HomeMy WebLinkAboutRES NO 151-89RESOLUTION NO. 151-89
RESOLUTION OF THE COUNCIL OF THE CITY OF BAKERSFIELD
CONCERNING THE EXECUTION AND DELIVERY OF CERTIFICATES
OF PARTICIPATION TO FINANCE CERTAIN HEALTH CARE
FACILITIES FOR AMG INTERNATIONAL
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;
WHEREAS, AMG International, a nonprofit corporation
organized under the nonprofit corporation law of the State of
New Jersey 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 acquisition of certain skilled nursing care facilities
located within the City (the "Health Facilities"), including but
not limited to certain additions, improvements and betterments to
the Health Facilities and such facilities as are appurtenant or
related thereto, acquisition of equipment 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");
WHEREAS, 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
necessary or proper for municipal purposes; and
is
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 health care
services and facilities to the residents of the City, and to aid
in containing costs for such health 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.
Unless the city intervenes to provide such financing, such rates
and charges may increase at an ever-accelerating pace because the
Corporation cannot obtain financing at an equivalent cost from
private sources.
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 $9,000,000 is hereby authorized in order
to finance the Project. through the lease and sublease of the
Health Facilities 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. 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 5. Buchalter, Nemer, Fields & Younger, A
Professional Corporation, Los Angeles, California, is hereby
designated special counsel to the City with respect to the
financing hereby authorized.
Section 6. This resolution shall take effect
immediately upon its passage.
Dated: August 30, 1989
ATTEST:
City Clerk
Mayor
APPP, OVED AS TO FORlf:
Cit~ At~Orn~ey .... ~--
I, CAROL ¥~ILLIAHS _, City Clerk of the City of
Bakersfield, certify that the foregoing resolution was adopted by
the Council of the City of Bakersfield, at a regular meeting held
on the 30th day of August, 1989, by the following vote:
AYES: CO! !~'~'~ILMEM BENS: ANTHONY, DeMOND, S MIT:'-I, RATFY, PETERSON, McDERMOTT, SALVAGGIO
ABSENT: COUNCILMEMBErS Non ~.
~,BSTAIN: COONCILMEMBERS: None