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HomeMy WebLinkAbout20-141RESOLUTION AUTHORIZING THE REDEMPTION OF THE COUNTY'S PENSION OBLIGATION BONDS, 2004 SERIES B, THE ISSUANCE OF PENSION OBLIGATION REFUNDING BONDS, APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A THIRD SUPPLEMENTAL TRUST AGREEMENT AND A BOND PURCHASE AGREEMENT, AND AUTHORIZING OTHER MATTERS RELATING THERETO WHEREAS, the Board of Supervisors (the "Board") of the County of Butte (the "County') 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 County 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 County 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 County and the System, dated April 1, 1945 and witnessed February 26, 1945, and amended thereafter from time to time (collectively, the "PERS Contract"); and WHEREAS, for the purpose of refunding a portion of the County's obligations to the System, the County issued its Taxable Pension Obligation Bonds, 2004 Series A (the "2004 Series A Bonds"), Taxable Pension Obligation Bonds, 2004 Series B (the "2004 Series B Bonds") and Taxable Pension Obligation Bonds, 2004 Series C (the "2004 Series C Bonds") pursuant to the Trust Agreement, dated as of June 1, 2004 (the "2004 Trust Agreement"), a First Supplemental Trust Agreement, dated as of June 15, 2004, and a Second Supplemental Trust Agreement dated as of July 1, 2004, each by and between the County and Wells Fargo Bank, National Association, as trustee (the "Trustee"); and WHEREAS, the County desires to redeem all of the 2004 Series B Bonds and to refund a portion of the 2004 Series B Bonds with the proceeds from the issuance of its Taxable Pension Obligation Refunding Bonds, 2020 Series A (the "2020 Series A Bonds") hereby authorized and to be sold to FMS Wertmanagement (the "Purchaser") pursuant to a bond purchase agreement (the "Bond Purchase Agreement") between the County and the Purchaser; and WHEREAS, there is on file with the Board the proposed form of Third Supplemental Trust Agreement (the "Third Supplemental Trust Agreement") to be entered into between the County and the Trustee, including the form of 2020 Series A Bonds attached thereto as an exhibit; and WHEREAS, there is on file with the Board the proposed form of the Bond Purchase Agreement to be entered into by and between the County and the Purchaser; and WHEREAS, in compliance with Government Code Section 5852.1, the County has been presented with the good faith estimates prepared by the Purchaser, and such estimates are disclosed and set forth on Exhibit A attached hereto. NOW, THEREFORE, BE IT RESOLVED that the Butte County Board of Supervisors hereby Section 1. Finds and declares that the issuance of the 2020 Series A Bonds to refund the 2004 Series B Bonds, and the other actions contemplated by this Resolution are in the best interests of the County and are anticipated to result in savings based on current interest rates. Section 2. Authorizes and approves the issuance of the 2020 Series A Bonds and hereby authorizes and directs the Chair of the Board or such designee of the Chair to execute the Bonds, and to cause the 2020 Series A Bonds to be authenticated and delivered in accordance with the Third Supplemental Trust Agreement. The principal amount of the 2020 Series A Bonds shall not exceed $9,160,000, the maximum interest rate on the 2020 Series A Bonds shall not exceed 1.17% per annum, and the 2020 Series A Bonds shall mature not later than June 1, 2029. The 2020 Series A 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 County not limited as to payment from any special source of funds. The 2020 Series A Bonds shall not, however, constitute an obligation of the County for which the County is obligated to levy or pledge any form of taxation or for which the County has levied or pledged any form of taxation. Section 3. Approves the proposed form of Third Supplemental Trust Agreement, between the County and the Trustee, on file with the Clerk of the Board of Supervisors. The Chief Administrative Officer or his designee (the "Authorized Representative") is hereby authorized and directed, or any such officer's designee, for and on behalf of the County, to execute and deliver the Third 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 Third Supplemental Trust Agreement. Section 4. Approves the proposed form of Bond Purchase Agreement, by and between the County and the Purchaser, on file with the Clerk of the Board of Supervisors. The Authorized Representative is hereby authorized and directed, or such officer's designee, for and on behalf of the County, to execute and deliver the Bond Purchase 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 Bond Purchase Agreement. Section 5. Finds that in accordance with Government Code Section 5852.1, based on a good faith estimate received by the Purchaser, (i) the True Interest Cost of the 2020 Series A Bonds (as defined in Government Code Section 5852.1(a)(1)(A)) is expected to be approximately 1.17%, (ii) the total Finance Charge of the 2020 Series A Bonds (as defined in Government Code Section 5852.1(a)(1)(B)) is expected to be $130,000 of the expected principal amount of the 2020 Series A Bonds, (iii) the total proceeds expected to be received by the County from the sale of the Bonds, less the Finance Charge of the 2020 Series A Bonds, is $9,160,000, and (iv) the County expects that the Total Payment Amount (as defined in Government Code Section 5852.1(a)(1)(D)), calculated to the final maturity of the 2020 Series A Bonds, will be $9,684,368. Section 6. Authorizes and directs the Authorized Representative of the County, or such officer's designee, 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 Third Supplemental Trust Agreement and the Bond Purchase Agreement and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, the Third Supplemental Trust Agreement and the Bond Purchase Agreement. Section 7. Determines this Resolution shall take effect from and after its date of adoption. PASSED AND ADOPTED by the Butte County Board of Supervisors this 27th day of October, 2020, by the following vote: AYES: Supervisors Connelly, Lucero, Ritter, Teeter, and Chair Lambert NOES: None -1 ". M-1 Wk. C, ZL Steve Lamb Chair Butte County Board of Supervisors, ATTEST: Andy Pickett, Chief Administrative Officer and Clerk of the Board of Supervisors By: 011 D4uty I(/