HomeMy WebLinkAboutResolution No. 1898 2857
RESOLUTION NO. 1898
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY
AUTHORIZING THE CITY ATTORNEY TO PREPARE A JOINT POWERS
AGREEMENT WITH THE COUNTY OF LOS ANGELES FOR CONSTRUCTION
OF THE DOWNEY COMMUNITY HOSPITAL
WHEREAS, the City of Downey has been advised by Stone & Youngberg, Financing
Consultants, that the use of a public authority through a Joint Powers Agreement
would be of benefit to the City of Downey for the following reasons:
1. Under similar market conditions, bonds of a public authority will
bear lower interest costs than bonds of a non - profit corporation
for the same project.
2. The properties and interests of the parties involved are not
subject to possible taxation for possessory interest.
3. The time required to create the public authority and effect the
financing could conceivably be half that needed to accomplish
the same result through the use of the non - profit corporation.
4. The issuer of the bonds is a public agency and the bonds there-
fore, should have better marketability.
5. Offering the bonds for public sale does not involve the time and
expense needed to secure rulings and approval by the Internal
Revenue Service, the Securities and Exchange Commission, and the
California Corporations Commissioner.
AND WHEREAS, the City Council in setting up the Joint Powers Agreement
with the County would reappoint the present Hospital Corporation Board as the
Joint Powers Authority, with the County appointing two (2) and the City
appointing three (3); and
WHEREAS, further appointments or replacements to the Board would be made
by the County from lists submitted by the Downey City Council;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DOWNEY DOES RESOLVE AS
FOLLOWS:
SECTION 1. That the City Council authorize the City Attorney to prepare
a Joint Powers Agreement for construction of the Downey Community Hospital
satisfactory to the City of Downey and acceptable to the County of Los Angeles.
SECTION 2. That the Board of Supervisors of Los Angeles County by this
resolution be requested to take all necessary steps on its part so that a
Joint Powers Agency can be formed.
SECTION 3, The City Clerk shall certify to the adoption of this resolution.
APPROVED AND ADOPTED this 25th day of April, 1967.
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Ma r
ATTEST:
City Clerk
I HEREBY CERTIFY that the foregoing resolution was adopted by the City Council
of the City of Downey at a regular meeting held thereof on the 25th day of April,
1967, by the following vote, to wit:
AYES: 5 Councilmen: Dunnum, Corbin, Morton, Temple, Dickerson
NOES: 0 Councilmen: None
ABSENT: 0 Councilmen: None
City Clerk