Loading...
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