Revenue Bonds, Series 2018A (the "2018 Bonds"); (ii) to finance certain capital improvements to the City's Wastewater System; and (iii) to pay costs incurred in connection with the issuance of the Bonds, including the premium for a municipal bond insurance policy (the "Policy") to be issued by the Insurer (defined below) guaranteeing the payment of principal of and interest on the Bonds maturing on September 1 of the years 202_ through 20_, inclusive (the "Insured Bonds"). This offer is subject to your acceptance prior to 11:59 p.m., California time, on the date hereof and if not so accepted will be subject to withdrawal by the Underwriter upon written notice delivered to the Authority and the City at any time prior to the acceptance thereof by the Authority and the City. Upon such acceptance, this Purchase Agreement shall be in full force and effect in accordance with its terms and shall be binding upon you and the Underwriter. All terms not defined herein shall have the meanings set forth in the Indenture and the Installment Purchase Agreement (each defined below).
The Authority and the City acknowledge and agree that: (i) the purchase and sale of the Bonds pursuant to this Purchase Agreement is an arm's -length commercial transaction among the City, the Authority and the Underwriter in which the Underwriter is acting solely as a principal and not as an agent of the Authority or the City and the Underwriter is not acting as a municipal advisor, financial advisor or fiduciary to the Authority or the City; (ii) the Underwriter has not assumed any advisory or fiduciary responsibility to the Authority or the City with respect to the transaction contemplated by this Purchase Agreement and the discussions, undertakings or procedures leading thereto (irrespective of whether the Underwriter, or any affiliate of the Underwriter has provided other services or is currently providing other services to the Authority or the City on other matters); (iii) the only obligations the Underwriter has to the Authority and the City with respect to the
transaction contemplated by this Purchase Agreement are expressly set forth in this Purchase Agreement and the Underwriter has financial and other interests that differ from those of the Authority and the City; and (iv) the Authority and the City have consulted their own financial and/or municipal, legal, accounting, tax and other advisors, as applicable, to the extent the Authority and the City have deemed appropriate. The Authority acknowledges that it has previously provided the Underwriter with an acknowledgement of receipt of the required Underwriter disclosure under Rule G-17 of the Municipal Securities Rulemaking Board (the "MSRB").
1. Upon the terms and conditions and upon the basis of the representations herein set forth, the Underwriter hereby agrees to purchase from the Authority for offering to the public, and the Authority hereby agrees to sell and deliver to the Underwriter, all (but not less than all) of the $ aggregate principal amount of the Beaumont Public Improvement Authority Wastewater Revenue Refunding Bonds, Series 2025A to be dated the Closing Date, at a price of $ being the principal amount of the Bonds, plus net original issue premium of $ , less an Underwriter's discount of $
The Bonds shall mature in the amounts and on the dates, and bear interest at the rates, set forth in Exhibit A hereto. The Bonds shall be as described in, shall be subject to redemption, and shall be secured under and pursuant to an Indenture of Trust, dated as of June 1, 2025 (the "Indenture"), between the Authority and Zions Bancorporation, National Association, as trustee (the "Trustee"), substantially in the form previously submitted to the Underwriter with only such changes therein as shall be mutually agreed upon by the Authority, the Trustee and the Underwriter.
The obligation of the Authority to pay the principal of and interest on the Bonds is a special obligation of the Authority, payable solely from Authority Revenues (as defined in the Indenture), and certain other amounts held under the Indenture. Authority Revenues consist primarily of Installment Payments made by the City pursuant to the Installment Purchase Agreement (as defined below). The principal of and interest on the Bonds are not required to be paid from any other funds of the Authority, including any proceeds of any taxes, and does not constitute a debt or pledge of the faith and credit of the Authority or the State of California (the "State") or any political subdivision thereof in contravention of any constitutional or statutory debt limitation or restriction.
The scheduled payment of principal of and interest on the Insured Bonds when due will be guaranteed under the Policy to be issued concurrently with the delivery of the Bonds by (the "Insurer").
The Authority and the City hereby ratify the use by the Underwriter of the Preliminary Official Statement, dated , 2025 relating to the Bonds (together with the cover page and all appendices thereto, and any supplements thereof, the "Preliminary Official Statement"), and authorizes the Underwriter to use and distribute the Preliminary Official Statement, the Official Statement (as defined below), the Indenture, the Installment Purchase Agreement, dated as of June 1, 2025, between the Authority and the City (the "Installment Purchase Agreement"), the Continuing Disclosure Agreement as required by Securities and Exchange Commission Rule 15c2-12 ("Rule 15c2-12"), and substantially in the form of Appendix E to the Official Statement, dated [Closing Date] (the "Continuing Disclosure Agreement"), executed by the City, the Escrow Agreement, dated as of June 1, 2025 (the "Escrow Agreement"), by and among the Authority, the City and Zions Bancorporation, National Association, acting as escrow agent (the "Escrow Agent") and this Purchase Agreement, and all information contained therein, and all other documents, certificates and statements furnished by the Authority and the City to the Underwriter in connection with the offer 2
and sale of the Bonds by the Underwriter. The Authority and the City have heretofore "deemed final" the Preliminary Official Statement within the meaning of Rule 15c2-12.
The City will undertake pursuant to Continuing Disclosure Agreement to provide certain annual financial and operating information and notices of the occurrence of certain events. A description of this undertaking is set forth in the Preliminary Official Statement and will also be set forth in the final Official Statement. This undertaking will be entered into in order to assist the Underwriter in complying with the Rule.
2. The Underwriter agrees to offer all the Bonds to the public initially at the prices (or yields) set forth on the inside cover page of the Official Statement of the Authority pertaining to the Bonds, dated [BPA Date] (together with all appendices thereto, and with such changes therein and supplements thereto and as are consented to in writing by the Underwriter, and with the Preliminary Official Statement, are herein called the "Official Statement"). Subsequent to the initial public offering of the Bonds, the Underwriter reserves the right to change the public offering prices (or yields) as it deems necessary in connection with the marketing of the Bonds subject to Section 5 hereof. The Bonds may be offered and sold to certain dealers at prices lower than such initial public offering prices. "Public Offering" shall include an offering to a representative number of institutional investors or registered investment companies, regardless of the number of such investors to which the Bonds are sold. The Underwriter agrees that prior to the time the final Official Statement relating to the Bonds is available, the Underwriter will send to any potential purchaser of the Bonds, upon the request of such potential purchaser, a copy of the most recent Preliminary Official Statement. Such Preliminary Official Statement shall be sent by first class mail or electronic distribution (or other equally prompt means) not later than the first business day following the date upon which each such request is received.
3. The Authority shall also deliver a sufficient number of copies of the Official Statement to enable the Underwriter to distribute a single copy of each Official Statement to any potential customer of the Underwriter requesting an Official Statement during the time period beginning when the Official Statement becomes available and ending on the End Date (defined below). The Authority shall deliver these copies to the Underwriter no later than the earlier of (i) seven (7) business days after the execution of this Purchase Agreement or (ii) one (1) business day prior to the Closing Date in order to permit the Underwriter to comply with Rule 15c2-12, and the applicable rules of the MSRB, with respect to distribution of the Official Statement. The Authority and City shall prepare the Official Statement, including any amendments thereto, in word -searchable PDF format as described in the MSRB's Rule G-32 and shall provide the electronic copy of the word -searchable PDF format of the Official Statement to the Underwriter no later than one (1) business day prior to the Closing Date to enable the Underwriter to comply with MSRB Rule G-32.
The Underwriter shall inform the City in writing of the End Date, and covenants to file the Official Statement with the MSRB on a timely basis.
The Official Statement, as of its date, as of the Closing Date (as defined herein) and as of the date of any update, amendment or supplement thereto as required hereby subsequent to the Closing, up to and including the date which is twenty-five (25) days following the end (the "End Date") of the Underwriting Period (as hereinafter defined), will be correct and complete in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
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If, after the date of this Purchase Agreement and until the earlier of (i) ninety (90) days after the end of the "underwriting period" (as defined in Rule 15c2-12) (the "Underwriting Period"), or (ii) twenty-five (25) days following the end of the Underwriting Period if the Official Statement is available to any person from the MSRB as contemplated by Rule 15c2 -12(b)(4), any event shall occur or circumstance shall exist of which the Authority or the City have knowledge that would cause the Official Statement to contain any untrue statement of a material fact or to omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, the Authority or the City, as the case may be, shall notify the Underwriter (and for the purpose of this Section provide the Underwriter with such information as it may from time to time reasonably request), and, if in the opinion of the City, the Authority or the Underwriter such event or circumstance requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority and the City will, at their expense, supplement or amend the Official Statement in a form and manner jointly approved by the City, the Authority and the Underwriter and furnish to the Underwriter a reasonable number of copies of such supplement or amendment provided that the Underwriter agrees that it will promptly notify the Authority and the City of the end of the Underwriting Period.
4. At 8:30 a.m., Pacific Time, on [Closing Date], or at such other time or date as shall be agreed upon by the Underwriter, Authority and the City (such time and date being herein referred to as the "Closing Date"), the Authority will deliver to the Underwriter, at a location or locations to be designated by the Underwriter, the Bonds in book -entry form (all Bonds having had the CUSIP numbers assigned to them thereon), duly executed by an authorized officer of the Trustee as provided in the Indenture, and the other documents herein mentioned; and the Underwriter will accept such delivery and pay the purchase price of the Bonds as set forth in Section 1 of this Purchase Agreement in immediately available funds (such delivery and payment being herein referred to as the "Closing").
Upon initial issuance, the ownership of such Bonds shall be registered in the registration books kept by the Trustee in the name of Cede & Co., as the nominee of The Depository Trust Company.
It is anticipated that CUSIP numbers will be printed on the Bonds, but neither the failure to provide such numbers nor any error with respect thereto shall constitute a cause for failure or refusal by the Underwriter to accept delivery of the Bonds in accordance with the terms of this Purchase Agreement.
5. A. The Underwriter agrees to assist the Authority in establishing the issue price of the Bonds and shall execute and deliver to the Authority at Closing an "issue price" or similar certificate, together with the supporting pricing wires or equivalent communications, substantially in the form attached hereto as Exhibit B, with such modifications as may be appropriate or necessary, in the reasonable judgment of the Underwriter, the Authority and Bond Counsel, to accurately reflect, as applicable, the sales price or prices or the initial offering price or prices to the public of the Bonds.
B. Except as otherwise set forth in Exhibit A attached hereto, the Authority will treat the first price at which 10% of each maturity of the Bonds (the "10% test") is sold to the public as the issue price of that maturity. At or promptly after the execution of this Purchase Agreement, the Underwriter shall report to the Authority the price or prices at which it has sold to the public each maturity of Bonds. If at that time the 10% test has not been satisfied as to any maturity of the Bonds, the Underwriter agrees to promptly report to the Authority the prices at which it sells the unsold 4
Bonds of that maturity to the public. That reporting obligation shall continue, whether or not the Closing Date has occurred, until either (i) the Underwriter has sold all Bonds of that maturity or (ii) the 10% test has been satisfied as to the Bonds of that maturity, provided that, the Underwriter's reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Authority or Bond Counsel. For purposes of this Section, if Bonds mature on the same date but have different interest rates, each separate CUSIP number within that maturity will be treated as a separate maturity of the Bonds.
C. The Underwriter confirms that it has offered the Bonds to the public on or before the date of this Purchase Agreement at the offering price or prices (the "initial offering price"), or at the corresponding yield or yields, set forth in Exhibit A attached hereto. Exhibit A also sets forth, as of the date of this Purchase Agreement, the maturities, if any, of the Bonds for which the Underwriter represents that (i) the 10% test has been satisfied (assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement) and (ii) the 10% test has not been satisfied and for which the Authority and the Underwriter agree that the restrictions set forth in the next sentence shall apply, which will allow the Authority to treat the initial offering price to the public of each such maturity as of the sale date as the issue price of that maturity (the "hold -the -offering -price rule"). So long as the hold -the -offering -price rule remains applicable to any maturity of the Bonds, the Underwriter will neither offer nor sell unsold Bonds of that maturity to any person at a price that is higher than the initial offering price to the public during the period starting on the sale date and ending on the earlier of the following:
a. the close of the fifth (5th) business day after the sale date; or b. the date on which the Underwriter has sold at least 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
The Underwriter will advise the Authority promptly after the close of the fifth (5th) business day after the sale date whether it has sold 10% of that maturity of the Bonds to the public at a price that is no higher than the initial offering price to the public.
D. The Underwriter confirms that:
(i) any selling group agreement and any third -party distribution agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer who is a member of the selling group and each broker -dealer that is a party to such third -party distribution agreement, as applicable:
(A)(i) to report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be reasonable periodic intervals or otherwise upon request of the Underwriter and (ii) to comply with the hold -the -offering -price rule, if applicable, if and for so long as directed by the Underwriter,
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(B) to promptly notify the Underwriter of any sales of Bonds that, to its knowledge, are made to a purchaser who is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below), and (C) to acknowledge that, unless otherwise advised by the dealer or broker -dealer, the Underwriter shall assume that each order submitted by the dealer or broker -dealer is a sale to the public.
(ii) any selling group agreement relating to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language obligating each dealer that is a party to a third -party distribution agreement to be employed in connection with the initial sale of the Bonds to the public to require each broker -dealer that is a party to such third -party distribution agreement to (A) report the prices at which it sells to the public the unsold Bonds of each maturity allocated to it, whether or not the Closing Date has occurred, until either all Bonds of that maturity allocated to it have been sold or it is notified by the Underwriter or the dealer that the 10% test has been satisfied as to the Bonds of that maturity, provided that, the reporting obligation after the Closing Date may be at reasonable periodic intervals or otherwise upon request of the Underwriter or the dealer, and (B) comply with the hold -the -offering -price rule, if applicable, if and for so long as directed by the Underwriter or the dealer and as set forth in the related pricing wires.
E. The Authority acknowledges that, in making the representation set forth in this section, the Underwriter will rely on (i) in the event a selling group has been created in connection with the initial sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the -offering -price rule, if applicable to the Bonds, as set forth in a selling group agreement and the related pricing wires, and (ii) in the event that a third -party distribution agreement was employed in connection with the initial sale of the Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the -offering -price rule, if applicable to the Bonds, as set forth in the third -party distribution agreement and the related pricing wires. The Authority further acknowledges that the Underwriter shall not be liable for the failure of any dealer who is a member of a selling group, or of any broker -dealer that is a party to a third -party distribution agreement, to comply with its corresponding agreement to comply with the requirements for establishing issue price of the Bonds, including, but not limited to, its agreement to comply with the hold -the -offering - price rule, if applicable to the Bonds.
F. The Underwriter acknowledges that sales of any Bonds to any person that is a related party to an underwriter participating in the initial sale of the Bonds to the public (each such term being used as defined below) shall not constitute sales to the public for purposes of this section.
Further, for purposes of this section:
a. "public" means any person other than an underwriter or a related party;
b. "underwriter" means (A) any person that agrees pursuant to a written contract with the Authority (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the public and (B) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (A) to 6
participate in the initial sale of the Bonds to the public (including a member of a selling group or a party to a third -party distribution agreement participating in the initial sale of the Bonds to the public);
c. a purchaser of any of the Bonds is a "related party" to an underwriter if the underwriter and the purchaser are subject, directly or indirectly, to (A) more than 50% common ownership of the voting power or the total value of their stock, if both entities are corporations (including direct ownership by one corporation of another), (B) more than 50% common ownership of their capital interests or profits interests, if both entities are partnerships (including direct ownership by one partnership of another), or (C) more than 50% common ownership of the value of the outstanding stock of the corporation or the capital interests or profit interests of the partnership, as applicable, if one entity is a corporation and the other entity is a partnership (including direct ownership of the applicable stock or interests by one entity of the other); and
d. "sale date" means the date of execution of this Purchase Agreement by all parties.
6. The Underwriter represents to and agrees with the Authority and the City that, as of the date hereof and as of the Closing Date:
(i) The Underwriter is duly authorized to execute this Purchase Agreement and to take any action under this Purchase Agreement required to be taken by it; (ii) The Underwriter is in compliance with MSRB Rule G-37 with respect to the Authority and the City, and is not prohibited thereby from acting as the underwriter with respect to securities of the Authority and the City;
(iii) The Underwriter has, and has had, no financial advisory relationship, as that term is defined in California Government Code Section 53590 (c) or MSRB Rule G-32, with the City with respect to the Bonds, and no investment firm controlling, controlled by or under common control with such Underwriter have or has had any such financial advisory relationship; and
(iv) The Underwriter has reasonably determined that the undertaking to provide continuing disclosure with respect to the Bonds pursuant to the Continuing Disclosure Agreement is sufficient to effect compliance with Rule 15c2-12.
7. The Authority represents, warrants and covenants to the Underwriter that:
(a) The Authority is a joint exercise of powers authority duly organized and validly existing pursuant to the laws of the State of California and has all necessary power and authority to enter into and perform its duties under the Indenture, the Installment Purchase Agreement, the Escrow Agreement and this Purchase Agreement (collectively, the "Authority Documents") and, when executed and delivered by the respective parties thereto, the Authority Documents will constitute the legal, valid and binding obligations of the Authority in accordance with their respective terms.
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(b) Neither the execution and delivery of the Authority Documents, or the approval and execution of the Official Statement, and compliance with the provisions on the Authority's part contained therein, nor the consummation of any other of the transactions herein and therein contemplated, nor the fulfillment of the terms hereof and thereof, conflicts with or constitutes a breach of or default under nor contravenes any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, nor does any such execution, delivery, adoption or compliance result in the security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the Authority under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the Authority Documents.
(c) Except as may be required under blue sky or other securities laws of any state, there is no consent, approval, authorization or other order of, or filing with, or certification by, any regulatory authority having jurisdiction over the Authority required for the execution and delivery of the Bonds or the consummation by the Authority of the other transactions contemplated by the Official Statement and this Purchase Agreement.
(d) To the best of the knowledge of the Authority, there is, and on the Closing there will be, no action, suit, proceeding or investigation at law or in equity before or by any court or governmental agency or body pending or threatened against the Authority to restrain or enjoin the delivery of any of the Bonds, or the payments to be made pursuant to the Indenture, or in any way contesting or affecting the validity of the Authority Documents or of the Authority to enter into the Authority Documents or contesting the powers of the Authority to perform its obligations under any of the foregoing or in any way contesting the powers of the Authority in connection with any action contemplated by this Purchase Agreement, or in any way questioning or challenging the tax status of the Bonds.
(e) As of the date thereof and at all times subsequent thereto up to and including the End Date, the information relating to the Authority contained in the Official Statement will be complete and will not contain any untrue or misleading statement of a material fact or omit to state any material fact (unless an event occurs of the nature described in Section 7(j) below) necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of its date and as of the date hereof, the information relating to the Authority and the Bonds contained in the Official Statement is true and correct in all material respects and such information does not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(f) The Authority agrees to cooperate with the Underwriter in endeavoring to qualify the Bonds for offering and sale under the securities or blue sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the Authority will not be required to execute a special or general consent to service of process in any jurisdiction in which it is not now so subject or to qualify to do business as a foreign agency in any jurisdiction where it is not so qualified.
(g) By official action of the Authority prior to or concurrently with the execution hereof, the Authority has duly approved the distribution of the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the Authority of the 8
obligations on its part contained in the Authority Documents and the consummation by it of all other transactions contemplated by the Official Statement and this Purchase Agreement. (h) The Authority is not in breach of or default under any applicable law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the Authority is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument.
(i) The Authority is not in default, nor has been in default at any time, as to the payment of principal or interest with respect to an obligation issued by the Authority or successor of the Authority or with respect to an obligation guaranteed by the Authority as guarantor or successor of a guarantor.
(j) If between the date of this Purchase Agreement and the End Date an event occurs, of which the Authority has knowledge, which might or would cause the information relating to the Authority or the Authority's functions, duties and responsibilities contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading, the Authority will notify the Underwriter, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the Authority will cooperate with the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Underwriter, provided all expenses thereby incurred will be paid for by the Authority.
(k) If the information relating to the Authority, its functions, duties and responsibilities contained in the Official Statement is amended or supplemented pursuant to the immediately preceding subsection, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subsection) at all times subsequent thereto up to and including the date of the Closing, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading.
(1) No consent, approval, authorization or other action by a governmental or regulatory authority that has not been obtained is or will be required of the Authority for the delivery and sale of the Bonds or the consummation of the other transactions contemplated by this Purchase Agreement and the Official Statement, except as may be required under the state securities or blue sky laws in connection with the sale of the Bonds by the Underwriter. (m) The Authority will deliver all opinions, Bonds, letters and other instruments and documents reasonably required by the Underwriter and this Purchase Agreement. (n) Any certificate of the Authority delivered to the Underwriter shall be deemed a representation and warranty by the Authority to the Underwriter as to the statements made therein. 9
(o) Other than as described in the Official Statement, as of the time of acceptance hereof and as of the Closing the Authority does not and will not have outstanding any indebtedness which is secured by a lien on the Authority Revenues superior to or on a parity with the lien of the Bonds thereon.
(p) Between the date of this Purchase Agreement and the date of Closing, the Authority will not, without the prior written consent of the Underwriter, and except as disclosed in the Official Statement, offer or issue any bonds, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent.
(q) The Authority is not presently and as a result of the execution of the Authority Documents and the sale of the Bonds will not be in violation of any debt limitation, appropriation limitation or any other provision of the California Constitution or statutes or any additional debt or similar provision of any bond, note, contract or other evidence of indebtedness to which the Authority is a party or to which the Authority is bound. (r) The Authority will not knowingly take or omit to take any action, which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner other than as provided in the Authority Documents, unless otherwise required by law.
8. The City represents, warrants and covenants to the Underwriter that:
(a) The City is a general law city duly organized under the laws of the State of California, and has all necessary power and authority to enter into and perform its duties under the Installment Purchase Agreement, the Continuing Disclosure Agreement, the Escrow Agreement and this Purchase Agreement (collectively, the "City Documents") and, when executed and delivered by the respective parties thereto, the City Documents will constitute the legal, valid and binding obligations of the City in accordance with their respective terms. (b) Neither the execution and delivery of the City Documents, or the approval and execution of the Official Statement, and compliance with the provisions on the City's part contained therein, nor the consummation of any other of the transactions herein and therein contemplated, nor the fulfillment of the terms hereof and thereof, conflicts with or constitutes a breach of or default under nor contravenes any law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, nor does any such execution, delivery, adoption or compliance result in the security interest or encumbrance of any nature whatsoever upon any of the properties or assets of the City under the terms of any such law, administrative regulation, judgment, decree, loan agreement, indenture, bond, note, resolution, agreement or other instrument, except as provided by the City Documents.
(c) Except as may be required under blue sky or other securities laws of any state, there is no consent, approval, authorization or other order of, or filing with, or certification by, any regulatory authority having jurisdiction over the City required for the execution and delivery of the Bonds or the consummation by the City of the other transactions contemplated by the Official Statement and this Purchase Agreement.
(d) To the best of the knowledge of the City, there is, and on the Closing there will be, no action, suit, proceeding or investigation at law or in equity before or by any court or 10
governmental agency or body pending or threatened against the City to restrain or enjoin the delivery of any of the Bonds, or the payments to be made pursuant to the Installment Purchase Agreement and Indenture, or in any way contesting or affecting the validity of the City Documents or of the City to approve or enter into the City Documents, or in any way questioning or challenging the tax status of the Bonds.
(e) As of the date thereof and at all times subsequent thereto up to and including the End Date, the information relating to the City, the Bonds and the Wastewater System contained in the Official Statement will be complete and will not contain any untrue or misleading statement of a material fact or omit to state any material fact (unless an event occurs of the nature described in Section 8(j) below) necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of its date and as of the date hereof, the information relating to the City, the Bonds and the Wastewater System contained in the Official Statement is true and correct in all material respects and such information does not contain any untrue or misleading statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. (f) The City agrees to cooperate with the Underwriter in endeavoring to qualify the Bonds for offering and sale under the securities or blue sky laws of such jurisdictions of the United States as the Underwriter may request; provided, however, that the City will not be required to execute a special or general consent to service of process in any jurisdiction in which it is not now so subject or to qualify to do business as a foreign agency in any jurisdiction where it is not so qualified.
(g) By official action of the City prior to or concurrently with the execution hereof, the City has duly approved the distribution of the Official Statement, and has duly authorized and approved the execution and delivery of, and the performance by the City of the obligations on its part contained in the City Documents and the consummation by it of all other transactions contemplated by the Official Statement and this Purchase Agreement. (h) The City is not in breach of or default under any applicable law or administrative regulation of the State of California or the United States or any applicable judgment or decree or any loan agreement, indenture, bond, note, resolution, agreement or other instrument to which the City is a party or is otherwise subject, and no event has occurred and is continuing which, with the passage of time or the giving of notice, or both, would constitute a default or an event of default under any such instrument.
(i) The City is not in default, nor has been in default at any time, as to the payment of principal or interest with respect to an obligation issued by the City or successor of the City or with respect to an obligation guaranteed by the City as guarantor or successor of a guarantor. (j) If between the date of this Purchase Agreement and the End Date an event occurs, of which the City has knowledge, which might or would cause the information relating to the City, the Wastewater System or the City's functions, duties and responsibilities contained in the Official Statement, as then supplemented or amended, to contain an untrue statement of a material fact or to omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading, the City will notify the Underwriter, and if, in the opinion of the Underwriter, such event requires the preparation and publication of a supplement or amendment to the Official Statement, the City will 11
cooperate with the Underwriter in the preparation of an amendment or supplement to the Official Statement in a form and in a manner approved by the Underwriter, provided all expenses thereby incurred will be paid for by the City.
(k) If the information relating to the Wastewater System, the City, its functions, duties and responsibilities contained in the Official Statement is amended or supplemented pursuant to the immediately preceding subsection, at the time of each supplement or amendment thereto and (unless subsequently again supplemented or amended pursuant to such subsection) at all times subsequent thereto up to and including the date of the Closing, the portions of the Official Statement so supplemented or amended (including any financial and statistical data contained therein) will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make such information therein, in the light of the circumstances under which it was presented, not misleading.
(1) The City covenants that it will comply with all tax covenants relating to it in the City Documents and the Tax Certificate of the City. (m) The written information supplied by the City to the Underwriter with respect to the financial information relating to the Wastewater System is true, correct and complete in all material respects for the purposes for which it was supplied. (n) No consent, approval, authorization or other action by a governmental or regulatory agency that has not been obtained is or will be required of the City for the delivery and sale of the Bonds or the consummation of the other transactions contemplated by this Purchase Agreement and the Official Statement, except for such licenses, certificates, approvals, variances or permits which may be necessary for the construction or operation of the Wastewater System which the City has applied for (or will apply for in the ordinary course of business) and expects to receive, and except as may be required under the state securities or blue sky laws in connection with the sale of the Bonds by the Underwriter.
(o) The City will not take or omit to take any action which action or omission will in any way cause the proceeds from the sale of the Bonds to be applied in a manner contrary to that provided in the Indenture and as described in the Official Statement, unless otherwise required by law.
(p) The City will deliver all opinions, certificates, letters and other instruments and documents reasonably required by the Underwriter and this Purchase Agreement. (q) Any certificate of the City delivered to the Underwriter shall be deemed a representation and warranty by the City to the Underwriter as to the statements made therein. (r) Other than as described in the Official Statement, as of the time of acceptance hereof and as of the Closing, the City does not and will not have outstanding any indebtedness which is secured by a lien on the Net Revenues superior to or on a parity with the lien of the Bonds thereon. (s) Between the date of this Purchase Agreement and the date of Closing, the City will not, without the prior written consent of the Underwriter, and except as disclosed in the Official Statement, offer or issue any bonds, notes or other obligations for borrowed money, or incur any material liabilities, direct or contingent payable from the Net Revenues. 12
(t) The City is not presently and as a result of the execution of the City Documents and the sale of the Bonds will not be in violation of any debt limitation, appropriation limitation or any other provision of the California Constitution or statutes or any additional debt or similar provision of any bond, note, contract or other evidence of indebtedness to which the City is a party or to which the City is bound.
(u) Based on a review of its previous undertakings, the City has not, in the last five years, failed to comply in any material respect with its obligations under any continuing disclosure undertaking entered into pursuant to Rule 15c2-12 except as disclosed in the Preliminary Official Statement and the Official Statement. The City will undertake, pursuant to the Continuing Disclosure Agreement to provide annual reports and notices of certain events in accordance with the requirements of Rule 15c2-12. A form of the Continuing Disclosure Agreement is set forth as Appendix E to the Official Statement.
9. The Underwriter has entered into this Purchase Agreement in reliance upon the representations, warranties and agreements of the Authority and the City contained herein, and the opinions of Bond Counsel, Counsel to the Trustee, City Attorney to the City and Counsel to the Authority required hereby. The Underwriter's obligations under this Purchase Agreement are and shall be subject to the following further conditions:
(a) At the time of Closing, this Purchase Agreement, the Indenture, the Installment Purchase Agreement, the Escrow Agreement and the Continuing Disclosure Agreement (collectively the "Legal Documents"), all as described in the Official Statement, shall be in full force and effect as valid and binding agreements between or among the various parties thereto, and the Legal Documents and the Official Statement shall not have been amended, modified or supplemented except as may have been agreed to in writing by the Underwriter, and there shall be in full force and effect such resolutions as, in the opinion of Stradling Yocca Carlson & Rauth LLP ("Bond Counsel"), shall be necessary in connection with the transactions contemplated hereby. (b) At or prior to the Closing, the Underwriter shall receive the following documents, in each case satisfactory in form and substance to them:
(1) The unqualified approving opinion of Bond Counsel, dated the date of Closing, addressed to the Authority, the City and the Underwriter (or a reliance letter to the Underwriter), in substantially the form attached as Appendix C to the Official Statement.
(2) A supplemental opinion of Bond Counsel, dated as of the date of Closing addressed to the Underwriter, in form and substance to the effect that:
(a) The statements and information contained in the Official Statement on the cover page relating to tax exemption, the description of the Bonds and security for the Bonds, and statements under the captions "INTRODUCTION," "THE BONDS," "SECURITY FOR THE BONDS," "TAX MATTERS" and APPENDICES B and C to the extent they purport to summarize information concerning the Bonds and certain provisions of the Legal Documents and the opinion of such counsel, present a fair and accurate summary of such information and such provisions;
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(b) The Bonds are exempt from registration under the Securities Act of 1933, as amended, and the Indenture is exempt from qualification as an Indenture pursuant to the Indenture Act of 1939, as amended; and (c) The Purchase Agreement has been duly authorized, executed and delivered by the Authority and the City, and, assuming due authorization, execution and delivery by the other parties thereto, constitutes legal, valid and binding agreement of the Authority and the City enforceable against each in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally and equitable remedies if equitable remedies are sought, and except no opinion need be expressed as to the enforceability of the indemnification, waiver, choice of law or contributions provisions contained in the Purchase Agreement. (3) The letter of Stradling Yocca Carlson & Rauth LLP, Disclosure Counsel, dated the date of Closing and addressed to the Authority, the City and the Underwriter, to the effect that, based upon the information made available to them in the course of their participation in the preparation of the Official Statement and without passing on and without assuming any responsibility for the accuracy, completeness and fairness of the statements in the Official Statement, and having made no independent investigation or verification thereof, no facts have come to their attention that lead them to believe that, the Preliminary Official Statement as of its date and as of the date of this Purchase Agreement and the Official Statement as of its date and as of the Closing Date (except for any CUSIP data, financial or statistical data or forecasts, numbers, charts, estimates, projections, assumptions or expressions of opinion, any appendices thereto (excluding Appendix E - "FORM OF CONTINUING DISCLOSURE AGREEMENT"), any information about DTC and its book -entry only system or the Insurer, and the Policy, as to which no opinion or view need be expressed) contained or contains any untrue statement of a material fact or omitted or omits to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.
(4) An opinion of Counsel to the Authority, dated the date of Closing in form and substance satisfactory to the Underwriter and Bond Counsel, addressed to the City and the Underwriter, to the effect that:
(i) the Authority is a joint powers authority duly organized and validly existing under the laws of the State of California; (ii) the preparation and distribution of the Official Statement and the Authority Documents have been duly approved by the Authority; (iii) the resolutions of the Authority approving and authorizing the execution and delivery of the Official Statement and the Authority Documents have been duly adopted at meetings of the governing body of the Authority which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting 14
throughout and such resolutions have not been amended or modified and are in full force and effect;
(iv) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or, to the best knowledge of such counsel, threatened against or affecting the Authority, which would adversely impact the Authority's ability to complete the transactions described in and contemplated by the Official Statement, to restrain or enjoin the payments under, or in any way contesting or affecting the validity of the Authority Documents, or the transactions described and defined in the Official Statement wherein an unfavorable decision, ruling or finding would adversely affect the validity and enforceability of the Authority Documents;
(v) the execution and delivery of the Authority Documents and the approval of the Official Statement, and compliance with the provisions thereof and hereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the Authority a breach of or default under any agreement or other instrument to which the Authority is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the Authority is subject; (vi) the Authority Documents and the Official Statement have been duly authorized, executed and delivered by the Authority, and, assuming due authorization, execution and delivery by the other parties thereto, the Authority Documents constitute legal, valid and binding agreements of the Authority enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against public agencies in the State of California;
(vii) no authorization, approval, consent, or other order of the State of California or any other governmental authority or agency within the State of California is required for the valid authorization, execution and delivery of the Authority Documents and the approval of the Official Statement; and (viii) nothing has come to their attention which would lead them to believe that the information relating to the Authority contained in the Official Statement contains an untrue statement or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
(5) An opinion of Counsel to the City, dated the date of Closing in form and substance satisfactory to the Underwriter and Bond Counsel, addressed to the Authority and the Underwriter, to the effect that:
15
(i) the City is a general law city created in accordance with the laws of the State of California;
(ii) the preparation and distribution of the Official Statement and the City Documents have been duly approved by the City; (iii) the resolutions of the City approving and authorizing the execution and delivery of the Official Statement and the City Documents have been duly adopted at meetings of the governing body of the City which were called and held pursuant to law and with all public notice required by law and at which a quorum was present and acting throughout and such resolutions have not been amended or modified and are in full force and effect;
(iv) there is no action, suit, proceeding or investigation at law or in equity before or by any court, public board or body, pending or, to the best knowledge of such counsel, threatened against or affecting the City, which would adversely impact the City's ability to complete the transactions described in and contemplated by the Official Statement, to restrain or enjoin the payments under, or in any way contesting or affecting the validity of the City Documents, or the transactions described and defined in the Official Statement wherein an unfavorable decision, ruling or finding would adversely affect the validity and enforceability of the City Documents; (v) the execution and delivery of the City Documents and the approval of the Official Statement, and compliance with the provisions thereof and hereof, under the circumstances contemplated thereby, do not and will not in any material respect conflict with or constitute on the part of the City a breach of or default under any agreement or other instrument to which the City is a party or by which it is bound or any existing law, regulation, court order or consent decree to which the City is subject; (vi) the City Documents and the Official Statement have been duly authorized, executed and delivered by the City, and, assuming due authorization, execution and delivery by the other parties thereto, the City Documents constitute legal, valid and binding agreements of the City enforceable in accordance with their respective terms, except as the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors' rights generally and by the application of equitable principles if sought and by the limitations on legal remedies imposed on actions against public agencies in the State of California; (vii) no authorization, approval, consent, or other order of the State of California or any other governmental authority or agency within the State of California is required for the valid authorization, execution and delivery of the City Documents and the approval of the Official Statement; 16
(viii) the City's charges and fees with respect to the Wastewater System were duly approved and adopted by the City, and are valid and enforceable at the current levels levied by the City; and (ix) nothing has come to the City Attorney's attention which would lead such attorney to believe that the information relating to the City or the Wastewater System contained in the Official Statement contains an untrue statement or omits to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
(6) The opinion of counsel to the Trustee, dated the date of Closing in form and substance satisfactory to the Underwriter and Bond Counsel, and addressed to the Authority, the City and the Underwriter, to the effect that:
(i) the Trustee is a national banking association duly organized and validly existing under the laws of the United States; (ii) the Trustee has duly authorized the execution and delivery of the Indenture;
(iii) the Indenture has been duly entered into and delivered by the Trustee and assuming due, valid and binding authorization, execution and delivery by the other parties thereto, constitutes the legal, valid and binding obligation of the Trustee enforceable against the Trustee in accordance with its terms, except as the enforceability thereof may be limited by applicable bankruptcy, insolvency or other similar laws affecting the enforcement of creditors' rights generally, or by general principles of equity; (iv) the Trustee has duly authenticated and delivered the Bonds in its capacity as trustee under the Indenture;
(v) acceptance by the Trustee of the duties and obligations under the Indenture and compliance with provisions thereof will not conflict with or constitute a breach of or default under any law or administrative regulation to which the Trustee is subject; and
(vi) all approvals, consents and orders of any governmental authority or agency having jurisdiction in the matter which would constitute a condition precedent to the performance by the Trustee of its duties and obligations under the Indenture have been obtained and are in full force and effect.
(7) An opinion, dated the date of the Closing and addressed to the Underwriter, of Kutak Rock LLP, counsel to the Underwriter ("Underwriter's Counsel"), in such form as may be acceptable to the Underwriter. (8) A certificate, dated the date of Closing, signed by a duly authorized official of the Authority satisfactory in form and substance to the Underwriter and 17
Bond Counsel, (a) confirming as of such date the representations and warranties of the Authority contained in this Purchase Agreement; (b) certifying that the Authority has complied with all agreements, covenants and conditions to be complied with by the Authority at or prior to the Closing under the Authority Documents; and (c) certifying that to the best of such official's knowledge, no event affecting the Authority has occurred since the date of the Official Statement which either makes untrue or incorrect in any material respect as of the Closing the statements or information contained in the Official Statement or is not reflected in the Official Statement but should be reflected therein in order to make the statements and information therein not misleading in any material respect. (9) A certificate or certificates, dated the date of Closing, signed by a duly authorized official of the City satisfactory in form and substance to the Underwriter and Bond Counsel, (a) confirming as of such date the representations and warranties of the City contained in this Purchase Agreement; (b) certifying that the City has complied with all agreements, covenants and conditions to be complied with by the City at or prior to the Closing under the City Documents; and (c) certifying that to the best of such official's knowledge, no event affecting the City has occurred since the date of the Official Statement which either makes untrue or incorrect in any material respect as of the Closing the statements or information contained in the Official Statement or is not reflected in the Official Statement but should be reflected therein in order to make the statements and information therein not misleading in any material respect.
(10) A certificate, dated the date of the Preliminary Official Statement, signed by a duly authorized official of the Authority deeming the Preliminary Official Statement "final" for purposes of Rule 15c2-12.
(11) A certificate, dated the date of the Preliminary Official Statement, signed by a duly authorized official of the City deeming the Preliminary Official Statement "final" for purposes of Rule 15c2-12.
(12) An executed or certified copy of each of the Legal Documents. (13) One counterpart original or copy certified by a duly authorized officer of the City of a complete transcript of all proceedings of the City relating to the approval of the City Documents and the authorization, issuance, sale and delivery of the Bonds, together with a certificate dated as of the date of Closing of a duly authorized officer of the City to the effect that each included resolution is a true, correct and complete copy of the one duly adopted by the Board of Directors of the City and that none have been amended, modified or rescinded since adoption (except as reflected in said transcript or as may have been agreed to in writing by the Underwriter) and is in full force and effect as of the date of Closing. (14) One counterpart original or copy certified by a duly authorized officer of the Authority of a complete transcript of all proceedings of the Authority relating to the approval of the Authority Documents and the authorization, issuance, sale and delivery of the Bonds, together with a certificate dated as of the date of Closing of a duly authorized officer of the Authority to the effect that each included resolution is a 18
true, correct and complete copy of the one duly adopted by the Board of Directors of the Authority and that none have been amended, modified or rescinded since adoption (except as reflected in said transcript or as may have been agreed to in writing by the Underwriter) and is in full force and effect as of the date of Closing. (15) An executed copy of the Official Statement.
(16) A certified copy of the general resolution of the Trustee authorizing the execution and delivery of certain documents by certain officers of the Trustee, which resolution authorizes the execution and delivery of documents such as the Bonds and the Indenture.
(17) A Certificate of the City with respect to the Wastewater System evidencing that the insurance required by the Installment Purchase Agreement has been procured and is in full force and effect.
(18) Tax certifications by the Authority and the City in form and substance acceptable to Bond Counsel.
(19) A certificate or certificates, dated the Closing Date, signed by a duly authorized official of the Trustee and the Escrow Agent satisfactory in form and substance to the Underwriter, to the effect that:
(i) The Trustee and Escrow Agent is duly organized and existing as a national banking association under the laws of the United States of America, having the full corporate power and authority to enter into and perform its duties under the Indenture and Escrow Agreement; (ii) The Trustee and Escrow Agent is duly authorized to enter into the Indenture and Escrow Agreement and has duly executed and delivered the Indenture and Escrow Agreement, and assuming due authorization and execution by the other parties thereto, the Indenture and Escrow Agreement are legal, valid and binding upon the Trustee and Escrow Agent, as applicable, and enforceable against the Trustee and Escrow Agent in accordance with their terms;
(iii) The Trustee has duly authenticated the Bonds under the Indenture and delivered the Bonds to or upon the order of the Underwriter; and
(iv) No consent, approval, authorization or other action by any governmental or regulatory authority having jurisdiction over the banking or trust powers of the Trustee and Escrow Agent that has not been obtained is or will be required for the issuance of the Bonds or the consummation by the Trustee of its obligations under the Indenture and Escrow Agreement. (20) Evidence that the Bonds have been given the ratings set forth in the Official Statement and that such ratings continue in effect as of the date of Closing. 19
(21) The opinion of counsel to the Escrow Agent, dated the Closing Date in form and substance satisfactory to the Underwriter and Bond Counsel, and addressed to the Authority, the City and the Underwriter. (22) The Policy, duly executed by the Insurer.
(23) An opinion of counsel to the Insurer, dated the Closing Date, addressed to the Authority and the Underwriter, in form and substance satisfactory to the Underwriter and Bond Counsel.
(24) A certificate or certificates of the Insurer, dated the Closing Date, as to the accuracy of the information relating to the Insurer and the Policy included in the Official Statement and such other matters reasonably requested by the Underwriter and Bond Counsel.
(25) Evidence that a federal tax information form 8038-G has been prepared for filing with respect to the Bonds.
(26) A verification report related to the refunding of the 2018 Bonds. (27) A defeasance opinion related to the refunding of the 2018 Bonds. (28) A copy of the Notice of Final Sale required to be delivered to the California Debt and Investment Advisory Commission pursuant to Section 8855 of the California Government Code.
(29) Such additional legal opinions, certificates, proceedings, instruments and other documents as Bond Counsel, the Underwriter and Underwriter's Counsel may reasonably request to evidence compliance with legal requirements, the truth and accuracy, as of the time of Closing, of the representations contained herein and in the Official Statement and the due performance or satisfaction by the Trustee and the Authority at or prior to such time of all agreements then to be performed and all conditions then to be satisfied.
(c) All matters relating to this Purchase Agreement, the Bonds and the sale thereof, the Legal Documents and the consummation of the transactions contemplated by this Purchase Agreement shall have been approved by the Underwriter, such approval not to be unreasonably withheld.
If the conditions to the Underwriter's obligations contained in this Purchase Agreement are not satisfied or if the Underwriter's obligations shall be terminated for any reason permitted by this Purchase Agreement, this Purchase Agreement shall terminate and none of the Underwriter, the City nor the Authority shall have any further obligation hereunder.
10. The Underwriter shall have the right to terminate this Purchase Agreement, without liability therefore, by written notification to the Authority and the City if at any time at or prior to the Closing:
(i) Any event shall occur which causes any statement contained in the Official Statement to be materially misleading or results in a failure of 20
the Official Statement to state a material fact necessary to make the statements in the Official Statement, in the light of the circumstances under which they were made, not misleading; or
(ii) Legislation shall be enacted by or introduced in the Congress of the United States or recommended to the Congress for passage by the President of the United States, or the Treasury Department of the United States or the Internal Revenue Service or favorably reported for passage to either House of the Congress by any committee of such House to which such legislation has been referred for consideration, a decision by a court of the United States or of the State or the United States Tax Court shall be rendered, or an order, ruling, regulation (final, temporary or proposed), press release, statement or other form of notice by or on behalf of the Treasury Department of the United States, the Internal Revenue Service or other governmental agency shall be made or proposed, the effect of any or all of which would be to alter, directly or indirectly, federal income taxation upon interest received on obligations of the general character of the Bonds, or the interest on the Bonds as described in the Official Statement, or other action or events shall have transpired which may have the purpose or effect, directly or indirectly, of changing the federal income tax consequences of any of the transactions contemplated herein; or
(iii) Legislation introduced in or enacted (or resolution passed) by the Congress or an order, decree, or injunction issued by any court of competent jurisdiction, or an order, ruling, regulation (final, temporary, or proposed), press release or other form of notice issued or made by or on behalf of the Securities and Exchange Commission, or any other governmental agency having jurisdiction of the subject matter, to the effect that obligations of the general character of the Bonds are not exempt from registration under or other requirements of the Securities Act of 1933, as amended, or that the Indenture is not exempt from qualification under or other requirements of the Trust Indenture Act of 1939, as amended, or that the issuance, offering, or sale of obligations of the general character of the Bonds, as contemplated hereby or by the Official Statement or otherwise, is or would be in violation of the federal securities law as amended and then in effect; or (iv) A general suspension of trading in securities on the New York Stock Exchange or any other national securities exchange, the establishment of minimum or maximum prices on any such national securities exchange, the establishment of material restrictions (not in force as of the date hereof) upon trading securities generally by any governmental authority or any national securities exchange, or any material increase of restrictions now in force (including, with respect to the extension of credit by, or the charge to the net capital requirements of, the Underwriter); or
(v) The declaration of a general banking moratorium by federal, New York or State authorities or a material disruption in securities settlement, payment or clearance services affecting the Bonds shall have occurred; or 21
(vi) Establishment of any new restrictions in securities materially affecting the free market for securities of the same nature as the Bonds (including the imposition of any limitations on interest rates) or the charge to the net capital requirements of the Underwriter established by the New York Stock Exchange, the Securities and Exchange Commission, any other Federal or state agency or the Congress of the United States, or by Executive Order; or
(vii) The occurrence of an adverse event in the affairs of the Authority or the City which, in the opinion of the Underwriter, materially impairs the investment quality of the Bonds; or
(viii) Any amendment to the federal or California Constitution or action by any federal or California court, legislative body, regulatory body or other authority materially adversely affecting the tax status of the Authority or the City, its property, income or securities (or interest thereon), or the ability of the City to execute the Installment Purchase Agreement or the Authority to issue the Bonds and pledge the Authority Revenues as contemplated by the Indenture and the Official Statement; or (ix) There shall have occurred (1) an outbreak or escalation of hostilities or the declaration by the United States of a national emergency or war or (2) any other calamity or crisis in the financial markets of the United States or elsewhere or the escalation of such calamity or crisis; or (x) There shall have occurred any materially adverse change in the affairs or financial position, results of operations or condition, financial or otherwise, of the Authority or the City, other than changes in the ordinary course of business or activity or in the normal operation of the Authority or the City, except as described in the Official Statement; or (xi) Any event occurring, or information becoming known which, in the reasonable judgment of the Underwriter, makes untrue in any material respect any statement or information contained in the Preliminary Official Statement or the Official Statement, or results in the Preliminary Official Statement or the Official Statement containing any untrue statement of a material fact or omitting to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; or
(xii) Any proceeding shall have been commenced or be threatened in writing by the SEC against the Authority or the suspension by the SEC of trading in the outstanding securities of the Authority; or (xiii) An event described in Section 7(j) or 8(j) hereof shall have occurred which, in the reasonable professional judgment of the Underwriter, requires the preparation and publication of a supplement or amendment to the Official Statement; or
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(xiv) Any rating of the Bonds or other obligations of the Insurer by a national rating agency shall have been withdrawn or downgraded or placed on negative outlook or negative watch; or
(xv) Any rating of the Bonds or other obligations of the Authority or the City by a national rating agency shall have been withdrawn or downgraded or placed on negative outlook or negative watch.
11. Performance by the Authority and the City of their respective obligations under this Purchase Agreement is conditioned upon (i) performance by the Underwriter of its obligations hereunder, and (ii) receipt by the Underwriter of all opinions and certificates to be delivered at Closing by persons and entities other than the Authority or the City.
12. After the Closing and until the End Date (a) neither the Authority nor the City will adopt any amendment of or supplement to the Official Statement to which the Underwriter shall object in writing or which shall be disapproved by the Underwriter, and (b) if any event relating to or affecting the Authority or the City shall occur as a result of which it is necessary, in the opinion of the Underwriter, to amend or supplement the Official Statement in order to make the Official Statement not misleading in the light of the circumstances existing at the time it is delivered to an initial purchaser of the Bonds, and the Authority will forthwith prepare and furnish to the Underwriter a reasonable number of copies of an amendment of or supplement to the Official Statement (in form and substance satisfactory to the Underwriter) which will amend or supplement the Official Statement so that it will not contain an untrue statement of a material fact necessary in order to make the statements therein, in the light of the circumstances existing at the time the Official Statement is delivered to an initial purchaser of the Bonds, not misleading. The costs of preparing any necessary amendment or supplement to the Official Statement to be utilized until the End Date shall be borne by the Authority and any costs incurred thereafter incident to amending or supplementing the Official Statement shall be borne by the Underwriter. For the purposes of this Section, the Authority will furnish such information with respect to itself as the Underwriter may from time to time request.
13. (a) The Underwriter shall be under no obligation to pay, and the City or Authority shall pay or cause to be paid out of the proceeds of the Bonds, all expenses incident to the performance of the Authority's and City's obligations hereunder, including but not limited to: the cost of photocopying and delivering the Bonds to the Underwriter; the cost of preparing, printing (and/or word processing and reproducing), distributing and delivering the City Documents and the Authority Documents, and the cost of printing, distributing and delivering the Preliminary Official Statement and the Official Statement in such reasonable quantities as requested by the Underwriter; the premium with respect to the Policy; and the fees and disbursements of Bond Counsel, Disclosure Counsel, the Municipal Advisor, any accountants, financial advisors or other engineers or experts or consultants the Authority or the City have retained in connection with the Bonds and expenses (included in the expense component of the Underwriter's spread) incurred on behalf of the Authority or City officers or employees which are incidental to implementing this Purchase Agreement, including, but not limited to, meals, transportation, and lodging of those officers or employees. (b) Whether or not the Bonds are delivered to the Underwriter as set forth herein, neither the Authority nor the City shall be under any obligation to pay, and the Authority and City shall not pay, any expenses incurred by the Underwriter in connection with its public offering and distribution of the Bonds (except those specifically enumerated in subsection (a) of this section), 23
including any advertising expenses and the fees of the California Debt and Investment Advisory Commission, the cost of preparation of any "blue sky" or legal investment memoranda, and the fees and disbursements of Underwriter's Counsel.
14. Any notice or other communication to be given to the Underwriter may be given by delivering the same to Stifel, Nicolaus & Company, Incorporated 2121 Avenue of the Stars, Suite 2150, Los Angeles, California 90067, Attention: Public Finance Department. Any notice or other communication to be given to the Authority or the City may be given by delivering the same to addresses initially provided herein, Attention: Executive Director with respect to the Authority and Attention: City Manager with respect to the City. The approval of the Underwriter when required hereunder or the determination of satisfaction as to any document referred to herein shall be in writing signed by the Underwriter and delivered to you.
15. This Purchase Agreement is made solely for the benefit of the Authority, the City and the Underwriter (including the successors or assigns thereof) and no other person shall acquire or have any right hereunder or by virtue hereof.
16. This Purchase Agreement may be executed by the parties hereto in separate counterparts, each of which such counterparts shall together constitute but one and the same instrument.
17. The representations and warranties of the Authority and the City set forth in or made pursuant to this Purchase Agreement shall not be deemed to have been discharged, satisfied or otherwise rendered void by reason of the Closing or termination of this Purchase Agreement and regardless of any investigations made by or on behalf of the Underwriter (or statements as to the results of such investigations) concerning such representations and warranties of the Authority and the City and regardless of delivery of and payment for the Bonds.
18. The primary role of the Underwriter, as underwriter, is to purchase the Bonds for resale to investors in an arms -length commercial transaction among the City, the Authority and the Underwriter. The Underwriter, as underwriter, has financial and other interests that differ from those of the Authority and the City.
19. This Purchase Agreement shall become effective and binding upon the respective parties hereto upon the execution of the acceptance hereof by the Authority, the City and the Underwriter, and shall be valid and enforceable as of the time of such acceptance.
20. This Purchase Agreement shall be governed by the laws of the State of California.
This Purchase Agreement shall not be assigned by either party hereto.
21. This Purchase Agreement supersedes and replaces all prior negotiations, agreements and understandings between the parties hereto in relation to the sale of Bonds by the Authority and the City and represents the entire agreement of the parties as to the subject matter herein. [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
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22. Any provision of this Purchase Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Purchase Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.
STIFEL, NICOLAUS & COMPANY,
INCORPORATED
By:
Managing Director
The foregoing is hereby agreed to and accepted as of the date first above written:
BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
By:
Authorized Officer
Time of Execution: p.m. California time
CITY OF BEAU1VIONT
By:
Authorized Officer
Time of Execution: p.m. California time
S-1
EXHIBIT A
BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS, SERIES 2025A
Subject to
10% Test Hold -The -
Maturity Principal Interest 10% Test Not Offering -
(September 1) Amount Rate Yield Price Satisfied* Satisfied Price Rule 2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
20 (T)
(T) Term Bond.
(C) Priced to optional call at [par] on September 1, 20_. (I) Insured Bond.
At the time of execution of this Purchase Agreement and assuming orders are confirmed by the close of the business day immediately following the date of this Purchase Agreement.
Exhibit A
EXHIBIT B
BEAUMONT PUBLIC IMPROVEMENT AUTHORITY
WASTEWATER REVENUE REFUNDING BONDS, SERIES 2025A
FORM OF ISSUE PRICE CERTIFICATE
The undersigned, on behalf of Stifel, Nicolaus & Company, Incorporated ("Stifel") hereby certifies as set forth below with respect to the sale and issuance of the above -captioned bonds (the "Bonds").
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.
2. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "General Rule Maturities."
(b) Issuer means the Beaumont Public Improvement Authority. (c) Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as separate maturities.
(d) Public means any person (including an individual, trust, estate, partnership, association, company, or corporation) other than an Underwriter or a related party to an Underwriter.
The term "related party" for purposes of this certificate generally means any two or more persons who have greater than 50 percent common ownership, directly or indirectly. (e) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer (or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certificate represents Stifel's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury Regulations thereunder.
The undersigned understands that the foregoing information will be relied upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance with the federal income tax rules affecting the Bonds, and by Stradling Yocca Carlson & Rauth LLP in connection with rendering its opinion that the interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form 8038-G, and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
Exhibit B
STIFEL, NICOLAUS & COMPANY,
INCORPORATED
By:
Name:
By:
Name:
Dated: [Closing Date]
Exhibit B
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
(To be attached)
Exhibit B
BEAUMONT
City of Beaumont
Proposed Refunding of the Outstanding Beaumont Public
Improvement Authority Wastewater Revenue Bonds,
Series 2018A
June 3, 2025
r St a lin
STIFEL
inancial Solutions Attorneys at Law
Table of Contents
1. Financing Overview
2. Items Subject to Council Approval
3. Financing Details and Tentative Schedule
1. Financing Overview
Background — 2018A Bonds
In September 2018, the Beaumont Public Improvement Authority (Authority) issued $81,105,000 of the 2018A Bonds to finance improvements to the City -owned Wastewater Treatment Plant 2018A Bonds:
Payable from revenues of the wastewater system
$79,290,000 of par amount outstanding
Final term of 2049 and a final interest rate of 5.00%
Optional redemption date of September 1, 2025, at a redemption price of 103%
4 Proposed 2025 Bonds
Proposed 2025 Bonds will be issued through the Authority (similar structure as 2018A Bonds)
Final maturity of September 1, 2049 (no extension of final maturity) Annual debt payments will not exceed existing 2018A Bond payments 2025 Bonds plan of finance includes:
Refunding of the 2018A Bonds and
Financing of certain capital improvements to the wastewater system It is expected that the 2025 Bonds will receive at least the same rating as the 2018A Bonds (A+ from S&P) and qualify for bond insurance
2. Items Subject to Council Approval
Items Subject to Approval
Resolutions of the City Council of the City of Beaumont and the Board of Directors of the Beaumont Public Improvement Authority Authorizing the issuance of the 2025 Bonds in an amount not to exceed $80,000,000
Approving certain documents and taking certain other actions Documents:
L Preliminary Official Statement
Bond Indenture
i Installment Purchase Agreement
Escrow Agreement
i Bond Purchase Contract
3. Financing Details and Schedule
Municipal Market Overview
30 -year tax-exempt interest rate (AAA MMD) has increased by +0.70% since 1/1 and by +0.56% since Council meeting 3/10
30 -Year AAA MMD Yield 2025 YTD
4.9% Implementation
of Global Tariffs
4.7% (4.31% on 4/5)
4.5% Council approval to move
forward with refinancing
4.3% (3.96% on 3/10)
4.1%
3.9%
3.7% \ 3.82%
(as of 1/1)
3.5%
Jan -25
Feb -25 Mar -25
4.80% (2025
High on 4/9)
Court -ordered
block of Tariffs
(4.52% on 5/29)
Apr -25 May -25
9 Source: Bloomberg as of May 29, 2025.
Updated Financing Statistics
Based on market conditions as of 5/29, a refunding of the outstanding 2018A Bonds is estimated to generate 1.7% NPV savings (below the City's threshold of 3%)
City's plan is to leverage the savings to finance capital improvements Estimated $1.2 million based on market conditions as of 5/29 Based on 5/29 Market Conditions
Par Amount
True Interest Cost
New Money Generated
Net PV Savings ($)*
Net PV Savings (%)*
Total Cash Flow Savings*
Average Annual Savings*
$72,360,000
4.39%
1,195,614
1,271,951
1.74%
1,995,456
79,818
All number are preliminary and subject to change. Based on market condiFc g@s 1M1e5y46,127Q. *For illustration purposes only. The City plans to leverage the savings to generate new money for capital improvements.
Estimated Costs of Issuance*
Estimated Issuance Costs*
Role
Party Total
Bond/Disclosure Counsel Stradling $85,000
Municipal Advisor Urban Futures, Inc. 62,500
Trustee Zions Bank 3,000
Trustee's Counsel Dorsey 2,250
Rating Agency Standard & Poor's 50,000
Verification Agent Causey 2,500
Printer AVIA 2,500
Underwriter Stifel 181,520
Contingency 7,250
Estimated Costs $396,520
*Preliminary and subject to change.
Financing Schedule
Assuming Council approval this evening, staff and the financing team will continue to monitor market conditions
Assuming market conditions are favorable (support 3% NPV savings), the financing team will proceed with next steps:
Post preliminary official statement (make available to
prospective investors)
Price the 2025 Bonds
Close the 2025 Bonds
17 BEAUMONT
-C A L I F O R N I A
Staff Report
TO: City Council
FROM: Doug Story, Community Services Director
DATE June 3, 2025
SUBJECT: Adopt the Parks and Community Services Master Plan Description Capital Improvement Project P-17 — Parks and Community Services Master Plan.
Background and Analysis:
In 2023, the City of Beaumont initiated the development of a Parks and Community Services Master Plan in response to the City's continued growth and increasing demand for quality parks, recreational programming, and equitable public space access. The purpose of the plan is to establish a clear, community -driven roadmap to guide decision - making for park improvements, facility development, programming enhancements, and long-term investment priorities over the next decade.
The planning process included a robust series of community engagement activities, facility evaluations, and data collection efforts, culminating in a final plan that reflects the needs and aspirations of Beaumont residents.
Key Elements of the Planning Process:
• Statistically Valid Survey: 416 households responded to a city-wide survey, representing a 95% confidence level with a ±4.7% margin of error. The survey revealed:
o 60% of residents rate Beaumont parks as "Excellent" or "Good" (compared to 79% nationally)
o 74% of residents rate the quality of programs as "Excellent" or "Good" (national average: 80%)
o 43% participated in a city program in the past year (above the national average of 32%)
o Barriers to participation included lack of awareness (33%), being too busy (28%), and inconvenient times (16%)
• Park and Facility Assessments: Each park was evaluated on condition, accessibility, safety, maintenance, and user experience using a standardized 0-5 scale. This helped identify both deficiencies and high -performing sites. • Equity Mapping and Level of Service Analysis: Advanced GIS mapping tools were used to identify underserved areas and guide recommendations for equitable park access and service distribution.
• Public Engagement: The planning process was guided by community feedback gathered through in -person events, stakeholder interviews, and a statistically valid survey. Outreach emphasized inclusivity and representation across all demographic groups.
• Recommended Improvement Plan (RIP): Based on the needs assessment and public input, the plan outlines priority projects and improvements over the next 10 years to address critical gaps and enhance community offerings.
Mission, Vision, and Values:
The Master Plan process also included an update to the department's guiding principles:
• Mission: To Elevate Community
• Vision: Parks with Purpose. Recreation with Heart. Community at the Core. • Core Values: Teamwork, Innovation, Inclusion, Service Excellence On April 28, 2025, staff presented key findings of the Parks and Community Services Master Plan to the Parks and Recreation Committee. Based on the feedback received and the comprehensive analysis conducted, it is now staff's recommendation that the City Council adopt the Parks and Community Services Master Plan as presented.
The Parks and Community Services Master Plan will provide a strategic framework to guide the Community Services Department in future planning, programming, capital improvement prioritization, and resource allocation. The plan will serve as a foundational document to support community needs, enhance recreational opportunities, and position the City to pursue and remain competitive for grant funding.
Fiscal Impact:
The cost to prepare this staff report is estimated to be $580.
Funding for this project was provided through Capital Improvement Project No. P-17.
There is no further immediate fiscal impact, however, this document outlines plans for the City's future investments and capital improvement projects for the City. The implementation of this plan will be contingent upon the City's ability to allocate and secure funding to execute the recommended improvements and projects.
CIP P-17 Parks Master Plan Funding Summary
Estimated Project Cost= $250,000
CFD, $250,000 ,
100%
CIP P-17 Parks Master Plan Funding Summary
Project
Component
Budget Encumbered
Paid to Remaining
Date Budget
Project Management
Preliminary Services
Environmental
Design
Permits
$250,000 $(249,980) $(179,668) $20
Right -of -Way
Construction
Construction Management
Equipment
I
Total
$250,000
$20
The encumbered amount is expected to be fully expended upon receipt and payment of the final invoice for this project.
Recommended Action:
Adopt the Parks and Community Services Master Plan as presented.
Attachments:
A. Final Parks and Community Services Master Plan
B. Master Plan PowerPoint Presentation
PARKS A N D
BEAUM0NT
RECREATION CITY OF UEUMNT
PARKS & COMMUNITY SERVICES
MASTER PLAN
JUNE 2025
PARKS WITH PURPOSE I RECREATION WITH HEART I COMMUNITY AT THE CORE
PARKS & COMMUNITY SERVICES MASTER PLAN
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ACKNOWLEDGEMENTS
ADOPTED BY THE CITY COUNCIL ON JUNE 3, 2025
THANK YOU TO THE ENTIRE BEAUMONT COMMUNITY FOR YOUR INPUT THROUGHOUT THE
DEVELOPMENT OF TH/S PLAN
BEAUMONT CITY COUNCIL
Mr. Mike Lara, Mayor
Ms. Jessica Voigt, Mayor Pro Tem
Mr. Lloyd White, Councilmember
Mr. Julio Martinez I I I, Councilmember
Mr. David Fenn, Councilmember
BEAUMONT PARKS & COMMUNITY SERVICES EMPLOYEES (PROJECT TEAM) Mr. Doug Story, Director
Ms. Ashley Starr, Recreation Manager
Mr. Kevin Norville, Grounds/Parks/Facilities Manager
Mr. Matthew Mendoza, Management Analyst
CONSULTING TEAM
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Neelay Bhatt, Founder & CEO of Next Practice Partners
Jason Elissalde, Vice President, Next Practice Partners L ?. N D S ,' L L
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Doug Grove, President, RHA Landscape Architects -Planners Arielle Talley, GIS Technician, RHA Landscape Architects -Planners le ETC
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CHAPTER ONE EXECUTIVE SUMMARY 6
1.1 INTRODUCTION 6
1.2 VALUES, VISION, MISSION & BIG MOVES 7
1.3 COMMUNITY PROFILE 9
1.4 PUBLIC INPUT SUMMARY 11
1.5 RECREATION PROGRAM ASSESSMENT 13
1.6 PARK AND FACILITY EVALUATIONS 15
1.7 EQUITY MAPS 16
1.8 RECOMMENDED PARK IMPROVEMENTS PLAN 18
1.9 REVENUE AND FUNDING STRATEGIES 18
1.10 CONCLUSION 20
CHAPTER TWO COMMUNITY PROFILE 21
2.1 OVERVIEW 21
2.2 LIVABILITY AND ACCESS 21
2.3 DEMOGRAPHICS 25
2.4 RECREATIONAL TRENDS 34
2.5 KEY TAKEAWAYS - OVERALL 39
CHAPTER THREE PUBLIC INPUT SUMMARY 40
3.1 KEY LEADER INTERVIEWS & FOCUS GROUPS 41
3.2 PUBLIC COMMUNITY FORUMS 43
3.3 STATISTICALLY -VALID SURVEY 45
3.4 SURVEY COMPARISON ANALYSIS 51
CHAPTER FOUR RESOURCE ANALYSIS 62
4.1 RECREATION PROGRAM ASSESSMENT 62
4.2 PARK AND FACILITY EVALUATIONS 78
4.3 INVENTORY, ASSESSMENT, AND LEVELS OF SERVICE 86
4.4 EQUITY MAPPING 88
4.5 RECOMMENDED PARK IMPROVEMENTS PLAN 106
4.6 REVENUE & FUNDING STRATEGIES 110
CHAPTER FIVE VISIONING AND KEY RECOMMENDATIONS 113
5.1 MISSION 113
5.2 VISION STATEMENT 113
5.3 VALUES 114
5.4 BIG MOVES 115
CHAPTER SIX CONCLUSION 117
CHAPTER SEVEN APPENDICES 118
APPENDIX A - STATISTICALLY VALID SURVEY CHARTS & GRAPHS 119 APPENDIX B - ONLINE COMMUNITY SURVEY CHARTS & GRAPHS 148 APPENDIX C - PROGRAM INVENTORY 167
APPENDIX D - SIMILAR PROVIDERS 169
APPENDIX E - PARK & FACILITY EVALUTATIONS 170
APPENDIX G - NATIONAL TRENDS IN RECREATION 215
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CHAPTER ONE EXECUTIVE SUMMARY
1.1 INTRODUCTION
This Plan outlines a shared vision for the future of Beaumont's parks, recreation, and community services. Shaped by community values and emerging needs, it provides a clear path for delivering innovative, accessible, and inclusive programs that enhance quality of life.
Grounded in the departments vision of Parks with Purpose, Recreation with Heart, and Community at the Core, the Plan focuses on creating vibrant spaces, meaningful programs, and strong community connections.
Through this Plan, Beaumont remains committed to supporting wellness, promoting environmental stewardship, and building a sense of belonging for all residents —today and for future generations.
This Plan is guided by the following key goals:
• Engage the Community: Conduct inclusive outreach to understand the current needs and priorities of Beaumont residents.
• Embrace Innovation: Identify emerging trends and best practices to advance Beaumont's parks and community services.
• Promote Equity and Access: Ensure all residents have equitable access to parks, facilities, and programs across the city.
• Strengthen Resources: Position the City for future funding and partnership opportunities that support long-term growth.
• Build a Shared Vision: Collaborate with the community to create a vision rooted in equity, inclusion, and belonging.
� ? A Pf'1UT
Beaumont is a thriving community in Riverside County known for its scenic landscapes, rich history, and welcoming atmosphere. As one of the fastest -growing cities in the region, Beaumont is dedicated to maintaining a high quality of life by offering a wide range of parks, recreational facilities, and community programs that serve residents of all ages and backgrounds.
Beaumont's parks and recreation system plays a vital role in promoting active, healthy lifestyles and strengthening community bonds. With beautifully maintained parks, walking trails, sports fields, and a modern community center, the city provides safe, accessible spaces for recreation, cultural events, fitness programs, and social gatherings. These amenities help create a sense of belonging and pride throughout the community.
Looking ahead, Beaumont is committed to meeting the evolving needs of its growing population through thoughtful planning, strategic investments, and a focus on equity and I
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inclusion. By expanding park spaces, enhancing recreational offerings, and fostering partnerships, the city is building a vibrant and connected community where everyone has the opportunity to thrive.
1.2 VALUES, VISION, MISSION & BIG MOVES
^ES
The Department staff affirmed their continued emphasis on embodying the values of Teamwork, Innovation, Inclusion and Service Excellence in their day-to-day operations and how they plan for the future.
410
INCLUSION
("tr)v
INNOVATION
0*
SERVICE
EXCELLENCE
The updated vision statement for the Department is
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Parks with Purpose.
Recreation with Heart.
Community at the Core.
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1.2.3 MISSION
The updated mission statement for the Department is
To Elevate Community
1.2.4 BIG MOVES
EXPAND AND IMPROVE RECREATION FACILITIES
• Develop a new, state-of-the-art recreation center with a pool and sports complex. • Upgrade and maintain parks, courts, trails, lighting, and fields to meet growing community needs.
• Implement park upgrades, including restroom improvements and shade structures. • Improve access to drop-off programs and community spaces.
INCREASE STAFFING AND WORKFORCE DEVELOPMENT
• Hire more full-time and part-time recreation staff.
• Establish clear job classifications and career pathways to enhance staff retention. • Create dedicated training and certification programs for recreation and maintenance staff.
• Provide more full-time opportunities for specialized recreation positions.
ENHANCE COMMUNITY ENGAGEMENT & EVENTS
• Organize more community events to increase participation and engagement. • Improve advertising and transparency of recreation programs through better outreach strategies.
• Launch targeted awareness and marketing campaigns to boost program participation. • Implement advertising events and sponsorship opportunities for sustainable funding.
IMPROVE INFRASTRUCTURE & MAINTENANCE
• Address critical park infrastructure needs, including bathroom renovations, shade structures, and lighting improvements.
• Expand equipment and facilities, such as mowers and maintenance vehicles, to ensure efficiency.
• Upgrade irrigation systems and landscaping to enhance park aesthetics and usability. • Implement a long-term capital improvement plan for sustainable infrastructure growth.
SECURE SUSTAINABLE FUNDING & INVESTMENT
• Explore advertising and sponsorship opportunities to support facility improvements. • Introduce a fee structure for specialized facilities like the new recreation center with a pool.
• Secure grants and alternative funding sources to expand recreation offerings. • Advocate for increased funding and community investment through public engagement and partnerships.
A full summary of the visioning process can be found in CHAPTER 5.
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1.3 COMMUNITY PROFILE
2023 Demographic
Comparison
Beaumont, CA
California
United States
Population
Annual Growth Rate
(2020-2023)
3.38%
0.43%
0.64%
Projected Annual
Growth Rate
(2023-2038)
1.79%
0.39%
0.52%
Households
Annual Growth Rate
(2020-2022)
2.96%
0.64%
0.73%
Average Household
Size
3.17 2.85
2.55 Age
Segment
Distribution
Ages 0-17
26%
22%
22%
Ages 18-34
19%
25%
23%
Azes 35-54
25%
25%
25%
Ages 55-74
21%
21%
23%
Ages 75+
10%
6%
7%
Race Distribution
White Alone
44.4%
39.6%
61.0%
Black Alone
8.0%
5.7%
12.4%
American Indian
1.8%
1.6%
1.1%
Asian
8.8%
16.0%
6.1%
Pacific Islander
0.2%
0.4%
0.2%
Some other Race
20.1%
21.8%
8.6%
Two or More Races
16.6%
14.9%
10.6%
LHispanic/
Latino
Hispanic / Latino
Origin (any race)
43.7%
40.6%
19.0%
All Others
56.3%
59.4%
81.0%
v
E,
V V
E L3
ea
-c
U
Per Capita
Income
$35,995
$45,201
$40,363
Median Household
Income
$94,398
$89,455
$72,414
Foreign Born
17.4%
26.5%
13.6%
F,
' •L
Language other Than
English Spoken at
Home
32.6%
43.9%
21.7%
o ,
With a Disability
7.0%
6.8%
8.7%
t
Q L)
No Health Insurance
7.5%
8.1%
9.8%
Persons in Poverty
8.8%
12.3%
11.6%
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The Community Profile provides critical insights into the demographic, economic, and environmental characteristics of Beaumont, helping to shape responsive and equitable parks and recreation strategies.
1.3.1 LIVABILITY AND ACCESS
• Beaumont's overall cost of living is 27% above the national average but remains more affordable than most of California.
• Only 48% of residents live within a 10 -minute walk of a park (vs. 55% national median). • A Tree Equity Score of 61 reveals significant canopy gaps —particularly in neighborhoods with higher percentages of residents of color.
1.3.2_ fFMnGPAPII
• Rapid growth: population rose at 3.76% annually (2010-20) and is projected to reach 71,805 by 2038.
• Youthful profile: ages 0-17 and 35-54 will each represent -25% of the population in 15 years.
• Majority -minority city: non-White populations now exceed White Alone, and Hispanic/Latino share is -44% (projected to reach 48%). 11 7. 7. IPOrriR/Ar AM In 7irThOHITv
• Per capita income ($35,995) trails state and national averages, but median household income ($94,398) is higher —reflecting larger household sizes. • Lower rates of poverty (8.8%) and uninsured families (7.5%) than state/national averages. • Higher foreign -born (17.4%) and non -English-speaking households (32.6%) point to a need for multilingual outreach.
1.3.4 P -CREATION TREADS
• Above -average Market Potential Index (MPI) for most sports, fitness, and commercial recreation activities (e.g., golf 115; Zumba 116; mountain biking 117). • Recreation spending also exceeds national norms, signaling strong demand for equipment and programming.
1.3.5 KEY TAKEAWAYS
Access Gap: Less than half of Beaumont residents have a park within a 10 -minute walk, underscoring a need for new pocket parks and trail connections.
Canopy Inequity: Disparities in tree cover disproportionately affect communities of color — planting and maintenance must be prioritized in underserved areas.
Family & Youth Focus: With large percentages of children and mid -career adults, programming should emphasize family -friendly, youth, and intergenerational offerings.
Cultural Relevance: Beaumont's growing Hispanic/Latino and foreign -born populations call for inclusive, bilingual communications and culturally tailored programs.
Economic Resilience: High household incomes but moderate individual earnings suggest opportunity to fund user -fee programs while ensuring affordability for lower -income households.
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Active Lifestyles: Strong local interest in a broad range of sports and fitness activities supports expanding courts, trails, and specialized facilities (e.g., pickleball, rock -climbing walls).
Strategic Equity: Future investments should balance systemwide needs (acres, facilities) with targeted equity interventions —especially tree canopy, park proximity, and multilingual outreach.
Full community profile can be found in CHAPTER 2.
1.4 PUBLIC INPUT SUMMARY
800 +
PARTICI PANTS
416 364
STATISTICALLY VALID SURVEYS
ONLINE COMMUNITY SURVEYS
23 KEY LEADER/STAKEHOLDER
INTERVIEWS & FOCUS GROUPS
2 PUBLIC INPUT MEETINGS
To guide a Parks & Community Services Master Plan rooted in community needs, the City of Beaumont conducted a robust public input process involving over 800 voices from across the community. Engagement efforts included 23 key leader interviews and focus groups, two public forums, an online community survey, and a statistically valid survey conducted by ETC Institute.
Collectively, this process ensured that a wide range of perspectives shaped the City's vision for its parks, programs, and facilities.
1.4.1 WHAT WE HEARD
Across all engagement formats, five consistent themes emerged:
• Strong community pride in parks and programs: Residents praised the City's small-town feel, signature events, and well -used, family -friendly spaces. • Demand for expanded facilities: There is clear interest in building new amenities — including a community center with a pool, additional sports courts, and shaded picnic areas —to serve a growing population.
• Commitment to inclusion and identity: Stakeholders voiced the importance of making parks welcoming for all ages and cultures, and leveraging parks to build community identity.
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• Maintenance and staffing standards: Residents and staff alike identified a need for improved maintenance standards, safety enhancements, and sustainable staffing models. • Desire for a clear, future -focused plan: Many participants emphasized the need for a long-term, visionary roadmap that aligns with Beaumont's growth and ensures lasting impact.
1.4.2 KEY 1-INDING5 BY Ivlt I Y�C�Le
• Key Leader Interviews and Focus Groups highlighted the City's strong partnerships, dedicated staff, and inclusive programming, while also emphasizing the need for new infrastructure, improved maintenance, and better long-range planning. • Public Community Forums revealed a community that actively uses its parks (82% visit weekly), but identified a lack of amenities and restrooms as major barriers. Residents expressed high interest in adult recreation, sports courts, and beautification, while strongly preferring digital outreach through social media and the City website. • Statistically Valid Survey (ETC Institute) found that 81% of households visited a park or facility in the past year and 43% participated in a program. Top unmet facility needs included shade/trees, large community parks, and splash pads. Top unmet program needs included adult fitness/wellness, cultural events, and 50+ activities. The highest funding priorities were improving existing parks and building trails, with 44% of respondents supporting increased funding.
• Online Community Survey mirrored many of the statistically valid survey's results, but tended to overrepresent newer and female residents. It echoed similar priorities around maintenance, expanded programs, and better communication.
1.4.3 KEY TAKEAWAYS
• Beaumont residents are highly engaged and value their park system. Across all input methods, people expressed a deep appreciation for community events, facilities, and staff.
• Facility expansion and equity are essential. A new community center and better geographic access to parks are top priorities, especially west of the Chatigny Recreation Center.
•
• There is strong alignment between what the community values and what it's willing to support. Residents expressed openness to increased funding for the right investments. • Clear communication and inclusive planning are critical. Participants expect to be kept informed and want programs that reflect the City's growing diversity.
This Master Plan must meet the moment. As Beaumont grows, the City has a unique opportunity to build a park system that reflects its evolving identity, fosters belonging, and enhances quality of life for all.
Full Public Input Summary can be found in CHAPTER 3.
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1.5 RECREATION PROGRAM ASSESSMENT
Core
Program
Areas
Special
Events
Senior
Services
The Recreation Program Assessment evaluates the City of Beaumont's current program offerings, their alignment with community needs, and their effectiveness in serving a growing and diverse population. With strong community participation, a focus on inclusivity, and a high proportion of subsidized programs, Beaumont is well -positioned to build on its strengths while strategically expanding offerings to ensure financial sustainability and equitable access.
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• High Community Demand for Wellness and Enrichment: Adult fitness and wellness programs, community events, 50+ activities, swim lessons, and exercise classes received the highest priority ratings from residents, reflecting strong interest in health, cultural enrichment, and lifelong recreation.
• Strong Emphasis on Inclusivity: Beaumont offers 100% of programs as All Abilities, exceeding national benchmarks and reinforcing its commitment to accessibility. Most offerings are multigenerational, with Senior Services providing targeted engagement for older adults.
• Balanced Program Portfolio with Growth Opportunities: Nearly half (46%) of offerings are new or rising, demonstrating innovation and responsiveness. However, higher -than - average rates of declining (11%) and cancelled (12%) programs suggest opportunities for refinement and reallocation of resources.
• Significant Investment in Community -Oriented Programming: Programs classified as Community Benefit (44%) and Community -Individual Blend (44%) dominate the City's portfolio. Individual Benefit programs make up only 13%, well below the national average, indicating potential to expand specialized, fee -based offerings. • Subsidy -Heavy Cost Recovery Model: Fully subsidized programs comprise 68% of offerings, with no current self-sufficient or revenue -generating programs. While this supports access, diversifying funding strategies is essential for long-term sustainability.
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• Strong Staff Leadership with Partnership Potential: Staff -directed programs make up 57% of offerings, showing strength in internal delivery. However, Cooperative programs account for just 6% (compared to a 19% national average), suggesting room to strengthen partnerships with nonprofits, businesses, and regional partners. • Marketing and Digital Engagement Needs Expansion: Social media engagement is strong for events and cultural celebrations, but limited video use, inconsistent interactivity, and underutilization of channels like YouTube and blogs present opportunities to deepen community connection. Website upgrades —such as online registration and interactive maps —would further improve accessibility.
1„7 vr-7Y TAME Vc"
Beaumont excels at delivering inclusive, multigenerational programming rooted in community values.
• There is a clear opportunity to expand skill -based, fee -supported, and revenue - generating programs to diversify funding.
• Refining declining offerings and leveraging cooperative partnerships will enhance program variety and reach.
• Modernizing digital communication and improving online tools will strengthen community engagement and convenience.
Together, these findings provide a roadmap for growing a resilient, accessible, and future -ready recreation system that continues to reflect the needs and spirit of Beaumont.
Full Program Assessment can be found in SECTION 4.1
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1.6 PARK AND FACILITY EVALUATIONS
The evaluation of park assets within the City of Beaumont is a cornerstone of our strategic planning and maintenance scheduling efforts. Each park and its amenities are carefully assessed through thorough field observations by our dedicated staff, resulting in a comprehensive grading based on current conditions. This systematic process ensures that we understand the performance of individual assets, rather than evaluating the park system as a whole.
Our evaluation process uses a qualitative grading scale, complemented by numerical scores, to reflect both the quantity and quality of recreational opportunities available. This approach facilitates transparent prioritization for repairs, upgrades, and future enhancements. Each park is rated consistently and comparatively against similar facilities across the system.
Amenity Rating Scale
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GREATSite amenities are in excellent
condition with little or no
(4-5)
maintenance issues.
GOOD
(3)
Site amenities are in good condition
with only minor maintenance
problems. Issues are primarily
due to age and heavy use.
FAIR
(2)
Site amenities are in fair condition
and indicate ongoing maintenance
challenges, generally related to
age and heavy usage.
POOR
(0-1)
Site amenities are in poor condition,
showing clear and persistent
maintenance problems that may
lead to suspended use for repair or
replacement.
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Park Evaluation Categories
ACCESS AND CONNECTIVITY
al
Evaluation includes adjacent trails or trailheads,
street crossings, sidewalks, internal park circu-
lation, signage, and overall accessibility for
all users.
CONDITION AND FUNCTIONALITY
Assessment of the physical state and operational
status of individual amenities, tree canopy and
vegetation appearance, paved surfaces, park
lighting, and furniture.
SAFETY AND COMFORT
Review of visibility, sightlines, active use areas,
lighting adequacy, evidence of misuse, navigation
ease, proximity to roads, physical hazards, and
slope edges.
_..,1
MAINTENANCE
Identification of maintenance concerns that could
impact the continued success, safety, and usa-
bility of the park amenities.
Full Park and Facility Evaluations can be found in SECTION 4.2.
1.7 EQUITY MAPS
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Service area maps and standards allow the City of Beaumont to assess how parks and recreation amenities are distributed across the community and whether they align with population density and neighborhood needs. These maps are based on recommended levels of service for each park and amenity type and help identify areas that may be underserved or oversupplied.
By comparing geographic access to population -based standards, the City can pinpoint gaps in service and make informed decisions about future investments. This ensures that capital improvement efforts not only address system -wide needs but also promote equitable access to parks and facilities for all residents. The different service area rings highlight the reach of various providers, reflecting the broader network of resources available to the Beaumont community.
City of Beaumont, California
Parks with Overall Assessment Scores
42 Community Parks Recommended Level: 2 Acres /1,000 People
BEAUMONT
0 O
0 Local Road City of Beaumont. City of Beaumont.
Valor Road Score 2. 2.4 (Fair) Score 3.5 3.9 LWod)
City of Beaumont. othetServke
Highway 0 Score 2.5 2.9 (Fair) • frwider
GNBoundary Cityof Beaumont.
Score 3. 3.4 (Good)
0 Full Equity Maps can be found in SECTION 4.3.
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Parks with Overall Assessment Scores
Neighborhood Parks Recommended Level: 0.75 Acres/1,000 People 17
o City Beaumont of Beaumon
Score 2 -2,4 (Fair)
o City ofBeaumonl.
Score 2.5 . 2.91Fait)
0 City of Beaumont,
Score - 3,4 (Good)
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1.8 RECOMMENDED PARK IMPROVEMENTS PLAN
The Parks and Community Services Recommended Park Improvements Plan (PRIP) for Beaumont serves as a strategic framework for prioritizing, funding, and delivering critical infrastructure and facility projects that enhance the city's livability, sustainability, and long-term growth. This plan focuses on targeted investments in parks, recreational amenities, community centers, and public spaces to meet the evolving needs of Beaumont's diverse and growing population.
A key component of the PRIP is the alignment of available financial resources to support these improvement projects. Beaumont utilizes a variety of existing funding sources to make these initiatives possible, including:
General Fund, DIF-CPARK, DIF-REC, DIF-RPARK, PROP 68, CFD (STD), CFD-255, CFD-510, and various Grant opportunities.
Through the strategic use of these resources, the City ensures responsible fiscal management while advancing projects that promote environmental stewardship, community wellness, and economic vitality. As Beaumont continues to thrive, this Recommended Improvements Plan provides a clear and actionable roadmap for creating vibrant public spaces and strengthening community infrastructure —today and for future generations.
To provide greater clarity and transparency, the PRIP is organized into three distinct categories:
1. Projects that are planned and have secured funding
2. Projects that are planned but not yet funded
3. Projects that have been completed in the last several years
1.9 REVENUE AND FUNDING STRATEGIES
As Beaumont grows, so too does the need for a sustainable and diversified funding model to support parks, recreation programs, and public spaces. The City's Community Services Department currently utilizes a wide range of funding strategies that provide a strong foundation for both operational stability and capital investment.
1.9.1 CURRENT FUNDING STRENGT
• Diverse Revenue Sources: Beaumont successfully leverages a mix of corporate sponsorships, recreation fees, facility rentals, advertising, development impact fees (DIF), and Community Facilities Districts (CFDs) to fund services and infrastructure. • Grant Success: The City has secured significant external funding through programs like the Land & Water Conservation Fund, CDBG, Proposition 68, and others to support major projects such as Stewart Park and 3 Rings Park.
• Cost -Efficient Partnerships: Public -private partnerships and volunteer engagement help reduce staffing costs while expanding offerings.
• Stable Operational Support: CFDs and facility and field rental income provide consistent, predictable funding for park maintenance and operations.
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1.9.2 OPPORTUNITIES FOR GROvv
• New Revenue Channels: Naming rights, leasebacks, and easement agreements offer strong potential for capital funding with medium to high feasibility. • Private Philanthropy: Expanding relationships with foundations, friends' groups, and individual donors could support specific initiatives or one-time projects. • Emerging Strategies: Options like crowdfunding, greenway utilities, and transient occupancy taxes (TOT) could diversify revenue while aligning with community -driven projects and tourism.
• Expanded Grant Seeking: Opportunities exist to pursue new grants aligned with trails, environmental goals, and recreation programming through sources like RTP and NRPA.
1.9.3 K Y TAKEAWAY
• Beaumont has a strong foundation of reliable revenue streams that support both daily operations and long-term capital improvements.
• Continued innovation in funding —such as leveraging naming rights, philanthropy, and special tax strategies —will be critical as the city grows. • Targeted investment in grant -writing and partnership development can unlock new funding sources and expand community impact.
• These strategies position Beaumont to maintain high -quality parks and services while meeting future demands with fiscal resilience and creativity.
FuII Revenue and Funding Strategies can be found in SECTION 4.5.
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1.10 CONCLUSION
The Beaumont Parks & Community Services Master Plan is a bold, community -rooted roadmap for the future of parks, recreation, and community services in one of California's fastest -growing cities. Built on a foundation of inclusive engagement, data -informed planning, and forward - thinking strategy, this Plan reflects the collective aspirations of residents, staff, and stakeholders who care deeply about Beaumont's quality of life.
Central to this planning process was a collaborative visioning effort —an opportunity for City staff to realign around shared values, reaffirm their purpose, and chart a new course for the future.
The result was a revitalized mission: To Elevate Community, and a vision that puts people at the center: Parks with Purpose. Recreation with Heart. Community at the Core. These statements are more than words —they represent a promise to build a system that is welcoming, inclusive, and responsive to the needs of every resident.
The visioning process also led to the creation of the Plan's five Big Moves, which collectively address the most pressing needs and greatest opportunities for growth:
• Expand and improve recreation facilities
• Increase staffing and workforce development
• Enhance community engagement and events
• Improve infrastructure and maintenance
• Secure sustainable funding and investment
These priorities are not hypothetical —they are grounded in the voices of more than 800 residents who participated in interviews, forums, and surveys throughout the planning process.
Across all methods of engagement, the message was clear: Beaumont is ready for its next chapter. Residents want more access to high -quality parks and facilities, more diverse programs for all ages, and a system that reflects their values of equity, connection, and inclusion.
As the City prepares for continued growth, this Plan provides a clear and actionable path forward —one that balances bold aspirations with practical solutions. With sustained leadership, community partnership, and intentional investment, Beaumont's parks and community services can continue to elevate the everyday lives of its people —today, tomorrow, and for generations to come.
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CHAPTER TWO COMMUNITY PROFILE
2.1 OVERVIEW
A key component of the Parks and Community Services Master Plan ("Plan") is a Community Profile. The purpose of this analysis is to provide the Community Services Department ("Department") with insight into the community it serves. It also helps quantify the market in and around the City of Beaumont ("City") and assists in providing a better understanding of the types of parks, facilities, programs, and services that are most appropriate to equitably address the residents' needs.
2.2 LIVABILITY AND ACCESS
The community profile report prioritizes a thorough evaluation of the city's livability and accessibility. This involves analyzing the cost of living, assessing how close residents live to parks, and determining tree equity in the city. By examining these factors, we gain valuable insights into how parks and recreation offerings impact the city's overall quality of life. These findings also serve as a guide for future strategic planning and development aimed at improving accessibility and enriching the living conditions for all residents.
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2.2.1 COST OF LIVI"
The cost -of -living index is a measure of how expensive it is to live in a particular area or city compared to another area or city. The index is typically calculated by comparing the prices of a basket of goods and services, such as housing, transportation, food, healthcare, and utilities in different locations. You can see the detailed information at https://www.best
olaces.net/cost of living/city/california/beaumont
The national cost -of -living index in
the United States (US) is set at 100,
and the cost -of -living index for a
specific city or region is typically
reported as a percentage of the
national average.
For example, the overall cost -of -
living index for Beaumont is 127.2,
which means that it is 27.2% more
COST OF LIVING
Beaumont
California
Overall
127.2
149.9
Grocery
99.3 105.1
Health
87.3 98.3
Housing
152.8
234.8
Utilities
109.3
102.4
Transportation
148.6
133.1
Miscellaneous
112.4
118.7
expensive to live in Beaumont than
the national US average. With the
exception of utilities and transportation, Beaumont's cost of living is comparatively lower than the state with an overall index of almost 127.2 which is almost 23% lower than the state.
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2_7 11n-MiNU TF WA! V
The Trust for Public Land firmly believes that
every person residing in U.S. cities should have
access to a high -quality park that is located
within a 10 -minute walking distance from their
home. To make this vision a reality, in
partnership with the National Recreation and
Park Association and the Urban Land Institute,
they launched the "10 -Minute Walk Program"
aimed at helping cities expand access to green
spaces for all.
The Trust for Public Land has conducted
research, which has revealed that parks that
cater to predominantly people of color are, on
average, only half the size of parks that
primarily serve white populations.
Despite their smaller size, these parks serve
nearly five times as many people. Additionally,
parks that primarily serve low-income
households are, on average, four times smaller
than parks that serve high -income households.
48%
of Beaumont residents
live within a
10 -minute walk
of a park.
National Median 55%
The current statistics indicate that 48% of the residents of Beaumont have a park within a 10 - minute walk from their homes. This percentage is moderately lower than the national median of 55%. Additional information about the "10 -Minute Walk Program" can be found at:
https://www.tpl.org .
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2.2.3 TREE EQUITY
Tree Equity is a framework used by
cities to evaluate how fairly tree
canopy is distributed across
neighborhoods, particularly in
communities that have historically
lacked investment in green
infrastructure. The Tree Equity Score
is calculated at the Census Block
Group level using a range of
indicators —including existing tree
canopy, urban heat island effects,
income, race/ethnicity, and population
density —to help identify areas where
tree planting efforts can have the
greatest impact.
Scores are then aggregated to assess
overall performance at the city level. A
higher score indicates more equitable
access to the benefits of tree cover,
Tree Equity Score: 61
Mount [Yaws
such as shade, air quality, and mental health benefits.
The City of Beaumont currently has a Tree Equity Score of 61. This is below both the national average of 82 and the California state average of 79, suggesting that while some areas of Beaumont benefit from strong canopy coverage, others —often more vulnerable or underserved—lack adequate tree resources.
The City of Beaumont currently has a tree
equity score of 61. Of the 16 block groups in
Beaumont:
• 14 have a tree equity score below 75.
• 3 have a tree equity score below 50.
• 1 has a tree equity score above 80.
Neighborhoods in Beaumont with a higher
proportion of residents of color typically exhibit
lower tree equity scores, indicating they have
less tree canopy coverage. (Figure 4)
Additional information regarding tree equity
can be found at
https://www.treeequityscore.org/
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2.00%
1.00%
0.0o%
V
-1.00%
-2.00%
I -3.00%
-4.00%
-5.00%
1 0% - 20% 20% - 40% 40% - 60% 60% - 80% 80% - 100%
People of Color
Figure 1: Tree canopy by people of color
24
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Total
Population
2.3 DEMOGRAPHICS
56,616
Median
Household
Income
$94,398
Median
Age
Figure 2: Demographic overview
44%
Hispanic/
Latino
Orgin
Cost of
Living
Index
10 -
Minute
Walk
The Demographic Analysis is a report that examines the characteristics of the population in the City including age segments, race, ethnicity, and income levels. It covers the entire population of the City and uses historical patterns to make future projections. It is possible that unforeseen circumstances during or after the time of the analysis could impact the validity of these projections.
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2.3.1 METHODOLOGY
The analysis used demographic data from two sources: the U.S. Census Bureau and Environmental Systems Research Institute, Inc. (ESRI), a research and development organization specializing in Geographical Information Systems and population projections. The data was obtained in July 2023 and reflects the actual numbers reported in the 2020 Census and information available as of July 2023. ESRI used this data to estimate the current population in 2023, as well as a 5 -year projection for 2028. The consulting team used straight-line linear regression to forecast demographic characteristics for 10 and 15 -year projections in 2033 and 2038.
DEMOGRAPHIC ANALYSIS BOUNDARY
The City boundaries shown below were used for the demographic analysis.
Figure 3: Beaumont site map
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.3.2 CITY POPULACE
POPULATION
From 2010 to 2020, the population of the City increased exponentially with an average annual growth rate of 3.76% which was significantly higher than the national annual growth rate of
0.73% during the same period. The City's population is expected to continue growing over the next 15 years, reaching approximately 71,805 by 2038.
POPULATION
71,805
38,543
I
2010
Census
3.76%
3.38%
66,101
Total Population Population Annual Growth Rate
2020
Census
2023
Estimate
2028
Projection
2033
Projection
2038
Projection
Figure 4: Population
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2.3.3 AGE SEGMEN
The City has a median age of 38.3 years, which is nearly one year younger than the national median age of 39.1. Looking ahead, the population is projected to maintain its youthful character over the next 15 years. By 2038, the age groups of 0-17 and 35-54 are expected to make up the highest percentage (25%) of the population. In response to this demographic trend, the Department will need to prioritize initiatives and activities that cater to families, youth, and intergenerational engagement. This will ensure that the needs and interests of these age segments are effectively met.
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POPULATION BY AGE SEGMENTS
0-17 ■ 18-34 35-54 55-74 m 75+
ry N
23%
2010
Census
10%
21%
25%
19%
26%
2023
Estimate
12%
20%
25%
18%
26%
2028
Projection
2033
Projection
12%
2038
Projection
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Figure 5: Population by age segments
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RACE AND ETHNICITY DEFINITIONS
The minimum categories for data on race and ethnicity for Federal statistics, program administrative reporting, and civil rights compliance reporting are defined below. The Census 2020 data on race are not directly comparable with data from the 2010 Census and earlier censuses; therefore, caution must be used when interpreting changes in the racial composition of the US population over time. The latest (Census 2020) definitions and nomenclature are used within this analysis.
• American Indian - This includes a person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment
• Asian - This includes a person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam • Black or African American - This includes a person having origins in any of the black racial groups of Africa
• Native Hawaiian or Other Pacific Islander - This includes a person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands • White - This includes a person having origins in any of the original peoples of Europe, the Middle East, or North Africa
• Hispanic or Latino - This is an ethnic distinction, a subset of a race as defined by the Federal Government; this includes a person of Mexican, Puerto Rican, Cuban, South or Central American, or other Spanish culture or origin, regardless of race Census states that the race and ethnicity categories generally reflect social definitions in the U.S. and are not an attempt to define race and ethnicity biologically, anthropologically, or genetically.
We recognize that the race and ethnicity categories include racial, ethnic, and national origins and sociocultural groups."
Please Note: The Census Bureau defines Race as a person's self -identification with one or more of the following social groups: White, Black, or African American, Asian, American Indian and Alaska Native, Native Hawaiian and Other Pacific Islander, some other race, or a combination of these. While Ethnicity is defined as whether a person is of Hispanic / Latino origin or not. For this reason, the Hispanic / Latino ethnicity is viewed separate from race throughout this demographic analysis.
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2.3.4 RACE
The City's population is majority -minority meaning that the combined percentage of all non- White racial categories are higher than that of White Alone. This is a rapid shift over a 10 -year period from the 2010 Census to the 2020 Census where the population has diversified rapidly with the White Alone population reducing from 64% of the population to 45% with all other groups increasing.
Though each non-White category is expected to increase over the next 15 years, Some Other Race (23%) and Two or More Races are expected to have second highest percentages (22%), behind White Alone (34%) by 2037.
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RACE
White Alone ■ Black Alone American Indian Asian
Pacific Islander ■ Some Other Race Two or More Races
16%
2010
Census
16%
19%
2020
Census
20%
22%
1 8%
21%
23%
9%
22%
23%
2023 2028 2033 2038
Estimate Projection Projection Projection
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Figure 6: Population by race
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2.3.5 ETHNIC'
The City's population was also evaluated
based on Hispanic/Latino ethnicity, which
the Census Bureau views as separate from
race. It is worth noting that individuals who
identify as Hispanic/Latino may also belong
to any of the racial categories mentioned
earlier.
As per the current 2023 estimate,
approximately 44% of the City's population
consists of people who have
Hispanic/Latino origin which is significantly
higher than the national average of 19.0%.
The Hispanic/Latino population has grown
since 2010 and is projected to continue to
grow, reaching 48% of the population in
2038.
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HISPANIC POPULATION
Hispanic / Latino Origin (any race) ■ All Others
61%
2010
Census
2020
Census
44%
2023
Estimate
48%
2038
Projection
31
Figure 7: Hispanic population
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2.3.6 INCOME
The City has a per capita income of $35,995, which is lower than both the state average ($45,201) and the national average ($40,363). However, the median household income is $94,398, which is higher than both the state median household income ($89,455) and the national median household income ($72,414). This difference is likely because the average household size in the City is 3.17, which is higher than the state average of 2.85 and the national average of 2.55. This means that even though the individuals within the household may not earn a lot individually, the overall household income is larger due to the larger number of people contributing.
It is important to understand that per capita income refers to the income earned by each individual, while median household income is calculated based on the total income of all individuals over the age of sixteen living in the same household.
COMPARATIVE INCOME
co
M
Beaumont, CA
e -I
O
N
Lt)
TJ-
tf)
os
co
t,R
California
Per Capita Income • Median Household Income
United States
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Figure 8: Comparative Income Graph
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2.3.7 AT -RISK POPULATION
The Census Bureau has identified five "at -risk" factors, and the following statistics provide a comparison of Beaumont to state and national averages in these categories. In general, Beaumont has lower percentages than the state average. However, there are a couple of areas where Beaumont differs from the national average. The Foreign -Born population in Beaumont is higher at 17.4% compared to the national average of 13.6%. Additionally, the percentage of individuals who speak a language other than English at home is higher in Beaumont at 32.6% compared to the national average of 21.7%.
On the other hand, Beaumont has a lower percentage of persons in poverty at 8.8%, which is lower than both the state average of 12.3% and the national average of 9.8%. Beaumont also has a lower percentage of families without health insurance at 7.5%, compared to the state average of 8.1% and the national average of 9.8%.
In terms of disability, Beaumont has a slightly higher average of individuals with a disability at
7.0% compared to the state average of 6.8%, but it is still lower than the national average of
8.7%.
2023 Demographic
Comparison
Beaumont, CA
Califomia
United States
Foreign Born
17.4%
26.5%
13.6%
o .
.47'
co .�
a L
Language other Than
English Spoken at
Home
32.6%
43.9%
21.7%
(.4,)
Y 0
a
With a Disability
7.0%
6.8%
8.7%
Q u
No Health Insurance
7.5%
8.1%
9.8%
Persons in Poverty
8.8%
12.3%
11.6%
Figure 9: At risk population characteristics
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2.4 RECREATIONAL TRENDS
The Trends Analysis offers insights into recreational trends at the national, regional, and local levels, as well as recreational interests segmented by age. This analysis utilizes data on trends sourced from the Sports & Fitness Industry Association (SFIA), the National Recreation and Park Association (NRPA), and Environmental Systems Research Institute, Inc. (ESRI). The trends data used in this analysis is based on participation rates that are current or historical and NRPA Park Metrics.
LOU,' SP`RT AND LEISURE MARKET
ESRI provided the following charts depicting
sports and leisure market potential data for
Beaumont residents. The Market Potential Index
(MPI) is utilized to measure probable demand for
a product or service within defined service areas.
MPI scores display the likelihood that an adult
resident will partake in certain activities when
compared to the national U.S. average. The
activities that residents participate in do not
necessarily have to be within the city's
boundaries. The national average is set at 100, so
scores below 100 indicate lower -than -average
participation rates, while scores above 100
indicate higher -than -average participation rates.
The service area is evaluated against the national
average across four categories: general sports,
fitness, outdoor activity, and commercial
recreation.
It is important to note that MPI metrics represent only one data point used to help determine community trends. Programmatic decisions should not be solely based on MPI metrics.
The following charts compare MPI scores for 46 sport and leisure activities prevalent for residents in the City. The activities are grouped by type and listed in descending order, from highest to lowest MPI score. Index numbers of 100 or higher hold significance as they indicate a greater likelihood that residents within service areas will actively participate in those Department offerings. Conversely, below -average MPI scores suggest lower levels of participation in specific activities.
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2.4.2 GENERAL SPORTS MARKET POTEB' W
The City's MPI scores for all but one of the eight activities listed are above the national average MPI for General Sports. Softball (90) is the activity with the lowest MPI. Golf (115) is the highest followed by Volleyball (111) and Soccer (110) in the top three.
GENERAL SPORTS MPI
Beaumont, CA —National Average (100)
115
107 106 105
102
Golf Volleyball Soccer Baseball Basketball Football Tennis Softball I
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Figure 10: General sports MPI
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2.4.3 Fl
All eight activities listed are at or above the national average MPI, with Zumba (116) being the highest, followed by Pilates (111) and weight lifting (108) in the top three.
FITNESS MPI
Beaumont, CA -National Average (100)
116
Zumba
111
108 107
105 104 104
1 1
100
Pilates Weight Aerobics Swimming Yoga Walking for Jogging/ Lifting Exercise Running
Figure 11: Fitness MPI
PARKS �/ PARKS A
c:AUMONT BEAUMONT RECRE BEAUMONT BEAUMONT RECREATION
BEAUM
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2.4.4 OUTDOOR ACTIVITY
Outdoor activities were divided with six above and four below the national MPI. The activities that scored above the national average were Mountain Bicycling (117), Rock Climbing (111), Saltwater Fishing (114), Road Bicycling (109), Backpacking (103), and Horseback riding (101). On the other hand, Archery (97), Hiking (95), Canoeing/Kayaking (88), and Freshwater Fishing (83) scored below the national average.
OUTDOOR ACTIVITY MPI
Beaumont, CA —National Average (100)
117
111
109
106
103
101
97 95
i
83 Bicycling Rock Fishing Bicycling Backpacking Horseback Archery Hiking Canoeing/ F'shing (mountain) Climbing (salt water) (road) Riding
Kayaking (fresh water)
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Figure 12: Outdoor activity MPI
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2.4,5 COMMERCIAL RFCRFATIQNI
In the Commercial Recreation sector, over half of the activities listed had MPIs higher than the national average. The top activities were Participating in a book club and attending an adult education course, both with an MPI of 107.
It's also important to mention that all the spending metrics were above national averages.
Spending $1-99 on sports/recreation equipment had an MPI of 105, while spending $100-249 and spending $250 or more had an MPI of 101 each.
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(last 12 months)
Beaumont, CA National Average (100)
Participated in a book club
Attended adult education course
Spent $1-99 on sports/rec equip
Went to art gallery
Went to live theater
Played chess
Played cards
Spent $250+ on sports/rec equip
Visited a zoo
Went to museum
Spent $100-249 on sports/rec equip
Attended sports event
Woodworking
Went overnight camping
Played video/electronic game (portable)
Painting/drawing/sculpting
Played video/electronic game (console)
Photography
Visited an indoor water park
Birdwatching
7 1
1 1
1 9
9 9
(
5 4
8 AA
107
107
105
103
103
103
02 01
01 01
01 7
Figure 13: Commercial recreation MPI
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2.5 KEY TAKEAWAYS - OVERALL
2.5.1 LIVABILITY AND ACCESS
Cost of Living: While the cost of living is higher than the national average, it's lower than the state average. While this may draw new residents seeking affordability within the state, the cost can still be tough for lower earners, leading to financial strain.
Public Space & Tree Equity: Less than half of residents live within a 10 -minute walk of a park, and neighborhoods where 60% or more of the population are people of color have unequal tree coverage compared to the rest of the city. These issues present opportunities for improving park accessibility and tree coverage in Beaumont.
2.5.2 DEMOGRAPHICS
Population & Age: The city's population is growing at a rate significantly higher than the national average and is predicted to reach around 71,805 by 2038. The city's median age is lower than the national average, and a large portion of the population falls into the 0-17 and 35-54 age groups. Therefore, initiatives that cater to families, youth, and intergenerational engagement will likely be effective and necessary along with a general increase in overall levels of service offerings to meet the needs of the growing population.
Race & Ethnicity: The city has a diverse population with a majority of residents identifying as non-White, and a significant percentage of the population is of Hispanic/Latino origin. The city's future policies and offerings should consider these demographic trends to ensure inclusivity and cultural sensitivity.
Income: Despite the city's per capita income being lower than the state and national averages, the median household income is higher, likely due to larger household sizes. This suggests that many households may have sufficient income for discretionary spending, such as on sports and recreational activities.
At -Risk Populations: The city has a higher proportion of foreign -born residents and non-English speakers at home compared to the national average, but fewer people in poverty or without health insurance. This information can help shape supportive social services and inclusion efforts with a focus on multilingual outreach and culturally relevant offerings. nr,"' !FrpF V NIA! "rnr!Nr)c-
Recreational Activity Participation: Residents show above -average potential participation (as measured by Market Potential Index, MPIs) in various sports, fitness, and commercial recreational activities. Despite some outdoor activities having MPIs below the national average, this overall participation suggests a community interest in a range of physical activities.
Recreational Spending: Residents also spend above -average amounts on sports and recreational equipment, indicating that the community values these activities and that there could be an opportunity to support or enhance local sports and recreation businesses.
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CHAPTER THREE PUBLIC INPUT SUMMARY
800 +
PARTICI PANTS
416 364
STATISTICALLY VALID SURVEYS ONLINE COMMUNITY SURVEYS
23 KEY LEADER/STAKEHOLDER
INTERVIEWS & FOCUS GROUPS
2 PUBLIC INPUT MEETINGS
The City of Beaumont is growing —and so are the needs and expectations for parks, recreation, and community services. As part of the Parks & Community Services Master Plan, the City launched a comprehensive public input process to ensure that the voices of residents, staff, and key stakeholders directly shape the future of Beaumont's parks, programs, and facilities.
This Public Input Summary brings together feedback collected through key leader interviews and focus groups, two public community forums, an open online survey, and a statistically valid community survey. Each method was designed to engage a wide range of perspectives and ensure that the Master Plan reflects the priorities, values, and aspirations of the Beaumont community.
What emerged from this process is clear: Beaumont residents care deeply about quality parks and programs, value strong community connections, and are eager to see continued investment in spaces and services that promote health, inclusion, and quality of life. This summary highlights the common themes, ideas, and opportunities that will guide the City in developing a Master Plan rooted in community priorities and ready to serve Beaumont for years to come.
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3.1 KEY LEADER INTERVIEWS & FOCUS GROUPS
As part of the City of Beaumont's commitment to community -driven planning, 23 key leader and stakeholder interviews and focus groups were conducted to gather in-depth, qualitative insights from those who know the community best. Participants included City leadership, community partners, organizational leaders, and representatives from schools, service organizations, and local advocacy groups.
These conversations provided valuable context around the role of parks and community services in Beaumont's growth, the challenges facing residents and service providers, and the vision stakeholders hold for the future. Participants shared honest feedback about current strengths, identified critical gaps, and emphasized strategic priorities ranging from equity and access to staffing, maintenance, and future facility development.
The input from these sessions complements broader community feedback and adds depth to the Master Plan's foundation. The themes that emerged serve as a bridge between policy, practice, and lived experience —ensuring the plan reflects both data and real -world perspectives.
3.1.1 SI k iNft
Strong and Expanding Programming
Many respondents highlighted the breadth and quality of recreation programs, especially those serving kids, families, youth, and seniors. Comments emphasized recently expanded offerings, the organization of programs, and the City's commitment to continually adding new events.
Community Events and Small -Town Feel
Signature events like Concerts in the Park and the 4th of July celebrations were frequently praised. These gatherings reinforce a strong sense of community, bring residents together, and contribute to Beaumont's welcoming, small-town atmosphere.
Staff and Leadership Commitment
Interviewees noted the dedication of City staff and leadership, including a management team actively evaluating what's needed to deliver services effectively. The staff's work ethic and outreach efforts were seen as essential to the department's success.
Well -Used and Kid -Friendly Facilities
Participants consistently referenced how well the community utilizes existing facilities.
Comments also pointed to the City's family -friendly environment, investments in shade structures, and the development of the first universally accessible playground as signs of inclusive design and usability.
Strong Community Partnerships
The City's collaboration with community organizations —particularly sports leagues like AYSO and other local partners —was noted as a significant strength. These relationships help deliver a wide range of recreation opportunities and reinforce a sense of shared ownership and impact.
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3.1.2 OPPORTUNI���_
Facility Gaps and New Infrastructure Needs
There is a strong demand for additional and upgraded facilities, including a new community center, indoor recreation space, a public pool, an auditorium, and restrooms. Many comments pointed to the need for a wider range of facilities to meet the needs of both youth and adults.
Maintenance, Staffing, and Safety Improvements
Concerns about vandalism, lack of maintenance standards, insufficient staffing, and outdated infrastructure (such as the city yard) were frequently cited. Interviewees emphasized the need for more consistent upkeep, tools and staffing support, and improved safety measures — particularly at the Sports Park.
Program and Amenity Diversity
Leaders highlighted the need for a broader range of programs and amenities that serve all age groups —not just kids. Desired additions included adult sports, non -senior adult activities, trails, BMX and mountain bike facilities, and niche amenities like disc golf and volleyball courts.
Community Identity, Inclusion, and Ownership
There was a strong desire to cultivate a sense of community ownership and identity around parks. Participants emphasized inclusivity, arts and culture, and the potential for parks and recreation to become a defining part of Beaumont's culture —especially as the City grows.
Growth and Long -Term Planning
Several comments focused on preparing for Beaumont's projected growth to 80,000 residents.
There is a need to build out facilities and services accordingly, with thoughtful planning around parking, connectivity, and destination -quality amenities to draw both residents and visitors.
3.1.3 TOP PRIORITY OUTCOh
Future -Focused Planning and Growth Management
Stakeholders emphasized the need for a long-range, visionary plan that prepares Beaumont for anticipated population growth and evolving community needs. Priorities included setting a strong foundation, building a guiding document, and ensuring the plan is representative, adaptable, and built to support future generations.
New and Expanded Facilities
A new community center —particularly one located west of the CRC —was the most frequently mentioned facility need. Desired features include a pool, theater/auditorium, multiuse gym space, and fitness areas. These comments reflect a clear priority to invest in expanded infrastructure to meet growing demand.
Sustainable Operations and Maintenance
There was a strong call for a sustainable maintenance and staffing strategy, including a formal equipment replacement plan, improved city yard capacity, and mechanisms to ensure long-term upkeep of facilities. Adequate staffing and the right tools were highlighted as essential to service quality and efficiency.
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Safety and Beautification
Ensuring safety —especially through lighting, sightlines, graffiti prevention, and public restrooms— was identified as a core outcome. At the same time, leaders voiced support for keeping Beaumont clean, welcoming, and beautiful as the city grows and attracts more residents and visitors.
Program Diversity and Access
From fitness classes to cultural events and recreational sports, there is a desire to expand offerings across age groups and interest areas. Leaders see programmatic growth as central to meeting community needs and increasing engagement with Beaumont's parks and facilities.
3.2 PUBLIC COMMUNITY FORUMS
As part of the City of Beaumont's inclusive engagement efforts, two Public Community Forums were held in October 2023 to involve residents in shaping the Parks & Community Services Master Plan. These sessions offered participants a chance to learn more about the planning process, ask questions, and share their perspectives in real time.
To ensure broad participation and interactive input, the City used live polling technology through Mentimeter. This allowed attendees to respond to key questions, prioritize outcomes, and voice their ideas using mobile devices. The feedback collected through these polls provided meaningful insights into the community's desires, including calls for expanded facilities, improved amenities, greater program diversity, and a clear roadmap for future development. ? 11 01 !p1 C !C31114 Dn1 1 !Mr- !.?1-r'1'! T
As part of the City of Beaumont's Parks & Community Services Master Plan engagement process, two Public Community Forums were held in October 2023. Participants provided real- time feedback through live polling using Mentimeter, allowing staff to gather measurable insights on community needs, preferences, and priorities. The results reflect a highly engaged community with clear expectations for the future of Beaumont's parks and recreation system.
Frequency of Use
A strong majority of participants -82% —reported using Beaumont parks, trails, or recreation facilities at least weekly. An additional 6% use them two to five times per year, while 12% visit once per year or less. Notably, no respondents indicated monthly, occasional, or no use at all, reinforcing how essential and well -utilized these public spaces are by the community.
Facility and Program Quality
When asked to rate the quality of services provided by the Beaumont Community Services Department, 71% of participants rated them positively -7% as "Excellent" and 64% as "Good." An additional 29% rated them as "Fair," while no respondents selected "Poor." These results suggest that while services are generally well -regarded, there is room for continued improvement to elevate the overall experience.
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Access and Proximity
While 63% of participants reported living within a 10 -minute walk of a park or trail, a significant portion -31% —said they do not, and another 6% were unsure. Despite a majority having geographic access, the primary mode of transportation to parks was overwhelmingly by car, with 88% indicating they drive. Only 6% walk and another 6% bike to their nearest park. These results suggest opportunities to enhance park connectivity and walkability, particularly as the community grows.
Barriers to Use
When asked to identify the top barriers preventing greater use of Beaumont's parks, programs, and facilities, the most frequently cited issues were related to infrastructure and awareness. The top response —selected by 58% of participants —was a lack of amenities in parks and centers, followed by lack of awareness of offerings (42%) and lack of restrooms (37%). Other notable barriers included lack of parking (21%), being too busy (16%), and limited wayfinding signage for trails and open space (16%). Safety, cost, and transportation were not identified as major concerns in this forum, suggesting the need to focus efforts on physical improvements and clearer communication.
Communication Preferences
Participants indicated a strong preference for digital communication methods when learning about Beaumont Community Services programs and updates. Social media was the top choice, selected by 83% of respondents, followed by the City's website (67%) and both email and the City News & Online Recreation Guide at 44% each. Printed materials like banners and posters were less popular (22%), and word of mouth was not selected by any respondents. These findings highlight the importance of maintaining a strong, consistent digital presence across platforms to effectively reach the community.
Program and Facility Interests
Community members expressed the strongest interest in sports -related amenities and adult recreation opportunities. The most frequently selected facilities were sports courts (such as basketball, pickleball, and tennis), chosen by 61% of participants, followed by adequate lighting (56%), aquatic features (33%), and open space/trails (33%). Indoor sports complexes (28%) and indoor recreation centers (17%) also ranked as priorities, while dog parks, playgrounds, and picnic areas received no selections.
On the programming side, adult sports (58%) emerged as the top area of interest, followed by arts and culture (32%), aquatics (26%), and fitness and wellness (26%). Other areas such as 50+ activities (21%), performing arts (21%), and outdoor recreation (21%) also showed moderate interest. Notably, teen programming and youth sports received relatively little interest from forum participants, indicating a stronger focus on adult and all -ages offerings.
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Top Priority Outcomes
When asked to identify their top desired outcome from the Master Plan, responses focused on:
• Establishing a clear, future -focused plan to guide decisions • Building new facilities, including a community center with a pool and auditorium • Completing ongoing projects like Stewart Park and pickleball courts • Enhancing beautification and park safety
• Supporting community gathering spaces, such as a weekly farmers market Together, these insights underscore the community's strong support for an inclusive, accessible, and forward -thinking park system —one that grows alongside Beaumont and serves all ages and abilities for years to come.
3.3 STATISTICALLY -VALID SURVEY
ETC Institute administered a parks and recreation needs assessment survey for the City of Beaumont, California during the winter and spring of 2024. The purpose of the survey was to help determine parks and recreation priorities for the community. • "7THO'''OLOGY
ETC Institute mailed a survey packet to a random number of households in Beaumont area. Each survey packet contained a cover letter, a copy of the survey, and a postage -paid return envelope.
Residents who received the survey were given the option of returning the survey by mail or completing it online at beaumontsurvey.org.
After the surveys were mailed, ETC Institute followed up with residents to encourage participation. To prevent people who were not residents of Beaumont from participating, everyone who completed the survey online was required to enter their home address prior to submitting their survey. ETC Institute then matched the addresses entered online with the addresses originally selected for the random sample. If the address from a survey completed online did not match one of the addresses selected for the sample, the online survey was not included in the final database for this report.
The survey aimed to collect a minimum of 400 completed responses from residents, and this target was surpassed with 416 completed surveys collected. The overall results for the sample of 416 residents have a precision of at least +/-4.79% at the 95% level of confidence.
The major findings of the survey are summarized in the following pages.
The charts showing the overall results of the survey can be found in AppendixA 7 7 '"a DADVC COW-1COW-1 !D pr.n,rioN F (1' !Tlrc/DrInr'QAIP4chr-PAIJ c, J!.F Overall Parks and Recreation Parks/Facilities Use: Respondents were asked if they had visited any parks/facilities in the past year. Eighty-one percent (81%) responded "yes." Of the respondents that said "yes," 9% visit "5+ times a week," 25% visit "2-4 times a week," 16% visit "once a week," 27% visit "1-3 times a month," and 24% visit "less than once a month." They also gave ratings to the parks they visited. 9% gave "excellent" ratings, 51% gave "good" ratings, 34% gave "fair" ratings, and 6% gave "poor" ratings. For those who said they have not been to a park/facility in the past year, they gave reasons why. The most common reasons were: lack of amenities we want to use (41%), lack of shade (40%), and lack of restrooms (36%).
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Overall Parks and Recreation Programs/Events Use: Respondents were asked if they had participated in any programs/events in the past year. Forty-three percent (43%) responded "yes." Of those that said "yes," 21% participated in one, 58% participated in 2-3 programs, 17% participated in 4-6 programs, and 5% participated in 7+ programs. Then, they gave ratings to those programs/events. 20% gave "excellent" ratings, 54% gave "good" ratings, 24% gave "fair" ratings, and 2% gave "poor" ratings. For those that said they have not participated in programs/events in the past year, they gave reasons why. The reasons that were highly selected were: I don't know what is offered (55%), program times are not convenient (18%), and program not offered (17%).
7-777 mrn�n. re
Respondents were asked to select all the organizations they used for recreation/sports activities in the past year. The top organizations selected were: City of Beaumont (40%), neighboring cities (32%), and public schools (26%).
3.3.4 COMMUNICATIR
Respondents were asked about the ways they learned about the City's parks, recreation, facilities, programs, and events. The top resources used were: social media (54%), word of mouth (52%), and City magazine & recreation guide (38%). Then, they selected the methods of communication they most preferred the City use to communicate with them about the parks, facilities, programs, and events. The top methods selected were: social media (56%), City magazine & recreation guide (39%), and City website (31%).
3.3.5 BENEFITS, IMPORTANCE, AND IMPROVEMENTS TO PARKS
RECREATION
Importance of High Quality Parks and Recreation Services: Respondents were asked how important it is for the City to provide high quality parks and recreation services. 79% said it is "very important," 20% said it is "somewhat important," and 2% said it is "not important." Potential Benefits: Respondents were asked to rate their level of agreement with the statements about some potential benefits of the City's parks and recreation services. The statements that respondents agreed on the most were: makes Beaumont a more desirable place to live (79%), preserves open space & protects the environment (73%), provides positive social interactions for me (my household/family) (67%).
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3.3.6 ADDITIONAL FINDINV_
Additional Tax Revenue: Respondents selected the amount of additional tax revenue you would be willing to pay to improve the City's parks and recreation system. 14% selected "$9+ per month," 9% selected "$7-$8 per month," 19% selected "$5-$6 per month," 20% selected "$3-$4 per month," and 38% selected "nothing."
Fundings: Respondents were asked how they want the City to fund future parks, recreation, trails, and open space needs. 44% selected "increase funding," 53% selected "maintain existing fund," and 3% selected "reduce funding."
Perception of Parks and Recreation since COVID Pandemic: Respondents were asked how their perception of the value of the parks and recreation services has changed since the COVID pandemic. 28% said the "value has significantly increased," 26% said the "value has somewhat increased," 40% said "no change," 4% said the "value has somewhat decreased," and 2% said the "value has significantly decreased."
3.3.7 FACILITIES/AMENITIES NEEDS AND PRIORITIES
Facility Needs: Respondents were asked to identify if their household had a need for 30 facilities and to rate how well their needs for each were currently being met. Based on this analysis, ETC Institute was able to estimate the number of households in the community that had the greatest "unmet" need for facilities.
The three facilities with the highest percentage of households that have an unmet need:
1. Shade & trees -13,553 households
2. Large community parks -13,324 households
3. Shaded picnic areas & shelters -13,275 households
Facility Importance: In addition to assessing the needs for each facility, ETC Institute also assessed the importance that residents placed on each item. Based on the sum of respondents' top four choices, these were the four facilities that ranked most important to residents:
1. Multi -use hiking, biking, walking trails (30%)
2. Outdoor swimming pool (24%)
3. Community center (24%)
4. Splash pads or spray parks (21%)
Priorities for Facility Investments: The Priority Investment Rating (PIR) was developed by ETC Institute to provide organizations with an objective tool for evaluating the priority that should be placed on recreation and parks investments. The Priority Investment Rating (PIR) equally weighs (1) the importance that residents place on facilities and (2) how many residents have unmet needs for the facilities. Based the Priority Investment Rating (PIR), the following facilities were rated as high priorities for investment:
• Multi -use hiking, biking, walking trails (PIR=184)
• Splash pads or spray parks (PIR=172)
• Outdoor swimming pool (PIR=172)
• Restrooms (PIR=154)
• Shaded picnic areas & shelters (PIR=147)
• Shade & trees (PIR=142)
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• Community center (PIR=141)
• Large community parks (PIR=132)
The chart on the following page shows the Priority Investment Rating for each of the 30 facilities assessed in the survey.
Top Priorities for Investment for Facilities/Amenities Based on Priority Investment Rating
Multi -use hiking, biking, walking trails
Splash pads or spray parks
Outdoor swimming pool
Restrooms
Shaded picnic areas & shelters
Shade & trees
Community center
Large community parks
Performing arts theater
Walking paths in parks
Open space conservation areas
Indoor basketball/pickleball/volleyball courts
Environmental/nature education center
Lighting
Outdoor exercise/fitness area
Playgrounds with accessible amenities
Small neighborhood parks
Mountain bike trails
Indoor sports fields
Skateboarding parks
Outdoor pickleball courts
Outdoor tennis courts
Lighted rectangular sports fields
Lighted diamond sports fields
Off -leash dog park
Outdoor basketball courts
WiFi in the community centers
Padel courts
Cricket fields
Other safety & security measures
184
172
77 76
75 72
72 69
19 5
42 50
57 112
_ 107
- 100
■ 99
96 94
92 88
88 172
154
_ 147
142
■ 141 High Priority
132 (100+)
130
129
Medium Priority
(50-99)
Low Priority (0-50)
0 50
100
150
200
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3.3.8 RECREATION PROGRAMS/ACTIVITIES NEEDS AND PRIORITIES Program Needs: Respondents were asked to identify if their household had a need for 32 recreation programs and to rate how well their needs for each were currently being met. Based on this analysis, ETC Institute was able to estimate the number of households in the community that had the greatest "unmet" need for various programs.
The three programs with the highest percentage of households that have an unmet need:
1. Community & cultural special events -10,561 households
2. Adult fitness & wellness programs -9,907 households
3. Exercise classes -9,679 households
Program Importance: In addition to assessing the needs for each program, ETC Institute also assessed the importance that residents placed on each item. Based on the sum of respondents' top four choices, these were the four programs that ranked most important to residents:
1. Adult fitness & wellness programs (22%)
2. 50+ activities (22%)
3. Community & cultural special events (19%)
4. Swim lessons (15%)
Priorities for Program Investments: The Priority Investment Rating (PIR) was developed by ETC Institute to provide organizations with an objective tool for evaluating the priority that should be placed on recreation and parks investments. The Priority Investment Rating (PIR) equally weighs (1) the importance that residents place on programs and (2) how many residents have unmet needs for the programs.
Based the Priority Investment Rating (PIR), the following programs were rated as highpriorities for investment:
• Adult fitness & wellness programs (PIR=198)
• Community & cultural special events (PIR=179)
• 50+ activities (PIR= 169)
• Swim lessons (PIR= 161)
• Community gardening (PIR=156)
• Exercise classes (PIR= 150)
• Water fitness programs/lap swimming (PIR= 142)
The chart below shows the Priority Investment Rating for each of the 32 programs assessed in the survey.
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Top Priorities for Investment for Programs/Activities Based on Priority Investment Rating
Adult fitness & wellness programs
Community & cultural special events
50+ activities
Swim lessons
Community gardening
Exercise classes
Water fitness programs/lap swimming
Outdoor environmental education/nature camps & programs Trips & tours
After school programs for youth of all ages
Child enrichment programs
Adult visual/performing arts/crafts programs
Adult sports leagues
Programs for at -risk youth/crime prevention
STEM classes
Counseling & mental health programs
Cultural enrichment programs
Youth sports programs & camps
Teen/tween programs
Pickleball lessons & leagues
Early childhood education/preschool programs
Golf lessons
Leadership/mentoring/character building
Programs for people with special needs
Youth seasonal programs & camps
Recreation/competitive swim team
Cheer/gymnastics/tumbling programs
Robotics
Youth fitness & wellness classes
Youth visual/performing arts/crafts programs
Tennis lessons & leagues
eGaming/eSports
50 100
150
200
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3.4 SURVEY COMPARISON ANALYSIS
This Survey Comparison Report presents a side -by -side analysis of two key data sources gathered during the Beaumont Parks & Community Services Master Plan process: the ETC Statistically Valid Survey and the Online Community Survey administered through SurveyMonkey.
These surveys were designed to collect meaningful input from Beaumont residents and park users regarding their experiences, preferences, and priorities related to the City's parks, programs, and community services. The ETC Statistically Valid Survey, administered with a methodologically sound and representative sampling approach, provides results that are statistically reliable and reflective of the broader community. In contrast, the Online Community Survey offered an open - access opportunity for any interested stakeholder to participate, encouraging wider engagement and more diverse individual input.
By comparing findings across both tools, this analysis identifies consistent themes, differences in perspectives, and unique insights that emerged from each method. This comprehensive approach ensures that both statistically grounded results and broader community voices are considered as Beaumont plans for the future of its parks and community services.
Statistically Valid Survey
• 416 households (Goal of 400)
• Precision rate of at least +/- 4.79%
at the 95% level of confidence
• Residents were able to return the
survey by mail, by phone or
completing it online
• Only scientific & defensible method
to understand community needs
•Translation services available in
multiple languages including Spanish.
SurveyMonkeT
Online Community Survey
• 363 responses
• No precision rate or level of
confidence due to there being no
selection criteria for respondents
• Questionnaire identical to the
Statistically Valid Survey
• Provides further insight on
community expectations
• Administered in English
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The following shows a side -by -side comparison of key results from each survey by question.
FuII results from the Statistically Valid Survey can be found in the APPENDIX A.
Full results from the Online Community Survey can be found in the APPENDIX B. .4.1 L MU kAPHVL.
In the demographic section of this report, we analyze the community demographics served by the Department based on responses from the ETC Statistically Valid Survey and the Online Community Survey via SurveyMonkey. Due to ETC's approach of random sampling and ensuring a 95% level of confidence and a margin of error of +/- 5%, their survey results more accurately reflect the community's demographics and are statistically reliable in comparison to online -only surveys.
We examine respondent demographics such as gender, tenure in Eastvale, and race/ethnicity to gain insights into the community's composition. Our findings are compared with the 2023 demographic estimates from The Environmental Systems Research Institute (ESRI) to understand how the survey data aligns with broader demographic trends.
Full demographic data can be found in Section 2.3.
GENDER
Etc
( SurveyMonkey
�"-;; esri'
Female
50%
73%
51%
Male
49%
26%
49%
Non-Binary/Self-
describe
1%
1%
0%
The ETC Statistically Valid Survey closely mirrors Beaumont's actual gender demographics, with 50% of respondents identifying as female and 49% as male, aligning closely with the City's ESRI demographic profile of 51% female and 49% male. Additionally, 1% of ETC respondents identified as non -binary or self -describe, adding an inclusive dimension not represented in the baseline demographic data.
In contrast, the SurveyMonkey Online Community Survey significantly overrepresents female respondents at 73% and underrepresents male respondents at 26%. While it also includes 1% non-binary/self-describe responses, the overall distribution skews heavily toward female participation.
These findings suggest that the ETC survey provides a more balanced and demographically representative snapshot of the community by gender, while the open online format of the SurveyMonkey tool may have introduced response bias due to self-selection.
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YEARS LIVED IN BEAUMONT
*- EtC
SurveyMonkey
0-5
26%
41%
6-10
20%
20%
11-15
15%
11%
16-20
17%
10%
21-30
9%
7%
31+
12%
9%
The SurveyMonkey Online Community Survey tends to overrepresent newer residents, with 41% of respondents indicating they've lived in Beaumont for 0-5 years, compared to 26% in the ETC Statistically Valid Survey. In contrast, the ETC Survey reflects a more balanced distribution across longer -term residency groups.
For the 6-10 year category, both surveys align closely at 20%, suggesting consistent representation of mid-term residents. The 11-15 year group shows a modest gap, with 15% in the ETC Survey versus 11% in the SurveyMonkey responses.
Differences become more apparent in the longer residency ranges. Among those who have lived in Beaumont for 16-20 years, the ETC Survey reports 17%, compared to only 10% in the SurveyMonkey data. The 21-30 year category shows a slight drop-off in both, though the ETC Survey still leads at 9% compared to 7%.
In the 31+ years category, the ETC Survey again reflects a higher proportion (12%) than the SurveyMonkey survey (9%).
Overall, these findings indicate that while the SurveyMonkey tool effectively engages newer residents, the ETC Survey captures a broader and more representative range of residency durations in Beaumont —ensuring input from both recent arrivals and long-established community members.
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RACE/ETHNICITY
C EtC
d SurveyMonkey
'") esri
White Alone
33%
70%
45%
Black Alone
10%
2%
8%
American Indian
2%
2%
2%
Asian
8%
7%
9%
Pacific Islander
1%
2%
0%
Some Other Race
11%
19%
20%
Two or More Races
N/A
N/A
16%
Hispanic (Ethnicity)
47%
24%
42%
The ETC Statistically Valid Survey more accurately reflects Beaumont's racial and ethnic demographics than the SurveyMonkey Online Survey, which skews toward White, non -Hispanic respondents. For example, 33% of ETC respondents identified as White Alone, compared to 45% in ESRI data, while the SurveyMonkey survey overrepresented this group at 70%. The ETC Survey also closely aligned with the City's Hispanic population at 47%, compared to 42% in ESRI, whereas SurveyMonkey significantly underrepresented this group at 24%. Representation of Black, Asian, and American Indian residents was more balanced in the ETC data, while SurveyMonkey results showed consistent underrepresentation. Overall, the ETC Survey provides a more inclusive and demographically accurate picture of Beaumont's community.
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