HomeMy WebLinkAbout2018 286 CC RESO RESOLUTION NO. 2018-286
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN
PARK, AUTHORIZING THE ISSUANCE AND SALE OF BONDS IN A
PRINCIPAL AMOUNT NOT TO EXCEED $55,000,000 TO REFUND
CERTAIN PENSION OBLIGATIONS OF THE CITY, APPROVING THE
FORM AND AUTHORIZING THE EXECUTION OF A TRUST
AGREEMENT, AUTHORIZING JUDICIAL VALIDATION
PROCEEDINGS RELATING TO THE ISSUANCE OF SUCH BONDS
AND AUTHORIZING ACTIONS RELATED THERETO
WHEREAS, by the City Council (the "Council") of the City of Baldwin Park (the
"City"), Los Angeles County, State of California, as follows; and
WHEREAS, the City has previously elected to become a contracting member of
the California Public Employees' Retirement System ("PERS"); and
WHEREAS, the Public Employees' Retirement Law (commencing with section
20000 of the California Government Code) and the contract (the "PERS Contract")
between the Board of Administration of PERS and the City Council of the City (the "City
Council") obligate the City to (i) make contributions to PERS to fund pension benefits for
certain City employees, (ii) amortize the unfunded accrued actuarial liability with respect
to such pension benefits, and (iii) appropriate funds for the foregoing purposes; and
WHEREAS, the City desires to authorize the issuance of its City of Baldwin Park
2018 Taxable Pension Obligation Bonds (the "Bonds"), in a principal amount not to
exceed $55,000,000, pursuant to the provisions of Articles 10 and 11 of Chapter 3 of Part
1 of Division 2 of Title 5 of the California Government Code, commencing with section
53570 of said Code (the "Bond Law"), for the purpose of refunding all or a portion of the
City's obligation to PERS, as evidenced by the PERS Contract, to pay the unfunded
accrued actuarial liability of the City with respect to pension benefits under the Public
Employees' Retirement Law, and paying the costs of issuance of the Bonds; and
WHEREAS, the obligations of the City with respect to the Bonds, including the
obligation to make all payments of interest and principal on the Bonds when due, will be
obligations of the City imposed by law and will be absolute and unconditional, without any
right of set-off or counterclaim, the Bonds will not constitute an obligation of the City for
which the City is obligated to levy or pledge any form of taxation, the Bonds, nor the
obligations of the City to make payments on the Bonds will constitute an indebtedness of
the City, the State of California or any of its political subdivisions in contravention of any
constitutional or statutory debt limitation or restriction and the Council will be obligated to
make appropriations to pay the Bonds from any source of legally available funds of the
City; and
WHEREAS, the City plans to sell the Bonds to an underwriter to be selected
pursuant to a competitive process (the "Underwriter"); and
WHEREAS,the City has determined the advisability of filing an action to determine
the validity of the Bonds and the actions proposed to be taken in connection therewith.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF BALDWIN PARK
DOES HEREBY RESOLVE AND ORDER AS FOLLOWS:
SECTION 1. Authorization. Bonds, in the aggregate principal amount of not to
exceed fifty-five million dollars ($55,000,000) are hereby authorized to be issued by the
City under and subject to the terms of the Bond Law and this Resolution for the purpose
of refunding the City's obligation to PERS evidenced by the PERS Contract and paying
the costs of issuance of the Bonds.
SECTION 2. Approval of Trust Agreement. The Council hereby approves trust
agreement, by and between the City and U.S. Bank National Association, as trustee,
prescribing the terms and provisions of the Bonds and the application of the proceeds of
the Bonds in the form on file with the City Clerk (the "Trust Agreement"). The Mayor, the
Chief Executive Officer and the Director of Finance (each, an "Authorized Officer"), each
acting alone, are hereby authorized and directed to execute and deliver, and the City
Clerk is hereby authorized and directed to attest to such signatures on, the Trust
Agreement for and in the name and on behalf of the City in such form, together with such
changes therein, deletions therefrom and additions thereto as the Authorized Officer
executing the same shall approve, such approval to be conclusively evidenced by the
execution and delivery of the Trust Agreement. The Council hereby authorizes the
delivery and performance of the Trust Agreement.
SECTION 3. Validation Action. In order to determine the validity of the Bonds and
the actions authorized by this Resolution and the Trust Agreement to be taken in
connection therewith, the Council hereby authorizes the City Attorney, in concert with
Bond Counsel, to prepare and cause to be filed and prosecuted to completion all
proceedings required for the judicial validation of the Bonds in the Superior Court of Los
Angeles County, under and pursuant to the provisions of sections 860 et seq. of the
California Code of Civil Procedure. The Council further authorizes the Authorized Officers,
the City Clerk, and any and all other officers, employees and agents of the City to take
any and all actions, including the execution and delivery or appropriate documentation,
as may be required to conclude such judicial validation proceedings.
SECTION 4. Official Actions. The Authorized Officers and any and all other officers
of the City are hereby authorized and directed, for and in the name and on behalf of the
City, to do any and all things and take any and all actions, which they, or any of them,
may deem necessary or advisable in the issuance, sale and delivery of the Bonds.
Whenever in this Resolution any officer of the City is directed to execute or countersign
any document or take any action, such execution, countersigning or action may be taken
on behalf of such officer by any person designated by such officer to act on his or her
behalf in the case such officer is absent or unavailable.
SECTION 5. Effective Date. This Resolution shall take effect from and after the
date of its passage and adoption.
SECTION 6. Certification. The City Clerk shall certify to the passage and adoption
hereof.
PASSED, APPROVED, AND ADOPTED this 15th day of August 2018.
411111111111111
MA LOZANO
MAYOR
ATTEST:
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES SS:
CITY OF BALDWIN PARK
I, ALEJANDRA AVILA, City Clerk of the City of Baldwin Park do hereby certify that the
foregoing Resolution No. 2018-286 was duly adopted by the City Council of the City of
Baldwin Park at a regular meeting thereof held on August 15, 2018 and that the same was
adopted by the following vote to wit:
AYES: COUNCIL MEMBERS: Baca, Garcia, Lozano, Pacheco, Rubio
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
Q7/ R
ALEJAN rA AVILA
CITY CLERK