8D Consent 2011 0919 - Laserfiche WebLink

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(b) Interest on the Bonds will be calculated at a fixed rate, which shall not exceed the maximum rate of interest permitted by law. (c) Principal of and interest and redemption premiums (if any) on the Bonds shall be payable from the General Fund of the City and from any other source of legally available funds of the City. The Bonds shall not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation. (d) Proceeds of the Bonds, except to the extent required to pay the costs of issuing and underwriting the Bonds, shall be deposited with the Trustee and applied to discharge the PERS Side Fund Obligations of the City in whole or in part. Section 3. Minimum Savings Threshold. The Bonds shall be issued only if the net present value savings of refunding the PERS Side Fund Obligations are at least equal to 3.00% of the principal amount of the PERS Side Fund Obligations which are refunded. For purposes of determining the net present value savings of the refunding, the rate of interest on the PERS Side Fund Obligations shall be assumed to be 7.75 %. Determination of such net present value savings shall be made by Public Financial Management Inc., as financial advisor to the City, whose determination shall be final and conclusive. Section 4. Institution of Judicial Validation Proceedings. The City Council hereby authorizes the filing of an action to determine the validity of the Bonds, the Indenture and related matters in the Superior Court of Alameda County, under the provisions of Sections 860 et seq. of the Code of Civil Procedure of the State of California. The firm of Jones Hall, A Professional Law Corporation, as bond counsel to the City, is hereby directed, in concert with the City Attorney, to prepare and cause to be filed and prosecuted to completion all proceedings required for the judicial validation of the Bonds, the Indenture and related matters. Section 5. Authorization to Acquire a Municipal Bond Insurance Policy. In connection with the issuance of the Bonds, the City may negotiate the purchase of a municipal bond insurance policy for the Bonds and enter into one or more agreements with respect thereto, and the obligations of the City under any such arrangement shall be payable from the sources described in Sections 2(c) and (d) above. Section 6. Approval of Additional Documents. Upon completion of the validation action authorized under Section 4, the City staff shall cause the following to be submitted to the City Council for final approval: (a) an agreement for the purchase of the Bonds by Wedbush Securities Inc., as underwriter, (b) a Preliminary Official Statement relating to the Bonds, to be prepared by Jones Hall, A Professional Law Corporation, acting as disclosure counsel to the City, (c) the final form of the Bond Indenture, (d) a continuing disclosure certificate or agreement and (e) such other agreements and documents as are necessary or convenient to implement the issuance, sale and delivery of the Bonds. Section 7. Effective Date. This Resolution shall take effect from and after the date of approval and adoption thereof. -2-