HomeMy WebLinkAboutRESO 6069RESOLUTION NO. 6069
OF THE
ORIGINAL
CITY COUNCIL OF THE CI'IY OF PALO ALTO
AUTHORIZING THE ISSUANCE AND SALE OF CITY OF PALO ALTO
INSURED REVENUE BONDS (LYTTON GARDENS CONVALESCENT HOSPITAL),
SERIES 1982, THE EXECUTION AND DELIVERY OF AN INDENTURE, LOAN
AGREEMENT, CONTRACT OF INSURANCE, REGULATORY AGREEMENT,
OFE'IC!AL STATEMENT AND CONTRACT OF PURCHASE AND CERTAIN OTHER
ACTlONS IN CONNECTION THEREWITI!
WHEREAS, the City of Palo Alto (the "City") is a
municipal corporation and charter city duly organized and
existinq under a freeholders' charter oursuant to which the
City has the right and power to make and enforce all laws and
regulations in r3spect 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 Article !I of the Charter of the
City (the "Charter");
. WHEREAS, the City Council of the City (the
"council"), actinq under and pursuant. to the powers reserved
. to the City under Sections 3, S and 7 of Article XI of the
Constitution of the State of California and Article II of the
Charter has established by adoption of t.he City of Palo Alto
Health Facility Financing Law (the "Law") 9 procedure for the
authorization, issuance and sale of revenue bonds by the City
for the purpose, inter alia, of providing financing for
health facilities as specified therein:
WHEREAS, the City has determined to engage in a
program of making loans to health faciljties pursuant to the
Law, and has determined to borrow money for such purpose by
the issuance of revenue bonds as al1thorized by the Law;
WHEREAS, the City has prevlously issued the City of
?alo Alto Insured Health Facility Revenue Bonds (Lytton
Gardens Convalescent Hospital), Series A {the "Series A
Bonds"), in an aggregate prin~ipal amount of nine million
five hundred seventy thousand dollars ($9,570,000) for the
purpose of providing moneys to make a loan to Community
Housing, Inc. (the "Corporation'') to assi!lt in the
construction of a 120-bed skilled nursinq facility (the
"Project~);
WHEREAS, the Corporation has now requested the
financial assistance of the City in pr~viding funds to refund
the Series A Bonds and in providing additional funds for the
Project and, after due investigation and deliberation, the
City has determined to issue the City of Palo Alto Insured
Revenue Bonds (Lytton Gardens Convalescent Hospital),
Series 1982 {the "Bonds''), in an aggregate principal amount
of not to exceed ten million five hundred thousand dollars
($10,500,000) for such purposes;
WHEREAS, assisting in the refunding of the Series A
Bonds and f inancinq of such improvements 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, 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 precedent to
and in connection with t..~e issuance cf the Bonds exist, have
happened, and have been performed in regular and due time,
f~rm and manner as reqtiired by law, and the City of Palo A!to
is now duly authori~ed and empowered, pursuant to each and
every requirement of law, to issue the Bonds for the purpose.
in the manner and upon the terms herein provided;
NOW, THEREFORE, BE !T RESOLVED BY THE CITY COUNCIL
OF THE CITY OF PALO ALTO 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 t..~e agqreqate principal amount not to exceed ten
million five hundred thousand dollars ($10,500,000).
Section 3. The proposed form of Indenture, dated
as vf October 1, 1982, between the City and First Interstate
Bank of California, as trustee, presented at this meeting, is
hereby approved, and the Mayor or Vice-Mayor and City Clerk
or Deputy City Clerk are hereby authorized and directed, for
and in the name 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, privileges, manner of
execution, pl3ce or places of payment, terms of redemption
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and other terms of the Bonds and coupons appertaining thereto
shall be as provided in said indenture, as finally executed.
Section 4. First Interstate Bank of Cal~fornia,
San Francisco, California, i~ hereby appointed as 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 Contract of
Purchase, dated as of September 27, 1982, between the City
and Blyth East~an Paine Webber, Inc., presented at this
meeting, is hereby approved. The Mayor or Vice-Mayor and
City Clerk or Deputy City Clerk are hereby authorized and
directed to approve the final terms of the sale of the Bonds
(including a net interest cost not to exceed 12% and to
evidence the City's acceptance of the offer made thereby by
executing and delivering the Contract of Purchase in
substantially said form, with such changes therein as the
officers executing the same, ~ith the advice of the City
Attorney, may require or approve, such approval to be
conclusively evidencro by the execution and delivery thereof.
Section 6. The Mayor and the City Clerk are hereby
authorized and dir~cted to execute, for and in the name and
on behalf of the City and under its seal, the Bonds in an
aggreqate principal amount not to exceed ten million five
hundred thousand dollars ($10,500,000) in accordance with the
Contract of Purchase and the Indenture, and in one or more of
the forms set forth in the Indenture.
Section 7. The proposed form of Official Statemer.t
to be used in connection with the offer and s&le of the Bonds
is hereby adopted and approved, and the Mayor or Vice-Mayor
and the City Clerk or Deputy City Clerk are hereby authorized
to execute and deliver the same with such changes therein as
the officers exeeutinq the same, with the advice of the City
Attorney may require or approve, such approval to be
conciusively evidenced by the execution and delivery
thereof. Blyth Eastman Paine Webber, Inc., is hereby
authorized to distribute copies of the Official Statement, as
finally executed, to persons who may be interested in the
purchase of the Bonds and is directed to deliver such copies
to all actual purchasers of the Bonds. Distribution of the
Official Statement in praliminary form is hereby ratified.
Section 8. The proposed form of Loan Agreement
presented at this meetinq is hereby approved. The Mayor or
Vice-Mayor and the City.Clerk or Oe~uty City Clerk are hereby
authorized and directeci to execute and deliver such
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aqr••~en~m. !er a~d :~ the na..~e and on behalf o! the Cl~y.
v!~~ •~ch cr.a~9e1 t.r..ere!n as ~~e o!!lcers execut1nq t .. he same,
W!~~ t.h• ad"l'lC• ~! t...\.oie C:.~y A-:.~crney,, ~•Y approve, such
approval ~o b49 cc:-.clua!.vely ev1den~ed by the ~xecut1on and
de:ivery t.r.ereo!.
Sect!on 9. ':°h• propot~ !onn• o! Contra~t of
:na~ranc• ar.d Req\.ila~ory A~r••mer.t, preaent4d •~ this
meet.uv;. are hereby appro-.·•d. Th• Mftyor or Vice-Mayor and
the C1ty Clerk or Deputy =1ty Cl•~k are hereby authorized and
dl~•cted to •x•c~t• •~ch aqre•~•nta. !or and in the na.~e and
on behal! o! ~h• Cl~Y-w~~h •uch c~an9es there1n as the
o!!lc8r• execu~lnq ~h• a&.lft•. w!th tne adv!c• o! the City
Attor~•y. ~•Y appro~•. •~ch approv&l ~o b• conclua1vely
•v!d•nced by~~-•x•cut1on and d•l1very thereof.
S•ct!on lO. 1:-.e Scnde, when execu~•d purauant to
Seet1on 6 h•t'•o!. shalt be del:..1,·,...red to the Tr...1atee fer
a~th•n~icat1on. The ~r-u•~•• la hereby Toqu••~ed •~d directed
to auth•r.~tcgt• ~h• Bond• cy execut~~9 tho Trustee'•
cert1!tc•t• o! aut...~ent!c~t!cn apJ:)4ar1nq th•r•on, and to
dellver ~~• Bonda. ~h•n d~ly execut•d and au~h•n~ic~t•d, to
Blyth !••Ula...~ Pa1n• Webber. !r.c .. ln accordance with vritten
•n•~r-uc~1ona •••cut•d ~r. ~halt o! t.h• C1ty ~Y the Mayor or
Vice•Nayor -.,d t .. h• Ci~y Cler~ er O.puty City Cl•r~. wh1ch
~natn.oct,!cno ••ld o!!!eers are h•r•by authorized and
d1r•cted, !r. ~h• n.t.Ple ar.d en b4hal! ot tile C!ty, to •x•e~t•
and d•l~v•r to t.h• Tru•~••· Said !n•~rue~ior.• ahall provide
!or th• del1•:•ry ot t.h• Bend• to 11/th Ea11t.=0-r. P•in• Webber,
: nc. . UfX>tl paV119en1: ot the puri:h••• pr:..ce th•:r•ot.
S•et1on ll. Th• o!!!~•ra ~t l:..~• C~~y ar• hereby
&ut.ho~1&9d and d!rect.-d, jointly and a•v•rally. to do any and
ail th1nqe and to ·~~cute and :h1l.1ver any and al! docu.me:it•
wh1eh ~h•y aay d••m n•c••••ry or adv1•&bl• 1.n order :o
eona~t.• th• :i.aauAnce. ••l• and de!1"V"•ry o! t.h• Bond• and
otherv1•• to ~!!..:t~•t• th• purpo••• o! t.h1• ~••ol~t;or..
Section 12. This resolution shall take effect
immediately.
INTRODUCED AND PASSED: September 27, 1982
AYES: Bechtel, Cobb, Fazzino~ Fletcher, Klein, Levy, Renze1,
Witherspoon
NOES: None
ABSTENTIONS: None
ABSENT: Eyerly
APPROVED AS 'l'O FORM:
Jl~.J-~ ~~drney
~sdd4~ Director of Planning and
Community Environment
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