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File Number: 11 -430 Statement and Continuing Disclosure Certificate. These documents are presented in draft form as reviews and updating continue by the Financing Team, which include the City Attorney, Bond Counsel, Financial Advisor, Underwriter, Actuary, and Finance staff. Indenture of Trust The bonds will be issued under an indenture of trust between the City and the trustee, U.S. Bank. The final form of the indenture of trust will be approved by the City Council following the conclusion of the validation proceedings. The indenture of trust provides for the authorization and terms of the bonds, the deposit and application of the bond proceeds, the security of the bonds and investment of the proceeds, the role of the trustee, and other provisions. Bond Purchase Agreement Under the terms and conditions and upon the basis of the representations set forth in the Purchase Agreement, the Underwriter agrees to purchase from the City all of the principal amount of the City of San Leandro 2012 Taxable Pension Obligation Bonds. The bonds shall be dated the date of delivery and shall have the maturities, bear interest at the rates per annum, have the yields, and be subject to mandatory sinking fund redemption, all as set forth in the agreement. The purchase price for the bonds shall be calculated as the principal amount of the bonds, less an underwriters' discount plus (or minus) and a net original issue premium (or discount). The bonds shall be as described in, secured under and issued pursuant to the Indenture and Articles 10 and 11 of Chapter 3 of Part 1 of Division 2 of Title 5 of the California Government Code. Official Statement and Continuing Disclosure Certificate The purpose of the Official Statement is to provide information concerning the issuance of the City of San Leandro 2012 Taxable Pension Obligation Bonds. The Official Statement has been prepared in connection with the sales of the bonds but does not constitute an offer to sell or the solicitation of an offer to buy. The Official Statement fully describes the pension obligation bonds including the purpose, authority for issuance, security, plan for financing, and the financial condition of the City. Statements from the City's CAFR are significant in the disclosure. CONCLUSION Staff and the Finance Committee recommend City Council approval of the resolution authorizing issuance of pension obligation bonds, approving the final form of the related financing documents, and approving official actions to refinance the outstanding Public Safety side fund obligations of the City. The bond transaction would refund the existing CalPERS side fund obligation, not to exceed $20,000,000, over the same term in the same amount plus issuance costs and take advantage of lower bond interest rates. Committee Review and Actions The September 9, 2011 Finance Committee Meeting highlights were submitted and approved on September 19, 2011 by City Council authorizing Issuance of Pension City of San Leandro Page 3 Printed on 12/13/2011