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HomeMy WebLinkAbout6627_CCv0001.pdf RESOLUTION NO. 6627 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDLANDS SUPPLEMENTING RESOLUTION NO. 6590 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, BOND PURCHASE AGREEMENT AND OFFICIAL STATEMENT 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, under and pursuant to Resolution No. 6590 (the "POB Resolution") adopted by the City Council on March 20, 2007, the City authorized the issuance of its taxable pension obligation bonds in one or more series (the "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 Bonds (including underwriters' discount), and (c) the original issue discount (if any) on the Bonds, for the purpose of refunding the PERS Contract and thereby providing funds to the State Retirement System for investment; WHEREAS, the City, acting pursuant to the provisions of Section $60 et seq. of the California Code of Civil Procedure and Government Code Sections 53511 and 535$9.5, has filed a complaint in the Superior Court of the State of California for the County of San Bernardino seeking judicial validation of the proceedings and transactions relating to the issuance of the Bonds and any future series of bonds to be issued by the City in connection therewith and is requesting the court to enter a default judgment to the effect, among other things, that the Bonds are valid, legal and binding obligations of the City and in conformity with all applicable of law; WHEREAS, the Council has determined to supplement the POB Resolution as provided herein; RVPURTBAUM\732900.l 1 WHEREAS, there have been presented to this meeting forms 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"), the proposed form of Bond Purchase Agreement for the Bonds (the "Bond Purchase Agreement") among the City and the underwriter, E.J. De La Rosa & Co., Inc. (the "Underwriter") and the proposed form of Official Statement relating to the Bonds; and 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. Indenture. The proposed form of Indenture, between the City and the Trustee is hereby approved. Any of the Mayor, the Mayor Pro Tem, the City Manager, or the City Manager's designee (each, an "Authorized Representative'), is hereby authorized and directed to execute and deliver the Indenture on behalf of the City, which shall be in substantially the form on file with the City Clerk, with such changes therein, deletions therefrom and additions thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery of the Indenture. Section 4. Bond Purchase Agreement. The proposed form of Bond Purchase Agreement, between the City and the Underwriter, is hereby approved. The Authorized Representative is hereby authorized and directed, for and on behalf of the City, to execute and deliver the Bond Purchase Agreement, substantially in the form presented to this meeting, with such changes therein, deletions therefrom and additions thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement; provided, that the Underwriter's discount shall not exceed 0.9% of the principal amount of the Bonds and the interest rates on the Bonds shall be such that the true interest cost of the Bonds which are issued as fixed rate bonds shall not exceed 6.5%per annum; and provided further, that the Bonds shall mature not later than thirty (30) years from their date of issuance. Section 5. Official Statement. The Official Statement in preliminary form relating to the Bonds (the "Official Statement"), presented to this meeting and on file with the City Clerk of the City, is hereby approved, and if requested by the Underwriter, the Authorized Representative is hereby authorized to certify to the Underwriter on behalf of the City that the Official Statement in preliminary form was "deemed final" as of its date by the City, except for certain final pricing and related information pursuant to Rule 15c2-12 of the Securities and Exchange Commission. The City hereby approves the delivery to the Underwriter of the Official Statement in preliminary form with such changes therein as such officer may require or approve, such RVPUBTBAUM\732900.1 2 approval to be conclusively evidenced by the execution and delivery thereof, and the Underwriter is hereby authorized to distribute copies of the Official Statement in preliminary form to persons who may be interested in the purchase of the Bonds. If requested by the Underwriter, the Authorized Representative is hereby authorized to execute and delivery said Official Statement in final form, with such changes therein as such officer may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof, and the Underwriter is hereby authorized to distribute copies of the Official Statement in final form to all purchasers of the Bonds. Section 6. POB Resolution in Full Force and Effect. Except as otherwise herein specifically supplemented, all terms and provisions of the POB Resolution shall remain in full force and effect, and all authorizations, provisions and terms of the POB Resolution shall apply to this resolution with the same effect as if set forth herein. The officers and agents of the City are, and each of them hereby is, authorized and directed to do any and all things 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, the Bond Purchase Agreement, the Official Statement and the 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 7. Effective Date. This resolution shall take effect immediately upon its passage. ADOPTED SIGNED AND APPROVED by the City Council of the City of Redlands at a regular meeting on the 19th day of June, 2007, by the following vote: AYES: Councilmembers Gil, Gallagher, Aguilar; Mayor Harrison NOES: None ABSENT: Councilmember Gilbreath ABSTAIN: None M or of the City of Redlands, California ATTEST: City rk of the Redlands, California RV PUBT13AUM1732900.1 3 CLERK'S CERTIFICATE I, Lorrie 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 19th day of June, 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 Gil, Gallagher, Aguilar; Mayor Harrison NOES: None ABSENT: Councilmember Gilbreath ABSTAIN: None 5Lore Poyze , it Clerk RVPU13tFBAUM\7329W-1 4