HomeMy WebLinkAboutReso 47-2000RESOLUTION NO. 47-2000
CITY COUNCIL, CITY OF SOUTH SAN FRANCISCO, STATE OF CALIFORNIA
A RESOLUTION APPROVING SUBSTITUTION OF AN
ALTERNATE CREDIT FACILITY FOR THE CALIFORNIA
HEALTH FACILITIES FINANCING AUTHORITY REVENUE
BONDS (COUNTY PROGRAM), 1986 SERIES B
WHEREAS, the California Health Facilities Financing Authority (the "Authority") issued
the California Health Facilities Financing Authority Revenue Bonds (County Program), 1986
Series B (the "Bonds") for the purpose of providing financial assistance to participating health
institutions in the financing, refinancing and reimbursing of the costs of equipment and capital
improvements constituting a project (as defined in the California Health Facilities Financing
Authority Act); and
WHEREAS, the Bonds were issued pursuant to an indenture of trust, dated as of August
1, 1986 (as heretofore amended and supplemented, the "Indenture"), between the Authority and
Security Pacific National Bank, predecessor trustee to Bank of America National Trust and
Savings Association, predecessor trustee to Bankers Trust Company of California, N.A. as
trustee (the "Trustee"); and
WHEREAS, in order to provide credit support and liquidity for the Bonds, the Authority
entered into a Letter of Credit and Reimbursement Agreement, dated as of April 1, 1994 (the
"Existing Reminbursement Agreement"), with Cooperatieve Centrale Raiffeisen-Boerenleenbank
B.A. "Rabobank Nederland", New York Branch ( the "Existing Credit Provider"); and
WHEREAS, pursuant to the Existing Reimbursement Agreement, the Existing Credit
Provider provided a Letter of Credit, dated April 29, 1994 ( the "Existing Credit Facility"); and
WHEREAS, the Exisiting Credit Facility is scheduled to expire on July 27, 2000, and the
Existing Credit Povider has declined to further extend the term of the Existing Credit Facility;
and
WHEREAS, a commitment has been secured from MBIA Insurance Corporation, a stock
insurance company organized under the laws of the State of New York (the "Alternate Credit
Provider"), to provide a financial guaranty insurance policy) the "Alternate Credit Facility"), to
be issured by the Alternate Credit Provider and delivered to the Trustee, in order to replace the
Existing Credit Facility; and
WHEREAS, in connection with providing financial assistance to participating health
insttutions, the Authority has entered into a lease agreement, dated as of June 30, 1989 (as
amended and supplemented to the date hereof, the "Lease Agreement"), with the City of South
San Francisco ( the "City"); and
WHEREAS, in order to accommodate the Alternate Credit Facility, it is necessary to
amend the Lease Agreement; and
WHEREAS, the City Council of the City of South San Francisco deems it desirable to
enter into a second supplemental lease agreement, dated as of July 1, 2000 (the "Supplemental
Agreement"), between the Authority and the City, in order to modify and amend the Lease
Agreement.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of
South San Francisco as follows:
Section 1. The City Council deems it desirable to approve the issuance and delivery
of the Alternate Credit Facility, to amend the Lease Agreement as set forth in the Supplemental
Agreement as presented to this meeting, and to authorize all other actions necessary in
connection therewith.
Section 2. The issuance and delivery of the Alternate Credit Facility by the Alternate
Credit Provider is hereby approved.
Section 3. The proposed form of Supplemental Agreement, between the Authority
and the City, as lessee, as presented to this meeting, is hereby approved. The Mayor of the City
or the City Manager of the City is hereby authorized and directed, for and on behalf of the City,
to execute and deliver to the Authority the Supplemental Agreement in substantially said form
with such changes therein as such officer, with the advice of counsel to the City, shall approve,
such approval to be conclusively evidenced by the execution and delivery thereofi
Section 4. The City Clerk or the Deputy City Clerk or the Assistant City Clerk of the
City is hereby authorized and directed, for and on behalf of the City, to witness or attest the
signature of the officer executing the Supplemental Agreement and to affix and attest the seal of
the City as may be required in connection with the execution and delivery of the Supplemental
Agreement.
Section 5. The proper of officers, agents and employees of the City are hereby
authorized and directed, for and in the name and on behalf of the City, to take any and all actions
and execute, acknowledge and deliver any and all agreements, instruments or other documents,
and revisions and corrections thereof and amendments thereto, as may in their discretion be
deemed necessary or desirable to carry out and comply with the terms, provisions and intent of
this Resolution and the Supplemental Agreement and any other agreements, instruments or
documents entered into in connection with any of the foregoing.
I hereby certify that the foregoing Resolution was regularly introduced and adopted by the
City Council of the City of South San Francisco at a Regular meeting held on the 10th
__ day of May ,2000 by the following vote:
AYES:
Councilman Eugene R. Mullin, Mayor Pro Tem Joseph A. Fernekes and
Mayor Karyl Matsumoto
NOES: None.
ABSTAIN: None.
ABSENT: Councilman John R. Penna
ATTEST:
Tity Clerk
F:LFile Cabinet\RESO\credit facilities.res.doc