HomeMy WebLinkAboutRES NO 75-90RESOLUTION NO. 75-90
A RESOLUTION OF THE COUNCIL OF THE CITY OF
BAKERSFIELD CONCERNING THE EXECUTION AND
DELIVERY OF NOT TO EXCEED $6,000,000.00
CERTIFICATES OF PARTICIPATION ON BEHALF OF
UNITED COMMUNITY HOUSING AND DEVELOPMENT
AUTHORITY TO FINANCE A CERTAIN RESIDENTIAL
CARE FACILITY FOR THE ELDERLY.
WHEREAS, the City of Bakersfield, a municipal
corporation and charter city duly organized and existing under
and pursuant to the Constitution and laws of the State of
California (the "City"), is authorized under provisions of the
California Government Code, particularly Chapter 5 of Part 2 of
Division 3 of Title 4 thereof (the "Act"), to purchase, sell and
lease both personal and real property for the common benefit and
as is necessary or proper for municipal purposes; and
WHEREAS, United Community Housing and Development
Authority, a nonprofit corporation organized under the nonprofit
corporation law of the State of California and an organization
described in Section 501(c) (3) of the Internal Revenue Code of
1986, as amended (the "Corporation"), has proposed that the City
provide financing for the development of a certain fifty (50)
unit licensed residential care facility for the elderly to be
located within the City (the "Residential Care Facility"),
including but not limited to the land acquisition, construction
and permanent financing of the Residential Care Facility and
payment of fees and expenses incurred in connection with the
foregoing financing, which financing shall be accomplished by
means of a lease and sublease arrangement (the "Project"); and
W14FA~EAS, the City has full legal right, power and
authority under its Charter and the Act to purchase, sell and
lease real and personal property for the common benefit and as is
necessary or proper for municipal purposes; and
WHEREAS, the City now desires to give its preliminary
approval to such financing.
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Bakersfield, California, as follows:
Section 1. The Council of the City hereby finds and
determines that it is for the common benefit of the City and its
residents and it is necessary and proper for municipal purposes
within the terms of the Act that the City assist the Corporation
in financing the Project in the manner hereinafter in this
Resolution provided in order to provide essential residential
care services and facilities to the residents of the City, and to
OR~.dNAL
aid in containing costs of such residential care services and
facilities and thereby enable the Corporation to establish lower
rates and charges than would otherwise prevail and to provide
better service to the citizens of the City at such rates and
charges.
Section 2. Pursuant to the Act, a lease and sublease
financing through the execution and delivery of certificates of
participation (the "Certificates") in an aggregate principal
amount of not to exceed $6,000,000 is hereby authorized in order
to finance the Project through the lease and sublease of the
Residential Care Facility to the Corporation.
Section 3. The Certificates, representing
proportionate interests in payments received by the City from the
Corporation pursuant to the sublease, shall be payable solely
from such sublease payments. The financing hereby authorized
shall be consummated subject to the conditions that: (i) the
City by resolution shall have first agreed to acceptable final
terms and conditions for the lease and sublease agreements and
all other documents and agreements to be executed by the City in
connection with such financing, (ii) all requisite governmental
approvals shall have first been obtained, (iii) 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 of the City shall
be pledged to the payment of or interest on any such lease or
sublease agreements, nor shall the City incur any liability by
reason of its participation in this financing; and (iv) the
Corporation shall have agreed to pay or cause to be paid: (A) an
issuer's fee of not to exceed 40 basis points to the City; and
(B) all costs of issuance.
Section 4.. It is hereby acknowledged and recognized
that the adoption of this Resolution by the City shall not be
deemed to be final approval of the Project. Nothing contained in
this Resolution shall require or obligate the City to undertake
the financing of said Project. All requirements, ordinances,
procedures and guidelines established by the City and laws of the
State of California shall be adhered to for the review and
consideration of the following, including but not limited to:
parcel maps, site plans, the obtaining of building permits,
environmental considerations, design review approvals, and
related matters. Nothing contained herein shall unconditionally
commit the City to take any further action in connection with the
financing of said project until all required processing of the
City and the appropriate departments thereof shall have been
completed and approved.
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ORIGINAL
Section 5. The City Clerk is hereby authorized and
directed to prepare and submit for publication in the Bakersfield
Californian a notice conforming to the requirements of the
Internal Revenue Code of 1986 of a public hearing to be held by
the City on the subject of the execution and delivery of the
Certificates.
Section 6. Hawkins, Delafield & Wood, Los Angeles,
California, is hereby designated special counsel to the City with
respect to the financing hereby authorized.
Section 7. This resolution shall take effect
immediately upon passage.
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I HEREBY CERTIFY that the foregoing Resolution was
passed and adopted by the Council of the City of Bakersfield at a
regular meeting thereof held on JUN 1 ~ ;q~ , by the
following vote:
AYES; COUNCrLMEMBERS: EDWARDS, DeMOND. SMITH. ?..~:;,~;1, PETERSON. ~.~cDERMOTr, SALVAGGIO
NOES; COUNCiLMEMBERS
ABSENT COUNCILMEMBERS:
ABSTAIN: COBNC~LMEMBERS
and EX OFFICIO CLERK of the Council
of the City of Bakersfield
CLARENCE E. MEDDERS
MAYOR of the City of Bakersfield
APPROVED as to form:
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CARE-FAC. R
6/6/90
ORIGINAL