87-361RESOLUTION NO. 87R-361
A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF ANAHEIM
PROVIDING PRELIMINARY APPROVAL
OF AN INSTALLMENT SALE FINANCING
NOT TO EXCEED $30,000,000 FOR
THE PURPOSE OF PROVIDING FINANCING
FOR CERTAIN HEALTH FACILITIES
RESOLVED, by the City Council of the City of
Anaheim, California (the "City"), as follows:
WHEREAS, the City is authorized to acquire and
dispose of real and personal property for the common benefit
and in furtherance of its municipal affairs and public
purposes;
WHEREAS, the assurance of the provision of adequate
and economical health care for its residents is a public
purpose of the City and actions to. provide such assurance
constitute a municipal affair of the City;
WHEREAS, Western Medical Center - Anaheim, a
California nonprofit public benefit corporation exempt from
taxation under Section 501(c)(3) of the Internal Revenue Code
of 1986, as amended (the "Hospital"), has requested the City
to undertake an installment sale financing (the "Financing")
in connection with the proposed financing and refinancing of
the Hospital's health care facilities in the City, and this
Council is desirous of preliminarily approving the Financing
in order to assure the provision of adequate and economical
health care by the Hospital to the residents of the City; and
WHEREAS, the adoption of this Resolution is in the
public interest, for the public benefit and in furtherance of
the public purposes of the City;
NOW, THEREFORE, it is hereby ORDERED and DETERMINED
as follows:
SECTION 1. The City Council hereby directs the
relevant City officials to cause to be prepared the
documentation necessary for the City to participate in an
installment sale financing with certificates of participation
in an amount not to exceed $30,000,000 for the benefit of the
Hospital (the "Certificates"), which documentation is subject
to final approval by the City Council.
SECTION 2. The payments to be paid by the City in
connection with the Financing (the "Installment Payments")
shall be a special obligation of the City and shall be payable
solely from moneys (which may include drawings under a letter
of credit issued by a bank acceptable to the City) to be
received by or on behalf of the City pursuant to an
installment sale or other agreement(s) to be entered into by
the City and the Hospital in connection with the Financing,
and shall not be deemed to constitute a debt or liability of
the City under any constitutional, charter or statutory debt
limitation. Neither the faith and credit nor the taxing power
of the City shall be pledged to be payment of the principal,
premium, if any, or interest with respect to the Installment
Payments or the Certificates.
SECTION 3. Consummation of the Financing shall be
subject to the following conditions: (a) the City and the
Hospital shall have first agreed to mutually acceptable terms
and conditions for all documents and agreements related to the
Financing to which the City is a party; (b) the Finance
Director and the City Attorney of the City shall have first
approved the terms and conditions for all agreements and
documents related to the Financings; (c) the payment
obligations with respect to the Certificates shall be
supported by a letter of credit obtained by a financial
institution rated at least AA by Standard & Poor's Corporation
and at least Aa by Moody's Investor Services, which
institution and which letter of credit terms shall be
acceptable to the Finance Director and City Attorney of the
City; and (d) all requisite governmental approvals shall have
first been obtained before any Certificate proceeds are
disbursed and expended.
SECTION 4. Orrick, Herrington & Sutcliffe is hereby
designated as special counsel for the Financing.
SECTION 5. Banker's Trust Company is hereby
designated as placement agent for the Certificates.
SECTION 6. The consummation of the Financing by the
City is contingent upon the City Council being satisfied with
all the terms and conditions of the Financing. This decision
is within the sole discretion of the City Council.
SECTION 7. This Resolution shall take effect
immediately upon its adoption.
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SECTION 8. The City Clerk shall certify to the
adoption of this Resolution.
THE FOREGOING RESOLUTION is approved and adopted by
the City Council of the City of Anaheim this 25th day of
August, 1987.
ahelmCi
ty of '
Mayor of the
ATTEST:
City Clerk of the City of Anaheim
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CLERK
STATE OF CALIFORNIA )
COUNTY OF ORANGE )
CITY OF ANAHEIM )
8So
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing Resolution No. 87R-361 was introduced and adopted at a regular
meeting provided by law, of the City Council of the City of Anaheim held on
the 25th day of August, 1987, by the following vote of the members thereof:
AYES:
COUNCIL MEMBERS: Ehrle, Hunter, Pickler, Kaywood and Bay
NOES:
COUNCIL MEMBERS: None
ABSENT:
COUNCIL MEMBERS: None
AND I FURTHER certify that the Mayor of the City of Anaheim signed said
Resolution No. 87R-361 on the 25th day of August, 1987.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the seal of the
City of Anaheim this 25th day of August, 1987.
CITY CLERK OF THE CITY OF ANAHEIM
(sm~)
I, LEONORA N. SOHL, City Clerk of the City of Anaheim, do hereby certify that
the foregoing is the original of Resolution No. 87R-361 duly passed and
adopted by the Anaheim City Council on August 25, 1987.
CITY CLERK OF THE CITY OF ANAHEIM