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HomeMy WebLinkAbout04-099BOARD OF SUPERVL~C31 COUNTY OF BUTTE, STATE OF CALIFOF~NIA_ Resolufion No. 04-099 RESOLUTION SUPPLEMENTING RESOLUTION N0.04-036 AND AUTHORIZING THE ISSUANCE OF TWO ADDITIONAL SERIES OF PENSION OBLIGATION BONDS, APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A FIRST SUPPLEMENTAL TRUST AGREEMENT, A SECOND SUPPLEMENTAL TRUST AGREEMENT AND ONE OR MORE PURCHASE AGREEMENTS WITH DEPFA BANK, AND OTHER MATTERS RELATING THERETO WHEREAS, the legislative body (the "Legislative Body"} of the County of Butte (the "Local Agency") adopted a retirement plan pursuant to the Public Employees' Retirement Law, commencing with Section 20000 of the Government Code of the State of California, as amended (the "Retirement Law"); and WHEREAS, the Retirement Law obligates the Local Agency to (1) make annual contributions to the California Public Employees' Retirement System (the "System"), to fund pension benefits for its employees, (2) amortize the unfunded accrued actuarial liability with respect to such pension benefits, and (3) appropriate funds for the purposes described in (1) and (2); and WHEREAS, the obligation of the Local Agency to pay its unfunded accrued actuarial liability to the System and its normal annual contribution to the System (collectively, the "Pension Obligation") is evidenced by a contract between the Local Agency and the System, dated April 1, 1945 and witnessed February 26, 1945, and as amended on October 1, 1947, December 1, 1951, July 1, 1956, November 1, 1956, October 1, 1959, November 1, 1959, August 29, 1960, September 8, 1960, October 1, 1960, October 1, 1961, September 16, 1964, October 1, 1968, April 1, 1971, August 2.5, 1973, October 1, 1973, November 1, 1974, January 24, 1976, April 17, 1976, October 30, 1976, January 1, 1980, November 22, 1980, March 1, 1983, December 14, 1985, August 22, 1987, September 1, 1990, January 1, 2000, April 1, 2000, May 25, 2002 and September 14, 2002, as heretofore and hereafter amended from time to time (collectively, the "PERS Contract"); and WHEREAS, pursuant to Resolution No. 04-036 adopted March 9, 2004, the Local Agency has authorized the issuance of bonds (the "Pension Obligation Bonds") in an aggregate principal amount not to exceed the Pension Obligation, plus an additional amount to pay costs of issuance of the Pension Obligation Bonds, for the purpose of refunding the PERS Contract and thereby providing funds to the System in payment of all or part of the Pension Obligation and authorized the issuance of additional bonds in the future from time to time for the purpose of payinb the obligations of the Local Agency to the System required pursuant to the Retirement Law, including (i) all or a portion of the unfunded accrued actuarial liability of the Local Abency remaining unpaid on the date of issuance of such additional bonds and the unpaid amount of the Local Agency's normal annual contribution to the System for the Fiscal Year in which such additional bonds are issued and (ii) refunding the Pension Obligation Bonds or additional series of bonds; and WHEREAS, the Local Agency desires to supplement Resolution No, 04-036 in order to authorize the issuance of 2004 Series B Bonds (the "2004 Series B Bonds") and 2004 Series C Bonds (the "2004 Series C Bonds", and collectively with the 2004 Series B Bonds, the "Bonds") to be sold to DEPFA Bank plc (the "Bank") pursuant to one or more bond purchase agreements between the Local Agency and the Bank; and WHEREAS, there is on file with the Legislative Body the proposed form of First Supplemental Trust Agreement (the "First Supplemental Trust Agreement") and the proposed form of Second Supplemental Trust Agreement (the "Second Supplemental Trust Agreement"), each to be entered into between the Local Agency and Wells Fargo Bank, National Association, as trustee (the "Trustee"), relating to the Bonds, including the form of Bonds attached thereto as an exhibit; and WHEREAS, there is on file with the Legislative Body the proposed form of Bond Purchase Agreement (the "Bond Purchase Agreement") between the Local Agency and the Bank. NOW, THEREFORE, SE IT RESOLVED THAT: Secton 1. This Legislative Body hereby finds and declares that the issuance of the Bonds to refund a portion of the Pension Obligation, and the other actions contemplated by this Resolution are in the best interests of the Local Agency and are anticipated to result in savings based on current interest rate and actuarial assumptions. Section 2. This Legislative Body hereby authorizes and approves the issuance from time to time of the Bonds and hereby authorizes and directs the Treasurer/Tax Collector to execute the Bonds, and to cause the Bonds to be authenticated and delivered in accordance with the First Supplemental Trust Agreement and Second Supplemental Trust Agreement, respectively. The Bonds shall be issued as index bonds, provided, however, that the aggregate initial principal amount of the Bonds together with the aggregate principal amount of all other Pension Obligation Bonds issued by the Local Agency shall not exceed the amount of the Pension Obligation (as confirmed by the System or the Local Agency's actuary) remaining unpaid on the date of issuance of the Bonds, plus an additional amount to pay costs of issuance of the Bonds; the maximum interest rate on the Bonds shall not exceed seventeen percent (17°Io) per am~um; and the Bonds shall mature not later than thirty (30) years following their date of issuance. The Bonds shall constitute an obligation imposed by law, pursuant to the Constitution of the State of California and the Retirement Law and an obligation of the Local Agency not limited as to payment from any special source of funds. The Bonds shall not, however, constitute an obligation of the Local Agency for which the Local Agency is obligated to levy or pledge any form of taxation or for which the Local Agency has levied or pledged any form of taxation. Section 3. The proposed form of First Supplemental Trust Agreement, between the Local Agency and the Trustee, on file with the Clerk of the Board of Supervisors, is hereby approved. The Chief Administrative Officer, the TreasurerlTax Collector and the Auditor-Controller (the "Authorized Representatives") are each hereby authorized and directed, severally, or any such officer's designee, for and on behalf of the Local Agency, to execute and deliver the First Supplemental Trust Agreement, substantially in the form on file with the Clerk of the Board of Supervisors, with such changes therein, deletions therefrom and additions thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery of the First Supplemental Trust Agreement. Section 4. The proposed form of Second Supplemental Trust Agreement, between the Local Agency and the Trustee, on file with the Clerk of the Board of Supervisors, is hereby approved. The Authorized Representatives are each hereby authorized and directed, severally, or any such officer's designee, for and on behalf of the Local Agency, to execute and deliver the Second Supplemental Trust Agreement, substantially in the form on file with the Clerk of the Board of Supervisors, with such changes therein, deletions therefrom and additions thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery of the Second Supplemental Trust Agreement. Section 5. The proposed form of Bond Purchase Agreement, between the Local Agency and the Bank, on file with the Clerk of the Board of Supervisors, is hereby approved. The Authorized Representatives are each hereby authorized and directed, severally, or any such officer's designee, for and on behalf of the Local Agency, to execute and deliver one or more Bond Purchase Agreements, substantially in the form on file with the Clerk of the Board of Supervisors, with such changes therein, deletions therefrom and additions thereto as such Authorized Representative shall approve, such approval to be conclusively evidenced by the execution and delivery of the Bond Purchase Agreement. Section 6. The Authorized Representatives of the Local Agency are, and each of them hereby is, authorized and directed to do any and all things, and execute and deliver any and all documents which they or any of them deem necessary or advisable in order to consummate the transactions contemplated by this Resolution, the First Supplemental Trust Agreement, the Second Supplemental Trust Agreement and the Purchase Agreement and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, the First Supplemental Trust Agreement, the Second Supplemental Trust Agreement and the Purchase Agreement. Section 7. This Resolution supplements Resolution No. 04-036, and the terms of Resolution No. 04-036 shall remain in full force and effect. This Resolution shall take effect from and after its date of adoption. PASSED AND ADOPTED by the Board of Supervisors of the County of Butte on this 8th day of June 2004, by the following vote: AYES: Supervisors Dolan, Houx, Josiassen, Yamaguchi and Chair Beeler NOES: None ABSENT: None NOT VOTING: None •., ~ >, ~<< ~~ R. J. BE~LER, Chair Board of Supervisors ATTEST: PAUL MCINTOSH, Chief Administrative Officer And Clerk of the Board of Supervisors $y: ~ % ~, , %4~ .~ ~ ~5eputy ~' '