Reso 2011-166 - Laserfiche WebLink

Home

IN THE CITY COUNCIL OF THE CITY OF SAN LEANDRO RESOLUTION NO. 2011 -166 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LEANDRO AUTHORIZING THE ISSUANCE OF PENSION OBLIGATION BONDS AND THE FILING OF A VALIDATION ACTION TO REFUND THE OUTSTANDING SIDE FUND OBLIGATIONS OF THE CITY TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHEREAS, the City of San Leandro (the "City ") is a contracting member of the California Public Employees' Retirement System ( "PERS "), and under its contract with PERS the City is obligated to make certain payments to PERS in respect of retired public safety employees under the Side Fund program of PERS which amortizes such obligations over a fixed period of time (the "PERS Side Fund Obligations "); and WHEREAS, the City is authorized under 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"), to issue its bonds for the purpose of refunding certain outstanding obligations of the City, including the PERS Side Fund Obligations; and WHEREAS, in order to refund the PERS Side Fund Obligations and thereby realize interest savings, the City proposes at this time to authorize the issuance of its bonds under the Bond Law for the purpose of refunding the PERS Side Fund Obligations in whole or in part; and WHEREAS, the City Council wishes at this time to authorize the issuance of such bonds and the institution of judicial proceedings to determine the validity thereof; NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of San Leandro as follows: Section 1. Authorization of Bonds. The City Council hereby authorizes the issuance of its bonds under the Bond Law in the aggregate principal amount of not to exceed $26,000,000 (the "Bonds "). The proceeds of the Bonds shall be applied to refund the unfunded accrued actuarial liability represented by the PERS Side Fund Obligations, plus an amount required to pay all costs of issuing the Bonds (including underwriter's discount and original issue discount, if any). Section 2. Material Provisions of Bonds. The Bonds shall be issued under an Indenture of Trust (the "Indenture ") between the City and U.S. Bank National Association, or another trustee selected by the Finance Director of the City, as trustee (the "Trustee "), in substantially the form on file with the City Clerk. The final form of the Indenture shall be subject to approval by resolution of the City Council adopted following the conclusion of proceedings described in Section 4. The Bonds shall be subject to the following limitations: