HomeMy WebLinkAbout86-112 RESOLUTION NO. 86-112
OF THE CITY COUNCIL OF SANTA ANA, AUTHORIZING THE
ISSUANCE AND SALE OF CITY OF SANTA ANA VARIABLE
RATE DEMAND REVENUE BONDS (WESTERN MEDICAL
CENTER), SERIES 1986A, THE EXECUTION AND DELIVERY
OF AN INDENTURE, LOAN AGREEMENT~ BOND PURCHASE
CONTRACT AND OFFICIAL STATEMENT, AND AUTHORIZING
CERTAIN OTHER ACTIONS IN CONNECTION THEREWITH.
WHEREAS, the City of Santa Ana (the 'City') is a
municipal corporation and charter city, duly organized and
existing under a freeholders' charter, pursuant to which the
City has the right and power to make and enforce all laws and
regulations in respect to municipal affairs and certain other
matters in accordance with, and as more particularly provided
in, Sections 3, 5 and 7 of Article XI of the Constitution of
the State of California and Section 20~ of Article II of the
Charter of the City (the 'Charter');
WHEREAS, the City Council of the City (the "Council"),
acting under and pursuant to the powers reserved to the City
under Sections 3, 5 and 7 of Article XI of the Constitution of
the State of California and Section 2~ of Article II of the
Charter, has established by the adoption of Ordinance No. N.S.
-1664 of the City (the "Law"), a procedure for the
authorization, issuance and sale of revenue bonds by the City,
for the purpose, inter alia, of making loans to participating
health institutions to provide financing for health facilities
as specified therein;
WHEREAS, the City has determined to engage in a
program of making loans to health facilities pursuant to the
Law, and has determined to borrow money for such purpose by
issuance of revenue bonds, as authorized by Law;
WHEREAS, the Council has, by Resolution No. 85-111,
adopted by the Council on September 17, 1985, given preliminary
approval to the issuance of such bonds to fund a loan to
Western Medical Center, a nonprofit
"Corporation') to refinance certain
the Corporation with respect to its
corporation (the
existing indebtedness of
existing health facilities
the
and to pay, or to reimburse the Corporation for payment of, the
cost of certain equipment, capital improvements and capital
expenses (the 'Project");
WHEREAS, the City has further determined to issue such
revenue bonds, designated as 'City of Santa Ana Variable Rate
Demand Revenue Bonds (Western Medical Center), Series 1986A'
(the 'Bonds'), in an aggregate principal amount not to exceed
thirty-four million dollars ($34,000,~00) for the above-stated
purpose;
WHEREAS, assisting in the financing of health
facilities promotes the purposes of the Law, is in the public
interest, serves a public purpose, promotes the health, welfare
and safety of the citizens of the City, and constitutes a
municipal affair;
WHEREAS, pursuant to Section 147(f) of the Internal
Revenue Code of 1986, as amended (the 'Code"), the Bonds are
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required to be approved, following a public hearing, by an
elected representative of the issuer of the Bonds and an
elected representative of the governmental unit having
jurisdiction over the area in which the facilities relating to
the Project are located;
WHEREAS, the facilities relating to the Project are
located wholly within the City of Santa Aha, California;
WHEREAS, the Council is the elected legislative body
of the City and is the applicable elected representative
required to approve the issuance of the Bonds within the
meaning of Section 147(f) of the Code;
WHEREAS, pursuant to Section 147(f) of the Code, the
Council has, following notice duly given, held a public hearing
regarding the issuance of such Bonds, and now desires to
approve the issuance of such Bonds;
WHEREAS, all acts, conditions and things required by
the Law, and by all other laws of the State of California, to
exist, have happened and have been performed pursuant to and in
connection with the issuance of the Bonds, exist, have
happened, and have been
and manner, as required
now duly authorized and
requirement of the law,
the manner and upon the
performed in regular and due time, form
by law, and the City of Santa Ana is
empowered, pursuant to each and every
to issue the Bonds for the purpose, in
terms herein provided;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Santa Ana, as follows:
Section 1. The Council does hereby find and declare
that the above recitals are true and correct and that the
issuance of the Bonds is a municipal affair and a proper public
purpose.
Section 2. Pursuant to the Law, the Bonds shall be
issued in an aggregate principal amount not to exceed
thirty-four million dollars ($34,000,0~).
Section 3. The proposed form of indenture, dated as
of December 1, 1986 (the "Indenture"), between the City and the
trustee therein named (the "Trustee"), presented at this
meeting, is hereby approved. The Mayor, City Manager or the
authorized representative of either of them and the Clerk of
the Council or Deputy Clerk of the Council are hereby
authorized and directed, for and in the name of and on behalf
of the City, to execute, acknowledge and deliver to the Trustee
an Indenture in substantially said form, with such changes
therein as the officers executing the same, with the advice of
the City Attorney, may approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
The date, maturity dates, interest rate or rates, interest
payment dates, denominations, forms, registration privileges,
manner of execution, place or places of payment, terms of
redemption and other terms of the Bonds shall be as provided in
said Indenture as finally executed.
Section 4. The Mayor, City Manager or authorized
representative of either of them is hereby authorized to
appoint a Trustee for the City and the holders of the Bonds,
with the duties and powers of such Trustee as set forth in the
Indenture.
Section 5. The proposed form of loan agreement, dated
as of December 1, 1986, between the City and the Corporation
(the "Loan Agreement"), presented at this meeting, is hereby
approved. The Mayor, City Manager or the authorized
representative of either of them and the Clerk of the Council
or Deputy Clerk of the Council are hereby authorized and
directed to execute and deliver such Loan Agreement, for and in
the name of and on behalf of the City, with such changes
therein as the officers executing the same, with the advice of
the City Attorney, may approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
Section 6. The proposed form of bond purchase
contract, to be dated as of the date of the sale of the Bonds,
between the City and Bankers Trust Company (the "Bond Purchase
Contract"), presented at this meeting, is hereby approved. The
Mayor, City Manager or the authorized representative of either
of them is hereby authorized and directed to approve the final
terms of the sale of the Bonds, provided that the net interest
cost of the Bonds shall not exceed twelve percent (12%), and to
evidence the City's acceptance of the offer made thereby by
executing and delivering the Bond Purchase Contract, in
substantially said form, with such changes therein as the
officer executing the same, with the advice of the City
Attorney, may require or approve, such approval to be
conclusively evidenced by the execution and delivery thereof.
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Section 7. The Mayor, City Manager or the authorized
representative of either of them is hereby authorized and
directed to prepare or cause to be prepared an official
statement to be used in connection with the offer and sale of
the Bonds (the "Official Statement") and to execute and deliver
the same, with such changes therein as the officer executing
the same, with the advice of the City Attorney, may require or
approve, such approval being conclusively evidenced by the
execution and delivery thereof. Bankers Trust Company is
hereby authorized to distribute copies of the Official
Statement in preliminary form and to distribute copies of the
Official Statement as finally executed, to persons who may be
interested in the purchase
deliver such copies to all
Section 8. Forms
of the Bonds, and is directed to
actual purchasers of the Bonds.
of the proposed Indenture, Loan
Agreement and Bond Purchase Contract are on file in the Office
of the Clerk of the Council.
Section 9. The Bonds in an aggregate principal amount
not to exceed thirty-four million dollars ($34,~00,~0) shall
be executed by the facsimile signature of the Mayor or City
Manager. The facsimile seal of the City shall be affixed
thereon and attested by the facsimile signature of the Clerk or
Deputy Clerk of the Council, in the forms set forth in and
otherwise accordance with the Indenture.
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Section
delivered to the
hereby requested
1~. The Bonds, as executed, shall be
Trustee for authentication. The Trustee is
and directed to authenticate the Bonds by
executing the Trustee's certificate of authentication appearing
thereon, and to deliver the Bonds, when duly executed and
authenticated, to the purchasers thereof, in accordance with
written instructions executed on behalf of the City by the
Mayor, City Manager or the authorized representative of either
of them and the Clerk of the Council or Deputy Clerk of the
Council, which instructions said officers are hereby authorized
and directed, in the name of and on behalf of the City, to
execute and deliver to the Trustee. Said instructions shall
provide for the delivery of the Bonds to Bankers Trust Company
upon payment of the purchase price thereof.
Section 11. Pursuant to Section 147(f) of the Code,
the Council hereby approves the issuance of the Bonds to
provide financing for the Project. It is the purpose and
intent of the Council that this Resolution constitute approval
of the issuance of Bonds by the applicable elected
representative of the issuer and the applicable elected
representative of the governmental unit having jurisdiction
over the area in which the facilities relating to the Project
are located, in accordance with said Section 147(f).
Section 12. The officers of the City are hereby
authorized and directed, jointly and severally, to do any and
all things and to execute and deliver all documents which they
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may deem necessary or advisable in order to consummate the
issuance, sale and delivery of the Bonds, and otherwise to
effectuate the purposes of this Resolution.
Section 13. This Resolution shall take effect
immediately upon its passage.
I HEREBY CERTIFY that the foregoing resolution was
duly adopted by the Mayor and City Council of the City of Santa
Ana at a Council meeting thereof, held on the 1st day
of December , 1986, by the following vote, to wit:
AYES: Griset, Hart, May, Young
NAYS: None
ABSENT:
1st
Acosta, McGuiqan, Pulido ABSTAIN: None
The foregoing resolution is hereby approved this
day of December 1986.
Approved as to form:
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I, Janice C. Guy , Clerk of the
Council in and for the City of Santa Ana DO HEREBY CERTIFY that
the foregoing and attached copy of Resolution No. 86-112
is a full, true and correct copy of that now on file in this
office.
affixed
1st
IN WITNESS WHEREOF, I have hereunto set my hand and
the offical seal of the City of Santa Ana this
day of December , 1986.
Clerk of/the~ncil
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