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93-9570 Hosp Ref BondsKuhn -Gar Priming — Salina. Kansas /u6�shec� in We Sab,ua JaaiNal Aasta6" /y93 ORDINANCE NO. 93-9570 ORDINANCE AUTHORIZING THE CITY OF SALINA, KANSAS, TO ISSUE ITS HOSPITAL REVENUE REFUNDING BONDS (ASBURY-SALINA REGIONAL MEDICAL CENTER, INC. PROJECT), SERIES 1993, FOR THE PURPOSE OF REFUNDING THE CITY'S OUTSTANDING HOSPITAL REVENUE BONDS (ASBURY-SALINA REGIONAL MEDICAL CENTER, INC. PROJECT), SERIES 1989, APPROVING A LEASE AGREEMENT, A BOND TRUST INDENTURE, AN ESCROW TRUST AGREEMENT, A BOND PURCHASE AGREEMENT, A PRELIMINARY OFFICIAL STATEMENT AND AN OFFICIAL STATEMENT AND CERTAIN OTHER MATTERS RELATED THERETO. WHEREAS, the City of Salina, Kansas (the "City"), is a municipal corporation duly organized existing under the laws of the State of Kansas; and WHEREAS, the City is authorized under K.S.A. 12-1740 et se ., as amended (the "Act"), to revenue bonds to provide for the purchase, construction, extension and improvement of projects rized under the Act; and WHEREAS, pursuant to a Bond Trust Indenture, dated as of September 15, 1989, between the and Bank IV Kansas, N.A., the City has issued its Hospital Revenue Bonds (Asbury -Salina Regional ical Center, Inc. Project), Series 1989, in the original principal amount of $16,100,000 (the "Series Bonds"), of which $15,800,000 principal amount is outstanding; WHEREAS, the City is authorized pursuant to K.S.A. 10-116a, as amended, to issue revenue ig bonds to refund revenue bonds issued under the Act; and WHEREAS, the City Commissioners of the City find and determine that it is desirable in order romote, stimulate and develop the general welfare and economic prosperity of the State of Kansas and City and its people that the City take the following actions: 1. Issue its Hospital Refunding Revenue Bonds (Asbury -Salina Regional Medical Center, Inc. Project), Series 1993 (the "Series 1993 Bonds"), for the purpose of refunding the Series 1989 Bonds which were issued for the purpose of providing funds to finance the costs of purchasing, constructing, improving, equipping, enlarging and remodeling a facility leased to and operated by Asbury -Salina Regional Medical Center, Inc., a Kansas not-for-profit corporation (the "Corporation") (the "Facility"); 2. Enter into a Lease Agreement (the "Lease"), with the Corporation, under which the City will continue to lease the Facility to the Corporation under the terms and conditions set forth therein; 3. Enter into a Bond Trust Indenture (the "Bond Indenture"), with Bank IV Kansas, N.A., Wichita, Kansas, as bond trustee (the "Bond Trustee"), under which the City will pledge and assign substantially all of its interest in the Lease to the Bond Trustee to secure the payment of the Series 1993 Bonds; Kunn-Go* Fretting —Salina. Kansas 4. Enter into a Bond Purchase Agreement (the "Bond Purchase Agreement"), among the City, A.G. Edwards & Sons, Inc. and the Corporation, under which the City agrees to sell the Series 1993 Bonds to A.G. Edwards & Sons, Inc.; 5. Enter into an Escrow Agreement (the "Escrow Agreement"), among the City, the Corporation and Bank IV Kansas, N.A., as escrow agent, whereby the City establishes an escrow fund for the purpose of providing for the payment of the Series 1989 Bonds; and 6. Approve a Preliminary Official Statement (the "Preliminary Official Statement") respecting the Series 1993 Bonds and a final Official Statement (the "Official Statement") respecting the Series 1993 Bonds; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSIONERS OF THE OF SALINA, KANSAS AS FOLLOWS: Section 1. Authorization of and Security for the Series 1993 Bonds. The City is hereby .ed to issue and sell the Series 1993 Bonds for the purpose described above in the aggregate I amount, with maturities, interest rates, redemption provisions and subject to such provisions, its and agreements, as are set forth in the Bond Indenture and Schedule 1 hereto. The principal of and premium, if any, and interest on the Series 1993 Bonds shall be limited and obligations of the City payable solely out of the rents, revenues and receipts derived by the City it to the Lease. Section 2. Form of Series 1993 Bonds. The City shall issue the Series 1993 Bonds in ntially the form submitted to and reviewed by the City on the date hereof and as set forth in the Indenture, with such changes therein as shall be approved by the Mayor of the City, the Mayor's ure thereon, whether manual or facsimile, to be conclusive evidence of the Mayor's approval Section 3. Execution and Authentication of Series 1993 Bonds. The Mayor of the City is !by authorized and directed to execute the Series 1993 Bonds on behalf of and as the act and deed of City. The City Clerk of the City is hereby authorized and directed to cause the City's seal to be ced thereto or printed thereon and to attest said seal, all in the manner provided in the Bond ;nture. Said officers are hereby further authorized and directed to deliver the Series 1993 Bonds on ilf of the City to the Bond Trustee for authentication in accordance with the Bond Indenture. Section 4. Approval of Documents. The Bond Indenture, the Lease, the Bond Purchase reement and the Escrow Agreement are hereby approved in substantially the forms submitted to and iewed by the City on the date hereof and as attached hereto, with such changes therein as shall be roved by the Mayor, his execution thereof to be conclusive evidence of such approval. The Mayor of the City is hereby authorized and directed to execute and deliver the Bond denture, the Lease, the Bond Purchase Agreement and the Escrow Agreement on behalf of and as the :t and deed of the City. The City Clerk to the extent the City Clerk deems it necessary or appropriate, hereby authorized to affix the City's seal thereto and to attest said seal, but the omission of the affixing the City's seal thereto shall not impair the validity, binding effect or enforceability of said documents of the execution and delivery thereof on behalf of the City. -2- K— Co. Printing — Salina, Kansas Section 5. Approval of Preliminary Official Statement. The Preliminary Official Statement, copy of which has been submitted to and reviewed by the City on the date hereof and is attached hereto, id the final Official Statement, in substantially the form of the Preliminary Official Statement, and the iblic distribution of the same by the purchaser of the Series 1993 Bonds is hereby approved. The [ayor of the City is hereby authorized and directed to execute and deliver the final Official Statement i behalf of the City with such changes therein or amendments or supplements thereto as he shall )prove, said execution thereof to be conclusive evidence of such approval. The City has not participated the preparation of the Preliminary Official Statement or the final Official Statement and has not verified e accuracy of the information therein, other than information respecting the City. Accordingly, such )provals do not constitute approval by the City of such information or a representation by the City as the completeness or accuracy of the information contained therein. Section 6. Further Authority. The City shall, and the officers and agents of the City are y authorized and directed to, take such action, expend such funds . and execute such other ments, documents, certificates and instruments as may be necessary or desirable to carry out and ly with the intent of this resolution and to carry out, comply with and perform the duties of the City respect to the Series 1993 Bonds, the refunding of the Series 1989 Bonds and the documents ved by this ordinance. Section 7. Effective Date. This ordinance shall take effect and be in full force from and after passage by the City Commissioners and its publication in the official newspaper of the City. ASSED AND APPROVED by the City Commissioners of the City of Salina, Kansas this Z,&'* l of , 1993. sAL] Mayor TTEST: ity Clerk -3- Kuhn -Cox Priming — Salina. Kansas SCHEDULE 1 The Bonds maturing on or after October 1, 2004 are subject to redemption by the Bond Issuer upon written direction of the Corporation on or after October 1, 2003, in whole at any time or in part on any interest ment date, at the redemption price of 100% of the principal amount thereof, plus accrued interest to the :motion date. The Bonds maturing on October 1, 2008 are subject to scheduled mandatory redemption by the Bond Issuer a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, in the lowing principal amounts on the following scheduled mandatory redemption dates: October 1 Principal of the Year Amount 2007 $1,050,000 2008 (maturity) 1,105,000 The Bonds maturing on October 1, 2013 are subject to scheduled mandatory redemption by the Bond Issuer a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, in the llowing principal amounts on the following scheduled mandatory redemption dates: October 1 SERIAL BONDS of the Year October 1 Principal $1,165,000 of the Year Amount Interest Rate 1994 $ 535,000 2.75% 1995 625,000 3.50% 1996 650,000 3.75% 1997 670,000. 4.00% 1998 695,000 4.20% 1999 725,000 4.30% 2000 760,000 4.50% 2001 790,000 4.60% 2002 825,000 4.70% 2003 865,000 4.75% 2004 905,000 5.00% 2005 955,000 5.00% 2006 1,005,000 5.10% TERM BONDS October 1 Principal of the Year Amount Interest Rate 2008 $2,155,000 5.20% 2013 5,730,000 5.30% The Bonds maturing on or after October 1, 2004 are subject to redemption by the Bond Issuer upon written direction of the Corporation on or after October 1, 2003, in whole at any time or in part on any interest ment date, at the redemption price of 100% of the principal amount thereof, plus accrued interest to the :motion date. The Bonds maturing on October 1, 2008 are subject to scheduled mandatory redemption by the Bond Issuer a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, in the lowing principal amounts on the following scheduled mandatory redemption dates: October 1 Principal of the Year Amount 2007 $1,050,000 2008 (maturity) 1,105,000 The Bonds maturing on October 1, 2013 are subject to scheduled mandatory redemption by the Bond Issuer a redemption price equal to the principal amount thereof plus accrued interest to the redemption date, in the llowing principal amounts on the following scheduled mandatory redemption dates: October 1 Principal of the Year Amount 2009 $1,165,000 2010 1,225,000 2011 1,290,000 2012 1,355,000 2013 (maturity) 695,000 M