City of Fullerton, CA | March 15, 2022
Validation Proceedings
1 Validation Proceedings
Per City Council direction on January 18, 2022, the City has Retained Urban Futures, Inc. to perform in-depth pension analysis; Retained Stradling, Yocca, Carson, and Rauth as validation counsel.
Initial Financing Team:
Urban Futures, Inc. for municipal advisory services;
Stradling, Yocca, Carson, and Rauth as bond counsel;
Jones Hall as disclosure counsel;
US Bank as Trustee;
Underwriter and remaining services to be selected.
2 Validation Proceedings
Validation action required to be filed with the Orange County Superior Court to obtain authorization to issue Pension Obligation Bonds (POBs).
Filing a validation action requires the City to first adopt a resolution: 1) authorizing the City to issue POBs to refund its CalPERS pension liability; and 2) authorizing judicial validation proceedings related to the issuance of such POBs.
Validation procedures can take between 90 – 120 days in Orange County.
Approval of resolution does not obligate the City to issue POBs. 3 Recommendation
It is recommended that City Council:
Approve and adopt RESOLUTION 2022-XX – RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FULLERTON, CALIFORNIA AUTHORIZING THE ISSUANCE OF BONDS TO REFUND CERTAIN PENSION OBLIGATIONS OF THE CITY, APPROVING THE FORM AND AUTHORIZING THE EXECUTION OF A TRUST AGREEMENT AND PURCHASE CONTRACT, AUTHORIZING JUDICIAL VALIDATION PROCEEDINGS RELATING TO THE ISSUANCE OF SUCH BONDS AND APPROVING ADDITIONAL ACTIONS RELATED THERETO; Approve and authorize City Manager or designee to execute and administer the Professional Services Agreement with Urban Futures, Inc. and any extensions in a form approved by City Attorney; Approve appropriation the amount of $49,000 from General Fund for pension analysis, validation proceedings, and other costs. 4