R 2489
. , . -
.
RESOLUTION NO. 2489
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE, CALIFORNIA AUTHORIZING THE
EXECUTION AND DELIVERY OF AN INSTALLMENT
PURCHASE AGREEMENT, INSTALLMENT SALE
AGREEMENT, TRUST AGREEMENT, ACCEPTANCE OF A
DEED OF TRUST AND CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH RELATING TO AN
INSTALLMENT PURCHASE FINANCING ON BEHALF OF
VISTA HOSPITAL SYSTEMS, INC.
WHEREAS, the City Council of the City of Arroyo Grande (the
"City") has, by Resolution No. 2488 , adopted on September 24,
1991, provided for and authorized an installment purchase financing
on behalf of Vista Hospital Systems, Inc. (herein called the
"Corporation"), to finance (1) the acquisition by the Corporation
of certain real property located within the City adjacent to Arroyo
Grande Community Hospital (herein called the "Property"), and,
payment of fees and (2) expenses incurred in connection with the
installment purchase financing thereof;
WHEREAS, pursuant to Section 147(f) of the Internal Revenue
Code of 1986, as amended (the "Code"), to qualify as obligations,
interest on which is excluded from gross income for federal income
tax purposes, the issuance of such obligations requires approval,
following a public hearing, by the elected legislative body of the
issuer of the obligations and of the governmental unit having
jurisdiction over the area in which the project financed by the
obligation is located;
WHEREAS, the Property is located wholly within the
geographical jurisdiction of the City;
WHEREAS, the City Council is the elected legislative body of
the City;
WHEREAS, a notice of a public hearing with respect to the
proposed execution of the Certificates was published in a newspaper
of general circulation in the City;
WHEREAS, the City Council of the City held the said public
hearing, at which time an opportunity was provided to present
arguments both for and against the execution of the Certificates
and the location of the Property;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City
of Arroyo Grande, as follows:
----.-----..-----
. -
.
1. The proposed form of installment purchase agreement,
dated as of September 1, 1991, between the City and the
Corporation, presented to this meeting, is hereby approved. The
Mayor, the city Manager or their respective designees, each acting
alone, is hereby authorized and directed, for and in the name and
on behalf of the City, to execute and deliver an installment
purchase agreement in substantially said form, provided that the
Purchase Price specified in Section 4.2 thereof does not exceed
$1,900,000 and with such other changes therein as such officer may
require or approve, such approval to be conclusively evidenced by
the execution and delivery thereof. The payment dates, interest
components, terms and prepayment and other terms of said
installment purchase agreement shall be as provided in said
installment purchase agreement, as finally executed. The Mayor,
the City Manager or their respective designees, each acting alone,
is hereby further authorized and directed to accept, for and in the
name of the City, the memorandum of installment purchase agreement
attached as an exhibit to the form of installment purchase
agreement.
2. The proposed form of installment sale agreement, dated as
of September 1, 1991, between the City and the Corporation, and the
form of the memorandum of installment sale agreement attached as an
exhibit thereto, presented to this meeting, are hereby approved.
The Mayor, the City Manager, or their respective designees, each
acting alone, is hereby authorized and directed, for and in the
name and on behalf of the City, to execute and deliver an
installment sale agreement in substantially said forms, with such
changes therein as such officer may require or approve, such
approval to be conclusively evidenced by the execution and delivery
thereof.
3. The proposed form of trust agreement, dated as of
September 1, 1991, among the City, the Corporation and a corporate
trustee to be designated, as trustee (herein called the "Trustee"),
presented to this meeting, is hereby approved. The Mayor, the City
Manager or their respective designees, each acting alone, is hereby
authorized and directed, for an in the name and on behalf of the
City, to execute and deliver a trust agreement in substantially
said form, with such changes therein as such officer may require or
approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
4. The proposed form of agreement for purchase and sale of
real property to be executed by and between Great Western Land
Acquisition Corp, a Nevada corporation, as seller (herein called
the "Seller"), and the Corporation, as purchaser presented to this
meeting is hereby approved.
- 2 -
.-
.
5. The proposed form of the deed of trust, dated as of
September 1, 1991, and the promissory note from the Corporation to
the City presented to this meeting are hereby approved. The Mayor,
the City Manger, or their respective designees, each acting alone,
is hereby authorized and directed, for and in the name and on
behalf of the City, to accept the deed of trust and note in
substantially said forms, with such changes therein as such officer
may require or approve, such approval to be conclusively evidenced
by the execution and delivery thereof.
6. It is the purpose and intent of the City Council that
this resolution constitute approval of the issuance of the
obligations of the City by the applicable elected legislative body
in accordance with Section 147(f) of the Code.
7. The City Clerk is hereby authorized and directed to
attest the signature of the Mayor, the City Manager or their
respective designees and to affix and attest the seal of the City
as may be required in connection with the execution and delivery of
the installment purchase agreement, installment sale agreement,
trust agreement, and the deed of trust in accordance with this
resolution.
8. The officers of the City 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 execution and
delivery of the documents approved in this resolution or
contemplated hereby and otherwise to carry out, give effect to and
comply with the terms and intent of this resolution and the
documents approved hereby or contemplated hereby, including without
limitation, the execution and delivery of any closing documents in
connection with the issuance of the Certificates. The officers
executing the documents approved by this resolution are authorized
to approve such changes to said documents as are necessary and
appropriate and not contrary to the general tenor thereof, such
approval to be conclusively evidenced by such execution thereof.
9. The Certificates and the interest thereon shall be
limited obligations of the City payable solely from the revenues,
funds and assets pledged under the Trust Agreement to secure
payment of the Certificates and under no circumstances shall the
Certificates be payable from any other revenues, funds, assets or
income of the City.
10. The Certificates shall not constitute an indebtedness,
liability, general, special or moral obligation or a pledge or loan
of the faith or credit or taxing power, within the meaning of any
constitutional or statutory provision whatsoever, the United Sates
- 3 -
-'.
. .
,
of America or any agency or instrumentality thereof, the state of
California, the City or any other political subdivision or
governmental unit.
11- If any section, paragraph, clause, or provision of this
resolution shall be held to be invalid or unenforceable, the
invalidity or unenforceability of such section, paragraph, clause,
or provision shall not affect any of the remaining provisions of
this resolution.
12. This resolution shall take effect immediately upon its
passage.
PASSED AND ADOPTED by the City Council of the City of
Arroyo Grande on September 24, 1991, by the following vote:
AYES: Council Members: Smith, Dougall, Moots and Mayor Millis
NOES: None
ABSENT: Council Member Olsen
(SEAL)
ATTEST:
I~a.~
City Cler of the c~ty
of Arroyo Grande
JJ: KMMO\ISSUERS\ARROYO\Res. Doc
- 4 -
"- . -
CLERK'S CERTIFICATE
I, Nancy A. Davis, City Clerk of the city of Arroyo Grande,
California, do hereby certify as follows:
The foregoing Resolution No. 2489 is a full, true and
correct copy of a resolution duly adopted at a regular meeting of
the City Council of the City of Arroyo Grande duly and legally held
at the regular meeting place there of on September 24, 1991, of
which meeting said members had due notice, by the following vote:
AYES: Council Members: Smith, Dougall, Moots and Mayor Millis
NOES: None
ABSENT: Council Member Olsen
I have carefully compared the same with the original minutes
of said meeting on file and of record in my office and said
resolution is a full, true and correct copy of the original
resolution adop~ed at said meeting and entered in said minutes; and
Said resolution has not been amended, modified or rescinded
since the date of its passage and the same is now in full force and
effect.
Date:
JJ:KHMO\ISSUERS\ARROYO\R8S.doc
- 5 -
-