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HomeMy Public PortalAbout2022.112 (06-21-22) RESOLUTION NO. 2022.112 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING THE ISSUANCE OF PENSION OBLIGATION BONDS TO REFINANCE OUTSTANDING OBLIGATIONS OF THE CITY TO THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM WHEREAS, the City is obligated by the Public Employees' Retirement Law, commencing with Section 20000 of the Government Code of the State of California, as amended (the "Retirement Law"),to make payments relating to pension benefits accruing to the California Public Employees' Retirement System's ("CaIPERS") members, including the City; and WHEREAS, the City is obligated specifically to make certain payments to CaIPERS in respect of current and retired public safety employees and miscellaneous employees under the pension programs of CaIPERS that amortize such obligations over a fixed period of time, including normal costs (collectively, the "CaIPERS Obligation"); and WHEREAS, the CaIPERS Obligation is evidenced by a contract or contracts with CaIPERS with respect to public safety employees and miscellaneous employees of the City, as heretofore and hereafter amended from time to time (collectively, the "CaIPERS Contract"); and WHEREAS, on April 9, 1946, the voters in the City approved a retirement tax to support amounts owed by the City to CaIPERS pursuant to the CaIPERS Contract (the "Pension Tax Override"), which Pension Tax Override is accounted for in a special fund, separate and apart from the General Fund, and available only for its authorized purposes; 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 Obligation; WHEREAS, in order to refund the PERS Obligation 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 refinancing the PERS Obligation in whole or in part; 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; and WHEREAS, in order to comply with Government Code Section 5852.1, certain information relating to the proposed bonds is set forth in the staff report accompanying this Resolution, and such information is hereby disclosed and made public; and NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS: Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution. 1 Section 2. The City Council hereby authorizes the issuance of one or more series of bonds by the City from time to time under the Bond Law for the purpose of financing the PERS Obligation in whole or in part (collectively, the "Bonds")- provided, however, that the aggregate principal amount of the Bonds shall not at the time of issuance of any such series of Bonds exceed the aggregate amount of the unfunded accrued actuarial liability represented by the PERS Obligation, as reported to the City by PERS, plus an amount required to pay all costs of issuing the Bonds (including underwriter's discount and original issue discount, if any). Section 3. Each series of Bonds shall be issued under an Indenture of Trust (the "Bond Indenture") between the City and a national banking association as trustee to be determined prior to the sale of the Bonds as described in Section 4 below (the "Trustee"), in substantially the form on file with the City Clerk, together with any changes therein or additions thereto deemed advisable by the City Manager or the Finance Director (each, an "Authorized Officer'). The execution of a Bond Indenture by an Authorized Officer shall be conclusive evidence of the approval of any such changes or additions. The final form of each Bond 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 be subject to the following limitations: (a) Each series of Bonds shall mature over a term not exceeding 30 years from the date of their original issuance. (b) Interest on each series of 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 from any other source of legally available funds of the City, including without limitation, the Pension Tax Override. The Bonds shall not constitute an obligation of the City for which the City is obligated to levy or pledge any form of taxation, except to the extent that the Pension Tax Override is specifically pledged to any series of Bonds. (d) Proceeds of each series of Bonds, except to the extent required to pay the costs of issuing and underwriting such Bonds, shall be deposited with the Trustee or in a trust meeting the requirements of Section 115 of the Internal Revenue Code, as amended, or successor sections of such Code, and applied to discharge the PERS Obligation of the City in whole or in part. Section 4. The City Council hereby authorizes the filing of an action to determine the validity of the Bonds, the Bond Indentures and related matters in the Superior Court of Los Angeles 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 to the 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 Bond Indentures and related matters. 2 Section 5. Upon successful completion of the validation action authorized under Section 3, City staff shall cause the following to be submitted to the City Council for final approval, as and to the extent applicable: (a) an agreement for the purchase of one or more series of Bonds by a bond underwriter or private placement bank, (ii) to the extent a public offering of the Bonds is conducted, a Preliminary Official Statement relating to one or more series of Bonds, to be prepared by Jones Hall, A Professional Law Corporation, acting as disclosure counsel to the City, (iii) the final form of the Bond Indentures or other authorizing instruments, and (iv) such other agreements and documents as are necessary or convenient to implement the issuance, sale and delivery of a series of Bonds from time to time. Section 6. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood. Section 7. This Resolution shall take effect from and after the date of approval and adoption thereof. PASSED, APPROVED AND ADOPTED THIS 21st day of June 2022. q! I Jorge Casan ATTEST: tJ'IA.'11116' 4 Z5-- Maria Quinonez, City Clerk Ernie Her an ez, City Manager APPROVED AS TO FORM: APPROVED AS TO CONTENT: Noel Tapia, City Attorn4 Ernie Her dez, City Manager 3 STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a meeting held on the 21stday of June, 2022. AYES: COUNCIL MEMBERS FLORES, SANTANA, SOTO, MAYOR PRO TEM SOLACHE AND MAYOR CASANOVA NOES: NONE ABSTAIN: NONE ABSENT: NONE Maria Quinonez, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) I, Maria Quinonez, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. 2022.112 on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 215tday of June, 2022. W94z4i - - Maria Quinonez, City Clerk 4