HomeMy WebLinkAbout7295 RESOLUTION NO. 7295
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, AMENDING THE FISCAL YEAR 2019-20 GENERAL
FUND BUDGET AUTHORIZING A BUDGET APPROPRIATION OF
$30,000 FOR A PROFESSIONAL SERVICES CONTRACT WITH
STRADDLING YOCCA CARLSON & RAUTH TO COMMENCE A
JUDICIAL VALIDATION PROCEEDING AS THE INITIAL STEP FOR
ISSUANCE OF PENSION OBLIGATION BONDS
WHEREAS, In June 2019, City Council approved the contract with Urban Futures
("UFI") to provide pension advisory services to assist the Citizen's Financial Advisory
Committee ("Committee") with providing recommendations to address the City's rising
pension costs and its unfunded accrued liabilities (UAL) with the California Public
Employees' Retirement System ("CaIPERS"); and
WHEREAS, at the study session of January 21, 2020, the City's pension advisor,
UFI, provided a presentation and discussed the development of a Comprehensive
Management Plan for mitigation of the City's long-term unfunded accrual liabilities; and
WHEREAS, UFI identified a combination of internal resource allocation and
financing mechanism options that will best suit the City's needs to address the City's UAL;
and
WHEREAS, the Committee, UFI, and City staff carefully reviewed each of the
options presented and identified one of the options to be the issuance of Pension
Obligation Bonds (POB); and
WHEREAS, the issuance of POBs requires a judicial validation proceeding prior
to issuance, which could take 90 to 120 days. It is recommended that Council authorize
staff to proceed with the necessary steps to commence the validation proceeding by
approving a budget appropriation of $30,000 for the purpose of a professional service
1
contract with Straddling Yocca Calrson & Rauth, as bond counsel, to begin this judicial
validation process; and
WHEREAS, the City Manager has certified that there are sufficient reserves
available in the General Fund for appropriation.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA,
CALIFORNIA, DOES FIND, DETERMINE AND RESOLVE AS FOLLOWS:
SECTION 1. The sum of Thirty Thousand Dollars ($30,000) is hereby
appropriated in the Administrative Services Department for the foregoing purpose, offset
with an equal reduction in the General Fund Reserve.
SECTION 2. The City Clerk shall certify to the adoption of this Resolution.
[SIGNATURES ON NEXT PAGE]
2
Passed, approved and adopted this 18th day of February, 2020.
/AK:A
Maa1.r of the City of Arcadia
ATTEST:
€Crk
APPROVED AS TO FORM:
Stephen P. Deitsch
City Attorney
3
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:
CITY OF ARCADIA )
I, GENE GLASCO, City Clerk of the City of Arcadia, hereby certifies that the
foregoing Resolution No. 7295 was passed and adopted by the City Council of the City of
Arcadia, signed by the Mayor and attested to by the City Clerk at a regular meeting of said
Council held on the 18th day of February, 2020 and that said Resolution was adopted by
the following vote, to wit:
AYES: Amundson, Beck, Tay, Chandler, and Verlato
NOES: None
ABSENT: None
.401(
.411,44Cle irthe City of Arcadia
4