RESO 2002-35 - HMH EQUIPMENT - APPROVE LEASE RESOLUTION NO. 2002-35
RESOLUTION GIVING CONSENT TO A PROJECT FOR
HUNTSVILLE MEMORIAL HOSPITAL
WHEREAS, the Health Facilities Development Act, Chapter 221, Texas Health and Safety
Code, as amended(the"Act"),authorizes and empowers HFDC of Central Texas, Inc. (the"Issuer")
on behalf of the City of Hubbard, Texas (the "Issuing Unit"), to acquire, by lease, health facilities
found by the Board of Directors of the Issuer to be required,necessary or convenient for health care,
research and education, any one or more, within the State of Texas and in furtherance of the public
purposes of the Act; and
WHEREAS, Section 221.030(a)(1) of the Act provides that the Issuer may provide for the
financing and refinancing of one or more such health facilities located outside the limits of the Issuing
Unit with the consent of every city, county and hospital district within which such health facility is
or is to be located; and
WHEREAS, the Issuer will lease certain hospital equipment (the "Project") in a maximum
principal amount of$4,000,000 from General Electric Capital Corporation and will sublease the
Project to Huntsville Memorial Hospital (the "Hospital"); and
WHEREAS,the Project will be located at the Hospital's facilities within the City of Huntsville,
Texas(the "City") at 3000 Interstate 45 in Huntsville, Texas and is located outside the limits of the
Issuing Unit;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF HUNTSVILLE,
TEXAS THAT:
Section 1. The City hereby consents to the leasing and subleasing by the Issuer of the Project
as provided by Section 221.030(a)(1)of the Act and approves the financing in a maximum principal
amount of$4,000,000 as required by Section 147(f)of the Internal Revenue Code of 1986;provided
that the City shall have no liability in connection with the leasing and subleasing of the Project and
shall not be required to take any further action with respect thereto.
Section 2. This Resolution shall take effect immediately from and after its adoption and it is
accordingly so ordered.
PASSED AND APPROVED, this 1144k c c-edea C',Z s
Mayor
ATTEST:
Danna Welter, City Secretary
APPROVED AS TO FORM:
Paul C. Isham, City Attorney
i
LAW OFFICES
McCALL, PARKHURST & HORTON L.L.P.
600 CONGRESS AVENUE 717 NORTH HARWOOD 700 N. ST. MARY'S STREET
1250 ONE AMERICAN CENTER NINTH FLOOR 1225 ONE RIVERWALK PLACE
AUSTIN,TEXAS 78701-3248 DALLAS,TEXAS 75201-6587 SAN ANTONIO,TEXAS 78205-3503
TELEPHONE: 512 478-3805 TELEPHONE: 214 754-9200 TELEPHONE: 210 225.2800
FACSIMILE: 512 472-0871 FACSIMILE: 214 754-9250 FACSIMILE: 210 225-2984
November 27, 2002
VIA FAX AND UPS DELIVERY
Ms. Danna Welter
City Secretary
City of Huntsville
1212 Avenue M
Huntsville, Texas 77340-4608
Re: Huntsville Memorial Hospital—Equipment Lease from HFDC of Central Texas, Inc.
Dear Ms. Welter:
HFDC of Central Texas,Inc. (the "Issuer")proposes, on behalf of the City of Hubbard, Texas,
to acquire certain hospital equipment (the 'Equipment") by lease from General Electric Capital
Corporation, and to sublease the Equipment to Huntsville Memorial Hospital (the "Hospital') in
Huntsville, Texas. The Equipment constitutes "health facilities" under, and the lease and sublease
would be entered into pursuant to,the Texas Health Facilities Development Act,Chapter 221,Texas
Health and Safety Code (the "Act").
The Issuer established its tax-exempt leasing program to assist hospitals such as the Hospital
by lowering the cost of acquiring necessary hospital equipment. Our firm has acted as special tax
counsel to the Issuer in connection with this program.
Section 221.030 of the Act requires that for any equipment that is located outside of the City
of Hubbard, Texas to be financed by the Issuer with this tax-exempt lease program,the Issuer must
first obtain the consent to such financing of each city, county and hospital district within which such
equipment is located.
The Equipment will be used at the Hospital and is located within the boundaries of the City of
Huntsville. Therefore, pursuant to Section 221.030 of the Act,the consent of the City of Huntsville
is required prior to the financing of the Equipment pursuant to the tax-exempt lease program. For
your convenience, I have enclosed proposed form of a consent resolution for the City Council.
This consent is required solely for the purposes of satisfying Section 221.030 of the Act and to
enable the Issuer to proceed with the proposed financing of the Equipment pursuant to the tax-
exempt lease program. Such consent in no way imposes any payment or other obligation on the City
of Huntsville in connection with the financing.
3�
Therefore, on behalf of the Issuer and the Hospital I respectfully request that consideration of
adoption of the enclosed consent resolution be placed on the agenda of the City Council at its next
available meeting, and that the City Council approve and adopt such consent resolution. Upon such
approval, I would also very much appreciate it if you would return three completed, originally
executed and sealed consent resolutions to me in the self-addressed, stamped envelope enclosed for
your convenience.
Please do not hesitate to contact me should you have any questions or comments. Thank you
very much for your cooperation and assistance.
Sincerely yours,
McCall, Parkhurst &Horton L.L.P.
Robe . Hood
Enclosures
cc: Mr. Richard Crider, Huntsville Memorial Hospital
f
IL
CITY COUNCIL Item No.
d Dec.17,20000
2
AGENDA ITEM
Prepared By: Bob Hart,City Manager Department Head Approval: BH
RESOLUTION GIVING CONSENT TO HUNTSVILLE MEMORIAL HOSPITAL FOR EQUIPMENT PURCHASE
ITEM DESCRIPTION:
Resolution 2002-12-173, giving consent to a project for Huntsville Memorial Hospital("HMH").
ENDS POLICY:
6.0 Huntsville is a well-planned city.
6.6.10 There is good access to healthcare.
6.6.20 Health care services are available to meet the community's needs.
RESULT to be ACHIEVED:
To allow HMH to provide updated equipment to meet citizens'health needs.
BACKGROUND:
HMH is in the process of purchasing hospital equipment through a lease from General Electric Capital Corporation.
Because the lease is tax-exempt,the Internal Revenue Code requires the consent of the City Council
RECOMMENDED MOTION:
Approve Resolution 2002-12-17.3, approving Huntsville Memorial Hospital to lease equipment from HFDC of Central
Texas,Inc.,to satisfy the Texas Health Facilities Development Act,Chapter 221,Section 221-030,at no cost to the City.
ATTACHMENT(S):
Resolution 2002-12-17.3
Letter from law office
CITY COUNCIL.APPROVED