HomeMy WebLinkAboutResolutions - No. 79-160CITY OF LODI
RESOLUTION NO. 79-160
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LODI APPROVING IN PRINCIPLE THE FINANCING BY
LODI MEMORLAL HOSPITAL OF A HOSPITAL PROJECT
AS A PROJECT UNDERTAKEN IN THE BEST INTERESTS
OF THE CITY OF LODI AND NECESSARY AND PROPER
FOR MUNICIPAL AND PUBLIC PURPOSES.
WHEREAS, this City Council (the "Council") of the
City of Lodi, California (the "City") understands that Lodi
Memorial Hospital, a nonprofit corporation organized and
existing under the laws of the State of California (the "Hospital"),
proposes to issue bonds for the purposes of constructing and/or
improving a hospital facility (the "Hospital Facility") located in
Lodi, California; and
WHEREAS, this Council has been advised that in order
to obtain certain tax advantages for the holders of the bonds of the
Hospital to be issued to finance the construction and/or improvement
of the Hospital Facilities, the Hospital has determined to tender
by gift to the City, after all of such bonds have been fully paid, all
right, title and interest in the Hospital Facility and to grant the City
an option to purchase, subject to any existing encumbrances, the
Hospital Facility at any time when the Hospital's bonds are declared
due and payable in the event of a default thereon for a price
sufficient to redeem all of such bonds then outstanding (with
the proviso that the City shall in no event be obligated to exercise
such option); and
WHEREAS, there has been presented to this Council
information concerning the proposed construction and/or improve-
ment of the Hospital Facility and the benefits to be realized by
the City from its construction; and
WHEREAS, the form of bonds to be issued by the Hospital
will clearly state as follows:
The City of Lodi, California shall not in any
event be liable for the payment of the principal of,
premium, if any, or interest on the bonds or the
performance of any obligation or agreement of any
kind whatsoever of the Hospital pertaining thereto,
and none of the bonds or of any of the Hospital's
agreements or obligations relating thereto shall be
construed to constitute an indebtedness of the City
of Lodi.
WHEREAS, the City has been advised by the law firm of
Orrick, Herrington, Rowley & Sutcliffe that the proposed offering
of bonds by the Hospital will not constitute a liability of any kind
whatsoever of the City;
NOW, THEREFORE, BE IT AND IT IS HEREBY RESOLVED,
by the City Council of the City of Lodi, that the Council hereby
determinesthat the existence of the Hospital is beneficial to and in
the best interests of the City, that the Hospital is engaged in an
activity which is essentially public in nature, and that it is in the
best interest of the City and necessary and proper for municipal
and public purposes for the Hospital to proceed with the proposed
financing of the acquisition and construction and/or improvement
of the Hospital Facility by the sale of bonds of the Hospital;
RESOLVED, FURTHER, that the Council hereby approves
the Hospital and approves in principle such a sale of bonds of the
Hospital;
RESOLVED, FURTHER, that the Council hereby declares
its present intention to accept on behalf of the City of aforementioned
gift of the Hospital Facility at such time as it may be tendered to
the City and authorizes any and all appropriate city officials to
accept the aforementioned grant of an option to purchase the Hospital
Facility and to accept the aforementioned gift of the Hospital Facility
at such time as each may be tendered to the City; and
RESOLVED, FURTHER, that the appropriate city officials
are hereby authorized to take any steps necessary or appropriate
to carry out the purposes of the foregoing resolution.
PASSED AND ADOPTED this 7th day of November, 1979
by the following vote:
AYES: Councilmen - Hughes, Katnich, McCarty,
Pinkerton and Katzakian
NOES: Councilmen - None
ABSENT: Councilmen - None
ALICE M. REIMCHE
City Clerk
CLERK'S CERTIFICATE
I, Alice M. Reimche, City Clerk of the City of Lodi,
State of California; do hereby certify that the foregoing is a full,
true and correct copy of a resolution duly adopted at a regular
meeting of the City Council of said City duly and regularly and
legally held at the regular meeting place thereof on the 7th day
of November, 1979, of which meeting all of the members of said
City Council had due notice and at which not less than a majority of
the members thereof were present and acted; that at said meeting
said resolution was introduced by Mayor Pro Tempore Katnich,
and read in full and was thereupon, upon motion of Mayor Pro Tempore
Katnich, seconded by Councilman Pinkerton, adopted by the following
vote:
AYES: Councilmen - Hughes, Katnich, McCarty,
Pinkerton and Katzakian
NOES: Councilmen - None
ABSENT: Councilmen - None
That I have carefully compared the same with the original
minutes of said meeting on file and of record in my office; that
said resolution is duly entered of record in the minutes; that the
foregoing is a full, true and correct copy of the original resolution
adopted at said meeting and entered in said minutes; that said
resolution has not been amended, modified or rescinded since the
date of its adoption and that the same is now in full force and effect.
WITNESS my hand and the seal of said City, this 8th day of
'Jr
November, 1979.
ALICE M. REIMCHE
City Clerk Ci+v of T,nrli