November 17, 1995

South Coast Air Quality

Management District Board

In August 1995 the Board reaffirmed its February 1994 authorization to reduce the AQMD's retirement contributions to the San Bernardino County Employees Retirement Association (SBCERA) by approving Resolution 95-17 (attached) authorizing the issuing of bonds to retire the Unfunded Actuarial Accrued Liability (UAAL) due to SBCERA.

The original resolution, as reaffirmed by Resolution 95-17, contemplated that both the AQMD and the County of San Bernardino (County) would issue bonds jointly. The AQMD has learned that the County may not be willing, at this time, to issue the County's portion of the bonds due to financial reasons unrelated to the AQMD. Staff is therefore proposing an amendment to the authorizing resolutions to allow the AQMD to retire its UAAL with SBCERA independent of the County, if long-term interest rates in the bond market again reach levels which offer savings to the AQMD.

This recommendation was reviewed and approved by the Administrative Committee on October 27, 1995.

THEREFORE, IT IS RECOMMENDED THAT YOUR BOARD

--Adopt the attached resolution amending Resolution No. 94-5 as Reaffirmed by Resolution 95-17 authorizing the execution of a debenture evidencing a portion of the AQMD's obligations to the San Bernardino County Employees' Retirement Association, authorizing the issuance and sale to the San Bernardino County Financing Authority of bonds of the AQMD to refund the debenture, authorizing and directing execution of a related indenture and bond purchase contract, approving the form and authorizing distribution of a preliminary official statement in connection with the offering and sale by the authority of its revenue bonds to purchase the AQMD's bonds and authorizing official actions related thereto.

Respectfully,

James M. Lents, Ph.D.

Executive Officer

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