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Home My WebLink About6590_CCv0001.pdf RESOLUTION NO. 6590 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS PROVIDING FOR THE ISSUANCE OF ONE OR MORE SERIES OF CITY OF REDLANDS TAXABLE PENSION OBLIGATION BONDS, AND APPROVING THE FORMS OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF AN INDENTURE RELATING THERETO, AND AUTHORIZING A VALIDATION ACTION AND AUTHORIZING CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH WHEREAS, the City council of the City of Redlands (the "City Council" and the "City", respectively) adopted a retirement plan pursuant to the Public Employees' Retirement Law, commencing at Section 20000 of the Government Code of the State of California, as amended (the "PERS Law"); and WHEREAS, among other things, the PERS Law obligates the City to amortize the unfunded accrued actuarial liability to the California Public Employees' Retirement System (including any successor system established by the State of California, (the "State Retirement System"), with respect to pension benefits for its employees who are members thereof; and WHEREAS, the obligation of the City to pay its unfunded accrued actuarial liability to the State Retirement System (the "PERS Obligation") is evidenced by a contract between the City and the State Retirement System, dated as of June 1, 1945, as amended thereafter from time to time(collectively, the "PERS Contract"); WHEREAS, as of June 30, 2007, based upon the actuarial report of the State Retirement System, the City will have an obligation of approximately $27,000,000 pursuant to the PERS Law as an unfunded accrued actuarial liability of the State Retirement System; WHEREAS, the City desires to issue its taxable pension obligation bonds in one or more series (the "Series 2007 Bonds") in an aggregate principal amount equal to the sum of(a) the principal amount not to exceed the total amount of the PERS Obligation, (b) the costs of issuance of the Series 2007 Bonds (including underwriters' discount), and (c) the original issue discount (if any) on the Series 2007 Bonds, for the purpose of refunding the PERS Contract and thereby providing funds to the State Retirement System for investment; WHEREAS, the City desires to authorize the issuance of additional pension obligation bonds (the "Additional Bonds," and together with the Series 2007 Bonds, the "Bonds") for the purpose of refunding any additional PERS Obligations, in the future from time to time; WHEREAS, there has been presented to this meeting the form of an Indenture proposed to be entered into by and between the City and U.S. Bank National Association, as trustee (the "Trustee"), relating to the Bonds (the "Indenture"); WHEREAS, this Council desires to authorize and direct the execution of certain documents and the issuance of the Bonds; and RVPUBT13ALIMl728650.l 1 WHEREAS, the City has full legal right, power and authority under the Constitution and the laws of the State of California to enter into the transactions hereinafter authorized; NOW THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED by the City Council of the City of Redlands, as follows: Section 1. Recitals. The foregoing recitals are true and correct and this Council hereby so finds and determines. Section 2. Findings. The Council hereby finds and declares that the issuance of the Bonds to refund the PERS Contract and the other actions contemplated hereby are in the best interests of the City and are expected, based on investment and other assumptions, to result in significant savings to the taxpayers of the City. Section 3. Issuance of Bonds. The Council hereby authorizes and approves the issuance of the Series 2007 Bonds to refund the PERS Contract and the issuance of Additional Bonds from time to time to refund any additional PERS Obligations, and the Council hereby authorizes and directs any of the Mayor, the Mayor Pro Tem and the City Manager of the City (each, an "Authorized Officer") to execute the Series 2007 Bonds and the City Clerk of the City(the "City Clerk") to affix and attest the seal of the City thereto and to cause the Series 2007 Bonds to be authenticated and delivered in accordance with the Indenture; provided, that the aggregate principal amount of the Series 2007 Bonds (which in no event shall exceed thirty-five million dollars ($35,000,000) net of the original issue discount (if any) on the Series 2007 Bonds) shall not exceed the sum of the unpaid principal amount of the PERS Obligation, plus the underwriter's discount on the Series 2007 Bonds and plus the original issue discount (if any) on the Series 2007 Bonds and plus the costs of issuance of the Series 2007 Bonds (including any bond insurance premiums and administrative cost related to the Series 2007 Bonds); and provided further, that the interest rate on the Series 2007 Bonds which are issued as fixed rate bonds shall not exceed six and one-half percent (6.50%) per annum and the interest rate on the Series 2007 Bonds which are issued as variable rate bonds shall not exceed the maximum rate permitted by law; and provided further, that the Series 2007 Bonds shall mature not later than thirty(30) years from their date of issuance. The Series 2007 Bonds shall be in substantially the forms set forth in the Indenture, with such changes therein, deletions therefrom and additions thereto as an Authorized Officer, or said officer's designee, shall approve as provided herein, such approval to be conclusively evidenced by the execution and delivery of the Series 2007 Bonds. Any Bonds may (as determined by an Authorized Officer or said officer's designee), be issued as fixed rate bond , auction rate securities, variable rate bonds, indexed notes, current interest bonds, deferred interest bonds, capital appreciation bonds, convertible capital appreciation bonds, embedded cap bonds, equity participation bonds or synthetic or hedged fixed rate bonds (or any combination of the foregoing) and may have applicable call features, base rates, variable rate determination methods, index maturities, spreads, spread multipliers, authorized denominations, payment date, applicable indexes and other variable items related thereto and may use credit enhancement (including, but not limited to, bond insurance, letters of credit and surety bonds). The City is obligated to satisfy its obligations under the Bonds from any lawfully available fiends of the City. Section 4. The Indenture. The City is hereby authorized to enter into the Indenture with the Trustee, and an Authorized Officer, or said officers, is hereby authorized and directed to execute and deliver the Indenture on behalf of the City, which shall be in substantially the form RVPUB\FRAUW728650.t 2 presented to this meeting, with such changes therein, deletions therefrom and additions thereto as an Authorized Officer, or said officer's designee, shall approve (but consistent with the authority granted to an Authorized Officer, or said officer's designee, in Section 3 hereof including, but not limited to, additions necessary for the issuance of the types of bonds referred to in Section 3 hereof) in consultation with the City Attorney ("City Attorney") and Best Best & Krieger LLP, Bond Counsel for the Bonds, and such approval shall be conclusively evidenced by the execution and delivery of the Indenture. Pursuant to the tenns of the Indenture, any Additional Bonds shall be issued pursuant to supplemental indentures, subject to the limitations contained herein and in the Indenture. Section S. Validation Action. The officers and agents of the City are, and each of them hereby is, authorized and directed to do any and all things, including bringing a validation action under Section 860 of the California Code of Civil Procedure, and to execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this resolution, the Indenture and the Series 2007 Bonds and otherwise to carry out, give effect to and comply with the terms and intent of this resolution, and all such actions heretofore taken by such officers are hereby ratified, confirmed and approved. Section 6. Effective Date. This resolution shall take effect immediately upon its passage. ADOPTED, SIGNED AND APPROVED on the 20`" day of March, 2007 Ma r of the City of Redlands, California ATTEST: City C rk of the C f edlands, California RVI'MMAUMM8650.1 3 CLERK'S CERTIFICATE I, Lorne Poyzer, City Clerk of the City of Redlands, do hereby certify as follows: The foregoing resolution is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of said City duly and regularly held on the 201" day of March, 2007, of which meeting all of the, members of said City Council had due notice and at which a majority thereof were present; and that at said meeting said resolution was adopted by the following vote: AYES: Councilmembers Gilbreath, Gil, Gallagher, Aguilar; Mayor Harrison NOES: None ABSENT: None ABSTAIN: None City Clerk of the Citydl ds, California RVPUB1fBAUM1728650.1 4