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Home My WebLink AboutRES-95-5776 (UUT/DELETE 4% PORTION)2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 L1� 28 RESOLUTION NO. 95-5776 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HERMOSA BEACH, CALIFORNIA, FINDING THAT THE FOUR PERCENT PORTION OF THE UTILITY USERS TAX IMPOSED PURSUANT TO ARTICLE VI OF CHAPTER 30 OS THE HERMOSA BEACH MUNICIPAL CODE IS NO LONGER NECESSARY FOR ITS ADOPTED PURPOSE THE CITY COUNCIL OF CITY OF HERMOSA BEACH HEREBY FINDS, DETERMINES, RESOLVES AND ORDERS AS FOLLOWS: SECTION 1. A. Ordinance No. 85-8042 as amended by Ordinance Nos. 86-832, 86-8373, 87-8963, 88- 919, and 88-967, added Article VI to Chapter 30 of the City's Municipal Code, which Article VI relates to a utility users tax. Pursuant to Article VI, the City imposed a tax upon persons in the City using intrastate telephone communication services, electrical energy, gas energy, water (which is delivered through mains or pipes) and cable television service. Article VI provides that the rate of tax is ten percent of the charges made for the above-described utilities. B. Four percent of the ten percent utility users tax imposed by Article VI of Chapter 30 is a special tax. Pursuant to Section 30-64 of Article VI, the proceeds of such special tax shall be collected and placed in a special fund only to be used for the costs of the acquisition and financing by the City of the property commonly known as the A.T. & S.F. Railroad right-of-way (Parcel A and Parcel B). C. A portion of the purchase price for Parcel A was paid for with available funds. The remainder of the purchase price for Parcel A was paid for with a portion of the proceeds of Certificates of Participation, dated as of September 1, 1989 and executed and delivered pursuant to a Trust Agreement dated as of September 1, 1989 (the "Trust Agreement") by and among Seattle -First National Bank, as Trustee, the Independent Cities Lease Finance Authority (the "Authority") and the 4- \%up, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 `*40-' 28 Cities of Hermosa Beach, Lynwood and Vernon, California, representing the undivided fractional interests of the owners thereof in lease payments to be made by the Cities of Hermosa Beach, Lynwood and Vernon, California as the rental for projects (including Parcel A) leased from the Authority pursuant to separate lease agreements, including a lease agreement between the City and the Authority, dated as of September 1, 1989 (the "Lease Agreement"). Available funds for the purchase price of Parcel B (which is not a part of the Certificates of Participation financing) have been set aside. D. Principal and interest due with respect to the portion of the Certificates representing interests in the City's lease payments pursuant to the Lease Agreement were to be made by the City from the four percent special tax portion of the utility users tax. E. Section 30-65 of Article VI provides that the four percent special tax portion of the utility users tax will terminate upon a finding by the City Council that the special tax is no longer necessary for its adopted purpose. Article VI further provides that after a resolution is adopted by the City Council finding that the need no longer exists for the special tax, all monies that remain in the special fund, or are later placed in such fund, shall be used for the acquisition and maintenance of open space lands for the benefit of the citizens of the City. SECTION 2. Pursuant to an Escrow Agreement dated as of September 13, 1995, by and between the City and Seattle First National Bank, as Escrow Agent (the "Escrow Agreement"), the City has provided for (i) the payment on their due dates of all lease payments under the Lease Agreement coming due and payable on and prior to September 1, 1997 and (ii) the prepayment on September 1, 1997 of the principal component of all lease payments coming due and payable on and after September 1, 1998, together with premium and accrued interest to the date of prepayment (and thereby the advance refunding of the Certificates of Participation relating to the City). All obligations of the City under the Trust Agreement to the holders of the outstanding Certificates relating to the City have ceased and terminated. Based on the foregoing, the City Council hereby finds that as of the effective date of the ordinance attached to this Resolution as -2- lvfto, 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 I%WV 28 Exhibit A, the special tax imposed pursuant to Article VI of Chapter 30 of the City's Municipal Code, which is the four percent portion of the utility users tax imposed pursuant to Article VI, will no longer be necessary for its adopted purpose of the acquisition and financing by the City of the property commonly known as the A.T. & S.F. Railroad right-of-way. SECTION 3. The City Council hereby finds and declares that upon the adoption of the ordinance attached to this Resolution as Exhibit A, such four percent special tax portion of the utility users tax will be terminated in accordance with Section 11 of such ordinance. SECTION 4. The City Council hereby finds and declares that the special fund established for and serving as the repository of the four percent special tax portion of the utility users tax shall continue in effect following the adoption of the ordinance attached hereto as Exhibit A. The City Council further finds and declares that all monies which remain in such special fund or which are later placed in such fund, shall be used for the acquisition and maintenance of open space lands for the benefit of the citizens of the City. SECTION 5. This resolution shall take effect immediately upon its adoption. PASSED APP O and ADOPTED I ATTEST: day of October, 1995. of the City Council and MAYOR of the City of Hermosa Beach, California City Clerk ` -3- APPROVED AS TO FORM: 3 A== , )L - - City Attorney \4=011 STATE OF CALIFORNIA COUNTY OF LOS ANGELES CITY OF HERMOSA BEACH I. Naoma Valdes, Deputy City Clerk of the City Council of the City of Hermosa Beach, California, do hereby certify that the foregoing Resolution No. 95-5776 was duly and regularly passed, approved and adopted by the City Council of the City of Hermosa Beach at a Regular Meeting of said Council at the regular place thereof on October 24, 1995. 11 ' The vote was as follows: AYES: Benz, Edgerton, Oakes, Reviczky, Mayor Bowler NOES: None ABSTAIN: None ABSENT: None DATED: October 262 1995 Deputy City Clerk