Loading...
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