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HomeMy WebLinkAbout5930 RESOLUTION NO. 5930 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, APPROVING AN INSTALLMENT PURCHASE FINANCING TO BE UNDERTAKEN BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY TO BENEFIT METHODIST HOSPITAL OF SOUTHERN CALIFORNIA WHEREAS, Methodist Hospital of Southern California (the "Corporation"), a nonprofit public benefit corporation, has requested that the California Statewide Communities Development Authority ("CSCDA") participate in an installment purchase financing for the purpose of refunding the City of Arcadia, California, Hospital Revenue Bonds (Methodist Hospital of Southern California), Series 1987 (the "1987 Bonds"); and WHEREAS, the proceeds of the 1987 Bonds were used to finance certain health facilities owned by the Corporation (the "Facilities") located in the City of Arcadia (the "City") on land leased by the City to the Corporation; and WHEREAS, in connection with the refunding of the 1987 Bonds, CSCDA and the Corporation will enter into an installment purchase agreement (the "Purchase Agreement") under which the COI]Joration will sell the Facilities to CSCDA and CSCDA will agree to make payments (the "Installment Payments") to the Corporation for the purchase thereof; and WHEREAS, simultaneously with such sale under the Purchase Agreement, CSCDA and the Corporation will enter into an installment sale agreement (the "Sale Agreement") under which CSCDA will sell the Facilities back to the Corporation and the Corporation will agree to make payments to CSCDA for the purchase thereof, with the result that title to the Facilities will remain with the Corporation; and WHERAS, certificates of participation (the "Certificates") in an aggregate principal amount not to exceed $20,000,000, each representing a proportionate undivided interest in the Installment Payments, will be executed, delivered and sold in connection with the financing; and WHEREAS, the proceeds of the Certificates will be used for the refunding of the 1987 . Bonds; and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code") the financing and the execution and delivery of the Purchase Agreement by CSCDA must be approved by the City because the Facilities are located within the territorial limits , ofthe City; and WHEREAS, the City Council is the elected legislative body of the City and is one of the applicable elected representatives required to approve the financing and the execution and delivery of the Purchase Agreement under Section 147(f) ofthe Code; and WHEREAS, CSCDA and the Corporation have requested that the City Council approve the financing and the execution and delivery of the Purchase Agreement in order to satisfY the public.approval requirement of Section 147(f) of the Code and the requirements of Section 9 of the Joint Exercise of Powers Agreement (the "Agreement"), dated as of June 1, 1988, among certain local agencies, including the City; and -2- WHEREAS, pursuant to Section 147(f) of the Code, the City Council has, following notice duly given, held a public hearing regarding the financing and the execution and delivery of the Purchase Agreement, and now desires to approve the financing and the execution of the Purchase Agreement. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA" DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. The City Council hereby approves the financing described above and the Purchase Agreement. It is the purpose and intent of the City Council that this Resolution constitute approval of the financing and the execution and delivery of the Purchase Agreement (and the execution and delivery of the Certificates) for the purposes of ( a) Section 147(f) of the Code by the applicable elected representative of the governmental unit having jurisdiction over the area in which the Facilities are located, in accordance with said Section 147(f) of the Code, and (b) Section 9 of the Agreement. SECTION 2. '!be officers of the City are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they deem necessary or advisable in order to carry out, give effect to and comply with the terms and intent ofthis Resolution and the financing transaction approved thereby. SECTION 3. This Resolution shall take effect immediately upon is adoption. -3- SECTION 4. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this 2nd day of July ,1996. ~~" /~ ayor ofthe City of Arc lIia ATTEST: APPROVED AS TO FORM: ~~ y J1~ CIty Attorney -4- STATE OF CALIFORNIA COUNTY OF LOS ANGELES SS: CITY OF ARCADIA I, JUNE D. ALFORD, City Clerk of the City of Arcadia, hereby certify that the foregoing Resolution No. 5930 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 2nd day of July, 1996 and that said Resolution was adopted by the following vote, to wit: AYES: Councilmember Chang, Harbicht, Young and Kuhn NOES: None ABSENT: Councilmember Lojeski Cit -5-