HomeMy WebLinkAboutAgenda Statement 1973/02/27 Item 10AGENDA ITEM N0. [ 10 ]
CHULA VISTA CITY COUNCIL MEETING OF: February 27, 1973
ITEM TITLE: Resolution - Amending Resolution No. 5966 Relating to
Community Hospital Facilities
INITIATED BY: City Attorney
BACKGR011Nn
The City Council has heretofore acted by resolution to declare its
intention to accept a gift of Community Hospital facilities when
tendered free and clear of all indebtedness. The purpose of such
declaration was to enable the hospital to sell first mortgage
bonds as a means of financing the facility on a nonprofit basis.
A substantial change has now come about in the method of financing
the facility in the opinion of bond counsel, O'Melveny & Myers,
and Mr. Blackman of that firm feels that the resolution adopted
by the City Council should be appropriately amended both in the
interests of the Community Hospital and the City of Chula Vista.
(It should be noted that O'Melveny & Myers although being pre-
sently employed by Community Hospital in this transaction has
repeatedly expressed a sincere interest in protecting the interests
of the City since we have been in the past and probably will at
some time in the future be one of their favored clients.)
The new proposed method of financing involves a combination of
first mortgage bonds and revenue noted subordinate to those bonds.
The resolution as submitted makes reference now to both the bonds
and notes to be issued by the corporation. It is the opinion of
O'Melveny & Myers, concurred in by this office, that the City in
no way entertains any obligations as was the case in the previous
resolution by adopting the present resolution.
ATTACHED: Resolution [X?] Ordinance [ ] Agreement [ ] Plat [ ]
See EXHIBITS [X) No. 1
Financial Statement: N/A
Commission-Board Recommendation: N/A
Department Head Recommendation
City Manager Recommendation:
Approval of Resolution
At the time of the agenda meeting, adequate information was not available. The
City Attorney will be receiving additional information to supplement this A-113.
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