HomeMy WebLinkAbout96-94 - Hoag Memorial Revenue BondsRESOLUTION NO. 96- 94
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT
BEACH AUTHORIZING THE ISSUANCE OF NOT TO EXCEED
$100,000,000 AGGREGATE PRINCIPAL AMOUNT OF THE CITY OF
NEWPORT BEACH VARIABLE RATE DEMAND REVENUE BONDS
(HOAG MEMORIAL HOSPITAL PRESBYTERIAN), 1996 SERIES A, B
AND C
is WHEREAS, the City of Newport Beach (the "City ") is a municipal corporation
and charter city duly organized and existing under a freeholders' charter pursuant to which the
City has the right and power to make and enforce all laws and regulations in respect of
municipal affairs and certain other matters in accordance with and as more particularly provided
in Sections 3, 5 and 6 of Article XI of the Constitution of the State of California and Section 200
of Article II of the Charter of the City (the "Charter "); and
WHEREAS, the City Council of the City, acting under and pursuant to the powers
reserved to the City under Sections, 3, 5, and 7 of Article M of the Constitution of the State
of California and Section 200 of Article II of the Charter, has found that the public interest and
necessity require the establishment of a program for the authorization, issuance and sale of
revenue bonds or notes by the City for the purposes of making loans such as those described
herein; and
WHEREAS, the City pursuant to Ordinance No. 84 -4, has adopted the Health
Care Facility Revenue Bond Ordinance of the City of Newport Beach (the "Law ") to establish
procedures for the authorization, issuance and sale of such revenue bonds or notes; and
WHEREAS, Hoag Memorial Hospital Presbyterian, a California nonprofit public
benefit corporation (the "Borrower ") has requested that the City issue its Variable Rate Demand
Revenue Bonds (Hoag Memorial Hospital Presbyterian), in one or more series (the "Bonds ") for
the purpose of: (1) financing the acquisition and construction of certain additions and
improvements to, and equipment for, health facilities (collectively, the "Health Facilities ")
located at the campus of Hoag Memorial Hospital Presbyterian, One Hoag Drive, Newport
Beach, California; and (2) providing for the payment of bond issuance expenses; and
WHEREAS, the Borrower is a "participating health institution" and operates a
"health facility" as those terns are defined in the Law; and
WHEREAS, the loan to be made with the proceeds of said bonds will promote
the purposes of the Law by providing funds to pay the cost of acquiring, constructing,
rehabilitating or improving a health facility and refinancing indebtedness incurred for the
purposes of acquiring, constructing, rehabilitating or improving a health facility; and
WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the
"Code "), the Bonds are required to be approved, following a public hearing, by an elected
representative of the City, as the governmental party issuing the Bonds, and an elected
representative of the governmental unit or units having jurisdiction over the area in which the
Health Facilities are located; and
WHEREAS, the Health Facilities are located wholly within the City; and
WHEREAS, the City Council of the City is the elected legislative body of the City
• and is the applicable elected representative required to approve the issuance of the Bonds within
the meaning of Section 147(f) of the Code; and
WHEREAS, pursuant to Section 147(1) of the Code, the City Council of the City
has, following notice duly given, held a public hearing regarding the issuance, execution and
delivery of the Bonds, and now desires to approve the issuance of the Bonds; and
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WHEREAS, there have been presented to this meeting the following:
(1) Proposed form of Loan Agreement (the "Agreement ") between the City and
the Borrower;
(2) Proposed form of Indenture (the "Indenture") between the City and U.S.
Trust Company of California, N.A. (or such other financial institution acceptable to the
City and the Borrower), as trustee (the "Trustee "), providing for the authorization and
issuance of the Bonds;
• (3) Proposed form of the Official Statement to be used in connection with the
sale of the Bonds (the "Official Statement "); and
(4) Proposed form of Bond Purchase Contract (the "Bond Purchase Contract ")
between the City and John Nuveen & Co. Incorporated (the "Underwriter ").
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Newport Beach, California, as follows:
Section 1. The form, terms and provisions of the Agreement be and they hereby
are approved and the Mayor or the Mayor's designee is hereby authorized and empowered to
execute, and the City Clerk or the City Clerk's designee is hereby authorized and empowered
to attest and deliver, the Agreement, in substantially the form presented to and considered at this
meeting with such changes as the official executing the same shall deem appropriate and in the
best interests of the City, as conclusively evidenced by execution thereof.
Section 2. The form, terms and provisions of the Indenture be and they hereby
are approved, and the Mayor or the Mayor's designee is hereby authorized and empowered to
execute and the City Clerk or the City Clerk's designee is hereby authorized and empowered to
attest and deliver to the Trustee, the Indenture, in substantially the form presented to and
considered at this meeting with such changes as may be approved by the official executing the
same, such approval to be conclusively evidenced by execution thereof.
Section 3. Pursuant to Section 147(f) of the Internal Revenue Code of 1986, this
City Council approves the issuance of the Bonds in an aggregate principal amount not to exceed
$100,000,000, under and secured by the Indenture. It is the purpose and intent of the Council
that this Resolution constitute approval of the issuance of the Bonds by the applicable elected
representative of the issuer and the applicable elected representative of the governmental unit
having jurisdiction over the area in which the Health Facilities are located, in accordance with
said Section 147(f). Payment of the principal of and the redemption premium and the interest
on the Bonds shall be made solely from the revenues to be received by the City pursuant to the
Agreement, and said Bonds shall not be deemed to constitute a debt or liability of the City.
Section 4. The Official Statement in the form presented to this meeting be and
the same hereby is approved for use by the Underwriter in connection with the public offering
of the Bonds with such changes as may be approved by one or more officers of the City, and
the Mayor or the Mayor's designee is authorized to execute the final Official Statement relating
to the Bonds. The Underwriter is hereby authorized to distribute the Official Statement in
preliminary form to potential purchasers of the Bonds, and the Official Statement in final form
to actual purchasers of the Bonds.
Section 5. The Mayor and the City Clerk (each of whom may sign by facsimile
signature) are hereby authorized and directed to execute, in the name and on behalf of the City,
the Bonds and to cause the Bonds to be delivered to the Trustee for authentication and delivery
to the Underwriter.
Section 6. The Bond Purchase Contract is hereby approved, and the Mayor or
the Mayor's designee and the City Clerk or the City Clerk's designee be and hereby are
authorized and empowered to execute and deliver the Bond Purchase Contract, in substantially
the form presented to and considered at this meeting, with such changes as the officials
executing the same shall deem appropriate and in the best interests of the City as conclusively
evidenced by their execution thereof.
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Section 7. The Mayor or the Mayor's designee and the City Clerk or the City
Clerk's designee are hereby authorized and directed, jointly and severally, to do any and all
things, and to execute and deliver any and all documents which they may deem necessary or
advisable, in order to consummate the issuance of the Bonds and otherwise to carry out, give
effect to and comply with the terms and intent of this Resolution and the documents referred to
herein.
Section 1. The City Clerk shall certify to the passage of this resolution by the
City Council of the City of Newport Beach, and it shall thereupon take effect.
• I hereby certify that the foregoing resolution was adopted by the City Council of
the City of Newport Beach at its meeting of November 12, 1996, by the following vote:
AYES: Councilmembers: Edwards, Debay, Cox, Glover, Watt,
Mayor Hedges
NOES: Councilmembers: None
ABSTAIN: Councilmembers: O'Neil
ABSENT: Councilmembers: None
•
ATTEST:
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Mayor
City Clerk