HomeMy WebLinkAbout2006 072 CC RESO2006 072 CC RESO ×P % W˜ö RESOLUTION NO. 2006-072
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
BALDWIN PARK, CALIFORNIA, AUTHORIZING THE
ISSUANCE OF ONE OR MORE SERIES OF PENSION
OBLIGATION BONDS, APPROVING THE FORM OF AND
AUTHORIZING THE EXECUTION AND DELIVERY OF A
TRUST AGREEMENT AND A PURCHASE AGREEMENT,
AND AUTHORIZING A VALIDATION ACTION AND OTHER
MATTERS RELATING THERETO
WHEREAS, the legislative body the Legislative Body") of the City of Baldwin
Park the Local Agency") adopted a retirement plan pursuant to the Public Employees'
Retirement Law, commencing with Section 20000 of the Government Code of the State
of California, as amended the Retirement Law"); and
WHEREAS, the Retirement Law obligates the Local Agency to 1) make annual
contributions to the California Public Employees' Retirement System the System"), to
fund pension benefits for its employees, 2) amortize the unfunded accrued actuarial
liability with respect to such pension benefits, and 3) appropriate funds for the purposes
described in 1) and 2); and
WHEREAS, the obligation of the Local Agency to pay its unfunded accrued
actuarial liability to the System the Pension Obligation") is evidenced by a contract
dated September 1, 1965 between the Local Agency and the System, as heretofore and
hereafter amended from time to time collectively, the PERS Contract"); and
WHEREAS, the Local Agency desires to issue bonds the Pension Obligation
Bonds") in an aggregate principal amount not to exceed the Pension Obligation, plus an
additional amount to pay costs of issuance of the Pension Obligation Bonds, for the
purpose of refunding the PERS Contract and thereby providing funds to the System in
payment of all or part of the Pension Obligation and to authorize the issuance of
additional bonds in the future from time to time for the purpose of paying the obligations
of the Local Agency to the System required pursuant to the Retirement Law, including
i) all or a portion of the unfunded accrued actuarial liability of the Local Agency
remaining unpaid on the date of issuance of such additional bonds and ii) refunding the
Pension Obligation Bonds or additional series of bonds; and
WHEREAS, there is on file with the Legislative Body the proposed form of Trust
Agreement the Trust Agreement") to be entered into between the Local Agency and
Wells Fargo Bank, National Association, as trustee the Trustee"), relating to the
Pension Obligation Bonds, including the forms of Bonds attached thereto as an exhibit.
WHEREAS, there is on file with the Legislative Body the proposed form of
Purchase Agreement the Purchase Agreement") to be entered into between the Local
2006 072 CC RESO ×P % W˜ö Resolution No. 2006-072
Page 2
Agency and the California Statewide Communities Development Authority, as pool bond
issuer the Pool Bond Issuer"), relating to the Pension Obligation Bonds.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK
DOES HEREBY RESOLVE:
Section 1. This Legislative Body hereby finds and declares that the
issuance of the Pension Obligation Bonds to refund the Pension Obligation, and the
other actions contemplated by this Resolution are in the best interests of the Local
Agency and are anticipated to result in savings based on current actuarial assumptions.
Section 2. This Legislative Body hereby authorizes and approves the
issuance of the Pension Obligation Bonds and hereby authorizes and directs the Mayor
to execute the Pension Obligation Bonds, and to cause the Pension Obligation Bonds to
be authenticated and delivered in accordance with the Trust Agreement. The Pension
Obligation Bonds shall be in substantially the forms attached to the Trust Agreement,
with such changes therein, deletions therefrom and additions thereto as the Mayor shall
approve, such approval to be conclusively evidenced by the execution and delivery of
the Pension Obligation Bonds; the Pension Obligation Bonds may be issued as either
current interest fixed rate bonds or capital appreciation bonds or a combination thereof,
and may be issued in a single series or in two or more series, at one time or from time
to time, provided, however, that the aggregate initial principal amount of the Pension
Obligation Bonds shall not exceed the amount of the Pension Obligation as confirmed
by the System or the Local Agency's actuary) remaining unpaid on the date of issuance
of the Pension Obligation Bonds, plus an additional amount to pay costs of issuance of
the Pension Obligation Bonds, original issue discount, and underwriter's discount on the
Pension Obligation Bonds such underwriter's discount, excluding original issue
discount, not to exceed one percent 1%) of the aggregate principal amount of the
Pension Obligation Bonds; the maximum interest rate on each series of the Pension
Obligation Bonds shall not exceed six and one-half percent 6.5%) per annum; and the
Pension Obligation Bonds shall mature not later than thirty 30) years following their
date of issuance. The Pension Obligation Bonds shall constitute an obligation imposed
by law, pursuant to the Constitution of the State of California and the Retirement Law
and an obligation of the Local Agency not limited as to payment from any special source
of funds. The Pension Obligation Bonds shall not, however, constitute an obligation of
the Local Agency for which the Local Agency is obligated to levy or pledge any form of
taxation or for which the Local Agency has levied or pledged any form of taxation.
Section 3. The proposed form of Trust Agreement, between the Local
Agency and the Trustee, on file with the City Clerk, is hereby approved. The Mayor, the
Chief Executive Officer and the Finance Director the Authorized Representatives") are
each hereby authorized and directed, severally, or any such officer's designee, for and
on behalf of the Local Agency, to execute and deliver the Trust Agreement, substantially
in the form on file with the City Clerk, with such changes therein, deletions therefrom
and additions thereto including, but not limited to changes, deletions and additions as
may be required by a municipal bond insurer) as such Authorized Representative shall
approve, such approval to be conclusively evidenced by the execution and delivery of
2006 072 CC RESO ×P % W˜ö Resolution No. 2006-072
Page 3
the Trust Agreement. Pursuant to the terms of the Trust Agreement, the Legislative
Body hereby approves the issuance of additional series of bonds in the future from time
to time which additional series of bonds may be current interest fixed rate bonds, listed
securities, capital appreciation bonds, index bonds, auction rate securities, variable rate
bonds or tender option bonds) pursuant to supplemental trust agreements to be
approved by this Legislative Body, subject to the limitations contained in the Trust
Agreement presented to this meeting, for the purpose of refunding the Pension
Obligation Bonds or any additional series of bonds from time to time issued pursuant to
a supplemental trust agreement or for the purpose of paying the obligations of the Local
Agency to the System required pursuant to the Retirement Law, including all or a
portion of the unfunded accrued actuarial liability of the Local Agency remaining unpaid
on the date of issuance of such additional series of bonds.
Section 4. The proposed form of Purchase Agreement, between the Local
Agency and the Trustee, on file with the City Clerk, is hereby approved. The Authorized
Representatives are each hereby authorized and directed, severally, or any such
officer's designee, for and on behalf of the Local Agency, to execute and deliver the
Purchase Agreement, substantially in 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 Purchase Agreement.
Section 5. If an Authorized Representative determines that it will be
advantageous to the Local Agency to purchase municipal bond insurance or secure
other credit or liquidity enhancement with respect to some or all of the Pension
Obligation Bonds, such Authorized Representative or his designee is hereby authorized
to do so at market rates.
Section 6. This Legislative Body hereby designates Orrick, Herrington &
Sutcliffe LLP Orrick"), as bond counsel for the Pension Obligation Bonds, with bond
counsel services to consist of and be limited to rendering an opinion on the validity of
the Pension Obligation Bonds, the preparation of documents providing for the issuance
of the Pension Obligation Bonds and the validation action relating to the Pension
Obligation Bonds. This Legislative Body hereby agrees to compensate Orrick in the
amount of $7,500 to cover a portion of the cost of the validation action plus court filing
fees and publication costs if paid by Orrick), such amount to be paid from proceeds of
the Pension Obligation Bonds, or if the Local Agency does not for any reason including,
without limitation, a challenge to the validation action) issue Pension Obligation Bonds
during the 2006-2007 Fiscal Year, from any available funds of the Local Agency. In the
event the Pension Obligation Bonds are issued for purchase by the Pool Bond Issuer,
all other fees and expenses of Orrick shall be the responsibility of the Pool Bond Issuer
to be paid from proceeds of bonds the Pool Bonds") issued by the Pool Bond Issuer to
purchase the Local Agency's Pension Obligation Bonds. If the Local Agency issues
Pension Obligation Bonds in reliance on the validation and other than for purchase by
the Pool Bond Issuer and substitutes a firm other than Orrick as bond counsel, the
Legislative Body hereby agrees to compensate Orrick an additional $7,500 to more
clearly approximate its true fees and costs associated with the validation action, such
2006 072 CC RESO ×P % W˜ö Resolution No.
2006-072
Page 4
amount to be paid from proceeds of the Pension Obligation Bonds or from any available
funds. This Legislative Body hereby acknowledges and consents to and waives any
conflict arising from the appointment of Orrick also as bond counsel and issuer counsel
to the Pool Bond Issuer in connection with the Pool Bonds.
Section 7. The Authorized Representatives of the Local Agency 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 take any and all actions including any required publications of summons or other
notice) and 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 and the Trust Agreement and otherwise to carry out, give effect to and
comply with the terms and intent of this Resolution, the Trust Agreement and the
Purchase Agreement, including supplying information for and approving any portion of
any official statement or any future continuing disclosure for the Pool Bonds pertaining
to the Local Agency and approving any bond purchase agreement between the Pool
Bond Issuer and the underwriter of the Pool Bonds, including any representations,
warranties or covenants of the Local Agency contained therein.
Section 8. This Resolution shall take effect from and after its date of
adoption.
PASSED, APPROVED AND ADOPTED this 6'h day of December, 2006.
/ W~o
Ma e ozano
Mayor
2006 072 CC RESO ×P % W˜ö Resolution No. 2006-072
Page 5
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ss.
CITY OF BALDWIN PARK
I, ROSEMARY M. GUTIERREZ, Chief Deputy City Clerk, of the City of Baldwin
Park, do hereby certify that the foregoing resolution was duly and regularly approved
and adopted by the City Council of the City of Baldwin Park at a regular meeting
thereof, held on the 6th day of December, 2006 by the following vote:
AYES: COUNCILMEMBERS: ANTHONY J. BEJARANO, MARLEN
GARCIA, RICARDO PACHECO, DAVID J.
OLIVAS AND MAYOR MANUEL LOZANO
NOES: COUNCILMEMBERS: NONE
ABSENT: COUNCILMEMBERS: NONE
ABSTAIN: COUNCILMEMBERS: NONE
ROSEMARY M. GUTIERREZ,
CHIEF DEPUTY CITY CLERK
BIB]
39091-U01
2006-U02
072-U02
CC-U02
RESO-U02
LI3-U03
FO8417-U03
FO84139-U03
DO98027-U03
C6-U03
RESO-U03
1/8/2007-U04
ROBIN-U04