HomeMy WebLinkAboutMC-014MC-14
San Bernardino
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ORDINANCE NO. MC-14
ORDINANCE OF THE CITY OF SAN BERNARDINO
AMENDING ORDINANCE NO. 3815 RELATING TO
THE FINANCING OF PROJECTS FOR THE
ENCOURAGING OF INCREASED EI1PLOYllENT
THE 11AYOR AND COr--a.ION COUNCIL OF THE CI~Y OF SAN
BERNARDINO DO ORDAIN AS FOLLOl'iS:
Section 1. Amepdment. Section 1 of Ordinance
No. 3815 shall be amended to add subsection u to read as
follows:
IOU. It is hereby detemined that,
in furtherance of the findings set forth
above, it is necessary that the City
exercise all of its powers to improve
the quality of life for its residents,
for the reason that improving the
quality of life will result in a
better \wrk force which will make the
City more attractive to industry,
commercial and service related enter-
prises considering locating in the
City. One of the vital parts in the
quality of life in modern society is
the provision of health care. This
finding deals with one program by
which the City can help to improve
the quality of life for its citizens,
namely, to encourage the availability
of the best of health care. Speci-
fically applicable to this finding are
the following such findings:
"1. Even though the City is
removed from the large metropolitan
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complex in Los Angeles, it still
has been possible for the residents
of the City to be provided with the
most specialized and sophisticated
health care services, as well as
general health care services, on a
convenient basis. It is not, nor
should it be necessary to travel
long distances to other cities for
such services, except in a few very
unusual situations. Providing this
type of convenient health care
services should continue and should
be kept up to date in this era of
rapidly accelerating high tech-
nology.
"2. The cost of providing
health care services (and therefore
the amounts paid by residents of
the City to obtain health care
services) has risen at annual rates
of from 12 to 20 percent in recent
years. Such substantial rate of
annual increases in the costs of
health care services is likely to
continue in future years. This
puts a great burden on the residents
of the City who must pay such costs.
It also puts a'great burden on the
hospitals and other health care
facilities who must finance the
necessary (and often highly tech-
nical and expensive) facilities and
then staff such facilities.
"3. Substantial health care
services are provided to the City's
inhabitants by private nonprofit
organizations that operate health
care facilities, some of which are
situated within the territorial
boundaries of the City and some of
which are located without, but close
to, the territorial boundaries of
the City, but whose service area
includes the City.
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"4. Because of the expensive
capital facilities that are required
by a hospital and many other health
care enterprises, a significant
favorable impact can be made on the
provision of health care to the
residents of the City by the City's
assisting in the financing of health
care enterprises pursuant to this
Ordinance, thus facilitating lovler
cost financing of such enterprises.
Because of the regulations pert.".i,.-
i.ng to hospital operations, any
savings in operating costs due to
lower cost financing will help to
reduce the cost of obtaining health
care services to residents of the
City. New facilities that are
financed will help to improve the
quality of health care to residents
of the City either by adding addi-
tional capacity or improving the
technological capability. All of
this means more available health
care which increases the quality
of life to the citizens of the City.
"5. Facilitating the financing
of health care facilities pursuant
to this Ordinance will not irnoose a
financial burden or have adve~se
effects on areas outside of the
boundaries of the City, or on tran-
sient residents of the State. It
will not produce detrimental effects
on, conflict with, or othen~ise
restrain efforts of the State to
solve problems of legitimate State
concern.
"6.
hereunder
violation
standards
of health
No action will be taken
which will result in a
of any applicable state
relating to the provision
care.
"7.
of health
Facilitating the financing
care facilities will produce
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a public benefit
residents and is
supporting.
to the City and its
to be entirely self-
"8. It is hereby determined
that facilitating nonprofit organiza-
tions in the providing of health care
services with the aim of the reduction
of health care costs or the provision
of better health care, or both, is a
public purpose in which the City has
a peculiar and unique interest and
also municipal affairs as those terms
are defined by .California la"."
Section 2. Amendment. Section 2(e-l) (1) of
Ordinance No. 3815 shall.be amended to read as follm,s:
"(I) Are issued as part of an
issue all or a~ajor portion of the
proceeds of which are to be used
directly or indirectly in any trade
or business carried on by any person
who (subject to exceptions herein-
after set forth) is not an exempt
person within the meaning of the
Internal Revenue Code of 1954, as
amended; and"
Section 3. Amendment. section 2(e) (3) (A) (viii)
and (ix) shall be renumbered (ix) and (xl respectively, and
a new paragraph numbered (viii) shall be inserted to read
as follows:
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"(viii) Facilities for operation
by Companies qualifying as exempt persons
under Section 501 of the Inte~nal Revenue
Code of 1954, as amended, including, but
not limited to, Health Facilities;"
Section 4. Amendment. The last paragraph of
Section 2(e-l) shall be amended to read as follows:
"The above definitions of the .lOrds
"Bonds" and "Bond" are intended to in-
clude all of the types of industrial
development bond facilities that can be
financed on a tax-exempt basis under
the applicable Federal lavls (inch:c1ing
the regulations promulgated thereunder) ,
and it is intended that this definition
in this Ordinance will be amended to
correspond with any changes in said
Federal laws. It is not intended, by
including any of the above definitions,
to contravene any provisions of the
City Charter, for example, Section 133
thereof ,.,hich requires a vote to issue
certain types of revenue bonds (it
being assumed that following the addi-
tion of Article XIII A to the State
Constitution, it may not be possible
to issue general obligation bonds) .
Furthermore, some of the above items
are furnished by privately owned public
utilities or private concerns, and it
is not intended to, nor shall any
proceedings be conducted under those
provisions, without the consent of the
privately owned public utility or other
private concern involved, as the case
may be.
"In addition, the above definitions
are not intended to prevent thic Ordi-
nance from being used to finance
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Facilities which are to be used directly
or indirectly in any trade or business
carried on by any person v,ho is an
exempt person within the meaning of the
Internal Revenue Code of 1954, as
amended; and any Co~pany, who so
qualifies as an exempt person, may
submit an Application for financing
hereunder; and any Company, who does
not so qualify as an exempt person,
may submit an Application for financing
of Facilities for operation by such an
exempt person, it being the intent of
this Oroinance to encourage all enter-
prises, either within or without the
City, which broaden the employme~~
opportunities for residents of the
city and which serve the residents
of the cit}, and so make it a more
attractive place for industrial a~d
conunercial ventures.1I
Section 5. E~endment. The last sentence of
Section 2(i) shall be amended to read as follows:
IIExcept in the case of a Company qualifying
as an exempt person under Section 501 of
the Internal Revenue Code of 1954, as
amended, 'Cost' shall not othenvise include
working capital for a Company."
Section 6. Amendment. Prior to the definition of
IIProceedingsll in Section 2(1), a definition of IIHealth
Facili ties II shall be inserted to read as follmls:
II (k-l) 'Health Facilities,' means a
structure or building suitable for use as
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a hospital, clinic, nursing home, horne for
the aged or infirm, place providing healL~
care, laboratory, laundry, nurses, doctors,
or interns' residence, ambulatory care
center, place for adQinistrative offices,
place in which to conduct research, place
in which to house @aintenance equipment
and supplies, storage place, place in which
to locate utili.ties, auditorium, dining
hall, place for food service and pre?ar~-
tion, place in which to house fire fighting
equipment, place in ,,,hich to provic;'! mental
and physical health care and den'tal care,
nursing school, medical teaching school,
and place in ,,,hich to house offices; parking
lots, garages, and buildings or structures
in which to house supporting servi~cs; and
all necessary, useful, and related funlish-
ings, equipment, machinery, and appurtenances,
including, without limitation, the acquisi-
tion, preparation, and cevelopment of all
lands necessary or convenient as a site or
sites fo~ any of the foregoing."
Section 7. Amendment. Section 2(m) shall be amended
to'read as follows:
"(m) 'Project' means the acquisition
or financing or refinancing of Facilities
as authorized by this Ordinance."
Section 8. Amendment. Section 11 of Ordinance No.
3815 shall be amended to add thereto subsection (d) to read as
follows:
.. (d) The Hayor and Cor:unon Council
may, as they deem it to be necess~ry in
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certain instances, approve any particular
Application, regardless of the form
thereof, without complying with Sections
9, 10 and 11 (al, (b) and (c)."
Section 9. ~_~en~ent. New subsections (j) and (k)
shall be added to Section 12, to read as follows:
" (j) In any Project Agreer,lent
entered into by the City for the financing
or refinancing of Health Facilities, the
Company shall agree that, to the eX'C2nt
feasible, the Company shall pass through
to the patients at such Health Facilities
in the form of lower patient charges;
the interest cost savings achieved by
the Company as a result of the City
issuing bonds for the financing or re-
financing of such Health Facilities.
"(k) In any Project Agreem8nt
entered into by the City for the financing
or refinancing of Health Facilities, the
Company shall agree to obtain all
necessary health planning approvals
wi th respect to the Health Facilities pro','
posed to be financed or refinanced by the
City."
Section 10. Amendment. Section 14(g) of Ordinance
No. 3815 shall be amended to add a sentence tl1ereto, to
read as follows:
"In lieu of the manual signature
of the City Clerk on the Bonus, such
signature may be by facsimile, in
which case the Bonds shall be authenti.,.
cated by the manual signature of a duly
authorized officer of the Trustee."
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Section 11. ~endment. Section 21 (c) of Ordinance
No. 3815 shall be amended to read as ~ollows:
"(c) An action may be brought
pursuant to Chapter 9 (cow~encing with
Section 860) of Part 2 of Title 10 of
the Code of Civil Procedure to deter"
mine the validity of Bonds, proceedings,
Project Agreements or indentures,
including, without limiting the
generality of the foregoing, the
legality of all proceedings thereto-
fore taken pursuant to this Ordinance.
The provisions of said Chapter 9,
including all of the limitations
therein, are incorporated herein
by reference as if fully set forth."
Section 12. Effective Date. This Ordinance
shall take effect on the thirty-first (31st) day after
approval by the Mayor.
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I HEREBY CERTIFY that the foregoing Ordinance was
duly adopted by the Mayor and Common Council of the City of
San Bernardino at a regular meeting thereof, held on the
~ day of 'f'_/7>7h<'
, 1980, by the following vote,
to wit:
AYES:
Members
4b..31.J/l/.d?/ A4Ydk?
/ .
,~m~/ ~}?
~A?7h
/odw-,,# ...#~?, ~~h~
7Jh7/
NOES:
Members
ABSENT:
Members
ABSTAIN :
Members
~~f'&A//
CJ. Y C er ~
The foregoing Ordinance is hereby approved this
";;;0:;<<- day of ~.d1Hm-1't/1
, 1980.
Approved as to form:
J(~ ~~C:;;
CJ.ty A orney
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