HomeMy WebLinkAboutRES NO 163-90P.~SOI~ION NO. 163-90
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF BAKERSFIELD EXPRESSING ITS INTENTION
TO AUTHORIZE THE EXECUTION AND DELIVERY OF
CERTIFICATES OF PARTICIPATION FOR THE
HILLTOP AND COLONIAL NURSING HOME,
SUBJECT TO THE SATISFACTION OF CERTAIN CONDITIONS
WHEREAS, the City of Bakersfield, a charter city and
municipal corporation duly organized and existing under and
pursuant to the laws of the State of California (the "City"), is
authorized pursuant to its Charter to purchase, sell and lease
both personal and real property for the common benefit and as is
necessary and proper for its municipal purposes; and
WHEREAS, Source Living Centers, Inc., a nonprofit
corporation organized under the laws of the State of Illinois
(the "Corporation") and an organization described in Section
501(c) (3) of the Internal Revenue Code of 1986, as amended (the
"Tax Code"), has proposed that the City provide financing on a
tax-exempt basis for the Corporation for its acquisition of those
certain existing nursing homes located within the boundaries of
the City and called the Hilltop and Colonial Nursing Homes
(collectively, the "Project"), including the financing of certain
additions, improvements and betterments to the Project, the
acquisition of equipment and furnishings and the payment of fees
and expenses incurred in connection with the foregoing financing;
and
WHEREAS, the City desires to encourage the preservation
of the existing nursing home facilities within its boundaries but
wishes to determine the advisability of the financing prior to
its final action authorizing the financing;
NOW, THEREFORE, BE IT RESOLVED by the City Council of
the City of Bakersfield, California, as follows:
1. The City Council of the city hereby finds and
determines that it is for the common benefit of the City and its
residents and that it is necessary and proper for municipal
purposes within the terms of the Charter that the City assist the
Corporation in financing the Project in the manner hereinafter
provided in order that essential health care services and
facilities be provided to the residents of the City, to aid in
containing costs for such health care services and facilities, to
permit the Corporation to establish lower rates and charges than
would otherwise prevail and to provide better service to the
residents of the City at such rates and charges, and to preserve
the jobs represented by the Project as a going concern. Unless
the City intervenes to assist the Corporation in the provision of
tax-exempt financing, rates and charges for such services and
facilities may increase at an ever-accelerating pace because the
Corporation cannot obtain tax-exempt financing from any other
source or taxable financing at an equivalent cost from private
sources.
2. The Corporation has proposed that the City approve
the execution and delivery of Certificates of Participation (the
"Certificates") in an aggregate principal amount of not to exceed
$7,000,000 based upon a lease-leaseback financing structure which
the City has previously reviewed, under which the Corporation
would be solely and fully responsible for the payment of lease
payments and for the maintenance and operation of the Project.
The City hereby expresses its intention to assist the Corporation
in the financing of the Project, but only upon further review by
and the City Council's receipt of an approving report from the
Budget and Finance Committee of the City (the "Committee").
3. In the event that the Committee shall recommend
final approval by the City Council of the financing requested by
the Corporation, then the approval by the City Council of legal
documentation concerning the Certificates and the conduct of the
public hearing required by the Tax Code may be submitted to the
City Council at its December 19, 1990, meeting. A provisional
public notice of said public hearing may be published in the
Bakersfield Californian prior to the date of the Committee's
meeting, in order to meet the requirements of the Tax Code. The
financing described herein shall then be consummated, subject to
the conditions that: (1) the City Council shall have approved
the final resolution respecting the terms of the financing; (2)
all other requisite governmental approvals shall have been first
obtained; and (3) the City's obligations under the lease and
sublease agreements with the Corporation shall be payable solely
from payments received from the Corporation pursuant to the
sublease agreement and neither the taxing power nor the full
faith and credit nor any moneys of the City shall be pledged to
the payment of or interest on any such lease or sublease
agreements.
4. Any Certificates subsequently authorized for sale
by the City may be sold only in a private placement to an
institutional investor and not on a retail basis.
5. The City Clerk is hereby authorized and directed to
prepare and submit for publication a notice conforming to the
requirements of the Tax Code for a public hearing to be held by
the City on the subject of the execution and delivery of the
Certificates to finance the Project.
6. Buchalter, Nemer, Fields & Younger, a Professional
Corporation, is hereby designated as Special Counsel to the City
with respect to the financing described above; provided, however,
that in no event shall the City be liable for the payment of any
fees and expenses of Special Counsel other than from the proceeds
of sale of any Certificates.
7. This resolution shall take effect immediately upon
its passage.
I HEREBY CERTIFY that the foregoing Resolution was
passed and adopted by the Council of the City of Bakersfield at
regular meeting thereof held on November 28, 1990, by the
following vote:
AYES: COUNCILMEMBERS: EDWARDS, DeMO.ND. SMITH, BBUNNI, PETERSON, ,;;c3£7.;.~3TT, SALVAGGIO
NOES; COUNCiLMEMBERS:
ABSENT COUNCILMEMBERS: ,,'~'
ABSTAIN: COUNCILMEMBERS
CITY CLERK and EX OFFICIO CLERK of
the Council of the City of Bakersfield
APPROVED NOV 2 8 1990
APPROVED AS TO FORM:
CLARENCE E. MEDDFRS
MAYOR of the City of Bakersfield
ROBERT M. SHERFY
Acting City Attorney
APPROVED as to form:
BUCHALTER, NEMER, FIELDS & YOUNGER
as Special Counsel to the City
of Bakersfield
LISALEE ANNE
199/N13
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