R85-27 10-28-85RESOLUTION NO. R85-27
RESOLUTION APPROVING RESOLUTION OF
PEARLAND HEALTH FACILITIES DEVELOPMENT CORPORATION
CONCERNING ISSUANCE OF BONDS TO FINANCE A PROJECT
FOR PEARLAND GENERAL HOSPITAL GROUP, INC.,
A TEXAS CORPORATION
THE STATE OF TEXAS §
§
COUNTY OF BRAZORIA §
WHEREAS, the Board of Directors (the "Board") of the Pearland
Health Facilities Development Corporation has, by a Resolution
Concerning Issuance of Bonds to Finance a Project for Pearland
General Hospital Group, Inc., a Texas Corporation, adopted October
22, 1985, (the "Resolution"), agreed and declared its intent to
issue its limited obligation revenue bonds pursuant to the terms
of the Health Facilities Development Act of 1981, Article 1528j,
Vernon's Texas Civil Statutes, as amended, (the "Act") and such
other statutes as may provide authority therefor, to finance the
costs of the project and in the amount set forth in the Resolution
for the benefit of Pearland General Hospital Group, Inc., a Texas
Corporation; and
WHEREAS, the City Council of the City of Pearland, Texas,
finds and declares that the action of the Board approving the
Resolution should be approved and is in the best interests of the
inhabitants of the City of Pearland, Texas, for the reasons
therein set forth;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PEARLAND, TEXAS, THAT:
Section 1. The Resolution, as adopted by the Board, agreeing
and declaring an intent to issue limited obligation revenue bonds
of the purposes and in the amount set forth in the Resolution, a
copy of which is attached hereto as Exhibit "A" and made a part
hereof for all purposes, is hereby specifically approved.
Section 2. This Resolution is adopted for the purpose of
satisfying the conditions and requirements of the Act and Section
103 of the Internal Revenue Code of 1954, as amended, and the
regulations promulgated thereunder.
Section 3. This Resolution shall take effect and be in full
force and et~ect upon and after its passage.
PASSED AND APPROVED this
ATTEST:
~ day of October, ]985.
CITY 7~~
OF PEARLAND, TE
By: ~-~t~-~-'t6
Tom Re~d, ~ayor
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CERTIFICATE FOR RESOLUTION CONCERNING
ISSUANCE OF BONDS TO FINANCE A PROJECT FOR
PEARLAND GENERAL HOSPITAL GROUP, INC.
I , the undersigned officer of the Pearland Health Facilities
Development Corporation (the "Issuer") , hereby certify as follows :
1 . In accordance with the Bylaws of the Issuer , the Board
of Directors of the Issuer (the "Board") held a meeting on October
22, 1985, (the "Meeting") , of the duly constituted officers and
members of the Board and all of the persons were present , except
the following : Preston Bullard , thus constituting
a quorum. Whereupon among other business transacted ( -at the
Meeting , a written
RESOLUTION CONCERNING ISSUANCE OF BONDS
TO FINANCE A PROJECT FOR
PEARLAND GENERAL HOSPITAL GROUP, INC.
(the "Resolution") was duly introduced for the consideration of
the Board and read in full . It was then duly moved and seconded
that the Resolution be adopted ; and , after due discussion, said
motion , carrying with it the adoption of the Resolution , prevailed
and carried by a unanimous vote .
2 . A true , full and correct copy of the Resolution adopted
at the Meeting is attached to and follows this Certificate ; the
Resolution has been duly recorded in the Board ' s minutes of the
Meeting ; the persons in attendance at the Meeting were the duly
qualified and acting members of the Board of the Issuer and each
member of the Board was duly and sufficiently notified officially
and personally, in advance , of the time , place , and purpose of
the Meeting in accordance with the Bylaws , and that the Resolution
would be introduced and considered for adoption at the Meeting ,
and the meeting was held and conducted in accordance with the
Articles of Incorporation and Bylaws of the Issuer .
3. Such Meeting was open to the public as required by law;
and that public notice of the date , hour , place and subject �of
said Meeting was given as required by the Texas Open Meetings
Act, Article 6252-17 , Vernon ' s Texas Civil Statutes , as amended:
SIGNED AND SEALED this day of c -..L,e,/ , 1985 .
FREDDY R. C SAC,Secretary
EXHIBIT "A"
RESOLUTION CONCERNING ISSUANCE OF BONDS
TO FINANCE A PROJECT FOR
PEARLAND GENERAL HOSPITAL GROUP, INC.
WHEREAS, the City Council of the City of Pearland , Texas ,
(the "Unit") has , pursuant to the Health Facilities Development
Act of 1981 , Article 1528j , Vernon ' s Texas Civil Statutes , as
amended (the "Act") , approved and created the Pearland Health
Facilities Development Corporation , a nonprofit corporation (the
" Issuer") ;
WHEREAS , the Issuer , on behalf of the Unit is empowered to
finance the cost of projects to provide , expand and improve health
facilities by the issuance of obligations of the Issuer , which
projects will be within or partially within the Unit ' s boundaries ;
WHEREAS , Pearland General Hospital Group , Inc . , a Texas
Corporation, (the "User") has filed an Application for Financial
Participation (including a Project Questionnaire) which is attached
hereto as Attachment 1 and made a part hereof for all purposes
(the "Application") requesting that the Issuer finance a project
described in the Application (the "Project") within the boundaries
of the Unit , and further that the Issuer adopt this Resolution of
Intent with respect to the acquisition, construction and install-
ation of the Project ;
WHEREAS , the User has advised the Issuer that a contributing
factor which would further induce the User to proceed with pro-
viding for the acquisition and construction of the Project would
be a commitment and agreement by the Issuer to issue Health
Facilities revenue bonds (the "Bonds") pursuant to the Act to
finance and pay for the Project;
WHEREAS, in view of rising construction costs and the neces-
sity of compliance with administrative regulations , it is consid-
ered essential that construction of the Project be completed at
the earlest practicable date but, at the same time, the User
wishes to begin construction of the Project after satisfactory
assurances from the Issuer that the proceeds of the sale of the
Bonds , or other obligations of the Issuer in an amount necessary
to pay the costs of the Project will be made available to finance
the Project ;
WHEREAS, the Issuer finds , intends , and declares that this
Resolution shall constitute its official binding commitment,
subject to the terms hereof, to issue Bonds , or other obligations ,
pursuant to the Act in an amount prescribed by the User now
contemplated to be $9 , 500 , 000 (but not to exceed $10, 000, 000 in
any event) and to expend the proceeds thereof to acquire and
construct the Project and to pay all expenses and costs of the
Issuer in connection with the issuance of the Bonds ; and
WHEREAS, the Issuer finds , considers , and declares that the
issuance and sale of the Bonds in the amount and for the purposes
hereinabove set forth will be appropriate and consistent with the
objectives of the Act , and that the adoption of this Resolution
is and constitutes and is intended as (1 ) an inducement to the
Issuer to proceed with providing for the acquisition and construc-
tion of the Project , and (2) the taking of affirmative official
action by the Issuer , acting by and through its Board of Directors
(the "Board") , towards the issuance of the Bonds within the
meaning of federal income tax law with respect to interest on
the Bonds to finance certain facilities to be financed by the
issuance of exempt small issue bonds or exempt facilities , includ-
ing Treas . Reg . §1 . 1 03-8(a) (5) ;
THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
PEARLAND HEALTH FACILITIES DEVELOPMENT CORPORATION THAT:
Section 1 . Subject to the terms hereof, the Issuer agrees
that it will :
(a) Issue the Bonds , and if the User and the Issuer
agree, oth.er evidences of indebtedness providing temporary
financing of the Project which will be issued after the date
hereof and be refunded by the Bonds pursuant to the Act, or
any other Texas legislation heretofore or hereafter enacted
which may provide a suitable method of financing in addition
to or in substitution for the Act .
(b) Cooperate with the User with respect to the issuance
of the Bonds , and , if arrangements therefor satisfactory to
the User and the Issuer can be made , the Issuer will tale
such action and authorize the execution of such documents
and will take such further action as may be necessary dr
advisable for the authorization , execution , and delivery of
any contract or agreements deemed necessary or desirable 1y
the User or the Issuer in connection with the issuance of
the Bonds (collectively, the "Contracts") , providing among
other things for payment of the principal of, interest on,
redemption premiums , paying agents ' charges and Trustees
fees , if any, on the bonds ; payment of fees and charges of
the Issuer or the Unit; acquisition, construction, and
improvement of the Project ; payment of fines and penalties ;
and use, operation and maintenance of the Project (and the
execution of any appropriate and necessary guaranty agree-
ments) , all as shall be authorized , required , or permitted
by law and as shall be mutually satisfactory to the Issuer ,
the Unit and the User.
(c) If the proceeds from the sale of the Bonds are
insufficient, take such actions and execute such documents
as may be necessary to permit the issuance from time to time
in the future of additional bonds on the terms which shall be
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set forth therein , whether on a parity with other series of
bonds or otherwise , for the purpose of paying the costs of
completing the acquisition and construction of the Project ,
as requested by the User and within then applicable limita-
tions .
(d) Take or cause to be taken such other actions as
may be required to implement the aforesaid undertakings or
as it may deem appropriate in pursuance thereof.
The Bonds shall specifically provide that neither the State
of Texas , the Unit , nor any political issuer , subdivision or
agency of the State of Texas shall be obligated to pay the same
or the interest thereon and that neither the faith and credit nor
the taxing power of the State of Texas , the Unit or any political
issuer , subdivision or agency thereof is pledged to the payment
of the principal of, premium , if any, or interest on the Bond .
Section 2. It is understood by the Issuer and the Unit , aid
the User has represented to the Issuer, that in consideration of
this Resolution and by filing. the. Application , and subject to tie
terms and conditions hereof, the User has agreed that :
(a) Prior to or contemporaneously with the sale of t e
Bonds in one or more series or issues from time to time as
the Issuer and the User shall hereafter agree to in writing ,
the User will enter into the Contracts with the Issuer under
the terms of which the User will obligate itself to pay Co
the Issuer (or to a Trustee , as the case may be) sums suffi-
cient in the aggregate to pay the principal of, interest on ,
redemption premiums , paying agents ' fees and Trustee ' s fees ,
if any, on the Bonds , as and when the same become due and
payable , with such contract to contain the provisions de-
scribed in Section 1 hereof and such other provisions as
may be required or permitted by law and to be mutually
acceptable to the Issuer and the User.
(b) The User will (i) pay all Project costs which are
not or cannot be paid or reimbursed from the proceeds of the
Bonds , and (ii) at all times , indemnify and hold harmless
the Issuer against all losses , costs , damages , expenses , and
liabilties of whatsoever nature (including but not limited
to attorneys ' fees , litigation and court costs , amounts paid
in settlement and amounts paid to discharge judgment )
directly or indirectly resulting from , arising out of or
related to the issuance , offering , sale or delivery of the
Bonds , or the design , construction , installation , operation ,
use, occupancy, maintenance, or ownership of the Project.
Section 3 . It is recognized and agreed by the Issuer that
the User may exercise its or his rights and perform its or his
obligations with respect to the financing of the Project either
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through (a) itself in its or his own name ; (b) any of its wholly-
owned subsidiaries ; (c) any "related person" as defined in the
Code ; or (b) any legal successor thereto , respectively, subject
to approval of the Issuer ' s bond counsel and , provided that
suitable guaranties necessary or convenient for the marketability
of the Bonds shall be furnished , it required by the Issuer, and
all references to the User shall be deemed to include the User
acting directly through itself or any such approved entities .
Section 4. The obligation of the issuer to issue the Bonds is specifically subject to the ability of the Issuer to issue
such Bonds in compliance with the provisions of Section 103(n) of
the Code , "Limitation on Aggregate Amount of Private . Activity
Bonds Issued During any Calendar Year , " and to any rules or
regulations which may be promulgated by the Issuer to implement
such provisions . Any officer or other member of the Board of the
Issuer is hereby authorized to take any action and file any
notification required to reserve for the Bonds a portion of the
state allocation for "private activity bonds , " as defined in the
Deficit Reduction Act of 1984.
Section 5. The adoption of the Resolution, as requested in
the Application , shall be deemed to constitute the acceptance of
the User ' s proposal that it be further induced to proceed with
providing the Project and the Application and this Resolution
shall constitute an agreement between the Issuer and the User
effective on the date that this Resolution is adopted , and this
Resolution is affirmative of official action taken by the Issuer
towards the issuance of the Bonds .
PASSED, ADOPTED AND APPROVED on th' the /day of October ,
1985.
E S FRAUENBERGER, es1 ent
ATTEST:
FREDDY R. CE SAC, Secretary
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.
PUBLIC NOTICE OF MEETING
OF THE BOARD OF DIRECTORS OF
PEARLAND HEALTH FACILITIES DEVELOPMENT CORPORATION
Pursuant to article 6252-17 of V.A. C. S. of Texas , as amended ,
notice is hereby given to all interested persons that on the 22nd
day of October , 1985 , at :6 : 00 o ' clock p.m . , the Board of Directors
of the Pearland Health Facilities Development Corporation will
hold a meeting in the Board Room, Pearland Hobby Area Chamber of
Commerce , 3501 Liberty Drive , Pearland , Texas , to consider and
take necessary action upon the following matters :
1 . Approval of minutes of past meetings ;
2. Consideration of the passage of a resolution of intent
regarding the application of Pearland General Hospital
Group, Inc . for the issuance of limited obligation
revenue bonds .
All interested citizens are invited to attend such meeting .
Questions or requests for information may be directed to Bobby J.
Williams , 2414 S. Park, Pearland , Texas , 77581 , (713) 485-2473 .
Dated :
October 17 , 1985
BOBBY J. WILLIAMS,
Attorney for Board
Posted :
October 17 , 1985
City ecretary for the
City of Pearland , Texas
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