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.P City of San Leandro Meeting Date: December 19, 2011 Resolution - Council File Number: 11 -428 Agenda Section: ACTION ITEMS Agenda Number: TO: City Council FROM: Lianne Marshall Interim City Manager /Executive Director BY: James O'Leary Interim Finance Director FINANCE REVIEW: James O'Leary Interim Finance Director TITLE: ADOPT: Resolution of the City Council of the City Of San Leandro Approving Inter -Fund Loan From the Water Pollution Control Plant Fund And Appropriating $6,000,000 to Pay -Down Public Safety Side Fund Obligation Resolution of the City Council of the City Of San Leandro Approving Inter -Fund Loan From the Water Pollution Control Plant Fund And Appropriating $6,000,000 to Pay -Down Public Safety Side Fund Obligation WHEREAS, the City of San Leandro ( "City ") is a contracting member of the California Public Employees' Retirement System ( "CaIPERS "), and under its contract with CaIPERS, the City is obligated to make certain payments to CaIPERS for retired public safety employees under the Side Fund program of CaIPERS, which amortizes such obligations over a fixed period of time; and WHEREAS, CaIPERS created for each member a side fund to amortize each agency's June 30, 2003 unfunded liability over a fixed term at a fixed interest rate. A negative side fund causes the required employer contribution rate to be increased by the amortization of the side fund; and WHEREAS, in addition to issuance of the pension obligation bonds, staff evaluated the opportunity to utilize a loan from the Water Pollution Control Plant ( "WPCP ") Fund reserves to partially cover the side fund refinancing. The amount of the bond financing could be prudently reduced by $6,000,000; and WHEREAS, a loan of $6,000,000 from the WPCP fund will be paid by the General City of San Leandro Page 1 Printed on 12/13/2011