resolution authorizing the issuance of pension bonds

7/31/2019 Resolution Authorizing the Issuance of Pension Bonds

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CITY OF CARMEL-BY-THE-SEA

CITY COUNCIL

RESOLUTION 2012-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF CARMEL-BY-THE-SEA AUTHORIZING THE

ISSUANCE OF PENSION OBLIGATION BONDS TO

REFINANCE THE OUTSTANDING SIDE FUND

OBLIGATIONS OF THE CITY TO THE CALIFORNIA

PUBLIC EMPLOYEES RETIREMENT SYSTEM AND

AUTHORIZING INSTITUTION OF JUDICIAL

VALIDATION PROCEEDINGS

WHEREAS, the City of Carmel-by-the-Sea (the City) is a contracting memberof 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

employees under the Side Fund program of PERS which amortizes such obligations overa fixed period of time (the PERS Side Fund Obligations); and

WHEREAS, the City is authorized under the provisions of Articles 10 and 11 ofChapter 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 PERSSide Fund Obligations; and

WHEREAS, in order to refund all or a portion of the PERS Side Fund

Obligations and thereby realize interest savings, the City proposes at this time toauthorize the issuance of its bonds under the Bond Law for the purpose of refinancing 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

Carmel-by-the-Sea as follows:

Section 1. Authorization of Bonds. The City Council hereby authorizes theissuance of its bonds, notes or other obligations (the Bonds) under the Bond Law for

the purpose of refunding all or a portion of the unfunded accrued actuarial liability

represented by the PERS Side Fund Obligations, as reported to the City by PERS. Theprincipal amount of the Bonds shall not exceed the amount required to refunded such

accrued actuarial liability plus an amount required to pay all costs of issuing the Bonds.

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Section 2. Material Provisions of Bonds. The Bonds shall be issued under anIndenture of Trust (the Indenture) between the City and Union Bank, N.A., 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 3. The Bonds shall besubject to the following limitations:

(a) The Bonds shall mature over a term not exceeding the amortization

period which has been established by PERS for the PERS Side Fund

Obligations.

(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 fromany other source of legally available funds of the City. The Bondsshall 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. Institution of Judicial Validation Proceedings. The City Council

hereby authorizes the filing of an action to determine the validity of the Bonds, theIndenture and related matters in the Superior Court of Monterey 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 tothe 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 4. Engagement of Professional Services. The firm of NHA Advisors,

LLC is hereby retained as financial advisor to the City in connection with the issuance

and sale of the Bonds, and the firm of Jones Hall, A Professional Law Corporation, ishereby retained as bond counsel to the City in connection with the issuance and sale of

the Bonds and the judicial validation thereof. The City Administrator is hereby

authorized and directed on behalf of the City to execute an agreement with each of saidfirms in the respective forms on file with the City Clerk.

Section 5. Effective Date. This Resolution shall take effect from and after thedate of approval and adoption thereof.

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PASSED AND ADOPTED by the City Council of the City of Carmel-by-the-Sea

this 3rd day of July, 2012, by the following vote:

AYES: COUNCIL MEMBER:

NOES: COUNCIL MEMBER:

ABSENT: COUNCIL MEMBER:

JASON BURNETT, MAYOR

ATTEST:

Heidi Burch, City Clerk

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resolution authorizing the issuance of pension bonds

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