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Finance and Management Services <br />https://www.santa-ana.org/finance <br />Item # 33 <br />City of Santa Ana <br />20 Civic Center Plaza, Santa Ana, CA 92701 <br /> Staff Report <br />March 16, 2021 <br />TOPIC: Pension Debt Refinancing and Related Bond Financing <br />AGENDA TITLE: <br />Adopt a Resolution Authorizing Judicial Validation Proceedings for the Proposed Pension <br />Debt Refinancing and Related Bond Financing Agreements <br />RECOMMENDED ACTION <br />Adopt a resolution authorizing the Issuance of Bonds to refund certain pension obligations <br />of the City, up to the estimated Unfunded Actuarial Liability (UAL) as of June 30, 2021, <br />approving the form and authorizing the execution of a trust agreement and purchase <br />contract, and authorizing Judicial Validation Proceedings relating to the issuance of such <br />Bonds and approving additional actions related thereto. <br />EXECUTIVE SUMMARY <br />The City Council has adopted the Unfunded Employee Pension Liability Cost Reduction <br />Policy, and has retained specialized legal counsel. The next step to refinance the City’s <br />pension debt is to adopt the proposed Resolution and related agreements authorizing the <br />judicial validation process, which could take up to six months to complete. <br />During the judicial validation process, the City Council will consider selection of an <br />underwriter and approval of the Preliminary Official Statement for the bond offering. <br />DISCUSSION <br />On February 2, 2021, City Council directed staff to move forward with the pension <br />refinancing. On February 16, 2021, the City retained specialized legal counsel (Stradling <br />Yocca Carlson & Rauth) for the refinancing. The next action of the City Council is to <br />adopt the resolution, which authorizes legal counsel to begin the judicial validation <br />process with Orange County Superior Court. The resolution also approves the form of <br />the Trustee Agreement and Bond Purchase Contract for the proposed bond issue. <br />Judicial Validation Proceedings <br />California public entities do not have specific authority to issue bonds to refinance pension <br />debt. Pursuant to the judicial validation process, the Court will issue a judgment