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Sx <br />i! <br />A' City of San Leandro <br />Meeting Date: December 19, 2011 <br />00 11 . Staff Report <br />File Number: 11 -430 Agenda Section: ACTION ITEMS <br />Agenda Number: 10.B. <br />TO: City Council <br />FROM: Lianne Marshall <br />Interim City Manager /Executive Director <br />BY: James O'Leary <br />Interim Finance Director <br />FINANCE REVIEW: James O'Leary <br />Interim Finance Director <br />TITLE: Staff Report for Resolution Authorizing the Sale of Pension Obligation Bonds to <br />Refinance Outstanding Side Fund Obligations of the City to the California <br />Public Employees' Retirement System (CaIPERS), Approving the Final Form of <br />Related Financing Documents, and Approving Official Actions (authorizes the <br />sale of bonds to pay off the side fund debt to CalPERS and create new debt at <br />a lower interest rate) <br />Staff Report for Resolution Authorizing the Sale of Pension Obligation Bonds to Refinance <br />Outstanding Side Fund Obligations of the City to the California Public Employees' <br />Retirement System (CaIPERS), Approving the Final Form of Related Financing Documents, <br />and Approving Official Actions (authorizes the sale of bonds to pay off the side fund debt to <br />CalPERS and create new debt at a lower interest rate) <br />RECOMMENDATION <br />Staff recommends City Council approval of the resolution authorizing issuance of pension <br />obligation bonds, approving the final form of the related financing documents, and approving <br />official actions to refinance the outstanding Public Safety side fund obligation of the City. <br />The bond transaction would refinance the existing CalPERS side fund obligation over the <br />same term in the same total amount, plus issuance costs (less $6,000,000 to be borrowed <br />from the Water Pollution Plant Fund for the initial pay -down of the side fund obligation) and <br />take advantage of lower bond interest rates. Financing documents include the Indenture of <br />Trust between the City and U.S. Bank National Association, Bond Purchase Agreement, and <br />the Official Statement and Continuing Disclosure Certificate. <br />BACKGROUND <br />The City's Safety Plan in the CalPERS retirement system is a cost - sharing multiple - employer <br />City of San Leandro Page 1 Printed on 12/13/2011 <br />